Mammoth Energy Services, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with a net loss of $207.3 million, or $4.31 per diluted share, compared to a net loss of $3.2 million, or $0.07 per diluted share, in 2023. The substantial loss was primarily attributed to a non-cash, pre-tax charge of approximately $170.7 million related to the company's settlement agreement with the Puerto Rico Electric Power Authority (PREPA). Total revenue for the year decreased by 39% to $187.9 million from $309.5 million in the previous year, driven by reduced utilization in the well completion services division and a decline in sales volumes in the natural sand proppant services segment.
In terms of operational metrics, the well completion services division saw a dramatic revenue drop of 73%, totaling $34.0 million, as the number of completed stages fell by 66% to 1,454. The infrastructure services division's revenue remained relatively stable at $110.4 million, while the natural sand proppant services division experienced a 51% revenue decline to $19.1 million, largely due to a 53% decrease in tons sold. The company also reported a decrease in its average crew count from 83 to 79 in the infrastructure services division, reflecting a slight contraction in operational capacity.
Strategically, Mammoth Energy has focused on enhancing its infrastructure services, particularly in response to the Infrastructure Investment and Jobs Act, which has opened up new opportunities for growth. The company has also made significant changes to its operational structure, including the merger of several subsidiaries into Orca Energy Services LLC, aimed at streamlining operations and improving efficiency. As of December 31, 2024, the company had 639 full-time employees, a reduction from previous years, reflecting the ongoing adjustments to align with market conditions.
Looking ahead, Mammoth Energy anticipates a relatively steady completion activity in 2025, with potential upside driven by increased demand for natural gas and LNG export capacity. The company remains cautious about the volatility in oil and natural gas prices, which significantly impacts customer spending and, consequently, the demand for its services. The management is committed to maintaining a conservative balance sheet, having paid off all amounts owed under its term credit facility and terminated the facility in October 2024. The company ended the year with unrestricted cash of $61.0 million and no outstanding debt, positioning itself to navigate the challenges ahead while exploring opportunities for growth and expansion in its service offerings.
About MAMMOTH ENERGY SERVICES, INC.
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