ProPetro Reports Financial Results for the Second Quarter of 2024
ProPetro Holding Corp. (NYSE: PUMP) reported second quarter 2024 results. Revenue decreased 12% to $357 million from the previous quarter. The company posted a net loss of $4 million ($0.03 per diluted share) compared to a net income of $20 million in the prior quarter. Adjusted EBITDA fell 29% to $66 million. Net cash from operations was $105 million with Free Cash Flow at $48 million. ProPetro's capital expenditure guidance for 2024 has been reduced to $175-$200 million.
ProPetro continues to transition to FORCESM electric fleets, now operating four with a fifth on order. The company acquired Aqua Prop and repurchased 2.5 million shares, retiring a total of 11.3 million shares since May 2023. Challenges included pricing pressures and customer delays. Despite this, ProPetro remains confident in its long-term strategy and strong free cash flow generation.
ProPetro Holding Corp. (NYSE: PUMP) ha riportato i risultati del secondo trimestre del 2024. I ricavi sono diminuiti del 12% a 357 milioni di dollari rispetto al trimestre precedente. L'azienda ha registrato una perdita netta di 4 milioni di dollari (0,03 dollari per azione diluita) rispetto a un utile netto di 20 milioni di dollari nel trimestre precedente. L'EBITDA rettificato è sceso del 29% a 66 milioni di dollari. Il flusso di cassa netto dalle operazioni è stato di 105 milioni di dollari, con un flusso di cassa libero di 48 milioni di dollari. Le indicazioni sugli investimenti di capitale di ProPetro per il 2024 sono state ridotte a 175-200 milioni di dollari.
ProPetro continua la transizione verso flotte elettriche FORCESM, operando attualmente quattro unità con una quinta in ordine. L'azienda ha acquisito Aqua Prop e ha riacquistato 2,5 milioni di azioni, ritirando un totale di 11,3 milioni di azioni dal maggio 2023. Le sfide includono pressioni sui prezzi e ritardi da parte dei clienti. Nonostante ciò, ProPetro rimane fiduciosa nella sua strategia a lungo termine e nella generazione di un forte flusso di cassa libero.
ProPetro Holding Corp. (NYSE: PUMP) reportó los resultados del segundo trimestre de 2024. Los ingresos disminuyeron un 12% a 357 millones de dólares en comparación con el trimestre anterior. La empresa registró una pérdida neta de 4 millones de dólares (0,03 dólares por acción diluida) en comparación con una ganancia neta de 20 millones de dólares en el trimestre anterior. El EBITDA ajustado cayó un 29% a 66 millones de dólares. El flujo de efectivo neto de las operaciones fue de 105 millones de dólares, con un flujo de efectivo libre de 48 millones de dólares. La guía de gastos de capital de ProPetro para 2024 se ha reducido a 175-200 millones de dólares.
ProPetro continúa su transición a flotas eléctricas FORCESM, operando actualmente cuatro y con una quinta en orden. La compañía adquirió Aqua Prop y recompró 2,5 millones de acciones, retirando un total de 11,3 millones de acciones desde mayo de 2023. Los desafíos incluyeron presiones sobre los precios y retrasos por parte de los clientes. A pesar de esto, ProPetro sigue confiada en su estrategia a largo plazo y en la generación de un fuerte flujo de efectivo libre.
ProPetro Holding Corp. (NYSE: PUMP)는 2024년 2분기 실적을 발표했습니다. 매출이 전 분기 대비 12% 감소한 3억 5,700만 달러로 나타났습니다. 회사는 400만 달러(희석주당 0.03달러)의 순손실을 기록했으며, 이는 전 분기 2천만 달러의 순이익과 비교됩니다. 조정된 EBITDA는 29% 감소하여 6천 6백만 달러에 달했습니다. 운영에서 발생한 순현금은 1억 5백만 달러였고, 자유 현금 흐름은 4천 8백만 달러에 이릅니다. ProPetro의 2024년 자본 지출 가이던스는 1억 7천5백만 달러에서 2억 달러로 감소했습니다.
ProPetro는 현재 네 대의 FORCESM 전기 플릿을 운영하고 있으며, 다섯 번째 차량도 주문했습니다. 회사는 Aqua Prop를 인수하고, 250만 주를 재매입하여 2023년 5월 이후 총 1,130만 주를 퇴출했습니다. 가격 압박과 고객 지연 등 도전 과제가 있었지만, ProPetro는 장기 전략과 강력한 자유 현금 흐름 생성에 대한 자신감을 유지하고 있습니다.
