Mammoth Energy Services, Inc. Announces Second Quarter 2021 Operational and Financial Results
Mammoth Energy Services (TUSK) reported a net loss of $34.8 million ($0.75 per share) for Q2 2021, worsening from a loss of $15.2 million a year prior. Total revenue fell to $47.4 million, down from $60.1 million year-over-year and $66.8 million from Q1 2021. Adjusted EBITDA was -$5.5 million. The infrastructure services division generated $17.2 million in revenue, a drop from $30.2 million last year. Despite challenges, the company plans to enhance its position in the infrastructure sector and anticipates increased activity in its sand business.
- Natural sand proppant services revenue increased to $6.9 million from $6.2 million year-over-year.
- Improved commodities pricing is leading to increased equipment utilization.
- Company plans to deploy a second hydraulic fracturing fleet in mid-August.
- Total revenue dropped significantly from $60.1 million year-over-year.
- Net loss increased to $34.8 million compared to $15.2 million last year.
- Infrastructure services revenue fell to $17.2 million from $30.2 million year-over-year.
OKLAHOMA CITY, July 30, 2021 (GLOBE NEWSWIRE) -- Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June 30, 2021.
Financial Overview for the Second Quarter 2021:
Total revenue was
Net loss for the second quarter of 2021 was
Adjusted EBITDA (as defined and reconciled below) was (
Arty Straehla, Chief Executive Officer of Mammoth commented, “While second quarter results did not meet expectations, internally we remain focused on improving near-term results as we continue migrating the Company further into the infrastructure space to enhance long-term growth and sustainability. In our energy businesses, improved commodities pricing is generating some positive industry movement and increased equipment utilization as we are ramping up to put a second hydraulic fracturing fleet to work in mid-August. We are also beginning to experience increased market activity in our sand business.”
“In the infrastructure space, improving macro trends related to increased project bidding levels and funding capacity in the sector persists. We continue to pursue opportunities within this sector as we strategically structure our service offerings for growth, both the geographic footprint and depth of projects.”
Straehla continued, “Lastly, we are continuing our efforts to collect our receivable from PREPA for work performed by our subsidiary Cobra in Puerto Rico. We believe that published documentation to date continues to show that our team performed a difficult job in a difficult environment to save lives and aid the people of Puerto Rico in their time of need.”
Infrastructure Services
Mammoth's infrastructure services division contributed revenue (inclusive of inter-segment revenue) of
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of
Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of
As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.
Other Services
Mammoth's other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation, remote accommodations, equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of
As a result of market conditions, the Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.
Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”) expenses were
Following is a breakout of SG&A expense (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||
| Cash expenses: | |||||||||||||||||||
| Compensation and benefits | $ | 3,333 | $ | 3,720 | $ | 4,694 | $ | 8,027 | $ | 7,690 | |||||||||
| Professional services | 5,806 | 6,147 | 3,405 | 9,211 | 9,684 | ||||||||||||||
| Other(a) | 2,464 | 2,100 | 2,342 | 4,806 | 4,409 | ||||||||||||||
| Total cash SG&A expense | 11,603 | 11,967 | 10,441 | 22,044 | 21,783 | ||||||||||||||
| Non-cash expenses: | |||||||||||||||||||
| Bad debt provision | 76 | 1,624 | 10,125 | 10,201 | 1,679 | ||||||||||||||
| Stock based compensation | 304 | 135 | 282 | 586 | 1,035 | ||||||||||||||
| Total non-cash SG&A expense | 380 | 1,759 | 10,407 | 10,787 | 2,714 | ||||||||||||||
| Total SG&A expense | $ | 11,983 | $ | 13,726 | $ | 20,848 | $ | 32,831 | $ | 24,497 | |||||||||
| 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
Liquidity
As of June 30, 2021, Mammoth had cash on hand of
As of July 27, 2021, Mammoth had cash on hand of
Capital Expenditures
The following table summarizes Mammoth's capital expenditures by operating division for the periods indicated (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||
| Infrastructure services(a) | $ | 104 | $ | 43 | $ | 189 | $ | 293 | $ | 43 | |||||||||
| Well completion services(b) | 388 | 2,450 | 412 | 800 | 3,054 | ||||||||||||||
| Natural sand proppant services(c) | 5 | 354 | 408 | 413 | 875 | ||||||||||||||
| Drilling services(d) | 1 | 67 | 37 | 38 | 67 | ||||||||||||||
| Other(e) | 63 | 10 | 102 | 165 | 385 | ||||||||||||||
| Total capital expenditures | $ | 561 | $ | 2,924 | $ | 1,148 | $ | 1,709 | $ | 4,424 | |||||||||
| a. Capital expenditures primarily for tooling and other equipment for the periods presented. | |||||||||||||||||||
| b. Capital expenditures primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and water transfer equipment for the periods presented. | |||||||||||||||||||
| c. Capital expenditures primarily for maintenance for the periods presented. | |||||||||||||||||||
| d. Capital expenditures primarily for maintenance for the periods presented. | |||||||||||||||||||
| e. 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, July 30, 2021 at 8:00 a.m. CDT (9:00 a.m. EDT) to discuss its second quarter 2021 financial and operational results. The telephone number to access the conference call is 216-562-0385. The conference call will also be webcast live on https://ir.mammothenergy.com/events-presentations.
