Q4 2025 ProPetro Holding Corp Earnings Call

February 18, 2026

Speaker #1: Good day and welcome to the Propetro Holdings Corp fourth quarter and full year 2025 conference call. Please note that this event is being recorded.

Matt Augustine: Good day, and welcome to the ProPetro Holding Corp Q4 and full year 2025 conference call. Please note that this event is being recorded. I would now like to turn the call over to Matt Augustine, ProPetro's Vice President of Finance and Investor Relations. Please go ahead.

Operator: Good day, and welcome to the ProPetro Holding Corp Q4 and Full Year 2025 Conference Call. Please note that this event is being recorded. I would now like to turn the call over to Matt Augustine, ProPetro's Vice President of Finance and Investor Relations. Please go ahead.

Speaker #1: I would now like to turn the call over to Matt Augustine, Propetro's Vice President of Finance and Investor Relations. Please go ahead.

Speaker #2: Thank you. And good morning. We appreciate your participation in today's call. With me are Chief Executive Officer Sam Sledge, Chief Financial Officer Caleb Weatherl, President and Chief Operating Officer Adam Muñoz, and President of ProPower, Travis Simery.

Matt Augustine: Thank you, and good morning. We appreciate your participation in today's call. With me, our Chief Executive Officer, Sam Sledge, Chief Financial Officer, Caleb Weatherl, President and Chief Operating Officer, Adam Muñoz, and President of PROPWR, Travis Simory. This morning, we released our earnings results for the fourth quarter of 2025. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also, during today's call, we will reference certain non-GAAP financial measures.

Speaker #2: This morning, we release our earnings results for the fourth quarter of 2025. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Format.

Speaker #2: Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations.

Speaker #2: We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also, during today's call, we will reference certain non-GAAP financial measures.

Speaker #2: Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we will hold a question-and-answer session.

Matt Augustine: Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we will hold a question-and-answer session. With that, I would like to turn the call over to Sam.

Speaker #2: With that, I would like to turn the call over to Sam.

Speaker #3: Thanks, Matt. Good morning, everyone, and thanks for joining us today. 2025 was a year that was defined by uncertainty across the broader energy markets.

Sam Sledge: Thanks, Matt. Good morning, everyone, and thanks for joining us today. 2025 was a year that was defined by uncertainty across the broader energy markets. There was a significant slowdown in completions activity, as illustrated by our estimates that the Permian is operating with approximately 70 full-time frac fleets, down meaningfully from 90 to 100 fleets just a year ago. This headwind was compounded by tariff impacts and OPEC+ production increases that added pressure to commodity prices throughout the year, affecting budgets and creating a more cautious operator mindset. Despite these dynamics, ProPetro continued to deliver both operationally and financially and generated strong free cash flow, particularly in Q4.

Speaker #3: There was a significant slowdown in completions activity, as illustrated by our estimates that the Permian is operating with approximately 70 full-time frac fleets, down meaningfully from 90 to 100 fleets just a year ago.

Speaker #3: This headwind was compounded by tariff impacts, and OPEC+ production increases that added pressure to commodity prices throughout the year, affecting budgets and creating a more cautious operator mindset.

Speaker #3: Despite these dynamics, Propetro continued to deliver both operationally and financially and generated strong free cash flow, particularly in the fourth quarter. Our legacy completions business continues to generate sustainable free cash flow, even in this tough market environment, which gives us confidence as this business helps fuel investments we are making in ProPower, our future growth engine.

Sam Sledge: Our legacy completions business continues to generate sustainable free cash flow, even in this tough market environment, which gives us confidence as this business helps fuel investments we are making in PROPWR, our future growth engine. Our solid Q4 performance underscores the industrialized nature of our completions business and the benefits of the technology and next-generation equipment investments we have made over the last several years. While we expect market challenges to persist into 2026, we continue to control what we can and move quickly by streamlining costs across the business, performing a granular analysis, and taking decisive action. I'm proud of our team's ability to adapt quickly, rationalize costs, and protect our asset base, thereby supporting our margins and competitiveness in the market. This will remain a key focus in 2026. ProPetro is a fundamentally strong company.

Speaker #3: Our solid fourth-quarter performance underscores the industrialized nature of our completions business and the benefits of the technology and next-generation equipment investments we have made over the last several years.

Speaker #3: While we expect market challenges to persist in the 2026, we continue to control what we can and move quickly by streamlining costs across the business, performing a granular analysis, and taking decisive action.

Speaker #3: I'm proud of our team's ability to adapt quickly and rationalize costs and protect our asset base, thereby supporting our margins and competitiveness in the market.

Speaker #3: This will remain a key focus in 2026. Propetro is a fundamentally strong company. We have low debt, first-class customers operating in the Permian Basin, a refreshed next-generation fleet, and a team that continues to execute at a very high level.

Sam Sledge: We have low debt, first-class customers operating in the Permian Basin, a refreshed next-generation fleet, and a team that continues to execute at a very high level. Even as challenging market conditions persist, our company's unique attributes position us to continue performing. As we've said before, market cycles create opportunities, and with that, we expect attrition among smaller and less disciplined competitors that cannot sustain prolonged market weakness. We believe this dynamic will provide structural benefits for well-capitalized next-generation operators like ProPetro. I also want to discuss the strategic actions we're taking to support resilient financials. As a reminder, we currently have the majority of our active frac fleet under contract, providing us with ongoing stability in our operations. Over time, we plan to continue to allocate capital to our FORCE electric equipment, given its strong demand and commercial leverage.

Speaker #3: Even if challenging market conditions persist, our company's unique attributes position us to continue performing. As we've said before, market cycles create opportunities. And with that, we expect attrition among smaller and less disciplined competitors that cannot sustain prolonged market weakness.

Speaker #3: We believe this dynamic will provide structural benefits for well-capitalized next-generation operators like Propetro. I also want to discuss the strategic actions we're taking to support resilient financials.

Speaker #3: As a reminder, we currently have the majority of our active frac fleet under contract, providing us with ongoing stability in our operation. Over time, we plan to continue to allocate capital to our force electric equipment, given its strong demand and commercial leverage.

Speaker #3: However, prior to committing to additional force equipment orders, we require greater visibility into customer demand and growth, especially in the challenging market environment. To ensure these investments are both strategically justified and aligned with expected return.

Sam Sledge: However, prior to committing to additional FORCE equipment orders, we require greater visibility into customer demand and growth, especially in the challenging market environment, to ensure these investments are both strategically justified and aligned with expected return. Additionally, in 2026, as a part of our completions CapEx program, which Caleb will discuss in greater detail, we plan to allocate targeted capital to refurbish a portion of our existing Tier IV DGB fleet, make investments in fleet automation technology, as well as measured investments in direct drive gas frac units. These direct drive gas units are highly complementary to our current frac asset base, and their integration is anticipated to partially offset future capital requirements for investment and refurbishment in our conventional frac.

Speaker #3: Additionally, in 2026, as a part of our completions CAPEX program, which Caleb will discuss in greater detail, we plan to allocate targeted capital to refurbish a portion of our existing Tier 4 DGB fleet, make investments in fleet automation technology, as well as measured investments in direct drive gas frac meter.

Speaker #3: These direct drive gas units are highly complementary to our current frac asset base and their integration is anticipated to partially offset future capital requirements for investment and refurbishment in our conventional frac fleet.

Speaker #3: These new investments specifically in fleet automation technology and direct drive will reinforce our position as a premier completions provider in the Permian Basin, and support our broader goal of further industrializing our business.

Sam Sledge: These new investments, specifically in fleet automation technology and direct drive, will reinforce our position as a premier completions provider in the Permian Basin and support our broader goal of further industrializing our business. Importantly, given the current challenging market dynamics, we remain disciplined in our capital deployment, investing only when there is clear visibility to high returns and strong customer endorsement, principles that are embedded in our way of doing business... Additionally, 2025 was an exciting year for ProPower, where we made significant progress as we capitalized on robust customer demand to not only launch the business, but to bring our total committed capacity to now approximately 240MW and to also deploy our first assets into the field. This total includes recent contract wins, supporting production operations for Permian E&P customer, secured since our last update in December.

Speaker #3: Importantly, given the current challenging market dynamics, we remain disciplined in our capital deployment. Investing only when there's clear visibility to high returns and strong customer endorsement.

Speaker #3: Principles that are embedded in our way of doing business. Additionally, 2025 was an exciting year for ProPower, where we've made significant progress as we capitalize on robust customer demand to not only launch the business, but to bring our total committed capacity to now approximately 240 megawatt and to also deploy our first assets into the field.

Speaker #3: This total includes recent contract wins supporting production operations for Permian EMP customers. Secured since our last update in December. Additionally, as announced in December, we placed orders for an additional 190 megawatts of equipment, increasing total delivered or on-order capacity to approximately 550 megawatts.

Sam Sledge: Additionally, as announced in December, we placed orders for an additional 190MW of equipment, increasing total delivered or on order capacity to approximately 550MW. With this order, ProPWR's equipment portfolio is split approximately 70% and 30% between high efficiency natural gas reciprocating engine generators and low emission modular turbine, respectively. ProPWR anticipates all units will be delivered by year-end 2027, with contracts expected to be secured ahead of delivery. ProPWR's expected total cost per megawatt for the 550MW ordered today averages approximately $1.1 million, including development plan. We're confident in the business's future growth capabilities and expect to secure additional contracts throughout 2026 due to our flexible asset base, ability to rapidly respond to evolving customer demand, and quality execution.

Speaker #3: With this order, ProPower's equipment portfolio is split approximately 70% and 30% between high-efficiency natural gas reciprocating engine generators and low-emission modular turbine, respectively. ProPower anticipates all units will be delivered by year-end 2027, with contracts expected to be secured ahead of delivery.

