Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ACDC | |
Entity Registrant Name | ProFrac Holding Corp. | |
Entity Central Index Key | 0001881487 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 159,936,049 | |
Entity File Number | 001-41388 | |
Entity Current Reporting Status | Yes | |
Entity Tax Identification Number | 87-2424964 | |
Entity Address, Address Line One | 333 Shops Boulevard | |
Entity Address, Address Line Two | Suite 301 | |
Entity Address, City or Town | Willow Park | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76087 | |
City Area Code | 254 | |
Local Phone Number | 776-3722 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Class A common stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 28.3 | $ 25.3 |
Accounts receivable, net | 381.8 | 346.1 |
Accounts receivable - related party, net | 11.9 | 6.8 |
Inventories | 219.8 | 236.6 |
Prepaid expenses and other current assets | 22.8 | 23.3 |
Total current assets | 664.6 | 638.1 |
Property, plant, and equipment (net of accumulated depreciation of $1,083.8 and $1,010.2, respectively) | 1,689.8 | 1,779 |
Operating lease right-of-use assets, net | 77.7 | 87.2 |
Goodwill | 342.3 | 325.9 |
Intangible assets, net | 164.7 | 173.5 |
Investments ($24.9 and $23.4 at fair value, respectively) | 30.4 | 28.9 |
Deferred tax assets | 0.1 | 0.3 |
Other assets | 37.4 | 37.8 |
Total assets | 3,007 | 3,070.7 |
Current liabilities: | ||
Accounts payable | 281.8 | 319 |
Accounts payable - related party | 16.6 | 21.9 |
Accrued expenses | 89 | 65.6 |
Current portion of long-term debt | 136.4 | 126.4 |
Current portion of operating lease liabilities | 19.6 | 24.5 |
Other current liabilities | 64.4 | 84.1 |
Other current liabilities - related party | 15.8 | 7.4 |
Total current liabilities | 623.6 | 648.9 |
Long-term debt | 895.1 | 923.5 |
Long-term debt - related party | 17.1 | 18.6 |
Operating lease liabilities | 63.2 | 67.8 |
Tax receivable agreement liability | 64.8 | 68.1 |
Other liabilities | 9.6 | 15.2 |
Total liabilities | 1,673.4 | 1,742.1 |
Commitments and contingencies (NOTE 9) | ||
Mezzanine equity: | ||
Series A redeemable convertible preferred stock, $0.01 par value, 50 thousand shares authorized, issued and outstanding | 59.9 | 58.7 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50.0 shares authorized, no shares issued and outstanding | ||
Additional paid-in capital | 1,227.2 | 1,225.4 |
Accumulated deficit | (15.4) | (16) |
Accumulated other comprehensive income | 0.3 | 0.3 |
Total stockholders' equity attributable to ProFrac Holding Corp. | 1,213.6 | 1,211.2 |
Noncontrolling interests | 60.1 | 58.7 |
Total stockholders' equity | 1,273.7 | 1,269.9 |
Total liabilities, mezzanine equity, and stockholders' equity | 3,007 | 3,070.7 |
Common Class A | ||
Stockholders' equity: | ||
Common stock, value | $ 1.5 | $ 1.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, plant, and equipment net of accumulated depreciation | $ 1,083.8 | $ 1,010.2 |
Fair value | $ 24.9 | $ 23.4 |
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 50,000,000 | 50,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Series A Redeemable Convertible Preferred Stock | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 50,000 | 50,000 |
Preferred shares, issued | 50,000 | 50,000 |
Preferred shares, outstanding | 50,000 | 50,000 |
Common Class A | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares, issued | 159,600,000 | 159,400,000 |
Common stock, shares, outstanding | 159,600,000 | 159,400,000 |
Common Class B | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares, issued | 0 | 0 |
Common stock, shares, outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | $ 581.5 | $ 857.5 |
Operating costs and expenses: | ||
Cost of revenues, exclusive of depreciation, depletion and amortization | 373.7 | 545.9 |
Selling, general, and administrative | 50.6 | 77.9 |
Depreciation, depletion and amortization | 112.8 | 110.3 |
Acquisition and integration costs | 0.2 | 12.3 |
Other operating expense, net | 4.3 | 4.4 |
Total operating costs and expenses | 541.6 | 750.8 |
Operating income | 39.9 | 106.7 |
Other income (expense): | ||
Interest expense, net | (37.6) | (34.9) |
Gain (loss) on extinguishment of debt | (0.8) | 4.1 |
Other income (expense), net | 1.8 | (9.4) |
Income before income taxes | 3.3 | 66.5 |
Income tax expense | (0.3) | (6.7) |
Net income | 3 | 59.8 |
Less: net (income) loss attributable to noncontrolling interests | (1.2) | 4.2 |
Less: net income attributable to redeemable noncontrolling interests | (42) | |
Net income attributable to ProFrac Holding Corp. | 1.8 | 22 |
Net income attributable to Class A common shareholders | $ 0.6 | $ 22 |
Basic earnings per Class A share | $ 0 | $ 0.4 |
Diluted earnings per Class A share | $ 0 | $ 0.4 |
Weighted average Class A common shares outstanding, basic | 159.5 | 54.5 |
Weighted average Class A common shares outstanding, diluted | 159.8 | 54.9 |
Services | ||
Revenues | $ 505.4 | $ 786.7 |
Product Sales | ||
Revenues | $ 76.1 | $ 70.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3 | $ 59.8 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 0.3 | |
Comprehensive income | 3 | 60.1 |
Less: comprehensive (income) loss attributable to noncontrolling interest | (1.2) | 4.1 |
Less: comprehensive income attributable to redeemable noncontrolling interest | (42.1) | |
Comprehensive income attributable to ProFrac Holding Corp. | $ 1.8 | $ 22.1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Producers | Performance Proppants | Common Stock Class A Common Stock | Common Stock Class A Common Stock Producers | Common Stock Class A Common Stock Performance Proppants | Common Stock Class B Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Producers | Additional Paid-in Capital Performance Proppants | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests |
Beginning balance at Dec. 31, 2022 | $ (1,112.2) | $ 0.5 | $ 1 | $ (1,185.9) | $ 72.2 | ||||||||
Beginning balance, Shares at Dec. 31, 2022 | 53,900,000 | 104,200,000 | |||||||||||
Stock issued for acquisition | $ 6.2 | $ 3.4 | $ 6.2 | $ 3.4 | |||||||||
Stock issued for acquisition, shares | 400,000 | 300,000 | |||||||||||
Net income | 17.8 | 22 | (4.2) | ||||||||||
Stock-based compensation | 1 | 0.9 | 0.1 | ||||||||||
Stock-based compensation related to deemed contribution | 3.5 | 3.5 | |||||||||||
Conversion of Flotek notes to equity | 12.7 | 12.7 | |||||||||||
Foreign currency translation adjustments | 0.2 | $ 0.1 | 0.1 | ||||||||||
Adjustment of redeemable noncontrolling interest to redemption amount | 1,268.2 | (9.2) | 1,277.4 | ||||||||||
Ending balance at Mar. 31, 2023 | 200.8 | $ 0.5 | $ 1 | 4.8 | 113.5 | 0.1 | 80.9 | ||||||
Ending balance, Shares at Mar. 31, 2023 | 54,600,000 | 104,200,000 | |||||||||||
Beginning balance at Dec. 31, 2023 | 1,269.9 | $ 1.5 | 1,225.4 | (16) | 0.3 | 58.7 | |||||||
Beginning balance, Shares at Dec. 31, 2023 | 159,400,000 | ||||||||||||
Net income | 3 | 1.8 | 1.2 | ||||||||||
Stock-based compensation | 2.1 | 1.9 | 0.2 | ||||||||||
Tax withholding related to net share settlement of equity awards | (0.1) | (0.1) | |||||||||||
Share issuance, shares | 200,000 | ||||||||||||
Adjustment of convertible preferred stock to redemption amount | (1.2) | (1.2) | |||||||||||
Ending balance at Mar. 31, 2024 | $ 1,273.7 | $ 1.5 | $ 1,227.2 | $ (15.4) | $ 0.3 | $ 60.1 | |||||||
Ending balance, Shares at Mar. 31, 2024 | 159,600,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 3 | $ 59.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 112.8 | 110.3 |
Amortization of acquired contract liabilities | (16.5) | (8.1) |
Stock-based compensation | 2.1 | 13.1 |
Loss (gain) on disposal of assets, net | (1.4) | 1.5 |
Non-cash loss (gain) on extinguishment of debt | 0.8 | (4.1) |
Amortization of debt issuance costs | 3.2 | 6.1 |
Acquisition earnout adjustment | (3) | |
Unrealized loss (gain) on investments, net | (1.2) | 9.7 |
Deferred tax expense | 0.2 | |
Other non-cash items, net | 0.1 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (41.2) | (41.9) |
Inventories | 16.6 | (24.7) |
Prepaid expenses and other assets | 1.4 | (1.8) |
Accounts payable | (20.3) | 136.5 |
Accrued expenses | 23.3 | (3.1) |
Other liabilities | (3.7) | (16.9) |
Net cash provided by operating activities | 79.1 | 233.5 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (443.6) | |
Investment in property, plant & equipment | (59.9) | (83.2) |
Proceeds from sale of assets | 6.6 | 1 |
Net cash used in investing activities | (53.3) | (525.8) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 320 | |
Repayments of long-term debt | (37.5) | (18.2) |
Borrowings from revolving credit agreements | 501.1 | 406.7 |
Repayments of revolving credit agreements | (485.2) | (363) |
Payment of debt issuance costs | (1.1) | (18.4) |
Tax withholding related to net share settlement of equity awards | (0.1) | |
Net cash provided by (used in) financing activities | (22.8) | 327.1 |
Net increase in cash, cash equivalents, and restricted cash | 3 | 34.8 |
Cash, cash equivalents, and restricted cash beginning of period | 25.3 | 37.9 |
Cash, cash equivalents, and restricted cash end of period | 28.3 | 72.7 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable | 22.6 | 54.2 |
