DealsApr 30, 2026, 04:20 PM
PUMP Secures 2.1 GW Power Capacity with Caterpillar; Q1 Net Loss $4M
AI Summary
ProPetro's subsidiary, PROPWR, entered a Global Framework Agreement with Caterpillar Inc. to secure up to 2.1 gigawatts of power generation equipment, with a minimum purchase obligation of $1.1 billion through 2031, significantly expanding its PROPWR business. Concurrently, the company reported Q1 2026 financial results, with total revenue of $271 million and a net loss of $4 million, impacted by weather disruptions. The company anticipates full-year 2026 capital expenditures to increase to $540-$610 million, largely driven by the PROPWR expansion.
Key Highlights
- PROPWR secured a Global Framework Agreement with Caterpillar for up to 2.1 GW power generation capacity.
- Minimum purchase obligation under the GFA is approximately $1.1 billion through 2031.
- Q1 2026 total revenue was $271 million, a 7% decrease from the prior quarter.
- Q1 2026 net loss was $4 million ($0.03 loss per diluted share).
- Q1 2026 Adjusted EBITDA was $36 million, a 29% decrease from the prior quarter.
- Full-year 2026 capital expenditures guidance increased to $540-$610 million.
- PROPWR business capex for 2026 is projected at $400-$450 million.
- Company expects to operate approximately 12 active frac fleets in Q2 2026.