About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth’s suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on 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 duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments; 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 by the Puerto Rico Electric Power Authority and contracts for our pressure pumping services and natural sand proppant services; 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; the loss of or interruption in operations of one or more of Mammoth's significant suppliers or customers; the outcome or settlement of our litigation matters, including our litigation with Gulfport Energy Corporation and MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations ; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; 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 | June 30, | December 31, | ||||||||
| 2021 | 2020 | |||||||||
| CURRENT ASSETS | (in thousands) | |||||||||
| Cash and cash equivalents | $ | 11,038 | $ | 14,822 | ||||||
| Short-term investment | 1,757 | 1,750 | ||||||||
| Accounts receivable, net | 413,245 | 393,112 | ||||||||
| Receivables from related parties, net | 80 | 28,461 | ||||||||
| Inventories | 10,212 | 12,020 | ||||||||
| Prepaid expenses | 7,936 | 13,825 | ||||||||
| Other current assets | 708 | 758 | ||||||||
| Other current assets - related parties | — | — | ||||||||
| Total current assets | 444,976 | 464,748 | ||||||||
| Property, plant and equipment, net | 210,397 | 251,262 | ||||||||
| Sand reserves | 65,491 | 65,876 | ||||||||
| Operating lease right-of-use assets | 15,777 | 20,179 | ||||||||
| Intangible assets, net - customer relationships | 321 | 408 | ||||||||
| Intangible assets, net - trade names | 3,946 | 4,366 | ||||||||
| Goodwill | 12,608 | 12,608 | ||||||||
| Deferred income tax asset | 8,094 | — | ||||||||
| Other non-current assets | 4,329 | 5,115 | ||||||||
| Total assets | $ | 765,939 | $ | 824,562 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 39,505 | $ | 40,316 | ||||||
| Payables to related parties | 4 | 3 | ||||||||
| Accrued expenses and other current liabilities | 63,375 | 44,408 | ||||||||
| Current operating lease liability | 7,255 | 8,618 | ||||||||
| Current portion of long-term debt | 1,430 | 1,165 | ||||||||
| Income taxes payable | 35,198 | 34,088 | ||||||||
| Total current liabilities | 146,767 | 128,598 | ||||||||
| Long-term debt, net of current portion | 62,811 | 81,338 | ||||||||
| Deferred income tax liabilities | 12,041 | 24,741 | ||||||||
| Long-term operating lease liability | 8,293 | 11,377 | ||||||||
| Asset retirement obligation | 3,666 | 4,746 | ||||||||
| Other liabilities | 15,159 | 10,435 | ||||||||
| Total liabilities | 248,737 | 261,235 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| EQUITY | ||||||||||
| Equity: | ||||||||||
| Common stock, | 467 | 458 | ||||||||
| Additional paid in capital | 537,728 | 537,039 | ||||||||
| Retained earnings | (18,335 | ) | 28,895 | |||||||
| Accumulated other comprehensive loss | (2,658 | ) | (3,065 | ) | ||||||
| Total equity | 517,202 | 563,327 | ||||||||
| Total liabilities and equity | $ | 765,939 | $ | 824,562 | ||||||
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||
| REVENUE | ||||||||||||||||||||||||
| Services revenue | $ | 40,867 | $ | 44,878 | $ | 42,691 | $ | 83,558 | $ | 113,723 | ||||||||||||||
| Services revenue - related parties | 90 | 8,650 | 14,986 | 15,076 | 26,663 | |||||||||||||||||||
