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ProPetro (PUMP) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
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ProPetro Holding Corp.’s (PUMP - Free Report) first-quarter 2024 earnings per share of 18 cents beat the Zacks Consensus Estimate of 8 cents. The outperformance could be primarily attributed to improved pricing and increased activity in the reported quarter. The bottom line, however, declined from the year-ago quarter’s reported level of 40 cents.
Revenues of $405.8 million beat the consensus mark of $400 million. This was due to improved pricing and fleet repositioning, additional net pricing gains, a favorable job mix and strong Hydraulic Fracturing and Wireline performance. However, the figure declined 4.2% from the year-ago quarter’s level of $423.6 million.
Adjusted EBITDA amounted to $93.4 million, up 45.3% from $64.3 million reported in the previous quarter. The outperformance was primarily attributable to higher activity and stable pricing during the reported quarter. The reported figure also beat our estimate of $84.3 million.
The company declared that it increased its share repurchase program authorization by $100 million to a total of $200 million on April 24, 2024. The program has been extended to May 2025.
In the reported quarter, the company repurchased and retired 3 million shares for $23 million. To date, the company has retired a total of 8.8 million shares, representing about 8% of the outstanding shares when the program began.
ProPetro Holding Corp. Price, Consensus and EPS Surprise
ProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review.
Service revenues from this unit increased 16.7% to $405.8 million from the prior-year quarter’s level. The figure was higher than our estimate of $388.4 million.
Costs & Financial Position
Total costs and expenses were $375.5 million for the first quarter, down 1.7% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $288.6 million compared with $280.5 million in the comparable period of 2023. Depreciation and amortization totaled $52.2 million compared with $38.3 million in the comparable period of 2023. The company recorded $39.8 million in capital expenditure.
As of Mar 31, PUMP had approximately $46.5 million in cash and cash equivalents. Including cash and $45 million under its revolving credit facility, the company had total liquidity worth $202 million at March-end 2023. Long-term debt amounted to $45 million. The total debt-to-total capital was 4.3%.
Net cash provided by operating activities increased to $74.8 million this quarter, up from $69.7 million last quarter. Free cash flow also turned positive this quarter, reaching $41 million compared to a negative $1.7 million in the prior quarter.
Key Points
Securing Long-Term Growth with ExxonMobil: In this reported quarter, ProPetro secured a significant long-term contract with Exxon Mobil Corporation (XOM - Free Report) to provide two FORCE electric-powered hydraulic fracturing fleets, with the option for a third. This deal strengthens PUMP’s relationship with a leading industry player and expands electric fleet deployment.
Leading the Charge in Electric Fracturing: Four of ProPetro's FORCE electric fleets are under contract with major clients. Three of these innovative fleets are already operational, demonstrating the company’s commitment to sustainable and efficient hydraulic fracturing solutions.
Guidance
ProPetro expects effective fleet utilization to be in the range of 14-15 for the second quarter of 2024.
It anticipates total incurred capital expenditures to be between $200 million and $250 million for full year 2024.
Important Energy Earnings So Far
While we have discussed ProPetro Holding Corp.’s first-quarter result in detail, let’s take a look at some other key energy reports of this season.
SLB (SLB - Free Report) , the largest oilfield contractor, announced first-quarter 2024 earnings of 75 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 74 cents. The bottom line also increased from the year-ago quarter’s level of 63 cents.
SLB’s strong quarterly earnings resulted from higher evaluation and stimulation activities in the international market. As of Mar 31, 2024, the company had approximately $3.5 billion in cash and short-term investments. It had a long-term debt of $10.7 billion at the end of the quarter.
Independent oil refiner and marketer Valero Energy (VLO - Free Report) reported first-quarter 2024 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18, driven by a decline in total cost of sales. Adjusted operating income in the Refining segment totaled $1.7 billion, down from $4.1 billion in the year-ago quarter. The figure surpassed our estimate of $1.6 billion.
Valero’s total cost of sales declined to $29.8 billion from the year-ago figure of $32.1 billion. The figure is also below our estimate of $30.4 billion, primarily due to lower material costs and operating expenses. The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.
