Mammoth Energy Services, Inc. reported growing losses in the fourth quarter and all of 2021.
The Oklahoma City-based company stated its fourth quarter 2021 net loss totaled $13.3 million or 28 cents a share compared to $11.9 million or 26 cents a share for the same quarter of 2020. But the fourth quarter loss was down from the $40.9 million or 88 cents a share loss recorded in the third quarter of 2021.
For the year, Mammoth’s loss was $101.4 million or $2.18 a fully diluted share compared to $107.6 million or $2.36 a share for all of 2020.
“We ended the year sustaining sequential quarterly momentum on top line revenues and reducing net loss,” stated Arty Straehla, Chief Executive Officer.
“We have implemented a cost management structure and methodical operational processes that we believe will enable significant top line growth without meaningfully changing our SG&A structure.”
Total revenue for the fourth quarter was also down coming in at $57.2 million compared to $85.1 million a year earlier and nearly the same as the third quarter 2021 revenue of $57.5 million. The company’s revenue for all of 2021 fell too, dropping from $313.1 million in 2020 to $229 million last year.
Adjusted EBITDA increased to $17.2 million for the fourth quarter of 2021, as compared to $7.5 million for the same quarter of 2020 and ($29.7) million for the third quarter of 2021. Adjusted EBITDA was ($11.6) million for the year ended December 31, 2021, as compared to $50.0 million for the year ended December 31, 2020.
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 and $21.0 million for the full year 2021.
“As we enter 2022, we see improved macro-economic trends that we believe will drive increased demand for our two largest business segments, well completion services and infrastructure services,” added Straehla. “In addition, we continue to vigorously pursue numerous avenues to collect our receivable from PREPA for work performed by our subsidiary Cobra Acquisitions LLC 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.”
Mammoth’s infrastructure services division contributed revenue of $19.7 million, or approximately 34% of Mammoth’s total revenue, for the fourth quarter of 2021, as compared to $56.6 million for the same quarter of 2020 and $25.1 million for the third quarter of 2021. The decrease in revenue compared to the same quarter of 2020 is primarily due to a decline in storm activity, resulting in lower storm restoration revenue.
The infrastructure segment contributed revenues of $93.4 million for the year ended December 31, 2021, down from $157.8 million for the year ended December 31, 2020. The decrease in revenue is primarily due to a decline in storm activity, resulting in lower storm restoration revenue, as well as management and crew turnover.
Mammoth’s well completion services division contributed revenue (inclusive of inter-segment revenue) of $21.3 million on 891 stages for the fourth quarter of 2021, as compared to $12.7 million on 291 stages for the same quarter of 2020 and $22.7 million on 688 stages for the third quarter of 2021. On average, 1.6 of the Company’s fleets were active for the fourth quarter of 2021, compared to an average utilization of 0.6 fleets during the same quarter of 2020 and 1.2 fleets during the third quarter of 2021.
The well completion division contributed revenues (inclusive of inter-segment revenues) of $84.3 million on 2,544 stages for the year ended December 31, 2021, down from $88.3 million on 2,880 stages for the year ended December 31, 2020. On average, 1.1 of the Company’s fleets were active for the year ended December 31, 2021 compared to 1.5 fleets for the year ended December 31, 2020.
Mammoth’s natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $10.8 million for the fourth quarter of 2021, as compared to $11.8 million for the same quarter of 2020 and $8.4 million for the third quarter of 2021. In the fourth quarter of 2021, the Company sold approximately 270,000 tons of sand at an average sales price of $17.84 per ton, as compared to sales of approximately 100,000 tons of sand at an average sales price of $15.59 per ton during the same quarter of 2020. In the third quarter of 2021, sales were approximately 315,000 tons of sand at an average price of $16.58 per ton.
The natural sand proppant division contributed revenues (inclusive of inter-segment revenues) of $34.9 million for the year ended December 31, 2021, as compared to $34.4 million for the year ended December 31, 2020. The Company sold 1.0 million tons of sand during the year ended December 31, 2021, an increase from 0.5 million tons of sand during the year ended December 31, 2020. The Company’s average sales price for the sand sold during the year ended December 31, 2021 was $16.76 per ton, an increase from $14.58 per ton average sales price during the year ended December 31, 2020.
Mammoth’s drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.0 million for the fourth quarter of 2021, as compared to $0.6 million for the same quarter of 2020 and $1.2 million for the third quarter of 2021. The drilling services division contributed revenues of $4.3 million for the year ended December 31, 2021, as compared to $7.8 million for the year ended December 31, 2020.
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.
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