Operating lease liabilities incurred from obtaining right-of-use assets | $ 5.7 | $ 6.1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1.8 | $ 22 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 1. DESCRIPTION OF BUSINES S AND BASIS OF PRESENTATION Description of Business ProFrac Holding Corp. ("ProFrac Corp.") is a vertically integrated and 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. ProFrac Corp. operates in three business segments: stimulation services, proppant production and manufacturing. Our stimulation services segment owns and operates a fleet of mobile hydraulic fracturing units and other auxiliary equipment that generates revenue by providing stimulation services to our customers. Our proppant production segment provides proppant to oilfield service providers and E&P companies. Our manufacturing segment sells highly engineered, tight tolerance machined, assembled, and factory tested products such as high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. Mr. Dan Wilks and Mr. Farris Wilks are brothers and are the founders and principal stockholders of the Company. Their sons, Mr. Matthew D. Wilks and Mr. Johnathan Ladd Wilks are the Company’s Executive Chairman and Chief Executive Officer, respectively. In the normal course of business, we enter into transactions with related parties where Mr. Dan Wilks and Mr. Farris Wilks and entities owned by or affiliated with them (collectively, the "Wilks Parties") hold a controlling financial interest. See "Note 13. Related Party Transactions" for further information. Basis of Presentation The unaudited condensed consolidated financial statements presented herein include the accounts of ProFrac Corp. and those of its subsidiaries that are wholly owned, controlled by it or a variable interest entity ("VIE") where it is the primary beneficiary. Unless the context requires otherwise, the use of the terms "Company," "we," "us," "our" or "ours" in these notes to the unaudited condensed consolidated financial statements refer to ProFrac Corp., together with its consolidated subsidiaries. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. Accordingly, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair statement of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in Item 8 "Financial Statements and Supplementary Data" of our Annual Report. All significant intercompany accounts and transactions have been eliminated in consolidation. Concentrations of Risk Our business activities are concentrated in the well completion services segment of the oilfield services industry in the United States. The market for these services is cyclical, and we depend on the willingness of our customers to make operating and capital expenditures to explore for, develop, and produce oil and natural gas in the United States. The willingness of our customers to undertake these activities depends largely upon prevailing industry conditions that are predominantly influenced by current and expected prices for oil and natural gas. Historically, a low commodity-price environment has caused our customers to significantly reduce their hydraulic fracturing activities and the prices they are willing to pay for those services. During these periods, these customer actions materially adversely affected our business, financial condition and results of operations. Recently Issued Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosures required for operating segments in the Company's annual and interim consolidated financial statements. This ASU is effective retrospectively for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. This ASU provides for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. |
Supplemental balance sheet info
Supplemental balance sheet information | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental balance sheet information | 2. SUPPLEMENTAL BALANCE SHEET INFORMATION Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are recorded in our unaudited condensed consolidated balance sheet as follows: March 31, 2024 2023 Cash and cash equivalents $ 28.3 $ 69.9 Restricted cash included in prepaid expenses and other current assets — 2.8 Total cash, cash equivalents, and restricted cash $ 28.3 $ 72.7 Inventories Inventories are comprised of the following: March 31, December 31, Raw materials and supplies $ 74.6 $ 84.2 Work in process 21.1 20.5 Finished products and parts 124.1 131.9 Total $ 219.8 $ 236.6 Accrued Expenses Accrued expenses are comprised of the following: March 31, December 31, Employee compensation and benefits $ 37.2 $ 22.6 Sales, use, and property taxes 16.8 24.0 Insurance 10.9 10.9 Interest 21.2 5.4 Income taxes 1.6 1.5 Other 1.3 1.2 Total accrued expenses $ 89.0 $ 65.6 Other Current Liabilities Other current liabilities are comprised of the following: March 31, December 31, Acquired contract liabilities $ 35.6 $ 43.5 Accrued legal contingencies 10.8 20.7 Deferred revenue 3.3 7.3 Tax receivable agreement obligation 6.4 2.8 Other 8.3 9.8 Total other current liabilities $ 64.4 $ 84.1 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combinations | 3. BUSINESS COMBINATIONS On January 3, 2023, we acquired 100 % of the issued and outstanding membership interest of Producers Service Holdings LLC (“Producers”), an employee-owned pressure pumping services provider serving Appalachia and the Mid-Continent, for a total purchase consideration of $ 36.5 million. On February 24, 2023, we acquired 100 % of the issued and outstanding membership interests in (i) Performance Proppants, LLC, (ii) Red River Land Holdings, LLC, (iii) Performance Royalty, LLC, (iv) Performance Proppants International, LLC, and (v) Sunny Point Aggregates, LLC (together, “Performance Proppants”) for a total purchase consideration of $ 462.8 million. We accounted for these acquisitions as business combinations. The following table reflects pro forma revenues and net income for the three months ended March 31, 2023 as if these acquisitions had taken place on January 1, 2022. These unaudited pro forma amounts are not necessarily indicative of results that would have actually been obtained during the periods presented or that may be obtained in the future. Three Months Ended (unaudited) March 31, 2023 Revenues $ 882.3 Net income $ 67.2 The changes in the carrying amount of goodwill by reportable segment were as follows: Stimulation Proppant Manufacturing Other Total Balance, December 31, 2023 $ 169.7 $ 74.5 $ — $ 81.7 $ 325.9 Adjustment 16.4 — — — 16.4 Balance, March 31, 2024 $ 186.1 $ 74.5 $ — $ 81.7 $ 342.3 The adjustment to goodwill in our stimulation services reportable segment was to correct an immaterial error in the accounting for our acquisition of U.S. Well Services, which decreased property, plant, and equipment and increased goodwill. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 4. DEBT Debt is comprised of the following: March 31, December 31, ProFrac Holding Corp.: 2029 Senior Notes $ 500.0 $ 520.0 2022 ABL Credit Facility 137.7 117.4 Equify Notes (1) 17.1 18.6 Finance lease obligations 8.1 8.6 Other 8.8 13.8 ProFrac Holding Corp. principal amount 671.7 678.4 Less: unamortized debt discounts, premiums, and issuance costs ( 16.5 ) ( 17.4 ) Less: current portion of long-term debt ( 57.8 ) ( 47.2 ) ProFrac Holding Corp. long-term debt, net 597.4 613.8 Alpine Subsidiary: Alpine 2023 Term Loan 365.0 365.0 Monarch Note 43.8 54.7 Finance lease obligations 1.3 2.1 Alpine principal amount 410.1 421.8 Less: unamortized debt discounts, premiums, and issuance costs ( 20.0 ) ( 22.0 ) Less: current portion of long-term debt ( 75.3 ) ( 71.6 ) Alpine long-term debt, net 314.8 328.2 Flotek Subsidiary: Flotek ABL credit facility 3.1 7.5 Flotek other 0.2 0.2 Flotek principal amount 3.3 7.7 Less: current portion of long-term debt ( 3.3 ) ( 7.6 ) Flotek long-term debt, net — 0.1 Consolidated: Total principal amount 1,085.1 1,107.9 Less: unamortized debt discounts, premiums, and issuance costs ( 36.5 ) ( 39.4 ) Less: current portion of long-term debt ( 136.4 ) ( 126.4 ) Total long-term debt $ 912.2 $ 942.1 (1) Related party debt agreements. Senior Secured Notes Due 2029 During the three months ended March 31, 2024, we made principal payments of $ 20.0 million on our 2029 Senior Notes. ABL Credit Facility As of March 31, 2024, the maximum availability under the ABL credit facility was limited to our eligible borrowing base of $ 291.6 million with $ 137.7 million of borrowings outstanding and $ 10.1 million of letters of credit outstanding, resulting in approximately $ 143.8 million of remaining availability. Monarch Note During the three months ended March 31, 2024, we made principal payments of $ 10.9 million on the Monarch Note. Equify Note During the three months ended March 31, 2024, we made principal payments of $ 1.5 million on the Equify Note. Debt Compliance Both the 2029 Senior Notes and the ABL Credit Facility contain certain customary representations and warranties and affirmative and negative covenants. As of March 31, 2024, we were in compliance with these covenants and expect to be compliant for at least the next twelve months. Commencing with the fiscal quarter ending September 30, 2024, the Alpine 2023 Term Loan contains a covenant requiring Alpine not to exceed a maximum Total Net Leverage Ratio (as defined in the Alpine Term Loan Credit Agreement) of 2.00 to 1.00 . This ratio is generally the consolidated total debt of Alpine divided by Alpine's adjusted EBITDA. As a result of Alpine’s lower than expected operating results in the three months ended March 31, 2024, Alpine is closely monitoring compliance with this covenant. While there can be no assurance, Alpine believes that it will be able to meet, modify, or further defer this debt covenant. Restricted Assets Our Alpine 2023 Term Loan requires us to segregate collateral associated with our Alpine subsidiary, which comprises our proppant production segment, and limits our ability to use Alpine's cash or assets to satisfy our obligations or the obligations of our other subsidiaries. We also have limited ability to provide Alpine with liquidity to satisfy its obligations. See “Note 12. Business Segments” for certain financial information for Alpine. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | NOTE 5. REVENUE FROM CONTRACTS WITH CUSTOMERS We believe that disaggregating our revenue by reportable segment in "Note 12. Business Segments" provides the information necessary to understand the nature, amount, timing and uncertainty of our revenues and cash flows. Contract Balances with Customers Our contract assets are included in “Accounts receivable” in our unaudited condensed consolidated balance sheets. Accounts receivable consist of invoiced amounts or amounts for which we have a right to invoice based on services completed or products delivered. Our current and non-current contract liabilities are included in “Other current liabilities” and “Other liabilities,” respectively, in our unaudited condensed consolidated balance sheets. Our contract liabilities consist of deferred revenues from advance consideration received from customers related to future performance of service or delivery of products and off-market contract liabilities from unfavorable contracts recognized in connection with our business acquisitions in the Proppant Production segment. In the accounting for prior business combinations, we recorded off-market contract liabilities. During the three months ended March 31, 2024 and 2023, we recorded amortization of $ 13.6 million and $ 8.1 million, respectively, related to these contract liabilities to revenue. As of March 31, 2024, our off-market contract liabilities amounted to $ 37.5 million and the related estimated future amortization to revenue is $ 29.9 million for the remainder of 2024, and $ 7.6 million in 2025. Performance Obligations Certain of our Proppant Production contracts contain multiple performance obligations to provide a minimum quantity of proppant products to our customers in future periods. For these contracts, the transaction price is allocated to each performance obligation at estimated selling prices and we recognize revenue as we satisfy these performance obligations. As of March 31, 2024, the aggregate amount of transaction price allocated to unsatisfied performance obligations was $ 231.3 million, and we expect to perform these obligations and recognize revenue of $ 129.8 million for the remainder of 2024 , $ 43.5 million in 2025 , $ 43.5 million in 2026 , $ 14.5 million in 2027 . We have elected the practical expedient permitting the exclusion of disclosing the value of unsatisfied performance obligations for Stimulation Services and Manufacturing contracts as these contracts have original contract terms of one year or less or we have the right to invoice for services performed. |
Other Operating Expense, Net
Other Operating Expense, Net | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | NOTE 6. OTHER OPERATING EXPENSE, NET Other operating expense, net is comprised of the following: Three Months Ended 2024 2023 (Gain) loss on disposal of assets $ ( 1.4 ) $ 1.5 Litigation expenses and accruals for legal contingencies 4.8 5.8 Severance charges 0.7 — Supply commitment charge 0.2 — Acquisition earnout adjustments — ( 3.0 ) Provision for credit losses, net of recoveries — 0.1 Total $ 4.3 $ 4.4 (Gain) loss on disposal of assets, net consists of gains and losses on the sale of excess property, early equipment failures and other asset dispositions. Litigation expenses and accruals for legal contingencies generally represent legal and professional fees incurred in litigation as well as estimates for loss contingencies with regards to certain vendor disputes and litigation matters. In the periods presented, these costs represent litigation costs incurred in connection with a patent infringement lawsuit against Halliburton. See "Note 9. Commitments and Contingencies" for a discussion of significant litigation matters. Severance charges in the three months ended March 31, 2024 relate to the departure of an executive. The acquisition earnout adjustment in the three months ended March 31, 2023 represents a decrease in the fair value of the contingent consideration related to our acquisition of REV Energy Holdings, LLC in December 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income taxes | NOTE 7. INCOME TAXES We record income taxes for interim periods based on an estimated annual effective tax rate. The estimated annual effective rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets and changes to actual or forecasted permanent book to tax differences. Our effective tax rate for the three months ended March 31, 2024 was 9.1 %, compared with 10.1 % in the same period in 2023. In 2024, the difference between our effective tax rate and the federal statutory rate related to changes in the valuation allowance on our net deferred tax assets. In 2023, the difference between our effective tax rate and the federal statutory rate related to changes in the valuation allowance on our net deferred tax assets and to the income that was earned within the financial statement consolidated group that is not subject to tax within the financial statement consolidated group. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | NOTE 8. EARNINGS PER SHARE The calculation of earnings per share ("EPS") for our Class A common stock is as follows: Three Months Ended 2024 2023 Numerator: Net income attributable to ProFrac Holding Corp. $ 1.8 $ 22.0 Adjust Series A preferred stock to its maximum redemption value ( 1.2 ) — Net income used for basic earnings per Class A common share 0.6 22.0 Net income reallocated to dilutive Class A common shares — 0.1 Net income used for diluted earnings per Class A common share $ 0.6 $ 22.1 Denominator: Weighted average Class A common shares 159.5 54.5 Dilutive potential of employee restricted stock units 0.3 0.4 Weighted average Class A common shares — diluted 159.8 54.9 Basic and diluted earnings per Class A common share $ 0.00 $ 0.40 The dilutive potential of employee restricted stock units is calculated using the treasury stock method. The dilutive potential of our Preferred Stock is calculated using the if-converted method. At March 31, 2024, there were 2.6 million common stock equivalents related to Preferred Stock that were not included in diluted earnings per share because the effect of their inclusion would be antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, we are the subject of, or party to a number of pending or threatened legal actions and administrative proceedings. While many of these matters involve inherent uncertainty, we believe that, other than as described below, the amount of the liability, if any, ultimately incurred with respect to proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations. We estimate and provide for potential losses that may arise out of legal proceedings and claims to the extent that such losses are probable and can be reasonably estimated. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different from these estimates. When preparing our estimates, we consider, among other factors, the progress of each legal proceeding and claim, our experience and the experience of others in similar legal proceedings and claims, and the opinions and views of legal counsel. Legal costs related to litigation contingencies are expensed as incurred. U.S. Well Services Inc. and U.S. Well Services, LLC (collectively, “USWS”) v. Halliburton Company and Cimarex Energy Co. (collectively, “Halliburton”) In April 2021, USWS filed a patent infringement suit against Halliburton in United States District Court for the Western District of Texas Waco Division. In the suit, USWS alleges willful infringement of seven U.S. patents based on Halliburton’s “All-Electric Fracturing Fleet.” In August 2023, a jury returned a verdict in this case in favor of USWS, which Halliburton has indicated it intends to appeal. In June 2021, Halliburton filed inter partes review ("IPR") petitions against these USWS patents. In January 2023, the Patent Trial and Appeal Board (“PTAB”) entered final written decisions finding certain claims of these patents invalid. In March 2023, USWS filed a notice of appeal of the final written decisions invalidating certain claims of three of these patents. Other appeal deadlines remain open. In May 2023, the Western District of Texas ruled certain claims of five of the USWS patents are invalid. In May 2022, Halliburton filed an amended answer to this patent infringement suit counterclaiming for declaratory judgment of invalidity of USWS’ patents asserted against Halliburton in this matter and willful infringement of seven of Halliburton’s U.S. patents based on USWS’ clean fleets and conventional fleets. In June 2022, USWS filed IPR petitions against four of Halliburton’s patents. In December 2022, the PTAB denied institution of IPR against these four patents. The outcome of Halliburton’s counterclaim against us is uncertain and the ultimate resolution of it could have a material adverse effect on our unaudited condensed consolidated financial statements in the period in which the resolution is recorded. Halliburton Energy Services, Inc., Halliburton US Technologies, Inc., and Halliburton Group Technologies, Inc. (collectively, “Halliburton”) v. U.S. Well Services, LLC (“USWS”) In September 2022, Halliburton filed two patent infringement suits against USWS in United States District Court for the Western District of Texas Waco Division. In the first lawsuit, Halliburton alleges willful infringement of three of its previously asserted patents as well as five additional U.S. patents. In the second lawsuit, Halliburton alleges willful infringement of two of its previously asserted patents as well as five additional U.S. patents. Both lawsuits allege infringement based on all of USWS and ProFrac LLC's fleets. The two lawsuits are scheduled together and set for trial in August 2024. In January 2023, USWS filed amended answers to these patent infringement suits counterclaiming for declaratory judgment of invalidity of Halliburton’s patents asserted against USWS in this matter and willful infringement of two additional USWS’ U.S. patents based on Halliburton’s “All-Electric Fracturing Fleet.” In February 2023, Halliburton filed IPR petitions against these USWS patents. However, this case has been stayed pending resolution of certain IPRs filed by USWS. We are currently unable to estimate the reasonably possible loss or range of loss in respect of these matters. These matters remain in an early stage, with few or no substantive legal decisions by the court defining the scope of the claims or the potential damages. As these matters develop and we receive additional information, we may be able to estimate reasonably possible losses or range of loss for these matters. The outcomes of these cases are uncertain and the ultimate resolution of them could have a material adverse effect on our unaudited condensed consolidated financial statements in the period in which the resolution is recorded. |
