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Mammoth results off, year-over-year

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Crews from Mammoth Energy Services' subsidiary Cobra Acquisitions repair power lines in west Texas in 2017. The company is concentrating now on serving clients who need electrical system repairs and upgrades in the continental U.S., officials say. [PROVIDED]
Crews from Mammoth Energy Services' subsidiary Cobra Acquisitions repair power lines in west Texas in 2017. The company is concentrating now on serving clients who need electrical system repairs and upgrades in the continental U.S., officials say. [PROVIDED]

Mammoth Energy Services' posted revenues and earnings for the first quarter of 2019 shows the effect of discontinued work the company had been doing a year ago in Puerto Rico.

The company reported Wednesday it earned a net income of $28.3 million, or 63 cents a share, on total revenues of $262 million, compared to a net income of $55.5 million, or $1.24 a share, on total revenues of $494 million during the same quarter in 2018.

First-quarter earnings before interest, taxes, depreciation and amortization was $82.8 million, compared to $131 million the same time a year ago.

The biggest drop in first-quarter year-over-year revenue was from Mammoth’s infrastructure division, which brought in $109 million during the first quarter of 2019 compared to $326 million the same time a year ago.

The division had been working with a utility that serves Puerto Rico to restore its electrical transmission and distribution systems by rebuilding poles and lines that were destroyed by Hurricane Maria.

Officials said Mammoth Energy had about 500 employees working in Puerto Rico in January. However, that number steadily declined the remainder of the quarter, as money Mammoth officials hoped to receive for continued improvements to Puerto Rico's system were not appropriated by Congress.

At the end of March, just a small contingent of non-billable personnel remained on the island working to continue the process of moving Mammoth equipment back to the mainland U.S. Meanwhile, the company is beginning to send crews from the division out to execute other jobs secured from clients on the mainland, officials said.

The company also reported Wednesday that first-quarter revenues from its pressure pumping, sand and other services divisions (which includes contract land and directional drilling, coil tubing, pressure control, flowback, cementing, acidizing, equipment rentals, crude oil hauling and remote accommodations) also were significantly down in a year-over-year comparison.

However, revenues from its pressure pumping and sand divisions were better in the first quarter of 2019 than they were the final quarter of 2018, officials noted.

Straehla noted Mammoth also has been able to significantly increase its price for northern white sand because of strengthening demand. The company reported it had sold 665,806 tons of sand during the first quarter, up 17% compared to the final quarter of 2018.

Arty Straehla, Mammoth’s CEO, attributed those improvements to a resetting of exploration and production company budgets for the new calendar year and to improving crude oil prices throughout the period.

“While pressure pumping pricing remains challenged, conversations with customers suggest the possibility for tighter industry conditions for the back half of the year,” he said.

Jack Money

Jack Money has worked for The Oklahoman for more than 20 years. During that time, he has worked for the paper’s city, state, metro and business news desks, including serving for a while as an assistant city editor. Money has won state and regional... Read more ›

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