Mammoth Energy lays out financial possibilities in 2021

Oklahoma City’s Mammoth Energy Services is not suggesting it will fail in 2021, but it told investors in an annual report filing with the Securities and Exchange Commission a lot depends on industry conditions and the company’s financial results.
The filing came after Mammoth last week reported total revenue for 2020 was down 50% from the previous year.
It used a lot of the use of the word “may” in describing its financial conditions, suggesting at one point, “We may be unable to generate sufficient cash from operations and other capital resources to meet our operating needs.”
As of Feb. 24, 2021, Mammoth had approximately $42 million of available borrowing capacity under its revolving credit facility.
“—any disruptions or continuing volatility in the global financial markets may lead to an increase in interest rates or a contraction in credit availability impacting our ability to finance our operations,” continued the company’s filing.
Mammoth admitted its actual capital expenditures for 2021 could exceed its capital expenditure budget which could force the company to seek additional sources of capital including debt financing, joint venture partnerships and sales of assets.
“We may not be able to obtain any such alternative source of capital. We may be required to curtail or eliminate contemplated activities,” stated the company. “We may incur substantial indebtedness to finance future acquisitions and also may issue equity, debt or convertible securities in connection with such acquisitions.”
Some of the company’s abilities to remain viable are debts owed to the company.
Mammoth stated it is still owed $227 million by the bankrupt Power Authority in Puerto Rico where the company performed power restoration work following the September 2017 Hurricane Maria.
The company is also owed nearly $47 million by Gulfport Energy, an Oklahoma City firm that filed Chapter 11 bankruptcy in the fall of 2020.
As of February 24, 2021Mammoth had cash on hand of $21.4 million and outstanding borrowings under its revolving credit facility of $75.0 million.
Click here to view Mammoth’s filing with SEC