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]

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].

Operations and Capacity - ProFrac operates 28 active hydraulic fracturing fleets as of December 31, 2024, with 15 Tier IV fleets, 9 Tier II fleets, and 4 electric fleets[32]. - The company has approximately 21.5 million tons of annual nameplate capacity across eight frac sand mines, positioning it as one of the largest producers of in-basin frac sand in the U.S.[33]. - ProFrac's operations are strategically located in major unconventional oil and gas basins, enhancing its ability to serve a diversified customer base[32]. - ProFrac's scale and geographic diversification allow it to respond flexibly to market volatility and improve operational efficiencies[41]. Business Model and Strategy - ProFrac's business model emphasizes vertical integration and technological innovation, allowing for tailored products and services to meet customer needs[30]. - The company aims to be the most reliable, cost-effective supplier of in-basin frac sand, maximizing value through strong cash flow generation[40]. - The company focuses on integrating new technologies in a cost-effective manner through its in-house manufacturing capabilities[44]. - ProFrac's manufacturing segment enables cost-advantaged growth and maintenance by assembling new fleets and refurbishing existing ones[43]. Acquisitions and Investments - In April 2024, the company acquired Basin Production and Completion LLC for a total consideration of $39.8 million, consisting of $14.9 million in cash and a pre-existing investment of $24.9 million[51]. - In June 2024, the company acquired Advanced Stimulation Technologies, Inc. for $174.0 million in cash, enhancing its pressure pumping services in the Permian Basin[52]. - The company acquired NRG Manufacturing, Inc. and its affiliate for a total consideration of $6.0 million in cash in June 2024, further expanding its capabilities in the hydraulic fracturing industry[53]. - The company acquired Producers Service Holdings LLC for approximately $35.0 million, adding three fleets totaling 200,000 HHP and a manufacturing facility in Ohio[55]. - The acquisition of Performance Proppants in February 2023 totaled approximately $462.8 million, with $452.4 million paid in cash, enhancing the company's frac sand supply capabilities[56]. Financial Performance - Total revenues for 2024 were $2,190.9 million, a decrease of 16.7% from $2,630.0 million in 2023[417]. - Services revenue decreased to $1,886.7 million in 2024 from $2,274.2 million in 2023, representing a decline of 16.9%[417]. - Product sales revenue decreased significantly to $304.2 million in 2024 from $355.8 million in 2023, a drop of 14.5%[417]. - Operating loss for 2024 was $60.4 million, compared to an operating income of $166.6 million in 2023[417]. - Net loss attributable to ProFrac Holding Corp. for 2024 was $215.1 million, compared to a net loss of $97.7 million in 2023[418]. - Earnings per Class A common share (basic and diluted) for 2024 was $(1.38), compared to $(0.82) in 2023[418]. - Total assets decreased to $2,988.1 million as of December 31, 2024, down from $3,070.7 million in 2023[416]. - Total liabilities increased to $1,848.5 million in 2024 from $1,742.1 million in 2023[416]. Environmental and Regulatory Compliance - The company operates under stringent environmental and occupational health and safety regulations, which may impose costly compliance measures and potential penalties for non-compliance[79]. - The Resource Conservation and Recovery Act (RCRA) and state laws impose requirements on the handling, transportation, and disposal of hazardous and non-hazardous wastes, affecting operational costs[81]. - The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) imposes strict liability for the cleanup of hazardous substances, which could lead to significant financial liabilities for the company[83]. - The Clean Water Act (CWA) and related regulations impose strict controls on the discharge of pollutants, potentially increasing operational costs and delays in obtaining necessary permits[87]. - The Clean Air Act (CAA) regulates air emissions, with new stringent requirements potentially increasing compliance costs for the company[88]. - Climate change regulations are evolving, with potential future legislation that could impose stricter GHG emissions standards, impacting operational costs and demand for services[89]. - The Endangered Species Act (ESA) may affect exploration and production activities, leading to additional costs or operational restrictions in certain areas[96]. - Hydraulic fracturing operations are significant for the company, but increased regulatory scrutiny could lead to higher costs and reduced activity on federal lands[100]. - The company is actively participating in conservation agreements to mitigate potential impacts from environmental regulations[96]. Safety and Workforce - As of December 31, 2024, the company employed 3,077 people, with a Total Reportable Incident Rate of 0.28 for safety performance[69]. - Compliance with OSHA standards for worker exposure to silica may result in material additional costs for the company and its customers[105]. Debt and Financial Management - The company completed a debt refinancing in December 2023, totaling $885 million, extending significant debt maturities to 2029[64]. - A 1% increase in interest rates on variable-rate debt would raise annual interest payments by approximately $10.7 million as of December 31, 2024[389]. - The company has no derivative instruments that materially increase exposure to market risks as of December 31, 2024[389]. Goodwill and Asset Management - The company holds $209.1 million in goodwill related to its Stimulation Services reporting unit, with no impairment identified following a quantitative assessment[400]. - Goodwill impairment of $74.5 million was recognized in 2024, indicating challenges in asset recoverability[418]. - Goodwill balance as of December 31, 2024, is $302.0 million, down from $325.9 million in 2023, reflecting an impairment of $74.5 million in the Proppant segment[466]. Cash Flow and Capital Expenditures - Cash provided by operating activities for 2024 was $367.3 million, down from $553.5 million in 2023 and $415.2 million in 2022[433]. - Cash used in investing activities was $372.3 million in 2024, compared to $715.8 million in 2023 and $1,028.6 million in 2022[433]. - The company incurred capital expenditures of $32.4 million included in accounts payable for 2024[435]. - Cash payments for interest in 2024 were $137.8 million, slightly down from $139.1 million in 2023[435]. - The company reported a net cash used in financing activities of $5.5 million in 2024, compared to a net cash provided of $149.7 million in 2023[433].