ProPetro Holding Corp. (NYSE: PUMP) a annoncé les résultats du deuxième trimestre 2024. Les revenus ont diminué de 12 % pour atteindre 357 millions de dollars par rapport au trimestre précédent. L'entreprise a enregistré une perte nette de 4 millions de dollars (0,03 dollar par action diluée) comparativement à un bénéfice net de 20 millions de dollars au trimestre précédent. L'EBITDA ajusté a chuté de 29 % à 66 millions de dollars. Le flux de trésorerie net provenant des opérations s'élevait à 105 millions de dollars, avec un flux de trésorerie libre de 48 millions de dollars. Les prévisions de dépenses en capital de ProPetro pour 2024 ont été réduites à 175-200 millions de dollars.
ProPetro continue sa transition vers des flottes électriques FORCESM, opérant actuellement quatre unités, avec une cinquième en commande. L'entreprise a acquis Aqua Prop et a racheté 2,5 millions d'actions, retirant un total de 11,3 millions d'actions depuis mai 2023. Les défis incluaient des pressions sur les prix et des retards des clients. Malgré cela, ProPetro reste confiant dans sa stratégie à long terme et sa capacité à générer un fort flux de trésorerie libre.
ProPetro Holding Corp. (NYSE: PUMP) hat die Ergebnisse des zweiten Quartals 2024 veröffentlicht. Der Umsatz sank um 12 % auf 357 Millionen Dollar im Vergleich zum vorherigen Quartal. Das Unternehmen verzeichnete einen Nettoverlust von 4 Millionen Dollar (0,03 Dollar pro verwässerter Aktie) im Vergleich zu einem Nettogewinn von 20 Millionen Dollar im vorherigen Quartal. Das bereinigte EBITDA fiel um 29 % auf 66 Millionen Dollar. Der Nettobarfluss aus dem operativen Geschäft betrug 105 Millionen Dollar, während der freie Cashflow bei 48 Millionen Dollar lag. Die Kapitalausgabenschätzung von ProPetro für 2024 wurde auf 175-200 Millionen Dollar gesenkt.
ProPetro setzt weiterhin auf die Umstellung auf FORCESM Elektroflotten und betreibt derzeit vier Fahrzeuge, mit einem fünften in Bestellung. Das Unternehmen erwarb Aqua Prop und kaufte 2,5 Millionen Aktien zurück, wodurch insgesamt 11,3 Millionen Aktien seit Mai 2023 zurückgezogen wurden. Herausforderungen umfassten Preisdruck und Kundenverzögerungen. Trotz dieser Herausforderungen bleibt ProPetro zuversichtlich hinsichtlich seiner langfristigen Strategie und der starken Generierung von Freimittelzuflüssen.
- Generated $105 million in net cash from operations.
- Free Cash Flow reached $48 million, up from $41 million.
- Repurchased and retired 2.5 million shares, totaling 11.3 million.
- Four FORCESM electric fleets contracted and fifth ordered.
- Acquired Aqua Prop , expanding service offerings.
- Capital expenditure guidance reduced from $200-$250 million to $175-$200 million.
- Revenue decreased 12% to $357 million.
- Net loss of $4 million against a $20 million net income in Q1 2024.
- Adjusted EBITDA fell 29% to $66 million.
- General and administrative expenses increased to $31 million.
ProPetro's Q2 2024 results paint a mixed picture, reflecting both resilience and challenges in a tough market environment. The company reported total revenue of
Despite the revenue drop, ProPetro demonstrated strong cash flow management. Net cash provided by operating activities was
The company's strategic focus on transitioning to FORCE℠ electric equipment is progressing well, with four fleets now under contract and three currently operating. This shift towards more efficient and environmentally friendly technology could provide a competitive edge in the long term.
ProPetro's acquisition of AquaProp℠ and its share repurchase program (retiring
The reduced capital expenditure guidance for 2024 (
ProPetro's Q2 2024 results offer valuable insights into the current state of the oilfield services sector. The company's performance reflects broader industry trends, including pricing pressures and customer delays, which are likely impacting competitors as well.
