ProPetro (PUMP) Expands Into Power Services With Hybrid Energy Deal After Beating Q3 Expectations

• ProPetro Holding Corp reported third quarter 2025 revenue of US$293.92 million, exceeding analyst forecasts despite an 18.6% year-over-year decline, and posted a reduced net loss of US$2 million with adjusted loss per share beating expectations.
• The company also announced its Propwr division secured a long-term hybrid energy contract with a major Midwest data center operator, marking a significant shift towards power generation services and expanding its role beyond traditional oilfield operations.
• We'll examine how the new hybrid energy contract in the power services segment could reshape ProPetro's investment outlook and business mix.

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ProPetro Holding Investment Narrative Recap

To be a ProPetro Holding shareholder, you have to believe in the company’s ability to execute on its shift toward power generation and hybrid energy contracts, while navigating continued pressure in its core oilfield services business. The latest data center energy contract gives visibility on non-oilfield growth, but near-term performance remains most sensitive to softness in the Permian market and customer activity pullbacks; this news doesn’t significantly alter the most important short-term risks or catalysts.

The standout announcement related to the PROPWR long-term hybrid energy contract signals meaningful expansion into power services, offering a potential new and recurring income stream amid legacy business volatility. However, short-term results for ProPetro are still closely tied to utilization rates and pricing trends in hydraulic fracturing, as shown by mixed segment performance in the latest quarter.

By contrast, the concentration of key customers in the oilfield segment is a risk that investors should be aware of if...

Read the full narrative on ProPetro Holding (it's free!)

ProPetro Holding's outlook anticipates $1.4 billion in revenue and $98.6 million in earnings by 2028. This scenario assumes 1.0% annual revenue growth and a $250.3 million increase in earnings from the current level of -$151.7 million.

Uncover how ProPetro Holding's forecasts yield a $6.89 fair value, a 38% downside to its current price.

Exploring Other Perspectives

Community fair value estimates for ProPetro range from US$6.89 to US$19.82, drawing on five separate Simply Wall St Community analyses. While these diverse opinions reflect varied expectations, ongoing pressure from market softness and customer volatility could have broader impacts on company performance; see how these different viewpoints compare.

Explore 5 other fair value estimates on ProPetro Holding - why the stock might be worth as much as 79% more than the current price!

Build Your Own ProPetro Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ProPetro Holding research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free ProPetro Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ProPetro Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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