Financial Data and Key Metrics Changes - In Q4 2024, ProFrac reported revenue of $455 million and adjusted EBITDA of $71 million, down from $575 million and $135 million in Q3 2024 respectively [17][42] - For the full year 2024, revenue was $2.19 billion with adjusted EBITDA of $501 million, reflecting a margin of 23% [17][43] - Free cash flow for Q4 was $54 million, an increase from $31 million in Q3, totaling $185 million for the year [20][44] Business Line Data and Key Metrics Changes - Stimulation services revenue decreased to $384 million in Q4 from $507 million in Q3, with adjusted EBITDA dropping to $54 million from $113 million [44][45] - Proppant Production segment generated $47 million in revenue for Q4, down from $53 million in Q3, with adjusted EBITDA of $14 million [46][48] - Manufacturing segment revenues remained flat at $62 million in Q4, with adjusted EBITDA increasing to $3 million from near break-even in Q3 [51][52] Market Data and Key Metrics Changes - The North American completions industry faced challenges in Q4 due to budget constraints, holiday shutdowns, and adverse weather conditions [17][21] - There is potential for increased activity in the Haynesville region, driven by improved gas prices and proximity to LNG export terminals [19] - The company has the largest proppant footprint in the Haynesville with a capacity of 10 million tons per annum across four mines [19] Company Strategy and Development Direction - ProFrac continues to execute a differentiated commercial strategy by partnering with operators who prioritize integrated, efficient solutions [10][22] - The launch of Livewire Power marks a significant step in the company's power generation strategy, focusing on the demand for power in remote locations [15][23] - The company is committed to innovation, investing in next-generation pumps and software platforms to maintain industry leadership [16][23] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in activity levels in the Stimulation business since the end of 2024, with expectations for continued efficiency improvements [12][26] - The company anticipates marginal growth in the frac market throughout 2025, despite lower average pricing [32][28] - Management emphasized the importance of long-term customer relationships over short-term pricing gains [68][90] Other Important Information - The company generated $54 million of free cash flow in Q4 and $185 million for the full year, indicating strong cash generation capabilities [20][44] - Total cash and cash equivalents as of December 31, 2024, were approximately $15 million, with total liquidity at about $81 million [56][57] - The company repaid approximately $157 million of long-term debt in 2024 and plans to continue using free cash flow for deleveraging [57] Q&A Session Summary Question: Activity improvement in Stimulation and Proppant - Management noted that the year started well with operators returning to work and increasing fleet activity, leading to a positive outlook for 2025 [66][67] Question: Livewire business ramp-up and CapEx guidance - Management indicated that internal demand is the priority for Livewire, with capital investments focused on projects that meet economic return thresholds [69][72] Question: Frac supply-demand dynamics and asset attrition - Management highlighted that high utilization rates are leading to accelerated attrition of older assets, creating opportunities for price improvements [85][86] Question: Current pricing levels compared to 12 months ago - Management refrained from providing specific pricing details but emphasized a focus on long-term customer relationships rather than short-term pricing strategies [90][91] Question: Active frac fleet count and outlook - Management confirmed that the active fleet count is in the low-30s and will remain stable unless market demand justifies an increase [108][109] Question: Proppant business market share and optimization - Management confirmed that while one asset in the Haynesville is idle, the remaining operational assets are performing well, with a focus on long-term commitments rather than immediate price increases [114][115]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $455 million and adjusted EBITDA of $71 million, down from $575 million and $135 million in Q3 2024 respectively [17][42] - For the full year 2024, total revenue was $2.19 billion with adjusted EBITDA of $501 million, maintaining an adjusted EBITDA margin of 23% [17][43] - Free cash flow for Q4 was $54 million, an increase from $31 million in Q3, totaling $185 million for the full year [20][44] Business Line Data and Key Metrics Changes - Stimulation services revenue decreased to $384 million in Q4 from $507 million in Q3, with adjusted EBITDA dropping to $54 million from $113 million [44][45] - Proppant Production segment generated $47 million in revenue in Q4, down from $53 million in Q3, with adjusted EBITDA of $14 million compared to $17 million in the previous quarter [46][48] - Manufacturing segment revenues remained flat at $62 million in Q4, with adjusted EBITDA increasing to $3 million from near break-even in Q3 [51][52] Market Data and Key Metrics Changes - The North American completions industry faced challenges in Q4 due to budget constraints, holiday shutdowns, and adverse weather conditions [17][21] - The company noted a significant improvement in activity in the Stimulation business since the end of 2024, with the highest number of active fleets since mid-2024 [26][27] - The Haynesville market is expected to see increased activity due to improved gas prices, with the company holding the largest Proppant footprint in the region [19][20] Company Strategy and Development Direction - The company continues to execute a differentiated commercial strategy by partnering with operators who prioritize integrated, efficient solutions [10][22] - The launch of Livewire Power marks a strategic step in the power generation market, focusing on the demand for power in remote locations [15][23] - The company is committed to innovation, investing in next-generation pumps and software platforms to maintain industry leadership [16][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing Q3 2024 efficiency records in the Stimulation business, despite challenges [13][21] - The company anticipates marginal growth in the frac market throughout 2025, with a focus on long-term customer relationships over short-term pricing gains [28][68] - Management highlighted the importance of maintaining a disciplined approach to capital allocation and managing asset portfolios [20][57] Other Important Information - The company generated $54 million of free cash flow in Q4 and $185 million for the full year, indicating strong cash generation capabilities [20][44] - Total cash and cash equivalents at year-end were approximately $15 million, with total liquidity of about $81 million [56] - The company repaid approximately $157 million of long-term debt in 2024 and plans to continue using free cash flow for deleveraging [57] Q&A Session Summary Question: Activity improvement in Stimulation and Proppant - Management noted that the start of the year has seen a nice pickup in activity, with operators returning to work and increasing volumes [66][67] Question: Livewire business ramp-up and CapEx guidance - Management indicated that internal demand is the priority for Livewire, with capital investments focused on projects that meet economic return thresholds [69][72] Question: Frac supply-demand dynamics and asset attrition - Management discussed the accelerated attrition of older assets due to high utilization rates, leading to a tighter supply-demand balance [83][85] Question: Current pricing dynamics - Management refrained from providing specific pricing details but emphasized a focus on long-term customer relationships over short-term pricing strategies [90][91] Question: Electrification of frac fleets and power allocation - Management acknowledged the careful consideration of resource allocation to sustain both oilfield services and other market demands without compromising customer commitments [100][101]

