ProPetro Holding Corp. · NYSE:PUMP
ProPetro — Q1 2023 Earnings Presentation
20 slides from ProPetro's earnings presentation, May 3, 2023
Slide 1: Investor Presentation First Quarter 2023 Earnings
Client to confirm use of this image again Investor Presentation First Quarter 2023 Earnings May 3, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical information contained herein, the statements and information in this presentation, including the oral statements made in connection herewith, are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities
Slide 3: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation references “Adjusted EBITDA” and “Free Cash Flow,” which are non-GAAP financial measures. We define EBITDA as net income plus (i) depreciation and amortization, (ii) interest expense and (iii) income tax expense (benefit). We define Adjusted EBITDA as EBITD
Slide 4: Company Snapshot
Company Snapshot NYSE 1Q 2023 Revenue Oilfield services leader in the Permian Basin providing complementary PUMP $424 million completions services in 1Q 2023 Net Income 1Q 2023 Adjusted EBITDA(1) Hydraulic Fracturing, CCC Cementing, and Wireline $29 million $119 million to leading upstream oil and g
Slide 5: Our Strategy & Recent Highlights
Our Strategy & Recent Highlights ✓ Delivered our best quarterly financial results (Adj. EBITDA, margin, and NI) in over three years ✓ 42% sequential Adjusted EBITDA growth with 400 basis points of margin improvement ✓ Repositioned and repriced hydraulic frac fleets to enhance financial performance ✓
Slide 6: Changing to an Industrialized Model: Valuation Indices Comparison
Changing to an Industrialized Model: Valuation Indices Comparison OIL SERVICES INDEX (OIH) VS. INDUSTRIAL SECTOR INDEX (IXI) 300% Indices Price Normalized OIH Index IXI Index 200% An industrialized model deserves multiple rerate. 100% 0% 2013 2015 2017 2019 2021 2023 Dislocation of OFS Stocks Reason
Slide 7: Industry Evolving for a Sustainable Future
Industry Evolving for a Sustainable Future PRE-COVID PANDEMIC INDUSTRY DYNAMICS CURRENT INDUSTRY DYNAMICS Oil supply is expected to remain suppressed due to insufficient capital Booming global economy spending, refining capacity constraints, and ongoing geo-political conflicts Higher relative refini
Slide 8: Global Hydrocarbon Macro Environment
Global Hydrocarbon Macro Environment A bullish demand outlook coupled with constrained supply availability reinforces our belief that we are in a long-term up-cycle that supports incremental margins and sustainable cash flow generation for completion services. There is vast potential in the Permian
Slide 9: Permian Basin: Large Addressable Market Opportunity
Permian Basin: Large Addressable Market Opportunity THE PERMIAN BASIN STANDS ALONE AS THE RESILIENT PACESETTER OF US PRODUCTION Despite relatively flat total US production growth expectations over the next several years and anticipated near-term market volatility, the Permian Basin stands to see pro
Slide 10: Who We Are and Where We Are Going
Who We Are and Where We Are Going Customer Dedicated and Transitioning Relied upon Disciplined Reducing Diversified focused; efficient to a young, by premier capital emissions and customer Team driven customer base efficient, more customers allocation and investing in base including harnessing the c
Slide 11: Proven Success in the Most Challenging Environment: Unrivaled Completions Services
Proven Success in the Most Challenging Environment: Unrivaled Completions Services COMPLETION-RELATED SERVICES HYDRAULIC FRACTURING SPECIAL APPLICATIONS Consistent with ProPetro’s ProPetro’s premier service line Customized treatments and Hydraulic Fracturing, Cementing, delivering industry-leading c
Slide 12: Innovation Leading to Our #1 Customer Ratings
Innovation Leading to Our #1 Customer Ratings - A ProPetro Competitive Advantage TRANSITIONING TO FULLY-REMOTE ENGINEERING SUPPORT RECENTLY DEVELOPED TACTICAL OPERATIONS CENTER Reduce maintenance capex 2022 2023e FLEETS Increase capital and logistical efficiency FLEETS Reduce equipment in rotation O
Slide 13: Fleet Transition: Executing on The Strategy
Fleet Transition: Executing on The Strategy RECAPITALIZATION OF OUR FLEET EXECUTED FIRST ELECTRIC-POWERED HYDRAULIC • Since the start of 2022, we have transitioned approx. FRACTURING FLEET CUSTOMER CONTRACT 45% of our frac fleet to Tier IV DGB dual-fuel that • Contract with large public E&P displace
Slide 14: Commitment to Our People, Our Community, and Our Environment
Commitment to Our People, Our Community, and Our Environment ENVIRONMENTAL SAFETY PEOPLE OPTIMIZED OPERATIONS & FLEET TRANSITION COMMITTED TO AN ACCIDENT-FREE WORKPLACE FOCUSED ON OUR TEAM Innovation • Strong training and development culture • Education and tuition reimbursement to engage and advanc
Slide 15: Estimated Revenue Mix by Service Line
Estimated Revenue Mix by Service Line: Hydraulic Fracturing, Wireline, and Cementing 2023e REVENUE MIX BY SERVICE LINE Wireline Cementing Hydraulic Fracturing Source: 2023 management estimates. © 2023 ProPetro Holding Corp. All Rights Reserved. 1515 15
Slide 16: Financial Highlights
Financial Highlights (in millions TOTAL EFFECTIVE NET ADJUSTED TOTAL except %’s and fleet counts) REVENUE UTILIZATION INCOME EBITDA(1) LIQUIDITY(2) Frac Fleets 1Q23 $424 15.5 $29 $119 $149 Strategic Execution Delivering Strong Financial Results 1Q23 showcased the benefits of our strategy with strong
Slide 17: Capital Allocation Framework: Strategy Meets Opportunity
Capital Allocation Framework: Strategy Meets Opportunity OPTIMIZE OPERATIONS FLEET TRANSITION DISCIPLINED GROWTH Enhancing operational efficiency by focusing With robust industry fundamentals, transitioning Prudently assessing value-enhancing investment resources on the most relevant technologies, o
Slide 18: Our Leadership: Committed to Shareholder Value Creation
Our Leadership: Committed to Shareholder Value Creation Company Management Board of Directors SAM SLEDGE PHILLIP A. GOBE ANTHONY BEST Chief Executive Officer & Director Chairman of the Board Lead Independent Director, Audit Committee Chair ADAM MUÑOZ MICHELE VION JACK B. MOORE President and Chief Op
Slide 19: ProPetro: The Oilfield Services Leader Built For The Future
ProPetro: The Oilfield Services Leader Built For The Future Efficient operator with a Cutting edge technologies drive Disciplined capital allocation and strong balance sheet leading profitability and asset deployment strategy customer solutions Premium completion services Consistently outperforms th
Slide 20: Investor Contacts
Investor Contacts CORPORATE HEADQUARTERS INVESTOR RELATIONS 1706 South Midkiff Road DAVID SCHORLEMER Midland, TX 79701 Chief Financial Officer david.schorlemer@propetroservices.com 432.688.0012 432.277.0864 www.propetroservices.com MATT AUGUSTINE Director, Corporate Development and Investor Relation