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    Does New Targa Power Contracts Change The Bull Case For ProPetro Holding (PUMP)?

    Simply Wall St·10/02/2026 16:23:47
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    • ProPetro Holding announced that its PROPWR unit has signed new long-term contracts with a Targa Resources subsidiary for about 230 MW of power generation, taking total contracted capacity to roughly 510 MW and supporting Targa’s natural gas processing build out in the Permian Basin.
    • The recontracting frees up power capacity for potential data center customers from 2027, while a leadership change in the accounting function puts more responsibility on the existing CFO during the transition.
    • ProPetro Holding's investment narrative may be influenced by PROPWR's expanded 510 MW long term power commitments.

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    ProPetro Holding Investment Narrative Recap

    To own ProPetro Holding, you need to be comfortable with a completion services business that is heavily tied to Permian activity while also leaning into power generation through PROPWR. The big near term swing factor still looks like fleet utilization and pricing in a market that analysts describe as loose, which can make earnings choppy.

    The fresh Targa contracts increase PROPWR’s contracted capacity to about 510 MW and add long dated visibility, but they do not change that core pressure pumping exposure. The main risk remains weak demand or customer pullbacks in the Permian, which can leave legacy diesel and even some dual fuel assets sitting idle and weighing on returns.

    The most relevant update is the September 22 announcement that PROPWR has agreed to supply roughly 230 MW to a Targa Resources subsidiary, lifting its total contracted capacity to about 510 MW. That sits alongside earlier goals to fully deploy 220 MW by the end of 2025 and supports Targa’s build out in Permian gas processing.

    For investors, the focus is on how this affects catalysts and execution. PROPWR now has more contracted scale, which can help offset volatility in traditional fracturing services, and it frees some capacity for potential data center demand from 2027. At the same time, the business still needs to manage heavy capex, deployment timing and a temporary gap in the accounting seat as the CFO takes on interim responsibility.

    ProPetro Holding's narrative projects US$1.7b revenue and US$347.6m earnings by 2029. This assumes revenue expands at 14.4% per year and earnings rise by about US$361m from a loss of US$13.4m today.

    Uncover why ProPetro Holding's fair value indicates a 91% potential upside to its current price, which could narrow quickly.

    NYSE:PUMP 1-Year Stock Price Chart
    NYSE:PUMP 1-Year Stock Price Chart

    Exploring Other Perspectives

    Some of the most optimistic analysts already saw PROPWR as the sleeper catalyst for ProPetro Holding, with bullish models pointing to roughly US$1.8b revenue and US$513.7m earnings by 2029. You can now ask whether these power contracts make that upbeat view more plausible or still too generous, and explore both sides.

    Explore 2 other ProPetro Holding fair value estimates, including one that suggests as much as 91% upside from the current price.

    Reach Your Own Conclusion

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    Looking For More Investment Ideas Beyond ProPetro Holding?

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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.