Service & Supply | Oilfield Services | Frac Markets - Pressure Pumping

ProPetro To Deploy Three(3) Additional Electric Fleet In Permian

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   |    Thursday,August 08,2019

ProPetro today provided an preliminary look into its 2nd quarter activity.  Here is a quick read through.

• Revenue is down -3% ($529.5 million) vs Q1 2019
• G&A cost is up +$5.1 million, largely due the audit
• 25.6 average frac fleets, expecting to drop to 25 in 3Q19.
• Deploying three (3) electric frac fleets

Preliminary Second Quarter 2019 Financial Summary

Revenue for the second quarter of 2019 was $529.5 million, a decrease of 3% as compared to revenue of $546.2 million for the first quarter of 2019. The decrease was primarily attributable to a slight decrease in customer activity. During the second quarter of 2019, 97.4% of total revenue was associated with pressure pumping services, similar to 97.4% in the first quarter.

General and administrative expense was $27.9 million as compared to $18.5 million in the first quarter of 2019. The increase was due in part to approximately $5.1 million in professional and other advisory costs incurred in connection with the audit committee’s review described above. General and administrative expense, exclusive of stock-based compensation, deferred IPO bonus, retention expense, and legal fees (including fees associated with the audit committee’s review) was $16.7 million, or 3.2% of revenue, for the second quarter of 2019.

Net income for the second quarter of 2019 totaled $36.1 million

Effective utilization of the Company’s fracturing assets during the second quarter of 2019 was 25.6 fleets. ProPetro currently expects effective utilization in the third quarter of 2019 to be approximately 25 fleets. The slight decrease in utilization is primarily attributable to a decrease in customer activity.

As previously announced, the Company plans to deploy three electrically powered DuraStim® hydraulic fracturing fleets beginning in late 2019. Each of these fleets consists of 36,000 HHP and associated auxiliary and mixing equipment and power generation. These fleets will be deployed to two existing customers on a dedicated basis with the first fleet expected to be deployed before the end of 2019.