Risks for PROPETRO HOLDING CORP (PUMP)

Here are some interesting risks from the recent filings of PROPETRO HOLDING CORP. Our algorithms work hard to highlight risks unique to this company.

Our business and financial performance depends on the oil and natural gas industry and particularly on the level of capital spending and exploration and production activity within the United States and in the Permian Basin, and a decline in prices for oil and natural gas may have an adverse effect on our revenue, cash flows, profitability and growth.

The cyclical nature of the oil and natural gas industry may cause our operating results to fluctuate.

We are exposed to the credit risk of our customers, and any material nonpayment or nonperformance by our customers could adversely affect our business, results of operations and financial condition.

We face significant competition that may cause us to lose market share.

Our business depends upon our ability to obtain specialized equipment, parts and key raw materials, including frac sand and chemicals, from third‑party suppliers, and we may be vulnerable to delayed deliveries and future price increases.