Propetro Holding Corp. · NYSE:PUMP
Propetro — Q4 2024 Earnings Presentation
23 slides from Propetro's earnings presentation, Feb 19, 2025
Slide 1: Investor Presentation February 2025
INVESTOR PRESENTATION February 2025
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 Securitie
Slide 3: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation references “Adjusted Net Income (Loss),” "Adjusted EBITDA," "Free Cash Flow" and "Free Cash Flow adjusted for Acquisition Consideration," which are not financial measures presented in accordance with GAAP. We define Adjusted Net Income (Loss) as net income
Slide 4: ProPetro's Investment Thesis
ProPetro’s Investment Thesis Strong free cash flows from Over $1B invested in a refreshed Discounted valuation multiple reduced capex and targeted asset base, new technology, and relative to peers with a strong M&A diversified service offering balance sheet Pure-play exposure to the Superior field p
Slide 5: ProPetro at a glance: PUMP, 2024 revenue, EBITDA, free cash flow
NYSE Leading energy services provider to blue-chip oil and gas producers in the Permian Basin PUMP 2024 Free Cash Flow adjusted Provider of completions and power generation for Acquisition Consideration(1) services $118M Innovating to meet the growing demand of FORCE® electric hydraulic fracturing f
Slide 6: Premium Completions Services
Premium Completions Services 2024 Revenue Mix by Service Line 76% Hydraulic Fracturing 14% Wireline 10% Cementing © 2025 ProPetro Holding Corp. All Rights Reserved. 6
Slide 7: Our Strategy and Execution
Our Strategy and Execution Optimize Fleet transition and innovative Power generation and industrialize technologies opportunity Strategic Strong financial Generate durable transactions foundation earnings and increase free cash flow © 2025 ProPetro Holding Corp. All Rights Reserved. 7
Slide 8: Land of Reliable Energy
Land of Reliable Energy THE PERMIAN BASIN The Permian Basin is one of the most prolific areas for hydrocarbon production globally and is renowned for its vast reserves of oil and natural gas. • ProPetro is strategically located in and levered to the Permian, with 100% of revenue coming from this reg
Slide 9: A Strategy Yielding Results
A Strategy Yielding Results (In millions except %’s and per TOTAL NET INCOME EARNINGS ADJUSTED CASH FLOW FROM FREE CASH TOTAL share data) REVENUE (LOSS) PER SHARE(1) EBITDA(2)(3) OPERATIONS FLOW(2) LIQUIDITY(4) Despite the holiday and 4Q24 $321 ($17) ($0.17) $53 $38 $13 $161 seasonality impact, 4Q24
Slide 10: Evolving To Accelerate Free Cash Flow Performance
Evolving To Accelerate Free Cash Flow Performance PROPETRO FREE CASH FLOW AND RECENT ACQUISITIONS Free Cash Flow Free Cash Flow adjusted for Acquisition Consideration $150 $100 (in millions) $50 $- $(50) 2022 2023 2024 Acquisitions completed Note: Free Cash Flow and Free Cash Flow adjusted for Acqui
Slide 11: Advancing Growth Strategy Through Targeted M&A
Advancing Growth Strategy Through Targeted M&A Wireline Cementing Wet Sand Solutions acquired in 2022 acquired in 2023 acquired in 2024 Highly Substantial free Reduces future Complementary Horizontal complementary cash flow(1) generation capital spending cultures, operating integration and completio
Slide 12: Confidence in Capital Returns
Confidence in Capital Returns $200M SHARE REPURCHASE PROGRAM Repurchases $111 Remaining $89 $- $50 $100 $150 $200 (in millions) • Dynamic capital allocations strategy to optimize long-term value • Increased plan by $100M on April 24, 2024, and extended plan to May 2025(1) • Retired 13M shares (11%)
Slide 13: Oilfield Services Valuation
Oilfield Services Valuation RETURN METRICS COMPARED Enterprise Value to 2025 EBITDA 15.0x 12.0x 9.0x 6.0x 3.0x - ProPetro continues to be valued at a discount relative to other energy service companies. Source: Bloomberg valuation metrics as of February 14, 2025. © 2025 ProPetro Holding Corp. All Ri
Slide 14: Transforming to an Industrialized Model
Transforming to an Industrialized Model OIL SERVICES INDEX (OIH) VS. INDUSTRIAL SECTOR INDEX (IXI) Index prices normalized 200% An industrialized 100% model deserves a valuation rerate. 0% 2014 2016 2018 2020 2022 2024 OIH Index IXI Index Dislocation of OFS Stocks Reason for Multiple Rerate for OFS
Slide 15: The Next Generation
The Next Generation D U A L- F U E L A N D F O R C E ® E L E C T R I C Fleet Transformation to Frac Fleet Configuration Match Customer Adoption Tier II Diesel Tier IV Dual-Fuel Electric • Dual-fuel and electric technology differentiates ProPetro’s fleet in 18 the industry 16 • Lower capital intensit
Slide 16: Tier IV DGB Dual-Fuel Fleet Performance
Tier IV DGB Dual-Fuel Fleet Performance Consuming natural gas versus diesel to reduce costs and lower emissions for customers Fleets utilizing Compressed Natural Gas (CNG) are delivering 60-70% natural gas substitution rates Seven Tier IV DGB Dual-Fuel fleets Tier IV DGB Natural Gas Substitution Rat
Slide 17: FORCE Fleet Performance
FORCE® Fleet Performance LEADING TECHNOLOGY DELIVERING VALUE Four FORCE® fleets operating, with a fifth to be deployed in 2025 Lower emissions, quiet operations, and smaller operational footprint Significant fuel savings and 100% diesel displacement Extended equipment lifespan and reduced operating
Slide 18: PROPWR: Meeting Power Demand with Runway for Growth
PROPWR: Meeting Power Demand with Runway for Growth Aligned to Demand Complementary to FORCE® Diversification Opportunities Power demand for energy continues PROPWR adds more certainty of While geared towards oilfield power to grow. PROPWR enables ProPetro mobile power generation capacity applicatio
Slide 19: Electricity Load Growth in the Permian
Electricity Load Growth in the > 26 GW Total Permian Addressable Market by 2038 PROPWR is strategically positioned to meet the increasing Anticipated and underserved electricity other oil and Anticipated demand in the Permian Basin gas growth demand for by 2028 electric frac ~2.5 GW fleets by • ~140
Slide 20: Commercial Rationale
Commercial Rationale Permian customers and Proximity of power molecules commercial relationships in the Permian Field service logistics and Employment of equipment equipment maintenance with similar maintenance excellence and logistics requirements Electric frac expansion Internal demand - vertical
Slide 21: Who We Are
Who We Are Customer Based in the Transitioning Proven results Disciplined Reducing Driving the focused and resource-rich to efficient year-after-year capital emissions and next team driven Permian Basin and more allocation and investing in generation of capital-light asset longer-lived sustainable f
Slide 22: Committed to Shareholder Value Creation
Committed to Shareholder Value Creation OUR LEADERSHIP Company Management Board of Directors Sam Sledge Adam Muñoz Phillip A. Gobe Anthony Best Chief Executive President and Chief Chairman of the Board Lead Independent Director, Officer & Director Operating Officer Audit Committee Chair David Shelby
Slide 23: Investor Contacts
Investor Contacts CORPORATE HEADQUARTERS 303 W Wall St., Suite 102 Midland, TX 79701 432.688.0012 www.propetroservices.com INVESTOR RELATIONS DAVID SCHORLEMER Chief Financial Officer david.schorlemer@propetroservices.com 432.277.0864 MATT AUGUSTINE Director, Corporate Development and Investor Relati