Mammoth Energy Services, Inc. Announces Second Quarter 2024 Operational and Financial Results
Mammoth Energy Services (NASDAQ: TUSK) reported Q2 2024 financial results. Total revenue increased to $51.5 million from $43.2 million in Q1 2024. The company recorded a net loss of $156.0 million, or $3.25 loss per diluted share, compared to a net loss of $11.8 million in Q1. Adjusted EBITDA was ($160.7) million, impacted by a $170.7 million expense related to the PREPA settlement.
The company entered a settlement agreement with PREPA, expecting to receive $188.4 million in total proceeds. Mammoth plans to use part of this to pay off its $49.3 million term credit facility. The Infrastructure Services division showed growth, while Well Completion Services faced challenges due to industry softness. As of August 7, 2024, Mammoth had total liquidity of $28.1 million.
Mammoth Energy Services (NASDAQ: TUSK) ha riportato i risultati finanziari del secondo trimestre del 2024. Il fatturato totale è aumentato a 51,5 milioni di dollari rispetto ai 43,2 milioni di dollari nel primo trimestre del 2024. L'azienda ha registrato una perdita netta di 156,0 milioni di dollari, ovvero una perdita di 3,25 dollari per azione diluita, rispetto a una perdita netta di 11,8 milioni di dollari nel primo trimestre. L'EBITDA rettificato è stato di (-160,7) milioni di dollari, influenzato da una spesa di 170,7 milioni di dollari relativa all'accordo con PREPA.
L'azienda ha stipulato un accordo di risoluzione con PREPA, prevedendo di ricevere un totale di 188,4 milioni di dollari. Mammoth prevede di utilizzare parte di questi fondi per estinguere il suo prestito a termine di 49,3 milioni di dollari. La divisione Servizi di Infrastruttura ha mostrato crescita, mentre i Servizi di Completamento Pozzi hanno affrontato sfide a causa della debolezza del settore. Alla data del 7 agosto 2024, Mammoth aveva liquidità totale di 28,1 milioni di dollari.
Mammoth Energy Services (NASDAQ: TUSK) informó los resultados financieros para el segundo trimestre de 2024. Los ingresos totales aumentaron a 51.5 millones de dólares desde 43.2 millones de dólares en el primer trimestre de 2024. La empresa registró una pérdida neta de 156.0 millones de dólares, o una pérdida de 3.25 dólares por acción diluida, en comparación con una pérdida neta de 11.8 millones de dólares en el primer trimestre. El EBITDA ajustado fue de (-160.7) millones de dólares, afectado por un gasto de 170.7 millones de dólares relacionado con el acuerdo PREPA.
La empresa firmó un acuerdo de conciliación con PREPA, esperando recibir un total de 188.4 millones de dólares. Mammoth planea utilizar parte de esto para pagar su línea de crédito a plazo de 49.3 millones de dólares. La división de Servicios de Infraestructura mostró crecimiento, mientras que los Servicios de Finalización de Pozos enfrentaron desafíos debido a la debilidad de la industria. Hasta el 7 de agosto de 2024, Mammoth tenía liquidez total de 28.1 millones de dólares.
매머스 에너지 서비스(Mammoth Energy Services, NASDAQ: TUSK)가 2024년 2분기 재무 결과를 보고했습니다. 총 수익은 2024년 1분기의 4320만 달러에서 5150만 달러로 증가했습니다. 이 회사는 1억 5600만 달러의 순손실을 기록했으며, 이는 희석 주당 3.25달러의 손실에 해당하며, 1분기에는 1180만 달러의 순손실이 있었습니다. 조정된 EBITDA는 (-1억 6070만 달러)로, PREPA 합의와 관련된 1억 7070만 달러의 비용의 영향을 받았습니다.
회사는 PREPA와의 합의 계약에 들어갔으며, 총 1억 8840만 달러의 수익을 기대하고 있습니다. 매머스는 이 중 일부를 4930만 달러의 만기 크레딧 시설을 상환하는 데 사용할 계획입니다. 인프라 서비스 부문은 성장세를 보였으나, 우물 완공 서비스는 산업의 부진으로 어려움을 겪었습니다. 2024년 8월 7일 현재 매머스의 총 유동성은 2810만 달러입니다.
Mammoth Energy Services (NASDAQ: TUSK) a publié les résultats financiers pour le deuxième trimestre 2024. Les revenus totaux ont augmenté à 51,5 millions de dollars contre 43,2 millions de dollars au premier trimestre 2024. L'entreprise a enregistré une perte nette de 156,0 millions de dollars, soit une perte de 3,25 dollars par action diluée, comparée à une perte nette de 11,8 millions de dollars au premier trimestre. L'EBITDA ajusté était de (-160,7 millions de dollars), affecté par une dépense de 170,7 millions de dollars liée au règlement avec PREPA.
