PROPWR Secures Major Microgrid Contract and Adds 190 MW to Power Pipeline
Multi-Year Deal with Coterra Energy Signals Strong Permian Expansion
PROPWR, ProPetro’s power solutions division, has clinched a major contract to supply turnkey power for distributed microgrid projects across the New Mexico segment of the Permian Basin with a Coterra Energy subsidiary. Operations are set to start in the first quarter of 2026. This agreement brings PROPWR’s contracted capacity to more than 220 megawatts, with an average contract tenor of around five years—a robust indicator of the division’s steady portfolio growth and its capability to support leading energy operators.
New 190 MW Equipment Order Drives Total On-Order and Delivered Capacity to 550 MW
PROPWR’s pipeline is surging with an additional order for 190 megawatts of equipment, positioning total delivered and on-order capacity at about 550 megawatts. The portfolio is roughly split 70% in high-efficiency natural gas reciprocating engines and 30% in low-emission modular turbines. PROPWR expects all new equipment to be delivered by the end of 2027, targeting approximately 750 megawatts by late 2028 and aiming to hit one gigawatt by the end of 2030.
| Metric | Value |
|---|---|
| Total Contracted MW (Current) | 220 |
| New Orders Announced | 190 MW |
| Total Delivered or On-Order MW | 550 |
| Targeted MW by Year-End 2028 | 750 |
| Goal by Year-End 2030 | 1,000 (1 GW) |
| Avg. Cost per MW (to date) | $1.1 million |
| Expected 2026 Capital Expenditure | $250–275 million |
| Previous 2026 CapEx Guidance | $200–250 million |
| Pending Lease Finance Facility | $350 million |
Capital Needs Rise as Expansion Accelerates
Reflecting its aggressive growth, PROPWR has raised 2026 capital expenditure guidance to $250–275 million, above the previous estimate of $200–250 million. This jump accounts for new orders and expectations for continued incremental capacity growth. Notably, PROPWR is also negotiating a $350 million lease finance facility to supplement capital needs—yet, management continues to view internal free cash flow as the primary source for funding future growth.
Momentum in Oilfield and Data Center Power Solutions
The Coterra deal and recent orders reinforce PROPWR’s growing influence in oilfield power solutions. The company sees robust demand not just in the oil and gas sector but also in the emerging data center market, signaling potential for further commercial pipeline expansion in the years ahead.
Long-Term Vision: 1 GW Capacity Target and Beyond
Launched only a year ago, PROPWR has rapidly moved to a leading market position with ambitions for 1 gigawatt of contracted capacity by 2030. A blend of long-term customer contracts, high utilization, and diversified technology underpins the strategy—placing ProPetro and PROPWR at the forefront of next-generation, distributed power infrastructure in the U.S. energy sector.
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