ProPetro Reports Financial Results for the First Quarter of 2026
Key Terms
adjusted ebitda financial
non-gaap financial measure financial
gigawatts technical
megawatts technical
microgrid technical
First Quarter 2026 Results and Highlights
-
Total revenue of
$271 million 7% as compared to$290 million -
Net loss was
$4 million $0.03 $1 million $0.01 -
Adjusted EBITDA(1) of
$36 million 13% of revenue and decreased29% as compared to the prior quarter. -
Capital expenditures paid were
$43 million $85 million -
Net cash provided by operating activities and net cash used in investing activities were
$3 million $41 million
Recent PROPWR℠ Highlights
- Entered into a strategic framework agreement with Caterpillar Inc., securing access to up to approximately 2.1 additional gigawatts of power generation capacity over the next five years which enhances long-term supply visibility and supports PROPWR’s continued growth. The Company is now positioned to have approximately 2.6 gigawatts of power generation capacity delivered by year-end 2031.
- Engaged in advanced contract negotiations for approximately 100 megawatts to support oil and gas microgrid projects, with deployments expected later this year.
- Achieved major advancements representing several hundred megawatts of high-potential data center opportunities, in a select portion of PROPWR's data center commercial pipeline.
(1) Adjusted EBITDA is a non-GAAP financial measure and is described and reconciled to net income (loss) in the table under “Non-GAAP Financial Measures.”
Management Comments
Sam Sledge, Chief Executive Officer, commented, “ProPetro’s first quarter results once again demonstrated the resiliency of our business model. Despite weather-related disruptions that impacted activity and profitability, we delivered positive financial results in our completions business, particularly when measured by Adjusted EBITDA less incurred capital expenditures. These results highlight the strength of our industrialized model, which is the result of strategic investments, disciplined asset deployment, and rigorous cost management. The actions we took throughout 2025 to protect our assets and right-size our cost structure are benefiting us today and position us to perform successfully in this market.
With respect to the broader environment, we are still in the early stages of assessing the global and domestic implications of the Iran War. While uncertainty remains, we are starting to see signs of recovery across the broader North American oilfield services sector, given a strengthening commodity backdrop that is driving early pricing and activity tailwinds across our completions business. Importantly, structural tightening in the completions market continues to intensify, driven by ongoing attrition, particularly among smaller less disciplined competitors. This trend was already emerging prior to the onset of the Iran War and has since accelerated with the recent increase in demand for
At the same time, our PROPWR business continues to gain significant momentum, advancing our growth strategy through the recently announced Framework Agreement with Caterpillar and the ongoing expansion of our contracted portfolio. Substantial growth opportunities remain ahead, especially within the rapidly evolving data center sector. We are pleased to report major advancements representing several hundred megawatts of high-potential data center opportunities, in a select portion of our commercial pipeline, further strengthening our presence in the digital infrastructure space.
We now have two powerful engines driving our business forward: an improving completions market, and a rapidly expanding PROPWR platform. As always, we will remain focused on what we can control, cost discipline, operational excellence, and strategic capital deployment. With these strengths, we are confident that ProPetro is well positioned to capitalize on the current tailwinds in the completions business and deliver sustained, long-term earnings growth through PROPWR.”
Caleb Weatherl, Chief Financial Officer, commented, “During the first quarter, we maintained the Company’s strong financial position through disciplined cost management and our continued focus on capital efficiency. ProPetro’s balance sheet and liquidity remain key strengths, providing flexibility to navigate market volatility while continuing to invest to drive profitable growth. In PROPWR, we made meaningful progress during the quarter including securing additional capital to support the business as it scales. Going forward, we will remain proactive in sourcing low-cost capital and flexible financing solutions to support PROPWR’s growth, while maintaining a strong balance sheet."
