Q4 2024 Mammoth Energy Services Inc Earnings Call

Operator: Greetings and welcome to the Mammoth Energy Services 2024 fourth quarter and full year results. At this time, all participants are on a listen only. A question and answer session will follow the formal presentation.

Greetings and welcome to the Mammoth Energy Services' 2020 for fourth quarter and full year results.

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone. As a reminder, this conference is being recorded.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.

Rick Black: It is now my pleasure to introduce your host, Rick Black, with Investor Relations. Thank you. You may begin. Thank you operator and good morning everyone.

It is now my pleasure to introduce your host Rick Black with Investor Relations. Thank you you may begin.

Thank you operator, and good morning, everyone. We appreciate you joining us for the Mammoth Energy Conference call to review 2020 for fourth quarter and full year results.

Rick Black: We appreciate you joining us for the Mammoth Energy conference call to review 2024 fourth quarter and full year results. This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section of mammothenergy.com. Information reported on this call speaks only as of today, March 7, 2025. Please be advised that any time-sensitive information may no longer be accurate as of the date of any subsequent transcript reading or listing.

This call is also being webcast and can be accessed through the audio link on the events and presentations page of the Investor Relations section of Mammoth energy Dot com.

Information reported on this call speaks only as of today March seven 2025, please be advised that any time sensitive information may no longer be accurate.

As of the date of any subsequent Tran.

Transcript reading or listening.

Rick Black: I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations, or future events, or future financial performance, are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call that, by their nature, are uncertain and outside of the company's control. Actual results may differ materially. Please refer to today's earnings press release for more information. for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission.

I'd also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance are forward looking statements made pursuant to the safe Harbor provision.

Private Securities Litigation Reform Act of 1995.

We will be making forward looking statements as part of today's call that by their nature are uncertain and outside of the company's control actual results may differ materially. Please refer to today's earnings press release.

Our disclosure on forward looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission.

Rick Black: Management will also refer to non-GAAP measures, including adjusted EBITDA. The definition of this non-GAAP measure and its reconciliation to the most directly comparable GAAP measure can be found at the end of our earnings press release and in our investor presentation, which can be found on the company's website. Mammoth Energy assumes no obligation to publicly update or revise any forward looking statement.

Management will also refer to non-GAAP measures, including adjusted EBITDA. The definition of this non-GAAP measure and its reconciliation to the most directly comparable GAAP measure can be found at the end of our earnings press release and in our.

Investor presentation, which can be found on the company's website.

Mammoth energy assumes no obligation to publicly update or revise any forward looking statements.

Rick Black: And with that out of the way, I would now like to turn the call over to Mammoth Energy CEO, Phil Lancaster. Phil.

Phil: And with that out of the way I would now like to turn the call over to Mammoth Energy CEO Bill Lancaster Phil.

Phil Lancaster: Unknown Attendee, Ken Dennard, Arty Straehla, Mark Layton, Michael Mathison, Mammoth Energy Pleasure to speak with you in this forum for the first time in my new role as CEO.

Speaker Change: Thank you rich.

Bill Lancaster: Pleasure to speak with you in this forum for the first time in my new role as CEO.

Phil Lancaster: I'd like to first take a moment to acknowledge and thank our former CEO, Arty Straehla. After nine years of leadership and unwavering dedication at Mammoth, Arty retired at the end of 2024. Arty was a pivotal and growing mammoth in navigating the difficult PREPA resolutions in the recent years.

Speaker Change: I'd like to first take a moment to acknowledge and thank our former CEO Audi Australia.

Speaker Change: After nine years of leadership and unwavering dedication Mammoth Audi retired at the end of 'twenty 'twenty four.

Speaker Change: He was a pivotal role in growing biomass and navigating the difficult PREPA resolutions in the recent years.

Phil Lancaster: I'll start today's call with a few highlights from the quarter and then I'll introduce some key areas of focus for Mammoth in the year ahead and provide a high level of commentary on our results.

Speaker Change: I'll start today's call with a few highlights from the quarter and then I'll introduce some key areas of focus for mammoth and the year ahead and provide a high level commentary on our results I'll, then turn the call over to Mark to cover the financials in more detail.

