Thank you, and good morning. We appreciate your participation in today's call. With me today is Chief Executive Officer, Sam Sledge; Chief Financial Officer, David Schorlemer; and President and Chief Operating Officer, Adam Munoz. Yesterday afternoon, we released our earnings results for the fourth quarter and full-year of 2022. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Additionally, during today's call, we will discuss January 2023 results. Of note, these results are preliminary and based upon information available to management as of the date hereof. These results are subject to change and may differ materially from our reported results for the three months ended March 31, 2023. Lastly, after our prepared remarks, we will hold a question-and-answer session. With that, I would like to turn the call over to Sam.

Thanks, Matt, and good morning, everyone. 2022 was a transformational year for ProPetro, and we are pleased to be off to an even stronger start in 2023. David will speak to our financial results for the fourth quarter and full-year of 2022 in a moment, but before that, I'd like to take a step back and acknowledge some of the key achievements and milestones from our team in 2022. As you know, in November we closed our acquisition of Silvertip Completion Services, a step that positioned ProPetro not just as a leading pressure pumping company, but now as a leading completions-focused oilfield services company. Integration of Silvertip into ProPetro has been successful, and since closing, we have begun to capitalize on the strategic vision that drove this transaction. With Silvertip, we've expanded our portfolio to include a best-in-class wireline company that enables us to pursue accretive growth opportunities and positions us to further expand our margins and increase free cash flow generation. As previously announced in December, shortly after the closing of Silvertip, to meet the increasing demand for next-generation hydraulic fracturing services, we were pleased to announce our first contract for one of our electric fleets, order two additional e-fleets under the master lease agreement used for our first two electric fleet orders, and deploy our fifth Tier IV Dynamic Gas Blending or DGB fleet, with our sixth to come online in the coming weeks. We expect that ProPetro will have at least seven Tier IV DGB fleets and four electric fleets by the end of 2023, making approximately two-thirds of our frac offering natural gas capable. These recent actions significantly advanced our strategy to industrialize our business, and we are confident that we are well-positioned to execute on the many value-enhancing opportunities ahead in 2023 and beyond. The fourth quarter was also a significant transition period for ProPetro. As we noted during our third quarter call, we laid the groundwork and prepared a significant portion of our portfolio for repricing and repositioning effort that occurred in early January. This repositioning of fleets has enabled us to pursue opportunities with other customers under accretive terms, and we're very excited to renew some prior relationships and expand others. Our operating team's excellence at the wellsite, along with a very intentional approach by our business development team, has enabled this part of our strategy to be a success. Ahead of the repricing of our fleets in January, we decided to temporarily curtail one of our active fleets in the second half of the fourth quarter to prioritize our overall fleet health in order to position us to best capitalize on the pricing uplift we were able to capture in January. In the fourth quarter, we also experienced an increased amount of seasonality and holiday impact, along with impacts from the winter storm that occurred throughout the U.S. leading up to the holidays, which ultimately affected several of our customers focused here in the Permian Basin. At ProPetro, we pride ourselves on our commitment to best-in-class corporate governance, including the Board's focus on director refreshment and building a strong bench of outstanding leaders and employees at ProPetro. To that end, recently we were pleased to welcome Mary Ricciardello to our Board of Directors and look forward to benefiting from her expertise. Additionally, the new year also saw the appointment of Jody Mitchell as ProPetro's new General Counsel and Corporate Secretary. Jody is an industry veteran and has quickly become an integral member of our core leadership team. Another important element of good governance is enhanced sustainability practices. We are pleased to announce that in 2023, we will be issuing our first-ever sustainability report, which will provide an in-depth look at the work underway to deliver on our commitment to transition our fleet in support of more efficient operations with reduced emissions while also leading efforts in the community to promote a cleaner and safer environment across the Permian Basin and for our teammates at ProPetro. Being a Midland-based and Permian Basin focused oilfield services company that serves leading upstream oil and gas operators gives us a unique vantage point into the market and current trends. To that end, before I turn it over to David, I'd like to take a few moments to discuss the broader oil and gas market and what we are seeing. Despite recent pressure on the price of natural gas, we believe that both oil and natural gas remain in structural undersupply, especially globally, and may remain so for the foreseeable future.

