OKLAHOMA
CITY, Nov. 1, 2024 /PRNewswire/ -- Mammoth
Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company")
today reported financial and operational results for the third
quarter ended September 30, 2024.
Arty Straehla, Chief Executive Officer of Mammoth commented,
"Softness across our Well Completion Services markets appeared to
have bottomed in the third quarter, and we expect a rebound in the
fourth quarter. More importantly, we were pleased to have recently
received a total of $168.4 million of
the $188.4 million owed to our
subsidiary through the Settlement Agreement with the Puerto Rico
Electric Power Authority, or PREPA. We are now debt free and have
plans to invest in both our Infrastructure Services and Well
Completion Services divisions over the next year. In Infrastructure
Services, we will be investing in additional crews and our
engineering services capabilities to better serve our customers. In
our Well Completion Services division, we will be upgrading
pressure pumping equipment to more efficient dual fuel Tier 4
technology. We believe this investment positions us to capitalize
on rising demand as markets are anticipated to improve later next
year. Now that we are debt free and have significant capital to
invest into our businesses, we believe we have an excellent
platform to increase shareholder value."
Financial Overview for the Third Quarter 2024:
Total
revenue was $40.0 million for the
third quarter compared to $65.0
million for the same quarter last year.
Net loss for the third quarter was $24.0
million, or $0.50 loss per
diluted share, compared to net loss of $1.1
million, or $0.02 loss per
diluted share, for the same quarter last year.
Adjusted EBITDA (as defined and reconciled below) was
($6.4) million for the third quarter
of 2024, compared to $13.4 million
for the same quarter last year.
Well Completion Services
Mammoth's well completion
services division contributed revenue (inclusive of inter-segment
revenue) of $2.2 million for the
third quarter, compared to $20.3
million for the same quarter of 2023. The Company had no
pressure pumping fleets active during the third quarter of 2024
compared to an average utilization of 1.2 pressure pumping fleets
during the same quarter of 2023. The third quarter 2024 revenue in
the well completion services division was primarily attributable to
one active pump-down crew.
Infrastructure Services
Mammoth's infrastructure
services division contributed revenue of $26.0 million for the third quarter compared to
$26.7 million for the same quarter of
2023. Average crew count was 77 crews during the third quarter
compared to 81 crews during the same quarter of 2023.
Natural Sand Proppant Services
Mammoth's natural sand
proppant services division contributed revenue (inclusive of
inter-segment revenue) of $4.9
million for the third quarter compared to $10.6 million for the same quarter of 2023. In
the third quarter, the Company sold approximately 163,000 tons of
sand at an average sales price of $22.89 per ton compared to sales of approximately
352,000 tons of sand at an average sales price of $30.18 per ton during the same quarter of
2023.
Drilling Services
Mammoth's drilling services division
contributed revenue (inclusive of inter-segment revenue) of
$1.6 million for the third quarter
compared to $2.3 million for the same
quarter of 2023.
Other Services
Mammoth's other services, including
aviation, equipment rentals, remote accommodations and equipment
manufacturing, contributed revenue (inclusive of inter-segment
revenue) of $7.0 million for the
third quarter compared to $6.0
million for the same quarter of 2023.
Selling, General and Administrative
Expenses
Selling, general and administrative
("SG&A") expenses were $8.7
million for the third quarter compared to $10.4 million for the same quarter of
2023.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
3,173
|
|
$
3,392
|
|
$
10,394
|
|
$
11,665
|
|
Professional
services
|
3,503
|
|
4,684
|
|
9,016
|
|
10,889
|
|
Other(a)
|
1,775
|
|
2,105
|
|
5,249
|
|
5,884
|
|
Total cash SG&A
expense
|
8,451
|
|
10,181
|
|
24,659
|
|
28,438
|
|
Non-cash
expenses:
|
|
|
|
|
|
|
|
|
Change in provision
for expected credit losses(b)
|
32
|
|
11
|
|
89,645
|
|
(414)
|
|
Stock based
compensation
|
219
|
|
219
|
|
657
|
|
1,127
|
|
Total non-cash
SG&A expense
|
251
|
|
230
|
|
90,302
|
|
713
|
|
Total SG&A
expense
|
$
8,702
|
|
$
10,411
|
|
$
114,961
|
|
$
29,151
|
|
a.
|
Includes travel-related
costs, information technology expenses, rent, utilities and other
general and administrative-related costs.
|
|
b.
|
Included in the nine
months ended September 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 22%
for the third quarter compared to 16% for the same quarter of
2023.
