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

Rhea-AI Summary

Mammoth Energy Services, Inc. reported a total revenue of $43.2 million for Q1 2024, with a net loss of $11.8 million. Adjusted EBITDA was $4.5 million, down from $30.7 million in Q1 2023. The CEO cited softness in activity due to lower energy prices and milder weather. Capex guidance was lowered to $9 million. Despite challenges, Mammoth expects improved activity levels for the remainder of 2024.

Insights

Financial Analyst

Reviewing Mammoth Energy Services' Q1 2024 financials, there's a stark contrast to the previous year's performance. With total revenue plummeting from $116.3 million to $43.2 million, it's evident that market headwinds have taken a toll. The net loss widening to $11.8 million signals a potentially stressed operating environment. The significant drop in Well Completion Services revenue—from $67.3 million to $8.3 million—highlights a severe decline in activity, particularly concerning given this division's past contribution. The reduced capex guidance by $6 million may be a prudent measure to conserve cash in light of these challenges, but it also suggests a conservative outlook on future revenue streams. It's worth noting the successful repayment of obligations to SPCP Group, which could bolster investor confidence in financial management. However, the outstanding receivable from PREPA, amounting to an approximate $349 million, is a considerable sum and its collection will be critical for liquidity improvement. The high SG&A expenses at 20% of total revenue could be a point of concern, indicating potential inefficiencies that need to be addressed.

Energy Market Analyst

The operational downturn for Mammoth Energy is telling of broader industry trends, especially the dependency on natural gas prices. The softness in the natural gas basins, leading to delayed completions activity, is symptomatic of a volatile energy market. Lower energy prices often result in a pullback in operational activities, as seen with the reduced fleet utilization from 3.6 to 0.6. This strategic response may help align supply with demand, but it also reflects the sensitivity of Mammoth's operations to commodity price swings. Furthermore, the milder weather impacting their Infrastructure Services is a reminder of how exogenous factors, like climate variability, can affect revenue streams. As the energy sector faces increasing unpredictability from both market dynamics and environmental factors, companies like Mammoth must navigate these challenges carefully. Investors should be mindful of the sector's cyclical nature and Mammoth's positioning within it.

Debt and Liquidity Analyst

Mammoth Energy’s increased interest expense, alongside a significant financing charge of $5.5 million due to the termination of the Assignment Agreement with SPCP Group, suggests a heavier debt burden. However, an undrawn revolving credit facility and a solid cash position of $22.0 million as of March 31, 2024, provide some breathing room. The subsequent reduction in available borrowing capacity to $13.6 million as of April 30, 2024, is noticeable and may limit future financial flexibility. The ability to maintain liquidity while managing debt obligations will be a delicate balance moving forward. Investors should keep an eye on Mammoth's cash flow management and its ability to service debt without sacrificing operational capabilities.

OKLAHOMA CITY, May 2, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported financial and operational results for the first quarter ended March 31, 2024.

Financial Overview for the First Quarter 2024:

Total revenue was $43.2 million for the first quarter of 2024 compared to $116.3 million for the same quarter of 2023 and $52.8 million for the fourth quarter of 2023.

Net loss for the first quarter of 2024 was $11.8 million, or $0.25 loss per diluted share, compared to net income of $8.4 million, or $0.17 per diluted share, for the same quarter of 2023 and net loss of $6.0 million, or $0.12 loss per diluted share, for the fourth quarter of 2023.

Adjusted EBITDA (as defined and reconciled below) was $4.5 million for the first quarter of 2024, compared to $30.7 million for the same quarter of 2023 and $10.5 million for the fourth quarter of 2023.

Arty Straehla, Chief Executive Officer of Mammoth commented, "Our results were challenged in the first quarter as activity softness persisted into the first few months of 2024, especially in the natural gas basins in which we operate, which negatively impacted our Well Completion Services division and other oilfield services. This softness resulted primarily from lower energy prices, particularly natural gas, that have caused operators to delay completions activity until later in the year, reducing demand for our services. The first quarter also experienced milder weather than historical trends would have indicated, and this resulted in less storm-related work for our Infrastructure Services business. We continue to prudently assess and manage our costs to more accurately reflect the activity levels of our customers, and as a result, we are proactively lowering our 2024 capex guidance to $9 million, representing a $6 million decrease from our prior guidance.

"As we look ahead to the remainder of 2024, we believe that our first quarter results will serve as the low-water mark for the year. We have improved visibility and expect that we will benefit from increased activity levels later this year. We enter the second quarter with an undrawn revolver and cash on the balance sheet, and we believe Mammoth is well positioned to capitalize on near-term opportunities in the market as well as the increased demand that we anticipate in the second half of the year.

