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MAMMOTH ENERGY SERVICES, INC. (TUSK)·Q4 2024 Earnings Summary

Executive Summary

  • Revenue rose 33% sequentially to $53.2M, driven by improved pressure pumping utilization and steady infrastructure demand; Adjusted EBITDA improved to -$4.8M from -$6.4M in Q3, though still negative .
  • EPS was -$0.32 versus -$0.50 in Q3 and -$0.12 in Q4 2023; management emphasized cost controls and highlighted debt-free status and strong liquidity post-PREPA settlement .
  • Infrastructure added roughly 20 crews late in the quarter and entered 2025 with over 100 crews operating, aiming to capitalize on utility demand, data centers, AI, and nuclear-related tailwinds .
  • Potential stock catalysts: natural gas/LNG demand inflection later in 2025 (two fleets active exiting December), debt-free balance sheet, accretive capital deployment in equipment rentals and selective M&A .

What Went Well and What Went Wrong

What Went Well

  • Sequential improvement: revenue +33% q/q to $53.2M and Adjusted EBITDA loss narrowed to -$4.8M; “We benefited from improved pressure pumping utilization during the quarter” .
  • Infrastructure momentum: “There are significant bidding opportunities… engineering, fiber, transmission and distribution,” with over 100 field crews and ~20 crews added in the last 90 days .
  • Balance sheet and liquidity strengthened post-PREPA receipts; debt-free with year-end unrestricted cash of $61.0M and total liquidity $78.7M; as of March 5, 2025 liquidity rose to $91.0M .

What Went Wrong

  • Still loss-making: EPS -$0.32 (vs -$0.50 in Q3), net loss -$15.5M; Adjusted EBITDA remains negative despite sequential improvement .
  • Well Completion Services remains subscale vs 2023: Q4 revenue $15.8M on ~1.1 fleets vs broader 2023 activity; division experienced sharp trough in Q3 (no fleets active) .
  • Sand volumes/pricing below prior-year levels; Q4 sand tons 129k at $22.54/ton vs 104k at $23.62 in Q4 2023 and 163k at $22.89 in Q3; full-year sand revenue fell to $19.1M vs $39.1M in 2023 .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$52.8 $40.0 $53.2
Diluted EPS ($USD)-$0.12 -$0.50 -$0.32
Adjusted EBITDA ($USD Millions)$10.5 -$6.4 -$4.8
SG&A ($USD Millions)$8.3 $8.7 $9.9
SG&A (% of Revenue)16% 22% 19%
Interest Expense & Financing Charges, net ($USD Millions)$6.8 $9.7 $4.8

Segment external revenue ($USD Millions):

SegmentQ4 2023Q3 2024Q4 2024
Well Completion Services$15.741 $1.305 $15.714
Infrastructure Services$27.229 $26.043 $27.870
Natural Sand Proppant Services$4.464 $4.909 $5.118
All Other Services$5.348 $7.758 $4.498

KPIs:

KPIQ4 2023Q3 2024Q4 2024
Infrastructure avg. crew count (crews)78 77 86
Well Completion fleets utilized (avg)0.9 0.0 1.1
Sand volumes (tons)104,000 163,000 129,000
Sand ASP ($/ton)$23.62 $22.89 $22.54
Capital Expenditures ($USD Millions)$4.132 $1.897 $6.098
Cash & Equivalents at period-end ($USD Millions)$16.556 $4.165 $60.967
Total Liquidity ($USD Millions)N/A$17.9 $78.7

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
CapEx budget ($USD Millions)FY 2025N/A$12.0 (approx. half to rentals; ~$5.0 to pressure pumping upgrades, balance demand-dependent) New
SG&A – Puerto Rico professional feesFY 2025+N/AExpected to decline following PREPA settlement Lowered (expense)
Liquidity (as of date)As of Mar 5, 2025N/ATotal liquidity $91.0M; unrestricted cash $64.8M; undrawn revolver Improved
Potential near-term profitabilityQ1 2025N/AManagement anticipates positive Adjusted EBITDA in Q1 2025 (prelim.) Raised outlook
Share repurchase capacityThrough Mar 31, 2026N/APermitted up to lesser of $50M or 10M shares, subject to cash >$50M post buyback (credit facility amendment) New authorization capability

