OKLAHOMA
CITY, Aug. 9, 2024 /PRNewswire/ -- Mammoth
Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK)
today reported financial and operational results for the second
quarter ended June 30, 2024.
Financial Overview for the Second Quarter 2024:
Total
revenue was $51.5 million for the
second quarter of 2024 compared to $43.2
million for the first quarter of 2024.
Net loss for the second quarter of 2024 was $156.0 million, or $3.25 loss per diluted share, compared to net
loss of $11.8 million, or
$0.25 loss per diluted share, for the
first quarter of 2024.
Adjusted EBITDA (as defined and reconciled below) was
($160.7) million for the second
quarter of 2024 compared to $4.5
million for the first quarter of 2024. During the second
quarter of 2024, the Company recognized expense of $170.7 million related to the settlement between
Mammoth's subsidiary Cobra Acquisitions LLC ("Cobra") and the
Puerto Rico Electric Power Authority ("PREPA"). Excluding this
non-recurring expense and interest income previously accrued on the
receivable with PREPA, Adjusted EBITDA would have been ($0.3) million for the second quarter of 2024
compared to ($6.0) million for the
first quarter of 2024.
Settlement Agreement
As previously announced, on
July 22, 2024, Mammoth's subsidiary
Cobra entered into a release and settlement agreement to settle all
outstanding matters between Cobra and PREPA (the "Settlement
Agreement"). As a result of the Settlement Agreement, the Company
expects to receive $188.4 million in
total settlement proceeds. During the second quarter of 2024, the
Company recorded a non-cash, pre-tax charge of approximately
$170.7 million, of which $89.2 million was charged to credit loss expense,
which is included in "selling, general and administrative" and
$81.5 million was charged to interest
on delinquent accounts receivable, which is included in "other
income, net" in relation to the Settlement Agreement.
Arty Straehla, Chief Executive Officer of Mammoth commented, "We
are pleased to report sequential improvement in our second quarter
results, compared to the first quarter, despite continued
challenges that persist due to industry activity softness,
especially in the natural gas basins that we operate, constraining
our Well Completion Services division and other oilfield services.
Our Infrastructure Services business continues to perform well and
is demonstrating growth both sequentially and year over year. As we
enter the second half of the year, our teams across the
organization remain focused on efficient and effective cost
management to align with the activity levels of our customers. We
enter the second half of the year with an undrawn revolver and cash
on the balance sheet, as well as a recently announced resolution
with PREPA. With the anticipated collection of the PREPA receivable
as a result of the Settlement Agreement, we believe Mammoth will be
better positioned to capitalize on improved market fundamentals we
anticipate in 2025.
"We look forward to receiving the PREPA settlement proceeds and
plan to use a portion of the $188.4
million to pay off our term credit facility, which had a
balance of approximately $49.3
million as of June 30, 2024.
The remaining amount of approximately $139.1
million will be cash on our balance sheet to be used to
invest back into our business and for general corporate purposes,"
concluded Straehla.
Well Completion Services
Mammoth's well completion
services division contributed revenue (inclusive of inter-segment
revenue) of $10.0 million on 292
stages for the second quarter of 2024 compared to $8.3 million on 380 stages for the first quarter
of 2024. On average, 0.3 of the Company's fleets were active for
the second quarter of 2024 compared to an average utilization of
0.6 fleets during the first quarter of 2024.
Infrastructure Services
Mammoth's infrastructure
services division contributed revenue of $31.4 million for the second quarter of 2024
compared to $25.0 million for the
first quarter of 2024. Average crew count increased to 79 crews
during the second quarter of 2024 compared to 75 crews during the
first quarter of 2024.
Natural Sand Proppant Services
Mammoth's natural sand
proppant services division contributed revenue (inclusive of
inter-segment revenue) of $4.7
million for the second quarter of 2024 compared to
$4.3 million for the first quarter of
2024. In the second quarter of 2024, the Company sold approximately
141,000 tons of sand at an average sales price of $22.73 per ton compared to sales of approximately
146,000 tons of sand at an average price of $24.38 per ton during the first quarter of 2024.
Additionally, during the second quarter of 2024, the Company
recognized shortfall revenue totaling $1.1
million.
Drilling Services
Mammoth's drilling services division
contributed revenue (inclusive of inter-segment revenue) of
$0.7 million for the second quarter
of 2024 compared to $0.5 million for
the first quarter of 2024. The increase in drilling services
revenue is primarily attributable to an increase in utilization for
our directional drilling business.
Other Services
Mammoth's other services, including
aviation, equipment rentals, remote accommodations and equipment
manufacturing, contributed revenue (inclusive of inter-segment
revenue) of $7.1 million for the
second quarter of 2024 compared to $6.2
million for the first quarter of 2024.
