OKLAHOMA
CITY, Nov. 9, 2023 /PRNewswire/ -- Mammoth
Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK)
today reported financial and operational results for the third
quarter ended September 30, 2023.
Financial Overview for the Third Quarter 2023:
Total revenue was $65.0 million
for the third quarter of 2023 compared to $107.2 million for the same quarter last year and
$75.4 million for the second quarter
of 2023.
Net loss for the third quarter of 2023 was $1.1 million, or $0.02 loss per diluted share, compared to net
income of $7.7 million, or
$0.16 per diluted share, for the same
quarter last year and net loss of $4.5
million, or $0.09 loss per
diluted share, for the second quarter of 2023.
Adjusted EBITDA (as defined and reconciled below) was
$13.4 million for the third quarter
of 2023, compared to $29.8 million
for the same quarter last year and $16.4
million for the second quarter of 2023.
Arty Straehla, Chief Executive Officer of Mammoth commented, "We
are pleased to have announced that we entered into a new revolving
credit facility agreement and a new term loan agreement, which
refinanced, in full, Mammoth's indebtedness outstanding under our
previous revolving credit facility. We believe these new agreements
will provide Mammoth with a strong base of liquidity for years to
come.
"Third quarter results, as expected, were challenged by the
persistence of demand and activity pressures, in particular in
natural gas basins, that negatively impacted our pressure pumping
fleet utilization, thus impacting our overall performance. These
market pressures that began earlier this year are largely
attributable to commodity price fluctuations and delayed customer
schedules. In response, we continue to closely manage our costs.
Despite the softness we've experienced this year, we are now seeing
encouraging signs of increasing activity and customer planning for
2024. We are also pleased with the improving line of sight for the
next few quarters, and we expect an improvement in frac fleet
counts in 2024."
Straehla added, "During and subsequent to the end of the third
quarter, we were pleased to have received $11.4 million from PREPA, bringing the total
payments received this year from PREPA to $22.2 million. While this only represents a
portion of what is still owed to us for the work completed by our
subsidiary Cobra, we continue to pursue payment of the outstanding
amounts owed by PREPA, including the associated interest that has
accrued and is continuing to accrue."
Well Completion Services
Mammoth's well completion services division contributed revenue
(inclusive of inter-segment revenue) of $20.3 million on 577 stages for the third quarter
of 2023, compared to $51.5 million on
1,897 stages for the same quarter of 2022 and $27.6 million on 956 stages for the second
quarter of 2023. On average, 1.2 of the Company's fleets were
active for the third quarter of 2023 compared to an average
utilization of 3.5 fleets during the same quarter of 2022 and 1.6
fleets during the second quarter of 2023.
Infrastructure Services
Mammoth's infrastructure services division contributed revenue
of $26.7 million for the third
quarter of 2023 compared to $33.3
million for the same quarter of 2022 and $28.3 million for the second quarter of 2023.
Average crew count was 81 crews during the third quarter of 2023
compared to 96 crews during the same quarter of 2022 and 86 crews
during the second quarter of 2023.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed
revenue (inclusive of inter-segment revenue) of $10.6 million for the third quarter of 2023
compared to $12.9 million for the
same quarter of 2022 and $11.6
million for the second quarter of 2023. In the third quarter
of 2023, the Company sold approximately 352,000 tons of sand at an
average sales price of $30.18 per ton
compared to sales of approximately 341,000 tons of sand at an
average sales price of $29.95 per ton
during the same quarter of 2022. In the second quarter of 2023,
sales were approximately 384,000 tons of sand at an average price
of $30.08 per ton.
Drilling Services
Mammoth's drilling services division contributed revenue
(inclusive of inter-segment revenue) of $2.8
million for the third quarter of 2023 compared to
$3.1 million for the same quarter of
2022 and $3.3 million for the second
quarter of 2023. The decrease in drilling services revenue is
primarily attributable to decreased utilization for our directional
drilling business.