The bifurcation in demand between advanced electric fleets and traditional diesel equipment is a key trend to watch. ProPetro's success with its FORCE℠ electric fleets, evidenced by strong demand outstripping current supply, suggests a growing market preference for more efficient and environmentally friendly solutions. This shift could reshape the competitive landscape in the coming years.
ProPetro's strategic acquisitions, such as AquaProp℠, indicate a focus on vertical integration and service diversification. This approach could enhance the company's resilience to market fluctuations and provide new growth avenues.
The company's shift from reporting fleet utilization based on days worked to active frac fleets is noteworthy. This change in metrics suggests improved efficiencies and a more accurate representation of asset utilization. Investors and analysts should adjust their models accordingly to better assess ProPetro's performance relative to peers.
Looking ahead, ProPetro's expectation that the second half of 2024 will mirror the first half suggests ongoing challenges in the oilfield services market. However, the company's focus on advanced technology and operational efficiency could position it favorably for any potential market recovery.
Second Quarter 2024 Results and Highlights
-
Total revenue of
$357 million 12% compared to the prior quarter. -
Net loss was
$4 million $0.03 $20 million $0.18 -
Adjusted EBITDA(1) of
$66 million 19% of revenue and decreased29% compared to the prior quarter. -
Net cash provided by operating activities was
$105 million $48 million -
Year-to-date net cash provided by operating activities, Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration(2) were
$180 million $89 million $110 million - Four FORCESM electric hydraulic fracturing fleets are now under contract to leading customers with three FORCESM electric fleets currently operating.
- Placed an order for our fifth FORCESM electric fleet to be delivered and deployed in 2024.
- Effective frac fleet utilization was 15.5 fleets compared to 15.0 fleets in the prior quarter.
- Acquired Aqua Prop LLC ("AquaPropSM"), an innovative provider of cost-effective wet sand solutions.
-
Repurchased and retired 2.5 million shares during the quarter with total repurchases of 11.3 million shares representing approximately
10% of outstanding shares since plan inception in May 2023.
(1) |
Adjusted EBITDA is a non-GAAP financial measure and is 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." |
Management Comments
Sam Sledge, Chief Executive Officer, commented, "In the second quarter of 2024, despite industry challenges, ProPetro's strategic focus on industrializing our business and creating long term value remains strong. We continue to generate strong free cash flow, showcasing the effectiveness of our strategy. Our ongoing transition from diesel equipment to FORCESM electric equipment remains on track, bolstering our competitive edge both commercially and operationally. Our recent acquisitions, including AquaPropSM, highlight our disciplined approach to value accretive M&A and in the face of a challenging energy services landscape, ProPetro's strategic initiatives are delivering. Our transformational efforts, including fleet optimization, share repurchases, and opportunistic acquisitions, have bolstered our financial resilience and positioned us favorably amidst industry headwinds. Demand for our bifurcated services remains strong, underscored by our commitment to operational excellence and the deployment of innovative technologies like our FORCESM electric equipment. With a clear focus on industrialization and disciplined capital allocation, we are confident in our ability to sustain strong free cash flow and drive long-term value for our stakeholders."
David Schorlemer, Chief Financial Officer, said, "Our second quarter results reflect a remarkable turnaround unfolding at ProPetro, one of reliable free cash flow generation. While revenues and profitability were impacted by some customer delays and pricing pressures predominantly on our Tier II diesel frac fleets, capital spending remained low driving a fifth consecutive quarter of strong free cash flow. Another key aspect of our strategy has been selective M&A to complement our existing businesses and drive incremental free cash flow per share. Since acquiring Silvertip, we have repurchased and retired more than
Second 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
Net cash provided by operating activities was
Share Repurchase Program
On April 24, 2024, the Company announced a
Liquidity and Capital Spending
As of June 30, 2024, total cash was
Capital expenditures during the second quarter of 2024 were primarily related to maintenance and support equipment for our FORCESM electric hydraulic fracturing fleet deployments. Net cash used in investing activities during the second quarter of 2024 was
Guidance
The Company is now reducing our full-year 2024 capital expenditure guidance to be between
Our effective frac fleet utilization for the second quarter was 15.5 fleets, which was above the guidance range we had provided. Thanks to efficiencies exceeding our expectations from previous years, we are shifting away from reporting on fleet utilization based on days worked. Instead, we'll focus on guiding and reporting the number of active frac fleets, which we believe better represents asset utilization in our hydraulic fracturing business. During the second quarter, 14 hydraulic fracturing fleets were active and we expect to run approximately 14 active frac fleets in the third quarter of 2024.