Selling, General and Administrative Expenses
Selling,
general and administrative ("SG&A") expenses were $97.5 million for the second quarter of 2024
compared to $8.8 million for the
first quarter of 2024. Included in the amount for the second
quarter of 2024 are credit loss charges totaling $89.2 million related to Cobra's Settlement
Agreement with PREPA.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Cash
expenses:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
3,116
|
|
$
3,996
|
|
$
4,104
|
|
$
7,220
|
|
$
8,273
|
|
Professional
services
|
3,056
|
|
4,276
|
|
2,457
|
|
5,513
|
|
6,205
|
|
Other(a)
|
1,702
|
|
1,868
|
|
1,773
|
|
3,475
|
|
3,779
|
|
Total cash SG&A
expense
|
7,874
|
|
10,140
|
|
8,334
|
|
16,208
|
|
18,257
|
|
Non-cash
expenses:
|
|
|
|
|
|
|
|
|
|
|
Change in provision
for expected credit losses(b)
|
89,383
|
|
(44)
|
|
229
|
|
89,612
|
|
(425)
|
|
Stock based
compensation
|
219
|
|
261
|
|
219
|
|
438
|
|
908
|
|
Total non-cash
SG&A expense
|
89,602
|
|
217
|
|
448
|
|
90,050
|
|
483
|
|
Total SG&A
expense
|
$
97,476
|
|
$
10,357
|
|
$
8,782
|
|
$
106,258
|
|
$
18,740
|
|
a.
|
Includes travel-related
costs, information technology expenses, rent, utilities and other
general and administrative-related costs.
|
|
b.
|
Included in the three
and six months ended June 30, 2024 amounts is a charge of $89.2
million related to Cobra's Settlement Agreement with
PREPA.
|
SG&A expenses, as a percentage of total revenue, were 189%
for the second quarter of 2024 compared to 20% for the first
quarter of 2024.
Interest Expense and Financing Charges, net
Interest
expense and financing charges, net were $2.5
million for the second quarter of 2024 compared to
$8.1 million for the first quarter of
2024. The Company recognized a financing charge totaling
$5.5 million during the first quarter
of 2024 related to the termination of the Assignment Agreement with
SPCP Group LLC.
Liquidity
As of June 30, 2024, Mammoth had cash
on hand of $10.3 million. As of
June 30, 2024, the Company's revolving credit facility was
undrawn, the borrowing base was $21.0
million and there was $14.3
million of available borrowing capacity under the revolving
credit facility, after giving effect to $6.7
million of outstanding letters of credit. As of
June 30, 2024, Mammoth had total liquidity of $24.6 million.
As of August 7, 2024, Mammoth had
cash on hand of $9.1 million, no
outstanding borrowings under its revolving credit facility, and a
borrowing base of $25.7 million. As
of August 7, 2024, the Company had
$19.0 million of available borrowing
capacity under its revolving credit facility and total liquidity of
$28.1 million.
Capital Expenditures
The following table summarizes
Mammoth's capital expenditures by operating division for the
periods indicated (in thousands):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Well completion
services(a)
|
$
2,081
|
|
$
4,348
|
|
$
2,663
|
|
$
4,738
|
|
$
10,120
|
|
Infrastructure
services(b)
|
275
|
|
72
|
|
683
|
|
963
|
|
275
|
|
Drilling
services(c)
|
85
|
|
—
|
|
—
|
|
87
|
|
—
|
|
Other(d)
|
196
|
|
—
|
|
146
|
|
342
|
|
—
|
|
Eliminations(a)
|
2,282
|
|
83
|
|
659
|
|
2,940
|
|
144
|
|
Total capital
expenditures
|
$
4,919
|
|
$
4,503
|
|
$
4,151
|
|
$
9,070
|
|
$
10,539
|
|
a.
|
Capital expenditures
primarily for upgrades and maintenance to our pressure pumping
fleet for the periods presented.
|
|
b.
|
Capital expenditures
primarily for truck, tooling and equipment purchases for the
periods presented.
|
|
c.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
|
d.
|
Capital expenditures
primarily for equipment for the Company's rental businesses for the
periods presented.
|
Conference Call Information
Mammoth will host a
conference call on Friday, August 9,
2024 at 9:00 a.m. Central time
(10:00 a.m. Eastern time) to discuss
its second quarter financial and operational results. The telephone
number to access the conference call is 1-201-389-0872. The
conference call will also be webcast live on
https://ir.mammothenergy.com/events-presentations. Please submit
any questions for management prior to the call via email to
TUSK@dennardlascar.com.
About Mammoth Energy Services, Inc.
Mammoth is an
integrated, growth-oriented energy services company focused on the
providing products and services to enable the exploration and
development of North American onshore unconventional oil and
natural gas reserves as well as the construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its infrastructure
services businesses. Mammoth's suite of services and products
include: well completion services, infrastructure services, natural
sand and proppant services, drilling services and other energy
services. For more information, please visit
www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary
Statements
This news release (and any oral statements
made regarding the subjects of this release, including on the
conference call announced herein) contains certain statements and
information that may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical facts
that address activities, events or developments that Mammoth
expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words "anticipate," "believe,"
"ensure," "expect," "if," "intend," "plan," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely" and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, acquisitions, returns, capital expenditure
budgets, plans for stock repurchases under its stock repurchase
program, costs and other guidance regarding future developments.
