Mammoth Energy Services(US:TUSK)2024-05-04 17:35Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $43.2 million, down 18% from $52.8 million in Q4 2023, primarily due to lower activity in natural gas-heavy basins and declining North American energy prices [11][40] - Net loss for Q1 2024 was $11.8 million compared to a net loss of $6 million in Q4 2023 [40] - Adjusted EBITDA for Q1 2024 was $4.5 million, a decrease from $10.5 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - The well completions division faced challenges with only 380 stages pumped using 0.6 fleets on average, down from 669 stages and 0.9 fleets in Q4 2023, due to lower natural gas prices [38] - Infrastructure services revenue was $25 million in Q1 2024, down from $27.2 million in Q4 2023, attributed to lower storm-related work [13][31] - The sand division sold approximately 146,000 tons of sand at an average price of $24.38 per ton, compared to 104,000 tons at $23.62 in Q4 2023, indicating improved demand [39] Market Data and Key Metrics Changes - The company noted a decline in activity in natural gas-heavy basins, but anticipates increased demand for natural gas later in 2024 [11][33] - The infrastructure sector is seeing an uptick in bidding activity, particularly in transmission and distribution projects [32][21] Company Strategy and Development Direction - The company is focused on aligning capital expenditures with customer demand, revising its CapEx budget for 2024 to approximately $9 million, a decrease of $6 million from previous guidance [14] - The company is strategically positioning itself for growth in infrastructure services, particularly in T&D and fiber projects, as well as exploring opportunities to relocate assets to more oily basins [6][7][32] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2024, expecting a meaningful increase in activity and improved adjusted EBITDA results [9][11] - The company is prepared for an active storm season and is optimistic about growth in the infrastructure sector due to the Infrastructure Investment and Jobs Act [6][9] Other Important Information - The company received $64 million from PREPA in 2024, but still has approximately $349 million owed in principal and interest [35] - The company maintains a strong liquidity position with $22 million in cash and an undrawn revolving credit facility [42][43] Q&A Session Summary Question: Thoughts on labor market balance and maintaining staff - Management noted that while the labor market is competitive, they are successfully attracting talent, particularly in T&D, and have seen improvements compared to six months ago [51] Question: Revenue side and imminent infrastructure projects - Management confirmed robust bidding activity in infrastructure and mentioned ongoing transmission jobs, indicating a competitive position for upcoming bids [48][55] Question: Interest and financing charges spike - The spike in interest charges was primarily due to the SPCP agreement, with $5 million impacting Q1 2024, which is a one-time charge [23][24]