Outlook
Mr. Sledge added, “Looking ahead, we expect the second half of the year to play out similarly to the first half. Our bifurcated fleet offering paired with a first class operating team is contributing to industry-leading efficiencies and high customer satisfaction. The demand for our FORCESM electric equipment continues to outstrip our current supply and that demand coupled with the continued integration of our recent acquisitions should support even more resilient earnings as we progress through the balance of this year and beyond. Additionally, with our strong balance sheet and steady free cash flow generation, we continue to make excellent progress on all our strategic priorities, and we will continue to evaluate opportunities to further enhance financial returns and the overall competitiveness of our offering.”
Mr. Sledge concluded, “Our strategy is designed to navigate the current market environment and drive long-term value. With a focus on operational excellence, advanced technology adoption, and a sound financial footing, ProPetro has minimized the volatility present in past cycles and is well-prepared to capitalize on the opportunities ahead.”
Conference Call Information
The Company will host a conference call at 8:00 AM Central Time on Wednesday, July 31, 2024, to discuss financial and operating results for the second 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,” "confident," “plan,” “project,” “budget,” "design," “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, industry trends and activity levels, our business strategy, 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 and our share repurchase program. 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, 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 |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
REVENUE - Service revenue |
|
$ |
357,021 |
|
|
$ |
405,843 |
|
|
$ |
435,249 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
||||||
Cost of services (exclusive of depreciation and amortization) |
|
|
265,845 |
|
|
|
288,641 |
|
|
|
297,791 |
|
General and administrative (inclusive of stock-based compensation) |
|
|
30,910 |
|
|
|
28,226 |
|
|
|
29,021 |
|
Depreciation and amortization |
|
|
57,522 |
|
|
|
52,206 |
|
|
|
41,118 |
|
Loss on disposal of assets |
|
|
3,277 |
|
|
|
6,458 |
|
|
|
14,836 |
|
Total costs and expenses |
|
|
357,554 |
|
|
|
375,531 |
|
|
|
382,766 |
|
OPERATING (LOSS) INCOME |
|
|
(533 |
) |
|
|
30,312 |
|
|
|
52,483 |
|
OTHER (EXPENSE) INCOME: |
|
|
|
|
|
|
||||||
Interest expense |
|
|
(1,965 |
) |
|
|
(2,029 |
) |
|
|
(1,180 |
) |
Other income (expense), net |
|
|
2,403 |
|
|
|
1,405 |
|
|
|
72 |
|
Total other (expense) income, net |
|
|
438 |
|
|
|
(624 |
) |
|
|
(1,108 |
) |
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(95 |
) |
|
|
29,688 |
|
|
|
51,375 |
|
INCOME TAX BENEFIT (EXPENSE) |
|
|
(3,565 |
) |
|
|
(9,758 |
) |
|
|
(12,118 |
) |
NET (LOSS) INCOME |
|
$ |
(3,660 |
) |
|
$ |
19,930 |
|
|
$ |
39,257 |
|
|
|
|
|
|
|
|
||||||
NET (LOSS) INCOME PER COMMON SHARE: |
|
|
|
|
|
|
||||||
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.18 |
|
|
$ |
0.34 |
|
Diluted |
|
$ |
(0.03 |
) |
|
$ |
0.18 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
||||||
Basic |
|
|
106,303 |
|
|
|
108,540 |
|
|
|
114,737 |
|
Diluted |
|
|
106,303 |
|
|
|
108,989 |
|
|
|
114,796 |
|
NOTE: Certain reclassifications to loss on disposal of assets and depreciation and amortization have been made to the statement of operations and the statement of cash flows for the periods prior to 2024 to conform to the current period presentation. |
||||||||||||
PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) |
||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||
ASSETS |
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
66,886 |