Speaker #3: ProPower's expected total cost per megawatt for the 550 megawatts ordered today averages approximately $1.1 million, including the development plan. We're confident in the business's future growth capabilities and expect to secure additional contracts throughout 2026 due to our ability to rapidly respond to evolving customer demand and quality execution.

Sam Sledge: Furthermore, we would like to reaffirm our five-year growth outlook for PROPWR as communicated last quarter. We are positioned to deliver at least 750MW by year-end 2028 and 1GW or more by year-end 2030. Our standing in the supply chain not only enables us to meet these milestones, but also provides us the ability to scale beyond these targets if the right opportunities present themselves. Moreover, we are seeing a growing number of inquiries from potential data center and industrial clients. Over time, we anticipate these opportunities occupy a higher share of our overall capacity, driven by both their larger load needs and longer term strategic commitments. These evolving market dynamics, coupled with our strategic partnerships and operational excellence, uniquely position us to capitalize on large scale, long-term demand and drive sustained value for our clients and stakeholders.

Speaker #3: Furthermore, we would like to reaffirm our five-year growth outlook for ProPower as communicated last quarter. We're positioned to deliver at least 750 megawatts by year-end 2028 and 1 gigawatt or more by year-end 2030.

Speaker #3: Our standing in the supply chain not only enables us to meet these milestones, but also provides us the ability to scale beyond these targets if right opportunities present themselves.

Speaker #3: Moreover, we are seeing a growing number of inquiries from potential data center and industrial clients. Over time, we anticipate these opportunities to occupy a higher share of our overall capacity.

Speaker #3: Driven by both their larger load needs and longer-term strategic commitment. These evolving market dynamics, coupled with our strategic partnerships and operational excellence, uniquely position us to capitalize on large-scale, long-term demand and drive sustained value for our clients and stakeholders.

Speaker #3: These growth targets reflect the significant opportunity we see in the market for reliable, low-emission power generation solutions. ProPower's momentum is tangible and we're excited to continue our effort to expand our reach and drive long-term growth.

Sam Sledge: These growth targets reflect the significant opportunity we see in the market for reliable, low emission power generation solutions. PROPWR's momentum is tangible, and we're excited to continue our effort to expand our reach and drive long-term growth. In terms of capital to fund our PROPWR strategy, our approach remains deliberate and balanced. Resilient free cash flow generated from our completions business continues to serve as the company's preferred capital source. This strong foundation will be further enhanced by contributions from our power business, especially as we exit 2026 and have deployed on multiple projects. Moreover, our recent equity offering provided approximately $163 million in cash, net of fees, strengthening the company's balance sheet and reducing ProPetro's near-term reliance on debt.

Speaker #3: In terms of capital to fund our ProPower strategy, our approach remains deliberate and balanced. Resilient free cash flow generated from our completions business continues to serve as the company's preferred capital source.

Speaker #3: This strong foundation will be further enhanced by contributions from our power business, especially as we exit 2026 and have deployed on multiple projects. Moreover, our recent equity offering provided approximately $163 million in cash net of fees, strengthening the company's balance sheet and reducing Propetro's near-term reliance on debt.

Speaker #3: In addition to the equity offering, our strong balance sheet is bolstered by our refreshed capital structure. Which includes our recently expanded $157 million financing facility at Favorable Cost of Capital and on flexible terms with Caterpillar Financial Services Corporation.

Sam Sledge: In addition to the equity offering, our strong balance sheet is bolstered by our refreshed capital structure, which includes our recently expanded $157 million financing facility at favorable cost of capital and on flexible terms with Caterpillar Financial Services Corporation. Along with a $350 million leasing financing facility secured in December with Stonebriar Commercial Finance that we will utilize on an as-needed basis. These sources of capital are key to ensuring we have the financial flexibility to take advantage of the exciting opportunities ahead of PROPWR and across our entire business. Caleb will discuss our financial results in more detail, but as we previewed in our December update, we expected a very strong finish to 2025, and that is exactly what we delivered in Q4.

Speaker #3: Along with a $350 million leasing financing facility secured in December with Stonebriar Commercial Finance. That we will utilize on an as-needed basis. These sources of capital are key to ensuring we have the financial flexibility to take advantage of the exciting opportunities ahead of ProPower.

Speaker #3: And across our entire business. Caleb will discuss our financial results in more detail. But as we previewed in our December update, we expected a very strong finish to 2025, and that is exactly what we deliver to the forefront.

Speaker #3: Revenue remained resilient, holiday impacts were less pronounced, and in prior years, and the decisive cost structure actions we took during the third and fourth quarter helped support margin performance.

Sam Sledge: Revenue remained resilient, holiday impacts were less pronounced than in prior years, and the decisive cost structure actions we took during Q3 and Q4 helped support margin performance. Pricing remained stable through the quarter, and we continue to stay disciplined on that front. As we've said before, we will not run fleets at sub-economic levels, as preserving fleet quality remains essential to ensuring readiness for rapid deployment when market conditions do in fact improve. Importantly, ProPetro's hallmarks, operational excellence and efficiency continue to prevail, as evidenced by our ongoing cost control actions. As we look ahead, the near-term outlook remains uncertain and headwinds appear likely to persist into 2026. That said, we like what we are seeing currently in our active fleets, and we expect approximately 11 active frac fleets in Q1.

Speaker #3: Pricing remained stable through the quarter, and we continue to stay disciplined on that front. As we've said before, we will not run fleets at sub-economic level, as preserving fleet quality remains essential to ensuring readiness for rapid deployment when market conditions do in fact improve.

Speaker #3: Importantly, Propetro's hallmarks of operational excellence and efficiency continue to prevail as evidenced by our ongoing cost control action. As we look ahead, the near-term outlook remains uncertain and headwinds appear likely to persist into 2026.

Speaker #3: That said, we like what we are seeing currently in our active fleets, and we expect approximately 11 active fract fleets in the first quarter.

Speaker #3: Although winter weather in late January did have a significant impact on our activity, which we expect will meaningfully affect first-quarter profitability. Furthermore, as I mentioned, we are reaffirming our five-year growth outlook for ProPower and we expect the first half of 2026 to focus on de-risking deployments and establishing a strong operational foundation.

Sam Sledge: Although winter weather in late January did have a significant impact on our activity, which we expect will meaningfully affect Q1 profitability. Furthermore, as I mentioned, we are reaffirming our 5-year growth outlook for ProPWR, and we expect the first half of 2026 to focus on de-risking deployments and establishing a strong operational foundation, positioning our company for sustainable long-term growth. By the second half of 2026, we expect ProPWR to begin contributing meaningful earnings. Before I turn the call over to Caleb, I want to reiterate the fundamental strength of ProPetro. Our differentiators are clear. We have a strong balance sheet, first-class customers, a refreshed next generation asset base, strong free cash flow generation in our completions business, and ProPWR as a key growth engine that will drive our earnings profile.

Speaker #3: Positioning our company for sustainable long-term growth. By the second half of 2026, we expect ProPower to begin contributing meaningful earnings. Before I turn the call over to Caleb, I want to reiterate the fundamental strength of Propetro.

Speaker #3: Our differentiators are clear. We have a strong balance sheet, first-class customers, a refreshed next-generation asset base, strong free cash flow generation in our completions business, and ProPower as a key growth engine that will drive our earnings profile.

Sam Sledge: Most importantly, we have a first-class team that continues to execute at a very high level, ensuring that we continue operating safely, efficiently, and productively while enhancing our ability to capitalize on the opportunities ahead. With that, I'll turn it over to Caleb.

Speaker #3: Most importantly, we have a first-class team that continues to execute at a very high level. Ensuring that we continue operating safely and efficiently and productively while enhancing our ability to capitalize on the opportunities ahead.

Speaker #3: With that, I'll turn it over to Caleb.

Speaker #2: Thanks, Sam. And good morning, everyone. As Sam mentioned, Propetro's performance in the fourth quarter and throughout 2025 showcased the results of our strategy at work.

Caleb Weatherl: Thanks, Sam, and good morning, everyone. As Sam mentioned, ProPetro's performance in the fourth quarter and throughout 2025 showcased the results of our strategy at work. Through disciplined cost control efforts and continued industrialization of our operations, we delivered resilient margins and strong free cash flow from our completion business despite a challenging market environment. We also advanced ProPWR meaningfully through new contracts, strategic equipment orders, and flexible financing arrangements, positioning it as a growing contributor to future earnings. During the fourth quarter, ProPetro generated total revenue of $290 million, a decrease of 1% as compared to the third quarter. Net income totaled $1 million, or $0.01 income per diluted share, compared to net loss of $2 million, or $0.02 loss per diluted share for the third quarter of 2025.

Speaker #2: Through disciplined cost control efforts and continued industrialization of our operations, we delivered resilient margins and strong free cash flow from our completions business despite a challenging market environment.

Speaker #2: We also advanced ProPower meaningfully through new contracts, strategic equipment orders, and flexible financing arrangements. Positioning it as a growing contributor to future earnings. During the fourth quarter, Propetro generated total revenue of $290 million, a decrease of 1% as compared to the third quarter.

Speaker #2: That income totaled $1 million or 1 cent income per diluted share compared to net loss of $2 million or 2 cent loss per diluted share for the third quarter of 2025.

Caleb Weatherl: Adjusted EBITDA totaled $51 million, was 18% of revenue, and increased 45% compared with Q3. This includes the lease expense related to our electric fleet of $17 million. Net cash provided by operating activities and net cash used in investing activities, as shown on the statement of cash flow, were $81 million and $39 million, respectively. Free cash flow for our completions business was $98 million, supported by strong EBITDA performance and reduced completions CapEx. Additionally, free cash flow was further bolstered by working capital tailwinds, which contributed an additional $28 million in cash. Moreover, we also generated $14 million from select asset sales and received $11 million from the note receivable related to the sale of our Vernal, Utah, cementing operation, completed in Q4 of 2024.

