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ProFrac
🇺🇸 NASDAQ:ACDC
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OverviewEarningsDividends
•
Jun 30, 2024

ProFrac Q2 2024 Earnings Report

Reported lower results due to market softness and operators reducing drilling and completion activity.

Key Takeaways

ProFrac reported sequentially lower results in Q2 2024 due to market challenges, particularly in natural gas regions, as operators reduced drilling and completion activity. However, the company achieved records for average pump hours per fleet and efficiencies while upgrading its fleet with electric and Tier 4 dual fuel systems.

Achieved records for average pump hours per fleet and efficiencies.

Upgraded fleet with additional electric and Tier 4 dual fuel systems.

Fielding new inbound requests for additional deployments with high demand for electric and Tier 4 dual fuel technologies.

70% of active fleets include e-fleet or natural gas-capable equipment.

Total Revenue
$579M
Previous year: $709M
-18.3%
EPS
$0.02
Previous year: -$0.02
-200.0%
Gross Profit
$82.9M
Previous year: $133M
-37.4%
Cash and Equivalents
$24M
Previous year: $26.9M
-10.8%
Free Cash Flow
$52.7M
Previous year: $55.6M
-5.2%
Total Assets
$3.16B
Previous year: $3.45B
-8.3%

ProFrac

ProFrac

ProFrac Revenue by Segment

Forward Guidance

In the Stimulation Services segment, the Company anticipates pricing will remain steady. In the Proppant Production segment, the Company currently anticipates that total volumes and pricing will continue to decline followed by a gradual recovery.

Positive Outlook

  • Pricing will remain steady in Stimulation Services.
  • Opportunities to further improve profitability per fleet due to superior cost structure and operating leverage.
  • Fielding new inbound requests for additional integrated fleet deployments with the highest demand for electric and Tier 4 dual fuel technologies.
  • Reduction in profitability in Proppant Production segment will be partially offset by operating cost reductions.
  • Idling of one underperforming mine in the Haynesville region.

Challenges Ahead

  • Market for services has been challenged as operators have reduced drilling and completion activity.
  • Market softness in the second quarter led to sequentially lower results.
  • Total volumes and pricing will continue to decline in Proppant Production segment.
  • Goodwill impairment of $67.7 million related to the Company’s Haynesville Proppant reporting unit.
  • Approximately 74% of the Manufacturing segment’s revenue was intercompany.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View ProFrac