Other Services
Mammoth's other services, including aviation, equipment rentals,
remote accommodations and equipment manufacturing, contributed
revenue (inclusive of inter-segment revenue) of $5.5 million for the third quarter of 2023
compared to $7.0 million for the same
quarter of 2022 and $5.1 million for
the second quarter of 2023.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were
$10.4 million for the third quarter
of 2023 compared to $9.7 million for
the same quarter of 2022 and $10.4
million for the second quarter of 2023.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Cash
expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
3,392
|
|
$
3,676
|
|
$
3,996
|
|
$
11,665
|
|
$
9,796
|
Professional
services
|
4,684
|
|
3,706
|
|
4,276
|
|
10,889
|
|
10,067
|
Other(a)
|
2,105
|
|
2,059
|
|
1,868
|
|
5,884
|
|
6,127
|
Total cash SG&A
expense
|
10,181
|
|
9,441
|
|
10,140
|
|
28,438
|
|
25,990
|
Non-cash
expenses:
|
|
|
|
|
|
|
|
|
|
Change in provision
for expected credit losses
|
11
|
|
3
|
|
(44)
|
|
(414)
|
|
(112)
|
Stock based
compensation
|
219
|
|
241
|
|
261
|
|
1,127
|
|
682
|
Total non-cash
SG&A expense
|
230
|
|
244
|
|
217
|
|
713
|
|
570
|
Total SG&A
expense
|
$
10,411
|
|
$
9,685
|
|
$
10,357
|
|
$
29,151
|
|
$
26,560
|
|
|
a.
|
Includes travel-related
costs, information technology expenses, rent, utilities and other
general and administrative-related costs.
|
SG&A expenses, as a percentage of total revenue, were 16%
for the third quarter of 2023 compared to 9% for the same quarter
of 2022 and 14% for the second quarter of 2023.
Liquidity
As of September 30, 2023, Mammoth had cash on hand of
$10.5 million, outstanding borrowings
under its prior revolving credit facility of $69.0 million, a borrowing base of $96.4 million and $11.0
million of available borrowing capacity under the prior
revolving credit facility, after giving effect to $6.4 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, 2023, Mammoth had total liquidity of
$21.5 million.
On October 16, 2023, Mammoth
entered into a new revolving credit facility agreement and a new
term loan agreement, which refinanced, in full, Mammoth's
indebtedness outstanding under its prior revolving credit facility.
The new five-year revolving credit facility with Fifth Third Bank,
National Association, provides for revolving commitments of up to
$75 million, subject to a borrowing
base calculation prepared monthly. The new five-year term loan
agreement with Wexford Capital LP, an affiliate of Mammoth,
provides for term commitments of $45
million.
As of November 7, 2023, Mammoth had cash on hand of
$9.7 million, outstanding borrowings
under its revolving credit facility of $28.2
million, and a borrowing base of $35.1 million. As of November 7, 2023, the
Company had $6.9 million of available
borrowing capacity under its revolving credit facility and total
liquidity of $16.6 million.
Capital Expenditures
The following table summarizes Mammoth's capital expenditures by
operating division for the periods indicated (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Well completion
services(a)
|
$
4,651
|
|
$
4,747
|
|
$
4,348
|
|
$
14,762
|
|
$
8,048
|
Infrastructure
services(b)
|
69
|
|
225
|
|
72
|
|
344
|
|
823
|
Natural sand proppant
services(c)
|
—
|
|
34
|
|
—
|
|
—
|
|
34
|
Drilling
services(c)
|
105
|
|
33
|
|
—
|
|
111
|
|
47
|
Other(d)
|
65
|
|
53
|
|
—
|
|
68
|
|
275
|
Eliminations
|
(165)
|
|
38
|
|
83
|
|
(20)
|
|
(128)
|
Total capital
expenditures
|
$
4,725
|
|
$
5,130
|
|
$
4,503
|
|
$
15,265
|
|
$
9,099
|
|
|
a.
|
Capital expenditures
primarily for upgrades and maintenance to our pressure pumping
fleet for the periods presented.
|
b.
|
Capital expenditures
primarily for truck, tooling and equipment purchases for the
periods presented.
|
c.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
d.
|
Capital expenditures
primarily for equipment for the Company's rental businesses for the
periods presented.
|
Conference Call Information
Mammoth will host a conference call on Thursday, November 9, 2023 at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its third
quarter financial and operational results. The telephone number to
access the conference call is 1-201-389-0872. The conference call
will also be webcast live on
https://ir.mammothenergy.com/events-presentations. Please submit
any questions for management prior to the call via email to
TUSK@dennardlascar.com.
