Early-stage public frack firms share 2018 optimism

By North American Shale magazine staff | May 15, 2018

Two young hydraulic fracturing service companies—Liberty Resources and ProPetro Holding Corp.—are adding equipment to keep up with client demand this year. During its first quarterly investor call, Liberty CEO Chris Wright explained the companies plan for future growth.

“The frack market remains very strong,” Wright said. With more than 1,000 employees added in the past year, Liberty is still adding two new frack fleets that will be ready for its shale clients by mid- to late-2018.

Dale Redmond, CEO of ProPetro, believes there has never been a time in the Permian with so much opportunity. “We believe the market is undersupplied,” he said. “We expect pricing for our services to remain solid.” Operating mainly in the Permian, ProPetro has 20 pressure pumping fleets active with plans to add two additional cementing units.

Both Wright and Redmond believe 2018 is about well site execution, as many operators in the Permian look to perform multi-well pad work and complete zipper fracks. Wright said in addition to pressure pumping demands, water supply services, wellhead maintenance and flowback manifold services are also in great need.

Liberty is active in multiple basins, including the Bakken, Permian, Eagle Ford and DJ Basin. By the end of the year, the Denver-based company believes each of its frack fleets could generate $22 million per quarter.

With an unprecedented opportunity in shale right now, according to Redmond, efficient operations by service providers will be key, he said.

Wright agrees. “The culture of our company is to figure out how to get more done in a day,” he said.