ProPetro Reports Financial Results for the Third Quarter of 2024
ProPetro reported Q3 2024 financial results with total revenue of $361 million, up 1% from previous quarter. The company recorded a net loss of $137 million ($1.32 per diluted share), including a $189 million noncash impairment expense related to Tier II diesel-only equipment. Adjusted EBITDA was $71 million, representing 20% of revenue. The company repurchased 1.3 million shares during Q3, with total repurchases of 12.6 million shares since May 2023. Three FORCE® electric-powered hydraulic fracturing fleets are operational, with fourth and fifth deployments planned for year-end 2024 and early 2025.
ProPetro ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato totale di 361 milioni di dollari, in aumento dell'1% rispetto al trimestre precedente. L'azienda ha registrato una perdita netta di 137 milioni di dollari (1,32 dollari per azione diluita), inclusi 189 milioni di dollari come spese non monetarie per svalutazione relative a attrezzature solo diesel di livello II. L'EBITDA rettificato è stato di 71 milioni di dollari, pari al 20% del fatturato. L'azienda ha riacquistato 1,3 milioni di azioni durante il terzo trimestre, con un totale di 12,6 milioni di azioni riacquistate da maggio 2023. Tre flotte di fratturazione idraulica elettrica FORCE® sono operative, con il quarto e quinto dispiegamento previsti per la fine del 2024 e l'inizio del 2025.
ProPetro reportó los resultados financieros del tercer trimestre de 2024, con unos ingresos totales de 361 millones de dólares, lo que representa un aumento del 1% con respecto al trimestre anterior. La compañía registró una pérdida neta de 137 millones de dólares (1.32 dólares por acción diluida), incluyendo un gasto por deterioro no monetario de 189 millones de dólares relacionado con equipos solo diésel de Nivel II. El EBITDA ajustado fue de 71 millones de dólares, representando el 20% de los ingresos. La empresa recompró 1.3 millones de acciones durante el tercer trimestre, con un total de 12.6 millones de acciones recompradas desde mayo de 2023. Tres flotas de fracturación hidráulica eléctrica FORCE® están operativas, con el cuarto y quinto despliegue planificado para finales de 2024 y principios de 2025.
ProPetro는 2024년 3분기 재무 결과를 보고하였으며, 총 수익은 3억 6,100만 달러로, 이전 분기 대비 1% 증가했습니다. 이 회사는 1억 3,700만 달러의 순손실을 기록했으며(희석 주당 1.32달러), 이에는 2단계 디젤 전용 장비와 관련된 1억 8,900만 달러의 비현금 손상 비용이 포함됩니다. 조정된 EBITDA는 7,100만 달러로, 수익의 20%를 차지합니다. 이 회사는 3분기 동안 130만 주를 재매입했으며, 2023년 5월 이후 총 1,260만 주를 재매입했습니다. 전기 동력 유압 파쇄 시스템 FORCE® 세 대가 운영 중이며, 네 번째 및 다섯 번째 배치가 2024년 말 및 2025년 초에 예정되어 있습니다.
ProPetro a annoncé les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires total de 361 millions de dollars, en hausse de 1% par rapport au trimestre précédent. L'entreprise a enregistré une perte nette de 137 millions de dollars (1,32 dollar par action diluée), y compris une charge de dépréciation non monétaire de 189 millions de dollars liée aux équipements uniquement diesel de niveau II. L'EBITDA ajusté s'élevait à 71 millions de dollars, représentant 20% du chiffre d'affaires. L'entreprise a racheté 1,3 million d'actions au cours du troisième trimestre, portant le total des rachats à 12,6 millions d'actions depuis mai 2023. Trois flottes de fracturation hydraulique électrique FORCE® sont opérationnelles, avec des déploiements quatrième et cinquième prévus pour fin 2024 et début 2025.
ProPetro hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 361 Millionen Dollar, was einem Anstieg von 1% im Vergleich zum vorherigen Quartal entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 137 Millionen Dollar (1,32 Dollar pro verwässerter Aktie), einschließlich eines 189 Millionen Dollar schweren, nicht zahlungswirksamen Wertminderungsaufwands im Zusammenhang mit Tier-II-Dieselgeräten. Das bereinigte EBITDA betrug 71 Millionen Dollar, was 20% des Umsatzes ausmacht. Das Unternehmen hat im dritten Quartal 1,3 Millionen Aktien zurückgekauft, insgesamt wurden seit Mai 2023 12,6 Millionen Aktien zurückgekauft. Drei FORCE® elektrisch betriebene hydraulische Frakturierungsflotten sind betriebsbereit, während der vierte und fünfte Einsatz für Ende 2024 und Anfang 2025 geplant sind.
