Mammoth Energy Services Inc (TUSK) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Mammoth Energy Services First Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加猛獁能源服務第一季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host Ken Dennard. Thank you, Ken. You may begin.

現在我很高興向您介紹主持人肯·丹納德。謝謝你，肯。你可以開始了。

Thanks, operator. Good afternoon, everyone. We appreciate you joining us for the Mammoth Energy conference call to review 2023 first quarter 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 at mammothenergy.com. Information reported on this call speaks only as of today, April 27, 2023. Please be advised that any time-sensitive information may no longer be accurate as of the time of any subsequent date, pardon me.

謝謝，接線員。大家下午好。我們感謝您參加 Mammoth Energy 電話會議，回顧 2023 年第一季度業績。此次電話會議也正在進行網絡直播，可以通過 mammothenergy.com 投資者關係部分的活動和演示頁面上的音頻鏈接進行收聽。本次電話會議中報告的信息僅截至今天，2023 年 4 月 27 日。請注意，任何對時間敏感的信息在任何後續日期的時間可能不再準確，請原諒。

I would also like to remind you that statements made in today's discussion that are not historical facts include 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. Management 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.

我還想提醒您，今天的討論中做出的非歷史事實的陳述包括預期或未來事件或未來財務業績的陳述，是根據美國《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述。 1995 年。作為今天電話會議的一部分，管理層將做出前瞻性聲明，這些聲明本質上是不確定的，並且不在公司的控制範圍內。實際結果可能存在重大差異。

Please refer to the earnings press release that was issued today 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 SEC. Management may also refer to non-GAAP measures, including adjusted EBITDA, the definitions of these non-GAAP measures and their reconciliations to the most comparable GAAP measures can be found at the end of the earnings release and in our Investor Relations presentation, which can be found on the website. Mammoth Energy assumes no obligation to publicly update or revise any forward-looking statements. And now with that behind me, I'd like to turn the call over to Mammoth Energy's CEO, Arty Straehla. Arty?

請參閱今天發布的收益新聞稿，了解我們對前瞻性聲明的披露。這些因素以及其他風險和不確定性在公司向 SEC 提交的文件中進行了詳細描述。管理層還可以參考非GAAP 衡量標準，包括調整後的EBITDA，這些非GAAP 衡量標準的定義及其與最具可比性GAAP 衡量標準的調節可以在收益發布的末尾和我們的投資者關係演示文稿中找到，這些演示文稿可以可以在網站上找到。 Mammoth Energy 不承擔公開更新或修改任何前瞻性陳述的義務。現在，我想把這個電話轉給 Mammoth Energy 的首席執行官 Arty Straehla。附庸風雅？

Thank you, Ken, and good afternoon, everyone. We had a solid first quarter that I'm pleased to discuss on today's call. I will also provide an update regarding our ongoing pursuit of the PREPA receivables owed to us before turning the call over to Mark, to review our financials in more detail.

謝謝你，肯，大家下午好。我們第一季度的業績表現不錯，我很高興在今天的電話會議上討論這一點。在將電話轉給 Mark 之前，我還將提供有關我們正在追索欠我們 PREPA 應收賬款的最新情況，以更詳細地審查我們的財務狀況。

Our first quarter performance was in line with our expectations, contributing to significant year-over-year growth in revenue, net income and adjusted EBITDA. For the first quarter of 2023, net income came in at $8.4 million compared to a net loss of $14.8 million in Q1 of last year.

我們第一季度的業績符合我們的預期，導致收入、淨利潤和調整後 EBITDA 同比大幅增長。 2023 年第一季度的淨利潤為 840 萬美元，而去年第一季度的淨虧損為 1480 萬美元。

First quarter 2023 adjusted EBITDA was $30.7 million compared to $9.3 million in Q1 of last year. I'm proud of the hard work across all of our business segments by our talented teams that contributed to the meaningful growth we have realized over the last year in this most recent quarter. While we face no shortage of challenges every day and have experienced persistent supply chain constraints and logistical problems over the last few years, we have and intend to continue to operate to the best of our ability to meet the needs of our customers.