First Quarter 2026 Financial Summary
Revenue was
Cost of services for the first quarter of 2026 were
General and administrative ("G&A") expense of
Net loss totaled
Adjusted EBITDA decreased to
Net cash provided by operating activities was
Liquidity and Capital Spending
As of March 31, 2026, cash and cash equivalents were
During the first quarter of 2026, capital expenditures paid were
PROPWR Update
Mr. Sledge commented, “PROPWR continued to deliver strong progress and build momentum throughout the quarter, highlighted by our recent announcement of a new strategic framework agreement with Caterpillar. This agreement enables PROPWR to acquire up to approximately 2.1 gigawatts of additional power generation capacity over the next five years. When combined with the approximately 550 megawatts previously ordered, and upon the successful delivery of assets under this agreement, PROPWR is positioned to have approximately 2.6 gigawatts of power generation capacity delivered by year-end 2031 and fully deployed in 2032. This agreement also underscores PROPWR’s leadership in deploying innovative energy solutions, and we are excited about the transformative potential it brings to our Company.
To support our upsized order backlog, we have built a robust commercial pipeline. Demand for reliable and low-emission power solutions remains strong, fueling continued growth across the data center, industrial, and oil & gas sectors. As noted earlier in this release, we are pleased to report major advancements representing several hundred megawatts of high-potential data center opportunities, in a select portion of our data center commercial pipeline. While specific details are contingent on finalizing agreements, these developments highlight our expanding leadership and strategic positioning in the digital infrastructure market. Additionally, we are engaged in advanced contract negotiations for approximately 100 megawatts to support oil and gas microgrid projects, with deployments expected later this year. These commercial developments will rapidly expand our total committed capacity beyond the approximately 240 megawatts currently committed under contract.
We are confident in PROPWR’s future growth and expect to secure additional contracts throughout 2026 as we extend and deepen relationships with both new and existing partners. The majority of future megawatts are anticipated to be contracted within the data center and industrial sectors, driven by their larger load requirements and long-term strategic commitments. Importantly, our near-term focus also remains on disciplined execution, deploying and scaling PROPWR across our contracted customers, with a strong emphasis on de-risking deployments and building a resilient operational foundation to support sustainable long-term growth and profitability.
As we continue to deploy capital to grow PROPWR, we remain committed to maintaining financial flexibility and a strong balance sheet. Our preferred source of funding continues to be free cash flow generated from our completions business. This is supplemented by our strong balance sheet, proceeds from our recent equity offering and access to flexible financing arrangements including our Caterpillar financing facility and lease financing structures that we have in place. Given the recent increased orders, we will continue to actively pursue low-cost capital and flexible financing solutions to support PROPWR’s growth."
Guidance
The Company now anticipates full-year 2026 capital expenditures incurred to be between
Additionally, the Company anticipates incurring capital expenditures of approximately
For the second quarter, the Company expects to operate approximately 12 active frac fleets, reflecting early signs of recovery and heightened activity in the Permian completions market as the strengthening commodity environment, driven by the ongoing Iran War, begins to support improved pricing and demand across the Company’s completions business.
Pertaining to PROPWR, in the first half of 2026, the Company’s primary focus is still on the successful deployment and scaling of PROPWR assets across our existing contracted customer base. By emphasizing strong performance and actively de-risking deployments during this period, the Company is positioning PROPWR for long-term growth. This strategic approach is expected to establish a strong operational foundation, enabling PROPWR to begin delivering positive and increasingly meaningful earnings in the second half of 2026, in alignment with the Company’s growth objectives.
Outlook
Mr. Sledge concluded, “We recognize the improving completions market, which is benefiting from a stronger commodity environment and recent market dynamics, including the impact of the Iran War. Given current supply and demand fundamentals inside the completions market, we remain confident in our ability to respond to additional commercial opportunities as they arise.
At the same time, PROPWR continues to gain momentum, supported by a robust commercial pipeline and our strategic framework agreement with Caterpillar. Our focus remains on disciplined execution and building a durable platform for long-term growth and value creation. With these strengths, ProPetro is well positioned to deliver sustained performance for our stakeholders.”
