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    Is ProPetro (PUMP) Using Expanded Lease Capacity to Quietly Redefine Its Capital Strategy?

    Simply Wall St·01/04/2026 23:28:19
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    • In December 2025, ProPetro Holding Corp. amended its Amended and Restated Credit Agreement to lift the basket for capital leases, purchase money debt, and similar facilities to US$425 million, expanding its available financing capacity.
    • This larger basket gives ProPetro additional flexibility to fund equipment and infrastructure, potentially supporting its transition to more advanced fleets and power services.
    • We’ll now examine how this expanded US$425 million financing capacity could reshape ProPetro’s investment narrative and future funding flexibility.

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    ProPetro Holding Investment Narrative Recap

    To own ProPetro, you need to believe its shift toward next generation electric fleets and power services can offset softness in the Permian pressure pumping market and recent net losses. The larger US$425 million financing basket modestly improves near term funding flexibility, but does not change the core risk that weak utilization and customer concentration could still pressure margins and cash generation.

    The December 2025 ProPWR microgrid contract in New Mexico, along with over 220 MW now under contract and higher 2026 capex guidance of US$250–275 million, is closely tied to this expanded financing capacity. Together, they underline how ProPetro’s investment case now leans more heavily on the timely ramp of its power and electric frac platform while managing the risk of heavy spending in a still “loose” market.

    Yet investors should also be aware of how prolonged Permian oversupply and idle legacy fleets could still weigh on returns and...

    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 $13.11 fair value, a 34% upside to its current price.

    Exploring Other Perspectives

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

    Five Simply Wall St Community valuations for ProPetro span a wide band from US$13.11 to US$130.65 per share, underscoring how far apart investors can be. Before you pick a side, remember that heavy capex for PROPWR and electric fleets in a still soft Permian market could either support a long term reset in earnings power or extend the strain on free cash flow, so it pays to consider multiple views.

    Explore 5 other fair value estimates on ProPetro Holding - why the stock might be a potential multi-bagger!

    Build Your Own ProPetro Holding Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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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.