Forward-looking statements are not assurances of future
performance. These forward-looking statements are based on
management's current expectations and beliefs, forecasts for the
Company's existing operations, experience and perception of
historical trends, current conditions, anticipated future
developments and their effect on Mammoth, and other factors
believed to be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from historical
experience and present expectations or projections which are
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to: demand for our services; the volatility of oil and
natural gas prices and actions by OPEC members and other exporting
nations affecting commodities prices and production levels; the
impact of the war in Ukraine and
the Israel-Hamas war on the global energy and capital markets and
global stability; performance of contracts and supply chain
disruptions; inflationary pressures; higher interest rates and
their impact on the cost of capital; instability in the banking and
financial services sectors; the outcome of ongoing government
investigations and other legal proceedings; the failure to receive
or delays in receiving the Title III Court approval relating to the
settlement agreement between Cobra ,PREPA and the Financial
Oversight and Management Board for Puerto
Rico, in its capacity as Title III representative for PREPA,
to settle all outstanding litigation and other dispute matters
between Cobra and PREPA, and/or any payments under the settlement
agreement discussed in this news release; the Company's inability
to replace the prior levels of work in its business segments,
including its infrastructure and well completion services segments;
risks relating to economic conditions, including concerns over a
potential economic slowdown or recession; impacts of the recent
federal infrastructure bill on the infrastructure industry and our
infrastructure services business; the loss of or interruption in
operations of one or more of Mammoth's significant suppliers or
customers; the loss of management and/or crews; the outcome or
settlement of our litigation matters and the effect on our
financial condition and results of operations; the effects of
government regulation, permitting and other legal requirements;
operating risks; the adequacy of capital resources and liquidity;
Mammoth's ability to comply with the applicable financial covenants
and other terms and conditions under Mammoth's revolving credit
facility and term loan; weather; natural disasters; litigation;
volatility in commodity markets; competition in the oil and natural
gas and infrastructure industries; and costs and availability of
resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
|
|
|
ASSETS
|
|
June
30,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
CURRENT
ASSETS
|
|
(in
thousands)
|
|
Cash and cash
equivalents
|
|
$
10,266
|
|
$
16,556
|
|
Restricted
cash
|
|
—
|
|
7,742
|
|
Accounts receivable,
net
|
|
235,795
|
|
447,202
|
|
Inventories
|
|
12,387
|
|
12,653
|
|
Prepaid
expenses
|
|
6,450
|
|
12,181
|
|
Other current
assets
|
|
589
|
|
591
|
|
Total current
assets
|
|
265,487
|
|
496,925
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
109,517
|
|
113,905
|
|
Sand
reserves
|
|
58,215
|
|
58,528
|
|
Operating lease
right-of-use assets
|
|
6,403
|
|
9,551
|
|
Goodwill
|
|
9,214
|
|
9,214
|
|
Deferred income tax
asset
|
|
—
|
|
1,844
|
|
Other non-current
assets
|
|
6,671
|
|
8,512
|
|
Total
assets
|
|
$
455,507
|
|
$
698,479
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts
payable
|
|
$
24,136
|
|
$
27,508
|
|
Accrued expenses and
other current liabilities
|
|
31,151
|
|
86,713
|
|
Accrued expenses and
other current liabilities - related parties
|
|
—
|
|
1,241
|
|
Current operating
lease liability
|
|
4,352
|
|