"So far this year, PREPA paid an aggregate of $64 million with respect to our accounts receivable, of which we retained $9.6 million and the remaining $54.4 million was paid to SPCP Group to satisfy, in full, Mammoth's and Cobra's obligations under the previously reported financing arrangement with SPCP Group. These payments enhanced our liquidity position and strengthened the Company. However, the amounts paid to date only represent a portion of the outstanding PREPA receivable. Mammoth, through Cobra, is still owed approximately $349 million in principal and associated interest for work that was completed over five years ago." concluded Straehla.

Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $8.3 million on 380 stages for the first quarter of 2024, compared to $67.3 million on 2,018 stages for the same quarter of 2023 and $16.1 million on 669 stages for the fourth quarter of 2023. On average, 0.6 of the Company's fleets were active for the first quarter of 2024 compared to an average utilization of 3.6 fleets during the same quarter of 2023 and 0.9 fleets during the fourth quarter of 2023.

Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $25.0 million for the first quarter of 2024 compared to $28.3 million for the same quarter of 2023 and $27.2 million for the fourth quarter of 2023. Average crew count was 75 crews during the first quarter of 2024 compared to 88 crews during the same quarter of 2023 and 78 crews during the fourth quarter of 2024.

Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $4.3 million for the first quarter of 2024 compared to $12.5 million for the same quarter of 2023 and $4.5 million for the fourth quarter of 2023. In the first quarter of 2024, the Company sold approximately 146,000 tons of sand at an average sales price of $24.38 per ton compared to sales of approximately 391,000 tons of sand at an average sales price of $31.02 per ton during the same quarter of 2023. In the fourth quarter of 2023, sales were approximately 104,000 tons of sand at an average price of $23.62 per ton. Additionally, during the fourth quarter of 2023, the Company recognized shortfall revenue of approximately $2.0 million.

Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $0.5 million for the first quarter of 2024 compared to $1.4 million for the same quarter of 2023 and $0.6 million for the fourth 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 $6.2 million for the first quarter of 2024 compared to $7.5 million for the same quarter of 2023 and $4.9 million for the fourth quarter of 2023.

Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $8.8 million for the first quarter of 2024 compared to $8.4 million for the same quarter of 2023 and $8.3 million for the fourth quarter of 2023.

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

	Three Months Ended
	March 31,				December 31,
	2024		2023		2023
Cash expenses:
Compensation and benefits	$              4,104		$              4,277		$              3,898
Professional services	2,457		1,929		2,559
Other(a)	1,773		1,911		1,808
Total cash SG&A expense	8,334		8,117		8,265
Non-cash expenses:
Change in provision for expected credit losses	229		(381)		(177)
Stock based compensation	219		647		219
Total non-cash SG&A expense	448		266		42
Total SG&A expense	$              8,782		$              8,383		$              8,307

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 20% for the first quarter of 2024 compared to 7% for the same quarter of 2023 and 16% for the fourth quarter of 2023.

Interest Expense and Financing Charges, net
Interest expense and financing charges, net were $8.1 million for the first quarter of 2024 compared to $3.3 million for the same quarter of 2023 and $6.8 million for the fourth quarter of 2024. The Company recognized a financing charge totaling $5.5 million during the three months ended March 31, 2024 related to the termination of the Assignment Agreement with SPCP Group LLC.

Liquidity
As of March 31, 2024, Mammoth had cash on hand of $22.0 million. As of March 31, 2024, the Company's revolving credit facility was undrawn, the borrowing base was $27.3 million and there was $21.0 million of available borrowing capacity under the revolving credit facility, after giving effect to $6.3 million of outstanding letters of credit. As of March 31, 2024, Mammoth had total liquidity of $43.0 million.

As of April 30, 2024, Mammoth had cash on hand of $15.5 million, no outstanding borrowings under its revolving credit facility, and a borrowing base of $19.9 million. As of April 30, 2024, the Company had $13.6 million of available borrowing capacity under its revolving credit facility and total liquidity of $29.1 million.

Capital Expenditures
The following table summarizes Mammoth's capital expenditures by operating division for the periods indicated (in thousands):

	Three Months Ended
	March 31,				December 31,
	2024		2023		2023
Well completion services(a)	$              2,663		$              5,772		$              3,170
Infrastructure services(b)	683		203		373
Natural sand proppant services(c)	—		—		223
Drilling services(c)	—		—		13
Other(d)	146		—		229
Eliminations	659		61		124
Total capital expenditures	$              4,151		$              6,036		$              4,132

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, May 2, 2024 at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its first 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; 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 by 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 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.

