ProPetro Holding: 2Q26 Post Mortem & Model Update: PROPWR-ing Forward on Steady Execution and New 110 MW of Contracts Despite Wider BTM Sell-off

研报英文原文证据摘录

ProPetro Holding: 2Q26 Post Mortem & Model Update: PROPWR-ing Forward on Steady Execution and New 110 MW of Contracts Despite Wider BTM Sell-off

Arun Jayaram AC North America Equity Research

(1-212) 622-8541 30 July 2026 J P M O R G A N

arun.jayaram@jpmchase.com

• Completions market update: The 2Q26 commentary reconfirmed the attrition thesis

laid out in 1Q26, with management holding the Permian at a mid-70s working fleet count

(consistent with the ~70-75 previously cited) but hardening the ceiling by arguing it

would be challenging to push above the mid-80s without growth capital it does not expect

to materialize. Pricing conviction firmed from "green shoots" in 1Q26 to observable

momentum, anchored by next-gen gas-burning fleets being "effectively sold out,"

increasingly limited Tier II diesel equipment, and a Permian rig count up ~10% off 1Q26

lows driving pricing momentum.

• Fleet update: PUMP increased its active fleet count from 12 to 13, marking the first

sequential fleet count increase since the downturn in Permian completions began in 2025

(up from ~11 to 12 the previous quarter). The 13th fleet will service a blue-chip E&P

customer at attractive pricing, reflecting not necessarily market growth tied to a private

operator ramping up rigs, but rather PUMP’s core completions capabilities. The majority

of the active frac horsepower is contracted and most of those contracts are scheduled to

renew over the next 6-9 months. As most of the contracted horsepower is natural gas

burning equipment, we are optimistic on pricing and re-contracting opportunities. The

13th fleet will contribute limited revenue in 3Q26 given the late-quarter activation and

fleet stand-up/maintenance costs will create a near-term drag.