L'entreprise a conclu un accord de règlement avec PREPA, s'attendant à recevoir 188,4 millions de dollars au total. Mammoth prévoit d'utiliser une partie de cette somme pour rembourser sa facilité de crédit à terme de 49,3 millions de dollars. La division Services d'Infrastructure a montré une croissance, tandis que les Services de Complétion de Puits ont rencontré des défis en raison d'une faiblesse dans le secteur. Au 7 août 2024, Mammoth disposait d'une liquidité totale de 28,1 millions de dollars.
Mammoth Energy Services (NASDAQ: TUSK) hat die Finanzzahlen für das 2. Quartal 2024 veröffentlicht. Der Gesamtumsatz stieg von 43,2 Millionen Dollar im 1. Quartal 2024 auf 51,5 Millionen Dollar. Das Unternehmen verzeichnete einen Nettverlust von 156,0 Millionen Dollar, was einem Verlust von 3,25 Dollar pro verwässerter Aktie entspricht, verglichen mit einem Nettverlust von 11,8 Millionen Dollar im 1. Quartal. Das bereinigte EBITDA betrug (-160,7) Millionen Dollar, was durch eine Ausgabe von 170,7 Millionen Dollar im Zusammenhang mit dem PREPA-Vergleich beeinflusst wurde.
Das Unternehmen trat einen Vergleichsvertrag mit PREPA ein und erwartet insgesamt 188,4 Millionen Dollar an Einnahmen zu erhalten. Mammoth plant, einen Teil davon zur Begleichung seiner 49,3 Millionen Dollar schweren Terminkreditfazilität zu verwenden. Die Abteilung Infrastruktur Services zeigte Wachstum, während die Well Completion Services aufgrund der Marktsituation Herausforderungen gegenüberstanden. Zum 7. August 2024 verfügte Mammoth über eine Gesamtlquidität von 28,1 Millionen Dollar.
- Total revenue increased to $51.5 million in Q2 2024 from $43.2 million in Q1 2024
- Infrastructure Services division showed growth both sequentially and year-over-year
- Settlement agreement with PREPA to receive $188.4 million in total proceeds
- Plan to pay off $49.3 million term credit facility with settlement proceeds
- Undrawn revolver and cash on balance sheet as of Q2 2024 end
- Net loss of $156.0 million in Q2 2024, compared to $11.8 million in Q1 2024
- Adjusted EBITDA of ($160.7) million in Q2 2024, down from $4.5 million in Q1 2024
- $170.7 million expense related to PREPA settlement impacting Q2 results
- Challenges in Well Completion Services due to industry softness, especially in natural gas basins
- Decreased average fleet utilization from 0.6 in Q1 to 0.3 in Q2 2024
Mammoth Energy's Q2 2024 results show a mixed financial picture. While revenue increased to
The adjusted EBITDA of
The upcoming
Mammoth's Q2 results reflect the ongoing challenges in the oil and gas industry, particularly in natural gas basins. The company's well completion services division saw reduced utilization, with only 0.3 fleets active on average compared to 0.6 in Q1. This aligns with broader industry trends of reduced activity in gas-focused areas.
However, the infrastructure services segment shows promise, with increased crew count and revenue growth both sequentially and year-over-year. This diversification could help offset weakness in oil and gas services.
The PREPA settlement, while causing a short-term financial hit, resolves a major uncertainty and could position Mammoth for improved performance in 2025. Investors should watch for signs of market recovery in the oil and gas sector, as well as continued growth in infrastructure services, to gauge Mammoth's future prospects.
The PREPA settlement is a significant legal development for Mammoth Energy. While it resulted in a substantial
From a legal perspective, this settlement eliminates potential ongoing litigation risks and costs associated with the PREPA dispute. It also demonstrates the company's ability to resolve complex legal matters, which could be viewed positively by investors and partners.
However, the substantial write-down highlights the risks associated with large government contracts and the importance of robust contractual protections. Investors should consider how Mammoth might mitigate similar risks in future large-scale projects or contracts.