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ProPetro (PUMP) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
ProPetro Holding Corp.’s (PUMP - Free Report) first-quarter 2024 earnings per share of 18 cents beat the Zacks Consensus Estimate of 8 cents. The outperformance could be primarily attributed to improved pricing and increased activity in the reported quarter. The bottom line, however, declined from the year-ago quarter’s reported level of 40 cents.
Revenues of $405.8 million beat the consensus mark of $400 million. This was due to improved pricing and fleet repositioning, additional net pricing gains, a favorable job mix and strong Hydraulic Fracturing and Wireline performance. However, the figure declined 4.2% from the year-ago quarter’s level of $423.6 million.
Adjusted EBITDA amounted to $93.4 million, up 45.3% from $64.3 million reported in the previous quarter. The outperformance was primarily attributable to higher activity and stable pricing during the reported quarter. The reported figure also beat our estimate of $84.3 million.
The company declared that it increased its share repurchase program authorization by $100 million to a total of $200 million on April 24, 2024. The program has been extended to May 2025.
In the reported quarter, the company repurchased and retired 3 million shares for $23 million. To date, the company has retired a total of 8.8 million shares, representing about 8% of the outstanding shares when the program began.
ProPetro Holding Corp. Price, Consensus and EPS Surprise
ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. Quote
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review.
Service revenues from this unit increased 16.7% to $405.8 million from the prior-year quarter’s level. The figure was higher than our estimate of $388.4 million.
Costs & Financial Position
Total costs and expenses were $375.5 million for the first quarter, down 1.7% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $288.6 million compared with $280.5 million in the comparable period of 2023. Depreciation and amortization totaled $52.2 million compared with $38.3 million in the comparable period of 2023. The company recorded $39.8 million in capital expenditure.
As of Mar 31, PUMP had approximately $46.5 million in cash and cash equivalents. Including cash and $45 million under its revolving credit facility, the company had total liquidity worth $202 million at March-end 2023. Long-term debt amounted to $45 million. The total debt-to-total capital was 4.3%.
Net cash provided by operating activities increased to $74.8 million this quarter, up from $69.7 million last quarter. Free cash flow also turned positive this quarter, reaching $41 million compared to a negative $1.7 million in the prior quarter.
Key Points
Securing Long-Term Growth with ExxonMobil: In this reported quarter, ProPetro secured a significant long-term contract with Exxon Mobil Corporation (XOM - Free Report) to provide two FORCE electric-powered hydraulic fracturing fleets, with the option for a third. This deal strengthens PUMP’s relationship with a leading industry player and expands electric fleet deployment.
Leading the Charge in Electric Fracturing: Four of ProPetro's FORCE electric fleets are under contract with major clients. Three of these innovative fleets are already operational, demonstrating the company’s commitment to sustainable and efficient hydraulic fracturing solutions.
Guidance
ProPetro expects effective fleet utilization to be in the range of 14-15 for the second quarter of 2024.
It anticipates total incurred capital expenditures to be between $200 million and $250 million for full year 2024.
Important Energy Earnings So Far
While we have discussed ProPetro Holding Corp.’s first-quarter result in detail, let’s take a look at some other key energy reports of this season.
SLB (SLB - Free Report) , the largest oilfield contractor, announced first-quarter 2024 earnings of 75 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 74 cents. The bottom line also increased from the year-ago quarter’s level of 63 cents.
SLB’s strong quarterly earnings resulted from higher evaluation and stimulation activities in the international market. As of Mar 31, 2024, the company had approximately $3.5 billion in cash and short-term investments. It had a long-term debt of $10.7 billion at the end of the quarter.
Independent oil refiner and marketer Valero Energy (VLO - Free Report) reported first-quarter 2024 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18, driven by a decline in total cost of sales. Adjusted operating income in the Refining segment totaled $1.7 billion, down from $4.1 billion in the year-ago quarter. The figure surpassed our estimate of $1.6 billion.
Valero’s total cost of sales declined to $29.8 billion from the year-ago figure of $32.1 billion. The figure is also below our estimate of $30.4 billion, primarily due to lower material costs and operating expenses. The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.