ProPetro Holding Corp.PUMP
ProPetro Holding Corp. Segments Disclosure
REPORTABLE SEGMENT INFORMATION
The Company currently has four operating segments for which discrete financial information is readily available: Hydraulic Fracturing (inclusive of acidizing and wet sand solutions), Wireline, Cementing (met the reporting threshold in fourth quarter of fiscal year 2024) and Power Generation (met the reporting threshold in third quarter of fiscal year 2025). These operating segments represent how the Company’s Chief Operating Decision Maker (the “CODM”) evaluates performance and allocates resources. Our CODM is a group comprised of our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Chief Commercial Officer.
On November 1, 2024, the Company sold its cementing business located in Vernal, Utah, to a business owned by a former employee as part of a strategic repositioning. We recorded a gain on disposal of $8.2 million related to the sale of the business within loss on disposal of assets and business within our consolidated statement of operations for the year ended December 31, 2024. The sale of these assets did not qualify for presentation and disclosure as a discontinued operation, and accordingly, we have recorded the resulting gain from the sale as part of our gain on disposal of assets and business in our consolidated statement of operations. The former employee was part of the Company’s cementing operations until November 1, 2024 and is no longer affiliated with the Company.
Our Hydraulic Fracturing, Wireline, Cementing and Power Generation operating segments meet the criteria of a reportable segment. Prior to the third quarter of fiscal year 2025, our Power Generation segment did not meet the quantitative thresholds for a reportable segment and prior to the fourth quarter of fiscal year 2024, our Cementing segment did not meet the quantitative thresholds for a reportable segment. Accordingly, they were shown in the “All Other” category. Effective as of the third quarter of fiscal year 2025 and the fourth quarter of fiscal year 2024, Power Generation and Cementing, respectively, are shown as reportable segments since they meet the criteria of a reportable segment per FASB ASC Topic 280, Segment Reporting. Additionally, our corporate administrative activities do not involve business activities from which they may earn revenues. As a result, corporate administrative expenses and intersegment revenue have been included under “Reconciling Items.” Prior period segment information has been revised to conform to our current presentation.
Our Hydraulic Fracturing operating segment revenue approximated 73.2%, 75.6% and 78.5% of our revenue for the years ended December 31, 2025, 2024, and 2023, respectively. Revenue from our Wireline operating segment approximated 16.5%, 14.1% and 14.1% of our revenue for the years ended December 31, 2025, 2024 and 2023, respectively. Our Cementing operating segment revenue approximated 10.3%, 10.3% and 7.4% of our revenue for the years ended December 31, 2025, 2024 and 2023, respectively. Revenue from our Power Generation services operating segment, which began revenue-generating activities during the third quarter of fiscal year 2025, approximated 0% for the year ended December 31, 2025. Our operating
segments are subject to inherent uncertainties which may influence our prospective activities. Intersegment revenues are not material and are not shown separately in the tables below.
The Company manages and assesses the performance of its reportable segments by their adjusted EBITDA (earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense, business acquisition contingent consideration adjustments, other income or expense, gain or loss on disposal of assets and businesses and other unusual or nonrecurring expenses or income such as impairment charges, retention bonuses, severance, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements). As part of the CODM’s review of segment-level performance, each member of the CODM group reviews the adjusted EBITDA of the Company’s reportable segments and provides expertise and analyses from their respective areas which drive the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. Even though the CEO has the authority to override the other members for strategic or other reasons, key decisions are made jointly by the CODM group.
