Improved earnings along with losses for Mammoth Energy

Mammoth Energy Services, Inc. - Mammoth Energy Services, Inc.

 

The day after Mammoth Energy Services, Inc. suffered a 22% drop in trading of its shares, the Oklahoma City company revealed  third quarter financial earnings were up but so were its losses.

The firm reported total revenue of $57.5 million compared to $70.5 million from a year earlier and also more than the $47.4 million in the second quarter 2021.

Still, net loss for the third quarter was $40.9 million or 88 cents a share compared to $3.4 million and 7 cents-a-share net income in the third quarter of 2020. The net loss for the third quarter grew from a $34.8 million of 75 cent a share loss that the firm endured in the second quarter of this year.

 

Adjusted EBITDA was $29.7 million for the third quarter of 2021, as compared to $22.1 million for the same quarter last year and $5.5 million for the second quarter of 2021. During the third quarter of 2021, Mammoth recognized expense of $32.6 million related to its settlement with Gulfport Energy Corporation. Excluding this non-recurring expense, adjusted EBITDA was $2.9 million for the third quarter of 2021.

It was enough improvement to leave leadership encouraged.

Arty Straehla – Mammoth Energy | Rotary Club of Oklahoma City

“We are pleased with the positive trajectory throughout our business segments during the third quarter compared to the second quarter, which led to higher revenue and an improved bottom line,” said Arty Straehla, Chief Executive Officer of Mammoth.

“We are also encouraged by the positive trends in our infrastructure business in the third quarter, including increased storm work relative to the second quarter, a new fiber maintenance and installation contract and increased bidding activity, as well as internal personnel changes that are gaining traction in this segment.”

“In our oilfield businesses, improved commodities pricing continues to contribute to positive industry movement and increased equipment utilization as we ramped up a second hydraulic fracturing fleet during the quarter. In our sand business, we continue to see increased market activity.”

Mammoth Energy Services says infrastructure business 'turned a corner'

Mammoth’s infrastructure services division contributed revenue of $23.5 million, or approximately 41% of Mammoth’s total revenue, for the third quarter of 2021, as compared to $43.6 million for the same quarter last year and $17.2 million for the second quarter of 2021.

Mammoth’s well completion services division contributed revenue of $22.7 million on 688 stages for the third quarter of 2021, as compared to $15.8 million on 449 stages for the same quarter last year and $17.4 million on 520 stages for the second quarter of 2021.

Natural Sand and Proppant Production Gallery - Mammoth Energy Services, Inc.

Mammoth’s natural sand proppant services division contributed revenue of $8.4 million for the third quarter of 2021, as compared to $6.0 million for the same quarter last year and $6.9 million for the second quarter of 2021. In the third quarter of 2021, the Company sold approximately 315,000 tons of sand at an average sales price of $16.58 per ton, as compared to sales of approximately 68,000 tons of sand at an average sales price of $15.59 per ton during the same quarter last year.

Mammoth’s drilling services division contributed revenue  of $1.2 million for the third quarter of 2021, as compared to $1.2 million for the same quarter last year and $1.1 million for the second quarter of 2021.

As a result of market conditions, the Company temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.

As a result of market conditions, the Company temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019, its coil tubing and full-service transportation operations beginning in July 2020 and its crude oil hauling operations beginning in July 2021.

Click here for Mammoth news release

%d bloggers like this: