Mammoth Energy Services, Inc. saw drops in revenue in nearly every one of its sectors of operations from the second to the third quarter of 2019 and compared to a year ago. The losses were not only reflective of what’s happening in the oil and gas industry but forced the company to suspend some of its operations.
The Oklahoma City company reported a net loss in the third quarter of $35.7 million or 79 cents a diluted share on top of the second quarter net loss of $10.9 million and 24 cents a share.
Total revenue was $113.4 million for the three months ended September 30, 2019, down from $181.8 million for the three months ended June 30, 2019 and down from $384.0 million for the three months ended September 30, 2018
Adjusted EBITDA was $3.8 million for the three months ended September 30, 2019, down from $8.6 million for the three months ended June 30, 2019 and down from $183.6 million for the three months ended September 30, 2018.
Arty Straehla, Mammoth’s Chief Executive Officer, stated, “Given the current state of the oilfield services market, we continue to look for investment opportunities in the industrial sector that enhance our current service offerings and further diversify our cash flow.”
As of September 30, 2019, Mammoth had a total of approximately 140 transmission and distribution crews in the continental United States. Revenues for the Company’s infrastructure operations in the continental United States increased approximately 21% from $30.9 million for the three months ended June 30, 2019 to $37.3 million for the three months ended September 30, 2019.
The company’s Pressure Pumping Services division reported a nearly $40 million drop in revenues from the second to the third quarter and from revenues reported a year ago. Its workload was also down as the division completed 783 stages in the third quarter compared to 1,717 in the second quarter.
Mammoth’s natural sand proppant division also reported a $40 million decline in quarterly revenues compared to the second quarter 2019 and third quarter 2018 revenues. The company said it experienced a 44 percent decline in the amount of sand sold in the just-completed quarter compared to the second quarter of the year. Compared to the third quarter of 2018, the decline was 24 percent.
Mammoth also saw a $28 million drop in revenues from its other services including contract land and directional drilling, coil tubing, pressure control, flowback, cementing, acidizing, equipment rentals, crude oil hauling and remove accommodations. But the drop in revenues reached nearly $36 million compared to the third quarter of 2018.
The decline forced the company to shut down its cementing and acidizing and flowback operations in the third quarter of 2019.
As of September 30, 2019, Mammoth had cash on hand totaling $9.6 million and outstanding borrowings under its revolving credit facility of $80.0 million. As of September 30, 2019, the Company had $96.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $8.7 million of outstanding letters of credit, resulting in total liquidity of approximately $105.7 million. As of November 5, 2019, the Company had cash on hand of $9.7 million and outstanding borrowings under its revolving credit facility of $80.0 million.
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