Mammoth Energy Services, Inc. Reports Strong Third Quarter 2022 Operational and Financial Results
Revenue Growth of 86% Year-over-Year and 20% Sequentially
OKLAHOMA CITY, Oct. 27, 2022 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported strong financial and operational results for the third quarter ended September 30, 2022.
Financial Overview for the Third Quarter 2022:
Total revenue was $107.2 million for the third quarter of 2022, as compared to $57.5 million for the same quarter last year and $89.7 million for the second quarter of 2022.
Net income for the third quarter of 2022 was $7.7 million, or $0.16 per share, as compared to a net loss of $40.9 million, or a $0.88 loss per share, for the same quarter last year, and net income of $1.7 million, or $0.04 per share, for the second quarter of 2022.
Adjusted EBITDA (as defined and reconciled below) was $29.8 million for the third quarter of 2022, as compared to ($29.3) million for the same quarter last year and $23.0 million for the second quarter of 2022.
Arty Straehla, Chief Executive Officer of Mammoth commented, "Our businesses exhibited strong performance in the third quarter with substantial revenue growth in all of our segments year-over-year, leading to significant net income and Adjusted EBITDA growth. We continue to experience strong demand environments across our three largest segments, Infrastructure Services, Well Completion Services and our Sand business.
"In our Infrastructure Services division, operational improvements are driving enhanced results and we continue to add crew capacity for a sector that has a healthy bidding environment. The need for seasonal storm restoration services as well as the overall infrastructure project opportunities supported by the historic investment in our Nation's infrastructure passed by the federal government last fall present continued prospects for growth in this business. Our Well Completion Services division continues to improve performance, generating strong growth both at the top and bottom line where the macro demand in the pressure pumping industry remains robust. We currently have four of our six pressure pumping spreads operating, which have full schedules through the end of the year, and we expect to add a fifth spread during the fourth quarter. We anticipate activating our sixth fleet in the first half of 2023. In addition, we have plans to upgrade one of our existing spreads to Tier 4, dual fuel. This would give us a total of three dual fuel fleets. The sand business also continues to maintain strong demand at increased prices. We believe this trend in sand demand will continue in the fourth quarter and into 2023. Across all our business segments, I am proud of our team's continued commitment, hard work and perseverance to manage through today's macro-economic climate relative to supply chain constrains and labor and inflationary challenges. We believe the future for Mammoth is bright and we remain committed to enhancing value for all of our stakeholders."
Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $33.3 million for the third quarter of 2022, as compared to $25.1 million for the same quarter last year and $25.6 million for the second quarter of 2022. The increase in revenue is primarily due to improved operational execution, coupled with an increase in crew count. Average crew count grew to 96 crews during the third quarter of 2022, as compared to 77 crews during the same quarter last year and 88 crews during the second quarter of 2022.
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $51.5 million on 1,897 stages for the third quarter of 2022, as compared to $22.7 million on 688 stages for the same quarter of 2021 and $43.8 million on 1,716 stages for the second quarter of 2022. On average, 3.5 of the Company's fleets were active for the third quarter of 2022, compared to an average utilization of 1.2 fleets during the same quarter last year and 3.5 fleets during the second quarter of 2022.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $12.9 million for the third quarter of 2022, as compared to $8.4 million for the same quarter last year and $15.5 million for the second quarter of 2022. In the third quarter of 2022, the Company sold approximately 341,000 tons of sand at an average sales price of $29.95 per ton, as compared to sales of approximately 315,000 tons of sand at an average sales price of $16.58 per ton during the same quarter last year. In the second quarter of 2022, sales were approximately 350,000 tons of sand at an average price of $26.86 per ton.
Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $3.1 million for the third quarter of 2022, as compared to $1.2 million for the same quarter last year and $2.0 million for the second 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 $7.0 million for the third quarter of 2022, as compared to $4.6 million for the same quarter last year and $5.0 million for the second quarter of 2022.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $9.7 million for the third quarter of 2022, as compared to $41.4 million for the same quarter last year and $8.2 million for the second quarter of 2022.
Following is a breakout of SG&A expense (in thousands):
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2022
2021
2022
2022
2021
Cash expenses:
Compensation and benefits
$ 3,676
$ 3,353
$ 3,137
$ 9,796
$ 11,379
Professional services(a)
3,706
4,134
2,724
10,067
8,399
Other(b)
2,059
2,252
2,162
6,127
7,058
Total cash SG&A expense
9,441
9,739
8,023
25,990
26,836
Non-cash expenses:
Bad debt provision(c)
3
31,449
(16)
(112)
41,650
Stock based compensation
241
241
199
682
827
Total non-cash SG&A expense
244
31,690
183
570
42,477
Total SG&A expense
$ 9,685
$ 41,429
$ 8,206
$ 26,560
$ 69,313
a.
Certain legal expenses totaling $0.4 million and $5.4 million were reclassified to Other, net for the three and nine months ended September 30, 2021, 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 nine months ended September 30, 2021 includes $41.2 million related to the settlement of our accounts with Gulfport Energy Corporation and its subsidiaries.
SG&A expenses, as a percentage of total revenue, were 9% for the third quarter of 2022, as compared to 73% for the same quarter last year and 9% for the second quarter of 2022.
Liquidity
As of September 30, 2022, Mammoth had cash on hand of $10.6 million, outstanding borrowings under its revolving credit facility of $92.8 million and $6.9 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.1 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. As of September 30, 2022, Mammoth had total liquidity of $17.5 million.
As of October 26, 2022, Mammoth had cash on hand of $10.3 million and outstanding borrowings under its revolving credit facility of $89.7 million. As of October 26, 2022, the Company had $13.0 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.1 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity.
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,
June 30,
September 30,
2022
2021
2022
2022
2021
Infrastructure services(a)
$ 225
$ 181
$ 200
$ 823
$ 474
Well completion services(b)
4,747
2,392
2,500
8,048
3,288
Natural sand proppant services(c)
34
16
—
34
429
Drilling services(d)
33
4
12
47
42
Other(e)
53
172
161
275
337
Eliminations
38
—
(87)
(128)
(96)
Total capital expenditures
$ 5,130
$ 2,765
$ 2,786
$ 9,099
$ 4,474
a.
Capital expenditures primarily for truck, tooling and equipment purchases for the periods presented.
b.