The following tables set forth certain financial information with respect to the Company’s reportable segments; intersegment revenues and cost of services are shown under “Reconciling Items” (in thousands):
| Hydraulic Fracturing | Wireline | Cementing | Power Generation | Reconciling Items | Total | |||||||||||||||||||||||||||||||||
| Year ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
Service revenue (1) | $ | 929,210 | $ | 209,034 | $ | 130,266 | $ | 1,538 | $ | (890) | $ | 1,269,158 | ||||||||||||||||||||||||||
| Cost of service - labor | $ | 189,602 | $ | 54,134 | $ | 29,349 | $ | 2,817 | $ | — | $ | 275,902 | ||||||||||||||||||||||||||
| Cost of service - expendables | $ | 137,925 | $ | 60,611 | $ | 62,011 | $ | 52 | $ | (857) | $ | 259,742 | ||||||||||||||||||||||||||
| Cost of service - other direct costs | $ | 375,066 | $ | 41,727 | $ | 12,028 | $ | 3,743 | $ | (33) | $ | 432,531 | ||||||||||||||||||||||||||
| General and administrative expenses excluding nonrecurring and non cash items for reportable segments | $ | 18,051 | $ | 10,999 | $ | 4,867 | $ | 6,506 | $ | — | $ | 40,423 | ||||||||||||||||||||||||||
| Adjusted EBITDA for reportable segments | $ | 208,566 | $ | 41,563 | $ | 22,011 | $ | (11,580) | $ | — | $ | 260,560 | ||||||||||||||||||||||||||
| Depreciation and amortization | $ | 143,785 | $ | 22,269 | $ | 8,098 | $ | 673 | $ | 71 | $ | 174,896 | ||||||||||||||||||||||||||
| Capital expenditures incurred | $ | 69,149 | $ | 7,922 | $ | 5,752 | $ | 198,373 | $ | — | $ | 281,196 | ||||||||||||||||||||||||||
| Goodwill | $ | 920 | $ | — | $ | — | $ | — | $ | — | $ | 920 | ||||||||||||||||||||||||||
Total assets (2) | $ | 841,180 | $ | 162,225 | $ | 69,396 | $ | 201,481 | $ | 16,608 | $ | 1,290,890 | ||||||||||||||||||||||||||
| Hydraulic Fracturing | Wireline | Cementing | Power Generation | Reconciling Items | Total | |||||||||||||||||||||||||||||||||
| Year ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Service revenue (1) | $ | 1,092,000 | $ | 203,182 | $ | 149,411 | $ | — | $ | (307) | $ | 1,444,286 | ||||||||||||||||||||||||||
| Cost of service - labor | $ | 233,156 | $ | 53,609 | $ | 35,353 | $ | (6) | $ | — | $ | 322,112 | ||||||||||||||||||||||||||
| Cost of service - expendables | $ | 149,809 | $ | 56,533 | $ | 67,986 | $ | — | $ | (307) | $ | 274,021 | ||||||||||||||||||||||||||
| Cost of service - other direct costs | $ | 417,237 | $ | 37,983 | $ | 14,151 | $ | 10 | $ | — | $ | 469,381 | ||||||||||||||||||||||||||
| General and administrative expenses excluding nonrecurring and non cash items for reportable segments | $ | 21,294 | $ | 11,200 | $ | 5,381 | $ | 366 | $ | — | $ | 38,241 | ||||||||||||||||||||||||||
| Adjusted EBITDA for reportable segments | $ | 270,505 | $ | 43,857 | $ | 26,539 | $ | (370) | $ | — | $ | 340,531 | ||||||||||||||||||||||||||
Depreciation and amortization (3) | $ | 194,557 | $ | 20,633 | $ | 8,819 | $ | — | $ | 100 | $ | 224,109 | ||||||||||||||||||||||||||
Property and equipment impairment expense (4) | $ | 188,601 | $ | — | $ | — | $ | — | $ | — | $ | 188,601 | ||||||||||||||||||||||||||
Goodwill impairment expense (5) | $ | — | $ | 23,624 | $ | — | $ | — | $ | — | $ | 23,624 | ||||||||||||||||||||||||||
| Capital expenditures incurred | $ | 116,257 | $ | 7,713 | $ | 9,376 | $ | — | $ | 42 | $ | 133,388 | ||||||||||||||||||||||||||
| Goodwill | $ | 920 | $ | — | $ | — | $ | — | $ | — | $ | 920 | ||||||||||||||||||||||||||