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Natural gas/LNG demand driverPREPA settlement overshadowed; WCS softness, expectation of improved 2025 fundamentals Softness bottomed; rebound expected; debt-free post PREPA Upside potential later in 2025; exited Dec with 2 fleets; utilization improving Improving
Infrastructure demand (engineering, fiber, T&D)Sequential growth in infra; crew count rising Infra steady; 77 crews; debt-free set to invest Significant bidding; ~20 crews added; over 100 crews in field Strengthening
Sand pricing/volumesVolumes/pricing down vs 2023; shortfall revenue recognized Volumes/pricing lower; 163k tons at $22.89 129k tons at $22.54; pricing stabilizing late year Stabilizing
Capital allocation/Balance sheetExpect PREPA proceeds; plan to retire term debt Received $150M and $18.4M; debt fully repaid; cash $86.2M by Oct 30 Debt-free; unrestricted cash $61.0M at YE; liquidity $78.7M; evaluating accretive opportunities De-risked, optionality rising
Organizational leadershipN/ACEO retirement announced; transition to Phil Lancaster New CEO leading unlock-value strategy; focus on efficient execution Transition completed

Management Commentary

  • “There were signs of improvement in our results for the fourth quarter… we benefited from improved pressure pumping utilization… strong demand in engineering, fiber and T&D services.” — Phil Lancaster, CEO .
  • “Given our favorable outlook for the Infrastructure Services division, and the macro tailwinds… data centers, AI, nuclear developments, we are making strategic investments to add equipment and crews… over 100 crews operating in the field.” — Phil Lancaster, CEO .
  • “Adjusted EBITDA… was a negative $4.8 million for the fourth quarter… CapEx for the fourth quarter was approximately $6.1 million… our CapEx budget for the year is $12 million… approximately half to rentals; ~$5 million to pressure pumping upgrades.” — Mark Layton, CFO .
  • “We have a debt-free balance sheet with approximately $86 million in cash today (inclusive of $21 million restricted cash)… we plan to strategically utilize [cash] to make accretive investments.” — Phil Lancaster, CEO .

Q&A Highlights

  • Growth strategy: Focus on organic growth in infrastructure; added ~20 crews; rising demand from large IOUs and co-ops supports storm revenue; acquisitions considered opportunistically .
  • Rental business demand: Primarily E&P and service companies; broadened to construction; portfolio includes helicopters; aim to acquire high-quality assets at attractive prices .
  • Sand business outlook: Demand stabilizing; operating under max capacity with ability to expand as commodity pricing/demand improves .
  • CapEx allocation detail: ~50% to rental growth; ~$5M to pressure pumping upgrades, timing dependent on customer demand .
  • CEO priorities: Right-size to profitability, evaluate existing businesses, pursue acquisitions enabled by restored cash position .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue/EPS/EBITDA was unavailable due to retrieval limits; therefore, estimate comparisons are not provided in this recap [GetEstimates error].
  • Implication: Without published consensus, market reaction will hinge on sequential improvement, utilization trends, and capital deployment narratives rather than a formal beat/miss framework.

Key Takeaways for Investors

  • Sequential operational recovery with two fleets active exiting December and infrastructure strength; watch for LNG-driven natural gas tailwinds in 2H 2025 to sustain utilization gains .
  • Balance sheet optionality: debt-free with $78.7M liquidity at year-end and $91.0M as of March 5; sets stage for accretive asset purchases and rental fleet expansion .
  • Infrastructure is the near-term driver: bidding pipeline strong; crew count expanded; AI/data center electrification and nuclear projects underpin visibility .
  • Sand pricing stabilizing; volumes poised to recover with completions activity; monitor commodity cycles and customer budgets to gauge pace .
  • 2025 CapEx discipline (~$12M) aimed at high-return rentals and maintenance; flexibility to scale via leasing in infrastructure .
  • Legal/overhang resolution: PREPA settlement receipts de-risked, professional fees expected to decline, supporting margin normalization .
  • Near-term trading: narrative hinges on evidence of positive Adjusted EBITDA in Q1 2025 and continued utilization improvements; medium-term thesis focuses on capital deployment into rentals/M&A and infrastructure growth .