About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services
company focused on the providing products and services to enable
the exploration and development of North American onshore
unconventional oil and natural gas reserves as well as the
construction and repair of the electric grid for private utilities,
public investor-owned utilities and co-operative utilities through
its infrastructure services businesses. Mammoth's suite of services
and products include: well completion services, infrastructure
services, natural sand and proppant services, drilling services and
other energy services. For more information, please visit
www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the
subjects of this release, including on the conference call
announced herein) contains certain statements and information that
may constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts that
address activities, events or developments that Mammoth expects,
believes or anticipates will or may occur in the future are
forward-looking statements. The words "anticipate," "believe,"
"ensure," "expect," "if," "intend," "plan," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely" and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, acquisitions, returns, capital expenditure
budgets, plans for stock repurchases under its stock repurchase
program, costs and other guidance regarding future developments.
Forward-looking statements are not assurances of future
performance. These forward-looking statements are based on
management's current expectations and beliefs, forecasts for the
Company's existing operations, experience and perception of
historical trends, current conditions, anticipated future
developments and their effect on Mammoth, and other factors
believed to be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from historical
experience and present expectations or projections which are
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to: 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 and
the Israel-Hamas war on the global energy and capital markets and
global stability; performance of contracts and supply chain
disruptions; inflationary pressures; high interest rates and their
impact on the cost of capital; instability in the banking and
financial services sectors; the outcome of ongoing government
investigations and other legal proceedings, 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 and the effect on our
financial condition and results of operations; the effects of
government regulation, permitting and other legal requirements;
operating risks; the adequacy of capital resources and liquidity;
Mammoth's ability to comply with the applicable financial covenants
and other terms and conditions under Mammoth's new revolving credit
facility and new term loan; weather; natural disasters; litigation;
volatility in commodity markets; competition in the oil and natural
gas and infrastructure industries; and costs and availability of
resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED BALANCE
SHEETS
|
|
ASSETS
|
|
September
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
CURRENT
ASSETS
|
|
(in
thousands)
|
Cash and cash
equivalents
|
|
$
10,527
|
|
$
17,282
|
Accounts receivable,
net
|
|
455,349
|
|
456,465
|
Receivables from
related parties, net
|
|
266
|
|
223
|
Inventories
|
|
11,779
|
|
8,883
|
Prepaid
expenses
|
|
3,717
|
|
13,219
|
Other current
assets
|
|
616
|
|
620
|
Total current
assets
|
|
482,254
|
|
496,692
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
119,151
|
|
138,066
|
Sand
reserves
|
|
