Mammoth Energy Services (TUSK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $51.5 million, up 19% sequentially from Q1, driven by infrastructure and other services, but down 32% year-over-year due to lower well completion and sand activity.

• Net loss for Q2 2024 was $156 million ($3.25 per diluted share), primarily due to a $170.7 million non-cash charge related to the PREPA settlement.

• Adjusted EBITDA for Q2 2024 was negative $160.7 million; excluding PREPA settlement items, Adjusted EBITDA improved to negative $0.3 million from negative $6 million in Q1.

• Entered a $188.4 million settlement agreement with PREPA, pending court approval, with $139.1 million expected to be retained after paying off $49.3 million in term debt.

• Management team has deep experience in energy and infrastructure sectors.

Financial highlights

• Q2 2024 revenue: $51.5 million, up from $43.2 million in Q1 2024, but down from $75.4 million in Q2 2023.

• Net loss for Q2 2024: $156 million, mainly due to the $170.7 million PREPA settlement charge.

• Adjusted EBITDA (excluding settlement): negative $0.3 million in Q2, improved from negative $6 million in Q1.

• CapEx for Q2 2024 was $4.9 million; 2024 budget increased to $12 million, focused on pressure pumping and fleet upgrades.

• Cash on hand at June 30, 2024, was $10.3 million; total liquidity was $24.6 million with an undrawn revolver.

Outlook and guidance

• Activity in well completion and sand proppant services expected to remain flat in the second half of 2024, with potential for a ramp-up in 2025 as market fundamentals improve.

• Infrastructure services outlook remains positive, supported by federal funding, increased bidding, and an active storm season.

• Plans to use PREPA settlement proceeds to pay off term debt and invest in business growth and modernization.

• Focus remains on disciplined capital allocation, cost management, and strategic investments to drive shareholder value.