second quarter of 2026
Filed Jul 29, 2026ProPetro Reports Financial Results for the Second Quarter of 2026
Revenue and Adjusted EBITDA increased from the prior quarter and the completions business generated $51 million of free cash flow, but the Company reported a wider net loss, higher G&A expense and operational disruptions during the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $306 million | 13% | – |
| Cost of services, excluding depreciation and amortization expensesother | $234 million | – | – |
| Depreciation and amortization expenses excluded from cost of servicesother | approximately $41 million | – | – |
| General and administrative expenseGAAP | $33 million | – | – |
| General and administrative expense excluding nonrecurring and noncash itemsother | $27 million | 20% | – |
| General and administrative expense excluding nonrecurring and noncash items as a percentage of revenueother | 9% of revenue | – | – |
| Net lossGAAP | $8 million | – | – |
| Loss per diluted shareGAAP | $0.07 loss per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $45 million | 23% | – |
| Adjusted EBITDA as a percentage of revenuenon-GAAP | 15% of revenue | – | – |
| Net cash provided by operating activitiesGAAP | $66 million | – | – |
| Net cash used in investing activitiesGAAP | $58 million | – | – |
| Free Cash Flow from Completions Businessnon-GAAP | $51 million | – | – |
| Capital expenditures paidother | $61 million | – | – |
| Capital expenditures incurredother | $71 million | – | – |
| Cash and cash equivalentsother | $784 million | – | – |
| Borrowings under financing agreement with Caterpillar Financial Services Corporationother | $130 million | – | – |
| Total liquidityother | $905 million | – | – |
third quarter of 2026 and year-end 2031 outlook
- Notea thirteenth fleet, which we expect to begin contributing toward the end of the third quarter
- Noteup to approximately 2.6 gigawatts of power generation capacity planned to be delivered by year-end 2031
What drove it
- The 13% increase in revenue was primarily driven by increased utilization in the completions business and incremental deployments in the PROPWR business.
- Adjusted EBITDA increased primarily due to higher revenues resulting from increased utilization in the completions business and incremental deployments in PROPWR.
- Second-quarter working capital was an approximately $20 million source of cash.
- ProPetro added approximately 110 megawatts of power generation capacity committed under contract across two separate projects, bringing total capacity committed under contract to approximately 350 megawatts.
- Assets were deployed and operating at a Midwest hyperscaler data center site.
- The Permian Basin rig count was up nearly 10% off its first-quarter low.
Concerns
- Results were negatively impacted by upfront costs associated with standing up the twelfth fleet.
- A temporary out-of-basin fleet deployment experienced significant unexpected downtime.
- Severe weather interrupted operations across the Permian Basin in June.
- G&A expense excluding nonrecurring and noncash items increased 20% as compared to the prior quarter, primarily due to costs associated with PROPWR's growth and related financing activities.
- Management cited uncertainty around the broader macro environment and subsequent impacts from the Iran War.
- First-quarter working capital headwinds consumed approximately $32 million in cash.
What to watch
- The thirteenth fleet is expected to begin contributing toward the end of the third quarter.
- Advanced contract negotiations for over 100 megawatts supporting oil and gas operations.
- Multiple data center commercial opportunities, including a subset of several hundred megawatts in advanced discussions.
- Execution and returns as PROPWR scales across data center, oil and gas and industrial customers.
- The planned timing of FORCE® fleet buyouts after management lowered expected 2026 completions capital expenditures.
Balance sheet and cash flow
- Cash and cash equivalents were $784 million, including proceeds from the issuance of $690 million aggregate principal amount of convertible senior notes.
- Borrowings under the Company's financing agreement with Caterpillar Financial Services Corporation were $130 million.
- This financing agreement was recently upsized to $167 million held by Caterpillar.
- Total liquidity at the end of the second quarter of 2026 was $905 million, which included cash and cash equivalents and $121 million of available borrowing capacity under the ABL Credit Facility.
- The Company currently has no outstanding borrowings under the ABL Credit Facility.
- Capital expenditures paid were $61 million and capital expenditures incurred were $71 million, including approximately $24 million supporting the Company's completions business and approximately $47 million supporting its PROPWR orders.
