ProFrac Holding Corp. (NASDAQ: ACDC) today announced financial and operational results for its third quarter ended September 30, 2024.
Third Quarter 2024 Results
- Total revenue was $575.3 million compared to second quarter revenue of $579.4 million
- Net loss was $43.5 million compared to net loss of $65.6 million in the second quarter
- Adjusted EBITDA(1) was $134.8 million compared to $135.6 million in the second quarter
- Net cash provided by operating activities was $98.0 million compared to $113.5 million in the second quarter
- Capital expenditures totaled $70.0 million
- Free cash flow(2) was $30.9 million
Matt Wilks, ProFrac’s Executive Chairman, stated, “We continued our recent quarterly trend setting new operating efficiency records while delivering leading performance for our customers amidst a challenging market environment. Despite continued activity softness, ProFrac was able to deliver strong financial results in line with the second quarter. As I have previously highlighted, ProFrac’s leading position throughout the completions value chain enables us to deliver robust financial and operational performance through-the-cycle. Further, our integrated platform bolsters our commercial strategy to partner with operators that value integrated, highly efficient solutions at scale.
“ProFrac’s third quarter performance is underpinned by our record-setting efficiency per active fleet, which is a clear testament to the quality of our people and their commitment to safety, efficiency and premium customer service,” concluded Mr. Wilks.
Outlook
In the Stimulation Services segment, the Company anticipates pricing and activity to decline in the fourth quarter. Due to our integrated model and prudent cost management, we are able to navigate cyclicality without sacrificing service and asset quality. Based on ongoing dialogue with operators we anticipate a recovery in activity in 2025 as compared to the fourth quarter of 2024, and we continue to field new inbound requests for additional integrated fleet deployments with the highest demand for electric and Tier 4 dual fuel or DGB technologies. Today, approximately 72% of our active fleets include e-fleet or natural gas-capable equipment.
The Proppant Production segment started to see incremental improvement as we moved through the third quarter, although natural gas-directed activity was subdued and West Texas remains highly competitive. We anticipate that pricing and volumes in the fourth quarter will be impacted by weaker demand. We continue to actively manage operating costs to partially mitigate the impact of lower profitability. We expect a recovery in activity in 2025 relative to the fourth quarter, with a more pronounced potential improvement in oil-levered regions.
Business Segment Information
The Stimulation Services segment generated revenues of $507.1 million in the third quarter, which resulted in $112.6 million of Adjusted EBITDA.
The Proppant Production segment generated revenues of $52.8 million in the third quarter, which resulted in $17.3 million of Adjusted EBITDA. Approximately 24% of the Proppant Production segment’s revenue was intercompany.
The Manufacturing segment generated revenues of $61.5 million in the third quarter, which resulted in $0.1 million of Adjusted EBITDA. Approximately 80% of the Manufacturing segment’s revenue was intercompany.
Our Other Business Activities generated revenues of $51.3 million in the third quarter, which resulted in $4.8 million of Adjusted EBITDA. The Other Business Activities solely relate to the results of Flotek.
Capital Expenditures and Capital Allocation
Cash capital expenditures totaled $70 million in the third quarter, approximately flat from the prior quarter.
For the full year 2024, the Company expects to incur capital expenditures closer to the lower end of previously provided guidance. Maintenance-related capital expenditures are expected to be approximately $150 million to $200 million, while growth-related capital expenditures across all segments are expected to total approximately $100 million in 2024. The Company continues to monitor market conditions, industry dynamics and customer demand to appropriately align spending levels and growth initiative timelines. Currently, growth capital expenditures for 2024 are expected to be primarily related to frac fleet upgrades, investments in next generation technologies, and sand mine improvements.
Balance Sheet and Liquidity
Total debt outstanding as of September 30, 2024 was $1.17 billion. Net debt(3) outstanding as of September 30, 2024 was $1.18 billion.
Total cash and cash equivalents as of September 30, 2024 was $25.5 million, of which $5.0 million was related to Flotek and not accessible by the Company.
As of September 30, 2024 the Company had $109.2 million of liquidity, including approximately $20.5 million in cash and cash equivalents, excluding Flotek, and $88.7 million of availability under its asset-based credit facility.
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Footnotes |
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(1) |
Adjusted EBITDA is a financial measure not presented in accordance with generally accepted accounting principles (“GAAP”) (a “Non-GAAP Financial Measure”). Please see “Non-GAAP Financial Measures” at the end of this news release. |
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(2) |
Free Cash Flow is a Non-GAAP Financial Measure. Please see “Non-GAAP Financial Measures” at the end of this news release. |
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(3) |
Net Debt is a Non-GAAP Financial Measure. Please see “Non-GAAP Financial Measures” at the end of this news release. |
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources. The Company operates through three business segments: stimulation services, proppant production and manufacturing. For more information, please visit ProFrac’s website at www.PFHoldingsCorp.com.
