Propetro Holding Corp. · NYSE:PUMP
Propetro — Q2 2023 Earnings Presentation
23 slides from Propetro's earnings presentation, Aug 2, 2023
Slide 1: Investor Presentation Second Quarter 2023
Investor Presentation Second Quarter 2023 August 2, 2023 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
© 2023 ProPetro Holding Corp. All Rights Reserved. 2 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
Slide 3: Non-GAAP Reconciliations
© 2023 ProPetro Holding Corp. All Rights Reserved. 3 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 def
Slide 4: Company Snapshot
© 2023 ProPetro Holding Corp. All Rights Reserved. 4 CCC Company Snapshot Premium oilfield services leader in the Permian Basin providing complementary completions services in Hydraulic Fracturing, Cementing, and Wireline to leading upstream oil and gas producers 4 NYSE PUMP 2Q 2023 Revenue $435 mil
Slide 5: Premium Completions Services: 2023e Revenue Mix by Service Line
© 2023 ProPetro Holding Corp. All Rights Reserved. 55 Premium Completions Services 2023e REVENUE MIX BY SERVICE LINE Hydraulic Fracturing Cementing Wireline Source: 2023 management estimates. EXHIBIT 99.2
Slide 6: Recent Highlights & Our Strategy
© 2023 ProPetro Holding Corp. All Rights Reserved. 6 Pursue a more capital- light asset profile and next generation fleet Pursue opportunistic strategic transactions to accelerate value creation and distribution Optimize operations and industrialize our business Maintain a strong balance sheetDevelo
Slide 7: Our New Next-Generation Fleet Transformation – Dual-Fuel and FORCE Electric
© 2023 ProPetro Holding Corp. All Rights Reserved. 7 • Expect to end 2023 with 7 Tier IV DGB dual-fuel and 4 FORCESM electric frac fleets • Two FORCESM electric frac fleet deployments in 2H23 with two additional fleet deployments expected in 1H24 • Capital-light electric fleet lease program minimizi
Slide 8: Wireline and Pumpdown Services
© 2022 ProPetro Holding Corp. All Rights Reserved. 83 8 Headquarters Midland, TX Wireline Services • Owns and operates 23 wireline units, all of which have been recently refurbished Pumpdown Services • Owns and operates 16 pumpdown spreads ~320 employees Provider of wireline perforating and pumpdown
Slide 9: Delivering Strong Results
© 2023 ProPetro Holding Corp. All Rights Reserved. 9 Delivering Strong Results 2Q23 showcased the resilience of our business. Despite being affected by an idled fleet and weather-induced downtime, ProPetro generated sequentially higher revenue and utilization and the highest net income in over four
Slide 10: Share Repurchase Program: Conviction in Our Strategy
© 2023 ProPetro Holding Corp. All Rights Reserved. 1010 Share Repurchase Program: Conviction in Our Strategy • Authorization represented ~13% of our market capitalization on the date of announcement (5/17/2023) • Repurchase highlights in 2Q23: - Repurchased 2.3 million shares or 2% of shares outstan
Slide 11: Oilfield Services Valuation: Return Metrics Compared
© 2023 ProPetro Holding Corp. All Rights Reserved. 11 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x ENTERPRISE VALUE TO 2023e EBITDA 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x PRICE TO 2023e EARNINGS Oilfield Services Valuation: Return Metrics Compared Source: Bloomberg, July 31, 2023 ProPetro as well as our di
Slide 12: Changing to an Industrialized Model: Valuation Indices Comparison
© 2023 ProPetro Holding Corp. All Rights Reserved. 12 0% 100% 200% 300% 2013 2015 2017 2019 2021 2023 In di ce s Pr ic e N or m al iz ed OIH Index IXI Index Changing to an Industrialized Model: Valuation Indices Comparison Improved capital discipline and industry consolidation Increasing deploym