5,771
|
|
Income taxes
payable
|
|
43,625
|
|
61,320
|
|
Total current
liabilities
|
|
103,264
|
|
182,553
|
|
|
|
|
|
|
Long-term debt from
related parties
|
|
47,275
|
|
42,809
|
|
Deferred income tax
liabilities
|
|
2,505
|
|
628
|
|
Long-term operating
lease liability
|
|
1,983
|
|
3,534
|
|
Asset retirement
obligation
|
|
4,194
|
|
4,140
|
|
Other long-term
liabilities
|
|
3,910
|
|
4,715
|
|
Total
liabilities
|
|
163,131
|
|
238,379
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 48,127,369 and 47,941,652
issued and outstanding at June 30, 2024 and December 31,
2023
|
|
481
|
|
479
|
|
Additional paid in
capital
|
|
539,994
|
|
539,558
|
|
Accumulated
deficit
|
|
(244,121)
|
|
(76,317)
|
|
Accumulated other
comprehensive loss
|
|
(3,978)
|
|
(3,620)
|
|
Total
equity
|
|
292,376
|
|
460,100
|
|
Total liabilities and
equity
|
|
$
455,507
|
|
$
698,479
|
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
(in thousands,
except per share amounts)
|
|
REVENUE
|
|
|
Services
revenue
|
$
46,770
|
|
$
63,478
|
|
$
38,814
|
|
$
85,584
|
|
$
167,115
|
|
Services revenue -
related parties
|
66
|
|
369
|
|
68
|
|
133
|
|
589
|
|
Product
revenue
|
4,693
|
|
11,584
|
|
4,307
|
|
8,999
|
|
24,047
|
|
Total
revenue
|
51,529
|
|
75,431
|
|
43,189
|
|
94,716
|
|
191,751
|
|
|
|
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $4,780, $10,270, $5,874, $10,654, $22,032,
respectively, for the three months ended June 30, 2024, June 30,
2023, and March 31, 2024 and six months ended June 30, 2024 and
2023)
|
38,962
|
|
52,846
|
|
34,483
|
|
73,445
|
|
133,823
|
|
Services cost of
revenue - related parties
|
118
|
|
210
|
|
118
|
|
236
|
|
240
|
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $1,271, $2,373, $1,146, $2,417, $3,559, respectively,
for the three months ended June 30, 2024, June 30, 2023, and March
31, 2024 and six months ended June 30, 2024 and 2023)
|
4,761
|
|
7,196
|
|
5,983
|
|
10,744
|
|
15,181
|
|
Selling, general and
administrative
|
97,476
|
|
10,357
|
|
8,782
|
|
106,258
|
|
18,740
|
|
Depreciation,
depletion, amortization and accretion
|
6,051
|
|
12,650
|
|
7,021
|
|
13,073
|
|
25,606
|
|
Gains on disposal of
assets, net
|
(1,036)
|
|
(473)
|
|
(1,166)
|
|
(2,203)
|
|
(834)
|
|
Total cost and
expenses
|
146,332
|
|
82,786
|
|
55,221
|
|
201,553
|
|
192,756
|
|
Operating
loss
|
(94,803)
|
|
(7,355)
|
|
(12,032)
|
|
(106,837)
|
|
(1,005)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
financing charges, net
|
(1,005)
|
|
(3,220)
|
|
(6,637)
|
|
(7,642)
|
|
(6,509)
|
|
Interest expense and
financing charges, net - related parties
|
(1,529)
|
|
—
|
|
(1,500)
|
|
(3,028)
|
|
—
|
|
Other (expense)
income, net
|
(73,678)
|
|
8,339
|
|
10,143
|
|
(63,536)
|
|
16,963
|
|
Total other (expense)
income
|
(76,212)
|
|
5,119
|
|
2,006
|
|
(74,206)
|
|
10,454
|
|
(Loss) income before
income taxes
|
(171,015)
|
|
(2,236)
|
|
(10,026)
|
|
(181,043)
|
|
9,449
|
|
(Benefit) provision for
income taxes
|
(15,022)
|
|
2,234
|
|
1,785
|
|
(13,239)
|
|
5,568
|
|
Net (loss)
income
|
$ (155,993)
|
|
$
(4,470)
|
|
$
(11,811)
|
|
$ (167,804)
|
|
$
3,881
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(114)
|
|
227
|
|
(244)
|
|
(358)
|
|
230
|
|
Comprehensive (loss)
income
|
$ (156,107)
|
|
$
(4,243)
|
|
$
(12,055)
|
|
$ (168,162)
|
|
$
4,111
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
$
(3.25)
|
|
$
(0.09)
|
|
$
(0.25)
|
|
$
(3.50)
|
|
$
0.08
|
|
Net (loss) income per
share (diluted)
|
$
(3.25)
|
|
$
(0.09)
|
|
$
(0.25)
|
|
$
(3.50)
|
|
$
0.08
|
|
Weighted average number
of shares outstanding (basic)
|
48,040
|
|
47,718
|
|
47,964
|
|
48,002
|
|
47,581
|
|
Weighted average number
of shares outstanding (diluted)
|
48,040
|
|
47,718
|
|
47,964
|
|
48,002
|
|
47,966
|
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Six Months
Ended
