Alex Selhofer's questions to ProPetro Holding Corp (PUMP) leadership • Q1 2025
Question
Alex Selhofer from Stifel Financial Corp. asked for an update on pressure pumping pricing dynamics, specifically the difference between spot and contract markets. He also questioned the capital allocation framework, focusing on how ProPetro weighs funding the Pro Power business against share buybacks.
Answer
CEO Sam Sledge responded that contracted pricing for high-quality assets remains steady, while the spot market is more fluid, with some competitors offering unsustainable prices that ProPetro avoids. On capital allocation, Sledge prioritized the Pro Power and FORCE e-fleet offerings due to their highly certain, contracted returns, but affirmed the company will maintain flexibility to pursue M&A and buybacks while protecting its balance sheet.