Mammoth Energy Partners L.P. filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were given for the offering, but there is a potential to raise up to $100 million. The company plans to list on the Nasdaq Global Market under the symbol TUSK. The only underwriter for this offering currently listed is Credit Suisse.
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Mammoth was originally formed in February 2014 in Delaware as a holding company under the name Redback, and it was just recently converted to a Delaware limited partnership in August 2014.
The company is a master limited partnership (MLP) that serves companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The primary business objective is providing an attractive total return to unit holders through organic growth opportunities and accretive acquisitions.
The services Mammoth provides include completion and production, contract land, directional drilling and remote accommodation services. The completion and production services provide pressure pumping services, pressure control services, flowback services and equipment rental, and it also produces and sells proppant for hydraulic fracturing. The contract land and directional drilling services provide drilling rigs and crews for operators as well as rental equipment. The remote accommodation provide housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas. These services have the potential to play a critical role in increasing the ultimate recovery and present value of production streams from unconventional resources.
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The proceeds from this offering will be used to pay an undetermined amount to the company’s credit facilities including Redback facility, Coil Tubing facility, Muskie facility, Bison facility and Stingray Pressure Pumping facility. The remainder of proceeds will go towards general partner purposes, which may go towards the acquisition of additional equipment or complimentary businesses.
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