U. S. Well Services, Inc. (USWS) Misses Q4 EPS by 27c, Revenues Miss

March 10, 2021 4:17 PM EST
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Price: $0.89 -4.3%

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U. S. Well Services, Inc. (NASDAQ: USWS) reported Q4 EPS of ($0.46), $0.27 worse than the analyst estimate of ($0.19). Revenue for the quarter came in at $48.1 million versus the consensus estimate of $49.4 million.

Full-Year and Fourth Quarter 2020 Highlights

  • Executed agreements with key customers to provide electric frac services on a contracted basis with three Clean FleetĀ® all-electric hydraulic fracturing fleets
  • Increased active fleet count to 5.7 fleets for the fourth quarter of 2020 and experienced higher fleet utilization as demand for frac services strengthened
  • Averaged 5.4 fully-utilized fleets for the full-year 2020, as compared to 8.8 fleets for the full-year 2019
  • Total revenue of $244.0 million in 2020 vs. $514.8 million in 2019
  • Net loss attributable to the Company of $235.7 million for the full-year 2020, as compared to $93.9 million for 2019. Excluding a $147.5 million non-cash impairment charge related to the carrying value of long-lived assets, net loss attributable to the Company was $88.1 million for 2020.
  • Adjusted EBITDA(1) for full-year 2020 was $31.1 million, or $5.8 million of Adjusted EBITDA per fully-utilized fleet. Excluding $12 million of non-cash charges related to doubtful collections of Accounts Receivable, Adjusted EBITDA was $43.1 million, which equates to $8.0 million per fully-utilized fleet(2). This compares to $103.2 million of Adjusted EBITDA and $11.7 million of Adjusted EBITDA per fully-utilized fleet for the full-year 2019. Following a change in accounting estimate made during the first quarter of 2020, the Company began expensing fluid ends. Adjusted EBITDA as reported was $118.0 million for the full-year 2019, which reflects the Company's previous policy of capitalizing fluid end costs.
  • Averaged 5.3 fully-utilized fleets for the fourth quarter of 2020, as compared to 4.2 for the third quarter of 2020
  • Total revenue of $48.1 million for the fourth quarter of 2020, compared to $44.0 million for the third quarter of 2020
  • Net loss attributable to the Company of $29.2 million for the fourth quarter of 2020 vs. $15.9 million for the third quarter of 2020
  • Adjusted EBITDA was $1.8 million for the fourth quarter of 2020. Excluding a non-cash charge related to doubtful collections of Accounts Receivable, Adjusted EBITDA(1) was $4.8 million for the fourth quarter 2020, or $3.6 million of Annualized Adjusted EBITDA per fully-utilized fleet, as compared to $8.1 million of Adjusted EBITDA, or $7.7 million of Annualized Adjusted EBITDA per fully-utilized fleet for the third quarter 2020
  • Total liquidity, consisting of cash and availability under the Company's asset-backed revolving credit facility, was $14.0 million as of December 31, 2020

"I am proud of what the U.S. Well Services team accomplished in 2020 despite facing severe, unprecedented market challenges," commented Joel Broussard, the Company's President and CEO. "The Company's proactive response to the COVID-19 pandemic served to preserve liquidity and maintain positive Adjusted EBITDA throughout the year. Our team's unwavering commitment to efficiency, innovation, safety and execution enabled us to deliver results for our customers amidst market turbulence, and positioned our Company for success as the completions services market recovers in 2021.

"We continue to see a recovery in demand for hydraulic fracturing services, and in particular for next-generation electric fracturing fleets. As a pioneer and market leader in the electric fracturing market, U.S. Well Services is working diligently with its customers to advance the industry and usher in a new era of cleaner, safer and more efficient completions."

Outlook

Throughout the fourth quarter, a recovery in economic activity and crude oil prices has driven an increase in demand for completions services. Although activity levels have recovered significantly relative to the low levels witnessed during the first half of 2020, pricing for hydraulic fracturing services remains depressed. However, U.S. Well Services expects pricing to begin to recover during in the second half of 2021, driven by a combination of attrition of the U.S. fracturing fleet and the continued recovery in demand for crude oil.

We believe our industry is rapidly approaching an inflection point, as E&P customers are increasingly seeking not only the most efficient, but also the most environmentally-friendly hydraulic fracturing solutions. We believe this secular trend uniquely positions U.S. Well Services to benefit from the ongoing market recovery. We possess not only a portfolio of next-generation electric frac fleets that offer industry leading emissions reduction capabilities, but also a demonstrated track record for successfully operating electric fleets and developing new intellectual property.

We continue to experience strong demand for our electric fracturing services, and believe that commercial opportunities exist that would support the expansion of our electric fleet during 2021.

For earnings history and earnings-related data on U. S. Well Services, Inc. (USWS) click here.



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