ProPetro Holding Corp. (PUMP, Financials) announced the creation of ProPetro Energy Solutions, LLC, operating as ProPWR, a subsidiary focused on mobile natural gas-fueled power generation. The stock rose 18.7% on Tuesday.
With deployment focused on the Permian Basin, the business has ordered initially more than 110 megawatts of mobile power generating equipment. ProPetro issued a statement with this material.
ProPetro's announcement claims that ProPWR represents the first organic service line extension the firm has done in more over ten years. The project seeks to support ProPetro's FORCE electric-powered hydraulic fracturing fleets and solve growing power consumption in the Permian Basin. The CEO of ProPetro, Sam Sledge, pointed out that ProPWR is meant to improve infrastructure capacity in the area and satisfy the increasing power needs across oil and gas activities. ProPetro's disclosure made this clear.
President Travis Simmering and vice president of technical services Dave Bosco will oversee the subsidiary. According to ProPetro's statement, especially in the Permian Basin, ProPWR intends to expand its services outside of oilfield uses to encompass industrial projects and data centers.
Using a mix of funds and outside funding, ProPetro intends to spend around $122 million in ProPWR. Early 2025 is projected to provide first payments of up to $20 million; the remaining expenses will be funded as equipment delivery advances. Deliveries are set to start in middle-2025 and finish early 2026. As stated by ProPetro, the assets are expected to be used under contracts either under negotiation or planned.
Rising oil and gas activity in the Permian Basin is driving demand for mobile power production, the business argues. Existing hydraulic fracturing capability of ProPetro should complement ProPWR's products to satisfy this requirement. The corporate statement reflected this viewpoint.
