ProPetro Holding Corp (PUMP) Reports Q3 2023 Earnings: Net Income of $35 Million
ProPetro Holding Corp (NYSE:PUMP) reports Q3 2023 total revenue of $424 million, a slight decrease from the previous quarter.
Net income stands at $35 million, marking the 5th consecutive quarter of net income.
Adjusted EBITDA of $108 million, representing 25% of revenue.
Company repurchased and retired 1.9 million shares during the quarter, totaling 4.2 million shares since May 2023.
ProPetro Holding Corp (NYSE:PUMP) released its financial and operational results for the third quarter of 2023 on November 1, 2023. The company reported a total revenue of $424 million, a slight decrease from the previous quarter's $435 million. Despite this, the company achieved a net income of $35 million, marking its 5th consecutive quarter of net income.
Financial Performance
ProPetro's net income for Q3 2023 stood at $35 million or $0.31 per diluted share, compared to the previous quarter's net income of $39 million or $0.34 per diluted share. The company's Adjusted EBITDA decreased slightly to $108 million from the previous quarter's $113 million. The company also reported capital expenditures of $59 million.
Share Repurchase Program
ProPetro continued its share repurchase program, repurchasing and retiring 1.9 million shares during the quarter. Since the inception of the plan in May 2023, the company has repurchased a total of 4.2 million shares, representing approximately 4% of outstanding shares.
Liquidity and Capital Spending
As of September 30, 2023, ProPetro had total cash of $54 million and borrowings under the ABL Credit Facility of $45 million. The company's total liquidity at the end of Q3 2023 was $180 million. Capital expenditures incurred during the quarter were $59 million, primarily related to maintenance capital expenditures and the last deliveries of the company's Tier IV DGB dual-fuel conversions.
Management Commentary
CEO Sam Sledge commented on the results, stating,
We are pleased to build on our momentum with yet another quarter of strong financial results. Thanks to solid execution by the ProPetro team, we continue to execute on our strategic priorities."
David Schorlemer, Chief Financial Officer, added,
The third quarter was an example of the resilient business we're building at ProPetro. We are focused on our strategy that is ideally-suited for the continued industrialization of the oilfield."
Outlook
Looking ahead, ProPetro is on track to deploy its second FORCESM electric frac fleet in 2023, with the deployment of the third and fourth fleets planned for the first half of 2024. The company continues to seek value-accretive acquisition opportunities to further enhance its cash flow profile.
Explore the complete 8-K earnings release (here) from ProPetro Holding Corp for further details.
This article first appeared on GuruFocus.
