Mammoth Energy Services

Oilfield services company (OFS) Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Last time we checked in on the company was over a year ago. At that time MDN reported that Mammoth, a relatively new company formed in 2014, had bought itself a pair of sand mines (see OFS Mammoth Energy Buys Second Sand Co. to Keep on Frackin’). But something happened last year that escaped our notice. Mammoth is not only in the OFS line of work, they also do electrical transmission and distribution (“T&D”) work. Following last year’s disaster when Hurricane Maria devastated the Puerto Rico, Mammoth was hired to help rebuild the electric utility infrastructure on the island. The way we were alerted to Mammoth’s extracurricular activity in Puerto Rico was in spotting a Seeking Alpha investor article. The article (below) takes the approach that Mammoth’s stock value is overinflated by 50% due to the contract they have in Puerto Rico. The author says, rightly, that Mammoth is mainly an OFS company. He thinks when the Puerto Rico work is done, the underlying “weak” OFS customer base won’t be enough to keep Mammoth profitable. We don’t necessarily agree with his views about the company (although it wouldn’t hurt our feelings if Mammoth shed its T&D business). The author is an investor and is “short” on Mammoth, meaning he owns securities that bet on the price of Mammoth’s stock going down. The reason we bring you the following article is because it contains a lot of information about Mammoth–a still small but rapidly growing, and increasingly important, OFS company operating in our region…
Read More “Mammoth Energy Wanders into Non-Shale Work in Puerto Rico”

Oilfield services company Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Mammoth offers services like “completion and production services, natural sand proppant services, contract land and directional drilling services and remote accommodation services.” Mammoth is a baby company, formed in 2014, but already booking $243 million in revenue for the 12 months ended June 30th. In October, Mammoth announced an initial public offering (IPO) hoping to raise roughly $150 million (see Utica Oilfield Services Co. Mammoth Energy Floats ~$150M IPO). “If wishes were horses, beggars would ride,” as the old saying goes. The IPO didn’t perform as well as hoped, bringing in only $112 million (see Mammoth IPO Not So Mammoth After All – Priced at Low End). Yesterday Mammoth issued its third quarter 2016 update. There is a (very) brief bullet point talking about activity in the Utica Shale…
Read More “Mammoth Energy 3Q16: “Intense Fracs” in Utica Shale”

Two weeks ago MDN brought you news that oilfield services company Mammoth Energy Services, headquartered in Oklahoma City, OK, with operations in both the Utica Shale and Permian Basin, was floating a new initial public offering (see Utica Oilfield Services Co. Mammoth Energy Floats ~$150M IPO). The IPO, relatively small by most measures (hoping to raise ~$150 million) was closely watched because it’s one of the few new IPOs in the oil and gas sector this year. The IPO is done and the stock has begun to trade. How did they do? Mammoth targeted $15-$18 per share. They settled for the low-end $15/share. And after the trading began, the stock sank…
Read More “Mammoth IPO Not So Mammoth After All – Priced at Low End”