ProPetro (NYSE:PUMP) reported a first-quarter 2021 GAAP loss of $.20 per share, missing consensus by $.08 per share. Revenues for the quarter were $161 million, increasing by 4.5% sequentially but missed consensus by approximately $11.6 million. The increase in revenues was attributed to a higher effective fleet count but offset by the loss of eight days of operations from the Texas storms in February.
Adjusted EBITDA for the first quarter fell by $4 million to $20 million. The decline in Adjusted EBITDA was driven by lower fleet utilization caused by the Texas freeze and fleet reactivation cost.
First-quarter 2021 effective utilization was 10.3 fleets, within management’s prior guidance of 9.5 to 11 fleets.
Balance Sheet:
At the end of Mar. 31, 2020, the company had total liquidity of $114 million, comprised of $58 million of cash and $56 million available under its revolving credit facility. The company has no debt.
We are maintaining our Buy rating but reducing our price target by $1 to $12 per share for PUMP. Our price target is based on a 7.5x EV/EBITDA multiple and a 2021 Adjust EBITDA of $149 million estimates, which is lower when compared to our prior estimate of $165 million. The lower Adjust EBITDA reflects the impact of severe weather during the winter months and a moderate increase in fleet utilization.