Midland, Texas-based ProPetro Holding Corp experienced an 8.3% increase in its shares during premarket trading following the announcement of a new venture into mobile natural gas-fueled power generators.
The oil field service company revealed that it had placed an initial order for 110 megawatts of these generators.
The newly formed subsidiary, ProPetro Energy Solutions, will operate under the name ProPWR and focus on meeting the rising energy demands within the Permian Basin. The region is known for its extensive oil and natural gas production and is currently witnessing growth in infrastructure development.
ProPetro's CEO, Sam Sledge, highlighted the strategic move, stating, "ProPWR is aimed squarely at the growing power demand across the Permian Basin for both oil and gas and developing infrastructure opportunities within the market."
This initiative marks a significant step for the company in diversifying its services and addressing energy needs in one of the most active drilling regions in the United States.
Despite the positive news, ProPetro Holding's stock has seen a 6% decline since the beginning of the year. The company's pivot to providing energy solutions with ProPWR could potentially create new revenue streams and opportunities for growth in the evolving energy sector.
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