Interest Expense and Financing Charges, net
Interest
expense and financing charges, net were $9.7
million for the third quarter compared to $2.9 million for the same quarter of 2023. The
Company recognized a charge to interest expense totaling
$7.1 million during the third quarter
of 2024 related to its sale leaseback agreements.
Liquidity
As of September 30, 2024, Mammoth
had unrestricted cash on hand of $4.2
million. As of September 30, 2024, the Company's
revolving credit facility was undrawn, the borrowing base was
$20.4 million and there was
$13.7 million of available borrowing
capacity under the revolving credit facility, after giving effect
to $6.7 million of outstanding
letters of credit. As of September 30, 2024, Mammoth had total
liquidity of $17.9
million.
As previously announced, Cobra has received the first two
installment payments of $150.0
million and $18.4 million,
respectively, in connection with the previously disclosed
Settlement Agreement with PREPA in October
2024. Subsequent to the receipt of the first installment
payment, the Company paid, in full, all amounts owed under the term
credit facility with Wexford Capital LP, including the accrued and
unpaid interest, in the aggregate amount of $50.9 million, and terminated the facility on
October 2, 2024. In connection with
the receipt of the second installment payment from PREPA, as
required under the terms of the Settlement Agreement, Cobra
instructed Fifth Third Bank, National Association ("Fifth Third
Bank") to issue a letter of credit to PREPA in the amount of
$18.4 million and transferred a total
of $19.3 million to a restricted cash
account maintained by Fifth Third Bank as collateral for the letter
of credit.
As of October 30, 2024, Mammoth had cash on hand of
$86.2 million, no outstanding
borrowings under its revolving credit facility, and a borrowing
base of $18.2 million. As of
October 30, 2024, the Company had $11.5
million of available borrowing capacity under its revolving
credit facility and total liquidity of $97.7
million.
Capital Expenditures
The following table summarizes
Mammoth's capital expenditures by operating division for the
periods indicated (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Well completion
services(a)
|
$
3,812
|
|
$
4,651
|
|
$
8,549
|
|
$
14,762
|
|
Infrastructure
services(b)
|
88
|
|
69
|
|
1,051
|
|
344
|
|
Drilling
services(c)
|
15
|
|
98
|
|
102
|
|
97
|
|
Other(d)
|
323
|
|
72
|
|
665
|
|
82
|
|
Eliminations(a)
|
(2,341)
|
|
(165)
|
|
600
|
|
(20)
|
|
Total capital
expenditures
|
$
1,897
|
|
$
4,725
|
|
$
10,967
|
|
$
15,265
|
|
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, November 1,
2024 at 9:00 a.m. Central time
(10:00 a.m. Eastern time) to discuss
its third 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 news 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 remaining payments under the settlement
agreement with PREPA; 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 its revolving credit facility;
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
|
|
September
30,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
CURRENT
ASSETS
|
|
(in
thousands)
|
|
Cash and cash
equivalents
|
|
$
4,165
|
|
$
16,556
|
|
Restricted
cash
|
|
2,000
|
|
7,742
|
|
Accounts receivable,
