Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate change
• emissions reduction
• environmental sustainability

Environmental Achievements

• Reduced idle time by as much as 90% through the use of engine standby controllers (ESCs), reducing fuel consumption and GHG emissions by as much as 24%
• Installed ESCs in seven fleets, reducing truck tractor count by 125 and anticipating total cost savings of approximately $300,000 per year per fleet
• Constructing electric-powered hydraulic fracturing fleets equipped with Clean Fleet® technology, expected to reduce carbon emissions by up to 33% per fleet annually

Social Achievements

• Maintained minimal turnover of middle to senior management during the downturn through various employee morale and loyalty programs
• Achieved a Total Reportable Incident Rate (TRIR) of 0.42 for the year ended December 31, 2021, compared to the industry average of 0.70

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Competition in the oilfield services industry
• Customer concentration
• Counterparty credit risk
• Water availability for E&P activities
• Reliance on key employees
• Negative investor sentiment towards the oil and gas industry
• Capital intensity of operations
• General economic conditions
• Indebtedness and liquidity needs
• Debt agreement restrictions
• Industry hazards
• Inaccuracies in mineral reserve estimates
• Trucking regulations
• Cybersecurity risks
• Intellectual property protection
• Legacy fleet capacity requiring increased maintenance
• Climate change risks
• Governmental regulation of hydraulic fracturing
• Competition for acquisition opportunities
• Inflation

Mitigation Strategies

• Vertically integrated business model and supply chain management
• Strategic investments in businesses providing ancillary products and services (West Munger, Flotek, FHE)
• Acquire, Retire, Replace™ strategy for fleet modernization
• In-house manufacturing capabilities
• Focus on high-performing, technologically advanced fleets
• ESG-conscious service offering
• Bundled services to mitigate supply chain disruptions
• Employee retention programs
• Safety initiatives
• Conservative balance sheet and financial policies
• Debt reduction
• Insurance
• Cybersecurity measures
• Intellectual property protection strategies
• Fleet retirement and upgrade plans
• Emissions reduction technologies
• Compliance with environmental regulations
• Due diligence in acquisitions
• Pricing strategies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vertical integration
• Strategic investments in key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts towards renewable energy
• Investor and lender pressure to reduce carbon emissions

Opportunities

• Development of energy-efficient products and services
• Increased demand for low-emission fleets

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001 2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric-powered hydraulic fracturing fleets
• Engine standby controllers (ESCs)
• Tier IV dual fuel systems

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• climate change
• emissions reduction
• environmental sustainability
• ESG

Environmental Achievements

• Reduced idle time by as much as 90% through the use of engine standby controllers (ESCs), reducing fuel consumption and GHG emissions by as much as 24%
• Installed ESCs in seven fleets, reducing truck tractor count by 125 and anticipating total cost savings of approximately $300,000 per year per fleet.
• Constructing electric-powered hydraulic fracturing fleets equipped with Clean Fleet® technology, expected to reduce carbon emissions by up to 33% per fleet annually.

Social Achievements

• Maintained ongoing operational integrity of equipment during downturn, implemented back-office optimization projects, completed in-house R&D of advanced power end and fluid-end designs, and added over 179 dual fuel kits to Tier IV engines.
• Minimal turnover of middle to senior management at corporate and district levels, including retaining all district managers.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and geopolitical events.
• Obsolescence of significant hydraulic fracturing horsepower in the market.
• Competition in the oilfield services industry.
• Increased trucking regulations.
• Cyber security risks.
• Climate change and related regulatory initiatives.

Mitigation Strategies

• Vertically integrated business model and supply chain management.
• Acquire, Retire, Replace™ strategy for growing, maintaining, and modernizing fleets.
• Investment in businesses providing ancillary products and services (West Munger, Flotek, FHE).
• Focus on technologically advanced, low-emission fleets.
• Implementation of enhanced protective measures against cyber security risks.
• Commitment to returns-driven, environmentally-advantaged investments and technology to support further emissions reduction and greater operational efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vertical integration of key completion commodities, such as chemicals and sand.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, storms, floods, droughts

Transition Risks

• Regulatory changes, market shifts towards alternative energy sources.

Opportunities

• Development of energy-efficient products and services (electric fleets).

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001 2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric-powered hydraulic fracturing fleets, ESCs, Tier IV dual fuel systems.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• GHG emissions reduction
• Sustainable development of natural resources

Environmental Achievements

• Upgrading approximately ten engines per month from Tier II to Tier IV DGB.
• Fully deployed first electric fleet and have four additional electric fleets under construction

Social Achievements

• Total Reportable Incident Rate (“TRIR”) of 0.59 for the year ended December 31, 2022, including our manufacturing division, as compared to the industry average of 0.70
• Provides employees the option to participate in health and welfare plans, including medical, dental, life, accidental death and dismemberment and short-term and long-term disability insurance plans.
• Offers a number of health and wellness programs, including telemedicine, health screens and fitness reimbursement as well as access to the Employee Assistance Program

Governance Achievements

• Established an internal ESG committee with the goal of producing a corporate sustainability report

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Increased regulatory scrutiny related to GHG emissions and other ESG factors
• Competition for skilled labor
• Negative investor sentiment towards the oil and gas industry
• Cybersecurity risks

Mitigation Strategies

• Vertical integration of key supply chains
• Investment in greener, next-generation fleet technology
• Focus on attracting, engaging, developing, retaining and rewarding top talent
• Maintaining a conservative balance sheet
• Implementing enhanced security measures

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions and natural disasters

Transition Risks

• Increased GHG regulation
• Decreased demand for fossil fuels
• Fewer oil and gas permits and licenses

Opportunities

• Development of energy-efficient products and services (e.g., electric fleets)

Sustainable Products & Innovation

• Electric-powered hydraulic fracturing fleets
• Tier IV DGB frac fleets

Environmental Metrics

ESG Focus Areas

• Reducing fuel costs
• Minimizing emissions

Environmental Achievements

• Deployment of ProFrac’s first internally manufactured electric fleet, demonstrating high pumping rates and pressure with minimal fluctuation and using cheaper, cleaner-burning natural gas.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Under-market contract terms for acquired U.S. Well Services assets and under absorption due to overhead.
• Continued cost pressures on underlying raw materials in the Manufacturing segment.
• Lower utilization of sand mines due to maintenance downtime and lower average selling price per ton in the Proppant Production segment.

Mitigation Strategies

• Focusing on bundling opportunities, efficiency improvements, cost synergies, and other strategies to improve profitability of U.S. Well Services fleets.
• Accelerating Tier IV dual fuel upgrade program.
• Investing in reducing the number of fleets waiting for maintenance and establishing a robust swing program to reduce downtime.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric fleets

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions reduction
• Vertical integration

Environmental Achievements

• Focus on employing new technologies to significantly reduce greenhouse gas emissions and increase efficiency in hydraulic fracturing.

Climate Goals & Targets

Environmental Challenges

• Optimizing the Company’s capital structure and maximizing the value of its Proppant Production segment (Alpine Silica).

Mitigation Strategies

• Evaluating strategic options for Alpine Silica (public offering, sale, merger, recapitalization).
• $50 million equity investment from the Wilks Family to reduce indebtedness and facilitate a potential separation of Alpine Silica.

Supply Chain Management

Climate-Related Risks & Opportunities