Financial Overview for the Second Quarter 2024:
Total revenue was
Net loss for the second quarter of 2024 was
Adjusted EBITDA (as defined and reconciled below) was
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
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
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of
Infrastructure Services
Mammoth's infrastructure services division contributed 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
Other Services
Mammoth's other services, including aviation, equipment rentals, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of
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, | |||||||
2024 | 2023 | 2024 | 2024 | 2023 | |||||
Cash expenses: | |||||||||
Compensation and benefits | $ 3,116 | $ 3,996 | $ 4,104 | $ 7,220 | $ 8,273 | ||||
Professional services | 3,056 | 4,276 | 2,457 | 5,513 | 6,205 | ||||
Other(a) | 1,702 | 1,868 | 1,773 | 3,475 | 3,779 | ||||
Total cash SG&A expense | 7,874 | 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 compensation | 219 | 261 | 219 | 438 | 908 | ||||
Total non-cash SG&A expense | 89,602 | 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 |
SG&A expenses, as a percentage of total revenue, were
Interest Expense and Financing Charges, net
Interest expense and financing charges, net were
Liquidity
As of June 30, 2024, Mammoth had cash on hand of
As of August 7, 2024, 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, | |||||||
2024 | 2023 | 2024 | 2024 | 2023 | |||||
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. |
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
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. | ||||
ASSETS | June 30, | December 31, | ||
2024 | 2023 | |||
CURRENT ASSETS | (in thousands) | |||
Cash and cash equivalents | $ 10,266 | $ 16,556 | ||
Restricted cash | — | 7,742 | ||
Accounts receivable, net | 235,795 | 447,202 | ||
Inventories | 12,387 | 12,653 | ||
Prepaid expenses | 6,450 | 12,181 | ||
Other current assets | 589 | 591 | ||
Total current assets | 265,487 | 496,925 | ||
Property, plant and equipment, net | 109,517 | 113,905 | ||
Sand reserves | 58,215 | 58,528 | ||
Operating lease right-of-use assets | 6,403 | 9,551 | ||
Goodwill | 9,214 | 9,214 | ||
Deferred income tax asset | — | 1,844 | ||
Other non-current assets | 6,671 | 8,512 | ||
Total assets | $ 455,507 | $ 698,479 | ||
LIABILITIES AND EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable | $ 24,136 | $ 27,508 | ||
Accrued expenses and other current liabilities | 31,151 | 86,713 | ||
Accrued expenses and other current liabilities - related parties | — | 1,241 | ||
Current operating lease liability | 4,352 | 5,771 | ||
Income taxes payable | 43,625 | 61,320 | ||
Total current liabilities | 103,264 | 182,553 | ||
Long-term debt from related parties | 47,275 | 42,809 | ||
Deferred income tax liabilities | 2,505 | 628 | ||
Long-term operating lease liability | 1,983 | 3,534 | ||
Asset retirement obligation | 4,194 | 4,140 | ||
Other long-term liabilities | 3,910 | 4,715 | ||
Total liabilities | 163,131 | 238,379 | ||
COMMITMENTS AND CONTINGENCIES | ||||
EQUITY | ||||
Equity: | ||||
Common stock, | 481 | 479 | ||
Additional paid in capital | 539,994 | 539,558 | ||
Accumulated deficit | (244,121) | (76,317) | ||
Accumulated other comprehensive loss | (3,978) | (3,620) | ||
Total equity | 292,376 | 460,100 | ||
Total liabilities and equity | $ 455,507 | $ 698,479 | ||
MAMMOTH ENERGY SERVICES, INC. | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
2024 | 2023 | 2024 | 2024 | 2023 | |||||
(in thousands, except per share amounts) | |||||||||
REVENUE | |||||||||
Services revenue | $ 46,770 | $ 63,478 | $ 38,814 | $ 85,584 | $ 167,115 | ||||
Services revenue - related parties | 66 | 369 | 68 | 133 | 589 | ||||
Product revenue | 4,693 | 11,584 | 4,307 | 8,999 | 24,047 | ||||
Total revenue | 51,529 | 75,431 | 43,189 | 94,716 | 191,751 | ||||
COST AND EXPENSES | |||||||||
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of | 38,962 | 52,846 | 34,483 | 73,445 | 133,823 | ||||
Services cost of revenue - related parties | 118 | 210 | 118 | 236 | 240 | ||||
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of | 4,761 | 7,196 | 5,983 | 10,744 | 15,181 | ||||