net
|
|
232,032
|
|
447,202
|
|
Inventories
|
|
13,498
|
|
12,653
|
|
Prepaid
expenses
|
|
2,912
|
|
12,181
|
|
Other current
assets
|
|
581
|
|
591
|
|
Total current
assets
|
|
255,188
|
|
496,925
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
109,394
|
|
113,905
|
|
Sand reserves,
net
|
|
57,497
|
|
58,528
|
|
Operating lease
right-of-use assets
|
|
5,010
|
|
9,551
|
|
Goodwill
|
|
9,214
|
|
9,214
|
|
Deferred income tax
asset
|
|
—
|
|
1,844
|
|
Other non-current
assets
|
|
6,675
|
|
8,512
|
|
Total
assets
|
|
$
442,978
|
|
$
698,479
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts
payable
|
|
$
30,065
|
|
$
27,508
|
|
Accrued expenses and
other current liabilities
|
|
35,433
|
|
86,713
|
|
Accrued expenses and
other current liabilities - related parties
|
|
—
|
|
1,241
|
|
Current operating
lease liability
|
|
3,428
|
|
5,771
|
|
Income taxes
payable
|
|
44,512
|
|
61,320
|
|
Total current
liabilities
|
|
113,438
|
|
182,553
|
|
|
|
|
|
|
Long-term debt from
related parties
|
|
49,009
|
|
42,809
|
|
Deferred income tax
liabilities
|
|
2,272
|
|
628
|
|
Long-term operating
lease liability
|
|
1,556
|
|
3,534
|
|
Asset retirement
obligation
|
|
4,244
|
|
4,140
|
|
Other long-term
liabilities
|
|
3,781
|
|
4,715
|
|
Total
liabilities
|
|
174,300
|
|
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 September 30, 2024 and December 31,
2023
|
|
481
|
|
479
|
|
Additional paid in
capital
|
|
540,213
|
|
539,558
|
|
Accumulated
deficit
|
|
(268,163)
|
|
(76,317)
|
|
Accumulated other
comprehensive loss
|
|
(3,853)
|
|
(3,620)
|
|
Total
equity
|
|
268,678
|
|
460,100
|
|
Total liabilities and
equity
|
|
$
442,978
|
|
$
698,479
|
|
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(in thousands,
except per share amounts)
|
|
REVENUE
|
|
|
Services
revenue
|
$
34,069
|
|
$
54,025
|
|
$
119,653
|
|
$
221,140
|
|
Services revenue -
related parties
|
1,037
|
|
252
|
|
1,171
|
|
841
|
|
Product
revenue
|
4,909
|
|
10,682
|
|
13,908
|
|
34,729
|
|
Total
revenue
|
40,015
|
|
64,959
|
|
134,732
|
|
256,710
|
|
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $4,495, $8,394, $15,149, $30,426, respectively, for
the three months
ended September 30, 2024 and 2023 and nine months ended September
30, 2024
and 2023)
|
34,468
|
|
45,082
|
|
107,914
|
|
178,905
|
|
Services cost of
revenue - related parties
|
118
|
|
120
|
|
355
|
|
360
|
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $1,688, $2,836, $4,105, $6,395, respectively, for the
three months
ended September 30, 2024 and 2023 and nine months ended September
30, 2024
and 2023)
|
3,386
|
|
7,615
|
|
14,130
|
|
22,796
|
|
Selling, general and
administrative
|
8,702
|
|
10,411
|
|
114,961
|
|
29,151
|
|
Depreciation,
depletion, amortization and accretion
|
6,184
|
|
11,233
|
|
19,256
|
|
36,839
|
|
Gains on disposal of
assets, net
|
(293)
|
|
(2,450)
|
|
(2,496)
|
|
(3,284)
|
|
Impairment of
goodwill
|
—
|
|
1,810
|
|
—
|
|
1,810
|
|
Total cost and
expenses
|
52,565
|
|
73,821
|
|
254,120
|
|
266,577
|
|
Operating
loss
|
(12,550)
|
|
(8,862)
|
|
(119,388)
|
|
(9,867)
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest expense and
financing charges, net
|
(8,088)
|
|
(2,876)
|
|
(15,730)
|
|
(9,385)
|
|
Interest expense and
financing charges, net - related parties
