Mammoth Energy’s first quarter proved to a strong one for the Oklahoma City-based company as it reported total revenue was up 87%, reaching $116.3 million. It compared to $62.3 million recorded a year earlier.
The more than $116 million was also a 13% improvement over the fourth quarter 2022 total revenue of $102.9 million according to the company’s announcement.
Net income for the first quarter of 2023 was $8.4 million or 17 cents a share compared to a net loss of $14.8 million or a 32 cent loss per share in the same quarter of 2022. It was also an improvement over the fourth quarter of 2022 net income of $4.8 million and 10 cents a share.
Adjusted EBITDA was $30.7 million for the first quarter of 2023, an increase of 230% compared to $9.3 million for the same quarter of 2022 and an increase of 27% compared to $24.1 million for the fourth quarter of 2022.
“Our first quarter performance was in line with our expectations, contributing to significant year-over-year growth in revenue, net income and Adjusted EBITDA,” said Arty Straehla, Chief Executive Officer of Mammoth.
But all is not bright as he indicated while the Well Completion Services division generated strong growth in the first quarter, the oil field services markets served by Mammoth are being negatively impacted by lower commodity prices. Straehla said natural gas prices are especially hit hard as they have been cut nearly in half since the end of 2022.
“While we remain bullish long-term on natural gas, in the near-term, the lower commodity prices are reducing activity and leading to more calendar white space, which we expect is likely to reduce near-term utilization in our well completion segment as we adjust to market conditions,” he explained, adding that Mammoth intends to significantly reduce its capital expenditures for the year to about $24 million.
Still, Straehla said Mammoth’s Infrastructure Services division has grown organically and will likely be a key growth driver for the company over the long term.
Mammoth’s infrastructure services division contributed revenue of $28.3 million for the first quarter of 2023 compared to $23.0 million for the same quarter of 2022 and $29.6 million for the fourth quarter of 2022. Average crew count was 88 crews during the first quarter of 2023 compared to 85 crews during the same quarter of 2022 and 93 crews during the fourth quarter of 2022.
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