In announcing its fourth quarter financial report, Oklahoma City’ Mammoth Energy Services, Inc. also stated it received another payment of $50.6 million from the Puerto rico Electric Power Authority for work Mammoth performed following the 2017 Hurricane Maria.
Mammoth called the payment a “portion” of what it was owed in disputed costs through its wholly-owned subsidiary Cobra Acquisitions LLC. Earlier this year, the company received a $13.4 million payment from PREPA after the Puerto Rican agency agreed in December 2023 to transfer approximately $54.4 million to SPCP Group, LLC.
“We’re pleased to have received these payments from PREPA, which has allowed us to extinguish the liability owed to SPCP Group and collect nearly $10 million in cash,” said Mark Layton, Chief Financial Officer of Mammoth.
“We continue to pursue payment of the outstanding amounts owed to Cobra, including the associated interest, as these payments represent only a portion of the amounts still owed to us.”
Mammoth’s fourth quarter earnings were dismal compared to a year earlier. The firm’s total revenue was $52.8 million compared to $102.9 million for the same quarter of 2022 and $65 million for the third quarter of last year. Mammoth’s total revenue for 2023 was $309.5 million, a decrease of 15% compared to the $362.1 million in 2022.
Net loss for the fourth quarter of 2023 was $6.0 million, or $0.12 loss per diluted share, compared to net income of $4.8 million, or $0.10 per diluted share, for the same quarter of 2022 and net loss of $1.1 million, or $0.02 loss per diluted share, for the third quarter of 2023. Net loss for the full year of 2023 was $3.2 million, or $0.07 per fully diluted share, compared to net loss of $0.6 million, or $0.01 per fully diluted share for 2022.
Adjusted EBITDA was $10.5 million for the fourth quarter of 2023, compared to $24.1 million for the same quarter of 2022 and $13.4 million for the third quarter of 2023. Adjusted EBITDA was $71.0 million for the full year of 2023 compared to $86.1 million for 2022.
The drop in earnings was not lost on Arty Straehla, Chief Executive Officer of Mammoth.
“The fourth quarter proved to be challenging, largely due to additional deferred activity by exploration and production companies, commodity price fluctuations, and customer budget exhaustion. Despite the operational softness we experienced this year, 2023 marked several accomplishments for Mammoth as we completed a significant debt refinancing transaction, began receiving payments from PREPA on our outstanding receivable and entered into an agreement to monetize a portion of our outstanding PREPA receivable.”
Straehla said the company intends to use its millions in PREPA payments to invest back into the business and it might include upgrading an additional hydraulic fracturing fleet. Some was used to repay company borrowings under a new revolving credit facility.