Variable Interest Entity
Variable Interest Entity | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entity | NOTE 10. VARIABLE INTEREST ENTITY Through a contractual relationship, we have the power to appoint directors to the board of directors of Flotek Industries, Inc. ("Flotek"). Because we have this power through a contract and not through our direct equity interest in Flotek, Flotek meets the definition of a variable interest entity ("VIE"). Furthermore, we are the primary beneficiary of the VIE due to our ability to appoint four of seven directors to Flotek’s board of directors. Accordingly, we have consolidated the operating results, assets and liabilities of Flotek. As of March 31, 2024, we owned approximately 50.8 % of Flotek's outstanding common stock. As of March 31, 2024 and December 31, 2023, $ 57.6 million and $ 62.7 million, respectively, of Flotek's assets and $ 51.9 million and $ 55.5 million, respectively, of Flotek's liabilities are included in our unaudited condensed consolidated balance sheets. These amounts are exclusive of goodwill and are after intercompany eliminations. The assets of Flotek can only be used to settle its obligations and the creditors of Flotek have no recourse to our assets. Our exposure to Flotek is generally limited to the carrying value of our equity and variable interest. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 11. FAIR VALUE OF FINANCIAL INSTRUMENTS Recurring Measurements Our assets and liabilities measured at fair value on a recurring basis consist of the following: Fair Value Measurements Using Level 1 Level 2 Level 3 March 31, 2024: Assets — Investment in BPC $ — $ — $ 24.9 Liabilities — Munger make-whole provision $ — $ — $ 7.8 December 31, 2023: Assets — Investment in BPC $ — $ — $ 23.4 Liabilities — Munger make-whole provision $ — $ — $ 7.5 We have elected the fair value option to account for our investment in Basin Production and Completion LLC ("BPC") due to the complexities of the terms of the equity investment. The significant unobservable inputs used in the fair value measurement, which was valued using the income approach and the market approach, are forecasted results and a weighted-average cost of capital. The fair value of this asset is classified as investments in our unaudited condensed consolidated balance sheets. The gains and losses from fair value changes are classified as other income (expense), net in our unaudited condensed consolidated statements of operations. The fair value of the Munger make-whole provision was estimated using a Black-Scholes model. The significant unobservable inputs used in the fair value measurement are the risk-free rate and volatility. At March 31, 2024, the expiration date of the Munger make-whole provision was set to expire in May 2024. In May 2024, the expiration date of the Munger make-whole provision was extended until May 2025. The following is a reconciliation of our recurring Level 3 fair value measurements: Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 15.9 $ 46.6 Change in fair value of Level 3 fair value measurements 1.2 ( 6.3 ) Balance at end of period $ 17.1 $ 40.3 Financial Instruments The estimated fair values of our financial instruments have been determined at discrete points in time based on relevant market information. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, certain investments, accounts payable, accrued expenses and long-term debt. The carrying amounts of our financial instruments other than long-term debt approximate fair value because of the short-term nature of the items. The carrying amounts of our term loan facility and ABL credit facility approximate fair value due to the variable interest rate. The fair value of our fixed rate debt, which includes the Monarch note and the Equify note was as follows: March 31, December 31, Carrying amount of fixed rate debt $ 62.6 $ 74.7 Fair value of fixed rate debt $ 61.0 $ 74.3 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 12. BUSINESS SEGMENTS We manage our business segments primarily on the type of product or services provided. We have three reportable segments which we operate within the United States of America: stimulation services, proppant production and manufacturing. Amounts in the other category reflect our business activities that are not separately reportable, which primarily includes Flotek for the periods presented. Intersegment transactions are intended to be at estimated market prices. Intersegment revenues for the proppant production segment were 31 % and 32 % in the three months ended March 31, 2024 and 2023, respectively. Intersegment revenues for the manufacturing segment were 78 % and 95 % in the three months ended March 31, 2024 and 2023, respectively. Revenue to external customers for the stimulation services segment are classified as service revenue on our unaudited condensed consolidated statements of operations. Revenue to external customers for the proppant production segment, the manufacturing segment, and our other business activities represent product sales for these businesses and are classified as such on our unaudited condensed consolidated statements of operations. Summarized financial information for our reportable segments is as follows: Stimulation Services Proppant Production Manufacturing Other Eliminations Total Three Months Ended March 31, 2024: Revenue External customers — services $ 505.4 $ — $ — $ — $ — $ 505.4 External customers — product sales (1) — 53.3 9.6 13.2 — 76.1 Intercompany (2) 11.9 24.4 33.9 28.5 ( 98.7 ) — Total Revenue $ 517.3 $ 77.7 $ 43.5 $ 41.7 $ ( 98.7 ) $ 581.5 Adjusted EBITDA (3) (4) $ 125.0 $ 28.4 $ 4.4 $ 3.6 $ ( 1.7 ) $ 159.7 Depreciation, depletion and amortization 92.9 18.0 1.1 0.8 — 112.8 Investment in property, plant & equipment 52.7 6.4 0.6 0.2 — 59.9 As of March 31, 2024: Cash and cash equivalents $ 5.8 $ 14.0 $ 3.3 $ 5.2 $ — $ 28.3 Total current assets 504.9 172.8 170.8 71.3 ( 255.2 ) 664.6 Property, plant, and equipment, net 805.7 847.5 19.4 17.2 — 1,689.8 Total assets (5) 2,465.4 1,143.2 253.2 187.8 ( 1,042.6 ) 3,007.0 Current portion of long-term debt 56.8 75.3 1.0 3.3 — 136.4 Long-term debt 594.7 314.8 2.7 — — 912.2 Total liabilities 1,380.0 214.2 207.5 51.9 ( 180.2 ) 1,673.4 Three Months Ended March 31, 2023: Revenue External customers — services $ 786.7 $ — $ — $ — $ — $ 786.7 External customers — product sales (1) — 55.8 3.4 11.6 — 70.8 Intercompany 3.5 26.4 63.7 37.6 ( 131.2 ) — Total Revenue $ 790.2 $ 82.2 $ 67.1 $ 49.2 $ ( 131.2 ) $ 857.5 Adjusted EBITDA (3) $ 205.7 $ 41.3 $ 8.0 $ ( 7.9 ) $ — $ 247.1 Depreciation, depletion and amortization 96.1 12.4 1.0 0.8 — 110.3 Investment in property, plant & equipment 74.9 7.7 0.4 0.2 — 83.2 As of December 31, 2023: Cash and cash equivalents $ 1.3 $ 17.7 $ 0.4 $ 5.9 $ — $ 25.3 Total current assets 445.8 181.2 164.7 70.6 ( 224.2 ) 638.1 Property, plant, and equipment, net 881.6 859.8 19.8 17.8 — 1,779.0 Total assets (5) 2,483.9 1,160.1 243.9 188.7 ( 1,005.9 ) 3,070.7 Current portion of long-term debt 46.2 71.6 1.0 7.6 — 126.4 Long-term debt 611.1 328.2 2.7 0.1 — 942.1 Total liabilities 1,404.5 225.7 201.5 55.5 ( 145.1 ) 1,742.1 (1) Our proppant production segment recognized noncash revenue associated with acquired contract liabilities of $ 13.6 million and $ 8.1 million in the three months ended March 31, 2024 and 2023, respectively. Refer to Item 8 "Financial Statements and Supplementary Data" in our Annual Report for information about our acquired contract liabilities. (2) In our other business activities, Flotek recorded $ 8.7 million of revenue related to contract shortfalls because the stimulation services segment did not purchase the minimum contractual commitment of chemistry products from Flotek. (3) We evaluate the performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as our net income (loss) before (i) interest expense, net, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) (loss) gain on disposal of assets, net, (v) stock-based compensation, and (vi) other charges, such as reorganization costs and other costs related to our initial public offering, certain credit losses, gain (loss) on extinguishment of debt, gain (loss) on investments, acquisition and integration expenses, litigation expenses and accruals for legal contingencies, acquisition earnout adjustments, severance charges and impairments of long-lived assets. (4) Adjusted EBITDA for the stimulated services segment included an intercompany supply commitment charge of $ 8.7 million because this segment did not purchase the minimum contractual commitment of chemistry products from Flotek. (5) Total assets for the stimulation services segment includes our investment in BPC, which was $ 24.9 million and $ 23.4 million as of March 31, 2024 and December 31, 2023, respectively. The gains and losses associated with this investment are not included in our segment profit measure of adjusted EBITDA. The following table reconciles Adjusted EBITDA for our reportable segments to net income: Three Months Ended March 31, 2024 2023 Adjusted EBITDA of reportable segments $ 159.7 $ 247.1 Interest expense, net ( 37.6 ) ( 34.9 ) Depreciation, depletion and amortization ( 112.8 ) ( 110.3 ) Income tax expense ( 0.3 ) ( 6.7 ) Gain (loss) on disposal of assets, net 1.4 ( 1.5 ) Gain (loss) on extinguishment of debt ( 0.8 ) 4.1 Acquisition earnout adjustment — 3.0 Stock-based compensation ( 2.1 ) ( 2.9 ) Stock-based compensation related to deemed contributions — ( 10.2 ) Provision for credit losses, net of