ProFrac Holding Corp (ACDC) 2024 Q3 法說會逐字稿

Ladies and gentlemen, greetings and welcome to the ProFrac Holding Corp third-quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

女士、先生們，大家好，歡迎參加 ProFrac Holding Corp 第三季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Michael Messina, Director of Finance. Please go ahead.

現在我很高興向您介紹主持人，財務總監 Michael Messina。請繼續。

Thank you, operator. Good morning, everyone. We appreciate you joining us for ProFrac Holding Corp's conference call and webcast to review our third-quarter 2024 results. With me today are Matt Wilks, Executive Chairman; Ladd Wilks, Chief Executive Officer; and Austin Harbour, Chief Financial Officer.

謝謝你，接線生。大家早安。感謝您參加 ProFrac Holding Corp 的電話會議和網路廣播，回顧我們 2024 年第三季的表現。今天與我在一起的有執行主席馬特威爾克斯 (Matt Wilks)；拉德·威爾克斯，首席執行官；和財務長奧斯汀港。

Following my remarks, management will provide high-level commentary on the operational and financial highlights of the third quarter before opening the call up to your questions. A replay of today's call will be available by webcast on the company's website at pfholdingscorp.com, and a telephonic recording will be available until November 12, 2024. More information on how to access these replay features is included in the company's earnings release.

在我發表演講之後，管理層將在電話會議上回答您的問題之前，對第三季度的營運和財務亮點進行高級評論。今天的電話會議的重播將在公司網站 pfholdingscorp.com 上透過網路直播進行，電話錄音將在 2024 年 11 月 12 日之前提供。有關如何存取這些重播功能的更多資訊包含在該公司的財報中。

Please note that information reported on this call speaks only as of today, November 05, 2024; and therefore, you are advised that any time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Also, comments on this call may contain forward-looking statements within the meaning of the United States Federal Securities Laws, including management's expectations of future financial and business performance.

請注意，本次電話會議報告的資訊僅截至今天（2024 年 11 月 5 日）；因此，我們建議您，任何時間敏感的資訊在任何重播聆聽或文字記錄閱讀時可能不再準確。此外，本次電話會議的評論可能包含美國聯邦證券法意義內的前瞻性陳述，包括管理階層對未來財務和業務績效的預期。

These forward-looking statements reflect the current views of ProFrac's management and are not guarantees of future performance. Various risks, uncertainties, and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in management's forward-looking statements. The listener or reader is encouraged to read ProFrac's Form 10-K and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's Investor Relations website section under the SEC filings tab to understand those risks, uncertainties, and contingencies.

這些前瞻性陳述反映了 ProFrac 管理階層目前的觀點，並非對未來績效的保證。各種風險、不確定性和意外事件可能導致實際結果、績效或成就與管理階層前瞻性聲明中表達的結果有重大差異。我們鼓勵聽眾或讀者閱讀ProFrac 向美國證券交易委員會提交的10-K 表格和其他文件，這些文件可以在sec.gov 或該公司投資者關係網站上SEC 文件標籤下的部分找到，以了解這些風險、不確定性和意外情況。

The comments today also include certain non-GAAP financial measures as well as other adjusted figures to exclude the contribution of Flotek. Additional details and reconciliations to the most directly comparable, consolidated, and GAAP financial measures are included in the quarterly earnings press release, which can be found on the company's website.

今天的評論還包括某些非公認會計準則財務指標以及其他調整後的數據，以排除 Flotek 的貢獻。季度收益新聞稿中包含了最直接可比較、綜合和公認會計原則財務指標的更多細節和調節，您可以在公司網站上找到該新聞稿。

And now, I would like to turn the call over to ProFrac's Executive Chairman, Mr. Matt Wilks.

現在，我想將電話轉給 ProFrac 執行主席 Matt Wilks 先生。

Thank you, Michael. And good morning, everyone. After my prepared remarks, Ladd will comment further on the performance of our subsidiaries, and Austin will walk through our financial performance. In the third quarter, ProFrac delivered strong results with revenue of $575 million and adjusted EBITDA of $135 million. We continued our recent quarterly trend of setting new operating efficiency records and delivering leading performance for our customers amidst challenging market dynamics.

謝謝你，麥可。大家早安。在我準備好的演講之後，拉德將進一步評論我們子公司的業績，奧斯汀將介紹我們的財務表現。第三季度，ProFrac 取得了強勁的業績，營收為 5.75 億美元，調整後 EBITDA 為 1.35 億美元。我們延續了最近的季度趨勢，即在充滿挑戰的市場動態中創造新的營運效率記錄並為客戶提供領先的業績。

As we have previously highlighted, ProFrac's leading position throughout the completions value chain enables us to deliver robust financial and operational performance through the cycle. Further, we continue to execute on our commercial strategy to partner with operators that value integrated, highly efficient solutions at scale.

正如我們之前所強調的，ProFrac 在整個完井價值鏈中的領先地位使我們能夠在整個週期中提供穩健的財務和營運績效。此外，我們繼續執行我們的商業策略，與重視大規模整合、高效解決方案的營運商合作。

ProFrac's third-quarter performance is underpinned by our record-setting efficiency per active fleet, a testament to the quality of our people and our commitment to safety, efficiency, and leading customer service. In addition to consistent improvement in service quality at the wellhead, I'm also proud of the team's commitment to servicing, maintaining, and upgrading fleets.

ProFrac 第三季的業績得益於我們每支活躍車隊創紀錄的效率，這證明了我們員工的品質以及我們對安全、效率和領先客戶服務的承諾。除了井口服務品質的持續改進之外，我還為團隊致力於服務、維護和升級車隊而感到自豪。

The company's internal R&D, manufacturing, and maintenance capabilities are an integral element of our strategy. Simply put, we are able to repair, service, and redeploy fleets rapidly as the market ebbs and flows. Our internal research, design, and development capabilities provide a comprehensive platform to drive commercial innovation.

