CISCO,
Texas, April 12, 2023 /PRNewswire/ -- The Wilks
Family, the largest shareholder of ProFrac Holdings Corp. (NASDAQ:
ACDC), today sent an open letter to shareholders:
The full text of the letter is set out below.
April 12, 2023
Dear Fellow Shareholders,
In 2016, we formed ProFrac with the vision of creating a
pressure pumping business capable of delivering best-in-class
service quality and consistent profitability through business and
economic cycles. We believe the opportunity for ProFrac is
the best we have seen in any of our experiences in the oil and gas
industry. By positioning it to consolidate the profit margin
capable of being earned across the entire pressure pumping value
chain, ProFrac has the opportunity to fully participate in the
value embedded in the frac value chain. Our approach to the
business is differentiated, and is already becoming evident in
results.
ProFrac has quickly become the industry leader in fleet
profitability by building what we believe is the best equipment and
vertically integrating its supply chain. As the company
expands its vertical integration strategy and sells a greater share
of its sand, logistics and chemicals along with its pressure
pumping services, we believe ProFrac has the potential to generate
in excess of $50 million of gross
profit per fleet, annually. Realizing this opportunity
remains ProFrac's primary focus, and our commitment to helping
ProFrac execute its strategic vision is steadfast, as evidenced by
recent actions taken by the Wilks family and other insiders.
Beginning today, ProFrac will enter the next phase of its
evolution as a publicly traded company. The Wilks family is
pleased to announce that they, along with all other Class B
shareholders, have exchanged all of their outstanding Class B
common shares for Class A common shares. This exchange will
streamline ProFrac's corporate structure through the
elimination of the Company's Up-C structure.
This change in corporate structure not only clarifies the
alignment between the interests of the Wilks family and ProFrac's
other shareholders, but also serves to reduce the complexity and
cost associated with maintaining the Up-C structure. Going
forward, we believe ProFrac will benefit from reduced compliance
and reporting costs as well as faster preparation and delivery of
financial statements. Finally, with a single ownership class,
we believe ProFrac's chances for index inclusion are improved,
potentially broadening the universe of potential shareholders of
the company.
In recent days, ProFrac insiders have further demonstrated their
support for the company and conviction in the strength of the
business. The Wilks family and a member of the ProFrac Board
of Directors have collectively purchased 927,995 shares in the open
market. We believe these share purchases, along with the
corporate reorganization, illustrate our unwavering commitment to
ProFrac and our goal of creating the industry's leading pressure
pumping business.
As we look forward, we are excited for ProFrac to continue
executing its strategic vision. The success of the company's
efforts will be measured by the financial performance that it
generates and the returns it delivers to shareholders. With
this in mind, we are encouraging ProFrac to deliver a plan to
return capital to shareholders.
We believe the best is yet to come for ProFrac and its
investors, and we look forward to celebrating continued innovation,
execution and performance.
"No matter what, you've got to always follow your passion in
life and always keep learning." - Harold
Hamm
Sincerely,
The Wilks Family
Contact:
Javier Rocha
817.850.3600
javier.rocha@wilksbrothers.com
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SOURCE The Wilks Family