Texas-based ProPetro Implements Strategic Actions Amid COVID-19 Pandemic
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ProPetro Holding has made a number of strategic actions to align its cost structure to better reflect currently expected lower activity levels resulting from recent economic and industry forces beyond its control, including the effects of the COVID-19 pandemic, the sharp decline in oil prices and the weak outlook for the oil and gas industry.
ProPetro is implementing the following measures to address current market conditions. The company will continue to prioritize the safety and welfare of its employees and customers as well as its operational excellence:
• Reducing labor costs related to changing activity levels. Today, ProPetro implemented a workforce reduction to
address declining fleet activity.
• Significantly reducing maintenance capital expenditures and field level consumable costs due to lower activity
levels.
• Seeking to negotiate lower pricing for expendable items, materials used in day-to-day operations, and large
component replacement parts.
• Evaluating cost-savings opportunities by internalizing certain support services that are currently outsourced.
• Continuing to evaluate and consider additional cost saving measures in the future.
“We are experiencing unprecedented market volatility and difficult conditions across the oil and gas industry that are putting pressure on our operations,” said Phillip Gobe, chairman and chief executive officer.
“We are anticipating material declines in activity and utilization from mid-March through the end of April, and activity levels may be difficult to predict in this the volatile and rapidly changing environment. The difficult yet decisive actions we are announcing today will help the company preserve flexibility and continue to deliver quality service to its customers.” added Gobe.
“Our overarching focus is on maintaining the safety and health of our employees and our communities while seeking to maintain our industry-leading efficient operations. We thank the employees who left us today for their service to the company,” said Gobe.
About ProPetro
ProPetro Holding Corp. is a Midland, Texas-based oilfield services company providing pressure pumping and other complementary services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources.
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