Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

Key Takeaways PUMP beat Q4 earnings and revenue estimates despite a 9.6% year-over-year sales decline.PROPWR capacity orders rose to 550 MW, targeting about 1 GW by 2030 with new financing in place.2026 capex set at $390M-$435M as winter weather weighs on Q1 profitability.ProPetro Holding Corp. (PUMP) reported a fourth-quarter 2025 adjusted profit per share of 1 cent, which beat the Zacks Consensus Estimate of a loss of 13 cents. The bottom line also improved from the year-ago loss of 1 cent per share, back ...

Industry Reliance and Risks - The company reported a significant reliance on the cyclical oil and natural gas industry, with capital spending from E&P companies being a critical factor for revenue and profitability [20]. - The majority of operations are concentrated in the Permian Basin, exposing the company to geographic-specific risks [20]. - The company is facing risks from geopolitical events, including the Russian-Ukraine war and conflicts in the Middle East, which could impact oil and gas supply and demand [12]. - The company relies on a few large customers, which poses a risk to revenue stability and operating results [20]. Technological Development - The company is implementing new Tier IV Dynamic Gas Blending dual-fuel and FORCE electric-powered hydraulic fracturing equipment to enhance technological capabilities [15]. - The company is developing new technologies, including Tier IV Dynamic Gas Blending dual-fuel and FORCE electric-powered hydraulic fracturing equipment, to meet customer needs [15]. - The company is committed to adapting its power generation technologies to meet increasing customer demands and power loads [23]. Competition and Market Dynamics - The company faces competition in the mobile and modular power industry, which is expected to evolve significantly [20]. - The company anticipates significant competition in the evolving mobile and modular power industry, which may impact market share [20]. Operational Challenges - The company anticipates potential challenges in attracting and retaining skilled employees, which could impact capacity and profitability [23]. - Supply chain disruptions and increased costs for specialized equipment and raw materials could adversely impact service delivery [20]. - The company is exposed to supply chain disruptions and cost increases that could adversely affect service delivery and profitability [20]. Regulatory Environment - The company is subject to various regulatory risks, including those related to hydraulic fracturing and environmental laws, which may affect operational costs and restrictions [23]. - The company is subject to regulatory changes that could limit access to federal and state lands for oil and gas development, affecting service demand [15]. Financial Strategies - The company has a share repurchase program in place, with projected timing and purchase price yet to be determined [15]. - The company is implementing a share repurchase program, with projected timing and purchase price details to be disclosed later [15]. Strategic Focus - The company is focusing on its new power generation business line, which is expected to face significant risks and uncertainties during establishment [20]. - The company is focused on its fleet conversion strategy and power generation business development, which are expected to enhance future profitability [12]. Cybersecurity Risks - The company is exposed to cybersecurity risks that could lead to operational disruptions and financial loss [20].

ProPetro (NYSE:PUMP) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Company ParticipantsArun Jayaram - Executive DirectorCaleb Weatherl - CFOEddie Kim - VP of Equity ResearchJeff LeBlanc - Director in Equity ResearchJohn Daniel - Founder and PresidentMatt Augustine - VP of Finance and Investor RelationsSam Sledge - CEOStephen Gengaro - Managing DirectorTravis Simmering - PresidentConference Call ParticipantsDerek Podhaizer - Director and Senior Research AnalystScott Gruber - Managing Director and Senio ...

