Frack Fleet CEO: Decades of work remain in Permian

By Luke Geiver | April 02, 2018

A year into its existence as a publicly traded company, ProPetro Holding Corp. has secured its foothold in the Permian Basin. In 2017, the company grew employee headcount by nearly 100 percent and saw its hydraulic fracturing fleet utilization rate also near 100 percent. With almost 700,000 HHP from 16 fleets running in the Permian, Dale Redmond, CEO of ProPetro, believes there has never been a time in the Permian with so much opportunity. “We believe the market is still undersupplied,” he said. “We expect pricing for our services to remain solid.”

Despite a Q4 2017 update that was impacted by less than normal pumping days due to holidays along with a round of inclement weather, both the team and investors commenting on the company’s 2018 outlook appear to be optimistic heading into 2018. According to Redmond, ProPetro has added new customers to its existing list. Existing customers are looking to move operations into manufacturing mode by performing more pad work and zipper fracks. Customers are very focused on remaining disciplined with capital, Redmond said.

The story this year, he added, will be about wellsite execution and remaining efficient every quarter. The underperformance for Q4 2017 came in part from inefficient pumping schedules due to client needs despite the fact that number of fractures was up by 4.7 percent for the quarter.

By mid-2018, ProPetro will have 20 active fleets in the Permian. Nearly all of the company’s revenue stems from pressure pumping services. After previously deploying a new-build coiled tubing unit and a cementing unit, the company will also add two additional cementing units to its fleet.

“There are decades worth of development in the Permian,” Redmond said.