ProPetro Holding Corp. executed a long-term lease agreement on Aug. 22 for two electric frac fleets with expected delivery in 2023.
The Midland, Texas-based service provider executed the order to acquire the two electric frac fleets from a “leading manufacturer” as part of its fleet transition strategy initiated last year, according to ProPetro CEO Sam Sledge.
“These new electric fleets utilize conventional pumping equipment and proven technologies that are well-known across our industry,” Sledge commented in a company release.
The transition to electric will help advance ProPetro customers’ efforts to reduce costs and greenhouse-gas emissions, while also enhancing ProPetro’s competitiveness and free cash flow profile, he said.
ProPetro CFO David Schorlemer also noted in the release that the long-term lease agreement includes an option for ProPetro to purchase each electric frac fleet at the end of its respective lease term.
“As we look ahead to fiscal year 2023 where we will couple these next-generation assets with our first-class services, we expect significant free cash flow supported by a decreased capital expenditure plan and at least nine natural gas burning lower-emissions fleets operating in the second half of next year,” Schorlemer said.
ProPetro is in discussions with several customers regarding multiyear projects that will use the electric fleets starting as early as third-quarter 2023, Sledge added.
“As demand for electric solutions continues to gain momentum, ProPetro is playing a significant role in bringing new technologies and more efficient, environmentally responsible solutions to the Permian Basin,” he said.
ProPetro is a Midland, Texas-based oilfield services company providing pressure pumping and other complementary services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. The company is 100% focused in the Permian Basin, according to its latest investor presentation.