2023 年第一季度調整後 EBITDA 為 3070 萬美元，而去年第一季度為 930 萬美元。我為我們才華橫溢的團隊在我們所有業務部門的辛勤工作感到自豪，他們為我們去年在最近一個季度實現的有意義的增長做出了貢獻。雖然我們每天都面臨著不少挑戰，並且在過去幾年中經歷了持續的供應鏈限制和物流問題，但我們已經並打算繼續盡最大努力滿足客戶的需求。

Recently, we have experienced some improvements throughout the supply chain, and we anticipate more improvement to come in the back half of the year, but we believe it is important to note that these constraints still remain an obstacle that we must navigate. While we may never return to the way things were pre-COVID, we're proud of the adaptability of our team to adjust to this new normal.

最近，我們在整個供應鏈中經歷了一些改進，我們預計今年下半年將出現更多改進，但我們認為重要的是要注意這些限制仍然是我們必須克服的障礙。雖然我們可能永遠不會回到新冠疫情之前的狀態，但我們為我們團隊適應這一新常態的適應能力感到自豪。

Now I'll walk you through each of our major business segments. In our well completion services, we generated strong growth in the quarter. We exited the quarter with 3 of our 6 pressure pumping spreads actively operating. Today, we are seeing regional production slowdowns due to lower natural gas prices, particularly in the Northeast, where we have a concentration of frac crews.

現在我將向您介紹我們的每個主要業務部門。在我們的完井服務中，我們在本季度實現了強勁增長。本季度結束時，我們的 6 個壓力泵送裝置中有 3 個正在積極運行。如今，由於天然氣價格下跌，我們看到區域生產放緩，特別是在壓裂人員集中的東北部。

Natural gas prices have been cut nearly in half compared to what they were at the end of 2022, while we remain bullish long term on natural gas in the near term, the lower prices are reducing activity in our well completion segment are leading to more calendar white space. We have a deep understanding of how this pullback impacts our business and have already made changes to manage the large variable cost in the well completions segment.

與 2022 年底相比，天然氣價格已削減近一半，雖然我們短期內仍長期看好天然氣，但較低的價格正在減少我們完井業務的活動，導致更多的日曆空白區域。我們深入了解這種回調對我們業務的影響，並已經做出改變來管理完井領域的巨大可變成本。

However, we expect this will reduce near-term utilization as we adjust to current market conditions. We plan to offset this reduction by significantly lowering our capital expenditures for the year.

然而，我們預計，隨著我們適應當前的市場狀況，這將減少近期利用率。我們計劃通過大幅降低今年的資本支出來抵消這一減少。

Turning to our Infrastructure Services division, operational improvements, team performance and higher utilization of crews and equipment continue to drive improved results. Revenue, net income and adjusted EBITDA grew year-over-year in this segment despite increases in SG&A and legal expenses, but we expect these expenses to have less impact - less of an impact in the coming quarters.

談到我們的基礎設施服務部門，運營改進、團隊績效以及人員和設備利用率的提高繼續推動業績的改善。儘管 SG&A 和法律費用有所增加，但該部門的收入、淨利潤和調整後 EBITDA 仍同比增長，但我們預計這些費用的影響較小——未來幾個季度的影響較小。

The bidding and pricing environment for infrastructure services throughout our footprint continue to be robust with added opportunities expected from the historic federal investment in our nation's infrastructure through the Infrastructure Investment and Jobs Act. We continue to view this sector as a key growth driver for Mammoth over the long term, and I'm pleased with the continued progress we are achieving. As a reminder, we have grown this division strictly by organic means over the past 5 years.

我們整個足跡範圍內的基礎設施服務的招標和定價環境繼續保持強勁，聯邦通過《基礎設施投資和就業法案》對我國基礎設施進行歷史性投資，預計將帶來更多機會。我們繼續將這一領域視為猛獁象長期增長的關鍵驅動力，我對我們取得的持續進展感到高興。提醒一下，在過去的五年裡，我們嚴格通過有機方式發展了這個部門。

The Sand business also grew in the quarter and we are pleased with our team's performance. As we have mentioned before, we entered into 2 strategic sand supply agreements late last year at attractive pricing. These contracts are providing a solid foundation for predictable cash flow in our natural sand proppant division. As we have stated before, we believe our diverse portfolio and ability to adapt quickly to changing environments, positions us well in these segments.

