Mammoth Energy Service, Inc. ("Mammoth" or the "Company")
(NASDAQ:TUSK) today reported financial and operational results for
the three months ended March 31, 2017. Key information related
to Mammoth for the reporting periods is as follows:
Key Highlights for First Quarter 2017:
- Total revenue was $74.4 million for the three months ended
March 31, 2017, up 116% from $34.5 million for the three
months ended March 31, 2016.
- Net loss for the three months ended March 31, 2017 was
$4.9 million, an improvement of $16.2 million from a net loss of
$21.1 million for the three months ended March 31, 2016.
Mammoth reported adjusted EBITDA of $11.1 million and $(1.6)
million for the three months ended March 31, 2017 and 2016,
respectively.
- Re-staffed and began operating our third pressure pumping fleet
in the Northeast in March 2017 and expect that we will start up our
fourth fleet in the SCOOP/STACK on June 1, 2017.
- Acquisitions of Taylor Frac and the Chieftain Sand assets are
both on track to close in 2Q. Once the expansion of the
Taylor facility to 1.75 million tons per annum (Mtpa) of capacity
is completed later this year, Mammoth will be capable of processing
~4 Mtpa of high quality frac sand in direct support of our pressure
pumping fleets with estimated reserves of 67 million tons.
- Our liquidity at March 31, 2017 was approximately $156
million, comprised of cash on hand of $12.3 million and an undrawn
revolving credit facility with a borrowing base of $144.1 million.
We anticipate our borrowing base to grow once we close the pending
acquisitions of Taylor Frac, Stingray Cementing, Stingray Energy
Services and Chieftain Sand assets and our fourth, fifth and sixth
fleets begin operating.
Adjusted EBITDA is a non-GAAP financial measure. Reconciliations
of this measure to net income (loss), the most comparable financial
measures calculated in accordance with generally accepted
accounting principles ("GAAP"), are provided on pages 8 - 10 of
this release.
Arty Straehla, Mammoth's Chief Executive Officer, stated,
“Mammoth posted another solid quarter generating $11.1 million in
EBITDA as we re-staffed our third fleet in the Northeast and moved
towards a June first startup of our fourth fleet in the
SCOOP/STACK. Upon the closing of the pending acquisitions of Taylor
Frac and the Chieftain Sand assets we will add significant sand
reserves and processing capacity, which will further differentiate
us from our peers as a fully integrated completion company, and
will ensure a stable sand supply for our pressure pumping fleets.
Demand for our pressure pumping fleets remains high with our frac
calendar fully booked into the fourth quarter of 2017. Given the
increase in the land rig count so far this year, we feel that the
pressure pumping market is still undersupplied despite the recent
reactivations, which should allow for further price increases as we
progress throughout the remainder of the year and into 2018."
Pressure Pumping Services
Mammoth's pressure pumping segment contributed revenues of $40.6
million on 860 stages for the three months ended March 31,
2017 compared to $12.3 million on 204 stages for the three months
ended March 31, 2016, increases of 230% and 322%,
respectively. Utilization was 63% for the three months ended
March 31, 2017, on three active spreads, as compared to 21%
for the three months ended March 31, 2016, on two active
spreads.
During 1Q 2017 we re-activated our third frac spread in the
Utica which drove a 13% increase in stage count sequentially,
despite a shift to higher sand loadings and normal winter weather.
Demand remains strong with our frac calendar fully booked into 4Q
in both the Utica and Mid-Continent. A majority of the
pressure pumping equipment ordered in November has already been
received and we expect to commence our initial job in the SCOOP on
June 1, 2017.
Well Services
Mammoth's well services segment contributed revenues of $3.3
million for the three months ended March 31, 2017 compared to
$2.7 million for the three months ended March 31, 2016, an
increase of 22%. Our coil tubing services accounted for $0.6
million, or 100% of our operating division increase, as a result of
an increase in average day rates from approximately $19,900 for the
three months ended March 31, 2016 to approximately $22,100 for the
three months ended March 31, 2017. Our flowback services remained
consistent period over period.