58,778
|
|
61,830
|
Operating lease
right-of-use assets
|
|
11,147
|
|
10,656
|
Intangible assets,
net
|
|
1,106
|
|
1,782
|
Goodwill
|
|
9,214
|
|
11,717
|
Other non-current
assets
|
|
4,326
|
|
3,935
|
Total
assets
|
|
$
685,976
|
|
$
724,678
|
LIABILITIES AND
EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts
payable
|
|
$
39,304
|
|
$
47,391
|
Accrued expenses and
other current liabilities
|
|
30,508
|
|
52,297
|
Current operating
lease liability
|
|
6,081
|
|
5,447
|
Current portion of
long-term debt
|
|
—
|
|
83,520
|
Income taxes
payable
|
|
56,506
|
|
48,557
|
Total current
liabilities
|
|
132,399
|
|
237,212
|
|
|
|
|
|
Long-term debt, net of
current portion
|
|
69,029
|
|
—
|
Deferred income tax
liabilities
|
|
401
|
|
471
|
Long-term operating
lease liability
|
|
4,912
|
|
4,913
|
Asset retirement
obligation
|
|
4,083
|
|
3,981
|
Other long-term
liabilities
|
|
9,580
|
|
15,485
|
Total
liabilities
|
|
220,404
|
|
262,062
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Equity:
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 47,941,652 and 47,312,270
issued and outstanding at September 30, 2023 and December 31,
2022
|
|
479
|
|
473
|
Additional paid in
capital
|
|
539,340
|
|
539,138
|
Accumulated
deficit
|
|
(70,361)
|
|
(73,154)
|
Accumulated other
comprehensive loss
|
|
(3,886)
|
|
(3,841)
|
Total
equity
|
|
465,572
|
|
462,616
|
Total liabilities and
equity
|
|
$
685,976
|
|
$
724,678
|
MAMMOTH ENERGY
SERVICES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS) INCOME
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
(in thousands,
except per share amounts)
|
REVENUE
|
|
Services
revenue
|
$
54,025
|
|
$
93,879
|
|
$
63,478
|
|
$ 221,140
|
|
$ 223,005
|
Services revenue -
related parties
|
252
|
|
355
|
|
369
|
|
841
|
|
1,024
|
Product
revenue
|
10,682
|
|
12,968
|
|
11,584
|
|
34,729
|
|
35,149
|
Total
revenue
|
64,959
|
|
107,202
|
|
75,431
|
|
256,710
|
|
259,178
|
|
|
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $8,394, $12,968, $10,270, $30,426, and $43,727,
respectively, for the three months ended September 30, 2023,
September 30, 2022, and June 30, 2023 and nine months ended
September 30, 2023 and 2022)
|
45,082
|
|
68,821
|
|
52,846
|
|
178,905
|
|
173,821
|
Services cost of
revenue - related parties
|
120
|
|
142
|
|
210
|
|
360
|
|
405
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $2,836, $2,863, $2,373, $6,395, and $6,711,
respectively, for the three months ended September 30, 2023,
September 30, 2022, and June 30, 2023 and nine months ended
September 30, 2023 and 2022)
|
7,615
|
|
9,493
|
|
7,196
|
|
22,796
|
|
27,496
|
Selling, general and
administrative
|
10,411
|
|
9,685
|
|
10,357
|
|
29,151
|
|
26,560
|
Depreciation,
depletion, amortization and accretion
|
11,233
|
|
15,842
|
|
12,650
|
|
36,839
|
|
50,485
|
Gains on disposal of
assets, net
|
(2,450)
|
|
(599)
|
|
(473)
|
|
(3,284)
|
|
(3,738)
|
Impairment of
goodwill
|
1,810
|
|
—
|
|
—
|
|
1,810
|
|
—
|
Total cost and
expenses
|
73,821
|
|
103,384
|
|
82,786
|
|
266,577
|
|
275,029
|
Operating (loss)
income
|
(8,862)
|
|
3,818
|
|
(7,355)
|
|
(9,867)
|
|
(15,851)
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(2,876)
|
|
(3,262)
|
|
(3,220)
|
|
(9,385)
|
|
(8,270)
|
Other income,
net
|
14,088
|
|
10,989
|
|
8,339
|
|
31,051
|
|
30,175
|
Total other
income
|
11,212
|
|
7,727
|
|
5,119
|
|
21,666
|
|
21,905
|
Income (loss) before
income taxes
|
2,350
|
|
11,545
|
|
(2,236)
|
|
11,799
|
|
6,054
|
Provision for income
taxes
|
3,438
|
|
3,819
|
|
2,234
|
|
9,006
|
|
11,442
|
Net (loss)
income
|
$
(1,088)
|
|
$