沙子業務在本季度也有所增長，我們對我們團隊的表現感到滿意。正如我們之前提到的，我們去年年底以有吸引力的價格簽訂了兩份戰略性沙子供應協議。這些合同為我們天然砂支撐劑部門的可預測現金流奠定了堅實的基礎。正如我們之前所說，我們相信我們多樣化的產品組合和快速適應不斷變化的環境的能力使我們在這些領域處於有利地位。

Before I turn the call over to Mark, I'd like to provide an update regarding PREPA. On March 27, 2023, Cobra was notified that FEMA had approved $233 million in Cobra invoices related to the December 21, 2022 determination memorandum. The 90% federal cost share of the approved amount was $210 million, which was obligated and made available for drawdown on March 27, 2023. Of this $210 million, approximately $99 million has been represented by both PREPA and FEMA as intended to pay Cobra for outstanding invoices and the remaining $111 million is a reimbursement to PREPA for payments already made on Cobra invoices.

在將電話轉給 Mark 之前，我想提供有關 PREPA 的最新信息。 2023 年 3 月 27 日，Cobra 獲悉，FEMA 已批准與 2022 年 12 月 21 日決定備忘錄相關的 2.33 億美元 Cobra 發票。批准金額中 90% 的聯邦成本份額為 2.1 億美元，該金額已承諾並於 2023 年 3 月 27 日可供提取。在這 2.1 億美元中，PREPA 和 FEMA 已代表約 9,900 萬美元用於支付 Cobra剩餘的1.11 億美元用於償還PREPA 已在Cobra 發票上支付的款項。

PREPA inexplicably refuses to pay Cobra for the work accomplished in the aftermath of Hurricane Maria and has so far failed to take the steps necessary to obtain the funds from COR3 funds that were appropriated by Congress to FEMA and then obligated to COR3 for payments to Cobra. We continue to vigorously pursue payment of the over $390 million owed to us from PREPA and continue exhaust efforts with congressional members, legal teams and frequent meetings with decision makers.

PREPA 莫名其妙地拒絕向 Cobra 支付颶風瑪麗亞後完成的工作費用，並且迄今為止尚未採取必要措施從 COR3 基金中獲取資金，這些資金由國會撥款給 FEMA，然後由 COR3 承擔向 Cobra 付款的義務。我們將繼續積極追討 PREPA 欠我們的超過 3.9 億美元的款項，並繼續與國會議員、法律團隊竭盡全力，並與決策者頻繁舉行會議。

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

現在讓我把電話轉給馬克，讓您更詳細地了解我們的財務業績。

Thank you, Arty. 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 10-Q, which we expect to file tomorrow after market close.

謝謝你，阿蒂。我希望每個人都一切順利，我們感謝您今天加入我們。正如我通常所做的那樣，我將利用這段時間提供有關一些有意義的指標和幾個關鍵亮點的更多詳細信息。我們的業績詳情可以在我們的收益報告和 10 季度報告中找到，我們預計將在明天收市後提交。

Mammoth's total revenue during the first quarter of 2023 came in at $116.3 million compared to $62.3 million during the same quarter last year. In Q1 of 2023, we pumped 2018 stages with approximately 3.6 fleets utilized on average, compared to 699 stages and an average utilization of 1.6 fleets during the same quarter last year. This 87% year-over-year increase in revenue is a key indicator that we have capitalized on favorable market conditions and have driven improved operational efficiencies.

Mammoth 2023 年第一季度的總收入為 1.163 億美元，而去年同期為 6230 萬美元。 2023 年第一季度，我們在 2018 年的賽段上平均使用了約 3.6 個車隊，而去年同期為 699 個賽段，平均使用了 1.6 個車隊。收入同比增長 87% 是一個關鍵指標，表明我們利用了有利的市場條件並推動了運營效率的提高。

Looking forward, as Arty mentioned earlier, we are seeing some softness related to natural gas prices, which may adversely impact results for our Well Completion Services division in the near term. We plan to offset this by significantly reducing our capital expenditures as we progress through the year.

展望未來，正如 Arty 之前提到的，我們看到與天然氣價格相關的一些疲軟，這可能會對我們完井服務部門的近期業績產生不利影響。我們計劃在今年取得進展時通過大幅減少資本支出來抵消這一影響。

Our Sand division sold approximately 391,000 tons of sand during the first quarter of 2023 compared to 329,000 tons of sand during the same quarter last year. The average price per sand sold during the first quarter of 2023 was approximately $31.02 per ton compared to $21.44 per ton during the same quarter last year.