| Product revenue | 6,483 | 4,706 | 6,982 | 13,465 | 13,356 | |||||||||||||||||||
| Product revenue - related parties | — | 1,875 | 2,145 | 2,145 | 3,750 | |||||||||||||||||||
| Total revenue | 47,440 | 60,109 | 66,804 | 114,244 | 157,492 | |||||||||||||||||||
| COST AND EXPENSES | ||||||||||||||||||||||||
| Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of | 43,103 | 42,255 | 42,062 | 85,165 | 112,952 | |||||||||||||||||||
| Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of | 107 | 97 | 109 | 216 | 198 | |||||||||||||||||||
| Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of | 7,165 | 6,401 | 5,909 | 13,074 | 17,509 | |||||||||||||||||||
| Selling, general and administrative | 11,791 | 13,528 | 20,655 | 32,446 | 24,084 | |||||||||||||||||||
| Selling, general and administrative - related parties | 192 | 198 | 193 | 385 | 413 | |||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 20,265 | 24,116 | 21,146 | 41,411 | 49,998 | |||||||||||||||||||
| Impairment of goodwill | — | — | — | — | 54,973 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 12,897 | |||||||||||||||||||
| Total cost and expenses | 82,623 | 86,595 | 90,074 | 172,697 | 273,024 | |||||||||||||||||||
| Operating loss | (35,183 | ) | (26,486 | ) | (23,270 | ) | (58,453 | ) | (115,532 | ) | ||||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||
| Interest expense, net | (1,169 | ) | (1,471 | ) | (1,225 | ) | (2,394 | ) | (3,109 | ) | ||||||||||||||
| Other (expense) income, net | (14,998 | ) | 8,137 | 9,947 | (5,051 | ) | 15,546 | |||||||||||||||||
| Other (expense) income, net - related parties | — | 1,133 | (515 | ) | (515 | ) | 1,133 | |||||||||||||||||
| Total other (expense) income | (16,167 | ) | 7,799 | 8,207 | (7,960 | ) | 13,570 | |||||||||||||||||
| Loss before income taxes | (51,350 | ) | (18,687 | ) | (15,063 | ) | (66,413 | ) | (101,962 | ) | ||||||||||||||
| Benefit for income taxes | (16,560 | ) | (3,482 | ) | (2,623 | ) | (19,183 | ) | (2,786 | ) | ||||||||||||||
| Net loss | $ | (34,790 | ) | $ | (15,205 | ) | $ | (12,440 | ) | $ | (47,230 | ) | $ | (99,176 | ) | |||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||
| Foreign currency translation adjustment, net of tax of | 239 | 668 | 168 | 407 | (746 | ) | ||||||||||||||||||
| Comprehensive loss | $ | (34,551 | ) | $ | (14,537 | ) | $ | (12,272 | ) | $ | (46,823 | ) | $ | (99,922 | ) | |||||||||
| Net loss per share (basic) | $ | (0.75 | ) | $ | (0.33 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | (2.18 | ) | |||||||||
| Net loss per share (diluted) | $ | (0.75 | ) | $ | (0.33 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | (2.18 | ) | |||||||||
| Weighted average number of shares outstanding (basic) | 46,402 | 45,727 | 45,932 | 46,168 | 45,521 | |||||||||||||||||||
| Weighted average number of shares outstanding (diluted) | 46,402 | 45,727 | 45,932 | 46,168 | 45,521 | |||||||||||||||||||
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended | |||||||||
| June 30, | |||||||||
| 2021 | 2020 | ||||||||
| (in thousands) | |||||||||
| Cash flows from operating activities: | |||||||||
| Net loss | $ | (47,230 | ) | $ | (99,176 | ) | |||
| Adjustments to reconcile net loss to cash provided by operating activities: | |||||||||
| Stock based compensation | 698 | 1,246 | |||||||
| Depreciation, depletion, accretion and amortization | 41,411 | 49,998 | |||||||
| Amortization of coil tubing strings | — | 359 | |||||||
| Amortization of debt origination costs | 296 | 577 | |||||||
| Bad debt expense | 10,201 | 1,679 | |||||||
