0001679268FALSE00016792682024-08-092024-08-09



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 9, 2024
 
Mammoth Energy Services, Inc.

(Exact name of registrant as specified in its charter)

001-37917
(Commission File No.)
Delaware32-0498321
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
14201 Caliber Drive,Suite 300
Oklahoma City,Oklahoma(405)608-600773134
(Address of principal executive offices)(Registrant’s telephone number, including area code)(Zip Code)
______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of The Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockTUSKThe Nasdaq Stock Market LLC
NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(s) of the Exchange Act.  ¨





Item 2.02 Results of Operations and Financial Condition

On August 9, 2024, Mammoth Energy Services, Inc. (the “Company”) issued a press release announcing its operational and financial results for the second quarter ended June 30, 2024. A copy of that press release is furnished as Exhibit 99.1 to this report.

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.

Item 7.01 Regulation FD Disclosure

On August 9, 2024, the Company posted an investor presentation to the “investors” section of its website (www.mammothenergy.com), where the Company routinely posts announcements, updates, events, investor information and presentations and recent news releases. Information on the Company's website does not constitute part of this Current Report on Form 8-K.

The information in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MAMMOTH ENERGY SERVICES, INC.
Date:August 9, 2024By:/s/ Mark Layton
Mark Layton
Chief Financial Officer and Secretary







Exhibit 99.1

imagea.jpg


Mammoth Energy Services, Inc. Announces
Second Quarter 2024 Operational and Financial Results


OKLAHOMA CITY - August 9, 2024 - Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June 30, 2024.

Financial Overview for the Second Quarter 2024:
Total revenue was $51.5 million for the second quarter of 2024 compared to $43.2 million for the first quarter of 2024.

Net loss for the second quarter of 2024 was $156.0 million, or $3.25 loss per diluted share, compared to net loss of $11.8 million, or $0.25 loss per diluted share, for the first quarter of 2024.

Adjusted EBITDA (as defined and reconciled below) was ($160.7) million for the second quarter of 2024 compared to $4.5 million for the first quarter of 2024. During the second quarter of 2024, the Company recognized expense of $170.7 million related to the settlement between Mammoth’s subsidiary Cobra Acquisitions LLC (“Cobra”) and the Puerto Rico Electric Power Authority (“PREPA”). Excluding this non-recurring expense and interest income previously accrued on the receivable with PREPA, Adjusted EBITDA would have been ($0.3) million for the second quarter of 2024 compared to ($6.0) million for the first quarter of 2024.

Settlement Agreement
As previously announced, on July 22, 2024, Mammoth’s subsidiary Cobra entered into a release and settlement agreement to settle all outstanding matters between Cobra and PREPA (the “Settlement Agreement”). As a result of the Settlement Agreement, the Company expects to receive $188.4 million in total settlement proceeds. During the second quarter of 2024, the Company recorded a non-cash, pre-tax charge of approximately $170.7 million, of which $89.2 million was charged to credit loss expense, which is included in “selling, general and administrative” and $81.5 million was charged to interest on delinquent accounts receivable, which is included in “other income, net” in relation to the Settlement Agreement.

Arty Straehla, Chief Executive Officer of Mammoth commented, “We are pleased to report sequential improvement in our second quarter results, compared to the first quarter, despite continued challenges that persist due to industry activity softness, especially in the natural gas basins that we operate, constraining our Well Completion Services division and other oilfield services. Our Infrastructure Services business continues to perform well and is demonstrating growth both sequentially and year over year. As we enter the second half of the year, our teams across the organization remain focused on efficient and effective cost management to align with the activity levels of our customers. We enter the second half of the year with an undrawn revolver and cash on the balance sheet, as well as a recently announced resolution with PREPA. With the anticipated collection of the PREPA receivable as a result of the Settlement Agreement, we believe Mammoth will be better positioned to capitalize on improved market fundamentals we anticipate in 2025.

“We look forward to receiving the PREPA settlement proceeds and plan to use a portion of the $188.4 million to pay off our term credit facility, which had a balance of approximately $49.3 million as of June 30, 2024. The remaining amount of approximately $139.1 million will be cash on our balance sheet to be used to invest back into our business and for general corporate purposes,” concluded Straehla.



Well Completion Services
Mammoth’s well completion services division contributed revenue (inclusive of inter-segment revenue) of $10.0 million on 292 stages for the second quarter of 2024 compared to $8.3 million on 380 stages for the first quarter of 2024. On average, 0.3 of the Company’s fleets were active for the second quarter of 2024 compared to an average utilization of 0.6 fleets during the first quarter of 2024.

