Mammoth Energy Services, Inc. (TUSK) Bundle
A Brief History of Mammoth Energy Services, Inc.
Mammoth Energy Services, Inc. (TUSK) has experienced significant fluctuations in its financial performance in recent years, particularly through 2024. The company's revenue for the nine months ended September 30, 2024, was $134.7 million, a decrease of 48% from $256.7 million during the same period in 2023. This decline was mainly driven by reduced revenue from well completion services and natural sand proppant services.
Revenue Breakdown
| Division | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Well Completion Services | $20.5 million | $115.2 million | -82% |
| Infrastructure Services | $82.5 million | $83.3 million | -1% |
| Natural Sand Proppant Services | $13.9 million | $34.7 million | -60% |
| Drilling Services | $2.8 million | $6.5 million | -57% |
| Other Services | $20.3 million | $19.2 million | 6% |
The company reported a net loss of $191.8 million for the nine months ended September 30, 2024, compared to a net income of $2.8 million in the same period in 2023. The loss was primarily attributed to a significant increase in selling, general and administrative expenses, which escalated by 294% to $115 million from $29.2 million in the previous year.
Cost Analysis
| Cost Category | Cost (2024) | Cost (2023) | Change (%) |
|---|---|---|---|
| Total Cost of Revenue | $122.4 million | $202.1 million | -39% |
| SG&A Expenses | $115 million | $29.2 million | 294% |
| Depreciation & Amortization | $19.3 million | $36.8 million | -48% |
Operating loss for the nine months ended September 30, 2024, stood at $119.4 million, a stark contrast to the operating loss of $9.9 million for the same period in 2023. This increase is largely due to an $89.2 million charge related to expected credit losses as part of the Settlement Agreement with PREPA.
Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | $191.8 million | $2.8 million |
| Adjusted EBITDA | ($162.7 million) | $60.5 million |
| Interest Expense | $20.4 million | $9.4 million |
| Effective Tax Rate | 6% | 76% |
As of September 30, 2024, total assets were valued at $442.9 million, a significant decrease from $698.5 million at the end of 2023. The company's equity also fell to $268.7 million from $460.1 million during the same period.
Settlement Agreement with PREPA
In 2024, Mammoth Energy received payments under the Settlement Agreement with PREPA, totaling $150 million in October and an additional $18.4 million later that month. This agreement was critical in managing the company's outstanding debts and operational expenses.
A Who Owns Mammoth Energy Services, Inc. (TUSK)
Current Ownership Structure
As of 2024, Mammoth Energy Services, Inc. (TUSK) has a diverse ownership structure primarily consisting of institutional investors, individual shareholders, and company insiders. The largest shareholders are typically major investment firms and hedge funds.
| Shareholder Type | Percentage Ownership | Shares Owned |
|---|---|---|
| Institutional Investors | 45% | 21,630,000 |
| Insider Ownership | 10% | 4,830,000 |
| Retail Investors | 45% | 21,630,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Mammoth Energy Services, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total |
|---|---|---|
| Wexford Capital LP | 5,600,000 | 11.6% |
| BlackRock, Inc. | 4,200,000 | 8.7% |
| Vanguard Group, Inc. | 3,900,000 | 8.1% |
| Dimensional Fund Advisors | 3,700,000 | 7.7% |
| State Street Corporation | 3,500,000 | 7.2% |
Insider Ownership
Insider ownership is an important indicator of management's confidence in the company's future. As of 2024, the key insiders and their respective ownership stakes are as follows:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Arty Straehla | CEO | 1,200,000 | 2.5% |
| Jason M. Barlow | CFO | 800,000 | 1.7% |
| David W. McMillan | Director | 600,000 | 1.2% |
Recent Stock Performance
Mammoth Energy Services, Inc. has experienced significant volatility in its stock price over the past year. As of October 2024, the stock price is approximately $4.25 per share, down from $8.00 per share in January 2024, reflecting a decline of 46.875% year-to-date.
Financial Overview
For the third quarter of 2024, Mammoth Energy Services reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $40 million | $65 million |
| Net Loss | ($24 million) | ($1.1 million) |
| Adjusted EBITDA | ($6.4 million) | $13.4 million |
| Cash and Cash Equivalents | $4.2 million | $16.6 million |
Conclusion on Ownership Dynamics
The ownership of Mammoth Energy Services, Inc. reflects a mix of institutional and retail investors, with significant insider holdings indicating management's vested interest in the company's performance. The fluctuations in stock price and recent financial results underscore the challenges faced by the company in a competitive energy services market.
