Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - ProPetro Holding Corp. | exhibit991aaa.htm |
| 8-K - 8-K - ProPetro Holding Corp. | a8-kearningsreleaseaugust8.htm |
2017 Q2 Earnings Presentation
August 9, 2017
NYSE: PUMP
www.propetroservices.com
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Certain information included in this presentation constitutes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act. These forward-looking statements are
subject to numerous risks and uncertainties, many of which are difficult to predict, and generally
beyond our control. Actual results may differ materially from those indicated or implied by such
forward-looking statements. For information on identified risks and uncertainties that could
impact our forecasts, expectations, and results of operations, please review the risk factors and
other information disclosed from time to time in our filings with the Securities and Exchange
Commission.
This presentation references “Adjusted EBITDA,” a non-GAAP financial measures. This non-
GAAP measure is not intended to be an alternative to any measure calculated in accordance with
GAAP. We believe the presentation of Adjusted EBITDA provides useful information to investors
in assessing our financial condition and results of operations. Net income is the GAAP measure
most directly comparable to Adjusted EBITDA. Non-GAAP financial measures have important
limitations as analytical tools because they exclude some, but not all, items that affect the most
directly comparable GAAP financial measures. You should not consider Adjusted EBITDA in
isolation or as a substitute for an analysis of our results as reported under GAAP. Further,
Adjusted EBITDA may be defined differently by other companies in our industry, and our
definition of Adjusted EBITDA may not be comparable to similarly titled measures of other
companies, thereby diminishing their utility. A reconciliation of non-GAAP measures to the most
directly comparable measures calculated in accordance with GAAP, is set forth on page 12
hereto.
FORWARD-LOOKING STATEMENTS
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Permian Basin Update
2017 Q2 Operational Highlights
Fleet Expansion Initiative
2017 Q2 Financial Review
2017 Capital Spending and Related Economics
Outlook
DISCUSSION TOPICS
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Healthy Frac Demand Outpacing HHP Capacity
– Driven by Recent E&P Acquisitions and Attractive Economics
Increasing Pricing Leverage for Services
– Driven by Rig Activity and Short Supply of HHP Capacity
Mature and Evolving Infrastructure
– Driven by Historical Activity Levels and New Regional Sand Mines
*Baker Hughes Rig Data, August 4, 2017
PERMIAN MACRO
Total U.S. Onshore
Oil Directed Rig Count: 765*
Total U.S. Onshore Oil Rigs Added
Since Trough (May 2016): 449*
Permian
Basin
49%
Permian
Basin
54%
Permian
Basin
50 %
Other
50 %
Permian
Basin
54 %
Other
46 %
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Significant financial improvement vs Q1
- Revenue of $213.5 MM (24% increase)
- Net income of $4.9 MM
- Adjusted EBITDA of $30.7 MM (89% higher)
- Adjusted EBITDA margin grew to 14% from 9%
Continued frac fleet utilization of 100%
- Average deployed HHP = 462,033 or 10.9 Crews
Fleet deployment ahead of schedule
- Deployed two new build fleets in Q2
- Post Q2, deployed additional new build fleet
Tier 2 engine commitments
Stainless fluid end conversion on schedule (fully converted in Q4)
2017 Q2 HIGHLIGHTS
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Hydraulic Fracturing (~690,000 HHP by Year End)
Cementing
– Deployed first new-build unit in June
– Second new-build unit to be deployed before Q4
– Brings total capacity to 14 units
FLEET EXPANSION
Deployed Fleets HHP Cum HHP
As of 9/1/16 1-10 420,000 420,000
5/2/16 11 45,000 465,000
6/6/17 12 45,000 510,000
7/14/17 13 45,000 555,000
End of August 14 45,000 600,000
Mid Q4 15 45,000 645,000
End of Q4 16 45,000 690,000
“Due to strong Permian demand within our superior customer base, we will continue
to expand our operations while maintaining industry leading performance.”
- Dale Redman, CEO
98
218
380
420
420
690
2012A
2013A
2014A
2015A
2016A
2017E
Frac Fleet HHP ('000s)
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Permian
97%
Non-
Permian
3%
Revenue: $213.5 MM
EPS: $0.06
Adjusted EBITDA: $30.7 MM
Conservative Leverage Profile(1)
– Cash: $25.1 MM
– Total Debt: $16.5 MM
– Total Liquidity: $175.1MM (2)
(1) As of June 30, 2017.
(2) Including an undrawn revolving credit facility with a borrowing capacity of $150 MM.
2017 Q2 FINANCIAL HIGHLIGHTS
2017 Q2 Revenue Mix
Frac
90%
Non-Frac
10%
Pressure
Pumping
95%
All Other
5%
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CONSOLIDATED & SEGMENT FINANCIALS
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2017 CAP-EX SPENDING & ECONOMICS
Description FYE ‘17
6 New Frac Fleets (less one 2016 deposit) $165 - $170
Additional Tier 2 Engines $32 - $37
Non-Frac Growth $6 - $8
Maintenance CapEx $65 - $75
Total $270 - $290
(in millions)
Equipment payback goals
– 2-3 years on EBITDA basis
Low new build costs
– ~$650/HHP
Tier 2 engine commitments
– 86 additional engines
Single manufacturer efficiencies
– ~85% homogeneous
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Permian Focus
– Positioned in the low cost basin
Blue Chip Customers
– Large drilling inventories and sizeable rig programs
Superior Performance
– Consistently outperforming the competition on location
Full Calendar
– Fully booked calendar well into 2018
Strong Balance Sheet
– Minimal debt with disciplined capital allocation
No Speculative New Builds
– Strong customer commitments
High Utilization Through Cycles
– Great history of battling cyclicality
Delaware Upside
– Untapped opportunities with current customers and beyond
UNIQUELY POSITIONED FOR SUCCESS
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APPENDIX
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RECONCILIATION OF ADJUSTED EBITDA
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Corporate Headquarters:
1706 S. Midkiff, Bldg. B
Midland, TX 79701
432.688.0012
www.propetroservices.com
Investor Relations:
Sam Sledge
sam.sledge@propetroservices.com
Office Direct 432.253.5111
CONTACT