Thu, Oct 31, 12:29 PM (63 days ago)
ProPetro Holding Corp. (PUMP) reported significant challenges in its Q3 2024 results, with revenues decreasing by 14.9% to $360.9 million compared to Q3 2023. The hydraulic fracturing segment, contributing 75.9% of total revenue, saw a 19.4% decline due to decreased customer pricing and activity levels, despite contributions from recent acquisitions. The company incurred an impairment expense of $188.6 million related to its Tier II hydraulic fracturing units, impacting net loss, which totaled $137.1 million for the quarter. Adjusted EBITDA fell by 34.0% to $71.1 million, reflecting reduced operational efficiency and increased costs. Cash flow from operations was $214.4 million, down from $305.1 million in the prior year, primarily due to lower net income and collection timing. The company’s liquidity remains stable, with $46.6 million in cash and $80.4 million available under its ABL Credit Facility. ProPetro is transitioning to lower-emission equipment, with plans for capital expenditures between $150 million and $175 million in 2024, focusing on fleet upgrades and operational efficiencies. The ongoing geopolitical tensions and oil price volatility pose risks to future operations and financial performance.