The following is a summary of the ProFrac Holding Corp (ACDC) Q4 2023 Earnings Call Transcript:

Financial Performance:

• ProFrac reported increased free cash flow to $293 million, up 173% from 2022 despite market challenges.

• Q4 revenues decreased to $489 million, driven by lower fleet count and slight dip in efficiencies.

• Adjusted EBITDA for the year stands at $688 million from a total revenue of $2.6 billion, giving an EBITDA margin of 26%.

• The company ended the quarter with debt of $1.1 billion, of which the majority is due in January 2029.

• Despite a dip in operating cash flow to $42.7 million in Q4, they expect a significant debt reduction in 2024.

• Revenues in the stimulation services segment decreased to $403 million due to fewer fleets and slightly reduced service pricing.

• The Proppant Production segment's full-year revenues increased considerably to $383 million from the previous year's $90 million, thanks to the addition of sand mines.

Business Progress:

• ProFrac successfully completed acquisitions of REV Energy Holdings and Producer Services Holdings, expanding the company's geographical footprint.

• Following the acquisition of Performance Profits, ProFrac is now the largest provider of in-basin sand in North America.

• The company began 2024 positively with 20% higher pumping efficiency than average Q2 and Q3 in 2023, projecting improved utilization by 30% in 2024.

• Registered a statement on Form-S1 with SEC to extract maximum value from its profit production segment.

• Aiming for market share growth and operational lean in 2024, the company plans to return cash to shareholders after reducing its balance sheet leverage.

• The company is preparing to reactivate fleets to meet increased customer demand with diversification and new leadership as cornerstones of their strategic growth initiatives.

• Scheduled to fully utilize e-fleets for turnkey customer solutions and anticipates demand increase in the gas market later in the decade.

• Maintenance CapEx for the coming year is projected in the range of $150 million to $200 million, with an additional $100 million for fleet upgrades and mine optimization efforts.

More details: ProFrac Holding IR

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