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Mar 31, 2022
ProPetro Q1 2022 Earnings Report
ProPetro's financial performance improved, marked by revenue growth and increased profitability.
Key Takeaways
ProPetro reported a strong first quarter in 2022, with a 15% increase in revenue to $283 million and a net income of $12 million, or $0.11 per diluted share, compared to a net loss in the previous quarter. The company also saw an 81% increase in Adjusted EBITDA to $67 million.
Total revenue increased by 15% to $283 million compared to the previous quarter.
Net income was $12 million, or $0.11 per diluted share, a significant improvement from the previous quarter's net loss.
Adjusted EBITDA increased by 81% to $67 million, representing 24% of revenues.
Effective fleet utilization improved to 13.7 fleets compared to 12.5 fleets in the prior quarter.
Forward Guidance
ProPetro anticipates the balance of the year to be challenging due to managing input costs, supply chain pressures, human capital, and operational risks as the pressure pumping market tightens. They are focusing on optimizing cash returns and strategically converting conventional diesel assets to natural gas-powered equipment.
Positive Outlook
- Team is encouraged by the step change in performance during the first quarter.
- Continue to concentrate efforts on optimizing the full-cycle cash-on-cash return profiles of our currently operating fleets.
- Will continue to strategically convert many of our conventional diesel assets into more marketable natural gas-powered equipment
- Assets will be placed with E&P’s that have core acreage positions and sizeable drilling inventories.
- Most focused on operating our business and collaborating with customers in a manner that allows us to significantly expand our earnings power and create value for all stakeholders
Challenges Ahead
- Operational and logistical headwinds experienced validate our belief that operating margins in pressure pumping do not reflect levels needed to justify the additional risk ProPetro assumes in marketing and deploying any additional horsepower.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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