Article

ProPetro Holding Corp.'s PROPWR division has signed a contract with a Coterra Energy subsidiary to develop distributed microgrids in Coterra's New Mexico Permian operations, with deployment set for early 2026. This partnership aims to enhance operational reliability and cost control by providing lower-emission power solutions.

Coterra recently raised its full-year production guidance and expects $2 billion in free cash flow for 2025. The microgrid initiative aligns with Coterra's strategy of capital efficiency and cash generation, offering investors an operational benchmark.

However, risks remain regarding natural gas price volatility and inventory quality. Coterra forecasts revenues of $9.6 billion and earnings of $1.9 billion by 2028, with a fair value estimate of $32.32 per share, indicating a potential 23% upside.