Mammoth Energy Services, Inc. Announces Strong Second Quarter 2022 Operational and Financial Results

Significant Increases in Q2 Revenue, Net Income and Adjusted EBITDA

OKLAHOMA CITY, July 28, 2022 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported strong financial and operational results for the second quarter ended June 30, 2022.

Financial Overview for the Second Quarter 2022:

Total revenue was $89.7 million for the second quarter of 2022, as compared to $47.4 million for the same quarter last year and $62.3 million for the first quarter of 2022.

Net income for the second quarter of 2022 was $1.7 million, or $0.04 per share, as compared to a net loss of $34.8 million, or a $0.75 loss per share, for the same quarter last year, and a net loss of $14.8 million, or a $0.32 loss per share, for the first quarter of 2022.

Adjusted EBITDA (as defined and reconciled below) was $23.0 million for the second quarter of 2022, as compared to ($3.3) million for the same quarter last year and $9.3 million for the first quarter of 2022.

Arty Straehla, Chief Executive Officer of Mammoth commented, "Our significant second quarter growth in revenue, net income and Adjusted EBITDA resulted from substantial gains in Infrastructure Services, Well Completion Services and our Sand business. In our Infrastructure Services division, we have continued to add crews since the first quarter to just over 100 crews currently, and we expect to add additional crews in the coming weeks in preparation for the seasonal storm restoration services anticipated in the third and fourth quarters. Our Well Completion Services division posted the strongest quarter we've seen since mid-2019 resulting from the robust macro demand that the pressure pumping industry is experiencing. We currently have four pressure pumping spreads operating, which have full schedules through the end of the year, and we expect to add a fifth spread sometime in the fourth quarter. Our Sand business is also experiencing strong demand, as well as increased pricing, which we believe will continue to improve into the back half of the year and into 2023. I am proud of our team's continued commitment and hard work to push through the challenges we have faced over the last few years and am confident that we are well equipped to build on the improvements we have made this quarter."

Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $25.6 million for the second quarter of 2022, as compared to $18.4 million for the same quarter last year and $23.0 million for the first quarter of 2022. The increase in revenue compared to the same quarter of 2021 is primarily due to an increase in storm activity, resulting in higher storm restoration revenue.

Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $43.8 million on 1,716 stages for the second quarter of 2022, as compared to $17.4 million on 520 stages for the same quarter of 2021 and $23.9 million on 699 stages for the first quarter of 2022. On average, 3.5 of the Company's fleets were active for the second quarter of 2022, compared to an average utilization of 0.9 fleets during the same quarter last year and 1.6 fleets during the first quarter of 2022. As of July 26, 2022, Mammoth was operating four of its six pressure pumping fleets and currently expects to activate a fifth fleet in the fourth quarter. Looking to 2023, the Company plans to activate its sixth fleet in the first quarter of 2023, and has plans to acquire or build a new Tier 4, dual-fuel fleet for a total of seven fleets by year-end 2023.

Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $15.5 million for the second quarter of 2022, as compared to $6.9 million for the same quarter last year and $9.2 million for the first quarter of 2022. In the second quarter of 2022, the Company sold approximately 350,000 tons of sand at an average sales price of $26.86 per ton, as compared to sales of approximately 255,000 tons of sand at an average sales price of $15.80 per ton during the same quarter last year. In the first quarter of 2022, sales were approximately 329,000 tons of sand at an average price of $21.44 per ton.

Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $2.0 million for the second quarter of 2022, as compared to $1.1 million for the same quarter last year and $2.9 million for the first quarter of 2022.

Other Services
Mammoth's other services, including aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $5.0 million for the second quarter of 2022, as compared to $4.3 million for the same quarter last year and $4.7 million for the first quarter of 2022.

Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $8.2 million for the second quarter of 2022, as compared to $9.9 million for the same quarter last year and $8.7 million for the first quarter of 2022. 

