ProPetro Lands Major Coterra Deal To Build New Mexico Microgrids, Boosting Its Power Portfolio

ProPetro Holding Corp. ("ProPetro" or the "Company") (NYSE:PUMP) is pleased to announce that its PROPWR℠ division has executed a contract to provide turnkey power for the development and installation of distributed microgrids throughout the New Mexico portion of the Permian Basin with a subsidiary of Coterra Energy Inc. Deployment and operations for the project are scheduled to begin in the first quarter of 2026, further highlighting PROPWR's speed-to-market and execution capabilities.

"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 PROPWR's technical expertise and flexible assets with the operational excellence and forward-thinking approach of Coterra Energy, we're able to offer a highly responsive, scalable energy platform tailored to the unique demands of oilfield microgrid installations. We're excited to partner with Coterra Energy to help drive the next generation of distributed power in the Permian Basin, and we look forward to expanding our collaboration over time."

With this contract, PROPWR now has over 220 megawatts committed under contract, with a weighted average contract tenor at commencement of approximately five years across its portfolio. This agreement further underscores PROPWR's ability to support leading Permian operators and maintain a healthy contracted asset portfolio.

In addition to this significant agreement, PROPWR's commercial pipeline remains robust with opportunities to expand its business with additional projects in the oilfield and data center sectors. The Company is excited about the potential to move these opportunities forward and further expand PROPWR's footprint, reinforcing its position as a leading provider of innovative, reliable power solutions.

To support its expanding commercial pipeline, PROPWR has placed orders for an additional 190 megawatts of equipment — bringing its total current delivered or on-order capacity to approximately 550 megawatts. With this order, PROPWR's equipment portfolio is split approximately 70% and 30% between high-efficiency natural gas reciprocating engine generators and low emissions modular turbines, respectively. PROPWR anticipates all units will be delivered by year-end 2027, with contracts expected to be secured ahead of delivery. Moreover, by leveraging strong relationships with supply chain partners, PROPWR expects to remain well positioned to order additional capacity and continues to expect approximately 750 megawatts delivered by year-end 2028, with a goal of reaching one gigawatt or more by year-end 2030. With the order announced today, PROPWR's total cost per megawatt for the approximately 550 megawatts ordered to date averages approximately $1.1 million, including balance of plant.

As a result of the additional equipment orders announced today and the expectation of further incremental orders, PROPWR's 2026 capital expenditures are now projected to be between $250 million and $275 million, above the previous guidance of $200 million and $250 million provided in the Company's third quarter earnings report.