Slide 13: Industry Evolving for a Sustainable Future
© 2023 ProPetro Holding Corp. All Rights Reserved. 13 Booming global economy Higher relative refining capacity Limited shareholder and corporate pressure for Environmental and other ESG- related causes Robust capital markets and associated capital access Industry Evolving for a Sustainable Future CU
Slide 14: Global Hydrocarbon Macro Environment
© 2023 ProPetro Holding Corp. All Rights Reserved. 14 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 comple
Slide 15: Permian Basin: Large Addressable Market Opportunity
© 2023 ProPetro Holding Corp. All Rights Reserved. 15 PERMIAN BASIN ~60 billion barrels of oil equivalent(1) ~86,000 sq miles (1) Rystad Energy, September 2022. US CRUDE PRODUCTION FORECAST (MB/D) THE PERMIAN BASIN STANDS ALONE AS THE RESILIENT PACESETTER OF US PRODUCTION Despite relatively flat tot
Slide 16: Who We Are and Where We Are Going
© 2023 ProPetro Holding Corp. All Rights Reserved. 16 Customer focused; Team driven Dedicated and efficient customer base harnessing the potential of the resource-rich Permian Basin Transitioning to a young, efficient, more capital-light fleet powered by natural gas and electricity Relied upon by pr
Slide 17: Unrivaled Premium Completions Services
© 2023 ProPetro Holding Corp. All Rights Reserved. 17© 2023 ProPetro Holding Corp. All Rights Reserved. 17 Proven Success in the Most Challenging Environment: Unrivaled Premium Completions Services COMPLETION-RELATED SERVICES Consistent with ProPetro’s Hydraulic Fracturing, Cementing, and Wireline s
Slide 18: Innovation Leading to Our #1 Customer Ratings
© 2023 ProPetro Holding Corp. All Rights Reserved. 18 Reduce on-site headcount Improve efficiency Drive best-practices across fleets Increase long-term profitability Enhance safety protocols Increase sustainability of operations Innovation Leading to Our #1 Customer Ratings - A ProPetro Competitive
Slide 19: Commitment to Our People, Our Community, and Our Environment
© 2023 ProPetro Holding Corp. All Rights Reserved. 19 Commitment to Our People, Our Community, and Our Environment OPTIMIZED OPERATIONS & FLEET TRANSITION Innovation • Strategic investments in dual-fuel and electric-powered fleets, remote engineering operations, logistics, and maintenance systems Ge
Slide 20: Capital Allocation Framework: Strategy Meets Opportunity
© 2023 ProPetro Holding Corp. All Rights Reserved. 20 Capital Allocation Framework: Strategy Meets Opportunity OPTIMIZE OPERATIONS Enhancing operational efficiency by focusing resources on the most relevant technologies, tools, and best practices FLEET TRANSITION With robust industry fundamentals, t
Slide 21: ProPetro: The Premium Completions Services Leader Built For The Future
© 2023 ProPetro Holding Corp. All Rights Reserved. 21© 2023 ProPetro Holding Corp. All Rights Reserved. 21 Efficient operator with a strong balance sheet Cutting edge technologies drive leading profitability and customer solutions Disciplined capital allocation and asset deployment strategy Premium
Slide 22: Our Leadership: Committed to Shareholder Value Creation
© 2023 ProPetro Holding Corp. All Rights Reserved. 22 Our Leadership: Committed to Shareholder Value Creation PHILLIP A. GOBE Chairman of the Board ANTHONY BEST Lead Independent Director, Audit Committee Chair MICHELE VION Independent Director, Compensation Committee Chair SPENCER D. ARMOUR III Inde
Slide 23: Investor Contacts
© 2023 ProPetro Holding Corp. All Rights Reserved. 23 Investor Contacts INVESTOR RELATIONS DAVID SCHORLEMER Chief Financial Officer david.schorlemer@propetroservices.com 432.277.0864 MATT AUGUSTINE Director, Corporate Development and Investor Relations matt.augustine@propetroservices.com 432.848.087