Mammoth Energy Services has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 7.75 million shares in the range of $15 to $18 per share, with an overallotment option for an additional 1.4125 million shares. At the maximum price, the entire offering is valued up to $164.925 million. The company intends to list its shares on the Nasdaq under the symbol TUSK.
The underwriters for the offering are Credit Suisse, Barclays, Simmons & Co. International (Energy Specialists of Piper Jaffray), Raymond James, Tudor Pickering Holt, UBS Investments, Johnson Rice, Stephens, Wunderlich and PNC Capital Markets.
This is an integrated, growth-oriented oilfield service company serving companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The primary business objective is to grow operations and create value for stockholders through organic opportunities and accretive acquisitions.
Mammoth’s suite of services include completion and production services, natural sand proppant services, contract land and directional drilling services and remote accommodation services. Its completion and production services division provides pressure pumping services, pressure control services, flowback services and equipment rentals.
The natural sand proppant services division sells, distributes and is capable of producing proppant for hydraulic fracturing. The contract land and directional drilling services division provides drilling rigs and crews for operators as well as rental equipment, such as mud motors and operational tools, for both vertical and horizontal drilling. The remote accommodation services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas away from readily available lodging.
Mammoth believes that these services play a critical role in increasing the ultimate recovery and present value of production streams from unconventional resources. Its complementary suite of drilling and completion and production related services provides it with the opportunity to cross-sell services and expand the customer base and geographic positioning.
The company intends to use the net proceeds from this offering to repay in full its outstanding borrowings, with the remainder going toward working capital and general corporate purposes.