Financial Data and Key Metrics Changes - In Q4 2025, ProPetro generated total revenue of $290 million, a decrease of 1% compared to Q3 2025. Net income was $1 million, or $0.01 per diluted share, compared to a net loss of $2 million, or $0.02 loss per diluted share in Q3 2025 [17] - Adjusted EBITDA totaled $51 million, representing 18% of revenue, and increased by 45% compared to Q3 2025 [18] - Free cash flow for the completions business was $98 million, supported by strong EBITDA performance and reduced completion CapEx [18] Business Line Data and Key Metrics Changes - The legacy completions business continued to generate sustainable free cash flow, demonstrating resilience in a challenging market environment [5][19] - Capital expenditures incurred during Q4 2025 were $71 million, with $59 million supporting ProPower orders [19] Market Data and Key Metrics Changes - The Permian Basin is currently operating with approximately 70 full-time frac fleets, down from 90-100 fleets a year ago, indicating a significant slowdown in completions activity [4][14] - The company expects market challenges to persist into 2026, but anticipates that attrition among smaller competitors will provide structural benefits for well-capitalized operators like ProPetro [6] Company Strategy and Development Direction - ProPetro plans to allocate capital to its FORCE electric fleet, which has strong demand and commercial leverage, while also refurbishing a portion of its existing Tier 4 DGB fleet and investing in fleet automation technology [7][22] - The company aims to deliver at least 750 MW by year-end 2028 and 1 GW or more by year-end 2030 for its ProPower business, capitalizing on robust customer demand [10][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the broader energy markets and the cautious operator mindset due to tariff impacts and OPEC+ production increases affecting commodity prices [4] - The company remains disciplined in capital deployment, investing only when there is clear visibility to high returns and strong customer endorsement [8][25] Other Important Information - ProPetro's recent equity offering provided approximately $163 million in cash, strengthening the company's balance sheet and reducing reliance on debt [11][12] - Total liquidity at the end of Q4 2025 was $205 million, which increased to $325 million by January 31, 2026, primarily due to the equity offering [24] Q&A Session Summary Question: Can you expand on the contracting cadence for ProPower in 2026? - Management indicated a portfolio approach and expects to evolve the mix towards non-oil and gas projects over time, with confidence in securing additional data center contracts [32][34] Question: Does the industry have enough frac equipment to return to previous levels? - Management expressed skepticism about the ability to return to 90-100 fleets, citing attrition among smaller players and the potential for structural tightening in the market [35][36] Question: How will the mix between finance CapEx and cash CapEx change in 2026? - Management stated that they have various options for funding CapEx, prioritizing cash on the balance sheet and organic cash generation [41] Question: What is the strategy for upgrading the Tier 4 DGB fleet? - Management discussed gradual additions of direct drive units and maintaining a mix of electric and diesel offerings to meet customer needs [43][46] Question: How is the demand for power evolving in the oil patch versus data centers? - Management noted that both sectors are growing, with data center demand being particularly high, and emphasized the importance of diversifying into both markets [52][54] Question: Are there concerns about the cost of power for e-fracs? - Management indicated that the e-frac market has stabilized, and they do not foresee significant concerns regarding power costs at this time [52] Question: How is the demand for on-site generation for data centers affecting returns on investment? - Management acknowledged that increased demand for data centers is positively impacting competition and terms in the oilfield market [81]