- Revenue increased 1% to $361 million quarter-over-quarter
- Adjusted EBITDA improved 8% to $71 million (20% of revenue)
- Year-to-date operating cash flow of $214 million
- Successfully executing share repurchase program with 11% of outstanding shares retired
- Reduced full-year capital expenditure guidance to $150-175 million
- Net loss widened to $137 million from $4 million in previous quarter
- $189 million noncash impairment charge on conventional equipment
- Operating cash flow decreased to $35 million from $105 million in prior quarter
- Expected industry softness in Q4 due to seasonality and budget exhaustion
Insights
ProPetro's Q3 results reveal a complex financial picture. While revenue increased marginally by
The strategic transition to electric-powered fleets is gaining momentum, with three FORCE® fleets operational and two more planned. This shift, coupled with a
The strategic pivot from Tier II diesel-only equipment to next-generation electric fleets marks a significant industry transformation. The
Despite sector headwinds including weather impacts and customer spending moderation, ProPetro's Permian Basin focus and modernized fleet approach provide competitive advantages. The expected Q4 industry softness due to seasonal factors and budget exhaustion is typical, but the company's contracted electric fleet deployments offer earnings visibility.
Third Quarter 2024 Results and Highlights
-
Total revenue of
$361 million 1% compared to the prior quarter. -
Net loss was
$137 million $1.32 $4 million $0.03 -
The net loss in the third quarter included a noncash impairment expense of
$189 million
-
The net loss in the third quarter included a noncash impairment expense of
-
Adjusted Net Income in the quarter was
$13 million -
Adjusted EBITDA(1) of
$71 million 20% of revenue and increased8% compared to the prior quarter. -
Repurchased and retired 1.3 million shares during the quarter with total repurchases of 12.6 million shares representing approximately
11% of outstanding shares since plan inception in May 2023. -
Year-to-date net cash provided by operating activities, Free Cash Flow and Free Cash Flow adjusted for Acquisition Consideration(2) were
$214 million $84 million $105 million - Three FORCE® electric-powered hydraulic fracturing fleets are now operating under contract with leading customers with a fourth expected to be deployed by year-end and a fifth to be deployed in early 2025.
(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." |
Management Comments
Sam Sledge, Chief Executive Officer, commented, "ProPetro’s third quarter results reflect our team’s success in advancing our strategy, even in a turbulent market environment. Thanks to our decisive actions and despite moderated customer spending and activity levels, ProPetro delivered strong financial performance in the third quarter, while returning capital to shareholders and capturing additional market share. With three FORCE® electric fleets in the field, a fourth and fifth on the way, and plans to order and deploy more electric assets, ProPetro is meeting the growing demand for our next-generation services and solidifying our leadership position in the Permian Basin. The Company's strong financial performance, driven by our investment in industrialized equipment solutions and services, is supported by our commitment to operational excellence and financial discipline. In 2024, we have proven our ability to execute our strategy and are demonstrating the tremendous potential of ProPetro."
David Schorlemer, Chief Financial Officer, said, "Our third quarter results are signaling continued reliability of financial performance in our business. While short-term working capital headwinds impacted free cash flow, Adjusted EBITDA less our incurred capital expenditures remained strong. Additionally, revenues and Adjusted EBITDA were favorably impacted by improved utilization and cost management despite unfavorable weather delays during the quarter. Capital spending remained low leading to a reduction in our full year capital expenditure guidance for the second time this year. During the quarter, we also recorded a noncash impairment expense of approximately
Third Quarter 2024 Financial Summary
Revenue was
Cost of services, excluding depreciation and amortization of approximately
General and administrative ("G&A") expense of
Net loss totaled
Adjusted Net Income in the third quarter was
Adjusted EBITDA increased 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 September 30, 2024, total cash was
Capital expenditures incurred during the third quarter of 2024 were
Guidance
For the second time this year, the Company is reducing its full-year 2024 capital expenditure guidance to be between
During the third quarter, 14 hydraulic fracturing fleets were active and we expect to run approximately 14 active frac fleets in the fourth quarter of 2024.
Outlook
Mr. Sledge added, “Looking ahead, while we do expect some industry softness through normal seasonality and budget exhaustion in the fourth quarter, demand for our services remains strong. We believe ProPetro is uniquely positioned to capture the opportunities ahead and win quality market share. We remain confident in our ability to deliver strong financial results through the remainder of this year, in 2025, and beyond. To achieve this, we are focused on controlling what we can, through decisive actions that ensure prudent cost management and capital discipline. With healthy liquidity, a clean balance sheet and the derisking of future earnings through our next generation equipment and associated contracts, we believe ProPetro is optimally positioned to continue transitioning our fleet, strategically pursue organic and inorganic growth and deliver tangible, sustainable and increased value to our shareholders."
