Mammoth profits, revenue soar on power contracts

Mammoth Energy Services Inc. on Monday reported a second-quarter profit of $42.7 million as revenues surged on the strength of more than $1.8 billion in contracts to help restore electricity in Puerto Rico.

Second-quarter revenues ballooned to $534 million, up 443 percent from $98.3 million in the year-ago period. The company’s infrastructure services sector — which includes subsidiary Cobra Acquisitions LLC and its power restoration teams — accounted for much of the revenue growth, jumping to $360 million from $1.7 million in the second quarter of 2017.

Mammoth and Cobra in October 2017 received a 120day, $200 million contract to begin emergency work in Puerto Rico to help restore power following Hurricane Maria.

The contract more than doubled to $445 million in January and doubled again to $950 million in March.

The company in May signed an additional, one-year, $900 million contract to complete the emergency restoration and begin broader efforts to

strengthen the island’s power system.

Mammoth’s oil-field services divisions also grew in the second quarter as the company completed the purchase of oil trucking company WTL Oil LLC and cementing company RTS Energy Services LLC.

Mammoth already has expanded both company’s offerings, growing WTI to 49 trucks from 20 and increasing RTS’s service offerings in the Permian Basin, Mammoth said Monday.

Mammoth in the second quarter also extended its pressure pumping and sand contracts with Oklahoma City-based Gulfport Energy Corp. through 2021.

Mammoth also repaid its credit facility, eliminating its long-term debt, which totaled $99.9 million at the end of 2017. The company finished the quarter with $10.7 million in cash and almost $163 million in borrowing capacity under its revolving credit facility.

“The second quarter marked a milestone for Mammoth as we were able to completely repay our debt, further expand our services through two acquisitions and organically grow our current businesses all with internally generated cash flows,” CEO Arty Straehla said. “Most importantly, we initiated a regular quarterly dividend to return some cash to our stockholders.

“As we look to the future, we see significant growth potential in various areas of the industrial space to bring additional balance to our asset base and revenue stream.”

Mammoth directors in July declared a quarterly cash dividend of 12.5 cents per share, payable Aug. 14 to shareholders as of Aug. 7. Mammoth’s secondquarter profit of $42.7 million translates to 95 cents a share and is up from a loss of $1.17 million, or 3 cents a share, one year ago.

Adjusted or onetime items, the company reported a profit of $60.2 million, or $1.34 a share, up from an adjusted loss of $1.17 million, or 3 cents a share one year ago.

Adjusted earnings before interest, taxes, depreciation and amortization was $149 million, up from $15.2 million in the second quarter of 2017.