Speaker #2: Adjusted EBITDA totaled $51 million, was 18% of revenue, and increased 45% compared with the third quarter. This includes the lease expense related to our electric fleets of $17 million.

Speaker #2: Net cash provided by operating activities and net cash used in investing activities is shown on the statement of cash flow, where $81 million and $39 million respectively.

Speaker #2: Free cash flow for a completions business was $98 million, supported by strong EBITDA performance and reduced completions capex. Additionally, free cash flow was further bolstered by working capital tailwinds, which contributed an additional $28 million in cash.

Speaker #2: Moreover, we also generated $14 million from select asset sales and received $11 million from the note receivable related to the sale of our vernal Utah cementing operation, completed in the fourth quarter of 2024.

Caleb Weatherl: As Sam mentioned, our legacy completions business continues to generate sustainable free cash flow, demonstrating what we have consistently communicated over the past several years. Even in today's challenging market environment, our performance has remained steady and reliable. During Q4, capital expenditures paid were $64 million, and capital expenditures incurred were $71 million, including approximately $12 million, primarily supporting maintenance in the company's completion business, and approximately $59 million supporting its ProPower orders. During the quarter, some of the ProPower spending was accelerated as our supply chain partners have consistently delivered equipment efficiently and on time or ahead of schedule. Notably, the difference between incurred and paid capital expenditure is primarily comprised of ProPower-related capital expenditures that have been financed and paid directly by the financing partner and unpaid capital expenditures included in accounts payable and accrued liability.

Speaker #2: As Sam mentioned, our legacy completions business continues to generate sustainable free cash flow demonstrating what we have consistently communicated over the past several years.

Speaker #2: Even in today's challenging market environment, our performance has remained steady and reliable. During the fourth quarter, capital expenditures paid were $64 million and capital expenditures incurred were $71 million.

Speaker #2: Including approximately $12 million primarily supporting maintenance in the company's completion business and approximately $59 million supporting the ProPower orders. During the quarter, some of the ProPower's spending was accelerated.

Speaker #2: As our supply chain partners have consistently delivered equipment efficiently and on time, or ahead of schedule. Notably, the difference between incurred and paid capital expenditure is primarily comprised of ProPower-related capital expenditures that have been financed and paid directly by the financing partner and unpaid capital expenditures included in accounts payable and accrued liability.

Speaker #2: We will continue to evaluate the market and scale capex as activity demands. We currently anticipate full-year 2026 capital expenditures to be between $390 million and $435 million.

Caleb Weatherl: We will continue to evaluate the market and scale CapEx as activity demands. We currently anticipate full year 2026 capital expenditures to be between $390 million and $435 million. Of this amount, the completions business is expected to account for $140 million to $160 million, including $40 million to $50 million related to lease buyouts for a portion of the company's FORCE electric fleet portfolio. As a reminder, our 5 FORCE electric fleet leases were secured with an initial 3-year term and include options to either buy out or extend the leases at the end of that period. The intent behind these leases was to defer upfront capital expenditures while securing the equipment at an attractive cost of capital, supported by the contracted earnings from the FORCE electric fleet.

Caleb Weatherl: We will continue to evaluate the market and scale CapEx as activity demands. We currently anticipate full year 2026 capital expenditures to be between $390 million and $435 million. Of this amount, the completions business is expected to account for $140 million - $160 million, including $40 million to $50 million related to lease buyouts for a portion of the company's FORCE electric fleet portfolio. As a reminder, our 5 FORCE electric fleet leases were secured with an initial 3-year term and include options to either buy out or extend the leases at the end of that period. The intent behind these leases was to defer upfront capital expenditures while securing the equipment at an attractive cost of capital, supported by the contracted earnings from the FORCE electric fleet.

Speaker #2: Of this amount, the completions business is expected to account for $140 million to $160 million, including $40 million to $50 million related to lease buyouts for a portion of the company's FORCESM electric fleet portfolio.

Speaker #2: As a reminder, our five Force electric fleet leases were secured with an initial three-year term and include options to either buy out or extend the leases at the end of that period.

Speaker #2: The intent behind these leases was to defer upfront capital expenditures while securing the equipment at an attractive cost of capital, supported by the contracted earnings from the FORCE electric fleet.

Speaker #2: This strategy proved successful, enabling us to rapidly transform our fleet and still generate accretive cash flow. The upcoming lease buyouts reflect the completion of a deliberate and strategic capital allocation decision.

Caleb Weatherl: This strategy proved successful, enabling us to rapidly transform our fleet and still generate accretive cash flow. The upcoming lease buyouts reflect the completion of a deliberate and strategic capital allocation decision. By exercising these options, we will take full ownership of the FORCE fleets. Each buyout will immediately reduce our lease expense, currently reflected in operating expenses, and strengthen our commercial flexibility. We expect to buy out all five fleets, with buyouts anticipated to begin in late 2026 and through 2028. As Sam mentioned, the completions business guidance range also includes capital reserve for refurbishing a portion of the existing Tier IV DGB fleet, investment in fleet automation technology, as well as measured investment in direct drive gas frac units. Additionally, the company expects to incur approximately $250 million to $275 million in 2026 for its PROPWR business.

Speaker #2: By exercising these options, we will take full ownership of the force fleets, each buyout will immediately reduce our lease expense, currently reflected in operating expenses, and strengthen our commercial flexibility.

Speaker #2: We expect to buy out all five fleets. With buyouts anticipated to begin in late 2026 and through 2028, as Sam mentioned, the completions business guidance range also includes capital reserve for refurbishing a portion of the existing Tier 4 BGP fleet, investment in fleet automation technology, as well as measured investment in direct drive gas frac units.

Speaker #2: Additionally, the company expects to incur approximately $250 million to $275 million in 2026 for its ProPower business. This range allows for additional equipment orders and associated down payments.

Caleb Weatherl: This range allows for additional equipment orders and associated down payments. The outlook is based on the current 550MW of PROPWR equipment on order, as well as plans to reach at least 750MW delivered by year-end 2028. While these PROPWR capital expenditure estimates reflect the total cost of the equipment, they do not account for the impact of financing arrangements, which are expected to reduce near-term actual cash outflows or cash CapEx required from the company. Cash and liquidity continue to remain healthy. As of 31 December 2025, total cash was $91 million, and borrowings under the ABL credit facility were $45 million. Total liquidity at the end of Q4 2025 was $205 million, including cash and $114 million of available capacity under the ABL credit facility.

Speaker #2: The outlook is based on the current $550 megawatts of ProPower equipment on order, as well as plans to reach at least $750 megawatts delivered by year-end 2028.

Speaker #2: While these ProPower capital expenditure estimates reflect the total cost of the equipment, they do not account for the impact of financing arrangements, which are expected to reduce near-term actual cash outflows or cash capex required from the company.

Speaker #2: Cash and liquidity continue to remain healthy. As of December 31st, 2025, total cash was $91 million, and borrowings under the ADL credit facility were $45 million.

Speaker #2: Total liquidity at the end of the fourth quarter of 2025 was $205 million. Including cash and $114 million of available capacity under the ABL credit facility.

Caleb Weatherl: Notably, as of 31 January 2026, total cash was $236 million, and borrowings under the ABL credit facility were $45 million. Total liquidity as of 31 January 2026 was $325 million, including cash and $89 million of available capacity under the ABL facility. This increase from year-end is primarily due to the approximately $163 million in net proceeds the company received through the equity offering we completed in January. Lastly, and as I mentioned last quarter, we'll continue to take a disciplined approach to deploying capital. This commitment ensures ProPetro remains well-positioned to fund the strategic growth of our PROPWR business while maintaining a strong financial foundation. Resilient free cash flow generated by our completion business, complemented by future contribution from our power segment, serves as the preferred source of capital for these initiatives.

Speaker #2: Notably, as of January 31st, 2026, total cash was $236 million, and borrowings under the ABL credit facility were $45 million. Total liquidity as of January 31st, 2026, was $325 million, including cash and $89 million of available capacity under the ABL facility.

Speaker #2: This increase from year-end is primarily due to the approximately $163 million in net proceeds the company received through the equity offering, we completed in January.

Speaker #2: Lastly, and as I mentioned last quarter, we'll continue to take a disciplined approach to deploying capital. This commitment ensures Perpetro remains well-positioned to fund the strategic growth of our ProPower business while maintaining a strong financial foundation.

Speaker #2: Resilient free cash flow generated by our completions business complemented by future contributions from our power segment serves as the preferred source of capital for these initiatives.

Speaker #2: In addition to internally generated free cash flow, we maintain access to flexible financing facilities with favorable terms, which we would utilize diligently and only as needed to preserve financial flexibility and low near-term leverage.

Caleb Weatherl: In addition to internally generated free cash flow, we maintain access to flexible financing facilities with favorable terms, which we would utilize diligently and only as needed to preserve financial flexibility and low near-term leverage. Most recently, our equity offering has further strengthened the balance sheet, increasing liquidity and ultimately reducing our reliance on debt to advance PROPWR. With these resources and actions in place, we are equipped to seize the exciting opportunities ahead for PROPWR and across our entire business, while continuing to drive long-term value for our stakeholders. Sam, back over to you.

Speaker #2: Most recently, our equity offering has further strengthened the balance sheet, increasing liquidity and ultimately reducing our reliance on debt to advance ProPower. With these resources and actions in place, we are equipped to seize the exciting opportunities ahead for ProPower and across our entire business while continuing to drive long-term value for our stakeholders.

Speaker #2: Sam, back over to you.