Phil Lancaster: I'll then turn the call over to Mark to cover the financials in more detail. There were signs of improvement in our results for the fourth quarter and we're carrying this positive momentum into 2025. Despite typical seasonality and budget exhaustion at year-end, we benefited from improved pressure pumping utilization during the quarter, and we continue to see strong demand throughout our various businesses, including engineering, fiber, and T&D services. We remain well positioned to deliver improved results in 2025, and the incremental natural gas and LNG related demand may augment our performance and utilization in our pressure pumping business.

Speaker Change: There were signs of improvement in our results for the fourth fourth quarter and we're carrying this positive momentum into 2025.

Speaker Change: Typical seasonality and budget exhaustion at year end, we benefited from improved pressure pumping utilization during the quarter and we continue to see strong demand for at home.

Various businesses, including engineering.

Speaker Change: Fiber in T&D services.

Speaker Change: We remain well positioned to deliver improved results in 2025, and the incremental natural gas and LNG related demand may augment outperformance and utilization in our pressure pumping business.

Phil Lancaster: Our focus going forward will be unlocking value for our shareholders. We believe it is imperative to maintain a strong balance sheet, given our significant Cashquisition, we are evaluating potential strategic opportunities that would allow us to add accretive assets. As we evaluate our existing businesses and new opportunities to unlock value, we may be buyers or sellers, and at some times both. I'm excited to explore these opportunities to improve results for all stakeholders. We see many opportunities to strategically allocate capital to grow our existing business. that are generating the greatest return. As an example, in the last 90 days, we've added roughly 20 crews, or an increase of 25% of our crew count, to our Infrastructure Services Division to address growing utility demand requirements.

Speaker Change: Our focus going forward will be on unlocking value for our shareholders. We believe it is imperative to maintain a strong balance sheet given our significant cash.

Speaker Change: Cash position, we're evaluating potential strategic opportunities that would allow us to add accretive assets as.

Speaker Change: As we evaluate our existing businesses and new opportunities to unlock value.

Speaker Change: We might be buyers or sellers and sometimes both.

Speaker Change: I'm excited to explore these opportunities to improve results for all stakeholders.

Speaker Change: We see many opportunities strategically allocate capital to grow our existing businesses.

Speaker Change: That are generating the greatest returns.

Speaker Change: As an example in the last 90 days, we've added roughly 20 crews or an increase of 25% of our crew count to our infrastructure services division to address growing utility demand requirements.

Phil Lancaster: We've also identified other opportunities to deploy capital, specifically around equipment rental. There will continue to be various opportunities to invest back in our business in the near term to address demand, as well as purchase and upgrade equipment with our improved cash position. Now turning to results, to our results, our infrastructure services business continues to execute well and deliver strong results. There are significant bidding opportunities in the market related to engineering, fibre, transmission and distribution. These are all areas that I believe we have differentiated and specialized capabilities that can be harnessed to capitalize on opportunities in the market.

Speaker Change: We've also identified other opportunities to deploy capital specifically around equipment rentals.

Speaker Change: It will continue to be various opportunities to invest back in our business in the near term to address demand as well as purchase and upgrade equipment with our improved cash position.

Now turning to results to our results our infrastructure services business continues to execute well and deliver strong results.

Speaker Change: There are significant bidding opportunities in the market related to engineering fiber transmission and distribution.

Speaker Change: These are all areas that I believe we are differentiated and specialized capabilities that can be harnessed to capitalize on opportunities in the market.

Phil Lancaster: Our engineering group continues to do well and we have secured a strong backlog of business to enable continued growth. Given our favorable outlook for the Infrastructure Services Division and the macro tailwinds that are supporting the demand cycles such as data centers, AI, nuclear development, We are making strategic investments to add equipment and crews. These efforts are expected to further improve our positioning within the current market. We currently have over 100 crews operating in the field. Well completion services saw a rebound in utilization during the fourth quarter after activity bottomed out in the third quarter. We exited December with two active pressure pumping fleets, which helped drive improved financial results.

Speaker Change: Our engineering group continues to do well and we have secured a strong backlog of business to enable continued growth.

Speaker Change: Given our favorable outlook for the infrastructure services Division and the macro tower wins that are supporting the demand cycles, such as data centers AI nuclear developments we.

Speaker Change: We are making strategic investments to add equipment and crews.

Speaker Change: These efforts are expected to further improve our positioning when the within the current market.

Speaker Change: We currently have over 100 crews operating in the field.

Speaker Change: While completion services saw a rebound in utilization during the fourth quarter after activity bottomed out in the third quarter.