Conference Call Information
The Company will host a conference call at 8:00 AM Central Time on Wednesday, October 30, 2024, to discuss financial and operating results for the third 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,” "continue," 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 |
||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
||||||
REVENUE - Service revenue |
|
$ |
360,868 |
|
|
$ |
357,021 |
|
|
$ |
423,804 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
||||||
Cost of services (exclusive of depreciation and amortization) |
|
|
267,555 |
|
|
|
265,845 |
|
|
|
292,490 |
|
General and administrative (inclusive of stock-based compensation) |
|
|
28,356 |
|
|
|
30,910 |
|
|
|
28,597 |
|
Depreciation and amortization |
|
|
54,299 |
|
|
|
57,522 |
|
|
|
45,361 |
|
Impairment expense |
|
|
188,601 |
|
|
|
— |
|
|
|
— |
|
Loss on disposal of assets |
|
|
2,149 |
|
|
|
3,277 |
|
|
|
12,673 |
|
Total costs and expenses |
|
|
540,960 |
|
|
|
357,554 |
|
|
|
379,121 |
|
OPERATING (LOSS) INCOME |
|
|
(180,092 |
) |
|
|
(533 |
) |
|
|
44,683 |
|
OTHER (EXPENSE) INCOME: |
|
|
|
|
|
|
||||||
Interest expense |
|
|
(1,939 |
) |
|
|
(1,965 |
) |
|
|
(1,169 |
) |
Other income (expense), net |
|
|
3,599 |
|
|
|
2,403 |
|
|
|
1,883 |
|
Total other (expense) income, net |
|
|
1,660 |
|
|
|
438 |
|
|
|
714 |
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(178,432 |
) |
|
|
(95 |
) |
|
|
45,397 |
|
INCOME TAX BENEFIT (EXPENSE) |
|
|
41,365 |
|
|
|
(3,565 |
) |
|
|
(10,644 |
) |
NET (LOSS) INCOME |
|
$ |
(137,067 |
) |
|
$ |
(3,660 |
) |
|
$ |
34,753 |
|
|
|
|
|
|
|
|
||||||
NET (LOSS) INCOME PER COMMON SHARE: |
|
|
|
|
|
|
||||||
Basic |
|
$ |
(1.32 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.31 |
|
Diluted |
|
$ |
(1.32 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
||||||
Basic |
|
|
104,121 |
|
|
|
106,303 |
|
|
|
112,286 |
|
Diluted |
|
|
104,121 |
|
|
|
106,303 |
|
|
|
112,698 |
|
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) |
|||||||
|
|
September 30, 2024 |
|
December 31, 2023 |
|||
ASSETS |
|
|
|
|
|||
CURRENT ASSETS: |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
46,566 |
|
|
$ |
33,354 |
Accounts receivable - net of allowance for credit losses of |
|
|
225,617 |
|
|
|
237,012 |
Inventories |
|
|
16,743 |
|
|
|
17,705 |
Prepaid expenses |
|
|
9,453 |
|
|
|
14,640 |
Short-term investment, net |
|
|
7,405 |
|
|
|
7,745 |
Other current assets |
|
|
1,037 |
|
|
|
353 |
Total current assets |
|
|
306,821 |
|
|
|
310,809 |
PROPERTY AND EQUIPMENT - net of accumulated depreciation |
|
|
716,823 |
|
|
|
967,116 |
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
|
127,085 |
|
|
|
78,583 |
FINANCE LEASE RIGHT-OF-USE ASSETS |
|
|
35,562 |
|
|
|
47,449 |
OTHER NONCURRENT ASSETS: |
|
|
|
|
|||
Goodwill |
|
|
26,754 |
|
|
|
23,624 |
Intangible assets - net of amortization |
|
|
65,155 |
|
|
|
50,615 |
Other noncurrent assets |
|
|
2,010 |
|
|
|
2,116 |
Total other noncurrent assets |
|
|
93,919 |
|
|
|
76,355 |
TOTAL ASSETS |
|
$ |
1,280,210 |
|
|
$ |
1,480,312 |
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|||
CURRENT LIABILITIES: |
|
|
|
|
|||
Accounts payable |
|
$ |
128,615 |
|
|
$ |
161,441 |
Accrued and other current liabilities |
|
|
73,738 |
|
|
|
75,616 |
Operating lease liabilities |
|
|
33,532 |
|
|
|
17,029 |
Finance lease liabilities |
|
|
18,967 |
|
|
|
17,063 |
Total current liabilities |
|
|
254,852 |
|
|
|
271,149 |
DEFERRED INCOME TAXES |
|
|
63,882 |
|
|
|
93,105 |
LONG-TERM DEBT |
|
|
45,000 |
|
|
|
45,000 |
NONCURRENT OPERATING LEASE LIABILITIES |
|
|
56,275 |
