ProPetro Reports Financial Results for the Fourth Quarter and Full Year of 2023
ProPetro Holding Corp. (PUMP) reported strong financial results for the full year 2023 with revenue of $1.6 billion, a 27% increase over 2022, and net income of $86 million. The company deployed electric hydraulic fracturing fleets and repurchased shares. However, the fourth quarter saw a revenue decrease to $348 million, a net loss of $17 million, and adjusted EBITDA of $64 million. Despite challenges, ProPetro remains optimistic about future growth and value creation.
Positive
Revenue for full year 2023 was $1.6 billion, up 27% from 2022.
Net income increased significantly to $86 million compared to $2 million in 2022.
Adjusted EBITDA for 2023 was $404 million, a 28% increase over 2022.
Repurchased and retired 5.8 million shares in 2023.
Deployed electric hydraulic fracturing fleets with plans for more in 2024.
Published first ProPetro ProEnergy ProPeople Sustainability Report in October 2023.
Acquired Par Five Energy Services LLC to expand cementing services.
Challenges in the fourth quarter included a revenue decrease to $348 million and a net loss of $17 million.
Adjusted EBITDA for the fourth quarter was $64 million.
Guidance for 2024 includes reduced capital expenditures and anticipated fleet utilization.
ProPetro remains positive about future growth and value creation.
Conference call scheduled for February 21, 2024, to discuss financial results.
Negative
Revenue decreased in the fourth quarter to $348 million.
Net loss of $17 million in the fourth quarter.
Adjusted EBITDA decreased to $64 million in the fourth quarter.
Challenges faced in the fourth quarter due to seasonality and customer budget exhaustion.
Net loss included $8 million of true-up depreciation related to equipment.
Substantial reduction in capital expenditures for 2024 compared to 2023.
The reported financial results of ProPetro Holding Corp. for the full year and fourth quarter of 2023 indicate a noteworthy year-over-year revenue increase of 27%, with net income escalating from $2 million in 2022 to $86 million in 2023. This substantial growth in profitability, especially in a volatile energy sector, suggests a robust operational performance and strategic capital allocation. The repurchase and retirement of 5.8 million shares, about 5% of outstanding common stock, reflect a shareholder-friendly capital return policy, potentially signaling management's confidence in the company's intrinsic value and future prospects.
However, the fourth quarter results show a contraction with a net loss of $17 million, contrasting with the previous quarter's net income of $35 million. This decline, attributed to reduced hydraulic fracturing utilization due to seasonality and customer budget exhaustion, raises concerns about the company's short-term revenue volatility and the potential impact of external factors on its operational efficiency. This is further compounded by the decrease in Adjusted EBITDA from $108 million in the previous quarter to $64 million in Q4. Investors should monitor the company's ability to manage these cyclical challenges while maintaining profitability.
The deployment of two FORCESM electric hydraulic fracturing fleets, with two more expected in the first half of 2024 and the emphasis on Tier IV DGB Dual-fuel fleets, is a strategic move aligning with industry trends towards more environmentally friendly and cost-efficient technologies. Electric fleets in hydraulic fracturing are increasingly preferred due to their lower emissions and potential to reduce operational costs. ProPetro's transition to such technologies could enhance its competitive position in the Permian Basin, which is a key oil-producing region.
The acquisition of Par Five Energy Services LLC, aimed at expanding cementing services in the Delaware Basin, demonstrates ProPetro's growth strategy through accretive acquisitions. This could diversify the company's service offerings and strengthen its market presence. Investors should consider the effectiveness of such strategic moves in generating long-term value, especially in the context of the company's capital expenditure reduction plans and the anticipated decrease in capital intensity.
The forward-looking statements by ProPetro's CEO suggest confidence in the company's positioning and its ability to capitalize on value-creating opportunities in the future. The projected reduction in capital expenditures for 2024, along with the anticipated deployment of additional electric fleets, indicates a strategic shift towards capital-light assets and operational optimization. This aligns with the broader industry's focus on cost management and operational efficiency.
However, the bifurcation in the service sector, as mentioned by the CEO, where demand for top-tier service providers remains strong, could imply a challenging environment for smaller or less differentiated firms. ProPetro’s emphasis on quality service and a young, next-generation equipment offering, particularly in a concentrated market like the Permian Basin, could provide a buffer against market inconsistencies. Stakeholders should weigh these strategic elements against broader market trends, including oil price fluctuations and regulatory changes impacting the energy sector.
02/21/2024 - 07:00 AM
MIDLAND, Texas --(BUSINESS WIRE)--
ProPetro Holding Corp. ("ProPetro" or "the Company") (NYSE: PUMP) today announced financial and operational results for the fourth quarter and full year of 2023.
Full Year 2023 Results and Highlights
Revenue was $1.6 billion 27% increase over 2022.
Net income increased significantly to $86 million $2 million
Adjusted EBITDA(1) was $404 million 28% increase over 2022.
Repurchased and retired 5.8 million shares representing approximately 5.0% of our outstanding common stock since plan inception in May 2023.
Deployed two FORCESM electric hydraulic fracturing fleets operating under contract and expect two additional FORCESM fleets to be deployed in the first half of 2024.
The FORCESM electric fleet deployments along with our Tier IV DGB Dual-fuel fleets will represent approximately 65% of our hydraulic fracturing capacity.
Published our first ProPetro ProEnergy ProPeople Sustainability Report in October.
Realized continued benefits from our optimization program which supported lower capital expenditures and our capital returns program in 2023 and is expected to support further reduced capital expenditures in 2024.
Completed another accretive acquisition to expand our cementing services into the Delaware Basin.
Fourth Quarter 2023 Results and Highlights
Revenue was $348 million $424 million
Net loss of $17 million $0.16 $35 million $0.31
Adjusted EBITDA(1) of $64 million $108 million
Effective utilization was 12.9 fleets compared to 15.5 fleets for the prior quarter.
Completed the acquisition of Par Five Energy Services LLC ("Par Five"), a Permian Basin-focused provider of cementing services in the Delaware Basin.
Repurchased and retired 1.6 million shares.
Deployed our second FORCESM electric hydraulic fracturing fleet under contract.
(1) Adjusted EBITDA is a Non-GAAP financial measure and is described and reconciled to net income (loss) in the table under “Non-GAAP Financial Measures.”
Sam Sledge, Chief Executive Officer, commented, "The fourth quarter proved to be more challenging than we had originally anticipated, largely due to additional deferred activity late in the quarter. However, despite the white space, which we attribute primarily to seasonality and customer budget exhaustion, we were able to continue to execute on our strategy through the acquisition of Par Five, the deployment of an additional FORCESM electric fleet under contract, and continued capital returns through our share repurchase program. Thanks to the hard work of our team throughout 2023, we improved profitability, executed a disciplined approach to asset deployment, successfully pursued accretive growth, and employed a sustainable capital allocation plan. We have transformed ProPetro into a leading dual-fuel and electric frac provider with a complement of premium completion services, primarily offered in the Permian Basin. We have advanced our strategy to industrialize our business, and are confident that ProPetro is well-positioned to continue to execute on value-creating opportunities in 2024 and beyond.”
David Schorlemer, Chief Financial Officer, commented, “2023 was a remarkable year of progress for the Company. As we have previously noted, over the last two years, we invested over $1 billion
Fourth Quarter 2023 Financial Summary
Revenue was $348 million $424 million
Cost of services, excluding depreciation and amortization of approximately $62 million $261 million $292 million
General and administrative expense of $28 million $29 million $4 million $2 million $22 million 6% of revenue, which is flat compared to the third quarter of 2023.
Net loss totaled $17 million $0.16 $35 million $0.31 $8 million
Adjusted EBITDA decreased to $64 million $108 million
Liquidity and Capital Spending
As of December 31, 2023, we had cash and cash equivalents of $33 million $45 million $134 million $101 million
Capital expenditures incurred during the fourth quarter of 2023 were $39 million FORCESM electric frac fleet offering. Net cash used in investing activities as shown on the statement of cash flows during the fourth quarter of 2023 was $71 million
Share Repurchases
The Company repurchased and retired 5.8 million shares during 2023. During the fourth quarter of 2023, the Company repurchased and retired 1.6 million shares. Subsequent to year-end through February 16, 2024, the Company repurchased an additional 0.8 million shares, bringing the total repurchases to 6.6 million shares, representing approximately 6% of our outstanding common stock since plan inception in May 2023.
Guidance and Recent Results
ProPetro’s outlook for full year 2024 incurred capital expenditures is expected to be between $200 million $250 million $310 million FORCESM electric frac fleet, and optimizing our operational and maintenance performance to reduce the capital intensity in our business.