我們的沙子部門在 2023 年第一季度銷售了約 391,000 噸沙子，而去年同期銷售了 329,000 噸沙子。 2023 年第一季度銷售的每沙平均價格約為每噸 31.02 美元，而去年同期為每噸 21.44 美元。

Our Infrastructure Services division contributed revenue of $28.3 million for the first quarter of 2023 compared to $23 million for the same quarter last year. As Arty mentioned, there were some cost headwinds in the quarter that we anticipate becoming less impactful as we progress through 2023. We expect this, coupled with operational execution to drive improvement as the year progresses.

我們的基礎設施服務部門在 2023 年第一季度貢獻了 2830 萬美元的收入，而去年同期為 2300 萬美元。正如 Arty 提到的，本季度存在一些成本阻力，我們預計隨著 2023 年的進展，這些阻力的影響將逐漸減弱。我們預計，隨著時間的推移，這一點以及運營執行將推動改進。

Net income for the first quarter of 2023 was $8.4 million compared to a net loss of $14.8 million for the same quarter of last year. Adjusted EBITDA as defined and reconciled in our earnings release, was $30.7 million for the first quarter of 2023, an increase of 230% compared to the $9.3 million for the same quarter of 2022.

2023 年第一季度淨利潤為 840 萬美元，而去年同期淨虧損為 1480 萬美元。根據我們的收益發布中定義和調節的調整後 EBITDA，2023 年第一季度為 3070 萬美元，與 2022 年同一季度的 930 萬美元相比增長了 230%。

CapEx for the first quarter of 2023 was approximately $6 million. In light of the commodity price softness that we're seeing and it's direct impact on some of our customer spending, we intend to continue to prudently manage our costs. And as a result, we are reducing our previously announced full year 2023 CapEx budget to approximately $24 million.

2023 年第一季度的資本支出約為 600 萬美元。鑑於我們看到的商品價格疲軟及其對我們的一些客戶支出的直接影響，我們打算繼續謹慎管理我們的成本。因此，我們將之前宣布的 2023 年全年資本支出預算減少至約 2400 萬美元。

As of March 31, 2023, we had cash on hand of $11.7 million and debt of approximately $84.6 million. Our total liquidity was approximately $29.1 million. As always, to conclude our call, we would like to thank our 975 employees throughout the company for their hard work, dedication and commitment to maintaining safe and sustainable work sites for themselves and their teammates. Despite some of the softness that we're seeing on the horizon, our businesses continue to perform well, and we're confident that the diversified and differentiated nature of our service offerings positions us well to continue generating favorable results in 2023.

截至 2023 年 3 月 31 日，我們手頭現金為 1170 萬美元，債務約為 8460 萬美元。我們的總流動資金約為 2910 萬美元。與往常一樣，在結束我們的通話時，我們要感謝全公司 975 名員工的辛勤工作、奉獻精神和致力於維護自己及其隊友的安全和可持續工作場所。儘管我們看到了一些疲軟的情況，但我們的業務繼續表現良好，我們相信，我們服務產品的多元化和差異化性質使我們能夠在 2023 年繼續取得良好的業績。

We will maintain our focus on operational excellence and efficient execution in each of our businesses, which we believe will enable us to drive meaningful shareholder value.

我們將繼續關注每項業務的卓越運營和高效執行，我們相信這將使我們能夠推動有意義的股東價值。

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

接線員，我們現在要開始提問。

(Operator Instructions) Our first question is from Ignacio Bernaldez of EF Hutton.

（操作員說明）我們的第一個問題來自 EF Hutton 的 Ignacio Bernaldez。

Congratulations on the quarter. Two quick questions. The first, any more color on the bidding and pricing environment for infrastructure services and specifically how the Infrastructure Investment Jobs Act is bolstering or contributing to that environment?

祝賀本季度。兩個簡單的問題。首先，關於基礎設施服務的招標和定價環境，特別是《基礎設施投資就業法案》如何支持或促進該環境，還有更多的色彩嗎？

We continue to see an increase in bidding activity, primarily for projects. So we think that bodes well for the remainder of the year. To date, we've not seen a lot of activity in relation to the Infrastructure Act, but we expect that bidding activity to start hitting the market late this year.

