Mammoth Energy Services Inc (TUSK) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Total Revenue: $40 million in Q3 2024, down from $51.5 million in Q2 2024.

  • Net Loss: $23.4 million or $0.50 per diluted share for Q3 2024.

  • Adjusted EBITDA: Negative $6.4 million for Q3 2024.

  • CapEx: $1.9 million in Q3 2024, down from $4.9 million in Q2 2024; full-year 2024 CapEx budget increased to $23 million.

  • Sand Division Revenue: 163,000 tons sold at $22.89 per ton in Q3 2024.

  • Infrastructure Services Revenue: $26 million in Q3 2024, down from $31.4 million in Q2 2024.

  • Cash on Hand: $4.2 million as of September 30, 2024; approximately $86 million post-settlement.

  • Total Liquidity: $17.9 million as of September 30, 2024.

  • Debt Status: Debt-free as of the call date.

  • Selling, General and Administrative Expenses: $8.7 million in Q3 2024.

  • Professional Fees Related to Puerto Rico: $1.4 million in Q3 2024; $4.1 million year-to-date.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Mammoth Energy Services Inc (NASDAQ:TUSK) is now debt-free after paying off its term credit facility using settlement proceeds from the Puerto Rico Electric Power Authority (PREPA).

  • The company plans to invest approximately $137.5 million in its business, focusing on growing its infrastructure division and modernizing its pressure pumping assets.

  • Mammoth Energy Services Inc (NASDAQ:TUSK) is seeing a rebound in activity in its well completion services division, with plans to activate additional fleets in the coming weeks.

  • The Infrastructure Services division is benefiting from increased bidding opportunities and macro tailwinds, such as the Infrastructure Investment and Jobs Act funds.

  • The company has a strong backlog in its engineering group and is making strategic investments to enhance its market positioning and drive long-term growth.

Negative Points

  • Mammoth Energy Services Inc (NASDAQ:TUSK) experienced a 22% sequential decrease in total revenues for the third quarter of 2024, primarily due to softness in natural gas basins.

  • The well completion services division faced challenges due to continued activity softness and lower natural gas prices, resulting in underutilization of assets.

  • The Infrastructure Services division saw a sequential decline in revenue, partly due to storm-related work impacting operations.

  • The company reported a net loss of $23.4 million for the third quarter of 2024, with adjusted EBITDA at a negative $6.4 million.

  • Selling, general, and administrative expenses remained high, with professional fees related to Puerto Rico totaling $1.4 million for the third quarter.