Company Anticipates 2026 Capital Expenditures Between $390 Million and $435 Million

The company said, "The Company anticipates full-year 2026 capital expenditures to be between $390 million and $435 million. Of this amount, the Completions business is expected to account for approximately $140 million to $160 million, including approximately $40 million to $50 million related to lease buyouts for a portion of the Company's FORCE electric fleet portfolio. As a reminder, the five FORCE electric fleet leases were secured with an initial three-year term and include options to either buy out or extend the leases at the end of that period. The intent behind these leases was to defer upfront capital expenditures while securing the equipment at an attractive cost of capital, supported by the contracted earnings from the FORCE electric fleets. This strategy proved successful, enabling the Company to rapidly transform its fleet and still generate accretive cash flow. The upcoming lease buyouts reflect the completion of a deliberate and strategic capital allocation decision. By exercising these options, the Company will take full ownership of the FORCE(R) fleets. Each buyout will immediately reduce the Company's lease expense, currently reflected in operating expenses, and strengthen its commercial flexibility. The Company expects to buy out all five fleets, with buyouts anticipated to begin in late 2026 and through 2028. The Completions business guidance range also includes capital reserved for refurbishing a portion of the existing Tier IV DGB fleet, investments in fleet automation technology, as well as measured investments in direct drive gas frac units. These direct drive gas frac units are highly complementary to the current frac asset base, and their integration is anticipated to partially offset future capital requirements for investments and refurbishments in the Company's conventional frac fleet. Additionally, the Company expects to incur approximately $250 million to $275 million in 2026 for its PROPWR business. This range allows for additional equipment orders and associated down payments. The outlook is based on the current 550 megawatts of PROPWR equipment on order, as well as plans to reach at least 750 megawatts delivered by year-end 2028. While these PROPWR capital expenditure estimates reflect the total cost of the equipment, they do not account for the impact of financing arrangements, which are expected to reduce near-term actual cash outflows or cash capex required from the Company. Although near-term opportunities to add additional fleets remain limited, the Company expects to operate 11 active frac fleets in the first quarter. Winter weather disruptions were significant in January, leading to substantial utilization impacts during the last week of January which we expect to have a meaningful impact to first quarter profitability."