Infrastructure Services
Mammoth’s infrastructure services division contributed revenue of $31.4 million for the second quarter of 2024 compared to $25.0 million for the first quarter of 2024. Average crew count increased to 79 crews during the second quarter of 2024 compared to 75 crews during the first quarter of 2024.

Natural Sand Proppant Services
Mammoth’s natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $4.7 million for the second quarter of 2024 compared to $4.3 million for the first quarter of 2024. In the second quarter of 2024, the Company sold approximately 141,000 tons of sand at an average sales price of $22.73 per ton compared to sales of approximately 146,000 tons of sand at an average price of $24.38 per ton during the first quarter of 2024. Additionally, during the second quarter of 2024, the Company recognized shortfall revenue totaling $1.1 million.

Drilling Services
Mammoth’s drilling services division contributed revenue (inclusive of inter-segment revenue) of $0.7 million for the second quarter of 2024 compared to $0.5 million for the first quarter of 2024. The increase in drilling services revenue is primarily attributable to an increase in 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 $7.1 million for the second quarter of 2024 compared to $6.2 million for the first quarter of 2024.

Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”) expenses were $97.5 million for the second quarter of 2024 compared to $8.8 million for the first quarter of 2024. Included in the amount for the second quarter of 2024 are credit loss charges totaling $89.2 million related to Cobra’s Settlement Agreement with PREPA.
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Following is a breakout of SG&A expense (in thousands):
Three Months EndedSix Months Ended
June 30,March 31,June 30,
20242023202420242023
Cash expenses:
Compensation and benefits$3,116 $3,996 $4,104 $7,220 $8,273 
Professional services3,056 4,276 2,457 5,513 6,205 
Other(a)
1,702 1,868 1,773 3,475 3,779 
Total cash SG&A expense7,874 10,140 8,334 16,208 18,257 
Non-cash expenses:
Change in provision for expected credit losses(b)
89,383 (44)229 89,612 (425)
Stock based compensation219 261 219 438 908 
Total non-cash SG&A expense89,602 217 448 90,050 483 
Total SG&A expense$97,476 $10,357 $8,782 $106,258 $18,740 
a.    Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.
b.    Included in the three and six months ended June 30, 2024 amounts is a charge of $89.2 million related to Cobra's Settlement Agreement with PREPA.
    

SG&A expenses, as a percentage of total revenue, were 189% for the second quarter of 2024 compared to 20% for the first quarter of 2024.

Interest Expense and Financing Charges, net
Interest expense and financing charges, net were $2.5 million for the second quarter of 2024 compared to $8.1 million for the first quarter of 2024. The Company recognized a financing charge totaling $5.5 million during the first quarter of 2024 related to the termination of the Assignment Agreement with SPCP Group LLC.

Liquidity
As of June 30, 2024, Mammoth had cash on hand of $10.3 million. As of June 30, 2024, the Company’s revolving credit facility was undrawn, the borrowing base was $21.0 million and there was $14.3 million of available borrowing capacity under the revolving credit facility, after giving effect to $6.7 million of outstanding letters of credit. As of June 30, 2024, Mammoth had total liquidity of $24.6 million.
As of August 7, 2024, Mammoth had cash on hand of $9.1 million, no outstanding borrowings under its revolving credit facility, and a borrowing base of $25.7 million. As of August 7, 2024, the Company had $19.0 million of available borrowing capacity under its revolving credit facility and total liquidity of $28.1 million.

Capital Expenditures
The following table summarizes Mammoth’s capital expenditures by operating division for the periods indicated (in thousands):
Three Months EndedSix Months Ended
June 30,March 31,June 30,
20242023202420242023
Well completion services(a)
$2,081 $4,348 $2,663 $4,738 $10,120 
Infrastructure services(b)
275 72 683 963 275 
Drilling services(c)
85 — — 87 — 
Other(d)
196 — 146 342 — 
Eliminations(a)
2,282 83 659 2,940 144 
Total capital expenditures$4,919 $4,503 $4,151 $9,070 $10,539 
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.
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c.     Capital expenditures primarily for maintenance for the periods presented.
d.    Capital expenditures primarily for equipment for the Company’s rental businesses for the periods presented.

