ProPetro Holding Corp. PUMP reported a second-quarter 2026 loss of 7 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. This was due to higher fleet activation costs, unexpected downtime on an out-of-basin project, severe weather in the Permian Basin during June and increased operating expenses, which weighed on earnings. The bottom line was unchanged from the year-ago quarter’s loss of 7 cents.
Revenues of $306 million beat the Zacks consensus estimate of $301 million by 1.66%, primarily due to higher-than-expected Power Generation, Hydraulic Fracturing and Cementing segment revenues, which beat consensus estimates by 97%, 0.5% and 10%, respectively. However, the metric declined 6.2% year over year from $326.2 million in the prior-year quarter, primarily due to lower Wireline revenues, which missed the consensus estimate by 4.9%.
ProPetro Holding Corp. Price, Consensus and EPS Surprise
ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. Quote
Adjusted EBITDA totaled $44.8 million, up 23% from $36.4 million in the prior quarter. The metric represented roughly 15% of revenues and included $15.8 million of operating lease expense related to the company’s FORCE electric fleets. However, the metric missed our estimate of $46.2 million.
PUMP’s Business Reporting Segments
ProPetro conducts its operations through four reporting segments: Hydraulic Fracturing, Wireline, Cementing and Power Generation. Total revenues increased 13% sequentially from $271 million, primarily due to higher completions utilization and incremental PROPWR deployments.
Hydraulic fracturing revenues totaled $207.2 million, up 15.6% from $179.3 million in the prior quarter. However, the figure missed our estimate of $210.2 million. This segment accounted for approximately 68% of ProPetro’s consolidated second-quarter revenues.
Adjusted EBITDA from hydraulic fracturing increased 19.3% sequentially to $44.2 million. However, performance was affected by upfront maintenance and deployment costs associated with activating the 12th fleet, significant downtime on a temporary out-of-basin customer project and severe Permian Basin weather in June.
Wireline revenues totaled $57.5 million, down 6.9% from the previous quarter. However, the figure beat our estimate of $55.2 million. Adjusted EBITDA from the segment declined 16.2% sequentially to $11.4 million. Management nevertheless described wireline utilization, pricing and margins as resilient.
Cementing revenues increased 15.2% sequentially to $32 million. Moreover, the figure beat our estimate of $30.5 million. Segment adjusted EBITDA surged to $5.5 million from $2.1 million, supported by improving activity and higher Permian Basin drilling levels.
Power generation revenues rose to $9.3 million from $2.2 million in the prior quarter. Moreover, the figure beat our estimate of $1.1 million. The segment’s adjusted EBITDA loss narrowed to $0.7 million from $5.3 million. PROPWR also generated positive EBITDA during the quarter’s final two months.
ProPetro’s PROPWR Expansion Gains Momentum
PROPWR added approximately 110 megawatts of contracted power generation capacity across two projects. One project supports a leading integrated upstream operator in the Permian Basin, while the other serves an industrial customer. These awards increased total committed capacity to about 350 megawatts.
The company is also in advanced negotiations for more than 100 megawatts supporting other oil and gas operations. Its data center pipeline includes several hundred megawatts in advanced discussions.
Assets are operating at a Midwest hyperscaler data center site, providing prime behind-the-meter power at scale. ProPetro expects most of PROPWR’s future capacity to serve data center customers, which generally offer longer contract terms than oil and gas and industrial projects.
PUMP’s Costs and Cash Flow
Total costs and expenses were $308 million for the second quarter, which was up 10.9% from the prior-year quarter’s level.Cost of services, excluding depreciation and amortization, totaled $234 million. General and administrative expenses increased to $33.1 million from $27.2 million sequentially, primarily due to costs associated with PROPWR’s growth and financing activities.
Depreciation and amortization rose to $43.5 million from $40.6 million in the prior quarter. The company reported a net loss of $8.1 million compared with a loss of $3.6 million in the first quarter.
Net cash provided by operating activities increased to $66 million from $3 million. The improvement reflected higher adjusted EBITDA and approximately $20 million of working-capital tailwinds. Free cash flow from the completions business totaled $51.1 million.
ProPetro’s Financial Position
As of June 30, 2026, ProPetro had $784 million in cash and cash equivalents, including proceeds from its $690 million convertible senior notes offering. Total liquidity was $905 million, including $121 million of available borrowing capacity under the ABL Credit Facility. Long-term debt amounted to $764.9 million. The total debt-to-total capital was 44.4%.
Capital expenditures paid were $61 million, while incurred capital expenditures totaled $71 million. Approximately $24 million supported completions, while $47 million funded PROPWR equipment orders.
PUMP’s 2026 Outlook
ProPetro now expects 2026 capital expenditures of $525-$595 million, down from the previous guidance of $540-$610 million. Capital spending for the completions business is projected at $125-$145 million, compared with the earlier outlook of $140-$160 million, primarily due to the timing of planned FORCE electric fleet buyouts. The company now expects to complete one fleet buyout in 2026, with the second shifted to early 2027, while reaffirming its long-term plan to acquire all five FORCE electric fleets.
This Zacks Rank #3 (Hold) company maintained its 2026 PROPWR capital expenditure guidance of $400-$450 million, which includes equipment deliveries and Caterpillar-related equipment down payments. Management also reiterated its cost guidance of approximately $1.4-$1.5 million per megawatt, noting that financing arrangements are expected to reduce near-term cash outflows.
ProPetro expects to activate its 13th hydraulic fracturing fleet later in the third quarter, supported by improving customer demand in the Permian Basin. Management also expects PROPWR to begin generating positive and increasingly meaningful earnings in the second half of 2026 and into 2027 as deployments scale across its contracted customer base.
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Important Earnings at a Glance
While we have discussed PUMP’s second-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider Halliburton HAL posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. Halliburton’s outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.
As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.
The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter.
Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
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