ProPetro Holding Corp. operates as an integrated energy service company.
The company focuses on providing hydraulic fracturing, wireline, and other complementary energy and power generation services to upstream oil and gas companies that engage in the exploration and production (‘E&P’) of North American oil and natural gas resources.
The company's operations are primarily focused in the Permian Basin, where it has cultivated longstanding customer relationships with some of the region’s active...
ProPetro Holding Corp. operates as an integrated energy service company.
The company focuses on providing hydraulic fracturing, wireline, and other complementary energy and power generation services to upstream oil and gas companies that engage in the exploration and production (‘E&P’) of North American oil and natural gas resources.
The company's operations are primarily focused in the Permian Basin, where it has cultivated longstanding customer relationships with some of the region’s active and well-capitalized E&P companies. The Permian Basin is widely regarded as one of the most prolific oil and natural gas producing areas in the United States, and the company is one of the leading providers of energy services in the region.
In the fourth quarter of 2024, the company formed a new subsidiary, ProPetro Energy Solutions, LLC, doing business as PROPWR, to provide power generation services to oil and gas producers, and for general industrial projects, and data centers. PROPWR has ordered equipment, but has not yet begun revenue-generating activities.
On May 31, 2024, the company consummated the acquisition of all of the outstanding equity interests in Aqua Prop, LLC (‘AquaProp’), which provides wet sand solutions for hydraulic fracturing at well sites (the ‘AquaProp Acquisition’). As a result of the AquaProp Acquisition, the company expanded its business to include wet sand services.
On December 1, 2023, the company consummated the purchase of the assets and operations of Par Five Energy Services LLC (‘Par Five’), which provides cementing services in the Delaware Basin. The Par Five Acquisition complemented the company’s existing cementing business and enabled it to serve both the Midland and Delaware sub-basins of the Permian Basin.
On November 1, 2022, the company consummated the acquisition of all of the outstanding limited liability company interests of Silvertip Completion Services Operating, LLC (the ‘Silvertip Acquisition’), which provides wireline perforation and ancillary services in the Permian Basin. Collectively, the AquaProp Acquisition, the Par Five Acquisition, and the Silvertip Acquisition have positioned the company as a more integrated and diversified completions-focused energy service provider.
The company’s substantial market presence in the Permian Basin positions it well to capitalize on drilling, and completion activity, and power demand in the region. Its operational focus has primarily been in the Permian Basin's Midland sub-basin, where its customers have operated.
The company primarily provides hydraulic fracturing, wireline, and cementing completion services to E&P companies in the Permian Basin. The company's equipment has been designed to handle the operating conditions commonly encountered in the Permian Basin and the region's increasingly high-intensity well completions (including simultaneous hydraulic fracturing (‘Simul-Frac’), which involves fracturing multiple wellbores at the same time), which are characterized by longer horizontal wellbores, more stages per lateral, and increasing amounts of proppant per well. The company also launched a new power generation business, PROPWR, that will provide power generation services to oil and gas producers and other industrial companies and data centers.
Services
The company has historically conducted its business through four operating segments: hydraulic fracturing, wireline, cementing, and coiled tubing.
Hydraulic Fracturing
The company provides hydraulic fracturing services to E&P companies in the Permian Basin. These services are intended to optimize hydrocarbon flow paths during the completion phase of horizontal shale wellbores. The company has significant expertise in multi-stage fracturing of horizontal oil-producing wells in unconventional geological formations. Its total available hydraulic horsepower (‘HHP’) as of December 31, 2024, was 1,556,500 HHP, which comprised 450,000 HHP of its Tier IV DGB dual-fuel equipment, 294,000 HHP of FORCE electric-powered equipment, and 812,500 HHP of conventional Tier II equipment.
The company’s hydraulic fracturing fleets range from approximately 50,000 to 80,000 HHP depending on the job design and customer demand at the wellsite. Its equipment has been designed to handle the operating conditions commonly encountered in the Permian Basin, and the region’s increasingly high-intensity well completions, including (‘Simul-Frac’), which are characterized by longer horizontal wellbores, more stages per lateral, and increasing amounts of proppant per well. With the industry transition to lower emissions equipment and Simul-Frac, in addition to several other changes to its customers' job designs. In addition, in 2021 and 2022, the company committed to additional conversions of some of its Tier II equipment to Tier IV DGB, and to purchase new Tier IV DGB dual-fuel equipment. As such, it entered into conversion and purchase agreements with its equipment manufacturers and received all of the converted and new Tier IV DGB dual-fuel equipment by the end of 2023, representing 450,000 HHP of its Tier IV DGB dual-fuel equipment as of December 31, 2024. In 2022, the company entered into three-year electric fleet leases for four FORCE electric-powered hydraulic fracturing fleets with 60,000 HHP per fleet (the ‘Electric Fleet Leases’), and in June 2024, it entered into an additional three-year lease for a fifth FORCE electric-powered hydraulic fracturing fleet with 72,000 HHP. As of December 31, 2024, the company had received 294,000 HHP of FORCE electric-powered equipment representing four fleets and a portion of the fifth fleet. It expects to receive the remaining equipment associated with the fifth fleet in the first half of 2025.
