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ProPetro (PUMP) Provides Fourth-Quarter Preliminary Update

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ProPetro Holding Corp. (PUMP - Free Report) recently issued a preliminary update on fourth-quarter 2020 financial and operational results.

Q4 Financial Estimates

ProPetro’squarterly revenues are projected between $151 million and $157 million. The oilfield service provider’s service cost (excluding depreciation and amortization costs) is estimated in the $112-$119 million band for the fourth quarter. Meanwhile, general and administrative expenses are expected in the $14-$16 million range for the quarter to be reported.

As of Dec 31, 2020, ProPetro had cash and cash equivalents worth $69 million and did not incur any long-term debt. It also has $52 million under its revolving credit facility. Capital expenditures for the full year are projected to be lower than $85 million and in line with the company’s prior expectations.

Other Updates

The company’s fourth-quarter effective fleet utilization is 9.6 while that for the first quarter of 2021 is estimated between 10.5 and 11.5 fleets. The company intends to retire nearly 150,000 hydraulic horsepower (HHP) of Tier II diesel equipment in the March quarter of 2021, a maiden strategic move in its track record so far.

With a view to transform its active fleet for lower emissions and cleaner burning dual fuel device, Propetro aims to reallocate nearly $37 million to planned refurbishment capital expenditure.

Meanwhile, ProPetro commissioned a DuraStim frac pump for field testing with a present customer as it looks to commercialize the sophisticated pump system in the latter half of this year.

With all its planned investments in the Tier IV DGB and the advancement of its fully electric DuraStim® technology, ProPetro moved an inch closer to achieve its target of minimizing operating expenses and reducing emissions.

CEO Phillip Gobe says, “After successfully navigating all the difficulties of 2020, we are building on that success going into 2021. Our best-in-class operating team continues to deliver excellent results to our blue-chip customers in all market conditions, and together we look forward to advancing our mutual sustainability goals in the coming year”.

Company Summary

Founded in 2005, Midland, TX-based ProPetro is an oilfield services provider, operating primarily in the Permian Basin spread over West Texas and New Mexico. The company offers a wide spectrum of specialized, complementary services and equipment for exploration and production of oil and natural gas.

It is set to release fourth-quarter 2020 earnings results on Feb 23, after the market closes. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 22 cents per share while the same for revenues stands at $149.89 million.

Zacks Rank & Key Picks

ProPetro currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are DCP Midstream Partners, LP (DCP - Free Report) , Plains Group Holdings, L.P. (PAGP - Free Report) and CNX Resources Corporation (CNX - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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