ProFrac Holding Corp (ACDC) 2025 Q2 法說會逐字稿

Greetings, and welcome to the ProFrac 2Q '25 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael Messina, Director of Finance. Thank you, sir. You may begin.

您好，歡迎參加 ProFrac 2Q '25 收益電話會議。（操作員指令）。提醒一下，本次會議正在錄製中。現在我很高興介紹您的主持人，財務總監 Michael Messina。謝謝您，先生。你可以開始了。

Thank you, operator. Good morning, everyone. Thank you for joining us for ProFrac Holding Corp.'s conference call and webcast to review our results for the second quarter ended June 30, 2025. With me today are Matt Wilks, Executive Chairman; Ladd Wilks, Chief Executive Officer; and Austin Harbour, Chief Financial Officer.

謝謝您，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，以回顧我們截至 2025 年 6 月 30 日的第二季業績。今天與我一起的有執行主席馬特·威爾克斯 (Matt Wilks)、首席執行官拉德·威爾克斯 (Ladd Wilks) 和首席財務官奧斯汀·哈伯 (Austin Harbour)。

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

在我發言之後，管理層將對本季度的營運和財務亮點提供高層評論，然後再開始回答您的問題。今日電話會議的重播將透過網路直播的方式在公司網站 pfholdingscorp.com 上提供。更多重播資訊請參閱公司財報。

Please note that information reported on this call speaks only as of today, August 7, 2025. And therefore, you are advised that any time-sensitive information may no longer be accurate at the time of any subsequent 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（2025 年 8 月 7 日）有效。因此，請注意，任何時間敏感資訊在後續重播或閱讀文字記錄時可能不再準確。此外，本次電話會議的評論可能包含美國聯邦證券法所定義的前瞻性陳述，包括管理階層對未來財務和業務表現的預期。

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.

這些前瞻性陳述反映了 ProFrac 管理層的當前觀點，並不能保證未來的表現。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陳述中表達的結果、績效或成就有重大差異。

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.

鼓勵聽眾或讀者閱讀 ProFrac 的 10-K 表格以及向美國證券交易委員會提交的其他文件，這些文件可在 sec.gov 或公司投資者關係網站的「SEC 文件」標籤下找到，以了解這些風險、不確定性和意外事件。

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 at sec.gov and on the company's website. And now I would like to turn the call over to ProFrac's Executive Chairman, Mr. Matt Wilks.

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字，以排除 Flotek 的貢獻。季度收益新聞稿中包含了更多詳細資訊以及與最直接可比較的合併和 GAAP 財務指標的對賬，您可以在 sec.gov 和公司網站上找到。現在我想把電話轉給 ProFrac 的執行主席 Matt Wilks 先生。

Thank you, Michael, and good morning to all. I'll begin with brief remarks, then turn it over to Ladd to elaborate on segment performance and key trends; and Austin will run through our second quarter financials. Q2 performance unfolded largely as anticipated based on the outlook we provided during our May earnings call.

謝謝你，邁克爾，大家早安。我將首先進行簡短的發言，然後交給拉德詳細說明各部門的表現和主要趨勢；奧斯汀將介紹我們的第二季度財務狀況。根據我們在 5 月財報電話會議上提供的展望，第二季的業績基本上符合預期。

As we discussed, the market dynamics that emerged early in the quarter, particularly the sharp decline in commodity prices in early April led operators across our customer base to reassess their near-term completion requirements with several adjusting their activity levels to varying degrees.

正如我們所討論的，本季初出現的市場動態，特別是 4 月初大宗商品價格的急劇下跌，導致我們客戶群中的運營商重新評估其近期完成要求，其中一些運營商在不同程度上調整了其活動水平。

That said, we are encouraged to see the market -- that market conditions have modestly improved compared to our Q2 exit level. Commodity prices have firmed since early Q2, some crews have gone back to work, and we are having healthy dialogue with our customers around 2026 planning. This aligns with our previous observation that operators who reduced activity maintain the flexibility to quickly resume operations when conditions improve.

話雖如此，我們很高興地看到市場狀況與我們第二季的退出水平相比有所改善。自第二季初以來，大宗商品價格已經走強，一些工作人員已經恢復工作，我們正在與客戶就 2026 年規劃進行健康對話。這與我們先前的觀察一致，即減少活動的業者在情況改善時仍能保持快速恢復營運的靈活性。

Importantly, we continue to believe that today's hydraulic fracturing market dynamics create a compelling setup for the future with industry participants exercising capital discipline in response to current economic conditions and uncertainty. We see the potential for meaningful tightening in supply/demand should drilling and completion activity accelerate in response to improved commodity fundamentals in 2026.

重要的是，我們仍然相信，當今的水力壓裂市場動態為未來創造了一個令人信服的環境，產業參與者將根據當前的經濟狀況和不確定性嚴格遵守資本紀律。我們認為，如果 2026 年大宗商品基本面改善，鑽井和完井活動加速，供需可能會大幅收緊。

Turning to our core competitive advantages, the controllable factors that truly set us apart in the marketplace. Our vertically integrated manufacturing capabilities combined with our sophisticated asset management platform represent fundamental differentiators that provide both strategic agility and tangible financial value.

談到我們的核心競爭優勢，這些可控因素真正讓我們在市場上脫穎而出。我們的垂直整合製造能力與我們先進的資產管理平台相結合，代表了提供策略敏捷性和有形財務價值的根本差異化因素。

Our asset management program is generating exceptional results. The strategic deployment of our 6 fleets under this program delivered our most efficient operational quarter on record in Q1 in terms of fleet efficiency and total maintenance costs. This integrated approach proved particularly valuable during recent market volatility with our ability to dynamically redeploy assets and adjust maintenance schedules, providing crucial operational flexibility.

我們的資產管理計劃正在產生卓越的成果。根據該計劃，我們對 6 支車隊進行了戰略部署，使得我們在第一季實現了有史以來最高效的運營，無論是在車隊效率還是總維護成本方面。這種綜合方法在最近的市場波動中被證明特別有價值，因為我們能夠動態地重新部署資產和調整維護計劃，從而提供關鍵的營運靈活性。

Despite the fact that demands on our equipment have significantly grown over time, our asset reliability and pumping performance are the most efficient they have ever been, enabling us to extend uptime on our equipment and reduce overall failures. We believe this is directly attributable to our best-in-class personnel in addition to our asset management and frac automation, both of which were internally conceptualized, designed, developed and successfully implemented.

儘管對我們設備的需求隨著時間的推移而顯著增長，但我們的資產可靠性和泵送性能卻達到了前所未有的高效，這使我們能夠延長設備的正常運行時間並減少整體故障。我們相信，這直接歸功於我們一流的人才以及我們的資產管理和壓裂自動化，這兩項都是內部概念化、設計、開發和成功實施的。

Our in-house manufacturing platform delivers substantial cost advantages, enabling us to build new fleets, upgrade legacy equipment to next-generation specifications and standardize previously acquired assets, all at costs below third-party alternatives. This internal capability spans a significant portion of our equipment portfolio, providing control over standards for quality, uniformity and deployment time lines.

我們的內部製造平台具有顯著的成本優勢，使我們能夠建立新的車隊、將傳統設備升級到下一代規格以及標準化先前收購的資產，而所有成本均低於第三方替代品。這種內部能力涵蓋了我們設備組合的很大一部分，可以控製品質、一致性和部署時間線的標準。

However, our competitive moat extends well beyond repair and maintenance and manufacturing. Our technology leadership continues to drive measurable operational improvements and sustainable competitive advantages. Our ProPilot platform exemplifies this commitment, delivering transformational improvements in automated fracturing operations.

然而，我們的競爭優勢遠遠超出了維修、保養和製造的範圍。我們的技術領先地位繼續推動可衡量的營運改善和可持續的競爭優勢。我們的 ProPilot 平台體現了這項承諾，為自動化壓裂作業帶來了變革性的改進。

In the early days of ProPilot 1.0, the platform immediately provided significant operational benefits in frac automation, namely by enabling automated pump control and frac scheduling. With automated pump control functionality, we were able to quickly reduce the manual inputs required to complete the well, enhancing decision-making and allowing for faster stage completions.

ProPilot 1.0 的早期階段，該平台立即在壓裂自動化方面提供了顯著的營運優勢，即實現了自動化泵浦控制和壓裂調度。借助自動化泵浦控制功能，我們能夠快速減少完成井所需的手動輸入，從而增強決策能力並實現更快的階段完井。

The frac scheduler functionality was also an early game changer for the platform, integrating completion designs into the automation software to ensure stages are consistently completed to the design. But we didn't stop there and are excited about the further evolution of the ProPilot platform to its next phase.

壓裂調度程序功能也是該平台的早期改變者，它將完井設計整合到自動化軟體中，以確保各個階段始終按照設計完成。但我們並沒有就此止步，並對 ProPilot 平台的下一階段的進一步發展感到興奮。

ProPilot 2.0. With 2.0, a number of new functionalities have improved the platform to enhance completion automation frac operations, including horsepower optimization, dual fuel optimization, interlocking load balancing and one-click fully automated stage completions. In summary, the expanded functionality of ProPilot 2.0 drives productivity higher by automatically maintaining pumps at peak performance and efficiency while also minimizing wear and tear on equipment.

ProPilot 2.0。2.0 版本中，許多新功能改進了平台，增強了完井自動化壓裂作業，包括馬力優化、雙燃料優化、聯鎖負載平衡和一鍵全自動分段完井。總而言之，ProPilot 2.0 的擴展功能可自動維持幫浦的最佳性能和效率，同時最大限度地減少設備磨損，從而提高生產力。

It can automatically optimize fuel economy, that's total fuel and gas substitution rates. 2.0's automated load balancing system monitors pump health in real time, detects anomalies, delivers and executes proactive recommendations to maintain steady performance and prevents rate fluctuations. Combined, these functionalities enable fully automated frac operations, eliminating the guesswork associated with diagnosing equipment and well feedback issues.

它可以自動優化燃油經濟性，即總燃料和天然氣替代率。 2.0 的自動負載平衡系統即時監控幫浦的健康狀況，檢測異常，提供並執行主動建議以保持穩定的性能並防止速率波動。這些功能結合在一起，可以實現完全自動化的壓裂作業，消除了與診斷設備和井回饋問題相關的猜測。

The benefits of ProPilot 2.0 are tangible, measurable and benefit both ProFrac and our customers. New and exciting expansions of the platform and ProPilot utility are also underway, which we plan to roll out in the near future. Simply put, intelligent automation delivers both speed and operational simplicity while driving superior well results, enhanced cost control, increased uptime and greater reliability.

ProPilot 2.0 的優勢是切實的、可衡量的，並且使 ProFrac 和我們的客戶都受益。該平台和 ProPilot 實用程式的全新且令人興奮的擴充功能也正在進行中，我們計劃在不久的將來推出。簡而言之，智慧自動化既能提供速度和操作簡便性，又能帶來卓越的井效、增強的成本控制、增加的正常運作時間和更高的可靠性。

Our innovation pipeline runs deep. Our iO-TEQ platform transforms operational intelligence by consolidating multisource data streams for real-time edge decisions while enabling cloud-based analytics and machine learning capabilities. This integration optimizes data utilization, streamlines workflows and drives cost reductions across our entire operation.

我們的創新管道十分寬廣。我們的 iO-TEQ 平台透過整合多源資料流進行即時邊緣決策，同時實現基於雲端的分析和機器學習功能，從而轉變營運智慧。這種整合優化了數據利用率，簡化了工作流程，並降低了整個營運的成本。

Further, through Flotek, the JP3 technology continues its expansion with Verax analyzers attracting strong interest across market segments from independent producers to multinational corporations with global refinery operations. We believe our ability to develop, test and deploy advanced technologies in-house at a fraction of third-party costs and on accelerated time lines provides us with a decisive competitive edge.

此外，透過 Flotek，JP3 技術繼續擴展，Verax 分析儀吸引了從獨立生產商到擁有全球煉油業務的跨國公司等各個細分市場的強烈興趣。我們相信，我們能夠以比第三方更低的成本和更快的時間在內部開發、測試和部署先進技術，這為我們帶來了決定性的競爭優勢。

Turning to proppant production. We see opportunities for growth and improved performance across our key operating regions. We maintain a strong market position in the Haynesville region, where we offer dry and damp sand and anticipate that increased natural gas activity will drive improved performance.

轉向支撐劑生產。我們在主要營運區域看到了成長和業績提升的機會。我們在海恩斯維爾地區保持強大的市場地位，我們提供乾砂和濕砂，並預計天然氣活動的增加將推動業績的提高。

In addition, our ongoing throughput improvements in South Texas position us well to meet potential demand growth. Moving to our strategic initiatives and other differentiating value creators. During the second quarter, we entered into an innovative partnership with Flotek Industries. This transaction represents far more than a simple asset sale.

此外，我們在南德克薩斯州的持續吞吐量改進使我們能夠很好地滿足潛在的需求成長。轉向我們的策略舉措和其他差異化價值創造者。第二季度，我們與 Flotek Industries 建立了創新合作夥伴關係。這項交易遠不止是簡單的資產出售。

By transferring what was essentially a cost center within ProFrac to Flotek, where these assets can be leveraged across a much broader market, we believe we have unlocked significant value that the market simply didn't recognize within our structure. These assets, which include patented gas monitoring and conditioning technology form the foundation of Flotek's new PWRtek division.

透過將 ProFrac 內部的成本中心轉移到 Flotek，這些資產可以在更廣泛的市場上得到利用，我們相信我們已經釋放了市場在我們的結構中根本無法認識到的巨大價值。這些資產包括專利的氣體監測和調節技術，構成了 Flotek 新成立的 PWRtek 部門的基礎。

We received immediate financial benefits, including over 60% of the pro forma fully diluted equity ownership of Flotek Industries. This gives us substantial exposure to a company that is levered to what we believe is a $3 billion to $6 billion global addressable market for gas quality management, spanning oil and gas, data centers, refineries and other natural gas applications.

我們獲得了直接的財務利益，包括 Flotek Industries 60% 以上的形式完全稀釋股權。這讓我們對這家公司有了很大的了解，我們認為該公司可以利用全球 30 億至 60 億美元的天然氣品質管理潛在市場，涵蓋石油和天然氣、資料中心、煉油廠和其他天然氣應用。

This partnership transforms assets that were previously limited to our internal operations into a scalable third-party business model that can serve the broader energy infrastructure market. It's a perfect example of how we're thinking creatively about capital allocation and value creation for our shareholders.

此次合作將先前僅限於我們內部營運的資產轉變為可擴展的第三方業務模式，可以服務更廣泛的能源基礎設施市場。這是我們如何創造性地思考資本配置和為股東創造價值的完美例子。

Finally, I want to touch on our power generation strategy, which positions us uniquely in the rapidly expanding data center and power infrastructure market. Unlike traditional equipment rental models, our approach focuses on bespoke holistic powered-land opportunities that leverage our core competencies in project execution and infrastructure development.

最後，我想談談我們的發電策略，該策略使我們在快速擴張的資料中心和電力基礎設施市場中佔據獨特的地位。與傳統的設備租賃模式不同，我們的方法著重於客製化的整體動力土地機會，利用我們在專案執行和基礎設施開發方面的核心競爭力。

Our competitive advantage centers on our ability to accelerate access to electrons at scale. Ladd will provide more color on this as well as the other themes I just touched on. In Q2, we generated revenues of $502 million, adjusted EBITDA of $79 million and free cash flow of $54 million. This compares with revenues of $600 million and adjusted EBITDA of $130 million and free cash flow of negative $14 million in Q1.

我們的競爭優勢在於我們能夠大規模加速取得電子的能力。拉德將對此以及我剛剛提到的其他主題提供更多說明。第二季度，我們的營收為 5.02 億美元，調整後 EBITDA 為 7,900 萬美元，自由現金流為 5,400 萬美元。相較之下，第一季的營收為 6 億美元，調整後 EBITDA 為 1.3 億美元，自由現金流為負 1,400 萬美元。

While these results are a product of the market headwinds we experienced, they also reflect our ability to maintain operational excellence and generate meaningful free cash flow despite challenging conditions. In summary, Q2 results, including generating $54 million of free cash flow largely aligned with our May outlook as activity was negatively impacted by both macroeconomic and commodity price volatility.

