After an 87% increase in total revenue during the first quarter of 2023, Oklahoma City-based Mammoth Energy Services prepares a release of its second quarter earnings report. But the big question is just how badly low natural gas prices affected the company’s completions activity and whether it continued into the second quarter.
The financial results will be released before the opening of markets on Friday, August 11. It will be followed by a company conference call and webcast where leaders will discuss the results at 9 a.m. Central Time on the same day.
Mammoth investors wonder whether the company was able to duplicate the $116.3 million in first quarter revenue, an improvement over the $62.3 million recorded in the first quarter of 2022. It was also 13% stronger than the fourth quarter of last year.
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.
The company might also reveal the continuing impact of lower natural gas prices on its completions activity, especially in the northeast part of the U.S. where Mammoth has a concentration of frac fleets. In the first quarter, Arty Straehla, Chief Executive Officer at Mammoth said the lower prices led to reduced activity and “more calendar white space” for the crews.
He said as a result, Mammoth planned to “significantly reduce our capital expenditures for the year to approximately $24 million.”