Conference Call Information
The Company will host a conference call at 10:00 AM Central Time on Thursday, April 30, 2026, to discuss financial and operating results for the first quarter of 2026. The call will also be webcast on ProPetro’s website at www.propetroservices.com. To access the conference call,
About ProPetro
ProPetro Holding Corp. is a
Forward-Looking Statements
Except for historical information contained herein, the statements and information in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “may,” “could,” "confident," “plan,” “project,” “budget,” "design," “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “should,” "continue," and other expressions that are predictions of, or indicate, future events and trends or that do not relate to historical matters generally identify forward‑looking statements. Our forward‑looking statements include, among other matters, statements about the supply of and demand for hydrocarbons, industry trends and activity levels, our business strategy, projected financial results and future financial performance, the ability to obtain capital on attractive terms, expected fleet utilization, sustainability efforts, the future performance of newly improved technology, expected capital expenditures, the impact of such expenditures on our performance and capital programs, our fleet conversion strategy, our share repurchase program, and the anticipated growth prospects of PROPWR, including the demand for its services, types of customers and the ability to secure long-term contracts, the ability to obtain financing on attractive terms, the ability to procure additional equipment, timely receipt of such equipment and successful deployment and anticipated benefits of the PROPWR business line, including its expected financial contribution to our results of operations. A forward‑looking statement may include a statement of the assumptions or bases underlying the forward‑looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable.
Although forward‑looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of oil prices, changes in the supply of and demand for power generation, the risks associated with the establishment of a new service line, including delays, lack of customer acceptance and cost overruns, the global macroeconomic uncertainty related to conflict in the
PROPETRO HOLDING CORP. |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(In thousands, except per share data) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
March 31, 2026 |
|
December 31, 2025 |
|
March 31, 2025 |
||||||
REVENUE - Service revenue |
|
$ |
270,685 |
|
|
$ |
289,675 |
|
|
$ |
359,416 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
||||||
Cost of services (exclusive of depreciation and amortization) |
|
|
211,694 |
|
|
|
214,646 |
|
|
|
263,856 |
|
General and administrative expenses (inclusive of stock-based compensation) |
|
|
27,154 |
|
|
|
28,940 |
|
|
|
27,632 |
|
Depreciation and amortization |
|
|
40,614 |
|
|
|
41,246 |
|
|
|
48,681 |
|
Loss (gain) on disposal of assets |
|
|
(740 |
) |
|
|
(1,239 |
) |
|
|
9,746 |
|
Total costs and expenses |
|
|
278,722 |
|
|
|
283,593 |
|
|
|
349,915 |
|
OPERATING INCOME (LOSS) |
|
|
(8,037 |
) |
|
|
6,082 |
|
|
|
9,501 |
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
||||||
Interest expense |
|
|
(2,664 |
) |
|
|
(2,587 |
) |
|
|
(1,730 |
) |
Other income, net |
|
|
1,386 |
|
|
|
1,464 |
|
|
|
2,943 |
|
Total other income (expense), net |
|
|
(1,278 |
) |
|
|
(1,123 |
) |
|
|
1,213 |
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(9,315 |
) |
|
|
4,959 |
|
|
|
10,714 |
|
INCOME TAX BENEFIT (EXPENSE) |
|
|
5,672 |
|
|
|
(4,217 |
) |
|
|
(1,112 |
) |
NET (LOSS) INCOME |
|
$ |
(3,643 |
) |
|
$ |
742 |
|
|
$ |
9,602 |
|
|
|
|
|
|
|
|
||||||
NET (LOSS) INCOME PER COMMON SHARE: |
|
|
|
|
|
|
||||||
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
