ProPetro Holding Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ProPetro Holding Corp. has filed its 2023 10-K, detailing its financial performance and operational activities in the oil and gas field services sector.</b>

AI Summary

ProPetro Holding Corp. (PUMP) filed a Annual Report (10-K) with the SEC on March 13, 2024. ProPetro Holding Corp. filed its 2023 Form 10-K on March 13, 2024. The filing covers the fiscal year ending December 31, 2023. The company's primary business is oil and gas field services. Key assets include buildings, vehicles, and equipment. The company has engaged in asset acquisitions, including Pioneer Pressure Pumping.

Why It Matters

For investors and stakeholders tracking ProPetro Holding Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of ProPetro's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. Understanding the details within this filing is important for stakeholders to evaluate ProPetro's position within the competitive oil and gas services market and its ability to navigate industry challenges.

Risk Assessment

Risk Level: — ProPetro Holding Corp. shows moderate risk based on this filing. The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes, impacting its revenue and profitability.

Analyst Insight

Investors should review ProPetro's detailed financial statements and risk factors in the 10-K to assess its performance and outlook in the current energy market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-13 — Filing Date (Date of submission)

Key Players & Entities

• ProPetro Holding Corp. (company) — Filer name
• PUMP (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-03-13 (date) — Filing date
• Pioneer Pressure Pumping (company) — Acquisition context
• 10-K (document) — Filing type

FAQ

Industry Context

ProPetro Holding Corp. operates in the oil and gas field services industry, providing essential services for the extraction of oil and natural gas.

Regulatory Implications

The company is subject to various regulations governing the oil and gas industry, including environmental and safety standards, which are detailed in its SEC filings.

What Investors Should Do

1. Analyze ProPetro's revenue streams and cost structure for FY 2023.
2. Review the company's asset base, including buildings, vehicles, and equipment, for any impairment charges or significant changes.
3. Assess the competitive landscape and ProPetro's market position within the oil and gas field services sector.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-13: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by ProPetro Holding Corp. to report its annual financial results and business operations.)

Oil, Gas Field Services

Services provided to support the exploration, extraction, and production of oil and natural gas. (This is the core industry in which ProPetro Holding Corp. operates, making its performance directly tied to this sector's dynamics.)

Year-Over-Year Comparison

This filing represents the annual report for fiscal year 2023, providing a year-end summary compared to previous periods.

Key Financial Figures

• $0.001 — ange on which registered Common Stock ($0.001 par value) PUMP New York Stock Exchange
• $8.24 — w York Stock Exchange Composite tape of $8.24 on that date, was approximately $ 787.8
• $106.7 m — on shares of our common stock valued at $106.7 million, $30.0 million of cash, the payof
• $30.0 million — common stock valued at $106.7 million, $30.0 million of cash, the payoff of $7.2 million of
• $7.2 million — n, $30.0 million of cash, the payoff of $7.2 million of assumed debt, and the payment of cer
• $25.4 million — s in the Delaware Basin in exchange for $25.4 million of cash . Par Five's business complemen
• $2.8 million — g operations. We received approximately $2.8 million in cash and 2.6 million common shares o
• $11.8 m — illion common shares of STEP, valued at $11.8 million, as consideration. Upon the sale
• $13.8 million — g assets, we recorded a loss on sale of $13.8 million . 1 Commodity Price and Other Econom
• $94 — crude oil price reaching approximately $94 per barrel in 2022, the highest average
• $78 — ude oil price declined to approximately $78 per barrel. We believe that the volatil

