ProPetro Holding Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $355 million, a 16% increase compared to $306 million in the second quarter of 2026.
• Net income was $13 million ($0.09 per diluted share), a turnaround from a net loss of $8 million ($0.07 per diluted share) in the prior quarter.
• Adjusted EBITDA was $60 million (17% of revenue), representing a 33% increase from $45 million in the second quarter of 2026.
• Cost of services (excluding depreciation and amortization) was $270 million.
• General and administrative expenses were $31 million, down from $33 million in the prior quarter; G&A excluding nonrecurring items was $26 million (7% of revenue).
• Net cash provided by operating activities was $46 million, down from $66 million in the prior quarter due to working capital headwinds consuming approximately $15 million.
• Net cash used in investing activities was $122 million, primarily driven by capital expenditures paid of $123 million.
• Cash and cash equivalents totaled $729 million as of September 30, 2026.
• Total liquidity was $934 million, including $185 million available under the ABL Credit Facility and $20 million under the Caterpillar Equipment Loan Agreement.
• Borrowings under the Caterpillar Financial Services Corporation agreement were $172 million; no outstanding borrowings existed under the ABL Credit Facility.

Guidance and Future Outlook:

• Full-year 2026 capital expenditures incurred are anticipated to be between $525 million and $575 million.
• PROPWR capital expenditures for 2026 are expected to be between $400 million and $430 million, narrowed from prior guidance due to visibility on equipment delivery timing.
• Buyout costs for the first FORCE® electric fleet are expected to be between $15 million and $20 million, with at least three additional buyouts occurring in 2027.
• The company expects to deploy more than 500 megawatts by early 2028, scaling from approximately 250 to 275 megawatts deployed by the end of 2026.
• 2027 earnings are expected to be weighted toward the latter part of the year as larger infrastructure-scale projects come online.
• The company expects to maintain steady activity of approximately 13 active frac fleets through the fourth quarter, though seasonality and rebuilding costs may impact Q4 utilization and margins.
• PROPWR capital expenditures in 2027 are expected to increase from 2026 levels driven by equipment delivery and milestone payments under the Caterpillar framework agreement.
• The cost per megawatt for PROPWR is expected to remain within the guided range of $1.4 million to $1.5 million inclusive of balance of plant.

Business Segments and Product Lines:

• PROPWR: Generated approximately $8 million of Adjusted EBITDA in the third quarter, a sequential increase driven by deployment execution and reliability. Power generation capacity committed under contract reached approximately 510 megawatts, including 230 megawatts from the Targa agreement.
• PROPWR: Negotiations are advanced across several hundred megawatts of data center commercial opportunities, with one hyperscaler project already live and operating in the U.S. Midwest.
• PROPWR: Approximately 1 gigawatt of secured power generation capacity consists of Caterpillar's 10-megawatt units under a strategic framework agreement.
• Completions: Demand remains strong with capacity essentially sold out; the active Permian frac fleet supply is estimated to be in the mid-70s.
• Completions: The majority of contracted horsepower is scheduled to come up for renewal in the first half of 2027, with expectations of a more constructive pricing environment.
• Segment Revenue (Q3 2026): Hydraulic Fracturing ($235.2 million), Wireline ($60.7 million), Cementing ($37.4 million), and Power Generation ($22.3 million).
• Segment Adjusted EBITDA (Q3 2026): Hydraulic Fracturing ($45.4 million), Wireline ($13.3 million), Cementing ($7.1 million), and Power Generation ($7.6 million).

Market and Competitive Landscape:

• Years of attrition have drastically reduced the supply of high-quality horsepower, and a modest increase in drilling activity from larger public and independent operators is expected to fully tighten the market.
• Demand for natural gas-burning fleets is expected to remain strong due to limited supply and global refining constraints keeping diesel prices elevated.
• The company notes that contract terms in oil and gas, midstream, and industrial sectors are generally shorter than in the data center arena, though pricing and expected annual returns are attractive.
• Supply chains for power generation equipment remain very tight, providing an advantage to the company's early-mover position and framework agreement with Caterpillar.

Risks and Challenges:

• Rebuilding the business's capacity after declining activity levels in 2024 and 2025 has weighed on margins, with costs expected to persist into the fourth quarter before optimizing in 2027.
• Data center deal timelines have extended due to the need for risk-sharing provisions and long-term capital commitments.
• PROPWR revenue and Adjusted EBITDA may trail contracted capacity levels in a given period due to contract structures involving upfront reservation fees not recognized until deployment.
• Forward-looking statements are subject to risks including oil price volatility, supply/demand changes for power generation, delays in establishing new service lines, and global macroeconomic uncertainty related to conflicts in the Middle East, Russia-Ukraine, and Venezuela.

Management Commentary and Tone:

• CEO Sam Sledge described the quarter as "solid," highlighting progress in PROPWR and higher revenue/activity in completions service lines.
• Management expressed confidence in the strategy, citing a strong completions business paired with a premium growth platform in PROPWR, a strong balance sheet, and a world-class team.
• Management noted that execution on the first hyperscaler data center deployment has gone "exceptionally well," validating the strategy and accelerating commercial efforts.
• The tone regarding the completions market is constructive, anticipating early pricing momentum as activity stabilizes and costs are optimized in 2027.
• Management emphasized a deliberate approach to data center contracting, prioritizing the selection of the right long-term partners over speed.

Other Key Points:

• The company issued $690 million in aggregate principal amount of convertible senior notes, with net proceeds included in cash and cash equivalents.
• Capital expenditures incurred in Q3 2026 were $171 million, including $43 million for the completions business and $128 million for PROPWR equipment orders.
• The difference between capital expenditures paid ($123 million) and incurred ($171 million) is primarily comprised of PROPWR-related expenditures financed directly by a financing partner and unpaid amounts in accounts payable.
• The company has posted scripted remarks on its website and hosted a conference call on October 28, 2026.
• The company continues to advance negotiations for additional data center projects, with the pipeline growing despite broader market volatility.