ProPetro (PUMP) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 11:53 AM CDT 36 min read

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Wednesday, February 18, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Sam Sledge

• Chief Financial Officer — Caleb Weatherl

• Chief Operating Officer — Travis Simmering

Sam Sledge: Thanks, Matt. Good morning, everyone, and acknowledgment for joining america today. 2025 was a twelvemonth that was defined by uncertainty crossed the broader vigor markets. There was a important slowdown successful completions enactment arsenic illustrated by our estimates that the Permian is operating with astir 70 full-time frac fleets, down meaningfully from 90 to 100 fleets conscionable a twelvemonth ago. This headwind was compounded by tariff impacts and OPEC+ accumulation increases that added unit to commodity prices passim the year, affecting budgets and creating a much cautious relation mindset. Despite these dynamics, ProPetro continued to present some operationally and financially and generated beardown escaped currency flow, peculiarly successful the 4th quarter.

Our bequest completions concern continues to make sustainable escaped currency travel adjacent successful this pugnacious marketplace environment, which gives america assurance arsenic this concern helps substance investments we are making successful PROPWR, our aboriginal maturation engine. Our coagulated 4th fourth show underscores the industrialized quality of our completions concern and the benefits of the exertion and next-generation instrumentality investments we person made implicit the past respective years. While we expect marketplace challenges to persist into 2026, we proceed to power what we tin and determination rapidly by streamlining costs crossed the business, performing a granular investigation and taking decisive action.

I'm arrogant of our team's quality to accommodate quickly, rationalize costs and support our plus base, thereby supporting our margins and competitiveness successful the market. This volition stay a cardinal absorption successful 2026. ProPetro is simply a fundamentally beardown company. We person debased debt, first-class customers operating successful the Permian Basin, a refreshed next-generation fleet and a squad that continues to execute astatine a precise precocious level. Even if challenging marketplace conditions persist, our company's unsocial attributes presumption america to proceed performing. As we've said before, marketplace cycles make opportunities. And with that, we expect attrition among smaller and little disciplined competitors that cannot prolong prolonged marketplace weakness.

We judge this dynamic volition supply structural benefits for well-capitalized next-generation operators similar ProPetro. I besides privation to sermon the strategical actions we're taking to enactment resilient financials. As a reminder, we presently person the bulk of our progressive frac fleets nether contract, providing america with ongoing stableness successful our operations. Over time, we program to proceed to allocate superior to our FORCE electrical equipment, fixed its beardown request and commercialized leverage. However, anterior to committing to further FORCE instrumentality orders, we necessitate greater visibility into lawsuit request and growth, particularly successful the challenging marketplace situation to guarantee these investments are some strategically justified and aligned with expected return.