Speaker #1: Thanks, Caleb. As we wrap up today's call, I want to address the significant interest we've received from various stakeholders regarding what differentiates ProPower in the power market.

Sam Sledge: Thanks, Caleb. As we wrap up today's call, I want to address the significant interest we've received from various stakeholders regarding what differentiates ProPWR in the power market, how the business has positively progressed since its launch in late 2024, and how we foresee its evolution in the future. Some of this will be restating what you've already heard from me earlier on the call. Since launching the business, ProPWR has demonstrated a unique execution strategy. A key differentiator of our strategy is our belief that there is meaningful value in acting now, deploying assets into the market, capturing market share, and then extending and expanding with both existing partners and those in our pipeline. Rather than waiting for the perfect contract, our speed to market advantage and confidence in operational execution enable us to build momentum and secure meaningful contracts over the past year.

Speaker #1: How the business has positively progressed since its launch in late 2024, and how we foresee its evolution in the future. Some of this will be restating what you've already heard from me earlier on the call.

Speaker #1: Since launching the business, ProPower has demonstrated a unique execution strategy: a key differentiator in our strategy is our belief that there is meaningful value in acting now, deploying assets into the market, capturing market share, and then extending and expanding with both existing partners and those in our pipeline.

Speaker #1: Rather than waiting for the perfect contract, our speed-to-market advantage and confidence in operational execution enable us to build momentum and secure meaningful contracts over the past year.

Speaker #1: Market dynamics have also evolved and continue to evolve in our favor. Demand for power has accelerated in the Permian, across the U.S., and globally.

Sam Sledge: Market dynamics have also evolved and continue to evolve in our favor. Demand for power has accelerated in the Permian, across the US and global. Since PROPWR's launch, there's been a further awakening to the scarcity of reliable power, and the data center and AI boom only amplify this issue. This has led to increasing demand for PROPWR within this arena. Our first data center contract, announced last October, was a pivotal moment. They signal our ability to participate in this arena and outside the Permian Basin, where we expect to grow in both deployed megawatts and contract duration over time. In the oilfield sector, we recognized early the emerging bottlenecks around power availability. Our foundation in the Permian positions us uniquely to solve these challenges for E&P customers, many of whom already know and trust ProPetro based on the proven performance of our legacy business lines.

Sam Sledge: Market dynamics have also evolved and continue to evolve in our favor. Demand for power has accelerated in the Permian, across the US and global. Since PROPWR's launch, there's been a further awakening to the scarcity of reliable power, and the data center and AI boom only amplify this issue. This has led to increasing demand for PROPWR within this arena. Our first data center contract, announced last October, was a pivotal moment. They signal our ability to participate in this arena and outside the Permian Basin, where we expect to grow in both deployed MW and contract duration over time. In the oilfield sector, we recognized early the emerging bottlenecks around power availability. Our foundation in the Permian positions us uniquely to solve these challenges for E&P customers, many of whom already know and trust ProPetro based on the proven performance of our legacy business lines.

Speaker #1: Since ProPower's launch, there's been a further awakening to the scarcity of reliable power and the data center and AI boom only amplify the tissue.

Speaker #1: This has led to increasing demand for ProPower within this arena. Our first data center contract announced last October was a pivotal moment. A signal our ability to participate in this arena and outside the Permian basin.

Speaker #1: Where we expect to grow in both deployed megawatts and contract duration over time. In the oilfield sector, we recognized early the emerging bottlenecks around power availability.

Speaker #1: Our foundation in the Permian positions us uniquely to solve these challenges for E&P customers, many of whom already know and trust ProPetro based on the proven performance of our legacy business line.

Speaker #1: We believe that no competitor matches our support infrastructure, logistics capabilities, supply chain expertise, and operational experience with heavy machinery and large-scale field assets. Accordingly, demand remains strong for ProPower in the oil and gas sector.

Sam Sledge: We believe that no competitor matches our support infrastructure, logistics capabilities, supply chain expertise, and operational experience with heavy machinery and large-scale field assets. Accordingly, demand remains strong for ProPWR in the oil and gas sector. This part of our commercial pipeline has also gained significant momentum as customers increasingly realize the cost savings of replacing inefficient power setup with efficient in-field distributed microgrid that ProPWR can offer. Moreover, as production matures and well inventory complexity increases, more power is going to be needed to maintain and especially increase production from today's level, placing additional stress on the already overburdened and in some places, non-existent Permian power grid. Given these dynamics, we anticipate continued growth in oil and gas power demand, which will remain a core opportunity alongside data center and other industrial infrastructure projects.

Speaker #1: This part of our commercial pipeline is also gaining significant momentum as customers increasingly realize the cost savings of replacing inefficient power setup with efficient in-field distributed microgrids that ProPower can offer.

Speaker #1: Moreover, as production matures and well inventory complexity increases, more power is going to be needed to maintain and especially increase production from today's level.

Speaker #1: Placing additional stress on the already overburdened and in some places nonexistent Permian power grid. Given these dynamics, we anticipate continued growth in oil and gas power demand, which will remain a core opportunity alongside data center and other industrial infrastructure projects.

Speaker #1: This diversification strengthens our position and underpins our confidence in our growth expectations. Looking ahead, we will continue to strategically deploy assets where we generate the highest return: a direct function of maximizing free cash flow while balancing the length of contract terms.

Sam Sledge: This diversification strengthens our position and underpins our confidence in our growth expectations. Looking ahead, we will continue to strategically deploy assets where we generate the highest return, a direct function of maximizing free cash flow while balancing the length of contract term. As I already mentioned, our pipeline today suggests increasing opportunities in larger, more substantial projects across the data center and industrial sectors, while maintaining a meaningful presence in oil and gas. We are excited for what lies ahead, and we continue to grow, innovate, and lead in the evolving power market. Lastly, it's clear that we've built ProPetro into a resilient company capable of generating cash through cycles while investing in higher return growth.

Speaker #1: As I already mentioned, our pipeline today suggests increasing opportunities in larger and more substantial projects across the data center and industrial sectors, while maintaining a meaningful presence in oil and gas.

Speaker #1: We are excited for what lies ahead, and we continue to grow, innovate, and lead in the evolving power market. Lastly, it's clear that we've built Perpetro into a resilient company capable of generating cash through cycles while investing in higher return growth.

Speaker #1: We proved in 2025 that we can respond proactively and decisively to the market, and 2026 will be a year focused on executing across ProPower and continuing to strengthen our core completions business.

Sam Sledge: We proved in 2025 that we can respond proactively and decisively to the market, and in 2026 will be a year focused on executing across PROPWR and continuing to strengthen our core completion business. I'm grateful for our team and how they navigated 2025 with urgency, discipline, and ownership. Their work positions us exceptionally well for the opportunities ahead. We remain confident in our strategy and in the future of ProPetro.

Speaker #1: I'm grateful for our team and how they navigated 2025 with urgency, discipline, and ownership. Their work positions us exceptionally well for the opportunities ahead.

Speaker #1: We remain confident in our strategy and in the future of Perpetro. With that, Operator, we'll now open the line for questions.

Arun Jayaram: ... With that, operator, we'll now open the line for questions.

Sam Sledge: ... With that, operator, we'll now open the line for questions.

Speaker #2: Thank you. If you have a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, simply press star one again.

Matt Augustine: Thank you. If you have a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, simply press star one again. One moment, please, for your first question. Your first question comes from the line of Derek Podhaizer of Piper Sandler. Your line is open.

Operator: Thank you. If you have a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, simply press star one again. One moment, please, for your first question. Your first question comes from the line of Derek Podhaizer of Piper Sandler. Your line is open.

Speaker #2: One moment, please, for your first question. Your first question comes from a line of Derek Podhaizer of Piper Sandler. Your line is open.

Derek Podhaizer: Hey, good morning, guys. Maybe we'll start with expanding on some of your last comments there, Sam, on PROPWR. Just trying to think about the contracting cadence for 2026. You mentioned you have 240MW committed today. I believe your average term is around 5 years. I know you're primarily addressing oil and gas, but obviously, we have the 60MW data center contract. How should we really think about this mix and term evolving as we work through 2026? And then do you believe we'll be close to additional data center contracts this year?

Speaker #3: Hey, good morning, guys. Maybe we'll start with expanding on some of your last comments there, Sam, on ProPower. Just trying to think about the contracting cadence for 2026.

Speaker #3: You mentioned you have six—sorry, 240 megawatts committed today. I believe your average term is around five years. I know you're primarily addressing oil and gas, but obviously we have the 60 megawatt data center contract.

Speaker #3: How should we really think about this mix and term evolving as we work through 2026? And then do you believe we'll be close to additional data center contracts this year?

Sam Sledge: Yeah, a great, great question. Good morning. I think for us, it's definitely, and we've shown this, it's definitely a portfolio approach. I think as we're starting and launching the business from both a commercial and operational standpoint, we value being able to get equipment on the ground, generate returns, and prove out our execution. You also heard in our remarks that we think of, you know, a larger share of our work over time as non-oil and gas. Those projects are, you know, many times, larger and a little bit different from a time horizon standpoint in a very positive way. So we do think our mix will evolve in that direction a little bit more over time.

Speaker #4: Yeah, great question. Good morning. I think for us, it's definitely—and we've shown this—it's definitely a portfolio approach. I think as we're starting and launching the business from both a commercial and operational standpoint, we value being able to get equipment on the ground, generate returns, and prove out our execution.

Speaker #4: You also heard in our remarks that we think of a larger share of our work over time as non-oil and gas. Those projects are many times larger and a little bit different from a time horizon standpoint in a very positive way.

Speaker #4: So, we do think our mix will evolve in that direction a little bit more over time. And look, I think we're pretty proud to have contracted well over 200 megawatts in our first year standing up the company.