7,726
|
|
$
(4,470)
|
|
$
2,793
|
|
$
(5,388)
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(275)
|
|
(601)
|
|
227
|
|
(45)
|
|
(851)
|
Comprehensive (loss)
income
|
$
(1,363)
|
|
$
7,125
|
|
$
(4,243)
|
|
$
2,748
|
|
$
(6,239)
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
$
(0.02)
|
|
$
0.16
|
|
$
(0.09)
|
|
$
0.06
|
|
$
(0.11)
|
Net (loss) income per
share (diluted)
|
$
(0.02)
|
|
$
0.16
|
|
$
(0.09)
|
|
$
0.06
|
|
$
(0.11)
|
Weighted average number
of shares outstanding (basic)
|
47,942
|
|
47,312
|
|
47,718
|
|
47,721
|
|
47,129
|
Weighted average number
of shares outstanding (diluted)
|
47,942
|
|
47,843
|
|
47,718
|
|
47,973
|
|
47,129
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2023
|
|
2022
|
|
(in
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
2,793
|
|
$
(5,388)
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
Stock based
compensation
|
1,127
|
|
682
|
Depreciation,
depletion, accretion and amortization
|
36,839
|
|
50,485
|
Amortization of debt
origination costs
|
565
|
|
588
|
Change in provision
for expected credit losses
|
(414)
|
|
(112)
|
Gains on disposal of
assets
|
(3,284)
|
|
(3,738)
|
Gains from sales of
equipment damaged or lost down-hole
|
(335)
|
|
(607)
|
Impairment of
goodwill
|
1,810
|
|
—
|
Gain on sale of
business
|
(2,080)
|
|
—
|
Deferred income
taxes
|
(70)
|
|
8,557
|
Other
|
(273)
|
|
104
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
net
|
1,489
|
|
(55,472)
|
Receivables from
related parties, net
|
(44)
|
|
(298)
|
Inventories
|
(2,896)
|
|
35
|
Prepaid expenses and
other assets
|
8,990
|
|
7,613
|
Accounts
payable
|
(7,537)
|
|
9,472
|
Accrued expenses and
other liabilities
|
(19,679)
|
|
(20,777)
|
Income taxes
payable
|
7,950
|
|
2,790
|
Net cash provided by
(used in) operating activities
|
24,951
|
|
(6,066)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(15,265)
|
|
(9,099)
|
Business divestitures,
net of cash transferred
|
3,276
|
|
—
|
Proceeds from disposal
of property and equipment
|
4,304
|
|
8,659
|
Net cash used in
investing activities
|
(7,685)
|
|
(440)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
long-term debt
|
168,800
|
|
142,475
|
Repayments of
long-term debt
|
(183,291)
|
|
(134,674)
|
Proceeds from
sale-leaseback transaction
|
—
|
|
4,589
|
Payments on
sale-leaseback transaction
|
(3,711)
|
|
(3,249)
|
Principal payments on
financing leases and equipment financing notes
|
(4,872)
|
|
(1,753)
|
Other
|
(919)
|
|
—
|
Net cash (used in)
provided by financing activities
|
(23,993)
|
|
7,388
|
Effect of foreign
exchange rate on cash
|
(28)
|
|
(164)
|
Net change in cash and
cash equivalents
|
(6,755)
|
|
718
|
Cash and cash
equivalents at beginning of period
|
17,282
|
|
9,899
|
Cash and cash
equivalents at end of period
|
$
10,527
|
|
$
10,617
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
Cash paid for
interest
|
$
8,951
|
|
$
6,316
|
Cash paid for income
taxes, net of refunds received
|
$
788
|
|
$
97
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
Purchases of property
and equipment included in accounts payable
|
$
4,197
|
|
$
3,837
|
Right-of-use assets
obtained for financing lease liabilities
|
$ 507
|
|
$
—
|
MAMMOTH ENERGY
SERVICES, INC.
SEGMENT INCOME
STATEMENTS
(in
thousands)
|
|
Three Months Ended
September 30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
20,166
|
$
26,712
|
$
10,633
|
$
2,820
|
$
4,628
|
$
—
|
$
64,959
|
Intersegment
revenues
|
161
|
—
|
—
|
2
|
909
|
(1,072)
|
—
|
Total
revenue
|
20,327
|
26,712
|
10,633
|
2,822
|
5,537
|
(1,072)
|
64,959
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