Following is a breakout of SG&A expense (in thousands):


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


2022


2021


2022


2022


2021

Cash expenses:










Compensation and benefits

$         3,137


$         3,333


$         2,983


$         6,120


$         8,027

Professional services(a)

2,724


3,683


3,637


6,361


4,264

Other(b)

2,162


2,464


1,906


4,068


4,806

Total cash SG&A expense

8,023


9,480


8,526


16,549


17,097

Non-cash expenses:










Bad debt provision(c)

(16)


76


(99)


(115)


10,201

Stock based compensation

199


304


241


440


586

Total non-cash SG&A expense

183


380


142


325


10,787

Total SG&A expense

$         8,206


$         9,860


$         8,668


$       16,874


$       27,884



a.

Certain legal expenses totaling $2.1 million, $4.9 million and $2.8 million were reclassified to Other, net for the three and six months ended June 30, 2021 and three months ended March 31, 2022, respectively.

b.

Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.

c.

The bad debt provision for the six months ended June 30, 2021 includes $10.0 million related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

 

SG&A expenses, as a percentage of total revenue, were 9% for the second quarter of 2022, as compared to 21% for the same quarter last year and 14% for the first quarter of 2022.

Liquidity
As of June 30, 2022, Mammoth had cash on hand of $12.7 million, outstanding borrowings under its revolving credit facility of $82.9 million and $14.3 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. As of June 30, 2022, Mammoth had total liquidity of $27.0 million.

As of July 26, 2022, Mammoth had cash on hand of $9.5 million and outstanding borrowings under its revolving credit facility of $84.1 million. As of July 26, 2022, the Company had $8.2 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. Neither Cobra Acquisitions LLC nor Mammoth plan to make the scheduled settlement payment due on August 1, 2022 to Mastec Renewables Puerto Rico, LLC, but expects to make the payment on or before December 1, 2022.

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,


2022


2021


2022


2022


2021

Infrastructure services(a)

$            200


$            105


$            398


$            598


$            293

Well completion services(b)

2,500


388


801


3,301


896

Natural sand proppant services(c)


5




413

Drilling services(d)

12


1


2


14


38

Other(e)

161


63


60


221


165

Eliminations

(87)


(96)


(79)


(166)


(96)

Total capital expenditures

$         2,786


$            466


$         1,182


$         3,968


$         1,709



a.

Capital expenditures primarily for truck, tooling and equipment purchases for the periods presented.

b.

Capital expenditures primarily for upgrades to our pressure pumping fleet for the periods presented.

c.

Capital expenditures primarily for maintenance for the periods presented.

d.

Capital expenditures primarily for directional drilling equipment for the periods presented.

e.

Capital expenditures primarily for equipment for the Company's rental businesses for the periods presented.

 

Mammoth anticipates that its total capital expenditures for 2022 will be approximately $20.0 million, representing an $8.0 million increase in its previously announced capital expenditure guidance for 2022, which Mammoth expects to fund from cash flow from operations, cash on hand and borrowings under its revolving credit facility.

Conference Call Information
Mammoth will host a conference call on Thursday, July 28, 2022 at 4:00 p.m. Central time (5:00 p.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 construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth's suite of services and products include: infrastructure services, well completion 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, 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: any continuing impacts of the COVID-19 pandemic, related global and national health concerns and economic repercussions; 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 on the global energy and capital markets and global stability; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; inflationary pressures; rising interest rates and their impact on the cost of capital; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company's subsidiary Cobra Acquisitions LLC ("Cobra") by the Puerto Rico Electric Power Authority ("PREPA"); the failure to receive or delays in receiving governmental authorizations, approvals and/or payments, including payments with respect to the PREPA account receivable for prior services to PREPA performed by Cobra; 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; 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, including the adverse impact of the recent settlement with MasTec Renewables Puerto Rico, LLC, 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 continue to comply with, or if applicable, obtain a waiver of forecasted or actual noncompliance with certain financial covenants and comply with other terms and conditions under our recently amended 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


June 30,


December 31,



2022


2021

CURRENT ASSETS


(in thousands)