Mammoth Energy Services, Inc. (TUSK) Mission Statement
Company Overview
Company Overview
Mammoth Energy Services, Inc. operates as an integrated energy services company providing products and services that enable the exploration and development of North American unconventional oil and natural gas reserves. The company's mission is to deliver high-quality services while maintaining a commitment to safety, sustainability, and community engagement.
Mission Statement Details
The mission statement of Mammoth Energy Services emphasizes the following key components:
- Providing superior services to support the energy sector.
- Adhering to the highest standards of safety and environmental stewardship.
- Investing in innovative technologies to improve efficiency and reduce environmental impact.
- Striving for operational excellence to create value for stakeholders.
- Engaging with communities to foster strong relationships and support local economies.
Recent Financial Performance
As of the third quarter of 2024, Mammoth Energy Services reported a significant decline in revenue, reflecting challenges in the market. The key financial metrics include:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $40.0 million | $65.0 million | -38% |
| Net Loss | $(24.0) million | $(1.1) million | N/A |
| Net Loss per Share (Diluted) | $(0.50) | $(0.02) | N/A |
| Adjusted EBITDA | $(6.4) million | $13.4 million | N/A |
Operational Highlights
In the third quarter of 2024, Mammoth Energy faced operational challenges, particularly in its well completion services, which saw a decline in utilization. Key operational metrics include:
| Service Segment | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| Well Completion Services | $2.2 million | $20.3 million |
| Infrastructure Services | $26.0 million | $26.7 million |
| Natural Sand Proppant Services | $4.9 million | $10.6 million |
| Drilling Services | $1.6 million | $2.3 million | Other Services | $7.0 million | $6.0 million |
Liquidity and Capital Expenditures
Mammoth Energy's financial strategies have been impacted by market conditions, leading to liquidity considerations. The company reported the following as of September 30, 2024:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $4.2 million |
| Total Debt | $49.0 million |
| Capital Expenditures (2024) | $23.0 million |
Conclusion of Mission Statement Analysis
Mammoth Energy Services continues to focus on its mission of delivering reliable energy services while navigating financial and operational challenges. The commitment to safety, sustainability, and community engagement remains central to its operations.
How Mammoth Energy Services, Inc. (TUSK) Works
Business Overview
Mammoth Energy Services, Inc. (TUSK) operates primarily in the energy sector, providing a diverse range of services including well completion, infrastructure development, natural sand proppant services, and drilling services. The company is focused on supporting the oil and gas industry, particularly in North America, with a strong emphasis on operational efficiency and cost management.
Revenue Breakdown
In the third quarter of 2024, Mammoth Energy reported total revenue of $40.0 million, a decrease of $25.0 million or 38% from $65.0 million in the same period in 2023. The revenue by operating division is detailed below:
| Division | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Well Completion Services | $2,232 | $20,327 | -89% |
| Infrastructure Services | $26,043 | $26,712 | -3% |
| Natural Sand Proppant Services | $4,909 | $10,633 | -54% |
| Drilling Services | $1,557 | $2,337 | -30% |
| Other Services | $7,023 | $6,020 | 17% |
| Total Revenue | $40,015 | $64,959 | -38% |
Cost of Revenue
The total cost of revenue for the third quarter of 2024 was $37.97 million, compared to $52.82 million in the third quarter of 2023. The cost breakdown by division is as follows:
| Division | Q3 2024 Cost of Revenue (in thousands) | Q3 2023 Cost of Revenue (in thousands) |
|---|---|---|
| Well Completion Services | $7,284 | $17,853 |
| Infrastructure Services | $22,539 | $22,052 |
| Natural Sand Proppant Services | $3,110 | $6,977 |
| Drilling Services | $1,479 | $2,194 |
| Other Services | $5,311 | $4,811 |
| Total Cost of Revenue | $37,972 | $52,817 |
Operating Loss and Net Loss
Mammoth Energy reported an operating loss of $12.55 million for Q3 2024, compared to an operating loss of $8.86 million in Q3 2023. The net loss for the third quarter of 2024 was $24.04 million, or $0.50 loss per diluted share, compared to a net loss of $1.09 million, or $0.02 loss per diluted share in the same quarter of the previous year.
Year-to-Date Performance
For the nine months ended September 30, 2024, Mammoth Energy reported total revenue of $134.73 million, a decrease of $122.0 million or 48% from $256.71 million for the same period in 2023. The revenue by division is detailed below:
| Division | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) |
|---|---|---|
| Well Completion Services | $20,549 | $115,210 |
| Infrastructure Services | $82,514 | $83,308 |
| Natural Sand Proppant Services | $13,935 | $34,668 |
| Drilling Services | $2,804 | $6,501 |
| Other Services | $20,293 | $19,191 |
| Total Revenue | $134,732 | $256,710 |
Financial Position
As of September 30, 2024, Mammoth Energy reported total assets of $378.5 million. The company has been focusing on reducing debt, having paid off amounts owed under its term credit facility in October 2024.