Additionally, based on its current outlook for the first quarter of 2024, ProPetro anticipates frac fleet utilization of 14 to 15 fleets.
Outlook
Mr. Sledge, added, “As we proceed in 2024, we expect the service sector to remain bifurcated and that demand for top tier service providers like ProPetro will remain strong throughout the year. We have already seen our activity recover from the impacts we experienced in the fourth quarter of 2023. Additionally, we are on track to deploy our third and fourth FORCESM electric frac fleets in the first half of 2024. We believe electric equipment will play a significant role in ProPetro's future and are pleased to see strong demand for our FORCESM electric frac fleets and the commercial architecture under which they will be deployed."
Mr. Sledge concluded, "To reiterate, despite the recent market slowdown, demand for our next generation offerings has not waned. Our strategy is designed to generate durable returns in the current low-to-no-growth market environment and through the cycle. As our dedicated blue-chip customers seek reliable completion services at competitive costs, ProPetro is uniquely positioned to provide quality service, a young, next generation equipment offering and operational density in the Permian. This differentiation continues to insulate ProPetro from some of the market inconsistency seen in other basins and in the spot market. As we continue to optimize our operations and industrialize our business, modernize our fleet, and seek opportunistic transactions in line with our commitment to disciplined capital deployment, we are confident in ProPetro’s ability to generate meaningful shareholder returns for years to come.”
Conference Call Information
The Company will host a conference call at 8:00 AM Central Time on February 21, 2024, to discuss financial and operating results for the fourth quarter of 2023. The call will also be webcast on ProPetro’s website at www.propetroservices.com . To access the conference call, U.S. callers may dial toll free 1-844-340-9046 and international callers may dial 1-412-858-5205. Please call ten minutes ahead of the scheduled start time to ensure a proper connection. A replay of the conference call will be available for one week following the call and can be accessed toll free by dialing 1-877-344-7529 for U.S. callers, 1-855-669-9658 for Canadian callers, as well as 1-412-317-0088 for international callers. The access code for the replay is 9777531. The Company has also posted the scripted remarks on its website.
About ProPetro
ProPetro Holding Corp. is a Midland, Texas -based provider of premium completion services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. We help bring reliable energy to the world. For more information visit www.propetroservices.com .
Forward-Looking Statements
Except for historical information contained herein, the statements and information in this news release and discussion in the scripted remarks described above are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “may,” “could,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” "will," "should" and other expressions that are predictions of, or indicate, future events and trends or that do not relate to historical matters generally identify forward‑looking statements. Our forward‑looking statements include, among other matters, statements about the supply of and demand for hydrocarbons, our business strategy, industry, projected financial results and future financial performance, expected fleet utilization, sustainability efforts, the future performance of newly improved technology, expected capital expenditures, the impact of such expenditures on our performance and capital programs, our fleet conversion strategy and our share repurchase program. A forward‑looking statement may include a statement of the assumptions or bases underlying the forward‑looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable.
Although forward‑looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of oil prices, the global macroeconomic uncertainty related to the conflict in the Israel -Gaza region and the Russia -Ukraine war, general economic conditions, including the impact of continued inflation, central bank policy actions, bank failures, and the risk of a global recession, and other factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, particularly the “Risk Factors” sections of such filings, and other filings with the Securities and Exchange Commission (the “SEC”). In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings made with the SEC from time to time that disclose risks and uncertainties that may affect the Company’s business. The forward-looking statements in this news release are made as of the date of this news release. ProPetro does not undertake, and expressly disclaims, any duty to publicly update these statements, whether as a result of new information, new developments or otherwise, except to the extent that disclosure is required by law.
PROPETRO HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Years Ended
December 31,
September 30,
December 31,
December 31,
December 31,
REVENUE - Service revenue
$
347,776
$
423,804
$
348,924
$
1,630,399
$
1,279,701
COSTS AND EXPENSES
Cost of services (exclusive of depreciation and amortization)
261,034
292,490
242,618
1,131,801
882,820
General and administrative (inclusive of stock-based compensation)
27,990
28,597
26,728
114,354
111,760
Depreciation and amortization (1)
62,152
53,769
43,475
180,886
128,108
Impairment expense
—
—
—
—
57,454
Loss on disposal of assets (1)
4,883
4,265
17,812
73,015
102,150
Total costs and expenses
356,059
379,121
330,633
1,500,056
1,282,292
OPERATING (LOSS) INCOME
(8,283
)
44,683
18,291
130,343
(2,591
)
OTHER (EXPENSE) INCOME:
Interest expense
(2,292
)
(1,169
)
(565
)
(5,308
)
(1,605
)
Other (expense) income
(7,784
)
1,883
1,835
(9,533
)
11,582
Total other (expense) income
(10,076
)
714
1,270
(14,841
)
9,977
(LOSS) INCOME BEFORE INCOME TAXES
(18,359
)
45,397
19,561
115,502
7,386
INCOME TAX BENEFIT (EXPENSE)
1,250
(10,644
)
(6,520
)
(29,868
)
(5,356
)
NET (LOSS) INCOME
$
(17,109
)
$
34,753
$
13,041
$
85,634
$
2,030
NET (LOSS) INCOME PER COMMON SHARE:
Basic
$
(0.16
)
$
0.31
$
0.12
$
0.76
$
0.02
Diluted
$
(0.16
)
$
0.31
$
0.12
$
0.76
$
0.02
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
110,164
112,286
111,118
113,004
105,868
Diluted
110,164
112,698
111,988
113,416
106,939
NOTE: Cost of services in the periods prior to 2023 does not include the impact of expensing fluid ends.
(1)
In connection with the review of our power ends estimated useful life, effective January 1, 2023, we are writing off the remaining book value of power ends that prematurely fail as accelerated depreciation. For the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, the write-off amounts pertaining to the remaining book value of prematurely failed power ends are included in depreciation and amounted to $6.0 million $8.4 million $9.1 million $38.7 million $35.9 million
PROPETRO HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
December 31,
December 31,
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and restricted cash
$
33,354
$
88,862
Accounts receivable - net of allowance for credit losses of $236 $419
237,012
215,925
Inventories
17,705
5,034
Prepaid expenses
14,640
8,643
Short-term investment, net
7,745
10,283
Other current assets
353
38
Total current assets
310,809
328,785
PROPERTY AND EQUIPMENT - Net of accumulated depreciation
967,116
922,735
OPERATING LEASE RIGHT-OF-USE ASSETS
78,583
3,147
FINANCE LEASE RIGHT-OF-USE ASSETS
47,449
—
OTHER NONCURRENT ASSETS:
Goodwill
23,624
23,624
Intangible assets - net of amortization
50,615
56,345
Other noncurrent assets
2,116
1,150
Total other noncurrent assets
76,355
81,119
TOTAL ASSETS
$
1,480,312
$
1,335,786
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
161,441
$
234,299
Accrued and other current liabilities
75,616
49,027
Operating lease liabilities
17,029
854
Finance lease liabilities
17,063
—
Total current liabilities
271,149
284,180
DEFERRED INCOME TAXES
93,105
65,265
LONG-TERM DEBT
45,000
30,000
NONCURRENT OPERATING LEASE LIABILITIES
38,600
2,308
NONCURRENT FINANCE LEASE LIABILITIES
30,886
—
OTHER LONG-TERM LIABILITIES
3,180
—
Total liabilities
481,920
381,753
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.00 1
—
—
Common stock, $0.00 1
109
114
Additional paid-in capital
929,249
970,519
Retained earnings (accumulated deficit)
69,034
(16,600
)
Total shareholders’ equity
998,392
954,033
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
1,480,312
$
1,335,786
PROPETRO HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Years Ended December 31,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
85,634
$
2,030
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
180,886
128,108
Impairment expense
—
57,454
Deferred income tax expense (benefit)
27,840
4,213
Amortization of deferred debt issuance costs
359
785
Stock‑based compensation
14,450
21,881
Provision for credit losses
34
202
Loss on disposal of assets
73,015
102,150
Unrealized loss on short-term investment
2,538
1,570
Non-cash income from settlement with equipment manufacturer
—
(2,668
)
Changes in operating assets and liabilities:
Accounts receivable
(12,408
)
(66,900
)
Other current assets
(831
)
354
Inventories
(6,017
)
124
Prepaid expenses
(6,143
)
743
Accounts payable
(11,429
)
27,428
Accrued and other current liabilities
26,431
22,602
Accrued interest
383