Total assets (2) | $ | 961,485 | $ | 156,349 | $ | 73,935 | $ | — | $ | 31,876 | $ | 1,223,645 | ||||||||||||||||||||||||||
| Hydraulic Fracturing | Wireline | Cementing | Power Generation | Reconciling Items | Total | |||||||||||||||||||||||||||||||||
| Year ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Service revenue (1) | $ | 1,280,523 | $ | 229,599 | $ | 120,277 | $ | — | $ | — | $ | 1,630,399 | ||||||||||||||||||||||||||
| Cost of service - labor | $ | 239,037 | $ | 58,212 | $ | 27,871 | $ | — | $ | — | $ | 325,120 | ||||||||||||||||||||||||||
| Cost of service - expendables | $ | 258,004 | $ | 61,883 | $ | 52,008 | $ | — | $ | — | $ | 371,895 | ||||||||||||||||||||||||||
| Cost of service - other direct costs | $ | 389,115 | $ | 35,262 | $ | 10,409 | $ | — | $ | — | $ | 434,786 | ||||||||||||||||||||||||||
| General and administrative expenses excluding nonrecurring and non cash items for reportable segments | $ | 27,559 | $ | 12,311 | $ | 5,324 | $ | — | $ | — | $ | 45,194 | ||||||||||||||||||||||||||
| Adjusted EBITDA for reportable segments | $ | 366,809 | $ | 61,930 | $ | 24,665 | $ | — | $ | — | $ | 453,404 | ||||||||||||||||||||||||||
Depreciation and amortization (3) | $ | 194,745 | $ | 18,762 | $ | 5,879 | $ | — | $ | 222 | $ | 219,608 | ||||||||||||||||||||||||||
| Capital expenditures incurred | $ | 294,377 | $ | 12,203 | $ | 3,440 | $ | — | $ | — | $ | 310,020 | ||||||||||||||||||||||||||
| Goodwill | $ | — | $ | 23,624 | $ | — | $ | — | $ | — | $ | 23,624 | ||||||||||||||||||||||||||
Total assets (2) | $ | 1,189,526 | $ | 198,957 | $ | 78,475 | $ | — | $ | 13,354 | $ | 1,480,312 | ||||||||||||||||||||||||||
____________________
(1)Revenue recognized over time under our Hydraulic Fracturing reportable segment was $921.3 million, $1,077.2 million and $1,263.7 million for the years ended December 31, 2025, 2024, and 2023, respectively. Revenue recognized at a point in time under our Hydraulic Fracturing reportable segment was $7.9 million, $14.8 million and $16.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. All revenue under our Wireline reportable segment is recognized over time. All revenue under our Cementing reportable segment is recognized at a point in time. Revenue recognized over time under our Power Generation reportable segment was $1.3 million for the year ended December 31, 2025. Revenue recognized at a point in time under our Power Generation reportable segment was $0.2 million for the year ended December 31, 2025.
(2)Total assets under “Reconciling Items” comprise of cash on hand, certain property, equipment and operating lease right-of-use assets pertaining to our corporate administrative activities.
(3)The write-offs of remaining book value of prematurely failed power ends and other components are recorded as depreciation in 2025. In order to conform to current period presentation, we have reclassified the corresponding amounts of $12.4 million and $38.7 million from loss on disposal of assets to depreciation for the years ended December 31, 2024 and 2023, respectively.
(4)Represents noncash property and equipment impairment expense on our Tier II Units. There was no property and equipment impairment expense for the years ended December 31, 2025 and 2023.
(5)Represents noncash impairment of goodwill in our Wireline operating segment. There was no goodwill impairment expense during the years ended December 31, 2025 and 2023.
