Drilling services provider Mammoth Energy LP files for a $100 million IPO

Mammoth Energy Partners LP, an MLP formed to provide drilling, production and completion services for oil and gas E&Ps, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering.

Business
Mammoth Energy Partners LP represents a combination of entities contributed by Wexford Capital and Gulfport Energy, including providers of drilling, logistics, proppant and other completion and production services. Mammoth divides its segments into completion and production services (42% of 1H14 revenue), contract drilling (49%) and remote accommodation services (9%). It owns 52 high pressure hydraulic fracturing units in the Utica Shale and offers pressure control services, flowback services, equipment rental and frac sand across major US oil and gas sites. It has 14 land drilling rigs, in the Permian Basin, 11 of which are designed for horizontal drilling. 

Related IPOs
Mammoth's services overlap with Independence Contract Drilling (ICD), which has traded up 5% from its August IPO after pricing below the range. Unlike ICD, Mammoth is structured as an MLP that will offer quarterly dividends. Like upcoming IPO Fairmount Santrol (FMSA), Mammoth provides frac sand to customers in the Utica, Permian and Bakken.

Financials
Historical revenue for the combined entities was $106 million during the six months ended June 30, 2014, a 67% increase over the prior year period. Gross margin fell 140 bps to 22%. Adjusted EBITDA jumped 77% to $18 million (16.7% margin) as SG&A fell as a percent of revenue. At the end of June, Mammoth had $70 million of debt on its balance sheet.

The Oklahoma City, OK-based company, which was formed in 2014 and booked $175 million in predecessor sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol TUSK. Mammoth Energy Partners LP initially filed confidentially on February 14, 2014. Credit Suisse is the sole bookrunner on the deal. No pricing terms were disclosed.