|
$ |
33,354 |
Accounts receivable - net of allowance for credit losses of |
|
|
220,699 |
|
|
237,012 |
Inventories |
|
|
18,742 |
|
|
17,705 |
Prepaid expenses |
|
|
11,870 |
|
|
14,640 |
Short-term investment, net |
|
|
7,797 |
|
|
7,745 |
Other current assets |
|
|
1,153 |
|
|
353 |
Total current assets |
|
|
327,147 |
|
|
310,809 |
PROPERTY AND EQUIPMENT - net of accumulated depreciation |
|
|
923,213 |
|
|
967,116 |
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
|
125,546 |
|
|
78,583 |
FINANCE LEASE RIGHT-OF-USE ASSETS |
|
|
40,411 |
|
|
47,449 |
OTHER NONCURRENT ASSETS: |
|
|
|
|
||
Goodwill |
|
|
26,754 |
|
|
23,624 |
Intangible assets - net of amortization |
|
|
67,384 |
|
|
50,615 |
Other noncurrent assets |
|
|
1,872 |
|
|
2,116 |
Total other noncurrent assets |
|
|
96,010 |
|
|
76,355 |
TOTAL ASSETS |
|
$ |
1,512,327 |
|
$ |
1,480,312 |
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
||
Accounts payable |
|
$ |
158,907 |
|
$ |
161,441 |
Accrued and other current liabilities |
|
|
87,663 |
|
|
75,616 |
Operating lease liabilities |
|
|
30,349 |
|
|
17,029 |
Finance lease liabilities |
|
|
18,625 |
|
|
17,063 |
Total current liabilities |
|
|
295,544 |
|
|
271,149 |
DEFERRED INCOME TAXES |
|
|
103,462 |
|
|
93,105 |
LONG-TERM DEBT |
|
|
45,000 |
|
|
45,000 |
NONCURRENT OPERATING LEASE LIABILITIES |
|
|
58,560 |
|
|
38,600 |
NONCURRENT FINANCE LEASE LIABILITIES |
|
|
23,013 |
|
|
30,886 |
OTHER LONG-TERM LIABILITIES |
|
|
10,900 |
|
|
3,180 |
Total liabilities |
|
|
536,479 |
|
|
481,920 |
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
105 |
|
|
109 |
Additional paid-in capital |
|
|
890,439 |
|
|
929,249 |
Retained earnings |
|
|
85,304 |
|
|
69,034 |
Total shareholders’ equity |
|
|
975,848 |
|
|
998,392 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
1,512,327 |
|
$ |
1,480,312 |
PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
Six Months Ended June 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income |
|
$ |
16,270 |
|
|
$ |
67,990 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
109,728 |
|
|
|
79,389 |
|
Deferred income tax expense |
|
|
10,357 |
|
|
|
18,897 |
|
Amortization of deferred debt issuance costs |
|
|
217 |
|
|
|
140 |
|
Stock-based compensation |
|
|
8,360 |
|
|
|
7,294 |
|
Loss on disposal of assets |
|
|
9,735 |
|
|
|
49,443 |
|
Unrealized (gain) loss on short-term investment |
|
|
(52 |
) |
|
|
3,846 |
|
Changes in operating assets and liabilities, net of effects of business acquisition: |
|
|
|
|
||||
Accounts receivable |
|
|
26,641 |
|
|
|
(35,178 |
) |
Other current assets |
|
|
(568 |
) |
|
|
(983 |
) |
Inventories |
|
|
(1,036 |
) |
|
|
(6,792 |
) |
Prepaid expenses |
|
|
2,797 |
|
|
|
(144 |
) |
Accounts payable |
|
|
(5,254 |
) |
|
|
(3,160 |
) |
Accrued and other current liabilities |
|
|
2,568 |
|
|
|
6,272 |
|
Net cash provided by operating activities |
|
|
179,763 |
|
|
|
187,014 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Capital expenditures |
|
|
(71,805 |
) |
|
|
(223,775 |
) |
Business acquisition, net of cash acquired |
|
|
(21,038 |
) |
|
|
— |
|
Proceeds from sale of assets |
|
|
1,920 |
|
|
|
2,044 |
|
Net cash used in investing activities |
|
|
(90,923 |
) |
|
|
(221,731 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings |
|
|
— |
|
|
|
30,000 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(1,179 |
) |
Payments on finance lease obligations |
|
|
(8,542 |
) |
|
|
— |
|
Tax withholdings paid for net settlement of equity awards |
|
|
(1,270 |
) |
|
|
(3,383 |
) |
Share repurchases |
|
|
(45,496 |
) |
|
|
(17,470 |
) |
Net cash (used in) provided by financing activities |
|
|
(55,308 |
) |
|
|
7,968 |
|
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
33,532 |
|
|
|
(26,749 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period |
