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ACDC ($7.09)...EPS beats big, Sales miss by a hair... ProFrac Holding Corp. Reports First Quarter 2024

Financial and Operational Results

WILLOW PARK, TX – May 9, 2024 – ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its first quarter ended March 31, 2024.

First Quarter 2024 Results
·- Total revenue grew approximately 19% sequentially to $581.5 million over the fourth quarter revenue of 2023
·- Net income was $3.0 million compared to a net loss of $96.5 million in the fourth quarter of 2023
·- Adjusted EBITDA(1) grew approximately 46% sequentially over the fourth quarter to $159.7 million
·- Net cash provided by operating activities grew approximately 85% sequentially over the fourth quarter to $79.1 million
- Capital expenditures totaled $59.9 million
·- Free cash flow(2) grew 102% sequentially to $25.8 million

Matt Wilks, ProFrac’s Executive Chairman, stated, “We are very pleased with our first quarter results, which demonstrate meaningful progress on the strategic initiatives we began emphasizing in the back half of 2023. ProFrac’s greater scale, utilization and efficiencies are demonstrated by lower costs and higher profitability. As we outlined on our previous earnings call and as shown by these results, we deployed a substantial number of fleets in a disciplined manner during the first quarter.”

Outlook
In the Stimulation Services segment, the Company anticipates pricing to remain steady. Because of our superior cost structure and operating leverage, we continue to see opportunities to further improve profitability per fleet.
In the Proppant Production segment, volumes and profitability are expected to improve as we see third party volumes expand alongside our stimulation services segment volumes.

Business Segment Information
The Stimulation Services segment generated revenues of $517.3 million in the first quarter of 2024, which resulted in $125.0 million of Adjusted EBITDA.
The Proppant Production segment generated revenues of $77.7 million in the first quarter of 2024, which resulted in $28.4 million of Adjusted EBITDA. Approximately 31% of the Proppant Production segment’s revenue was intercompany.
The Manufacturing segment generated revenues of $43.5 million in the first quarter of 2024, which resulted in $4.4 million of Adjusted EBITDA. Approximately 78% of the Manufacturing segment’s revenue was intercompany.
Our Other Business Activities generated revenues of $41.7 million in the first quarter of 2024, which resulted in $3.6 million of Adjusted EBITDA. The Other Business Activities solely relate to the results of Flotek.

Capital Expenditures and Capital Allocation
Cash capital expenditures totaled $59.9 million in the first quarter, an increase sequentially, due to fleet deployments during the quarter and other growth-related initiatives including fleet upgrades and mine optimization.
For the full year 2024, the Company still expects to incur maintenance-related capital expenditures of between $150 million and $200 million. Growth-related capital expenditures across all segments are expected to remain approximately $100 million in 2024, as the Company continues to monitor market conditions, industry dynamics and customer demand to appropriately align spending levels and growth initiative timelines. Currently, growth capital expenditures for 2024 are expected to be primarily related to mine improvements and frac fleet upgrades.

Balance Sheet and Liquidity
Total net debt outstanding as of March 31, 2024 was $1.06 billion, a decrease of approximately $26 million from the fourth quarter.
Total cash and cash equivalents as of March 31, 2024 was $28.3 million, of which $5.2 million was related to Flotek and not accessible by the Company.
As of March 31, 2024 the Company had $166.9 million of liquidity, including approximately $23.1 million in cash and cash equivalents, excluding Flotek, and $143.8 million of availability under its asset-based credit facility.

Footnotes
(1) Adjusted EBITDA is a financial measure not presented in accordance with generally accepted accounting principles (“GAAP”) (a “Non-GAAP Financial Measure”). Please see “Non-GAAP Financial Measures” at the end of this news release.
(2) Free Cash Flow is a Non-GAAP Financial Measure. Please see “Non-GAAP Financial Measures” at the end of this news release.

Conference Call
ProFrac has scheduled a conference call on Thursday, May 9, 2024 at 11:00 a.m. Eastern time / 10:00 a.m. Central time. Please dial 412-902-0030 and ask for the ProFrac Holding Corp. call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address https://ir.pfholdingscorp.com/news-events/ir-calendar. A telephonic replay of the conference call will be available through May 16, 2024 and may be accessed by calling 201-612-7415 and using passcode 13745998#. A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days.

About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated, innovation-driven energy services holding company providing hydraulic fracturing, proppant production, other completion services and other complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources throughout the United States. Founded in 2016, ProFrac was built to be the go-to service provider for E&P companies' most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce "greenhouse gas" emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. ProFrac Corp. operates in three business segments: stimulation services, proppant production and manufacturing. For more information, please visit ProFrac’s website at www.PFHoldingsCorp.com.
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