As of June 6, 2025, two stocks in the energy sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzing ...

Core Viewpoint - Flotek Industries (FTK) is strategically expanding its Data Analytics Services (DAS) segment through the acquisition of mobile gas monitoring and dual-fuel optimization units, aiming to build recurring, high-margin revenues from real-time gas analytics and remote power solutions [1][2]. Group 1: Acquisition Details - In April 2025, Flotek acquired 30 mobile gas monitoring and dual-fuel optimization units from ProFrac Holding Corp. for $105 million [1]. - The transaction is expected to generate $14 million in EBITDA in 2025 from 22 units already deployed under a six-year lease [2]. - Once all 30 units are operational, annual lease revenues could reach $27.4 million in 2026, nearly double the DAS segment's revenues in 2024 [2]. Group 2: Strategic Positioning - The acquisition strengthens Flotek's partnership with ProFrac and positions the company to capitalize on the growing off-grid energy market [3]. - This move enhances Flotek's competitiveness in gas analytics and on-site power management, which are critical as industries aim to reduce flaring and improve fuel efficiency [3]. Group 3: Competitive Landscape - Compared to larger rival ChampionX, which has not adopted a lease-based model for its analytics technology, Flotek's hybrid approach combines hardware with built-in analytics and long-term leases [4][5]. - ChampionX's digital revenues remain modest, and its reliance on short-cycle markets adds volatility, highlighting Flotek's differentiated strategy [4]. Group 4: Financial Performance and Estimates - Flotek's shares have increased approximately 54% year to date [8]. - The company trades at a forward price-to-earnings ratio of 24.98, significantly higher than the subindustry's 12.19 [9]. - The Zacks Consensus Estimate for Flotek's 2025 earnings indicates a 56% year-over-year improvement, with estimates of $0.53 for the current year and $0.67 for the next year [11][12].

