ProPetro Holding Corp. Liquidation Value

ProPetro Holding Corp. (PUMP) presents a structurally challenged liquidation posture as of March 31, 2026, consistent with its prior-period profile but meaningfully shifted by a capital-intensive pivot into power generation. MFFAIS reports a cash liquidation value of approximately negative $203M, a liquid liquidation value of approximately positive $25M, and an operating liquidation value of approximately positive $40M — the latter two thin enough that any slippage in recovery assumptions eliminates equity recovery entirely.

On the asset side, the dominant line is PP&E at $843M book value. At a 50-70% recovery haircut (oil field service equipment in a distressed sale carries significant market discount, particularly legacy Tier II equipment and equipment-under-construction for an unproven power generation business), recoverable value ranges roughly $420M-$590M. Gross intangibles of $79M (net $53M) recover at zero under liquidation convention. Goodwill of $920K is immaterial and also zeroed. AR of $228M at 90-95% recovery yields roughly $205M-$217M. Cash of $157M recovers at par, including $163M net proceeds from the January 2026 equity offering that funded the cash balance.

The liability stack at face value includes: current liabilities of $255M (including $116M AP, $57M accrued liabilities, $42M current operating lease liability, $8.5M deferred revenue, $16.9M current portion of long-term debt, and $7.8M current finance lease); non-current liabilities of $166M including $79M long-term debt (Caterpillar term loans), $27M non-current operating lease, $58M deferred tax liability, and $2.9M contingent consideration. Total liabilities face value: $421M.

The critical change versus the prior filing (10-K, December 31, 2025) is the acceleration of PROPWR capital deployment. Caterpillar Equipment Loan outstanding grew from $77.5M ($2.1M interim + $75.4M term) at year-end 2025 to $112M ($15.4M interim + $96.6M term) at March 31, 2026. Total capex incurred in Q1 2026 was $85M, of which $71.5M was power generation, versus $38.7M total in Q1 2025. Operating cash flow collapsed to $2.7M vs. $54.7M in Q1 2025, with Adjusted EBITDA down 50% YoY to $36.4M. The post-period subsequent event — a signed framework agreement with Caterpillar for approximately 1.5 GW of incremental generation assets with a minimum purchase obligation of approximately $1.1B — represents a contingent obligation not yet on-balance-sheet but which, if executed, would fundamentally restructure the liability profile. The Stonebriar Equipment Lease Facility ($350M capacity) also remains undrawn but creates future operating lease obligations at SOFR+6.25% when deployed. Operating lease obligation declined from $79.2M (Dec 31, 2025) to $68.5M (Mar 31, 2026) as Electric Fleet Lease payments ran off, partially offset by the $65.9M remaining Electric Fleet Lease commitment and $7.8M Power Equipment Lease commitment carried off-balance-sheet. Filing discusses the post-period Caterpillar framework agreement ($1.1B minimum purchase obligation) in MD&A and a subsequent event note, but the purchase commitment is not separately tagged in XBRL — it appears only in narrative.