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Mammoth Energy Partners LP (TUSK -0.89%)
Q1 2019 Earnings Call
May. 02, 2019, 11:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, ladies and gentlemen. And welcome to the Mammoth Energy Services First Quarter 2019 Earnings Conference Call. At this time all participants are in a listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. As a reminder, this conference call is being recorded and will be available for replay on Mammoth Energy Services website.
I would now like to introduce your host for today's conference, Mr. Don Crist, Mammoth Energy Services Director of Investor Relations. Sir, you may begin.
Don Crist -- Director of Investor Relations
Thank you, Ashley. Good morning and welcome to Mammoth Energy Services first quarter 2019 earnings conference call. Joining me on today's call are Arty Straehla, Chief Executive Officer and Mark Layton, Chief Financial Officer. Before I turn the call over to them, I'd like to read our Safe Harbor statement. Some of our comments today may include forward-looking statements, reflecting Mammoth Energy Services' views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Mammoth Energy Services' Form 10-K, Forms 10-Q, current reports on Form 8-K and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Our comments today may also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures are included in our first quarter press release which can be found on our website, along with our updated presentation.
Now, I'll turn the call over to Arty.
Arty Straehla -- Chief Executive Officer
Thank you, Don. And good morning, everyone. The first quarter of 2019 was a busy one for Mammoth as we increased activity across our pressure pumping fleets and sand mines and wound down our operations in Puerto Rico.
As you are aware, oil prices increased 32% during the first quarter of 2019, leading to higher profitability for the E&Ps and more optimism throughout the industry. The widely expected reduction in the land rig count has been muted versus original forecasts and there are signs of increased pressure pumping utilization and pricing.
Several of our completions focused business lines saw higher utilization during the first quarter and discussions with E&Ps interested in increasing activity in the back half the year are increasing. While it is difficult to predict future activity levels given the current investor sentiment around keeping CapEx within cash flows and the return of capital to shareholders, we are encouraged with current conversations.
In the T&D space we are seeing an upward trend in the amount of maintenance spending from the larger IOUs. This is growing the overall spending of the industry and is expected to translate into more work for all of the companies in the sector. Given our recent investments, we feel we-that we are well positioned to be potentially-to potentially increase our market share over the coming years.
Now, let me give you an update on our current operations, starting with our Infrastructure division. Our Lower 48 Infrastructure business has grown rapidly over the past 18 months. While a lot of emphasis has been placed on Puerto Rico over the past year and a half, let me remind you of what the Lower 48 Infrastructure business has accomplished during that time period.
At the end of the third quarter of 2017, we had a backlog of approximately $30 million which we have grown to $635 million by the end of Q1 of 2019. On a crew count basis, we have grown from approximately 50 crews to over 140 today with further growth expected throughout the back half of 2019. Our teams are actively working in the northeastern actively working in the Northeastern, Southwestern, Midwestern portions of the United States in addition to helicopter operations on the West Coast. In addition, we are in active discussions with several existing new large investor owned utilities to further expand our operating footprint and build our backlog with bids totaling over $3.5 billion currently outstanding.
All of our linemen have returned to the Lower 48 with only a small contingent of team members remaining in Puerto Rico to facilitate the demobilization of our remaining equipment. The task of reconstructing the electrical grid in Puerto Rico to both harden it and provide better protection from future storms is in the early stages and the fragility of the system remains.
PREPAs reconstruction plan calls for spending $17.6 billion over the coming 8 years with a ramp up in the reconstruction projects expected to start in 2020. We expect RFPs to be issued in the back half of 2019 for work starting in 2020. While we currently intend to bid there can be no assurances that we will be able to secure contracts for any of this work.
From an oilfield service perspective, the first quarter was decidedly better than the fourth quarter of 2018 as the E&P budgets were reset for the New Year and oil prices rebounded over 50% from the lows seen on Christmas Day.
As we first reported on our fourth quarter call, we have seen significant improvement in both our pressure pumping and sand utilization. We pumped 1889 stages during the first quarter of 2019 with our EBITDA margins for our pressure pumping division coming in approximately 13% or approximately $11 million in EBITDA per active fleet per year.