Financial Performance - Total revenue for 2024 was $2.19 billion, a decrease of 16.7% from $2.63 billion in 2023[4] - Net loss for 2024 was $208 million, compared to a net loss of $59 million in 2023[4] - Adjusted EBITDA for 2024 was $501 million, representing 23% of revenue, down from 26% in 2023[4] - Operating income for the twelve months ended December 31, 2024, was a loss of $60.4 million, compared to an operating income of $166.6 million for the same period in 2023[33] - Net loss attributable to ProFrac Holding Corp. for the three months ended December 31, 2024, was $105.0 million, compared to a net loss of $97.9 million for the same period in 2023[33] - Total revenues for the three months ended December 31, 2024, were $454.7 million, a decrease of 21% from $575.3 million in the previous quarter[36] - Adjusted EBITDA for the three months ended December 31, 2024, was $70.8 million, down from $134.8 million in the previous quarter, reflecting a decline of 47.5%[35] Cash Flow and Investments - Free cash flow for 2024 was $185 million, with net cash provided by operating activities at $367 million[4] - Cash flows from operating activities generated $76.5 million for the three months ended December 31, 2024, compared to $98.0 million in the previous quarter[34] - For the three months ended December 31, 2024, net cash provided by operating activities was $76.5 million, compared to $42.7 million for the same period in 2023, reflecting a 79% increase[38] - Free cash flow for the three months ended December 31, 2024, was $54.3 million, up from $12.8 million in the same period of 2023, representing a 324% increase[38] - The net cash provided by operating activities for the twelve months ended December 31, 2024, was $367.3 million, down from $553.5 million in 2023, reflecting a decline of 33.6%[38] - For the twelve months ended December 31, 2024, free cash flow was $185.2 million, compared to $292.7 million in 2023, showing a decrease of 36.7%[38] - Investment in property, plant & equipment for the twelve months ended December 31, 2024, was $255.0 million, a decrease from $267.0 million in 2023, indicating a 4.5% reduction[38] - The investment in property, plant & equipment for the three months ended December 31, 2024, was $63.2 million, down from $33.1 million in the same period of 2023, representing a 90% increase[38] Assets and Liabilities - Total current assets decreased to $574.1 million as of December 31, 2024, from $638.1 million as of December 31, 2023, representing a decline of approximately 10%[32] - Total liabilities increased to $1,848.5 million as of December 31, 2024, compared to $1,742.1 million as of December 31, 2023, reflecting an increase of about 6%[32] - Cash and cash equivalents decreased to $14.8 million as of December 31, 2024, down from $25.3 million as of December 31, 2023, a decline of approximately 41%[32] - Long-term debt remained relatively stable at $931.1 million as of December 31, 2024, compared to $923.5 million as of December 31, 2023[32] - The company’s total debt increased to $1,109.0 million as of December 31, 2024, up from $1,068.5 million in the previous year[37] - The current portion of long-term debt increased to $164.6 million as of December 31, 2024, compared to $126.4 million in the previous year[37] Segment Performance - The Stimulation Services segment generated revenues of $1.91 billion in 2024, with an Adjusted EBITDA margin of 21%[10] - The Proppant Production segment's revenues for 2024 were $247 million, with a margin of 35%[11] - Stimulation services revenue for the three months ended December 31, 2024, was $384.4 million, a decrease of 24.2% from $507.1 million in the previous quarter[36] Goodwill and Equity - The company experienced a goodwill impairment of $74.5 million for the twelve months ended December 31, 2024[33] - Total stockholders' equity attributable to ProFrac Holding Corp. decreased to $1,006.9 million as of December 31, 2024, from $1,211.2 million as of December 31, 2023, a decline of approximately 17%[32] - The company reported acquisition and integration costs of $2.7 million for the three months ended December 31, 2024, compared to $1.7 million for the same period in 2023[33] New Initiatives - The company launched Livewire Power in Q4 2024 to address the demand for flexible power generation solutions[7]