Natural Sand Proppant Production
Mammoth's natural sand proppant ("sand") segment contributed
revenues of $14.2 million for the three months ended March 31,
2017 compared to $5.1 million for the three months ended
March 31, 2016, an increase of 178%. The Company sold 227,840
and 66,500 tons of sand for the three months ended March 31,
2017 and 2016, respectively.
The average FOB mine gate price increased to $35.18 per ton in
1Q 2017, up 24% sequentially as industry activity increased and the
demand for frac sand remained strong. We continue to make progress
on the closing of the announced acquisitions of Taylor Frac and the
Chieftain Sand assets with both transactions expected to be
completed by late 2Q. The expansion of the Taylor Frac facility has
begun with the expectation of increasing capacity to 1.75 Mtpa (up
from 0.7 Mtpa) by year-end 2017.
Contract Land and Directional Drilling
Services
Mammoth's contract land and directional drilling ("drilling")
segment contributed revenues of $10.8 million for the three months
ended March 31, 2017 compared to $6.4 million for the three
months ended March 31, 2016, an increase of 69%. The increase
in revenues resulted primarily from increased utilization and day
rates for both land rigs and directional drilling services.
We performed upgrades on two of our horizontal rigs in 1Q
including new high pressure fluid ends and electrical upgrades to
make them more marketable in today environment. Both of these
rigs are expected to demand higher day rates as a result of the
upgrades. Four horizontal rigs on average operated in 1Q 2017, with
five horizontal rigs operating today and the expectation of another
one to two of our horizontal rigs to begin operating in the coming
weeks. In addition, we expect one of our vertical rigs to begin
operating in the coming weeks drilling saltwater disposal
wells.
Other Energy Services
Mammoth's other energy services segment contributed revenues of
$5.5 million and $8.0 million for the three months ended
March 31, 2017 and 2016, respectively. The decrease was
primarily driven by decreased occupancy levels.
Selling, General and Administrative
Expenses
Selling, general and administrative ("SG&A") expenses
increased by 91% to $6.2 million from $3.3 million for the three
months ended March 31, 2017 and 2016, respectively. The
increase was primarily attributable to increased compensation and
benefits along with increased professional service charges.
SG&A expenses, as a percentage of total revenue, decreased to
8% in the first quarter of 2017 as compared to 10% during the first
quarter of 2016.
Liquidity
At March 31, 2017, our revolving credit facility was
undrawn, leaving an aggregate of $144.1 million of available
borrowing capacity under this facility, and we had $12.3 million of
cash on hand. We anticipate our borrowing base to grow once we
close the pending acquisitions of Taylor Frac, Stingray Cementing,
Stingray Energy Services and Chieftain Sand and our fourth, fifth
and sixth fleets begin operating.
Capital Expenditures
Capital expenditures totaled $30.9 million and $0.5 million for
the three months ended March 31, 2017 and 2016, respectively.
Approximately $29 Million of the 1Q 2017 capex expense was related
to the receipt of pressure pumping equipment ordered in November
2016, with roughly $2 million spent to upgrade two of our land
rigs.
Explanatory Note Regarding Financial
Information
The historical financial information for periods prior to
October 12, 2016, contained in this release relates to Mammoth
Energy Partners LP, a Delaware limited partnership (the
"Partnership"). On October 12, 2016, the Partnership was converted
into a Delaware limited liability company named Mammoth Energy
Partners LLC ("Mammoth LLC"), and then each member of Mammoth LLC
contributed all of its membership interests in Mammoth LLC to the
Company. Prior to the conversion and the contribution, the Company
was a wholly-owned subsidiary of the Partnership. Following the
conversion and the contribution, Mammoth LLC (as the converted
successor to the Partnership) became a wholly-owned subsidiary of
the Company.
