Mammoth posts quarterly, annual results

Mammoth Energy Services experienced a slowdown in business during the final quarter of 2018, but not enough to derail improvements in its year-over-year returns.

The company stated after markets closed Thursday it had earned a net income in 2018 of $236 million, or $5.24 a share, on total revenues of about $1.7 billion and an operating income of about $395 million.

In 2017, Mammoth posted a net income of about $59 million, or $1.42 a share, on total revenues of about $692 million and an operating income of about $62.8 million.

The company reported it earned a fourth-quarter net income of $68.2 million, or $1.51 a share, on total revenues of about $278 million and operating income of about $48.9 million. In the final quarter of 2017, it earned a net income of about $65.9 million, or $1.48 a share, on total revenues of about $369 million and operating income of about $77.4 million.

Officials said the company experienced business slowdowns the final quarter of the year in three of its significant operational segments.

They said nearly $160 million in fourth-quarter 2018 revenue contributed by the company's infrastructure services business, which involves repairing, replacingand building new electrical transmission and distribution systems, declined by 33 percent compared to the third quarter of 2018 and also was 24 percent less than its contribution the final quarter of 2017.

The company's pressure pumping services unit, meanwhile, contributed $72.8 million in revenue the final quarter of 2018, off 23 percent from the third quarter and off 35 percent from the final quarter of 2017.

And its proppant services unit contributed $27.4 million in revenue the final quarter of 2018, off 26 percent from the third quarter and off 38 percent from the final quarter of 2017.

However, the company posted notable 2018 annual growth numbers.

Mammoth's infrastructure services division contributed $1.1 billion in revenues to the business, up 382 percent compared to 2017. Its pressure pumping services division contributed $369.5 million in revenues to the business, up 32 percent compared to 2017.

And its proppant services division contributed $168.3 million in revenues to the business, up 44 percent compared to its 2017 contribution.

Mammoth Chief Executive Officer Arty Straehla described 2018 as a strong year for the business, given that it posted record amounts of revenue, net income and adjusted earnings.

“In addition, we strategically invested in high margin businesses, returned $11 million to stockholders through dividends and positioned ourselves to take advantage of merger and acquisition opportunities,” Straehla said.

“Despite continuing volatility in commodity prices and reductions in capital expenditure budgets at many of our customers, oilfield activity levels have been improving so far in 2019. Our six frac fleets have experienced full utilization since late January and demand and pricing for our sand is getting stronger.”

Mammoth shares, traded under the ticker symbol TUSK, fell 84 cents to $20.46 a share in trading Thursday.