Capital expenditures primarily for upgrades and maintenance 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, 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, October 27, 2022 at 4:00 p.m. Central time (5:00 p.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 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, 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, 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 (i) continue to comply with or, if applicable, obtain a waiver of forecasted or actual non-compliance with certain financial covenants from its lenders and comply with other terms and conditions under its amended revolving credit facility, as amended, (ii) extend or refinance our revolving credit facility at or prior to maturity on the terms acceptable to Mammoth or at all and (iii) meet its financial projections associated with reducing its debt; 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,
2022
2021
CURRENT ASSETS
(in thousands)
Cash and cash equivalents
$ 10,617
$ 9,899
Short-term investment
—
1,762
Accounts receivable, net
462,995
407,550
Receivables from related parties, net
386
88
Inventories
8,331
8,366
Prepaid expenses
4,862
12,381
Other current assets
647
737
Total current assets
487,838
440,783
Property, plant and equipment, net
135,222
176,586
Sand reserves
62,559
64,641
Operating lease right-of-use assets
10,187
12,168
Intangible assets, net
1,977
2,561
Goodwill
11,717
11,717
Deferred income tax asset
—
8,094
Other non-current assets
3,838
4,342
Total assets
$ 713,338
$ 720,892
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
$ 49,262
$ 37,560
Accrued expenses and other current liabilities
42,582
62,516
Current operating lease liability
5,107
5,942
Current portion of long-term debt
—
1,468
Income taxes payable
45,516
42,748
Total current liabilities
142,467
150,234
Long-term debt, net of current portion
92,776
85,240
Deferred income tax liabilities
1,113
865
Long-term operating lease liability
4,949
5,918
Asset retirement obligation
3,936
3,720
Other long-term liabilities
10,432
11,693
Total liabilities
255,673
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 September 30, 2022 and December 31, 2021
473
467
Additional paid in capital
538,897
538,221
Accumulated deficit
(77,923)
(72,535)
Accumulated other comprehensive loss
(3,782)
(2,931)
Total equity
457,665
463,222
Total liabilities and equity
$ 713,338
$ 720,892
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2022
2021
2022
2022
2021
(in thousands, except per share amounts)
REVENUE
Services revenue
$ 93,879
$ 52,417
$ 75,459
$ 223,005
$ 135,975
Services revenue - related parties
355
601
395
1,024
15,678
Product revenue
12,968
4,467
13,824
35,149
17,932
Product revenue - related parties
—
—
—
—
2,145
Total revenue
107,202
57,485
89,678
259,178
171,730
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $12,968, $35,587, $15,404, $43,727 and $53,448, respectively, for the three months ended September 30, 2022,September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021)
68,821
43,538
58,433
173,821
128,703
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 September 30, 2022,September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021)
142
181
128
405
397
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,863, $4,667, $2,055, $6,711 and $7,051, respectively, for the three months ended September 30, 2022,September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021)
9,493
9,865
10,225
27,496
22,939
Selling, general and administrative
9,685
41,429
8,206
26,560
68,928
Selling, general and administrative - related parties
—
—
—
—
385
Depreciation, depletion, amortization and accretion
15,842
19,148
17,476
50,485
60,559
Gains on disposal of assets
(599)
(3,033)
(2,943)
(3,738)
(4,632)
Impairment of other long-lived assets
—
547
—
—
547
Total cost and expenses
103,384
111,675
91,525
275,029
277,826
Operating income (loss)
3,818
(54,190)
(1,847)
(15,851)
(106,096)
OTHER INCOME (EXPENSE)
Interest expense, net
(3,262)
(1,484)
(2,659)
(8,270)
(3,878)
Other income (expense), net
10,989
7,586
10,144
30,175
(4,012)
Other expense, net - related parties
—
—
—
—
(515)
Total other income (expense)
7,727
6,102
7,485
21,905
(8,405)
Income (loss) before income taxes
11,545
(48,088)
5,638
6,054
(114,501)
Provision (benefit) for income taxes
3,819
(7,187)
3,935
11,442
(26,370)
Net income (loss)
$ 7,726
$ (40,901)
$ 1,703
$ (5,388)
$ (88,131)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of tax of ($215), ($69), $0, $(215) and ($749), respectively, for the three months ended September 30, 2022, September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021)
(601)
(289)
(448)
(851)
118
Comprehensive income (loss)
$ 7,125
$ (41,190)
$ 1,255
$ (6,239)
$ (88,013)
Net income (loss) per share (basic)
$ 0.16
$ (0.88)
$ 0.04
$ (0.11)
$ (1.90)
Net income (loss) per share (diluted)
$ 0.16
$ (0.88)
$ 0.04
$ (0.11)
$ (1.90)
Weighted average number of shares outstanding (basic)
47,312
46,683
47,225
47,129
46,342
Weighted average number of shares outstanding (diluted)
47,843
46,683
47,634
47,129
46,342
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
2022
2021
(in thousands)
Cash flows from operating activities:
Net loss
$ (5,388)
$ (88,131)
Adjustments to reconcile net loss to cash used in operating activities:
Stock based compensation
682
950
Depreciation, depletion, accretion and amortization
50,485
60,559
Amortization of debt origination costs
588
469
Bad debt (recoveries) expense
(112)
41,650
Gains on disposal of assets
(3,738)
(4,632)
Gains from sales of equipment damaged or lost down-hole
(607)
—
Impairment of other long-lived assets
—
547
Deferred income taxes
8,557
(32,183)
Other
104
502
Changes in assets and liabilities:
Accounts receivable, net
(55,472)
(50,666)
Receivables from related parties, net
(298)
28,224
Inventories
35
2,582
Prepaid expenses and other assets
7,613
9,947
Accounts payable
9,472
2,599
Accrued expenses and other liabilities
(20,777)
6,627
Income taxes payable
2,790
5,192
Net cash used in operating activities
(6,066)
(15,764)
Cash flows from investing activities:
Purchases of property and equipment
(9,099)
(4,474)
Proceeds from disposal of property and equipment
8,659
9,581
Net cash (used in) provided by investing activities
(440)
5,107
Cash flows from financing activities:
Borrowings on long-term debt
142,475
31,700
Repayments of long-term debt
(134,674)
(33,571)
Proceeds from sale-leaseback transaction
4,589
9,473
Payments on sale-leaseback transaction
(3,249)
(2,106)
Principal payments on financing leases and equipment financing notes
(1,753)
(1,716)
Net cash provided by financing activities
7,388
3,780
Effect of foreign exchange rate on cash
(164)
8
Net change in cash and cash equivalents
718
(6,869)
Cash and cash equivalents at beginning of period
9,899
14,822
Cash and cash equivalents at end of period
$ 10,617
$ 7,953
Supplemental disclosure of cash flow information:
Cash paid for interest
$ 6,316
$ 3,236
Cash paid for income taxes, net of refunds received
$ 97
$ 978
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable
$ 3,837
$ 2,028
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Three months ended September 30, 2022