|
(1,642)
|
|
—
|
|
(4,670)
|
|
—
|
|
Other (expense)
income, net
|
(1,122)
|
|
14,088
|
|
(64,658)
|
|
31,051
|
|
Total other (expense)
income
|
(10,852)
|
|
11,212
|
|
(85,058)
|
|
21,666
|
|
(Loss) income before
income taxes
|
(23,402)
|
|
2,350
|
|
(204,446)
|
|
11,799
|
|
Provision (benefit) for
income taxes
|
640
|
|
3,438
|
|
(12,600)
|
|
9,006
|
|
Net (loss)
income
|
$
(24,042)
|
|
$
(1,088)
|
|
$ (191,846)
|
|
$
2,793
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
125
|
|
(275)
|
|
(233)
|
|
(45)
|
|
Comprehensive (loss)
income
|
$
(23,917)
|
|
$
(1,363)
|
|
$ (192,079)
|
|
$
2,748
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
$
(0.50)
|
|
$
(0.02)
|
|
$
(3.99)
|
|
$
0.06
|
|
Net (loss) income per
share (diluted)
|
$
(0.50)
|
|
$
(0.02)
|
|
$
(3.99)
|
|
$
0.06
|
|
Weighted average number
of shares outstanding (basic)
|
48,127
|
|
47,942
|
|
48,044
|
|
47,721
|
|
Weighted average number
of shares outstanding (diluted)
|
48,127
|
|
47,942
|
|
48,044
|
|
47,973
|
|
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2024
|
|
2023
|
|
(in
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net (loss)
income
|
$
(191,846)
|
|
$
2,793
|
|
Adjustments to
reconcile net (loss) income to cash provided by operating
activities:
|
|
|
|
|
Stock based
compensation
|
657
|
|
1,127
|
|
Depreciation,
depletion, accretion and amortization
|
19,256
|
|
36,839
|
|
Amortization of debt
origination costs
|
1,076
|
|
565
|
|
Change in provision
for expected credit losses
|
171,108
|
|
(414)
|
|
Gains on disposal of
assets
|
(2,496)
|
|
(3,284)
|
|
Gains from sales of
equipment damaged or lost down-hole
|
(160)
|
|
(335)
|
|
Impairment of
goodwill
|
—
|
|
1,810
|
|
Gain on sale of
business
|
—
|
|
(2,080)
|
|
Deferred income
taxes
|
3,488
|
|
(70)
|
|
Other
|
724
|
|
(273)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts receivable,
net
|
43,107
|
|
1,445
|
|
Inventories
|
(845)
|
|
(2,896)
|
|
Prepaid expenses and
other assets
|
9,252
|
|
8,990
|
|
Accounts
payable
|
1,938
|
|
(7,537)
|
|
Accrued expenses and
other liabilities
|
(3,796)
|
|
(19,679)
|
|
Accrued expenses and
other liabilities - related parties
|
4,647
|
|
—
|
|
Income taxes
payable
|
(16,809)
|
|
7,950
|
|
Net cash provided by
operating activities
|
39,301
|
|
24,951
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
(10,967)
|
|
(15,265)
|
|
Business divestitures,
net of cash transferred
|
—
|
|
3,276
|
|
Proceeds from disposal
of property and equipment
|
5,047
|
|
4,304
|
|
Net cash used in
investing activities
|
(5,920)
|
|
(7,685)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Borrowings on
long-term debt
|
—
|
|
168,800
|
|
Repayments of
long-term debt
|
—
|
|
(183,291)
|
|
Payments on financing
transaction
|
(46,837)
|
|
—
|
|
Payments on
sale-leaseback transaction
|
(3,206)
|
|
(3,711)
|
|
Principal payments on
financing leases and equipment financing notes
|
(1,403)
|
|
(4,872)
|
|
Debt issuance
costs
|
(37)
|
|
—
|
|
Other
|
—
|
|
(919)
|
|
Net cash used in
financing activities
|
(51,483)
|
|
(23,993)
|
|
Effect of foreign
exchange rate on cash
|
(31)
|
|
(28)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(18,133)
|
|
(6,755)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
24,298
|
|
17,282