Core Viewpoint - ProFrac Holding (NASDAQ: ACDC) is identified as an undervalued vertically integrated energy services company with resilient free cash flow, leading to a stock price increase of over 24% since the last analysis [1]. Company Analysis - ProFrac Holding has demonstrated strong performance in the energy services sector, showcasing its ability to generate free cash flow despite market fluctuations [1]. - The company is positioned as a value investment opportunity, appealing to investors looking for low-risk and high uncertainty bets [1]. Investment Philosophy - The analysis reflects a focus on emerging markets and a willingness to seek out undervalued companies, influenced by notable investors and economic thinkers [1]. - The investment approach emphasizes an owner-mindset, prioritizing company fundamentals over macroeconomic noise [1].

Core Viewpoint - The article emphasizes the importance of value investing and highlights ProFrac Holding Corp. (ACDC) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][3][6]. Company Analysis - ProFrac Holding Corp. (ACDC) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating it is among the best value stocks available [3]. - ACDC's price-to-book (P/B) ratio is 1.13, which is attractive compared to the industry average of 2.20. The P/B ratio has fluctuated between 0.73 and 1.25 over the past year, with a median of 0.98 [4]. - The company's price-to-cash flow (P/CF) ratio stands at 4.98, significantly lower than the industry average of 9.26. This ratio has ranged from 2.86 to 5.53 in the past year, with a median of 4.16 [5]. - These valuation metrics suggest that ACDC is likely undervalued at present, supported by a strong earnings outlook [6].

Core Insights - ProFrac Holding Corp. has partnered with Prairie Operating Co. to implement an electric frac fleet in Colorado, featuring 25 advanced 3,000 HHP single E-Pumps for fully electrified hydraulic fracturing and pump down operations [1][2][3] - The initiative aims to enhance operational capabilities while significantly reducing environmental impact, aligning with Colorado's stringent emissions standards [3][5][6] - The fleet will utilize state-of-the-art electric blender units and turbine generators powered by 100% natural gas, marking a shift from conventional diesel-powered operations [4][5] Company Overview - Prairie Operating Co. is an independent energy company focused on the development and acquisition of oil and natural gas resources, primarily in the Denver-Julesburg Basin [7] - ProFrac Holding Corp. is a technology-driven energy services holding company providing hydraulic fracturing and related services to upstream oil and natural gas companies [8]