After U.S. markets closed for trading yesterday afternoon, energy services company Mammoth Energy Services Inc. (TUSK:NASDAQ), which is engaged in the construction and repair of the electric grid for utility firms and as a provider of products and services for onshore oil and gas developers, announced financial and operating results for the second quarter of 2022 ended June 30, 2022.
The company reported that total revenue in Q2/22 increased by 89.24% to $89.7 million, compared to $47.4 million in Q2/21 and was up 43.98% sequentially over the $62.3 million registered in Q1/22.
The firm indicated that in Q2/22 it posted a net income of $1.7 million, or $0.04 per share, versus a net loss of $34.8 million, or a net loss of $0.75 per share during Q2/21. Mammoth Energy added that for Q2/22 it had adjusted EBITDA of $23.0 million, up from adjusted EBITDA of ($3.3) million in Q2/21 and $9.3 million during Q1/22.
Mammoth Energy Services' CEO Arty Straehla stated, "Our significant second-quarter growth in revenue, net income, and Adjusted EBITDA resulted from substantial gains in Infrastructure Services, Well Completion Services, and our Sand business."
CEO Straehla commented further that the company has continued to add crews to its Infrastructure Services division and now has more than one hundred crews available for deployment to meet seasonal demand for storm restoration services in H2/22.
Straehla added, "Our Well Completion Services division posted the strongest quarter we've seen since mid-2019 resulting from the robust macro demand that the pressure pumping industry is experiencing … Our Sand business is also experiencing strong demand, as well as increased pricing, which we believe will continue to improve into the back half of the year and into 2023."
The company provided a breakdown of its revenue by business segment and indicated that revenues from its infrastructure services division during Q2/22 totaled $25.6 million, compared to $18.4 million in Q2/21. Mammoth attributed the rise to an increase in damages from storm activity which in turn resulted in higher storm restoration revenue.
The firm noted that revenue from its well-completion services division in Q2/22 came in at $43.8 million on 1,716 stages, versus $17.4 million on 520 stages in Q2/21. The company noted that it saw significant improvement in activity from its pressure-pumping fleets.
The firm added that in Q2/22, its proppant services division contributed revenue of $15.5 million, up from $6.9 million in Q2/21. Mammoth listed that during the most recent quarter it sold roughly 350,000 tons of sand ( at $26.86/ton), compared to around 255,000 tons (at $15.80/ton) in Q2/21.
Mammoth Energy Services is an Oklahoma City, Okla.-based service provider to the electric utility and oil and gas industries. The firm aids private and public electric utilities in constructing and repairing electric grid infrastructure including transmission, distribution, and logistics. In addition, the company offers products and onshore services to North American oil and gas exploration and development (E&P) firms focused on extraction of unconventional oil and natural gas. Mammoth provides these E&P companies with a broad range of services including infrastructure buildout along with well completion, natural sand and proppant, and drilling services.
Mammoth Energy started the day with a market cap of around $112.8 million with approximately 47.2 million shares outstanding. TUSK shares opened almost 6% higher today at $2.53 (+$0.14, +5.86%) over yesterday's $2.39 closing price. The stock has traded today between $2.45 and $2.98 per share and is closed for trading at $2.92 (+$0.53, +22.18%).
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