On October 13, 2016, Mammoth priced 7,750,000 shares of its
common stock in its initial public offering (the "IPO") at a price
to the public of $15.00 per share and, on October 14, 2016,
Mammoth’s common stock began trading on The Nasdaq Global Select
Market under the symbol “TUSK.” On October 19, 2016, Mammoth closed
its IPO. Unless the context otherwise requires, references in this
release to Mammoth or the Company, when used in a historical
context for periods prior to October 12, 2016 refer to the
Partnership and its subsidiaries. References in this release to
Mammoth or the Company, when used for periods beginning on or after
October 12, 2016 refer to Mammoth and its subsidiaries.
The financial information contained in this release should be
read in conjunction with the financial information contained in
Mammoth’s Annual Report filed on Form 10-K with the Securities and
Exchange Commission ("SEC") on February 24, 2017.
The Company's Chief Executive Officer and Chief Financial
Officer comprise the Company's Chief Operating Decision Maker
function ("CODM"). Segment information is prepared on the same
basis that our CODM manages the segments, evaluates the segment
financial statements, and makes key operating and resource
utilization decisions. Segment evaluation is determined on a
quantitative basis based on a function of net income (loss) before
income taxes prior to depreciation and amortization, impairment of
long-lived assets, acquisition related costs, one-time compensation
charges associated with the IPO, equity based compensation,
interest income, interest expense and other (income) expense, net
(which is comprised of the (gain) loss on disposal of long-lived
assets) as well as a qualitative basis, such as nature of the
product and service offerings and types of customers.
Based on the CODM's assessment, effective December 31, 2016, the
Company updated the reportable segments to align with its new CODM
designated reporting structure and business activities. The Company
now has five segments consisting of pressure pumping services, well
services, natural sand proppant, contract land and directional
drilling services and other energy services. Prior to this change,
the reportable segments were comprised of four segments for
financial reporting purposes: completion and production services,
completion and production - natural sand proppant, land and
directional drilling services and remote accommodation services. We
have conformed our presentation for prior periods to reflect this
new segment presentation.
Conference Call Information
Mammoth will host a conference call on Thursday, May 4, 2017 at
10:00 a.m. CST to discuss its first quarter 2017 financial and
operational results. The telephone number to access the conference
call is 844-265-1561 or international dial in 216-562-0385. The
conference ID for the call is 12889843. Mammoth encourages
those who would like to participate in the call to place
calls between 9:50 a.m. and 10:00 a.m. CST.
The conference call will also be webcast live on
www.mammothenergy.com in the “investors” section.
About Mammoth Energy Services,
Inc.
Mammoth is an integrated, growth-oriented oilfield service
company serving companies engaged in the exploration and
development of North American onshore unconventional oil and
natural gas reserves. Mammoth’s suite of services includes pressure
pumping services, well services, natural sand proppant services,
contract land and directional drilling services and other energy
services. Other energy services currently consists primarily of
remote accommodation services. For additional information about
Mammoth, please visit our website at www.mammothenergy.com, where
we routinely post announcements, updates, events, investor
information and presentations and recent news releases. Information
on our website is not part of this news release.
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. All statements, other than statements of historical facts
that address activities, events or developments that we expect,
believe or anticipate 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 our 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 our
existing operations, experience, and perception of historical
trends, current conditions, anticipated future developments and
their effect on us, 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, our forward-looking statements are
subject to significant risks and uncertainties, including those
described in our Annual Report filed on Form 10-K filed with the
SEC on February 24, 2017 and our subsequent filings we make with
the SEC, including those relating to our pending acquisitions, many
of which are beyond our control, which may cause actual results to
differ materially from our historical experience and our 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, risks
relating to economic conditions; volatility of crude oil and
natural gas commodity prices; delays in or failure of delivery of
current or future orders of specialized equipment; the loss of or
interruption in operations of one or more key suppliers or
customers; oil and gas market conditions; the effects of government
regulation, permitting and other legal requirements, including new
legislation or regulation of hydraulic fracturing; operating risks;
the adequacy of our capital resources and liquidity; weather;
litigation; competition in the oil and natural gas industry; and
costs and availability of resources.