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS		March 31,		December 31,
		2024		2023
CURRENT ASSETS		(in thousands)
Cash and cash equivalents		$                     22,021		$                     16,556
Restricted cash		—		7,742
Accounts receivable, net		389,520		447,202
Inventories		12,821		12,653
Prepaid expenses		8,982		12,181
Other current assets		554		591
Total current assets		433,898		496,925
Property, plant and equipment, net		109,232		113,905
Sand reserves		58,530		58,528
Operating lease right-of-use assets		7,990		9,551
Goodwill		9,214		9,214
Deferred income tax asset		1,204		1,844
Other non-current assets		8,002		8,512
Total assets		$                   628,070		$                   698,479
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable		$                     21,506		$                     27,508
Accrued expenses and other current liabilities		34,117		86,713
Accrued expenses and other current liabilities - related parties		—		1,241
Current operating lease liability		5,212		5,771
Income taxes payable		62,482		61,320
Total current liabilities		123,317		182,553
Long-term debt from related parties		45,630		42,809
Deferred income tax liabilities		597		628
Long-term operating lease liability		2,617		3,534
Asset retirement obligation		4,162		4,140
Other long-term liabilities		3,483		4,715
Total liabilities		179,806		238,379
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 48,008,319 and 47,941,652 issued and outstanding at March 31, 2024 and December 31, 2023		480		479
Additional paid in capital		539,776		539,558
Accumulated deficit		(88,128)		(76,317)
Accumulated other comprehensive loss		(3,864)		(3,620)
Total equity		448,264		460,100
Total liabilities and equity		$                   628,070		$                   698,479

 

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
	Three Months Ended
	March 31,				December 31,
	2024		2023		2023
	(in thousands, except per share amounts)
REVENUE
Services revenue	$          38,814		$        103,637		$          48,087
Services revenue - related parties	68		220		139
Product revenue	4,307		12,463		4,556
Total revenue	43,189		116,320		52,782
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $5,874, $11,762, and $6,931, respectively, for the three months ended March 31, 2024, March 31, 2023 and December 31, 2023)	34,483		80,977		40,972
Services cost of revenue - related parties	118		31		114
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $1,146, $1,186, and $1,339, respectively, for the three months ended March 31, 2024, March 31, 2023 and December 31, 2023)	5,983		7,985		4,692
Selling, general and administrative	8,782		8,383		8,307
Depreciation, depletion, amortization and accretion	7,021		12,956		8,271
Gains on disposal of assets, net	(1,166)		(361)		(2,757)
Total cost and expenses	55,221		109,971		59,599
Operating (loss) income	(12,032)		6,349		(6,817)
OTHER INCOME (EXPENSE)
Interest expense and financing charges, net	(6,637)		(3,289)		(5,570)
Interest expense and financing charges, net - related parties	(1,500)		—		(1,241)
Other income, net	10,143		8,624		10,964
Total other income	2,006		5,335		4,153
(Loss) income before income taxes	(10,026)		11,684		(2,664)
Provision for income taxes	1,785		3,333		3,291
Net (loss) income	$        (11,811)		$            8,351		$          (5,955)
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment	(244)		3		266
Comprehensive (loss) income	$        (12,055)		$            8,354		$          (5,689)
Net (loss) income per share (basic)	$            (0.25)		$             0.18		$            (0.12)
Net (loss) income per share (diluted)	$            (0.25)		$             0.17		$            (0.12)
Weighted average number of shares outstanding (basic)	47,964		47,443		47,942
Weighted average number of shares outstanding (diluted)	47,964		48,002		47,942

 

