BUZZ-ProPetro plunges as it scales back frac activity amid market slowdown
ProPetro's shares fell 17.2% to $5.31 in premarket trading as the company scales back its frac activity due to a slowdown in the energy market. CEO Sam Sledge noted challenges in the completions market, with Permian frac fleets expected to decrease from 90-100 to 70. The company plans to operate 10-11 active fleets in Q3, down from 13-14 in Q2, amid declining oil prices. ProPetro reported a Q2 loss of $7.2 million, worsening from a $3.7 million loss last year, and its stock is down 32% year-to-date.
Shares of oilfield services provider ProPetro (PUMP.N) fall 17.2% at $5.31 in premarket trading
PUMP CEO Sam Sledge says both the broader energy markets and, more specifically, the completions market in the Permian basin, continue to face challenges
CEO says Permian frac fleets are likely to drop to 70, compared to almost 90-100 operating fleets at the start of the year
PUMP will operate on 10-11 active in Q3 compared to 13-14 in Q2, owing to decline in oil prices influenced by tariffs and OPEC+ production increase
“While we’ve had opportunities to keep virtually all of our fleets active, we have proactively chosen to idle certain fleets, rather than run our fleets at sub-economic levels, preserving them for more favorable market conditions,” says Sledge
PUMP posts a Q2 loss of $7.2 mln compared to last year’s loss of $3.7 mln
Up to last close, stock down 32% YTD