Cash and cash equivalents


$                     12,729


$                       9,899

Short-term investment


1,765


1,762

Accounts receivable, net


430,443


407,550

Receivables from related parties, net


193


88

Inventories


8,000


8,366

Prepaid expenses


7,919


12,381

Other current assets


645


737

Total current assets


461,694


440,783






Property, plant and equipment, net


145,905


176,586

Sand reserves


64,141


64,641

Operating lease right-of-use assets


11,654


12,168

Intangible assets, net


2,171


2,561

Goodwill


11,717


11,717

Deferred income tax asset


2,228


8,094

Other non-current assets


3,620


4,342

Total assets


$                   703,130


$                   720,892

LIABILITIES AND EQUITY





CURRENT LIABILITIES





Accounts payable


$                     38,618


$                     37,560

Accrued expenses and other current liabilities


55,484


62,516

Current operating lease liability


5,655


5,942

Current portion of long-term debt


1,505


1,468

Income taxes payable


43,660


42,748

Total current liabilities


144,922


150,234






Long-term debt, net of current portion


83,969


85,240

Deferred income tax liabilities


1,611


865

Long-term operating lease liability


5,840


5,918

Asset retirement obligation


3,952


3,720

Other long-term liabilities


12,537


11,693

Total liabilities


252,831


257,670






COMMITMENTS AND CONTINGENCIES










EQUITY





Equity:





Common stock, $0.01 par value, 200,000,000 shares authorized, 47,312,270 and 46,684,065 issued and outstanding at June 30, 2022 and December 31, 2021


473


467

Additional paid in capital


538,656


538,221

Accumulated deficit


(85,649)


(72,535)

Accumulated other comprehensive loss


(3,181)


(2,931)

Total equity


450,299


463,222

Total liabilities and equity


$                   703,130


$                   720,892

 

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


2022


2021


2021


2022


2021


(in thousands, except per share amounts)

REVENUE


Services revenue

$           75,459


$           40,867


$           53,667


$         129,126


$           83,558

Services revenue - related parties

395


90


274


669


15,076

Product revenue

13,824


6,483


8,357


22,181


13,465

Product revenue - related parties





2,145

Total revenue

89,678


47,440


62,298


151,976


114,244











COST AND EXPENSES










Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $15,404, $17,861, $15,355, $30,759 and $36,850, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)

58,433


43,103


46,567


105,000


85,165

Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $0, $0, $0, $0 and $0, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)

128


107


135


263


216

Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,055, $2,384, $1,792, $3,847 and $4,521, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)

10,225


7,165


7,778


18,003


13,074

Selling, general and administrative

8,206


9,668


8,668


16,874


27,499

Selling, general and administrative - related parties


192




385

Depreciation, depletion, amortization and accretion

17,476


20,265


17,167


34,643


41,411

Total cost and expenses

94,468


80,500


80,315


174,783


167,750

Operating loss

(4,790)


(33,060)


(18,017)


(22,807)


(53,506)











OTHER INCOME (EXPENSE)










Interest expense, net

(2,659)


(1,169)


(2,349)


(5,008)


(2,394)

Other income (expense), net

13,087


(17,121)


9,237


22,324


(9,998)

Other expense, net - related parties





(515)

Total other income (expense)

10,428


(18,290)


6,888


17,316


(12,907)

Income (loss) before income taxes

5,638


(51,350)


(11,129)


(5,491)


(66,413)

Provision (benefit) for income taxes

3,935


(16,560)


3,688


7,623


(19,183)

Net income (loss)

$             1,703


$          (34,790)


$          (14,817)


$          (13,114)


$          (47,230)











OTHER COMPREHENSIVE INCOME (LOSS)










Foreign currency translation adjustment, net of tax of $0, $63, $0, $0 and $680, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)

(448)


239


198


(250)


407

Comprehensive income (loss)

$             1,255


$          (34,551)


$          (14,619)


$          (13,364)


$          (46,823)











Net income (loss) per share (basic)

$               0.04


$              (0.75)


$              (0.32)


$              (0.28)


$              (1.02)

Net income (loss) per share (diluted)

$               0.04


$              (0.75)


$              (0.32)


$              (0.28)


$              (1.02)

Weighted average number of shares outstanding (basic)

47,225


46,402


46,845


47,036


46,168

Weighted average number of shares outstanding (diluted)

47,634


46,402


46,845


47,036


46,168

 

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS



Six Months Ended


June 30,


2022


2021


(in thousands)

