Mammoth Energy Service Inc. reported financial and operational results for the three months ended March 31, 2017.
• Total revenue was $74.4 million for the three months ended March 31, 2017, up 11 percent from $34.5 million for the three months ended March 31, 2016.
• Net loss for the three months ended March 31, 2017, was $4.9 million, an improvement of $16.2 million from a net loss of $21.1 million for the three months ended March 31, 2016. Mammoth reported adjusted EBITDA of $11.1 million and $(1.6) million for the three months ended March 31, 2017 and 2016, respectively.
• Acquisitions of Taylor Frac and the Chieftain Sand assets are both on track to close in the second quarter of this year. Once the expansion of the Taylor facility to 1.75 million tons per annum (Mtpa) of capacity is completed later this year, Mammoth will be capable of processing ~4 Mtpa of high-quality frac sand in direct support of its pressure pumping fleets with estimated reserves of 67 million tons.
• Liquidity at March 31, 2017, was approximately $156 million, comprised of cash on hand of $12.3 million and an undrawn revolving credit facility with a borrowing base of $144.1 million. “We anticipate our borrowing base to grow once we close the pending acquisitions of Taylor Frac, Stingray Cementing, Stingray Energy Services and Chieftain Sand assets and our fourth, fifth and sixth fleets begin operating,” the company noted.
Arty Straehla, Mammoth’s chief executive officer, stated, “Mammoth posted another solid quarter generating $11.1 million in EBITDA as we re-staffed our third fleet in the Northeast and moved toward a June 1 startup of our fourth fleet in the SCOOP/STACK. Upon the closing of the pending acquisitions of Taylor Frac and the Chieftain Sand assets we will add significant sand reserves and processing capacity, which will further differentiate us from our peers as a fully integrated completion company, and will ensure a stable sand supply for our pressure pumping fleets. Demand for our pressure pumping fleets remains high with our frac calendar fully booked into the fourth quarter of 2017. Given the increase in the land rig count so far this year, we feel that the pressure pumping market is still undersupplied despite the recent reactivations, which should allow for further price increases as we progress throughout the remainder of the year and into 2018.”
Mammoth’s natural sand proppant segment contributed revenues of $14.2 million for the three months ended March 31, 2017, compared to $5.1 million for the three months ended March 31, 2016, an increase of 178 percent. The company sold 227,840 and 66,500 tons of sand for the three months ended March 31, 2017 and 2016, respectively.
The average FOB mine gate price increased to $35.18 per ton in the first quarter of 2017, up 24 percent sequentially as industry activity increased and the demand for frac sand remained strong.