Speaker Change: We exited December with two active pressure pumping fleets, which helped drive improved financial results.

Phil Lancaster: We expect 2025 completions activity to be relatively steady with the potential for upside compared to 24, driven by incremental demand associated with natural gas. Positive tailwind may come from the LNG export capacity coming online and general electricity and power demand and handling. While these tailwinds may not largely materialize until later in the year, we are seeing elevated activity from our customers that we expect will lead to further utilization improvements in Q1. Utilization across our portfolio has improved and is expected to remain steady throughout 2025, but we are focused on efficient and effective cost management to align with the activity levels of our customers.

Speaker Change: We expect 2025 completions activity to be relatively steady with the potential for upside compared to 24.

Speaker Change: And by incremental demand associated with natural gas.

Speaker Change: Positive tailwind might come from the LNG export capacity coming online in general our electricity and power demand enhancements.

Speaker Change: While these total wins may not largely materialize until later in the year, we are seeing elevated activity from our customers that we expect will lead to further utilization improvements in Q1.

Speaker Change: Utilization across that portfolio has improved and is expected to remain steady throughout 2025, but we are focused on efficient and effective cost management to align with the activity levels of our customers.

Phil Lancaster: With our debt-free balance sheet and our significant cash position, we now have new opportunities that are available to us and we intend to continue utilizing the resources at our disposal to strengthen Mammoth for the future and unlock the value for our shareholders.

Speaker Change: So that debt free balance sheet, and our significant cash position.

Speaker Change: We now have new opportunities that are available to us and we intend to continue utilizing the resources that out of the disposal the strengths in mammoth for the future.

Speaker Change: What's the value for our shareholders.

Mark Layton: Now, let me turn the call over to Mark to take you through our financial performance in greater detail. Thank you, Phil. I hope everyone is doing well, and we appreciate you joining us today. As I usually do, I'm going to take this time to provide additional details on some meaningful metrics and several key highlights. A detailed breakdown of our results can be found in our earnings release and in our 10K once it is on file with the SEC. Mammoth's total revenue during the fourth quarter of 2024 came in at $53.2 million, which represents a 33% sequential increase when compared to $40 million in the third quarter of 2024.

Mark: Now, let me turn the call over to Mark to take you through our financial performance in greater detail.

Mark: Thank you Phil.

Mark: Hope everyone is doing well and we appreciate you joining us today.

Mark: As I, usually do I'm going to take this time to provide additional details on some meaningful metrics and several key highlights.

Mark: A detailed breakdown of our results can be found in our earnings release and in our 10-K once it is on file with the SEC.

Mark: <unk> total revenue during the fourth quarter of 2024.

Mark: I'm in at $53 2 million, which represents a 33% sequential increase when compared to $40 million in the third quarter of 2024.

Mark Layton: Total revenue for the full year 2024 was $187.9 million compared to $309.5 million in 2023. This year-over-year decline was primarily attributable to decreased utilization across our Well Completion Services Division as a result of lower activity by our customers in the natural gas basins in which we operate. We continue to believe there are positive demand implications for natural gas on the horizon. driven by incremental LNG export capacity and growing electricity demand requirements. We remain optimistic that associated activity increases will occur in 2025. and when coupled with various cost-cutting measures that we implemented prior to year-end. This should further support improvements in our overall financial performance.

Mark: Total revenue for the full year 2024 was $187 9 million compared to $309 5 million in 2023.

Mark: This year over year decline was primarily attributable to decreased utilization across our well completion services division as a result of lower activity by our customers in the natural gas basins in which we operate.

Mark: We continue to believe there are positive demand implications for natural gas on the horizon, driven by incremental LNG export capacity and growing electricity demand requirements.

Mark: We remain optimistic that associated activity increases will occur in 2025.

Mark: And when coupled with various cost cutting measures that we implemented prior to year end.

Mark: This should further support improvements in our overall financial performance.

Mark Layton: Additionally, we will continue to evaluate strategic opportunities. to deploy capital in ways that will be accretive and value-enhancing. Our Infrastructure Services Division contributed revenue of $27.9 million for the fourth quarter of 2024. which represents a slight sequential increase when compared to $26 million for the third quarter. For the full year 2024, infrastructure services revenue was $110.4 million. which was flat compared to $110.5 million for 2023. As Phil mentioned, we've added roughly 20 crews over the past 90 days. to address the growing demand surrounding distribution. This division has a healthy bidding environment, and we are aligning our operational capabilities to meet this demand.