| Gain on disposal of property and equipment | (1,599 | ) | (1,451 | ) | |||||
| Impairment of goodwill | — | 54,973 | |||||||
| Impairment of other long-lived assets | — | 12,897 | |||||||
| Deferred income taxes | (20,898 | ) | 931 | ||||||
| Other | 548 | 623 | |||||||
| Changes in assets and liabilities: | |||||||||
| Accounts receivable, net | (30,386 | ) | 7,782 | ||||||
| Receivables from related parties | 28,381 | (19,793 | ) | ||||||
| Inventories | 1,808 | 4,651 | |||||||
| Prepaid expenses and other assets | 5,923 | 6,079 | |||||||
| Accounts payable | (1,546 | ) | (7,514 | ) | |||||
| Payables to related parties | 1 | (512 | ) | ||||||
| Accrued expenses and other liabilities | 15,756 | (2,818 | ) | ||||||
| Income taxes payable | 1,107 | (3,697 | ) | ||||||
| Net cash provided by operating activities | 4,471 | 6,834 | |||||||
| Cash flows from investing activities: | |||||||||
| Purchases of property and equipment | (1,709 | ) | (4,348 | ) | |||||
| Purchases of property and equipment from related parties | — | (76 | ) | ||||||
| Proceeds from disposal of property and equipment | 4,632 | 2,544 | |||||||
| Net cash provided by (used in) investing activities | 2,923 | (1,880 | ) | ||||||
| Cash flows from financing activities: | |||||||||
| Borrowings on long-term debt | 12,000 | 22,800 | |||||||
| Repayments of long-term debt | (30,269 | ) | (13,550 | ) | |||||
| Proceeds from sale leaseback transaction | 9,473 | — | |||||||
| Payments on sale leaseback transaction | (1,278 | ) | — | ||||||
| Principal payments on financing leases and equipment financing notes | (1,140 | ) | (914 | ) | |||||
| Debt issuance costs | — | (1,000 | ) | ||||||
| Net cash (used in) provided by financing activities | (11,214 | ) | 7,336 | ||||||
| Effect of foreign exchange rate on cash | 36 | (137 | ) | ||||||
| Net change in cash and cash equivalents | (3,784 | ) | 12,153 | ||||||
| Cash and cash equivalents at beginning of period | 14,822 | 5,872 | |||||||
| Cash and cash equivalents at end of period | $ | 11,038 | $ | 18,025 | |||||
| Supplemental disclosure of cash flow information: | |||||||||
| Cash paid for interest | $ | 2,134 | $ | 2,683 | |||||
| Cash paid (recovered) for income taxes | $ | 964 | $ | (6 | ) | ||||
| Supplemental disclosure of non-cash transactions: | |||||||||
| Purchases of property and equipment included in accounts payable | $ | 2,035 | $ | 2,780 | |||||
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
| Three months ended June 30, 2021 | Infrastructure | Well Completion(a) | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenue from external customers | $ | 17,220 | $ | 17,337 | $ | 6,886 | $ | 1,130 | $ | 4,867 | $ | — | $ | 47,440 | ||||||||||||||
| Intersegment revenues | — | 36 | — | 17 | 682 | (735 | ) | — | ||||||||||||||||||||
| Total revenue | 17,220 | 17,373 | 6,886 | 1,147 | 5,549 | (735 | ) | 47,440 | ||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 19,881 | 16,396 | 7,400 | 1,568 | 5,130 | — | 50,375 | |||||||||||||||||||||
| Intersegment cost of revenues | 50 | 666 | — | — | 19 | (735 | ) | — | ||||||||||||||||||||
| Total cost of revenue | 19,931 | 17,062 | 7,400 | 1,568 | 5,149 | (735 | ) | 50,375 | ||||||||||||||||||||
| Selling, general and administrative | 7,383 | 1,893 | 991 | 395 | 1,321 | — | 11,983 | |||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 5,899 | 6,447 | 2,387 | 2,079 | 3,453 | — | 20,265 | |||||||||||||||||||||