|
|
June
30,
|
|
2024
|
|
2023
|
|
(in
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net (loss)
income
|
$
(167,804)
|
|
$
3,881
|
|
Adjustments to
reconcile net (loss) income to cash provided by operating
activities:
|
|
|
|
|
Stock based
compensation
|
438
|
|
908
|
|
Depreciation,
depletion, accretion and amortization
|
13,073
|
|
25,606
|
|
Amortization of debt
origination costs
|
714
|
|
377
|
|
Change in provision
for expected credit losses
|
171,076
|
|
(425)
|
|
Gains on disposal of
assets
|
(2,203)
|
|
(834)
|
|
Gains from sales of
equipment damaged or lost down-hole
|
—
|
|
(46)
|
|
Deferred income
taxes
|
3,722
|
|
(46)
|
|
Other
|
1,099
|
|
387
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts receivable,
net
|
39,073
|
|
7,880
|
|
Inventories
|
265
|
|
(1,306)
|
|
Prepaid expenses and
other assets
|
5,703
|
|
5,162
|
|
Accounts
payable
|
(2,276)
|
|
466
|
|
Accrued expenses and
other liabilities
|
(7,688)
|
|
(13,924)
|
|
Accrued expenses and
other liabilities - related parties
|
3,028
|
|
—
|
|
Income taxes
payable
|
(17,692)
|
|
4,523
|
|
Net cash provided by
operating activities
|
40,528
|
|
32,609
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
(9,070)
|
|
(10,539)
|
|
Proceeds from disposal
of property and equipment
|
4,548
|
|
806
|
|
Net cash used in
investing activities
|
(4,522)
|
|
(9,733)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Borrowings on
long-term debt
|
—
|
|
118,900
|
|
Repayments of
long-term debt
|
—
|
|
(143,064)
|
|
Payments on financing
transaction
|
(46,837)
|
|
—
|
|
Payments on
sale-leaseback transaction
|
(2,148)
|
|
(2,449)
|
|
Principal payments on
financing leases and equipment financing notes
|
(966)
|
|
(3,791)
|
|
Debt issuance
costs
|
(37)
|
|
—
|
|
Other
|
—
|
|
(919)
|
|
Net cash used in
financing activities
|
(49,988)
|
|
(31,323)
|
|
Effect of foreign
exchange rate on cash
|
(50)
|
|
15
|
|
Net change in cash,
cash equivalents and restricted cash
|
(14,032)
|
|
(8,432)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
24,298
|
|
17,282
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
10,266
|
|
$
8,850
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Cash paid for
interest
|
$
1,440
|
|
$
6,321
|
|
Cash paid for income
taxes, net of refunds received
|
$
722
|
|
$
752
|
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
|
Interest paid in kind
- related parties
|
$
4,269
|
|
$
—
|
|
Purchases of property
and equipment included in accounts payable
|
$
2,258
|
|
$
6,732
|
|
Right-of-use assets
obtained for financing lease liabilities
|
$
1,369
|
|
$
306
|
|
MAMMOTH ENERGY
SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
|
|
|
Three Months Ended June
30, 2024
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
9,935
|
$
31,433
|
$
4,693
|
$
736
|
$
4,732
|
$
—
|
$
51,529
|
|
Intersegment
revenues
|
109
|
—
|
27
|
—
|
2,359
|
(2,495)
|
—
|
|
Total
revenue
|
10,044
|
31,433
|
4,720
|
736
|
7,091
|
(2,495)
|
51,529
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
10,096
|
24,630
|
4,589
|
1,155
|
3,371
|
—
|
43,841
|
|
Intersegment cost of
revenues
|
234
|
1
|
—
|
1
|
2,257
|
(2,493)
|
—
|
|
Total cost of
revenue
|
10,330
|
24,631
|
4,589
|
1,156
|
5,628
|
(2,493)
|
43,841
|
|
Selling, general and
administrative
|
1,196
|
94,450
|
943
|
176
|
711
|
—
|
97,476
|
|
Depreciation,
depletion, amortization and accretion
|
2,691
|
627
|
1,271
|
613
|
849
|
—
|
6,051
|
|
Gains on disposal of
assets, net
|
(105)
|
(460)
|
(110)
|
(1)
|
(360)
|
—
|
(1,036)
|
|
Operating (loss)
income
|
(4,068)
|
(87,815)
|
(1,973)
|
(1,208)
|
263
|
(2)
|
(94,803)
|
|
Interest expense and
financing charges, net
|
522
|
1,577
|
131
|
121
|
183
|
—
|
2,534
|
|
Other expense (income),
net
|
—
|
72,687
|
(1)
|
—
|
992
|
—
|
73,678
|
|
Loss before income
taxes
|
$
(4,590)
|
$
(162,079)