Thanks, Sam, and good morning, everyone. Before I dive in, I would also like to echo Sam's thanks for our team members and their continued hard work and dedication to ProPetro. Now, let's move on to our financial results. Our performance in 2022 showed continued improvement over 2021, with our financial discipline and pricing strategy generating excellent results. Revenue for the full-year 2022 was $1.3 billion, a 46% increase year-over-year. Adjusted EBITDA increased 134% year-over-year to $317 million, which was driven by our disciplined commitment to improved pricing, responsive repositioning, and cost management. Equally impressive was our adjusted EBITDA margins that increased 930 basis points to 25%. We were able to achieve this in the midst of significant inflationary pressures, a constrained supply chain, and a dynamic pricing environment. The company also posted a net income of $2 million for 2022, which is a significant turnaround compared to a $54 million net loss in 2021. During the fourth quarter, we generated $349 million of revenue, a 5% increase from the third quarter. The increase is largely attributable to the acquisition of and inclusion of November and December activity of Silvertip. Our Effective Frac Fleet Utilization was 14.5 fleets for the fourth quarter, which was in line with our prior guidance of 14 to 15 fleets. Our guidance for the first quarter is 14.5 to 15.5 fleets. Cost of services, excluding depreciation and amortization, for the fourth quarter was $243 million versus $224 million in the third quarter, with the increase driven by the Silvertip acquisition, additional strategic supply chain purchases, and cost inflation across all of our service lines. Fourth quarter general and administrative expense was $27 million compared to $28 million in the third quarter. Adjusted G&A was $22 million and excludes $5 million relating to non-recurring and non-cash items. Depreciation was $34 million in the fourth quarter. The Company posted Net Income of $13 million or $0.12 per diluted share, compared to net income of $10 million or $0.10 per diluted share in the prior quarter. As Sam mentioned, the fourth quarter was a transitional one for ProPetro. Looking back at the full-year, we posted strong performance while undergoing a significant recapitalization of our fleet. Moving to 2023, we're off to a great start to the year, and we'd like to share some selected preliminary financial results that we are encouraged by so far. Due to the repositioning and repricing efforts we undertook for our businesses in the fourth quarter of 2022, our January performance was extraordinarily strong despite experiencing some weather impacts during the month and operating only 14 active fleets for the majority of the month. Revenues came in at $136 million, and we incurred cost of services of $88 million, with general and administrative costs of $8 million exclusive of stock-based compensation and other non-recurring items of approximately $2 million. Doing the math, you can see it was a good month. Of note, in February, our 15th fleet that we had reactivated late last year is now back on a committed calendar, and we're expecting a more fulsome contribution of our 15 active fleets going forward. I'd also like to point out that Silvertip posted $20 million of revenue for January, which is the highest monthly total in its history. We are excited about the contribution this business is already making. As we have discussed, we expect that demand for our services will remain robust as we proceed into 2023. Therefore, we believe our performance in January was a strong baseline and expect to build upon that momentum as we progress into the balance of 2023.

