Profrac Holding Corp. has reported its financial and operational results for the third quarter ended September 30, 2024, showing both positives and challenges. Here are the key highlights:
- Total revenue for the third quarter was $575.3 million, slightly down from the second quarter revenue of $579.4 million.
- However, the company's net loss improved significantly, standing at $43.5 million for the third quarter compared to a net loss of $65.6 million in the second quarter.
- Adjusted EBITDA for the third quarter was $134.8 million, slightly lower than the $135.6 million in the second quarter.
- Net cash provided by operating activities was $98.0 million for the third quarter, down from $113.5 million in the second quarter.
- Capital expenditures totaled $70.0 million, and free cash flow was $30.9 million for the third quarter.
The company's executive chairman, Matt Wilks, highlighted the record-setting efficiency per active fleet, emphasizing the quality and commitment of the company's workforce to safety, efficiency, and premium customer service.
Looking ahead, Profrac Holding Corp. anticipates pricing and activity to decline in the fourth quarter in the stimulation services segment, but it aims to navigate cyclicality without sacrificing service and asset quality. The company also expects a recovery in activity in 2025 compared to the fourth quarter of 2024.
Business segment information revealed that the stimulation services segment generated revenues of $507.1 million in the third quarter, resulting in $112.6 million of adjusted EBITDA. Meanwhile, the proppant production segment and the manufacturing segment also contributed to the company's overall performance.
In terms of capital expenditures and allocation, the company incurred cash capital expenditures totaling $70 million in the third quarter, and it expects to align spending levels and growth initiative timelines with market conditions and customer demand.
The company's balance sheet and liquidity position showed total debt outstanding as of September 30, 2024, at $1.17 billion, with net debt outstanding at $1.18 billion. Total cash and cash equivalents were $25.5 million, and the company had $109.2 million of liquidity, including approximately $20.5 million in cash and cash equivalents.
Profrac Holding Corp. is a technology-focused, vertically integrated energy services holding company providing hydraulic fracturing, proppant production, completion services, and complementary products to leading upstream oil and natural gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources.
The company is expected to hold a conference call on November 5, 2024, to discuss these results in more detail and provide further insights into its performance and outlook. Today the company's shares have moved 11.7% to a price of $6.97. For the full picture, make sure to review ProFrac's 8-K report.
