Revenue and Financial Performance - Total revenue for Q3 2024 was $575.3 million, compared to $579.4 million in Q2 2024[3] - Total revenues for the nine months ended September 30, 2024, were $1,736.2 million, compared to $2,140.9 million for the same period in 2023, reflecting a decrease of 18.9%[27] - Total revenues for the nine months ended September 30, 2024, were $1,736.2 million, compared to $2,140.9 million for the same period in 2023, representing a decrease of 18.9%[30] - Stimulation services revenue for the nine months ended September 30, 2024, was $1,530.0 million, down 18.9% from $1,887.9 million in the same period of 2023[30] - Proppant production revenue for the nine months ended September 30, 2024, was $200.0 million, a decrease of 31.1% from $290.4 million in the same period of 2023[30] Net Loss and Income - Net loss for Q3 2024 was $43.5 million, an improvement from a net loss of $65.6 million in Q2 2024[3] - Net loss attributable to ProFrac Holding Corp. for the nine months ended September 30, 2024, was $110.1 million, compared to a net income of $0.2 million for the same period in 2023[27] - Net income (loss) for the nine months ended Sep. 30, 2024 was $(106.1) million, compared to $37.3 million in the same period of 2023[28] Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $134.8 million, slightly down from $135.6 million in Q2 2024[3] - The Stimulation Services segment generated $507.1 million in revenue and $112.6 million in Adjusted EBITDA for Q3 2024[7] - The Proppant Production segment generated $52.8 million in revenue and $17.3 million in Adjusted EBITDA for Q3 2024[7] - Adjusted EBITDA for the nine months ended Sep. 30, 2024 was $430.3 million, down from $578.9 million in the same period of 2023[29] - Total adjusted EBITDA for the nine months ended September 30, 2024, was $430.3 million, down 25.7% from $578.9 million in the same period of 2023[30] Cash Flow and Capital Expenditures - Net cash provided by operating activities in Q3 2024 was $98.0 million, compared to $113.5 million in Q2 2024[3] - Capital expenditures in Q3 2024 totaled $70.0 million, approximately flat from the prior quarter[9] - Net cash provided by operating activities for the nine months ended Sep. 30, 2024 was $290.8 million, down from $510.8 million in the same period of 2023[28] - Investment in property, plant & equipment for the nine months ended Sep. 30, 2024 was $191.8 million, compared to $233.9 million in the same period of 2023[28] - Net cash used in investing activities for the nine months ended Sep. 30, 2024 was $351.8 million, compared to $687.4 million in the same period of 2023[28] - Free cash flow for the three months ended September 30, 2024, was $30.9 million, a decrease of 58.2% from $74.0 million in the previous quarter[32] - Investment in property, plant & equipment for the three months ended September 30, 2024, was $70.0 million, up 13.1% from $61.9 million in the previous quarter[32] Debt and Liabilities - Total debt outstanding as of September 30, 2024 was $1.17 billion, with net debt at $1.18 billion[11] - Long-term debt rose to $986.7 million as of September 30, 2024, from $923.5 million as of December 31, 2023, indicating a 6.8% increase[26] - Total current liabilities increased to $714.5 million as of September 30, 2024, from $648.9 million as of December 31, 2023, representing a 10.1% increase[26] - Net debt as of September 30, 2024, was $1,180.2 million, an increase of 9.0% from $1,082.6 million as of December 31, 2023[31] Assets and Receivables - Total assets increased to $3,135.8 million as of September 30, 2024, from $3,070.7 million as of December 31, 2023, representing a growth of 2.1%[25] - Accounts receivable increased to $358.2 million as of September 30, 2024, from $346.1 million as of December 31, 2023, reflecting a 3.5% increase[25] - Cash and cash equivalents remained relatively stable at $25.5 million as of September 30, 2024, compared to $25.3 million as of December 31, 2023[25] Operating Performance - Operating income for the nine months ended September 30, 2024, was a loss of $13.6 million, compared to an income of $180.9 million for the same period in 2023[27] - Selling, general, and administrative expenses for the nine months ended September 30, 2024, were $156.6 million, compared to $186.0 million for the same period in 2023, reflecting a 15.8% decrease[27] - Depreciation, depletion and amortization for the nine months ended Sep. 30, 2024 was $328.9 million, compared to $330.7 million in the same period of 2023[28] - Interest expense, net for the nine months ended Sep. 30, 2024 was $117.8 million, compared to $116.1 million in the same period of 2023[29] - Stock-based compensation for the nine months ended Sep. 30, 2024 was $6.1 million, compared to $27.3 million in the same period of 2023[28] Goodwill Impairment - Goodwill impairment for the nine months ended September 30, 2024, was $74.5 million, compared to no impairment in the same period in 2023[27] - Goodwill impairment for the nine months ended Sep. 30, 2024 was $74.5 million, compared to $0 in the same period of 2023[28] Financing Activities - Net cash provided by (used in) financing activities for the nine months ended Sep. 30, 2024 was $61.2 million, compared to $164.5 million in the same period of 2023[28] Future Outlook - The company expects a recovery in activity in 2025 compared to Q4 2024, particularly in oil-levered regions[6] Equipment and Fleet - Approximately 72% of the company's active fleets include e-fleet or natural gas-capable equipment[5]