Thank you, David. As we take stock of where we are today and look ahead to where we are going, I am proud of the work we have done to effect a significant transformation since 2019 and the onset of COVID. We have met significant obstacles and challenges head-on over the last few years and have continued to compete at the highest level while positioning our Company for the long-run. We've recently taken significant steps in reducing our maintenance CapEx and increasing our capital and logistical efficiency across our portfolio of assets while ensuring we have less equipment in rotation at the maintenance shop and are therefore more efficient with our asset base. Now, our future is stronger than ever and we are confident in our ability to execute on strategic growth opportunities into this sustained multi-year up-cycle. By the end of 2023, and as I mentioned earlier, we will have transitioned two-thirds of our fleet to natural gas-burning and electric capabilities, offering us a unique competitive advantage and one of the youngest next-generation fleets in the country. Moreover, we have a disciplined and intentional approach to capital deployment, which will allow us to strategically pursue M&A opportunities to advance our position as a leading completions-focused services company. At the same time, with a nearly debt-free balance sheet, we are prepared for any broader industry or macroeconomic headwinds and volatility that may arise. While we recognize that the space is consolidated and E&P's are not expected to meaningfully grow production in the near term, our business is now built for the long-run, and ProPetro will continue to be a major contributor to energy production for the world for the next several decades. Accordingly, we are optimistic that we will begin to see valuation improvement across the OFS space. I once again want to thank our ProPetro teammates for their tremendous performance and for giving the management team the confidence to move forward with executing our strategy. We continue to build on our strong track record of safety and performance and I am so proud of all that we have accomplished. Let's continue to keep up the great work and deliver for our customers. Lastly, we'd like to take a moment to talk about how honored we are here at ProPetro to be such a critical part of the American energy system.

Hey, good morning, guys.

Good morning.

Morning, Derek.

So, the biggest unknown facing the industry today is how many fleets could be released from the gas basins. We've seen a few E&Ps announce their plans to reduce activity. So, could you expand on the undersupply of the oil basins, specifically the Permian? One of your peers described oil basins being 20 to 25 fleets undersupplied. I mean, what's your view on this number? Do you agree? What indicators do you look at to calculate the undersupply for the fracked fleet market? Do you have a Permian-specific number that you're thinking about? Just more color under this undersupply argument would be helpful.

Sure. And great questions, Derek. It's obviously very topical right now with what's happening with natural gas prices. As we stated here earlier today, we do believe that, just generally, the world is in undersupply of the product that our subsector helps produce. Overall, that definitely ripples into things like the frac market, of which we think is still relatively undersupplied right here in the Permian Basin. That said, there's more than one market at play, we believe, here today. And that has a lot to do with this equipment transition that you've heard us and some of our peers talk so much about. That's why it's vitally important to have the right tools for the job of today, i.e., things like gas-burning equipment DG, DGB, and electric equipment. Given our transition very heavily into those types of equipment, that remains in the highest demand. That's why I think we have not seen any activity weakness in our own offering, nor have we really seen in that offering systematically in the Permian. And to make a comment on the 20 to 25 fleet number, I'm not going to necessarily endorse that number, but we do think that the system is still structurally undersupplied for the right tools that customers are demanding most highly.

Okay, great. Appreciate that. Second question, I want to talk about fleet attrition. Just thinking about you guys recapitalizing your fleet, you have the 6 and 7 Tier IV DGB coming out. You have the four e-fleets coming out. I know we didn't get a specific timing, but you guided the full-year fleet utilization to be 15 to 16. Can you give us an update on are any of these fleets going towards replacing your legacy Tier II diesel equipment as they age out, just to be helpful because I think that's another big topic that investors are trying to wrestle with, with how much attrition is going to leave the market, how many fleets will exit as you bring in these new fleets, and just trying to reconcile your guide to the number of fleets that are coming in.

Sure, great question. This is Sam again. I think attrition is a topic that is not understood enough. I know we have talked about it quite a bit in prior quarters, as have many of our peers. Yet, we're not sure that the investment community and the E&P community totally understands how hard this conventional equipment is working today and how much it shortens the operating life of certain assets. That said, if you look at what we've done just in the last 18 months with our DGB program, basically all of that has been replacement of existing horsepower. And that will continue to be the case with DGB. So, none of that has been net additive. Now, as e-fleets come on, it'll be a bit more nuanced, but you'll look for almost all of that to be replacement as well. I think in some of our materials, we guided full-year activity to 15 to 16 fleets. Here we are running 15 today. So, we'll add two e-fleets probably in the third quarter of this year, and you'll look for that to be mostly replacement as well. Obviously, we can't tell you exactly what market opportunities look like in the back half of this year today. We have a pretty good feeling under certain commodity prices what that might look like. So, we'll remain nimble there. But really, this is a replacement-refurbishment transition story; this is not a fleet growth story.