公司內部的研發、製造和維護能力是我們策略的一個組成部分。簡而言之，我們能夠隨著市場的漲落而快速維修、保養和重新部署車隊。我們的內部研究、設計和開發能力提供了推動商業創新的綜合平台。

Of note, we are pleased to report that we have successfully tested our newest generation of electric pumps, which was internally designed and developed. ProFrac is also testing a novel software platform, providing unique insights into not only pumping performance, but also well performance during live completion operations. While this solution remains subject to further refinement, initial feedback from potential enhancements in operational and maintenance performance are promising. We expect to have more details to share in the future.

值得注意的是，我們很高興地報告，我們已經成功測試了內部設計和開發的最新一代電動幫浦。ProFrac 也正在測試一種新穎的軟體平台，不僅可以提供對泵送性能的獨特見解，還可以對即時完井作業期間的油井性能提供獨特的見解。雖然該解決方案仍有待進一步完善，但來自營運和維護性能潛在增強的初步回饋是有希望的。我們希望將來能分享更多細節。

We manage assets such that the next available fleet in our portfolio is positioned to deliver leading-edge performance while minimizing non-productive time. We are starting to witness equipment attrition across the industry and believe this trend will accelerate in the future. This is driven by lower relative equipment investment, increased hours per fleet and per component, and the lack of new entrants due to limited availability of capital.

我們管理資產，以便我們的投資組合中的下一個可用機隊能夠提供領先的性能，同時最大限度地減少非生產時間。我們開始見證整個產業的設備損耗，並相信這個趨勢未來將會加速。這是由於相對設備投資較低、每個車隊和每個組件的工作時間增加以及由於可用資金有限而缺乏新進入者。

We believe these characteristics are influencing current supply and demand dynamics and believe that attrition may impact efficiencies as incremental activity unfolds. Our equipment, as well as equipment across the industry, have and continue to pump more hours than ever before, resulting in an accelerated reinvestment cycle. At ProFrac, we expect this trend to continue, and we will prudently manage our portfolio of assets and capital allocation with a returns-focused mindset.

我們認為這些特徵正在影響目前的供需動態，並相信隨著增量活動的展開，人員流失可能會影響效率。我們的設備以及整個行業的設備的泵送時間比以往任何時候都更長，從而加快了再投資週期。在 ProFrac，我們預期這種趨勢將持續下去，我們將以注重回報的心態審慎管理我們的資產組合和資本配置。

Following a preliminary review of our assets, we have identified approximately 400,000 horsepower of legacy diesel burning frac pumps that we are proactively retiring because they do not meet our reinvestment thresholds. Concurrently, ProFrac has strategically allocated capital both to maintain and to improve our fleet.

在對我們的資產進行初步審查後，我們確定了大約 40 萬馬力的傳統柴油燃燒壓裂泵，我們將主動淘汰這些泵，因為它們不符合我們的再投資門檻。同時，ProFrac 已策略性地分配資本來維護和改進我們的船隊。

Further, we have purposely reorganized our asset management program to ensure the quality of our ready line. Our goal is for each incremental fleet to be the best fleet in our portfolio. Simply put, every fleet we deploy meets ProFrac's high standard of quality and reliability. The partnership model that we share with our customers and the integrated solutions that we provide are the core of our value proposition.

此外，我們也特意重組了資產管理計劃，以確保備貨線的品質。我們的目標是讓每個增量機隊成為我們產品組合中最好的機隊。簡而言之，我們部署的每個車隊都符合 ProFrac 的高品質和可靠性標準。我們與客戶共享的合作夥伴模式以及我們提供的整合解決方案是我們價值主張的核心。

As we have discussed previously, we believe our integrated model provides a unique competitive advantage to ProFrac throughout various market cycles. For example, as operators consolidate, they increasingly favor service companies that can provide integrated solutions at the pad. Given ProFrac's leading position throughout the completions value chain and our strategic ability to add scale in the most active basins in the US, we can take advantage of opportunities in a rapidly evolving marketplace.

正如我們之前所討論的，我們相信我們的整合模型為 ProFrac 在不同的市場週期中提供了獨特的競爭優勢。例如，隨著營運商的整合，他們越來越青睞能夠在發射台提供整合解決方案的服務公司。鑑於 ProFrac 在整個完井價值鏈中的領先地位以及我們在美國最活躍盆地擴大規模的戰略能力，我們可以利用快速發展的市場中的機會。

Looking forward, we expect to continue to invest in next-generation equipment that dispositions diesel. We recognize that this technology is the future. Demand for our e-fleets and our dual fuel or dynamic gas blending assets that utilize natural gas as the primary fuel source remains strong, and we continue to make progress on fleet upgrades.

展望未來，我們預計將繼續投資下一代柴油處理設備。我們認識到這項技術就是未來。對我們的電子車隊以及利用天然氣作為主要燃料來源的雙燃料或動態氣體混合資產的需求仍然強勁，我們在車隊升級方面繼續取得進展。

Today, approximately three quarters of our active fleets include e-fleet or natural-gas-capable equipment. Of note, our e-fleets are all active in Q4 despite market headwinds. Our ability to provide customers with significant fuel savings, high reliability, and efficient operations have made our next-generation assets highly sought after and a critical part of our service offerings.

如今，我們大約四分之三的現役車隊配備了電子車隊或天然氣設備。值得注意的是，儘管市場逆風，我們的電動車隊在第四季仍然活躍。我們為客戶提供顯著的燃油節省、高可靠性和高效運作的能力使我們的下一代資產備受追捧，並成為我們服務產品的關鍵部分。

As we mentioned last quarter, we recognize there is a significant opportunity for ProFrac to play a meaningful role in power generation. There has been a surge in demand for power generation capabilities in response to grid constraints and failures, AI-driven computing power requirements, and broader industrial scale electrification trends. As a result, we are making strategic investments around power generation and plan to be an active participant in the solution.

