ProPetro Announces ProPWRSM Power Generation Business
ProPetro (NYSE: PUMP) has announced the launch of ProPWR, a new subsidiary focused on mobile natural gas-fueled power generation. The company has placed an initial order for over 110 megawatts of power generation equipment, representing a $122 million investment. The equipment will serve multiple oilfield and industrial applications across the Permian Basin.
The investment will be funded through a combination of cash (up to $20 million in early 2025) and external financing. Equipment deliveries are scheduled between June 2025 and March 2026. ProPWR aims to support ProPetro's FORCE® electric-powered hydraulic fracturing fleets, which currently utilize approximately 140 megawatts of mobile power generation capacity, and plans to expand into non-oil and gas applications such as industrial projects and data centers.
ProPetro (NYSE: PUMP) ha annunciato il lancio di ProPWR, una nuova filiale focalizzata sulla generazione di energia mobile alimentata a gas naturale. L'azienda ha effettuato un ordine iniziale per oltre 110 megawatt di attrezzature per la generazione di energia, rappresentando un investimento di 122 milioni di dollari. L'attrezzatura servirà a molteplici applicazioni nel settore petrolifero e industriale nel Permian Basin.
L'investimento sarà finanziato tramite una combinazione di liquidità (fino a 20 milioni di dollari all'inizio del 2025) e finanziamenti esterni. Le consegne delle attrezzature sono programmate tra giugno 2025 e marzo 2026. ProPWR intende supportare le flotte di fratturazione idraulica elettriche FORCE® di ProPetro, che attualmente utilizzano circa 140 megawatt di capacità di generazione di energia mobile, e prevede di espandersi in applicazioni non petrolifere e di gas, come progetti industriali e centri dati.
ProPetro (NYSE: PUMP) ha anunciado el lanzamiento de ProPWR, una nueva subsidiaria centrada en la generación de energía móvil con combustible de gas natural. La compañía ha realizado un pedido inicial de más de 110 megavatios de equipo de generación de energía, lo que representa una inversión de 122 millones de dólares. El equipo servirá a múltiples aplicaciones en campos petroleros e industriales a lo largo de la Cuenca de Permian.
La inversión se financiará a través de una combinación de efectivo (hasta 20 millones de dólares a principios de 2025) y financiamiento externo. Las entregas de equipos están programadas entre junio de 2025 y marzo de 2026. ProPWR tiene como objetivo apoyar las flotas de fracturación hidráulica eléctrica FORCE® de ProPetro, que actualmente utilizan aproximadamente 140 megavatios de capacidad de generación de energía móvil, y planea expandirse a aplicaciones no relacionadas con petróleo y gas, como proyectos industriales y centros de datos.
ProPetro (NYSE: PUMP)는 이동식 천연가스 연료 발전에 중점을 둔 새로운 자회사 ProPWR의 출범을 발표했습니다. 회사는 110메가와트 이상의 발전 장비 초기 주문을 했으며, 이는 1억2200만 달러의 투자를 의미합니다. 이 장비는 퍼미안 분지의 여러 유전 및 산업 응용 프로그램에 사용될 것입니다.
이 투자는 현금(2025년 초까지 2000만 달러)과 외부 자금 조달의 조합을 통해 자금을 조달합니다. 장비 배송은 2025년 6월부터 2026년 3월 사이에 예정되어 있습니다. ProPWR는 현재 약 140메가와트의 이동식 전력 생성 능력을 사용하는 ProPetro의 FORCE® 전기식 유압 파쇄대 지원을 목표로 하며, 산업 프로젝트와 데이터 센터와 같은 비석유 및 가스 응용 분야로의 확장을 계획하고 있습니다.
ProPetro (NYSE: PUMP) a annoncé le lancement de ProPWR, une nouvelle filiale axée sur la génération d'énergie mobile alimentée au gaz naturel. L'entreprise a passé une commande initiale de plus de 110 mégawatts d'équipement de génération d'énergie, représentant un investissement de 122 millions de dollars. L'équipement servira à plusieurs applications pétrolières et industrielles dans le bassin permien.
Cette investissement sera financé par une combinaison de liquidités (jusqu'à 20 millions de dollars au début de 2025) et de financement externe. Les livraisons d'équipements sont prévues entre juin 2025 et mars 2026. ProPWR vise à soutenir les flottes de fracturation hydraulique électrique FORCE® de ProPetro, qui utilisent actuellement environ 140 mégawatts de capacité de génération d'énergie mobile, et prévoit de s'étendre à des applications non liées au pétrole et au gaz, telles que des projets industriels et des centres de données.
ProPetro (NYSE: PUMP) hat die Einführung von ProPWR, einer neuen Tochtergesellschaft, die sich auf mobile, mit Erdgas betriebene Stromerzeugung konzentriert, angekündigt. Das Unternehmen hat eine erste Bestellung von über 110 Megawatt an Stromerzeugungsanlagen aufgegeben, was eine Investition von 122 Millionen Dollar darstellt. Die Ausrüstung wird für mehrere Anwendungen in der Ölindustrie und Industrie im Permian Basin verwendet.