Conference Call Information
Mammoth will host a conference call on Friday, August 9, 2024 at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its second quarter financial and operational results. The telephone number to access the conference call is 1-201-389-0872. The conference call will also be webcast live on https://ir.mammothenergy.com/events-presentations. Please submit any questions for management prior to the call via email to TUSK@dennardlascar.com.

About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services company focused on the 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: demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the impact of the war in Ukraine and the Israel-Hamas war on the global energy and capital markets and global stability; performance of contracts and supply chain disruptions; inflationary pressures; higher interest rates and their impact on the cost of capital; instability in the banking and financial services sectors; the outcome of ongoing government investigations and other legal proceedings; the failure to receive or delays in receiving the Title III Court approval relating to the settlement agreement between Cobra ,PREPA and the Financial
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Oversight and Management Board for Puerto Rico, in its capacity as Title III representative for PREPA, to settle all outstanding litigation and other dispute matters between Cobra and PREPA, and/or any payments under the settlement agreement discussed in this news release; 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 revolving credit facility and 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.

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS

ASSETSJune 30,December 31,
20242023
CURRENT ASSETS(in thousands)
Cash and cash equivalents$10,266 $16,556 
Restricted cash— 7,742 
Accounts receivable, net235,795 447,202 
Inventories12,387 12,653 
Prepaid expenses6,450 12,181 
Other current assets589 591 
Total current assets265,487 496,925 
Property, plant and equipment, net109,517 113,905 
Sand reserves58,215 58,528 
Operating lease right-of-use assets6,403 9,551 
Goodwill9,214 9,214 
Deferred income tax asset— 1,844 
Other non-current assets6,671 8,512 
Total assets$455,507 $698,479 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$24,136 $27,508 
Accrued expenses and other current liabilities31,151 86,713 
Accrued expenses and other current liabilities - related parties— 1,241 
Current operating lease liability4,352 5,771 
Income taxes payable43,625 61,320 
Total current liabilities103,264 182,553 
Long-term debt from related parties47,275 42,809 
Deferred income tax liabilities2,505 628 
Long-term operating lease liability1,983 3,534 
Asset retirement obligation4,194 4,140 
Other long-term liabilities3,910 4,715 
Total liabilities163,131 238,379 
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 48,127,369 and 47,941,652 issued and outstanding at June 30, 2024 and December 31, 2023
481 479 
Additional paid in capital539,994 539,558 
Accumulated deficit(244,121)(76,317)
Accumulated other comprehensive loss(3,978)(3,620)
Total equity292,376 460,100 
Total liabilities and equity$455,507 $698,479 


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


Three Months EndedSix Months Ended
June 30,March 31,June 30,
20242023202420242023
(in thousands, except per share amounts)
REVENUE
Services revenue$46,770 $63,478 $38,814 $85,584 $167,115 
Services revenue - related parties66 369 68 133 589 
Product revenue4,693 11,584 4,307 8,999 24,047 
Total revenue51,529 75,431 43,189 94,716 191,751 
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $4,780, $10,270, $5,874, $10,654, $22,032, respectively, for the three months ended June 30, 2024, June 30, 2023, and March 31, 2024 and six months ended June 30, 2024 and 2023)
38,962 52,846 34,483 73,445 133,823 
Services cost of revenue - related parties118 210 118 236 240 
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $1,271, $2,373, $1,146, $2,417, $3,559, respectively, for the three months ended June 30, 2024, June 30, 2023, and March 31, 2024 and six months ended June 30, 2024 and 2023)
4,761 7,196 5,983 10,744 15,181 
Selling, general and administrative97,476 10,357 8,782 106,258 18,740 
Depreciation, depletion, amortization and accretion6,051 12,650 7,021 13,073 25,606 
Gains on disposal of assets, net(1,036)(473)(1,166)(2,203)(834)
Total cost and expenses146,332 82,786 55,221 201,553 192,756 
Operating loss(94,803)(7,355)(12,032)(106,837)(1,005)
OTHER INCOME (EXPENSE)
Interest expense and financing charges, net(1,005)(3,220)(6,637)(7,642)(6,509)
Interest expense and financing charges, net - related parties(1,529)— (1,500)(3,028)— 
Other (expense) income, net(73,678)8,339 10,143 (63,536)16,963 
Total other (expense) income (76,212)5,119 2,006 (74,206)10,454 
(Loss) income before income taxes(171,015)(2,236)(10,026)(181,043)9,449 
(Benefit) provision for income taxes(15,022)2,234 1,785 (13,239)5,568 
Net (loss) income$(155,993)$(4,470)$(11,811)$(167,804)$3,881 
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment(114)227 (244)(358)230 
Comprehensive (loss) income$(156,107)$(4,243)$(12,055)$(168,162)$4,111 
Net (loss) income per share (basic)$(3.25)$(0.09)$(0.25)$(3.50)$0.08 
Net (loss) income per share (diluted)$(3.25)$(0.09)$(0.25)$(3.50)$0.08 
Weighted average number of shares outstanding (basic)48,040 47,718 47,964 48,002 47,581 
Weighted average number of shares outstanding (diluted) 48,040 47,718 47,964 48,002 47,966 