雖然這些結果是我們所經歷的市場逆風的產物，但它們也反映了我們在充滿挑戰的條件下保持卓越運作和產生有意義的自由現金流的能力。綜上所述，第二季的業績，包括產生的 5,400 萬美元的自由現金流，與我們 5 月的展望基本一致，因為活動受到宏觀經濟和大宗商品價格波動的負面影響。

Recent signs are encouraging as crews have returned to work and customer dialogue around future planning for 2026 intensifies. We delivered strong operational performance through strategic asset allocation with our vertically integrated manufacturing capabilities and sophisticated asset management platform providing crucial flexibility during periods of market volatility.

最近的跡象令人鼓舞，因為工作人員已經返回工作崗位，有關 2026 年未來規劃的客戶對話也在加強。我們透過策略性資產配置實現了強勁的營運業績，憑藉垂直整合的製造能力和先進的資產管理平台，我們在市場波動期間提供了至關重要的靈活性。

Our technology leadership continues to deliver measurable competitive advantages with our ProPilot platform driving breakthrough advances in frac automation. Our innovative partnership with Flotek unlocked immediate value while positioning us with significant ownership in a company levered to a multibillion-dollar global addressable market for gas quality management and asset integrity solutions.

我們的技術領先地位持續透過我們的 ProPilot 平台提供可衡量的競爭優勢，推動壓裂自動化領域的突破性進展。我們與 Flotek 的創新合作釋放了直接價值，同時使我們在一家面向數十億美元的全球天然氣品質管理和資產完整性解決方案市場的公司中佔據了重要地位。

We continue to see opportunities in proppant production, in particular, in the Haynesville region, where we expect increased natural gas activity to drive improved performance. Further, strategic investments position us well for the South Texas demand. And finally, we maintain our disciplined approach to capital allocation while positioning ourselves for potential tightening in the market in early 2026.

我們繼續看到支撐劑生產方面的機會，特別是在海恩斯維爾地區，我們預計該地區天然氣活動的增加將推動績效的提高。此外，戰略投資使我們能很好地滿足南德克薩斯州的需求。最後，我們將繼續保持嚴謹的資本配置方式，同時為 2026 年初市場可能出現的緊縮做好準備。

Thanks, Matt, and good morning, everyone. I'll provide a more granular detail on several themes Matt touched on, starting with our operational performance during the quarter. In Stimulation Services, we experienced the market dynamics Matt described with increased white space on the calendar following the early quarter oil price decline and activity levels decreasing in the Q2 end.

謝謝，馬特，大家早安。我將更詳細地介紹馬特提到的幾個主題，首先介紹我們本季的營運表現。在增產服務方面，我們經歷了馬特所描述的市場動態，即隨著本季初油價下跌以及第二季末活動水準下降，日曆上的空白區域增加。

We responded through our flexible fleet deployment capabilities and implemented cost reduction measures beginning in mid-May, though the full benefit didn't flow through until later in the period due to timing lags. The cost reduction process was impacted by some operational inefficiencies, including extended delays between pads that required us to maintain labor, equipment rentals and other semi-variable costs, limiting our ability to achieve immediate savings.

我們透過靈活的車隊部署能力做出回應，並從 5 月中旬開始實施降低成本的措施，但由於時間滯後，全部效益直到後期才顯現出來。成本削減過程受到一些營運效率低下的影響，包括發射台之間長時間的延誤，這需要我們維持勞動力、設備租賃和其他半變動成本，從而限制了我們實現即時節約的能力。

Consistent with Matt's observations regarding the current market, our active fleet count stabilized near the end of the second quarter and into early Q3, and we've seen modest improvement in activity since then. We've been purposely selective in deploying the fleets in this environment with an emphasis on taking advantage of our vertical integrated solutions.

與馬特對當前市場的觀察一致，我們的活躍船隊數量在第二季末和第三季初趨於穩定，自那時起，我們的活動有所改善。我們特意選擇在這種環境中部署車隊，重點是利用我們的垂直整合解決方案。

Further, we're being prudent with spending and capital allocation amidst the current environment while retaining flexibility to respond to an increased call on activity. As Matt mentioned, activity can rebound just as rapidly as it slowed. We are well positioned to respond and encouraged by conversations we're having regarding 2026.

此外，在當前環境下，我們對支出和資本配置持謹慎態度，同時保留靈活性以應對日益增長的活動需求。正如馬特所提到的，活動反彈的速度可以和放緩的速度一樣快。我們已做好充分準備來應對，有關 2026 年的對話也為我們帶來了鼓舞。

Turning to our Proppant Production segment. We saw volumes decline during the second quarter into June. We anticipate volumes to remain relatively stable in the third quarter from our June run rate, while realized cost savings helping to offset the expected decline in revenues in the third quarter.

轉向我們的支撐劑生產部門。我們發現第二季至六月的銷量有所下降。我們預計第三季的銷售量將與六月份的運行率保持相對穩定，同時實現的成本節約有助於抵消第三季預期的收入下降。

As we've spoken about in the past, the operating leverage inherent in our proppant business becomes increasingly evident as we drive higher utilization rates, and we expect this segment to be a meaningful contributor to our overall performance as activity recovers. We anticipate increased demand next year in the Haynesville, and we are very well positioned with as much as 13 million tons of damp sand capacity or 8 million tons of dry sand capacity.

