ProPetro Holding Corp. (NYSE:PUMP) has secured a new power services contract in the Permian Basin, expanding its PROPWR business as demand for on-site energy solutions rises across West Texas and New Mexico.
PROPWR will provide turnkey power systems and distributed microgrids for a Coterra Energy Inc. (NYSE:CTRA) subsidiary, with field operations starting in early 2026.
The agreement raises PROPWR's contracted power to over 220 megawatts, with contracts averaging five years. Executives say the deal shows PROPWR's ability to execute projects rapidly while ensuring long-term revenue.
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The microgrids will be installed in New Mexico's part of the Permian Basin, a top oil-producing region. PROPWR President Travis Simmering stated that the partnership reflects the growing demand for flexible, scalable oilfield power solutions.
To support growth, PROPWR has ordered an additional 190 megawatts of generation equipment, bringing the total capacity (delivered or on order) to approximately 550 megawatts. This includes natural gas engines and modular turbines, with deliveries through 2027.
As a result, ProPetro raised its 2026 capital expenditure forecast to $250–$275 million, above earlier guidance. Management plans to fund this primarily through free cash flow from core completions, with the possibility of external financing.
CEO Sam Sledge said PROPWR has made rapid progress since launching a year ago, adding contracts, deploying assets, and strengthening supply chain relationships. He added that ProPetro's broader operations are also performing strongly, with frac fleet activity expected to remain steady into 2026.
PUMP Price Action: ProPetro Holding shares were down 2.60% at $10.85 at the time of publication on Friday, according to Benzinga Pro data.
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