While pricing remains depressed, recent conversations with the E&Ps are encouraging both on utilization and pricing. Five of our six fleets are operating today, four of which are in the Northeast with one operating in the mid=continent area. In April we pumped 861 stages which was a new company record. Visibility for the next several months is strong with five of our six dedicated-of our fleets dedicated to customers until August.
Turning to sand. The weakness experienced during the fourth quarter of 2018 reversed in the first quarter of 2019 with our mines experience an increase in utilization from approximately 30% during the fourth quarter to approximately 95% today.
Our order book has continued to increase over the past several weeks with pricing for 40/70 up approximately 90% percent from the lows seen in Q4. As a reminder, we continue to have a strong base line of business via contracted capacity which has kept our tailor and Piranha plants operating and our costs low.
We sold approximately 665,000 tons of sand during the first quarter of 2019 of which approximately 29% was brokered. The average sales price for the sands sold during the first quarter of 2019 was $32.30 per ton, while our blended first quarter production cost came in at approximately $12 per ton. Our Rentals business experienced significant growth over the past 9 months and that growth continues today. Throughout April, we averaged over 650 pieces of equipment on rent across the northeast and Mid-Continent regions, which is up more than 90% year-over-year. Recent conversations with several customers operating in the Permian Basin have been positive and we are expanding our operations into that area.
Our water transfer business has experienced significant growth with operations in both the Northeast and Mid-Continent. As of today, we have more than 81 miles of lay flat hose and 62 pumps deployed with visibility on increasing these numbers in future quarters.
Our water transfer operations are on pace to generate meaningful revenue and EBITDA in 2019. The water handling businesses are growing an active segment and we are looking at potential expansion opportunities both organically and through acquisitions.
Our transportation business continues to grow with the planned expansion into the Northeast with our crude hauling division. We have commenced brokering oilfield in General Cargo freight and are currently operating approximately 175 company-owned trucks, plus our own operators. We are continuing to find opportunities to expand our fleet to support our other divisions, while increasing our work for third-parties.
The M&A pipeline remains robust with our team currently evaluating approximately 25 transactions. Some of which are in the oilfield and infrastructure service space and would be expected to have attractive returns. In addition, we will remain acquisitive outside of our current operating areas that would further our expansion into the industrial space and could provide stable cash flows in the years to come.
As our history has shown, we intend to remain disciplined in the deployment of capital choosing only to transactions that are projected to meet or exceed our hurdle rates. Throughout 2019 we intend to be selective in our investments and build cash for future opportunities.
Within the oilfield services segment, the best opportunities we see today are an expansion of our rental fleet, our water transfer operations in our trucking fleets. All of these business lines are generating solid returns with room for growth in existing operational areas and new basins.
Before passing the call to Mark, let me sum up the first quarter of 2019 in this way. The reset of E&P budgets for the new year and significant increase in commodity pricing drove increased demand for our pressure pumping and sand businesses. While commodity prices remain volatile, recent conversations with our customers have been encouraging when we see the potential to increase utilization pricing in the coming months.
The transformation that Mammoth has undergone over the past year to shift to a broader industrial focus has been delivered and we are continuing down that path in an attempt to remove some of the cyclicality attempt to remove some of the cyclicality assuming that our financial results from quarter-to-quarter. We will remain disciplined, patient and exclusively focused on opportunities that meet or exceed our targeted thresholds.
Let me turn the call over to Mark, to take you through the financial performance during the first quarter of 2019 after which we will take questions.
Mark Layton -- Chief Financial Officer
Thank you, Arty, And good morning, everyone. I hope that all of you have had a chance to read our press release. So I will keep my financial comments brief and focus on certain highlights. Mammoths revenue during the first quarter of 2019 came in at $262 million, down 6% from the fourth quarter of 2018.
A reduction of activity in Puerto Rico and our infrastructure segment contributed to the lower revenue compared to the prior period. Net income for the first quarter of 2019 came in at $28 million, which was slightly below the fourth quarter of 2018. On a per share basis, net income for the first quarter came in at $0.63 per diluted share.