recoveries — ( 0.1 ) Severance charges ( 0.7 ) — Acquisition and integration costs ( 0.2 ) ( 12.3 ) Litigation expenses and accruals for legal contingencies ( 4.8 ) ( 5.8 ) Unrealized gain (loss) on investments, net 1.2 ( 9.7 ) Net income $ 3.0 $ 59.8 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | NOTE 13. RELATED PARTY TRANSACTIONS In the normal course of business, we have entered into transactions with related parties where the Wilks Parties hold a controlling financial interest. In the three months ended March 31, 2024 and 2023, the Company had related party transactions with the following related party entities: • Automatize, LLC (“Automatize”) is a logistics broker that facilitates the last-mile delivery of proppants on behalf of its customers, including the Company. Amounts paid to Automatize include costs passed through to third-party trucking companies and a commission retained by Automatize. These payments are recorded in cost of revenues, exclusive of depreciation and depletion in our unaudited condensed consolidated statements of operations. • Cisco Logistics, LLC (“Cisco Logistics”) is a logistics company that delivers sand and equipment on behalf of its customers, including the Company. Amounts paid to Cisco Logistics are recorded in cost of revenues, exclusive of depreciation and depletion in our unaudited condensed consolidated statements of operations. • Equify Financial, LLC (“Equify Financial”) is a finance company that provides equipment and other financing to its customers, including the Company. Amounts paid to Equify Financial are recorded in interest expense in our unaudited condensed consolidated statements of operations and repayments of long-term debt in our unaudited condensed consolidated statements of cash flows. • Wilks Brothers, LLC (“Wilks Brothers”) is a management company which provides administrative support to various businesses within its portfolio. Wilks Brothers and certain entities under its control will at times incur expenses on our behalf, billing us for these expenses at cost as well as certain management fees. Amounts paid to Wilks Brothers are generally recorded in selling, general and administrative expenses in our unaudited condensed consolidated statements of operations. • Interstate Explorations, LLC (“Interstate”) is an exploration and development company for which we perform pressure pumping services. • Flying A Pump Services, LLC (“Flying A”) is an oilfield services company which provides pressure pumping, acid and cementing services, to which we rent and sell equipment and frac fleet components. • MC Estates, LLC, The Shops at Willow Park, and FTSI Industrial, LLC (collectively, the “Related Lessors”) own various industrial parks and office space leased by us. Amounts paid to the Related Lessors are recorded in selling, general and administrative expenses in our unaudited condensed consolidated statements of operations. • Wilks Construction Company, LLC (“Wilks Construction”) is a construction company that has built and made renovations to several buildings for us. Amounts paid to Wilks Construction are recorded as capital expenditures in our unaudited condensed consolidated statements of cash flows. • 3 Twenty-Three, LLC (“3 Twenty-Three”) is a payroll administrator which performs payroll services on behalf of its customers, including us. Amounts paid to 3 Twenty-Three are recorded in cost of revenues, exclusive of depreciation and depletion and selling, general and administrative expenses in our unaudited condensed consolidated statements of operations. • Wilks Earthworks, LLC ("Wilks Earthworks") is an oilfield services company that provides mining, wet and dry loading, hauling and other services and equipment to its customers, including us. These payments are recorded in cost of revenues, exclusive of depreciation and depletion, in our unaudited condensed consolidated statements of operations. • Carbo Ceramics Inc. (“Carbo”) is a provider of ceramic proppant which will at times purchase conventional proppant from us to act as a broker for its customers. Additionally, we will at times purchase manufactured proppant from Carbo for the stimulation services segment. • Cisco Aero, LLC ("AERO") is a private aviation company. Amounts paid to AERO are recorded as selling, general and administrative expenses in our unaudited condensed consolidated statements of operations. • FHE USA LLC (“FHE”) is a subsidiary of BPC that provides production and well completion equipment used at the wellsite. Amounts paid to FHE are recorded as capital expenditures in our unaudited condensed consolidated statements of cash flows. The following table summarizes revenue from related parties: Three Months Ended 2024 2023 Flying A $ 5.2 $ 1.5 Carbo — 0.7 Total $ 5.2 $ 2.2 The following table summarizes expenditures with related parties: Three Months Ended 2024 2023 Automatize $ 21.3 $ 43.3 FHE — 0.9 Wilks Brothers 2.1 6.3 Related Lessors 3.2 2.5 Wilks Construction — 4.9 Wilks Earthworks 1.6 1.5 Equify Financial 2.1 2.2 Carbo 0.3 0.7 Total $ 30.6 $ 62.3 The following table summarizes accounts receivable–related party: March 31, December 31, Flying A $ 11.1 $ 5.9 Carbo 0.5 0.5 Interstate 0.3 0.4 Total accounts receivable — related party $ 11.9 $ 6.8 The following table summarizes accounts payable–related party: March 31, December 31, Automatize $ 10.8 $ 11.6 Wilks Brothers 5.4 7.8 Wilks Earthworks 0.1 1.1 Related Lessors 0.1 0.1 Equify — 0.3 Carbo 0.2 1.0 Total accounts payable — related party $ 16.6 $ 21.9 In June 2023, we arranged to sell certain surplus equipment and inventory components and to assign certain pre-orders for equipment to Flying A, at prices which we believe to be fair market value, for a total consideration of $ 36.3 million. We received the proceeds from this transaction in June 2023. Subsequent to June 30, 2023, Flying A requested changes to the mix of the assets being sold to it by the Company without altering the total consideration, and the Company and Flying A agreed to add to the transaction agreement a most favored nation clause on pricing and a condition to closing that the Company’s Audit Committee approve the final mix of assets to be transferred to Flying A. We delivered $ 28.9 million of these components to Flying A in 2023. In January 2024, we agreed to sell $ 8.4 million of additional equipment to Flying A under similar terms. We received the proceeds from this additional transaction in January 2024 and expect to deliver all remaining components to Flying A in 2024. We accounted for the unapplied proceeds from these transactions as related party deposits presented as "Other current liabilities - related party" in our unaudited condensed consolidated balance sheets. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14. SUBSEQUENT EVENTS In April 2024, we acquired all of the remaining equity interests of BPC. Consideration transferred for this acquisition included approximately $ 6 million of cash for the common equity, $ 11 million of cash to repay certain of BPC’s debt obligations, and the assumption of $ 6 million of BPC’s debt obligations. The accounting for this acquisition is in process. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements presented herein include the accounts of ProFrac Corp. and those of its subsidiaries that are wholly owned, controlled by it or a variable interest entity ("VIE") where it is the primary beneficiary. Unless the context requires otherwise, the use of the terms "Company," "we," "us," "our" or "ours" in these notes to the unaudited condensed consolidated financial statements refer to ProFrac Corp., together with its consolidated subsidiaries. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. Accordingly, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair statement of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in Item 8 "Financial Statements and Supplementary Data" of our Annual Report. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Concentrations of Risk | Concentrations of Risk Our business activities are concentrated in the well completion services segment of the oilfield services industry in the United States. The market for these services is cyclical, and we depend on the willingness of our customers to make operating and capital expenditures to explore for, develop, and produce oil and natural gas in the United States. The willingness of our customers to undertake these activities depends largely upon prevailing industry conditions that are predominantly influenced by current and expected prices for oil and natural gas. Historically, a low commodity-price environment has caused our customers to significantly reduce their hydraulic fracturing activities and the prices they are willing to pay for those services. During these periods, these customer actions materially adversely affected our business, financial condition and results of operations. |
Recently Issued Standards Not Yet Adopted | Recently Issued Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosures required for operating segments in the Company's annual and interim consolidated financial statements. This ASU is effective retrospectively for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures. This ASU provides for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. |
Supplemental balance sheet in_2
Supplemental balance sheet information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | Cash, cash equivalents, and restricted cash are recorded in our unaudited condensed consolidated balance sheet as follows: March 31, 2024 2023 Cash and cash equivalents $ 28.3 $ 69.9 Restricted cash included in prepaid expenses and other current assets — 2.8 Total cash, cash equivalents, and restricted cash $ 28.3 $ 72.7 |
Summary of Inventories | Inventories are comprised of the following: March 31, December 31, Raw materials and supplies $ 74.6 $ 84.2 Work in process 21.1 20.5 Finished products and parts 124.1 131.9 Total $ 219.8 $ 236.6 |