Readers 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. |
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|
|
|
|
|
ASSETS |
|
March 31, |
|
December 31, |
|
|
2017 |
|
2016 |
CURRENT ASSETS |
|
|
|
|
Cash and
cash equivalents |
|
$ |
12,278,120 |
|
|
$ |
28,693,985 |
|
Accounts
receivable, net |
|
24,973,332 |
|
|
20,602,962 |
|
Receivables from related parties |
|
33,141,299 |
|
|
28,059,565 |
|
Inventories |
|
4,922,627 |
|
|
4,355,088 |
|
Prepaid
expenses |
|
3,402,022 |
|
|
4,254,148 |
|
Other
current assets |
|
1,182,058 |
|
|
391,599 |
|
Total
current assets |
|
79,899,458 |
|
|
86,357,347 |
|
|
|
|
|
|
Property, plant and
equipment, net |
|
244,021,697 |
|
|
221,247,228 |
|
Intangible assets, net
- customer relationships |
|
13,859,772 |
|
|
15,949,772 |
|
Intangible assets, net
- trade names |
|
5,439,307 |
|
|
5,617,057 |
|
Goodwill |
|
86,043,148 |
|
|
86,043,148 |
|
Other non-current
assets |
|
5,239,582 |
|
|
5,339,283 |
|
Total
assets |
|
$ |
434,502,964 |
|
|
$ |
420,553,835 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
Accounts
payable |
|
$ |
37,237,976 |
|
|
$ |
18,480,325 |
|
Payables
to related parties |
|
4,921,129 |
|
|
2,434,031 |
|
Accrued
expenses and other current liabilities |
|
8,825,877 |
|
|
8,396,968 |
|
Income
taxes payable |
|
— |
|
|
28,156 |
|
Total
current liabilities |
|
50,984,982 |
|
|
29,339,480 |
|
|
|
|
|
|
Long-term debt |
|
— |
|
|
— |
|
Deferred income
taxes |
|
43,881,012 |
|
|
47,670,789 |
|
Other liabilities |
|
2,733,863 |
|
|
2,501,886 |
|
Total
liabilities |
|
97,599,857 |
|
|
79,512,155 |
|
|
|
|
|
|
EQUITY |
|
|
|
|
Equity: |
|
|
|
|
Common
stock, $0.01 par value, 200,000,000 shares authorized, 37,500,000
issued and outstanding at March 31, 2017 and December 31,
2016. |
|
375,000 |
|
|
375,000 |
|
Additional paid in capital |
|
400,775,752 |
|
|
400,205,921 |
|
Accumulated deficit |
|
(61,259,392 |
) |
|
(56,322,878 |
) |
Accumulated other comprehensive loss |
|
(2,988,253 |
) |
|
(3,216,363 |
) |
Total
equity |
|
336,903,107 |
|
|
341,041,680 |
|
Total
liabilities and equity |
|
$ |
434,502,964 |
|
|
$ |
420,553,835 |
|
MAMMOTH ENERGY PARTNERS LP |
|
|
|
CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE
(LOSS) INCOME (unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
REVENUE |
|
|
|
|
Services
revenue |
|
$ |
27,091,882 |
|
|
$ |
28,236,482 |
|
Services
revenue - related parties |
|
33,132,571 |
|
|
1,156,815 |
|
Product
revenue |
|
2,615,209 |
|
|
735,453 |
|
Product
revenue - related parties |
|
11,576,151 |
|
|
4,374,754 |
|
Total Revenue |
|
74,415,813 |
|
|
34,503,504 |
|
|
|
|
|
|
COST AND EXPENSES |
|
|
|
|
Services
cost of revenue (1) |
|
45,460,804 |
|
|
26,103,641 |
|
Services
cost of revenue - related parties |
|
494,345 |
|
|
2,835,402 |
|
Product
cost of revenue (2) |
|
5,376,897 |
|
|
3,158,632 |
|
Product
cost of revenue - related parties |
|
7,554,380 |
|
|
799,545 |
|
Selling,
general and administrative |
|
5,844,093 |
|
|
3,110,197 |
|
Selling,
general and administrative - related parties |
|
377,717 |
|
|
144,869 |
|
Depreciation and amortization |
|
16,893,777 |
|
|
17,413,591 |
|
Impairment of long-lived assets |
|
— |
|
|
— |
|
Total cost and
expenses |
|
82,002,013 |
|
|
53,565,877 |
|
Operating loss |
|