Infrastructure
Well
Completion
Sand
Drilling
All Other
Eliminations
Total
Revenue from external customers
$ 33,296
$ 51,378
$ 12,910
$ 3,118
$ 6,500
$ —
$ 107,202
Intersegment revenues
—
154
—
—
468
(622)
—
Total revenue
33,296
51,532
12,910
3,118
6,968
(622)
107,202
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion
26,495
35,414
9,206
2,695
4,646
—
78,456
Intersegment cost of revenues
17
403
—
109
93
(622)
—
Total cost of revenue
26,512
35,817
9,206
2,804
4,739
(622)
78,456
Selling, general and administrative
4,968
2,390
1,076
305
946
—
9,685
Depreciation, depletion, amortization and accretion
3,969
4,772
2,865
1,598
2,638
—
15,842
Loss (gain) on disposal of assets
73
(339)
—
(286)
(47)
—
(599)
Operating (loss) income
(2,226)
8,892
(237)
(1,303)
(1,308)
—
3,818
Interest expense, net
2,047
531
212
154
318
—
3,262
Other (income), net
(10,304)
(345)
(3)
—
(337)
—
(10,989)
Income (loss) before income taxes
$ 6,031
$ 8,706
$ (446)
$ (1,457)
$ (1,289)
$ —
$ 11,545
Three months ended September 30, 2021
Infrastructure
Well
Completion
Sand
Drilling
All Other
Eliminations
Total
Revenue from external customers
$ 25,070
$ 22,702
$ 4,439
$ 1,184
$ 4,090
$ —
$ 57,485
Intersegment revenues
—
30
3,980
23
482
(4,515)
—
Total revenue
25,070
22,732
8,419
1,207
4,572
(4,515)
57,485
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion
21,827
16,941
9,368
1,566
3,882
—
53,584
Intersegment cost of revenues
71
4,388
—
—
56
(4,515)
—
Total cost of revenue
21,898
21,329
9,368
1,566
3,938
(4,515)
53,584
Selling, general and administrative
4,542
34,606
1,068
288
925
—
41,429
Depreciation, depletion, amortization and accretion
4,933
6,538
2,533
1,942
3,202
—
19,148
Loss (gain) on disposal of assets
33
(573)
(21)
(66)
(2,406)
—
(3,033)
Impairment of other long-lived assets
—
—
—
—
547
—
547
Operating loss
(6,336)
(39,168)
(4,529)
(2,523)
(1,634)
—
(54,190)
Interest expense, net
979
215
107
56
127
—
1,484
Other expense (income), net
(8,852)
1,328
(25)
—
(37)
—
(7,586)
Income (loss) before income taxes
$ 1,537
$ (40,711)
$ (4,611)
$ (2,579)
$ (1,724)
$ —
$ (48,088)
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
Gains on disposal of assets
(863)
(157)
(15)
—
(1,908)
—
(2,943)
Operating (loss) income
(4,027)
1,872
2,839
(2,151)
(457)
77
(1,847)
Interest expense, net
1,755
422
178
121
183
—
2,659
Other (income) expense, net
(10,062)
—
(4)
—
(78)
—
(10,144)
Income (loss) before income taxes
$ 4,280
$ 1,450
$ 2,665
$ (2,272)
$ (562)
$ 77
$ 5,638
Nine months ended September 30, 2022
Infrastructure
Well
Completion
Sand
Drilling
All Other
Eliminations
Total
Revenue from external customers
$ 81,892
$ 118,580
$ 35,098
$ 7,922
$ 15,686
$ —
$ 259,178
Intersegment revenues
—
643
2,450
22
1,044
(4,159)
—
Total revenue
81,892
119,223
37,548
7,944
16,730
(4,159)
259,178
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion
67,190
88,740
26,701
7,100
11,991
—
201,722
Intersegment cost of revenues
49
3,419
—
430
265
(4,163)
—
Total cost of revenue
67,239
92,159
26,701
7,530
12,256
(4,163)
201,722
Selling, general and administrative
14,056
6,314
2,774
874
2,542
—
26,560
Depreciation, depletion, amortization and accretion
12,495
17,963
6,717
4,929
8,381
—
50,485
Gain on disposal of assets
(795)
(547)
(90)
(286)
(2,020)
—
(3,738)
Operating income (loss)
(11,103)
3,334
1,446
(5,103)
(4,429)
4
(15,851)
Interest expense, net
5,345
1,324
552
379
670
—
8,270
Other (income) expense, net
(29,948)
(345)
(10)
—
128
—
(30,175)
Income (loss) before income taxes
$ 13,500
$ 2,355
$ 904
$ (5,482)
$ (5,227)
$ 4
$ 6,054
Nine months ended September 30, 2021
Infrastructure
Well Completion
Sand
Drilling
All Other
Eliminations
Total
Revenue from external customers
$ 73,690
$ 62,939
$ 20,031
$ 3,234
$ 11,836
$ —
$ 171,730
Intersegment revenues
—
120
3,980
54
1,804
(5,958)
—
Total revenue
73,690
63,059
24,011
3,288
13,640
(5,958)
171,730
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion
70,267
42,339
22,631
4,739
12,063
—
152,039
Intersegment cost of revenues
165
5,449
—
—
344
(5,958)
—
Total cost of revenue
70,432
47,788
22,631
4,739
12,407
(5,958)
152,039
Selling, general and administrative
13,900
47,111
4,108
1,105
3,089
—
69,313
Depreciation, depletion, amortization and accretion
17,501
19,668
7,059
6,185
10,146
—
60,559
Gain on disposal of assets
(255)
(648)
(41)
(192)
(3,496)
—
(4,632)
Impairment of other long-lived assets
—
—
—
—
547
—
547
Operating loss
(27,888)
(50,860)
(9,746)
(8,549)
(9,053)
—
(106,096)
Interest expense, net
2,312
688
291
177
410
—
3,878
Other (income) expense, net
2,983
1,844
(851)
(9)
560
—
4,527
Loss before income taxes
$ (33,183)
$ (53,392)
$ (9,186)
$ (8,717)
$ (10,023)
$ —
$ (114,501)
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, gains on disposal of assets, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, 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 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
Nine Months Ended
September 30,
June 30,
September 30,
Reconciliation of Adjusted EBITDA to net income (loss):
2022
2021
2022
2022
2021
Net income (loss)
$ 7,726
$ (40,901)
$ 1,703
$ (5,388)
$ (88,131)
Depreciation, depletion, amortization and accretion expense
15,842
19,148
17,476
50,485
60,559
Gains on disposal of assets
(599)
(3,033)
(2,943)
(3,738)
(4,632)
Impairment of other long-lived assets
—
547
—
—
547
Public offering costs
—
13
—
—
91
Stock based compensation
241
252
200
682
950
Interest expense, net
3,262
1,484
2,659
8,270
3,878
Other (income) expense, net
(10,989)
(7,586)
(10,144)
(30,174)
4,527
Provision (benefit) for income taxes
3,819
(7,187)
3,935
11,442
(26,370)
Interest on trade accounts receivable
10,468
7,963
10,160
30,490
25,138
Adjusted EBITDA
$ 29,770
$ (29,300)
$ 23,046
$ 62,069
$ (23,443)
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Infrastructure Services
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
Reconciliation of Adjusted EBITDA to net income (loss):
2022
2021
2022
2022
2021
Net income (loss)
$ 2,630
$ (2,409)
$ 571
$ 3,323
$ (30,721)
Depreciation and amortization expense
3,969
4,933
4,211
12,495
17,501
Losses (gains) on disposal of assets
73
33
(863)
(795)
(255)
Public offering costs
—
(7)
—
—
38
Stock based compensation
89
100
74
261
401
Interest expense
2,047
979
1,755
5,345
2,312
Other (income) expense, net
(10,304)
(8,852)
(10,061)
(29,948)
2,983
Provision (benefit) for income taxes
3,402
3,947
3,708
10,178
(2,463)
Interest on trade accounts receivable
10,468
9,290
10,160
30,490
26,980
Adjusted EBITDA
$ 12,374
$ 8,014
$ 9,555
$ 31,349
$ 16,776
Well Completion Services
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
Reconciliation of Adjusted EBITDA to net income (loss):
2022
2021
2022
2022
2021
Net income (loss)
$ 8,706
$ (40,712)
$ 1,450
$ 2,357
$ (53,392)
Depreciation and amortization expense
4,772
6,538
6,747
17,963
19,668
Gains on disposal of assets
(339)
(573)
(157)
(547)
(648)
Public offering costs
—
19
—
—
31
Stock based compensation
104
95
84
275
253
Interest expense
531
215
422
1,324
688
Other (income) expense, net
(345)
1,328
—
(345)
1,844
Interest on trade accounts receivable
—
(1,327)
—
—
(1,841)
Adjusted EBITDA
$ 13,429
$ (34,417)
$ 8,546
