PUMP's Margin Can Weaken
ProPetro Holding Corp. (PUMP) plans to increase fully utilized frac fleet deployment in Q3 compared to the Q2-average. Its ten-year contract with PXD following an asset acquisition transaction will serve as a cushion against the dip in activity and utilization. However, the delay in using DuraStim hydraulic fracturing fleets can adversely affect its short-term operating margin. Also, reduced idle fee compensation can negatively affect the margin in 2H 2020. In the past year, the stock has underperformed the VanEck Vectors Oil Services ETF (OIH), which reflects