ProPetro Eyes 750MW ProPwr Capacity by 2027 with 15% Free Cash Yield
ProPetro’s shares traded at $10.90 on February 23 with trailing and forward P/Es of 25.7 and 3.1, while legacy pumping operations yield free cash flow at 15%. The ProPwr unit has 240MW contracted, targets 750MW by 2027 and 1GW by 2030, and underpins a 3–4x stock upside.
1. Bullish Thesis Overview
ProPetro shares traded at $10.90 on February 23 with trailing and forward P/Es of 25.7 and 3.1, reflecting deep value in its legacy pressure pumping operations that generate a 15% free cash flow yield on cyclical Permian activity.
2. ProPwr Business Growth
Since launching ProPwr in late 2024, the modular onsite power division has secured 240MW of contracted capacity, including a 60MW hyperscale data center deal, and is positioned to reach 750MW by 2027 and 1GW by 2030 to meet exponential data center power demand.
3. Valuation Upside and Catalysts
The legacy segment provides downside protection through steady cash flows, while ProPwr’s high-margin growth could drive 3–4x base-case appreciation over two years and up to 10x in an ideal scenario. Key catalysts include new data center contracts or capacity expansions that accelerate ProPwr deployment.