我們繼續看到投標活動增加，主要是針對項目。因此，我們認為這對今年剩餘時間來說是個好兆頭。迄今為止，我們還沒有看到很多與《基礎設施法案》相關的活動，但我們預計招標活動將於今年晚些時候開始進入市場。

Yes. I'd add on to that, Ignacio, that we are seeing some of the activities some price increases that are going through to our customers. The utility started out a little bit tight this year, as it was described to us from some of our key customers, which are were larger investor-owned utilities. Their -- the goods or their products that they use had inflation had hit them about 20% to 30%. I'm talking about poles and transformers and wooden poles and metal poles and all those type things that they utilize.

是的。伊格納西奧，我想補充一點，我們看到我們的客戶正在採取一些價格上漲的活動。該公用事業公司今年開始有點緊張，正如我們的一些主要客戶向我們描述的那樣，這些客戶是較大的投資者擁有的公用事業公司。他們使用的商品或產品的通貨膨脹率已經使他們遭受了大約 20% 到 30% 的打擊。我說的是電線桿、變壓器、木桿、金屬桿以及它們使用的所有這些類型的東西。

So they trimmed back a little bit at the very beginning on crews and now they're going back out and they're regenerating. So we're seeing activity move up pretty quickly. In addition to that, we have worked out some of the issues we've had previously with bonding and that type of thing, and we feel pretty good about where the team is going specifically in being able to do some of the higher-priced transmission and substation work and some things away from distribution. But all in all, a good quarter for our team.

因此，他們一開始就削減了一些人員，現在他們正在退出並正在恢復活力。所以我們看到活動增長得很快。除此之外，我們還解決了之前在粘合和此類問題上遇到的一些問題，並且我們對團隊在能夠完成一些更高價格的傳輸方面的具體方向感到非常滿意和變電站工作以及一些遠離配電的東西。但總而言之，這對我們團隊來說是一個不錯的季度。

That's really helpful. I appreciate that. And then just secondly, you mentioned white space on the calendar through 2023. I guess what's the extent of that? Maybe, again, a little more color on that?

這真的很有幫助。我很感激。其次，您提到了 2023 年日曆上的空白。我猜空白的範圍有多大？也許，再一次，再多一點色彩？

Sure. As we were -- as we exited the fourth quarter, natural gas was averaging around $5.56 per MMBtu. We saw some prices less than $2, and that's caused some of the operators to pull back. But we are seeing -- a lot of it is just delays because they still have amounts of gas that they have to get to hit their quota for the year. And so we've just seen some delays on things.

當然。截至第四季度末，天然氣平均價格約為每 MMBtu 5.56 美元。我們看到一些價格低於 2 美元，這導致一些運營商退出。但我們看到，其中很多只是延誤，因為他們仍然有大量天然氣需要達到今年的配額。所以我們剛剛看到事情出現了一些延誤。

We've also seen it where some of the folks that are delaying are also continuing to drop, but just not complete right now.

我們還看到，一些推遲的人也在繼續下降，但現在還沒有完成。

That's really helpful. Congratulations on the quarter. Really appreciate it.

這真的很有幫助。祝賀本季度。真的很感激。

The next question is from John Daniel of Daniel in Partners.

下一個問題來自合夥人公司 Daniel 的 John Daniel。

First is housekeeping. Mark, can you remind me what the budget was for '23?

首先是家政服務。馬克，你能提醒我 23 年的預算是多少嗎？

We had started out for a CapEx budget of just over $60 million. So we peeled that back $30-plus million.

我們最初的資本支出預算剛剛超過 6000 萬美元。所以我們剝離了 30 多萬美元。

Okay. Are you guys still pursuing with Tier 4 go fuel upgrade? Or can you walk us through what might have been put on hold?

好的。你們還在追求 Tier 4 go 燃油升級嗎？或者您能否向我們介紹一下可能被擱置的事情？

We're still proceeding with the Tier 4 upgrades. That is 1 area where we continue to see some supply chain difficulties on those engines, but we are continuing to proceed on that front.