| Operating loss | (15,993 | ) | (8,029 | ) | (3,892 | ) | (2,895 | ) | (4,374 | ) | — | (35,183 | ) | |||||||||||||||
| Interest expense, net | 656 | 219 | 90 | 58 | 146 | — | 1,169 | |||||||||||||||||||||
| Other expense (income), net | 15,904 | 1 | (53 | ) | (127 | ) | (727 | ) | — | 14,998 | ||||||||||||||||||
| Loss before income taxes | $ | (32,553 | ) | $ | (8,249 | ) | $ | (3,929 | ) | $ | (2,826 | ) | $ | (3,793 | ) | $ | — | $ | (51,350 | ) | ||||||||
| Three months ended June 30, 2020 | Infrastructure | Well Completion(a) | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenue from external customers | $ | 30,249 | $ | 16,125 | $ | 6,237 | $ | 1,250 | $ | 6,248 | $ | — | $ | 60,109 | ||||||||||||||
| Intersegment revenues | — | 419 | — | — | 584 | (1,003 | ) | — | ||||||||||||||||||||
| Total revenue | 30,249 | 16,544 | 6,237 | 1,250 | 6,832 | (1,003 | ) | 60,109 | ||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 25,217 | 8,375 | 6,394 | 2,012 | 6,755 | — | 48,753 | |||||||||||||||||||||
| Intersegment cost of revenues | 27 | 333 | — | 21 | 622 | (1,003 | ) | — | ||||||||||||||||||||
| Total cost of revenue | 25,244 | 8,708 | 6,394 | 2,033 | 7,377 | (1,003 | ) | 48,753 | ||||||||||||||||||||
| Selling, general and administrative | 7,830 | 1,456 | 1,378 | 1,331 | 1,731 | — | 13,726 | |||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 7,500 | 7,675 | 2,358 | 2,671 | 3,912 | — | 24,116 | |||||||||||||||||||||
| Operating loss | (10,325 | ) | (1,295 | ) | (3,893 | ) | (4,785 | ) | (6,188 | ) | — | (26,486 | ) | |||||||||||||||
| Interest expense, net | 716 | 329 | 69 | 132 | 225 | — | 1,471 | |||||||||||||||||||||
| Other (income) expense, net | (8,004 | ) | (1,179 | ) | (2 | ) | (298 | ) | 213 | — | (9,270 | ) | ||||||||||||||||
| Loss before income taxes | $ | (3,037 | ) | $ | (445 | ) | $ | (3,960 | ) | $ | (4,619 | ) | $ | (6,626 | ) | $ | — | $ | (18,687 | ) | ||||||||
| Three months ended March 31, 2021 | Infrastructure | Well Completion(a) | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenue from external customers | $ | 29,257 | $ | 22,901 | $ | 8,705 | $ | 919 | $ | 5,022 | $ | — | $ | 66,804 | ||||||||||||||
| Intersegment revenues | — | 54 | — | 14 | 640 | (708 | ) | — | ||||||||||||||||||||
| Total revenue | 29,257 | 22,955 | 8,705 | 933 | 5,662 | (708 | ) | 66,804 | ||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 26,458 | 9,003 | 5,862 | 1,604 | 5,153 | — | 48,080 | |||||||||||||||||||||
| Intersegment cost of revenues | 45 | 394 | — | — | 269 | (708 | ) | — | ||||||||||||||||||||
| Total cost of revenue | 26,503 | 9,397 | 5,862 | 1,604 | 5,422 | (708 | ) | 48,080 | ||||||||||||||||||||
| Selling, general and administrative | 6,253 | 10,612 | 2,049 | 422 | 1,512 | — | 20,848 | |||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 6,667 | 6,683 | 2,140 | 2,165 | 3,491 | — | 21,146 | |||||||||||||||||||||
| Operating loss | (10,166 | ) | (3,737 | ) | (1,346 | ) | (3,258 | ) | (4,763 | ) | — | (23,270 | ) | |||||||||||||||
| Interest expense, net | 661 | 254 | 93 | 63 | 154 | — | 1,225 | |||||||||||||||||||||
| Other (income) expense, net | (9,310 | ) | 439 | (794 | ) | (9 | ) | 242 | — | (9,432 | ) | |||||||||||||||||
| Loss before income taxes | $ | (1,517 | ) | $ | (4,430 | ) | $ | (645 | ) | $ | (3,312 | ) | $ | (5,159 | ) | $ | — | $ | (15,063 | ) | ||||||||
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
| Six months ended June 30, 2021 | Infrastructure | Well Completion(a) | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenue from external customers | $ | 46,476 | $ | 40,238 | $ | 15,592 | $ | 2,049 | $ | 9,889 | $ | — | $ | 114,244 | ||||||||||||||
