Privately held Mammoth Energy Services Inc., whose top customer is Utica Shale-focused Gulfport Energy Corp., is preparing another attempt to go public and expand its North American pressure pumping business, according to a filing with the U.S. Securities and Exchange Commission.
The Oklahoma City-based oilfield services (OFS) operator in a Form S-1 said it is seeking $100 million through an initial public offering (IPO). No pricing terms or timeline were disclosed. If the IPO were to be completed, Mammoth would be listed on Nasdaq under "TUSK."
In May, the Wexford Capital Inc.-backed related entity Mammoth Energy Partners LP nixed a similar $100 million IPO that was initiated in September 2014. However, as oil prices have inched up, Mammoth said opportunities are increasing.
"As commodity prices began to recover, we experienced an increase in activity," Mammoth said in the prospectus. "We intend to capitalize on the anticipated increase in activity in these markets and diversify our operations across additional unconventional resource basins." Some of Mammoth's insight likely came from Gulfport, which is planning a six- to eight-rig program for Appalachia in 2017 (see Shale Daily, Aug. 4).
Mammoth's pressure pumping services business was launched in October 2012 with 14 fracturing units capable of delivering a total of 28,000 hp. As of August, it had grown the business to three fleets consisting of an aggregate 64 units capable of delivering 128,000 hp.
"We currently operate facilities and service centers to support our operations in major unconventional resource plays in the United States, including the Utica Shale in Eastern Ohio, the Permian Basin in West Texas, the Marcellus Shale in Pennsylvania, the Granite Wash in Oklahoma and Texas, the Cana Woodford Shale and the Cleveland Sand in Oklahoma, the Eagle Ford Shale in South Texas and the oilsands in Alberta," the prospectus stated.
Mammoth Energy Services was formed in June, one month after the other IPO was pulled, by Wexford-backed Mammoth Partners LLC. The energy services company is being formed from a stew of several small oilfield services firms.
In November 2014, subsidiary Mammoth Holdings, along with Gulfport and Rhino, contributed to the Mammoth partnership stakes they held in Bison Drilling and Field Services LLC, Bison Trucking LLC, White Wing Tubular Services LLC, Barracuda Logistics LLC, Panther Drilling Systems LLC, Redback Energy Services, LLC, Redback Coil Tubing LLC, Redback Pump Down Services LLC, Muskie Proppant LLC, Stingray Pressure Pumping LLC, Stingray Logistics LLC and Great White Sand Tiger Lodging Ltd.
Mammoth Holdings now controls 68.7% of the partnership, Gulfport has 30.5% and Rhino has 0.8%. Once the IPO is completed, the equity interests would be contributed to Mammoth Energy Services, and the partnership would become its subsidiary.
Mammoth's top five customers in 2015, representing 71% of revenue, were Gulfport, EQT Production Co., Japan Canada Oil Sands Ltd., RSP Permian LLC and Bantrel Co. The top five customers in the first six months of this year, which represented 80% of total revenue, were Gulfport, Rice Energy Inc., Japan Canada Oil Sands, Hilcorp Energy Co. and Taylor Frac LLC.
According to the prospectus, chairman of Mammoth Energy Services is Marc McCarthy, 45, currently a senior managing director at Wexford, whose energy experience includes a stint as chairman of EPL Oil & Gas Inc. Arty Straehla, 62, who joined as CEO in February, previously was CEO of Serva Group LLC, an oilfield equipment manufacturer, and had been CEO of Diamondback Energy Services Inc. CFO Mark Layton, who joined the company in 2014, was formerly the top financial officer of Stingray Pressure Pumping LLC and previously worked for Archer Well Co. Inc.
In the first six months of 2016, Mammoth reported a net loss of $29.5 million, versus a loss of $2.36 million in the first half of 2015. Completion and production services division revenue decreased $60.2 million, or 49.5%, to $61.3 million in the six months from $121.5 million in the year-ago period.