ProPetro Energy Solutions secures $122m investment for mobile power expansion

ProPetro Holding Corporation, a prominent player in oilfield services, has announced a strategic $122 million growth capital investment to expand into mobile power generation. The Midland, Texas-based company is leveraging its new subsidiary, ProPetro Energy Solutions, LLC, which will operate as ProPWR, to address growing power demands in the Permian Basin and beyond.

ProPetro’s initial order, exceeding 110 megawatts of mobile natural gas-fueled power generation equipment, is aimed at oilfield and industrial applications. The equipment, scheduled for delivery between June 2025 and March 2026, marks the company’s first organic service line launch in over a decade. ProPetro CEO Sam Sledge emphasized that this move underscores the company’s commitment to innovation and its entrepreneurial roots.

Diversifying Power Solutions Across Industries

The company’s new service line, ProPWR, aims to create a diverse portfolio of mobile power generation assets. It will initially target oilfield applications, such as supporting ProPetro’s FORCE electric-powered hydraulic fracturing fleets, which currently utilize approximately 140 megawatts of mobile power capacity. However, ProPWR also plans to expand its reach into non-oil and gas markets, including industrial projects and data centers.

President of ProPWR, Travis Simmering, highlighted the significant growth in electricity demand within the Permian Basin and beyond. He noted that ProPetro is well-positioned to cater to emerging markets with its combination of innovative mobile power assets and a strong reputation for reliability.

Funding the Vision

The $122 million capital investment will be funded through a mix of cash and external financing. Early 2025 will see up to $20 million in cash payments, with additional costs covered through progress payments tied to equipment delivery schedules. ProPetro expects the assets to be deployed promptly after delivery, beginning mid-2025 and extending into early 2026.

This strategic expansion positions ProPetro to capitalize on rising demand for mobile power solutions. The company aims to go beyond the initial 110 megawatts of capacity, fostering growth opportunities in both oilfield and non-oilfield markets.

Industry Expertise Driving Success

ProPetro has assembled a leadership team comprising seasoned industry veterans, including Travis Simmering as President of ProPWR and Dave Bosco as Vice President of Technical Services. This team is focused on operational excellence and commercial innovation, ensuring ProPWR achieves its goal of becoming a leading mobile power services provider.

Investor Optimism

ProPetro’s announcement has resonated positively with investors, boosting its share price by 18% to $9.30 following the news. This surge comes after the company hit its 52-week low of $6.54 on November 1, showcasing renewed confidence in its strategic direction. Over the past 12 months, ProPetro shares have risen by 11%, reflecting steady growth amid market challenges.

The Future of Mobile Power

As ProPetro continues to innovate, the company’s strategic focus on mobile power generation demonstrates a shift towards sustainable, flexible energy solutions. By aligning its investments with market demands, ProPetro aims to strengthen its position not only in the Permian Basin but across a broader industrial landscape.