Keane Group sees Q3 revenue up 45%-60% sequentially
Approximately 60% of this sequential growth is forecasted to be driven by contribution from five active hydraulic fracturing fleets acquired during the RockPile transaction, while the remaining 40% will be driven by higher pricing, greater efficiencies and the deployment of an additional hydraulic fracturing fleet. Keane expects to exit the Q3 with 25 active hydraulic fracturing fleets, including those acquired during the RockPile transaction. Leading edge annualized Adjusted Gross Profit per fleet is expected to increase to the mid-to-high teens, up from approximately $12M-$13M in May, driven by constructive supply and demand dynamics. Based on current market conditions, Keane expects its full portfolio of hydraulic fracturing fleets to be deployed and accrue toward these leading edge margins ratably through the end of 2017. Cementing and workover operations acquired with the RockPile transaction together represent a current annual revenue run rate of $35M-$40M, with 10-15% gross margins. Keane intends to further evaluate these businesses with regards to opportunities for optimization and growth, including the potential to activate its idle cementing assets.