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ProPetro won a Coterra microgrid contract in the Permian Basin, with operations slated to start in early 2026.
The deal lifts PROPWR's contracted capacity above 220 MW, supported by contracts averaging about five years.
PROPWR ordered 190 MW of new equipment, lifting on-order capacity to roughly 550 MW by 2027.
ProPetro Holding Corp.’s (PUMP - Free Report) power-generation subsidiary, PROPWR, has secured a contract from a Coterra Energy Inc. (CTRA - Free Report) subsidiary to deliver turnkey distributed microgrids in New Mexico’s Permian Basin. Operations are set to begin in early 2026, underscoring PROPWR’s speed-to-market and execution strength while advancing reliable, scalable power solutions tailored for oilfield operations.
By combining PROPWR’s technical capabilities and flexible asset base with Coterra Energy’s operational strength and innovative mindset, the partnership is set to deliver a highly responsive, scalable power platform designed specifically for oilfield microgrid needs. PROPWR looks forward to working with Coterra Energy to advance the next phase of distributed power in the Permian Basin and to deepening the collaboration over time.
Contracted Capacity Climbs Past 220 MW
With this agreement, PROPWR’s committed capacity now exceeds 220 megawatts (MW), supported by a weighted average contract tenor of about five years. The growing portfolio highlights PROPWR’s ability to support leading Permian operators while maintaining durable, long-term contracted assets.
Equipment Orders Accelerate Growth Roadmap
To meet rising demand, PROPWR placed orders for an additional 190 megawatts of equipment, bringing delivered or on-order capacity to roughly 550 megawatts. The fleet mix favors high-efficiency natural gas reciprocating engines alongside low-emission modular turbines, with deliveries expected by year-end 2027 and a longer-term target of one gigawatt or more by 2030.
Financial Flexibility Supports Scaling Ambitions
Reflecting the expanded buildout, PROPWR raised its 2026 capital expenditure outlook to $250-$275 million. The company is also advancing a potential $350 million lease finance facility to enhance flexibility, while emphasizing free cash flow as its preferred funding source. After just one year of operations, PROPWR’s rapid progress positions it as a leading provider of innovative power solutions across oilfield, industrial and future data center markets.
Strong Early Execution Positions PROPWR for Long-Term Growth
ProPetro is encouraged by the strong momentum and measurable progress PROPWR has achieved in just its first year of operations. The business has assembled a talented team, secured multiple contracts, deployed assets in the field and established a supply chain platform that provides a clear competitive edge. This foundation supports the company’s long-term growth ambitions and positions PROPWR to emerge as a leading power services provider. At the same time, ProPetro’s core businesses continue to perform well, with 11 frac fleets currently active and activity levels expected to remain strong into 2026.
PUMP’s Zacks Rank & Key Picks
Midland, TX-based ProPetro is an oilfield services provider operating primarily in the Permian Basin, spread over West Texas and New Mexico. Currently, PUMP has a Zacks Rank #3 (Hold).
Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. The Zacks Consensus Estimate for BTE’s 2025 earnings indicates 9.5% year-over-year growth.
Natural Gas Services manufactures, fabricates, sells, rents and services natural gas compressors that enhance the production of natural gas wells. The Zacks Consensus Estimate for NGS’ 2025 earnings indicates 13.3% year-over-year growth.
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ProPetro Wins Coterra Microgrid Deal & Adds 190 MW of Orders
Key Takeaways
ProPetro Holding Corp.’s (PUMP - Free Report) power-generation subsidiary, PROPWR, has secured a contract from a Coterra Energy Inc. (CTRA - Free Report) subsidiary to deliver turnkey distributed microgrids in New Mexico’s Permian Basin. Operations are set to begin in early 2026, underscoring PROPWR’s speed-to-market and execution strength while advancing reliable, scalable power solutions tailored for oilfield operations.
By combining PROPWR’s technical capabilities and flexible asset base with Coterra Energy’s operational strength and innovative mindset, the partnership is set to deliver a highly responsive, scalable power platform designed specifically for oilfield microgrid needs. PROPWR looks forward to working with Coterra Energy to advance the next phase of distributed power in the Permian Basin and to deepening the collaboration over time.
Contracted Capacity Climbs Past 220 MW
With this agreement, PROPWR’s committed capacity now exceeds 220 megawatts (MW), supported by a weighted average contract tenor of about five years. The growing portfolio highlights PROPWR’s ability to support leading Permian operators while maintaining durable, long-term contracted assets.
Equipment Orders Accelerate Growth Roadmap
To meet rising demand, PROPWR placed orders for an additional 190 megawatts of equipment, bringing delivered or on-order capacity to roughly 550 megawatts. The fleet mix favors high-efficiency natural gas reciprocating engines alongside low-emission modular turbines, with deliveries expected by year-end 2027 and a longer-term target of one gigawatt or more by 2030.
Financial Flexibility Supports Scaling Ambitions
Reflecting the expanded buildout, PROPWR raised its 2026 capital expenditure outlook to $250-$275 million. The company is also advancing a potential $350 million lease finance facility to enhance flexibility, while emphasizing free cash flow as its preferred funding source. After just one year of operations, PROPWR’s rapid progress positions it as a leading provider of innovative power solutions across oilfield, industrial and future data center markets.
Strong Early Execution Positions PROPWR for Long-Term Growth
ProPetro is encouraged by the strong momentum and measurable progress PROPWR has achieved in just its first year of operations. The business has assembled a talented team, secured multiple contracts, deployed assets in the field and established a supply chain platform that provides a clear competitive edge. This foundation supports the company’s long-term growth ambitions and positions PROPWR to emerge as a leading power services provider. At the same time, ProPetro’s core businesses continue to perform well, with 11 frac fleets currently active and activity levels expected to remain strong into 2026.
PUMP’s Zacks Rank & Key Picks
Midland, TX-based ProPetro is an oilfield services provider operating primarily in the Permian Basin, spread over West Texas and New Mexico. Currently, PUMP has a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Baytex Energy Corp. (BTE - Free Report) and Natural Gas Services Group, Inc. (NGS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. The Zacks Consensus Estimate for BTE’s 2025 earnings indicates 9.5% year-over-year growth.
Natural Gas Services manufactures, fabricates, sells, rents and services natural gas compressors that enhance the production of natural gas wells. The Zacks Consensus Estimate for NGS’ 2025 earnings indicates 13.3% year-over-year growth.