Mammoth Energy Services(US:TUSK)2022-03-04 16:10Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $57.2 million, down from $85.1 million in Q4 2020 and slightly down from $57.5 million in Q3 2021 [25] - Net loss for Q4 2021 was $13.3 million, compared to a net loss of $11.9 million in Q4 2020 and a net loss of $40.9 million in Q3 2021 [29] - Adjusted EBITDA for Q4 2021 increased to $17.2 million from $7.5 million in the same quarter last year and improved from a negative $29.7 million in Q3 2021 [29] - Capital expenditures (CapEx) for Q4 2021 were approximately $1.4 million, with full-year CapEx at $5.8 million, slightly above the guidance of $5 million [30] Business Line Data and Key Metrics Changes - The infrastructure business became cash flow positive and is expected to continue this trend into 2022, driven by strong macroeconomic conditions and federal infrastructure funding [8][9] - In the oilfield service business, two hydraulic fracturing fleets operated in Q4 2021, with a third fleet expected to start in April 2022 [12][36] - The sand division sold approximately 270,000 tons of sand in Q4 2021, with an average price of $17.84 per ton, up from $16.76 per ton for the full year [28] Market Data and Key Metrics Changes - The macroeconomic infrastructure backdrop is strong, particularly following the passage of the federal infrastructure bill, which is expected to drive demand for infrastructure services [8][15] - Improved oil and natural gas commodity pricing is driving positive industry movement, although the pace is more measured compared to past upcycles [12] Company Strategy and Development Direction - The company is focused on operational execution in the infrastructure segment, aiming to expand its geographic footprint and project depth [9][10] - Vertical integration of service offerings is seen as a competitive advantage, allowing for better cost control and scaling operations [11] - The company plans to continue pursuing opportunities in infrastructure services, particularly in fiber maintenance and installation contracts [9][40] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about macroeconomic trends driving increased demand for infrastructure and well completion services in 2022 [15] - The company is seeing positive developments regarding contracts with PREPA, with expectations for payments to be made as PREPA emerges from bankruptcy [33][34] Other Important Information - The company has cash on hand of $9.9 million and debt of approximately $86.7 million as of December 31, 2021 [30] - The engineering group has grown to 39 engineers, with a utilization factor of about 82% to 83% [42] Q&A Session Summary Question: Timeline for payments from PREPA - Management indicated that while there is no absolute date for payments, there is positive momentum with PREPA's bankruptcy proceedings and administrative claims [33][34] Question: Status of the third fleet and overall oilfield environment - The third fleet is expected to start in April 2022, with pricing improving compared to Q4 2021 [36] Question: Lead times for refurbishing fleets - Lead times for Tier-2 or Tier-4 engines are approximately 54 weeks, with supply chain issues affecting parts availability [38] Question: Updates on fiber and infrastructure contracts - The company has initiated its first fiber project and expects bidding opportunities to increase throughout 2022 due to infrastructure funding [39][40] Question: Future SG&A expenses - SG&A is expected to hover around $8 million to $8.5 million in 2022, following a reclassification of legal fees in Q4 2021 [45]