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three Months Ended
	March 31,
	2024		2023
	(in thousands)
Cash flows from operating activities:
Net (loss) income	$                        (11,811)		$                           8,351
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Stock based compensation	219		647
Depreciation, depletion, accretion and amortization	7,021		12,956
Amortization of debt origination costs	372		188
Change in provision for expected credit losses	229		(381)
Gains on disposal of assets	(1,166)		(361)
Deferred income taxes	609		(27)
Other	111		174
Changes in assets and liabilities:
Accounts receivable, net	56,623		(18,534)
Inventories	(168)		(1,347)
Prepaid expenses and other assets	3,236		3,203
Accounts payable	(5,152)		8,602
Accrued expenses and other liabilities	(5,441)		(13,262)
Accrued expenses and other liabilities - related parties	1,500		—
Income taxes payable	1,167		3,031
Net cash provided by operating activities	47,349		3,240
Cash flows from investing activities:
Purchases of property and equipment	(4,151)		(6,036)
Proceeds from disposal of property and equipment	3,049		330
Net cash used in investing activities	(1,102)		(5,706)
Cash flows from financing activities:
Borrowings on long-term debt	—		66,700
Repayments of long-term debt	—		(65,606)
Payments on financing transaction	(46,837)		—
Payments on sale-leaseback transaction	(1,112)		(1,214)
Principal payments on financing leases and equipment financing notes	(503)		(2,044)
Debt issuance costs	(37)		—
Other	—		(919)
Net cash used in financing activities	(48,489)		(3,083)
Effect of foreign exchange rate on cash	(35)		(6)
Net change in cash, cash equivalents and restricted cash	(2,277)		(5,555)
Cash, cash equivalents and restricted cash at beginning of period	24,298		17,282
Cash, cash equivalents and restricted cash at end of period	$                         22,021		$                         11,727
Supplemental disclosure of cash flow information:
Cash paid for interest	$                              741		$                           3,108
Cash paid for income taxes, net of refunds received	$                                 8		$                              (26)
Supplemental disclosure of non-cash transactions:
Interest paid in kind	$                           2,741		$                               —
Purchases of property and equipment included in accounts payable	$                           2,500		$                           5,917
Right-of-use assets obtained for financing lease liabilities	$                              106		$                               —

 

MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Three Months Ended March 31, 2024	Well Completion	Infrastructure	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$            8,159	$           25,038	$            4,307	$               511	$            5,174	$                 —	$           43,189
Intersegment revenues	114	—	—	—	1,005	(1,119)	—
Total revenue	8,273	25,038	4,307	511	6,179	(1,119)	43,189
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	8,338	21,533	5,840	1,050	3,823	—	40,584
Intersegment cost of revenues	218	25	—	2	874	(1,119)	—
Total cost of revenue	8,556	21,558	5,840	1,052	4,697	(1,119)	40,584
Selling, general and administrative	1,073	5,617	1,031	212	849	—	8,782
Depreciation, depletion, amortization and accretion	3,264	718	1,146	874	1,019	—	7,021
Losses (gains) on disposal of assets, net	250	(483)	—	2	(935)	—	(1,166)
Operating (loss) income	(4,870)	(2,372)	(3,710)	(1,629)	549	—	(12,032)
Interest expense and financing charges, net	569	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)

 

Three Months Ended March 31, 2023	Well Completion	Infrastructure	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$           67,179	$           28,280	$           12,442	$            1,355	$            7,064	$                 —	$         116,320
Intersegment revenues	121	—	25	—	450	(596)	—
Total revenue	67,300	28,280	12,467	1,355	7,514	(596)	116,320
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	52,037	22,476	7,860	1,466	5,154	—	88,993
Intersegment cost of revenues	478	11	—	14	93	(596)	—
Total cost of revenue	52,515	22,487	7,860	1,480	5,247	(596)	88,993
Selling, general and administrative	2,492	4,211	503	146	1,031	—	8,383
Depreciation, depletion, amortization and accretion	4,817	3,374	1,187	1,229	2,349	—	12,956
Gains on disposal of assets, net	—	(127)	(16)	—	(218)	—	(361)
Operating income (loss)	7,476	(1,665)	2,933	(1,500)	(895)	—	6,349
Interest expense and financing charges, net	929	1,845	156	126	233	—	3,289
Other (income) expense, net	—	(8,808)	(2)	—	186	—	(8,624)
Income (loss) before income taxes	$            6,547	$            5,298	$            2,779	$           (1,626)	$           (1,314)	$                 —	$           11,684

 

Three Months Ended December 31, 2023	Well Completion	Infrastructure	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$           15,962	$           27,229	$            4,464	$               625	$            4,502	$                 —	$           52,782
Intersegment revenues	116	—	—	—	360	(476)	—
Total revenue	16,078	27,229	4,464	625	4,862	(476)	52,782
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	14,248	22,668	4,419	1,059	3,384	—	45,778
Intersegment cost of revenues	216	119	—	—	141	(476)	—
Total cost of revenue	14,464	22,787	4,419	1,059	3,525	(476)	45,778
Selling, general and administrative	1,365	4,987	973	193	789	—	8,307
Depreciation, depletion, amortization and accretion	3,506	1,023	1,339	1,017	1,386	—	8,271
(Gains) losses on disposal of assets, net	(75)	(71)	3	(1,577)	(1,037)	—	(2,757)
Operating (loss) income	(3,182)	(1,497)	(2,270)	(67)	199	—	(6,817)
Interest expense and financing charges, net	1,975	4,394	119	113	210	—	6,811
Other expense (income), net	1	(10,539)	(5)	(33)	(388)	—	(10,964)
(Loss) income before income taxes	$           (5,158)	$            4,648	$           (2,384)	$             (147)	$               377	$                 —	$           (2,664)

