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    Why ProPetro (PUMP) Is Down 6.1% After PROPWR’s New Permian Microgrid Deal And Capex Hike

    Simply Wall St·12/13/2025 15:38:42
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    • ProPetro Holding Corp. recently announced that its PROPWR division signed a contract with a Coterra Energy subsidiary to develop and install distributed microgrids across the New Mexico Permian Basin, lifting committed capacity to over 220 megawatts and prompting higher 2026 capital expenditure guidance of US$250 million to US$275 million.
    • This move accelerates PROPWR’s push toward a one-gigawatt portfolio by 2030 and underscores a shift toward longer-term, power-focused contracts that could reshape ProPetro’s revenue mix.
    • We’ll now explore how this sizeable microgrid contract and PROPWR’s higher capital spending plans may alter ProPetro’s existing investment narrative.

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    ProPetro Holding Investment Narrative Recap

    To own ProPetro, you need to believe its shift from a pressured completions market toward contracted power solutions can steadily rebalance the business. The Coterra microgrid deal strengthens PROPWR’s visibility and may offset some pressure from weak fleet utilization, but it also raises 2026 capital spending, sharpening execution and contract timing risk in the near term.

    The most relevant recent development alongside this microgrid win is ProPetro’s letter of intent for a US$350 million lease finance facility with an investment grade partner. That potential funding source, if finalized, could help support PROPWR’s higher capital needs without fully relying on internal cash generation, which matters as the company invests heavily ahead of expected contract cash flows.

    Yet while PROPWR’s growth story is appealing, investors should be aware that...

    Read the full narrative on ProPetro Holding (it's free!)

    ProPetro Holding's narrative projects $1.4 billion revenue and $98.6 million earnings by 2028.

    Uncover how ProPetro Holding's forecasts yield a $12.11 fair value, a 18% upside to its current price.

    Exploring Other Perspectives

    PUMP 1-Year Stock Price Chart
    PUMP 1-Year Stock Price Chart

    Six fair value estimates from the Simply Wall St Community span roughly US$10 to US$132 per share, showing how differently investors can view ProPetro. Against that wide range, the capital intensive roll out of PROPWR microgrids and higher 2026 spending plans highlight why you may want to weigh both upside potential and the risk of cash flow strain before forming your own view.

    Explore 6 other fair value estimates on ProPetro Holding - why the stock might be worth just $9.99!

    Build Your Own ProPetro Holding Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.