Shares of energy industry services company Mammoth Energy Services Inc. traded up 22% after the company reported financial results for the second quarter of 2022, which included significant increases in quarterly revenue, net profit and adjusted EBITDA.
After the US markets closed yesterday afternoon, the energy services company Mammoth Energy Services Inc. (TUSK: NASDAQ)which is engaged in the construction and repair of the power grid for utility companies and as a supplier of products and services to onshore oil and gas developers, announced its financial and operating results for the second quarter 2022 ended 30 June 2022.
The company reported that total revenue in Q2/22 increased 89.24% to $89.7 million from $47.4 million in Q2/21 and increased 43.98% sequentially compared to $62.3 million recorded in Q1/22.
The company reported that in Q2/22 it recorded net income of $1.7 million, or $0.04 per share, compared to a net loss of $34.8 million, or a net loss of $0.75 per share during Q2/21. Mammoth Energy added that for Q2/22 it had Adjusted EBITDA of $23.0 million, up from Adjusted EBITDA of ($3.3) million in Q2/21 and 9.3 million in Q1/22.
Mammoth Energy Services CEO Arty Straehla said, “Our significant growth in revenue, net income and adjusted EBITDA in the second quarter resulted from substantial gains in infrastructure services, completion services of wells and our Sand activity.
CEO Straehla added that the company has continued to add crews to its infrastructure services division and now has over 100 crews available for deployment to meet seasonal demand for catering services. after the storms in H2/22.
Straehla added, “Our Well Completion Services division had our strongest quarter since mid-2019, driven by strong macro demand in the pressure pumping industry… Our business Sable is also seeing strong demand, as well as rising prices, which we believe will continue to improve in the second half of the year and into 2023.”
The company provided a breakdown of its revenue by business segment and said revenue for its Infrastructure Services division during Q2/22 totaled $25.6 million, down from $18.4 million. in Q2/21. Mammoth attributed the increase to an increase in storm damage, which led to increased storm restoration revenue.
The company noted that its well completion services division’s revenue in Q2/22 was $43.8 million from 1,716 steps, compared to $17.4 million from 520 steps in Q2/21. The company noted that it had seen a significant improvement in the activity of its pressure pump fleets.
The company added that in Q2/22, its support services division generated revenue of $15.5 million, compared to $6.9 million in Q2/21. Mammoth reported that in the last quarter it sold around 350,000 tonnes of sand (at $26.86/ton), compared to around 255,000 tonnes (at $15.80/ton) in Q2/21.
Mammoth Energy Services is an Oklahoma City, Okla.-based service provider to the electric utility and oil and gas industries. The company helps private and public power utilities build and repair power grid infrastructure, including transmission, distribution and logistics. In addition, the company provides onshore products and services to North American oil and gas exploration and development (E&P) companies focused on the extraction of unconventional oil and natural gas. Mammoth provides these exploration and production companies with a wide range of services, including infrastructure construction as well as well completion, sand and natural proppants, and drilling services.
Mammoth Energy started the day with a market capitalization of around $112.8 million with around 47.2 million shares outstanding. Shares of TUSK opened almost 6% higher today at $2.53 (+$0.14, +5.86%) from yesterday’s closing price of $2.39. The stock traded today between $2.45 and $2.98 per share and closed at $2.92 (+$0.53, +22.18%).
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