Financial Performance - Total revenue for Q3 2024 was $575.3 million, slightly down from $579.4 million in Q2 2024 [2] - Net loss improved to $43.5 million from a loss of $65.6 million in the previous quarter [2] - Adjusted EBITDA was $134.8 million, a slight decrease from $135.6 million in Q2 2024 [2] - Net cash provided by operating activities was $98.0 million, down from $113.5 million in Q2 2024 [2] - Free cash flow for the quarter was $30.9 million [2] Business Segments - The Stimulation Services segment generated revenues of $507.1 million with an Adjusted EBITDA of $112.6 million [6] - The Proppant Production segment had revenues of $52.8 million and an Adjusted EBITDA of $17.3 million [6] - The Manufacturing segment reported revenues of $61.5 million with minimal Adjusted EBITDA of $0.1 million [7] - Other Business Activities generated revenues of $51.3 million and an Adjusted EBITDA of $4.8 million [7] Capital Expenditures and Outlook - Capital expenditures totaled $70 million in Q3 2024, remaining flat compared to the previous quarter [8] - For the full year 2024, capital expenditures are expected to be at the lower end of previous guidance, with maintenance-related expenditures projected at $150 million to $200 million [9] - The company anticipates a decline in pricing and activity in the Stimulation Services segment for Q4 2024 but expects a recovery in 2025 [4] Balance Sheet and Liquidity - Total debt outstanding as of September 30, 2024, was $1.17 billion, with net debt at $1.18 billion [10] - Total cash and cash equivalents were $25.5 million, with $5.0 million related to Flotek and not accessible by the company [10] - The company had $109.2 million of liquidity, including approximately $20.5 million in cash and cash equivalents [11] Operational Efficiency - The company set new operating efficiency records per active fleet, demonstrating strong performance despite a challenging market [3] - Approximately 72% of active fleets include electric or natural gas-capable equipment, indicating a focus on integrated and efficient solutions [4]

Company Overview - ProFrac Holding Corp. is expected to report a quarterly loss of $0.14 per share, reflecting a year-over-year decline of 55.6% [3] - Revenues are anticipated to be $538.55 million, down 6.2% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for November 5, 2024, and could influence stock movement depending on whether the results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised down by 2166.67% over the last 30 days, indicating a significant reassessment by analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for ProFrac is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] - The stock currently holds a Zacks Rank of 5 (Strong Sell), complicating predictions of an earnings beat [10][11] Historical Performance - In the last reported quarter, ProFrac was expected to post earnings of $0.14 per share but only achieved $0.02, resulting in a surprise of -85.71% [12] - The company has not beaten consensus EPS estimates in any of the last four quarters [13] Industry Context - In the Zacks Alternative Energy - Other industry, Crescent Energy is expected to post earnings of $0.28 per share for the same quarter, indicating a year-over-year change of -20% [17] - Crescent Energy's revenue is projected to be $802.14 million, up 24.9% from the previous year [17]

Core Viewpoint - ProFrac Holding Corp. will report its third quarter 2024 financial results on November 5, 2024, with a live conference call available for stakeholders [1]. Group 1: Company Overview - ProFrac Holding Corp. is a technology-focused, vertically integrated energy services holding company that provides hydraulic fracturing, proppant production, and related services to upstream oil and natural gas companies in North America [2]. - The company operates through three business segments: stimulation services, proppant production, and manufacturing [2]. Group 2: Financial Reporting Details - The financial results will be announced prior to a conference call scheduled for November 5, 2024, at 11:00 a.m. Eastern / 10:00 a.m. Central [1]. - Stakeholders can access the call via phone or live over the Internet, with a replay available until November 12, 2024 [1].