|
|
|
38,600 |
NONCURRENT FINANCE LEASE LIABILITIES |
|
|
18,145 |
|
|
|
30,886 |
OTHER LONG-TERM LIABILITIES |
|
|
9,100 |
|
|
|
3,180 |
Total liabilities |
|
|
447,254 |
|
|
|
481,920 |
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|||
Preferred stock, |
|
|
— |
|
|
|
— |
Common stock, |
|
|
103 |
|
|
|
109 |
Additional paid-in capital |
|
|
884,616 |
|
|
|
929,249 |
Retained earnings (accumulated deficit) |
|
|
(51,763 |
) |
|
|
69,034 |
Total shareholders’ equity |
|
|
832,956 |
|
|
|
998,392 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
1,280,210 |
|
|
$ |
1,480,312 |
PROPETRO HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net (loss) income |
|
$ |
(120,797 |
) |
|
$ |
102,743 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
164,027 |
|
|
|
124,749 |
|
Impairment expense |
|
|
188,601 |
|
|
|
— |
|
Deferred income tax (benefit) expense |
|
|
(29,224 |
) |
|
|
28,753 |
|
Amortization of deferred debt issuance costs |
|
|
327 |
|
|
|
250 |
|
Stock-based compensation |
|
|
12,975 |
|
|
|
10,604 |
|
Loss on disposal of assets |
|
|
11,884 |
|
|
|
62,117 |
|
Unrealized loss on short-term investment |
|
|
340 |
|
|
|
2,120 |
|
Noncash gain from adjustment of business acquisition contingent consideration |
|
|
(1,800 |
) |
|
|
— |
|
Changes in operating assets and liabilities, net of effects of business acquisition: |
|
|
|
|
||||
Accounts receivable |
|
|
21,876 |
|
|
|
(44,832 |
) |
Other current assets |
|
|
(480 |
) |
|
|
(2,584 |
) |
Inventories |
|
|
962 |
|
|
|
(4,520 |
) |
Prepaid expenses |
|
|
4,966 |
|
|
|
(275 |
) |
Accounts payable |
|
|
(31,933 |
) |
|
|
9,584 |
|
Accrued and other current liabilities |
|
|
(7,292 |
) |
|
|
16,362 |
|
Net cash provided by operating activities |
|
|
214,432 |
|
|
|
305,071 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Capital expenditures |
|
|
(112,449 |
) |
|
|
(320,747 |
) |
Business acquisition, net of cash acquired |
|
|
(21,038 |
) |
|
|
— |
|
Proceeds from sale of assets |
|
|
2,884 |
|
|
|
7,976 |
|
Net cash used in investing activities |
|
|
(130,603 |
) |
|
|
(312,771 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings |
|
|
— |
|
|
|
30,000 |
|
Repayments of borrowings |
|
|
— |
|
|
|
(15,000 |
) |
Payment of debt issuance costs |
|
|
— |
|
|
|
(1,179 |
) |
Payments on finance lease obligations |
|
|
(13,067 |
) |
|
|
(889 |
) |
Tax withholdings paid for net settlement of equity awards |
|
|
(1,377 |
) |
|
|
(3,506 |
) |
Share repurchases |
|
|
(55,729 |
) |
|
|
(36,258 |
) |
Payment of excise tax on share repurchases |
|
|
(444 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(70,617 |
) |
|
|
(26,832 |
) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
13,212 |
|
|
|
(34,532 |
) |
CASH AND CASH EQUIVALENTS - Beginning of period |
|
|
33,354 |
|
|
|
88,862 |
|
CASH AND CASH EQUIVALENTS - End of period |
|
$ |
46,566 |
|
|
$ |
54,330 |
|
Reportable Segment Information |
|||||||||||||||
|
Three Months Ended September 30, 2024 |
||||||||||||||
(in thousands) |
Hydraulic Fracturing |
|
Wireline |
|
All Other |
|
Reconciling Items |
|
Total |
||||||
Service revenue |
$ |
274,138 |
|
$ |
47,958 |
|
$ |
38,920 |
|
$ |
(148 |
) |
|
$ |
360,868 |
Adjusted EBITDA |
$ |
66,166 |
|
$ |
9,194 |
|
$ |
8,989 |
|
$ |
(13,219 |
) |
|
$ |
71,130 |
Depreciation and amortization |
$ |
46,752 |
|
$ |
5,260 |
|
$ |
2,264 |
|
$ |
23 |
|
|
$ |
54,299 |
Impairment expense (1) |
$ |
188,601 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
188,601 |
Operating lease expense on FORCE® fleets (2) |
$ |
12,516 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