$ 21,027
$ (33,397)
Natural Sand Proppant Services
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
Reconciliation of Adjusted EBITDA to net (loss) income:
2022
2021
2022
2022
2021
Net (loss) income
$ (446)
$ (4,611)
$ 2,665
$ 904
$ (9,186)
Depreciation, depletion, amortization and accretion expense
2,865
2,533
2,058
6,717
7,059
Gains on disposal of assets
—
(21)
(15)
(90)
(41)
Public offering costs
—
—
—
—
12
Stock based compensation
30
32
26
90
163
Interest expense
212
107
178
552
291
Other income, net
(3)
(25)
(4)
(10)
(851)
Interest on trade accounts receivable
—
—
—
—
(1)
Adjusted EBITDA
$ 2,658
$ (1,985)
$ 4,908
$ 8,163
$ (2,554)
Drilling Services
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
Reconciliation of Adjusted EBITDA to net loss:
2022
2021
2022
2022
2021
Net loss
$ (1,457)
$ (2,579)
$ (2,272)
$ (5,482)
$ (8,717)
Depreciation expense
1,598
1,942
1,651
4,929
6,185
Gains on disposal of assets
(286)
(66)
—
(286)
(192)
Public offering costs
—
—
—
—
2
Stock based compensation
4
6
4
13
71
Interest expense
154
56
121
379
177
Other income, net
—
—
—
—
(9)
Adjusted EBITDA
$ 13
$ (641)
$ (496)
$ (447)
$ (2,483)
Other Services(a)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
Reconciliation of Adjusted EBITDA to net (loss) income:
2022
2021
2022
2022
2021
Net (loss) income
$ (1,707)
$ 9,409
$ (788)
$ (6,492)
$ 13,884
Depreciation, amortization and accretion expense
2,638
3,202
2,809
8,381
10,146
Gains on disposal of assets
(47)
(2,406)
(1,908)
(2,020)
(3,496)
Impairment of other long-lived assets
—
547
—
—
547
Public offering costs
—
1
—
—
8
Stock based compensation
14
19
12
43
62
Interest expense, net
318
127
183
670
410
Other (income) expense, net
(337)
(37)
(78)
128
560
Provision (benefit) for income taxes
417
(11,134)
226
1,264
(23,907)
Adjusted EBITDA
$ 1,296
$ (272)
$ 456
$ 1,974
$ (1,786)
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.
View original content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-reports-strong-third-quarter-2022-operational-and-financial-results-301661747.html
SOURCE Mammoth Energy Services, Inc.
Revenue Growth of 86% Year-over-Year and 20% Sequentially
OKLAHOMA CITY, Oct. 27, 2022 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported strong financial and operational results for the third quarter ended September 30, 2022.
Financial Overview for the Third Quarter 2022:
Total revenue was $107.2 million for the third quarter of 2022, as compared to $57.5 million for the same quarter last year and $89.7 million for the second quarter of 2022.
Net income for the third quarter of 2022 was $7.7 million, or $0.16 per share, as compared to a net loss of $40.9 million, or a $0.88 loss per share, for the same quarter last year, and net income of $1.7 million, or $0.04 per share, for the second quarter of 2022.
Adjusted EBITDA (as defined and reconciled below) was $29.8 million for the third quarter of 2022, as compared to ($29.3) million for the same quarter last year and $23.0 million for the second quarter of 2022.
Arty Straehla, Chief Executive Officer of Mammoth commented, "Our businesses exhibited strong performance in the third quarter with substantial revenue growth in all of our segments year-over-year, leading to significant net income and Adjusted EBITDA growth. We continue to experience strong demand environments across our three largest segments, Infrastructure Services, Well Completion Services and our Sand business.
"In our Infrastructure Services division, operational improvements are driving enhanced results and we continue to add crew capacity for a sector that has a healthy bidding environment. The need for seasonal storm restoration services as well as the overall infrastructure project opportunities supported by the historic investment in our Nation's infrastructure passed by the federal government last fall present continued prospects for growth in this business. Our Well Completion Services division continues to improve performance, generating strong growth both at the top and bottom line where the macro demand in the pressure pumping industry remains robust. We currently have four of our six pressure pumping spreads operating, which have full schedules through the end of the year, and we expect to add a fifth spread during the fourth quarter. We anticipate activating our sixth fleet in the first half of 2023. In addition, we have plans to upgrade one of our existing spreads to Tier 4, dual fuel. This would give us a total of three dual fuel fleets. The sand business also continues to maintain strong demand at increased prices. We believe this trend in sand demand will continue in the fourth quarter and into 2023. Across all our business segments, I am proud of our team's continued commitment, hard work and perseverance to manage through today's macro-economic climate relative to supply chain constrains and labor and inflationary challenges. We believe the future for Mammoth is bright and we remain committed to enhancing value for all of our stakeholders."
Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $33.3 million for the third quarter of 2022, as compared to $25.1 million for the same quarter last year and $25.6 million for the second quarter of 2022. The increase in revenue is primarily due to improved operational execution, coupled with an increase in crew count. Average crew count grew to 96 crews during the third quarter of 2022, as compared to 77 crews during the same quarter last year and 88 crews during the second quarter of 2022.
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $51.5 million on 1,897 stages for the third quarter of 2022, as compared to $22.7 million on 688 stages for the same quarter of 2021 and $43.8 million on 1,716 stages for the second quarter of 2022. On average, 3.5 of the Company's fleets were active for the third quarter of 2022, compared to an average utilization of 1.2 fleets during the same quarter last year and 3.5 fleets during the second quarter of 2022.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $12.9 million for the third quarter of 2022, as compared to $8.4 million for the same quarter last year and $15.5 million for the second quarter of 2022. In the third quarter of 2022, the Company sold approximately 341,000 tons of sand at an average sales price of $29.95 per ton, as compared to sales of approximately 315,000 tons of sand at an average sales price of $16.58 per ton during the same quarter last year. In the second quarter of 2022, sales were approximately 350,000 tons of sand at an average price of $26.86 per ton.
Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $3.1 million for the third quarter of 2022, as compared to $1.2 million for the same quarter last year and $2.0 million for the second 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 $7.0 million for the third quarter of 2022, as compared to $4.6 million for the same quarter last year and $5.0 million for the second quarter of 2022.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $9.7 million for the third quarter of 2022, as compared to $41.4 million for the same quarter last year and $8.2 million for the second quarter of 2022.
