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Dec 31, 2023
ProPetro Q4 2023 Earnings Report
Experienced a challenging quarter due to deferred activity and seasonality, but executed strategy through acquisition, electric fleet deployment, and share repurchases.
Key Takeaways
ProPetro reported a challenging fourth quarter with a net loss of $17 million, impacted by seasonality and customer budget exhaustion, despite strategic execution including an acquisition and electric fleet deployment. The company improved profitability in 2023 through disciplined asset deployment, accretive growth, and a sustainable capital allocation plan.
Revenue was $348 million compared to $424 million for the prior quarter.
Net loss of $17 million, or $0.16 per diluted share, compared to net income of $35 million, or $0.31 per diluted share, for the prior quarter.
Adjusted EBITDA of $64 million compared to $108 million in the prior quarter.
Effective utilization was 12.9 fleets compared to 15.5 fleets for the prior quarter.
Forward Guidance
ProPetro anticipates frac fleet utilization of 14 to 15 fleets for the first quarter of 2024 and expects the service sector to remain bifurcated with strong demand for top-tier providers.
Positive Outlook
- Expects the service sector to remain bifurcated.
- Demand for top tier service providers like ProPetro will remain strong throughout the year.
- Activity has already recovered from the impacts experienced in the fourth quarter of 2023.
- On track to deploy the third and fourth FORCESM electric frac fleets in the first half of 2024.
- Expects to generate durable returns in the current low-to-no-growth market environment and through the cycle.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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