ProPetro continues expansion of electric frac fleets in Permian

By Luke Geiver | July 02, 2019

ProPetro Holding Corp., a Midland, Texas-based pressure pumping and energy services firm that has created an electrically-powered hydraulic fracturing fleet, continues to garner interest in its next generation oilfield technology.

The company announced this month that talks with two major clients, XTO Energy Inc. and Diamondback Energy, two of the largest Permian shale operators, have progressed and could lead to future deployment of ProPetro technology.

According to the company, XTO and Diamondback have indicated that they intend to be some of the first to deploy the DuraStim electric-powered fracturing fleet technology in the Permian.

AFGlobal will deploy up to three fleets provided from ProPetro, based on a revised agreement with the company. ProPetro expects the first three fully deployed DuraStim fleets to cost an aggregate of approximately $180 million (including auxiliary and mixing equipment and power generators), of which approximately $97 million has been spent to date and the remaining approximately $83 million is expected to be spent during the remainder of 2019. ProPetro currently expects that any option fleets it acquires will have a comparable aggregate purchase price, subject to adjustment for increases in AFGlobal’s major component costs, any design modifications and other market factors.

Dale Redman, ProPetro CEO, commented, “We are excited that XTO Energy and Diamondback Energy are positioned to be first movers in deploying this transformational technology in the Permian Basin, and we are confident that our long-term relationship with AFGlobal and BHGE will allow us to continue to meet our customers’ evolving needs. We believe the investments we are making, coupled with our customer-centric business model and industry leading growth and utilization, will continue to strengthen our earnings power over time and drive value for our shareholders.”

ProPetro also announced this month a deal with Baker Huges, a GE company, to purchase two gas turbines to power the equipment. The turbines can generate 30 megawatts of power each.