Mark: Additionally, we will continue to evaluate strategic opportunities.

Mark: To deploy capital in ways that will be accretive and value enhancing.

Mark: Our infrastructure services Division contributed revenue of $27 9 million for the fourth quarter of 2024.

Mark: Which represents a slight sequential increase when compared to $26 million for the third quarter.

Mark: For the full year 2020 for infrastructure services revenue was $110 4 million.

Mark: Which was flat compared to $110 5 million for 2023.

Mark: As Phil mentioned, we've added roughly 20 crews over the past 90 days to address the growing demand surrounding distribution work.

Mark: This division has a healthy bidding environment and we are aligning our operational capabilities to meet this demand.

Mark Layton: We will continue to strategically deploy capital to pursue opportunities within this sector as we focus on the areas with the greatest potential for improved return. As we've highlighted in the past, we also have a great engineering team and are seeing significant traction with our service offer. The Well Completion Services Division generated $15.8 million during the fourth quarter, with approximately 1.1 fleets utilized on average. As we mentioned on our last call, we activated a second fleet before year end. And this contributed to our favorable step up in utilization to round out 2024, despite seasonality and industry wide budget exhaustion.

Speaker Change: We will continue to strategically deploy capital to pursue opportunities within this sector.

Speaker Change: We focus on the areas with the greatest potential for improved returns.

Speaker Change: As we've highlighted in the past we also have a great engineering team and are seeing significant traction with our service offerings.

Speaker Change: The well completion services division generated $15 8 million during the fourth quarter with approximately 1.1 fleets utilized on average.

Speaker Change: As we mentioned on our last call we activated a second fleet before year end.

Speaker Change: And this contributed to our favorable step up in utilization to round out 2024, despite seasonality and industry wide budget exhaustion.

Mark Layton: Although general industry expectations are for relatively flat activity levels throughout 2025, We believe there are demand implications for natural gas directed activity that may shift market dynamics later in the year in a way that benefits our well completion services division. We will remain disciplined stewards of capital and continue to align our spending appropriately with the demand that we see from our customers. Our sand division sold approximately 129,000 tons of sand in the fourth quarter of 2024 at an average sales price of $22.54 per ton. compared to 163,000 tons of sand at an average sales price of $22.89 during the third quarter of 2024.

Speaker Change: Although general industry expectations are for relatively flat activity levels throughout 2025.

Speaker Change: We believe their demand implications for natural gas directed activity that may shift in market dynamics later in the year in a way that benefits, our well completion services division.

Speaker Change: We will remain disciplined stewards of capital and continue to align our spending appropriately with the demand that we see from our customers.

Speaker Change: Our sand division sold approximately 129000 tons of sand in the fourth quarter of 2024.

Speaker Change: At an average sales price of $22 54 per ton.

Speaker Change: Compared to 163000 tons of sand at an average sales price of $22.89 during the third quarter of 2024.

Mark Layton: On a full year basis, we sold 578,000 tons of sand at an average price of $23.15. compared to 1.2 million tons of sand at an average price of $29.86 during 2023. Although volumes, sales, and pricing were negatively impacted by utilization throughout 2024. Pricing appears to have somewhat stabilized toward the end of the year. We expect incremental demand to drive improved results in the sand division in 2025. Our net loss for the fourth quarter of 2024 was $15.5 million, or a loss of $0.32 per diluted share. Net loss for the full year of 2024 was $207.3 million for a loss of $4.31 per diluted share.

Speaker Change: On a full year basis, we sold 578000 tons of sand at an average price of $23 15.

Speaker Change: Compared to $1 2 million tonnes of sand at an average price of $29.86 during 2023.

Speaker Change: Although volumes sales and pricing were negatively impacted by utilization throughout 2024.

Speaker Change: <unk> appears to have somewhat stabilized towards the end of the year.

Speaker Change: We expect incremental demand to drive improved results in the same division in 2025.

Speaker Change: Our net loss for the fourth quarter of 2024 was $15 5 million or a loss of 32 per diluted share.

Speaker Change: Net loss for the full year of 2024 was $207 3 million or a loss of $4.31 per diluted share.

