ProPetro Holding Corp. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with a net loss of $137.9 million compared to a net income of $85.6 million in 2023. This resulted in a diluted net loss per share of $1.31, a stark contrast to the previous year's earnings of $0.76 per share. Total revenue decreased by 11.4% to $1.44 billion, primarily driven by a 14.7% drop in hydraulic fracturing revenue, which constitutes the bulk of the company's operations. The company attributed this decline to reduced customer activity levels and pricing pressures, despite the addition of AquaProp's operations, which contributed $44.1 million in revenue.
In terms of operational changes, ProPetro made strategic moves including the acquisition of Aqua Prop, LLC, which provides wet sand solutions, for $35.8 million in May 2024. Additionally, the company sold its cementing business in Vernal, Utah, for $13 million in November 2024, recording a gain of $8.2 million from this transaction. The company also launched a new subsidiary, ProPetro Energy Solutions, LLC (PROPWR), aimed at providing power generation services, although it has not yet begun revenue-generating activities.
Operationally, ProPetro's hydraulic fracturing segment accounted for approximately 75.6% of total revenue, while wireline and cementing segments contributed 14.1% and 10.3%, respectively. The average active hydraulic fracturing fleet count decreased to 14 fleets in 2024 from 15 in 2023. The company reported a total available hydraulic horsepower (HHP) of 1,556,500, with a significant portion now consisting of lower emissions equipment, reflecting a strategic shift towards sustainability in response to market demands.
Looking ahead, ProPetro's management expressed cautious optimism, indicating that if market conditions improve, including an increase in the Permian Basin rig count and pricing for services, the company could see a recovery in operational and financial results. However, they acknowledged the ongoing volatility in oil prices and the potential impact of inflation on operational costs. The company plans to continue investing in lower emissions equipment and anticipates capital expenditures ranging from $300 million to $400 million in 2025, which will include investments in both completion services and the new power generation business.
About ProPetro Holding Corp.
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