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended
June 30,
20242023
(in thousands)
Cash flows from operating activities:
Net (loss) income$(167,804)$3,881 
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Stock based compensation438 908 
Depreciation, depletion, accretion and amortization13,073 25,606 
Amortization of debt origination costs714 377 
Change in provision for expected credit losses171,076 (425)
Gains on disposal of assets(2,203)(834)
Gains from sales of equipment damaged or lost down-hole— (46)
Deferred income taxes3,722 (46)
Other1,099 387 
Changes in assets and liabilities:
Accounts receivable, net39,073 7,880 
Inventories265 (1,306)
Prepaid expenses and other assets5,703 5,162 
Accounts payable(2,276)466 
Accrued expenses and other liabilities(7,688)(13,924)
Accrued expenses and other liabilities - related parties3,028 — 
Income taxes payable(17,692)4,523 
Net cash provided by operating activities40,528 32,609 
Cash flows from investing activities:
Purchases of property and equipment(9,070)(10,539)
Proceeds from disposal of property and equipment4,548 806 
Net cash used in investing activities(4,522)(9,733)
Cash flows from financing activities:
Borrowings on long-term debt— 118,900 
Repayments of long-term debt— (143,064)
Payments on financing transaction(46,837)— 
Payments on sale-leaseback transaction(2,148)(2,449)
Principal payments on financing leases and equipment financing notes(966)(3,791)
Debt issuance costs(37)— 
Other— (919)
Net cash used in financing activities(49,988)(31,323)
Effect of foreign exchange rate on cash(50)15 
Net change in cash, cash equivalents and restricted cash(14,032)(8,432)
Cash, cash equivalents and restricted cash at beginning of period24,298 17,282 
Cash, cash equivalents and restricted cash at end of period$10,266 $8,850 
Supplemental disclosure of cash flow information:
Cash paid for interest$1,440 $6,321 
Cash paid for income taxes, net of refunds received$722 $752 
Supplemental disclosure of non-cash transactions:
Interest paid in kind - related parties$4,269 $— 
Purchases of property and equipment included in accounts payable$2,258 $6,732 
Right-of-use assets obtained for financing lease liabilities$1,369 $306 