Sam Sledge: And look, I think we're pretty, we're pretty proud to have contracted well over 200MW in our first year standing up the company. And, you know, if we stick to our 5-year plan, which we think is, is very doable and executable, I think you can look for, you know, that level of, of contracted equipment from us, you know, on, on almost an annual basis moving forward to get to the, the 1GW number, 5 years out. So we're, we're really confident in our ability to continue to march down that, that path. That said, you know, to the upside of that, some of these non-oil and gas data center, industrial type, projects can be much bigger and chunkier in nature.

Speaker #4: And if we stick to our five-year plan, which we think is very doable and executable, I think you can look for that level of contracted equipment from us on almost an annual basis moving forward to get to the one gigawatt number five years out.

Speaker #4: So we're really confident in our ability to continue to march down that path. That said, to the upside of that, some of these non-oil and gas data center industrial-type projects can be much bigger and chunkier in nature.

Speaker #4: So one of those can potentially change that timeline and that mix very significantly if we're able to capitalize on one of those opportunities soon.

Sam Sledge: So one of those can potentially change that timeline and that mix very significantly if we're able to capitalize on one of those opportunities soon.

Speaker #3: Got it. That's helpful. Appreciate the color. Switching over to the completion side of things, I found it interesting you mentioned 70 fleets today down from 90 to 100.

Derek Podhaizer: Got it. That's helpful. Appreciate the color. Switching over to the completion side of things, and I found it interesting, you mentioned 70 fleets today, down from 90 to 100, and I know one of the big themes as you work towards the end of the year is around frac attrition. You obviously have your version of frac attrition, where you'll be refurbing some of your Tier Four DGBs. You talked about investing in direct drive to help offset some of your legacy Tier Two Diesel assets. My guess is that you'll be replacing those Tier Two Diesel assets, and I think this is a theme that we're seeing across the market. So maybe just simplistically, does the industry have enough frac equipment to get back to that 90 to 100 level if there's a call on demand?

Derek Podhaizer: Got it. That's helpful. Appreciate the color. Switching over to the completion side of things, and I found it interesting, you mentioned 70 fleets today, down from 90 - 100, and I know one of the big themes as you work towards the end of the year is around frac attrition. You obviously have your version of frac attrition, where you'll be refurbing some of your Tier Four DGBs. You talked about investing in direct drive to help offset some of your legacy Tier Two Diesel assets. My guess is that you'll be replacing those Tier Two Diesel assets, and I think this is a theme that we're seeing across the market. So maybe just simplistically, does the industry have enough frac equipment to get back to that 90 - 100 level if there's a call on demand?

Speaker #3: And I know one of the big themes as we work towards the end of the year is around frac attrition. You obviously have your version of frac attrition, but you'll be refurbishing some of your Tier 4 DGVs.

Speaker #3: You talked about investing in direct drive to help offset some of your legacy Tier 2 diesel assets. My guess is that you'll be replacing those Tier 2 diesel assets, and I think this is a theme that we're seeing across the market.

Speaker #3: So maybe it's just simplistically: does the industry have enough frac equipment to get back to that 90 to 100 level if there's a call on demand?

Speaker #3: Maybe just some of your thoughts around the potential tightness we could see in this frac market if we do see some activity start coming back as we work towards the end of the year.

Derek Podhaizer: Maybe just some of your thoughts around the potential tightness we could see in this frac market if we do see some activity start coming back as we work towards the end of the year.

Speaker #4: I think the short answer on can we get back to that 90 to 100 in the Permian—I think that would be a major stretch for the existing pressure pumping market.

Sam Sledge: I think the short answer on can we get back to that 90 to 100 in the Permian, that's. I think that would be a major stretch for the existing pressure pumping market. We have been banging the attrition drum loudly the last few years, and a lot of that is because of the information that we get through our own company and our own business, and you know, how, how difficult it is to keep a sizable fleet operating in these market conditions. That said, all along, when we've been talking about attrition, especially at the bottom end of the market, the smaller, less sophisticated players, the market has been shrinking as well. So you haven't had circumstances in a way where that attrition necessarily shows through.

Sam Sledge: I think the short answer on can we get back to that 90 - 100 in the Permian, that's. I think that would be a major stretch for the existing pressure pumping market. We have been banging the attrition drum loudly the last few years, and a lot of that is because of the information that we get through our own company and our own business, and you know, how, how difficult it is to keep a sizable fleet operating in these market conditions. That said, all along, when we've been talking about attrition, especially at the bottom end of the market, the smaller, less sophisticated players, the market has been shrinking as well. So you haven't had circumstances in a way where that attrition necessarily shows through.

Speaker #4: We have been banging the attrition drum loudly the last few years, and a lot of that is because of the information that we get through our own company and our own business.

Speaker #4: And how difficult it is to keep a sizable fleet operating in these market conditions. That said, all along, when we've been talking about attrition, especially at the bottom end of the market, the smaller, less sophisticated players—the market has been shrinking as well.

Speaker #4: So you haven't had circumstances in a way where that attrition necessarily shows through. That's why we continue to remind people that if and when activity ticks up, it's not going to take very much to structurally tighten the market.

Sam Sledge: That's why we continue to remind people that if and when activity ticks up, it's not gonna take very much to structurally tighten the market. That said, it's hard for us to see past what everyone else can see is the potential, you know, crude oil supply glut and what weakness might remain there for kind of the near term. But we all know this business cycles, that the supply and demand balance usually fixes itself. If and when that happens, I think we're gonna have a frac operation that is very, very well positioned to capitalize on a much tighter market. We've got a great portfolio of technology starting to dribble in, a little bit of direct drive gas equipment.

Speaker #4: That said, it's hard for us to see past what everyone else can see is the potential crude oil supply glut, and what weakness might remain there for kind of the near term.

Speaker #4: But we all know this business cycles that the supply and demand balance usually fixes itself if and when that happens. I think we're going to have a frac operation that is very, very well positioned to capitalize on a much tighter market.

Speaker #4: We've got a great portfolio of technology starting to dribble in a little bit of direct drive gas equipment. We have one of the premier electric frac operations in the Permian Basin.

Sam Sledge: We have one of the premier electric frac operations in the Permian Basin, and we have some very flexible, you know, diesel and dual fuel assets that are, that are quite valuable in today's market as well. So we, we think that we're very, very well positioned to capitalize on that structural tightness, when it does come, and we think it will.

Speaker #4: And we have some very flexible diesel and dual-fuel assets that are quite valuable in today's market as well. So we think that we're very, very well positioned to capitalize on that structural tightness when it does come.

Speaker #4: And we think it will.

Speaker #3: Great. Thanks, Sam. I'll turn it back.

Derek Podhaizer: Great. Thanks, Sam. I'll turn it back.

Speaker #2: Your next question comes from Lena Varun. JRM of JPMorgan. Your line is open.

Matt Augustine: Your next question comes from the line of Arun, Jayaram of JP Morgan. Your line is open.

Operator: Your next question comes from the line of Arun, Jayaram of JPMorgan. Your line is open.

Speaker #5: Yeah, good morning, Sam and just talk to you or ask you about—pardon me—just about kind of the mix between finance, CapEx versus cash CapEx in 2025.

Arun Jayaram: Yeah, good morning, Sam and team. I wanted to just talk to you or ask you about, pardon me, just about kind of the mix between finance CapEx versus a cash CapEx. In 2025, gentlemen, you financed just under 30% of your $281 million of CapEx incurred. And so, how should we think about that mix relative to the 2026 CapEx program, which is kind of just above $400 million at the midpoint?

Speaker #5: Gentlemen, you financed just under 30% of your $281 million of CapEx incurred. And so is that—how should we think about that mix relative to the 2026 CapEx program, which is kind of just about $400 million at the midpoint?

Sam Sledge: ... Yeah. So, in terms of funding our CapEx program, we have a lot of different options. We obviously did the equity issuance opportunistically from a position of strength, and we're always gonna prioritize our use of sources of capital to fund our growth from a cost, flexibility, and size standpoint. So first of all, we like to use cash on the balance sheet, including organically generated cash from our business, to fund growth. But like you mentioned, we have several flexible and competitive debt facilities in our ABL and cap finance facility, and we are also happy to have the Stonebriar lease financing facility in place, which is committed capital that we can draw on as needed. So I think that we have, like, several different attractive options, and we'll plan to use a mix of those.

Caleb Weatherl: ... Yeah. So, in terms of funding our CapEx program, we have a lot of different options. We obviously did the equity issuance opportunistically from a position of strength, and we're always gonna prioritize our use of sources of capital to fund our growth from a cost, flexibility, and size standpoint. So first of all, we like to use cash on the balance sheet, including organically generated cash from our business, to fund growth. But like you mentioned, we have several flexible and competitive debt facilities in our ABL and cap finance facility, and we are also happy to have the Stonebriar lease financing facility in place, which is committed capital that we can draw on as needed. So I think that we have, like, several different attractive options, and we'll plan to use a mix of those.

Speaker #4: Yeah. So in terms of funding our CapEx program, we have a lot of different options. We obviously did the equity issuance opportunistically from a position of strength, and we're always going to prioritize our use of sources of capital to fund our growth from a cost flexibility and size standpoint.

Speaker #4: So first of all, we like to use cash on the balance sheet, including organically generated cash from our business, to fund growth. But like you mentioned, we have several flexible and competitive debt facilities in our ABL and cap finance facility.

Speaker #4: And we are also happy to have the Stonebriar lease financing facility in place, which is committed capital that we can draw on as needed.

Speaker #4: So, I think that we have several different attractive options, and we'll plan to use a mix of those.

