The accompanying condensed consolidated financial statements of ProPetro Holding Corp. and its subsidiaries (the "Company," "we," "us" or "our") have been prepared in accordance with the requirements of the United States Securities and Exchange Commission ("SEC") for interim financial information and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. Those adjustments (which consisted of normal recurring accruals) that are, in the opinion of management, necessary for a fair presentation of the results of the interim periods have been made. Results of operations for such interim periods are not necessarily indicative of the results of operations for a full year due to changes in market conditions and other factors. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2025, included in our Form 10-K filed with the SEC (our "Form 10-K").

Hydraulic fracturing is an oil well completion technique, which is part of the overall well completions process. It is a well-stimulation technique intended to optimize hydrocarbon flow paths during the completion phase of shale wellbores. The process involves the injection of water, sand and chemicals under high pressure into shale formations. Our hydraulic fracturing contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed accurately depicts how our hydraulic fracturing services are transferred to our customers over time.

Acidizing, which is part of our hydraulic fracturing operating segment, involves a well-stimulation technique where acid or similar chemicals are injected under pressure into formations to form or expand fissures. Our acidizing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service or sale of the acid or chemical when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize acidizing revenue at a point-in-time, upon completion of the performance obligation.

Wet sand solutions, which is part of our hydraulic fracturing operating segment, involve providing onsite storage and handling of wet sand used in the completion phase of shale wellbores. We recognize revenue from the sale of wet sand, location services and transportation services over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price, fixed units per stage and actual stages completed.

Our cementing services use pressure pumping equipment to deliver a slurry of liquid cement that is pumped down a well between the casing and the borehole. Our cementing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize cementing revenue at a point-in-time, upon completion of the performance obligation.

Wireline services (including pumpdown) are oil well completion techniques, which are part of the well completions process. Our wireline services utilize equipment with a drum of wireline to deploy perforating guns in the well to perforate the casing, cement, and formation. Once the well is perforated, the well can be fractured. Pumpdown utilizes pressure pumping equipment to pump water into the well to deploy perforating guns attached to wireline through the lateral section of a well. Our wireline contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed accurately depicts how our wireline services are transferred to our customers over time. In addition, certain of our wireline equipment is entitled to daily equipment charges while the equipment is on the customers' locations. The Company recognizes revenue related to daily equipment charges on a daily basis as the performance obligations are met.

Our power generation arrangements involve providing turnkey power generation services to oil and gas producers and non-oil and gas applications such as data centers and general industrial projects using mobile power generation equipment installed at customers’ sites. The Company evaluates whether the use of its power generation equipment installed at customers’ sites to provide power generation services represents a lease in accordance with FASB ASC Topic 842, Leases. As discussed further in "Note 11 - Leases", for power generation equipment installed at customers’ sites in conjunction with providing power

generation services, the Company accounts for lease and nonlease components of power generation arrangements as a single performance obligation and accounts for the combined component in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, since power generation services (nonlease components) represent the predominant component for our existing contracts with customers, the timing and pattern of transfer for the lease component and nonlease components associated with that lease component are the same, and the lease component, if accounted for separately, would be classified as an operating lease. The Company accounts for revenue earned in the form of variable consideration related to power generation output in accordance with the guidance on variable consideration in FASB ASC Topic 606. The Company recognizes its power services revenues over time based on the agreed fixed transaction price and the greater of actual output of power produced or the minimum agreed quantity of output, and any variable consideration from output of power produced in excess of the minimum agreed quantity of output. The Company recognizes revenue related to other ancillary services (which are considered inputs to the Company's power services) over time as customers receive and consume the benefits of the Company's power services.

The Company assesses customers’ ability and intention to pay, which is based on a variety of factors including historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days.


(in thousands)
	September 30, 2026		December 31, 2025		September 30, 2025		December 31, 2024
Amounts billed to customers - net of allowance for credit losses	$	226,451	$	171,812	$	179,756	$	148,783
Accrued revenue (unbilled receivable)	63,534		28,941		29,469		47,211
Total accounts receivable - net of allowance for credit losses	$	289,985	$	200,753	$	209,225	$	195,994

Transaction price allocated to the remaining performance obligation for our partially completed hydraulic fracturing and wireline operations (1)	$	17,591	$	31,558	$	27,727	$	38,708

(1)The remaining performance obligation at September 30, 2026 is expected to be completed and recognized as revenue within one month following the current period balance sheet date. The remaining performance obligations at the remaining dates were recorded as revenue within one month following those dates.

As of September 30, 2026, the Company had no allowance for credit losses. Our allowance for credit losses is based on the evaluation of both our historic collection experience and the economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and separately considered customers with receivable balances that may be negatively impacted by current or future economic developments and market conditions. While the Company has not experienced significant credit losses in the past and has not yet seen material adverse changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of depressed economic activities, including the potential impact of periodically adjusted borrowing base limits, level of hedged production, or unforeseen well shut-downs may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses.


(in thousands)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Beginning balance	$	—	$	—	$	—	$	—
Provision for credit losses during the period	—		—		—		—
Write-off during the period	—		—		—		—
Ending balance	$	—	$	—	$	—	$	—

Contract assets include amounts earned from performance obligations under contracts with customers for our power generation services including demobilization for which we have a conditional right to receive consideration for our performance and costs incurred to fulfill contracts with customers for our power generation services which are initially capitalized as assets and are presented in other current assets or other noncurrent assets in our condensed consolidated balance sheets. Amounts billed to customers and accrued revenue related to these services are discussed in the "Accounts Receivable" section above.