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MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Three Months Ended June 30, 2024Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$9,935 $31,433 $4,693 $736 $4,732 $— $51,529 
Intersegment revenues109 — 27 — 2,359 (2,495)— 
Total revenue10,044 31,433 4,720 736 7,091 (2,495)51,529 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion10,096 24,630 4,589 1,155 3,371 — 43,841 
Intersegment cost of revenues234 1 — 1 2,257 (2,493)— 
Total cost of revenue10,330 24,631 4,589 1,156 5,628 (2,493)43,841 
Selling, general and administrative1,196 94,450 943 176 711 — 97,476 
Depreciation, depletion, amortization and accretion2,691 627 1,271 613 849 — 6,051 
Gains on disposal of assets, net(105)(460)(110)(1)(360)— (1,036)
Operating (loss) income(4,068)(87,815)(1,973)(1,208)263 (2)(94,803)
Interest expense and financing charges, net522 1,577 131 121 183 — 2,534 
Other expense (income), net — 72,687 (1)— 992 — 73,678 
Loss before income taxes$(4,590)$(162,079)$(2,103)$(1,329)$(912)$(2)$(171,015)
Three Months Ended June 30, 2023Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$27,466 $28,315 $11,567 $2,810 $5,273 $— $75,431 
Intersegment revenues118 — — — 383 (501)— 
Total revenue27,584 28,315 11,567 2,810 5,656 (501)75,431 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion23,594 23,292 7,067 2,375 3,924 — 60,252 
Intersegment cost of revenues227 9 — 12 253 (501)— 
Total cost of revenue23,821 23,301 7,067 2,387 4,177 (501)60,252 
Selling, general and administrative1,776 6,385 954 193 1,049 — 10,357 
Depreciation, depletion, amortization and accretion4,500 2,436 2,374 1,154 2,186 — 12,650 
Gains on disposal of assets, net— — — — (473)— (473)
Operating (loss) income(2,513)(3,807)1,172 (924)(1,283)— (7,355)
Interest expense and financing charges, net824 1,869 149 133 245 — 3,220 
Other expense (income), net1 (8,557)(4)— 221 — (8,339)
(Loss) income before income taxes$(3,338)$2,881 $1,027 $(1,057)$(1,749)$— $(2,236)
Three Months Ended March 31, 2024Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$8,159 $25,038 $4,307 $511 $5,174 $— $43,189 
Intersegment revenues114 — — — 1,005 (1,119)— 
Total revenue8,273 25,038 4,307 511 6,179 (1,119)43,189 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion8,338 21,533 5,840 1,050 3,823 — 40,584 
Intersegment cost of revenues218 25 — 2 874 (1,119)— 
Total cost of revenue8,556 21,558 5,840 1,052 4,697 (1,119)40,584 
Selling, general and administrative1,073 5,617 1,031 212 849 — 8,782 
Depreciation, depletion, amortization and accretion3,264 718 1,146 874 1,019 — 7,021 
Losses (gains) on disposal of assets, net250 (483)— 2 (935)— (1,166)
Operating (loss) income (4,870)(2,372)(3,710)(1,629)549 — (12,032)
Interest expense and financing charges, net569 7,099 142 128 199 — 8,137 
Other (income) expense, net— (10,258)(1)— 116 — (10,143)
(Loss) income before income taxes$(5,439)$787 $(3,851)$(1,757)$234 $— $(10,026)
9
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Six Months ended June 30, 2024Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$18,093 $56,471 $8,999 $1,247 $9,906 $— $94,716 
Intersegment revenues222 — 28 — 3,364 (3,614)$— 
Total revenue18,315 56,471 9,027 1,247 13,270 (3,614)94,716 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion18,434 46,164 10,430 2,203 7,194 — 84,425 
Intersegment cost of revenues452 26 — 3 3,131 (3,612)$— 
Total cost of revenue18,886 46,190 10,430 2,206 10,325 (3,612)84,425 
Selling, general and administrative2,269 100,068 1,974 388 1,559 — 106,258 
Depreciation, depletion, amortization and accretion5,955 1,346 2,417 1,488 1,867 — 13,073 
Losses (gains) on disposal of assets, net145 (943)(110)1 (1,296)— (2,203)
Operating (loss) income(8,940)(90,190)(5,684)(2,836)815 (2)(106,837)
Interest expense and financing charges, net1,091 8,675 273 250 381 — 10,670 
Other expense (income), net1 62,429 (1)— 1,107 — 63,536 
Loss before income taxes$(10,032)$(161,294)$(5,956)$(3,086)$(673)$(2)$(181,043)
Six Months ended June 30, 2023Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$94,644 $56,596 $24,009 $4,165 $12,337 $— $191,751 
Intersegment revenues240 — 25 — 833 (1,098)— 
Total revenue94,884 56,596 24,034 4,165 13,170 (1,098)191,751 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion75,630 45,768 14,927 3,841 9,078 — 149,244 
Intersegment cost of revenues704 20 — 26 348 (1,098)— 
Total cost of revenue76,334 45,788 14,927 3,867 9,426 (1,098)149,244 
Selling, general and administrative4,268 10,595 1,458 339 2,080 — 18,740 
Depreciation, depletion, amortization and accretion9,317 5,810 3,561 2,383 4,535 — 25,606 
Gains on disposal of assets, net— (127)(16)— (691)— (834)
Operating income (loss)4,965 (5,470)4,104 (2,424)(2,180)— (1,005)
Interest expense and financing charges, net1,753 3,714 305 259 478 — 6,509 
Other expense (income), net1 (17,365)(6)— 407 — (16,963)
Income (loss) before income taxes$3,211 $8,181 $3,805 $(2,683)$(3,065)$— $9,449 




10
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net (loss) income before depreciation, depletion, amortization and accretion expense, gains on disposal of assets, net, stock based compensation, interest expense and financing charges, net, other (income) expense, net (which is comprised of interest on trade accounts receivable and certain legal expenses) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net (loss) income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net (loss) income or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth’s computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.