17,528
|
22,042
|
6,977
|
2,599
|
3,671
|
—
|
52,817
|
Intersegment cost of
revenues
|
325
|
10
|
—
|
109
|
628
|
(1,072)
|
—
|
Total cost of
revenue
|
17,853
|
22,052
|
6,977
|
2,708
|
4,299
|
(1,072)
|
52,817
|
Selling, general and
administrative
|
1,579
|
6,495
|
1,224
|
389
|
724
|
—
|
10,411
|
Depreciation,
depletion, amortization and accretion
|
3,971
|
1,557
|
2,836
|
1,222
|
1,647
|
—
|
11,233
|
(Gains) losses on
disposal of assets, net
|
(2,016)
|
(311)
|
—
|
(138)
|
15
|
—
|
(2,450)
|
Impairment of
goodwill
|
—
|
—
|
—
|
—
|
1,810
|
—
|
1,810
|
Operating
loss
|
(1,060)
|
(3,081)
|
(404)
|
(1,359)
|
(2,958)
|
—
|
(8,862)
|
Interest expense,
net
|
774
|
1,647
|
117
|
151
|
187
|
—
|
2,876
|
Other income,
net
|
—
|
(11,348)
|
(6)
|
—
|
(2,734)
|
—
|
(14,088)
|
(Loss) income before
income taxes
|
$
(1,834)
|
$
6,620
|
$
(515)
|
$
(1,510)
|
$
(411)
|
$
—
|
$
2,350
|
|
Three Months Ended
September 30, 2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
51,378
|
$
33,296
|
$
12,910
|
$
3,118
|
$
6,500
|
$
—
|
$
107,202
|
Intersegment
revenues
|
154
|
—
|
—
|
—
|
468
|
(622)
|
—
|
Total
revenue
|
51,532
|
33,296
|
12,910
|
3,118
|
6,968
|
(622)
|
107,202
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
35,414
|
26,495
|
9,206
|
2,695
|
4,646
|
—
|
78,456
|
Intersegment cost of
revenues
|
403
|
17
|
—
|
109
|
93
|
(622)
|
—
|
Total cost of
revenue
|
35,817
|
26,512
|
9,206
|
2,804
|
4,739
|
(622)
|
78,456
|
Selling, general and
administrative
|
2,390
|
4,968
|
1,076
|
305
|
946
|
—
|
9,685
|
Depreciation,
depletion, amortization and accretion
|
4,772
|
3,969
|
2,865
|
1,598
|
2,638
|
—
|
15,842
|
(Gain) loss on disposal
of assets, net
|
(339)
|
73
|
—
|
(286)
|
(47)
|
—
|
(599)
|
Operating income
(loss)
|
8,892
|
(2,226)
|
(237)
|
(1,303)
|
(1,308)
|
—
|
3,818
|
Interest expense,
net
|
531
|
2,047
|
212
|
154
|
318
|
—
|
3,262
|
Other income,
net
|
(345)
|
(10,304)
|
(3)
|
—
|
(337)
|
—
|
(10,989)
|
Income (loss) before
income taxes
|
$
8,706
|
$
6,031
|
$
(446)
|
$
(1,457)
|
$
(1,289)
|
$
—
|
$
11,545
|
|
Nine Months Ended
September 30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
114,810
|
$
83,308
|
$
34,643
|
$
7,972
|
$
15,977
|
$
—
|
$
256,710
|
Intersegment
revenues
|
400
|
—
|
25
|
9
|
1,710
|
(2,144)
|
$
—
|
Total
revenue
|
115,210
|
83,308
|
34,668
|
7,981
|
17,687
|
(2,144)
|
256,710
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
93,158
|
67,810
|
21,905
|
7,246
|
11,942
|
—
|
202,061
|
Intersegment cost of
revenues
|
1,029
|
29
|
—
|
326
|
760
|
(2,144)
|
$
—
|
Total cost of
revenue
|
94,187
|
67,839
|
21,905
|
7,572
|
12,702
|
(2,144)
|
202,061
|
Selling, general and
administrative
|
5,847
|
17,091
|
2,682
|
1,039
|
2,492
|
—
|
29,151
|
Depreciation,
depletion, amortization and accretion
|
13,288
|
7,366
|
6,397
|
3,873
|
5,915
|
—
|
36,839
|
Gains on disposal of
assets, net
|
(2,016)
|
(439)
|
(16)
|
(138)
|
(675)
|
—
|
(3,284)
|
Impairment of
goodwill
|
—
|
—
|
—
|
—
|
1,810
|
—
|
1,810
|
Operating income
(loss)
|
3,904
|
(8,549)
|
3,700
|
(4,365)
|
(4,557)
|
—
|
(9,867)
|
Interest expense,
net
|
2,527
|
5,361
|
422
|
481
|
594
|
—
|
9,385
|
Other expense (income),
net
|
1
|
(28,713)
|
(12)
|
—
|
(2,327)
|
—
|
(31,051)
|
Income (loss) before
income taxes
|
$
1,376
|
$
14,803
|
$
3,290
|
$
(4,846)
|
$
(2,824)
|
$
—
|
$
11,799
|
|
Nine Months Ended
September 30, 2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
118,580
|
$
81,892
|
$
35,098
|
$
7,922
|
$
15,686
|
$
—
|
$
259,178
|
Intersegment
revenues
|
643
|
—
|
2,450
|
22
|
1,044
|
(4,159)
|
—
|
Total
revenue
|
119,223
|
81,892
|