我們仍在繼續進行第 4 級升級。這是我們繼續看到這些發動機的供應鏈困難的一個領域，但我們將繼續在這方面繼續前進。

John, I'll give you a little bit more color on that particular piece on the supply chain aspect. I think as we stated in our last call, went up to chat and visited them at their factory and all those type of things. And they've continued to get -- they have the engine. We have the first Tier 4 dual fuel engine that was delivered. It was not delivered with all of its parts.

約翰，我將就供應鏈方面的特定部分向您提供更多信息。我想正如我們在上次電話中所說的那樣，上去聊天並參觀了他們的工廠以及所有這些類型的事情。他們繼續獲得——他們擁有引擎。我們交付了第一台 Tier 4 雙燃料發動機。它並未連同所有部件一起交付。

It's like getting an automobile and not getting the steering wheel or tires to go with it. So it continues on. We are still working out of our manufacturing facility, of course, and it's just going to be a little bit slower go. So part of that reflection that Mark talked about on that delay is just purely a supply chain that we see and we've encountered.

這就像買了一輛汽車卻沒有配套的方向盤或輪胎。所以它繼續下去。當然，我們仍然在我們的製造工廠里工作，只是進度會慢一些。因此，馬克談到的延遲問題的部分反映純粹是我們看到和遇到的供應鏈。

Okay. Last one for me, I've got some cell phone issues, so I apologize, but just given sort of the -- you had a really successful ramp in bringing those fleets back and now a modest pause. Can you just walk us through how you handle the labor situation?

好的。對我來說，最後一個問題是，我的手機出現了一些問題，所以我很抱歉，但只是考慮到——你們在讓這些機隊回來方面確實取得了成功，現在暫時暫停了。您能否向我們介紹一下您是如何處理勞工狀況的？

We've had to cut back on the frac crews as a result of the white space in the calendar. Historically, we've been able to ramp up and find qualified crews. So we're not too concerned about having to ramp back up, but we've certainly actively manage that staffing level at the frac side to align with the activity that we've got on the calendar. .

由於日曆上的空白，我們不得不削減壓裂人員的數量。從歷史上看，我們一直能夠擴大並找到合格的工作人員。因此，我們不太擔心必須恢復生產，但我們確實積極管理了壓裂方面的人員配備水平，以與我們日曆上的活動保持一致。 。

Fair enough. And not trying to put you in a weird spot. But when the customers, given they're ultimately the ones that sort of drive the slowdown? Do they -- are they trying to work with you at all? Because I would assume that they will be coming back and using that equipment down the road?

很公平。並不是想讓你處於一個奇怪的境地。但考慮到客戶最終是導致經濟放緩的因素，那麼什麼時候呢？他們有嘗試與你合作嗎？因為我假設他們會回來並使用該設備？

Yes. The customer has absolutely been very in working with us, and the schedule has been very dynamic, but our sales team has done an excellent job of filling in those gaps and working with each of our customers. .

是的。客戶非常樂意與我們合作，日程安排也非常動態，但我們的銷售團隊在填補這些空白並與每個客戶合作方面做得非常出色。 。

The next question is from Don Crist of Johnson Rice.

下一個問題來自約翰遜賴斯公司的唐·克里斯特。

Your commentary about white space has been very kind of widespread across the industry this quarter. But I wanted to take that a step further, given your divisions that you have and namely sand. There's a lot of talk that there's going to be a lot of gas completions going into the end of the year. And I didn't know if you were having any customer conversations on the sand side from a demand perspective, specifically related to -- that can be construed into the frac side of the business, i.e. demand for sand is a leading indicator, obviously. So I didn't know if there was any kind of color you can provide there.

本季度您對空白的評論在整個行業中非常普遍。但考慮到你們的部門，即沙子，我想更進一步。有很多人說今年年底將會有大量天然氣完工。我不知道您是否從需求角度進行了關於沙子方面的任何客戶對話，特別是與業務的壓裂方面相關，即對沙子的需求顯然是一個領先指標。所以我不知道你們是否可以提供任何顏色。

Yes. Of course, we're backstopped with our 2 contracts, and that certainly helps things. What we are seeing is still strong demand for sand. Obviously, you have a little bit of a break with the breakup in Canada because, as you know, we go to Canada and to the -- to Colorado and to the Northeast, primarily with the sand. But we're still seeing a strong buildup coming in June and July. So it's -- we still -- that business has performed as good as it ever has in -- during this winter time period.