The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net (loss) income on a consolidated basis and for each of the Company’s segments (in thousands):

Consolidated
Three Months EndedYears Ended
June 30,March 31,June 30,
Reconciliation of net (loss) income to Adjusted EBITDA:20242023202420242023
Net (loss) income$(155,993)$(4,470)$(11,811)$(167,804)$3,881 
Depreciation, depletion, amortization and accretion expense6,051 12,650 7,021 13,073 25,606 
Gains on disposal of assets, net(1,036)(473)(1,166)(2,203)(834)
Stock based compensation219 261 219 438 908 
Interest expense and financing charges, net2,534 3,220 8,137 10,670 6,509 
Other expense (income), net73,678 (8,339)(10,143)63,536 (16,963)
(Benefit) provision for income taxes(15,022)2,234 1,785 (13,239)5,568 
Interest on trade accounts receivable(71,171)11,341 10,485 (60,686)22,454 
Adjusted EBITDA$(160,740)$16,424 $4,527 $(156,215)$47,129 

11
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Well Completion Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of net (loss) income to Adjusted EBITDA:20242023202420242023
Net (loss) income$(4,590)$(3,338)$(5,439)$(10,032)$3,211 
Depreciation and amortization expense2,691 4,500 3,264 5,955 9,317 
(Gains) losses on disposal of assets, net(105)— 250 145 — 
Stock based compensation46 97 44 90 387 
Interest expense and financing charges, net522 824 569 1,091 1,753 
Other expense, net— 1 — 1 1 
Adjusted EBITDA$(1,436)$2,084 $(1,312)$(2,750)$14,669 

Infrastructure Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of net (loss) income to Adjusted EBITDA:20242023202420242023
Net (loss) income$(144,861)$697 $(405)$(145,267)$3,151 
Depreciation and amortization expense627 2,436 718 1,346 5,810 
Gains on disposal of assets, net(460)— (483)(943)(127)
Stock based compensation123 107 117 240 337 
Interest expense and financing charges, net1,577 1,869 7,099 8,675 3,714 
Other expense (income), net72,687 (8,557)(10,258)62,429 (17,365)
(Benefit) provision for income taxes(17,218)2,184 1,192 (16,027)5,030 
Interest on trade accounts receivable(71,171)11,341 10,485 (60,686)22,454 
Adjusted EBITDA$(158,696)$10,077 $8,465 $(150,233)$23,004 

Natural Sand Proppant Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of net (loss) income to Adjusted EBITDA:20242023202420242023
Net (loss) income$(2,103)$1,027 $(3,851)$(5,956)$3,805 
Depreciation, depletion, amortization and accretion expense1,271 2,374 1,146 2,417 3,561 
Gains on disposal of assets, net(110)— — (110)(16)
Stock based compensation32 36 38 69 113 
Interest expense and financing charges, net131 149 142 273 305 
Other income, net(1)(4)(1)(1)(6)
Adjusted EBITDA$(780)$3,582 $(2,526)$(3,308)$7,762 

12
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Drilling Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of net loss to Adjusted EBITDA:20242023202420242023
Net loss$(1,329)$(1,057)$(1,757)$(3,086)$(2,683)
Depreciation expense613 1,154 874 1,488 2,383 
(Gains) losses on disposal of assets, net(1)— 2 1 — 
Stock based compensation5 5 5 10 13 
Interest expense and financing charges, net121 133 128 250 259 
Adjusted EBITDA$(591)$235 $(748)$(1,337)$(28)


Other Services(a)
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of net loss to Adjusted EBITDA:20242023202420242023
Net loss$(3,108)$(1,799)$(359)$(3,461)$(3,603)
Depreciation, amortization and accretion expense849 2,186 1,019 1,867 4,535 
Gains on disposal of assets, net(360)(473)(935)(1,296)(691)
Stock based compensation13 16 15 29 58 
Interest expense and financing charges, net183 245 199 381 478 
Other expense, net992 221 116 1,107 407 
Provision for income taxes2,196 50 593 2,788 538 
Adjusted EBITDA$765 $446 $648 $1,415 $1,722 
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.


13
v3.24.2.u1
Cover
Aug. 09, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 09, 2024
Entity Registrant Name Mammoth Energy Services, Inc.
Entity File Number 001-37917
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 32-0498321
Entity Address, Address Line One 14201 Caliber Drive,
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Oklahoma City,
Entity Address, State or Province OK
City Area Code (405)
Local Phone Number 608-6007
Entity Address, Postal Zip Code 73134
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol TUSK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001679268
Amendment Flag false
Mammoth Energy Services (NASDAQ:TUSK)
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