Tuesday, 02 January 2024 12:17 GMT

Propetro Stock Surged 18% Pre-Market Today: What's Powering The Rally?


(MENAFN- AsiaNet News)
  • ProPetro will provide 60 megawatts of power to a leading hyperscaler's data center.
  • PROPWR will deliver a combination of battery energy storage systems (BESS) and natural gas-powered generators.
  • Operations are expected to begin in the second quarter of 2026.

ProPetro Holding Corp. (PUMP) on Monday announced that its energy division, PROPWR, has entered into a long-term contract to supply 60 megawatts of power to a leading hyperscaler's data center in the U.S. Midwest. 

Under the contract, PROPWR will deliver a combination of battery energy storage systems (BESS) and natural gas-powered generators to ensure stability and resilience for data operations.

What Does ProPetro Gain From The Deal?

The agreement creates a strategic partnership between PROPWR and one of the world's top data infrastructure providers, underscoring ProPetro's evolution beyond traditional oilfield services into hybrid energy generation. 

ProPetro's dual system will help mitigate sudden demand surges while maintaining a constant energy flow, enhancing grid reliability.

ProPetro stock traded over 18% higher in Monday's premarket. On Stocktwits, retail sentiment around the stock remained in 'bearish' territory amid 'low' message volume levels. 

Deployment Timeline And Expansion Potential

Operations are expected to begin in the second quarter of 2026. The agreement includes options for future capacity and duration increases, allowing the partnership to grow in line with the customer's expanding power needs.

“By integrating hybrid battery storage with reciprocating engine technology, we're able to provide a highly responsive energy platform while setting the stage for future expansion and collaboration.”

-Travis Simmering, President, PROPWR.

The company plans to release more details on its PROPWR operations during its third-quarter 2025 earnings update later this week.

ProPetro stock has lost over 32% year-to-date and over 16% in the past 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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