ProPetro Holding Corp.

and full fiscal year 2024 conference call. Please note this event is being recorded. If you require operator assistance, please press star then zero. I would now like to turn the call over to Matt Augustine, Director of Corporate Development and Investor Relations for Pro Petro Holding Corp. Please go ahead.

Thank you and good morning. We appreciate your participation in today's call. With me today are Chief Executive Officer Sam Sledge, Chief Financial Officer David Shorlimer, and President and Chief Operating Officer Adam Munoz. This morning we released our earnings results for the fourth quarter and full fiscal year of 2024. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we will hold a question and answer session. With that, I would like to turn the call over to Sam.

Thanks, Matt, and good morning, everyone. Thanks for joining us today. I'm proud to report another strong quarter and a great year for ProPetro. Despite the challenging operating environment for our entire industry, ProPetro closed out the year strong with a clear path ahead for future growth. Our strategy continues to yield results, and we continue to demonstrate how our industrialized approach to the oilfield service business is both sustainable and profitable through cycle. While the fourth quarter was impacted by typical seasonality and extended customer holiday shutdowns, our ability to generate free cash flow remained intact. proving once again that our capital life high efficiency model is working as designed. Our strategic focus on next generation service offerings, operational efficiency, and disciplined capital allocation has made ProPetro stronger and more resilient company, which in turn has spurred the ongoing transformation of our business over the past year to better align with macro trends and the evolving needs of our customers here in the Permian Basin. Today, approximately 75% of our fleet consists of next-generation gas-firing equipment, including our Tier 4 dual-fuel and electric fleets. These assets continue to be highly utilized and in strong demand as customers prioritize efficiency, fuel cost savings, and emissions reductions. Looking ahead, our forced electric fleet remains a key area of growth for us. We have four forced electric fleets operating under long-term contracts, and we expect to deploy a fifth force fleet in 2025 under a similar structure. These contracts are designed to de-risk our future earnings and provide stability in what remains an uncertain market environment. Additionally, our cementing, silver tip wireline, and aquaprop sand logistics businesses continue to succeed, contributing to our company's overall financial strength. While utilization across all service lines was impacted by seasonality in the fourth quarter, we are encouraged by the resilience of our bifurcated service offering. Our high-quality service, strong customer relationships, and best-in-class equipment continue to differentiate us from our peers. Moving forward into 2025, and as I mentioned on our last earnings call, we remain optimistic about the strength and potential of the North American onshore oilfield services over the next several years, particularly as the market moves in the direction quality providers like ProPetro, which offer lower overall cost to customers through avenues such as fuel savings while also providing enhanced efficiencies. We are confident that ProPetro is positioned as a leader in this arena. Moreover, according to our internal estimates, the Permian Basin has approximately 85 full-time active frac fleets. We believe that around 90% of this activity is held and operated by the top seven largest pressure pumping brands. This demonstrates the healthy and consolidated state of the market. Our capital discipline over the past several years has contributed to this stability, providing operational and commercial leverage for top tier pressure pumpers like ProPetro. One of the most exciting developments for ProPetro in 2024 was the launch of our newest business line, ProPower. We firmly believe that pro power represents a transformational growth opportunity for our company, allowing us to expand beyond traditional field services and establish ourselves as a premier energy solutions provider. In December, we announced an initial order of over 110 megawatts of natural gas fuel power generation equipment. Since then, we have entered into a contractual agreement with another equipment manufacturer to purchase an additional 30 megawatts of power generation equipment, totaling 140 megawatts currently on order. We plan to place orders for additional power generation capacity in the coming weeks and months as we finalize customer contracts and assess future demand from our customers. The majority of these assets are anticipated for delivery in the second half of 2025 and early 2026. bringing our total capacity to between approximately 150 and 200 megawatts in early 2026. We've made progress in obtaining customer commitments and are actively negotiating long-term contracts for our incoming equipment. We believe the demand for reliable, low emissions power solutions is vast and increasing, and we are positioning ProPower to capitalize on multiple high growth verticals. While our initial focus on both Proving the concept and establishing commercial momentum for the business is based on tried and true oil field applications, including drilling, completions, production, and midstream operations. We also see significant potential in industrial power applications. Looking even further ahead, we see a unique opportunity in the data center space, particularly in the Permian Basin. As demand for power-intensive computing infrastructure continues to grow, Our existing relationships with leading EMP operators, deep knowledge of the region, and ability to deploy scalable, low-cost natural gas-powered energy solutions make us a natural partner for data center developers looking to establish low-cost operations right here in West Texas. At ProPetro, we are constantly evaluating how we can best meet the evolving needs of current and prospective customers and capitalize on our core strengths. That's why we're moving decisively to capitalize on growth opportunities with Pro Power. Looking ahead, we will continue to scale Pro Power, leveraging a combination of cash on hand and targeted financing structures. This is just the beginning for Pro Power. We're aggressively expanding this business and believe that over time, it will significantly contribute to our earnings profile and further diversify Profetra's revenue streams while creating added stability in our overall business. At the same time, it's important to note that we're acutely aware of where our core business lies, and we will continue to focus on what makes our company a successful partner to major EMP producers in our country's most prolific basin, providing the high-quality service and support for which we are known. Before I turn it over to David, I want to highlight that the opportunity to even pursue these prospects and to be in the position we despite a challenging macro environment, is the result of our ability to generate strong free cash flow and maintain a sturdy balance sheet. The discipline reflected in those characteristics is what has afforded us the flexibility to pursue a dynamic capital allocation strategy that we anticipate will generate healthy returns. To that end, I want to reaffirm our commitment to our capital allocation strategy. There are four key elements on which we are focused. First, launching and scaling ProPower, which we believe will be a key pillar of our future earnings growth. Second, investing in our next generation fleet transition, ensuring we remain the premier provider of low emissions, high efficiency pressure pumping services. Third, executing on accretive M&A transactions and optimizing our portfolio. This includes our recent divestiture of the Vernal Utah cementing operations during the fourth quarter which aligns with our Permian focus strategy. In terms of M&A, we are equal opportunists between Pro Power and our completions businesses, focused on prudently pursuing value-enhancing growth. And fourth, returning capital to shareholders through our share repurchase program, under which we have retired approximately 13 million shares, or approximately 11% of Pro Petro shares outstanding since inception. In short, we will remain opportunistic yet disciplined in our capital deployment, consistent with our focus on maximizing long-term value for our shareholders. I'll now turn it over to David to discuss our full year and fourth quarter financial results a bit deeper. David.