353
Net cash provided by operating activities
374,742
300,429
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(370,869
)
(319,683
)
Business acquisitions, net of cash acquired
(22,215
)
(38,639
)
Proceeds from sale of assets
8,957
8,577
Net cash used in investing activities
(384,127
)
(349,745
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings
30,000
30,000
Repayments of borrowings
(15,000
)
—
Payments of finance lease obligation
(4,663
)
—
Payment of debt issuance costs
(1,179
)
(824
)
Proceeds from exercise of equity awards
—
963
Tax withholdings paid for net settlement of equity awards
(3,543
)
(3,879
)
Share repurchases
(51,738
)
—
Net cash (used in) provided by financing activities
(46,123
)
26,260
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(55,508
)
(23,056
)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of year
88,862
111,918
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of year
$
33,354
$
88,862
Reportable Segment Information
Three Months Ended
December 31, 2023
September 30, 2023
(in thousands)
Completion
All
Total
Completion
All
Total
Service revenue
$
347,776
$
—
$
347,776
$
423,804
$
—
$
423,804
Adjusted EBITDA
$
64,268
$
—
$
64,268
$
107,714
$
—
$
107,714
Depreciation and amortization (1)
$
62,152
$
—
$
62,152
$
53,769
$
—
$
53,769
Operating lease expense on FORCESM fleets (3)
$
4,310
$
—
$
4,310
$
777
$
—
$
777
Capital expenditures
$
38,536
$
—
$
38,536
$
59,081
$
—
$
59,081
Year Ended
December 31, 2023
December 31, 2022
(in thousands)
Completion
All
Total
Completion
All
Total
Service revenue
$
1,630,399
$
—
$
1,630,399
$
1,266,261
$
13,440
$
1,279,701
Adjusted EBITDA
$
403,960
$
—
$
403,960
$
318,051
$
(1,461
)
$
316,590
Depreciation and amortization (1)
$
180,886
$
—
$
180,886
$
125,867
$
2,241
$
128,108
Impairment expense
$
—
$
—
$
—
$
57,454
$
—
$
57,454
Operating lease expense on FORCESM fleets (2)
$
5,087
$
—
$
5,087
$
—
$
—
$
—
Capital expenditures
$
310,020
$
—
$
310,020
$
362,467
$
2,849
$
365,316
Goodwill
$
23,624
$
—
$
23,624
$
23,624
$
—
$
23,624
Total assets
$
1,480,312
$
—
$
1,480,312
$
1,335,501
$
285
$
1,335,786
NOTE: Adjusted EBITDA in the periods prior to 2023 does not include the impact of expensing fluid ends.
(1)
In connection with the review of our power ends estimated useful life, effective January 1, 2023, we are writing off the remaining book value of power ends that prematurely fail as accelerated depreciation. For the three months ended December 31, 2023 and September 30, 2023, the write-off amounts pertaining to the remaining book value of prematurely failed power ends are included in depreciation and amounted to $6.0 million $8.4 million $38.7 million $35.9 million
(2)
Represents lease costs related to operating leases on our FORCESM electric-powered hydraulic fracturing fleets. This cost is recorded within cost of services in our condensed consolidated statements of operations. We did not have these leases in 2022.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) plus (i) depreciation and amortization, (ii) interest expense and (iii) income tax expense (benefit). We define Adjusted EBITDA as EBITDA, plus (i) loss (gain) on disposal of assets, (ii) stock-based compensation, (iii) other expense (income), (iv) other general and administrative expense (net) and (v) other unusual or nonrecurring expenses (income) such as impairment charges, retention bonuses, severance, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements. We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities. Adjusted EBITDA and Free Cash Flow are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures provide useful information to investors in assessing our financial condition and results of operations. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, and net cash provided by operating activities is the GAAP measure most directly comparable to Free Cash Flow. Non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider Adjusted EBITDA or Free Cash Flow in isolation or as a substitute for an analysis of our results as reported under GAAP. Because Adjusted EBITDA and Free Cash Flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
Three Months Ended
December 31, 2023
September 30, 2023
(in thousands)
Completion
All
Total
Completion
All
Total
Net (loss) income
$
(17,109
)
$
—
$
(17,109
)
$
34,753
$
—
$
34,753
Depreciation and amortization (1)
62,152
—
62,152
53,769
—
53,769
Interest expense
2,292
—
2,292
1,169
—
1,169
Income tax (benefit) expense
