Financial Data and Key Metrics Changes - U.S. Well Services reported total revenue of 38.9millionforQ42021,down3156.5 million in Q3 2021, largely due to nonproductive time related to sand and water constraints [13][14] - Adjusted EBITDA for Q4 2021 was a loss of 7.9million,withtotalliquidityat20.2 million at year-end, which increased to 84.6millionafterrecentcapitalraises[15][16]−Thecompanygenerated250 million in revenue for the full year 2021, a modest increase from 244millionin2020,withanetlossof70.6 million compared to 229.3millionin2020[18][19]BusinessLineDataandKeyMetricsChanges−TheaverageactivefleetcountduringQ4wasfive,withautilizationrateof8241.4 million, down 29% sequentially, attributed to a lower active fleet count and a 50% reduction in sand and consumables sold [14] - SG&A expenses decreased to 6.8millioninQ4from11.1 million in Q3, primarily due to reduced personnel costs [14] Market Data and Key Metrics Changes - The company faced significant operational challenges due to a lack of truck drivers and customers' inability to obtain necessary sand and water, resulting in 67 days of nonproductive time in Q4 [8][13] - Diesel prices rose to over 5pergallonfrom3.50 in Q4, leading to potential savings of 1.25millionperfleetpermonthforcustomers[10]CompanyStrategyandDevelopmentDirection−U.S.WellServicesistransitioningawayfromconventionaldieselfleets,reducingitsactivefleetcountfrom11inQ1tofivebyQ3,andisfocusingonelectriccleanfleets[7][8]−ThecompanyplanstorolloutfournewNyxCleanFleetsstartinginQ22022,whichareexpectedtocommandpremiumpricingduetotheiroperationalefficiencies[9][10]−Managementbelievesthefutureisbrightforthecompany,emphasizingtheadvantagesofelectricpressurepumpingtechnologyintermsofeconomicsandenvironmentalbenefits[21]ManagementCommentsonOperatingEnvironmentandFutureOutlook−ManagementacknowledgedthedifficultiesfacedduringthestrategictransformationandmacroeconomicheadwindsbutexpressedconfidenceinimprovedresultsstartinginQ22022asnewfleetsaredeployed[8][9]−Thereisanexpectationofincreaseddemandfornext−generationsolutions,suchaselectriccleanfleets,whichpositionsthecompanyfavorablyinthemarket[9][10]OtherImportantInformation−Thecompanyexecutedover40assetsalestoraiseapproximately120 million and reduced its senior secured term loan by $125.6 million during 2021 [7] - U.S. Well Services secured a 0% interest rate for Q1 2022 and a 1% cash interest rate for the remainder of the year, resulting in significant cash savings [17] Q&A Session Summary Question: Expected increase in profitability with fleet rollout - Management indicated that profitability is expected to increase as new fleets are deployed, with the first fleet going to work in Q2 and the last two fleets by Q4 [24][25] Question: Impact of frac sand and mine constraints - Management noted that benefits from new fleets are anticipated to begin in Q2, addressing inefficiencies caused by sand and water constraints [26][27]
ProFrac (ACDC)2022-03-31 18:31