During the first quarter of 2019, income taxes were $23 million, resulting in effective tax rate of 45%. Adjusted EBITDA for the first quarter of 2019 came in at $83 million, as comparable to consensus estimates of $74 million. Our corporate adjusted EBITDA margin was 32% during the first quarter of 2019.
Selling, general and administrative expenses came in at $17 million or 7% of revenues during the first quarter of 2019 compared to $15 million in the fourth quarter of 2018. Other income was $25 million during the first quarter of 2019. Other income was comprised of $26 million related to interest on accounts receivable, partially offset by other expenses of approximately $1 million. The interest charged was pursuant to the contractual agreement with PREPA . The receivable from PREPA was $284 million as of March 31, 2019 and was $273 million as of April 26, 2019.
CapEx during the first quarter of 2019 was approximately $20 million the majority of which was related to the organic growth of our trucking, rental and water transfer businesses. For 2019 we anticipate spending approximately $80 million on CapEx throughout the year, of this total approximately $25 million is designated for infrastructure services with approximately $55 million designated for oilfield services. Given our current outlook, we expect this level of CapEx to be completely funded or internally generated cash flows.
As of March 31, 2019 we had twenty $21 million in cash and $82 million of borrowing under our $185 million credit facility, resulting in total liquidity of $115 million, net of letters of credit. Pursuant to the terms of our original PREPA contract, once our 2018 Puerto Rico income tax returns are filed, which we currently expect to happen in mid-May, we are entitled to receive $45 million from PREPA related to a contractual income tax provision.
We thank our shareholders for their support. This concludes our prepared remarks and we thank you for your time and attention. We will now open the call for questions.
Questions and Answers:
Operator
Thank you. (Operator Instructions)
And our first question comes from the line of Tommy Moll with Stephens. Your line is now open.
Thomas Moll -- Stephens Inc -- Analyst
Good morning and thanks for taking my questions.
Arty Straehla -- Chief Executive Officer
Good morning,Tommy.
Thomas Moll -- Stephens Inc -- Analyst
Arty, it's pretty clear the Northern White sand market caught a bid here in the first quarter. Could you take us through some of the drivers there, what drove pricing in particular, what the forward outlook appears to be say in second quarter and in particular there is it -- is it fair to assume that your average sales price should continue to tick up quarter-over-quarter?
And then at a higher level, where do you think we stand in terms of the market on capacity that shut in with some of your peers and do you see them coming back on line as a threat near-term to some of the good fundamentals you've experienced recently or does it seem more like those who were shut down are coming back any time this year?
Arty Straehla -- Chief Executive Officer
A lot of a lot of questions in there Tommy. Let me let me start and talk about the sand performance in the teens. As you well know in Q4 that we talked about on the phone call, we were operating three to four days in each one of our plants and price was down in the teens for 40/ 70 and we were in a position where it was looking pretty bleak.
With the reset of budgets and we started alluding to that a little bit as we started coming out of it. Our plants are now operating seven days most weeks and in the alternate weeks six days. So it's back to where we're running our operations about the 95% level.
Mark Layton -- Chief Financial Officer
95% level. The pricing is up 90% on 40/70 and our costs are down around $12 at the mine. We see very strong clarity as we move into May and June with our order book. So we think it's continuing. A lot of it is in support of our activities. Quite honestly, the vertical integration aspect of having access to our own sands was very strong to -- in contributing to the pressure pumping side where you saw a set a record for the number stages in the month.
We were challenged with transportation issues, but because of our team's focus and our ability to get there, and when I say transportation issues, the rivers were flooded in the lot, there was a lot that was down and backed up barges for approximately two and half weeks. And then there were some challenges with the rail that our team were able to overcome that.
So you can see that contribution of our sand is not only just straight from our third party contracts that we still have and are in force, but also from the vertical integration aspect of it. So very strong quarter for sand. The -- they are continuing to perform very well. Our costs are down around $12 per ton and we think that the order book looks very sound.