Group 1 - ProFrac Holding Corp. (ACDC) is experiencing significant activity in the options market, particularly with the Nov 15, 2024 $2.5 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - ProFrac Holding currently holds a Zacks Rank 5 (Strong Sell) in the Alternative Energy - Other industry, which is in the bottom 31% of the Zacks Industry Rank, with recent earnings estimates being revised downward from 17 cents to 8 cents per share [3] Group 2 - The high implied volatility surrounding ProFrac Holding may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Investment Thesis - ProFrac Holding is experiencing resilient and growing cash flows despite hitting relative all-time lows, with a sequential growth of 187% in free cash flow for Q2 2024, leading to a buy rating for shares [1] Company Overview - ProFrac Holding is a vertically integrated energy services company providing hydraulic fracturing and complementary services to upstream oil and gas companies, with 87% of revenues coming from Stimulation Services [2] Market Dynamics - The company's revenues are cyclical and directly linked to oil and gas demand, with increased drilling activity leading to higher revenues and pricing power [3] - ProFrac has made several acquisitions to enhance its service offerings and vertical integration, positioning itself as a low-cost operator in the fracking industry [4] Financial Performance - In Q2 2024, ProFrac generated $74 million in free cash flow, demonstrating its ability to navigate market challenges despite a weak natural gas market [5] - The company expects to maintain a minimum revenue of $2 billion going forward, with a conservative estimate of $140 million in annual free cash flow based on current performance [6] Valuation - The stock is considered undervalued with a fair value estimate of $9, based on free cash flow projections and a low price-to-sales ratio of 0.46 compared to the sector median of 1.37 [6] Strategic Positioning - ProFrac's acquisitions and vertical integration strategy enhance its competitive edge, allowing it to offer a full-service solution to E&P companies and improve economies of scale [4]

分组1 - ProFrac Holding Corp. reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.14 per share, and down from $0.13 per share a year ago, representing an earnings surprise of -85.71% [1] - The company posted revenues of $579.4 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 7.24%, and down from $709.2 million year-over-year [1] - ProFrac Holding Corp. has not surpassed consensus EPS or revenue estimates over the last four quarters [1] 分组2 - The stock has lost about 28% since the beginning of the year, while the S&P 500 has gained 11.5% [2] - The current consensus EPS estimate for the coming quarter is $0.17 on revenues of $624.33 million, and for the current fiscal year, it is $0.43 on revenues of $2.44 billion [4] - The Zacks Industry Rank for Alternative Energy - Other is currently in the bottom 40% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [5] 分组3 - ReNew Energy Global PLC, another company in the same industry, is expected to report quarterly earnings of $0.08 per share, reflecting a year-over-year change of -11.1%, with revenues expected to be $344.6 million, up 14.9% from the year-ago quarter [5][6]

Financial Performance - Total revenue for Q2 2024 was $579.4 million, a decrease of 18.3% from $709.2 million in Q2 2023[122]. - Net loss for Q2 2024 was $66.7 million, compared to a loss of $2.9 million in Q2 2023, including a goodwill impairment charge of $67.7 million[122][137]. - Stimulation services revenue decreased by 17% in Q2 2024 to $505.6 million, primarily due to lower active fleets and pricing[124]. - Proppant production revenue fell by 37% in Q2 2024 to $69.5 million, attributed to lower average prices and reduced volumes sold[125]. - Manufacturing revenue increased by 80% in Q2 2024 to $55.9 million, driven by higher intercompany demand[126]. - Cash provided by operating activities for the first half of 2024 was $192.6 million, down 50.3% from $387.2 million in the same period of 2023[122]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $192.6 million, down from $387.2 million in 2023, representing a decrease of 50.3%[152]. Expenses and Impairments - Selling, general and administrative expenses decreased by 14.7% in Q2 2024 to $54.1 million compared to $63.5 million in Q2 2023[132][134]. - Goodwill impairment of $67.7 million was recorded due to reduced activity levels in the Haynesville basin, impacting the proppant reporting unit[137]. - Litigation expenses for the three months ended June 30, 2024, were $9.2 million, compared to $7.4 million for the same period in 2023, indicating a 24.3% increase[139]. Debt and Liquidity - Total long-term debt rose to $1,234.4 million as of June 30, 2024, an increase of $126.5 million from December 31, 2023[122]. - The company had $1,234.4 million in