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
6,165
|
|
$
10,527
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Cash paid for
interest
|
$
2,096
|
|
$
8,951
|
|
Cash paid for income
taxes, net of refunds received
|
$
716
|
|
$
788
|
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
|
Interest paid in kind
- related parties
|
$
5,888
|
|
$
—
|
|
Purchases of property
and equipment included in accounts payable
|
$
3,964
|
|
$
4,197
|
|
Right-of-use assets
obtained for financing lease liabilities
|
$
2,971
|
|
$
507
|
|
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME
STATEMENTS
(in
thousands)
|
|
|
Three Months Ended
September 30, 2024
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
2,124
|
$
26,043
|
$
4,909
|
$
1,557
|
$
5,382
|
$
—
|
$
40,015
|
|
Intersegment
revenues
|
108
|
—
|
—
|
—
|
1,641
|
(1,749)
|
—
|
|
Total
revenue
|
2,232
|
26,043
|
4,909
|
1,557
|
7,023
|
(1,749)
|
40,015
|
|
Cost of revenue,
exclusive of
depreciation, depletion, amortization and
accretion
|
7,099
|
22,539
|
3,110
|
1,478
|
3,746
|
—
|
37,972
|
|
Intersegment cost of
revenues
|
185
|
—
|
—
|
1
|
1,565
|
(1,751)
|
—
|
|
Total cost of
revenue
|
7,284
|
22,539
|
3,110
|
1,479
|
5,311
|
(1,751)
|
37,972
|
|
Selling, general and
administrative
|
887
|
5,557
|
1,211
|
230
|
817
|
—
|
8,702
|
|
Depreciation,
depletion, amortization
and accretion
|
2,546
|
626
|
1,688
|
587
|
737
|
—
|
6,184
|
|
Gains on disposal of
assets, net
|
(60)
|
(41)
|
—
|
—
|
(192)
|
—
|
(293)
|
|
Operating (loss)
income
|
(8,425)
|
(2,638)
|
(1,100)
|
(739)
|
350
|
2
|
(12,550)
|
|
Interest expense and
financing charges,
net
|
533
|
8,742
|
135
|
127
|
193
|
—
|
9,730
|
|
Other expense (income),
net
|
1
|
1,491
|
3
|
—
|
(373)
|
—
|
1,122
|
|
(Loss) income before
income taxes
|
$
(8,959)
|
$
(12,871)
|
$
(1,238)
|
$
(866)
|
$
530
|
$
2
|
$
(23,402)
|
|
|
Three Months Ended
September 30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
20,166
|
$
26,712
|
$
10,633
|
$
2,337
|
$
5,111
|
$
—
|
$
64,959
|
|
Intersegment
revenues
|
161
|
—
|
—
|
—
|
909
|
(1,070)
|
—
|
|
Total
revenue
|
20,327
|
26,712
|
10,633
|
2,337
|
6,020
|
(1,070)
|
64,959
|
|
Cost of revenue,
exclusive of
depreciation, depletion, amortization and
accretion
|
17,528
|
22,042
|
6,977
|
2,194
|
4,076
|
—
|
52,817
|
|
Intersegment cost of
revenues
|
325
|
10
|
—
|
—
|
735
|
(1,070)
|
—
|
|
Total cost of
revenue
|
17,853
|
22,052
|
6,977
|
2,194
|
4,811
|
(1,070)
|
52,817
|
|
Selling, general and
administrative
|
1,579
|
6,495
|
1,224
|
215
|
898
|
—
|
10,411
|
|
Depreciation,
depletion, amortization
and accretion
|
3,971
|
1,557
|
2,836
|
1,114
|
1,755
|
—
|
11,233
|
|
Gains on disposal of
assets, net
|
(2,016)
|
(311)
|
—
|
—
|
(123)
|
—
|
(2,450)
|
|
Impairment of
goodwill
|
—
|
—
|
—
|
—
|
1,810
|
—
|
1,810
|
|
Operating
loss
|
(1,060)
|
(3,081)
|
(404)
|
(1,186)
|
(3,131)
|
—
|
(8,862)
|
|
Interest expense and
financing charges,
net
|
774
|
1,647
|
117
|
117
|
221
|
—
|
2,876
|
|
Other income,
net
|
—
|
(11,348)
|
(6)
|
—
|
(2,734)
|
—
|
(14,088)
|
|
(Loss) income before
income taxes
|
$
(1,834)
|
$
6,620
|
$
(515)
|
$
(1,303)
|
$
(618)
|
$
—
|
$
2,350
|
|
|
Nine Months ended
September 30, 2024
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
20,218
|
$
82,514
|
$
13,908
|
$
2,804
|
$
