Mammoth Energy Services Reports Significant Revenue and Profit Declines in Q3 and Nine Months Ended September 30, 2024

Mammoth Energy Services, Inc. reported significant declines in revenue and profitability for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for Q3 2024 was $40.0 million, a decrease of 38% from $65.0 million in Q3 2023. For the nine months ended September 30, 2024, total revenue fell to $134.7 million, down 48% from $256.7 million in the prior year. The decline was primarily attributed to reduced demand for well completion services and natural sand proppant services, with well completion revenue plummeting 89% to $2.2 million in Q3 2024 from $20.3 million in Q3 2023.

The company's operating loss for Q3 2024 was $(12.6) million, compared to a loss of $(8.9) million in Q3 2023. For the nine months ended September 30, 2024, the operating loss escalated to $(119.4) million, significantly higher than the $(9.9) million loss reported in the same period in 2023. The net loss for Q3 2024 was $(24.0) million, or $(0.50) per share, compared to a net loss of $(1.1) million, or $(0.02) per share, in Q3 2023. Cumulatively, the net loss for the nine months ended September 30, 2024, reached $(191.8) million, contrasting sharply with a net income of $2.8 million for the same period in 2023.

Mammoth Energy's financial challenges were compounded by a significant charge of $89.2 million related to a settlement agreement with the Puerto Rico Electric Power Authority (PREPA), which has been under bankruptcy proceedings since 2017. The settlement, approved in July 2024, allows for an administrative expense claim of $170.0 million, with the first installment of $150.0 million received on October 1, 2024. The company also recorded a non-cash, pre-tax charge of approximately $170.7 million in Q2 2024 to reduce its accounts receivable from PREPA.

In terms of operational adjustments, Mammoth Energy has temporarily shut down certain oilfield service offerings and idled facilities in response to market conditions. The company activated one pressure pumping fleet and plans to activate a second in the near future, although overall activity is expected to remain flat in early 2025. The Infrastructure Services segment reported a slight revenue decrease to $26.0 million in Q3 2024, down from $26.7 million in Q3 2023, primarily due to a reduction in crew count.

As of September 30, 2024, Mammoth Energy had cash and cash equivalents of $4.2 million, a significant decrease from $16.6 million at the end of 2023. The company’s total liabilities were reported at $43.3 million, down from $60.6 million at the end of the previous year. The company continues to evaluate acquisition opportunities, particularly in the renewable energy sector, while focusing on operational efficiencies and disciplined spending amid ongoing market challenges.