Don Crist -- Director of Investor Relations
Let me add one thing to that, Tom. This is Don. A lot of the mines in Wisconsin produce a lot of course grade material. The market for coarse grade material is still very poor throughout the industry and a lot of that coarse grade material is being dumped.
So dependent on the mine if you produce upwards of 50% coarse grade material, you're literally dumping that back into the reclamation pile and it's costing you money to actually produce it. So if you're dumping that much sand it could inflate your costs by upwards of $5 to $10 per ton and that could be a barrier to entry for a lot of the mines that are currently idled and completely shut down today from coming back in the current pricing environment.
So we don't see a lot of sand coming back in the short term, given where spot prices are today. And our order book as Arty said is very strong for the next 30, 60, 90 days.
Thomas Moll -- Stephens Inc -- Analyst
Great. Thank you both. And I don't really mark out here. Mark I wanted to ask you about working capital. There are a lot of moving pieces with the business winding down in Puerto Rico with your receivables, your payables, taxes that you guys owe, but then some of that comes back in the form of a refund. Anything in particular you can help us with in terms of walking through those different drivers or maybe if we just want to kind of get to the punch line which I think is where a lot of investors heads are at? Is it fair that there-that we should end the year with north of $100 million in cash after a pretty significant net working capital release in the coming quarters?
Mark Layton -- Chief Financial Officer
Yes. I think to jump to the punch line, we would expect to end of the year between $2.50 and $3 per share in cash which would imply a $110 million to $135 million in cash on the balance sheet. We've got just under $5 per share in working capital less debt (ph) today and we expect to monetize that, have that cash on the balance sheet at year end based on what we have line of sight up today.
Thomas Moll -- Stephens Inc -- Analyst
Okay. Great. And we can spare ourselves going through all the different accounts on the balance sheet, that gets us what we need. Thank you and that's all for me.
Don Crist -- Director of Investor Relations
Thanks, Tommy.
Operator
Thank you. And our next question comes from the line of Jason Wangler with Imperial Capital. Your line is now open.
Jason Wangler -- Imperial Capital -- Analyst
Hey, good morning all.
Arty Straehla -- Chief Executive Officer
Good morning, Jason.
Jason Wangler -- Imperial Capital -- Analyst
Arty, wanted to ask you I mean, with your background in the vertical integration-in the manufacturing side is that something you guys would look at or something that you would pursue to kind of continue a vertical integration. I think, you guys have been doing the last couple years?
Arty Straehla -- Chief Executive Officer
I'll tell you Jason it's an interesting question of course. Yes, the answer is -- the short answer is yes. From previous business that ran for Wexford Capital that was very successful, had a very good outcome. We had a five year non-compete that actually ends May 9th.
So we are -- we've been actively looking for manufacturing spaces to start that process up. And I would expect that we will be manufacturing something in the next-begin to manufacture in the next couple of months. So we are looking at that aspect.
Now its not necessarily going to be the large equipment, that we have in mind, but it is going to be things for our rentals and our-for our rental division and for our water transfer division that we think would have a very nice return for us. So yes, we are actively considering.
And then that's more of the move toward the industrial side as well. But yes, we are actively engaging in and we've actually looked at a couple of manufacturers over the course of the last couple of months where as you well know we are very active, we have about 25 going -- 25 deals that we are looking at, and we get-we received lots of deal flow of course.
Jason Wangler -- Imperial Capital -- Analyst
Okay. That helpful. I appreciate the color. And maybe Mark-to Doug on Tommy's question, As you think about that level of cash later this year, you're obviously paying a dividend already-as already we're just saying you're obviously focused on M&A when appropriate. But is there-besides I assume that the national paying down some of the credit facility as some of those funds come in. Is there something else you guys are kind of focused on or is it more just kind of seeing what happens as the cycle evolves?
Mark Layton -- Chief Financial Officer
We'll be nimble as the cycle evolves, as we always have been. We still see a fairly robust deal flow, as Arty mentioned, we've got approximately 25 deals that we're currently evaluating. Absent an investment opportunity that meets our return thresholds, we can evaluate returning cash to shareholders.