| Intersegment revenues | — | 90 | — | 31 | 1,322 | (1,443 | ) | — | ||||||||||||||||||||
| Total revenue | 46,476 | 40,328 | 15,592 | 2,080 | 11,211 | (1,443 | ) | 114,244 | ||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 46,340 | 25,399 | 13,262 | 3,173 | 10,281 | — | 98,455 | |||||||||||||||||||||
| Intersegment cost of revenues | 95 | 1,060 | — | — | 288 | (1,443 | ) | — | ||||||||||||||||||||
| Total cost of revenue | 46,435 | 26,459 | 13,262 | 3,173 | 10,569 | (1,443 | ) | 98,455 | ||||||||||||||||||||
| Selling, general and administrative | 13,635 | 12,505 | 3,040 | 818 | 2,833 | — | 32,831 | |||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 12,566 | 13,130 | 4,527 | 4,242 | 6,946 | — | 41,411 | |||||||||||||||||||||
| Operating loss | (26,160 | ) | (11,766 | ) | (5,237 | ) | (6,153 | ) | (9,137 | ) | — | (58,453 | ) | |||||||||||||||
| Interest expense, net | 1,317 | 473 | 183 | 121 | 300 | — | 2,394 | |||||||||||||||||||||
| Other expense (income), net | 6,593 | 440 | (847 | ) | (135 | ) | (485 | ) | — | 5,566 | ||||||||||||||||||
| Loss before income taxes | $ | (34,070 | ) | $ | (12,679 | ) | $ | (4,573 | ) | $ | (6,139 | ) | $ | (8,952 | ) | $ | — | $ | (66,413 | ) | ||||||||
| Six months ended June 30, 2020 | Infrastructure | Well Completion(a) | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenue from external customers | $ | 55,724 | $ | 58,811 | $ | 16,391 | $ | 5,973 | $ | 20,593 | $ | — | $ | 157,492 | ||||||||||||||
| Intersegment revenues | — | 1,052 | 95 | 5 | 1,360 | (2,512 | ) | — | ||||||||||||||||||||
| Total revenue | 55,724 | 59,863 | 16,486 | 5,978 | 21,953 | (2,512 | ) | 157,492 | ||||||||||||||||||||
| Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 51,897 | 33,943 | 17,691 | 7,637 | 19,491 | — | 130,659 | |||||||||||||||||||||
| Intersegment cost of revenues | 35 | 961 | — | 152 | 1,364 | (2,512 | ) | — | ||||||||||||||||||||
| Total cost of revenue | 51,932 | 34,904 | 17,691 | 7,789 | 20,855 | (2,512 | ) | 130,659 | ||||||||||||||||||||
| Selling, general and administrative | 11,774 | 3,627 | 2,680 | 2,394 | 4,022 | — | 24,497 | |||||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 15,122 | 16,157 | 4,681 | 5,520 | 8,518 | — | 49,998 | |||||||||||||||||||||
| Impairment of goodwill | — | 53,406 | — | — | 1,567 | — | 54,973 | |||||||||||||||||||||
| Impairment of other long-lived assets | — | 4,203 | — | 326 | 8,368 | — | 12,897 | |||||||||||||||||||||
| Operating loss | (23,104 | ) | (52,434 | ) | (8,566 | ) | (10,051 | ) | (21,377 | ) | — | (115,532 | ) | |||||||||||||||
| Interest expense, net | 1,467 | 605 | 147 | 389 | 501 | — | 3,109 | |||||||||||||||||||||
| Other (income) expense, net | (15,707 | ) | (1,288 | ) | (39 | ) | (271 | ) | 626 | — | (16,679 | ) | ||||||||||||||||
| Loss before income taxes | $ | (8,864 | ) | $ | (51,751 | ) | $ | (8,674 | ) | $ | (10,169 | ) | $ | (22,504 | ) | $ | — | $ | (101,962 | ) | ||||||||
| a. Mammoth changed the name of its pressure pumping segment to the well completion segment during the fourth quarter of 2020. | ||||||||||||||||||||||||||||
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion expense, impairment of goodwill, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets and interest on trade accounts receivable) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth's operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.
