ProPetro Holding Corp. reported a second-quarter 2025 adjusted loss per share of 7 cents, versus the expected profit of 3 cents. This was due to weak pricing and reduced activity, and the loss widened compared to the previous year’s 3 cents.
Revenues were $326.2 million, slightly under the $327 million estimate. The decline was linked to lower-than-expected service revenues in the Cementing segment, which decreased by 3% to $32.4 million, part of an 8.6% drop from the previous year’s $357 million.
ProPetro’s Ebitda and Long-Term Agreements
Adjusted EBITDA was $49.6 million, a 31.8% decrease from $72.7 million in the previous quarter and below expectations. ProPetro signed a 10-year agreement to deliver 80 megawatts of PROPWR service, with over half of its operating hydraulic horsepower covered by long-term contracts.
Since initiating a $200 million share repurchase program, ProPetro has repurchased 13 million shares. The programme was extended to December 2026, although no shares were repurchased this quarter.
Pressure Pumping contributed 100% of total revenues, although service revenues fell 8.6% to $326.2 million. Total costs and expenses were $329.3 million, a 7.9% decrease from the prior year, but above the projected $322.2 million.
ProPetro had $74.8 million in cash and cash equivalents and $45 million in borrowings as of June 30, 2025. Capital spending was $73 million, with $37 million already paid. Expenditure on PROPWR equipment was partly financed by a partner.
The company generated $54 million in net cash from operations and plans $270 million to $310 million in capital expenditures for 2025. Due to recent tariff-related oil price declines, ProPetro anticipates operating 10 to 11 hydraulic fracturing fleets in the third quarter.
Market Environment and Strategic Considerations
Valero Energy, Halliburton, and Equinor also reported results for the quarter, with varied performances. Valero beat expectations with adjusted earnings of $2.28 per share, while Halliburton matched expectations and Equinor missed slightly. Other players in the industry provided mixed results for the period.
Given the earnings miss and weakened guidance, we see a bearish outlook for ProPetro in the coming weeks. The company’s own projection of operating fewer hydraulic fracturing fleets in the third quarter is a direct signal of lower expected revenue. We should therefore consider positioning for a potential drop in the stock’s price, likely through put options for September or October 2025.
This weakness is happening within a challenging market environment. Recent online data shows WTI crude prices have fallen from over $85 in May to around $72 in late July 2025, largely due to renewed trade tariff announcements that have stoked fears of an economic slowdown. We can look back to the 2018-2019 period, where similar trade disputes created significant volatility and downward pressure on oil prices, as a historical guide for what might happen next.
Industry-specific statistics seem to confirm this trend, making the company’s situation appear less isolated. The U.S. frac spread count, a key indicator of completion activity, has reportedly declined by 5% over the past month, with the sharpest drops seen in the Permian Basin where ProPetro has significant operations. This suggests that pricing power for service providers will remain weak through the third quarter.
With the stock’s implied volatility likely spiking after this news, buying puts outright could be expensive. A more measured approach would be to use bear put spreads, which would lower the entry cost while still profiting from a downward or sideways move. This strategy helps mitigate the impact of high volatility premiums.
Despite the near-term gloom, we must acknowledge the company’s long-term contracts and the new PROPWR agreement. These factors provide a floor for revenue and could signal a recovery in 2026. For traders with a higher risk tolerance, the current price drop might present an opportunity to purchase long-dated call options, such as those expiring in January 2026, as a contrarian bet on a future turnaround.
We will be closely watching the company’s cash flow and capital spending levels. While generating $54 million from operations is positive, the planned capital expenditures are substantial. A prolonged period of low activity could strain their balance sheet, making the cash and debt levels a critical metric to monitor in the next earnings report.