|
$
(2,103)
|
$
(1,329)
|
$
(912)
|
$
(2)
|
$
(171,015)
|
|
Three Months Ended June
30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
27,466
|
$
28,315
|
$
11,567
|
$
2,810
|
$
5,273
|
$
—
|
$
75,431
|
|
Intersegment
revenues
|
118
|
—
|
—
|
—
|
383
|
(501)
|
—
|
|
Total
revenue
|
27,584
|
28,315
|
11,567
|
2,810
|
5,656
|
(501)
|
75,431
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
23,594
|
23,292
|
7,067
|
2,375
|
3,924
|
—
|
60,252
|
|
Intersegment cost of
revenues
|
227
|
9
|
—
|
12
|
253
|
(501)
|
—
|
|
Total cost of
revenue
|
23,821
|
23,301
|
7,067
|
2,387
|
4,177
|
(501)
|
60,252
|
|
Selling, general and
administrative
|
1,776
|
6,385
|
954
|
193
|
1,049
|
—
|
10,357
|
|
Depreciation,
depletion, amortization and accretion
|
4,500
|
2,436
|
2,374
|
1,154
|
2,186
|
—
|
12,650
|
|
Gains on disposal of
assets, net
|
—
|
—
|
—
|
—
|
(473)
|
—
|
(473)
|
|
Operating (loss)
income
|
(2,513)
|
(3,807)
|
1,172
|
(924)
|
(1,283)
|
—
|
(7,355)
|
|
Interest expense and
financing charges, net
|
824
|
1,869
|
149
|
133
|
245
|
—
|
3,220
|
|
Other expense (income),
net
|
1
|
(8,557)
|
(4)
|
—
|
221
|
—
|
(8,339)
|
|
(Loss) income before
income taxes
|
$
(3,338)
|
$
2,881
|
$
1,027
|
$
(1,057)
|
$
(1,749)
|
$
—
|
$
(2,236)
|
|
Three Months Ended
March 31, 2024
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
8,159
|
$
25,038
|
$
4,307
|
$
511
|
$
5,174
|
$
—
|
$
43,189
|
|
Intersegment
revenues
|
114
|
—
|
—
|
—
|
1,005
|
(1,119)
|
—
|
|
Total
revenue
|
8,273
|
25,038
|
4,307
|
511
|
6,179
|
(1,119)
|
43,189
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
8,338
|
21,533
|
5,840
|
1,050
|
3,823
|
—
|
40,584
|
|
Intersegment cost of
revenues
|
218
|
25
|
—
|
2
|
874
|
(1,119)
|
—
|
|
Total cost of
revenue
|
8,556
|
21,558
|
5,840
|
1,052
|
4,697
|
(1,119)
|
40,584
|
|
Selling, general and
administrative
|
1,073
|
5,617
|
1,031
|
212
|
849
|
—
|
8,782
|
|
Depreciation,
depletion, amortization and accretion
|
3,264
|
718
|
1,146
|
874
|
1,019
|
—
|
7,021
|
|
Losses (gains) on
disposal of assets, net
|
250
|
(483)
|
—
|
2
|
(935)
|
—
|
(1,166)
|
|
Operating (loss)
income
|
(4,870)
|
(2,372)
|
(3,710)
|
(1,629)
|
549
|
—
|
(12,032)
|
|
Interest expense and
financing charges, net
|
569
|
7,099
|
142
|
128
|
199
|
—
|
8,137
|
|
Other (income) expense,
net
|
—
|
(10,258)
|
(1)
|
—
|
116
|
—
|
(10,143)
|
|
(Loss) income before
income taxes
|
$
(5,439)
|
$
787
|
$
(3,851)
|
$
(1,757)
|
$
234
|
$
—
|
$
(10,026)
|
|
Six Months ended June
30, 2024
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
18,093
|
$
56,471
|
$
8,999
|
$
1,247
|
$
9,906
|
$
—
|
$
94,716
|
|
Intersegment
revenues
|
222
|
—
|
28
|
—
|
3,364
|
(3,614)
|
$
—
|
|
Total
revenue
|
18,315
|
56,471
|
9,027
|
1,247
|
13,270
|
(3,614)
|
94,716
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
18,434
|
46,164
|
10,430
|
2,203
|
7,194
|
—
|
84,425
|
|
Intersegment cost of
revenues
|
452
|
26
|
—
|
3
|
3,131
|
(3,612)
|
$
—
|
|
Total cost of
revenue
|
18,886
|
46,190
|
10,430
|
2,206
|
10,325
|
(3,612)
|
84,425
|
|
Selling, general and
administrative
|
2,269
|
100,068
|
1,974
|
388
|
1,559
|
—
|
106,258
|
|
Depreciation,
depletion, amortization and accretion
|
5,955
|
1,346
|
2,417
|
1,488
|
1,867
|
—
|
13,073
|
|
Losses (gains) on
disposal of assets, net
|
145
|
(943)
|
(110)
|
1
|
(1,296)
|
—
|
(2,203)
|
|
Operating (loss)
income
|
(8,940)
|
(90,190)
|
(5,684)
|
(2,836)
|
815
|
(2)
|
(106,837)
|
|
Interest expense and
financing charges, net
|
1,091
|
8,675
|
273
|
250
|
381
|
—
|
10,670
|
|
Other expense (income),
net
|
1
|
62,429
|
(1)
|
—
|
1,107
|
—
|
63,536
|
|
Loss before income
taxes
|
$
(10,032)
|
$ (161,294)
|
$
(5,956)
|
$
(3,086)
|
$
(673)
|
$
(2)
|
$ (181,043)
|
|
Six Months ended June
30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
94,644
|
$
56,596
|
