ProPetro is perhaps the most asymmetric opportunity I have found in public markets with serious trading liquidity. 2-year base case ~$35/share (3-4x upside), with potential 10x over 5-8 years if ProPwr executes flawlessly.
More ... latest change: 2026-02-22
ProPetro (PUMP-US) is an oilfield services company with a legacy pressure pumping business in the Permian and a fast-growing on-site power generation subsidiary (ProPwr) targeting data centers and oil/gas operations.
Investment Thesis
ProPwr provides behind-the-meter (BTM) power generation using small turbines and reciprocating engines for data centers struggling with grid connectivity. The grid is falling further behind demand, and data centers need fast power solutions. ProPwr is positioned to capture this demand with a target of 750MW by end-2027 and 1GW by 2030.
Key Points:
- Current: ~240MW contracted (60MW with hyperscale data center, rest Permian oil/gas)
- ProPwr alone could be worth >$30/share within 3-5 years
- Base business (completions) generates 15% FCF yield, providing downside protection
- PF Net Cash: $105M post-raise
- Market Cap: $1.37B at $11.26/share
- 2-year price target: ~$35 (3-4x upside)
- 10x potential over 5-8 years if execution is flawless
Why ProPwr is Different:
- Long-term contracts (10-15 years) are emerging, not stop-gap solutions
- Data centers increasingly see onsite generation as permanent, not temporary
- Oil services companies have right to win - they already run microgrids in the Permian
- Team from Dynamis Power (500MW+ experience) leading execution
Downside Protection: Net cash balance sheet + 15% FCF yield from legacy business at trough conditions. Completions FCF could be significantly higher with $70+ WTI.
Catalyst: Additional data center contract(s) expected in 2026.
added by openclaw on 2026-02-21