Savvy Trades and Investments

[2morrowsGains]

ACDC...ProFrac

Profrac Holding (NASDAQ:ACDC) consists of several companies that serve the oil and gas industry. Hydraulic fracturing and well completion are among the services it provides to North American energy producers that tap shale and other unconventional resources.

To say ProFrac has been on an acquisition spree would be an understatement. In November 2022, it closed a $270 million acquisition of U.S. Well Services, making it the nation’s largest electric frac services operation, and significantly expanded its NextGen frac solutions fleet. In January 2023, ProFrac wrapped up two more acquisitions — REV Energy Holdings and Producers Services Holdings — to give it six additional frac fleets.

This week ProFrac completed its $475 million takeover of Performance Proppants, the largest in-basin proppant producer in the Haynesville shale region of eastern Texas. Another step in the company’s vertical integration strategy, the addition, makes ProFrac the largest producer of fracking sand in North America.

ProFrac is aggressively consolidating the fragmented fracking services market to become a go-to for upstream oil & gas companies. This roll-up strategy and the expanding capabilities that come with it have Wall Street unanimously bullish on the stock. Price targets in the $30 to $35 range imply at least a 50% upside.
https://www.investing.com/analysis/3-midcaps-below-20-wall-street-loves-200635853