ProPetro Holding Corp. (PUMP) Reveals Multiple Weaknesses in Financial Reporting
In August 2019, the Company had disclosed that it was conducting an audit to determine whether there was any material weakness in its disclosures related to purchases of electric hydraulic fracturing fleets. As the probe progressed, it was expanded to include expense reimbursements by executives as well as transactions involving related parties and other potential conflicts of interest. In addition to the Company’s internal audit, ProPetro remains under investigation by the SEC. On February 24, 2020, ProPetro revealed that a board committee had found multiple material weaknesses related to its financial reporting and disclosures. As a result, the Company has announced that it is unable to timely file its annual report and an independent accounting firm continues to examine the board’s findings and remediation plan.