|
|
33,354 |
|
|
|
88,862 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period |
|
$ |
66,886 |
|
|
$ |
62,113 |
|
Reportable Segment Information |
|||||||||||||||
|
Three Months Ended June 30, 2024 |
||||||||||||||
(in thousands) |
Hydraulic
|
|
Wireline |
|
All Other |
|
Reconciling
|
|
Total |
||||||
Service revenue |
$ |
271,628 |
|
$ |
49,202 |
|
$ |
36,277 |
|
$ |
(86 |
) |
|
$ |
357,021 |
Adjusted EBITDA |
$ |
63,623 |
|
$ |
10,793 |
|
$ |
6,583 |
|
$ |
(14,937 |
) |
|
$ |
66,062 |
Depreciation and amortization |
$ |
50,082 |
|
$ |
5,129 |
|
$ |
2,279 |
|
$ |
32 |
|
|
$ |
57,522 |
Operating lease expense on FORCESM fleets (1) |
$ |
11,533 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
11,533 |
Capital expenditures incurred |
$ |
25,631 |
|
$ |
1,943 |
|
$ |
4,376 |
|
$ |
— |
|
|
$ |
31,950 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended March 31, 2024 |
||||||||||||||
(in thousands) |
Hydraulic
|
|
Wireline |
|
All Other |
|
Reconciling
|
|
Total |
||||||
Service revenue |
$ |
309,300 |
|
$ |
60,805 |
|
$ |
35,738 |
|
$ |
— |
|
|
$ |
405,843 |
Adjusted EBITDA |
$ |
86,119 |
|
$ |
16,786 |
|
$ |
4,861 |
|
$ |
(14,371 |
) |
|
$ |
93,395 |
Depreciation and amortization |
$ |
44,995 |
|
$ |
4,915 |
|
$ |
2,271 |
|
$ |
25 |
|
|
$ |
52,206 |
Operating lease expense on FORCESM fleets (1) |
$ |
8,592 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
8,592 |
Capital expenditures incurred |
$ |
35,988 |
|
$ |
2,386 |
|
$ |
1,466 |
|
$ |
— |
|
|
$ |
39,840 |
|
|
|
|
|
|
|
|
|
|
||||||
(1) |
Represents lease cost related to operating leases on our FORCESM 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 EBITDA, Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration are not financial measures presented in accordance with GAAP. 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, (ii) stock-based compensation, (iii) other expense (income), (iv) other unusual or nonrecurring (income) expenses such as costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements and (v) 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 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 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 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 to Adjusted EBITDA |
|||||||
|
Three Months Ended |
||||||
(in thousands) |
June 30, 2024 |
|
March 31, 2024 |
||||
Net (loss) income |
$ |
(3,660 |
) |
|
$ |
19,930 |
|
Depreciation and amortization |
|
57,522 |
|
|
|
52,206 |
|
Interest expense |
|
1,965 |
|
|
|
2,029 |
|
Income tax expense |
|
3,565 |
|
|
|
9,758 |
|
Loss on disposal of assets |
|
3,277 |
|
|
|
6,458 |
|
Stock-based compensation |
|
4,618 |
|
|
|
3,742 |
|
Other income, net (1) |
|
(2,403 |
) |
|
|
(1,405 |
) |
Other general and administrative expense, net |
|
1,113 |
|
|
|
59 |
|
Retention bonus and severance expense |
|
65 |
|
|
|
618 |
|
Adjusted EBITDA |
$ |
66,062 |
|
|
$ |
93,395 |
|
(1) |
Other income for the three months ended June 30, 2024 is primarily comprised of tax refunds of |
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(in thousands) |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Net Cash provided by Operating |
$ |
104,941 |
|
|
$ |
74,822 |
|
|
$ |
179,763 |
|
|
$ |
187,014 |
|
Net Cash used in Investing Activities |
|
(57,076 |
) |
|
|
(33,847 |
) |
|
|
(90,923 |
) |
|
|
(221,731 |
) |
Free Cash Flow |
|
47,865 |
|
|
|
40,975 |
|
|
|
88,840 |
|
|
|
(34,717 |
) |
Acquisition Consideration |
|
21,038 |
|
|
|
— |
|
|
|
21,038 |
|
|
|
— |
|
Free Cash Flow adjusted for Acquisition Consideration |
$ |
68,903 |
|
|
$ |
40,975 |
|
|
$ |
109,878 |
|
|
$ |
(34,717 |
) |
|
|
|
|
|
|
|
|
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731909321/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.
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