Mammoth Energy Services(US:TUSK)2023-11-09 19:23Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $65 million, down from $107.2 million in Q3 2022, primarily due to lower utilization in the well completion services division [10] - Net loss for Q3 2023 was $1.1 million, compared to net income of $7.7 million in the same quarter last year [12] - Adjusted EBITDA for Q3 2023 was $13.4 million, a decrease from $29.8 million in Q3 2022 [12] - Capital expenditures for Q3 2023 were approximately $4.7 million, with an expected total CapEx budget of $18 million for 2023 [12][13] Business Line Data and Key Metrics Changes - Well completion services division saw a decrease in activity, pumping 577 stages with an average utilization of 1.2 fleets, compared to 1,897 stages and 3.5 fleets in Q3 2022 [10] - Sand division sold approximately 352,000 tons of sand in Q3 2023, up from 341,000 tons in Q3 2022, with an average price of $30.18 per ton compared to $29.95 per ton last year [11] - Infrastructure Services Division generated revenue of $26.7 million in Q3 2023, down from $33.3 million in the same quarter last year [12] Market Data and Key Metrics Changes - The company noted challenges in the U.S. onshore activity and weakness in natural gas basins, impacting utilization in well completion services [5] - There are expectations for improved funding from the Infrastructure Investment and Jobs Act, which is anticipated to increase bidding activity in late 2023 and into 2024 [6] Company Strategy and Development Direction - The company is focused on managing costs and constraining capital expenditures while preparing for increased completion activity in 2024 [5] - The infrastructure business is positioned for long-term growth, particularly in fiber and substation projects [6][7] - The company aims to leverage its diversified business model and operational efficiencies to adapt to changing market conditions [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about increasing completion activity and improving fleet counts in 2024 [5] - The company is encouraged by the potential for growth in its infrastructure segment and believes it is well-positioned for future opportunities [6][7] - Management acknowledged the challenges faced in the current year but highlighted the resilience and capabilities of their teams as a catalyst for future performance improvement [14] Other Important Information - The company successfully refinanced its credit facility, establishing a new five-year revolving credit facility of up to $75 million and a term loan of $45 million [4] - As of September 30, 2023, the company had cash on hand of $10.5 million and total liquidity of approximately $21.5 million [13] - The company is still owed over $394 million by PREPA for work completed, with ongoing efforts to pursue payment [8] Q&A Session Summary Question: Inquiry about new loan agreements and interest rate calculation - Management confirmed that the revolving credit facility is priced at SOFR plus 225, and the term loan is priced at SOFR plus 750 [16] Question: Expectations on bringing back furloughed crews - Management indicated confidence in ramping up operations in Q1 2024, leveraging both former employees and new hires to fill experienced crews [18]