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revenue: Full-year revenue decreased 15% from $362.1 million in 2022 to $309.5 million in 2023.
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net loss: For the full year 2023, the company reported a net loss of $3.2 million. In comparison, his net loss in 2022 was $600,000.
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Adjusted EBITDA: Adjusted EBITDA in 2023 was $71 million, down from $86.1 million in the prior year.
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Liquidity: Total liquidity as of December 31, 2023 was $37.3 million, supported by payments from PREPA.
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capital expenditure: Capital expenditures for the full year 2023 totaled $19.4 million.
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Operational highlights: Revenues and completed stages decreased in well completion services and natural sand proppant services.
Mammoth Energy Services Inc (NASDAQ:TUSK) released its 8-K filing on March 1, 2024, detailing its fourth quarter and full year 2023 financial and operational results. The integrated energy services provider has had a difficult year, with annual revenue down 15% and a net loss due to postponed activities by exploration and production companies, volatile commodity prices and depleted customer budgets. faced.
Financial performance summary
The company's total revenue for the fourth quarter of 2023 was $52.8 million, a significant decrease from $102.9 million in the same period last year. Full-year revenue also decreased from $362.1 million in 2022 to $309.5 million in 2023. Net income for the fourth quarter of 2022 was $4.8 million, while net loss for the fourth quarter was $6.0 million. The net loss in 2023 was $3.2 million, worse than the $600,000 net loss in 2022. Adjusted EBITDA for the fourth quarter was $10.5 million, down from $24.1 million in the year-ago period and for the full year, $71 million. In 2022, it will rise to $86.1 million.
Operational challenges and achievements
Mammoth CEO Artie Storara acknowledged that the company faced operational difficulties in the fourth quarter, citing industry-wide challenges. Nevertheless, the company achieved several milestones, including a major debt refinancing transaction and receiving payment on outstanding receivables from the Puerto Rico Electric Power Authority (PREPA). These payments increased the company's liquidity and enabled it to invest in its business.
“We ended 2023 with a strong balance sheet and secure financing structure for Mammoth's future growth,” Storara said.
Segment performance
Revenue from the Well Completion Services segment decreased to $16.1 million in the fourth quarter from $51.4 million in the same period in 2022. The Infrastructure Services segment reported a slight decrease in revenue for the fourth quarter, at $27.2 million, compared to $29.6 million for the same period. last year. Natural Sand Propant Services segment revenue decreased to $4.5 million in the fourth quarter from $13.8 million in the same quarter of 2022. Drilling services and other services also reported a decline in revenue.
Liquidity and capital expenditures
As of December 31, 2023, Mammoth had cash on hand of $16.6 million and total liquidity of $37.3 million. The company's full-year 2023 capital expenditures were $19.4 million, the majority of which was dedicated to well completion services.
I'm looking forward to
Mammoth Energy Services, Inc. (NASDAQ: TUSK) is optimistic about 2024 as the outlook for the infrastructure and sand sectors is improving, and the company is planning opportunistically for its well completion business. The company's focus on safety and high quality standards, as well as its strengthened balance sheet, positions it for potential growth next year.
For more information on Mammoth Energy Services Inc.'s (NASDAQ:TUSK) financial results, please see the full 8-K filing.
For more information, see Mammoth Energy Services Inc's full 8-K earnings release here.
This article first appeared on GuruFocus.
