Brief Overview on Company’s Performance: ProPetro Holding Corp. (NYSE: PUMP)

On Wednesday, Shares of ProPetro Holding Corp. (NYSE: PUMP) gained 1.00% to $15.60. The stock opened its trade at $15.57 and after floating in a price range of $15.29 to $15.72; the stock grabbed the investor’s attention and traded 945.67K shares as compared to its average daily volume of 2.10M shares. The stock’s insider ownership stands at 1.00%.

ProPetro Holding Corp. (PUMP) recently declared financial and operational results for the full year and fourth quarter of 2017, and additional expansion of its fleet.

Financial Summary:

Revenue for the fourth quarter of 2017 was $313.70M or 11% higher than $282.70M for the third quarter of 2017. Contributing to the increase was larger fleet size and improved pricing for the Company’s pressure pumping and other services. During the fourth quarter of 2017, 97.4% of total revenue was associated with pressure pumping services, as contrast to 96.2% in the third quarter of 2017.

Costs of services excluding depreciation and amortization for the fourth quarter of 2017 increased to $262.00M from $225.40M during the third quarter of 2017 mainly because of larger fleet size, coupled with an associated increase in headcount. As a percentage of pressure pumping segment revenues, pressure pumping costs of services increased to 84% from 80% for the third quarter.

General and administrative expense was $10.30M as contrast to $11.10M in the third quarter of 2017.

Net income for the fourth quarter of 2017 totaled $10.10M, or $0.12 per diluted share, as compared to $22.00M, or $0.25 per diluted share, for the third quarter of 2017.

Adjusted EBITDA for the fourth quarter of 2017 was $42.80M as contrast to $47.80M for the third quarter of 2017.

Capital Spending and Liquidity:

ProPetro incurred $305.30M of capital expenditures in 2017, which was inclusive of seven new build frac fleets, 68 additional Tier 2 diesel engines, a small amount of growth in ancillary services, and maintenance capital expenditures. 2017 full year capital expenditures were $276.80M excluding the $28.50M payment that was incurred at the end of the year for fleet 17, which was not deployed and revenue producing until January of 2018. ProPetro continues to expect maintenance capital expenditures to be about 6% of revenue while growth capital expenditure opportunities will be continuously evaluated.

As formerly declared, on February 22, 2018 the Company expanded the capacity of its existing asset-based loan facility (the “Amended ABL”) to $200.0M – a 33% increase over the previous cap of $150.0M. ProPetro is committed to maintaining financial discipline, a strong balance sheet and ample liquidity. The Company continues to target a net debt to last-twelve-month EBITDA ratio of less than 1.0x and plans to remain below that level for the foreseeable future.

As of December 31, 2017, total liquidity was $103.0M, counting $24.0M in cash as well as $79.0M available under ProPetro’s pre-amended asset-based loan facility.

PUMP has a market value of $1.33B while its EPS was booked as $0.81 in the last 12 months. The stock has 86.25M shares outstanding. In the profitability analysis, the company has gross profit margin of 19.50% while net profit margin was 6.20%. ATR value of the company was 0.61. Analyst recommendation for this stock stands at 2.10.

Marion Frost

Marion Frost

I am Marion Frost and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.