ProPetro Q4 Earnings Match Estimates, Revenues Beat, Expenses Down

ProPetro Holding Corp. PUMP reported a fourth-quarter 2024 adjusted loss per share of 1 cent, which was in line with the Zacks Consensus Estimate. However, the bottom line improved compared with the year-ago loss of 16 cents, due to a 4.8% year-over-year decline in costs and expenses.Revenues of $320.6 million beat the consensus mark of $314 million. This improvement can be attributed to better-than-expected service revenues in the Wireline segment, which reached $45.2 million, surpassing the consensus estimate by 3.2%. However, the top line decreased 9.7% from the year-ago quarter’s level of $347.8 million. This was due to a year-over-year decline in service revenues from Hydraulic Fracturing, Wireline and Cementing operations.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Adjusted EBITDA amounted to $52.7 million, down 25.9% from $71.1 million reported in the previous quarter.  The figure was also down from our model estimate of $61.8 million.Throughout 2024, the company bought back and retired 7.2 million shares. In the fourth quarter, an additional 0.4 million shares were repurchased and retired, bringing the total to 13 million shares, which accounts for around 11% of outstanding common stock since the plan began in May 2023.In the reported quarter, Midland, TX-based oil and gas equipment and services posted a net loss of $17 million compared with a net loss of $137 million in the year-ago quarter’s level.In the fourth quarter, PUMP announced the placement of orders for 140 megawatts of power generation equipment for its PROPWR business and the divestiture of Vernal, Utah, cementing operations on Nov. 1, 2024.ProPetro Holding Corp. Price, Consensus and EPS Surprise ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. QuotePUMP’s Pressure Pumping SegmentProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review.Service revenues from this unit decreased 7.8% to $320.6 million from the prior-year quarter’s level. However, the figure was higher than our estimate of $311.2 million.Costs & Financial Position of PUMPTotal costs and expenses were $339 million for the fourth quarter, which was down 4.8% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $243.5 million compared with $261 million in the prior-year quarter.On the other hand, general and administrative expenses (inclusive of stock-based compensation) were $28.6 million compared with $28 million in the prior-year quarter. Depreciation and amortization were reduced 23.9% to $47.7 million from the prior-year quarter's level.The company recorded capital expenditures (CapEx) of $25 million in the fourth quarter of 2024, primarily for maintenance and support equipment related to FORCE electric frac fleet. Net cash used in investing activities, as reported on the statement of cash flows for the quarter, totaled $24 million.As of Dec. 31, PUMP had $50.4 million in cash and cash equivalents and $45 million in borrowings under its ABL Credit Facility.Total liquidity was $161 million, including $111 million in available credit in December-end.  Long-term debt amounted to $45 million. The total debt-to-total capital was 5.2%.Net cash provided by operating activities increased to $37.9 million in this quarter, which was up from $34.7 million in the last quarter.  Free cash flow improved to approximately $13.45 million compared with a loss of $5 million in the previous quarter.PUMP’s GuidanceThe company expects its total capital spending for 2025 to be between $300 million and $400 million. Of this amount, $150 million to $200 million will go to the completions business, while another $150 million to $200 million will be used for growth investments in the PROPWR business.The company plans to finance a large portion of the PROPWR CapEx. PUMP expects to operate between 14 and 15 frac fleets in the first quarter of 2025.PUMP currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Important Earnings at a GlanceWhile we have discussed PUMP’s fourth-quarter results in detail, let us take a look at three other key reports of this space.Oil and gas equipment and services provider Liberty Energy LBRT reported a fourth-quarter 2024 adjusted net income of 10 cents per share, which marginally beat the Zacks Consensus Estimate of 9 cents, due to a year-over-year decrease in costs and expenses.  However, the bottom line underperformed the year-ago quarter’s reported figure of 54 cents, due to poor equipment and service execution, along with lower activity.As of Dec. 31, Liberty had approximately $20 million in cash and cash equivalents. The pressure pumper’s long-term debt of $190.5 million represented a debt-to-capitalization of 8.8%.Another oil and gas equipment and services provider Halliburton Company HAL posted a fourth-quarter 2024 adjusted net income per share of 70 cents, same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 86 cents (adjusted). The numbers indicated softer activity in the region of North America, partly offset by improved fluid work in the Gulf of Mexico.As of Dec. 31, 2024, the company had approximately $2.6 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. The company generated $1.5 billion of cash flow from operations in the fourth quarter, leading to a free cash flow of $1.1 billion. Energy infrastructure provider Kinder Morgan KMI reported fourth-quarter adjusted earnings per share of 32 cents, shy of the Zacks Consensus Estimate of 33 cents. The lower-than-expected quarterly earnings were primarily due to decreased volumes on certain systems, asset divestitures and lower crude, CO2 and NGL volumes. KMI’s fourth-quarter DCF was $1.3 billion, up from $1.2 billion a year ago.As of Dec. 31, 2024, Kinder Morgan reported $88 million in cash and cash equivalents. Its long-term debt amounted to $29.8 billion at the quarter-end. For 2025, Kinder Morgan anticipates a net income of $2.8 billion, up 8% from the prior-year level, and an adjusted EPS of $1.27, up 10%. The company expects to declare dividends of $1.17 per share, up 2% from the prior-year figure. It also anticipates budgeted adjusted EBITDA of $8.3 billion, up 4% from the previous-year level.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report ProPetro Holding Corp. (PUMP): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks