Profrac Holding Corp. · NASDAQ:ACDC
Profrac — Investor Presentation (February 2023)
26 slides from Profrac's investor presentation, Feb 22, 2023
Slide 1: ProFrac Holdings Investor Presentation February 2023
ProFrac Holdings Investor Presentation February 2023 www.PFHoldingsCorp.com February 2023 Exhibit 99.1
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements Certain statements in this presentation may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, the reader can identify forward-looking s
Slide 3: Snapshot of ProFrac
Snapshot of ProFrac $3.3B Market Cap (2/17/23) $4.2B TEV (2/17/23) $1.7B Illustrative Annual Run-Rate Adjusted EBITDA(1)(2) 24 Active NextGen Fleets(3) $1.1B Q3 2022A Annualized Adjusted EBITDA(2)(4) 42 Active Fleets(3) Illustrative Annual Run-Rate Adjusted EBITDA of $1,728 million includes ProFrac’
Slide 4: The Premier Growth-Oriented, Vertically-Integrated Energy Services Company
The Premier Growth-Oriented, Vertically-Integrated Energy Services Company Our Products, Services and Capabilities: Pressure Pumping Proppant Manufacturing Investments & Technology 42 active frac fleets(1) Leading portfolio of next-generation (Tier IV DGB and Electric) frac fleets Operations in majo
Slide 5: Substantial Opportunity from Increasing Penetration of Integrated Services
Substantial Opportunity from Increasing Penetration of Integrated Services Peers include LBRT, NEX and PUMP. ProPetro adjusted to back out fluid ends expense from adjusted EBITDA assuming $3MM fluid ends expense per active fleet. This is a non-GAAP financial measure. Please refer to the appendix to
Slide 6: Integrated Services Model Aggregates Existing Customer Spend
Integrated Services Model Aggregates Existing Customer Spend Completion Services Sand and Chemicals Logistics Efficient and high-spec equipment allows premium horsepower prices relative to its competition Ensures quality and availability of critical inputs while offering additional value add to cust
Slide 7: ProFrac's Performance, Technology and Execution are Rewarded by Our Customers
ProFrac’s Performance, Technology and Execution are Rewarded by Our Customers Best-in-Class Fleet Product Integration Proven Track Record Modern, fuel-efficient fleet Industry leading portfolio of Tier 4 dual-fuel and electric fleets offering significant fuel-cost savings Standardized equipment, des
Slide 8: Key Elements of ProFrac's Proppant Vertical Integration Strategy
Key Elements of ProFrac’s Proppant Vertical Integration Strategy Acquire Best-in-Class Assets Optimize Plant Efficiency and Logistics Capture Logistics Margin Strategic geographic positioning High reserve volumes with low-cost production Ability to produce high-quality, in-demand product Fit-for-pur
Slide 9: We Expect the Haynesville to be a Source of Future Opportunity
We Expect the Haynesville to be a Source of Future Opportunity CONFIDENTIAL AND PROPRIETARY Baseload frac service provider – ~25% historical market share in the Haynesville should benefit from commercial synergies from Performance Proppants acquisition Large portfolio of premium, natural gas-powered
Slide 10: Proppant Supply Supports Utilization and Profitability
Proppant Supply Supports Utilization and Profitability Illustrative Potential Cost Savings by Basin ($/ton)(1) As of February 2023 Permian Eagle Ford (Pro Forma)(2) Haynesville (Pro Forma)(2) ProFrac (Pro Forma)(2) Nameplate Capacity (MMTPY) 8.3 3.9(3) 10.4 22.6 Active Fleet Count 15 8 8 Annual Cons
Slide 11: Manufacturing Capabilities and Benefits
Manufacturing Capabilities and Benefits Equipment Assembly Internal manufacturing capabilities to build new fleets and upgrade legacy fleets to next-generation technology More cost efficient than purchasing from third-party manufacturers In-House-Refurbishment Reduces capital spend Cisco facility ca
Slide 12: ProFrac is Purpose Built to Withstand Cyclicality
ProFrac is Purpose Built to Withstand Cyclicality Excess Marketed Supply Historical & Projected U.S. Frac Marketed Supply and Demand(1) (MM HHP) (% Fleet Utilization) (1) Source: Rystad Energy as of December 2022. Metrics are reflective of total U.S. market. Total marketed supply equal to active and
Slide 13: Run-Rate Adjusted EBITDA Based on Illustrative Margins
