Jul. 29 at 11:30 AM
$PUMP ProPetro Holding sees FY26 capex
$525M-
$595M
The Company anticipates full-year 2026 capital expenditures incurred to be between
$525 million and
$595 million, down from the
$540 million to
$610 million range highlighted in the Company's first quarter earnings report. Of this, the completions business is expected to account for approximately
$125 million to
$145 million, down from the prior
$140 million to
$160 million range. The reduction in expected completions capital expenditures is primarily attributable to the timing of the Company's planned FORCE electric fleet buyouts. Prior guidance contemplated at least two fleet buyouts during 2026; the Company now expects to complete its first planned buyout this year, at a cost of between
$15 million and
$20 million, with the second shifting into early 2027. This timing change does not alter the Company's long-term capital allocation strategy or its intent to ultimately purchase all five FORCE electric fleets.
Also, as a reminder, the Completions business guidance range includes capital reserved for refurbishing a portion of the existing Tier IV DGB fleet, investments in fleet automation technology, as well as measured investments in direct drive gas frac units. The Company continues to see strong customer demand for its next-generation gas-burning fleet portfolio and believes these investments further strengthen its long-term competitive position. Additionally, the Company anticipates incurring capital expenditures of approximately
$400 million to
$450 million for its PROPWR business in 2026, consistent with prior guidance. This guidance includes equipment deliveries as well as down payments for equipment associated with the Company's strategic framework agreement with Caterpillar.
Notably, the Company's previous guidance of approximately
$1.4 million to
$1.5 million per megawatt inclusive of balance of plant remains unchanged. While these PROPWR capital expenditure estimates reflect the total cost of the equipment, they do not reflect the impact of financing arrangements, which have and are expected to continue reducing the near-term actual cash outflows required from the Company. The Company currently expects to activate its thirteenth active frac fleet later this quarter, reflecting increasing customer demand and improving fundamentals across the Permian completions market. Pertaining to PROPWR, the Company's primary focus for the remainder of 2026 continues to be the successful deployment and scaling of PROPWR assets across its contracted customer base. By emphasizing disciplined execution and actively de-risking deployments during this period, the Company is positioning PROPWR for long-term growth. This strategic approach is expected to establish a strong operational foundation, enabling PROPWR to begin delivering positive and increasingly meaningful earnings in the second half of 2026 and into 2027.
