ProPetro Announces Agreement for FORCESM Electric Hydraulic Fracturing Services
ProPetro Holding Corp. (NYSE: PUMP) has signed a three-year Agreement to provide electric hydraulic fracturing services to ExxonMobil in the Permian Basin. The Agreement includes the deployment of FORCESM electric fleets, emphasizing sustainability and operational excellence. ProPetro aims to deliver innovative, cost-effective, and environmentally friendly energy solutions, showcasing a commitment to high-quality, low-emission services.
- Positive: ProPetro strengthens its relationship with ExxonMobil through a strategic partnership, showcasing dedication to safety and operational excellence.
- Positive: Introduction of FORCESM electric hydraulic fracturing fleets, wireline, and pumpdown services highlight ProPetro's commitment to sustainability and industry leadership.
- Positive: Agreement reinforces ProPetro's strategy validity, aiming to build an efficient and profitable business in the Permian Basin.
- Negative: Potential risks associated with the deployment of new electric hydraulic fracturing fleets and services, including performance incentives with various provisions.
- Negative: Dependence on the success of the partnership with ExxonMobil for long-term profitability and growth.
ProPetro’s Chief Executive Officer, Sam Sledge, commented, "We're thrilled to announce a key strategic step for ProPetro as we strengthen our longstanding relationship with ExxonMobil. Having collaborated with them since 2015, our partnership has always been rooted in safety and operational excellence. Now, by introducing our FORCESM electric fleets, we're moving towards a more sustainable and industrialized future together."
"This step is a significant moment for us, showcasing our collaboration with a leading global energy provider to deliver innovative, cost-effective, and more environmentally friendly energy service solutions through our multi-year agreement. This commitment, which includes electric hydraulic fracturing, wireline, and pumpdown services, underlines our dedication to leading the industry with high-quality, low-emission, and industrialized services."
"On behalf of ProPetro, we look forward to advancing our partnership with ExxonMobil, emphasizing our mutual dedication to reliable and safe operations in the Permian Basin, a cornerstone of energy reliability and security. Today's announcement reinforces our strategy's validity and our drive to build an efficient and profitable business here at ProPetro."
ProPetro will deliver and dedicate FORCESM electric-powered hydraulic fracturing fleets to provide fracture stimulation pumping services coupled with our Silvertip wireline and pumpdown services along with other products in connection with such services. The agreement includes the deployment of two FORCESM electric hydraulic fracturing fleets, wireline, and pumpdown services in the first half of 2024 with an option for a third FORCESM fleet with wireline and pumpdown services to commence operations in early 2025. The services are to be delivered over a three-year term with various provisions including performance incentives.
About ProPetro
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Investor Contacts:
David Schorlemer
Chief Financial Officer
david.schorlemer@propetroservices.com
432-227-0864
Matt Augustine
Director, Corporate Development and Investor Relations
matt.augustine@propetroservices.com
432-219-7620
Source: ProPetro Holding Corp.
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