Selling, general and administrative | 97,476 | 10,357 | 8,782 | 106,258 | 18,740 | ||||
Depreciation, depletion, amortization and accretion | 6,051 | 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 expenses | 146,332 | 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 | ||||
MAMMOTH ENERGY SERVICES, INC. | |||
Six Months Ended | |||
June 30, | |||
2024 | 2023 | ||
(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 compensation | 438 | 908 | |
Depreciation, depletion, accretion and amortization | 13,073 | 25,606 | |
Amortization of debt origination costs | 714 | 377 | |
Change in provision for expected credit losses | 171,076 | (425) | |
Gains on disposal of assets | (2,203) | (834) | |
Gains from sales of equipment damaged or lost down-hole | — | (46) | |
Deferred income taxes | 3,722 | (46) | |
Other | 1,099 | 387 | |
Changes in assets and liabilities: | |||
Accounts receivable, net | 39,073 | 7,880 | |
Inventories | 265 | (1,306) | |
Prepaid expenses and other assets | 5,703 | 5,162 | |
Accounts payable | (2,276) | 466 | |
Accrued expenses and other liabilities | (7,688) | (13,924) | |
Accrued expenses and other liabilities - related parties | 3,028 | — | |
Income taxes payable | (17,692) | 4,523 | |
Net cash provided by operating activities | 40,528 | 32,609 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (9,070) | (10,539) | |
Proceeds from disposal of property and equipment | 4,548 | 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 period | 24,298 | 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 | |
MAMMOTH ENERGY SERVICES, INC. | |||||||
Three Months Ended June 30, 2024 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 9,935 | $ 31,433 | $ 4,693 | $ 736 | $ 4,732 | $ — | $ 51,529 |
Intersegment revenues | 109 | — | 27 | — | 2,359 | (2,495) | — |
Total revenue | 10,044 | 31,433 | 4,720 | 736 | 7,091 | (2,495) | 51,529 |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 10,096 | 24,630 | 4,589 | 1,155 | 3,371 | — | 43,841 |
Intersegment cost of revenues | 234 | 1 | — | 1 | 2,257 | (2,493) | — |
Total cost of revenue | 10,330 | 24,631 | 4,589 | 1,156 | 5,628 | (2,493) | 43,841 |
Selling, general and administrative | 1,196 | 94,450 | 943 | 176 | 711 | — | 97,476 |
Depreciation, depletion, amortization and accretion | 2,691 | 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, net | 522 | 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, 2023 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 27,466 | $ 28,315 | $ 11,567 | $ 2,810 | $ 5,273 | $ — | $ 75,431 |
Intersegment revenues | 118 | — | — | — | 383 | (501) | — |
Total revenue | 27,584 | 28,315 | 11,567 | 2,810 | 5,656 | (501) | 75,431 |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 23,594 | 23,292 | 7,067 | 2,375 | 3,924 | — | 60,252 |
Intersegment cost of revenues | 227 | 9 | — | 12 | 253 | (501) | — |
Total cost of revenue | 23,821 | 23,301 | 7,067 | 2,387 | 4,177 | (501) | 60,252 |
Selling, general and administrative | 1,776 | 6,385 | 954 | 193 | 1,049 | — | 10,357 |
Depreciation, depletion, amortization and accretion | 4,500 | 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, net | 824 | 1,869 | 149 | 133 | 245 | — | 3,220 |
Other expense (income), net | 1 | (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, 2024 | Well | 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) |
Six Months ended June 30, 2024 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 18,093 | $ 56,471 | $ 8,999 | $ 1,247 | $ 9,906 | $ — | $ 94,716 |
Intersegment revenues | 222 | — | 28 | — | 3,364 | (3,614) | $ — |
Total revenue | 18,315 | 56,471 | 9,027 | 1,247 | 13,270 | (3,614) | 94,716 |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 18,434 | 46,164 | 10,430 | 2,203 | 7,194 | — | 84,425 |
Intersegment cost of revenues | 452 | 26 | — | 3 | 3,131 | (3,612) | $ — |
Total cost of revenue | 18,886 | 46,190 | 10,430 | 2,206 | 10,325 | (3,612) | 84,425 |
Selling, general and administrative | 2,269 | 100,068 | 1,974 | 388 | 1,559 | — | 106,258 |
Depreciation, depletion, amortization and accretion | 5,955 | 1,346 | 2,417 | 1,488 | 1,867 | — | 13,073 |
Losses (gains) on disposal of assets, net | 145 | (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, net | 1,091 | 8,675 | 273 | 250 | 381 | — | 10,670 |
