ProPetro discloses U.S. SEC probe
ProPetro has filed a Current Report on Form 8-K that provides updates regarding the audit committee's internal review, as well as related accounting conclusions regarding the existence of at least two material weaknesses, recently filed shareholder litigation, a Securities and Exchange Commission investigation and related matters. The audit committee has continued to review the matters previously disclosed in the company's Current Reports on Form 8-K filed with the SEC on August 8, 2019 and October 9, 2019. Since October 9, 2019, the Audit Committee has identified one related party transaction that was not previously disclosed and is described in greater detail in the Form 8-K. The company and certain of its officers and directors have been named in a shareholder class action lawsuit that was filed in September 2019 and remains in its early stages. The company has also been advised by the SEC that the SEC has opened an investigation into the company, and the company has cooperated and expects to continue to cooperate with the SEC's investigation. The company cannot currently predict the duration, scope or results of either of these proceedings, including whether either or both may have a material adverse impact on the company. ProPetro has also filed a Form 12b-25, Notification of Late Filing, with the SEC today regarding its inability to timely file its Form 10-Q for the third quarter of 2019. The company does not currently expect to be in a position to file amended, delinquent or future SEC filings prior to the end of 2019. As described in the Form 8-K and Form 12b-25, the company will continue to seek to take all appropriate actions and make necessary filings with the SEC with a view to becoming current in its filing obligations under the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable.