ProPetro Reports Financial Results for the Fourth Quarter and Full Year of 2024
ProPetro (NYSE: PUMP) reported financial results for Q4 and full year 2024. Full-year revenue decreased 11% to $1.4 billion, with a net loss of $138 million compared to net income of $86 million in 2023. Adjusted EBITDA declined 30% to $283 million.
The company launched PROPWR℠, ordering 140 megawatts of power generation equipment, and completed the AquaProp℠ acquisition. They repurchased 7.2 million shares in 2024, with total repurchases of 13.0 million shares since May 2023. Capital expenditures reduced by 57% to $133 million.
Q4 2024 revenue was $321 million, down from $361 million in Q3, with a net loss of $17 million. The company expects to run 14-15 frac fleets in Q1 2025 and projects 2025 capital expenditures between $300-400 million.
ProPetro (NYSE: PUMP) ha riportato i risultati finanziari per il quarto trimestre e l'intero anno 2024. I ricavi annuali sono diminuiti dell'11% a $1,4 miliardi, con una perdita netta di $138 milioni rispetto a un utile netto di $86 milioni nel 2023. L'EBITDA rettificato è calato del 30% a $283 milioni.
L'azienda ha lanciato PROPWR℠, ordinando 140 megawatt di attrezzature per la generazione di energia, e ha completato l'acquisizione di AquaProp℠. Hanno riacquistato 7,2 milioni di azioni nel 2024, con un totale di riacquisti di 13,0 milioni di azioni da maggio 2023. Le spese in conto capitale sono state ridotte del 57% a $133 milioni.
I ricavi del quarto trimestre 2024 sono stati di $321 milioni, in calo rispetto ai $361 milioni del terzo trimestre, con una perdita netta di $17 milioni. L'azienda prevede di gestire 14-15 flotte di fracking nel primo trimestre del 2025 e proietta le spese in conto capitale per il 2025 tra $300-400 milioni.
ProPetro (NYSE: PUMP) reportó resultados financieros para el cuarto trimestre y el año completo 2024. Los ingresos anuales disminuyeron un 11% a $1.4 mil millones, con una pérdida neta de $138 millones en comparación con una ganancia neta de $86 millones en 2023. El EBITDA ajustado cayó un 30% a $283 millones.
La compañía lanzó PROPWR℠, ordenando 140 megavatios de equipos de generación de energía, y completó la adquisición de AquaProp℠. Recompraron 7.2 millones de acciones en 2024, con un total de 13.0 millones de acciones recompradas desde mayo de 2023. Los gastos de capital se redujeron en un 57% a $133 millones.
Los ingresos del cuarto trimestre de 2024 fueron de $321 millones, en comparación con $361 millones en el tercer trimestre, con una pérdida neta de $17 millones. La empresa espera operar de 14 a 15 flotas de fracturación en el primer trimestre de 2025 y proyecta gastos de capital para 2025 entre $300-400 millones.
ProPetro (NYSE: PUMP)는 2024년 4분기 및 전체 연도 재무 결과를 보고했습니다. 연간 수익은 11% 감소하여 14억 달러에 달했으며, 2023년에는 8천6백만 달러의 순이익에 비해 1억3천8백만 달러의 순손실을 기록했습니다. 조정된 EBITDA는 30% 감소하여 2억8천3백만 달러에 이르렀습니다.
회사는 PROPWR℠를 출시하고 140메가와트의 전력 생성 장비를 주문했으며, AquaProp℠ 인수를 완료했습니다. 2024년에는 720만 주를 재매입했으며, 2023년 5월 이후 총 1,300만 주를 재매입했습니다. 자본 지출은 57% 감소하여 1억3천3백만 달러가 되었습니다.
2024년 4분기 수익은 3억2천1백만 달러로, 3분기의 3억6천1백만 달러에서 감소했으며, 순손실은 1천7백만 달러였습니다. 회사는 2025년 1분기에 14-15개의 프랙 플릿을 운영할 것으로 예상하며, 2025년 자본 지출을 3억-4억 달러로 예상하고 있습니다.
ProPetro (NYSE: PUMP) a publié ses résultats financiers pour le quatrième trimestre et l'année complète 2024. Les revenus annuels ont diminué de 11 % pour atteindre 1,4 milliard de dollars, avec une perte nette de 138 millions de dollars par rapport à un bénéfice net de 86 millions de dollars en 2023. L'EBITDA ajusté a chuté de 30 % à 283 millions de dollars.
L'entreprise a lancé PROPWR℠, commandant 140 mégawatts d'équipements de production d'énergie, et a complété l'acquisition d'AquaProp℠. Ils ont racheté 7,2 millions d'actions en 2024, avec un total de 13,0 millions d'actions rachetées depuis mai 2023. Les dépenses d'investissement ont été réduites de 57 % pour atteindre 133 millions de dollars.
Les revenus du quatrième trimestre 2024 étaient de 321 millions de dollars, en baisse par rapport à 361 millions de dollars au troisième trimestre, avec une perte nette de 17 millions de dollars. L'entreprise prévoit d'exploiter 14 à 15 flottes de fracturation au premier trimestre 2025 et projette des dépenses d'investissement pour 2025 entre 300 et 400 millions de dollars.
ProPetro (NYSE: PUMP) hat die finanziellen Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht. Der Jahresumsatz fiel um 11% auf 1,4 Milliarden Dollar, mit einem Nettoverlust von 138 Millionen Dollar im Vergleich zu einem Nettogewinn von 86 Millionen Dollar im Jahr 2023. Das bereinigte EBITDA sank um 30% auf 283 Millionen Dollar.
Das Unternehmen hat PROPWR℠ eingeführt und 140 Megawatt an Stromerzeugungsanlagen bestellt sowie die Übernahme von AquaProp℠ abgeschlossen. Sie haben im Jahr 2024 7,2 Millionen Aktien zurückgekauft, wobei seit Mai 2023 insgesamt 13,0 Millionen Aktien zurückgekauft wurden. Die Investitionsausgaben wurden um 57% auf 133 Millionen Dollar gesenkt.
Der Umsatz im vierten Quartal 2024 betrug 321 Millionen Dollar, ein Rückgang von 361 Millionen Dollar im dritten Quartal, mit einem Nettoverlust von 17 Millionen Dollar. Das Unternehmen erwartet, im ersten Quartal 2025 14-15 Frac-Flotten zu betreiben, und plant für 2025 Investitionsausgaben zwischen 300 und 400 Millionen Dollar.
- Free Cash Flow of $97 million for 2024
- Share repurchases representing 11% of outstanding stock since May 2023
- 57% reduction in capital expenditures to $133 million
- 75% of hydraulic fracturing capacity now consists of FORCE® electric and Tier IV DGB Dual-fuel fleets
- Strong liquidity position of $161 million at year-end
- 11% decrease in full-year revenue to $1.4 billion
- Net loss of $138 million in 2024 vs net income of $86 million in 2023
- 30% decrease in Adjusted EBITDA to $283 million
- Q4 revenue declined to $321 million from $361 million in Q3
- $24 million noncash impairment expense in Q4 related to wireline unit goodwill
Insights
The financial results paint a picture of a company in strategic transition, managing near-term challenges while positioning for future growth. The 11% revenue decline to
The company's operational efficiency remains robust, generating
The 57% reduction in capital expenditures to
The transition to next-generation equipment is particularly noteworthy, with electric and Tier IV DGB Dual-fuel fleets now representing
The launch of PROPWR, with 140 megawatts of ordered capacity, represents a strategic pivot toward power generation solutions. This diversification could provide more stable revenue streams, though execution risks exist in this new market segment.
Looking ahead to 2025, the projected fleet deployment of 14-15 frac fleets in Q1 suggests stable utilization rates. However, investors should monitor the pace of PROPWR's development and its impact on margins, as this new business line requires significant capital investment before generating returns.
Full Year 2024 Results and Highlights
-
Revenue was
$1.4 billion 11% decrease from 2023. -
Net loss was
$138 million $1.31 $86 million $0.76 -
Adjusted Net Income(1) was
$29 million -
Adjusted EBITDA(1) was
$283 million 30% decrease from 2023. - Announced the formation of PROPWR℠, our new power generation business, with total ordered capacity of 140 megawatts of power generation equipment.
- Completed the acquisition of Aqua Prop, LLC ("AquaProp℠").
-
Repurchased and retired 7.2 million shares during 2024 with total repurchases of 13.0 million shares representing approximately
11% of our outstanding common stock since plan inception in May 2023. -
Reduced incurred capital expenditures to
$133 million 57% from 2023. -
Net cash provided by operating activities, Free Cash Flow(2) and Free Cash Flow adjusted for Acquisition Consideration(2) were
$252 million $97 million $118 million - Four FORCE® electric-powered hydraulic fracturing fleets are now operating under contract with leading customers with a fifth expected to be deployed in 2025.
-
Our FORCE® electric and Tier IV DGB Dual-fuel fleets now represent approximately
75% of our hydraulic fracturing capacity. - Published our second ProPetro | ProEnergy | ProPeople Sustainability Report in October of 2024.
Fourth Quarter 2024 Results and Highlights
-
Revenue was
$321 million $361 million -
Net loss of
$17 million $0.17 $137 million $1.32 -
Adjusted net loss(1) was
$596 thousand -
Adjusted EBITDA(1) was
$53 million $71 million -
Capital expenditures incurred of
$25 million - Repurchased and retired 0.4 million shares.
- Placed orders for 140 megawatts of power generation equipment for our PROPWR business.
-
Divested
Vernal, Utah , cementing operations on November 1, 2024.
(1) |
|
Adjusted Net Income (Loss) and Adjusted EBITDA are non-GAAP financial measures and are described and reconciled to net income (loss) in the table under “Non-GAAP Financial Measures.” |
(2) |
|
Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration are non-GAAP financial measures and are described and reconciled to net cash from operating activities in the table under “Non-GAAP Financial Measures." |
Sam Sledge, Chief Executive Officer, commented, “Thanks to the hard work and dedication of the ProPetro team, our fourth-quarter and fiscal year results reflect the merits of our strategy and the resilience of our business model. 2024 was a pivotal year for ProPetro, and our results further validate our ability to drive value despite broader industry-wide challenges. We maintained stable pricing, delivered strong free cash flow, and continued to optimize our fleet with next-generation equipment. We also successfully expanded our service offerings with the launch of PROPWR, our power generation business, opening a new avenue for growth and allowing us to meet the increasing demand for reliable, low-cost power solutions in the Permian Basin. We expect the opportunities to deliver value to our existing and new customers seeking power generation solutions to be significant. We are confident we are taking the right steps to drive long-term value creation and resilient free cash flow for shareholders.”
David Schorlemer, Chief Financial Officer, said, “Despite the expected seasonal slowdown in the fourth quarter, the Company continued to demonstrate strong financial performance, maintaining free cash flow generation and a healthy balance sheet. Most noteworthy, the Company reduced its capital expenditures by nearly
Fourth Quarter 2024 Financial Summary
Revenue was
Cost of services, excluding depreciation and amortization of approximately
General and administrative expense of
Net loss totaled
Adjusted EBITDA decreased to
Liquidity and Capital Spending
As of December 31, 2024, we had cash and cash equivalents of
Capital expenditures incurred during the fourth quarter of 2024 were
Share Repurchases
The Company repurchased and retired 7.2 million shares during 2024. During the fourth quarter of 2024, the Company repurchased and retired 0.4 million shares, bringing the total repurchases to 13.0 million shares, representing approximately
PROPWR Update
In December, we announced an initial order for over 110 megawatts of natural gas-fueled power generation equipment, valued at
We plan to place further orders for additional power generation capacity in the coming weeks and months as we finalize customer contracts and assess future demand from our customers. The majority of these deliveries are anticipated in the second half of 2025 and early 2026, bringing our total capacity to between approximately 150 and 200 megawatts in early 2026. We aim to continue expanding this business line over the next several years, given favorable market conditions and demand trends.
We have made progress in obtaining customer commitments and are actively negotiating long-term contracts for our incoming equipment.
Guidance
The Company anticipates full-year 2025 capital expenditures to be between
During the fourth quarter of 2024, 14 hydraulic fracturing fleets were active but experienced white space due to holiday and seasonality impacts. The Company expects to run between 14 and 15 frac fleets in the first quarter of 2025.
Outlook
Mr. Sledge concluded, “Looking ahead, we are excited about the opportunities in front of us and enter 2025 with great momentum, a strong foundation, and a clear vision for the future. Our fleet modernization efforts will continue to drive efficiencies for our customers while enhancing our competitive positioning. At the same time, the introduction of PROPWR represents an exciting avenue for growth, positioning ProPetro to capitalize on the supply demand imbalance for natural gas power generation solutions across a number of verticals in the energy industry and beyond. With a strong balance sheet, disciplined capital allocation program, and unwavering focus on operational excellence, we believe 2025 will be another positive year for ProPetro.”
Conference Call Information
The Company will host a conference call at 8:00 AM Central Time on February 19, 2025, to discuss financial and operating results for the fourth quarter of 2024. The call will also be webcast on ProPetro’s website at www.propetroservices.com. To access the conference call,
About ProPetro
ProPetro Holding Corp. is a
Forward-Looking Statements
Except for historical information contained herein, the statements and information in this news release and discussion in the scripted remarks described above are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “may,” “could,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” "will," "should" and other expressions that are predictions of, or indicate, future events and trends or that do not relate to historical matters generally identify forward‑looking statements. Our forward‑looking statements include, among other matters, statements about the supply of and demand for hydrocarbons, our business strategy, industry, projected financial results and future financial performance, expected fleet utilization, sustainability efforts, the future performance of newly improved technology, expected capital expenditures, the impact of such expenditures on our performance and capital programs, our fleet conversion strategy, our share repurchase program, and the anticipated commercial prospects of PROPWR, including our ability to successfully commence operations, the demand for its services and anticipated benefits of the new business line. A forward‑looking statement may include a statement of the assumptions or bases underlying the forward‑looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable.
Although forward‑looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of oil prices, changes in the supply of and demand for power generation, the risks associated with the establishment of a new service line, including delays, lack of customer acceptance and cost overruns, the global macroeconomic uncertainty related to the conflict in the
PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
December
|
|
September
|
|
December
|
|
December
|
|
December
|
||||||||||
REVENUE - Service revenue |
|
$ |
320,554 |
|
|
$ |
360,868 |
|
|
$ |
347,776 |
|
|
$ |
1,444,286 |
|
|
$ |
1,630,399 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services (exclusive of depreciation and amortization) |
|
|
243,473 |
|
|
|
267,555 |
|
|
|
261,034 |
|
|
|
1,065,514 |
|
|
|
1,131,801 |
|
General and administrative expenses (inclusive of stock‑based compensation) |
|
|
28,631 |
|
|
|
26,556 |
|
|
|
27,990 |
|
|
|
114,323 |
|
|
|
114,354 |
|
Depreciation and amortization |
|
|
47,706 |
|
|
|
54,299 |
|
|
|
62,152 |
|
|
|
211,733 |
|
|
|
180,886 |
|
Property and equipment impairment expense |
|
|
— |
|
|
|
188,601 |
|
|
|
— |
|
|
|
188,601 |
|
|
|
— |
|
Goodwill impairment expense |
|
|
23,624 |
|
|
|
— |
|
|
|
— |
|
|
|
23,624 |
|
|
|
— |
|
(Gain) loss on disposal of assets and business |
|
|
(4,433 |
) |
|
|
2,149 |
|
|
|
4,883 |
|
|
|
7,451 |
|
|
|
73,015 |
|
Total costs and expenses |
|
|
339,001 |
|
|
|
539,160 |
|
|
|
356,059 |
|
|
|
1,611,246 |
|
|
|
1,500,056 |
|
OPERATING (LOSS) INCOME |
|
|
(18,447 |
) |
|
|
(178,292 |
) |
|
|
(8,283 |
) |
|
|
(166,960 |
) |
|
|
130,343 |
|
OTHER (EXPENSE) INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
|
(1,882 |
) |
|
|
(1,939 |
) |
|
|
(2,292 |
) |
|
|
(7,815 |
) |
|
|
(5,308 |
) |
Other (expense) income, net |
|
|
(76 |
) |
|
|
1,799 |
|
|
|
(7,784 |
) |
|
|
5,531 |
|
|
|
(9,533 |
) |
Total other income (expense) |
|
|
(1,958 |
) |
|
|
(140 |
) |
|
|
(10,076 |
) |
|
|
(2,284 |
) |
|
|
(14,841 |
) |
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(20,405 |
) |
|
|
(178,432 |
) |
|
|
(18,359 |
) |
|
|
(169,244 |
) |
|
|
115,502 |
|
INCOME TAX BENEFIT (EXPENSE) |
|
|
3,343 |
|
|
|
41,365 |
|
|
|
1,250 |
|
|
|
31,385 |
|
|
|
(29,868 |
) |
NET (LOSS) INCOME |
|
$ |
(17,062 |
) |
|
$ |
(137,067 |
) |
|
$ |
(17,109 |
) |
|
$ |
(137,859 |
) |
|
$ |
85,634 |
|
NET (LOSS) INCOME PER COMMON SHARE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
(0.17 |
) |
|
$ |
(1.32 |
) |
|
$ |
(0.16 |
) |
|
$ |
(1.31 |
) |
$ |
0.76 |
|
|
Diluted |
|
$ |
(0.17 |
) |
|
$ |
(1.32 |
) |
|
$ |
(0.16 |
) |
|
$ |
(1.31 |
) |
$ |
0.76 |
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|||||||||||||
Basic |
|
|
102,953 |
|
|
104,121 |
|
|
110,164 |
|
|
|
105,469 |
|
|
113,004 |
|
|||
Diluted |
|
|
102,953 |
|
|
104,121 |
|
|
110,164 |
|
|
105,469 |
|
|
113,416 |
|
||||
NOTE: Business acquisition contingent consideration adjustment of |
||||||||||||||||||||
PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) |
|||||||
|
|||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|||
ASSETS |
|
|
|
|
|||
CURRENT ASSETS: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
50,443 |
|
|
$ |
33,354 |
Accounts receivable - net of allowance for credit losses of |
|
|
195,994 |
|
|
|
237,012 |
Inventories |
|
|
16,162 |
|
|
|
17,705 |
Prepaid expenses |
|
|
17,719 |
|
|
|
14,640 |
Short-term investment, net |
|
|
7,849 |
|
|
|
7,745 |
Other current assets |
|
|
4,054 |
|
|
|
353 |
Total current assets |
|
|
292,221 |
|
|
|
310,809 |
PROPERTY AND EQUIPMENT - net of accumulated depreciation |
|
|
688,225 |
|
|
|
967,116 |
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
|
132,294 |
|
|
|
78,583 |
FINANCE LEASE RIGHT-OF-USE ASSETS |
|
|
30,713 |
|
|
|
47,449 |
OTHER NONCURRENT ASSETS: |
|
|
|
|
|||
Goodwill |
|
|
920 |
|
|
|
23,624 |
Intangible assets - net of amortization |
|
|
64,905 |
|
|
|
50,615 |
Other noncurrent assets |
|
|
14,367 |
|
|
|
2,116 |
Total other noncurrent assets |
|
|
80,192 |
|
|
|
76,355 |
TOTAL ASSETS |
|
$ |
1,223,645 |
|
|
$ |
1,480,312 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|||
CURRENT LIABILITIES: |
|
|
|
|
|||
Accounts payable |
|
$ |
92,963 |
|
|
$ |
161,441 |
Accrued and other current liabilities |
|
|
70,923 |
|
|
|
75,616 |
Operating lease liabilities |
|
|
39,063 |
|
|
|
17,029 |
Finance lease liabilities |
|
|
19,317 |
|
|
|
17,063 |
Total current liabilities |
|
|
222,266 |
|
|
|
271,149 |
DEFERRED INCOME TAXES |
|
|
59,770 |
|
|
|
93,105 |
LONG-TERM DEBT |
|
|
45,000 |
|
|
|
45,000 |
NONCURRENT OPERATING LEASE LIABILITIES |
|
|
58,849 |
|
|
|
38,600 |
NONCURRENT FINANCE LEASE LIABILITIES |
|
|
13,187 |
|
|
|
30,886 |
OTHER LONG-TERM LIABILITIES |
|
|
8,300 |
|
|
|
3,180 |
Total liabilities |
|
|
407,372 |
|
|
|
481,920 |
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|||
Preferred stock, |
|
|
— |
|
|
|
— |
Common stock, |
|
|
103 |
|
|
|
109 |
Additional paid-in capital |
|
|
884,995 |
|
|
|
929,249 |
Retained earnings (accumulated deficit) |
|
|
(68,825 |
) |
|
|
69,034 |
Total shareholders’ equity |
|
|
816,273 |
|
|
|
998,392 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
1,223,645 |
|
|
$ |
1,480,312 |
PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
||||||||
|
|
Years Ended December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net (loss) income |
|
$ |
(137,859 |
) |
|
$ |
85,634 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
211,733 |
|
|
|
180,886 |
|
Property and equipment impairment expense |
|
|
188,601 |
|
|
|
— |
|
Goodwill impairment expense |
|
|
23,624 |
|
|
|
— |
|
Deferred income tax (benefit) expense |
|
|
(33,336 |
) |
|
|
27,840 |
|
Amortization of deferred revenue rebate |
|
|
438 |
|
|
|
359 |
|
Stock‑based compensation |
|
|
17,288 |
|
|
|
14,450 |
|
Provision for credit losses |
|
|
— |
|
|
|
34 |
|
Loss on disposal of assets and businesses, net |
|
|
7,451 |
|
|
|
73,015 |
|
Unrealized (gain) loss on short-term investment |
|
|
(105 |
) |
|
|
2,538 |
|
Business acquisition contingent consideration adjustments |
|
|
(2,600 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
51,498 |
|
|
|
(12,408 |
) |
Other current assets |
|
|
(2,301 |
) |
|
|
(831 |
) |
Inventories |
|
|
1,543 |
|
|
|
(6,017 |
) |
Prepaid expenses |
|
|
1,327 |
|
|
|
(6,143 |
) |
Accounts payable |
|
|
(64,501 |
) |
|
|
(11,429 |
) |
Accrued and other current liabilities |
|
|
(10,506 |
) |
|
|
26,814 |
|
Net cash provided by operating activities |
|
|
252,295 |
|
|
|
374,742 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Capital expenditures |
|
|
(140,297 |
) |
|
|
(370,869 |
) |
Business acquisitions, net of cash acquired |
|
|
(21,038 |
) |
|
|
(22,215 |
) |
Proceeds from sale of assets |
|
|
6,236 |
|
|
|
8,957 |
|
Net cash used in investing activities |
|
|
(155,099 |
) |
|
|
(384,127 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings |
|
|
— |
|
|
|
30,000 |
|
Repayments of borrowings |
|
|
— |
|
|
|
(15,000 |
) |
Payments of finance lease obligation |
|
|
(17,676 |
) |
|
|
(4,663 |
) |
Repayments of insurance financing |
|
|
(970 |
) |
|
|
— |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(1,179 |
) |
Tax withholdings paid for net settlement of equity awards |
|
|
(1,909 |
) |
|
|
(3,543 |
) |
Share repurchases |
|
|
(59,108 |
) |
|
|
(51,738 |
) |
Payment of excise taxes on share repurchases |
|
|
(444 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(80,107 |
) |
|
|
(46,123 |
) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
17,089 |
|
|
|
(55,508 |
) |
CASH AND CASH EQUIVALENTS — Beginning of year |
|
|
33,354 |
|
|
|
88,862 |
|
CASH AND CASH EQUIVALENTS — End of year |
|
$ |
50,443 |
|
|
$ |
33,354 |
|
Reportable Segment Information
Three Months Ended |
|||||||||||||||||||
December 31, 2024 |
|||||||||||||||||||
(in thousands) |
Hydraulic
|
|
Wireline |
|
Cementing |
|
All Other |
Reconciling
|
Total |
||||||||||
Service revenue |
$ |
236,934 |
|
$ |
45,217 |
$ |
38,476 |
|
$ |
— |
|
$ |
(73 |
) |
$ |
320,554 |
|||
Adjusted EBITDA for reportable segments |
$ |
54,597 |
|
$ |
7,084 |
$ |
6,106 |
|
$ |
(370 |
) |
$ |
(14,761 |
) |
$ |
52,656 |
|||
Depreciation and amortization |
$ |
40,359 |
|
$ |
5,329 |
$ |
1,998 |
|
$ |
— |
|
|
$ |
20 |
|
$ |
47,706 |
||
Goodwill impairment expense (2) |
$ |
— |
|
$ |
23,624 |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
23,624 |
||
Operating lease expense on FORCE® fleets (3) |
$ |
14,500 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
14,500 |
||
Capital expenditures |
$ |
21,173 |
|
$ |
1,627 |
|
$ |
1,959 |
|
$ |
— |
|
$ |
4 |
|
$ |
24,763 |
||
|
Three Months Ended |
|||||||||||||||||
|
September 30, 2024 |
|||||||||||||||||
(in thousands) |
Hydraulic
|
|
Wireline |
|
Cementing |
|
All Other |
|
Reconciling
|
|
Total |
|||||||
Service revenue |
$ |
274,138 |
|
$ |
47,958 |
|
$ |
38,920 |
|
$ |
— |
|
$ |
(148 |
) |
|
$ |
360,868 |
Adjusted EBITDA for reportable segments |
$ |
66,166 |
|
$ |
9,194 |
|
$ |
8,989 |
|
$ |
— |
|
$ |
(13,219 |
) |
|
$ |
71,130 |
Depreciation and amortization |
$ |
46,752 |
|
$ |
5,260 |
|
$ |
2,264 |
|
$ |
— |
|
$ |
23 |
|
|
$ |
54,299 |
Property and equipment impairment expense (1) |
$ |
188,601 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
188,601 |
Operating lease expense on FORCE® fleets (3) |
$ |
12,516 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
12,516 |
|
Capital expenditures |
$ |
33,465 |
$ |
1,757 |
|
$ |
1,575 |
|
$ |
— |
|
$ |
38 |
|
|
$ |
36,83 |
|
|
|
Year Ended |
||||||||||||||||||
|
|
December 31, 2024 |
||||||||||||||||||
(in thousands) |
|
Hydraulic
|
|
Wireline |
|
Cementing |
|
All Other |
|
Reconciling
|
|
Total |
||||||||
Service revenue |
|
$ |
1,092,000 |
|
$ |
203,182 |
|
$ |
149,411 |
|
$ |
— |
|
|
$ |
(307 |
) |
|
$ |
1,444,286 |
Adjusted EBITDA for reportable segments |
|
$ |
270,505 |
|
$ |
43,857 |
|
$ |
26,539 |
|
$ |
(370 |
) |
|
$ |
(57,288 |
) |
|
$ |
283,243 |
Depreciation and amortization |
|
$ |
182,188 |
|
$ |
20,633 |
|
$ |
8,812 |
|
$ |
— |
|
|
$ |
100 |
|
|
$ |
211,733 |
Property and equipment impairment expense (1) |
|
$ |
188,601 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
188,601 |
Goodwill impairment expense (2) |
|
$ |
— |
|
$ |
23,624 |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
23,624 |
Operating lease expense on FORCE® fleets (3) |
|
$ |
47,141 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
47,141 |
Capital expenditures |
|
$ |
116,257 |
|
$ |
7,713 |
|
$ |
9,376 |
|
$ |
— |
|
|
$ |
42 |
|
|
$ |
133,388 |
Goodwill |
|
$ |
920 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
920 |
Total assets |
|
$ |
961,485 |
|
$ |
156,349 |
|
$ |
73,935 |
|
$ |
— |
|
|
$ |
31,876 |
|
|
$ |
1,223,645 |
|
|
Year Ended |
|||||||||||||||||
|
|
December 31, 2023 |
|||||||||||||||||
(in thousands) |
|
Hydraulic
|
|
Wireline |
|
Cementing |
|
All Other |
|
Reconciling
|
|
Total |
|||||||
Service revenue |
|
$ |
1,280,523 |
|
$ |
229,599 |
|
$ |
120,277 |
|
$ |
— |
|
$ |
— |
|
|
$ |
1,630,399 |
Adjusted EBITDA for reportable segments |
|
$ |
366,809 |
|
$ |
61,930 |
|
$ |
24,665 |
|
$ |
— |
|
$ |
(49,444 |
) |
|
$ |
403,960 |
Depreciation and amortization |
|
$ |
156,057 |
|
$ |
18,762 |
|
$ |
5,845 |
|
$ |
— |
|
$ |
222 |
|
|
$ |
180,886 |
Operating lease expense on FORCE® fleets (3) |
|
$ |
5,087 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
5,087 |
Capital expenditures |
|
$ |
294,377 |
|
$ |
12,203 |
|
$ |
3,440 |
|
$ |
— |
|
$ |
— |
|
|
$ |
310,020 |
Goodwill |
|
$ |
— |
|
$ |
23,624 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
23,624 |
Total assets |
|
$ |
1,189,526 |
|
$ |
198,957 |
|
$ |
78,475 |
|
$ |
— |
|
$ |
13,354 |
|
|
$ |
1,480,312 |
(1) |
|
Represents noncash property and equipment impairment expense on our Tier II Units for the year ended December 31, 2024. There was no impairment expense for the year ended December 31, 2023. |
(2) |
|
Represents noncash impairment of goodwill in our wireline operating segment. |
(3) |
|
Represents lease costs related to operating leases on our FORCE® electric-powered hydraulic fracturing fleets. This cost is recorded within cost of services in our condensed consolidated statements of operations. |
Non-GAAP Financial Measures
Adjusted Net Income (Loss), Adjusted EBITDA, Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration are not financial measures presented in accordance with GAAP. We define Adjusted Net Income (Loss) as net income (loss) plus impairment expenses, less income tax benefit. We define EBITDA as net income (loss) plus (i) interest expense, (ii) income tax expense (benefit) and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA plus (i) loss (gain) on disposal of assets and business, (ii) stock-based compensation, (iii) business acquisition contingent consideration adjustments, (iv) other expense (income), (v) other unusual or nonrecurring (income) expenses such as impairment expenses, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements and (vi) retention bonus and severance expense. We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities. We define Free Cash Flow adjusted for Acquisition Consideration as Free Cash Flow excluding net cash paid as consideration for business acquisitions.
We believe that the presentation of these non-GAAP financial measures provide useful information to investors in assessing our financial condition and results of operations. Net income (loss) is the GAAP measure most directly comparable to Adjusted Net Income (Loss), Adjusted EBITDA, and net cash from operating activities is the GAAP measure most directly comparable to Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration. Non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider Adjusted Net Income (Loss), Adjusted EBITDA, Free Cash Flow or Free Cash Flow adjusted for Acquisition Consideration in isolation or as a substitute for an analysis of our results as reported under GAAP. Because Adjusted Net Income (Loss), Adjusted EBITDA, Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Three Months Ended |
|
Year Ended |
||||||||||||
(in thousands) |
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|||||||
Net (loss) income |
$ |
(17,062 |
) |
|
$ |
(137,067 |
) |
$ |
(137,859 |
) |
$ |
85,634 |
||
Property and equipment impairment expense (1) |
|
— |
|
|
188,601 |
|
|
|
188,601 |
|
|
— |
||
Goodwill impairment expense (2) |
|
23,624 |
|
|
— |
|
|
|
23,624 |
|
|
— |
||
Income tax benefit |
|
(7,158 |
) |
|
(38,230 |
) |
|
(45,388 |
) |
|
— |
|||
Adjusted net (loss) income |
$ |
(596 |
) |
|
$ |
13,304 |
|
$ |
28,978 |
|
|
$ |
85,634 |
|
(1) |
|
Represents noncash impairment of our conventional Tier II diesel-only hydraulic fracturing pumps and associated conventional assets. |
(2) |
|
Represents noncash impairment of goodwill in our wireline operating segment. |
Reconciliation of Net Income (Loss) to Adjusted EBITDA
|
|
Three Months Ended |
|
Year Ended |
|||||||||||
(in thousands) |
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|||||||
Net (loss) income |
|
$ |
(17,062 |
) |
|
$ |
(137,067 |
) |
|
$ |
(137,859 |
) |
|
$ |
85,634 |
Depreciation and amortization |
|
|
47,706 |
|
|
54,299 |
|
|
|
211,733 |
|
|
|
180,886 |
|
Property and equipment impairment expense (1) |
|
|
— |
|
|
188,601 |
|
|
|
188,601 |
|
|
|
— |
|
Goodwill impairment expense (2) |
|
|
23,624 |
|
|
— |
|
|
|
23,624 |
|
|
|
— |
|
Interest expense |
|
|
1,882 |
|
|
1,939 |
|
|
|
7,815 |
|
|
|
5,308 |
|
Income tax (benefit) expense |
|
|
(3,343 |
) |
|
|
(41,365 |
) |
|
|
(31,385 |
) |
|
|
29,868 |
(Gain) loss on disposal of assets and business |
|
|
(4,433 |
) |
|
|
2,149 |
|
|
|
7,451 |
|
|
|
73,015 |
Stock‑based compensation |
|
|
4,313 |
|
|
|
4,615 |
|
|
|
17,288 |
|
|
|
14,450 |
Business acquisition contingent consideration adjustments (5) |
|
|
(800 |
) |
|
|
(1,800 |
) |
|
|
(2,600 |
) |
|
|
— |
Other expense (income), net (3) |
|
|
76 |
|
|
|
(1,799 |
) |
|
|
(5,531 |
) |
|
|
9,533 |
Other general and administrative expense, net (4) |
|
|
264 |
|
|
|
346 |
|
|
|
1,782 |
|
|
|
2,969 |
Retention bonus and severance expense |
|
|
429 |
|
|
|
1,212 |
|
|
|
2,324 |
|
|
|
2,297 |
Adjusted EBITDA |
|
$ |
52,656 |
|
|
$ |
71,130 |
|
|
$ |
283,243 |
|
|
$ |
403,960 |
|
|
|
|
|
|
|
|
|
|||||||
(1) |
|
Represents the noncash impairment expense of our conventional Tier II diesel-only hydraulic fracturing pumps and associated conventional assets. |
(2) |
|
Represents the noncash impairment expense of goodwill in our wireline operating segment. |
(3) |
|
Other income for the three months ended September 30, 2024, is primarily comprised of tax refunds (net of advisory fees) of |
(4) |
|
Other general and administrative expense for the year ended December 31, 2024, primarily relates to nonrecurring professional fees paid to external consultants in connection with our business acquisitions. Other general and administrative expense for the year ended December 31, 2023, primarily relates to nonrecurring professional fees paid to external consultants in connection with our business acquisitions and legal settlements, net of reimbursement from insurance carriers. |
(5) |
|
Represents reclassification of AquaProp Earnout Liability reclassified from Other expense (income) net, to Income/loss from revaluation of contingent consideration, |
Reconciliation of Cash from Operating Activities to Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration
|
Three Months Ended |
|||||||
(in thousands) |
|
December 31, 2024 |
|
September 30, 2024 |
||||
Cash from Operating Activities |
|
$ |
37,863 |
|
|
$ |
34,669 |
|
Cash used in Investing Activities |
|
|
(24,496 |
) |
|
|
(39,680 |
) |
Free Cash Flow |
|
|
13,367 |
|
|
|
(5,011 |
) |
Acquisition Consideration |
|
|
— |
|
|
|
— |
|
Free Cash Flow adjusted for Acquisition Consideration |
|
$ |
13,367 |
|
|
$ |
(5,011 |
) |
|
Year Ended |
|||||||
(in thousands) |
|
December 31, 2024 |
December 31, 2023 |
|||||
Cash from Operating Activities |
|
$ |
252,295 |
|
$ |
374,742 |
|
|
Cash used in Investing Activities |
|
|
(155,099 |
) |
|
(384,127 |
) |
|
Free Cash Flow |
|
|
97,196 |
|
|
(9,385 |
) |
|
Acquisition Consideration |
|
|
21,038 |
|
|
22,215 |
|
|
Free Cash Flow adjusted for Acquisition Consideration |
|
$ |
118,234 |
|
|
$ |
12,830 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219232763/en/
Investor Contacts:
David Schorlemer
Chief Financial Officer
david.schorlemer@propetroservices.com
432-227-0864
Matt Augustine
Director, Corporate Development and Investor Relations
matt.augustine@propetroservices.com
432-219-7620
Source: ProPetro Holding Corp.
FAQ
What was ProPetro's (PUMP) revenue performance in 2024 compared to 2023?
How many shares has ProPetro (PUMP) repurchased since May 2023?
What are ProPetro's (PUMP) capital expenditure projections for 2025?
How much power generation capacity will ProPetro's (PUMP) PROPWR business have by early 2026?
What was ProPetro's (PUMP) Q4 2024 revenue and net loss?
