ProPetro Services has signed a 3-year contract to provide two electric hydraulic fracturing fleets to ExxonMobil in the Permian Basin.
The agreement, set to begin in the first half of the year, also covers wireline and pumpdown services, which are offered through ProPetro's Silvertip Completion Services subsidiary, acquired in 2022 for $148 million.
“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 multiyear agreement,” said Sam Sledge, CEO of ProPetro.
Following the agreement with ExxonMobil, ProPetro will operate 17 hydraulic fracturing fleets, including six conventional fleets and seven Tier IV dual-fuel fleets that can utilize either diesel or natural gas. ProPetro operates two other electric fleets that began their own 3-year contracts in 2023 with an undisclosed operator.
This shows that 65% of ProPetro's assets now comprise dual-fuel or electric-powered equipment, the result of a 2-year, $1-billion capital investment plan. The company asserts that that its investment in “next-generation” pumping technology has given it the most- modern fleets in the industry, with the majority of its pumps being less than 2.5 years old.
ProPetro has said in company presentations that operators are willing to pay premium prices for the newer pumping technologies to achieve fuel savings and lower emissions profiles for their wells.
The company also states that its customers could save between $10 and more than $20 million annually by leveraging the price difference between natural gas and diesel.
The introduction of the new e-fleets represents ProPetro's renewed effort to penetrate the electric-powered pumping market.
In 2019, the company said it invested $120.8 million in three electric fleets manufactured by AFGlobal and powered by GE turbines.
Despite high expectations for the low-emissions technology, the fleets were idled by 2021. The following year, ProPetro wrote down their value by $57.5 million, citing the equipment's failure to meet the manufacturer's specifications.
The company has not revealed the manufacturer of its latest electric-powered fleets, all four of which are operated under long-term lease agreements.
