Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • AUD/USD

    0.6495
    -0.0041 (-0.63%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    82.14
    +0.79 (+0.97%)
     
  • GOLD

    2,233.20
    +20.50 (+0.93%)
     
  • Bitcoin AUD

    108,951.03
    +1,003.38 (+0.93%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

ProPetro (PUMP) Q1 Earnings Top Estimates, Revenues Fall Y/Y

ProPetro Holding Corp. PUMP reported first-quarter 2020 adjusted net income per share of 21 cents, beating the Zacks Consensus Estimate of 17 cents, attributable to lower cost of services along with better-than-expected pressure pumping revenues. Precisely, this oilfield service provider’s top line of $386.9 million surpassed the Zacks Consensus Estimate of $384 million, driven by operational efficiencies.

However, the bottom line declined from the year-ago figure of 67 cents. This underperformance is due to decline in activity levels and pricing.  

Further, ProPetro’s revenues of $395.07 million lagged the Zacks Consensus Estimate by 2.20%. Moreover, the top line fell 27.7% year over year.

Adjusted EBITDA in the first quarter amounted to $74.9 million, decreasing from $150.3 million a year ago.

ADVERTISEMENT

Pressure Pumping Division

This Midland, TX-based company through its Pressure Pumping division provides hydraulic fracturing, cementing and acidizing functions. The business accounted for 97.9% of the company's total revenues in the quarter under review. Service revenues were down more than 27% from the year-ago period to $386.9 million as the number of hydraulic fracturing fleets fell significantly.

ProPetro Holding Corp. Price, Consensus and EPS Surprise

ProPetro Holding Corp. Price, Consensus and EPS Surprise
ProPetro Holding Corp. Price, Consensus and EPS Surprise

ProPetro Holding Corp. price-consensus-eps-surprise-chart | ProPetro Holding Corp. Quote

Costs & Expenses

ProPetro reported cost of services of $300.8 million in the first quarter, down 21.1% from the year-ago quarter. General and administrative expenses came in at $24.9 million, up from $18.5 million in the year-ago period.

Balance Sheet & Capital Expenditure

As of Mar 31, ProPetro had cash and cash equivalents worth $143.7 million while its long-term debt was $110 million. The company’s total debt to total capital was 10.26%. ProPetro also has $50.4 million under its revolving credit facility. Capital expenditure for the March quarter totaled $40.09 million, down 53.45% from the level in first-quarter 2019.

Guidance

ProPetro anticipates onshore completion activity to continue at a lower rate in the second half of 2020 as the oversupply of crude oil is absorbed by increasing demand as economic activity improves.

Zacks Rank & Performance of Other Energy Players

ProPetro has a Zacks Rank #3 (Hold). Among other players in the energy sector that already reported first-quarter earnings, the bottom-line results of Cheniere Energy Inc. LNG, Murphy USA Inc. MUSA and Williams Companies Inc. WMB beat the respective Zacks Consensus Estimate by 204.3%, 4.3% and 4%. While Cheniere Energy carries the same Zacks Rank as ProPetro, Williams Companies has a Zacks Rank #2 (Buy) and Murphy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Williams Companies, Inc. The (WMB) : Free Stock Analysis Report
 
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
 
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
 
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research