Oklahoma City’s Mammoth Energy Services managed to turn things around in the third quarter of the year, reporting actual net income of $3.4 million or 7 cents a share compared to a second quarter net loss of $15.2 million and 33 cents a diluted share.
The $3.4 million in net income also compared to a nearly $36 million or 79 cents a share net loss for the three months that ended September 30, 2019.
Mammoth’s total revenue for the third quarter this year was $70.5 million which was up 17% from the more than $60 million reported at the end of the second quarter. However, it was down 38% from the more than $113 million reported in total revenue a year earlier.
Arty Straehla, Mammoth’s Chief Executive Officer, stated, “The third quarter financial results showed the earnings power of our infrastructure segment with gross margin increasing to 34% and Adjusted EBITDA, excluding interest on trade accounts receivable, in this segment growing more than 350% quarter-over-quarter.”
He said the company’s initiatives laid a solid foundation for growth in the coming years.
“While the oilfield portion of our service offerings continue to experience significant challenges, we continue to maintain our oilfield equipment and plan to be ready to ramp up our oilfield service offerings when oilfield demand, pricing and margins strengthen.”
Mammoth’s infrastructure services division contributed revenue of $44.0 million, or approximately 62% of Mammoth’s total revenue, for the three months ended September 30, 2020, an increase of 44% from $30.6 million for the three months ended June 30, 2020 and an increase of 18% from $37.3 million for the three months ended September 30, 2019 reflecting a strong market.
As of September 30, 2020, Mammoth had approximately 120 crews operating in the continental United States.
As of October 28, 2020, Mammoth had cash on hand of $12.4 million and outstanding borrowings under its revolving credit facility of $88.4 million. As of October 28, 2020, the Company had $28.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.3 million of outstanding letters of credit.
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