ProPetro Posts $13 Million Profit After A Loss, Says Frac Fleets Are 'Essentially Sold Out'
The Midland frac company's third-quarter revenue rose 16% to $355 million as its PROPWR power unit lifted adjusted EBITDA to about $8 million.
ProPetro, the Midland, Texas company that provides hydraulic fracturing, wireline, cementing and power generation services, swung to a $13 million third-quarter profit from an $8 million loss in the second quarter, on revenue of $355 million, up 16% from $306 million. CEO Sam Sledge said on Wednesday that the company's frac capacity is now "essentially sold out."
Profit returns, margins stay squeezed
Net income came to $0.09 per diluted share, against a loss of $0.07 per share in the second quarter, according to the earnings release. Adjusted EBITDA, the company's own profit measure, rose 33% from the second quarter to $60 million, or 17% of revenue. The company attributed the gain to higher utilization in completions and added PROPWR deployments, partly offset by the cost of rebuilding operations.
Operating cash flow was $46 million, down from $66 million, as working capital used about $15 million of cash after supplying about $20 million in the second quarter. Capital spending incurred was $171 million, about $43 million of it for completions and about $128 million for PROPWR equipment orders.
Sledge said rebuilding costs have weighed on margins. Management expects holiday slowdowns in the fourth quarter to temporarily hit utilization and results, with continued margin pressure from those costs, while holding about 13 active frac fleets.
A sold-out frac market
Activity fell in 2024 and 2025, and the company cut operating costs and capital spending, which Sledge said protected free cash flow. As demand recovered, it had to rehire field staff, restock parts and reactivate two fleets this year, at costs higher than it first expected.
Sledge estimates active Permian frac fleets are in the mid-70s. More than two-thirds of ProPetro's active horsepower is contracted, and most of those contracts come up for renewal in the first half of 2027. He said early pricing momentum is led by natural gas-burning fleets.
PROPWR: 510 megawatts and a "show me" story
PROPWR, the power unit that supplies behind-the-meter power to data centers, oil and gas producers and industrial customers, generated about $8 million of adjusted EBITDA, after a loss of $742,000 in the second quarter, the segment table shows. Revenue in the segment was $22 million.
Contracted capacity reached about 510 megawatts, including about 230 megawatts from an agreement with Targa. The company expects 250 to 275 megawatts deployed by the end of 2026 and more than 500 megawatts by early 2028. It remains in advanced negotiations on several hundred megawatts of data center capacity, though Sledge said timelines have stretched. He acknowledged the market sees this as a "show me" story.
Full-year 2026 capital spending incurred is guided to $525 million to $575 million, with $400 million to $430 million for PROPWR, narrowed from prior guidance. The company expects 2027 earnings weighted to the second half.
Cash from the convertible notes
Cash stood at $729 million at the end of September, including proceeds of a $690 million convertible note offering in May. Total liquidity was $934 million.
The company said it expects 2027 PROPWR growth to arrive in steps as projects come online, not in a straight line.
Sources
- 8-K Filing — ProPetro Holding Corp. (PUMP) — SEC EDGAR
- Exhibit exhibit991-earningsrelea.htm — ProPetro Holding Corp. 8-K exhibit — SEC EDGAR
- Exhibit exhibit992-3q26pumpinves.htm — ProPetro Holding Corp. 8-K exhibit — SEC EDGAR
- Exhibit exhibit993-3q26earningsc.htm — ProPetro Holding Corp. 8-K exhibit — SEC EDGAR
- ProPetro Reports Financial Results for the Third Quarter of 2026 – Company Announcement - FT.com — Financial Times
- ProPetro GAAP EPS of $0.09 beats by $0.10, revenue of $355M beats by $33.98M — seekingalpha.com
