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PUMP reports narrower Q1 loss and slight revenue beat, aided by cost control and Wireline strength.
Revenues fell 24.5% year over year due to weaker Hydraulic Fracturing and Cementing activity.
ProPetro raises 2026 capex outlook, driven by increased PROPWR investments and Caterpillar deal.
ProPetro Holding Corp. (PUMP - Free Report) reported first-quarter 2026 adjusted loss per share of 3 cents, narrower than the Zacks Consensus Estimate of a loss of 12 cents. This performance was primarily backed by disciplined cost management. However, the bottom line declined from the year-ago quarter’s reported figure of 9 cents profit. This underperformance could be primarily attributed to weak pricing and reduced activity in the reported quarter.
Revenues of $271 million marginally beat the consensus mark of $270 million. This outperformance can be attributed to $2.2 million in revenues generated by the Power Generation segment, along with stronger-than-expected service revenues in the Wireline segment, which totaled $61.8 million — 12% above the consensus estimate. However, the top line decreased 24.5% from the year-ago quarter’s level of $359 million. This was due to a year-over-year decline in service revenues from the Hydraulic Fracturing and Cementing segment.
ProPetro Holding Corp. Price, Consensus and EPS Surprise
Adjusted EBITDA totaled $36 million, down 29% from $51 million in the prior quarter. The metric represented 13% of revenues. The decline was primarily caused by lower revenues resulting from weather-related activity disruptions.
PUMP’s Business Reporting Segments
ProPetro conducts its business through four operating segments: Hydraulic Fracturing, Wireline, Cementing and Power Generation.
The hydraulic fracturing operations account for approximately 66% of the company’s total revenues and operations. During the first quarter, Service revenues from this unit decreased 12% to $179.3 million from the previous quarter’s level. Moreover, the figure missed our estimate of $198.4 million.
Wireline revenues totaled $61.8 million, up 11.5% from the previous quarter. Cementing revenues totaled $27.8 million, down 5.9% sequentially. Wireline revenues beat our estimate of $45.1 million, while cementing revenues came in slightly below our projection of $27.9 million.
Meanwhile, power generation revenues came in at $2.2 million, surging 60.2% from the prior quarter. Moreover, the figure beat our estimate of $0.7 million.
Adjusted EBITDA from hydraulic fracturing was $37 million, down 29.9% from the previous quarter, while wireline and cementing reported adjusted EBITDA of $13.7 million and $2.1 million, declining 10.6% and 42.8% sequentially, respectively. The power generation business posted an adjusted EBITDA loss of $5.3 million as PROPWR continues to scale.
PUMP’s Costs & Financial Position
Total costs and expenses were $211.7 million for the first quarter, which was down 20.3% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $211.7 million compared with $263.9 million in the prior-year quarter. On the other hand, depreciation and amortization were reduced 16.6% to $40.6 million from the prior-year quarter's level.
Capital expenditures paid were $43 million, while capital expenditures incurred totaled $85 million. Of the incurred capital expenditures, approximately $14 million supported maintenance in the completions business, while around $71 million supported PROPWR orders.
As of March 31, 2026, ProPetro had $156.6 million in cash and cash equivalents. Borrowings under the financing agreement with Caterpillar Financial Services Corporation were $112 million. Total liquidity was $289 million, including cash and $132 million of available borrowing capacity under the ABL Credit Facility. Long-term debt amounted to $78.6 million. The total debt-to-total capital was 7.4%.
Net cash provided by operating activities was $3 million, down from $81 million in the prior quarter. The decline was mainly due to lower adjusted EBITDA and working capital headwinds, which consumed approximately $32 million in cash during the quarter.
PUMP’s Q2 & 2026 Guidance
For 2026, ProPetro now expects capital expenditures incurred to be in the range of $540-$610 million, up from the previous outlook of $390-$435 million. ProPetro’s completions business is expected to account for $140-$160 million, including $40-$50 million related to planned lease buyouts for a portion of its FORCE electric fleet portfolio.
The company anticipates PROPWR capital expenditures of approximately $400-$450 million in 2026. The increase is primarily tied to down payments for future deliveries associated with the Caterpillar framework agreement. However, these estimates do not reflect the impact of financing arrangements, which are expected to reduce near-term cash outflows.
For the second quarter, ProPetro expects to operate approximately 12 active frac fleets, reflecting early signs of recovery and heightened activity in the Permian completions market. Management noted that the strengthening commodity environment is beginning to support improved pricing and demand across the completions business.
PUMP’s Outlook
ProPetro expects PROPWR to begin delivering positive and increasingly meaningful earnings in the second half of 2026 as deployments scale across contracted customers. Management also cited improving completions market conditions, supported by a stronger commodity backdrop and tightening frac equipment supply. The company remains focused on disciplined execution, capital efficiency and maintaining a strong balance sheet while funding PROPWR’s growth. PUMP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PROPWR Gains Momentum
The company made notable progress in its PROPWR business during the quarter. ProPetro entered into a strategic framework agreement with Caterpillar Inc., securing access to up to approximately 2.1 gigawatts of additional power generation capacity over the next five years. Including approximately 550 megawatts previously ordered, PROPWR is positioned to have roughly 2.6 gigawatts of power generation capacity delivered by year-end 2031 and fully deployed in 2032.
The company also reported major advancements representing several hundred megawatts of high-potential data center opportunities in a select portion of its commercial pipeline. Additionally, ProPetro is in advanced contract negotiations for approximately 100 megawatts to support oil and gas microgrid projects, with deployments expected later this year.
Management stated that PROPWR currently has approximately 240 megawatts committed under contract and expects to secure additional contracts throughout 2026, with future megawatts likely concentrated in data center and industrial applications.
