ProPetro’s PROPWR unit signs agreement to buy 2.1 gigawatts from Caterpillar

ProPetro Holding Corp. (PUMP) announced that its PROPWR business unit entered into a strategic framework agreement with Caterpillar Inc. (CAT) to purchase up to 2.1 gigawatts of power generation assets by 2031.

Under the agreement, PROPWR commits to purchasing at least 1.5 gigawatts of power generation assets, with an option to increase the total to approximately 2.1 gigawatts over five years. Combined with approximately 550 megawatts previously ordered, PROPWR expects to have approximately 2.6 gigawatts of power generation capacity delivered by year-end 2031 and fully deployed in 2032.

The power generation assets will support data center, oil and gas, and industrial customers. PROPWR plans to fund the purchases primarily through free cash flow from ProPetro’s completions business, supplemented by growth from the power segment and flexible financing facilities.

"This agreement marks a major milestone in the expansion of our strategic collaboration with Caterpillar, reinforcing our position as a leader in high-efficiency power-as-a-service solutions," said Travis Simmering, President of PROPWR.

"This agreement reflects the strength of our long‑standing collaboration with ProPetro and a shared focus on helping customers meet growing power needs with reliable, scalable solutions," said Tara Rossman, Senior Vice President of Caterpillar Oil & Gas and Marine.

ProPetro recently completed an equity offering to strengthen its balance sheet and enhance liquidity. The company stated it is evaluating additional financing options to support the framework agreement while maintaining financial flexibility.

The information is based on a press release statement from ProPetro Holding Corp.