ProFrac Holding Corp. Leases Disclosure
8. LEASES
Our leasing arrangements consist of both operating and finance leases. We are a lessee on several leases of real estate, administrative offices, manufacturing and maintenance facilities, heavy duty equipment, light duty vehicles, tractors, and power generation equipment. We do not have any material lessor arrangements.
Immediately subsequent to the AST acquisition, AST conveyed to the Wilks Parties substantially all of AST’s owned real property in exchange for cash consideration of approximately $23 million. We now lease such real property from the Wilks Parties in exchange for aggregate monthly lease payments totaling $30.2 million through May 2034. The cash consideration received was equal to the carrying value of these assets. This lease is accounted for as an operating lease.
In December 2024, we sold certain stimulation service equipment to the Wilks Parties in exchange for cash consideration of approximately $40.0 million. We now lease such equipment from the Wilks Parties in exchange for aggregate monthly lease payments totaling $44.8 million through December 2028. The cash consideration received was $26.5 million more than the carrying value of these assets. Because this sale was to an affiliate under common control, we accounted for the $26.5 million as an equity transaction recorded as a deemed contribution within our consolidated statements of changes in equity. This lease is accounted for as an operating lease.
Our finance lease balances are as follows:
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December 31, |
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Consolidated Balance Sheet Location |
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2025 |
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2024 |
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Assets: |
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Finance lease right-of-use assets |
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$ |
14.4 |
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$ |
19.4 |
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Liabilities: |
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Current portion of finance lease liabilities |
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$ |
5.5 |
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$ |
7.7 |
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Finance lease liabilities |
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$ |
9.3 |
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$ |
12.2 |
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The components of our lease costs are as follows:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Operating lease costs |
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$ |
60.2 |
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$ |
36.9 |
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$ |
45.8 |
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Short-term lease costs |
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27.0 |
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27.7 |
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32.3 |
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Finance lease costs: |
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Amortization of right-of-use assets |
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7.6 |
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7.3 |
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5.1 |
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Interest on lease liabilities |
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1.0 |
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1.2 |
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1.0 |
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Total lease costs |
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$ |
95.8 |
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$ |
73.1 |
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$ |
84.2 |
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The weighted-average remaining lease term and discount rates used in the measurement of our right-of-use assets and lease liabilities are as follows:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Weighted-average remaining lease term: |
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Operating leases |
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4.4 years |
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5.9 years |
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6.4 years |
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Finance leases |
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6.6 years |
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6.3 years |
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3.7 years |
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Weighted average discount rate: |
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Operating leases |
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8.8 |
% |
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8.1 |
% |
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5.9 |
% |
Finance leases |
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6.7 |
% |
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5.5 |
% |
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7.8 |
% |
The following table includes other supplemental information for our leases:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Cash paid for amounts included in the measurement of lease obligations: |
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Operating leases |
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$ |
61.6 |
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$ |
37.6 |
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$ |
46.4 |
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Finance leases |
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$ |
8.9 |
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$ |
8.4 |
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$ |
6.2 |
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Right-of-use assets obtained in exchange for new lease obligations: |
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Operating leases |
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$ |
34.7 |
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$ |
103.4 |
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$ |
11.9 |
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Finance leases |
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$ |
2.6 |
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$ |
9.9 |
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$ |
8.6 |
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As of December 31, 2025, the future maturities of our lease liabilities are as follows:
Fiscal Year |
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Operating Leases |
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Finance Leases |
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2026 |
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$ |
56.3 |
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$ |
6.2 |
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2027 |
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50.4 |
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3.8 |
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2028 |
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33.1 |
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1.1 |
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2029 |
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13.5 |
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0.6 |
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2030 |
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12.4 |
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0.6 |
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Thereafter |
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24.2 |
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5.7 |
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Total lease payments |
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189.9 |
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18.0 |
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Less imputed interest |
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(29.6 |
) |
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(3.2 |
) |
Total lease liabilities |
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$ |
160.3 |
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$ |
14.8 |
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Historical Timeline
| Fiscal Year | Filed | |
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| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 30, 2023 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.