Diluted |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
||||||
Basic |
|
|
116,912 |
|
|
|
104,147 |
|
|
|
103,319 |
|
Diluted |
|
|
116,912 |
|
|
|
106,381 |
|
|
|
105,118 |
|
PROPETRO HOLDING CORP. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share data) |
||||||||
(Unaudited) |
||||||||
|
|
March 31, 2026 |
|
December 31, 2025 |
||||
ASSETS |
|
|
|
|
||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
156,645 |
|
|
$ |
91,334 |
|
Accounts receivable - net of allowance for credit losses of |
|
|
228,230 |
|
|
|
200,753 |
|
Inventories |
|
|
15,526 |
|
|
|
13,323 |
|
Prepaid expenses |
|
|
15,048 |
|
|
|
19,896 |
|
Other current assets |
|
|
1,079 |
|
|
|
1,398 |
|
Total current assets |
|
|
416,528 |
|
|
|
326,704 |
|
PROPERTY AND EQUIPMENT - net of accumulated depreciation |
|
|
843,498 |
|
|
|
793,475 |
|
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
|
84,793 |
|
|
|
99,787 |
|
FINANCE LEASE RIGHT-OF-USE ASSETS |
|
|
6,346 |
|
|
|
10,637 |
|
OTHER NONCURRENT ASSETS: |
|
|
|
|
||||
Intangible assets - net of amortization |
|
|
53,113 |
|
|
|
55,476 |
|
Other noncurrent assets |
|
|
5,132 |
|
|
|
4,811 |
|
Total other noncurrent assets |
|
|
58,245 |
|
|
|
60,287 |
|
TOTAL ASSETS |
|
$ |
1,409,410 |
|
|
$ |
1,290,890 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Accounts payable |
|
$ |
115,810 |
|
|
$ |
115,009 |
|
Accrued and other current liabilities |
|
|
57,145 |
|
|
|
65,981 |
|
Interim debt - net of debt issuance costs |
|
|
15,271 |
|
|
|
2,113 |
|
Current maturities of long-term debt - net of debt issuance costs |
|
|
16,851 |
|
|
|
13,844 |
|
Operating lease liabilities |
|
|
41,853 |
|
|
|
43,572 |
|
Finance lease liabilities |
|
|
7,764 |
|
|
|
12,442 |
|
Total current liabilities |
|
|
254,694 |
|
|
|
252,961 |
|
DEFERRED INCOME TAXES |
|
|
57,761 |
|
|
|
63,433 |
|
LONG-TERM DEBT - net of debt issuance costs and current maturities |
|
|
78,573 |
|
|
|
105,613 |
|
NONCURRENT OPERATING LEASE LIABILITIES |
|
|
26,637 |
|
|
|
35,641 |
|
NONCURRENT FINANCE LEASE LIABILITIES |
|
|
172 |
|
|
|
— |
|
OTHER LONG-TERM LIABILITIES |
|
|
2,900 |
|
|
|
3,400 |
|
Total liabilities |
|
|
420,737 |
|
|
|
461,048 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
122 |
|
|
|
104 |
|
Additional paid-in capital |
|
|
1,060,195 |
|
|
|
897,739 |
|
Accumulated deficit |
|
|
(71,644 |
) |
|
|
(68,001 |
) |
Total shareholders’ equity |
|
|
988,673 |
|
|
|
829,842 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
1,409,410 |
|
|
$ |
1,290,890 |
|
PROPETRO HOLDING CORP. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net (loss) income |
|
$ |
(3,643 |
) |
|
$ |
9,602 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
40,614 |
|
|
|
48,681 |
|
Deferred income tax (benefit) expense |
|
|
(5,672 |
) |
|
|
2,844 |
|
Amortization of deferred debt issuance costs |
|
|
165 |
|
|
|
111 |
|
Stock-based compensation |
|
|
4,671 |
|
|
|
3,337 |
|
Loss (gain) on disposal of assets |
|
|
(740 |
) |
|
|
9,746 |
|
Unrealized gain on short-term investment |
|
|
— |
|
|
|
(183 |
) |
Business acquisition contingent consideration adjustments |
|
|
(500 |
) |
|
|
(300 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(27,477 |
) |
|
|
(44,716 |
) |
Other current assets |
|
|
157 |
|
|
|
411 |
|
Inventories |
|
|
(2,203 |
) |
|
|
2,824 |
|
Prepaid expenses |
|
|
4,848 |
|
|
|
1,390 |
|
Accounts payable |
|
|
(2,799 |
) |
|
|
23,456 |
|
Accrued and other current liabilities |
|
|
(4,688 |
) |
|
|
(2,514 |
) |
Net cash provided by operating activities |
|
|
2,733 |
|
|
|
54,689 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: (1) |
|
|
|
|
||||
Capital expenditures |
|
|
(43,364 |
) |
|
|
(40,913 |
) |
Proceeds from sale of assets |
|
|
2,501 |
|
|
|
7,764 |
|
Proceeds from note receivable from sale of business |
|
|
— |
|
|
|
313 |
|
Net cash used in investing activities |
