ProFrac (ACDC) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q1 2022, U.S. Well Services generated approximately $41.2 million in revenue, with an adjusted EBITDA loss of$ 3.5 million, compared to a loss of $7.9 million in Q4 2021 [7][15]. - Total revenue increased by 6% sequentially from$ 38.9 million in Q4 2021, with service and equipment revenue rising by 17% quarter-over-quarter [14][15]. - The company ended Q1 2022 with $41 million in cash and restricted cash, and$ 8.5 million of ABL availability [16]. Business Line Data and Key Metrics Changes - The average cash G&A per active fleet increased to approximately $5.7 million in Q1 2022, compared to$ 4.75 million in the previous three quarters [8]. - Revenue from materials such as sand, chemicals, and trucking declined by 45% sequentially, as no sand was provided to customers during Q1 2022 [14]. Market Data and Key Metrics Changes - The company averaged 4.7 active fleets during the quarter with a utilization rate of 94%, resulting in 4.4 fully utilized fleets [14]. - The month of March 2022 alone accounted for over $20 million in revenue, representing 49% of the total quarterly revenue [9]. Company Strategy and Development Direction - U.S. Well Services is transitioning to an all-electric fleet, with plans to deploy new Nyx Clean Fleets throughout 2022, aiming to meet customer needs with high-spec electric horsepower [12][17]. - The company believes that the electric segment offers premium pricing and lower maintenance costs, positioning itself favorably in the market [10][11]. Management's Comments on Operating Environment and Future Outlook - Management noted that the pressure pumping industry is experiencing tight capacity and rising prices, with most service providers sold out [11]. - The company expects to see continued improvement in revenue and profitability as more fleets are deployed and operational efficiencies are realized [22]. Other Important Information - The company is facing inflationary pressures, with costs increasing by 8% to 10% for most items compared to 2021 levels [15]. - U.S. Well Services plans to spend approximately$ 95 to $115 million over the remainder of the year to complete the build-out of new fleets [16]. Q&A Session Summary Question: Can you speak to some of the components parts that you may have pre-purchased for the new build program in 2023? - Management confirmed that some longer lead time components have been secured, allowing for potential fleet deliveries in early 2023, but no commitments have been made yet [19]. Question: Is the guidance for Q2 including one diesel fleet? - Management clarified that the guidance for Q2 includes one diesel fleet [20]. Question: What are the drivers of EBITDA per fleet, and is break-even possible in Q2 2022? - Management indicated that increased revenue and more fleets in the field are key drivers for improved EBITDA per fleet, with expectations for continued improvement throughout the year [22].