The Fort Worth-based hydraulic fracturing company FTS International has reported a 77% sequential increase in adjusted pretax earnings in the second quarter to $13.8m and is back to generating cash following a large working capital build in the first quarter.
The company had 11.8 fully-utilized fleets, same as in the first quarter, and achieved an increase in stages and pumping hours per fully-utilized fleet due to an increase in pumping hours per day. Annualized adjusted pretax earnings per fully-utilized fleet increased to $4.7m in the second quarter, compared to $2.6m in the first quarter. “We’re on track to grow this figure in the back half of the year due to pricing improvements and the continued outstanding performance of our crews,” said CEO Michael Doss.
FTS has reached an agreement with a large independent E&P company to build a new fleet outfitted with Cat’s Tier 4 Dynamic Gas Blending (DGB) engines. The new fleet, which FTS will assemble in-house, is expected to cost approximately $26m. The company expects to complete and place the new fleet into service in early 2022.
FTS exited the second quarter with 13 active fleets and remain at that number today. “Our active dual fuel fleet count remains at seven fleets, and we continue to monitor customer demand for additional dual fuel conversions, which we can deploy quickly and cost effectively. The rise in diesel prices this year has driven greater interest in this capability as a way to reduce fuel costs,” said Doss.
Stages per fully-utilized fleet increased 7% sequentially to 641 in the second quarter from 599 in the first quarter. FTS fleets pumped an average of 16.9 hours per pumping day in Q2, a new record for the company. This reflects a 6% sequential increase from the first quarter, and a 17% increase over the second quarter of 2020. Average pump time per stage remained relatively flat in the second quarter at approximately 123 minutes, compared to approximately 125 minutes in the first quarter.
On the new Tier 4 Dynamic Gas Blending Fleet, CEO Michael Doss said: “Today, we believe that Cat’s Tier 4 DGB engines are the most proven, economic, and versatile solution that reduces completion costs and emissions, while providing best-in-class efficiency. The DGB engine supports our returns-focused investment strategy, fits well within our in-house refurbishment operations, will integrate easily into our fleet automation systems, and is supported by a mature supply chain with third-party expertise.”
For more information visit: www.ftsi.com