15,288
|
$
—
|
$
134,732
|
|
Intersegment
revenues
|
331
|
—
|
27
|
—
|
5,005
|
(5,363)
|
$
—
|
|
Total
revenue
|
20,549
|
82,514
|
13,935
|
2,804
|
20,293
|
(5,363)
|
134,732
|
|
Cost of revenue,
exclusive of
depreciation, depletion, amortization and
accretion
|
25,533
|
68,704
|
13,540
|
3,683
|
10,939
|
—
|
122,399
|
|
Intersegment cost of
revenues
|
638
|
26
|
—
|
4
|
4,695
|
(5,363)
|
$
—
|
|
Total cost of
revenue
|
26,171
|
68,730
|
13,540
|
3,687
|
15,634
|
(5,363)
|
122,399
|
|
Selling, general and
administrative
|
3,156
|
105,625
|
3,185
|
618
|
2,377
|
—
|
114,961
|
|
Depreciation,
depletion, amortization and
accretion
|
8,501
|
1,972
|
4,105
|
2,075
|
2,603
|
—
|
19,256
|
|
Losses (gains) on
disposal of assets, net
|
85
|
(984)
|
(110)
|
—
|
(1,487)
|
—
|
(2,496)
|
|
Operating (loss)
income
|
(17,364)
|
(92,829)
|
(6,785)
|
(3,576)
|
1,166
|
—
|
(119,388)
|
|
Interest expense and
financing charges,
net
|
1,624
|
17,417
|
408
|
377
|
574
|
—
|
20,400
|
|
Other expense,
net
|
2
|
63,919
|
2
|
—
|
735
|
—
|
64,658
|
|
Loss before income
taxes
|
$
(18,990)
|
$ (174,165)
|
$
(7,195)
|
$
(3,953)
|
$
(143)
|
$
—
|
$ (204,446)
|
|
|
Nine Months ended
September 30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
114,810
|
$
83,308
|
$
34,643
|
$
6,501
|
$
17,448
|
$
—
|
$
256,710
|
|
Intersegment
revenues
|
400
|
—
|
25
|
—
|
1,743
|
(2,168)
|
—
|
|
Total
revenue
|
115,210
|
83,308
|
34,668
|
6,501
|
19,191
|
(2,168)
|
256,710
|
|
Cost of revenue,
exclusive of
depreciation, depletion, amortization and
accretion
|
93,158
|
67,810
|
21,905
|
6,035
|
13,153
|
—
|
202,061
|
|
Intersegment cost of
revenues
|
1,029
|
29
|
—
|
26
|
1,084
|
(2,168)
|
—
|
|
Total cost of
revenue
|
94,187
|
67,839
|
21,905
|
6,061
|
14,237
|
(2,168)
|
202,061
|
|
Selling, general and
administrative
|
5,847
|
17,091
|
2,682
|
554
|
2,977
|
—
|
29,151
|
|
Depreciation,
depletion, amortization and
accretion
|
13,288
|
7,366
|
6,397
|
3,497
|
6,291
|
—
|
36,839
|
|
Gains on disposal of
assets, net
|
(2,016)
|
(439)
|
(16)
|
—
|
(813)
|
—
|
(3,284)
|
|
Impairment of
goodwill
|
—
|
—
|
—
|
—
|
1,810
|
—
|
1,810
|
|
Operating income
(loss)
|
3,904
|
(8,549)
|
3,700
|
(3,611)
|
(5,311)
|
—
|
(9,867)
|
|
Interest expense and
financing charges,
net
|
2,527
|
5,361
|
422
|
376
|
699
|
—
|
9,385
|
|
Other expense (income),
net
|
1
|
(28,713)
|
(12)
|
—
|
(2,327)
|
—
|
(31,051)
|
|
Income (loss) before
income taxes
|
$
1,376
|
$
14,803
|
$
3,290
|
$
(3,987)
|
$
(3,683)
|
$
—
|
$
11,799
|
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, impairment of goodwill,
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$ (24,042)
|
|
$
(1,088)
|
|
$
(191,846)
|
|
$
2,793
|
|
Depreciation,
depletion, amortization and accretion expense
|
6,184
|
|
11,233
|
|
19,256
|
|
36,839
|
|
Gains on disposal of
assets, net
|
(293)
|
|
(2,450)
|
|
(2,496)
|
|
(3,284)
|
|
Impairment of
goodwill
|
—
|
|
1,810
|
|
—
|
|
1,810
|
|
Stock based
compensation
|
219
|
|
219
|
|
657
|
|
1,127
|
|
Interest expense and
financing charges, net
|
9,730
|
|
2,876
|
|
20,400
|
|
9,385
|
|
Other expense (income),
net
|
1,122
|
|
(14,088)
|
|
64,658
|
|
(31,051)
|
|
Provision (benefit) for
income taxes
|
640
|
|
3,438
|
|
(12,600)
|
|
9,006
|
|
Interest on trade
accounts receivable
|
—
|
|