- Net cash used in investing activities was $58 million, which included capital expenditures paid of $61 million, offset by $3 million in proceeds from certain asset sales.
- The Company has now raised approximately $1.5 billion over the past eighteen months to help fund PROPWR's growth.
- The offering of $690 million aggregate principal amount of convertible notes resulted in 0% coupon notes with no dilution for shareholders until the stock price reaches $29.49 per share.
Analysis
ProPetro reported a sequential improvement in activity and adjusted profitability in the second quarter. Revenue increased to $306 million from $271 million in the first quarter, driven by higher completions utilization and incremental PROPWR deployments. Adjusted EBITDA increased to $45 million from $36 million and represented 15% of revenue. The completions business generated $51 million of Free Cash Flow from Completions Business, while net cash provided by operating activities rose to $66 million from $3 million, aided by higher Adjusted EBITDA and an approximately $20 million working-capital source of cash.
The reported GAAP result remained under pressure. Net loss widened to $8 million, or $0.07 loss per diluted share, from a $4 million loss, or $0.03 loss per diluted share, in the prior quarter. Management identified upfront costs from standing up the twelfth fleet, significant unexpected downtime on a temporary out-of-basin fleet deployment and severe Permian weather in June as quarterly headwinds. G&A expense was $33 million, compared with $27 million in the first quarter, while G&A expense excluding nonrecurring and noncash items was $27 million, or 9% of revenue, and increased 20% from the prior quarter because of PROPWR growth and financing activities.
Capital deployment was concentrated in PROPWR. Capital expenditures incurred were $71 million, including approximately $47 million for PROPWR orders and approximately $24 million for the completions business. Capital expenditures paid were $61 million, while investing cash outflow was $58 million after $3 million of asset-sale proceeds. Management said it had lowered expected 2026 completions capital expenditures because of a slight timing shift in planned FORCE® fleet buyouts, but the filing text does not provide the revised annual capital-expenditure amount.
Liquidity was substantial following the convertible-note issuance. Cash and cash equivalents were $784 million, including proceeds from $690 million aggregate principal amount of convertible senior notes, and total liquidity was $905 million. The Company also reported $130 million of borrowings under its Caterpillar financing agreement, no outstanding ABL borrowings and $121 million of available ABL borrowing capacity. Management emphasized that the capital structure supports PROPWR expansion, with approximately $1.5 billion raised over the past eighteen months.
PROPWR commercial progress is the main growth catalyst disclosed in the release. The Company added approximately 110 megawatts of contracted generation capacity, taking total capacity committed under contract to approximately 350 megawatts, and reported active data-center, oil-and-gas and industrial opportunities. Assets are operating at a Midwest hyperscaler data center site. The near-term operational focus is the activation of a thirteenth completions fleet expected to begin contributing toward the end of the third quarter, alongside conversion of the PROPWR commercial pipeline and execution on financed deployments.
Management, verbatim
Even with these impacts, our completions business generated resilient free cash flow, a clear demonstration that the industrialized model we have built is working.
Sam Sledge, Chief Executive Officer
Our confidence in a more favorable operating environment going forward is also reflected in our decision to activate a thirteenth fleet, which we expect to begin contributing toward the end of the third quarter.
Sam Sledge, Chief Executive Officer
During the quarter, we generated meaningful free cash flow from our completions business while continuing investment in the growth of PROPWR, and we have since lowered our expected 2026 completions capital expenditures reflecting a slight shift in the timing of our planned FORCE® fleet buyouts.
Caleb Weatherl, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-year comparisons for revenue, earnings, EPS, Adjusted EBITDA, cash flow and capital expenditures
- Segment revenue, segment margins and segment profit metrics
- Gross profit and gross margin
- Operating income or loss and operating margin
- Income tax expense or benefit and tax rate
- GAAP net income or loss reconciliation details beyond the reported net loss
- Diluted share count
- Formal revenue, margin, operating-expense or tax-rate guidance
- Revised 2026 completions capital-expenditure guidance amount
- Dividend, share-repurchase or other shareholder capital-return disclosure
- Free cash flow for the Company as a whole
- Prior-quarter comparisons for cost of services, capital expenditures, cash, debt and liquidity
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.