OKLAHOMA CITY - Mammoth Energy Services, Inc. ('Mammoth' or the 'Company') (NASDAQ: TUSK) today reported financial and operational results for the first quarter ended March 31, 2021.
Financial Overview for the First Quarter 2021
Total revenue was $66.8 million for the three months ended March 31, 2021, down 22% from $85.1 million for the three months ended December 31, 2020 and down 31% from $97.4 million for the three months ended March 31, 2020.
Net loss for the three months ended March 31, 2021 was $12.4 million, or $0.27 per fully diluted share, as compared to a net loss of $11.9 million, or $0.26 per fully diluted share, for the three months ended December 31, 2020 and a net loss of $84.0 million, or $1.85 per fully diluted share, for the three months ended March 31, 2020.
Adjusted EBITDA (as defined and reconciled below) was $6.4 million for the three months ended March 31, 2021, as compared to $7.5 million for the three months ended December 31, 2020 and $13.5 million for the three months ended March 31, 2020.
Arty Straehla, Chief Executive Officer of Mammoth commented, 'The first quarter of 2021 came in as expected as restoration work on the Gulf Coast came to an end and our infrastructure work moderated slightly. Bidding opportunities for both traditional transmission and distribution work as well as renewable work has increased significantly over the past several months. We expect this increase in bidding opportunities to continue to increase in the coming years as the new administration advances its infrastructure bill to rebuild a broad array of the nation's infrastructure assets. The roughly $2 trillion plan includes several areas in which our teams have expertise, including modernization of the electric grid and a shift to renewables.'
Infrastructure Services
Mammoth's infrastructure services division contributed revenue (inclusive of inter-segment revenue) of $29.3 million, or approximately 44% of Mammoth's total revenue, for the three months ended March 31, 2021, a decrease of 48% from $55.9 million for the three months ended December 31, 2020 and an increase of 15% from $25.5 million for the three months ended March 31, 2020.
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $23.0 million on 445 stages for the three months ended March 31, 2021, an increase of 81% from $12.7 million on 291 stages for the three months ended December 31, 2020 and a decrease of 47% from $43.3 million on 1,482 stages for the three months ended March 31, 2020. On average, 0.9 of the Company's fleets were active for the three months ended March 31, 2021, compared to average utilization of 0.6 fleets during the three months ended December 31, 2020 and an average utilization of 2.7 fleets during the three months ended March 31, 2020.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $8.7 million for the three months ended March 31, 2021, a decrease of 26% from $11.8 million for the three months ended December 31, 2020 and a decrease of 15% from $10.2 million for the three months ended March 31, 2020. The Company sold approximately 171,000 tons of sand during the three months ended March 31, 2021, an increase of 71% from approximately 100,000 tons sold during the three months ended December 31, 2020 and a decrease of 28% from approximately 239,000 tons sold during the three months ended March 31, 2020. The Company's average sales price for the sand sold during the three months ended March 31, 2021 was $16.83 per ton, as compared to $15.59 per ton during the three months ended December 31, 2020 and $13.67 per ton during the three months ended March 31, 2020.
Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $0.9 million for the three months ended March 31, 2021, an increase of 50% from $0.6 million for the three months ended December 31, 2020 and a decrease of 81% from $4.7 million for the three months ended March 31, 2020.
As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.
Other Services
Mammoth's other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation, remote accommodations, equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of $5.7 million for the three months ended March 31, 2021, an increase of 21% from $4.7 million for the three months ended December 31, 2020 and a decrease of 62% from $15.1 million for the three months ended March 31, 2020.
As a result of market conditions, the Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.
Selling, General and Administrative Expenses
Selling, general and administrative ('SG&A') expenses were $20.8 million for the three months ended March 31, 2021, as compared to $30.5 million for the three months ended December 31, 2020 and $10.8 million for the three months ended March 31, 2020.
SG&A expenses, as a percentage of total revenue, were 31% for the three months ended March 31, 2021, as compared to 36% for the three months ended December 31, 2020 and 11% for the three months ended March 31, 2020. The bad debt provision for the three months ended March 31, 2021 and December 31, 2020, includes $10.0 million and $19.4 million, respectively, related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.
Liquidity
As of March 31, 2021, Mammoth had cash on hand of $14.4 million, outstanding borrowings under its revolving credit facility of $64.0 million and $48.7 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit. As of March 31, 2021, Mammoth had total liquidity of $63.1 million.
As of April 27, 2021, Mammoth had cash on hand of $14.8 million, outstanding borrowings under its revolving credit facility of $67.0 million and $45.7 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit.
About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy service company serving companies engaged in the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its energy infrastructure services and the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth's suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services.
Contact:
Don Crist
Tel: 405-608-6048
Email: dcrist@mammothenergy.com
Forward-Looking Statements and Cautionary Statements
This news release contains certain statements and information that may constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words 'anticipate,' 'believe,' 'ensure,' 'expect,' 'if,' 'intend,' 'plan,' 'estimate,' 'project,' 'forecasts,' 'predict,' 'outlook,' 'aim,' 'will,' 'could,' 'should,' 'potential,' 'would,' 'may,' 'probable,' 'likely' and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments.
Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management's current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on demand for our services; the current significant surplus in the supply of oil and the ability of the OPEC+ countries to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company's subsidiary Cobra Acquisitions LLC by the Puerto Rico Electric Power Authority and contracts for our pressure pumping services and natural sand proppant services; the Company's inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions; the loss of or interruption in operations of one or more of Mammoth's significant suppliers or customers; the outcome of Gulfport Energy Corporation's chapter 11 bankruptcy filing and the treatment of Mammoth's contracts and claims in such proceeding and subsequent related proceedings; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries and costs and availability of resources.
Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.
MAMMOTH ENERGY SERVICES, INC. 
