PR Newswire
OKLAHOMA CITY, Feb. 23, 2023
Q4 Revenue Up 80% and Full Year Revenue Up 58%
OKLAHOMA CITY, Feb. 23, 2023 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported financial and operational results for the fourth quarter and full year ended December 31, 2022.
Financial Overview for the Fourth Quarter and Full Year 2022:
Fourth quarter 2022 total revenue was $102.9 million, an increase of 80% compared to $57.2 million for the same quarter of 2021. Total revenue for the full year of 2022 was $362.1 million, an increase of 58% compared to $229.0 million in 2021.
Net income for the fourth quarter of 2022 was $4.8 million, or $0.10 per share, compared to a net loss of $13.3 million, or a $0.28 loss per share, for the same quarter of 2021. Net loss for the full year of 2022 was $0.6 million, or $0.01 per fully diluted share, compared to net loss of $101.4 million, or $2.18 per fully diluted share for 2021.
Adjusted EBITDA (as defined and reconciled below) was $24.1 million for the fourth quarter of 2022, an increase of 40% compared to $17.2 million for the same quarter of 2021. Adjusted EBITDA increased to $86.1 million for the full year of 2022 compared to ($11.6) million for 2021. During the fourth quarter of 2022, Mammoth recognized bad debt expense of $3.5 million due to a previously disclosed legal settlement. Excluding this expense, adjusted EBITDA would have been $27.6 million for the fourth quarter of 2022 and $89.6 million for the full year 2022.
Arty Straehla, Chief Executive Officer of Mammoth commented, "We are pleased to report significant revenue and Adjusted EBITDA growth in the fourth quarter and for the full year. This growth was driven by strong market demand for our services and enhanced execution by our teams. Despite adverse weather during the quarter and continued supply chain constraints that impacted productivity, I am proud of the hard work and perseverance displayed by our talented teams throughout our organization. Our Well Completion Services division continues to improve performance, generating strong growth as the macro demand in the pressure pumping industry remains robust. We exited 2022 with four of our six pressure pumping spreads operating, and we added a fifth spread into operations in January of 2023. In addition, we have plans to upgrade our sixth spread to Tier 4, dual fuel and put it into operation in the second half of 2023 and upgrade two existing spreads to Tier 2, dual fuel, subject to both market conditions and supply chain constraints. This would give us a total of four dual fuel fleets. In our Infrastructure Services division, operational improvements, team performance and higher utilization of crews and equipment continue to drive enhanced results. There is a healthy bidding and pricing environment for infrastructure projects throughout our footprint supported by the historic federal investment in our Nation's infrastructure through the Infrastructure Investment and Jobs Act. Our sand business also continues to maintain strong demand and we are pleased with our team's performance. As we reported last November, we entered into two strategic sand supply agreements at attractive pricing that are providing a solid foundation for predictable cash flow in our natural sand proppant division. We believe all of our business segments are performing well in high demand environments despite the continued daily challenges presented by supply chain constraints, which we expect to persist through at least the first half of 2023, inflation and higher labor costs. We are bullish on the future of Mammoth and intend to continue to focus on improving operational efficiencies across our business segments and driving financial performance to enhance value for our shareholders."
Commenting further, Straehla said, "As we continue to vigorously pursue payment from the Puerto Rico Electric Power Authority ("PREPA"), last month we reported that two important Determination Memorandums from the Federal Emergency Management Agency ("FEMA") released late last year affirmed the work we completed on the island and that the majority of the costs were eligible for reimbursement. In a January Joint Status Report filed in PREPA's bankruptcy case, PREPA indicated that subject to approximately $21.5 million in offsets asserted by PREPA, approximately $99.2 million in FEMA funding would be available to PREPA for our outstanding invoices. Both the November and December 2022 Determination Memorandums can be found on our website. In addition, we have sought and obtained bipartisan help from Senate and Congressional members in pursuit of collecting the over $379 million outstanding receivable from PREPA as the Company continues to pursue multiple avenues to collect the money owed from PREPA."
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $51.4 million on 1,837 stages for the fourth quarter of 2022, compared to $21.3 million on 891 stages for the same quarter of 2021. On average, 3.4 of the Company's fleets were active for the fourth quarter of 2022 compared to an average utilization of 1.6 fleets during the same quarter of 2021.
The well completion division contributed revenues (inclusive of inter-segment revenues) of $170.7 million on 6,149 stages for the full year of 2022, up from $84.3 million on 2,544 stages for 2021. On average 3.0 of the Company's fleets were active in 2022 compared to 1.1 fleets in 2021.
Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $29.6 million for the fourth quarter of 2022 compared to $19.7 million for the same quarter of 2021. Average crew count grew to 93 crews during the fourth quarter of 2022 compared to 78 crews during the same quarter of 2021.