Cash flows from operating activities:




Net loss

$                        (13,114)


$                        (47,230)

Adjustments to reconcile net loss to cash (used in) provided by operating activities:




Stock based compensation

441


698

Depreciation, depletion, accretion and amortization

34,643


41,411

Amortization of debt origination costs

375


296

Bad debt (recoveries) expense

(115)


10,201

Gain on disposal of property and equipment

(3,650)


(1,599)

Deferred income taxes

6,612


(20,898)

Other

449


548

Changes in assets and liabilities:




Accounts receivable, net

(22,480)


(30,386)

Receivables from related parties, net

(105)


28,381

Inventories

366


1,808

Prepaid expenses and other assets

4,567


5,923

Accounts payable

(2,132)


(1,546)

Accrued expenses and other liabilities

(7,407)


15,756

Income taxes payable

912


1,107

Net cash (used in) provided by operating activities

(638)


4,471





Cash flows from investing activities:




Purchases of property and equipment

(3,968)


(1,709)

Proceeds from disposal of property and equipment

7,447


4,632

Net cash provided by investing activities

3,479


2,923





Cash flows from financing activities:




Borrowings on long-term debt

83,000


12,000

Repayments of long-term debt

(84,241)


(30,269)

Payments on sale-leaseback transaction

(2,094)


(1,278)

Principal payments on financing leases and equipment financing notes

(1,197)


(1,140)

Net cash (used in) provided by financing activities

57


(11,214)

Effect of foreign exchange rate on cash

(68)


36

Net change in cash and cash equivalents

2,830


(3,784)

Cash and cash equivalents at beginning of period

9,899


14,822

Cash and cash equivalents at end of period

$                         12,729


$                          11,038





Supplemental disclosure of cash flow information:




Cash paid for interest

$                           3,792


$                           2,134

Cash paid for income taxes, net of refunds received

$                               98


$                              964

Supplemental disclosure of non-cash transactions:




Purchases of property and equipment included in accounts payable

$                           4,733


$                           2,035

 

MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)


Three months ended June 30, 2022

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$           25,587

$           43,574

$           13,841

$            1,952

$            4,724

$                 —

$           89,678

Intersegment revenues

243

1,618

19

306

(2,186)

Total revenue

25,587

43,817

15,459

1,971

5,030

(2,186)

89,678

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

21,808

31,486

9,707

2,034

3,751

68,786

Intersegment cost of revenues

15

1,985

160

103

(2,263)

Total cost of revenue

21,823

33,471

9,707

2,194

3,854

(2,263)

68,786

Selling, general and administrative

4,443

1,884

870

277

732

8,206

Depreciation, depletion, amortization and accretion

4,211

6,747

2,058

1,651

2,809

17,476

Operating (loss) income

(4,890)

1,715

2,824

(2,151)

(2,365)

77

(4,790)

Interest expense, net

1,755

422

178

121

183

2,659

Other income, net

(10,925)

(157)

(19)

(1,986)

(13,087)

Income (loss) before income taxes

$            4,280

$            1,450

$            2,665

$           (2,272)

$              (562)

$                 77

$            5,638


Three months ended June 30, 2021

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$           18,420

$           17,337

$            6,886

$            1,130

$            3,667

$                 —

$           47,440

Intersegment revenues

36

17

682

(735)

Total revenue

18,420

17,373

6,886

1,147

4,349

(735)

47,440

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

21,062

16,396

7,400

1,568

3,949

50,375

Intersegment cost of revenues

50

666

19

(735)

Total cost of revenue

21,112

17,062

7,400

1,568

3,968

(735)

50,375

Selling, general and administrative

5,620

1,893

991

395

961

9,860

Depreciation, depletion, amortization and accretion

5,899

6,447

2,387

2,078

3,454

20,265

Operating loss

(14,211)

(8,029)

(3,892)

(2,894)

(4,034)

(33,060)

Interest expense, net

664

219

90

58

138

1,169

Other expense (income), net

18,035

1

(53)

(126)

(736)

17,121

Loss before income taxes

$         (32,910)

$           (8,249)

$           (3,929)

$           (2,826)

