ProFrac Holding Corp. Reports Mixed Q3 Results Amid Challenging Market Conditions

ProFrac Holding Corp. reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance amid challenging market conditions. Total revenue for the third quarter was $575.3 million, a slight increase from $574.2 million in the same period of 2023. This growth was primarily driven by a 4% increase in stimulation services revenue, which reached $507.1 million, attributed to higher fleet utilization despite lower pricing and increased customer self-sourcing of proppant. However, for the nine months ended September 30, 2024, total revenue decreased to $1,736.2 million from $2,140.9 million in the prior year, reflecting a significant decline in stimulation services revenue, which fell by 19% to $1,530.0 million.

The company's profitability was adversely affected, with a net loss attributable to ProFrac Holding Corp. of $45.2 million for the third quarter, compared to a loss of $18.9 million in the same quarter of 2023. For the nine-month period, the net loss deepened to $110.1 million, contrasting sharply with a net income of $0.2 million in the previous year. The losses included substantial goodwill impairment charges totaling $67.7 million for the Haynesville Proppant reporting unit, driven by declining natural gas prices.

Total assets as of September 30, 2024, were reported at $3,135.8 million, up from $3,070.7 million at the end of 2023. However, total liabilities also increased to $1,906.3 million from $1,742.1 million, leading to a decrease in stockholders' equity from $1,269.9 million to $1,167.2 million. The company’s long-term debt rose to $1,205.7 million, reflecting an increase of $97.8 million since December 31, 2023.

Strategically, ProFrac made several acquisitions in 2024, including Basin Production and Completion LLC for $39.8 million and Advanced Stimulation Technologies, Inc. for $174.0 million. These acquisitions contributed to revenue but also incurred pretax losses. The company also faced litigation expenses related to patent infringement lawsuits with Halliburton, which were settled in September 2024.

Cash provided by operating activities for the nine months ended September 30, 2024, was $290.8 million, a decrease from $510.8 million in the same period of 2023. The company’s liquidity position included $20.5 million in cash and $88.7 million available under its revolving credit facility. ProFrac's growth strategy remains focused on potential acquisitions and strategic transactions, which may impact future liquidity needs.