Summary of Accrued Expenses | Accrued expenses are comprised of the following: March 31, December 31, Employee compensation and benefits $ 37.2 $ 22.6 Sales, use, and property taxes 16.8 24.0 Insurance 10.9 10.9 Interest 21.2 5.4 Income taxes 1.6 1.5 Other 1.3 1.2 Total accrued expenses $ 89.0 $ 65.6 |
Summary of Other Current Liabilities | Other current liabilities are comprised of the following: March 31, December 31, Acquired contract liabilities $ 35.6 $ 43.5 Accrued legal contingencies 10.8 20.7 Deferred revenue 3.3 7.3 Tax receivable agreement obligation 6.4 2.8 Other 8.3 9.8 Total other current liabilities $ 64.4 $ 84.1 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Summary of Unaudited Pro Forma Results of Operations | These unaudited pro forma amounts are not necessarily indicative of results that would have actually been obtained during the periods presented or that may be obtained in the future. Three Months Ended (unaudited) March 31, 2023 Revenues $ 882.3 Net income $ 67.2 |
Summary of Changes in Carrying Amount of Goodwill by Reportable Segment | The changes in the carrying amount of goodwill by reportable segment were as follows: Stimulation Proppant Manufacturing Other Total Balance, December 31, 2023 $ 169.7 $ 74.5 $ — $ 81.7 $ 325.9 Adjustment 16.4 — — — 16.4 Balance, March 31, 2024 $ 186.1 $ 74.5 $ — $ 81.7 $ 342.3 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Components of Debt | Debt is comprised of the following: March 31, December 31, ProFrac Holding Corp.: 2029 Senior Notes $ 500.0 $ 520.0 2022 ABL Credit Facility 137.7 117.4 Equify Notes (1) 17.1 18.6 Finance lease obligations 8.1 8.6 Other 8.8 13.8 ProFrac Holding Corp. principal amount 671.7 678.4 Less: unamortized debt discounts, premiums, and issuance costs ( 16.5 ) ( 17.4 ) Less: current portion of long-term debt ( 57.8 ) ( 47.2 ) ProFrac Holding Corp. long-term debt, net 597.4 613.8 Alpine Subsidiary: Alpine 2023 Term Loan 365.0 365.0 Monarch Note 43.8 54.7 Finance lease obligations 1.3 2.1 Alpine principal amount 410.1 421.8 Less: unamortized debt discounts, premiums, and issuance costs ( 20.0 ) ( 22.0 ) Less: current portion of long-term debt ( 75.3 ) ( 71.6 ) Alpine long-term debt, net 314.8 328.2 Flotek Subsidiary: Flotek ABL credit facility 3.1 7.5 Flotek other 0.2 0.2 Flotek principal amount 3.3 7.7 Less: current portion of long-term debt ( 3.3 ) ( 7.6 ) Flotek long-term debt, net — 0.1 Consolidated: Total principal amount 1,085.1 1,107.9 Less: unamortized debt discounts, premiums, and issuance costs ( 36.5 ) ( 39.4 ) Less: current portion of long-term debt ( 136.4 ) ( 126.4 ) Total long-term debt $ 912.2 $ 942.1 (1) Related party debt agreements. |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Summary of Other Operating Expense, Net | Other operating expense, net is comprised of the following: Three Months Ended 2024 2023 (Gain) loss on disposal of assets $ ( 1.4 ) $ 1.5 Litigation expenses and accruals for legal contingencies 4.8 5.8 Severance charges 0.7 — Supply commitment charge 0.2 — Acquisition earnout adjustments — ( 3.0 ) Provision for credit losses, net of recoveries — 0.1 Total $ 4.3 $ 4.4 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | The calculation of earnings per share ("EPS") for our Class A common stock is as follows: Three Months Ended 2024 2023 Numerator: Net income attributable to ProFrac Holding Corp. $ 1.8 $ 22.0 Adjust Series A preferred stock to its maximum redemption value ( 1.2 ) — Net income used for basic earnings per Class A common share 0.6 22.0 Net income reallocated to dilutive Class A common shares — 0.1 Net income used for diluted earnings per Class A common share $ 0.6 $ 22.1 Denominator: Weighted average Class A common shares 159.5 54.5 Dilutive potential of employee restricted stock units 0.3 0.4 Weighted average Class A common shares — diluted 159.8 54.9 Basic and diluted earnings per Class A common share $ 0.00 $ 0.40 The dilutive potential of employee restricted stock units is calculated using the treasury stock method. The dilutive potential of our Preferred Stock is calculated using the if-converted method. At March 31, 2024, there were 2.6 million common stock equivalents related to Preferred Stock that were not included in diluted earnings per share because the effect of their inclusion would be antidilutive. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis consist of the following: Fair Value Measurements Using Level 1 Level 2 Level 3 March 31, 2024: Assets — Investment in BPC $ — $ — $ 24.9 Liabilities — Munger make-whole provision $ — $ — $ 7.8 December 31, 2023: Assets — Investment in BPC $ — $ — $ 23.4 Liabilities — Munger make-whole provision $ — $ — $ 7.5 |
Reconciliation of Recurring Level 3 Fair Value Measurements | The following is a reconciliation of our recurring Level 3 fair value measurements: Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 15.9 $ 46.6 Change in fair value of Level 3 fair value measurements 1.2 ( 6.3 ) Balance at end of period $ 17.1 $ 40.3 |
Summary of Carrying Amounts and Fair Value of Financial Instruments | The carrying amounts of our term loan facility and ABL credit facility approximate fair value due to the variable interest rate. The fair value of our fixed rate debt, which includes the Monarch note and the Equify note was as follows: March 31, December 31, Carrying amount of fixed rate debt $ 62.6 $ 74.7 Fair value of fixed rate debt $ 61.0 $ 74.3 |
Business Segments (Table)
Business Segments (Table) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Reportable Segments | Summarized financial information for our reportable segments is as follows: Stimulation Services Proppant Production Manufacturing Other Eliminations Total Three Months Ended March 31, 2024: Revenue External customers — services $ 505.4 $ — $ — $ — $ — $ 505.4 External customers — product sales (1) — 53.3 9.6 13.2 — 76.1 Intercompany (2) 11.9 24.4 33.9 28.5 ( 98.7 ) — Total Revenue $ 517.3 $ 77.7 $ 43.5 $ 41.7 $ ( 98.7 ) $ 581.5 Adjusted EBITDA (3) (4) $ 125.0 $ 28.4 $ 4.4 $ 3.6 $ ( 1.7 ) $ 159.7 Depreciation, depletion and amortization 92.9 18.0 1.1 0.8 — 112.8 Investment in property, plant & equipment 52.7 6.4 0.6 0.2 — 59.9 As of March 31, 2024: Cash and cash equivalents $ 5.8 $ 14.0 $ 3.3 $ 5.2 $ — $ 28.3 Total current assets 504.9 172.8 170.8 71.3 ( 255.2 ) 664.6 Property, plant, and equipment, net 805.7 847.5 19.4 17.2 — 1,689.8 Total assets (5) 2,465.4 1,143.2 253.2 187.8 ( 1,042.6 ) 3,007.0 Current portion of long-term debt 56.8 75.3 1.0 3.3 — 136.4 Long-term debt 594.7 314.8 2.7 — — 912.2 Total liabilities 1,380.0 214.2 207.5 51.9 ( 180.2 ) 1,673.4 Three Months Ended March 31, 2023: Revenue External customers — services $ 786.7 $ — $ — $ — $ — $ 786.7 External customers — product sales (1) — 55.8 3.4 11.6 — 70.8 Intercompany 3.5 26.4 63.7 37.6 ( 131.2 ) — Total Revenue $ 790.2 $ 82.2 $ 67.1 $ 49.2 $ ( 131.2 ) $ 857.5 Adjusted EBITDA (3) $ 205.7 $ 41.3 $ 8.0 $ ( 7.9 ) $ — $ 247.1 Depreciation, depletion and amortization 96.1 12.4 1.0 0.8 — 110.3 Investment in property, plant & equipment 74.9 7.7 0.4 0.2 — 83.2 As of December 31, 2023: Cash and cash equivalents $ 1.3 $ 17.7 $ 0.4 $ 5.9 $ — $ 25.3 Total current assets 445.8 181.2 164.7 70.6 ( 224.2 ) 638.1 Property, plant, and equipment, net 881.6 859.8 19.8 17.8 — 1,779.0 Total assets (5) 2,483.9 1,160.1 243.9 188.7 ( 1,005.9 ) 3,070.7 Current portion of long-term debt 46.2 71.6 1.0 7.6 — 126.4 Long-term debt 611.1 328.2 2.7 0.1 — 942.1 Total liabilities 1,404.5 225.7 201.5 55.5 ( 145.1 ) 1,742.1 (1) Our proppant production segment recognized noncash revenue associated with acquired contract liabilities of $ 13.6 million and $ 8.1 million in the three months ended March 31, 2024 and 2023, respectively. Refer to Item 8 "Financial Statements and Supplementary Data" in our Annual Report for information about our acquired contract liabilities. (2) In our other business activities, Flotek recorded $ 8.7 million of revenue related to contract shortfalls because the stimulation services segment did not purchase the minimum contractual commitment of chemistry products from Flotek. (3) We evaluate the performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as our net income (loss) before (i) interest expense, net, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) (loss) gain on disposal of assets, net, (v) stock-based compensation, and (vi) other charges, such as reorganization costs and other costs related to our initial public offering, certain credit losses, gain (loss) on extinguishment of debt, gain (loss) on investments, acquisition and integration expenses, litigation expenses and accruals for legal contingencies, acquisition earnout adjustments, severance charges and impairments of long-lived assets. (4) Adjusted EBITDA for the stimulated services segment included an intercompany supply commitment charge of $ 8.7 million because this segment did not purchase the minimum contractual commitment of chemistry products from Flotek. (5) Total assets for the stimulation services segment includes our investment in BPC, which was $ 24.9 million and $ 23.4 million as of March 31, 2024 and December 31, 2023, respectively. The gains and losses associated with this investment are not included in our segment profit measure of adjusted EBITDA. The following table reconciles Adjusted EBITDA for our reportable segments to net income: Three Months Ended March 31, 2024 2023 Adjusted EBITDA of reportable segments $ 159.7 $ 247.1 Interest expense, net ( 37.6 ) ( 34.9 ) Depreciation, depletion and amortization ( 112.8 ) ( 110.3 ) Income tax expense ( 0.3 ) ( 6.7 ) Gain (loss) on disposal of assets, net 1.4 ( 1.5 ) Gain (loss) on extinguishment of debt ( 0.8 ) 4.1 Acquisition earnout adjustment — 3.0 Stock-based compensation ( 2.1 ) ( 2.9 ) Stock-based compensation related to deemed contributions — ( 10.2 ) Provision for credit losses, net of recoveries — ( 0.1 ) Severance charges ( 0.7 ) — Acquisition and integration costs ( 0.2 ) ( 12.3 ) Litigation expenses and accruals for legal contingencies ( 4.8 ) ( 5.8 ) Unrealized gain (loss) on investments, net 1.2 ( 9.7 ) Net income $ 3.0 $ 59.8 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The following table summarizes revenue from related parties: Three Months Ended 2024 2023 Flying A $ 5.2 $ 1.5 Carbo — 0.7 Total $ 5.2 $ 2.2 The following table summarizes expenditures with related parties: Three Months Ended 2024 2023 Automatize $ 21.3 $ 43.3 FHE — 0.9 Wilks Brothers 2.1 6.3 Related Lessors 3.2 2.5 Wilks Construction — 4.9 Wilks Earthworks 1.6 1.5 Equify Financial 2.1 2.2 Carbo 0.3 0.7 Total $ 30.6 $ 62.3 The following table summarizes accounts receivable–related party: March 31, December 31, Flying A $ 11.1 $ 5.9 Carbo 0.5 0.5 Interstate 0.3 0.4 Total accounts receivable — related party $ 11.9 $ 6.8 The following table summarizes accounts payable–related party: March 31, December 31, Automatize $ 10.8 $ 11.6 Wilks Brothers 5.4 7.8 Wilks Earthworks 0.1 1.1 Related Lessors 0.1 0.1 Equify — 0.3 Carbo 0.2 1.0 Total accounts payable — related party $ 16.6 $ 21.9 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 28.3 | $ 25.3 | $ 69.9 | |