The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income (loss) on a consolidated basis and for each of the Company's segments (in thousands):
Consolidated
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
| Net loss | $ | (34,790 | ) | $ | (15,205 | ) | $ | (12,440 | ) | $ | (47,230 | ) | $ | (99,176 | ) | |||||||||
| Depreciation, depletion, amortization and accretion expense | 20,265 | 24,116 | 21,146 | 41,411 | 49,998 | |||||||||||||||||||
| Impairment of goodwill | — | — | — | — | 54,973 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 12,897 | |||||||||||||||||||
| Public offering costs | 77 | — | — | 77 | — | |||||||||||||||||||
| Stock based compensation | 354 | 196 | 344 | 698 | 1,246 | |||||||||||||||||||
| Interest expense, net | 1,169 | 1,471 | 1,225 | 2,394 | 3,109 | |||||||||||||||||||
| Other expense (income), net | 14,998 | (9,270 | ) | (9,432 | ) | 5,566 | (16,679 | ) | ||||||||||||||||
| Benefit for income taxes | (16,560 | ) | (3,482 | ) | (2,623 | ) | (19,183 | ) | (2,786 | ) | ||||||||||||||
| Interest on trade accounts receivable | 9,017 | 9,071 | 8,158 | 17,175 | 16,767 | |||||||||||||||||||
| Adjusted EBITDA | $ | (5,470 | ) | $ | 6,897 | $ | 6,378 | $ | 908 | $ | 20,349 | |||||||||||||
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Infrastructure Services
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
| Net loss | $ | (23,715 | ) | $ | (3,985 | ) | $ | (3,945 | ) | $ | (27,658 | ) | $ | (12,303 | ) | |||||||||
| Depreciation and amortization expense | 5,899 | 7,500 | 6,667 | 12,566 | 15,122 | |||||||||||||||||||
| Public offering costs | 43 | — | — | 43 | — | |||||||||||||||||||
| Stock based compensation | 158 | 44 | 135 | 293 | 286 | |||||||||||||||||||
| Interest expense | 656 | 716 | 661 | 1,317 | 1,467 | |||||||||||||||||||
| Other expense (income), net | 15,904 | (8,004 | ) | (9,310 | ) | 6,593 | (15,707 | ) | ||||||||||||||||
| (Benefit) provision for income taxes | (8,838 | ) | 949 | 2,428 | (6,410 | ) | 3,440 | |||||||||||||||||
| Interest on trade accounts receivable | 9,017 | 7,930 | 8,673 | 17,690 | 15,626 | |||||||||||||||||||
| Adjusted EBITDA | $ | (876 | ) | $ | 5,150 | $ | 5,309 | $ | 4,434 | $ | 7,931 | |||||||||||||
Well Completion Services
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
| Net loss | $ | (8,249 | ) | $ | (446 | ) | $ | (4,430 | ) | $ | (12,680 | ) | $ | (51,750 | ) | |||||||||
| Depreciation and amortization expense | 6,447 | 7,675 | 6,683 | 13,130 | 16,157 | |||||||||||||||||||
| Impairment of goodwill | — | — | — | — | 53,406 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 4,203 | |||||||||||||||||||
| Public offering costs | 12 | — | — | 12 | — | |||||||||||||||||||
| Stock based compensation | 75 | 53 | 83 | 158 | 381 | |||||||||||||||||||
| Interest expense | 219 | 329 | 254 | 473 | 605 | |||||||||||||||||||
| Other expense (income), net | 1 | (1,179 | ) | 439 | 440 | (1,288 | ) | |||||||||||||||||
| Interest on trade accounts receivable | — | 1,133 | (514 | ) | (514 | ) | 1,133 | |||||||||||||||||
| Adjusted EBITDA | $ | (1,495 | ) | $ | 7,565 | $ | 2,515 | $ | 1,019 | $ | 22,847 | |||||||||||||
Natural Sand Proppant Services
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
| Net loss | $ | (3,929 | ) | $ | (3,960 | ) | $ | (645 | ) | $ | (4,573 | ) | $ | (8,676 | ) | |||||||||
| Depreciation, depletion, amortization and accretion expense | 2,387 | 2,358 | 2,140 | 4,527 | 4,681 | |||||||||||||||||||
| Public offering costs | 12 | — | 12 | — | ||||||||||||||||||||
| Stock based compensation | 65 | 46 | 64 | 130 | 278 | |||||||||||||||||||
| Interest expense | 90 | 69 | 93 | 183 | 147 | |||||||||||||||||||
| Other income, net | (53 | ) | (2 | ) | (794 | ) | (847 | ) | (39 | ) | ||||||||||||||
| Interest on trade accounts receivable | — | — | (1 | ) | (1 | ) | — | |||||||||||||||||
| Adjusted EBITDA | $ | (1,428 | ) | $ | (1,489 | ) | $ | 857 | $ | (569 | ) | $ | (3,609 | ) | ||||||||||
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Drilling Services
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to net loss: | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