|
|
(40,863 |
) |
|
|
(32,836 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: (1) |
|
|
|
|
||||
Repayments of revolving credit facility borrowings |
|
|
(45,000 |
) |
|
|
— |
|
Repayments of equipment financing term loans |
|
|
(3,556 |
) |
|
|
— |
|
Payments of finance lease obligations |
|
|
(4,789 |
) |
|
|
(4,705 |
) |
Repayments of insurance financing |
|
|
— |
|
|
|
(1,476 |
) |
Payment of debt issuance costs |
|
|
(1,082 |
) |
|
|
— |
|
Proceeds from issuance of common stock under public equity offering |
|
|
164,306 |
|
|
|
— |
|
Payment of costs related to issuance of common stock under public equity offering |
|
|
(867 |
) |
|
|
— |
|
Tax withholdings paid for net settlement of equity awards |
|
|
(5,571 |
) |
|
|
(2,723 |
) |
Net cash provided by (used in) financing activities |
|
|
103,441 |
|
|
|
(8,904 |
) |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
65,311 |
|
|
|
12,949 |
|
CASH AND CASH EQUIVALENTS - Beginning of period |
|
|
91,334 |
|
|
|
50,443 |
|
CASH AND CASH EQUIVALENTS - End of period |
|
$ |
156,645 |
|
|
$ |
63,392 |
|
(1) |
Cash flows from investing activities exclude capital expenditures related to certain financed equipment purchases and cash flows from financing activities exclude corresponding issuances of loans since the lender is an affiliate of the equipment manufacturer. These activities are presented as non-cash investing and financing activities. |
Reconciliation of Capital Expenditures Paid to Capital Expenditures Incurred |
|||||||||||
|
Three Months Ended |
||||||||||
(in thousands) |
March 31, 2026 |
|
December 31, 2025 |
|
March 31, 2025 |
||||||
Capital Expenditures Paid (1) |
$ |
43,364 |
|
|
$ |
64,232 |
|
|
$ |
40,913 |
|
Less: Capital expenditures included in accounts payable and accrued liabilities - beginning of period |
|
(28,095 |
) |
|
|
(50,509 |
) |
|
|
(14,695 |
) |
Add: Capital expenditures included in accounts payable and accrued liabilities - end of period |
|
31,754 |
|
|
|
28,095 |
|
|
|
12,435 |
|
Add: Capital expenditures related to financed equipment purchases - end of period |
|
38,005 |
|
|
|
29,280 |
|
|
|
— |
|
Capital Expenditures Incurred (1) |
$ |
85,028 |
|
|
$ |
71,098 |
|
|
$ |
38,653 |
|
(1) |
This table reconciles cash basis capital expenditures reported in the condensed consolidated statements of cash flows to accrual basis capital expenditures reported in the reportable segment information section below. |
Reportable Segment Information |
|||||||||||||||||||
|
Three Months Ended March 31, 2026 |
||||||||||||||||||
(in thousands) |
Hydraulic Fracturing |
|
Wireline |
|
Cementing |
|
Power Generation |
|
Reconciling Items |
|
Total |
||||||||
Service revenue |
$ |
179,330 |
|
$ |
61,800 |
|
$ |
27,800 |
|
$ |
2,213 |
|
|
$ |
(458 |
) |
|
$ |
270,685 |
Adjusted EBITDA |
$ |
37,044 |
|
$ |
13,651 |
|
$ |
2,118 |
|
$ |
(5,305 |
) |
|
$ |
(11,115 |
) |
|
$ |
36,393 |
Depreciation and amortization |
$ |
32,471 |
|
$ |
4,940 |
|
$ |
2,033 |
|
$ |
1,156 |
|
|
$ |
14 |
|
|
$ |
40,614 |
Operating lease expense on FORCE® fleets (1) |
$ |
15,758 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15,758 |
Capital expenditures incurred |
$ |
11,262 |
|
$ |
1,985 |
|
$ |
295 |
|
$ |
71,486 |
|
|
$ |
— |
|
|
$ |
85,028 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, 2025 |
||||||||||||||||||
(in thousands) |
Hydraulic Fracturing |
|
Wireline |
|
Cementing |
|
Power Generation |
|
Reconciling Items |
|
Total |
||||||||
Service revenue |
$ |
203,880 |
|
$ |
55,425 |
|
$ |
29,553 |
|
$ |
1,381 |
|
|
$ |
(564 |
) |
|
$ |
289,675 |
Adjusted EBITDA |
$ |
52,850 |
|
$ |
12,343 |
|
$ |
3,703 |
|
$ |
(4,492 |
) |
|
$ |
(13,418 |
) |
|
$ |
50,986 |
Depreciation and amortization |
$ |
33,210 |
|
$ |
5,460 |
|
$ |
2,074 |
|
$ |
489 |
|
|
$ |
13 |
|
|
$ |
41,246 |
Operating lease expense on FORCE® fleets (1) |
$ |