(7,586,200 |
) |
|
(19,062,373 |
) |
|
|
|
|
|
OTHER (EXPENSE)
INCOME |
|
|
|
|
Interest
expense |
|
(286,338 |
) |
|
(1,191,895 |
) |
Other,
net |
|
(170,041 |
) |
|
18,194 |
|
Total other
expense |
|
(456,379 |
) |
|
(1,173,701 |
) |
Loss before income
taxes |
|
(8,042,579 |
) |
|
(20,236,074 |
) |
(Benefit) provision for
income taxes |
|
(3,106,065 |
) |
|
894,360 |
|
Net loss |
|
$ |
(4,936,514 |
) |
|
$ |
(21,130,434 |
) |
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS |
|
|
|
|
Foreign
currency translation adjustment (3) |
|
228,110 |
|
|
1,975,351 |
|
Comprehensive loss |
|
$ |
(4,708,404 |
) |
|
$ |
(19,155,083 |
) |
|
|
|
|
|
Net loss per share
(basic and diluted) |
|
$ |
(0.13 |
) |
|
$ |
(0.70 |
) |
Weighted average number
of shares outstanding |
|
37,500,000 |
|
|
30,000,000 |
|
|
|
|
|
|
(1) Exclusive of
depreciation and amortization |
|
15,837,735 |
|
|
16,348,075 |
|
(2) Exclusive of
depreciation and amortization |
|
1,018,241 |
|
|
1,029,201 |
|
(3) Net of tax |
|
20,143 |
|
|
— |
|
MAMMOTH ENERGY SERVICES, INC. |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Cash flows from
operating activities |
|
|
|
|
Net
loss |
|
$ |
(4,936,514 |
) |
|
$ |
(21,130,434 |
) |
Adjustments to reconcile net loss to cash provided by operating
activities: |
|
|
|
|
Equity
based compensation |
|
569,831 |
|
|
— |
|
Depreciation and amortization |
|
16,893,777 |
|
|
17,413,591 |
|
Amortization of coil tubing strings |
|
492,409 |
|
|
551,300 |
|
Amortization of debt origination costs |
|
99,701 |
|
|
99,701 |
|
Bad debt
expense |
|
(40,446 |
) |
|
23,543 |
|
Loss
(gain) on disposal of property and equipment |
|
(79,408 |
) |
|
(21,000 |
) |
Deferred
income taxes |
|
(3,801,212 |
) |
|
93,451 |
|
Changes
in assets and liabilities: |
|
|
|
|
Accounts
receivable, net |
|
(4,282,133 |
) |
|
(1,854,385 |
) |
Receivables from related parties |
|
(5,081,734 |
) |
|
19,802,936 |
|
Inventories |
|
(1,059,948 |
) |
|
(162,003 |
) |
Prepaid
expenses and other assets |
|
62,571 |
|
|
(4,530,288 |
) |
Accounts
payable |
|
12,185,209 |
|
|
(3,123,148 |
) |
Payables
to related parties |
|
2,487,033 |
|
|
1,393,117 |
|
Accrued
expenses and other liabilities |
|
658,419 |
|
|
12,100,124 |
|
Income
taxes payable |
|
(28,156 |
) |
|
(26,912 |
) |
Net cash provided by
operating activities |
|
14,139,399 |
|
|
20,629,593 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Purchases
of property and equipment |
|
(30,935,179 |
) |
|
(534,525 |
) |
Proceeds
from disposal of property and equipment |
|
369,258 |
|
|
34,863 |
|
Net cash used in
investing activities |
|
(30,565,921 |
) |
|
(499,662 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Borrowings from lines of credit |
|
— |
|
|
4,800,000 |
|
Repayments of lines of credit |
|
— |
|
|
(14,299,772 |
) |
Net cash used in
financing activities |
|
— |
|
|
(9,499,772 |
) |
Effect of foreign
exchange rate on cash |
|
10,657 |
|
|
260,074 |
|
Net (decrease) increase
in cash and cash equivalents |
|
(16,415,865 |
) |
|
10,890,233 |
|
Cash and cash
equivalents at beginning of period |
|
28,693,985 |
|
|
3,074,072 |
|
Cash and cash
equivalents at end of period |
|
$ |
12,278,120 |
|
|
$ |
13,964,305 |
|
|
|
|
|
|
Supplemental disclosure
of cash flow information: |
|
|
|
|
Cash paid
