Mammoth Energy Services(TUSK) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $53.2 million, a 33$40 million in Q3 2024 [21] - Full year 2024 total revenue was $187.9 million, down from$309.5 million in 2023 [21] - Net loss for Q4 2024 was $15.5 million, or a loss of$0.32 per diluted share, while the full year net loss was $207.3 million, or a loss of$4.31 per diluted share [27] - Adjusted EBITDA for Q4 2024 was a negative $4.8 million, an improvement from a negative$6.4 million in Q3 2024 [28] Business Line Data and Key Metrics Changes - Infrastructure services revenue for Q4 2024 was $27.9 million, a slight increase from$26 million in Q3 2024, with full year revenue flat at $110.4 million compared to$110.5 million in 2023 [23] - Well completion services generated $15.8 million in Q4 2024, with approximately 1.1 fleets utilized on average [25] - Sand division sold 129,000 tons of sand in Q4 2024 at an average price of$22.54 per ton, down from 163,000 tons at 22.89 in Q3 2024 [26] Market Data and Key Metrics Changes - The company noted improved pressure pumping utilization and strong demand across various businesses, including engineering, fiber, and T&D services [10] - There are significant bidding opportunities in the market related to engineering fiber transmission and distribution [14] - The company expects steady completions activity in 2025, with potential upside driven by natural gas demand and LNG export capacity [17] Company Strategy and Development Direction - The company aims to unlock value for shareholders while maintaining a strong balance sheet and evaluating strategic opportunities for accretive assets [11][12] - The focus is on organic growth, with an increase of 25% in crew count to meet growing utility demand [13] - Strategic investments are being made in infrastructure services to capitalize on favorable market conditions [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand for natural gas and the potential for improved financial performance in 2025 [22] - The company is focused on efficient cost management and aligning spending with customer demand [18] - Management emphasized the importance of disciplined operations and strategic capital allocation to unlock shareholder value [35] Other Important Information - The company had unrestricted cash of 61 million as of December 31, 2024, with total liquidity remaining strong and debt-free [32] - CapEx for Q4 2024 was approximately $6.1 million, with a budget of$12 million for 2025 primarily for growth in the equipment rentals business [29] Q&A Session Summary Question: Where is the best growth potential for the infrastructure business? - Management indicated that most growth is currently through organic means, with increased demand from larger IOUs and potential involvement with co-ops [38] Question: Can you provide details on the rental business and its growth drivers? - The rental business primarily serves E&P companies and other service companies, with opportunities in the construction market [42] Question: What is the outlook for the sand business in 2025? - Management noted stabilized demand and the ability to expand capacity as key drivers for growth in the sand business [44] Question: Can you break down the CapEx outlook for 2025? - Approximately half of the $12 million CapEx budget is allocated to growing the rental business, with about$5 million for pressure pumping upgrades [46] Question: What are the primary focuses for the company moving forward? - The focus is on rightsizing the company, evaluating existing businesses, and exploring potential acquisitions [48]