12,516 |
Capital expenditures incurred |
$ |
33,465 |
|
$ |
1,757 |
|
$ |
1,575 |
|
$ |
38 |
|
|
$ |
36,835 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended June 30, 2024 |
||||||||||||||
(in thousands) |
Hydraulic Fracturing |
|
Wireline |
|
All Other |
|
Reconciling Items |
|
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 FORCE® fleets (2) |
$ |
11,533 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
11,533 |
Capital expenditures incurred |
$ |
25,631 |
|
$ |
1,943 |
|
$ |
4,376 |
|
$ |
— |
|
|
$ |
31,950 |
|
|
|
|
|
|
|
|
|
|
||||||
| (1) | Represents noncash impairment expense related to our Tier II diesel-only and related conventional equipment. |
| (2) | Represents lease cost 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 expense, 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, (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 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 |
||||||
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
||||
Net loss |
$ |
(137,067 |
) |
|
$ |
(3,660 |
) |
Impairment expense (1) |
|
188,601 |
|
|
|
— |
|
Income tax benefit |
|
(38,230 |
) |
|
|
— |
|
Adjusted Net Income (Loss) |
$ |
13,304 |
|
|
$ |
(3,660 |
) |
| (1) | Represents the noncash impairment expense of our conventional Tier II diesel-only hydraulic fracturing pumps and associated conventional assets. |
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||
|
Three Months Ended |
||||||
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
||||
Net loss |
$ |
(137,067 |
) |
|
$ |
(3,660 |
) |
Depreciation and amortization |
|
54,299 |
|
|
|
57,522 |
|
Impairment expense (1) |
|
188,601 |
|
|
|
— |
|
Interest expense |
|
1,939 |
|
|
|
1,965 |
|
Income tax (benefit) expense |
|
(41,365 |
) |
|
|
3,565 |
|
Loss on disposal of assets |
|
2,149 |
|
|
|
3,277 |
|
Stock-based compensation |
|
4,615 |
|
|
|
4,618 |
|
Other income, net (2) |
|
(3,599 |
) |
|
|
(2,403 |
) |
Other general and administrative expense, net |
|
346 |
|
|
|
1,113 |
|
Retention bonus and severance expense |
|
1,212 |
|
|
|
65 |
|
Adjusted EBITDA |
$ |
71,130 |
|
|
$ |
66,062 |
|
| (1) | Represents the noncash impairment expense of our conventional Tier II diesel-only hydraulic fracturing pumps and associated conventional assets. |
| (2) |
Other income for the three months ended September 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 |
||||||
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
||||
Net Cash provided by Operating Activities |
$ |
34,669 |
|
|
$ |
104,941 |
|
Net Cash used in Investing Activities |
|
(39,680 |
) |
|
|
(57,076 |
) |
Free Cash Flow |
|
(5,011 |
) |
|
|
47,865 |
|
Acquisition Consideration |
|
— |
|
|
|
21,038 |
|
Free Cash Flow adjusted for Acquisition Consideration |
$ |
(5,011 |
) |
|
$ |
68,903 |
|
|
|
|
|
||||
|
|
Nine Months Ended |
||||||
(in thousands) |
|
September 30, 2024 |
|
September 30, 2023 |
||||
Net Cash provided by Operating Activities |
|
$ |
214,432 |
|
|
$ |
305,071 |
|
Net Cash used in Investing Activities |
|
|
(130,603 |
) |
|
|
(312,771 |
) |
Free Cash Flow |
|
|
83,829 |
|
|
|
(7,700 |
) |
Acquisition Consideration |
|
|
21,038 |
|
|
|
— |
|
Free Cash Flow adjusted for Acquisition Consideration |
|
$ |
104,867 |
|
|
$ |
(7,700 |
) |
|
|
|
|
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030978687/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 in Q3 2024?
Why did ProPetro (PUMP) report a net loss in Q3 2024?
How many FORCE electric fleets does ProPetro (PUMP) have operational in Q3 2024?
What is ProPetro's (PUMP) capital expenditure guidance for 2024?