Following is a breakout of SG&A expense (in thousands):
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
2022 |
2021 |
2022 |
2022 |
2021 |
|||||
|
Cash expenses: |
|||||||||
|
Compensation and benefits |
$ 3,676 |
$ 3,353 |
$ 3,137 |
$ 9,796 |
$ 11,379 |
||||
|
Professional services(a) |
3,706 |
4,134 |
2,724 |
10,067 |
8,399 |
||||
|
Other(b) |
2,059 |
2,252 |
2,162 |
6,127 |
7,058 |
||||
|
Total cash SG&A expense |
9,441 |
9,739 |
8,023 |
25,990 |
26,836 |
||||
|
Non-cash expenses: |
|||||||||
|
Bad debt provision(c) |
3 |
31,449 |
(16) |
(112) |
41,650 |
||||
|
Stock based compensation |
241 |
241 |
199 |
682 |
827 |
||||
|
Total non-cash SG&A expense |
244 |
31,690 |
183 |
570 |
42,477 |
||||
|
Total SG&A expense |
$ 9,685 |
$ 41,429 |
$ 8,206 |
$ 26,560 |
$ 69,313 |
||||
|
a. |
Certain legal expenses totaling $0.4 million and $5.4 million were reclassified to Other, net for the three and nine months ended September 30, 2021, 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 nine months ended September 30, 2021 includes $41.2 million related to the settlement of our accounts with Gulfport Energy Corporation and its subsidiaries. |
SG&A expenses, as a percentage of total revenue, were 9% for the third quarter of 2022, as compared to 73% for the same quarter last year and 9% for the second quarter of 2022.
Liquidity
As of September 30, 2022, Mammoth had cash on hand of $10.6 million, outstanding borrowings under its revolving credit facility of $92.8 million and $6.9 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.1 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. As of September 30, 2022, Mammoth had total liquidity of $17.5 million.
As of October 26, 2022, Mammoth had cash on hand of $10.3 million and outstanding borrowings under its revolving credit facility of $89.7 million. As of October 26, 2022, the Company had $13.0 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.1 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity.
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, |
June 30, |
September 30, |
|||||||
|
2022 |
2021 |
2022 |
2022 |
2021 |
|||||
|
Infrastructure services(a) |
$ 225 |
$ 181 |
$ 200 |
$ 823 |
$ 474 |
||||
|
Well completion services(b) |
4,747 |
2,392 |
2,500 |
8,048 |
3,288 |
||||
|
Natural sand proppant services(c) |
34 |
16 |
— |
34 |
429 |
||||
|
Drilling services(d) |
33 |
4 |
12 |
47 |
42 |
||||
|
Other(e) |
53 |
172 |
161 |
275 |
337 |
||||
|
Eliminations |
38 |
— |
(87) |
(128) |
(96) |
||||
|
Total capital expenditures |
$ 5,130 |
$ 2,765 |
$ 2,786 |
$ 9,099 |
$ 4,474 |
||||
|
a. |
Capital expenditures primarily for truck, tooling and equipment purchases for the periods presented. |
|
b. |
Capital expenditures primarily for upgrades and maintenance 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, 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, October 27, 2022 at 4:00 p.m. Central time (5:00 p.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 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, 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, 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 (i) continue to comply with or, if applicable, obtain a waiver of forecasted or actual non-compliance with certain financial covenants from its lenders and comply with other terms and conditions under its amended revolving credit facility, as amended, (ii) extend or refinance our revolving credit facility at or prior to maturity on the terms acceptable to Mammoth or at all and (iii) meet its financial projections associated with reducing its debt; 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, |
||
|
2022 |
2021 |
|||
|
CURRENT ASSETS |
(in thousands) |
|||
|
Cash and cash equivalents |
$ 10,617 |
$ 9,899 |
||
|
Short-term investment |
— |
1,762 |
||
|
Accounts receivable, net |
462,995 |
407,550 |
||
|
Receivables from related parties, net |
386 |
88 |
||
|
Inventories |
8,331 |
8,366 |
||
|
Prepaid expenses |
4,862 |
12,381 |
||
|
Other current assets |
647 |
737 |
||
|
Total current assets |
487,838 |
440,783 |
||
|
Property, plant and equipment, net |
135,222 |
176,586 |
||
|
Sand reserves |
62,559 |
64,641 |
||
|
Operating lease right-of-use assets |
10,187 |
12,168 |
||
|
Intangible assets, net |
1,977 |
2,561 |
||
|
Goodwill |
11,717 |
11,717 |
||
|
Deferred income tax asset |
— |
8,094 |
||
|
Other non-current assets |
3,838 |
4,342 |
||
|
Total assets |
$ 713,338 |
$ 720,892 |
||
|
LIABILITIES AND EQUITY |
||||
|
CURRENT LIABILITIES |
||||
|
Accounts payable |
$ 49,262 |
$ 37,560 |
||
|
Accrued expenses and other current liabilities |
42,582 |
62,516 |
||
|
Current operating lease liability |
5,107 |
5,942 |
||
|
Current portion of long-term debt |
— |
1,468 |
||
|
Income taxes payable |
45,516 |
42,748 |
||
|
Total current liabilities |
142,467 |
150,234 |
||
|
Long-term debt, net of current portion |
92,776 |
85,240 |
||
|
Deferred income tax liabilities |
1,113 |
865 |
||
|
Long-term operating lease liability |
4,949 |
5,918 |
||
|
Asset retirement obligation |
3,936 |
3,720 |
||
|
Other long-term liabilities |
10,432 |
11,693 |
||
|
Total liabilities |
255,673 |
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 September 30, 2022 and December 31, 2021 |
473 |
467 |
||
|
Additional paid in capital |
538,897 |
538,221 |
||
|
Accumulated deficit |
(77,923) |
(72,535) |
||
|
Accumulated other comprehensive loss |
(3,782) |
(2,931) |
||
|
Total equity |
457,665 |
463,222 |
||
|
Total liabilities and equity |
$ 713,338 |
$ 720,892 |
||
|
MAMMOTH ENERGY SERVICES, INC. | |||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
2022 |
2021 |
2022 |
2022 |
2021 |
|||||
|
(in thousands, except per share amounts) |
|||||||||
|
REVENUE |
|||||||||
|
Services revenue |
$ 93,879 |
$ 52,417 |
$ 75,459 |