Financial Data and Key Metrics Changes - In Q4 2025, ProPetro generated total revenue of $290 million, a decrease of 1% compared to Q3 2025. Net income was $1 million, or $0.01 per diluted share, compared to a net loss of $2 million, or $0.02 loss per diluted share in Q3 2025 [18] - Adjusted EBITDA totaled $51 million, representing 18% of revenue, and increased by 45% compared to Q3 2025 [19] - Free cash flow for the completions business was $98 million, supported by strong EBITDA performance and reduced completion CapEx [19] Business Line Data and Key Metrics Changes - The legacy completions business continued to generate sustainable free cash flow, demonstrating resilience in a challenging market environment [20] - Capital expenditures incurred during Q4 2025 were $71 million, with $59 million supporting ProPower orders [20] Market Data and Key Metrics Changes - The Permian Basin is currently operating with approximately 70 full-time frac fleets, down from 90-100 fleets a year ago, indicating a significant slowdown in completions activity [4] - The company expects market challenges to persist into 2026, but anticipates attrition among smaller competitors unable to sustain prolonged market weakness [6] Company Strategy and Development Direction - ProPetro plans to allocate capital to its FORCE electric fleet, which has strong demand and commercial leverage, while also refurbishing a portion of its existing Tier IV DGB fleet and investing in fleet automation technology [7][23] - The company aims to deliver at least 750 megawatts by year-end 2028 and 1 gigawatt or more by year-end 2030 for its ProPower business, capitalizing on growing demand for reliable, low-emission power generation solutions [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the broader energy markets and the cautious operator mindset due to tariff impacts and OPEC+ production increases affecting commodity prices [4] - The company remains confident in its ability to adapt quickly, rationalize costs, and protect its asset base, which supports margins and competitiveness in the market [5] Other Important Information - ProPetro's strong balance sheet is bolstered by a recent equity offering that provided approximately $163 million in cash, reducing reliance on debt [12] - Total liquidity at the end of Q4 2025 was $205 million, which increased to $325 million by January 31, 2026, primarily due to the equity offering [25][26] Q&A Session Summary Question: Can you expand on the contracting cadence for ProPower in 2026? - Management indicated a portfolio approach and expects a larger share of work to evolve towards non-oil and gas projects, which are often larger and have more favorable time horizons [36] Question: Does the industry have enough frac equipment to return to previous levels? - Management believes it would be a major stretch for the existing pressure pumping market to return to 90-100 fleets, indicating potential tightness in the frac market if demand increases [40][41] Question: How should we think about the mix between financed CapEx and cash CapEx for 2026? - Management stated they have various options for funding their CapEx program, prioritizing cash on the balance sheet and organic cash generation, while also utilizing flexible debt facilities as needed [46] Question: What is the current status of Tier Two fleets and the strategy for direct drive units? - Management confirmed that 2 or 3 Tier Two fleets are currently working and indicated a gradual addition of direct drive units based on customer interest [78][80] Question: How is the demand for power in the oil patch compared to data centers? - Management noted that both markets are growing, with data center demand being much higher, and expressed confidence in participating in both sectors [58]

ProPetro Holding (PUMP) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.13 per share. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +107.84%. A quarter ago, it was expected that this oilfield services company would post a loss of $0.11 per share when it actually produced a loss of $0.02, delivering a surprise of +81.82%.Over the last f ...

INVESTOR PRESENTATION February 2026 Forward-Looking Statements Except for historical information contained herein, the statements and information in this presentation, including the oral statements made in connection herewith, are forward- looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words "may," "could," "c ...

Core Insights - ProPetro Holding Corp. (PUMP) is expected to report a fourth-quarter 2025 loss of 13 cents per share with revenues of $283.28 million, indicating a challenging performance outlook [1][8] Financial Performance - In the last reported quarter, PUMP recorded an adjusted loss per share of 2 cents, which was better than the Zacks Consensus Estimate of a loss of 11 cents, attributed to a 44.4% year-over-year decrease in costs and expenses [2] - Revenues for the last quarter were $294 million, surpassing the consensus estimate of $258 million [2] - The Zacks Consensus Estimate for fourth-quarter 2025 earnings shows a significant year-over-year decrease of 1,200%, while revenues are projected to decline by 11.63% compared to the previous year [3] Revenue and Cost Projections - PUMP's total revenues are anticipated to decline, with hydraulic fracturing services expected to generate $201.1 million, down from $236.9 million in the same quarter last year [4] - Wireline revenues are projected to decrease by 3.8%, and cementing revenues are expected to fall by 5.2% year-over-year [4] - Total costs and expenses for the fourth quarter are expected to be $302.4 million, reflecting a 10.8% decrease from the prior year, driven by reductions in general and administrative expenses (down 18.4%) and depreciation and amortization (down 19.7%) [5][8] Earnings Prediction - The Zacks model does not predict an earnings beat for PUMP, as the Earnings ESP is -5.88%, indicating a lack of favorable conditions for a positive earnings surprise [6]

Group 1 - Stock Trend Capital Inc. has announced a symbol change from PUMP to STCQ [1][2][3] - The new trading symbol will take effect on February 2, 2026 [1][2][3] - All open orders will be cancelled at the end of business on January 30, 2026, and dealers are reminded to re-enter their orders [1][2]