for interest |
|
$ |
186,584 |
|
|
$ |
1,138,550 |
|
Cash paid
for income taxes |
|
$ |
700,825 |
|
|
$ |
934,262 |
|
Supplemental disclosure
of non-cash transactions: |
|
|
|
|
Purchases
of property and equipment included in trade accounts payable |
|
$ |
9,346,077 |
|
|
$ |
597,885 |
|
Adjusted EBITDA
"Adjusted EBITDA" is a supplemental non-GAAP financial measure
that is used by management and external users of our financial
statements, such as industry analysts, investors, lenders and
rating agencies. We define Adjusted EBITDA as net income (loss)
before depreciation and amortization, acquisition related costs,
equity based compensation, interest expense, other (income)
expense, net (which is comprised of the (gain) or loss on disposal
of long-lived assets) and provision (benefit) for income taxes. We
exclude the items listed above from net income in arriving at
Adjusted EBITDA because these amounts can vary substantially from
company to company within our 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 our
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, none of which are components of Adjusted
EBITDA. Our computations of Adjusted EBITDA may not be comparable
to other similarly titled measure of other companies. We believe
that Adjusted EBITDA is a widely followed measure of operating
performance that:
- is widely used by investors in the oilfield services industry
to measure a company’s operating performance without regard to
items excluded from the calculation of such measure, which can vary
substantially from company to company depending upon accounting
methods, book value of assets, capital structure and the method by
which assets were acquired, among other factors;
- may also be used by investors to measure our ability to meet
debt service requirements because this measure
- is a financial measurement that is used by rating agencies,
lenders and other parties to evaluate our creditworthiness;
and
- is used by our management for various purposes, including as a
measure of performance of our operating entities and as a basis for
strategic planning and forecasting.
There are significant limitations to using Adjusted EBITDA as a
measure of performance, including the inability to analyze the
effect of certain recurring and non-recurring items that materially
affect our net income or loss. Additionally, because Adjusted
EBITDA excludes some, but not all, items that affect net income and
is defined differently by different companies in our industry, our
definition of Adjusted EBITDA may not be comparable to similarly
titled measures of other companies.
MAMMOTH ENERGY SERVICES,
INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The following tables also provide a reconciliation of Adjusted
EBITDA to the GAAP financial measure of net income or loss for each
of our operating segments.
Consolidated
|
|
Three Months Ended March 31, |
Reconciliation
of Adjusted EBITDA to net income (loss): |
|
2017 |
|
2016 |
Net loss |
|
$ |
(4,936,514 |
) |
|
$ |
(21,130,434 |
) |
Depreciation and
amortization expense |
|
16,893,777 |
|
|
17,413,591 |
|
Acquisition related
costs |
|
1,246,564 |
|
|
— |
|
Equity based
compensation |
|
569,831 |
|
|
— |
|
Interest expense |
|
286,338 |
|
|
1,191,895 |
|
Other (income) expense,
