ProPetro Holding Corp. announced that its PROPWR division has secured a 190‑MW turnkey power contract for distributed microgrids in the New Mexico portion of the Permian Basin, a subsidiary of Coterra Energy. The deal will begin deployment in the first quarter of 2026 and adds 190 MW of new orders to the company’s pipeline, bringing PROPWR’s committed capacity to more than 220 MW and the total delivered or on‑order capacity to roughly 550 MW.
The equipment mix for the new contract is 70 % natural‑gas reciprocating engines and 30 % low‑emission modular turbines, matching PROPWR’s strategy of high‑efficiency, low‑emission power solutions for oilfield and data‑center customers. The average cost per megawatt for the 550 MW of capacity on order is about $1.1 million, including balance‑of‑plant.
The contract win is part of a broader acceleration of PROPWR’s growth. ProPetro launched the division in December 2024 and has already secured an 80‑MW order in May 2025 and a 60‑MW contract for a hyperscaler data center in October 2025. Management views the new Coterra deal as a key milestone that will help the company reach 750 MW of delivered capacity by the end of 2028 and 1 GW by the end of 2030.
Capital‑expenditure guidance for 2026 has been raised to $250 million–$275 million from the previous $200 million–$250 million range, reflecting the impact of the new orders. ProPetro has a letter of intent for a $350 million lease‑finance facility to support the expansion, while free cash flow from its legacy completions business remains the primary source of capital for the new growth engine.
In its third‑quarter earnings, ProPetro reported a net loss of $2.37 million versus a $137.07 million loss a year earlier, and revenue of $294 million, a 10 % decline from the prior quarter. The company beat earnings‑per‑share expectations by $0.09, reporting –$0.02 versus the consensus of –$0.11, and exceeded revenue estimates by $27 million, posting $294 million versus the $266.25 million consensus.
"This agreement is a major step forward for PROPWR’s vision of delivering reliable, innovative power solutions to Permian operators," said Travis Simmering, President of PROPWR. "By integrating our technical expertise with Coterra’s operational excellence, we can offer a highly responsive, scalable energy platform tailored to the unique demands of oilfield microgrid installations. We look forward to expanding our collaboration over time."
Sam Sledge, ProPetro’s CEO, added that the company’s rapid progress in the new business, combined with strong demand from oilfield operators, positions PROPWR to become a leading provider of power services across multiple industries. He noted that the legacy completions business remains robust, with frac fleet activity expected to stay steady into 2026.
The contract win and the accompanying guidance increase underscore ProPetro’s confidence in the growing distributed‑power market and its ability to scale the PROPWR platform efficiently. The company’s focus on high‑efficiency, low‑emission solutions aligns with broader industry trends toward energy efficiency and lower emissions in the Permian Basin.
The deal also highlights ProPetro’s strategic use of lease‑finance to fund growth while preserving cash flow from its core completions operations, a model that has helped the company maintain financial flexibility as it expands its new‑business footprint.
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