正如我們上季度所提到的，我們認識到 ProFrac 有很大機會在發電領域發揮有意義的作用。為了應對電網限制和故障、人工智慧驅動的運算能力需求以及更廣泛的工業規模電氣化趨勢，對發電能力的需求激增。因此，我們正在圍繞發電進行策略性投資，並計劃積極參與該解決方案。

As more fuel-efficient technologies become the standard, our customers are increasingly requiring on-demand power generation at the wellhead and diversifying into power generation as a natural organic growth area. In proppant production, we saw improvement from the trough in July through Q3. However, markets continue to remain challenged. West Texas remains highly competitive.

隨著更節能的技術成為標準，我們的客戶越來越需要在井口按需發電，並將發電作為一個自然的有機成長領域。在支撐劑生產方面，我們看到從 7 月的低潮到第三季有所改善。然而，市場仍面臨挑戰。西德克薩斯州仍然具有很強的競爭力。

Additionally, our assets in the Haynesville were negatively impacted by subdued drilling and completion activity in the region. We anticipate the Q4 results will be impacted by softening demand as we approach year end. We are actively managing costs while maintaining our strategic position across our mines and anticipate a recovery in activity in 2025, particularly in West Texas and South Texas.

此外，我們在海恩斯維爾的資產受到該地區鑽井和完井活動低迷的負面影響。我們預計，隨著年底的臨近，第四季的業績將受到需求疲軟的影響。我們正在積極管理成本，同時保持我們在各個礦山的戰略地位，並預計 2025 年活動將復甦，特別是在德克薩斯州西部和德克薩斯州南部。

Further, we have a unique scaled position in the Haynesville and are focused on increasing efficiencies to enhance profitability upon a potential recovery in activity. I'm proud of our team's execution and commitment to excellence despite a challenging market environment. In summary, we generated $575 million of revenues, $135 million of adjusted EBITDA, and $31 million of free cash flow despite a challenging market.

此外，我們在海恩斯維爾擁有獨特的規模地位，並專注於提高效率，以在活動潛在復甦時提高獲利能力。儘管市場環境充滿挑戰，但我為我們團隊的執行力和對卓越的承諾感到自豪。總之，儘管市場充滿挑戰，我們仍創造了 5.75 億美元的營收、1.35 億美元的調整後 EBITDA 和 3,100 萬美元的自由現金流。

We continue to fill new inbound requests for additional integrated fleet deployments with the highest demand for electric and Tier 4 dual fuel or DGB technologies. And as of today, approximately three-quarters of active fleets utilize next-generation technology. We continue to invest in our industry-leading technologies that drive increased pump time and reduced non-productive time.

我們繼續滿足新的入境請求，以增加綜合車隊部署，滿足對電動和 Tier 4 雙燃料或 DGB 技術的最高需求。截至目前，大約四分之三的現役車隊採用了下一代技術。我們繼續投資業界領先的技術，以延長泵送時間並減少非生產時間。

We are proactively retiring 400,000 legacy diesel-burning horsepower that does not meet our reinvestment thresholds. We have purposely reorganized our asset management program to ensure the quality of our ready line so that each incremental fleet meets our standards for quality and reliability.

我們正在積極淘汰 40 萬台不符合再投資門檻的傳統柴油引擎。我們有目的地重組了我們的資產管理計劃，以確保我們的就緒線的質量，使每個增量機隊都符合我們的品質和可靠性標準。

We successfully tested our internally designed and developed next-generation e-pump. We achieved our third consecutive new quarterly record for efficiencies based on pump hours per active fleet, a testament to the leading-edge execution by our employees in the field. We have positioned ProFrac to generate long-term value for our stakeholders by delivering the most efficient solutions through vertically integrated in-basin scaled offerings, leading-edge service, and a relentless focus on free cash flow generation through the cycle.

我們成功測試了我們內部設計和開發的下一代電子泵。根據每個活躍車隊的泵工時數，我們連續第三個季度創下效率新紀錄，這證明了我們現場員工的領先執行力。我們將 ProFrac 定位為透過垂直整合的流域內規模化產品、領先的服務以及對整個週期中自由現金流產生的不懈關注，提供最有效的解決方案，為我們的利益相關者創造長期價值。

And with that, I'll turn the call over to Ladd.

然後，我會將電話轉給拉德。

Thank you, Matt. I'll begin with an overview of our performance in each segment, starting with pressure pumping. I'm proud to report that we continued our quarterly trend of delivering record efficiencies for our customers. Although the market environment was characterized by decreased activity and budget exhaustion, ProFrac achieved a record for pumping hours per fleet for the third consecutive quarter.

謝謝你，馬特。我將首先概述我們在每個細分市場的表現，從壓力泵開始。我很自豪地報告，我們繼續保持為客戶提供創紀錄效率的季度趨勢。儘管市場環境的特點是活動減少和預算耗盡，ProFrac 連續第三個季度創下了每個船隊的泵送時間記錄。

ProFrac's best-performing fleets exceeded 22 hours per day. We continue to strive for excellence every day. Our performance is made possible through the operational improvements we've made internally and the emphasis we placed on our commercial strategy. Our asset management program has enabled us to not only turn around and rapidly redeploy fleets but also positions us to respond as the market improves with well-maintained assets that are ready to pump.

ProFrac 表現最佳的車隊每天工作超過 22 小時。我們每天都繼續追求卓越。我們的業績是透過我們內部進行的營運改善以及我們對商業策略的重視而實現的。我們的資產管理計劃不僅使我們能夠扭轉局面並快速重新部署機隊，而且使我們能夠利用維護良好、隨時可供泵送的資產，隨著市場的改善做出反應。

We're strategically investing in our fleets and purposely holding back assets in this market on a ready line so that we're able to fill incremental demand as we progress through 2025. Our asset management program has also enabled us to reduce costs via more streamlined repair, maintenance, and make-ready procedures without sacrificing asset quality. Additionally, this program has also gained us deeper insight into the lifespan of our equipment.

