A month has gone by since the last earnings report for ProPetro Holding (PUMP Quick QuotePUMP - Free Report) . Shares have added about 7.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ProPetro due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

ProPetro's Q2 Earnings, Revenues Beat

ProPetro Holding reported a second-quarter 2022 earnings per share (EPS) of 29 cents, beating the Zacks Consensus Estimate of 26 cents and improving from the year-ago loss of 8 cents. The outperformance could primarily be attributed to improved pricing and increased activity in the reported quarter.

Moreover, revenues of $315 million outpaced the consensus mark of $309 million and jumped 45.3% from the year-ago quarter’s sales of $216.9 million attributable to additional net pricing gains, and increased fleet utilization. This was supported by greater-than-expected revenues from the Pressure Pumping unit – the major contributor to PUMP’s sales. The segment reported revenues of $309.4 million, higher than the consensus mark of $304 million.

This oilfield service provider’s adjusted EBITDA in the second quarter amounted to $76 million, 13.4% up sequentially from $67 million in the last quarter. The sequential increase is primarily attributable to additional pricing gains, increased activity and continued fleet repositioning.

Moreover, ProPetro’s adjusted EBITDA for the Pressure Pumping unit in the June quarter came in at $86.3 million, which marginally outperformed the Zacks Consensus Estimate of $86 million.

Pressure Pumping

ProPetro provides hydraulic fracturing, cementing and acidizing functions through the Pressure Pumping segment. The business contributed a little more than 98.2% to PUMP's total revenues in the quarter under review. In particular, service revenues from this unit surged about 11.7% from the last quarter’s levels to $309.4 million, attributable to augmented activity and enhanced pricing.

Costs & Financial Position

ProPetro’s second-quarter total costs and expenses were $355.3 million, up 55.4% from the prior-year quarter. The service cost was $218.8 million compared with $162.8 million in the second quarter of 2021.

The company spent $80 million on capital expenditure. In the second quarter, the company booked $0.6 million of positive free cash flows.

As of June 30, the Midland, TX-based operator had approximately $69.8 million in cash and cash equivalents and no debt. ProPetro had total liquidity of $185 million at the end of June 2022.

Guidance

ProPetro’s guidance for effective utilization for the second half of 2022 is anticipated to be in the range of 14 to 15 fleets.

The company updated its outlook for the full-year CapEx spending to $300-350 range from the earlier guidance between the $250 million-$300 million range.


 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

The consensus estimate has shifted 5.18% due to these changes.

VGM Scores

At this time, ProPetro has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

ProPetro is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Liberty Oilfield Services (LBRT Quick QuoteLBRT - Free Report) , a stock from the same industry, has gained 9.4%. The company reported its results for the quarter ended June 2022 more than a month ago.

Liberty Oilfield Services reported revenues of $942.62 million in the last reported quarter, representing a year-over-year change of +62.2%. EPS of $0.55 for the same period compares with -$0.29 a year ago.

For the current quarter, Liberty Oilfield Services is expected to post earnings of $0.60 per share, indicating a change of +372.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.5% over the last 30 days.

Liberty Oilfield Services has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.