The hydraulic fracturing process consists of pumping fracturing fluid into a well at sufficient pressure to fracture the formation. Materials known as proppants, which in the company’s business comprise primarily sand, are suspended in the fracturing fluid and are pumped into the fracture to prop it open. The fracturing fluid is designed to break, or loosen viscosity, and be forced out of the formation by its pressure, leaving the proppants suspended in the fractures created, thereby increasing the mobility of the hydrocarbons. As a result of the fracturing process, production rates are usually enhanced substantially, thus increasing the rate of return of hydrocarbons for the operator.
The company owns and operates a fleet of mobile hydraulic fracturing units and other auxiliary equipment to perform fracturing services. It also refers to all of its fracturing units, other equipment, and vehicles necessary to perform a fracturing job as a ‘fleet’, and the personnel assigned to each fleet as a ‘crew’. The company’s hydraulic fracturing units primarily consist of high-pressure hydraulic pumps, diesel or dual gas engines, gas turbine generators, transmissions, and various hoses, valves, tanks, and other supporting equipment like blenders, irons, hoses, and data vans. The company also owns and operates a fleet of trucks, trailers, and other equipment that provide onsite storage and handling of wet sand used in the completion phase of shale wellbores.
The company provides dedicated equipment, personnel, and services that are tailored to meet each of its customer’s needs. Each fleet has a designated team of personnel, which allows the company to provide responsive and customized services, such as project design, proppant and other consumables procurement, real-time data provision, and post-completion analysis for each of its jobs. Many of the company’s hydraulic fracturing fleets and associated personnel have worked continuously with the same customer for the past several years, promoting deep relationships and a high degree of coordination and visibility into future customer activity levels. Furthermore, in light of its substantial market presence and historically high fleet utilization levels, the company has established a variety of trusted relationships with key equipment, sand, and other downhole consumable suppliers.
Wireline
The company provides wireline and ancillary services on new oil well completions in the Permian Basin. Wireline utilizes equipment with a drum of wireline to deploy perforating guns in the well to perforate the casing, cement, and formation. Once the well is perforated, it is ready to be fractured. Pumpdown utilizes pressure pumping equipment to pump water into the well to deploy or push the perforating guns attached to the wireline through the lateral section of a well.
The company owns and operates a fleet of mobile wireline units and other auxiliary equipment to perform well completion services. It also refers to its wireline units, pressure control equipment, other equipment, and vehicles necessary to perform a job as a ‘spread’, and the personnel assigned to the spread as a ‘crew’. On average, one wireline spread consists of a wireline tractor truck with a cab functioning as a mobile office where the engineer controls the wireline spooled drum along with associated pressure control iron and equipment, trailers, and vehicles. The company has 26 wireline units.
Cementing
The company provides cementing services for the completion of new wells and for remedial work on existing wells. Cementing services use pressure pumping equipment to deliver a slurry of liquid cement that is pumped down a well between the casing and the borehole. Cementing provides isolation between fluid zones behind the casing to minimize potential damage to hydrocarbon bearing formations or the integrity of freshwater aquifers and provides structural integrity for the casing by securing it to the earth. Cementing is also done when re-completing wells, where one zone is plugged and another is opened.
Power Generation Services
In December 2024, the company formed PROPWR to provide power generation services to oil and gas producers, and non-oil and gas applications, such as general industrial projects, and data centers. This subsidiary has ordered equipment, but has not yet begun revenue-generating activities.
Customers
The company’s customers primarily consist of oil and natural gas producers in North America. Its top five customers accounted for approximately 58.8% of its revenue for the year ended December 31, 2024. For the year ended December 31, 2024, XTO Energy Inc. (‘XTO’), a wholly owned subsidiary of Exxon Mobil Corporation (‘ExxonMobil’), Permian Resources, and EOG Resources accounted for 19.7%, 14.9%, and 10.6%, respectively, of total revenue. In May 2024, Pioneer Natural Resources USA, Inc. (‘Pioneer’) merged with and into a wholly owned subsidiary of Exxon Mobil.
Competition
The company’s major competitors include Halliburton Company, Liberty Energy Inc., Patterson-UTI Energy Inc., ProFrac Holding Corp., Solaris Energy Infrastructure, Inc., RPC, Inc., and a number of private and locally-oriented businesses.
Environmental and Occupational Health and Safety Regulations
The company handles, transports, stores, and disposes of wastes that are subject to the Resource Conservation and Recovery Act (‘RCRA’) and comparable state laws and regulations, which affect its activities by imposing requirements regarding the generation, transportation, treatment, storage, disposal, and cleanup of hazardous and non-hazardous wastes.
Seasonality
The company’s results of operations have historically reflected seasonal tendencies, typically in the fourth quarter (year ended December 2024), relating to the holiday season, inclement winter weather and the exhaustion of its customers' annual budgets. As a result, the company typically experiences declines in its operating and financial results in November and December, even in a stable commodity price and operations environment.
History
ProPetro Holding Corp. was founded in 2007. The company was incorporated in 2017.