Restricted cash included in prepaid expenses and other current assets | 2.8 | |||
Total cash, cash equivalents, and restricted cash | $ 28.3 | $ 25.3 | $ 72.7 | $ 37.9 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Summary of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials and supplies | $ 74.6 | $ 84.2 |
Finished products and parts | 124.1 | 131.9 |
Work in process | 21.1 | 20.5 |
Total | $ 219.8 | $ 236.6 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Summary of Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Employee compensation and benefits | $ 37.2 | $ 22.6 |
Sales, use, and property taxes | 16.8 | 24 |
Insurance | 10.9 | 10.9 |
Interest | 21.2 | 5.4 |
Income taxes | 1.6 | 1.5 |
Other | 1.3 | 1.2 |
Total accrued expenses | $ 89 | $ 65.6 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Summary of Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Acquired contract liabilities | $ 35.6 | $ 43.5 |
Accrued legal contingencies | 10.8 | 20.7 |
Deferred revenue | 3.3 | 7.3 |
Tax receivable agreement obligation | 6.4 | 2.8 |
Other | 8.3 | 9.8 |
Total other current liabilities | $ 64.4 | $ 84.1 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Millions | Feb. 24, 2023 | Jan. 03, 2023 |
Producers Service Holdings LLC | ||
Business Acquisition [Line Items] | ||
Purchase consideration | $ 36.5 | |
Percentage of outstanding shares of common stock | 100% | |
Performance Proppants LLC | ||
Business Acquisition [Line Items] | ||
Purchase consideration | $ 462.8 | |
Percentage of outstanding shares of common stock | 100% |
Business Combinations - Summary
Business Combinations - Summary of Unaudited Pro Forma Results of Operations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Business Acquisition, Pro Forma Information [Abstract] | |
Revenues | $ 882.3 |
Net income | $ 67.2 |
Business Combinations - Summa_2
Business Combinations - Summary of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Line Items] | |
Balances at December 31, 2023 | $ 325.9 |
Adjustment | 16.4 |
Balances at March 31, 2024 | 342.3 |
Stimulation Services | |
Goodwill [Line Items] | |
Balances at December 31, 2023 | 169.7 |
Adjustment | 16.4 |
Balances at March 31, 2024 | 186.1 |
Proppant Production | |
Goodwill [Line Items] | |
Balances at December 31, 2023 | 74.5 |
Balances at March 31, 2024 | 74.5 |
Other | |
Goodwill [Line Items] | |
Balances at December 31, 2023 | 81.7 |
Balances at March 31, 2024 | $ 81.7 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 1,085.1 | $ 1,107.9 |
Less: unamortized debt discounts, premiums, and issuance costs | (36.5) | (39.4) |
Less: current portion of long-term debt | (136.4) | (126.4) |
Total long-term debt, net | 912.2 | 942.1 |
ProFrac Holding Corp.: | ||
Debt Instrument [Line Items] | ||
Total principal amount | 671.7 | 678.4 |
Less: unamortized debt discounts, premiums, and issuance costs | (16.5) | (17.4) |
Less: current portion of long-term debt | (57.8) | (47.2) |
Total long-term debt, net | 597.4 | 613.8 |
ProFrac Holding Corp.: | 2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total principal amount | 500 | 520 |
ProFrac Holding Corp.: | 2022 ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Total principal amount | 137.7 | 117.4 |
ProFrac Holding Corp.: | Equify Note | ||
Debt Instrument [Line Items] | ||
Total principal amount | 17.1 | 18.6 |
ProFrac Holding Corp.: | Finance Lease Obligations | ||
Debt Instrument [Line Items] | ||
Total principal amount | 8.1 | 8.6 |
ProFrac Holding Corp.: | Other | ||
Debt Instrument [Line Items] | ||
Total principal amount | 8.8 | 13.8 |
Alpine Subsidiary: | ||
Debt Instrument [Line Items] | ||
Total principal amount | 410.1 | 421.8 |
Less: unamortized debt discounts, premiums, and issuance costs | (20) | (22) |
Less: current portion of long-term debt | (75.3) | (71.6) |
Total long-term debt, net | 314.8 | 328.2 |
Alpine Subsidiary: | Alpine 2023 Term Loan | ||
Debt Instrument [Line Items] | ||
Total principal amount | 365 | 365 |
Alpine Subsidiary: | Monarch Note | ||
Debt Instrument [Line Items] | ||
Total principal amount | 43.8 | 54.7 |
Alpine Subsidiary: | Finance Lease Obligations | ||
Debt Instrument [Line Items] | ||
Total principal amount | 1.3 | 2.1 |
Flotek Subsidiary: | ||
Debt Instrument [Line Items] | ||
Total principal amount | 3.3 | 7.7 |
Less: current portion of long-term debt | (3.3) | (7.6) |
Total long-term debt, net | 0.1 | |
Flotek Subsidiary: | Flotek ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Total principal amount | 3.1 | 7.5 |
Flotek Subsidiary: | Flotek Other | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 0.2 | $ 0.2 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
2029 Senior Notes | |
Debt Instrument [Line Items] | |
Debt instruments, principal payments | $ 20 |
ABL Credit Facility | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 291.6 |
Principal amount borrowed | 137.7 |
Letters of credit outstanding amount | 10.1 |
Remaining credit facility | 143.8 |
Monarch Note | |
Debt Instrument [Line Items] | |
Debt instruments, principal payments | 10.9 |
Equify Note | |
Debt Instrument [Line Items] | |
Debt instruments, principal payments | $ 1.5 |
Minimum | Alpine 2023 Term Loan | |
Debt Instrument [Line Items] | |
Debt instrument, leverage ratio | 2% |
Maximum | Alpine 2023 Term Loan | |
Debt Instrument [Line Items] | |
Debt instrument, leverage ratio | 1% |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Performance obligation | $ 231.3 | |
Amortization related to contract liabilities to revenue | 13.6 | $ 8.1 |
Prior Business Combinations | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | 37.5 | |
Future estimated revenue from the amortization of off-market contract liabilities, remainder of fiscal year | 29.9 | |
Future estimated revenue from the amortization of off-market contract liabilities, year one | $ 7.6 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information 1 (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 231.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Amount | $ 129.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 43.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 43.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 14.5 |
Other Operating Expense, Net -
Other Operating Expense, Net - Summary of Other Operating Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
(Gain) loss on disposal of assets | $ (1.4) | $ 1.5 |
Litigation expenses and accruals for legal contingencies | 4.8 | 5.8 |
Severance charges | 0.7 | |
Supply commitment charge | 0.2 | |
Acquisition earnout adjustments | (3) | |
Provision for credit losses, net of recoveries | 0.1 | |
Total | $ 4.3 | $ 4.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure Line Items | ||
Effective income tax rate reconciliation, Percent | 9.10% | 10.10% |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net Income (Loss) | $ 1.8 | $ 22 |
Net income used for basic earnings per Class A common share | $ 0.6 | $ 22 |
Denominator: | ||
Weighted average Class A common shares outstanding, basic | 159.5 | 54.5 |
Weighted-average Class A shares used for diluted EPS computation | 159.8 | 54.9 |
Basic (loss) earnings per share - Class A Common Stock | $ 0 | $ 0.4 |
Diluted (loss) earnings per share - Class A Common Stock | $ 0 | $ 0.4 |
Class A Common Stock | ||
Numerator: | ||
Net Income (Loss) | $ 1.8 | $ 22 |
Adjust Series A preferred stock to its maximum redemption value | (1.2) | |
Net income used for basic earnings per Class A common share | 0.6 | 22 |
Net loss reallocated to dilutive Class A common shares | 0.1 | |
Net (loss) income used for diluted earnings per Class A common share | $ 0.6 | $ 22.1 |
Denominator: | ||
Weighted average Class A common shares outstanding, basic | 159.5 | 54.5 |
Dilutive potential of employee restricted stock units | 0.3 | 0.4 |
Weighted-average Class A shares used for diluted EPS computation | 159.8 | 54.9 |
Basic (loss) earnings per share - Class A Common Stock | $ 0 | $ 0.4 |
Diluted (loss) earnings per share - Class A Common Stock | $ 0 | $ 0.4 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2024 shares | |
Preferred Stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Stock equivalents not included in diluted earnings per share | 2.6 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Assets | $ 3,007 | $ 3,070.7 |
Liabilities | $ 1,673.4 | 1,742.1 |
Pro Frac L L C [Member] | ||
Variable Interest Entity [Line Items] | ||
Percentage of equity interest | 50.80% | |
Flotek Industries, Inc. | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 57.6 | 62.7 |
Liabilities | $ 51.9 | $ 55.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Level 3 - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investment in BPC | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets measured at fair value | $ 24.9 | $ 23.4 |
