ProFrac Holding Corp. Reports Second Quarter 2024 Results

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]