$ 223,005 |
$ 135,975 |
||||
|
Services revenue - related parties |
355 |
601 |
395 |
1,024 |
15,678 |
||||
|
Product revenue |
12,968 |
4,467 |
13,824 |
35,149 |
17,932 |
||||
|
Product revenue - related parties |
— |
— |
— |
— |
2,145 |
||||
|
Total revenue |
107,202 |
57,485 |
89,678 |
259,178 |
171,730 |
||||
|
COST AND EXPENSES |
|||||||||
|
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $12,968, $35,587, $15,404, $43,727 and $53,448, respectively, for the three months ended September 30, 2022,September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021) |
68,821 |
43,538 |
58,433 |
173,821 |
128,703 |
||||
|
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 September 30, 2022,September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021) |
142 |
181 |
128 |
405 |
397 |
||||
|
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,863, $4,667, $2,055, $6,711 and $7,051, respectively, for the three months ended September 30, 2022,September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021) |
9,493 |
9,865 |
10,225 |
27,496 |
22,939 |
||||
|
Selling, general and administrative |
9,685 |
41,429 |
8,206 |
26,560 |
68,928 |
||||
|
Selling, general and administrative - related parties |
— |
— |
— |
— |
385 |
||||
|
Depreciation, depletion, amortization and accretion |
15,842 |
19,148 |
17,476 |
50,485 |
60,559 |
||||
|
Gains on disposal of assets |
(599) |
(3,033) |
(2,943) |
(3,738) |
(4,632) |
||||
|
Impairment of other long-lived assets |
— |
547 |
— |
— |
547 |
||||
|
Total cost and expenses |
103,384 |
111,675 |
91,525 |
275,029 |
277,826 |
||||
|
Operating income (loss) |
3,818 |
(54,190) |
(1,847) |
(15,851) |
(106,096) |
||||
|
OTHER INCOME (EXPENSE) |
|||||||||
|
Interest expense, net |
(3,262) |
(1,484) |
(2,659) |
(8,270) |
(3,878) |
||||
|
Other income (expense), net |
10,989 |
7,586 |
10,144 |
30,175 |
(4,012) |
||||
|
Other expense, net - related parties |
— |
— |
— |
— |
(515) |
||||
|
Total other income (expense) |
7,727 |
6,102 |
7,485 |
21,905 |
(8,405) |
||||
|
Income (loss) before income taxes |
11,545 |
(48,088) |
5,638 |
6,054 |
(114,501) |
||||
|
Provision (benefit) for income taxes |
3,819 |
(7,187) |
3,935 |
11,442 |
(26,370) |
||||
|
Net income (loss) |
$ 7,726 |
$ (40,901) |
$ 1,703 |
$ (5,388) |
$ (88,131) |
||||
|
OTHER COMPREHENSIVE INCOME (LOSS) |
|||||||||
|
Foreign currency translation adjustment, net of tax of ($215), ($69), $0, $(215) and ($749), respectively, for the three months ended September 30, 2022, September 30, 2021 and June 30, 2022 and nine months ended September 30, 2022 and 2021) |
(601) |
(289) |
(448) |
(851) |
118 |
||||
|
Comprehensive income (loss) |
$ 7,125 |
$ (41,190) |
$ 1,255 |
$ (6,239) |
$ (88,013) |
||||
|
Net income (loss) per share (basic) |
$ 0.16 |
$ (0.88) |
$ 0.04 |
$ (0.11) |
$ (1.90) |
||||
|
Net income (loss) per share (diluted) |
$ 0.16 |
$ (0.88) |
$ 0.04 |
$ (0.11) |
$ (1.90) |
||||
|
Weighted average number of shares outstanding (basic) |
47,312 |
46,683 |
47,225 |
47,129 |
46,342 |
||||
|
Weighted average number of shares outstanding (diluted) |
47,843 |
46,683 |
47,634 |
47,129 |
46,342 |
||||
|
MAMMOTH ENERGY SERVICES, INC. | |||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
|
Nine Months Ended |
|||
|
September 30, |
|||
|
2022 |
2021 |
||
|
(in thousands) |
|||
|
Cash flows from operating activities: |
|||
|
Net loss |
$ (5,388) |
$ (88,131) |
|
|
Adjustments to reconcile net loss to cash used in operating activities: |
|||
|
Stock based compensation |
682 |
950 |
|
|
Depreciation, depletion, accretion and amortization |
50,485 |
60,559 |
|
|
Amortization of debt origination costs |
588 |
469 |
|
|
Bad debt (recoveries) expense |
(112) |
41,650 |
|
|
Gains on disposal of assets |
(3,738) |
(4,632) |
|
|
Gains from sales of equipment damaged or lost down-hole |
(607) |
— |
|
|
Impairment of other long-lived assets |
— |
547 |
|
|
Deferred income taxes |
8,557 |
(32,183) |
|
|
Other |
104 |
502 |
|
|
Changes in assets and liabilities: |
|||
|
Accounts receivable, net |
(55,472) |
(50,666) |
|
|
Receivables from related parties, net |
(298) |
28,224 |
|
|
Inventories |
35 |
2,582 |
|
|
Prepaid expenses and other assets |
7,613 |
9,947 |
|
|
Accounts payable |
9,472 |
2,599 |
|
|
Accrued expenses and other liabilities |
(20,777) |
6,627 |
|
|
Income taxes payable |
2,790 |
5,192 |
|
|
Net cash used in operating activities |
(6,066) |
(15,764) |
|
|
Cash flows from investing activities: |
|||
|
Purchases of property and equipment |
(9,099) |
(4,474) |
|
|
Proceeds from disposal of property and equipment |
8,659 |
9,581 |
|
|
Net cash (used in) provided by investing activities |
(440) |
5,107 |
|
|
Cash flows from financing activities: |
|||
|
Borrowings on long-term debt |
142,475 |
31,700 |
|
|
Repayments of long-term debt |
(134,674) |
(33,571) |
|
|
Proceeds from sale-leaseback transaction |
4,589 |
9,473 |
|
|
Payments on sale-leaseback transaction |
(3,249) |
(2,106) |
|
|
Principal payments on financing leases and equipment financing notes |
(1,753) |
(1,716) |
|
|
Net cash provided by financing activities |
7,388 |
3,780 |
|
|
Effect of foreign exchange rate on cash |
(164) |
8 |
|
|
Net change in cash and cash equivalents |
718 |
(6,869) |
|
|
Cash and cash equivalents at beginning of period |
9,899 |
14,822 |
|
|
Cash and cash equivalents at end of period |
$ 10,617 |
$ 7,953 |
|
|
Supplemental disclosure of cash flow information: |
|||
|
Cash paid for interest |
$ 6,316 |
$ 3,236 |
|
|
Cash paid for income taxes, net of refunds received |
$ 97 |
$ 978 |
|
|
Supplemental disclosure of non-cash transactions: |
|||
|
Purchases of property and equipment included in accounts payable |
$ 3,837 |
$ 2,028 |
|
|
MAMMOTH ENERGY SERVICES, INC. | |||||||
|
SEGMENT INCOME STATEMENTS | |||||||