Thanks. Good morning, guys.

Morning.

Just to clarify, the four e-fleets, two in the third quarter and then the other two, when?

Probably right at the end of the year, beginning of '24.

Thank you. The commentary from January regarding the full-year suggests that the consensus EBITDA estimate of around $500 million is reasonable based on the current market conditions. If this serves as a sound baseline, considering your capital expenditures, will you also generate free cash flow for the entire year? It appears likely, but I'd like to hear your perspective on that.

Yes, Stephen, this is David. We definitely believe that we will make a significant turnaround from last year, which was focused on recapitalizing our fleet, and we expect to generate positive free cash flow in 2023.

Okay, great. That's what I assumed. I just wanted to check. And then just the final thing for me is, when you think about the current leading edge pricing dynamic, can you just give us an update on what you're seeing in the market conversation with customers? And obviously things still appear very tight. But where does pricing stand, and how have the pricing discussions gone recently?

Sure, great question. This is Sam again. We mentioned in our materials and prepared remarks that we experienced a significant pricing increase in January. We have been actively working on pricing for roughly five or six quarters now. I am very pleased with what our team has accomplished in advancing our pricing strategy to more sustainably support our business. However, we want to be realistic about future pricing opportunities. There may be some opportunities, but they likely won't occur at the same speed and scale as seen in the past year. This viewpoint is primarily influenced by recent commodity prices, particularly in the gas market. Therefore, we remain cautious. Nevertheless, our current pricing for the fleet is healthy and could generate substantial free cash flow for us in the future if we maintain our performance in the field and improve further. I feel confident about our pricing position. We will continue to take a strategic approach in maximizing opportunities and collaborating with our customers. Additionally, we are focused on enhancing our internal efficiency and being deliberate about our spending and asset management. This represents the first pillar of our strategy, which we've discussed over the past few quarters regarding optimization efforts. We have several promising initiatives underway that we are excited about, which will help us create additional value without solely relying on external factors like pricing.

Great, thanks. And just one quick one for David. David, with Silvertip, is the D&A for the first quarter running like 35 million to 36 million now, is that right?

No, we provided the guidance for January at 8 or the preliminary results at 8.

D&A or G&A?

Are you talking about D&A?

Yes.

Yes, let me pull that up real quick. But we'll get back to you on that.

The next question is from Waqar Syed from ATB Capital Markets. Please go ahead.

Thank you for taking my question. Sam, has the fleet movement and customer shift largely been completed? The reason I'm asking is due to some volatility in earnings and investor concerns about earnings not meeting expectations. Is this variability now behind us as we look ahead, or should we anticipate more fluctuations through May?

Yes, Waqar, that’s a great question. This has been a significant aspect of our story this year, which is quite different from how ProPetro has operated over the previous decade until early 2022. We have likely repositioned over half of our fleet from a customer perspective in the past year, maybe even a bit more than a year, within one basin. It's a considerable achievement that should not be underestimated, especially considering we managed to do it while maintaining our operational excellence. For the most part, aside from one fleet here and there, that major repositioning effort is essentially complete. A significant part of the final phase of that repositioning involved rolling off some of our contract with Pioneer. We believe that the fleets exiting those contracts are now in excellent positions with reputable customers, operating very efficiently and at value-added pricing for ProPetro. As a result, we expect a much more consistent customer situation moving forward this year. It's important to recognize the magnitude of what we have achieved over the past year.

