ProPetro Secures Deal for Its First Electric-Powered Frac Fleet
ProPetro will provide committed services for a 3-year period to an undisclosed Permian Basin operator.
Oilfield services company ProPetro Holding Corp. secured a deal for use of its first electric-powered hydraulic fracturing fleet (e-fleet) by an undisclosed Permian Basin operator.
The Midland-based company will provide committed services for a 3-year period following the delivery of the e-fleet.
The contracted equipment will primarily support simul-frac operations and will initially use its Tier IV DGB dual fuel equipment, with operations transitioning to the e-fleet after delivery in the third quarter of 2023, according to the company.
Sam Sledge, ProPetro CEO, said that with the agreement the company has entered the next phase of its fleet transition and marks a turning point.
“By transitioning our fleet to more electric-powered equipment while doing so through a capital-light and unique lease agreement with our equipment manufacturer, we are setting ProPetro on a path for enhanced competitiveness, lower operating costs, and therefore a more sustainable and durable earnings and cash flow profile, for the benefit of our stakeholders and shareholders alike,” he said.
The company also ordered two additional e-fleets, with expected delivery in the fourth quarter of 2023, bringing the total of four e-fleets to ProPetro’s hydraulic fracturing equipment offerings. The company placed its first order of e-fleets in August 2022 which will be acquired under a long-term lease agreement.
Sledge said that the company will continue to equip its team with leading-edge technologies in a disciplined manner as the company begins to pivot investment away from conventional diesel equipment and toward a more relevant natural gas-burning offering.
“We will do this while remaining dedicated to a disciplined deployment of assets into the market where new electric fleets likely become replacements of legacy diesel-burning fleets,” he said.