我們正在對我們的機隊進行策略性投資，並有目的地保留該市場上的資產，以便我們能夠在 2025 年前進時滿足增量需求。我們的資產管理計劃還使我們能夠透過更簡化的維修、維護和準備程序來降低成本，而不會犧牲資產品質。此外，該計劃還讓我們更深入地了解了設備的使用壽命。

As Matt mentioned, we have recently conducted a preliminary review of our equipment and are proactively retiring approximately 400,000 horsepower of legacy diesel-burning equipment. Asset quality dovetails with our commercial strategy. We continue to emphasize and partner with operators that value fulsome solutions versus ad hoc services. We are uniquely capable to tailor bespoke integrated completion solutions across the value chain that enable our customers to improve well economics and productivity at scale.

正如馬特所提到的，我們最近對我們的設備進行了初步審查，並主動淘汰約 40 萬馬力的傳統柴油燃燒設備。資產品質與我們的商業策略相吻合。我們繼續強調並與重視豐富解決方案而不是臨時服務的營運商合作。我們擁有獨特的能力，可以在整個價值鏈中客製化的整合完井解決方案，使我們的客戶能夠大規模提高油井的經濟效益和生產率。

With respect to activity, we were able to improve efficiencies, although operators began to slow drilling and completion activity through the quarter. Although our average active fleet count was up slightly and ahead of our expectations, we expect the fourth quarter to reflect more pronounced budget exhaustion and seasonality, negatively impacting both fleet count and efficiencies.

就活動而言，儘管營運商在本季度開始放緩鑽井和完井活動，但我們仍能夠提高效率。儘管我們的平均活躍機隊數量略有增加並超出了我們的預期，但我們預計第四季度將反映出更明顯的預算耗盡和季節性，對機隊數量和效率產生負面影響。

Our proppant segment was impacted by prolonged weakness in natural gas-related activity as well as increased competition in West Texas. While volumes increased from the trough in July, overall volumes were down relative to Q2. We anticipate that markets will remain challenged in Q4, impacting both volumes and pricing. We continue to take action to align our operating costs and capital investments with activity levels.

我們的支撐劑部門受到天然氣相關活動長期疲軟以及西德州競爭加劇的影響。雖然成交量較 7 月的低潮增加，但整體成交量較第二季下降。我們預計第四季市場仍將面臨挑戰，影響銷售和價格。我們繼續採取行動，使我們的營運成本和資本投資與活動水準保持一致。

In summary, although performance has come in below our expectations, we're actively repositioning Alpine to produce higher throughput, higher utilization, and lower cost per tonne as market fundamentals improve. Prudent active cost and capital management have been essential in 2024. Our platform leverages in-basin scale and integrated solutions to deliver cost savings and efficiencies for our customers and improved returns for ProFrac.

總之，儘管業績低於我們的預期，但隨著市場基本面的改善，我們正在積極重新定位阿爾派，以實現更高的吞吐量、更高的利用率和更低的每噸成本。2024 年，審慎的主動成本和資本管理至關重要。我們的平台利用盆地規模和整合解決方案，為客戶節省成本、提高效率，並提高 ProFrac 的回報。

We also continue to invest in our equipment, including next-generation as well as existing assets in Q3. Additionally, we successfully deployed power generation solutions to enable on-demand power and to facilitate higher diesel displacement. We believe this will continue to be a growth area for operators as they seek to lower fuel cost.

我們也繼續投資我們的設備，包括第三季的下一代設備和現有資產。此外，我們成功部署了發電解決方案，以實現按需供電並促進更高的柴油排氣量。我們相信，隨著營運商尋求降低燃料成本，這將繼續成為他們的成長領域。

We believe attrition will continue to accelerate given the relative lack of investment and challenges that smaller competitors are facing. With our in-house repair maintenance and manufacturing capabilities, we are uniquely capable of servicing the full asset life cycle internally, which enables us to not only maintain our fleets but also to prepare for what we see as an increase in activity moving into next year.

我們認為，鑑於投資相對缺乏以及規模較小的競爭對手面臨的挑戰，流失將繼續加速。憑藉我們的內部維修保養和製造能力，我們擁有在內部為整個資產生命週期提供服務的獨特能力，這使我們不僅能夠維護我們的機隊，還能為明年的活動增加做好準備。

Our goal is to have ready-to-deploy fleets as the call-on premium equipment unfolds. We pride ourselves on leading-edge service and operational excellence throughout market cycles, partnering with operators to deliver efficiencies while generating cash flow. I want to thank our outstanding team for their hard work, dedication, and commitment to safety. We have the best team in the industry, and their focus on executing our differentiated strategy makes it possible for ProFrac to succeed every day.

我們的目標是隨著優質設備的需求展開，擁有隨時可部署的車隊。我們為在整個市場週期中提供領先的服務和卓越的營運而感到自豪，與營運商合作以提高效率，同時產生現金流。我要感謝我們傑出的團隊的辛勤工作、奉獻精神和對安全的承諾。我們擁有業內最好的團隊，他們專注於執行我們的差異化策略，使 ProFrac 每天都能取得成功。

I'll now hand the call over to Austin to cover our financial results in more detail.

我現在將把電話轉交給奧斯汀，以更詳細地介紹我們的財務表現。

Thanks, Ladd. With respect to our third-quarter results, revenues were slightly down sequentially to $575 million. We generated $135 million of adjusted EBITDA with an adjusted EBITDA margin of 23%. Third-quarter adjusted EBITDA was essentially flat with Q2. Margins were negatively impacted by pricing pressures, albeit offset by operating cost reductions realized through the quarter.

謝謝，拉德。就我們第三季的業績而言，營收比上一季略有下降，至 5.75 億美元。我們產生了 1.35 億美元的調整後 EBITDA，調整後 EBITDA 利潤率為 23%。第三季調整後 EBITDA 與第二季基本持平。利潤率受到定價壓力的負面影響，儘管本季實現的營運成本降低抵消了這一影響。

Free cash flow was $31 million in the third quarter, a decrease from the second quarter, largely driven by a more muted impact from asset sales. We continue to utilize cash to invest in our fleet, particularly next-generation technologies, bespoke sand mine improvements, and debt service obligations.