Arun Jayaram: Great. Just as my follow-up, you guys have, you know, 7 Tier Four DGB fleet, if my notes are correct. Sam, could you talk about some of the planned upgrades between automation and the investments in the direct drive? Just trying to understand how your DGB fleet will evolve, you know, over time.

Speaker #5: Great. And just as my follow-up, you guys have seven Tier 4 DGB fleet if my notes are correctly. Sam, could you talk about some of the planned upgrades between automation, and the investments in the direct drive?

Speaker #5: Just trying to understand how your DGB fleet will evolve over time.

Sam Sledge: Yeah. You know, we made our first DGB investments, probably a little over five years ago, and built on that pretty aggressively for a couple of years and have held it relatively flat, since peaking out around that seven fleet range. We obviously have, you know, we're bringing in some of the direct drive units like we already talked about. We also have our electric offering and our diesel offering. And as I said, that portfolio, we find to be very valuable in the Permian Basin, where there is both, you know, stranded gas, where we can, you know, capitalize on that type of situation with the customer, but also in other places where customers are selling their gas at a very reasonable price and might want to burn diesel, or a blend of the two.

Speaker #4: Yeah. We made our first DGB investments probably a little over five years ago, and built on that pretty aggressively for a couple of years, and have held it relatively flat.

Speaker #4: Since peaking out around that seven-fleet range, we obviously have— we're bringing in some of the direct drive units like we already talked about. We also have our electric offering and our diesel offering.

Speaker #4: And as I've said, that portfolio we find to be very valuable in the Permian Basin. Where there is both stranded gas, where we can capitalize on that type of situation with a customer, but also in other places where customers are selling their gas at a very reasonable price and might want to burn diesel or a blend of the two.

Sam Sledge: So, it's probably hard to see from an external standpoint, but there's a lot of regional pockets in the Permian in size and sophistication of E&Ps that value all of these, these different types of offerings. And, I think what we have now is a very good portfolio for us to be able to service the biggest, most, most sophisticated, E&Ps in the Permian, but also the growing independents that still exist in a, in an entrepreneurial area, like West Texas and New Mexico. So I think, in the near term, Arun, from, like, a portfolio mix standpoint, it's probably just more of the same for us.

Speaker #4: So it's probably hard to see from an external standpoint, but there's a lot of regional pockets in the Permian in size and sophistication of EMPs that value all of these different types of offerings.

Speaker #4: And I think what we have now is a very good portfolio for us to be able to service the biggest, most sophisticated EMPs in the Permian.

Speaker #4: But also the growing independence that still exists in an entrepreneurial area like West Texas and New Mexico. So I think in the near term, Arun, from a portfolio mix standpoint, it's probably just more of the same for us.

Speaker #4: We talked about rebuilding some Tier 4s and maintaining kind of that seven fleet type of capacity for that. But also making a nod to some of the newer technologies like direct drive that certain customers are very interested in.

Sam Sledge: We talked about rebuilding some Tier Fours, and maintaining kind of that 7 fleet type of capacity for that, but also making a nod to some of the newer technologies like direct drive, that certain customers are very interested in. And on the-- you mentioned the fleet automation technology.

Speaker #4: And you mentioned the fleet automation technology. Look, that's just really, in some ways, we believe the cost of doing business and the cost of playing the game at the highest level in the pressure pumping sector, where you've got to be able to bring those types of high-tech solutions to your customers and allow them to fine-tune their completions programs.

Sam Sledge: Look, that's just really, in some ways, we believe the cost of doing business and the cost of playing the game at the highest level in the pressure pumping sector, where you've got to be able to bring those types of high-tech solutions to your customers and allow them to fine-tune their completions programs as much as possible, while at the same time deploying technology internally into our business that allows us to extend equipment life and use more predictive maintenance tools, lots of things like that. So that's where some of these technology upgrades are coming from us. And I think to sum all that up, these are the types of things you have to do to remain competitive at the highest level in the pressure pumping sector.

Speaker #4: As much as possible while at the same time deploying technology internally into our business that allows us to extend equipment life and use more predictive maintenance tools.

Speaker #4: Lots of things like that. So that's where some of these technology upgrades are coming from us. And I think, to sum all that up, these are the types of things you have to do to remain competitive at the highest level.

Speaker #4: In the pressure pumping sector, there's a lot of players that aren't making these moves and these investments. Back to kind of the structural tightness that we believe will exist in the future because the bar just continues to go higher every day from a performance technology equipment standpoint.

Sam Sledge: There's a lot of players that aren't making these moves and these investments back to kind of the structural tightness that we believe will exist in the future, because the bar just continues to go higher every day from a performance, technology, and equipment standpoint, and we like our position being able to compete in that game in the future.

Speaker #4: And we like our position being able to compete in that game in the future.

Speaker #5: Great. Thanks, gents.

Arun Jayaram: Great. Thanks, gents.

Speaker #2: Your next question comes from Lena Steven. Jun Garo of Stifel. Your line is open.

Matt Augustine: Your next question comes from the line of Steven Gengaro of Stifel. Your line is open.

Operator: Your next question comes from the line of Stephen Gengaro of Stifel. Your line is open.

Operator: Good morning, everybody. I had two questions, Sam. The first one was just around the demand for power in the oil patch versus the assets getting pulled into other applications for data centers, et cetera. And is there any concern about the cost of power for the e-fracs and how that evolves and how that affects the frac business?

Stephen Gengaro: Good morning, everybody. I had two questions, Sam. The first one was just around the demand for power in the oil patch versus the assets getting pulled into other applications for data centers, et cetera. And is there any concern about the cost of power for the e-fracs and how that evolves and how that affects the frac business?

Speaker #6: Good morning, everybody. I had two questions, Sam. The first one was just around the demand for power in the oil patch versus the assets getting pulled into other applications for data centers, etc.

Speaker #6: And is there any concern about the cost of power for the EFREX and how that evolves and how that affects the frac business?

Sam Sledge: Yeah, I'll answer the e-frac question first, and maybe let Travis chime in on your first question. I don't think we have any concern around e-frac power right now. We kind of look at that market, and it having matured a bit over the last year or so. That was a very aggressively growing market for a few years there when we were deploying into it, and getting power to pair with that electric. Our FORCE electric frac equipment was a bit of a task at the time. But we think a lot of that equipment that's serving the e-frac market is in a pretty stable place, given that that market's not really growing that fast right now.

Speaker #4: Yeah, I'll answer the EFREX question first, and maybe let Travis chime in. On your first question, I don't think we have any concern around EFREX power right now.

Speaker #4: We kind of look at that market, and it having matured a bit over the last year or so. That was a very aggressive, growing market for a few years there when we were deploying into it.

Speaker #4: And getting power to pair with that electric our force electric frac equipment was a bit of a task at the time. But we think a lot of that a lot of that equipment that's serving the EFREX market is in a pretty stable place, given that that market's not really growing.

Speaker #4: That's fast right now. And a lot of that power is more custom-tuned and built for that very application, so it has a little bit of a more difficult time going other places in the power market.

Sam Sledge: A lot of that power is more custom-tuned and built for that very application, so it has a little bit—have a more difficult time going other places in the power market. Travis, I don't know if you want to take his first question.

Speaker #4: Travis, I don't know if you want to take his first question.

Speaker #6: Yeah. I guess the first question was just on the oil and gas demand relative to the data center markets. Clearly, we see both growing. The data center demand is much higher. We're excited to be able to diversify into both sectors.

Travis Simory: Yeah, I guess the first question was just on the oil and gas demand relative to the data center markets. Clearly, we see both growing. The data center demand is much higher. We're excited to be able to diversify into both sectors. Really excited that we were able to kind of act quickly and execute in the oil field, here in our backyard and just get confidence and grow our fleet. But also, the ability to do that has allowed us to participate in these larger, and longer, chunkier deals in the data center market. So we're just. We're happy to be able to participate in both and have the equipment that I think serves both because of the high efficiency, you know, low emissions that we've done.

Travis Simmering: Yeah, I guess the first question was just on the oil and gas demand relative to the data center markets. Clearly, we see both growing. The data center demand is much higher. We're excited to be able to diversify into both sectors. Really excited that we were able to kind of act quickly and execute in the oil field, here in our backyard and just get confidence and grow our fleet. But also, the ability to do that has allowed us to participate in these larger, and longer, chunkier deals in the data center market. So we're just. We're happy to be able to participate in both and have the equipment that I think serves both because of the high efficiency, you know, low emissions that we've done.

Speaker #6: Really excited that we were able to kind of act quickly and execute in the oil field here in our backyard, and just get confidence and grow our fleet.

Speaker #6: But also the ability to do that has allowed us to participate in these larger and longer chunkier deals in the data center market. So we're happy to be able to participate in both and have the equipment that I think serves both because of the high efficiency low emissions that we've done.

Operator: Thank you. And the follow-up I had was just around when you think about contract duration versus terms on some of the data center contracts that you're looking at, should we think about the returns on the investment being potentially a little bit lower if you're able to secure long-term contracts? We've heard that from others, which, you know, when you have visibility of cash flows, it's a big positive, but the returns and/or pricing could tend to be a little lower. Is that the right way to think about the blend?

Stephen Gengaro: Thank you. And the follow-up I had was just around when you think about contract duration versus terms on some of the data center contracts that you're looking at, should we think about the returns on the investment being potentially a little bit lower if you're able to secure long-term contracts? We've heard that from others, which, you know, when you have visibility of cash flows, it's a big positive, but the returns and/or pricing could tend to be a little lower. Is that the right way to think about the blend?

Speaker #6: Thank you. And the follow-up I had was just around when you think about contract duration versus terms on some of the data center contracts that you're looking at, should we think about the returns on the investment being potentially a little bit lower if you're able to secure a long-term contract?

Speaker #6: We've heard that from others, which, when you have visibility of cash flows, is a big positive. But the returns and/or pricing could tend to be a little lower.

