TUSK - Mammoth Energy Services: Dealing With Challenging Near-Term Business Conditions
2024-05-03 22:15:00 ET
Summary
- Mammoth's Q1 2024 results were quite weak, with negative $6 million in adjusted EBITDA, excluding PREPA interest.
- Only an average of 0.6 of its 6 pressure pumping fleets were active in Q1 2024.
- I still expect a 1H 2025 rebound in demand, but Mammoth will need to manage its liquidity for the rest of 2024.
- Mammoth's liquidity looks sufficient for 2024, but additional payments from PREPA would give it some more breathing room.
Mammoth Energy Services ( TUSK ) is dealing with challenging near-term business conditions. Mammoth's Q1 2024 results involved negative $6 million in adjusted EBITDA (after excluding interest from its Puerto Rico Electric Power Authority [PREPA] accounts receivable). Although I was expecting 2024 to be relatively weak for Mammoth (with adjusted EBITDA around $5 million for the full year), it now appears that it may generate significantly negative adjusted EBITDA for 2024....
Mammoth Energy Services: Dealing With Challenging Near-Term Business Conditions