Significant losses reported company-wide by Mammoth Energy

 
Oklahoma City-based Mammoth Energy Services reported losses in both the fourth quarter 2019 and for all of the year. Earnings for the company dropped in the fourth quarter of 2019 compared to the previous quarter and also to the fourth quarter of 2018. For the year, total revenue was nearly one-half what it was in the previous year.
Every one of Mammoth’s divisions, Pressure Pumping Services, Natural Sand Proppant Services, Drilling Services, Crude Hauling and others reported losses into the hundreds of millions of dollars.
As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019. The Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in the third quarter of 2019.
Total revenue was $67.6 million for the three months ended December 31, 2019, down from $113.4 million for the three months ended September 30, 2019 and down from $278.2 million for the three months ended December 31, 2018. Total revenue was $625.0 million for the year ended December 31, 2019, down from $1.7 billion for the year ended December 31, 2018.
Net loss for the three months ended December 31, 2019 was $60.8 million, or $1.35 per fully diluted share, as compared to net loss of $35.7 million, or $0.79 per fully diluted share, for the three months ended September 30, 2019 and net income of $68.2 million, or $1.51 per fully diluted share, for the three months ended December 31, 2018. Net loss for the year ended December 31, 2019 was $79.0 million, or $1.76 per fully diluted share, as compared to net income of $236.0 million, or $5.24 per fully diluted share for the year ended December 31, 2018.
Adjusted net loss  for the three months ended December 31, 2019 was $26.3 million, or $0.58 per fully diluted share, as compared to adjusted net loss of $29.2 million, or $0.65 per fully diluted share, for the three months ended September 30, 2019 and adjusted net income of $72.3 million, or $1.60 per fully diluted share, for the three months ended December 31, 2018. Adjusted net loss for the year ended December 31, 2019 was $38.0 million, or $0.85 per fully diluted share, as compared to adjusted net income of $262.3 million, or $5.83 per fully diluted share for the year ended December 31, 2018.
Adjusted EBITDA was a loss of $10.3 million for the three months ended December 31, 2019, as compared to a loss of $3.8 million for the three months ended September 30, 2019 and a positive $84.3 million for the three months ended December 31, 2018. Adjusted EBITDA was a positive $77.3 million for the year ended December 31, 2019, down from $547.3 million for the year ended December 31, 2018.
“The hiring of a new president for our infrastructure division in November 2019 has stabilized operations, attracted experienced industry leaders to key management positions and improved the performance of the business. With this management team in place, we are confident we can grow our infrastructure business given that demand for the services we offer outstrips supply,” said Arty Straehla, Mammoth’s Chief Executive Officer.
Mammoth’s infrastructure services segment reported a drop of nearly $800 million in the past year, a drastic decline that led to the company’s suspension of contract drilling operations.
As of December 31, 2019, Mammoth had a total of approximately 140 transmission and distribution crews in the continental United States.
As of December 31, 2019, Mammoth had cash on hand totaling $5.9 million and outstanding borrowings under its revolving credit facility of $80.0 million. As of December 31, 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 $102.0 million.
On February 26, 2020, the Company entered into a second amendment to its revolving credit facility to, among other things, (i) amend its financial covenants, as outlined below, (ii) decrease the maximum revolving advance amount from $185 million to $130 million, (iii) decrease the amount that the maximum revolving advance can be increased to (the accordion) from $350 million to $180 million, (iv) increase the applicable margin ranges from 2.00% to 2.50% per annum in the case of the alternate base rate and from 3.00% to 3.50% per annum in the case of LIBOR, (v) increase the aggregate amount of permitted asset dispositions, and (vi) permit certain sale-leaseback transactions.
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