Executive Summary

Q4 2024 revenue was $321.0M, down 11% q/q and ~8% y/y; diluted EPS was -$0.17, with adjusted EBITDA of $53.0M as seasonal and holiday downtime reduced utilization while the company kept fleets staffed to prepare for January restarts .
Management introduced 2025 capital spending guidance of $300–$400M (completions $150–$200M; PROPWR $150–$200M, largely financed), and expects 14–15 active frac fleets in Q1 2025; PROPWR orders now total ~140 MW with deliveries beginning mid-2025 into early 2026 .
Free cash flow improved sequentially to $13.4M from -$5.0M in Q3; liquidity rose to $161.0M (cash $50.4M; $111.0M ABL capacity) .
Strategic narrative centers on next-gen electrification (four FORCE fleets under term contracts; fifth expected in 2025) and the launch of PROPWR to address rising Permian power demand; management cites stable pricing at the high end of Permian completions and ongoing attrition among lower-end competitors as supportive of margins .
Wall Street consensus estimates from S&P Global were unavailable at time of analysis—daily request limit exceeded—so beat/miss vs estimates cannot be assessed; we will update when accessible.*

What Went Well and What Went Wrong

What Went Well

“We maintained stable pricing, delivered strong free cash flow, and continued to optimize our fleet with next-generation equipment… [PROPWR] opens a new avenue for growth” (CEO) .
Sequential improvement in free cash flow and stronger liquidity despite revenue decline; total liquidity reached $161.0M and free cash flow rose to $13.4M .
Four FORCE electric fleets are operating under term contracts; a fifth is expected in 2025, with high utilization and strong customer feedback (maintenance capex and operating intensity materially lower than Tier II diesel) .

What Went Wrong

Seasonal and holiday impacts reduced hydraulic fracturing and wireline utilization, driving q/q declines in revenue (-11%) and adjusted EBITDA (-26%) .
A noncash goodwill impairment of $23.6M in wireline contributed to the Q4 net loss; prior quarter included a $188.6M noncash impairment on Tier II diesel assets—highlighting residual portfolio headwinds .
Wireline pricing remained weaker, and competitive pressure persists for conventional diesel fleets; management noted continued softness and plans more integration to bolster performance .

Financial Results

Quarterly Comparison (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$357.0	$360.9	$320.6
Net Income ($USD Millions)	-$3.7	-$137.1	-$17.1
Diluted EPS ($USD)	-$0.03	-$1.32	-$0.17
Adjusted EBITDA ($USD Millions)	$66.1	$71.1	$52.7
Adjusted EBITDA Margin (%)	18.5% (calc)	19.7% (calc)	16.4% (calc)

Note: Adjusted EBITDA margin is computed from cited revenue and Adjusted EBITDA.

Year-over-Year (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024	Δ YoY
Revenue ($USD Millions)	$347.8	$320.6	-7.8%
Net Income ($USD Millions)	-$17.1	-$17.1	~Flat
Diluted EPS ($USD)	-$0.16	-$0.17	Slightly lower

Segment Breakdown (Q4 2024)

Item	Hydraulic Fracturing	Wireline	Cementing	All Other	Reconciling Items	Total
Service Revenue ($USD Thousands)	$236,934	$45,217	$38,476	$—	-$73	$320,554
Adjusted EBITDA ($USD Thousands)	$54,597	$7,084	$6,106	-$370	-$14,761	$52,656
Depreciation & Amortization ($USD Thousands)	$40,359	$5,329	$1,998	$—	$20	$47,706
Operating Lease Expense on FORCE Fleets ($USD Thousands)	$14,500	$—	$—	$—	$—	$14,500

KPIs and Balance Sheet

KPI	Q4 2024
Active Hydraulic Fracturing Fleets (count)	14
Operating Lease Expense – FORCE Fleets ($USD Millions)	$14.5
Capital Expenditures Incurred ($USD Millions)	$24.8
Cash and Cash Equivalents ($USD Millions)	$50.4
Total Liquidity ($USD Millions)	$161.0
Free Cash Flow ($USD Millions)	$13.4
Share Repurchases (MM shares in Q4)	0.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Capital Expenditures ($USD Millions)	FY 2025	—	$300–$400	New
Completions Capex ($USD Millions)	FY 2025	—	$150–$200	New
PROPWR Capex ($USD Millions)	FY 2025	—	$150–$200 (significant portion financed)	New
Active Frac Fleets (count)	Q1 2025	14 (Q4 run rate)	14–15	Maintained/Up to 15
Total Capital Expenditures ($USD Millions)	FY 2024	$175–$200 (Q2 update)	$150–$175 (Q3 update)	Lowered

