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% sequential increase from $40 million in Q3 2024 [21] - Full year 2024 total revenue was $187.9 million, down from $309.5 million in 2023, primarily due to decreased utilization in well completion services [21][22] - 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, improving 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, slightly up 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 an average of 1.1 fleets utilized [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] 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] - Strategic investments are being made to add equipment and crews in response to growing utility demand [15] - The focus for 2025 includes organic growth, particularly in infrastructure services, with potential for acquisitions if beneficial [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand implications for natural gas driven by LNG export capacity and electricity demand [22] - The company expects steady completions activity in 2025 with potential upside from natural gas demand [17] - Management emphasized disciplined capital stewardship and alignment of spending with customer demand [26] 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 focused on growth and maintenance [29] Q&A Session Summary Question: Where is the best growth potential for the infrastructure business? - Management indicated that most growth is currently organic, with increased demand from larger IOUs and potential for co-op involvement [38] Question: Can you provide details on the rental business and its growth drivers? - The rental business primarily serves E&P companies, with opportunities in the construction market and a broad portfolio of assets including helicopters [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 includes rightsizing the company, evaluating existing businesses, and exploring potential acquisitions now that the company has cash available [48]