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ProPetro's PROPWR Wing Lands First 10-Year, 80MW Power Deal

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ProPetro Holding Corp’s (PUMP - Free Report) power solutions division, PROPWR, has taken a major step forward with signing its first-ever contract, committing to deliver 80 megawatts (MW) of power capacity over a 10-year period. This milestone represents the launch of a new era in distributed power for the oilfield services sector and aligns with PROPWR’s mission to “Rethink The Grid.”

Partnering with a leading Permian-focused exploration and production operator, PROPWR will begin deploying assets in the third quarter of 2025, continuing into 2026. The project involves delivering turnkey power to a distributed microgrid using in-field gas where traditional utility infrastructure is unavailable. With a mix of natural gas reciprocating engines and gas turbines, the installation promises reliable, low-emission power to support ongoing production operations.

A Strategic Win in a Changing Energy Landscape

The agreement not only secures stable, long-term earnings for PROPWR but also underscores the demand for flexible and resilient energy infrastructure in remote oilfield locations. Beyond power delivery, PROPWR will handle all on-site operations, maintenance, monitoring and guarantee power availability — all backed by take-or-pay obligations from the customer.

For ProPetro, this contract reflects its evolving role in delivering innovative solutions to the energy sector. Given the uncertain oil and gas environment, PROPWR puts the company in a strong position to serve its customers with more reliable, lower-cost and lower-emission power, preparing ProPetro for a brighter future.

Momentum and Market Confidence Building

The demand for PROPWR’s services is exceeding expectations. The company, in its first-quarter earnings call, reported that it has already signed a letter of intent with a second customer and is actively negotiating more long-term agreements. These new deals are expected to further solidify PROPWR’s market presence and drive meaningful growth across ProPetro’s broader portfolio.

Given the expected bright future of the PROPWR business, ProPetro plans to allocate $170 million and $60 million in 2025 and 2026, respectively, in capital spending of its PROPWR division to support current equipment orders.

PUMP’s Zacks Rank and Key Picks

Midland, TX-based ProPetro Holding is an oilfield services provider operating primarily in the Permian Basin, spread over West Texas and New Mexico. Currently, PUMP has a Zacks Rank #4 (Sell).

Investors interested in the energy sector might look at some top-ranked stocks like Prairie Operating Co. (PROP - Free Report) , Global Partners LP (GLP - Free Report) and RPC, Inc. (RES - Free Report) .While Prairie Operating and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 389.05% year-over-year growth.

Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. Global Partners owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP’s 2025 earnings indicates 17.84% year-over-year growth.

Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES’ next quarter earnings indicates 33.33% growth.

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