-- ProFrac (ACDC) reported Q1 earnings Thursday and posted lower first-quarter operating results from a year earlier as weather disruptions affected activity early in the quarter.
The energy sector has also been grappling with heightened volatility due to ongoing geopolitical tensions.
"Geopolitical events continue to influence the broader energy landscape," ProFrac Executive Chairman Matt Wilks said, adding that the Middle East conflict has created supply disruptions and severely impacted crude oil and liquefied natural gas infrastructure.
Wilks said the prolonged closure of the Strait of Hormuz is "catalyzing a global shift in sentiment in favor of energy security."
Simultaneously, industry activity has been "running below levels needed to maintain flat shale production," according to Wilks.
"As operator activity continues to accelerate, we see an increasingly constructive supply-demand backdrop for services in North America, especially as we enter the second half of 2026," he said.
ProFrac expects stronger Q2 stimulation services activity as operator demand improves and it tightens its hydraulic fracturing calendar, driven by higher activity levels.
The company expects lower Q2 proppant volumes due to operational issues and unplanned downtime, though completion activity is increasing.
"While industry completion activity is expected to increase, due to operational issues and unplanned downtime, the Company [ProFrac] expects sequentially lower volumes in second quarter of 2026," it said.
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