| Net loss | $ | (2,826 | ) | $ | (4,620 | ) | $ | (3,312 | ) | $ | (6,139 | ) | $ | (10,169 | ) | |||||||||
| Depreciation expense | 2,079 | 2,671 | 2,165 | 4,242 | 5,520 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 326 | |||||||||||||||||||
| Acquisition related costs | — | — | — | — | — | |||||||||||||||||||
| Public offering costs | 2 | — | 2 | — | ||||||||||||||||||||
| Stock based compensation | 28 | 34 | 38 | 65 | 128 | |||||||||||||||||||
| Interest expense | 58 | 132 | 63 | 121 | 389.172 | |||||||||||||||||||
| Other income, net | (127 | ) | (298 | ) | (9 | ) | (135 | ) | (271 | ) | ||||||||||||||
| Adjusted EBITDA | $ | (786 | ) | $ | (2,081 | ) | $ | (1,055 | ) | $ | (1,844 | ) | $ | (4,077 | ) | |||||||||
Other Services(a)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to net income (loss): | 2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||||||
| Net income (loss) | $ | 3,929 | $ | (2,195 | ) | $ | (108 | ) | $ | 3,820 | $ | (16,279 | ) | |||||||||||
| Depreciation, amortization and accretion expense | 3,453 | 3,912 | 3,491 | 6,946 | 8,518 | |||||||||||||||||||
| Impairment of goodwill | — | — | — | — | 1,567 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 8,368 | |||||||||||||||||||
| Public offering costs | 8 | — | 8 | — | ||||||||||||||||||||
| Stock based compensation | 28 | 20 | 24 | 52 | 173 | |||||||||||||||||||
| Interest expense, net | 146 | 225 | 154 | 300 | 501 | |||||||||||||||||||
| Other (income) expense, net | (727 | ) | 213 | 242 | (485 | ) | 626 | |||||||||||||||||
| Benefit for income taxes | (7,722 | ) | (4,430 | ) | (5,051 | ) | (12,773 | ) | (6,226 | ) | ||||||||||||||
| Interest on trade accounts receivable | — | 9 | — | — | 9 | |||||||||||||||||||
| Adjusted EBITDA | $ | (885 | ) | $ | (2,246 | ) | $ | (1,248 | ) | $ | (2,132 | ) | $ | (2,743 | ) | |||||||||
| a. Includes results for Mammoth's aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation and remote accommodations, equipment manufacturing and infrastructure engineering and design services and corporate related activities. The Company's corporate related activities do not generate revenue. | ||||||||||||||||||||||||
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Net Loss and Adjusted Loss per Share
Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company's operating and financial performance. Management believes these measures provide meaningful information about the Company's performance by excluding certain non-cash charges, such as impairment of goodwill and impairment of other long-lived assets, that may not be indicative of the Company's ongoing operating results. Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2021 | 2020 | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||
| Net loss, as reported | $ | (34,790 | ) | $ | (15,205 | ) | $ | (12,440 | ) | $ | (47,230 | ) | $ | (99,176 | ) | |||||||||
| Impairment of goodwill | — | — | — | — | 54,973 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 12,897 | |||||||||||||||||||
| Adjusted net loss | $ | (34,790 | ) | $ | (15,205 | ) | $ | (12,440 | ) | $ | (47,230 | ) | $ | (31,306 | ) | |||||||||
| Basic loss per share, as reported | $ | (0.75 | ) | $ | (0.33 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | (2.18 | ) | |||||||||
| Impairment of goodwill | — | — | — | — | 1.21 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 0.28 | |||||||||||||||||||
| Adjusted basic loss per share | $ | (0.75 | ) | $ | (0.33 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | (0.69 | ) | |||||||||
| Diluted loss per share, as reported | $ | (0.75 | ) | $ | (0.33 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | (2.18 | ) | |||||||||
| Impairment of goodwill | — | — | — | — | 1.21 | |||||||||||||||||||
| Impairment of other long-lived assets | — | — | — | — | 0.28 | |||||||||||||||||||
| Adjusted diluted loss per share | $ | (0.75 | ) | $ | (0.33 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | (0.69 | ) | |||||||||
FAQ
What were Mammoth Energy's Q2 2021 revenues?
What is the net loss for Mammoth Energy for Q2 2021?
How did Mammoth Energy's adjusted EBITDA change in Q2 2021?
What are the future plans for Mammoth Energy as mentioned in the press release?