Die Investition wird durch eine Kombination aus Bargeld (bis zu 20 Millionen Dollar Anfang 2025) und externen Finanzierungen finanziert. Die Lieferung der Geräte ist zwischen Juni 2025 und März 2026 geplant. ProPWR zielt darauf ab, die FORCE® elektrisch betriebenen hydraulischen Fracking-Flotten von ProPetro zu unterstützen, die derzeit über eine mobile Stromerzeugungskapazität von etwa 140 Megawatt verfügen, und plant, sich in nicht-öl- und gasbezogene Anwendungen wie Industrieprojekte und Rechenzentren zu erweitern.
- Diversification into power generation services with new subsidiary ProPWR
- Secured initial order of 110+ megawatts of power generation equipment
- Potential for revenue expansion through non-oil and gas applications
- Strategic alignment with existing FORCE® electric-powered fracturing operations
- Significant capital investment of $122 million required
- Long lead time for equipment delivery (mid-2025 to early 2026)
- Contracts for equipment deployment still under negotiation
- Additional external financing needed beyond cash investment
Insights
The launch of ProPWR represents a significant $122 million strategic investment into the power generation sector, marking ProPetro's first new service line in over a decade. The investment structure, with only
The business model shows promise with multiple revenue streams - supporting internal operations, oilfield services and potential expansion into industrial and data center markets. The timing of equipment delivery (June 2025-March 2026) allows for contract negotiations and market development while maintaining financial flexibility. With 110+ megawatts of initial capacity complementing their existing 140 megawatts used in fracturing operations, ProPetro is positioning itself as a significant player in the regional power generation market.
ProPWR's strategic entry into power generation addresses critical infrastructure needs in the Permian Basin's rapidly evolving energy landscape. The initiative demonstrates excellent market timing, as the region faces increasing power demands from both traditional oil & gas operations and emerging industrial development. The dual-use capability of the equipment - supporting both ProPetro's electric fracturing fleets and external customers - creates operational synergies and risk mitigation.
The natural gas-fueled power generation approach aligns with the industry's shift toward cleaner energy solutions while leveraging abundant local gas resources. By targeting both oilfield and non-oilfield applications, ProPetro is diversifying its revenue streams and reducing exposure to oil & gas cyclicality. The leadership team's industry experience and existing customer relationships should facilitate market penetration and accelerate growth opportunities.
Sam Sledge, CEO of ProPetro, stated, "We are thrilled to announce our first organic service line startup in over a decade, a testament to our willingness to innovate and draw on our entrepreneurial roots. ProPWRSM is aimed squarely at the growing power demand across the Permian Basin for both oil and gas and developing infrastructure opportunities within the market, and to create more certainty of power generation capacity for our high-performance FORCE® electric-powered hydraulic fracturing fleets. We have assembled a first-class team led by industry veterans Travis Simmering, President of ProPWRSM, and Dave Bosco, Vice President of Technical Services, who are managing our operations and commercial efforts. By leveraging ProPetro’s established platform and extensive customer base, they are well-positioned to drive our success. As always, we will be focused on premium service quality and reliability paired with commercial creativity and innovation that all our stakeholders have come to expect from ProPetro.”
Travis Simmering, President of ProPWRSM, commented, "We are excited to provide a differentiated power generation experience in the Permian Basin. The forecasted load growth for electricity is significant and these assets will enable ProPetro to access growth markets, inclusive of supporting ProPetro’s industry-leading and expanding FORCE® electric-powered hydraulic fracturing services which are currently utilizing approximately 140 megawatts of mobile power generation capacity and growing. Our focus is initially on oilfield power applications, but we fully intend to build a platform that will be highly competitive in serving non-oil and gas applications such as general industrial projects and data centers that we believe are likely to gravitate towards the Permian Basin. The combination of these mobile power generation assets along with ProPetro’s established reputation as a leading service provider positions ProPWRSM to capitalize on growing market demand in the basin. With this initial order of over 110 megawatts of mobile power generation assets, we are poised to execute on our strategy of becoming the premier mobile power services provider in the Permian Basin.”
This growth capital investment of approximately
About ProPetro
ProPetro Holding Corp. is a
Forward-Looking Statements
Except for historical information contained herein, the statements and information in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “may,” “could,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “should,” "designed" and other expressions that are predictions of, or indicate, future events and trends or that do not relate to historical matters generally identify forward‑looking statements. Our forward‑looking statements include, among other matters, statements about the anticipated commercial success of ProPWRSM, including our ability to successfully commence operations, the demand for its services and anticipated benefits of the new business line, our business strategy, projected financial results and future financial performance. A forward‑looking statement may include a statement of the assumptions or bases underlying the forward‑looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable.
Although forward‑looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of oil prices, changes in the supply of and demand for mobile power generation, the risks associated with the establishment of a new service line, including delays, lack of customer acceptance and cost overruns, the global macroeconomic uncertainty related to the conflict in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241210076880/en/
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.
FAQ
What is ProPetro's new power generation subsidiary called?
How much power generation capacity did ProPetro (PUMP) order initially?
When will ProPetro's (PUMP) new power generation equipment be delivered?
How much is ProPetro (PUMP) investing in the new power generation business?
