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ProPetro Holding Corp’s PUMP power solutions division, PROPWR, has taken a major step forward with signing its first-ever contract, committing to deliver 80 megawatts (MW) of power capacity over a 10-year period. This milestone represents the launch of a new era in distributed power for the oilfield services sector and aligns with PROPWR’s mission to “Rethink The Grid.”
Partnering with a leading Permian-focused exploration and production operator, PROPWR will begin deploying assets in the third quarter of 2025, continuing into 2026. The project involves delivering turnkey power to a distributed microgrid using in-field gas where traditional utility infrastructure is unavailable. With a mix of natural gas reciprocating engines and gas turbines, the installation promises reliable, low-emission power to support ongoing production operations.
A Strategic Win in a Changing Energy Landscape
The agreement not only secures stable, long-term earnings for PROPWR but also underscores the demand for flexible and resilient energy infrastructure in remote oilfield locations. Beyond power delivery, PROPWR will handle all on-site operations, maintenance, monitoring and guarantee power availability — all backed by take-or-pay obligations from the customer.
For ProPetro, this contract reflects its evolving role in delivering innovative solutions to the energy sector. Given the uncertain oil and gas environment, PROPWR puts the company in a strong position to serve its customers with more reliable, lower-cost and lower-emission power, preparing ProPetro for a brighter future.
Momentum and Market Confidence Building
The demand for PROPWR’s services is exceeding expectations. The company, in its first-quarter earnings call, reported that it has already signed a letter of intent with a second customer and is actively negotiating more long-term agreements. These new deals are expected to further solidify PROPWR’s market presence and drive meaningful growth across ProPetro’s broader portfolio.
Given the expected bright future of the PROPWR business, ProPetro plans to allocate $170 million and $60 million in 2025 and 2026, respectively, in capital spending of its PROPWR division to support current equipment orders.
PUMP’s Zacks Rank and Key Picks
Midland, TX-based ProPetro Holding is an oilfield services provider operating primarily in the Permian Basin, spread over West Texas and New Mexico. Currently, PUMP has a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at some top-ranked stocks like Prairie Operating Co. PROP, Global Partners LP GLP and RPC, Inc. RES.While Prairie Operating and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.