Jason Wangler -- Imperial Capital -- Analyst
Great. I appreciate the color. I'll turn it back.
Don Crist -- Director of Investor Relations
Thank you, Jason.
Operator
Thank you. And our next question comes from the line of Daniel Burke with Johnson Rice. Your line is now open.
Daniel Burke -- Johnson Rice -- Analyst
Thanks. Good morning guys. Question for you, can you go ahead and provide us with the split of the US and Puerto Rico revenues in Q1 and infrastructure just to get a sense of the baseline US performance?
Arty Straehla -- Chief Executive Officer
Daniel, absolutely the split was about 70% Puerto Rico inside of Q1 on the revenue side.
Daniel Burke -- Johnson Rice -- Analyst
Okay. And was -- in terms of thinking about margin performance in the business obviously transitioning back to continental US here in the near term. Can you give us a sense for whether margins were in range with your targets in Q1 and then as we look to Q2, I mean, any wrinkles to keep in the back of our mind as you complete the line down in Puerto Rico?
Arty Straehla -- Chief Executive Officer
I think as you look at Q1 and Q2 there's a little bit of noise if you will in the transition of our alignment from Puerto Rico to the Lower 48. So you've got some labor cost in Q1 that will bleed into the early part of Q2. And then you've got some logistics cost mobilizing that equipment from Puerto Rico to the US inside of Q2 that will hit.
So there will be a little bit of margin noise that will continue inside a Q2. But looking into the back half of the year, we expect the infrastructure business to generate EBITDA margins in that 15% to 18% range that we've talked about historically.
Mark Layton -- Chief Financial Officer
Daniel, let me give you a little bit more color on our infrastructure segment. Because we are rapidly increasing our customer base. We're going into Florida to start working for the large IOUs there, Florida Power and Light, Duke, Tempered (ph) Power and Light. We're adding crews with our major IOUs.
Arty Straehla -- Chief Executive Officer
adding crews with our major IOUs .We're up to 141 now, we're expanding into Tennessee in the next 60 days. And one of the more important part -- important parts are we continue to renegotiate rates with our existing IOUs.
The other part of that and it was it was asked earlier about the vertical integration, our helicopter company continues to perform very well. We're deploying-we have helicopters deployed in with PG&E. On the West Coast we have one heading toward Minnesota to do transmission work on a yearlong contract and wee continue to feed that business and again that vertical integration of being able to handle your own helicopters with your own work is extremely important.
And that's-we've continued to and we've mentioned this before, we want to continue to move our trends over to the transmission side of things and having those helicopters available is very helpful.
Daniel Burke -- Johnson Rice -- Analyst
Yeah. That's helpful Arty. Thank you. Thank you for that detail and it's good to see the push toward that transmission side is continuing. I guess as a follow up just to pivot here. on the pumping side, Arty, you alluded I think in your early comments to signs of increased pumping pricing. I don't think we've heard-we've heard a lot of different things this quarter. So i was wondering if you could elaborate on that?
And then, I guess the other second element of a question on pumping would be to ask, if you all can sustain the efficiency levels you achieved in the month of April or those efficiency levels alone good enough to get you back to an annualized EBITDA per fleet in the low teens here in Q2?
Arty Straehla -- Chief Executive Officer
It's certainly the efficiency is always extremely important and the crew -- I mean, just to give you a little -- we set another record in the month of April with 858 stages. Yesterday, with five crews operating we did 40 stages and with the clarity of schedule we see until August it helps us absolutely be prepared for it.
Pricing is not come all the way back. It's still a little bit suppressed but it will get our margins up to with those type of efficiencies to the 15% to 17% EBITDA range.
Now I think one thing of significance that we saw over the course because we've had this and we even mentioned it in our script about the E&Ps being very disciplined, not going to break ranks and all that type of thing.
