Mammoth Energy Services (TUSK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined to $40.0 million, down 38% year-over-year, with net loss widening to $24.0 million from $1.1 million, driven by lower well completion and sand proppant activity.

• Received $168.4 million from PREPA settlement, with a final $20 million installment pending, eliminating all debt and boosting liquidity.

• Paid off $50.9 million term credit facility, resulting in a debt-free balance sheet and $86 million cash on hand post-quarter.

• Plans to invest in infrastructure and well completion services, including equipment upgrades, additional crews, and modernization.

• Exploring both organic and M&A growth opportunities, especially in T&D and related verticals.

Financial highlights

• Q3 2024 revenue was $40.0 million, down from $65.0 million in Q3 2023 and 22% sequentially from Q2 2024.

• Net loss for Q3 2024 was $24.0 million ($0.50 per diluted share), compared to $1.1 million loss in Q3 2023.

• Adjusted EBITDA for Q3 2024 was negative $6.4 million, down from $13.4 million in Q3 2023.

• CapEx for Q3 2024 was $1.9 million, with 2024 guidance increased to $23 million, focused on infrastructure and well completion upgrades.

• Cash on hand as of October 30, 2024, was $86.2 million, with total liquidity of $97.7 million and no outstanding borrowings.

Outlook and guidance

• Activity in well completion and sand proppant services expected to remain flat through H1 2025, with a potential ramp in H2 2025 as macro tailwinds support natural gas production.

• Infrastructure services sector expected to benefit from increased bidding opportunities and federal infrastructure funding.

• Management anticipates improved financial results in coming quarters, driven by infrastructure demand and market tailwinds.