ProPetro Holding (PUMP) is seeing steady improvement in its Permian Basin operations, and most of the company's longer-term earnings are expected to come from its distributed natural-gas power platform, Morgan Stanley said Monday in a report.
ProPetro is targeting the deployment of nearly 2.6 gigawatts of modular gas-fired generation through 2033, and as that buildout progresses, consolidated EBITDA is expected to rise to more than $900 million by 2033 from $195 million in 2026, with power contributing roughly 75% of total earnings, Morgan Stanley said.
Further upside depends on securing additional data-center projects, where longer-duration contracts and larger scale support stronger valuation multiples, the report said.
Morgan Stanley also sees a supportive fracturing backdrop into 2027, with tighter effective horsepower supply helping utilization and pricing.
Morgan Stanley initiated coverage of ProPetro stock with an equal-weight rating and $13 price target.
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