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]

Core Insights - ProFrac Holding Corp. reported a total revenue of $579.4 million for Q2 2024, a slight decrease from $581.5 million in Q1 2024. The company experienced a net loss of $65.6 million compared to a net income of $3.0 million in the previous quarter [2][3][5] - Adjusted EBITDA for Q2 2024 was $135.6 million, down from $159.7 million in Q1 2024. However, net cash provided by operating activities increased by approximately 43% sequentially to $113.5 million, and free cash flow grew 187% sequentially to $74.0 million [2][3][5] - The company faced challenges in the market due to reduced drilling and completion activity, particularly in natural gas regions, leading to lower results in the second quarter [2][3] Financial Performance - Total revenue for the Stimulation Services segment was $505.6 million, generating $107.3 million in Adjusted EBITDA. The Proppant Production segment generated $69.5 million in revenue with $25.7 million in Adjusted EBITDA, while the Manufacturing segment brought in $55.9 million with only $0.1 million in Adjusted EBITDA [5][33] - The company recognized a goodwill impairment of $67.7 million related to its Haynesville Proppant reporting unit, which did not impact Adjusted EBITDA [5][33] Capital Expenditures and Liquidity - Capital expenditures totaled $61.9 million in Q2 2024, remaining flat from the prior quarter. For the full year 2024, the company expects capital expenditures to be closer to the lower end of previously provided guidance, with maintenance-related expenditures projected at $150 million to $200 million [6][7] - As of June 30, 2024, total debt outstanding was $1.20 billion, an increase from $1.05 billion in Q1 2024. The company had $24.0 million in cash and cash equivalents, with $161.2 million of liquidity available [8][34] Market Outlook - In the Stimulation Services segment, pricing is expected to remain steady, with opportunities for improved profitability per fleet due to the company's superior cost structure and operating leverage. The company continues to receive requests for additional integrated fleet deployments, particularly for electric and Tier 4 dual fuel technologies [4][5] - In the Proppant Production segment, total volumes and pricing are anticipated to decline, followed by a gradual recovery. The company expects to offset some reduction in profitability through operating cost reductions and the idling of an underperforming mine [4][5]