Group 1: Earnings Performance - ProFrac Holding Corp. reported a quarterly loss of $0.11 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.32, representing an earnings surprise of 65.63% [1] - The company posted revenues of $600.3 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 22.84% and showing an increase from $581.5 million year-over-year [2] - Over the last four quarters, ProFrac has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Group 2: Stock Performance and Outlook - ProFrac Holding Corp. shares have declined approximately 41.2% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.24 on revenues of $526.07 million, and -$0.91 on revenues of $2.08 billion for the current fiscal year [7] - The Zacks Rank for ProFrac is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Alternative Energy - Other industry, to which ProFrac belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Performance - Total revenue for Q1 2025 was $600.3 million, an increase of $18.8 million or 3.2% from Q1 2024[96] - Net loss attributable to ProFrac Holding Corp. for Q1 2025 was $17.5 million, a decrease of $19.3 million from Q1 2024[96] - Stimulation Services revenue increased by $7.2 million, or 1%, to $524.5 million in Q1 2025 compared to Q1 2024[97] - Proppant Production revenue decreased by $10.4 million, or 13%, to $67.3 million in Q1 2025 due to lower average pricing[98] - Manufacturing revenue increased by $22.3 million, or 51%, to $65.8 million in Q1 2025, driven by higher intercompany demand[99] Costs and Expenses - Total cost of revenues for Q1 2025 was $419.4 million, an increase of $45.7 million or 12.2% from Q1 2024[101] - Selling, general and administrative expenses increased by $3.0 million, or 6%, to $53.6 million in Q1 2025, primarily due to labor and facility costs from acquisitions[106] Cash Flow - Cash provided by operating activities for Q1 2025 was $38.7 million, a decrease of $40.4 million from Q1 2024[96] - Net cash provided by operating activities decreased to $38.7 million in Q1 2025 from $79.1 million in Q1 2024, primarily due to lower earnings[121] - Net cash used in investing activities was $51.7 million in Q1 2025, slightly down from $53.3 million in Q1 2024[122] - Net cash provided by financing activities was $14.2 million in Q1 2025, compared to a net cash used of $22.8 million in Q1 2024[123] Debt and Capital Expenditures - Long-term debt increased by $15.5 million to $1,154.4 million as of March 31, 2025[96] - As of March 31, 2025, the company had $1,154.4 million in long-term debt, with $151.8 million due in the next twelve months[124] - Capital expenditures for Q1 2025 were $52.5 million, with full-year estimates ranging from $150 million to $175 million for maintenance and an additional $100 million to $125 million for growth initiatives[128] - The company has identified potential capital expenditure reductions of $70 million to $100 million to align with market conditions[128] Future Outlook - The company expects consolidated results to decline in Q2 2025 due to reduced capital spending by customers[94] - The company is closely monitoring compliance with a covenant requiring a maximum Total Net Leverage Ratio of 2.00 to 1.00, effective from Q1 2026[126] Tax and Interest Obligations - Estimated tax receivable agreement obligations were $86.2 million, with $3.3 million due in the next twelve months[131] - A 1% increase in interest rates on variable-rate debt would increase annual interest payments by approximately $11.1 million[136] Purchase Commitments - As of March 31, 2025, the company had purchase commitments of $41.6 million for hydraulic fracturing equipment components and proppant[130]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $600 million, a 32% increase from $455 million in Q4 2024, while adjusted EBITDA rose 83% to $130 million from $71 million in the previous quarter [7][31][20] - The adjusted EBITDA margin improved to 22% compared to 16% in Q4 2024 [31] - Free cash flow was a net use of cash of approximately $14 million, a decline of about $68 million from the previous quarter, primarily due to investments in working capital [32] Business Line Data and Key Metrics Changes - The Stimulation Services segment generated revenues of $525 million in Q1, up from $384 million in Q4, with adjusted EBITDA increasing to $105 million from $54 million [33] - The Proppant Production segment saw revenues rise to $67 million from $47 million, driven by a 53% increase in sales volumes, although EBITDA margins decreased to 27% from 31% due to ramp-up costs [34] - The Manufacturing segment's revenues increased by 6% sequentially to $66 million, with adjusted EBITDA improving to approximately $4 million [35] Market Data and Key Metrics Changes - The company noted a significant improvement in active fleet count, particularly in the Eagle Ford and Permian regions, with six fleets returning to service early in Q1 [23] - The natural gas market showed resilience, with expectations for increased activity in the second half of 2025, particularly in the Haynesville region [19][28] Company Strategy and Development Direction - The company is focused on proactive customer engagement and maintaining long-term relationships with key operators, emphasizing the importance of efficient and scalable offerings [13] - A strategic transaction with Flotek was completed, enhancing the company's capabilities in gas quality assurance and asset integrity, which is expected to drive future growth [12][28] - The company is implementing strategic adjustments to its capital allocation plan to maximize cash flow generation while ensuring high-quality service [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted economic uncertainties due to tariffs and OPEC's increased oil production, which have impacted commodity prices and spending outlooks [16][18] - There is an expectation of a decline in activity levels in Q2 relative to Q1, but operators are maintaining flexibility to resume operations when market conditions improve [19][20] - The company remains optimistic about the natural gas market and its position in the Haynesville, anticipating potential upside in the latter half of the year [19][21] Other Important Information - The company has identified potential CapEx reductions of $70 million to $100 million to align with evolving market conditions [30] - Total liquidity at the end of Q1 was approximately $76 million, with $66 million available under the ABL credit facility [36] Q&A Session Summary Question: Can you provide more specific guidance on the second quarter outlook? - Management acknowledged a pullback in Q2 but noted uncertainty regarding the extent, emphasizing customer-specific evaluations [41][42] Question: What is the capacity of the electric frac assets deployed? - Most electric fleets are on long-term contracts and remain fully utilized, with seven fleets in total [44][46] Question: Can you comment on the performance of specific fleets and what has changed recently? - Management noted record-breaking pump times across the fleet, attributing success to operations and asset management programs [53][54] Question: How do you expect Q4 seasonality to impact performance this year? - Management anticipates a muted seasonal slowdown in Q4 compared to previous years, with strong gas market fundamentals [58][60] Question: What are the pricing dynamics in the Haynesville versus West Texas? - The company sees significant opportunities in the Haynesville, with a focus on balancing volumes and pricing, while navigating challenges in West Texas [68][70]