第三季自由現金流為 3,100 萬美元，較第二季有所下降，主要是由於資產出售的影響較為溫和。我們繼續利用現金投資我們的機隊，特別是下一代技術、客製化沙礦改進和償債義務。

Turning to our segments, stimulation services revenues were up sequentially to $507 million in the third quarter. Average active fleet count increased slightly. However, pricing on equipment and materials partially offset some of those gains, resulting in a slight increase versus Q2. Adjusted EBITDA was $113 million for the third quarter, an improvement of approximately 5% versus Q2.

轉向我們的細分市場，第三季增產服務收入環比成長至 5.07 億美元。平均活躍機隊數量略有增加。然而，設備和材料的定價部分抵消了部分收益，導致較第二季度略有增長。第三季調整後 EBITDA 為 1.13 億美元，比第二季提高約 5%。

Margins remained flat sequentially at 22%, which reflects cost management in response to pricing pressures and lower anticipated demand. This segment was impacted by approximately $6.7 million in shortfall expense related to our supply agreement with Flotek compared to $8.4 million in the prior quarter. Of note, we achieved mid-teens EBITDA per fleet and allocated capital both to maintain and to upgrade our fleet.

利潤率與上一季持平，為 22%，這反映了為應對定價壓力和較低的預期需求而進行的成本管理。該部門受到與 Flotek 供應協議相關的約 670 萬美元缺口費用的影響，而上一季為 840 萬美元。值得注意的是，我們每個機隊的 EBITDA 達到了 15 左右，並分配了資金來維護和升級我們的機隊。

Although our stimulation services results reflect sequential improvement, we anticipate a softer fourth quarter driven by an outsized impact from budget exhaustion and lower activity levels due to operator efficiency gains. The proppant production segment generated $53 million of revenue in the third quarter, representing a 24% sequential decline. The decline in revenue was primarily attributable to lower demand in natural gas regions, coupled with a highly competitive market in West Texas, impacting both volumes and pricing.

儘管我們的增產服務業績反映了環比改善，但我們預計第四季度將疲軟，原因是預算耗盡的巨大影響以及營運商效率提高導致的活動水平下降。支撐劑生產部門第三季營收為 5,300 萬美元，季減 24%。收入下降的主要原因是天然氣地區需求下降，加上西德州市場競爭激烈，影響了銷售和價格。

In response to these market conditions, we continue to execute initiatives to reduce both capital expenditures and operating costs to mitigate the impacts of lower cost absorption. Approximately 71% of volumes were sold to third-party customers during the third quarter versus 75% in Q2.

為了應對這些市場狀況，我們繼續採取措施減少資本支出和營運成本，以減輕成本吸收降低的影響。第三季約 71% 的銷售量售給第三方客戶，而第二季為 75%。

Adjusted EBITDA for the proppant production segment was $17 million for the third quarter, representing a 33% sequential decrease. Adjusted EBITDA margins decreased by approximately 400 basis points quarter over quarter to approximately 33%, largely due to lower cost absorption and a decline in average realized price per tonne.

第三季支撐劑生產部門調整後 EBITDA 為 1,700 萬美元，季減 33%。調整後 EBITDA 利潤率環比下降約 400 個基點，至約 33%，這主要是由於成本吸收降低以及每噸平均價格下降。

Although activity levels increased off the trough in July, demand did not materialize as we had anticipated. We expect further softness in the fourth quarter due to budget exhaustion and seasonality that will continue to weigh on the proppant production segment's results. We anticipate improved commercial opportunities and a recovery in volumes in 2025 as activity begins to recover.

儘管 7 月的活動水準脫離了低谷，但需求並未如我們預期的那樣實現。我們預計，由於預算耗盡和季節性因素，第四季將進一步疲軟，這將繼續影響支撐劑生產部門的表現。我們預計，隨著經濟活動開始復甦，2025 年商業機會將有所改善，銷售將有所恢復。

The manufacturing segment generated third-quarter revenues of $62 million, up approximately 10% from the second quarter. Approximately 80% of segment revenues were generated via inter-company sales. The increase in sales in the third quarter was a result of increased fleet activity, including hours pumped and engine upgrades at stimulation services. Adjusted EBITDA for the manufacturing segment was approximately $100,000 for the quarter, which was flat with Q2.

製造部門第三季營收為 6,200 萬美元，較第二季成長約 10%。約 80% 的部門收入來自公司間銷售。第三季銷售額的成長是由於車隊活動增加的結果，包括刺激服務的泵送時間和引擎升級。本季製造部門調整後 EBITDA 約為 10 萬美元，與第二季持平。

Selling, general, and administrative expenses were $52 million in the third quarter, compared to $54 million in the second quarter. The slight decrease was primarily driven by our continued emphasis on managing costs. Cash capital expenditures totaled $70 million in the third quarter, up approximately $8 million from the prior quarter. In addition to activity-driven maintenance, we invested in next-generation equipment, including but not limited to dual fuel engines and e-fleet in addition to bespoke mine upgrades at Alpine.

第三季的銷售、一般和管理費用為 5,200 萬美元，而第二季為 5,400 萬美元。略有下降主要是因為我們持續強調成本管理。第三季現金資本支出總計 7,000 萬美元，較上一季增加約 800 萬美元。除了活動驅動的維護之外，我們還投資了下一代設備，包括但不限於雙燃料引擎和電子車隊，以及阿爾派的客製化礦山升級。

We continue to prudently manage our capital allocation to more closely align with demand, while efficiently investing to maintain our active and ready-line fleet of equipment in anticipation of improved activity in 2025. We expect to incur total capital expenditures during 2024 that are closer to the lower end of our previously disclosed guidance of between $150 million and $200 million in maintenance capital expenditures and approximately $100 million on growth-related CapEx.

