Business
Mammoth Energy Services, Inc. Announces Second Quarter 2024 Operational and Financial Results
OKLAHOMA CITY, Aug. 9, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported financial and operational
About this update from Mammoth Energy Services, Inc.
[{"type":"text","content":"OKLAHOMA CITY, Aug. 9, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. (\"Mammoth\" or the \"Company\") (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June 30, 2024.\n\nFinancial Overview for the Second Quarter 2024:Total revenue was $51.5 million for the second quarter of 2024 compared to $43.2 million for the first quarter of 2024.\nNet loss for the second quarter of 2024 was $156.0 million, or $3.25 loss per diluted share, compared to net loss of $11.8 million, or $0.25 loss per diluted share, for the first quarter of 2024.\nAdjusted EBITDA (as defined and reconciled below) was ($160.7) million for the second quarter of 2024 compared to $4.5 million for the first quarter of 2024. During the second quarter of 2024, the Company recognized expense of $170.7 million related to the settlement between Mammoth's subsidiary Cobra Acquisitions LLC (\"Cobra\") and the Puerto Rico Electric Power Authority (\"PREPA\"). Excluding this non-recurring expense and interest income previously accrued on the receivable with PREPA, Adjusted EBITDA would have been ($0.3) million for the second quarter of 2024 compared to ($6.0) million for the first quarter of 2024.\nSettlement AgreementAs previously announced, on July 22, 2024, Mammoth's subsidiary Cobra entered into a release and settlement agreement to settle all outstanding matters between Cobra and PREPA (the \"Settlement Agreement\"). As a result of the Settlement Agreement, the Company expects to receive $188.4 million in total settlement proceeds. During the second quarter of 2024, the Company recorded a non-cash, pre-tax charge of approximately $170.7 million, of which $89.2 million was charged to credit loss expense, which is included in \"selling, general and administrative\" and $81.5 million was charged to interest on delinquent accounts receivable, which is included in \"other income, net\" in relation to the Settlement Agreement.\nArty Straehla, Chief Executive Officer of Mammoth commented, \"We are pleased to report sequential improvement in our second quarter results, compared to the first quarter, despite continued challenges that persist due to industry activity softness, especially in the natural gas basins that we operate, constraining our Well Completion Services division and other oilfield services. Our Infrastructure Services...