We actually saw Laredo announced yesterday that they were going to outspend their cash flow. They were the first E&P that I know of that is going to break ranks and outspend cash flow. They're going to complete 30 from-their original plan was to complete 36 wells complete 36 wells, they are actually going to complete 52 and their stocks up today. It was up about 10% to 11%. Now one robin doesn't make a spring, but if other -- if the price of commodities stays stable and other E&P start to do the same, we think the pricing will come back in the second, third quarter.
Daniel Burke -- Johnson Rice -- Analyst
Its helpful, Arty. And just to make sure I heard you correctly, you alluded to with the efficiency levels you're achieving being able to get back to a 15% to 17% EBITDA percent margin. Correct?
Arty Straehla -- Chief Executive Officer
Correct.
Daniel Burke -- Johnson Rice -- Analyst
Okay. Wonderful. All right. Well, thank you guys. I appreciate the time this morning.
Arty Straehla -- Chief Executive Officer
Thanks Daniel.
Operator
Thank you. And our next question comes from the line of Praveen Narra with Raymond James. Your line is now open.
Praveen Narra -- Raymond James -- Analyst
Hey. Good morning, guys. I guess if I could follow up on Daniel's first question, in the US infrastructure business as we see the equipment shift from Puerto Rico to the US and you can use more old equipment versus rented. Can we actually see some upward movement to that 15% to 18% target or what about this in there?
Arty Straehla -- Chief Executive Officer
Praveen, there is some upward possibility on that 15% to 18% and that's largely driven by mix. We briefly mentioned the transmission side of the business earlier and that's a higher margin service line. And as we increase that particular mix, we would expect that the margins to be biased higher.
Praveen Narra -- Raymond James -- Analyst
Okay. And then as we think about you mentioned $3.5 billion of bidding outstanding for the US side, can you talk about the size of projects you guys are bidding on with the turnkey versus time of materials? And just how you think about success rate for bids?
Arty Straehla -- Chief Executive Officer
We have a lot of outstanding bids and as we said in the conference call and those aren't all just continental United States. We are doing something in international markets and we have access and again it goes back to our deal flow that we have and we had a huge bid for a transmission project in Nebraska that we lost and usually don't talk about the ones that you lose.
But it just gives you an indication of the type of business development that our teams are doing and they are extremely astute at business development and they are pretty widespread with the number of customers that they are hitting. So, we do have some very good line of business visibility on our basic business right now. But, we are also going after some aggressive -- more aggressive forms of business as well.
Praveen Narra -- Raymond James -- Analyst
Okay. If I could ask one more clarification question just in terms of the year end cash figure, I assume that doesn't contemplate any cash M&A transactions or anything like that?
Arty Straehla -- Chief Executive Officer
That's correct.
Praveen Narra -- Raymond James -- Analyst
Okay. Perfect, thank you very much guys.
Arty Straehla -- Chief Executive Officer
Thanks, Praveen .
Mark Layton -- Chief Financial Officer
Thank you, Praveen.
Operator
Thank you. (Operator Instructions)
And our next question comes from the line of Taylor Zurcher with Tudor Pickering Holt. Your line is now open.
Taylor Zurcher -- Tudor Pickering Holt -- Analyst
Hey good morning. Arty, you had some encouraging outlook commentary as relates to pressure pumping. And my question is just on the geographic positioning of your fleet. I think you said five year fleets in the northeast today and it feels like that's been one of the market that's really ramped at least the year-to-date.
But then if you look at the Natural Gas strip (ph) it would suggest that at some point that strength is going to crater a bit. And so just curious sometime like you're seeing any weakness here year-to-date, but how do you think about the overall macro environment as it relates to your geographic positioning on the pressure pumping side in the Northeast?
Arty Straehla -- Chief Executive Officer
Well, we have four of our five just to be clear. Taylor, we have four of our five fleets that are up in the Northeast and working and we have one in the mid-con area. We actually see-right now we're seeing a little bit firmer pricing in the Northeast and we are in the mid-con -- mid-con is a fairly tough competitive area, but with the efficiencies that we have we're able to still make some significant money.