long-term debt outstanding as of June 30, 2024, with $174.4 million due within the next twelve months[155]. - As of June 30, 2024, the company had $19.2 million in cash and cash equivalents and $142.0 million available under its revolving credit facility, totaling $161.2 million in liquidity[148]. - A 1% increase in interest rates on variable-rate debt as of June 30, 2024, would increase annual interest payments by approximately $11.4 million[164]. Capital Expenditures and Commitments - Capital expenditures for the six months ended June 30, 2024, were $121.8 million, with full-year estimates ranging from $150 million to $200 million for maintenance and an additional $100 million for growth initiatives[157]. - Purchase commitments as of June 30, 2024, were $32.2 million for 2024 and $44.7 million for 2025, related to minimum sand commitments and hydraulic fracturing equipment[159]. Tax and Interest - The effective tax rate for the six months ended June 30, 2024, was 27.2%, compared to 22.8% in the same period in 2023[145]. - Interest expense for the six months ended June 30, 2024, was $77.2 million, consistent with $75.9 million in the same period in 2023, showing a slight increase of 1.7%[142]. Acquisitions - The company acquired BPC for $39.8 million and AST for $174.0 million in June 2024, expanding its service capabilities[123].

Financial Data and Key Metrics Changes - In Q2 2024, ProFrac generated $579 million in revenue, flat sequentially, with adjusted EBITDA of $136 million, representing a 15% decline from Q1 [23][11] - The adjusted EBITDA margin was 23%, with free cash flow of $74 million generated during the quarter [23][11] - Total cash and cash equivalents as of June 30 were $24 million, with total liquidity at approximately $161 million [30] Business Line Data and Key Metrics Changes - Stimulation Services revenues were $506 million, in line with Q1, but adjusted EBITDA declined by approximately 14% to $107 million [24] - Proppant Production segment generated $70 million in revenue, an 11% sequential decline, with adjusted EBITDA of $26 million, a 10% decrease [25][26] - Manufacturing segment revenues increased by approximately 29% to $56 million, but adjusted EBITDA declined by $4.3 million to approximately $100,000 [27] Market Data and Key Metrics Changes - The market for ProFrac's services faced challenges due to reduced drilling and completion activity, particularly in natural gas regions [10] - The horizontal rig count declined by 6% during the quarter, reflecting a reevaluation of planned activity and spending by operators [19] - Despite market headwinds, ProFrac increased market share in West Texas, the leading U.S. land market for unconventional completions [11] Company Strategy and Development Direction - ProFrac aims to leverage its leading position in the completions value chain and continue investing in next-generation equipment, particularly for diesel substitution [13][14] - The company executed a strategic acquisition of Advanced Stimulation Technologies (AST) to enhance its earnings profile and market position [13][42] - ProFrac's strategy focuses on integrated solutions and operational efficiency to navigate market challenges and generate free cash flow [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery in natural gas markets, planning for a flat environment while seeking opportunities for growth [46][47] - The company is focused on cost management and operational efficiencies, with expectations for potential EBITDA growth in Q3 [40][41] - Management emphasized the importance of maintaining strong customer relationships and delivering best-in-class service to drive margin expansion [53] Other Important Information - Selling, general, and administrative expenses increased to $54 million, primarily due to stock-based compensation [28] - Total debt outstanding at the end of Q2 was approximately $1.2 billion, with plans to utilize free cash flow for deleveraging [30] Q&A Session Summary Question: Competitive advantage in the evolving industry - Management highlighted that next-gen fuel-efficient fleets provide a competitive advantage, and the focus is on integrated solutions to maintain customer relationships [32][35] Question: Pricing and profitability outlook for the second half of the year - Management expects pricing to remain relatively flat, focusing on controllable factors like cost structure and inventory management [36][37] Question: Potential for EBITDA growth in Q3 - Management acknowledged the potential for growth but emphasized the need to execute on the integrated model while managing costs [40] Question: Strategic rationale for the AST acquisition - The acquisition was seen as a valuable addition to the portfolio, enhancing market position and complementing the company's strategy [41][42] Question: Outlook for gas activity and market conditions - Management expressed cautious optimism for gas markets, planning for a flat environment while monitoring customer activity [46][47] Question: Fleet count and profitability considerations - Management indicated opportunities for improving fleet count and efficiencies, with a focus on maintaining mid-teens EBITDA per fleet [48][49]

