Mammoth announces results, two startups

Mammoth Energy Services Inc. has started two new companies organically that will provide customers with engineering services and equipment manufacturing, officials announced Thursday.

Officials said the manufacturing business is expected to help the company repair its existing equipment and to manufacture equipment other companies use across Mammoth's business line.

“Given the current state of the oil-field services market, we continue to look for investment opportunities in the industrial sector that enhance our current service offerings and further diversify our cash flow,” Mammoth CEO Arty Straehla stated as part of the announcement.

The company included the news it had created the startups, which it didn't specifically identify by name, as part of its third-quarter 2019 earnings report.

The company reported a third- quarter 2019 net loss of $35.7 million, or 79 cents per share, on total revenues of about $113 million and an operating loss of about $ 48 million.

The company earned a net income of about $70 million, or $1.54 a share, on total revenues of about $384 million and operating income of about $145 million during the same period in 2018.

The company's third-quarter 2019 adjusted earnings amount before interest, taxes, depreciation and amortization was a negative $ 3.76 million. Its third- quarter 2018 adjusted earnings before interest, taxes, depreciation and amortization was about $184 million.

Year- over- year, most of Mammoth's units saw reduced third-quarter business.

The company's pressure

pumping services unit contributed revenues of $ 44.6 million in 2019, compared to $94.2 million in 2018.

Its sand proppant services unit contributed $ 18.4 million in 2019, compared to $37 million in 2018.

Its other services units contributed $20 million in 2019, compared to $35.7 million in 2018.

Its infrastructure services unit contributed $ 37.3 million in 2019, compared to $237.1 million in 2018.

Officials said that unit, however, turned in a better performance in the third quarter related to work it is doing in the continental United States than it did in the second quarter of 2019.

Officials said the unit was working 140 transmission and distribution crews in the continental U.S., as of Sept. 30.

The company's stock, traded on the Nasdaq under the symbol TUSK, closed up 9 cents per share Thursday, ending trading at $1.76.

[THE OKLAHOMAN ARCHIVES] Stingray Pressure Pumping, one of Mammoth's subsidiaries, completes a well. That segment of Mammoth's business earned less revenue during the third quarter of this year than it did the same time a year ago.