Speaker #6: Is that the right way to think about the blend?

Speaker #4: Yeah. I think it's a balancing act. I mean, we're looking at a diverse group of contracts and duration. And even site size. So we look at a number of different variables that we weigh into our return metrics.

Travis Simory: Yeah, I think it's a balancing act. I mean, we're looking at a diverse group of contracts and duration, and even site size. So we look at a number of different variables that we weigh into our return metrics. But, you know, there's a possibility as they go really long that, you know, we're willing to take something a little bit lower.

Travis Simmering: Yeah, I think it's a balancing act. I mean, we're looking at a diverse group of contracts and duration, and even site size. So we look at a number of different variables that we weigh into our return metrics. But, you know, there's a possibility as they go really long that, you know, we're willing to take something a little bit lower.

Speaker #4: But there's a possibility as they go really long that we're willing to take something a little bit lower.

Sam Sledge: You know, Steven, I'll just add a little bit more to that. In watching Travis and his team work through this commercial pipeline, you know, there's only so much time and energy and assets that we can deploy. So I think everything that Travis said is highly accurate. It's definitely a balancing portfolio effort. That said, we prioritize real conversations with customers that are serious about, you know, making moves and cutting deals that are mutually beneficial to both of them and what we have to offer at ProPower. And I think what you've seen from us to date in the contracts that we've inked and the assets that we're going to deploy are to real projects that are going to generate real earnings and have real timelines.

Sam Sledge: You know, Stephen, I'll just add a little bit more to that. In watching Travis and his team work through this commercial pipeline, you know, there's only so much time and energy and assets that we can deploy. So I think everything that Travis said is highly accurate. It's definitely a balancing portfolio effort. That said, we prioritize real conversations with customers that are serious about, you know, making moves and cutting deals that are mutually beneficial to both of them and what we have to offer at ProPower. And I think what you've seen from us to date in the contracts that we've inked and the assets that we're going to deploy are to real projects that are going to generate real earnings and have real timelines.

Speaker #5: Stephen, I'll just add. I'll just add a little bit more to that and watching Travis and his team work through this commercial pipeline. There's only so much time and energy and assets that we can deploy.

Speaker #5: So I think everything that Travis said is highly accurate. It's definitely a balancing portfolio. Effort. That said, we prioritize real conversations with customers that are serious about making moves and cutting deals that are mutually beneficial to both of them and what we have to offer and pro power.

Speaker #5: And I think what you've seen from us to date in the contracts that we've been and the assets that we're going to deploy are to real projects that are going to generate real earnings and have real timelines.

Sam Sledge: There's a lot of blue sky out there in this market that I think mostly materializes over time. But from a timing aspect, you know, in running a business, like we run ours, that's highly interested in real work and real earnings, we usually move to the front of the line, the people that are most serious about actually getting a deal done and getting equipment into the field.

Speaker #5: There's a lot of blue sky out there in this market that I think mostly materializes over time. But from a timing aspect, in running a business like we run ours that's highly interested in real work and real earnings, we usually move to the front of the line the people that are most serious about actually getting a deal done and getting equipment.

Speaker #5: Into the field.

Speaker #6: Great. No, thank you both for all the details.

Operator: Great. No, thank you both for all the details.

Stephen Gengaro: Great. No, thank you both for all the details.

Speaker #2: Your next question comes from Lane of Eddie Kim of Barclays. Your line is open.

Matt Augustine: Your next question comes from the line of Eddie Kim of Barclays. Your line is open.

Operator: Your next question comes from the line of Eddie Kim of Barclays. Your line is open.

Speaker #5: Hi, good morning. Just wanted to ask about the cost of your power equipment and if it changes based on the end market. You mentioned you expect a larger share of your work over time will be towards non-oil and gas applications.

Eddie Kim: Hi, good morning. Just wanted to ask about the cost of your power equipment and if it changes based on the end market. You mentioned you expect a larger share of your work over time will be toward non-oil and gas applications. To the extent more of your equipment goes toward data centers going forward, just curious if the mousetrap or configuration is different, such that the $1.1 million per MW cost estimate increases at all as a result? Any thoughts there would be great.

Speaker #5: To the extent more of your equipment goes toward data centers going forward, I'm just curious if the mousetrap or configuration is different such that the $1.1 million per megawatt cost estimate increases at all as a result.

Speaker #5: Any thoughts there would be great.

Speaker #4: Yeah, that's a good question. So the $1.1 million that we've talked about is for the modular equipment we bought today. Definitely works at certain power nodes in both the oil and gas and data center market.

Travis Simory: Yeah, that's a good question. So the $1.1 million that we've talked about is for the modular equipment we bought today, definitely works at certain power nodes in both the oil and gas, and data center market. You know, as we evaluate technologies that might be a little bit larger, and maybe more infrastructure-esque, I think there's a possibility that that CapEx goes up a little bit on that equipment, but obviously requires a longer tenure on the contract and maybe larger contract size to justify that investment.

Travis Simmering: Yeah, that's a good question. So the $1.1 million that we've talked about is for the modular equipment we bought today, definitely works at certain power nodes in both the oil and gas, and data center market. You know, as we evaluate technologies that might be a little bit larger, and maybe more infrastructure-esque, I think there's a possibility that that CapEx goes up a little bit on that equipment, but obviously requires a longer tenure on the contract and maybe larger contract size to justify that investment.

Speaker #4: As we evaluate technologies that might be a little bit larger and maybe more infrastructure-esque, I think there's a possibility that that CapEx goes up a little bit.

Speaker #4: On that equipment. But obviously, it requires a longer tenor on the contract and maybe a larger contract size to justify that investment.

Speaker #6: Got it. Got it. Thank you. And then just sticking on the cost estimate, so you mentioned you expect the cost of the 550 megawatts ordered to date to be that $1.1 million per megawatt.

Eddie Kim: Got it. Got it. Thank you. And then, just sticking on the cost estimate, so you mentioned you expect the cost of the 550 megawatts ordered to date to be that $1.1 million per megawatt, including the balance of plant. For the incremental, you know, 450 megawatts to get to your 1 gigawatt target by 2030, do you expect that incremental capacity to cost a bit more than your estimate? So just, I mean, just curious, are the OEMs starting to raise pricing industry-wide? How has the pricing environment for power gen equipment changed, if at all, over the past six months or so?

Eddie Kim: Got it. Got it. Thank you. And then, just sticking on the cost estimate, so you mentioned you expect the cost of the 550MW ordered to date to be that $1.1 million per megawatt, including the balance of plant. For the incremental, you know, 450MW to get to your 1GW target by 2030, do you expect that incremental capacity to cost a bit more than your estimate? So just, I mean, just curious, are the OEMs starting to raise pricing industry-wide? How has the pricing environment for power gen equipment changed, if at all, over the past six months or so?

Speaker #6: Including the balance of plant. For the incremental 450 megawatts to get to your one gigawatt target by 2030, do you expect that that incremental capacity to cost a bit more than your estimate?

Speaker #6: I mean, just curious, are the OEMs starting to raise pricing industry-wide? How is the pricing environment for power gen equipment changed if at all over the past six months or so?

Speaker #4: Yeah, we’re evaluating the mix on the additional 450. We have a lot of optionality there right now. I think the important thing is that the return metrics will be the same, regardless of the CapEx.

Travis Simory: Yeah, we're evaluating the mix on the additional 450, have a lot of optionality there right now. I think the important thing is that the return metrics will be the same regardless of the CapEx input. So we're evaluating, you know, projects and different industries a little bit different from an equipment perspective, but looking at the same return profile across the board.

Travis Simmering: Yeah, we're evaluating the mix on the additional 450, have a lot of optionality there right now. I think the important thing is that the return metrics will be the same regardless of the CapEx input. So we're evaluating, you know, projects and different industries a little bit different from an equipment perspective, but looking at the same return profile across the board.

Speaker #4: Input. So we're evaluating projects and different industries a little bit different from an equipment perspective, but looking at the same return profile across the board.

Speaker #6: Got it. Got it. That makes sense. Great. I'll turn it back. Thank you.

Eddie Kim: Got it. Got it. That makes sense. Great. I'll turn it back. Thank you.

Speaker #2: Your next question comes from the line of Jeff LeBlanc of TPH. Your line is open.

Matt Augustine: Your next question comes from the line of Jeff LeBlanc of TPH. Your line is open.

Operator: Your next question comes from the line of Jeff LeBlanc of TPH. Your line is open.

Jeff LeBlanc: Good morning, Sam and team. Thank you for taking my question. In the press release, you referenced that the opportunity to deploy incremental fleets is limited, but have you had success transitioning your existing customers from Tier Four... Excuse me, the Tier Two to the Tier Four DGB assets? Because I think at some point you had some assets idle.

Speaker #5: Good morning, Sam and team. Thank you for taking my question. In the press release, you referenced the opportunities to deploy incremental fleets as limited.

Speaker #5: But have you had success transitioning your existing customers from Tier 4, excuse me, to Tier 2 to the Tier 4 DGB assets? Because I think at some point you had some assets idle.

Sam Sledge: ... Yeah, there's been a little bit of that, but I think going back to kind of some things that I mentioned earlier, it's more of a specific tool for a specific customer and region right now. You know, gas prices can vary greatly across the Permian Basin, depending on where you are and what your pipeline deal is. So it's a little bit less of we need to grow a customer from diesel to dual fuel into electric. That was a game that we played very heavily and very successfully into the last several years.

Speaker #4: Yeah. There's been a little bit of that. But I think going back to kind of some things that I mentioned earlier, it's more of a it's more of a specific tool for a specific customer and region, right now.