$
24,009
|
$
4,165
|
$
12,337
|
$
—
|
$
191,751
|
|
Intersegment
revenues
|
240
|
—
|
25
|
—
|
833
|
(1,098)
|
—
|
|
Total
revenue
|
94,884
|
56,596
|
24,034
|
4,165
|
13,170
|
(1,098)
|
191,751
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
75,630
|
45,768
|
14,927
|
3,841
|
9,078
|
—
|
149,244
|
|
Intersegment cost of
revenues
|
704
|
20
|
—
|
26
|
348
|
(1,098)
|
—
|
|
Total cost of
revenue
|
76,334
|
45,788
|
14,927
|
3,867
|
9,426
|
(1,098)
|
149,244
|
|
Selling, general and
administrative
|
4,268
|
10,595
|
1,458
|
339
|
2,080
|
—
|
18,740
|
|
Depreciation,
depletion, amortization and accretion
|
9,317
|
5,810
|
3,561
|
2,383
|
4,535
|
—
|
25,606
|
|
Gains on disposal of
assets, net
|
—
|
(127)
|
(16)
|
—
|
(691)
|
—
|
(834)
|
|
Operating income
(loss)
|
4,965
|
(5,470)
|
4,104
|
(2,424)
|
(2,180)
|
—
|
(1,005)
|
|
Interest expense and
financing charges, net
|
1,753
|
3,714
|
305
|
259
|
478
|
—
|
6,509
|
|
Other expense (income),
net
|
1
|
(17,365)
|
(6)
|
—
|
407
|
—
|
(16,963)
|
|
Income (loss) before
income taxes
|
$
3,211
|
$
8,181
|
$
3,805
|
$
(2,683)
|
$
(3,065)
|
$
—
|
$
9,449
|
MAMMOTH ENERGY SERVICES,
INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure
that is used by management and external users of the Company's
financial statements, such as industry analysts, investors, lenders
and rating agencies. Mammoth defines Adjusted EBITDA as net (loss)
income before depreciation, depletion, amortization and accretion
expense, gains on disposal of assets, net, stock based
compensation, interest expense and financing charges, net, other
(income) expense, net (which is comprised of interest on trade
accounts receivable and certain legal expenses) and provision
(benefit) for income taxes, further adjusted to add back interest
on trade accounts receivable. The Company excludes the items listed
above from net (loss) income in arriving at Adjusted EBITDA because
these amounts can vary substantially from company to company within
the energy service industry depending upon accounting methods and
book values of assets, capital structures and the method by which
the assets were acquired. Adjusted EBITDA should not be considered
as an alternative to, or more meaningful than, net (loss) income or
cash flows from operating activities as determined in accordance
with GAAP or as an indicator of Mammoth's operating performance or
liquidity. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company's
financial performance, such as a company's cost of capital and tax
structure, as well as the historic costs of depreciable assets.
Mammoth's computations of Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies. The Company
believes that Adjusted EBITDA is a widely followed measure of
operating performance and may also be used by investors to measure
its ability to meet debt service requirements.
The following tables provide a reconciliation of Adjusted EBITDA
to the GAAP financial measure of net (loss) income on a
consolidated basis and for each of the Company's segments (in
thousands):
Consolidated
|
Three Months
Ended
|
|
Years
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$
(155,993)
|
|
$
(4,470)
|
|
$ (11,811)
|
|
$
(167,804)
|
|
$
3,881
|
|
Depreciation,
depletion, amortization and accretion expense
|
6,051
|
|
12,650
|
|
7,021
|
|
13,073
|
|
25,606
|
|
Gains on disposal of
assets, net
|
(1,036)
|
|
(473)
|
|
(1,166)
|
|
(2,203)
|
|
(834)
|
|
Stock based
compensation
|
219
|
|
261
|
|
219
|
|
438
|
|
908
|
|
Interest expense and
financing charges, net
|
2,534
|
|
3,220
|
|
8,137
|
|
10,670
|
|
6,509
|
|
Other expense (income),
net
|
73,678
|
|
(8,339)
|
|
(10,143)
|
|
63,536
|
|
(16,963)
|
|
(Benefit) provision for
income taxes
|
(15,022)
|
|
2,234
|
|
1,785
|
|
(13,239)
|
|
5,568
|
|
Interest on trade
accounts receivable
|
