Why ProPetro Holding (PUMP) just raised fresh equity

ProPetro Holding (PUMP) has completed a $150 million follow on equity offering, issuing 15,000,000 common shares at $10 each with a $0.475 discount per share, a move that reshapes its capital base.

The equity raise comes after a choppy stretch, with a 30 day share price return of 20.73% and a 1 year total shareholder return of 30.85%, suggesting momentum has been picking up recently.

If this kind of capital raise has you thinking about where else money is moving in markets, it could be a good moment to scan our 24 power grid technology and infrastructure stocks as a fresh set of ideas.

With the stock up 20.73% over 30 days and trading below an average analyst price target, plus an intrinsic value estimate suggesting a large discount, you have to ask: is this a genuine opportunity, or is the market already baking in future growth?

Most Popular Narrative: 18% Undervalued

With ProPetro Holding last closing at $11.24 against a most followed fair value estimate of $13.63, the current share price sits well below that narrative anchor.

The company's accelerated transition to next-generation, dual-fuel and electric fleets, which now comprise about 75% of its total fleet, positions ProPetro to capture premium contract pricing, win longer-term agreements, and benefit from rising ESG and efficiency standards, thereby improving net margins as older diesel competitors exit or are forced to idle capacity.

Curious what kind of revenue outlook, margin shift and future earnings multiple are baked into that fair value line? The narrative pulls together long dated contracts, power agreements and fleet upgrades into one tight valuation story.

Result: Fair Value of $13.63 (UNDERVALUED)

However, the story can change quickly if Permian pressure pumping stays loose or if key customers pull back activity, which could weigh on utilization and margins.

Build Your Own ProPetro Holding Narrative

If this fair value story does not quite fit how you see ProPetro, you can stress test the numbers yourself and shape your own view in just a few minutes, then Do it your way

A great starting point for your ProPetro Holding research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.