$           (3,436)

$                 —

$         (51,350)


Three months ended March 31, 2022

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$           23,009

$           23,630

$            8,347

$            2,852

$            4,460

$                 —

$           62,298

Intersegment revenues

244

832

3

272

(1,351)

Total revenue

23,009

23,874

9,179

2,855

4,732

(1,351)

62,298

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

18,887

21,839

7,788

2,372

3,594

54,480

Intersegment cost of revenues

16

1,031

160

70

(1,277)

Total cost of revenue

18,903

22,870

7,788

2,532

3,664

(1,277)

54,480


Selling, general and administrative

4,645

2,039

828

292

864

8,668

Depreciation, depletion, amortization and accretion

4,314

6,444

1,795

1,680

2,934

17,167

Operating loss

(4,853)

(7,479)

(1,232)

(1,649)

(2,730)

(74)

(18,017)

Interest expense, net

1,542

371

162

104

170

2,349

Other (income) expense, net

(9,587)

(49)

(79)

478

(9,237)

Income (loss) before income taxes

$            3,192

$           (7,801)

$           (1,315)

$           (1,753)

$           (3,378)

$                (74)

$         (11,129)


Six months ended June 30, 2022

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$          48,596

$          67,202

$          22,189

$            4,804

$            9,185

$                —

$        151,976

Intersegment revenues

489

2,450

22

576

(3,537)

Total revenue

48,596

67,691

24,639

4,826

9,761

(3,537)

151,976

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

40,695

53,325

17,495

4,406

7,345

123,266

Intersegment cost of revenues

31

3,016

321

172

(3,540)

Total cost of revenue

40,726

56,341

17,495

4,727

7,517

(3,540)

123,266

Selling, general and administrative

9,088

3,923

1,698

569

1,596

16,874

Depreciation, depletion, amortization and accretion

8,525

13,191

3,852

3,331

5,744

34,643

Operating (loss) income

(9,743)

(5,764)

1,594

(3,801)

(5,096)

3

(22,807)

Interest expense, net

3,298

793

340

225

352

5,008

Other income, net

(20,512)

(206)

(98)

(1,508)

(22,324)

Income (loss) before income taxes

$            7,471

$          (6,351)

$            1,352

$          (4,026)

$          (3,940)

$                  3

$          (5,491)


Six months ended June 30, 2021

Infrastructure

Well
Completion

Sand

Drilling

All Other

Eliminations

Total

Revenue from external customers

$          48,619

$          40,238

$          15,592

$            2,049

$            7,746

$                —

$        114,244

Intersegment revenues

90

31

1,322

(1,443)

Total revenue

48,619

40,328

15,592

2,080

9,068

(1,443)

114,244

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion

48,439

25,399

13,262

3,173

8,182

98,455

Intersegment cost of revenues

95

1,060

288

(1,443)

Total cost of revenue

48,534

26,459

13,262

3,173

8,470

(1,443)

98,455

Selling, general and administrative

9,359

12,505

3,040

817

2,163

27,884

Depreciation, depletion, amortization and accretion

12,566

13,130

4,527

4,243

6,945

41,411

Operating loss

(21,840)

(11,766)

(5,237)

(6,153)

(8,510)

(53,506)

Interest expense, net

1,333

473

183

121

284

2,394

Other expense (income), net

11,548

440

(847)

(135)

(493)

10,513

Loss before income taxes

$         (34,721)

$          (12,679)

$          (4,573)

$          (6,139)

$          (8,301)

$                —

$         (66,413)

 

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 income (loss) before depreciation, depletion, amortization and accretion expense, public offering costs, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets, 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 income (loss) 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 income (loss) 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 income (loss) on a consolidated basis and for each of the Company's segments (in thousands):

Consolidated


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,

Reconciliation of Adjusted EBITDA to net income (loss):

2022


2021


2022


2022


2021

Net income (loss)

$              1,703


$           (34,790)


$           (14,817)


$           (13,114)


$           (47,230)

Depreciation, depletion, amortization and accretion expense

17,476


20,265


17,167


34,643


41,411

Public offering costs


77




77

Stock based compensation

200


354


241


441


698

Interest expense, net

2,659


1,169


2,349


5,008


2,394

Other (income) expense, net

(13,087)