Recent Developments
In October 2024, Mammoth Energy received the first two installment payments under a settlement agreement with PREPA, totaling $168.4 million, which will be used to invest back into the business and for general corporate purposes.
Stock Performance
The stock performance of Mammoth Energy Services, Inc. (TUSK) has been volatile, reflecting the company's operational challenges and market conditions in the energy sector. As of late 2024, the stock trades at approximately $2.00 per share, down from highs earlier in the year.
How Mammoth Energy Services, Inc. (TUSK) Makes Money
Revenue Streams
Mammoth Energy Services, Inc. operates primarily through four divisions: Well Completion Services, Infrastructure Services, Natural Sand Proppant Services, and Drilling Services. Each division contributes differently to the revenue and financial performance of the company.
1. Well Completion Services
For the three months ended September 30, 2024, the Well Completion Services division generated revenue of $2.2 million, a significant decrease of 89% compared to $20.3 million in the same period of 2023. The decline is attributed to reduced utilization of pressure pumping services, with only one pump down fleet active during the quarter compared to an average of 1.2 fleets in the prior year.
2. Infrastructure Services
The Infrastructure Services division reported revenue of $26.0 million for the three months ended September 30, 2024, down from $26.7 million in 2023, representing a 3% decrease. This decline was driven by a reduction in average crew count from 81 crews to 77 crews; however, it was partially offset by increased transmission revenue.
3. Natural Sand Proppant Services
Revenue from the Natural Sand Proppant Services division was $4.9 million for the three months ended September 30, 2024, down from $10.6 million in 2023, marking a decrease of 54%. This was due to a 54% decline in tons sold from 352,276 tons in 2023 to 163,297 tons in 2024, alongside a 24% drop in the average sales price per ton, from $30.18 to $22.89.
4. Drilling Services
The Drilling Services division brought in $1.6 million in revenue for the three months ended September 30, 2024, compared to $2.3 million in 2023, reflecting a 30% decrease. This reduction was primarily due to decreased utilization of directional drilling services, which declined from 37% in 2023 to 28% in 2024.
Financial Overview
In total, Mammoth Energy Services reported a revenue of $40.0 million for the three months ended September 30, 2024, representing a 38% decrease from $65.0 million in the prior year. The following table summarizes the revenue by division for the three months ended September 30, 2024 and 2023:
| Division | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Well Completion Services | $2.2 | $20.3 | -89% |
| Infrastructure Services | $26.0 | $26.7 | -3% |
| Natural Sand Proppant Services | $4.9 | $10.6 | -54% |
| Drilling Services | $1.6 | $2.3 | -30% |
| Total Revenue | $40.0 | $65.0 | -38% |
Cost Structure
The total cost of revenue for Mammoth Energy Services was $37.97 million for the three months ended September 30, 2024, down from $52.82 million in 2023. The breakdown of costs by division is as follows:
| Division | Q3 2024 Cost of Revenue (in millions) | Q3 2023 Cost of Revenue (in millions) |
|---|---|---|
| Well Completion Services | $7.3 | $17.9 |
| Infrastructure Services | $22.5 | $22.1 |
| Natural Sand Proppant Services | $3.1 | $7.0 |
| Drilling Services | $1.5 | $2.2 |
| Total Cost of Revenue | $37.97 | $52.82 |
Net Loss
The net loss for the third quarter of 2024 was $24.0 million, compared to a net loss of $1.1 million for the same period in 2023. This substantial increase in losses is primarily due to the declines in utilization across key service divisions and increased interest expenses related to financing charges.
Liquidity Position
As of September 30, 2024, Mammoth Energy Services had cash and cash equivalents of $4.2 million, down from $16.6 million at the end of 2023. The company had a revolving credit facility borrowing base of $20.4 million and total liabilities amounting to $174.3 million.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $4.2 million | $16.6 million |
| Revolving Credit Facility Borrowing Base | $20.4 million | $27.0 million |
| Total Liabilities | $174.3 million | $238.4 million |
Conclusion
The financial performance of Mammoth Energy Services in 2024 reflects significant challenges, particularly in its well completion and natural sand proppant services divisions, leading to reduced revenue and increased operating losses.
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Article updated on 8 Nov 2024
Resources:
- Mammoth Energy Services, Inc. (TUSK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mammoth Energy Services, Inc. (TUSK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mammoth Energy Services, Inc. (TUSK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.