ProPetro Reports 11.4% Revenue Decline and 51.8% Drop in Net Income for Q1 2025

ProPetro Holding Corp. reported a decline in financial performance for the first quarter of 2025, with total revenue of $359.4 million, down 11.4% from $405.8 million in the same period last year. The decrease was primarily driven by reduced service revenue in the hydraulic fracturing and wireline segments, which saw declines of 12.9% and 12.1%, respectively. The hydraulic fracturing segment, which constitutes approximately 74.9% of total revenues, generated $269.4 million, reflecting a $39.9 million decrease attributed to lower customer pricing, despite increased operational efficiency and contributions from the recently acquired AquaProp, which added $21.4 million in revenue.

In terms of profitability, ProPetro's net income fell to $9.6 million, a 51.8% decrease from $19.9 million in the prior year. The company reported an operating income of $9.5 million, down from $30.3 million, with total costs and expenses decreasing to $349.9 million from $375.5 million. The reduction in costs was primarily due to lower service costs, which decreased by 8.6% to $263.9 million, and a significant drop in depreciation and amortization expenses, which fell by 17% to $48.7 million. The company also experienced a notable increase in loss on disposal of assets, which rose to $9.7 million compared to just $4,000 in the previous year.

Strategically, ProPetro completed the acquisition of AquaProp in May 2024, expanding its operations into the wet sand solutions market. This acquisition is expected to enhance the company's service offerings and operational capabilities. Additionally, the company has initiated a new subsidiary, ProPetro Energy Solutions, LLC (PROPWR), aimed at providing power generation services, although it has not yet begun revenue-generating activities. The company is also focused on transitioning its fleet to lower emissions equipment, with plans to increase the proportion of lower emissions equipment in its hydraulic fracturing operations.

Operationally, ProPetro's total available hydraulic horsepower (HHP) as of March 31, 2025, was 1,312,000 HHP, with a fleet count averaging approximately 15 hydraulic fracturing fleets. The company has also reported a decrease in its employee headcount, reflecting adjustments to align with current market conditions. Looking ahead, ProPetro anticipates capital expenditures between $295 million to $345 million for 2025, primarily for maintenance and the acquisition of new equipment, including mobile natural gas-fueled power generation equipment. The company remains cautious about market conditions, particularly regarding oil prices and customer demand, which could significantly impact its financial performance in the coming quarters.