1. ProFrac is like Tesla for industrial well completion services, focusing on advanced, lower-emission, and electric hydraulic fracturing fleets, and vertically integrating manufacturing for superior efficiency.

2. ProFrac is like Amazon for hydraulic fracturing, vertically integrated to manufacture its own advanced, low-emission equipment and provide a full suite of well completion products and services, from sand to chemicals.

ProFrac (ACDC) provides the following major services and products:

• Stimulation Services: Offers hydraulic fracturing and related well completion services, utilizing a range of fleets from lower-emission conventional to electric-powered systems.
• Frac Sand (Proppant): Produces and sells frac sand from company-owned mines to customers for use in hydraulic fracturing operations.
• Completion Chemicals: Supplies a full suite of completion chemicals, including proprietary biodegradable technologies, necessary for the well completion process.
• Ancillary Well Completion Services: Provides complementary services such as frac design, logistics coordination, and real-time data reporting for operational and environmental insights.

ProFrac (ACDC) sells its services and products primarily to other companies. Based on the provided description, the company's major customers are:

• Leading upstream oil and gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources.

The company description does not list the names of specific customer companies or their stock symbols.

• U.S. Well Services (USWS)
• Flotek Industries (FTK)

Ladd Wilks - Chief Executive Officer

Ladd Wilks co-founded ProFrac Services in 2016 and has served as CEO since its inception. Prior to ProFrac, he was the Vice President of Logistics for Frac Tech Services before the business was sold in 2011. He also served as President of Breckenridge Geophysical in 2012 and has held various leadership roles in other oilfield service companies. Mr. Wilks also founded and holds a controlling interest in his own privately owned E&P company.

Austin Harbour - Chief Financial Officer

Austin Harbour joined ProFrac as Chief Financial Officer after working in the energy and power investment banking group at Piper Sandler Companies from 2021 to 2024, and previously from 2012 to 2015. During his career in investment banking, he focused on energy services and equipment, advising on significant M&A and restructuring transactions. Before joining Piper Sandler, Mr. Harbour served as the CFO of Superior Energy Services' North American business from 2020 to 2021. His experience also includes roles at Lazard Freres from 2015 to 2020 and Bank of America Merrill Lynch from 2011 to 2012.

Matthew D. Wilks - Executive Chairman & President

Matthew D. Wilks has served as Executive Chairman of ProFrac's board of directors since August 2021 and as President since October 2018. He previously held the position of Chief Financial Officer for ProFrac from May 2017 to August 2021. Mr. Wilks has also served as Vice President of Investments for Wilks Brothers since January 2012 and was the Vice President of Logistics for FTS International, Inc. (FTSI) from 2010 to 2012. He was also a member of the board of directors of Approach Resources, Inc., an E&P company.

Matthew Greenwood - Chief Commercial Officer

Matthew Greenwood joined ProFrac Services in 2017 and is responsible for directing sales, marketing, and commercial operations, in addition to serving on the ProFrac ESG board. He has 17 years of experience in oilfield services, beginning in 2004 with a Barnett Shale completions-based service company where he was promoted to General Manager in 2006. This company was subsequently purchased by SCF Partners in 2010, leading to the formation of Rockwater Energy Solutions.

Steven Scrogham - Chief Legal Officer, Chief Compliance Officer, and Corporate Secretary

Steven Scrogham joined ProFrac in 2023. He is responsible for the company's legal strategy, including transactional, litigation, governance, and compliance priorities. Before joining ProFrac, he spent 15 years at AbbVie Inc. and Abbott Laboratories, where he advised on securities, finance, and transactional matters.

The key risks to ProFrac's business include:

1. Dependence on the Cyclical Nature of the North American Unconventional Oil and Gas Industry: ProFrac's financial performance is directly tied to the capital spending of exploration and production (E&P) companies in the North American unconventional oil and natural gas sector. The energy industry is highly volatile and cyclical, influenced by fluctuations in commodity prices, production levels, and global economic conditions. A downturn in oil and gas prices or decreased E&P activity would significantly reduce demand for ProFrac's hydraulic fracturing and completion services, adversely impacting its revenue and profitability.
2. High Leverage and Debt Management: ProFrac's growth objectives, including its vertical integration strategy and acquisitions, are capital-intensive. The company carries significant indebtedness, which could limit its financial flexibility and competitive position, making it more vulnerable to adverse economic conditions. Managing this debt and maintaining sufficient liquidity are critical for its operational stability and ability to navigate market fluctuations.
3. Environmental and Regulatory Risks Coupled with High Capital Expenditure for Technology Upgrades: ProFrac operates in an industry subject to extensive and evolving federal, state, and local environmental regulations, particularly concerning hydraulic fracturing. While the company emphasizes its lower-emission and technologically advanced fleets, maintaining this competitive edge requires continuous, significant capital investment for upgrading existing fleets, deploying new electric-powered fleets, and integrating technologies like Engine Smart Controls (ESCs). The background explicitly mentions that fleets acquired in the FTSI Acquisition are older and less technologically advanced, potentially requiring additional maintenance and capital expenditures, or necessitating retirement and replacement to meet ESG objectives, which further adds to capital intensity and execution risk.

ProFrac (ACDC) operates in the significant North American hydraulic fracturing and proppant (frac sand) markets.