16,610 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
16,610 |
Capital expenditures incurred |
$ |
10,139 |
|
$ |
1,644 |
|
$ |
607 |
|
$ |
58,708 |
|
|
$ |
— |
|
|
$ |
71,098 |
(1) |
Represents lease cost related to operating leases on our FORCE® electric-powered hydraulic fracturing fleets. This cost is recorded within cost of services in our condensed consolidated statements of operations and is included in Adjusted EBITDA. |
Non-GAAP Financial Measures
Adjusted EBITDA, Free Cash Flow and Free Cash Flow for Completions Business are not financial measures presented in accordance with GAAP. We define EBITDA as net income (loss) plus (i) interest expense, (ii) income tax expense (benefit) and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA plus (i) loss (gain) on disposal of assets, (ii) stock-based compensation, (iii) business acquisition contingent consideration adjustments, (iv) other expense (income), (v) other unusual or nonrecurring (income) expenses such as impairment expenses, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements and (vi) retention bonus and severance expense. We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities. We define Free Cash Flow for Completions Business as net cash provided by operating activities less net cash used in investing activities plus net cash used in operating activities for PROPWR plus net cash used in investing activities for PROPWR.
We believe that the presentation of these non-GAAP financial measures provide useful information to investors in assessing our financial condition and results of operations. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, and net cash from operating activities is the GAAP measure most directly comparable to Free Cash Flow and Free Cash Flow for Completions Business. Non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider Adjusted EBITDA, Free Cash Flow or Free Cash Flow for Completions Business in isolation or as a substitute for an analysis of our results as reported under GAAP. Because Adjusted EBITDA, Free Cash Flow and Free Cash Flow for Completions Business may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||
|
Three Months Ended |
||||||
(in thousands) |
March 31, 2026 |
|
December 31, 2025 |
||||
Net (loss) income |
$ |
(3,643 |
) |
|
$ |
742 |
|
Depreciation and amortization |
|
40,614 |
|
|
|
41,246 |
|
Interest expense |
|
2,664 |
|
|
|
2,587 |
|
Income tax (benefit) expense |
|
(5,672 |
) |
|
|
4,217 |
|
Loss (gain) on disposal of assets |
|
(740 |
) |
|
|
(1,239 |
) |
Stock-based compensation |
|
4,671 |
|
|
|
4,251 |
|
Business acquisition contingent consideration adjustments |
|
(500 |
) |
|
|
100 |
|
Other income, net (1) |
|
(1,386 |
) |
|
|
(1,464 |
) |
Other general and administrative expense, net |
|
— |
|
|
|
155 |
|
Retention bonus and severance expense |
|
385 |
|
|
|
391 |
|
Adjusted EBITDA |
$ |
36,393 |
|
|
$ |
50,986 |
|
|
|
|
|
||||
(1) |
Other income for the three months ended March 31, 2026 is primarily comprised of interest income of |
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow and Free Cash Flow for Completions Business |
|||||||
|
Three Months Ended |
||||||
(in thousands) |
March 31, 2026 |
|
December 31, 2025 |
||||
Net Cash provided by Operating Activities |
$ |
2,733 |
|
|
$ |
81,044 |
|
Net Cash used in Investing Activities |
|
(40,863 |
) |
|
|
(38,786 |
) |
Free Cash Flow |
|
(38,130 |
) |
|
|
42,258 |
|
Net Cash used in Operating Activities - PROPWR business |
|
8,308 |
|
|
|
3,032 |
|
Net Cash used in Investing Activities - PROPWR business |
|
26,714 |
|
|
|
52,797 |
|
Free Cash Flow for Completions Business |
$ |
(3,108 |
) |
|
$ |
98,087 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430856050/en/
Investor Contacts:
Matt Augustine
Vice President, Finance and Investor Relations
matt.augustine@propetroservices.com
432-219-7620
Source: ProPetro Holding Corp.