Okay. And then in terms of your total active hydraulic horsepower with this 15 fleet now, could you give us a number? And then as you've guided to 15 to 16 fleets for the year, is the fleet mix changing whether you're going to be doing more simul-frac or less simul-frac with that 15 to 16 fleet guidance from 14 in January?

I'll take your last question first. It's essentially the same amount of simul-frac, with one to two fleets on that side. I'm not sure if we can comment on the total active horsepower at this time. We continue to reference the 1.3 number in all our materials. However, under current operating conditions, we are essentially at full utilization today.

Okay, that's great. And then question on your comment on the effective tax rate for the year and what the cash taxes would be?

Yes, this is David. We're not going to have any cash taxes. We have in excess of $400 million of net operating losses remaining.

Okay, great.

Just to answer the prior question from Stephen. D&A, we're expecting will be in the 33 to 35 range per quarter.

The next question is from Arun Jayaram from J.P. Morgan. Please go ahead.

Yes, good morning. Sam, I was wondering if you could give us perhaps the timeline for what do you expect the e-fleets to be working in the field, as well as the timing of the next, I think it's the 6th Tier IV DGB unit?

Sure. We're putting that 6th DGB unit to work today right now. We've got the 7th coming in April-May timeframe, May-June possibly. And then you're looking at July-August for e-fleets 1 and 2, they should come in, in pretty close succession in July and August.

Okay. And then for 3 and 4?

End of this year, beginning of next year.

Yes, I would expect activity for those to really show up in Q1.

Okay. And just to follow up, I know you are leasing the e-fleets. Can you provide an idea of how much of the capital will be accounted for in your CapEx? And could you give us a sense of that?

Yes,

Go ahead.

Yes, there will be about 15% that will be outfitting customer-supplied equipment. And so, we'll be doing that this year, that's part of our CapEx guide plan.

Okay. And can you give us some goalposts around what the capital lease obligation would be when you finish all four, ballpark?

You are looking at nearly $180 million in total lease obligations. The minimum leases span over three years once they are initiated and become active. However, the minimum lease obligations are significantly lower than that amount. I hope this provides you with some guidance.

Fair enough. And to just understand, are you saying, on top of that, there is 50% that's allocated in your CapEx?

Fifteen.

Fifteen, okay, thank you for clarifying. I know that that didn't feel right to me. Appreciate. That's super helpful for our model. Thanks.

Thanks.

The next question is a follow-up from Stephen Gengaro from Stifel. Please go ahead.

Thanks. Arun actually covered most of this. But, just quickly the CapEx on a per fleet basis from a maintenance perspective, can you just sort of update us on where that stands? And how that may evolve as a larger percentage of your fleet is new and electric?

Sure, Steve. This is David. We've been adjusting our guidance slightly to reflect $9 million to $10 million per fleet on an annual basis. Based on our optimization efforts that Sam discussed earlier, we hope to see that figure decrease. Particularly since over half of our fleet is less than two years old. As we integrate electric vehicles into our fleet, we will not incur the same level of maintenance required for internal combustion engines as in the past. We anticipate a 30% to 40% reduction in both capital and maintenance costs for these assets. As the fleet transitions more toward electric, we expect these improvements to materialize, but it will take some time.

Yes, Stephen, this is Sam. I want to emphasize what David mentioned. The electric e-fleet initiative is very important for us and others in this industry. The long-term ownership costs are significantly lower, with reduced maintenance expenses and more durable assets that require less attention and no personnel to operate. Time will reveal how distinct this advantage is once we deploy these fleets. We are genuinely excited about this development and believe it represents the future of ProPetro and the hydraulic fracturing sector overall, with an increasing focus on electric equipment. Additionally, when we refer to concepts like industrialization, it highlights two aspects: the densely operated Permian Basin and the tools we utilize daily. Unfortunately, our sub-sector has been slow to adopt the appropriate tools for current demands. We have observed completion intensity surpassing our current capabilities. As a young leader in this field, I remain optimistic about ProPetro’s direction and the industry’s shift toward technologies and tools that will enhance industrialization and add consistent value.