Hydraulic Fracturing Services

The global hydraulic fracturing market size was valued at approximately USD 58.49 billion in 2025 and is projected to reach USD 95.92 billion by 2033, demonstrating a Compound Annual Growth Rate (CAGR) of 6.2% from 2026 to 2033. Another estimate places the global market at USD 54 billion in 2023, expected to grow to USD 99.27 billion by 2032, with a CAGR of 7.0% from 2024 to 2032.

North America is a dominant region in this market. In 2025, North America held the largest share of the global hydraulic fracturing market, accounting for approximately 83.1% of the total revenue. The U.S. hydraulic fracturing services market alone was valued at USD 40.5 billion in 2024 and USD 40.3 billion in 2025. This regional dominance is attributed to extensive shale resources, advanced drilling technologies, and a favorable regulatory environment, particularly in prolific basins such as the Permian, Eagle Ford, Bakken, and Marcellus.

Proppant Production (Frac Sand)

The global frac sand market size was estimated at USD 7.82 billion in 2024 and is projected to reach USD 11.14 billion by 2033, growing at a CAGR of 4.1% from 2025 to 2033. Another report estimated the global frac sand market at USD 9.30 billion in 2024, with a projection to reach USD 28.35 billion by 2032, at a CAGR of 14.95%.

North America significantly leads the frac sand market. In 2024, the North America frac sand market was valued at USD 1.699 billion and is anticipated to reach USD 1.811 billion in 2025. The broader North America proppants market, which includes frac sand as its largest component, generated a revenue of USD 4.1566 billion in 2023 and was estimated at USD 4.96 billion in 2024. It is projected to reach USD 6.8999 billion by 2030. North America dominated the frac sand industry with over 55.0% revenue share in 2024. The United States specifically contributed 85.4% of the North America frac sand market share in 2024, driven by its vast shale reserves in regions like the Permian Basin, Eagle Ford, and Marcellus Shale. The development of in-basin frac sand supply, particularly in the Permian Basin, is a key trend, reducing transportation costs and improving operational efficiency.

ProFrac (ACDC) anticipates several key drivers for its future revenue growth over the next two to three years, stemming from its strategic focus on technology, operational efficiency, and market expansion.

1. Expansion and Enhanced Utilization of Environmentally Advantaged Fleets: ProFrac is committed to deploying and optimizing its lower-emission conventional and electric-powered hydraulic fracturing fleets. These fleets, which include those equipped with Clean Fleet® technology, are designed to appeal to customers focused on reducing greenhouse gas emissions and improving ESG profiles. The company expects these technologically advanced and more efficient fleets to capture increased market demand and maintain high utilization rates.

2. Growth in Proppant Production and Third-Party Sales: The company's proppant production segment demonstrated strong performance in the fourth quarter of 2025, with revenues materially increasing and a higher percentage of volumes sold to third-party customers. Ongoing development of in-basin Permian Basin frac sand resources, such as the West Munger facility, is expected to further boost production capacity and sales, especially given its strategic location near active drilling sites.

3. Strategic Market Expansion and Customer Wins in Key Basins: ProFrac is actively pursuing growth in specific regions, notably the Haynesville basin. Management has highlighted significant customer wins for both fracturing and sand services in this area, anticipating continued activity increases throughout 2026. This focused regional expansion is expected to diversify the company’s revenue base.

4. Leveraging Advanced Technological Innovations for Service Optimization: ProFrac recently introduced Machina, a new well optimization suite that integrates real-time measurement, analytics, and AI engineering agents. This technology is designed to enhance operational efficiency, optimize well completions, and potentially reduce perforation efficiency degradation, thereby offering a differentiated and higher-value service to customers and reinforcing customer loyalty.

Share Issuance

• In August 2025, ProFrac conducted a public offering of 18,750,000 shares of Class A common stock at $4.00 per share, generating approximately $75.0 million in gross proceeds and $72.1 million in net proceeds.
• As part of the USWS Acquisition completed in November 2022, ProFrac issued 12.9 million shares of its Class A Common Stock, valued at $282.1 million.
• In December 2022, ProFrac's acquisition of REV Energy Holdings, LLC for $140 million included $70 million in ProFrac Class B common shares as part of the consideration.

Inbound Investments

• In April 2025, Flotek Industries, Inc. acquired power generation assets and intellectual property from ProFrac GDM, LLC, a subsidiary of ProFrac, for $105 million.

Outbound Investments

• In March 2022, ProFrac acquired FTS International, Inc. (FTSI) for a purchase price of $405.7 million, which included $332.8 million in cash consideration.
• In November 2022, ProFrac acquired USWS for a total consideration including 12.9 million shares of Class A Common Stock (valued at $282.1 million) and $195.9 million in cash.
• ProFrac made significant investments in its proppant production capabilities, acquiring Performance Proppants for $475 million in cash in late 2022/early 2023 and SP Silica of Monahans for approximately $90 million in June 2022.

Capital Expenditures

• ProFrac projected capital expenditures for fiscal year 2026 to be between $155 million and $185 million.
• In the first quarter of 2025, cash capital expenditures were $53 million, a decrease from $63 million in the fourth quarter of 2024, with expenditures in Q4 2024 focused on reactivating fleets.
• In Q3 2025, ProFrac invested $34.3 million in capital expenditures, focusing on funding long-term assets and infrastructure, and reported cash capital expenditures of $37 million in Q4 2025.