我們繼續審慎管理我們的資本配置，以更緊密地滿足需求，同時有效投資以維持我們活躍且隨時可用的設備艦隊，預計 2025 年活動將有所改善。我們預計 2024 年的總資本支出將接近我們先前揭露的指導的下限，即 1.5 億至 2 億美元的維護資本支出和約 1 億美元的成長相關資本支出。

Total cash and cash equivalents as of September 30 were $26 million, including $5 million attributable to Flotek. Total liquidity at quarter end was approximately $109 million, including $89 million available under the ABL. Borrowings under the ABL credit facility ended the quarter at $163 million, up approximately $13 million from the prior quarter.

截至 9 月 30 日，現金和現金等價物總額為 2,600 萬美元，其中 Flotek 歸屬於 500 萬美元。季度末的總流動性約為 1.09 億美元，其中 ABL 下可用的 8,900 萬美元。本季末，ABL 信貸安排下的借款為 1.63 億美元，比上一季增加約 1,300 萬美元。

At the end of the third quarter, we had approximately $1.2 billion of debt outstanding. The majority of our debt does not mature until January 2029. We intend to utilize free cash flow in future periods to deleverage. As of September 30, we have repaid approximately $110 million of long-term debt in 2024. We look forward to continuing to execute on our strategic priorities, partnering with customers to provide leading-edge integrated solutions, increasing efficiencies across the organization, and generating free cash flow through the cycle.

截至第三季末，我們的未償債務約為 12 億美元。我們的大部分債務要到 2029 年 1 月才會到期。我們打算利用未來時期的自由現金流來去槓桿化。截至 9 月 30 日，我們已在 2024 年償還了約 1.1 億美元的長期債務。我們期待繼續執行我們的策略重點，與客戶合作提供領先的整合解決方案，提高整個組織的效率，並在整個週期中產生自由現金流。

That concludes our formal remarks. Operator, please open the line for questions.

我們的正式發言到此結束。接線員，請開通提問線。

(Operator Instructions) Saurabh Pant, Bank of America.

（操作員指令）Saurabh Pant，美國銀行。

Hi. Good morning, Matt, Ladd, and Austin.

你好。早上好，馬特、拉德和奧斯汀。

Good morning.

早安.

Good morning.

早安.

Matt and Ladd, maybe I'll start with a question on maybe if you can share a little more color on your 2025 outlook because it was interesting. You were calling for a recovery. And especially on the oil side of things, I think you noted both West Texas and South Texas in your prepared remarks. Can you share a little more color, Matt, on this? What exactly are you seeing? What are your customers telling, and what brings that confidence, especially on the oil side of things?

Matt 和 Ladd，也許我會先問一個問題，也許你們可以分享一下你們對 2025 年展望的更多看法，因為這很有趣。你呼籲康復。特別是在石油方面，我認為您在準備好的演講中提到了西德克薩斯州和南德克薩斯州。馬特，你能就此分享更多的色彩嗎？你到底看到了什麼？您的客戶告訴我們什麼，是什麼帶來了這種信心，特別是在石油方面？

Definitely. We look at South Texas as well as West Texas. We see Q1 picking up from Q4 and Q3 levels and definitely a good start to the year. But on a year-over-year basis, it will be flat to slightly down.

確實。我們關注德克薩斯州南部和德克薩斯州西部。我們看到第一季較第四季和第三季的水平有所回升，這絕對是今年的好開始。但與去年同期相比，它將持平或略有下降。

Okay, I got it. So part of it, it sounds like it's seasonal, right? The seasonal weakness late in the third quarter, fourth quarter reverses early next year, at least part of it is that?

好的，我明白了。所以其中一部分，聽起來像是季節性的，對吧？季節性疲軟在第三季末、明年初第四季逆轉，至少部分是這樣的？

That's right.

這是正確的。

Okay. Perfect. And then one more on the interplay between pricing and cost management right now, because you've clearly done a good job in managing your cost, rightsizing your cost structure, and it sounded like you continue to do that, both on the stimulation and I think particularly on the proppant side.

好的。完美的。然後再談一談現在定價和成本管理之間的相互作用，因為你在管理成本、調整成本結構方面顯然做得很好，而且聽起來你會繼續這樣做，無論是在刺激方面還是在我方面。

Can you talk to that dynamic, Matt, where pricing is going? It sounds like pricing continues to go down, at least directionally. But you have -- it sounds like more levers on the cost side. If you can talk about pricing and cost, what's in your control at this point?

馬特，你能談談定價的動態嗎？聽起來價格繼續下降，至少是定向下降。但聽起來似乎在成本方面有更多的槓桿。如果您可以談論定價和成本，那麼此時您可以控制哪些內容？

Certainly. Our vertical integration allows us much more control over our fixed costs, where utilization brings our cost structure down tremendously as we dilute it just through operating leverage. This is an advantage that we have in this market, in this industry, and certainly comes in big help in environments like this.

當然。我們的垂直整​​合使我們能夠更好地控制我們的固定成本，其中利用率大大降低了我們的成本結構，因為我們僅透過營運槓桿來稀釋它。這是我們在這個市場、這個產業所擁有的優勢，在這樣的環境中肯定會帶來很大的幫助。

Pricing, it's very competitive out there. But when we go in and we look at what we can do from operating leverage and the overall footprint that we have, we certainly are seeing a benefit from it.

價格方面，非常有競爭力。但是，當我們深入研究我們可以從營運槓桿和我們擁有的整體足跡中做些什麼時，我們肯定會從中看到好處。

Yes. And I would add, Saurabh, just the ability to control what we can control when we think about controllable costs and when we think about operating leverage and leveraging efficiencies throughout the value chain. I echo what Matt said. We're uniquely capable of doing that because of our integrated model and because of the positions that we have throughout the value chain.

是的。我想補充一點，Saurabh，當我們考慮可控成本以及當我們考慮整個價值鏈的營運槓桿和槓桿效率時，我們能夠控制我們可以控制的東西。我同意馬特所說的。由於我們的整合模式以及我們在整個價值鏈中的地位，我們擁有獨特的能力來做到這一點。

So that's what we're focused on in a market environment like we have today. And with what we see in Q4 is let's control what we can control, be as efficient as possible. Not only does that help us in this market, but it also helps us on the operating leverage side as activity starts to come back next year.