(71,171)
|
|
11,341
|
|
10,485
|
|
(60,686)
|
|
22,454
|
|
Adjusted
EBITDA
|
$
(160,740)
|
|
$
16,424
|
|
$
4,527
|
|
$
(156,215)
|
|
$
47,129
|
Well Completion Services
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$ (4,590)
|
|
$
(3,338)
|
|
$
(5,439)
|
|
$ (10,032)
|
|
$
3,211
|
|
Depreciation and
amortization expense
|
2,691
|
|
4,500
|
|
3,264
|
|
5,955
|
|
9,317
|
|
(Gains) losses on
disposal of assets, net
|
(105)
|
|
—
|
|
250
|
|
145
|
|
—
|
|
Stock based
compensation
|
46
|
|
97
|
|
44
|
|
90
|
|
387
|
|
Interest expense and
financing charges, net
|
522
|
|
824
|
|
569
|
|
1,091
|
|
1,753
|
|
Other expense,
net
|
—
|
|
1
|
|
—
|
|
1
|
|
1
|
|
Adjusted
EBITDA
|
$ (1,436)
|
|
$
2,084
|
|
$
(1,312)
|
|
$
(2,750)
|
|
$
14,669
|
Infrastructure Services
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$
(144,861)
|
|
$
697
|
|
$
(405)
|
|
$
(145,267)
|
|
$
3,151
|
|
Depreciation and
amortization expense
|
627
|
|
2,436
|
|
718
|
|
1,346
|
|
5,810
|
|
Gains on disposal of
assets, net
|
(460)
|
|
—
|
|
(483)
|
|
(943)
|
|
(127)
|
|
Stock based
compensation
|
123
|
|
107
|
|
117
|
|
240
|
|
337
|
|
Interest expense and
financing charges, net
|
1,577
|
|
1,869
|
|
7,099
|
|
8,675
|
|
3,714
|
|
Other expense (income),
net
|
72,687
|
|
(8,557)
|
|
(10,258)
|
|
62,429
|
|
(17,365)
|
|
(Benefit) provision for
income taxes
|
(17,218)
|
|
2,184
|
|
1,192
|
|
(16,027)
|
|
5,030
|
|
Interest on trade
accounts receivable
|
(71,171)
|
|
11,341
|
|
10,485
|
|
(60,686)
|
|
22,454
|
|
Adjusted
EBITDA
|
$
(158,696)
|
|
$
10,077
|
|
$
8,465
|
|
$
(150,233)
|
|
$
23,004
|
Natural Sand Proppant Services
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$
(2,103)
|
|
$
1,027
|
|
$
(3,851)
|
|
$
(5,956)
|
|
$
3,805
|
|
Depreciation,
depletion, amortization and accretion expense
|
1,271
|
|
2,374
|
|
1,146
|
|
2,417
|
|
3,561
|
|
Gains on disposal of
assets, net
|
(110)
|
|
—
|
|
—
|
|
(110)
|
|
(16)
|
|
Stock based
compensation
|
32
|
|
36
|
|
38
|
|
69
|
|
113
|
|
Interest expense and
financing charges, net
|
131
|
|
149
|
|
142
|
|
273
|
|
305
|
|
Other income,
net
|
(1)
|
|
(4)
|
|
(1)
|
|
(1)
|
|
(6)
|
|
Adjusted
EBITDA
|
$
(780)
|
|
$
3,582
|
|
$
(2,526)
|
|
$
(3,308)
|
|
$
7,762
|
Drilling Services
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Net loss
|
$
(1,329)
|
|
$
(1,057)
|
|
$
(1,757)
|
|
$
(3,086)
|
|
$
(2,683)
|
|
Depreciation
expense
|
613
|
|
1,154
|
|
874
|
|
1,488
|
|
2,383
|
|
(Gains) losses on
disposal of assets, net
|
(1)
|
|
—
|
|
2
|
|
1
|
|
—
|
|
Stock based
compensation
|
5
|
|
5
|
|
5
|
|
10
|
|
13
|
|
Interest expense and
financing charges, net
|
121
|
|
133
|
|
128
|
|
250
|
|
259
|
|
Adjusted
EBITDA
|
$
(591)
|
|
$
235
|
|
$
(748)
|
|
$
(1,337)
|
|
$
(28)
|
Other Services(a)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2024
|
|
2023
|
|
Net loss
|
$
(3,108)
|
|
$
(1,799)
|
|
$
(359)
|
|
$
(3,461)
|
|
$
(3,603)
|
|
Depreciation,
amortization and accretion expense
|
849
|
|
2,186
|
|
1,019
|
|
1,867
|
|
4,535
|
|
Gains on disposal of
assets, net
|
(360)
|
|
(473)
|
|
(935)
|
|
(1,296)
|
|
(691)
|
|
Stock based
compensation
|
13
|
|
16
|
|
15
|
|
29
|
|
58
|
|
Interest expense and
financing charges, net
|
183
|
|
245
|
|
199
|
|
381
|
|
478
|
|
Other expense,
net
|
992
|
|
221
|
|
116
|
|
1,107
|
|
407
|
|
Provision for income
taxes
|
2,196
|
|
50
|
|
593
|
|
2,788
|
|
538
|
|
Adjusted
EBITDA
|
$
765
|
|
$
446
|
|
$
648
|
|
$
1,415
|
|
$
1,722
|
|
a.
|
Includes results for
Mammoth's aviation, equipment rentals, remote accommodations and
equipment manufacturing and corporate related activities. The
Company's corporate related activities do not generate
revenue.
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-second-quarter-2024-operational-and-financial-results-302218579.html
SOURCE Mammoth Energy Services, Inc.
