On July 31, 2024, ProPetro Holding Corp (PUMP, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. ProPetro Holding Corp is a Texas-based oilfield services company that provides hydraulic fracturing, wireline, and other complementary services to oil and gas companies, primarily in the Permian Basin.
Performance Overview
ProPetro Holding Corp reported total revenue of $357 million for Q2 2024, a 12% decrease from the previous quarter's $406 million. The company also posted a net loss of $4 million, or $0.03 per diluted share, compared to a net income of $20 million, or $0.18 per diluted share, in Q1 2024. Adjusted EBITDA fell to $66 million, representing 19% of revenue, down from $93 million in the prior quarter.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Total Revenue | $357 million | $406 million |
| Net Income (Loss) | ($4 million) | $20 million |
| Adjusted EBITDA | $66 million | $93 million |
| Net Cash Provided by Operating Activities | $105 million | $75 million |
| Free Cash Flow | $48 million | $41 million |
Operational Highlights
ProPetro's effective frac fleet utilization increased slightly to 15.5 fleets from 15.0 fleets in the previous quarter. The company also placed an order for its fifth FORCESM electric fleet, expected to be delivered and deployed in 2024. Additionally, ProPetro acquired Aqua Prop LLC, a provider of cost-effective wet sand solutions, and repurchased and retired 2.5 million shares during the quarter.
Management Commentary
"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," said Sam Sledge, Chief Executive Officer.
"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," added David Schorlemer, Chief Financial Officer.
Financial Statements Summary
From the income statement, ProPetro's cost of services, excluding depreciation and amortization, decreased to $266 million from $289 million in Q1 2024. General and administrative expenses rose to $31 million from $28 million in the previous quarter. The balance sheet showed total assets of $1.51 billion, with total liabilities of $536 million and shareholders' equity of $976 million as of June 30, 2024.
Analysis and Outlook
ProPetro's Q2 2024 performance highlights the challenges faced by the oilfield services industry, including customer delays and pricing pressures. However, the company's strategic initiatives, such as the transition to FORCESM electric equipment and disciplined capital allocation, are expected to bolster its competitive edge and financial resilience. The acquisition of Aqua Prop LLC and the ongoing share repurchase program further demonstrate ProPetro's commitment to creating long-term value for its stakeholders.
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Explore the complete 8-K earnings release (here) from ProPetro Holding Corp for further details.