|
(in thousands) | |||||||
|
Three months ended September 30, 2022 |
Infrastructure |
Well |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ 33,296 |
$ 51,378 |
$ 12,910 |
$ 3,118 |
$ 6,500 |
$ — |
$ 107,202 |
|
Intersegment revenues |
— |
154 |
— |
— |
468 |
(622) |
— |
|
Total revenue |
33,296 |
51,532 |
12,910 |
3,118 |
6,968 |
(622) |
107,202 |
|
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion |
26,495 |
35,414 |
9,206 |
2,695 |
4,646 |
— |
78,456 |
|
Intersegment cost of revenues |
17 |
403 |
— |
109 |
93 |
(622) |
— |
|
Total cost of revenue |
26,512 |
35,817 |
9,206 |
2,804 |
4,739 |
(622) |
78,456 |
|
Selling, general and administrative |
4,968 |
2,390 |
1,076 |
305 |
946 |
— |
9,685 |
|
Depreciation, depletion, amortization and accretion |
3,969 |
4,772 |
2,865 |
1,598 |
2,638 |
— |
15,842 |
|
Loss (gain) on disposal of assets |
73 |
(339) |
— |
(286) |
(47) |
— |
(599) |
|
Operating (loss) income |
(2,226) |
8,892 |
(237) |
(1,303) |
(1,308) |
— |
3,818 |
|
Interest expense, net |
2,047 |
531 |
212 |
154 |
318 |
— |
3,262 |
|
Other (income), net |
(10,304) |
(345) |
(3) |
— |
(337) |
— |
(10,989) |
|
Income (loss) before income taxes |
$ 6,031 |
$ 8,706 |
$ (446) |
$ (1,457) |
$ (1,289) |
$ — |
$ 11,545 |
|
Three months ended September 30, 2021 |
Infrastructure |
Well |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ 25,070 |
$ 22,702 |
$ 4,439 |
$ 1,184 |
$ 4,090 |
$ — |
$ 57,485 |
|
Intersegment revenues |
— |
30 |
3,980 |
23 |
482 |
(4,515) |
— |
|
Total revenue |
25,070 |
22,732 |
8,419 |
1,207 |
4,572 |
(4,515) |
57,485 |
|
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion |
21,827 |
16,941 |
9,368 |
1,566 |
3,882 |
— |
53,584 |
|
Intersegment cost of revenues |
71 |
4,388 |
— |
— |
56 |
(4,515) |
— |
|
Total cost of revenue |
21,898 |
21,329 |
9,368 |
1,566 |
3,938 |
(4,515) |
53,584 |
|
Selling, general and administrative |
4,542 |
34,606 |
1,068 |
288 |
925 |
— |
41,429 |
|
Depreciation, depletion, amortization and accretion |
4,933 |
6,538 |
2,533 |
1,942 |
3,202 |
— |
19,148 |
|
Loss (gain) on disposal of assets |
33 |
(573) |
(21) |
(66) |
(2,406) |
— |
(3,033) |
|
Impairment of other long-lived assets |
— |
— |
— |
— |
547 |
— |
547 |
|
Operating loss |
(6,336) |
(39,168) |
(4,529) |
(2,523) |
(1,634) |
— |
(54,190) |
|
Interest expense, net |
979 |
215 |
107 |
56 |
127 |
— |
1,484 |
|
Other expense (income), net |
(8,852) |
1,328 |
(25) |
— |
(37) |
— |
(7,586) |
|
Income (loss) before income taxes |
$ 1,537 |
$ (40,711) |
$ (4,611) |
$ (2,579) |
$ (1,724) |
$ — |
$ (48,088) |
|
Three months ended June 30, 2022 |
Infrastructure |
Well |
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 |
|
Gains on disposal of assets |
(863) |
(157) |
(15) |
— |
(1,908) |
— |
(2,943) |
|
Operating (loss) income |
(4,027) |
1,872 |
2,839 |
(2,151) |
(457) |
77 |
(1,847) |
|
Interest expense, net |
1,755 |
422 |
178 |
121 |
183 |
— |
2,659 |
|
Other (income) expense, net |
(10,062) |
— |
(4) |
— |
(78) |
— |
(10,144) |
|
Income (loss) before income taxes |
$ 4,280 |
$ 1,450 |
$ 2,665 |
$ (2,272) |
$ (562) |
$ 77 |
$ 5,638 |
|
Nine months ended September 30, 2022 |
Infrastructure |
Well |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ 81,892 |
$ 118,580 |
$ 35,098 |
$ 7,922 |
$ 15,686 |
$ — |
$ 259,178 |
|
Intersegment revenues |
— |
643 |
2,450 |
22 |
1,044 |
(4,159) |
— |
|
Total revenue |
81,892 |
119,223 |
37,548 |
7,944 |
16,730 |
(4,159) |
259,178 |
|
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion |
67,190 |
88,740 |
26,701 |
7,100 |
11,991 |
— |
201,722 |
|
Intersegment cost of revenues |
49 |
3,419 |
— |
430 |
265 |
(4,163) |
— |
|
Total cost of revenue |
67,239 |
92,159 |
26,701 |
7,530 |
12,256 |
(4,163) |
201,722 |
|
Selling, general and administrative |
14,056 |
6,314 |
2,774 |
874 |
2,542 |
— |
26,560 |
|
Depreciation, depletion, amortization and accretion |
12,495 |
17,963 |
6,717 |
4,929 |
8,381 |
— |
50,485 |
|
Gain on disposal of assets |
(795) |
(547) |
(90) |
(286) |
(2,020) |
— |
(3,738) |
|
Operating income (loss) |
(11,103) |
3,334 |
1,446 |
(5,103) |
(4,429) |
4 |
(15,851) |
|
Interest expense, net |
5,345 |
1,324 |
552 |
379 |
670 |
— |
8,270 |
|
Other (income) expense, net |
(29,948) |
(345) |
(10) |
— |
128 |
— |
(30,175) |
|
Income (loss) before income taxes |
$ 13,500 |
$ 2,355 |
$ 904 |
$ (5,482) |
$ (5,227) |
$ 4 |
$ 6,054 |
|
Nine months ended September 30, 2021 |
Infrastructure |
Well Completion |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ 73,690 |
$ 62,939 |
$ 20,031 |
$ 3,234 |
$ 11,836 |
$ — |
$ 171,730 |
|
Intersegment revenues |
— |
120 |
3,980 |
54 |
1,804 |
(5,958) |
— |
|
Total revenue |
73,690 |
63,059 |
24,011 |
3,288 |
13,640 |
(5,958) |
171,730 |
|
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion |
70,267 |
42,339 |
22,631 |
4,739 |
12,063 |
— |
152,039 |
|
Intersegment cost of revenues |
165 |
5,449 |
— |
— |
344 |
(5,958) |
— |
|
Total cost of revenue |
70,432 |
47,788 |
22,631 |
4,739 |
12,407 |
(5,958) |
152,039 |
|
Selling, general and administrative |
13,900 |
47,111 |
4,108 |
1,105 |
3,089 |
— |
69,313 |
|
Depreciation, depletion, amortization and accretion |
17,501 |
19,668 |
7,059 |
6,185 |
10,146 |
— |
60,559 |
|
Gain on disposal of assets |
(255) |
(648) |
(41) |
(192) |
(3,496) |
— |
(4,632) |
|
Impairment of other long-lived assets |
— |
— |
— |
— |
547 |
— |
547 |
|
Operating loss |
(27,888) |
(50,860) |
(9,746) |
(8,549) |
(9,053) |
— |
(106,096) |
|
Interest expense, net |
2,312 |
688 |
291 |
177 |
410 |
— |
3,878 |
|
Other (income) expense, net |
2,983 |
1,844 |
(851) |
(9) |
560 |
— |
4,527 |
|
Loss before income taxes |
$ (33,183) |
$ (53,392) |
$ (9,186) |
$ (8,717) |
$ (10,023) |
$ — |
$ (114,501) |