Financial Data and Key Metrics Changes - In Q1 2025, ProFrac reported revenue of $600 million, a 32% increase from $455 million in Q4 2024, while adjusted EBITDA rose 83% to $130 million from $71 million in the previous quarter [5][29][30] - The adjusted EBITDA margin improved to 22% in Q1 from 16% in Q4 [30] Business Line Data and Key Metrics Changes - The Stimulation Services segment generated $525 million in revenue in Q1, up from $384 million in Q4, with adjusted EBITDA increasing to $105 million from $54 million [30] - The Proppant Production segment saw revenues rise to $67 million in Q1 from $47 million in Q4, driven by a 53% increase in sales volumes [31] - The Manufacturing segment's revenue increased by 6% sequentially to $66 million, with adjusted EBITDA improving to approximately $4 million [33] Market Data and Key Metrics Changes - The company experienced a significant improvement in active fleet count, with six fleets returning to service early in Q1, particularly in the Eagle Ford and Permian regions [21] - Demand for next-gen natural gas burning equipment remained resilient compared to diesel assets [21] Company Strategy and Development Direction - ProFrac is focused on leveraging its in-house R&D, manufacturing, and maintenance capabilities to enhance operational efficiency and customer service [5][19] - The company completed a strategic transaction with Flotek, enhancing its gas quality assurance and asset integrity solutions, which is expected to drive future growth [10][19] - ProFrac is optimistic about the potential in the Haynesville region, particularly for natural gas-directed activity [17][26] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty from tariffs and OPEC's production increase has impacted commodity prices and spending outlook [14][15] - Operators are expected to reduce activity in Q2 relative to Q1, but some maintain flexibility to resume operations quickly when conditions improve [15][16] - The natural gas market is showing resilience, with potential for increased activity in the second half of 2025 [17][19] Other Important Information - The company identified potential CapEx reductions of $70 million to $100 million to align with evolving market conditions [28] - Total cash and cash equivalents as of March 31, 2025, were approximately $16 million, with total liquidity at about $76 million [34] Q&A Session Summary Question: Can you provide more specific guidance on the second quarter outlook? - Management acknowledged a pullback in Q2 but noted uncertainty on the degree, emphasizing customer-specific evaluations [39][41] Question: What is the capacity of your electric frac assets? - Most electric fleets are on long-term contracts and remain fully utilized, with seven electric frac fleets deployed [43][45] Question: Can you comment on the performance of specific fleets? - Record-breaking pump times were noted across the fleet, attributed to operational excellence and asset management [51][53] Question: How do you expect Q4 seasonality to impact performance? - Management expects a muted seasonal slowdown in Q4 compared to previous years, with strong gas market fundamentals [57][59] Question: What are the pricing dynamics in the Haynesville versus West Texas? - The Haynesville market is expected to provide significant opportunities, with a focus on balancing volumes and pricing [67][68]

Financial Performance - Total revenue for Q1 2025 was $600 million, a 32% increase from $455 million in Q4 2024[5] - Adjusted EBITDA for Q1 2025 was $130 million, representing an 83% increase from $71 million in Q4 2024, and 22% of revenue compared to 16% in Q4 2024[5] - Net loss for Q1 2025 was $15 million, significantly improved from a net loss of $102 million in Q4 2024[5] - Operating income for the same period was $16.0 million, compared to a loss of $46.8 million in the previous quarter[31] - Net loss attributable to ProFrac Holding Corp. was $17.5 million for the three months ended March 31, 2025, an improvement from a loss of $105.0 million in the previous quarter[31] - Adjusted EBITDA for the three months ended March 31, 2025, was $129.5 million, up from $70.8 million in the previous quarter[33] Segment Performance - Stimulation Services segment generated revenues of $525 million in Q1 2025, with an Adjusted EBITDA margin of 20%, up from 14% in Q4 2024[8] - Proppant Production segment revenues were $67 million in Q1 2025, with an Adjusted EBITDA margin of 27%, down from 31% in Q4 2024[9] - Manufacturing segment revenues increased to $66 million in Q1 2025, with an Adjusted EBITDA margin of 6%, up from 5% in Q4 2024[10] - Stimulation services revenue increased to $524.5 million for the three months ended March 31, 2025, from $384.4 million in the previous quarter[34] Cash Flow and Debt - Free cash flow for Q1 2025 was $(14) million, a decrease from $54 million in Q4 2024[5] - Total debt outstanding as of March 31, 2025, was $1.15 billion, with net debt of $1.14 billion[14] - The total principal amount of debt as of March 31, 2025, was $1,154.4 million, compared to $1,138.9 million at the end of 2024[35] - For the three months ended March 31, 2025, net cash provided by operating activities was $38.7 million, down from $76.5 million for the same period in 2024[36] - ProFrac's free cash flow for the three months ended March 31, 2025, was negative $13.6 million, a significant decrease from positive $54.3 million in the previous quarter[36] Assets and Liabilities - Total assets increased to $3,020.9 million as of March 31, 2025, compared to $2,988.1 million as of December 31, 2024[30] - Total liabilities rose to $1,896.8 million as of March 31, 2025, compared to $1,848.5 million as of December 31, 2024[30] - The company reported a decrease in accumulated deficit to $(254.7) million as of March 31, 2025, from $(235.9) million as of December 31, 2024[30] Capital Expenditure and Investments - The Company has identified potential capital expenditure reductions of approximately $70-100 million to align with market conditions[13] - Investment in property, plant, and equipment for the three months ended March 31, 2025, was $52.5 million, compared to $63.2 million in the previous quarter[36] - Proceeds from the sale of assets for the three months ended March 31, 2025, were $0.2 million, a decrease from $41.0 million in the previous quarter[36] Future Outlook - ProFrac Holding Corp. plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[31]

