Mammoth Energy Services Inc (NASDAQ:TUSK) Q1 2019 Earnings Conference Call Transcript

May 02, 2019 • 11:00 am ET


Mammoth Energy Services Inc (NASDAQ:TUSK) Q1 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen. And welcome to the Mammoth Energy Services First Quarter 2019 Earnings Conference Call. At this time all participants are in a listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. As a reminder, this conference call is being recorded and will be available for replay on Mammoth Energy Services website.

I would now like to introduce your host for today's conference, Mr. Don Crist, Mammoth Energy Services Director of Investor Relations. Sir, you may begin.

Don Crist

Thank you, Ashley. Good morning and welcome to Mammoth Energy Services first quarter 2019 earnings conference call. Joining me on today's call are Arty Straehla, Chief Executive Officer and Mark Layton, Chief Financial Officer. Before I turn the call over to them, I'd like to read our Safe Harbor statement. Some of our comments today may include forward-looking statements, reflecting Mammoth Energy Services' views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Mammoth Energy Services' Form 10-K, Forms 10-Q, current reports on Form 8-K and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Our comments today may also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures are included in our first quarter press release which can be found on our website, along with our updated presentation.

Now, I'll turn the call over to Arty.

Arty Straehla

Thank you, Don. And good morning, everyone. The first quarter of 2019 was a busy one for Mammoth as we increased activity across our pressure pumping fleets and sand mines and wound down our operations in Puerto Rico.

As you are aware, oil prices increased 32% during the first quarter of 2019, leading to higher profitability for the E&Ps and more optimism throughout the industry. The widely expected reduction in the land rig count has been muted versus original forecasts and there are signs of increased pressure pumping utilization and pricing.

Several of our completions focused business lines saw higher utilization during the first quarter and discussions with E&Ps interested in increasing activity in the back half the year are increasing. While it is difficult to predict future activity levels given the current investor sentiment around keeping CapEx within cash flows and the return of capital to shareholders, we are encouraged with current conversations.

In the T&D space we are seeing an upward trend in the amount of maintenance spending from the larger IOUs. This is growing the overall spending of the industry and is expected to translate into more work for all of the companies in the sector. Given our recent investments, we feel we - that we are well positioned to be potentially - to potentially increase our market share over the coming years.

Now, let me give you an update on our current operations,