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, gains on disposal of assets, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, 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 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 |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
Reconciliation of Adjusted EBITDA to net income (loss): |
2022 |
2021 |
2022 |
2022 |
2021 |
||||
|
Net income (loss) |
$ 7,726 |
$ (40,901) |
$ 1,703 |
$ (5,388) |
$ (88,131) |
||||
|
Depreciation, depletion, amortization and accretion expense |
15,842 |
19,148 |
17,476 |
50,485 |
60,559 |
||||
|
Gains on disposal of assets |
(599) |
(3,033) |
(2,943) |
(3,738) |
(4,632) |
||||
|
Impairment of other long-lived assets |
— |
547 |
— |
— |
547 |
||||
|
Public offering costs |
— |
13 |
— |
— |
91 |
||||
|
Stock based compensation |
241 |
252 |
200 |
682 |
950 |
||||
|
Interest expense, net |
3,262 |
1,484 |
2,659 |
8,270 |
3,878 |
||||
|
Other (income) expense, net |
(10,989) |
(7,586) |
(10,144) |
(30,174) |
4,527 |
||||
|
Provision (benefit) for income taxes |
3,819 |
(7,187) |
3,935 |
11,442 |
(26,370) |
||||
|
Interest on trade accounts receivable |
10,468 |
7,963 |
10,160 |
30,490 |
25,138 |
||||
|
Adjusted EBITDA |
$ 29,770 |
$ (29,300) |
$ 23,046 |
$ 62,069 |
$ (23,443) |
||||
|
MAMMOTH ENERGY SERVICES, INC. | |||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||
|
Infrastructure Services | |||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
Reconciliation of Adjusted EBITDA to net income (loss): |
2022 |
2021 |
2022 |
2022 |
2021 |
||||
|
Net income (loss) |
$ 2,630 |
$ (2,409) |
$ 571 |
$ 3,323 |
$ (30,721) |
||||
|
Depreciation and amortization expense |
3,969 |
4,933 |
4,211 |
12,495 |
17,501 |
||||
|
Losses (gains) on disposal of assets |
73 |
33 |
(863) |
(795) |
(255) |
||||
|
Public offering costs |
— |
(7) |
— |
— |
38 |
||||
|
Stock based compensation |
89 |
100 |
74 |
261 |
401 |
||||
|
Interest expense |
2,047 |
979 |
1,755 |
5,345 |
2,312 |
||||
|
Other (income) expense, net |
(10,304) |
(8,852) |
(10,061) |
(29,948) |
2,983 |
||||
|
Provision (benefit) for income taxes |
3,402 |
3,947 |
3,708 |
10,178 |
(2,463) |
||||
|
Interest on trade accounts receivable |
10,468 |
9,290 |
10,160 |
30,490 |
26,980 |
||||
|
Adjusted EBITDA |
$ 12,374 |
$ 8,014 |
$ 9,555 |
$ 31,349 |
$ 16,776 |
||||
|
Well Completion Services | |||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
Reconciliation of Adjusted EBITDA to net income (loss): |
2022 |
2021 |
2022 |
2022 |
2021 |
||||
|
Net income (loss) |
$ 8,706 |
$ (40,712) |
$ 1,450 |
$ 2,357 |
$ (53,392) |
||||
|
Depreciation and amortization expense |
4,772 |
6,538 |
6,747 |
17,963 |
19,668 |
||||
|
Gains on disposal of assets |
(339) |
(573) |
(157) |
(547) |
(648) |
||||
|
Public offering costs |
— |
19 |
— |
— |
31 |
||||
|
Stock based compensation |
104 |
95 |
84 |
275 |
253 |
||||
|
Interest expense |
531 |
215 |
422 |
1,324 |
688 |
||||
|
Other (income) expense, net |
(345) |
1,328 |
— |
(345) |
1,844 |
||||
|
Interest on trade accounts receivable |
— |
(1,327) |
— |
— |
(1,841) |
||||
|
Adjusted EBITDA |
$ 13,429 |
$ (34,417) |
$ 8,546 |
$ 21,027 |
$ (33,397) |
||||
|
Natural Sand Proppant Services | |||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
Reconciliation of Adjusted EBITDA to net (loss) income: |
2022 |
2021 |
2022 |
2022 |
2021 |
||||
|
Net (loss) income |
$ (446) |
$ (4,611) |
$ 2,665 |
$ 904 |
$ (9,186) |
||||
|
Depreciation, depletion, amortization and accretion expense |
2,865 |
2,533 |
2,058 |
6,717 |
7,059 |
||||
|
Gains on disposal of assets |
— |
(21) |
(15) |
(90) |
(41) |
||||
|
Public offering costs |
— |
— |
— |
— |
12 |
||||
|
Stock based compensation |
30 |
32 |
26 |
90 |
163 |
||||
|
Interest expense |
212 |
107 |
178 |
552 |
291 |
||||
|
Other income, net |
(3) |
(25) |
(4) |
(10) |
(851) |
||||
|
Interest on trade accounts receivable |
— |
— |
— |
— |
(1) |
||||
|
Adjusted EBITDA |
$ 2,658 |
$ (1,985) |
$ 4,908 |
$ 8,163 |
$ (2,554) |
||||
|
Drilling Services | |||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
Reconciliation of Adjusted EBITDA to net loss: |
2022 |
2021 |
2022 |
2022 |
2021 |
||||
|
Net loss |
$ (1,457) |
$ (2,579) |
$ (2,272) |
$ (5,482) |
$ (8,717) |
||||
|
Depreciation expense |
1,598 |
1,942 |
1,651 |
4,929 |
6,185 |
||||
|
Gains on disposal of assets |
(286) |
(66) |
— |
(286) |
(192) |
||||
|
Public offering costs |
— |
— |
— |
— |
2 |
||||
|
Stock based compensation |
4 |
6 |
4 |
13 |
71 |
||||
|
Interest expense |
154 |
56 |
121 |
379 |
177 |
||||
|
Other income, net |
— |
— |
— |
— |
(9) |
||||
|
Adjusted EBITDA |
$ 13 |
$ (641) |
$ (496) |
$ (447) |
$ (2,483) |
||||
|
Other Services(a) | |||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
|||||||
|
Reconciliation of Adjusted EBITDA to net (loss) income: |
2022 |
2021 |
2022 |
2022 |
2021 |
||||
|
Net (loss) income |
$ (1,707) |
$ 9,409 |
$ (788) |
$ (6,492) |
$ 13,884 |
||||
|
Depreciation, amortization and accretion expense |
2,638 |
3,202 |
2,809 |
8,381 |
10,146 |
||||
|
Gains on disposal of assets |
(47) |
(2,406) |
(1,908) |
(2,020) |
(3,496) |
||||
|
Impairment of other long-lived assets |
— |
547 |
— |
— |
547 |
||||
|
Public offering costs |
— |
1 |
— |
— |
8 |
||||
|
Stock based compensation |
14 |
19 |
12 |
43 |
62 |
||||
|
Interest expense, net |
318 |
127 |
183 |
670 |
410 |
||||
|
Other (income) expense, net |
(337) |
(37) |
(78) |
128 |
560 |
||||
|
Provision (benefit) for income taxes |
417 |
(11,134) |
226 |
1,264 |
(23,907) |
||||
|
Adjusted EBITDA |
$ 1,296 |
$ (272) |
$ 456 |
$ 1,974 |
$ (1,786) |
||||
|
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. |
View original content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-reports-strong-third-quarter-2022-operational-and-financial-results-301661747.html
SOURCE Mammoth Energy Services, Inc.