17,121


(9,237)


(22,324)


10,513

Provision (benefit) for income taxes

3,935


(16,560)


3,688


7,623


(19,183)

Interest on trade accounts receivable

10,160


9,017


9,862


20,022


17,175

Adjusted EBITDA

$            23,046


$             (3,347)


$              9,253


$            32,299


$              5,855

 

Infrastructure Services


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,

Reconciliation of Adjusted EBITDA to net income (loss):

2022


2021


2022


2022


2021

Net income (loss)

$                572


$          (24,073)


$                125


$                695


$          (28,311)

Depreciation and amortization expense

4,211


5,899


4,314


8,525


12,566

Public offering costs


45




45

Stock based compensation

74


162


98


172


301

Interest expense

1,755


664


1,542


3,298


1,333

Other (income) expense, net

(10,925)


18,035


(9,587)


(20,512)


11,548

Provision (benefit) for income taxes

3,708


(8,838)


3,067


6,776


(6,409)

Interest on trade accounts receivable

10,160


9,017


9,862


20,022


17,689

Adjusted EBITDA

$             9,555


$                911


$             9,421


$            18,976


$             8,762

 

Well Completion Services


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,

Reconciliation of Adjusted EBITDA to net income (loss):

2022


2021


2022


2022


2021

Net income (loss)

$             1,450


$            (8,248)


$            (7,801)


$            (6,351)


$          (12,678)

Depreciation and amortization expense

6,747


6,447


6,444


13,191


13,130

Public offering costs


12




12

Stock based compensation

84


75


87


171


158

Interest expense

422


219


371


793


473

Other (income) expense, net

(157)


1


(49)


(206)


440

Interest on trade accounts receivable





(513)

Adjusted EBITDA

$             8,546


$            (1,494)


$               (948)


$             7,598


$             1,022

 

Natural Sand Proppant Services


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,

Reconciliation of Adjusted EBITDA to net income (loss):

2022


2021


2022


2022


2021

Net income (loss)

$             2,665


$            (3,930)


$            (1,315)


$             1,352


$            (4,574)

Depreciation, depletion, amortization and accretion expense

2,058


2,387


1,795


3,852


4,527

Public offering costs


12




12

Stock based compensation

26


66


34


60


130

Interest expense

178


90


162


340


183

Other income, net

(19)


(53)


(79)


(98)


(847)

Interest on trade accounts receivable





(1)

Adjusted EBITDA

$             4,908


$            (1,428)


$                597


$             5,506


$               (570)

 

Drilling Services


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,

Reconciliation of Adjusted EBITDA to net loss:

2022


2021


2022


2022


2021

Net loss

$            (2,272)


$            (2,825)


$            (1,753)


$            (4,026)


$            (6,140)

Depreciation expense

1,651


2,078


1,680


3,331


4,243

Public offering costs


2




2

Stock based compensation

4


28


5


9


65

Interest expense

121


58


104


225


121

Other income, net


(126)




(135)

Adjusted EBITDA

$               (496)


$               (785)


$                  36


$               (461)


$            (1,844)

 

Other Services(a)


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,

Reconciliation of Adjusted EBITDA to net (loss) income:

2022


2021


2022


2022


2021

Net (loss) income

$               (788)


$             4,286


$            (3,999)


$            (4,786)


$             4,473

Depreciation, amortization and accretion expense

2,809


3,454


2,934


5,744


6,945

Public offering costs


6




6

Stock based compensation

12


23


17


29


44

Interest expense, net

183


138


170


352


284

Other income (expense), net

(1,986)


(736)


478


(1,508)


(493)

Provision (benefit) for income taxes

226


(7,722)


621


846


(12,774)

Adjusted EBITDA

$                456


$               (551)


$                221


$                677


$            (1,515)



a.

Includes results for Mammoth's aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing and corporate related activities. The Company's corporate related activities do not generate revenue.

 

Cision View original content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-strong-second-quarter-2022-operational-and-financial-results-301595697.html

SOURCE Mammoth Energy Services, Inc.

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