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Electrification / FORCE e-fleets	Third FORCE deployed; fifth fleet ordered; strong customer adoption	Four fleets by YE; high efficiency; reduced maintenance capex	Four fleets on term contracts; fifth expected in 2025; ~165 MW power demand	Expanding capacity; deeper contracting
Pricing & Mix	Pressure on Tier II diesel; next-gen pricing resilient	Diesel market weak; e-fleet pricing slightly up y/y	High-end Permian pricing “stable”; attrition tightening market	Mix shift to resilient assets
Supply Chain & Capex Discipline	Capex guidance cut to $175–$200; lower intensity	Capex cut to $150–$175; optimization benefits	2025 capex plan for PROPWR + completions; leverage financing	Sustained discipline; growth financed
PROPWR / Power Generation	Announced ~110 MW order; mid-2025–2026 deliveries	Strategy elaborated; data center potential noted	Orders now ~140 MW; EBITDA per MW guidance ($300–$400k/MW/yr) and 2026 impact	Scaling; commercial architecture maturing
Wireline & Cementing	Wireline softer; AquaProp acquired; integration ongoing	Wireline softness; cementing a bright spot	Wireline goodwill impairment; cementing “one of the brightest spots”	Cementing strength; wireline mixed
Contracts & Visibility	Exxon 3-year bundling; bonus structures limited	Contracting momentum; e-fleet term visibility	Pursuing 3–5 year PROPWR contracts; majority asset base could be LT-contracted by 2026	Increasing LT visibility

Management Commentary

CEO: “We maintained stable pricing, delivered strong free cash flow, and continued to optimize our fleet with next-generation equipment… [PROPWR] opening a new avenue for growth” .
CFO: “Fourth quarter revenues decreased 11%… Adjusted EBITDA decreased 26%… net loss included a noncash goodwill impairment of $24M… We anticipate full-year 2025 capex of $300–$400M, split between completions and PROPWR” .
CEO on market structure: “~85 full-time frac fleets in the Permian; ~90% operated by top seven brands—healthy consolidation” .
CEO on PROPWR scope: Initial 140 MW ordered; targeting deliveries mid-2025 to early 2026, with oilfield (drilling, completions, production, midstream) first, and industrial/data center opportunities thereafter .

Q&A Highlights

PROPWR earnings capacity and timeline: Management guided to ~$300k–$400k EBITDA per MW per year and indicated most impact in 2026; deliveries begin mid-2025 and continue into early 2026 .
Pricing/Permian dynamics: High-end Permian pricing stable; management highlights attrition among lower-end providers as a tightening force even in a flat activity market .
Activity outlook: Expect flat industry activity; ProPetro to operate 14–15 fleets in Q1 2025, with potential share gains via performance .
Wireline & cementing: Cementing outlook “brightest spot”; wireline pricing weaker; integration focus to lift performance .
Contracts: PROPWR contracts expected to be 3–5 years; majority of asset base could be under LT contracts by 2026, enhancing earnings stability .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS and revenue were not retrievable due to a daily request limit being exceeded at the time of analysis; as such, we cannot provide an estimate comparison for this quarter. We will update beat/miss analysis once S&P Global data is accessible.*

Key Takeaways for Investors

Sequential FCF and liquidity improved despite seasonal utilization headwinds; the model demonstrates durability with lower capital intensity from electrification and supply chain optimization .
Next-gen mix and contracting: Four FORCE fleets under terms and a fifth in 2025 position margins and utilization defensively vs diesel exposure; management cites stable pricing with high-end Permian customers .
PROPWR is a new growth vector with scalable, financeable capex and multi-year contracts; EBITDA/MW guidance suggests compelling returns as deliveries hit 2H25–2026 .
Wireline remains mixed (goodwill impairment signals reset), while cementing strength and AquaProp integration support broader completions performance .
2025 capex plan is sizable ($300–$400M) but structured (split between completions and PROPWR; financing expected), preserving balance sheet flexibility .
Tactical implication: Near-term trading sensitive to utilization/seasonality normalization in Q1 and traction on PROPWR contracts; medium-term thesis hinges on electrification-led margin sustainability and power segment scaling .
Monitor: Confirmation of PROPWR customer contracts, deliveries/commissioning cadence, FORCE fleet #5 deployment, and any updates to capex guidance and contract coverage across the asset base .

Additional details and disclosures:

Q4 2024 reported revenue $320.6M; cost of services (ex-D&A) $243.5M; D&A $47.7M; operating loss -$18.4M; interest expense $1.9M; net loss -$17.1M; diluted EPS -$0.17 .
Adjusted net loss was $0.6M; adjusted EBITDA $52.7M; free cash flow $13.4M .
Liquidity: Cash $50.4M, ABL borrowings $45.0M, available ABL capacity $111.0M; total liquidity $161.0M .
Segment revenue (Q4): Hydraulic fracturing $236.9M; wireline $45.2M; cementing $38.5M .
Operating lease expense (FORCE fleets) was disclosed as $14.5M in segment detail, while scripted remarks cited $15.0M—minor disclosure variance likely due to rounding/presentation .
PROPWR orders: ~110 MW announced Dec 10, 2024; later expanded to ~140 MW with mix of turbines (≥5 MW) and reciprocating units (≥3 MW) ; management highlighted ~150–200 MW deliveries expected across 2025–2026 .

*Estimates unavailable disclaimer: Values compared to Wall Street consensus could not be retrieved due to an S&P Global daily request limit being exceeded at analysis time. We will refresh with S&P Global consensus when accessible.

ProPetro Holding Corp. (PUMP)·Q4 2024 Earnings Summary