Mammoth Energy Services reported an increase in total revenue for the first quarter of 2020 but also an increased net loss of $84 million or $1.85 per fully diluted share.
It was a $24 million dollar increase in net loss compared to the end of the previous quarter on December 31, 2019. Company leaders don’t expect things to improve soon.
“Depressed levels of our oilfield service activity are expected to continue for the foreseeable future,” stated the company in a filing with the Securities and Exchange Commission. “The COVID-19
pandemic, the broad reduction in economic activity, the current conditions in the energy industry and the adverse macroeconomic conditions have also had an adverse effect on pricing for our oilfield services. In addition, due to the sharp decline in commodity prices, the effects of the COVID-19 pandemic and other factors discussed above, we recorded impairments to certain of our long-lived assets, including water transfer, crude oil hauling, coil tubing, flowback, rental and other equipment, as well as impairment to our goodwill during the first quarter ended March 31, 2020.”
pandemic, the broad reduction in economic activity, the current conditions in the energy industry and the adverse macroeconomic conditions have also had an adverse effect on pricing for our oilfield services. In addition, due to the sharp decline in commodity prices, the effects of the COVID-19 pandemic and other factors discussed above, we recorded impairments to certain of our long-lived assets, including water transfer, crude oil hauling, coil tubing, flowback, rental and other equipment, as well as impairment to our goodwill during the first quarter ended March 31, 2020.”
Total revenue was $97.4 million for the three months ended March 31, 2020, up from $67.6 million for the three months ended December 31, 2019 and down from $262.1 million for the three months ended March 31, 2019.
Adjusted net loss for the three months ended March 31, 2020 was $16.1 million, or $0.36 per fully diluted share, as compared to adjusted net loss of $26.3 million, or $0.58 per fully diluted share, for the three months ended December 31, 2019 and adjusted net income of $28.3 million, or $0.63 per fully diluted share, for the three months ended March 31, 2019.
Adjusted EBITDA was $13.5 million for the three months ended March 31, 2020, as compared to a loss of $10.3 million for the three months ended December 31, 2019 and a positive $82.8 million for the three months ended March 31, 2019.
Arty Straehla, Mammoth’s Chief Executive Officer, stated, “The unprecedented volatility in oil prices has been exacerbated by the outbreak of the COVID-19 pandemic, which has resulted in global oil demand destruction and economic decline. Our oilfield activity has been, and will likely continue to be, challenged by significantly reduced levels of capital expenditures by our customers. As a result, we have temporarily idled several of our oilfield services businesses and expect lower pricing and utilization in those that remain in operation.”
Mammoth’s drilling services division contributed revenue (inclusive of inter-segment revenue) of $4.8 million for the three months ended March 31, 2020, a slight increase from $4.7 million for the three months ended December 31, 2019 and a decrease from $13.8 million for the three months ended March 31, 2019. The decline is primarily due to reduced utilization. As a result of market conditions, the Company temporarily shut down its contract land drilling operations beginning in December 2019.
Mammoth’s infrastructure services division contributed revenue of $25.7 million for the three months ended March 31, 2020, a decrease from $26.6 million for the three months ended December 31, 2019 and from $108.7 million for the three months ended March 31, 2019.
As of March 31, 2020, Mammoth had a total of approximately 130 transmission and distribution crews operating in the continental United States.
Mammoth’s natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $10.2 million for the three months ended March 31, 2020, an increase from $3.0 million for the three months ended December 31, 2019 and a decrease from $37.9 million for the three months ended March 31, 2019. The Company sold approximately 239,000 tons of sand during the three months ended March 31, 2020, an increase from approximately 76,000 tons sold during the three months ended December 31, 2019 and a decrease from approximately 666,000 tons sold during the three months ended March 31, 2019.
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Source: SEC