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ProPetro (PUMP) Orders 50 Tier IV DGB Pumping Unit for $74M
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ProPetro Holding Corp. (PUMP - Free Report) recently announced a $74-million contract for 50 Tier IV Dynamic Gas Blending (DGB) pumping unit conversions. The 50 pumping units will be utilized in transforming the current Tier II diesel units into Tier IV DGB dual-gas engines to trim toxic emissions. Deliveries of the same will start this December and continue until the early part of 2022.
ProPetro's dedication to these conversions exemplifies its commitment to providing top-tier efficiency and dependence on hydraulic fracturing services in the Permian Basin as well as offering ESG-friendly solutions to its clients.
Dual-gas fleets continue to be popular in the market. These units will also improve ProPetro's ESG profile and service portfolio by supplying improved and more efficient engines that will replace diesel and reduce emissions by expanding natural gas use in frac operations.
The present supply-chain stress according to ProPetro will continue to lengthen delivery delays for essential oilfield equipment until 2022 while the danger of inflation threatens to shoot up costs even higher. As a result, the company decided to move forward a commitment of $74 million in expected capex of $74 million for 2022 to ensure that the company's next-year equipment conversion plans are completed on time. These modifications will complement the existing equipment's continuing maintenance plans.
The first $30 million of the $74 million will be paid in 2021 with the rest coming in during the first half of 2022 as deliveries proceed. The company now anticipates incurred capital expenditures for 2021 to be around $145-$160 million. ProPetro's total available liquidity, which includes cash and available capacity under the company's revolving line of credit, was more than $130 million as of Sep 28, 2021.
ProPetro announced plans to undertake significant supply-chain investments in its latest earnings report. The aforementioned orders support management's earlier-made promises and justify the price rise all over the company's service suite during the preceding months. The company's capital discipline and balance sheet strength with zero debt allowed it to make these astute investments at this crucial moment.
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 third-quarter 2021 earnings results on Nov 2, after the market closes. The Zacks Consensus Estimate is pegged at a loss of 4 cents per share for the to-be-reported quarter while the same for revenues stands at $226.21 million.
Zacks Rank & Key Picks
ProPetro currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Continental Resources, Inc. , Whiting Petroleum Corporation and Magnolia Oil & Gas Corp (MGY - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources’ earnings beat the Zacks Consensus Estimate in three of the previous four quarters, missing the same on one occasion.
Whiting Petroleum’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters.
Magnolia’s earnings beat the Zacks Consensus Estimate in all the last four quarters.
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ProPetro (PUMP) Orders 50 Tier IV DGB Pumping Unit for $74M
ProPetro Holding Corp. (PUMP - Free Report) recently announced a $74-million contract for 50 Tier IV Dynamic Gas Blending (DGB) pumping unit conversions. The 50 pumping units will be utilized in transforming the current Tier II diesel units into Tier IV DGB dual-gas engines to trim toxic emissions. Deliveries of the same will start this December and continue until the early part of 2022.
ProPetro's dedication to these conversions exemplifies its commitment to providing top-tier efficiency and dependence on hydraulic fracturing services in the Permian Basin as well as offering ESG-friendly solutions to its clients.
Dual-gas fleets continue to be popular in the market. These units will also improve ProPetro's ESG profile and service portfolio by supplying improved and more efficient engines that will replace diesel and reduce emissions by expanding natural gas use in frac operations.
The present supply-chain stress according to ProPetro will continue to lengthen delivery delays for essential oilfield equipment until 2022 while the danger of inflation threatens to shoot up costs even higher. As a result, the company decided to move forward a commitment of $74 million in expected capex of $74 million for 2022 to ensure that the company's next-year equipment conversion plans are completed on time. These modifications will complement the existing equipment's continuing maintenance plans.
The first $30 million of the $74 million will be paid in 2021 with the rest coming in during the first half of 2022 as deliveries proceed. The company now anticipates incurred capital expenditures for 2021 to be around $145-$160 million. ProPetro's total available liquidity, which includes cash and available capacity under the company's revolving line of credit, was more than $130 million as of Sep 28, 2021.
ProPetro announced plans to undertake significant supply-chain investments in its latest earnings report. The aforementioned orders support management's earlier-made promises and justify the price rise all over the company's service suite during the preceding months. The company's capital discipline and balance sheet strength with zero debt allowed it to make these astute investments at this crucial moment.
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 third-quarter 2021 earnings results on Nov 2, after the market closes. The Zacks Consensus Estimate is pegged at a loss of 4 cents per share for the to-be-reported quarter while the same for revenues stands at $226.21 million.
Zacks Rank & Key Picks
ProPetro currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Continental Resources, Inc. , Whiting Petroleum Corporation and Magnolia Oil & Gas Corp (MGY - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources’ earnings beat the Zacks Consensus Estimate in three of the previous four quarters, missing the same on one occasion.
Whiting Petroleum’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters.
Magnolia’s earnings beat the Zacks Consensus Estimate in all the last four quarters.