這就是我們在當今市場環境中所關注的重點。我們在第四季看到的是，讓我們控制我們能控制的事情，盡可能有效率。這不僅有助於我們在這個市場上的發展，而且隨著明年活動開始恢復，它也有助於我們的營運槓桿方面。

Right, right. No, that all makes sense. And Austin, a quick one for you, if you don't mind. On the CapEx side of things for 2025, I know you're not giving a firm guidance right now, but how should we think about CapEx for 2025 between maintenance and some of the other upgrade and growth efforts that you might have for next year?

對，對。不，這一切都有道理。奧斯汀，如果你不介意的話，可以給你一個快速的。在 2025 年的資本支出方面，我知道您現在沒有給出明確的指導，但我們應該如何考慮 2025 年維護和明年可能進行的其他一些升級和成長工作之間的資本支出？

Yes. I think it's really too early to tell right now, Saurabh. It's still early in the RFP season, and we don't really even have any preliminary guidance to provide on the CapEx front. We'll have certainly a lot more color and detail on our next call.

是的。我認為現在說還為時過早，Saurabh。現在還處於 RFP 季節的早期，我們甚至沒有在資本支出方面提供任何初步指導。我們下次通話時肯定會提供更多顏色和細節。

Okay. No, that's reasonable, Austin. Okay. Matt, Ladd, Austin, thank you. I'll turn it back.

好的。不，這是合理的，奧斯汀。好的。馬特、拉德、奧斯汀，謝謝你們。我會把它轉回來。

Stephen Gengaro, Stifel.

史蒂芬·根加羅，斯蒂菲爾。

Thanks. Good morning, everybody.

謝謝。大家早安。

Good morning.

早安.

Thanks. A couple for me. Can you talk about -- I mean, you talked about being strategic in your allocation of assets. And I think you mentioned a mid-teens EBITDA for the frac business in the quarter. That seems to indicate 28 or 29 fleets working in the third quarter. Just curious if you could give us a sense for that, and how are you currently balancing pricing versus fleet deployments?

謝謝。給我一對。你能談談——我的意思是，你談到了資產配置的策略性。我認為您提到了本季度壓裂業務的 EBITDA 達到了 15%左右。這似乎表明第三季有 28 或 29 支車隊在運作。只是好奇您能否讓我們對此有所了解，以及您目前如何平衡定價與車隊部署？

Yes. We typically don't lean in and disclose exactly what our fleet count is, but that's not too materially off. But if we look at fleet deployments, look, whenever you've got something that's on the fence, you definitely want to see some -- a little bit better pricing to reactivate it. And so our focus is to keep what we have working, keeping customers close, and benefit from that operating leverage.

是的。我們通常不會主動透露我們的機隊數量到底是多少，但這並沒有太大的偏差。但如果我們看看機隊部署，你會發現，每當你有一些懸而未決的東西時，你肯定希望看到一些東西——更好的定價來重新激活它。因此，我們的重點是保持現有業務的運轉，與客戶保持密切聯繫，並從營運槓桿中受益。

However, as we see the market pick up, we think that supply and demand is a little bit tighter than people realize just because of the attrition. When you have a market that drops from around 280, 290 fleets a little over a year ago to around the 200 to 210 range that it is now, everybody looks like heroes because you've consolidated the best equipment in the business, and that stuff is still working.

然而，當我們看到市場回升時，我們認為由於人員流失，供需比人們意識到的要緊一點。當你的市場從一年多前的約 280、290 輛車隊下降到現在的約 200 至 210 輛範圍時，每個人看起來都是英雄，因為你整合了業內最好的設備，而且這些東西仍在工作。

It's when you start adding fleets back that you start running into equipment issues because you've already consolidated the best assets in your business. This is also why we've gone in and taken a focused approach to our asset management and reorganized that part of the business to make sure that our next plus-one fleet is the best fleet in the business because we want to make sure that the cyclical nature of this industry that we typically see from our peers isn't a characteristic that ProFrac has going forward.

當您開始重新新增車隊時，您就會開始遇到設備問題，因為您已經整合了業務中的最佳資產。這也是為什麼我們採取集中的方法進行資產管理，並重組這部分業務，以確保我們的下一個加一機隊是業內最好的機隊，因為我們希望確保我們通常從同行那裡看到的這個行業的周期性特徵並不是ProFrac 未來的特徵。

Okay. Thank you. Your peers have all kind of suggested kind of a 10%-ish reduction in the fourth quarter. I think, last year, you guys were -- it was a little softer for you. Should we think about that kind of a top-line drop with sort of 30% decrementals as a starting point?

好的。謝謝。你們的同業都建議第四季減少 10% 左右。我想，去年，你們──對你們來說有點軟弱。我們是否應該考慮以 30% 的遞減為起點的營收下降？

I think -- look, as you think about Q4 versus Q3, I think we'll see relatively consistent seasonality with respect to both SEM services and from the proppant business. I think on the decremental side, I'd say that's from a preliminary perspective, kind of in the ballpark. I mean, as you know, we don't give formal guidance, but I think you're in the realm of possible outcomes there.

我認為，當你考慮第四季與第三季時，我認為我們將看到 SEM 服務和支撐劑業務的季節性相對一致。我認為在遞減方面，我認為這是從初步角度來看的，大概是這樣。我的意思是，正如您所知，我們沒有提供正式的指導，但我認為您處於可能的結果範圍內。

Thank you. That's helpful. And two other quick ones. One, on the proppant side, do you think the activation and the impact of Dune Express will have any material impact on your business next year?

謝謝。這很有幫助。還有另外兩個快的。第一，在支撐劑方面，您認為 Dune Express 的活化和影響會對您明年的業務產生任何實質影響嗎？

No, not at all. No, we think that this is a very competitive environment, and we probably have the most surprise or upside on that side of the business and look forward to increasing scale on that as well as benefiting from the operating leverage. The portion of -- the same businesses, the way they operate, has a much higher fixed cost nature to them with very little variable expense.