net |
|
170,041 |
|
|
(18,194 |
) |
Provision (benefit) for
income taxes |
|
(3,106,065 |
) |
|
894,360 |
|
Adjusted EBITDA |
|
$ |
11,123,972 |
|
|
$ |
(1,648,782 |
) |
Pressure Pumping Services
|
|
Three Months Ended March 31, |
Reconciliation
of Adjusted EBITDA to net income (loss): |
|
2017 |
|
2016 |
Net income (loss) |
|
$ |
787,705 |
|
|
$ |
(11,654,952 |
) |
Depreciation and
amortization expense |
|
9,157,893 |
|
|
8,955,217 |
|
Acquisition related
costs |
|
— |
|
|
— |
|
Equity based
compensation |
|
271,388 |
|
|
— |
|
Interest expense |
|
128,444 |
|
|
237,055 |
|
Other (income) expense,
net |
|
2,631 |
|
|
(19,208 |
) |
Provision (benefit) for
income taxes |
|
— |
|
|
— |
|
Adjusted EBITDA |
|
$ |
10,348,061 |
|
|
$ |
(2,481,888 |
) |
Other Well Services
|
|
Three Months Ended March 31, |
Reconciliation
of Adjusted EBITDA to net income (loss): |
|
2017 |
|
2016 |
Net income (loss) |
|
$ |
1,158,857 |
|
|
$ |
(3,307,639 |
) |
Depreciation and
amortization expense |
|
1,208,241 |
|
|
1,397,507 |
|
Acquisition related
costs |
|
187,184 |
|
|
— |
|
Equity based
compensation |
|
46,989 |
|
|
— |
|
Interest expense |
|
(105,902 |
) |
|
98,319 |
|
Other (income) expense,
net |
|
1,182 |
|
|
9,400 |
|
Provision (benefit) for
income taxes |
|
(3,691,532 |
) |
|
— |
|
Adjusted EBITDA |
|
$ |
(1,194,981 |
) |
|
$ |
(1,802,413 |
) |
Natural Sand Proppant Services
|
|
Three Months Ended March 31, |
Reconciliation
of Adjusted EBITDA to net income (loss): |
|
2017 |
|
2016 |
Net loss |
|
$ |
(1,323,868 |
) |
|
$ |
(121,467 |
) |
Depreciation and
amortization expense |
|
1,019,491 |
|
|
1,031,036 |
|
Acquisition related
costs |
|
1,037,865 |
|
|
— |
|
Equity based
compensation |
|
70,124 |
|
|
— |
|
Interest expense |
|
21,793 |
|
|
— |
|
Other (income) expense,
net |
|
102 |
|
|
(2 |
) |
Provision (benefit) for
income taxes |
|
— |
|
|
— |
|
Adjusted EBITDA |
|
$ |
825,507 |
|
|
$ |
909,567 |
|
Contract Land and Directional Drilling
Services
|
|
Three Months Ended March 31, |
Reconciliation
of Adjusted EBITDA to net income (loss): |
|
2017 |
|
2016 |
Net income (loss) |
|
$ |
(6,847,053 |
) |
|
$ |
(8,457,274 |
) |
Depreciation and
amortization expense |
|
4,968,628 |
|
|
5,507,381 |
|
Acquisition related
costs |
|
21,515 |
|
|
— |
|
Equity based
compensation |
|
111,870 |
|
|
— |
|
Interest expense |
|
217,182 |
|
|
852,574 |
|
Other (income) expense,
net |
|
163,785 |
|
|
(10,074 |
) |
Provision for income
taxes |
|
— |
|
|
— |
|
Adjusted EBITDA |
|
$ |
(1,364,073 |
) |
|
$ |
(2,107,393 |
) |
Other Energy Services
|
|
Three Months Ended March 31, |
Reconciliation
of Adjusted EBITDA to net income (loss): |
|
2017 |
|
2016 |
Net income |
|
$ |
1,287,845 |
|
|
$ |
2,410,898 |
|
Depreciation and
amortization expense |
|
539,524 |
|
|
522,450 |
|
Equity based
compensation |
|
69,460 |
|
|
— |
|
Interest expense |
|
24,821 |
|
|
3,947 |
|
Other (income) expense,
net |
|
2,341 |
|
|
1,690 |
|
Provision (benefit) for
income taxes |
|
585,467 |
|
|
894,360 |
|
Adjusted EBITDA |
|
$ |
2,509,458 |
|
|
$ |
3,833,345 |
|
Contact:
Mammoth Energy Services, Inc., Attention: Don Crist, 4727 Gaillardia Parkway, Suite 200, Oklahoma City, Oklahoma 73142, tel: 405-608-6048
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