Mark Layton: Full year 2024 net loss was impacted by the non-cash pre-tax charge of $170.7 million that was recorded during the second quarter related to the settlement agreement with PREPA. The adjusted EBITDA, as defined and reconciled in our earnings release, was a negative $4.8 million for the fourth quarter of 2024, compared to a negative $6.4 million for the third quarter of 2024. Adjusted EBITDA for the full year of 2024 was a negative $167.5 million compared to $71 million for 2023. CapEx for the fourth quarter of 2024 was approximately $6.1 million. Sequential increase in CapEx was most notably related to upgrades and maintenance of our pressure pumping fleets.

Speaker Change: Full year 2024, net loss was impacted by the noncash pre tax charge of $170 7 million.

Speaker Change: You recorded during the second quarter related to the settlement agreement with PREPA.

Speaker Change: Adjusted EBITDA as defined and reconciled in our earnings release was a negative $4 8 million for the fourth quarter of 2024.

Speaker Change: Compared to a negative $6 4 million for the third quarter of 2024.

Speaker Change: Adjusted EBITDA for the full year of 2024 was a negative $167 5 million compared to $71 million for 2023.

Speaker Change: Capex for the fourth quarter of 2024 was approximately $6 1 million.

Speaker Change: The sequential increase in Capex was most notably related to upgrades and maintenance of our pressure pumping fleet.

Mark Layton: and Truck Tooling and Equipment Purchases in our Infrastructure Services Division during the quarter. CapEx for the full year of 2024 was $17.1 million compared to $19.4 million for 2023.

Speaker Change: And truck tooling and equipment purchases and our infrastructure services division during the quarter.

Speaker Change: Capex for the full year of 2024 was $17 1 million compared to $19 4 million for 2023.

Mark Layton: Now looking ahead at 2025, our capex budget for the year is 12 million for our existing business. which is primarily comprised of growth CapEx for our equipment rentals business and maintenance CapEx for our pressure pumping. Additional growth in our infrastructure business is expected to be primarily financed through leasing arrangements. As previously mentioned, we continue to evaluate strategic opportunities to deploy capital in ways that will be accretive and value enhancing to our business. We may deploy additional CapEx related to these opportunities. Selling general and administrative expenses totaled approximately $9.9 million during the fourth quarter of 2024.

Speaker Change: Now looking ahead at 2025, our Capex budget for the year is $12 million for our existing businesses.

Speaker Change: Which is primarily comprised of growth capex for our equipment rental business and maintenance capex for our pressure pumping business.

Speaker Change: Additional growth in our infrastructure business is expected to be primarily financed through leasing arrangements.

Speaker Change: As previously mentioned, we continue to evaluate strategic opportunities to deploy capital in ways that will be accretive and value enhancing to our business. We may deploy additional capex related to these opportunities.

Speaker Change: Selling general and administrative expenses totaled approximately $9 9 million during the fourth quarter of 2024.

Mark Layton: Professional fees related to Puerto Rico total 1.6 million for the fourth quarter of 2024 and 5.6 million for the full year. We continue to expect these fees to decline in future periods as a result of the settlement agreement with PREPA. In addition, the fourth quarter of 2024 included approximately $900,000 in one-time compensation-related costs. As of December 31st, 2024, we had unrestricted cash on hand of $61 million. This cash balance excludes restricted cash of approximately $21 million which would bring our total cash on hand to approximately $82 million. Our revolving credit facility was undrawn and we had approximately $17.7 million in available borrowing capacity.

Speaker Change: Professional fees related to Puerto Rico totaled $1 6 million for.

Speaker Change: For the fourth quarter of 2024, and $5 6 million for the full year.

Speaker Change: We continue to expect these fees to decline in future periods as a result of the settlement agreement with PREPA.

Speaker Change: In addition, the fourth quarter of 2024 included approximately 900001 time compensation related costs.

Speaker Change: As of December 31, 2024, we had unrestricted cash on hand of $61 million.

Speaker Change: This cash balance excludes restricted cash of approximately $21 million.

Speaker Change: Which would bring our total cash on hand to approximately $82 million.

Speaker Change: Our revolving credit facility was Undrawn and we had approximately $17 7 million in available borrowing capacity.

Mark Layton: Our total liquidity was approximately $78.7 million.

Speaker Change: Our total liquidity was approximately $78 7 million.

Phil Lancaster: As of today, Mammoth remains debt-free. To conclude our call, we would like to thank our 750 employees throughout the company for their hard work, dedication, and commitment to maintaining safe and sustainable worksites for themselves and their teammates. We are seeing significant opportunities to unlock value for both Mammoth and its shareholders. And we look forward to sharing these developments with you in coming quarters. We currently have a robust cash position, which we intend to utilize to substantially invest in the company for future growth. We believe Mammoth is well positioned today, and we expect to capitalize on this to drive improved returns.

Speaker Change: As of today Mammoth remains debt free.

Speaker Change: To conclude our call we would like to thank our 750 employees throughout the company for their hard work.

Speaker Change: Dedication and commitment to maintaining safe and sustainable work sites for themselves and their teammates.

Speaker Change: We are seeing significant opportunities to unlock value for both <unk> and its shareholders.

Speaker Change: And we look forward to sharing these developments with you in coming quarters.

Speaker Change: We currently have a robust cash position, which we intend to utilize to substantially invest in the company for future growth.

Speaker Change: We believe mammoth is well positioned today and we expect to capitalize on this to drive improved returns.

Phil Lancaster: We are focused on building a better, more resilient business for the future. We will continue to prioritize disciplined operation. Efficiency and Strategic Capital Allocation. which when coupled with our strong balance sheet, we believe will unlock meaningful shareholder value.

Speaker Change: We are focused on building a better more resilient business for the future.

Speaker Change: We will continue to prioritize disciplined operations.

Speaker Change: Fishing sea and strategic capital allocation.

Speaker Change: Which when coupled with our strong balance sheet, we believe will unlock meaningful shareholder value.

Operator: Operator, we would now like to open the call up for questions. Thank you. We will now be conducting a question and answer session.

Speaker Change: Operator, we would now like to open the call up for questions.

Speaker Change: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.

Operator: If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Speaker Change: You May press star two if you'd like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please probably call up for questions.

Operator: There are no questions at this time.

Speaker Change: There are no questions at this time.

Rick Black: At this point, I'd like to turn the call over to Rick Black for email. Thank you, operator.

Speaker Change: At this point I'd like to turn the call over to Rick Black for email questions.

Speaker Change: Thank you operator.

Phil Lancaster: Starting with the first question that we received, where is the best growth potential for the infrastructure business? Is that organic or acquisitive? And now that there is a new administration and DOJ is out there, how should we be thinking about these two things impacting the infrastructure space in the coming year?

Speaker Change: Starting with the first question that we received where's the best growth potential for the infrastructure business that organic or acquisitive.

Speaker Change: And now that there is a new administration indulge us out there how should we be thinking about these two things impacting the infrastructure space in the coming year.

Phil Lancaster: Yeah, thank you, Rick. So I think most of our growth currently is through organic growth. As I as I stated, we picked up 20, 20 crews, but we have even more demand. And a little bit of that is because the larger IOUs have bought on, realize that they have to expand. And so right across the US, we're noticing a lot more demand from the larger IOUs. So we feel like the organic growth is there. We have also started getting involved with more co-ops, which we think will help our storms. at Storm Revenue, and we would look at acquisitions maybe, but at this particular point, we feel like there's plenty of organic growth.

Speaker Change: Yeah. Thank you so.

Speaker Change: So I think most of our growth currently is through organic growth.

Speaker Change: As I stated, we picked up 2020 crews, but we have even more demand and a little bit of that is because of the larger <unk>.

Speaker Change: Use.

<unk> had bought on realized that they have to expand and so right across the U S. We're noticing a lot more demand from the larger.

Speaker Change: We feel like the organic growth is there.

Speaker Change: We have also started.

Speaker Change: Getting involved with more co ops, which we think will help our stones.

Speaker Change: As storm revenue.

Speaker Change: And.

Speaker Change: We would look at acquisitions, maybe but at this particular point, we feel like there's plenty of organic growth.

Speaker Change: Excellent.

Mark Layton: Mark, in the rental business, can you just provide a little bit of color around the customers and the demand cycle that are in that business? And what would be a driver of growth and demand perspectives in the coming year? Our current customer base is primarily comprised of E&P companies, along with other service companies. This is an area that we're seeing strong demand and see opportunities to grow our customer base.

Speaker Change: Mark in the rental business.

Speaker Change: Just provide a little bit of color around the customers and the demand cycle that are in that business and what it would be a driver of growth and demand perspective in the coming year.

Speaker Change: Our current customer base is primarily comprised of E&P companies along with other service companies. This is an area that we're seeing strong demand and see opportunities to grow our customer base in particular, we.

