ProPetro Soars: PROPWR Business Posts Meaningful Sequential Growth and Strong Guidance for 2027
ProPetro Holding Corp delivered a solid third quarter, higher revenue, net income, and adjusted EBITDA in both its completions and PROPWR business, according to the company's Q3 2026 conference call transcript. The highlights of the quarter were driven by significant progress across the PROPWR business, which generated approximately $8 million of adjusted EBITDA in the third quarter, a meaningful sequential increase.
According to Sam Sledge, Chief Executive Officer of ProPetro, "PROPWR posted a meaningful sequential step-up as we continue to advance its commercial and operational execution and activity across frac, cementing, and more." The company's fleet is now essentially sold out, positioned to recontract into a tighter, better-priced market in 2027.
The PROPWR business has made significant progress since the last update, with results and margin performance at the project level continuing to meet expectations. ProPetro expects to scale deployments through year-end, reaching between approximately 250 to 275 megawatts deployed by the end of 2026 and stair-stepping to more than 500 megawatts by early 2028.
The growth is expected to come from three sources: scaling currently contracted capacity, deploying or preparing to deploy on the Targa award, which is scheduled to be fully deployed by early 2028, and beginning to scale one or more additional data center projects over time. Looking ahead to 2027, much of ProPetro's work will be preparing for larger infrastructure-scale projects, including the Targa award and potential additional data center awards.
"As a result, we expect 2027 earnings to be weighted towards the latter part of the year," said Sledge. "Projects of larger scale require significant lead time, and certain costs, including personnel, site preparation, mobilization to build ahead of these deployments for the corresponding revenue and earnings contributions." ProPetro is emphasizing disciplined execution and actively de-risking these larger deployments.
The company's recently announced agreement with Targa for approximately 230 megawatts brings its total capacity committed under contract to approximately 510 megawatts. This award represents meaningful progress in ProPetro's commercial efforts, demonstrating the broad power demand across end markets, including oil and gas, upstream, and industrial.
While the cost of rebuilding completions capacity continued to weigh on margins, ProPetro's fleet is now essentially sold out, positioned to recontract into a tighter, better-priced market in 2027. The company remains confident in its PROPWR guidance and long-term earnings and return profile of the business.