37,548
|
7,944
|
16,730
|
(4,159)
|
259,178
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
88,740
|
67,190
|
26,701
|
7,100
|
11,991
|
—
|
201,722
|
Intersegment cost of
revenues
|
3,419
|
49
|
—
|
430
|
265
|
(4,163)
|
—
|
Total cost of
revenue
|
92,159
|
67,239
|
26,701
|
7,530
|
12,256
|
(4,163)
|
201,722
|
Selling, general and
administrative
|
6,314
|
14,056
|
2,774
|
874
|
2,542
|
—
|
26,560
|
Depreciation,
depletion, amortization and accretion
|
17,963
|
12,495
|
6,717
|
4,929
|
8,381
|
—
|
50,485
|
Gains on disposal of
assets, net
|
(547)
|
(795)
|
(90)
|
(286)
|
(2,020)
|
—
|
(3,738)
|
Operating income
(loss)
|
3,334
|
(11,103)
|
1,446
|
(5,103)
|
(4,429)
|
4
|
(15,851)
|
Interest expense,
net
|
1,324
|
5,345
|
552
|
379
|
670
|
—
|
8,270
|
Other (income) expense,
net
|
(345)
|
(29,948)
|
(10)
|
—
|
128
|
—
|
(30,175)
|
Income (loss) before
income taxes
|
$
2,355
|
$
13,500
|
$
904
|
$
(5,482)
|
$
(5,227)
|
$
4
|
$
6,054
|
MAMMOTH ENERGY
SERVICES, INC. RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
|
|
Adjusted
EBITDA
|
|
Adjusted EBITDA is a
supplemental non-GAAP financial measure that is used by management
and external users of the Company's financial statements, such as
industry analysts, investors, lenders and rating agencies. Mammoth
defines Adjusted EBITDA as net (loss) income before depreciation,
depletion, amortization and accretion expense, impairment of
goodwill, gains on disposal of assets, net, 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 (loss) income
in arriving at Adjusted EBITDA because these amounts can vary
substantially from company to company within the energy service
industry depending upon accounting methods and book values of
assets, capital structures and the method by which the assets were
acquired. Adjusted EBITDA should not be considered as an
alternative to, or more meaningful than, net (loss) income or cash
flows from operating activities as determined in accordance with
GAAP or as an indicator of Mammoth's operating performance or
liquidity. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company's
financial performance, such as a company's cost of capital and tax
structure, as well as the historic costs of depreciable assets.
Mammoth's computations of Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies. The Company
believes that Adjusted EBITDA is a widely followed measure of
operating performance and may also be used by investors to measure
its ability to meet debt service requirements.
|
|
The following tables
provide a reconciliation of Adjusted EBITDA to the GAAP financial
measure of net (loss) income on a consolidated basis and for each
of the Company's segments (in thousands):
|
Consolidated
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Net (loss)
income
|
$
(1,088)
|
|
$
7,726
|
|
$
(4,470)
|
|
$
2,793
|
|
$
(5,388)
|
Depreciation,
depletion, amortization and accretion expense
|
11,233
|
|
15,842
|
|
12,650
|
|
36,839
|
|
50,485
|
Gains on disposal of
assets, net
|
(2,450)
|
|
(599)
|
|
(473)
|
|
(3,284)
|
|
(3,738)
|
Impairment of
goodwill
|
1,810
|
|
—
|
|
—
|
|
1,810
|
|
—
|
Stock based
compensation
|
219
|
|
241
|
|
261
|
|
1,127
|
|
682
|
Interest expense,
net
|
2,876
|
|
3,262
|
|
3,220
|
|
9,385
|
|
8,270
|
Other income,
net
|
(14,088)
|
|
(10,989)
|
|
(8,339)
|
|
(31,051)
|
|
(30,174)
|
Provision for income
taxes
|
3,438
|
|
3,819
|
|
2,234
|
|
9,006
|
|
11,442
|
Interest on trade
accounts receivable
|
11,443
|
|
10,468
|
|
11,341
|
|
33,897
|
|
30,490
|
Adjusted
EBITDA
|
$
13,393
|
|
$
29,770
|
|
$
16,424
|
|
$
60,522
|
|
$
62,069
|
Well Completion
Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Net (loss)
income
|
$
(1,834)
|
|
$
8,706
|
|
$
(3,338)
|
|
$
1,376
|
|
$
2,357
|
Depreciation and
amortization expense
|
3,971
|
|
4,772
|
|
4,500
|
|
13,288
|
|
17,963
|
Gains on disposal of
assets, net
|
(2,016)
|
|
(339)
|
|
—
|
|
(2,016)
|
|
(547)
|
Stock based
compensation
|
64
|
|
104
|
|
97
|
|
451
|
|
275
|
Interest
expense
|
774
|
|
531
|
|
824
|
|
2,527
|
|
1,324
|
Other (income) expense,
net
|
—
|
|
(345)
|
|
1
|
|
1
|
|
(345)
|
Adjusted
EBITDA
|
$
959
|
|
$
13,429
|
|
$
2,084
|
|
$
15,627
|
|
$
21,027
|
Infrastructure
Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
net income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Net income
|
$
3,239
|
|
$
2,630
|
|
$
697
|
|
$
6,392
|
|
$
3,323
|
Depreciation and
amortization expense
|
1,557
|
|
3,969
|
|
2,436
|
|
7,366
|
|
12,495
|
(Gains) losses on
disposal of assets, net
|
(311)
|
|
73
|
|
—
|
|
(439)
|
|
(795)
|
Stock based
compensation
|
99
|
|
89
|
|
107
|
|
436
|
|
261
|
Interest
expense
|
1,647
|
|
2,047
|
|
1,869
|
|
5,361
|
|
5,345
|
Other income,
net
|
(11,348)
|
|
(10,304)
|
|
(8,557)
|
|
(28,713)
|
|
(29,948)
|
Provision for income
taxes
|
3,381
|
|
3,402
|
|
2,184
|
|
8,411
|
|
10,178
|
Interest on trade
accounts receivable
|
11,443
|
|
10,468
|
|
11,341
|
|
33,897
|
|
30,490
|
Adjusted
EBITDA
|
$
9,707
|
|
$
12,374
|
|
$
10,077
|
|
$
32,711
|
|
$
31,349
|
Natural Sand
Proppant Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Net (loss)
income
|
$
(515)
|
|
$
(446)
|
|
$
1,027
|
|
$
3,290
|
|
$
904
|
Depreciation,
depletion, amortization and accretion expense
|
2,836
|
|
2,865
|
|
2,374
|
|
6,397
|
|
6,717
|
Gains on disposal of
assets, net
|
—
|
|
—
|
|
—
|
|
(16)
|
|
(90)
|
Stock based
compensation
|
37
|
|
30
|
|
36
|
|
149
|
|
90
|
Interest
expense
|
117
|
|
212
|
|
149
|
|
422
|
|
552
|
Other income,
net
|
(6)
|
|
(3)
|
|
(4)
|
|
(12)
|
|
(10)
|
Adjusted
EBITDA
|
$
2,469
|
|
$
2,658
|
|
$
3,582
|
|
$
10,230
|
|
$
8,163
|
Drilling
Services
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Net loss
|
$
(1,510)
|
|
$
(1,457)
|
|
$
(1,289)
|
|
$
(4,846)
|
|
$
(5,482)
|
Depreciation
expense
|
1,222
|
|
1,598
|
|
1,284
|
|
3,873
|
|
4,929
|
Gains on disposal of
assets, net
|
(138)
|
|
(286)
|
|
—
|
|
(138)
|
|
(286)
|
Stock based
compensation
|
6
|
|
4
|
|
6
|
|
25
|
|
13
|
Interest
expense
|
151
|
|
154
|
|
170
|
|
481
|
|
379
|
Adjusted
EBITDA
|
$
(269)
|
|
$
13
|
|
$
171
|
|
$
(605)
|
|
$
(447)
|
Other
Services(a)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
Net loss
|
$
(468)
|
|
$
(1,707)
|
|
$
(1,567)
|
|
$
(3,419)
|
|
$
(6,492)
|
Depreciation,
amortization and accretion expense
|
1,647
|
|
2,638
|
|
2,056
|
|
5,915
|
|
8,381
|
Losses (gains) on
disposal of assets, net
|
15
|
|
(47)
|
|
(473)
|
|
(675)
|
|
(2,020)
|
Impairment of
goodwill
|
1,810
|
|
—
|
|
—
|
|
1,810
|
|
—
|
Stock based
compensation
|
13
|
|
14
|
|
15
|
|
66
|
|
43
|
Interest expense,
net
|
187
|
|
318
|
|
208
|
|
594
|
|
670
|
Other (income) expense,
net
|
(2,734)
|
|
(337)
|
|
221
|
|
(2,327)
|
|
128
|
Provision for income
taxes
|
57
|
|
417
|
|
50
|
|
595
|
|
1,264
|
Adjusted
EBITDA
|
$
527
|
|
$
1,296
|
|
$
510
|
|
$
2,559
|
|
$
1,974
|
|
|
a.
|
Includes results for
Mammoth's aviation, equipment rentals, remote accommodations and
equipment manufacturing and corporate related activities. The
Company's corporate related activities do not generate
revenue.
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-third-quarter-2023-operational-and-financial-results-301983072.html
SOURCE Mammoth Energy Services, Inc.