正如我們過去所談到的，隨著我們提高利用率，支撐劑業務固有的經營槓桿變得越來越明顯，並且我們預計，隨著活動的恢復，這一部門將對我們的整體業績做出有意義的貢獻。我們預計明年海恩斯維爾的需求會增加，我們的濕砂產能高達 1,300 萬噸，乾砂產能高達 800 萬噸，處於非常有利的地位。

Meanwhile, building on Matt's comments about our South Texas asset, initiatives to increase throughput are underway. I'm deeply grateful to our team across all our businesses for their dedication, persistence and excellent work, which enable us to deliver a strong performance. Jumping into our various differentiators.

同時，根據馬特對我們南德克薩斯資產的評論，我們正在採取提高吞吐量的舉措。我深深感謝我們所有業務團隊的奉獻、堅持和出色工作，這使我們能夠取得強勁的業績。深入了解我們的各種差異化因素。

I'd like to start by highlighting continued progress with our asset management program, which remains a key driver of our operational improvements and capital efficiency initiatives. This program is fundamentally designed around maintaining firm cost control, maximizing utilization and efficiencies and rapidly deploying high-quality fleets.

首先，我想強調我們的資產管理計畫的持續進展，這仍然是我們營運改善和資本效率舉措的關鍵驅動力。該計劃的根本目的是保持嚴格的成本控制、最大限度地提高利用率和效率以及快速部署高品質的車隊。

We are seeing tangible results from our improved coordination across maintenance facilities. This enhanced coordination has enabled a better inventory management and standardized repair practices, directly contributing to faster turnaround times and reduced waste. Since implementing our asset management platform, we've achieved a steady increase in pumping hours on our fleet, while at the same time, a reduction in equipment failures and nonproductive time.

我們正在看到維護設施之間協調改善帶來的實際成果。這種增強的協調性使得庫存管理和維修實踐更加規範，直接有助於縮短週轉時間並減少浪費。自從實施資產管理平台以來，我們的車隊的抽水時間穩定增加，同時設備故障和非生產時間減少。

As Matt mentioned, asset management is also responsible for our improved ability to rapidly activate incremental high-quality fleets. This allows us to remain nimble to capture emerging opportunities in the market. In Q1, we activated five fleets. And so far in Q3, we've activated three fleets. The financial impact is clear, and we expect to continue reducing total maintenance costs per pump hour as we build on these operational improvements.

正如馬特所提到的，資產管理也有助於我們提高快速啟動增量高品質車隊的能力。這使我們能夠保持靈活，抓住市場上的新興機會。第一季度，我們啟動了五個艦隊。到目前為止，在第三季度，我們已經啟動了三個艦隊。財務影響是顯而易見的，隨著這些營運改善的推進，我們預計每泵小時的總維護成本將繼續降低。

Regarding our Flotek partnership, I'd like to provide some additional operational context on the significant transaction and its implications for our business. The assets consist of 30 highly sophisticated mobile units, 15 gas filtration and conditioning units paired with 15 gas distribution units. Each pairing can support one electric fleet or equivalent operation. These aren't just standard equipment.

關於我們與 Flotek 的合作關係，我想提供一些有關這項重大交易的額外營運背景及其對我們業務的影響。這些資產包括 30 個高度複雜的移動裝置、15 個氣體過濾和調節裝置以及 15 個氣體分配裝置。每對可以支援一個電動車隊或同等規模的運作。這些不僅僅是標準配備。

They incorporate patented real-time BTU monitoring technology that automatically manages off-spec gas, preventing catastrophic equipment shutdowns while maintaining operational continuity. What makes this technology particularly valuable is its versatility. While we developed the use case specifically for our frac operations, the applications extend far beyond our industry to midstream operations, compressor stations, data centers, refineries and essentially any industry that consumes or works with natural gas.

它們採用了專利的即時 BTU 監控技術，可自動管理不合格的氣體，防止災難性的設備停機，同時保持運作連續性。這項技術之所以特別有價值是因為它的多功能性。雖然我們專門為壓裂作業開發了用例，但其應用範圍遠遠超出了我們的行業，包括中游作業、壓縮機站、資料中心、煉油廠以及基本上任何消耗或使用天然氣的行業。

As Matt noted, keeping these assets within ProFrac limited their potential value. By placing these assets with Flotek, we've highlighted a pure-play technology platform that can scale across multiple end markets. The transaction structure provides us with multiple benefits, namely meaningful potential upside through our over 60% pro forma fully diluted ownership in Flotek equity.

正如馬特所指出的，將這些資產保留在 ProFrac 內部限制了它們的潛在價值。透過將這些資產交給 Flotek，我們凸顯了一個可以擴展到多個終端市場的純技術平台。交易結構為我們帶來了多重好處，即透過我們在 Flotek 股權中超過 60% 的備考完全稀釋所有權，實現有意義的潛在上漲。

Now let me take a moment to overview our differentiated power generation strategy and elaborate on the operational aspects of this initiative. While the equipment rental model is viable, we believe it does not fully take advantage of our expertise and existing partnerships. We are primarily targeting real property with redundant infrastructure, specifically for the data center market.

現在，請允許我花點時間概述我們的差異化發電策略，並詳細說明該計劃的營運方面。雖然設備租賃模式是可行的，但我們認為它並沒有充分利用我們的專業知識和現有的合作關係。我們主要針對具有冗餘基礎設施的房地產，特別是資料中心市場。

Our view is that the technology and solutions developed on the completions industry carry over well for solving many of the issues that are currently presented by the meaningful demand of power assets. This strategic focus should enable us to generate revenues that are decoupled from the volatility of the completions industry.

我們認為，完井產業開發的技術和解決方案可以很好地解決當前電力資產有意義需求所帶來的許多問題。這項策略重點使我們能夠產生與完井產業波動脫鉤的收入。

Our power generation strategy creates synergy opportunities through collaboration between our mobile power generation solutions and the acceleration of power delivery at target sites. With various opportunities in front of us, we hope to be in a position to further update you in the future. Finally, on capital allocation, we're executing effectively on our flexible approach.

我們的發電策略透過行動發電解決方案與目標站點電力傳輸加速之間的協作創造了協同機會。我們面前有各種各樣的機會，希望將來能夠為您提供進一步的更新資訊。最後，在資本配置方面，我們正在有效執行靈活的方法。

Last quarter, we identified approximately $70 million to $100 million of potential CapEx reductions enabled by our disciplined approach to asset management while aligning with evolving market conditions. We're pleased to report we're trending in line with our previously cited reductions. We now expect capital expenditures to be between $175 million and $225 million for 2025.

上個季度，我們透過嚴謹的資產管理方法，同時順應不斷變化的市場條件，發現潛在的資本支出削減額約為 7,000 萬至 1 億美元。我們很高興地報告，我們的趨勢與我們之前提到的減少一致。我們現在預計 2025 年的資本支出將在 1.75 億至 2.25 億美元之間。

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

現在我將把電話交給奧斯汀，讓他更詳細地介紹我們的財務結果。

Thanks, Ladd. In the second quarter, revenues were $502 million compared to $600 million in the first quarter. We generated $79 million of adjusted EBITDA with an adjusted EBITDA margin of 16% compared to $130 million in the first quarter or 22% of revenue. Importantly, free cash flow was $54 million in the second quarter versus negative $14 million in the first quarter. As mentioned earlier, we took actions to rightsize costs in response to market conditions.

謝謝，拉德。第二季營收為 5.02 億美元，而第一季營收為 6 億美元。我們的調整後 EBITDA 為 7,900 萬美元，調整後 EBITDA 利潤率為 16%，而第一季為 1.3 億美元，佔營收的 22%。重要的是，第二季的自由現金流為 5,400 萬美元，而第一季為負 1,400 萬美元。如前所述，我們根據市場狀況採取了適當措施來調整成本。

However, the timing of the activity slowdown mitigated the full impact of our initiatives until later in the second quarter. Turning to our segments. Stimulation Services revenues declined to $432 million in the second quarter from $525 million in the first quarter, primarily due to a reduced fleet count and increased white space. Adjusted EBITDA fell to $51 million from $105 million in Q1 with margins of 12% versus 20% in the prior quarter.

然而，活動放緩的時機減輕了我們舉措的全部影響，直到第二季後期才顯現出來。轉向我們的部分。刺激服務收入從第一季的 5.25 億美元下降至第二季的 4.32 億美元，主要原因是船隊數量減少和空白空間增加。調整後的 EBITDA 從第一季的 1.05 億美元降至 5,100 萬美元，利潤率為 12%，而上一季為 20%。

This decline reflects inefficiencies stemming from customers moderating their activity levels as they reassess their operational plans, resulting in a delay in reducing operating costs until later in the quarter. Additionally, this segment incurred approximately $8 million in shortfall expenses related to our supply agreement with Flotek, consistent with the previous quarter.

這種下降反映了由於客戶在重新評估其營運計劃時降低活動水平而導致的效率低下，從而導致降低營運成本的時間被推遲到本季度後期。此外，該部門與我們與 Flotek 的供應協議相關的短缺費用約為 800 萬美元，與上一季一致。

Our Proppant Production segment generated $78 million of revenues in the second quarter, up from $67 million in Q1. The increase was primarily attributable to an increase in delivered sand sales, which more than offset the impact of lower volumes. Approximately 48% of volumes were sold to third-party customers during the second quarter versus 63% in Q1.

我們的支撐劑生產部門第二季創造了 7,800 萬美元的收入，高於第一季的 6,700 萬美元。成長主要歸因於交付沙子銷售量的增加，足以抵消銷售量下降的影響。第二季約有 48% 的銷量售給了第三方客戶，而第一季這一比例為 63%。

Adjusted EBITDA for the Proppant Production segment was $15 million for the second quarter versus $18 million in Q1. EBITDA margins came in at 19% in the second quarter versus 27% in Q1, with the decline largely reflecting the lower volumes and the impact of the large step-up in intercompany sales.

支撐劑生產部門第二季調整後 EBITDA 為 1,500 萬美元，而第一季為 1,800 萬美元。第二季 EBITDA 利潤率為 19%，而第一季為 27%，下降主要反映了銷售下降和公司間銷售大幅成長的影響。

We're actively investing to enhance mine productivity and optimize our sourcing mix to improve these dynamics going forward. Our Manufacturing segment generated second quarter revenues of $56 million versus $66 million in Q1. Approximately 78% of segment revenues were generated via intercompany sales compared with 87% in Q1.