Munger make whole provision | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ 7.8 | $ 7.5 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Reconciliation of Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value, beginning of period | $ 15.9 | $ 46.6 |
Change in fair value of Level 3 fair value measurements | 1.2 | (6.3) |
Fair value, end of period | $ 17.1 | $ 40.3 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Carrying amount of fixed rate debt | $ 62.6 | $ 74.7 |
Fair value of fixed rate debt | $ 61 | $ 74.3 |
Business Segments - Additional
Business Segments - Additional Information (Details) - Segment | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segment | 3 | |
Revenue | Customer Concentration Risk | Manufacturing | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue | 78% | 95% |
Revenue | Customer Concentration Risk | Proppant Production | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue | 31% | 32% |
Business Segments - Summary of
Business Segments - Summary of Financial Information for Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 581.5 | $ 857.5 | |
Adjusted EBITDA | 159.7 | 247.1 | |
Depreciation, depletion and amortization | 112.8 | 110.3 | |
Investment in property, plant & equipment | 59.9 | 83.2 | |
Cash and cash equivalents | 28.3 | 69.9 | $ 25.3 |
Total current assets | 664.6 | 638.1 | |
Property, plant, and equipment, net | 1,689.8 | 1,779 | |
Total assets | 3,007 | 3,070.7 | |
Current portion of long-term debt | 136.4 | 126.4 | |
Long-term debt | 912.2 | 942.1 | |
Total liabilities | 1,673.4 | 1,742.1 | |
External Customers | Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 505.4 | 786.7 | |
External Customers | Product Sales | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 76.1 | 70.8 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (98.7) | (131.2) | |
Adjusted EBITDA | (1.7) | ||
Total current assets | (255.2) | (224.2) | |
Total assets | (1,042.6) | (1,005.9) | |
Total liabilities | (180.2) | (145.1) | |
Eliminations | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (98.7) | (131.2) | |
Stimulation Services | |||
Segment Reporting Information [Line Items] | |||
Total assets | 24.9 | 23.4 | |
Stimulation Services | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 517.3 | 790.2 | |
Adjusted EBITDA | 125 | 205.7 | |
Depreciation, depletion and amortization | 92.9 | 96.1 | |
Investment in property, plant & equipment | 52.7 | 74.9 | |
Cash and cash equivalents | 5.8 | 1.3 | |
Total current assets | 504.9 | 445.8 | |
Property, plant, and equipment, net | 805.7 | 881.6 | |
Total assets | 2,465.4 | 2,483.9 | |
Current portion of long-term debt | 56.8 | 46.2 | |
Long-term debt | 594.7 | 611.1 | |
Total liabilities | 1,380 | 1,404.5 | |
Stimulation Services | Reportable Segments | External Customers | Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 505.4 | 786.7 | |
Stimulation Services | Reportable Segments | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 11.9 | 3.5 | |
Proppant Production | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 77.7 | 82.2 | |
Adjusted EBITDA | 28.4 | 41.3 | |
Depreciation, depletion and amortization | 18 | 12.4 | |
Investment in property, plant & equipment | 6.4 | 7.7 | |
Cash and cash equivalents | 14 | 17.7 | |
Total current assets | 172.8 | 181.2 | |
Property, plant, and equipment, net | 847.5 | 859.8 | |
Total assets | 1,143.2 | 1,160.1 | |
Current portion of long-term debt | 75.3 | 71.6 | |
Long-term debt | 314.8 | 328.2 | |
Total liabilities | 214.2 | 225.7 | |
Proppant Production | Reportable Segments | External Customers | Product Sales | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 53.3 | 55.8 | |
Proppant Production | Reportable Segments | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 24.4 | 26.4 | |
Manufacturing | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 43.5 | 67.1 | |
Adjusted EBITDA | 4.4 | 8 | |
Depreciation, depletion and amortization | 1.1 | 1 | |
Investment in property, plant & equipment | 0.6 | 0.4 | |
Cash and cash equivalents | 3.3 | 0.4 | |
Total current assets | 170.8 | 164.7 | |
Property, plant, and equipment, net | 19.4 | 19.8 | |
Total assets | 253.2 | 243.9 | |
Current portion of long-term debt | 1 | 1 | |
Long-term debt | 2.7 | 2.7 | |
Total liabilities | 207.5 | 201.5 | |
Manufacturing | Reportable Segments | External Customers | Product Sales | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 9.6 | 3.4 | |
Manufacturing | Reportable Segments | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 33.9 | 63.7 | |
Other | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 41.7 | 49.2 | |
Adjusted EBITDA | 3.6 | (7.9) | |
Depreciation, depletion and amortization | 0.8 | 0.8 | |
Investment in property, plant & equipment | 0.2 | 0.2 | |
Cash and cash equivalents | 5.2 | 5.9 | |
Total current assets | 71.3 | 70.6 | |
Property, plant, and equipment, net | 17.2 | 17.8 | |
Total assets | 187.8 | 188.7 | |
Current portion of long-term debt | 3.3 | 7.6 | |
Long-term debt | 0.1 | ||
Total liabilities | 51.9 | $ 55.5 | |
Other | Reportable Segments | External Customers | Product Sales | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 13.2 | 11.6 | |
Other | Reportable Segments | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 28.5 | $ 37.6 |
Business Segments - Summary o_2
Business Segments - Summary of Financial Information for Reportable Segments (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,007 | $ 3,070.7 | |
Proppant Production | |||
Segment Reporting Information [Line Items] | |||
Noncash revenue associated with acquired contract liabilities | 13.6 | $ 8.1 | |
Stimulation Services | |||
Segment Reporting Information [Line Items] | |||
Intercompany supply commitment charge | 8.7 | ||
Total assets | 24.9 | $ 23.4 | |
Flotek | |||
Segment Reporting Information [Line Items] | |||
Revenue related to contract shortfalls | $ 8.7 |
Business Segments - Summary o_3
Business Segments - Summary of Reconciles Total Adjusted EBITDA to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||
Adjusted EBITDA | $ 159.7 | $ 247.1 |
Interest expense, net | (37.6) | (34.9) |
Depreciation, depletion and amortization | (112.8) | (110.3) |
Income tax expense | (0.3) | (6.7) |
Gain (loss) on disposal of assets, net | 1.4 | (1.5) |
Gain (loss) on extinguishment of debt | (0.8) | 4.1 |
Acquisition earnout adjustment | 3 | |
Stock-based compensation | (2.1) | (2.9) |
Stock-based compensation related to deemed contributions | (10.2) | |
Provision for credit losses, net of recoveries | (0.1) | |
Severance charges | (0.7) | |
Acquisition and integration costs | (0.2) | (12.3) |
Litigation expenses and accruals for legal contingencies | (4.8) | (5.8) |
Unrealized gain (loss) on investments, net | 1.2 | (9.7) |
Net income | $ 3 | $ 59.8 |
Related Party Transactions - Su
Related Party Transactions - Summary of Revenue from Related Parties (Details) - Related Party - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Revenues | $ 5.2 | $ 2.2 |
Flying A | ||
Related Party Transaction [Line Items] | ||
Revenues | $ 5.2 | 1.5 |
Carbo | ||
Related Party Transaction [Line Items] | ||
Revenues | $ 0.7 |
Related Party Transactions - _2
Related Party Transactions - Summary of Expenditures with Related Parties (Details) - Related Party - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Expenditures with related parties | $ 30.6 | $ 62.3 |
Automatize | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 21.3 | 43.3 |
FHE | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 0 | 0.9 |
Wilks Brothers | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 2.1 | 6.3 |
Related Lessors | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 3.2 | 2.5 |
Wilks Construction | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 4.9 | |
Wilks Earthworks | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 1.6 | 1.5 |
Equify Financial | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | 2.1 | 2.2 |
Carbo | ||
Related Party Transaction [Line Items] | ||
Expenditures with related parties | $ 0.3 | $ 0.7 |
Related Party Transactions - _3
Related Party Transactions - Summary of Related Party Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Accounts receivable, net | $ 381.8 | $ 346.1 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net | 11.9 | 6.8 |
Flying A | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net | 11.1 | 5.9 |
Carbo | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net | 0.5 | 0.5 |
Interstate | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net | $ 0.3 | $ 0.4 |
Related Party Transactions - _4
Related Party Transactions - Summary of Related Party Accounts Payable (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Accounts payable | $ 281.8 | $ 319 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 16.6 | 21.9 |
Automatize | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 10.8 | 11.6 |
Wilks Brothers | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 5.4 | 7.8 |
Wilks Earthworks | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 0.1 | 1.1 |
Related Lessors | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 0.1 | 0.1 |
Equify | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 0.3 | |
Carbo | Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable | $ 0.2 | $ 1 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Flying A - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 9 Months Ended |
Jan. 31, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Related Party Transaction [Line Items] | |||
Proceeds from sale of equipment | $ 8.4 | $ 28.9 | |
Purchase consideration | $ 36.3 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - BPC $ in Millions | Apr. 30, 2024 USD ($) |
Subsequent Event [Line Items] | |
Cash consideration transferred for the common equity | $ 6 |
Repayment of debt obligations | 11 |
Debt obligations assumed | $ 6 |