A Midland, Texas-based oilfield services company, ProPetro helps oil and gas producers complete wells in the Permian Basin using hydraulic fracturing, wireline, and cementing equipment—including its FORCE® electric fracking fleet and PROPWR natural-gas power units. Founded in 2005 by Dale Redman and Jeffrey David Smith, it grew alongside the region's shale boom. Its name combines "Pro" for professional with "Petro," from the Greek word for rock.
ProPetro issues $750M in convertible notes and raises $163M in equity, transforming the balance sheet to fund a power-generation pivot as fracturing revenue falls 16%.
ProPetro's fracturing business continued to shrink, but the company now has the cash to bet on power. fell 6% to $306 million as hydraulic fracturing dropped 16%, while the new Power Generation contributed its first material revenue of $9 million and the company raised over $830 million in combined equity and convertible debt. The balance sheet has been reshaped for a pivot — now the power segment must scale.
Key takeaways
Hydraulic fracturing fell 15.7% to $207.2 million, driven by reduced customer activity, lower pricing, and fleet idling, as the Permian Basin market remained under pressure.
The Power Generation , PROPWR, generated $9.3 million in in its second quarter of operations, up from $2.2 million in Q1 2026, though it continued to operate at a loss as it scales.
Cash and equivalents rose to $784.0 million, up from $74.8 million a year ago, after a $163.1 million common stock offering and $668.5 million in net proceeds from a 0% issuance closed during the quarter.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue fell 6% to $306M on lower frac activity; Power Generation segment launched with $9M revenue.
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Total decreased 6.2% to $305.8M, driven by a 15.7% drop in Hydraulic Fracturing revenue to $207.2M due to reduced customer activity, pricing, and fleet idling.
rose to $764.9 million from $57.6 million a year ago, reflecting the new , while total assets nearly doubled to $2.06 billion.
fell 9.8% to $44.8 million as the decline in fracturing profitability was partially offset by the addition of the power , with G&A rising 16.3% on headcount for power services.
Full-year 2026 capital expenditure was narrowed to $525–$595 million, with $400–$450 million still earmarked for PROPWR.
What changed
The XTO contract flagged in FY 2025 as not expected to be renewed past late 2026 was not addressed in this filing; its status remains an open question for fracturing .
The effectively utilized fleet count and cost-of-services ratio in Hydraulic Fracturing continued to deteriorate, with down 15.7% , confirming the trend flagged in prior quarters has not yet stabilized.
PROPWR scaled from $2.2 million in Q1 2026 to $9.3 million in Q2 2026, a step toward covering its cost of services, though the still operated at a loss as startup costs ran ahead of revenue.
The material weakness in internal controls was resolved in FY 2025 and did not reappear; the auditor confirmed effective controls.
The $163.3 million equity offering completed in January 2026 and the new $750 million issuance have transformed the balance sheet, with cash rising to $784 million and to $764.9 million, funding the power venture at a scale not previously anticipated.
What to watch
Whether PROPWR's continues to scale beyond $9.3 million in Q3 2026 and begins to approach breakeven, given $400–$450 million in 2026 is still allocated to the .
The effectively utilized fleet count and cost-of-services ratio in Hydraulic Fracturing in Q3, to see if the 15.7% decline represents a trough or if further fleet idlings are required.
Whether the XTO contract, previously disclosed as unlikely to be renewed past late 2026, is replaced or if its loss further reduces fracturing and fleet utilization.
The pace of against the $525–$595 million full-year , and whether can return to positive territory as the power scales.
Wireline grew 19.9% to $57.5M on higher utilization, while Cementing dipped 1.3% to $32.0M on lower activity.
The new Power Generation contributed $9.3M in after beginning operations in Q3 FY2025.
fell 9.8% to $44.8M, with margin compressing to 14.6% from 15.2%, as G&A rose 16.3% on headcount for power services.
stood at $904.7M, bolstered by a $163.1M common stock offering and $668.5M in net proceeds from a 0% issuance.
Full-year 2026 is projected at $525M-$595M, with $400M-$450M earmarked for the PROPWR power generation business.
Quantitative and Qualitative Disclosures About Market Risk
As of June 30, 2026, there have been no material changes in market risk from the information provided in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" or "Quantitative and Qualitative Disclosures of Market Risk" in our Form 10-K.
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As of June 30, 2026, there have been no material changes in market risk from the information provided in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" or "Quantitative and Qualitative Disclosures of Market Risk" in our Form 10-K.
New convertible notes create accounting, dilution, and takeover risks that could pressure reported earnings, working capital, and liquidity.
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of the convertible notes' will increase non-cash , lowering reported income relative to cash interest paid.
The for assumes full conversion into common stock, which may reduce reported diluted .
If conversion conditions are met, the notes' carrying value may be reclassified as a current liability, materially reducing reported even without actual conversions.
A takeover triggering a Fundamental Change or Make-Whole Fundamental Change could force cash repurchases or temporarily increase the conversion rate, raising acquisition costs and deterring buyers.
Triggering the conditional conversion feature could force cash settlement of conversions, adversely affecting liquidity, or cause a working-capital-reducing liability reclassification.