是的。當然，我們有兩份合同作為後盾，這肯定有幫助。我們看到對沙子的需求仍然強勁。顯然，你在加拿大的分手有一點休息，因為如你所知，我們去了加拿大，去了科羅拉多州和東北部，主要是帶著沙子。但我們仍然看到六月和七月的強勁增長。因此，我們仍然認為，在這個冬季期間，業務表現一如既往地好。

And one further on sand for me, it sounds like pricing has been fairly stable over the last 3 or 4 months. Do you see that continuing? Or do you think it kind of pulls back for a month or 2 and then kind of goes forward with demand.

對我來說，更進一步的是，聽起來價格在過去三四個月里相當穩定。您認為這種情況還在繼續嗎？或者你認為它會回落一兩個月，然後隨著需求的增長而增長。

Based on what we've seen over the next 2 to 3 months, it looks like pricing will be fairly stable.

根據我們在未來 2 到 3 個月的觀察，價格似乎將相當穩定。

Don, one of the things you know about us is that we are always -- a lot of our pricing is determined by the mix that we have. Obviously, 40/70 is the gold grade and then everything else trails. So when you're seeing it, we're still seeing pricing remain pretty strong, but if you see any lapses with it, it's because of the mix with 30/50 and 20/40, getting in mix with the 40/70.

唐，你對我們了解的一件事是，我們始終——我們的很多定價都是由我們擁有的組合決定的。顯然，40/70 是黃金等級，其他一切都落後。因此，當您看到它時，我們仍然會看到定價仍然相當強勁，但如果您看到任何失誤，那是因為 30/50 和 20/40 的混合，以及與 40/70 的混合。

I appreciate all the color and thanks for including me.

我很欣賞所有的顏色，也感謝你們包括我在內。

The next question is from Michail (inaudible) from Marktfeld.

下一個問題來自 Marktfeld 的 Michail（聽不清）。

I congratulate you on the quarter, big increases. Kind of looking at the demand environment, where there's cutbacks in drilling activity, cutbacks and well completion, you previously forecast EBITDA of around $15 to $18 per frac spread that's out there operating. In today's demand environment, are we still within that range or dropping a little bit, do you think?

我祝賀你們這個季度的大幅增長。從需求環境來看，鑽井活動、減產和完井工作均有所減少，您之前預測每條正在運營的壓裂差價的 EBITDA 約為 15 至 18 美元。在今天的需求環境下，您認為我們仍然在這個範圍內還是略有下降？

Likely peeling back a little bit to put that in perspective, closer to the $12 million to $15 million per spread on an annual EBITDA basis.

考慮到這一點，可能會稍微縮減一點，以年度 EBITDA 為基礎，每利差接近 1200 萬至 1500 萬美元。

Okay. Got it. And if you can allow one more question, coming back to that news on PREPA, I just want to make sure that I've fully got the implications. Is the Fed share that has been approved payable directly to you? Or does it have to go through PREPA and is complicated by their unwillingness to play?

好的。知道了。如果您可以再提出一個問題，回到 PREPA 上的新聞，我只是想確保我已經完全理解其中的含義。已批准的美聯儲份額是否可以直接支付給您？還是必須經過 PREPA，並且由於他們不願意參加比賽而變得複雜？

It has to go -- what -- the way the system is set up is COR3 is the grant recipient. And they have to submit the they received the paperwork from PREPA. PREPA has to do an RF or request for reimbursement. And then COR3 will pay them and then PREPA will pay us. now inexplicably -- and we're a month into this. So we found out about it on March 27 through some of our congressional leaders that we're acquiring for us.

它必須去 - 什麼 - 系統設置的方式是 COR3 是撥款接收者。他們必須提交從 PREPA 收到的文件。 PREPA 必須進行 RF 或請求報銷。然後 COR3 將向他們付款，然後 PREPA 將向我們付款。現在令人費解的是——我們已經這樣做了一個月了。因此，我們於 3 月 27 日通過我們為我們招募的一些國會領導人了解到了這一情況。

And -- we think that they have received that they put in a request for requisition of $130 million. So the timing for that is starting to come upon us. And I'm not trying to indicate that payment is imminent and all that type of thing, PREPA has been tough in this regard. But they have, as I said in -- as we went through the earnings part, they have funds that have been appropriated by Congress for a specific FEMA determination memorandum, and those funds have been made available to COR3 as the grant recipient. So they can continue to refuse to pay. But I don't think Congress will appreciate that very much that the -- that those funds are not going to the people who perform the work.