不，一點也不。不，我們認為這是一個競爭非常激烈的環境，我們可能在這方面的業務上擁有最大的驚喜或優勢，並期待擴大規模並從營運槓桿中受益。相同的業務的一部分，他們的運作方式，對他們來說具有更高的固定成本性質，而可變費用卻很少。

And so we're looking forward to growing our customer base and increasing our volumes. And it doesn't take much to make a significant impact to the consolidated results. And so we're pretty excited about what we're doing with Alpine and the opportunities that are provided there.

因此，我們期待擴大我們的客戶群並增加我們的銷售量。不需要太多就能對綜合結果產生重大影響。因此，我們對與 Alpine 所做的事情以及在那裡提供的機會感到非常興奮。

All right. Thanks for the color. And if I could just slide in one more, you mentioned the power generation business, and that's obviously a hugely hot topic these days. Where -- can you give any more color kind of on where exactly you play there? Is it just going to be in the oil patch? Are you looking at other opportunities? And what are the assets you're using to get in that business aggressively?

好的。謝謝你的顏色。如果我可以再插一句的話，您提到了發電業務，這顯然是當今的一個非常熱門的話題。在哪裡——你能給出更多關於你在那裡打球的地方的資訊嗎？它只是在油田裡嗎？您是否正在尋找其他機會？您正在使用哪些資產積極進入該業務？

When we look at our e-fleet business, we've got a built-in customer and believe we can derisk that business in ordinary course. But it obviously offers some opportunities to get into microgrid solutions for operators, for customers, as well as potentially pursuing the wider market outside of oil and gas. But right now, we just focus on derisking that business and satisfying our own internal needs and look forward to opportunities way outside of that as they are presented.

當我們審視我們的電子車隊業務時，我們有一個內建客戶，並相信我們可以在正常情況下消除該業務的風險。但它顯然為營運商和客戶提供了一些進入微電網解決方案的機會，並有可能尋求石油和天然氣以外更廣泛的市場。但現在，我們只專注於降低業務風險並滿足我們自己的內部需求，並期待除此之外的機會出現。

Great. Thanks for the color, gentlemen.

偉大的。謝謝先生們的顏色。

Thank you.

謝謝。

Thanks.

謝謝。

(Operator Instructions) Sean Mitchell, Daniel Energy Partners.

（操作說明）Sean Mitchell，Daniel Energy Partners。

Hey, guys. Thanks for taking the question. It would seem as if Haynesville operators will resume completions and start working through some of their DUC sometime next year. How much of an uplift in activity would you expect to see in the Haynesville? And as a follow up, maybe given your large sand operation in that basin, tell us how we should think about localized volumes and localized sand prices this time next year versus today? What do you -- what are your thoughts around that?

嘿，夥計們。感謝您提出問題。海恩斯維爾營運商似乎將在明年某個時候恢復完工並開始透過部分 DUC 進行工作。您預計海恩斯維爾的活動會增加多少？作為後續行動，也許考慮到您在該盆地的大型沙子作業，請告訴我們明年這個時候與今天相比我們應該如何考慮局部數量和局部沙子價格？你對此有何想法？

Yes, it's difficult to say. I mean, I think so much plays on weather as well as construction schedules and timelines for LNG offtake. Certainly would love to see gas rebound and see healthier customers on that side that are a little bit more comfortable with increased activities. But we've settled in. We're defending our footprint in these markets and think that commitment will pay off in the long term and certainly believe that this is the catalyst that I think will bring the OFS market back.

是的，這很難說。我的意思是，我認為天氣以及液化天然氣排放的施工進度和時間表起著很大的作用。當然希望看到氣體反彈並看到那邊的客戶更健康，他們對增加活動感到更舒適。但我們已經安頓下來了。我們正在捍衛我們在這些市場的足跡，並認為這種承諾從長遠來看會得到回報，當然相信這是我認為將使 OFS 市場回歸的催化劑。

But look, we don't want to jump the gun and get too early, build in too many expectations for what the gas market is going to do. But I think being patient and working with our customers, focusing on creating value for them -- and we see a recovery in gas. We'll be really, really happy to see that. As for how many DUCs, it's hard to say. I'd hope that they would increase activity. But right now, we're settled in for as long as it takes to just hunker down and stick with these markets.

但是，我們不想操之過急，對天然氣市場的走勢抱持太多期望。但我認為只要保持耐心並與客戶合作，專注於為他們創造價值，我們就會看到天然氣的復甦。我們會非常非常高興看到這一點。至於有多少個DUC，就不好說了。我希望他們能增加活動。但現在，我們已經適應了只要蹲下並堅持這些市場就可以了。

Yes. I think the important thing, Sean, is that ProFrac is committed to being a balanced portfolio between liquids and natural gas. And we've made real investments there. And not only that, I mean, the company has a strong history and competitive advantages operating on HPHT wells going back for many years. And we're highly efficient in those markets, we're committed to those markets, and we're going to be there when the recovery comes.

是的。Sean，我認為重要的是 ProFrac 致力於成為液體和天然氣之間的平衡組合。我們在那裡進行了真正的投資。不僅如此，我的意思是，該公司在高溫高壓井方面擁有悠久的歷史和競爭優勢，可以追溯到很多年前。我們在這些市場上效率很高，我們致力於這些市場，當復甦到來時我們將在那裡。

Got it. Thanks, guys. Happy election day.

知道了。謝謝，夥計們。選舉日快樂。

Thank you. This concludes the question-and-answer session. I would now like to hand the conference over to Matt Wilks for closing comments.

謝謝。問答環節到此結束。現在我想將會議交給馬特威爾克斯（Matt Wilks）進行總結評論。

We appreciate everybody joining our call today and look forward to delivering another good quarter and look forward to 2025. Thanks for joining this call, and get out and vote.

我們感謝今天加入我們電話會議的每個人，並期待再創一個美好的季度，並展望 2025 年。感謝您加入本次電話會議，並出門投票。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。