ProPetro to deploy e-frac fleets in Permian for ExxonMobil

ProPetro Holding Corp. will deploy up to three electric frac units to work for ExxonMobil in the Permian Basin. The deployment will be part of a three-year hydraulic fracturing services agreement, ProPetro announced on April 29.

The Midland-based completions specialist will deliver and dedicate the Force e-frac fleets coupled with its Silvertip wireline and pump-down services along with other related products—ProPetro acquired Silvertip Completion Services for $150 million in November 2022. Two Force fleets will be deployed during H1, along with wireline and pump-down services, with an option for a third Force fleet with wireline and pump-down services to commence operations in early 2025. Financial terms were not disclosed in the agreement, which includes performance incentives.

“This step is a significant moment for us, showcasing our collaboration with a leading global energy provider to deliver innovative, cost-effective and more environmentally friendly energy service solutions through our multi-year agreement,” ProPetro CEO Sam Sledge said. ProPetro has worked with ExxonMobil since 2015.

ProPetro exited 2023 with 144,000 hhp of Force equipment, nearly 10% of the company’s total hydraulic horsepower and enough for three fleets with the last equipment for the fourth fleet slated for delivery this H1. It deployed two Force fleets during 2023. ProPetro announced in 2022 it had entered into three-year leases for four Force fleets totaling 180,000 hhp but did not disclose the customer.

The company also announced in late April that its board had doubled the company’s share repurchase program to $200 million and extended it a year through May 2025. ProPetro has bought $74 million—8% of its outstanding common stock—since the program started last May. The additional $126 million remaining is equivalent to 14% of ProPetro’s current market capitalization.