Mammoth Energy Services, Inc. reported a drop in its second quarter total revenue and an increase in its net loss from $15.2 million in the first quarter to nearly $35 million in the quarter just completed.
The company reported total revenue was $47.4 million compared to more than $60 million in the same quarter last year and $66.8 million in the first quarter of 2021.
Net loss for the second quarter of 2021 was $34.8 million, or a $0.75 loss per share, as compared to a net loss of $15.2 million, or a $0.33 loss per share, for the same quarter last year, and a net loss of $12.4 million, or a $0.27 loss per share, for the first quarter of 2021.
Adjusted EBITDA totaled $5.5 million, down from $6.4 million in the previous quarter.
“While second quarter results did not meet expectations, internally we remain focused on improving near-term results as we continue migrating the Company further into the infrastructure space to enhance long-term growth and sustainability,” said Arty Straehla, Chief Executive Officer of Mammoth.
He said improved commodities pricing has resulted in increased equipment utilization and the company is ramping up to put a second hydraulic fracturing fleet to work in mid-August.
Straehla continued, “Lastly, we are continuing our efforts to collect our receivable from PREPA for work performed by our subsidiary Cobra in Puerto Rico. We believe that published documentation to date continues to show that our team performed a difficult job in a difficult environment to save lives and aid the people of Puerto Rico in their time of need.”
He also blamed turnover in management and crews for a drop in Mammoth’s infrastructure services division revenue of $17.2 million, or approximately 36% of Mammoth’s total revenue, for the second quarter of 2021, as compared to $30.2 million for the same quarter last year and $29.3 million for the first quarter of 2021. The decrease in revenue compared to the same quarter of 2020 and first quarter of 2021 is primarily due to management and crew turnover.
Well completion services saw a slight increase in revenue of $17.4 million on 520 stages for the quarter compared to $16.5 million on 658 stages a year ago. But it was also down from the first quarter revenue of $23 million on 445 stages.
As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.
Other Services
Mammoth’s other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation, remote accommodations, equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of $5.5 million for the second quarter of 2021, as compared to $6.8 million for the same quarter last year and $5.7 million for the first quarter of 2021.
As a result of market conditions, the company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.
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