Mark Layton: In particular, we see some discrete opportunities as it relates to the construction market and some of the rental equipment that we have inside of the portfolio. And I just remind you that we see the rental business as a fairly broad portfolio of assets that for us includes helicopters. So we've always viewed that business broadly and believe this is an area where we can acquire high quality assets at attractive prices.

Speaker Change: We see some discrete opportunities as it relates to the construction market and some of the rental equipment that we have inside of the portfolio.

Speaker Change: And I'd just remind you that we see the rental business is a fairly broad portfolio of assets that for us includes helicopters.

Speaker Change: We've always viewed that business broadly and believe this is an area, where we can acquire high quality assets at attractive prices.

Mark Layton: And then turning to the sand business, a similar type question. Can you just give us a little bit of color on what characterizes that environment? And, you know, are there opportunities to deploy more capital there or to make acquisitions? How does that business grow and what do you see that environment looking like in 2025? For 25, we're seeing some stabilized demand. As always, the key drivers for our sand business or commodity pricing. For us, we're operating well underneath our maximum capacity. So we've got the ability to expand capacity and capitalize as we see demand.

Speaker Change: And then turning to the sand business similar type question can you just give us a little bit of color on what characterizes that environment and are there opportunities.

Speaker Change: <unk> to deploy more capital there or to make acquisitions, how how does that business grow and what do you see that environment looking like in 2025.

Speaker Change: For 25, and we're seeing some stabilized demand as always the key drivers for our sand business or commodity pricing.

Speaker Change: For us, we're operating well underneath our maximum capacity. So we've got the ability to expand capacity and capitalize as we see demand.

Speaker Change: Excellent and then on just on your Capex outlook for 2025, I believe you said $12 million.

Mark Layton: Unknown Attendee, Ken Dennard, Arty Straehla, Mark Layton, Michael Mathison, Mammoth Energy Services Inc We have about $5 million inside of that $12 million budget related to pressure pumping upgrades that will be dependent on customer demand.

Speaker Change: And some of that would be spent on pressure pumping and some on the rental business can you just give us a percentage break of kind of how you see that playing out over the year just to give some detail on that approximately half of our capex budget is allocated to growing our rental business.

Speaker Change: We have about $5 million inside of that $12 million budget related to pressure pumping upgrades.

Speaker Change: It will be dependent on customer demand.

Phil Lancaster: And then finally, Phil, now that you've been in this position for a few months and the company has capital again, and that the negative overhang of PREPRA is gone, just curious what your perspective is on the primary focus as you sit at the company today. I think primarily is getting my feet wet, but there's three focuses for me at this particular time. First one is to get the company right sized and profitable. Second is evaluating our existing businesses for future. And then now we, because of our position with cash for the first time in six or seven years, we now have the door open to look for potential acquisitions to either help our businesses or new opportunities.

Excellent and then finally, Phil now that you've been in this position for a few months in the company as capital again and that the negative overhang of PREPA as Don just curious what your perspective is on the primary focus.

Speaker Change: As you as you sit at the company today.

Speaker Change: I think primarily is getting my feet wet but.

Speaker Change: The three focuses for me at this particular time.

Speaker Change: So I just wanted to get the company right sized and profitable.

Speaker Change: Second is evaluating how existing businesses.

Speaker Change: For future.

Speaker Change: And then.

Speaker Change: Now, we because of our physician with cash.

Speaker Change: For the first time in six or seven years, we now have the door open to look for potential acquisitions to either to help our existing businesses or new opportunities.

Unknown Attendee: Excellent.

Phil Lancaster: That's all the questions I have, so I'll turn the call over to you, Phil, as we wrap up this quarterly call. Thank you again for joining us on the call today. We continue to focus on positioning Mammoth for future growth, improving operating results and unlocking value.

Phil: Excellent that's all the questions I have so I will turn the call over to you Phil.

Speaker Change: We wrap up this quarterly call.

Phil: Thank you again for joining us on the call today, we will continue to focus on positioning mammoth for future growth improving operating results and unlocking value.

Operator: This concludes our conference call and we look forward to speaking to you all again next quarter. Ladies and gentlemen, thank you for your participation.

Phil: This concludes our conference call and we look forward to speaking to you all again next quarter.

Phil: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference.

Operator: This does conclude today's teleconference. You may disconnect your lines at this time and have a wonderful day.

Phil: Disconnect your lines at this time and have a wonderful day.