A reconciliation from reportable segment level financial information to the consolidated statements of operations is provided in the table below (in thousands):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Service Revenue | ||||||||||||||||||||
| Hydraulic Fracturing | $ | 929,210 | $ | 1,092,000 | $ | 1,280,523 | ||||||||||||||
| Wireline | 209,034 | 203,182 | 229,599 | |||||||||||||||||
| Cementing | 130,266 | 149,411 | 120,277 | |||||||||||||||||
| Power Generation | 1,538 | — | — | |||||||||||||||||
| Total service revenue for reportable segments | 1,270,048 | 1,444,593 | 1,630,399 | |||||||||||||||||
| Elimination of intersegment service revenue | (890) | (307) | — | |||||||||||||||||
| Total consolidated service revenue | $ | 1,269,158 | $ | 1,444,286 | $ | 1,630,399 | ||||||||||||||
| Cost of Services | ||||||||||||||||||||
| Hydraulic Fracturing - labor | $ | 189,602 | $ | 233,156 | $ | 239,037 | ||||||||||||||
| Hydraulic Fracturing - expendables | 137,925 | 149,809 | 258,004 | |||||||||||||||||
| Hydraulic Fracturing - other direct costs | 375,066 | 417,237 | 389,115 | |||||||||||||||||
| Wireline - labor | 54,134 | 53,609 | 58,212 | |||||||||||||||||
| Wireline - expendables | 60,611 | 56,533 | 61,883 | |||||||||||||||||
| Wireline - other direct costs | 41,727 | 37,983 | 35,262 | |||||||||||||||||
| Cementing - labor | 29,349 | 35,353 | 27,871 | |||||||||||||||||
| Cementing - expendables | 62,011 | 67,986 | 52,008 | |||||||||||||||||
| Cementing - other direct costs | 12,028 | 14,151 | 10,409 | |||||||||||||||||
| Power Generation - labor | 2,817 | (6) | — | |||||||||||||||||
| Power Generation - expendables | 52 | — | — | |||||||||||||||||
| Power Generation - other direct costs | 3,743 | 10 | — | |||||||||||||||||
| Total cost of services for reportable segments | 969,065 | 1,065,821 | 1,131,801 | |||||||||||||||||
| Elimination of intersegment cost of services | (890) | (307) | — | |||||||||||||||||
| Total consolidated cost of services | $ | 968,175 | $ | 1,065,514 | $ | 1,131,801 | ||||||||||||||
| General and Administrative Expenses | ||||||||||||||||||||
| Hydraulic Fracturing | $ | 18,051 | $ | 21,294 | $ | 27,559 | ||||||||||||||
| Wireline | 10,999 | 11,200 | 12,311 | |||||||||||||||||
| Cementing | 4,867 | 5,381 | 5,324 | |||||||||||||||||
| Power Generation | 6,506 | 366 | — | |||||||||||||||||
| Total general and administrative expenses excluding nonrecurring and noncash items for reportable segments | 40,423 | 38,241 | 45,194 | |||||||||||||||||
| Unallocated corporate administrative expenses | 52,117 | 57,288 | 49,444 | |||||||||||||||||
| Stock-based compensation | 16,946 | 17,288 | 14,450 | |||||||||||||||||
| Business acquisition contingent consideration adjustments | (4,900) | (2,600) | — | |||||||||||||||||
| Other general and administrative expense | 339 | 1,782 | 2,969 | |||||||||||||||||
| Retention bonus and severance expense | 2,633 | 2,324 | 2,297 | |||||||||||||||||
| Total consolidated general and administrative expenses | $ | 107,558 | $ | 114,323 | $ | 114,354 | ||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| Hydraulic Fracturing | $ | 208,566 | $ | 270,505 | $ | 366,809 | ||||||||||||||
| Wireline | 41,563 | 43,857 | 61,930 | |||||||||||||||||
| Cementing | 22,011 | 26,539 | 24,665 | |||||||||||||||||
| Power Generation | (11,580) | (370) | — | |||||||||||||||||
| Total Adjusted EBITDA for reportable segments | 260,560 | 340,531 | 453,404 | |||||||||||||||||
| Unallocated corporate administrative expenses | (52,117) | (57,288) | (49,444) | |||||||||||||||||
Depreciation and amortization (1) | (174,896) | (224,109) | (219,608) | |||||||||||||||||
Property and equipment impairment expense (2) | — | (188,601) | — | |||||||||||||||||
Goodwill impairment expense (3) | — | (23,624) | — | |||||||||||||||||
| Interest expense | (8,238) | (7,815) | (5,308) | |||||||||||||||||
