Oil services sector-related exchange traded funds were among the hardest hit Friday as ProPetro Holding (NYSE: PUMP) dragged on the sector, following a delayed filing in its quarterly report due to an ongoing review of its financial records.

Among the worst performing non-leveraged ETFs of Friday, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) declined 3.8%. Meanwhile, the Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy exchange traded fund, fell 1.1%.

Pulling down on the oil services segment, ProPetro shares plunged 26.5% at the end of Friday. PUMP makes up 4.1% of XES’s underlying portfolio.

ProPetro said it delayed filing its second quarter Form 10-Q with the Securities and Exchange Commission after the company expanded its current investigation to include “expense reimbursements and certain transactions involving related parties or potential conflicts of interest”, the Motley Fool reports.

In its preliminary Q2 report, ProPetro revealed it recorded $529.5 million in revenue, or down from $546.2 million in the first quarter. The company also showed a significant increase in general and administrated costs relating to the audit.

Investors heavily sell off ProPetro

Due to its questionable financial audit, investors heavily sold off ProPetro in case of any potential wrongdoing. ProPetro does not believe it will need to revise its previously reported results, but investors revealed they won’t risk it in case the findings uncover a major issue once the SEC comes out with the final report.

Meanwhile, West Texas Intermediate crude oil prices jumped over 3% on Friday after a dip in European inventories and expectations of more OPEC output cuts despite the International Energy Agency projecting demand growth was at its lowest since the 2008 downturn, Reuters reports.

“Despite a further cut in oil demand growth by the IEA, oil prices are trading marginally higher, as the demand growth cut was already announced previously by the head of the IEA and the agency still expects larger inventory draws for 2H19,” UBS analyst Giovanni Staunovo told Reuters.

For more information on the energy sector, visit our energy category.

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