Run-Rate Adjusted EBITDA Based on Illustrative Margins Acquired La Mesa for ~$38 million in December 2021(1) 6,700 acre developed into one of two mines located in the Midland Basin Acquired FTSI for $408 million in March 2022 14 active frac fleets and manufacturing capabilities Acquired SP Companies
Slide 14: M&A Strategy has Enhanced Capabilities and Resiliency
Repricing of underperforming fleets and continuing to consolidate the market Activated conventional diesel horsepower and replaced with modern, next-generation equipment Solidified and expanded geographic reach and positioning at the low-end of the supply cost curve Complementary revenue stream Enha
Slide 15: Significant Scale with Demonstrated Profitability Through the Cycle
Significant Scale with Demonstrated Profitability Through the Cycle Positive EBITDA throughout the cycle and COVID driven by peer-leading efficiency Significant growth post COVID driven through acquisitions, market improvements and pricing improvements ProFrac Quarterly Adjusted EBITDA ($MM) Source:
Slide 16: Demand for Fuel-Efficient Fleets Continues Rising
Demand for Fuel-Efficient Fleets Continues Rising U.S. Pressure Pumping Fleet Composition(1) ProFrac’s Fleet is Fuel Efficient (1) Source: Rystad Energy as of January 2023. (2) Includes fleets from recently acquired REV Energy Services and Producers. Also includes four E-Fleets under construction. A
Slide 17: Electric Fleets Offer Substantial Economic Advantage
(1) Source: ProFrac estimates; assumes 15 hours pumping per day for 27 days at 100 bpm and 9,000psi. (2) Source: ProFrac estimates; assumes baseline diesel pricing of $12,000 per pump hour with 400 pump hours per month at 100 bpm and 9,000 psi, $4.50 per gallon diesel and $2.00 per mcf gas. Electric
Slide 18: Attractively Positioned with Diversification Across Customer Base and Basin
Attractively Positioned with Diversification Across Customer Base and Basin Minimal long-term frac contracts enables ProFrac to position its resources to work for the most economic customers & in most active areas Add pie charts from other page here. Revise text on left. ACDC Totals January 2023 (1)
Slide 19: Disciplined Capex Deployment Strategy and Lower Maintenance Costs Relative to Peers
Disciplined Capex Deployment Strategy and Lower Maintenance Costs Relative to Peers Source: ProFrac provided information. (1)Excluding acquisitions. We believe we have the most cost advantaged construction costs in the industry given our vertical integration, providing us with the ability to retrofi
Slide 20: Committed to Generating Superior Returns Through Integrated Business Structure
We are committed to generating superior returns, achievable through our integrated business structure Leverage target at <1.0x total debt / pro forma Adjusted EBITDA by 2024(1) Conservative Balance Sheet Driven by vertical integration, standardized equipment, and strong digital capabilities Supply C
Slide 21: ProFrac is Demonstrating ESG Leadership
ProFrac is Demonstrating ESG Leadership Selected Recent Market Commentary Say 50% of BoD is diverse on 3rd right bullet 100 g/kWh CO2e 1 g/kWh NO2 1 g/kWh PM10 Significant shareholder alignment – the Wilks family owns ~83% of ProFrac Independent Directors with significant industry and management exp
Slide 22: ProFrac Investment Highlights
ProFrac Investment Highlights Add something about Lowest All in Cost for the Customer – put that into #5 Diversification across customers (blue chip and high growth) for #5 Lex: Need to make these 5 – 7 words on one line Lex says maybe no boxes if it looks beter Significant scale and through the cyc
Slide 23: Appendix
Appendix
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Does not assume FTSI acquisition closed January 1, 2022, but rather on actual close date of March 4, 2022. Includes Flotek operating results. (1) (2) (1)
Slide 25: Illustrative Annual Run-Rate Adjusted EBITDA Reconciliation
Illustrative Annual Run-Rate Adjusted EBITDA Reconciliation Source: Company disclosures and management projections as of January 23, 2023. Reflects the sum of pressure pumping segment EBITDA and manufacturing segment EBITDA annualized and divided by 31 active fleets. Pressure pumping EBITDA contribu
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