| Income tax (expense) benefit | (6,997) | 31,385 | (29,868) | |||||||||||||||||
(Loss) gain on disposal of assets and businesses, net (1) | (12,179) | 4,925 | (34,293) | |||||||||||||||||
| Stock-based compensation | (16,946) | (17,288) | (14,450) | |||||||||||||||||
| Business acquisition contingent consideration adjustments | 4,900 | 2,600 | — | |||||||||||||||||
Other income (expense), net (4) | 9,709 | 5,531 | (9,533) | |||||||||||||||||
Other general and administrative expense (5) | (339) | (1,782) | (2,969) | |||||||||||||||||
| Retention bonus and severance expense | (2,633) | (2,324) | (2,297) | |||||||||||||||||
| Net income (loss) | $ | 824 | $ | (137,859) | $ | 85,634 | ||||||||||||||
| Assets | ||||||||||||||||||||
| Hydraulic Fracturing | $ | 841,180 | $ | 961,485 | $ | 1,189,526 | ||||||||||||||
| Wireline | 162,225 | 156,349 | 198,957 | |||||||||||||||||
| Cementing | 69,396 | 73,935 | 78,475 | |||||||||||||||||
| Power Generation | 201,481 | — | — | |||||||||||||||||
| Total assets for reportable segments | 1,274,282 | 1,191,769 | 1,466,958 | |||||||||||||||||
| Unallocated corporate assets | 16,608 | 31,876 | 13,354 | |||||||||||||||||
| Total assets | $ | 1,290,890 | $ | 1,223,645 | $ | 1,480,312 | ||||||||||||||
(1)The write-offs of remaining book value of prematurely failed power ends and other components are recorded as depreciation in 2025. In order to conform to current period presentation, we have reclassified the corresponding amounts of $12.4 million and $38.7 million from loss on disposal of assets to depreciation for the years ended December 31, 2024 and 2023, respectively.
(2)Represents the noncash property and equipment impairment expense of our Tier II Units.
(3)Represents noncash impairment of goodwill in our Wireline operating segment.
(4)Other income for the year ended December 31, 2025 is primarily comprised of direct payment tax refunds and well service tax refunds (net of advisory fees) totaling $3.3 million, a $2.4 million unrealized gain on short-term investment, interest income from note receivable from sale of business of $1.2 million, adjustments to workers' compensation and general liability insurance premiums of $1.0 million, insurance reimbursements of $0.8 million and $1.0 million of other income. Other income for the year ended December 31, 2024 is primarily comprised of tax refunds (net of advisory fees) totaling $5.0 million and insurance reimbursements of $2.0 million, partially offset by a $2.0 million loss to a customer related to an accidental cementing job failure. Other expense for the year ended December 31, 2023 is primarily comprised of settlement expenses resulting from routine audits and true-up health insurance costs totaling approximately $7.4 million and a $2.5 million unrealized loss on short-term investment.
(5)Other general and administrative expense for the years ended December 31, 2024 and 2023 primarily relates to nonrecurring professional fees paid to external consultants in connection with our business acquisitions and legal settlements, net of reimbursements from insurance carriers.
Major Customers
The Company had revenue from the following significant customers that accounted for the following percentages of the Company’s total revenue:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Customer A | 24.9 | % | 19.7 | % | 18.2 | % | |||||||||||
| Customer B | 13.7 | % | 2.5 | % | 0.0 | % | |||||||||||
| Customer C | 12.1 | % | 10.6 | % | 9.6 | % | |||||||||||
| Customer D | 11.2 | % | 14.9 | % | 6.2 | % | |||||||||||
| Customer E | 0.0 | % | 6.6 | % | 19.7 | % | |||||||||||
The above customers are third-party customers. Revenue from these customers was derived from our Hydraulic Fracturing, Wireline and Cementing segments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Jun 22, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 27, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.