Speaker #4: Gas prices can vary greatly across the Permian Basin depending on where you are and what your pipeline deal is. So it's a little bit less of, we need to grow a customer from diesel to dual fuel into electric.

Speaker #4: That was a game that we played very heavily and very successfully into the last several years. But I think there's a little bit more stability in the market right now.

Sam Sledge: But I think there's a little bit more stability in the market right now, and I think it at the given activity levels, crude prices, gas prices, I think most of the E&Ps that we're dealing with, they know exactly what they want, and they know exactly what fuel sources that they want to utilize, wherever their specific acreage might be. So there's still a little bit of that going on, but I'd say that's a little bit less of a game that's being played today than it was, maybe a couple of years ago.

Speaker #4: And I think at the given activity levels, crude prices, gas prices, I think most of the EMPs that we're dealing with, they know exactly what they want.

Speaker #4: And they know exactly what fuel sources that they want to utilize wherever their specific acreage might be. So there's still a little bit of that going on.

Speaker #4: But I'd say that's a little bit less of a game that's being played today than it was maybe a couple of years ago.

Jeff LeBlanc: Okay. Thank you for the color. I'll hand the call back to the operator.

Speaker #5: Okay, thank you for the color. I'll hand the call back to the operator.

Speaker #2: Thank you. Your next question comes from Lane of John Daniel of Daniel Energy Partners. Your line is open.

Matt Augustine: Thank you. Your next question comes from the line of John Daniel of Daniel Energy Partners. Your line is open.

Operator: Thank you. Your next question comes from the line of John Daniel of Daniel Energy Partners. Your line is open.

John Daniel: Hey, good morning. Thanks for having me. Just a couple quick housekeeping. Sam, can you say how many of the Tier Two fleets are working today?

Speaker #6: Hi. Good morning. Thanks for having me. Just a couple of quick housekeeping say how many of the Tier 2 fleets are working today?

Sam Sledge: 2 or 3.

Speaker #4: Two or three.

John Daniel: 2 or 3. Okay. And then on the direct drive, I got in a little bit late on the call. Did you specify, like, how many units you're adding and just a little bit more on that, the strategy there?

Speaker #6: Two or three. Okay. And then on the direct drive, I got a little bit late on the call. Did you specify how many units you're adding and just a little bit more on the strategy there?

Speaker #4: Yeah, we've had a couple of units running for the last six months or so. They're part of kind of like a pilot program for us.

Sam Sledge: Yeah, we've had a couple units running for the last, oh, six months or so. They're part of kind of like a pilot program for us. We're going to add more than that, here with kind of the CapEx that we've outlined, but not a lot, John. These aren't like, fleets at a time. This is kind of like gradually adding them in with some of the, attrition that we're seeing in our own fleet, and taking them to very specific customers that have showed an interest in that equipment and committing to it over some period of time. So it's not, you know, this is not like a major reinvestment cycle for us.

Speaker #4: We're going to add more than that here with kind of the CapEx that we've outlined. But not a lot, John. These aren't like fleets at a time.

Speaker #4: This is kind of like gradually adding them in with some of the attrition that we're seeing in our own fleet. And taking them to very specific customers that have showed an interest in that equipment and committing to it over some period of time.

Speaker #4: So it's not this is not like a major reinvestment cycle for us. This is kind of an evolution kind of slow evolution that is being listening to certain customers of ours.

Sam Sledge: This is kind of an evolution, kind of a slow evolution that is, you know, being, you know, listening to certain customers of ours. I guess it's a little bit more of a rifle approach. So yeah.

Speaker #4: I guess it's a little bit more of a rifle approach. So, yeah.

John Daniel: Fair enough. And then last one, just since I'm a traditional energy guy, can you just give us some thoughts on wireline and cementing, what you're seeing in both of those service lines today?

Speaker #6: Fair enough. And then last one, just since I'm a traditional energy guy, can you just give us some thoughts on wireline and cementing—what you're seeing in both of those service lines today?

Speaker #4: Yeah. Wireline silver tip team has done a fantastic job over the last year managing the market volatility I think we've probably been a net market share winner in that business along with really good margins, really good pricing discipline, there's been maybe a little bit of a flight to quality in the wireline business and we've benefited from that.

Sam Sledge: Yeah, wireline, Silvertip team has done a fantastic job over the last year, managing the market volatility. I think we've probably been a net market share winner in that business, along with really good margins, really good pricing discipline. There's been maybe a little bit of a flight to quality in the wireline business, and we've benefited from that. Very, very stable right now. We've got a good amount of overlap with our frac fleets, which also creates good integration and stability, good, you know, efficiency. Cementing, you know, we've seen the rig count throughout last year continue to dribble lower, and it's still at a pretty depressed area.

Speaker #4: Very stable right now. We've got a good amount of overlap with our frac fleets, which also creates good integration and stability. Good efficiency. Cementing—we've seen the rig count throughout last year continue to dribble lower.

Speaker #4: And it's still at a pretty depressed area. That's hit that business a little bit. But we think the bones are there to have a really great business over time. I think we're probably top three or four market share there.

Sam Sledge: That's hit that business a little bit, but we think the bones are there, you know, to have a really great business over time. I think we're probably top 3 or 4 market share there. Very competitive, you know, one of the best labs in bulk plants in the Permian Basin, and a great footprint on the western side of the basin and the Delaware with the Par Five acquisition that we made a couple of years ago. So that business is down a little bit relatively to something like powerline and wireline and frack, but still in a really good, strong position.

Speaker #4: Very competitive. One of the best labs and bulk plants in the Permian Basin, and a great footprint on the western side of the basin in the Delaware with the Par-5 acquisition that we made a couple of years ago.

Speaker #4: So that business is down a little bit relatively to something like power line and wireline and frac, but still in a really good, strong position.

Speaker #6: Okay. Gotcha. Thank you for that. That's all I had.

John Daniel: Okay. That's it. Thank you for that. That's all I had today.

Speaker #4: Thanks.

Sam Sledge: Thanks.

Speaker #2: And again, if you have a question, it's star one on your telephone keypad. Your next question comes from Lane of Scott Gruber of Citigroup.

Matt Augustine: Again, if you have a question, it's star one on your telephone keypad. Your next question comes from line of Scott Gruber of Citigroup. Your line is open.

Operator: Again, if you have a question, it's star one on your telephone keypad. Your next question comes from line of Scott Gruber of Citigroup. Your line is open.

Speaker #2: Your line is open.

[Analyst] (Citigroup): Yes, good morning. I want to come back to the power side. The demand for on-site generation for data centers appears to be taking another step higher here. I think CapEx numbers from the hyperscalers continue to grow. And you mentioned that it's unlikely that the data center market pulls eFrac megawatts, you know, due to the design configuration differences. But, you know, is the pull from the data center market starting to improve the terms and conditions and potentially the return profile that you're able to achieve on incremental investment, you know, in megawatts, you know, into the oil field microgrids?

Scott Gruber: Yes, good morning. I want to come back to the power side. The demand for on-site generation for data centers appears to be taking another step higher here. I think CapEx numbers from the hyperscalers continue to grow. And you mentioned that it's unlikely that the data center market pulls eFrac MW, you know, due to the design configuration differences. But, you know, is the pull from the data center market starting to improve the terms and conditions and potentially the return profile that you're able to achieve on incremental investment, you know, in MW, you know, into the oil field microgrids?

Speaker #6: Yes. Good morning. I want to come back to the power side. Demand for onsite generation for data centers appears to be taking another step higher here.

Speaker #6: Seeing CapEx numbers from the hyperscalers continue to grow. And you mentioned that it's unlikely that the data center market pulls e-frac megawatts due to the design configuration differences.

Speaker #6: But is the pull from the data center market starting to improve the terms and conditions, and potentially the return profile that you're able to achieve on incremental investment in megawatts into the oil field microgrids?

Speaker #4: Yeah. I think it helps the competition certainly raises all boats, I would say. So the limited amount of megawatts is being certainly recognized by the oil field players as well.

Sam Sledge: Yeah, I think it helps the competition, certainly, you know, raises all boats, I would say. So, the limited amount of megawatts is being certainly recognized by the oilfield players as well. And they see the demand constraint or the supply constraints, both from the utility and from a behind-the-meter perspective. So we see that all as, as positive for, for what we're looking at.

Sam Sledge: Yeah, I think it helps the competition, certainly, you know, raises all boats, I would say. So, the limited amount of MW is being certainly recognized by the oilfield players as well. And they see the demand constraint or the supply constraints, both from the utility and from a behind-the-meter perspective. So we see that all as, as positive for, for what we're looking at.

Speaker #4: And they see the demand constraint or the supply constraints, both from the utility and from a behind-the-meter perspective. So, we see that all as positive for what we're looking at.

[Analyst] (Citigroup): Okay. That was it. Thank you.

Scott Gruber: Okay. That was it. Thank you.

Speaker #6: Okay. That was it. Thank you.

Speaker #4: Thanks, Scott.

Sam Sledge: Thanks, Scott.

Matt Augustine: With no further questions, that concludes our Q&A session. I'll now turn the call back over to Sam Sledge, Chief Executive Officer, for closing remarks.

Operator: With no further questions, that concludes our Q&A session. I'll now turn the call back over to Sam Sledge, Chief Executive Officer, for closing remarks.

Speaker #2: With no further questions, that concludes our Q&A session. I'm going to turn the call back over to Sam Sledge, Chief Executive Officer for closing remarks.

Speaker #4: Thanks, everybody, for joining us today. Thanks for your interest in ProPetro. We look forward to talking to you again soon.

Sam Sledge: Thanks, everybody, for joining us today. Thanks for your interest in ProPetro. We look forward to talking to you again soon.

Matt Augustine: That concludes today's conference call. You may now disconnect.

Operator: That concludes today's conference call. You may now disconnect.

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