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Dec 31, 2023

ProFrac Q4 2023 Earnings Report

ProFrac's Q4 2023 results were challenged due to persistent softness throughout the second half of the year, but the company grew free cash flow generation and took steps to position for future success.

Key Takeaways

ProFrac's Q4 2023 results were impacted by lower commodity prices and decreased activity levels. However, the company grew its free cash flow generation and focused on strategic priorities to improve its position in the oilfield services industry.

The company focused on three key strategic priorities: providing safe, superior services and improving the overall experience for our customers.

The company focused on three key strategic priorities: improving utilization in every aspect of our business.

The company focused on three key strategic priorities: achieving the lowest operating costs per unit in the industry.

The company has activated 10 fleets since the start of the fourth quarter.

Total Revenue
$489M
Previous year: $794M
-38.4%
EPS
-$0.6
Previous year: $0.82
-173.2%
Average Active Fleets
32
Adjusted EBITDA Margin
22.4%
Gross Profit
$58.4M
Previous year: $234M
-75.0%
Cash and Equivalents
$25M
Previous year: $35.1M
-28.8%
Free Cash Flow
$9.6M
Previous year: $41.8M
-77.0%
Total Assets
$3.07B
Previous year: $2.93B
+4.7%

ProFrac

ProFrac

ProFrac Revenue by Segment

Forward Guidance

The Company expects increased profitability levels for 2024. In the Proppant Production segment, the Company expects modest improvement to mine utilization in the first quarter of 2024 with pricing per ton in the $25 - $30 dollar range, based on metrics to-date. In the second quarter of 2024, the Company expects to further improve utilization to 65-75%.

Positive Outlook

  • The higher fleet count, combined with higher expected pumping hours and the cost actions that have been put into place will help offset any pricing pressures and allow for increased profitability levels for 2024.
  • The Company expects modest improvement to mine utilization in the first quarter of 2024 with pricing per ton in the $25 - $30 dollar range, based on metrics to-date.
  • The Company expects to further improve utilization to 65-75% in the second quarter of 2024.
  • The Company has activated 10 fleets since the start of the fourth quarter.
  • The company has increased its fleet count for the start of the year with improved pumping efficiencies across all active fleets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income