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ProFrac Holding Corp. (NASDAQ:ACDC) announced the appointment of Michael Henry as the company's principal accounting officer. This decision, made by the board of directors on September 25, 2024, comes as part of ProFrac's ongoing executive management structuring.
Michael Henry, 52, brings a wealth of experience to ProFrac, having previously held the role of senior vice president and chief accounting officer at ProFrac Holdings II, LLC, a wholly-owned subsidiary of ProFrac Holding Corp., from June 7, 2022, until his recent appointment. His prior experience includes positions at Basic Energy Services, Inc., FTS International (NYSE:FTSI) Services, LLC, and RadioShack Corporation. Henry is a graduate of Texas Christian University, holding a BBA in Accounting.
In line with his new role, Henry has entered into an amended employment agreement with ProFrac Holding Corp. His current base salary is set at $325,000 annually, with eligibility to participate in various incentive compensation programs, including the 2022 Long Term Incentive Plan. The terms of the employment agreement stipulate a severance package that includes a year's base salary and accrued PTO in the event of termination without cause by ProFrac Holdings.
The appointment of Henry aligns with ProFrac's strategic focus on strengthening its leadership team and enhancing financial oversight. The company, headquartered in Willow Park, Texas, is known for its services in the oil and gas field sector, under the standard industrial classification code 1389.
In other recent news, ProFrac Holding Corp demonstrated a strong Q2 performance amid market challenges. The company reported revenues of $579 million and adjusted EBITDA of $136 million, showing a 23% margin, despite a 15% decline from the previous quarter. ProFrac achieved record efficiency in its pressure pumping segment and increased its market share in West Texas, a significant U.S. land market for completions.
The recent acquisition of Advanced Stimulation Technologies is expected to enhance ProFrac's earnings and market position. The company generated $74 million in free cash flow and is actively exploring options to meet rising customer demand for power generation. Despite current challenges in natural gas regions, ProFrac anticipates a volume recovery in the third quarter.
Furthermore, ProFrac has plans to incur $150-200 million in maintenance capital expenditures and approximately $100 million for growth-related capital expenditures in 2024. While the company acknowledges weakness in natural gas regions affecting performance, it remains cautiously optimistic about the gas market in the second half of the year and is preparing for a flat environment with disciplined cost management.
InvestingPro Insights
ProFrac Holding Corp.'s (NASDAQ:ACDC) recent appointment of Michael Henry as principal accounting officer comes at a critical time for the company. According to InvestingPro data, ACDC's revenue for the last twelve months as of Q2 2024 stood at $2,224.2 million, with a notable revenue decline of 27.25% over the same period. This context underscores the importance of strong financial leadership and accurate accounting practices.
Despite the revenue challenges, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook aligns with the company's decision to strengthen its financial team. However, investors should note that ACDC is not currently profitable over the last twelve months and does not pay a dividend to shareholders.
The company's market capitalization of $1,090 million and a price-to-book ratio of 1.01 indicate that the market is valuing the company close to its book value. This could be significant as ProFrac navigates through its current financial situation and implements strategic changes.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in understanding ProFrac's financial position and future prospects.
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