HOUSTON, April 28, 2025 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek") (NYSE: FTK) and ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac") today jointly announced Flotek's acquisition of power generation assets and related intellectual property (the "Acquired Assets") from ProFrac GDM, LLC ("ProFrac GDM"), a subsidiary of ProFrac, for $105 million. Flotek concurrently entered into an agreement for a six-year dry lease of the Acquired Assets with ProFrac GDM (the "Lease Agreement"). ESD Skid for Gas Con ...

Company Overview - ProFrac Holding Corp. (ACDC) shares increased by 23% to close at $5.30, following a significant volume of trading, contrasting with a 40.6% loss over the previous four weeks [1] - An analyst from Stifel has raised the target price for ProFrac Holding Corp.'s stocks, potentially contributing to the recent price increase [1] Earnings Expectations - ProFrac Holding Corp. is expected to report a quarterly loss of $0.31 per share, reflecting a year-over-year change of -1133.3% [2] - Revenue expectations for the upcoming report stand at $488.95 million, which is a decrease of 15.9% compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for ProFrac Holding Corp. has been revised 11.7% lower over the last 30 days [3] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, indicating caution for future stock performance [3] Industry Context - ProFrac Holding Corp. operates within the Zacks Alternative Energy - Other industry, where Ormat Technologies (ORA) is another player [3] - Ormat Technologies has seen a consensus EPS estimate change of -10.9% over the past month, with a current estimate of $0.58, which is a decline of 10.8% from the previous year [4]

Core Viewpoint - JP Morgan analyst Arun Jayaram maintains an Underweight rating on ProFrac Holding Corp. (ACDC) with a price target of $7, following disappointing fourth-quarter results that missed sales expectations and reported a significant net loss [1]. Financial Performance - ACDC reported fourth-quarter sales of $454.7 million, falling short of the consensus estimate of $479.3 million, and recorded a net loss of $105.0 million compared to a loss of $45.2 million in the same quarter last year [1]. - The results were impacted by misses in EBITDA and free cash flow (FCF) attributed to seasonality and a weaker macroeconomic environment [1]. Operational Insights - Management noted an increase in ACDC's active fleet count, reaching its highest level since mid-2024, with six additional fleets secured since the fourth-quarter low point [2]. - The company expects lower average pricing to slightly offset modestly higher activity in Stimulation Services year-over-year [2]. - Continued industry-wide equipment attrition is anticipated due to higher hours pumped per fleet and lower reinvestment levels [2]. Future Projections - The analyst estimates an average of 29.3 fleets in the first quarter of 2025, leading to Stimulation Services EBITDA of approximately $80 million [3]. - Profitability is expected to improve as utilization increases across business units throughout the year, albeit at a slower pace [3]. - Revised EBITDA forecasts for 2025 and 2026 are $472 million and $588 million, down from previous estimates of $543 million and $680 million, respectively [3]. Cash Flow and Capital Expenditure - Projected FCF generation for 2025 and 2026 is $78 million and $184 million, respectively, with capital expenditures estimated at $340 million and $447 million for the same periods [4]. - Investors can gain exposure to ACDC through the Invesco Oil & Gas Services ETF (PXJ) [4]. Stock Performance - ACDC shares are down 1.65%, trading at $7.15 as of the last check on Monday [4].