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ProPetro (PUMP) Q4 Earnings Miss Estimates, Revenues Beat

ProPetro Holding PUMP reported fourth-quarter 2022 earnings per share (EPS) of 31 cents, missing the Zacks Consensus Estimate of 34 cents. The underperformance could primarily be attributed to increased costs and expenses in the reported quarter.

However, the company’s bottom line turned around from the year-ago quarter’s loss of 20 cents per share due to implementation of price hikes and additional revenues earned from the newly acquired segment — Silvertip Completion Services Operating.

Meanwhile, revenues of $348.9 million beat the consensus mark of $338 million and jumped 41.9% from the year-ago quarter’s $246.1 million.

The oilfield service provider’s adjusted EBITDA for the fourth quarter was $84.1 million, down 7% from the third quarter. This was mainly due to reduced usage from fleet repositioning, weather impact and expenses for activating the 15th fleet.

ProPetro Holding Corp. Price, Consensus and EPS Surprise

ProPetro Holding Corp. Price, Consensus and EPS Surprise
ProPetro Holding Corp. Price, Consensus and EPS Surprise

ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. Quote

Silvertip Completion Services

Service revenues from this unit surged about 5.5% from the previous quarter’s level to $349 million. This hike was due to high demand for hydraulic fracturing in the Permian Basin, aided by investments in technology, infrastructure, expansion of the sand facility and fleets, and pricing.

Costs & Financial Position

As of Dec 31, 2022, the Midland, TX-based oilfield services company had approximately $88.9 million in cash and cash equivalents, and $30 million in long-term debt. It had a debt-to-capitalization of almost 3%.

ProPetro had total liquidity of $155 million as of Dec 31, 2022.

The company announced that its capex spending was $89.4 million in the fourth quarter and $365.3 million in 2022.

Key Points

ProPetro ordered two more electric fleets, taking the 2023 delivery total to four. The objective was to meet the rising demand for cleaner, quieter hydraulic fracturing.

ProPetro also announced the completion of its first long-term contract for the new electric fleet, which is likely to increase the demand for its electric fleet offerings going forward.


ProPetro expects an effective utilization rate of 14.5-15.5 fleet for the first quarter of 2023. It is confident that continued fleet revitalization and strategic investments will benefit its shareholders.

The company plans its capex spending in the range of $250-$300 million for full-year 2023.

ProPetro is highly optimistic about Silvertip Completion Services, anticipating robust demand for these services in the upcoming quarters.

Zacks Rank and Key Picks

Currently, ProPetro Holding carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might also look at some better-ranked stocks like NGL Energy Partners (NGL) sporting a Zacks Rank #1 (Strong Buy) and Energy Transfer ET and Halliburton (HAL) both holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NGL Energy Partners: NGL Energy Partners is worth approximately $509.53 million. Its shares have increased 48.8% in the past year.

NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.

Energy Transfer LP: Energy Transfer LP is valued at around $40.85 billion. ET delivered an average earnings surprise of 11.43% for the last four quarters, and its current dividend yield is 9.48%.

Energy Transfer LP currently has a forward P/E ratio of 9.17. In comparison, its industry has an average forward P/E of 9.40, which means Energy Transfer LP is trading at a discount to the group.

Halliburton: Halliburton is valued at around $35.16 billion. In the past year, HAL stock has increased 3.4%.

TX-based Halliburton Company, headquartered in Houston, is one of the largest oilfield service providers in the world, with a trailing four-quarter earnings surprise of roughly 5.87%, on average.

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Halliburton Company (HAL) : Free Stock Analysis Report

NGL Energy Partners LP (NGL) : Free Stock Analysis Report

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