ProFrac Holding Corp. Reports 2023 Full Year and Fourth Quarter Financial and Operational Results

Core Viewpoint - ProFrac Holding Corp. reported a decline in net income for 2023, with total revenue increasing to $2.63 billion but a net loss of $59 million compared to a net income of $343 million in 2022. The company aims to enhance its position in the oilfield services industry through strategic initiatives and improved operational efficiencies in 2024 [2][3][4]. Financial Performance - Total revenue for 2023 was $2.63 billion, up from $2.43 billion in 2022 [2]. - The net loss for 2023 was $59 million, a significant decline from a net income of $343 million in 2022 [2]. - Adjusted EBITDA for 2023 was $688 million [2]. - Net cash provided by operating activities was $554 million, with capital expenditures totaling $267 million [2]. - Free cash flow increased by 173% to $293 million compared to 2022 [2]. Quarterly Results - In Q4 2023, total revenue was $489 million, down from $574 million in Q3 2023 [3]. - The net loss for Q4 was $97 million, compared to a net loss of $18 million in Q3 2023 [3]. - Adjusted EBITDA for Q4 was $110 million [3]. - Free cash flow for Q4 was $13 million [3]. Strategic Initiatives - The company has focused on three strategic priorities: enhancing service quality, improving utilization, and achieving the lowest operating costs in the industry [4]. - ProFrac has increased its fleet count and improved pumping efficiencies, achieving nearly 20% higher pumping hours per active fleet in early 2024 compared to the 2023 average [5]. Business Segment Performance - The Stimulation Services segment generated $2.29 billion in revenue for 2023, with an Adjusted EBITDA of $480 million [7]. - The Proppant Production segment generated $383 million in revenue for 2023, resulting in $196 million of Adjusted EBITDA [8]. - The Manufacturing segment generated $176 million in revenue for 2023, with an Adjusted EBITDA of $15 million [8]. - Other Business Activities generated $193 million in revenue for 2023, resulting in a negative Adjusted EBITDA of $1.6 million [9]. Capital Expenditures and Outlook - Total capital expenditures for 2023 were $267 million, a 25% reduction from 2022 [10]. - For 2024, the company expects capital expenditures between $150 million and $200 million for maintenance and an additional $100 million for growth initiatives [10]. - The company anticipates modest improvement in mine utilization and pricing in the Proppant Production segment in early 2024 [6]. Balance Sheet and Liquidity - As of December 31, 2023, total net debt was $1.08 billion, an increase of approximately $27 million from Q3 2023 [11]. - Total cash and cash equivalents were $25 million, with $103 million in liquidity available [11].