I am going to stick on that industrialization approach. You mentioned in your opening comment, Sam, about that type of approach to generate increased cash flow. Can you give us some examples of what you are talking about exactly? What new strategies are you looking at to unlock increased cash flow to the business?

Sure. The first thing that comes to mind is how we've traditionally operated as a growth company over the past decade, which is quite typical for an oilfield services company like ProPetro. We've seen significant growth over the last couple of cycles, and as a result, we've reached a certain scale. However, we haven't really operated at that scale for an extended period. That's what we are focusing on now—not just to grow and create value by adding more equipment and personnel, but to enhance the way we operate. We're being more intentional about our standard operating procedures, particularly concerning high-cost and capital-intensive components, and we're working to spread that operational culture throughout our business. In the past, those operational practices may have been somewhat fragmented. When I refer to significant components, I'm talking about things like engines, transmissions, and fluids, which are the core modular elements of our asset base today. We aim to establish consistent, best-in-class practices around our equipment to lower our maintenance costs and make them more predictable over time. Our team is diligently working on this right now. While it's easy for me to discuss these goals, executing them is challenging. That's why we are intentionally approaching this with a different mindset than we have before. Ultimately, these efforts should contribute positively to our bottom line over time.

Got it. I appreciate the comments there. I wanted to touch on shareholder returns. You've obviously made significant progress in recapitalizing the fleet. You have your CapEx coming down year-over-year. You talked about positive free cash flow generation for the full-year more back-half weighted. You don't really have any leverage at all. Your peers are announcing free cash flow programs. Shareholder returns program as a percentage of free cash flow split between buybacks and dividends. Just wanted to get an update on your thinking of shareholder returns, when we may see a program initiated here? What you are looking for? Just more color on this will be helpful.

Yes, great question. And just to kind of set the table on that topic the goal here at ProPetro is to build a very competitive firm that can distribute value. That is the goal. If you look at how we have allocated capital over the past 18 months, it's been a major equipment transition story for us. And, that has taken priority over everything. And we believe that that was the right thing to do to protect the long-term competitiveness for our company and to our team in situations to succeed. We are winding down somewhat that transition story. And we are using things like a leasing program with our e-fleet offering to try and lighten the capital load so that we can do two things. We can look at tools that can help us distribute that value through things like dividends and buybacks, and if we can also create a playing field where we can be opportunistic on the M&A front like we did with Silvertip. So, I would say that our capital allocation focus is beginning to pivot somewhat away from the equipment transition story and towards the shareholder returns and strategic transactions territory.

All right. Then, one more from me, just say hypothetically you see potentials in the ways of the e-fleet to deployment. Maybe some of the first two gets pushed into the fourth quarter. The next two get pushed into 2024. What would you expect would cause that? Would that be supply chain components being delayed like we have heard from some of your peers? Or potentially the power generation side? Obviously, a lot of e-fleets are coming in grid turbine, natural gas resets. There are not that many third-party solutions out there. Just would like you hear your thoughts around if we were to see some of those delivery slip, would it be more on the supply chain component side? Or, would it just be lighting up the right power solution and go out with that e-fleet?

Yes, I don't know if I want to speculate on that, Derek. We feel pretty good about our value chain partners that help us execute on this. I'll just make one brief comment. E-fleet power is tight today and will remain tight as there are definitely some long lead items, not sure there's so much more than that.

Got it. Fair enough. Thanks.

And just to add to that we did announce our most recent electric contract for the fleet starting in Q3. And we have secured power for that. So, we are set for our first deployment.

Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Sam Sledge for any closing remarks.

Sure, thanks, and thanks everybody for joining us for today's call. We are really excited here at ProPetro about the prospects of 2023 and the future in general. We like where we sit, and we are going to be excited to come back and continue to report on the company's success. Thanks again for joining us, and we will talk to you soon.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.