我們正在積極投資以提高礦山生產力並優化我們的採購組合，以改善未來的動態。我們的製造部門第二季的營收為 5,600 萬美元，而第一季的營收為 6,600 萬美元。約 78% 的分部收入來自公司間銷售，而第一季這一比例為 87%。

The nearly $4 million sequential increase in external sales drove an adjusted EBITDA improvement of more than $3 million. Selling, general and administrative expenses were $51 million in the second quarter, improved from $54 million in the first quarter as we remain focused on cost controls.

外部銷售額連續增加近 400 萬美元，推動調整後 EBITDA 成長超過 300 萬美元。由於我們持續注重成本控制，第二季的銷售、一般和行政費用為 5,100 萬美元，較第一季的 5,400 萬美元有所改善。

Cash capital expenditures decreased to $47 million in the second quarter from $53 million in the first quarter, totaling $99 million for the first half of 2025. With efficient capital allocation driven by our asset management platform, we are revising our annual CapEx guidance down to $175 million to $225 million.

現金資本支出從第一季的 5,300 萬美元減少至第二季的 4,700 萬美元，2025 年上半年總計 9,900 萬美元。在我們的資產管理平台推動下，高效率的資本配置將使我們的年度資本支出指引下調至 1.75 億美元至 2.25 億美元。

Our revised guidance is in line with our initial estimate of $70 million to $100 million in capital expenditure reductions for 2025. Second quarter spending primarily encompassed maintenance on our fleets, continued upgrades and expansion at Alpine designed to increase quality and throughput at the mines.

我們修訂後的指引與我們最初估計的 2025 年資本支出削減 7,000 萬至 1 億美元一致。第二季的支出主要用於我們車隊的維護、阿爾派的持續升級和擴建，旨在提高礦場的品質和產量。

While these savings partly reflect lower activity levels versus our outlook earlier in the year, they also demonstrate the real progress of our asset management program. This program is delivering tangible savings while enhancing operational quality. Total cash and cash equivalents as of June 30, 2025, were approximately $26 million, including approximately $5 million attributable to Flotek.

雖然這些節省在一定程度上反映了與我們今年早些時候的預期相比較低的活動水平，但它們也表明了我們的資產管理計劃取得了真正的進展。該計劃在提高營運品質的同時，也帶來了切實的節約。截至 2025 年 6 月 30 日的現金及現金等價物總額約為 2,600 萬美元，其中約 500 萬美元歸屬於 Flotek。

Total liquidity at quarter end was approximately $108 million, including $87 million available under the ABL. Borrowings under the ABL credit facility ended the quarter at $164 million, an improvement of $41 million from March 31. At June 30, we had approximately $1.11 billion of debt outstanding with the majority not due until 2029.

季度末的總流動資金約為 1.08 億美元，其中包括 ABL 下的 8,700 萬美元。本季末，ABL 信貸額度下的借款為 1.64 億美元，比 3 月 31 日增加了 4,100 萬美元。截至 6 月 30 日，我們有大約 11.1 億美元的未償還債務，其中大部分要到 2029 年才到期。

We repaid approximately $29 million of long-term debt in the second quarter and intend to continue to use free cash flow in future periods to deleverage. Late in the second quarter, we took several strategic steps to enhance our liquidity position and financial flexibility. We successfully executed a series of transactions that are expected to provide approximately $90 million in incremental liquidity through 2025.

我們在第二季償還了約 2,900 萬美元的長期債務，並打算在未來期間繼續利用自由現金流來去槓桿。第二季末，我們採取了多項策略措施來增強我們的流動性狀況和財務靈活性。我們成功執行了一系列交易，預計到 2025 年將提供約 9,000 萬美元的增量流動性。

These actions included the issuance of $20 million in additional 2029 senior notes during the second quarter with commitments for two additional $20 million issuances at the company's option in the third and fourth quarters, respectively, for a total of $60 million. The initial issuance was purchased by our long-term partners, the Wilks family affiliates, demonstrating their continued confidence in our business. We also amended our Alpine term loan agreement, resulting in a $30 million reduction in our quarterly amortization payments for 2025.

這些行動包括在第二季發行 2,000 萬美元的額外 2029 年優先票據，並承諾分別在第三季和第四季根據公司的選擇發行兩次額外的 2,000 萬美元票據，總計 6,000 萬美元。首次發行的債券由我們的長期合作夥伴威爾克斯家族附屬公司購買，這表明他們對我們業務的持續信心。我們也修改了阿爾卑斯定期貸款協議，導致 2025 年季度攤提付款減少 3,000 萬美元。

Additionally, we successfully negotiated the deferral of the total net leverage ratio test on the Alpine term loan to the first quarter of 2027, providing us with enhanced flexibility to navigate current market conditions. These proactive measures strengthened our balance sheet and provide us with additional financial resources to execute our business strategy while maintaining our focus on disciplined capital allocation.

此外，我們成功協商將阿爾派定期貸款的總淨槓桿率測試推遲至 2027 年第一季度，這為我們提供了更大的靈活性來應對當前的市場狀況。這些積極措施增強了我們的資產負債表，並為我們提供了額外的財務資源來執行我們的業務策略，同時保持了我們對嚴格的資本配置的關注。

Lastly, on the Flotek transaction, we conveyed our mobile gas conditioning units and six-year lease in exchange for warrants on 6 million Flotek shares, offset mechanisms for order shortfall payments under our chemical supply agreement and issued a $40 million five-year seller note at 10%. This transaction strengthened our strategic partnership while providing meaningful financial benefits. Our 60% plus pro forma fully diluted ownership in Flotek has resulted in material incremental value subsequent to the transaction closing in late April.