 

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 Ended
	March 31,				December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:	2024		2023		2023
Net (loss) income	$           (11,811)		$               8,351		$             (5,955)
Depreciation, depletion, amortization and accretion expense	7,021		12,956		8,271
Gains on disposal of assets, net	(1,166)		(361)		(2,757)
Stock based compensation	219		647		219
Interest expense and financing charges, net	8,137		3,289		6,811
Other income, net	(10,143)		(8,624)		(10,964)
Provision for income taxes	1,785		3,333		3,291
Interest on trade accounts receivable	10,485		11,112		11,543
Adjusted EBITDA	$               4,527		$             30,703		$             10,459

 

Well Completion Services
	Three Months Ended
	March 31,				December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:	2024		2023		2023
Net (loss) income	$             (5,439)		$               6,547		$             (5,158)
Depreciation and amortization expense	3,264		4,817		3,506
Losses (gains) on disposal of assets, net	250		—		(75)
Stock based compensation	44		291		57
Interest expense and financing charges, net	569		929		1,975
Other expense, net	—		—		1
Adjusted EBITDA	$             (1,312)		$             12,584		$                  306

 

Infrastructure Services
	Three Months Ended
	March 31,				December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:	2024		2023		2023
Net (loss) income	$                (405)		$               2,452		$               1,844
Depreciation and amortization expense	718		3,374		1,023
Gains on disposal of assets, net	(483)		(127)		(71)
Stock based compensation	117		230		103
Interest expense and financing charges, net	7,099		1,845		4,394
Other income, net	(10,258)		(8,808)		(10,539)
Provision for income taxes	1,192		2,847		2,804
Interest on trade accounts receivable	10,485		11,112		11,543
Adjusted EBITDA	$               8,465		$             12,925		$             11,101

 

Natural Sand Proppant Services
	Three Months Ended
	March 31,				December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:	2024		2023		2023
Net (loss) income	$             (3,851)		$               2,779		$             (2,384)
Depreciation, depletion, amortization and accretion expense	1,146		1,187		1,339
(Gains) losses on disposal of assets, net	—		(16)		3
Stock based compensation	38		77		38
Interest expense and financing charges, net	142		156		119
Other income, net	(1)		(2)		(5)
Adjusted EBITDA	$             (2,526)		$               4,181		$                (890)

 

Drilling Services
	Three Months Ended
	March 31,				December 31,
Reconciliation of net loss to Adjusted EBITDA:	2024		2023		2023
Net loss	$             (1,757)		$             (1,626)		$                (147)
Depreciation expense	874		1,229		1,017
Losses (gains) on disposal of assets, net	2		—		(1,577)
Stock based compensation	5		8		5
Interest expense and financing charges, net	128		126		113
Other income, net	—		—		(33)
Adjusted EBITDA	$                (748)		$                (263)		$                (622)

 

Other Services(a)
	Three Months Ended
	March 31,				December 31,
Reconciliation of net loss to Adjusted EBITDA:	2024		2023		2023
Net loss	$                (359)		$             (1,801)		$                (110)
Depreciation, amortization and accretion expense	1,019		2,349		1,386
Gains on disposal of assets, net	(935)		(218)		(1,037)
Stock based compensation	15		41		16
Interest expense and financing charges, net	199		233		210
Other expense (income), net	116		186		(388)
Provision for income taxes	593		486		487
Adjusted EBITDA	$                  648		$               1,276		$                  564

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.

 

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SOURCE Mammoth Energy Services, Inc.

FAQ

What was Mammoth Energy Services, Inc.'s total revenue for Q1 2024?

Mammoth Energy Services, Inc. reported a total revenue of $43.2 million for Q1 2024.

What was the net loss for Mammoth Energy Services, Inc. in Q1 2024?

Mammoth Energy Services, Inc. had a net loss of $11.8 million in Q1 2024.

What was Mammoth Energy Services, Inc.'s adjusted EBITDA for Q1 2024?

Mammoth Energy Services, Inc.'s adjusted EBITDA for Q1 2024 was $4.5 million.

Why did Mammoth Energy Services, Inc. lower its capex guidance for 2024?

Mammoth Energy Services, Inc. lowered its capex guidance to $9 million for 2024 due to softness in activity, lower energy prices, and milder weather.

What does Mammoth Energy Services, Inc. expect for the remainder of 2024?

Mammoth Energy Services, Inc. expects improved activity levels for the remainder of 2024.