Important Earnings at a Glance
While we have discussed PUMP’s first-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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ProPetro Holding Posts Narrower-Than-Expected Q1 Loss, Sales Beat
Key Takeaways
ProPetro Holding Corp. (PUMP - Free Report) reported first-quarter 2026 adjusted loss per share of 3 cents, narrower than the Zacks Consensus Estimate of a loss of 12 cents. This performance was primarily backed by disciplined cost management. However, the bottom line declined from the year-ago quarter’s reported figure of 9 cents profit. This underperformance could be primarily attributed to weak pricing and reduced activity in the reported quarter.
Revenues of $271 million marginally beat the consensus mark of $270 million. This outperformance can be attributed to $2.2 million in revenues generated by the Power Generation segment, along with stronger-than-expected service revenues in the Wireline segment, which totaled $61.8 million — 12% above the consensus estimate. However, the top line decreased 24.5% from the year-ago quarter’s level of $359 million. This was due to a year-over-year decline in service revenues from the Hydraulic Fracturing and Cementing segment.
ProPetro Holding Corp. Price, Consensus and EPS Surprise
ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. Quote
Adjusted EBITDA totaled $36 million, down 29% from $51 million in the prior quarter. The metric represented 13% of revenues. The decline was primarily caused by lower revenues resulting from weather-related activity disruptions.
PUMP’s Business Reporting Segments
ProPetro conducts its business through four operating segments: Hydraulic Fracturing, Wireline, Cementing and Power Generation.
The hydraulic fracturing operations account for approximately 66% of the company’s total revenues and operations. During the first quarter, Service revenues from this unit decreased 12% to $179.3 million from the previous quarter’s level. Moreover, the figure missed our estimate of $198.4 million.
Wireline revenues totaled $61.8 million, up 11.5% from the previous quarter. Cementing revenues totaled $27.8 million, down 5.9% sequentially. Wireline revenues beat our estimate of $45.1 million, while cementing revenues came in slightly below our projection of $27.9 million.
Meanwhile, power generation revenues came in at $2.2 million, surging 60.2% from the prior quarter. Moreover, the figure beat our estimate of $0.7 million.
Adjusted EBITDA from hydraulic fracturing was $37 million, down 29.9% from the previous quarter, while wireline and cementing reported adjusted EBITDA of $13.7 million and $2.1 million, declining 10.6% and 42.8% sequentially, respectively. The power generation business posted an adjusted EBITDA loss of $5.3 million as PROPWR continues to scale.
PUMP’s Costs & Financial Position
Total costs and expenses were $211.7 million for the first quarter, which was down 20.3% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $211.7 million compared with $263.9 million in the prior-year quarter. On the other hand, depreciation and amortization were reduced 16.6% to $40.6 million from the prior-year quarter's level.
Capital expenditures paid were $43 million, while capital expenditures incurred totaled $85 million. Of the incurred capital expenditures, approximately $14 million supported maintenance in the completions business, while around $71 million supported PROPWR orders.
As of March 31, 2026, ProPetro had $156.6 million in cash and cash equivalents. Borrowings under the financing agreement with Caterpillar Financial Services Corporation were $112 million. Total liquidity was $289 million, including cash and $132 million of available borrowing capacity under the ABL Credit Facility. Long-term debt amounted to $78.6 million. The total debt-to-total capital was 7.4%.
Net cash provided by operating activities was $3 million, down from $81 million in the prior quarter. The decline was mainly due to lower adjusted EBITDA and working capital headwinds, which consumed approximately $32 million in cash during the quarter.
PUMP’s Q2 & 2026 Guidance
For 2026, ProPetro now expects capital expenditures incurred to be in the range of $540-$610 million, up from the previous outlook of $390-$435 million. ProPetro’s completions business is expected to account for $140-$160 million, including $40-$50 million related to planned lease buyouts for a portion of its FORCE electric fleet portfolio.
The company anticipates PROPWR capital expenditures of approximately $400-$450 million in 2026. The increase is primarily tied to down payments for future deliveries associated with the Caterpillar framework agreement. However, these estimates do not reflect the impact of financing arrangements, which are expected to reduce near-term cash outflows.
For the second quarter, ProPetro expects to operate approximately 12 active frac fleets, reflecting early signs of recovery and heightened activity in the Permian completions market. Management noted that the strengthening commodity environment is beginning to support improved pricing and demand across the completions business.
PUMP’s Outlook
ProPetro expects PROPWR to begin delivering positive and increasingly meaningful earnings in the second half of 2026 as deployments scale across contracted customers. Management also cited improving completions market conditions, supported by a stronger commodity backdrop and tightening frac equipment supply. The company remains focused on disciplined execution, capital efficiency and maintaining a strong balance sheet while funding PROPWR’s growth. PUMP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PROPWR Gains Momentum
The company made notable progress in its PROPWR business during the quarter. ProPetro entered into a strategic framework agreement with Caterpillar Inc., securing access to up to approximately 2.1 gigawatts of additional power generation capacity over the next five years. Including approximately 550 megawatts previously ordered, PROPWR is positioned to have roughly 2.6 gigawatts of power generation capacity delivered by year-end 2031 and fully deployed in 2032.
The company also reported major advancements representing several hundred megawatts of high-potential data center opportunities in a select portion of its commercial pipeline. Additionally, ProPetro is in advanced contract negotiations for approximately 100 megawatts to support oil and gas microgrid projects, with deployments expected later this year.
Management stated that PROPWR currently has approximately 240 megawatts committed under contract and expects to secure additional contracts throughout 2026, with future megawatts likely concentrated in data center and industrial applications.
Important Earnings at a Glance
While we have discussed PUMP’s first-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.