Filing Flows › ProPetro Holding (PUMP) › Takeover & LBO
Is ProPetro Holding (PUMP) a takeover target?
A leveraged buyout at today's price plus 30% ($10.05 a share) would return a loss of all the money the buyer puts in to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $1.51 a share (−80% against today's $7.73). Historically 2.3% of companies with its figures were bought within a year (0.46× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $10.05 | today's $7.73 plus 30% |
| × shares | 154.7 million | |
| = Equity value | $1.6B | |
| + Debt refinanced | $840M | |
| − Cash | $729M | |
| = Enterprise value | $1.7B | 9.5× EBITDA of $176M |
| Fees | $33.3M | 2% of the price |
| New debt | $966M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $733M | 43% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.2B | $170M | $73.9M | −$187M | $1.2B |
| Year 2 | $1.2B | $168M | $88.2M | −$200M | $1.4B |
| Year 3 | $1.2B | $168M | $103M | −$215M | $1.6B |
| Year 4 | $1.2B | $170M | $120M | −$235M | $1.8B |
| Year 5 | $1.2B | $175M | $138M | −$258M | $2.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.3B | |
| − Debt left | $2.1B | |
| = Buyer's equity | −$754M | |
| Money multiple | -1.03× | on $733M put in |
| Buyer's yearly return (IRR) | −100.0% |
Price against return
What the buyer makes at other premiums over today's $7.73; the IRR reaches 20% at $1.51 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $8.50 | −100.0% |
| 20% | $9.28 | −100.0% |
| 30% | $10.05 | −100.0% |
| 40% | $10.82 | −100.0% |
| 50% | $11.60 | −100.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.2B | |
| EBITDA, last 12 months | $176M | 14.4% of revenue |
| Depreciation and amortization | $170M | |
| Capital spending | $292M | |
| Debt | $840M | |
| Cash | $729M | |
| Share price | $7.73 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -3.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 30% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, ProPetro Holding would cost about $10.24 a share, $1.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $9.28 | $1.4B |
| Median | 32.5% | $10.24 | $1.6B |
| High end (a quarter paid more) | 51.8% | $11.73 | $1.8B |
The odds, from history
Historically 2.3% of companies with its figures were bought within a year (0.46× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
ProPetro Holding's latest quarter
ProPetro Holding, Q3 2026: revenue $355M (+21% year over year), operating margin 3.1%, net earnings $13.0M, operating cash flow $46.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is ProPetro Holding being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy ProPetro Holding?
A leveraged buyout at today's price plus 30% ($10.05 a share) would return a loss of all the money the buyer puts in to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $1.51 a share (−80% against today's $7.73).
What would a takeover of ProPetro Holding cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, ProPetro Holding would cost about $10.24 a share, $1.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.