ProPetro Holding Corp. (NYSE:PUMP) Q3 2023 Earnings Conference Call November 1, 2023 9:00 AM ET

Company Participants

Matt Augustine - Director, Corporate Development & Investor Relations

Sam Sledge - Chief Executive Officer

David Schorlemer - Chief Financial Officer

Adam Munoz - President & Chief Operating Officer

Conference Call Participants

Derek Podhaizer - Barclays

Luke Lemoine - Piper Sandler

Arun Jayaram - JPMorgan Chase

Scott Gruber - Citi

John Daniel - Daniel Energy Partners

Stephen Gengaro - Stifel

Operator

Good day and welcome to the ProPetro Holding Corp. Third Quarter 2023 Conference Call. Please note, this event is being recorded.

I would now like to turn the call over to Matt Augustine, Director of Corporate Development and Investor Relations for ProPetro Holding Corp. Please go ahead.

Matt Augustine

Thank you and good morning. We appreciate your participation in today’s call. With me today is Chief Executive Officer, Sam Sledge; Chief Financial Officer, David Schorlemer; and President and Chief Operating Officer, Adam Munoz.

This morning, we released our earnings results for the third quarter of 2023. Please note that any comments we make on today’s call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act.

Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC.

Also, during today’s call we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we will hold a question-and-answer session.

With that, I would like to turn the call over to Sam.

Sam Sledge

Thanks Matt and good morning, everyone. Building on our strong momentum, ProPetro is pleased to report another solid quarter as we continued to execute on our strategy. We have been squarely focused on generating robust earnings, increasing free cash flow, and building towards enhanced shareholder returns and value distribution.

I’m glad to report that in the third quarter we achieved a decrease in our CapEx spend, coupled with continuing strong profitability and activity that resulted in much improved free cash flow.

Importantly, we expect these trends will continue as supported by three primary factors. First is our ongoing transition from legacy equipment to next generation assets. Over the past two years, we have made significant progress transitioning our hydraulic fracturing assets to more efficient and lower-emissions equipment and we expect our total investment to reach nearly $1 billion by the end of the year as we bring additional state-of-the-art technologies and services to ProPetro. With these investments largely behind us, we are poised to begin fully realizing the benefits of our fleet transformation going forward.