ProPetro (US:PUMP)2023-11-02 11:55Financial Performance - Revenue for the three months ended September 30, 2023, increased by 27.3%, or $90.8 million, to $423.8 million compared to $333.0 million for the same period in 2022[176]. - Adjusted EBITDA for the three months ended September 30, 2023, was $107.7 million, representing a 19.7% increase from $90.0 million in the same period of 2022[173]. - Net income for the three months ended September 30, 2023, was $34.8 million, a significant increase of 246.4% from $10.0 million in the same period of 2022[173]. - Revenues increased 37.8%, or $351.8 million, to $1,282.6 million for the nine months ended September 30, 2023, compared to $930.8 million for the same period in 2022[189]. - Net income increased to $102.7 million for the nine months ended September 30, 2023, compared to a loss of $11.0 million in the prior year, representing a 1,033.0% change[186]. Operational Metrics - Hydraulic fracturing operations accounted for approximately 80.2% of total revenues for the three months ended September 30, 2023[143]. - The effective utilized hydraulic fracturing fleet count improved to approximately 16 active fleets during the three months ended September 30, 2023, compared to approximately 15 active fleets in the same period of 2022[176]. - The total available hydraulic horsepower (HHP) in hydraulic fracturing operations was 1,354,500 HHP as of September 30, 2023, with 447,500 HHP from Tier IV Dynamic Gas Blending equipment[143]. Cost and Expenses - Cost of services increased 30.5%, or $68.4 million, to $292.5 million for the three months ended September 30, 2023, compared to $224.1 million for the same period in 2022[178]. - General and administrative expenses rose 1.4%, or $0.4 million, to $28.6 million for the three months ended September 30, 2023, from $28.2 million in the prior year[179]. - Depreciation and amortization expenses for the three months ended September 30, 2023, were $53.8 million, an increase of 29.3% from $41.6 million in the same period of 2022[173]. - Interest expense for the three months ended September 30, 2023, increased by 393.2% to $1.2 million from $0.2 million in the same period of 2022[173]. Strategic Initiatives - The acquisition of Silvertip Completion Services for 10.1 million shares valued at $106.7 million and $30 million in cash enhances the company's service offerings in the Permian Basin[147]. - The company completed the acquisition of Silvertip in November 2022, enhancing its position as a completions-focused oilfield services provider in the Permian Basin[172]. - The company has revised its reportable segment presentation from Pressure Pumping to Completion Services following the divestiture of coiled tubing operations[151]. Market and Growth Outlook - The company expects revenue guidance for Q4 2023 to be between $1.6 billion and $1.8 billion, indicating a potential growth of 7% to 20%[221]. - Overall, the company remains optimistic about future growth, projecting a compound annual growth rate (CAGR) of 10% over the next five years[221]. - The company plans to enter the Asian market, targeting a revenue contribution of $100 million by the end of 2024[221]. Research and Development - The company invested $50 million in R&D for new technologies, aiming to enhance product features and user experience[221]. User and Market Metrics - User base grew to 10 million active users, a 20% increase compared to the previous quarter[221]. - Customer retention rate improved to 85%, up from 80% in the previous quarter[221]. - Market expansion efforts in Europe resulted in a 30% increase in market share, now reaching 15% in that region[221]. Cash Flow and Liquidity - Net cash provided by operating activities was $305.1 million for the nine months ended September 30, 2023, compared to $175.0 million for the same period in 2022, driven by increased customer activity and operational efficiencies[210]. - As of September 30, 2023, total liquidity was approximately $179.6 million, consisting of cash, cash equivalents, and restricted cash of $54.3 million, along with $125.3 million of availability under the ABL Credit Facility[201]. - Net cash used in investing activities increased to $312.8 million for the nine months ended September 30, 2023, from $240.0 million for the same period in 2022, mainly due to investments in lower emissions equipment[211].