As Q1 2025 earnings roll in, two leading service providers—ProFrac Holding Corp. and Helmerich & Payne, Inc.—offered clear-eyed perspectives on the current state of U.S. drilling activity, rig demand, efficiency efforts, and technology-driven strategy. Here’s what they said and what it means for the sector.
🇺🇸 U.S. Activity Levels: Slowing but Resilient
Both ProFrac and HP pointed to steady operational performance in Q1, but expect a softening in the quarters ahead due to market uncertainty and customer caution.
- ProFrac noted a decline in active fleet count from the Q1 peak, citing: “Operators are extending intervals between completions and reducing activity on projects with less favorable economics.” Their customers are being more selective in oil-directed completions, waiting for greater clarity on supply-demand dynamics. However, ProFrac still sees stable gas market demand into the second half of 2025.
- Helmerich & Payne maintained its average rig count at 149, but warned: “We expect a modestly lower rig count as market volatility overrides any potential incremental demand.” In short: the U.S. remains HP’s revenue engine, but even here, caution is creeping in.
⚙️ Efficiency & Technology: Critical to Margin Protection
In the face of tightening activity, both companies are doubling down on efficiency.
- ProFrac achieved record results: “We achieved new operating efficiency records both in terms of pump hours and average pump hours per fleet.” The company credits its in-house asset management platform, logistics coordination, and ability to flex fleet deployment based on real-time economics.
- HP is leaning into its performance-based contract model and technology stack: “Performance contracts and technology solutions remain a critical component of our overall contracting strategy.” With proprietary automation and directional drilling tech, HP sees this as a “win-win” value driver for both itself and its customers.
💰 Capital Discipline: Preparing for a Tighter Market
- ProFrac signaled flexibility by identifying $70–100 million in potential CapEx reductions to adapt to the evolving market.
- HP reported solid cash flow but noted that capital spending was front-loaded in the quarter and impacted working capital.
🔍 Bottom Line
The Q1/Fiscal Q2 2025 earnings from ProFrac and HP deliver a clear message:
- U.S. oilfield activity is plateauing in the face of macro headwinds.
- Efficiency and technology adoption are not optional—they’re central to maintaining margin and resilience.
- Capital agility will be essential as operators slow spending and shift toward cash-flow-focused execution.
For service providers, staying competitive in 2025 means doing more with less, guided by data, automation, and a sharp eye on ROI.