Filing Documents

• pump-20231231.htm (10-K) — 1963KB
• exhibit211listofsubsidiari.htm (EX-21.1) — 4KB
• exhibit231rsmconsent.htm (EX-23.1) — 3KB
• exhibit232deloitteconsent.htm (EX-23.2) — 2KB
• a12312023ex311ceoicfrcerti.htm (EX-31.1) — 16KB
• a12312023ex312cfoicfrcerti.htm (EX-31.2) — 16KB
• a12312023ex321ceoreportcer.htm (EX-32.1) — 4KB
• a12312023ex322cforeportcer.htm (EX-32.2) — 4KB
• clawbackpolicyexhibit971.htm (EX-97.1) — 31KB
• pump-20231231_g1.jpg (GRAPHIC) — 137KB
• 0001680247-24-000051.txt (&nbsp;) — 11002KB
• pump-20231231.xsd (EX-101.SCH) — 69KB
• pump-20231231_cal.xml (EX-101.CAL) — 112KB
• pump-20231231_def.xml (EX-101.DEF) — 411KB
• pump-20231231_lab.xml (EX-101.LAB) — 887KB
• pump-20231231_pre.xml (EX-101.PRE) — 669KB
• pump-20231231_htm.xml (XML) — 1549KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS i SUMMARY OF RISK FACTORS iii PART I

RISK FACTORS

RISK FACTORS 11 UNRESOLVED STAFF COMMENTS 30 CYBERSECURITY 30

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 31 MINE SAFETY DISCLOSURES 31 PART II MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 31

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA 33

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 34

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 47

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 48 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 87

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 87 OTHER INFORMATION 88 DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 88 PART III DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 88

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 89

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 89 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 89 PRINCIPAL ACCOUNTING FEES AND SERVICES 89 PART IV EXHIBITS AND FINANCIAL SCHEDULES 90 FORM 10-K SUMMARY 92

SIGNATURES

SIGNATURES 93 i FORWARDLOOKING STATEMENTS This Annual Report on Form 10-K (the "Annual Report") contains forwardlooking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Form 10-K are forward-looking statements. Forward-looking statements are all statements other than statements of historical fact, and given our expectations or forecasts of future events as of the effective date of this Form 10-K. Words such as "may," "could," "plan," "project," "budget," "predict," "pursue," "target," "seek," "objective," "believe," "expect," "anticipate," "intend," "estimate, " "will," "should" and similar expressions are generally used to identify forward-looking statements. These statements include, but are not limited to, statements about our business strategy, industry, future profitabilit y, future capital expenditu res, our fleet conversion strategy and our share repurchase program. Such statements are subject to risks and uncertainties. Many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those implied or projected by the forward-looking statements. Factors that could cause our actual results to differ materially from those contemplated by such forwardlooking statements include: changes in general economic and geopolitical conditions, including higher interest rates, the rate of inflation and a potential economic recession; central bank policy actions, bank failures and associated liquidity risks and other factors; the severity and duration of any world events and armed conflict, including the Russian-Ukraine war, conflicts in the Israel-Gaza region and associated repercussions to supply and demand for oil and gas and the economy generally; the actions taken by

Business

Item 1. Business. Our Company We are a leading integrated oilfield service company, located in Midland, Texas, focused on providing innovative hydraulic fracturing, wireline, and other complementary oilfield completion services to leading upstream oil and gas companies engaged in the E&P of North American oil and natural gas resources. Our operations are primarily focused in the Permian Basin, where we have cultivated longstanding customer relationships with some of the region's most active and wellcapitalized E&P companies. The Permian Basin is widely regarded as one of the most prolific oilproducing areas in the United States, and we believe we are one of the leading providers of completion services in the region. On November 1, 2022, we consummated the acquisition of all of the outstanding limited liability company interests of Silvertip Completion Services Operating, LLC (the "Silvertip Acquisition"), which provides wireline perforation and ancillary services solely in the Permian Basin in exchange for 10.1 million shares of our common stock valued at $106.7 million, $30.0 million of cash, the payoff of $7.2 million of assumed debt, and the payment of certain other closing and transaction costs. The Silvertip Acquisition positioned the Company as a more integrated and diversified completions-focused oilfield service provider headquartered in the Permian Basin. On December 1, 2023, we consummated the purchase of the assets and operations of Par Five Energy Services LLC ("Par Five"), which provides cementing services in the Delaware Basin in exchange for $25.4 million of cash . Par Five's business complements our existing cementing business and enables us to serve both the Midland and Delaware Basins of the Permian Basin. Our competitors include many large and small oilfield service companies, including Halliburton Company, Liberty Energy Inc., Patterson-UTI Energy Inc., ProFrac Holding Corp., RPC, Inc., and a number of private and locally-oriented businesses

View Full Filing

View this 10-K filing on SEC EDGAR