(1,250
)
—
(1,250
)
10,644
—
10,644
Loss on disposal of assets (1)
4,883
—
4,883
4,265
—
4,265
Impairment expense
—
—
—
—
—
—
Stock-based compensation
3,846
—
3,846
3,310
—
3,310
Other expense (income) (2)
7,784
—
7,784
(1,883
)
—
(1,883
)
Other general and administrative expense (3)
1,310
—
1,310
450
—
450
Retention bonus and severance expense
360
—
360
1,237
—
1,237
Adjusted EBITDA
$
64,268
$
—
$
64,268
$
107,714
$
—
$
107,714
Year Ended
December 31, 2023
December 31, 2022
(in thousands)
Completion
All
Total
Completion
All
Total
Net income (loss)
$
85,634
$
—
$
85,634
$
19,754
$
(17,724
)
$
2,030
Depreciation and amortization (1)
180,886
—
180,886
125,867
2,241
128,108
Interest expense
5,308
—
5,308
1,605
—
1,605
Income tax expense
29,868
—
29,868
5,356
—
5,356
Loss on disposal of assets (1)
73,015
—
73,015
88,145
14,005
102,150
Impairment expense
—
—
—
57,454
—
57,454
Stock-based compensation
14,450
—
14,450
21,881
—
21,881
Other expense (income) (2)
9,533
—
9,533
(11,582
)
—
(11,582
)
Other general and administrative expense (3)
2,969
—
2,969
8,460
—
8,460
Retention bonus and severance expense
2,297
—
2,297
1,111
17
1,128
Adjusted EBITDA
$
403,960
$
—
$
403,960
$
318,051
$
(1,461
)
$
316,590
NOTE: Adjusted EBITDA in the periods prior to 2023 does not include the impact of expensing fluid ends.
(1)
In connection with the review of our power ends estimated useful life, effective January 1, 2023, we are writing off the remaining book value of power ends that prematurely fail as accelerated depreciation. For the three months ended December 31, 2023 and September 30, 2023, the write-off amounts pertaining to the remaining book value of prematurely failed power ends are included in depreciation and amounted to $6.0 million $8.4 million $38.7 million $35.9 million
(2)
Other expense for the three months and the year ended December 31, 2023 includes settlement expenses resulting from routine audits and true-up health insurance costs of totaling approximately $7.4 million $0.4 million $1.8 million $2.5 million $10.7 million $2.7 million $1.6 million
(3)
Other general and administrative expense for the three months and year ended December 31, 2023 primarily relates to nonrecurring professional fees paid to external consultants in connection with our business acquisitions and legal settlements, net of reimbursement from insurance carriers. Other general and administrative expense for the year ended December 31, 2022 primarily relates to nonrecurring professional fees paid to external consultants in connection with the Company's audit committee review, SEC investigation, shareholder litigation, legal settlement to a vendor and other legal matters, net of reimbursement from insurance carriers. During the three months ended December 31, 2023 and September 30, 2023, we received approximately $0 $0.1 million $0.4 million $10.4 million
Reconciliation of Cash from Operating Activities to Free Cash Flow
Three Months Ended
(in thousands)
December 31, 2023
September 30, 2023
Cash from Operating Activities
$
69,671
$
118,057
Cash used in Investing Activities
(71,356
)
(91,040
)
Free Cash Flow
$
(1,685
)
$
27,017
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221864965/en/
Investor Contacts:
David Schorlemer
david.schorlemer@propetroservices.com
Matt Augustine
matt.augustine@propetroservices.com
Source: ProPetro Holding Corp.
What was ProPetro Holding Corp.'s (PUMP) revenue for full year 2023?
ProPetro's revenue for full year 2023 was $1.6 billion, a 27% increase over 2022.
What was the net income for ProPetro in 2023?
ProPetro reported a net income of $86 million in 2023, a significant increase compared to $2 million in 2022.
How many shares did ProPetro repurchase and retire in 2023?
ProPetro repurchased and retired 5.8 million shares in 2023.
What challenges did ProPetro face in the fourth quarter of 2023?
ProPetro faced challenges in the fourth quarter, including a revenue decrease to $348 million, a net loss of $17 million, and adjusted EBITDA of $64 million.
What is ProPetro's guidance for full year 2024 capital expenditures?
ProPetro expects capital expenditures for full year 2024 to be between $200 million and $250 million, a reduction compared to $310 million in 2023.
When is ProPetro's conference call to discuss financial results for the fourth quarter of 2023?
ProPetro will host a conference call at 8:00 AM Central Time on February 21, 2024, to discuss financial and operating results for the fourth quarter of 2023.