最後，在 Flotek 交易中，我們轉讓了我們的移動式氣體調節裝置和六年租約，以換取 600 萬股 Flotek 股票的認股權證、化學品供應協議下的訂單短缺付款抵消機制，並以 10% 的利率發行了 4000 萬美元的五年期賣方票據。此次交易加強了我們的策略夥伴關係，同時帶來了豐厚的財務利益。我們在 Flotek 的 60% 以上備考完全稀釋所有權在 4 月底交易結束後產生了實質性的增量價值。

In closing, we are excited to report robust free cash flow generation in the second quarter, coupled with a series of strategic initiatives that generated significant incremental value, including the Flotek transaction, successful operational execution in the field and via our asset management platform, technological innovation in ProPilot and at iO-TEQ, and enhanced liquidity and financial flexibility via the new notes issuance and term loan amendment.

最後，我們很高興地報告第二季度強勁的自由現金流，加上一系列產生顯著增量價值的戰略舉措，包括 Flotek 交易、現場和透過我們的資產管理平台的成功營運執行、ProPilot 和 iO-TEQ 的技術創新，以及透過發行新票據和定期貸款修改增強的流動性和財務靈活性。

That concludes our prepared comments. Operator, please open the line for questions. Thank you.

我們的準備好的評論到此結束。接線員，請打開熱線來回答問題。謝謝。

(Operator Instructions)

（操作員指示）

John Daniel, Daniel Energy.

約翰·丹尼爾，丹尼爾能源。

Hey, good morning, guys. Thank you for including me. Matt, I was -- the comment about the increasing customer engagement around 2026. I'm sure -- I would assume nothing is set in stone. But I'm just curious, do you feel like the engagement is higher activity than where we are today? Or can you just elaborate a little bit more on what they're asking for?

嘿，大家早安。謝謝你邀請我。馬特，我剛才談到了 2026 年左右客戶參與度的提高。我確信──我認為沒有什麼是一成不變的。但我只是好奇，您是否覺得參與度比現在更高？還是您能否更詳細地說明一下他們的要求？

Yes, definitely. We're seeing a lot more engagement around the 2026 programs for operators. We saw a pretty sharp drop off after Liberation Day. And since then, a lot of the operators that have slowed activity have started coming back, looking at what they need to do to bring some of them back.

是的，當然。我們看到圍繞 2026 年營運商計畫的參與度正在不斷提高。解放日之後，我們看到了急劇的下降。自那時起，許多已經放慢活動的營運商已經開始回歸，並研究如何讓其中一些營運商恢復營運。

Some of them have already come back. But as we look at the RFP season and planning for 2026, we're seeing an increase to current activity levels.

其中一些人已經回來了。但當我們回顧 RFP 季節並規劃 2026 年時，我們發現當前活動水準有所提高。

Okay. And then just on the increased activity since the late June, early July trough. Can you just give some context whether, is that more gas directed or just folks in oil markets going back to work with the rebound in oil price? Just any color there would be helpful.

好的。然後，自 6 月底 7 月初的低潮以來，活動就開始增加。您能否提供一些背景信息，這是否意味著更多的天然氣需求，還是只是石油市場中的人們隨著油價反彈而重返工作崗位？任何顏色都有幫助。

Yes. It's really across gas and oil. But it's -- the Permian, not quite as much of an increase as what we're seeing on gas, but there is an uptick from -- especially from the lows that we saw in June.

是的。它確實橫跨天然氣和石油。但二疊紀盆地的產量增幅不如天然氣那麼大，但較之 6 月的低點有所回升。

Sure. Okay. That's all I had. Thanks for having me on.

當然。好的。這就是我所擁有的一切。謝謝你邀請我。

Thank you.

謝謝。

Thank you. At this time, I would like to turn the call back to Matt Wilks for closing comments.

謝謝。現在，我想將電話轉回給馬特威爾克斯 (Matt Wilks)，請他發表最後評論。

We're grateful for your time today. While Q2 reflected the market headwinds we discussed on our last call, our vertically integrated manufacturing capabilities, advanced asset management platform and technology leadership through initiatives such as ProPilot 2.0 continue to differentiate us competitively. Our strategic Flotek partnership has unlocked value and is providing us with exposure to a multibillion-dollar addressable market.

我們非常感謝您今天抽出時間。雖然第二季反映了我們在上次電話會議上討論的市場逆風，但我們透過 ProPilot 2.0 等措施實現的垂直整合製造能力、先進的資產管理平台和技術領導地位繼續使我們在競爭中脫穎而出。我們與 Flotek 的策略合作夥伴關係釋放了價值，並為我們提供了數十億美元潛在市場的機會。

And our disciplined capital allocation approach ensures we're well positioned for the supply and demand tightening we expect when activity accelerates. With healthy customer dialogues around 2026 planning, we remain confident in our ability to capitalize on improving conditions. We look forward to speaking with you again when we report our third quarter 2025 results. Thank you.

我們嚴謹的資本配置方法確保我們能夠很好地應對活動加速時預期的供需緊縮。透過圍繞 2026 年規劃進行的健康客戶對話，我們仍然對自己利用不斷改善的條件的能力充滿信心。我們期待在報告 2025 年第三季業績時再次與您交談。謝謝。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與並祝您有個愉快的一天。