Mammoth Energy Services Inc (TUSK) Q4 2024 Earnings Call Highlights: Revenue Surge Amidst ...

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Sat, Mar 8, 2025, 12:04 AM 4 min read

Total Revenue (Q4 2024): $53.2 million, a 33% increase from $40 million in Q3 2024.
Total Revenue (Full Year 2024): $187.9 million, down from $309.5 million in 2023.
Infrastructure Services Revenue (Q4 2024): $27.9 million, slightly up from $26 million in Q3 2024.
Infrastructure Services Revenue (Full Year 2024): $110.4 million, nearly flat compared to $110.5 million in 2023.
Well Completion Services Revenue (Q4 2024): $15.8 million with approximately 1.1 fleets utilized on average.
Sand Division Sales (Q4 2024): 129,000 tons at an average price of $22.54 per ton.
Sand Division Sales (Full Year 2024): 578,000 tons at an average price of $23.15 per ton.
Net Loss (Q4 2024): $15.5 million, or $0.32 per diluted share.
Net Loss (Full Year 2024): $207.3 million, or $4.31 per diluted share.
Adjusted EBITDA (Q4 2024): Negative $4.8 million, improved from negative $6.4 million in Q3 2024.
Adjusted EBITDA (Full Year 2024): Negative $167.5 million, compared to $71 million in 2023.
CapEx (Q4 2024): Approximately $6.1 million.
CapEx (Full Year 2024): $17.1 million, down from $19.4 million in 2023.
Cash on Hand (End of 2024): $61 million unrestricted, $82 million total including restricted cash.
Total Liquidity (End of 2024): Approximately $78.7 million.
Debt Status: Debt-free as of December 31, 2024.

Warning! GuruFocus has detected 4 Warning Signs with TUSK.

Release Date: March 07, 2025

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

Positive Points

Mammoth Energy Services Inc (NASDAQ:TUSK) reported a 33% sequential increase in total revenue for the fourth quarter of 2024, reaching $53.2 million.
The company has a strong cash position with $61 million in unrestricted cash and remains debt-free, providing financial flexibility for future growth.
Mammoth Energy Services Inc (NASDAQ:TUSK) added approximately 20 crews to its Infrastructure Services division, reflecting a 25% increase to meet growing utility demand.
The Infrastructure Services division has a healthy bidding environment and is aligning operational capabilities to meet demand, with over 100 crews operating in the field.
The company is focused on strategic capital allocation and has a CapEx budget of $12 million for 2025, primarily for growth in the rental business and maintenance in the pressure pumping business.

Negative Points

Mammoth Energy Services Inc (NASDAQ:TUSK) reported a net loss of $15.5 million for the fourth quarter of 2024 and a full-year net loss of $207.3 million.
The Well Completion Services division experienced decreased utilization due to lower activity by customers in natural gas basins, contributing to a year-over-year revenue decline.
The Sand Division saw a decline in sales volume and pricing, with 578,000 tons sold in 2024 compared to 1.2 million tons in 2023.
Adjusted EBITDA for the full year of 2024 was a negative $167.5 million, a significant decline from $71 million in 2023.
Professional fees related to Puerto Rico totaled $5.6 million for the full year, impacting overall financial performance.

Q & A Highlights

Q: Where's the best growth potential for the infrastructure business? Is that organic or acquisitive? How should we be thinking about these two things impacting the infrastructure space in the coming year? A: Phil Lancaster, CEO: Most of our growth is currently through organic growth. We've added 20 crews and see more demand, especially from larger IOUs. We are also engaging more with co-ops, which should help our storm revenue. While acquisitions are a possibility, we currently see plenty of organic growth opportunities.

Q: Can you provide some color around the rental business customers and demand cycle, and what would drive growth in the coming year? A: Mark Layton, CFO: Our customer base includes ENP companies and other service companies. We see strong demand and opportunities to grow our customer base, particularly in the construction market. The rental business includes a broad portfolio of assets, such as helicopters, and we aim to acquire high-quality assets at attractive prices.

Q: What characterizes the Sand business environment, and are there opportunities to deploy more capital or make acquisitions? A: Mark Layton, CFO: For 2025, we see stabilized demand, with commodity pricing as a key driver. We are operating below maximum capacity, allowing us to expand as demand increases.

Q: Can you provide a breakdown of the CapEx outlook for 2025, particularly for pressure pumping and the rental business? A: Mark Layton, CFO: Approximately half of our $12 million CapEx budget is allocated to growing our rental business. Around $5 million is earmarked for pressure pumping upgrades, contingent on customer demand.

Q: What is your primary focus now that you've been in the CEO position for a few months and the company has capital again? A: Phil Lancaster, CEO: My focus is on right-sizing the company to be profitable, evaluating existing businesses for future growth, and exploring potential acquisitions to enhance our existing businesses or explore new opportunities.

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

This article first appeared on GuruFocus.

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