The infrastructure segment contributed revenues of $111.5 million for the full year of 2022, up from $93.4 million for 2021. The increase in revenue is primarily due to improved operational execution, coupled with an increase in crew count. Our average crew count grew to 91 crews for 2022 compared to 82 crews for 2021.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $13.8 million for the fourth quarter of 2022 compared to $10.8 million for the same quarter of 2021. In the fourth quarter of 2022, the Company sold approximately 366,000 tons of sand at an average sales price of $29.80 per ton compared to sales of approximately 270,000 tons of sand at an average sales price of $17.84 per ton during the same quarter of 2021.
The natural sand proppant division contributed revenues (inclusive of inter-segment revenues) of $51.4 million for the full year of 2022 compared to $34.9 million for 2021. The Company sold 1.4 million tons of sand during 2022, an increase from 1.0 million tons of sand during 2021. The Company's average sales price for the sand sold during 2022 was $27.11 per ton, an increase from $16.76 per ton average sales price during 2021.
Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $2.4 million for the fourth quarter of 2022 compared to $1.0 million for the same quarter of 2021. The drilling services division contributed revenues of $10.4 million for the full year of 2022, compared to $4.3 million for 2021. The increase in drilling services revenue is primarily attributable to increased utilization for our directional drilling business.
Other Services
Mammoth's other services, including aviation, equipment rentals, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $6.4 million for the fourth quarter of 2022 compared to $4.9 million for the same quarter of 2021. The Company's other services contributed revenues of $23.1 million for the full year of 2022, compared to $18.5 million for 2021. The increase in revenue is primarily due to improved utilization for our equipment rental and remote accommodations businesses.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $13.0 million for the fourth quarter of 2022 compared to $3.5 million for the same quarter of 2021.
Following is a breakout of SG&A expense (in thousands):
| Three Months Ended | | Twelve Months Ended | ||||
| December 31, | | December 31, | ||||
| 2022 | | 2021 | | 2022 | | 2021 |
Cash expenses: | | | | | | | |
Compensation and benefits | $ 3,932 | | $ 3,685 | | $ 13,729 | | $ 15,064 |
Professional services(a) | 3,434 | | (2,383) | | 13,501 | | 11,400 |
Other(b) | 1,885 | | 1,994 | | 8,012 | | 9,052 |
Total cash SG&A expense | 9,251 | | 3,296 | | 35,242 | | 35,516 |
Non-cash expenses: | | | | | | | |
Bad debt provision(c) | 3,501 | | 12 | | 3,389 | | 41,662 |
Stock based compensation | 241 | | 241 | | 923 | | 1,068 |
Total non-cash SG&A expense | 3,742 | | 253 | | 4,312 | | 42,730 |
Total SG&A expense | $ 12,993 | | $ 3,549 | | $ 39,554 | | $ 78,246 |
a. | Certain legal expenses incurred during 2021 were reclassified to Other, net during the fourth quarter of 2021. |
b. | Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs. |
c. | The bad debt provision for the year ended December 31, 2021 includes $41.2 million related to the settlement of our accounts with Gulfport Energy Corporation and its subsidiaries. |
SG&A expenses, as a percentage of total revenue, were 13% for the fourth quarter of 2022 compared to 6% for the same quarter of 2021. Excluding bad debt expense, SG&A expenses as a percentage of total revenue were 9% for the fourth quarter of 2022.
Liquidity
As of December 31, 2022, Mammoth had cash on hand of $17.3 million, outstanding borrowings under its revolving credit facility of $83.5 million and $19.7 million of available borrowing capacity under its revolving credit facility, after giving effect to $6.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. As of December 31, 2022, Mammoth had total liquidity of $37.0 million.
As of February 22, 2023, Mammoth had cash on hand of $9.5 million and outstanding borrowings under its revolving credit facility of $79.7 million. As of February 22, 2023, the Company had $22.3 million of available borrowing capacity under its revolving credit facility, after giving effect to $6.4 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity.
Capital Expenditures
The following table summarizes Mammoth's capital expenditures by operating division for the periods indicated (in thousands):
| Three Months Ended | | Twelve Months Ended | ||||
| December 31, | | December 31, | ||||
| 2022 | | 2021 | | 2022 | | 2021 |
Well completion services(a) | $ 3,374 | | $ 1,135 | | $ 11,421 | | $ 4,327 |
Infrastructure services(b) | 62 | | 153 | | 885 | | 627 |
Natural sand proppant services(c) | 54 Werbung Mehr Nachrichten zur Mammoth Ener. Services Aktie kostenlos abonnieren
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