We still think that the oil is the place to be in everything and focused on that and we'll make our moves so that equipment is mobile. But let me also remind you that our contract that we have with Gulfport and that is -- that has been part of our story since we did the IPO in 2016 and that is a base part of our pressure pumping story.
Taylor Zurcher -- Tudor Pickering Holt -- Analyst
Understood. And a couple of follow ups on the infrastructure side and it was probably just born out of the fact that as I focused on the oil effect (ph) side for the most part of it. But when you talk about $3.3 billion of bidding including activity out there and how does that look historically maybe maybe three months ago, has that level of bid including activity improved naturally as you bid more equipment back to the US from Puerto Rico and what's the best way to think about that sort of quoting activity translating into additional sequential improvement in the Lower 48 backlog moving forward?
Arty Straehla -- Chief Executive Officer
Well, Puerto Rico and you go back to the history of how we started the infrastructure and we started off two small acquisitions in Puerto Rico came up and that morphed into a billion dollar opportunity, but it also gave us a showcase-ability to showcase our talents and now with the integration of helicopters and that type of thing, it's really gotten us to where we proved what we could do in fairly tough conditions in Puerto Rico. You go back to where it was initially with no power, absolutely no power and being able to house our men and do all the logistical aspects of that job. That tells you that we can go to tougher areas. We can go to areas that are still developing their infrastructure and those are some of the things that we are bidding on. I can't tell you the exact locations and that type things, because it's -- we're in the midst of those processes. But those can morph into very large jobs, one of the loan (ph) is $2.4 billion that we're looking at. Now, I don't want to insinuate at all that we've got that, but we have a team that can absolutely execute on the logistics aspect and live in tough trains in tough areas and still be very, very successful.
So we're very encouraged by what's happening with our infrastructure business.
Taylor Zurcher -- Tudor Pickering Holt -- Analyst
Okay. Got it. And last housekeeping one for me. When you talk about a year end cash balances north of $110 million. , does that contemplate collecting all the receivables from PREPA which I think you said was somewhere around $270 million?
Mark Layton -- Chief Financial Officer
Yes. As of April 26 it was just north of $270 million. And we fully expect to monetize that receivable and collect what's due under the terms of the contract. There's no reason to think that we won't collect. Right. So far we've collected in excess of a billion dollars and that's about 80%. We still have some unbilled that is still coming in and that we're -- we've got to deal with. So, we have no reason to suspect that we won't get paid.
Taylor Zurcher -- Tudor Pickering Holt -- Analyst
Okay, great. Thanks, guys.
Mark Layton -- Chief Financial Officer
I'd also add that we have open dialogue with the principals at PREPA and we keep that dialogue very close. In fact, two of our three -- two of our three largest payments so far this year have come in the last two weeks. So we're very encouraged.
Taylor Zurcher -- Tudor Pickering Holt -- Analyst
Okay. Awesome, thank you.
Operator
Thank you. Ladies and gentlemen this concludes today's Q&A session. I would now like to turn the call back over to Arty Straehla for any closing remarks.
Arty Straehla -- Chief Executive Officer
Thank you. We want to thank everyone for dialing in today. I want to personally thank our team, without the hard work performed by each of you Mammoth would not be what it is today. The future is bright for Mammoth and our team members as we intend to grow and deliver shareholder value in the years to come. Thank you to our shareholders for your support and interest in our company. We look forward to seeing many of you at our upcoming conference appearances and speaking with you again in August when we release our second quarter earnings. This concludes our first quarter conference call. Good day.
Operator
Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program and you may all disconnect. Everyone have your wonderful day.
Duration: 37 minutes
Call participants:
Don Crist -- Director of Investor Relations
Arty Straehla -- Chief Executive Officer
Mark Layton -- Chief Financial Officer
Thomas Moll -- Stephens Inc -- Analyst
Jason Wangler -- Imperial Capital -- Analyst
Daniel Burke -- Johnson Rice -- Analyst
Praveen Narra -- Raymond James -- Analyst
Taylor Zurcher -- Tudor Pickering Holt -- Analyst
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