11,443
|
|
(60,686)
|
|
33,897
|
|
Adjusted
EBITDA
|
$
(6,440)
|
|
$
13,393
|
|
$
(162,657)
|
|
$
60,522
|
Well Completion Services
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$ (8,959)
|
|
$
(1,834)
|
|
$ (18,990)
|
|
$
1,376
|
|
Depreciation and
amortization expense
|
2,546
|
|
3,971
|
|
8,501
|
|
13,288
|
|
(Gains) losses on
disposal of assets, net
|
(60)
|
|
(2,016)
|
|
85
|
|
(2,016)
|
|
Stock based
compensation
|
33
|
|
64
|
|
122
|
|
451
|
|
Interest expense and
financing charges, net
|
533
|
|
774
|
|
1,624
|
|
2,527
|
|
Other expense,
net
|
1
|
|
—
|
|
2
|
|
1
|
|
Adjusted
EBITDA
|
$ (5,906)
|
|
$
959
|
|
$
(8,656)
|
|
$
15,627
|
Infrastructure Services
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$
(13,500)
|
|
$
3,239
|
|
$
(158,767)
|
|
$
6,392
|
|
Depreciation and
amortization expense
|
626
|
|
1,557
|
|
1,972
|
|
7,366
|
|
Gains on disposal of
assets, net
|
(41)
|
|
(311)
|
|
(984)
|
|
(439)
|
|
Stock based
compensation
|
124
|
|
99
|
|
364
|
|
436
|
|
Interest expense and
financing charges, net
|
8,742
|
|
1,647
|
|
17,417
|
|
5,361
|
|
Other expense (income),
net
|
1,491
|
|
(11,348)
|
|
63,919
|
|
(28,713)
|
|
Provision (benefit) for
income taxes
|
629
|
|
3,381
|
|
(15,398)
|
|
8,411
|
|
Interest on trade
accounts receivable
|
—
|
|
11,443
|
|
(60,686)
|
|
33,897
|
|
Adjusted
EBITDA
|
$ (1,929)
|
|
$
9,707
|
|
$
(152,163)
|
|
$
32,711
|
Natural Sand Proppant Services
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
$
(1,238)
|
|
$
(515)
|
|
$
(7,195)
|
|
$
3,290
|
|
Depreciation,
depletion, amortization and accretion expense
|
1,688
|
|
2,836
|
|
4,105
|
|
6,397
|
|
Gains on disposal of
assets, net
|
—
|
|
—
|
|
(110)
|
|
(16)
|
|
Stock based
compensation
|
39
|
|
37
|
|
109
|
|
149
|
|
Interest expense and
financing charges, net
|
135
|
|
117
|
|
408
|
|
422
|
|
Other expense (income),
net
|
3
|
|
(6)
|
|
2
|
|
(12)
|
|
Adjusted
EBITDA
|
$
627
|
|
$
2,469
|
|
$
(2,681)
|
|
$
10,230
|
Drilling Services
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net loss
|
$
(866)
|
|
$
(1,303)
|
|
$
(3,953)
|
|
$
(3,987)
|
|
Depreciation
expense
|
587
|
|
1,114
|
|
2,075
|
|
3,497
|
|
Stock based
compensation
|
5
|
|
5
|
|
15
|
|
18
|
|
Interest expense and
financing charges, net
|
127
|
|
117
|
|
377
|
|
376
|
|
Adjusted
EBITDA
|
$
(147)
|
|
$
(67)
|
|
$
(1,486)
|
|
$
(96)
|
Other Services(a)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
Reconciliation of
net income (loss) to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
(loss)
|
$
519
|
|
$
(675)
|
|
$
(2,941)
|
|
$
(4,278)
|
|
Depreciation,
amortization and accretion expense
|
737
|
|
1,755
|
|
2,603
|
|
6,291
|
|
Gains on disposal of
assets, net
|
(192)
|
|
(123)
|
|
(1,487)
|
|
(813)
|
|
Impairment of
goodwill
|
—
|
|
1,810
|
|
—
|
|
1,810
|
|
Stock based
compensation
|
18
|
|
14
|
|
47
|
|
73
|
|
Interest expense and
financing charges, net
|
193
|
|
221
|
|
574
|
|
699
|
|
Other (income) expense,
net
|
(373)
|
|
(2,734)
|
|
735
|
|
(2,327)
|
|
Provision for income
taxes
|
11
|
|
57
|
|
2,798
|
|
595
|
|
Adjusted
EBITDA
|
$
913
|
|
$
325
|
|
$
2,329
|
|
$
2,050
|
|
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-third-quarter-2024-operational-and-financial-results-302293680.html
SOURCE Mammoth Energy Services, Inc.
