Profrac Holding Corp. (NASDAQ: ACDC) has released its financial and operational results for the full year and fourth quarter of 2023. The company operates as a vertically integrated energy services company providing well stimulation services, proppants production, and other complementary products and services to oil and gas companies in the United States. Here are the key highlights from the report:
2023 Full Year Results: Total revenue for 2023 was $2.63 billion, marking an increase from $2.43 billion in 2022. The company reported a net loss of $59 million for 2023, a significant change from the net income of $343 million in 2022. Adjusted EBITDA was $688 million. Net cash provided by operating activities stood at $554 million. Capital expenditures totaled $267 million. Free cash flow increased by 173% from 2022, reaching $293 million. * The net debt as of December 31, 2023, was $1.08 billion.
2023 Fourth Quarter Results: Total revenue for the fourth quarter of 2023 was $489 million, a decrease from $574 million in the third quarter of 2023. The net loss for the fourth quarter was $97 million, a significant change from a net loss of $18 million in the third quarter of 2023. Adjusted EBITDA for the fourth quarter was $110 million. Net cash provided by operating activities was $43 million. Capital expenditures totaled $33 million. Free cash flow for the fourth quarter was $13 million.
Business Segment Information: The stimulation services segment generated revenues of $2.29 billion for the full year 2023, resulting in $480 million of adjusted EBITDA. The proppant production segment generated revenues of $383 million for the full year 2023, resulting in $196 million of adjusted EBITDA. The manufacturing segment generated revenues of $176 million for the full year 2023, resulting in $15 million of adjusted EBITDA. Other business activities generated revenues of $193 million for the full year 2023, resulting in ($1.6) million of adjusted EBITDA.
Capital Expenditures and Capital Allocation: * Cash capital expenditures in the fourth quarter and full year 2023 totaled $33 million and $267 million, respectively. This reflected a 25% reduction compared to 2022, attributed to the market softness experienced in the second half of 2023.
Balance Sheet and Liquidity: Total net debt outstanding as of December 31, 2023, was $1.08 billion, reflecting an increase of approximately $27 million from the third quarter. The company had $103 million of liquidity, including $19 million in cash and cash equivalents, excluding Flotek, and $83 million of availability under its asset-based credit facility.
Outlook: In the stimulation services segment, the company has activated 10 fleets since the start of the fourth quarter, and it expects increased profitability levels for 2024. The company expects modest improvement to mine utilization in the first quarter of 2024 in the proppant production segment.
Today the company's shares have moved -2.1% to a price of $7.76. Check out the company's full 8-K submission here.