Contract assets related to power generation service arrangements primarily represent amounts associated with equipment demobilization obligations that will be billed in the future and for which the Company has a conditional right to consideration. Revenue and the related contract asset are recognized over the term of the power generation service contract, from commencement of services through the end of the contractual service period, as the Company satisfies its performance obligations. Costs incurred to fulfill customer contracts are amortized to cost of services on a straight-line basis over the period from service commencement or the date the cost is incurred, whichever is later, through the end of the related power generation services contract term. The Company believes this method is consistent with the pattern of revenue recognition for the related services.


(in thousands)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue recognized related to performance obligations under contracts with customers for which the Company has a conditional right to receive consideration for its performance	$	54	$	—	$	54	$	—

Contract liabilities include (i) cash advances from a customer in connection with our contract with the customer to provide FORCE® electric-powered hydraulic fracturing equipment and services and (ii) upfront payments from customers in connection with our contracts to provide power generation services. These amounts received from customers will be credited towards the customers' invoices as our revenue performance obligations are met over the contract period. The cash advances and upfront payments received represent contract liabilities in connection with the performance of certain completion services and power generation services.


(in thousands)
	September 30, 2026		December 31, 2025		September 30, 2025		December 31, 2024
Cash advances and upfront payments received from customers - outstanding balance (1)	$	32,211	$	8,104	$	5,802	$	11,823

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue recognized from cash advances and upfront payments received balances outstanding at the beginning of period	$	2,068	$	1,763	$	4,951	$	4,887

(1)These amounts are accounted for under FASB ASC Topic 606, Revenue from Contracts with Customers. Of the amount outstanding as of September 30, 2026, $9.5 million is included in accrued and other current liabilities, and $22.7 million is included in other long-term liabilities in our condensed consolidated balance sheet. All other amounts are included in accrued and other current liabilities in our condensed consolidated balance sheets. The Company expects to recognize the amount outstanding as of September 30, 2026 included in accrued and other current liabilities as revenue within one year following the current period balance sheet date.

On May 7, 2026, we issued $690.0 million in aggregate principal amount of our 0.00% convertible senior notes due 2031 (the "Convertible Notes") in a private placement (the "Notes Offering"). Our Convertible Notes are classified as convertible debt instruments recorded as liabilities in accordance with FASB ASC Topic 470-20, Debt with Conversion and Other Options, and are initially recognized at their principal amount, net of debt issuance costs and any discounts. Debt issuance costs and discounts are amortized to interest expense over the term of the instrument using the effective interest method. We evaluate each instrument to determine its classification as debt or equity and assess whether embedded features, such as conversion options, require bifurcation and separate accounting as derivatives under FASB ASC Topic 815-15, Embedded Derivatives. Bifurcation is required if these features are not clearly and closely related to the host contract and do not meet the scope exception criteria under FASB ASC Topic 815-40, Contracts in Entity's Own Equity. Upon conversion, the carrying amount of the debt is reduced, and the settlement is accounted for based on the terms of the instrument, which may include issuance of common stock, cash payment, or a combination thereof. Interest expense includes special interest and additional interest, if any, and the amortization of debt issuance costs and discounts.


(in thousands)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Depreciation and amortization related to cost of services	$	42,022	$	39,291	$	121,363	$	126,529
Depreciation and amortization related to general and administrative expenses	2,369		2,369		7,105		7,121
Total depreciation and amortization	$	44,391	$	41,660	$	128,468	$	133,650

For the three and nine months ended September 30, 2026, we utilized the annual effective tax rate method to calculate the interim tax provision, as prescribed by FASB ASC Topic 740-270, Income Taxes - Interim Reporting. In the second quarter of 2026, we utilized the discrete effective tax method as allowed by FASB ASC Topic 740-270-30-18 because small changes in estimated "ordinary" income would have resulted in significant changes in the estimated annual effective tax rate. As of September 30, 2026, small changes in estimated "ordinary" income no longer result in significant changes and it was determined that the estimated annual effective tax rate is a reliable estimate and, accordingly, for the three and nine months ended September 30, 2026, the annual effective tax rate method was utilized.

Total income tax benefit was $1.4 million on pre-tax income resulting in an effective tax rate of (12.5)% for the three months ended September 30, 2026, as compared to income tax benefit of $0.7 million on pre-tax loss or an effective tax rate of 22.9% for the three months ended September 30, 2025. The change in income tax benefit recorded during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, is primarily attributable to the difference in the impact of nondeductible expenses, state taxes, and valuation allowances on the pre-tax income for 2026, compared to the pre-tax loss for 2025. Total income tax benefit was $1.2 million on pre-tax income resulting in an effective tax rate of (1,582.7)% for the nine months ended September 30, 2026, as compared to income tax expense of $2.8 million on pre-tax income or an effective tax rate of 97.1% for the nine months ended September 30, 2025. The change in income tax benefit (expense) recorded during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, is primarily attributable to the difference in the impact of nondeductible expenses, state taxes, and valuation allowances on the pre-tax income for 2026, compared to 2025.