PUMP Deploys More Electric Frac Spreads: After Q2, PUMP had four electric hydraulic fracturing spreads (FORCE) under contract, three of which are currently operating. It recently placed an order for a fifth electric spread, which is expected to be delivered and deployed in 2024. It plans to keep its active frac spread count unchanged at 14 in Q3. Read more about this in our recent article here.

Financial Metrics Deteriorated In Q2: Quarter-over-quarter, PUMP’s revenues from the Hydraulic Fracturing segment decreased by 12% in Q2 2024, while its adjusted EBITDA declined by 26%. Its revenues and adjusted EBITDA from the Wireline segment decreased by 19% and 36%, respectively. Customer delays and pricing pressures, primarily in Tier II diesel frac fleets, and adverse weather caused the topline and the EBITDA to go down in Q2. Effective frac spread utilization improved in two successive quarters to 15.5 in Q2 2024 compared to 15 in the prior quarter.

PUMP’s Cash Flows And Repurchase: PUMP’s cash flow from operations decreased modestly (by 4%) in 1H 2024 compared to FY2023. Its free cash flow, however, turned positive in 1H 2024 as capex fell. The company’s debt-to-equity remained unchanged at 0.05x as of June 30, 2024. It repurchased and retired 2.5 million shares in Q2. Since May 2023, it has retired ~10% of the outstanding shares. In April, the company increased its repurchase program to a total of $200 million. In June, the company acquired Aqua Prop, a provider of cost-effective wet sand solutions.

Thanks for reading the PUMP Take Three, designed to give you three critical takeaways from PUMP’s earnings report.  Soon, we will present a second update on PUMP earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.