Financial Performance - Total revenue for Q2 2024 was $579.4 million, a slight decrease from $581.5 million in Q1 2024[1] - Net loss for Q2 2024 was $65.6 million, compared to a net income of $3.0 million in Q1 2024[1] - Adjusted EBITDA for Q2 2024 was $135.6 million, down from $159.7 million in Q1 2024[1] - Total revenues for the quarter ended June 30, 2024, were $579.4 million, a decrease of 18.3% compared to $709.2 million for the same period in 2023[24] - The company reported an operating loss of $49.2 million for the quarter, compared to an operating income of $53.7 million in the same quarter last year[24] - Net loss attributable to ProFrac Holding Corp. was $66.7 million for the quarter, compared to a net income of $22.0 million in the same quarter of the previous year[24] - Adjusted EBITDA for the three months ended June 30, 2024, was $135.6 million, down from $159.7 million in the previous quarter and $182.5 million in the same period last year[27] - Total revenues for the three months ended June 30, 2024, were $579.4 million, a decrease of 17.3% compared to $709.2 million for the same period in 2023[28] - Adjusted EBITDA for the three months ended June 30, 2024, was $135.6 million, down 25.7% from $182.5 million in the same period last year[28] - The company reported a total adjusted EBITDA of $295.3 million for the six months ended June 30, 2024, compared to $429.6 million for the same period in 2023, a decrease of 31.2%[28] Cash Flow and Investments - Free cash flow increased by 187% sequentially to $74.0 million in Q2 2024[1] - The company generated $113.5 million in net cash provided by operating activities for the three months ended June 30, 2024, an increase from $79.1 million in the previous quarter but a decrease from $153.7 million in the same period last year[25] - ProFrac's net cash used in investing activities was $231.5 million for the three months ended June 30, 2024, compared to $53.3 million in the previous quarter[25] - The company made acquisitions net of cash acquired amounting to $194.4 million during the three months ended June 30, 2024[25] Debt and Liabilities - Total debt outstanding increased to $1.20 billion as of June 30, 2024, up from $1.05 billion in Q1 2024[7] - Total liabilities rose to $1,891.4 million, an increase of 8.6% from $1,742.1 million at the end of 2023[22] - Net debt as of June 30, 2024, increased to $1,210.4 million from $1,082.6 million at December 31, 2023, reflecting a rise of 11.8%[29] - Total principal amount of debt as of June 30, 2024, was $1,234.4 million, up from $1,107.9 million at December 31, 2023, an increase of 11.4%[29] Segment Performance - The Stimulation Services segment generated revenues of $505.6 million with an Adjusted EBITDA of $107.3 million in Q2 2024[5] - The Proppant Production segment reported revenues of $69.5 million and recognized a goodwill impairment of $67.7 million[5] - The company anticipates a gradual recovery in total volumes and pricing in the Proppant Production segment despite current declines[4] - Stimulation services revenue for the three months ended June 30, 2024, was $505.6 million, a decrease of 16.9% from $608.2 million in the same period last year[28] - Proppant production revenue for the three months ended June 30, 2024, was $69.5 million, down 36.7% from $109.8 million in the same period last year[28] - Manufacturing segment revenue increased to $55.9 million for the three months ended June 30, 2024, compared to $31.1 million in the same period last year, marking an increase of 79.4%[28] Asset Management - Current assets increased to $703.9 million as of June 30, 2024, from $638.1 million at the end of 2023, representing a growth of 10.3%[22] - Cash and cash equivalents decreased slightly to $24.0 million from $25.3 million at the end of 2023[22] - Accounts receivable increased to $378.8 million, up from $346.1 million, indicating a growth of 9.5%[22] Goodwill and Impairments - The company recorded a goodwill impairment of $67.7 million during the quarter[24] - The company incurred a goodwill impairment of $67.7 million during the three months ended June 30, 2024, which was the same amount as the previous year[27] Future Outlook and Plans - The Company expects capital expenditures for 2024 to be approximately $150 million to $200 million for maintenance and $100 million for growth-related initiatives[6] - ProFrac Holding Corp. has indicated plans for market expansion and new product development in the upcoming quarters[24] - 70% of active fleets now include electric or natural gas-capable equipment, reflecting a shift towards more sustainable technologies[3]