ProPetro Holding Corp. reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the third quarter falling to $360.9 million, a decrease of 14.9% from $423.8 million in the same period of 2023. For the nine months, revenue decreased by 12.4% to $1.123 billion from $1.283 billion year-over-year. The decline was primarily attributed to reduced customer activity and pricing pressures in the hydraulic fracturing segment, which saw a 19.4% drop in revenue.
The company's operating performance was adversely affected, resulting in an operating loss of $180.1 million for the third quarter, compared to an operating income of $44.7 million in the prior year. The net loss for the third quarter was $137.1 million, a stark contrast to the net income of $34.8 million reported in the same quarter of 2023. For the nine-month period, ProPetro recorded a net loss of $120.8 million, compared to a net income of $102.7 million in the previous year.
Total costs and expenses surged to $541.0 million for the third quarter, up from $379.1 million in 2023, driven by increased depreciation and a significant impairment expense of $188.6 million related to Tier II hydraulic fracturing pumping units. This impairment reflects decreased marketability and customer demand. Adjusted EBITDA for the third quarter also fell to $71.1 million, down 34.0% from $107.7 million in the prior year.
Strategically, ProPetro has made acquisitions to bolster its service offerings. The company acquired Aqua Prop, LLC on May 31, 2024, for a total consideration of $35.6 million, which includes cash, deferred cash, and contingent consideration. This acquisition aims to enhance its wet sand solutions for hydraulic fracturing. Additionally, the company completed the acquisition of Par Five Energy Services LLC in December 2023, further expanding its cementing services.
As of September 30, 2024, ProPetro's total assets were reported at $1.280 billion, down from $1.480 billion at the end of 2023. The company’s liquidity position remains stable, with cash and cash equivalents of $46.6 million and availability under its ABL Credit Facility amounting to $80.4 million. The company has also authorized a share repurchase program totaling $200 million, with $92.5 million remaining for future repurchases as of the end of September 2024.
About ProPetro Holding Corp.
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