ProPetro’s $294 Million Quarter and Expanding Power Business: Is This Buy Signal Enough?
Key Points
Asset manager VR Advisory increased its PUMP stake by 2.5 million shares, a net position change of approximately $12.3 million, in the third quarter.
The transaction represented approximately 3.2% of the fund’s reportable U.S. equity assets under management (AUM).
Following the transaction, the fund reported holding nearly 3.7 million PUMP shares valued at approximately $19.3 million.
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On November 14, asset manager VR Advisory Services disclosed a purchase of 2.5 million shares of ProPetro, increasing its position by approximately $12.3 million.
What Happened
According to a filing with the U.S. Securities and Exchange Commission on November 14, VR Advisory Services increased its stake in ProPetro (NYSE:PUMP) during the third quarter. The fund bought 2.5 million additional shares, raising its position value to $19.3 million at quarter-end. ProPetro accounted for 4.7% of the fund’s $412.4 million in reportable equity assets.
What Else to Know
Top five holdings after the filing:
- NASDAQ: KSPI: $88 million (21.3% of AUM)
- NYSE: YPF: $87.6 million (21.2% of AUM)
- NASDAQ: HEPS: $42.9 million (10.4% of AUM)
- NYSE: IRS: $31.4 million (7.6% of AUM)
- NYSE: AL: $23.9 million (5.8% of AUM)
As of Wednesday, shares of ProPetro were priced at $10.38, up 22% over the past year and well outperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $10.38 |
| Market Capitalization | $1.1 billion |
| Revenue (TTM) | $1.3 billion |
| Net Income (TTM) | ($17 million) |
Company Snapshot
- ProPetro offers hydraulic fracturing, cementing, acidizing, and coiled tubing services primarily to oil and gas exploration and production companies.
- The company generates revenue by providing pressure pumping and related oilfield services to North American energy producers.
- It serves upstream oil and gas operators focused on developing North American oil and natural gas resources.
ProPetro is a leading oilfield services provider specializing in hydraulic fracturing and complementary well completion solutions. The company leverages a modern fleet and technical expertise to support efficient resource development for North American energy producers. With a strong regional presence and a focus on operational reliability, ProPetro aims to deliver cost-effective, high-performance services in a competitive market.
Foolish Take
ProPetro is in the middle of a strategic pivot, expanding beyond traditional completions into a long-duration power business (PROPWR) that’s starting to show real commercial traction. For long-term investors, a fund adding to this name now suggests conviction that the company’s cash-generating core and its emerging power platform can coexist—even in a choppy oilfield services cycle. And with shares still down sharply from multi-year peaks, the bet hinges on durability rather than momentum.
VR Advisory’s increased position comes just as ProPetro posted a resilient third quarter: Revenue fell 10% to $294 million and adjusted EBITDA declined to $35 million, but the completions business still produced $25 million in free cash flow, and the company ended the quarter with $158 million in liquidity. PROPWR was the standout. Management locked in more than 150 megawatts of contracted capacity and expects to exceed 220 MW by year-end, with ambitions to reach 1 gigawatt by 2030. That expansion is capital-intensive, but a new $350 million lease facility is designed to fund it without stretching the balance sheet. If PROPWR scales as planned and completions stay cash-positive through the cycle, ProPetro’s risk-reward profile could look meaningfully different than in past downturns.
Glossary
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Hydraulic fracturing: A process that injects fluid into underground rock to release oil or gas for extraction.
Pressure pumping: Oilfield service involving high-pressure fluid injection to enhance oil and gas recovery from wells.
Well completion: The process of making an oil or gas well ready for production after drilling is finished.
Upstream: The sector of the oil and gas industry involved in exploration and production of raw materials.
Coiled tubing services: Use of long, flexible steel pipe inserted into wells for maintenance or intervention operations.
Equity assets: Investments in company ownership, such as stocks, managed by a fund.
Reportable holdings: Investments that must be disclosed to regulators, typically due to size or regulatory requirements.
Net position change: The difference in the number or value of securities held by an investor after buying or selling.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Joint Stock Kaspi.kz. The Motley Fool has a disclosure policy.
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