而且——我們認為他們已經收到了 1.3 億美元的徵用請求。因此，這個時機已經開始降臨到我們身上。我並不是想表明付款即將到來以及諸如此類的事情，PREPA 在這方面一直很強硬。但正如我在報告中所說，當我們討論收益部分時，他們擁有國會為特定的 FEMA 決定備忘錄撥款的資金，並且這些資金已提供給作為贈款接受者的 COR3。這樣他們就可以繼續拒絕付款。但我認為國會不會非常理解這些資金沒有流向執行這項工作的人。

Right. again, was struck by their unwillingness to pay even when they themselves have been paid. So I wanted to make sure understanding when money is likely to fall into your hands. It sounds though like if I understood what you said, there is some possibility of getting $130 million maybe sooner rather than later. Is that fair?

正確的。再次，即使他們自己已經得到報酬，他們也不願意付款，這再次讓他們感到震驚。所以我想確保了解錢什麼時候可能會落入你的手中。聽起來如果我理解你所說的，那麼遲早有可能獲得 1.3 億美元。這公平嗎？

To clarify the portion of that $210 million that relates to unpaid invoices for Cobra is $99 million. .

澄清一下，這 2.1 億美元中與 Cobra 未付發票相關的部分是 9900 萬美元。 。

Correct.

正確的。

And that money to the extent that COR3 draws is not fungible. So that money can only be paid to Cobra once drawn.

而且 COR3 提取的資金是不可替代的。因此，這筆錢只有在提取後才能支付給 Cobra。

Okay. Great.

好的。偉大的。

Our next question is from Carter Dunlap of Dunlap Equity Management.

我們的下一個問題來自鄧拉普股權管理公司的卡特·鄧拉普。

Is there any plans to mobilize any of the spreads from, let's say, the Northeast to your other basins?

是否有計劃將東北地區的價差轉移到其他盆地？

We don't have any near-term plans, but we've certainly got the capability to move those spreads and can do so fairly quickly. So our crews are able to be moved along with those spreads and have been fairly mobile. So to the extent that the sales team lines up work in the Mid-Continent, we're certainly willing and capable of moving those spread.

我們沒有任何近期計劃，但我們當然有能力改變這些價差，而且可以相當快地做到這一點。因此，我們的工作人員能夠隨著這些傳播而移動，並且具有相當的機動性。因此，就銷售團隊在中大陸安排工作而言，我們當然願意並且有能力轉移這些分佈。

And one last question. You cited 3.6 as the average for the quarter. What -- remind me what -- how many stages or -- I'm sorry, spreads are converted, not the natural gas dual fuel, but weren't you trying to finish 4 or 5, number 4 or 5.

最後一個問題。您引用 3.6 作為該季度的平均值。什麼 - 提醒我什麼 - 有多少階段或 - 對不起，價差已轉換，不是天然氣雙燃料，但你不是想完成 4 或 5，數字 4 或 5。

So we've currently got almost 2 spreads converted to Tier 2 dual fuel. As we've referenced earlier, we're in the process of converting 1 spread to Tier 4, but that conversion has been impacted by supply chain restraints.

因此，我們目前已將近 2 個價差轉換為 Tier 2 雙燃料。正如我們之前提到的，我們正在將 1 級價差轉換為 4 級，但這種轉換受到了供應鏈限制的影響。

With no other questions -- thank you, everybody, for joining us. Thanks, operator. Thank you again for joining us on the call today. We maintain our belief that Mammoth is well positioned for continued growth and supported by experienced team members that are among the best in the business. This concludes our conference call, and we look forward to speaking to you again next quarter. Thank you. .

沒有其他問題了——謝謝大家加入我們。謝謝，接線員。再次感謝您今天加入我們的電話會議。我們堅信，Mammoth 處於持續增長的有利位置，並得到了業內最優秀的經驗豐富的團隊成員的支持。我們的電話會議到此結束，我們期待下季度再次與您交談。謝謝。 。

This concludes today's conference. Thank you for joining us. You may now disconnect your lines.

今天的會議到此結束。感謝您加入我們。您現在可以斷開線路。