2024-03-08 11:36:15 ET
Summary
- ProPetro Holding Corp. is an undervalued oilfield services company with strong growth prospects in hydraulic fracturing.
- The company specializes in hydraulic fracturing for oil and gas companies near the Permian Basin, one of the most prolific oil-producing areas in the US.
- ProPetro has attractive growth prospects stemming from stable oil and gas prices, Permian Basin expertise, and a new electric fleet.
- Shares are a buy with price target of $11.
Investment Thesis
ProPetro Holding Corp. ( PUMP ) is an undervalued oilfield services company that has a primary focus on hydraulic fracturing. I believe the company has strong growth prospects due to high oil and gas prices, its Permian Basin expertise, and its heavy investment in the electrification of its fleet. Its unique focus on the Permian Basin allows it to cultivate strong enduring relationships with oil and gas companies who need ProPetro to generate revenue. Thus, the stock is undervalued as the company continues to execute on buybacks. I think the stock is a buy with a price target of $11.
A Leading Oilfield Services Company
ProPetro Holding is a Texas-based oilfield services company that specializes in hydraulic fracturing for oil and gas companies near the Permian Basin. In the annual report, the company describes its operations,...
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Drilling Deep Into ProPetro Holding