Other expense (income), net | 1 | 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, 2023 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 94,644 | $ 56,596 | $ 24,009 | $ 4,165 | $ 12,337 | $ — | $ 191,751 |
Intersegment revenues | 240 | — | 25 | — | 833 | (1,098) | — |
Total revenue | 94,884 | 56,596 | 24,034 | 4,165 | 13,170 | (1,098) | 191,751 |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 75,630 | 45,768 | 14,927 | 3,841 | 9,078 | — | 149,244 |
Intersegment cost of revenues | 704 | 20 | — | 26 | 348 | (1,098) | — |
Total cost of revenue | 76,334 | 45,788 | 14,927 | 3,867 | 9,426 | (1,098) | 149,244 |
Selling, general and administrative | 4,268 | 10,595 | 1,458 | 339 | 2,080 | — | 18,740 |
Depreciation, depletion, amortization and accretion | 9,317 | 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, net | 1,753 | 3,714 | 305 | 259 | 478 | — | 6,509 |
Other expense (income), net | 1 | (17,365) | (6) | — | 407 | — | (16,963) |
Income (loss) before income taxes | $ 3,211 | $ 8,181 | $ 3,805 | $ (2,683) | $ (3,065) | $ — | $ 9,449 |
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 | Years Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2024 | 2023 | ||||
Net (loss) income | $ (155,993) | $ (4,470) | $ (11,811) | $ (167,804) | $ 3,881 | ||||
Depreciation, depletion, amortization and accretion expense | 6,051 | 12,650 | 7,021 | 13,073 | 25,606 | ||||
Gains on disposal of assets, net | (1,036) | (473) | (1,166) | (2,203) | (834) | ||||
Stock based compensation | 219 | 261 | 219 | 438 | 908 | ||||
Interest expense and financing charges, net | 2,534 | 3,220 | 8,137 | 10,670 | 6,509 | ||||
Other expense (income), net | 73,678 | (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 | ||||
Well Completion Services
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2024 | 2023 | ||||
Net (loss) income | $ (4,590) | $ (3,338) | $ (5,439) | $ (10,032) | $ 3,211 | ||||
Depreciation and amortization expense | 2,691 | 4,500 | 3,264 | 5,955 | 9,317 | ||||
(Gains) losses on disposal of assets, net | (105) | — | 250 | 145 | — | ||||
Stock based compensation | 46 | 97 | 44 | 90 | 387 | ||||
Interest expense and financing charges, net | 522 | 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 Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2024 | 2023 | ||||
Net (loss) income | $ (144,861) | $ 697 | $ (405) | $ (145,267) | $ 3,151 | ||||
Depreciation and amortization expense | 627 | 2,436 | 718 | 1,346 | 5,810 | ||||
Gains on disposal of assets, net | (460) | — | (483) | (943) | (127) | ||||
Stock based compensation | 123 | 107 | 117 | 240 | 337 | ||||
Interest expense and financing charges, net | 1,577 | 1,869 | 7,099 | 8,675 | 3,714 | ||||
Other expense (income), net | 72,687 | (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 Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2024 | 2023 | ||||
Net (loss) income | $ (2,103) | $ 1,027 | $ (3,851) | $ (5,956) | $ 3,805 | ||||
Depreciation, depletion, amortization and accretion expense | 1,271 | 2,374 | 1,146 | 2,417 | 3,561 | ||||
Gains on disposal of assets, net | (110) | — | — | (110) | (16) | ||||
Stock based compensation | 32 | 36 | 38 | 69 | 113 | ||||
Interest expense and financing charges, net | 131 | 149 | 142 | 273 | 305 | ||||
Other income, net | (1) | (4) | (1) | (1) | (6) | ||||
Adjusted EBITDA | $ (780) | $ 3,582 | $ (2,526) | $ (3,308) | $ 7,762 | ||||
Drilling Services
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
Reconciliation of net loss to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2024 | 2023 | ||||
Net loss | $ (1,329) | $ (1,057) | $ (1,757) | $ (3,086) | $ (2,683) | ||||
Depreciation expense | 613 | 1,154 | 874 | 1,488 | 2,383 | ||||
(Gains) losses on disposal of assets, net | (1) | — | 2 | 1 | — | ||||
Stock based compensation | 5 | 5 | 5 | 10 | 13 | ||||
Interest expense and financing charges, net | 121 | 133 | 128 | 250 | 259 | ||||
Adjusted EBITDA | $ (591) | $ 235 | $ (748) | $ (1,337) | $ (28) | ||||
Other Services(a)
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | |||||||
Reconciliation of net loss to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2024 | 2023 | ||||
Net loss | $ (3,108) | $ (1,799) | $ (359) | $ (3,461) | $ (3,603) | ||||
Depreciation, amortization and accretion expense | 849 | 2,186 | 1,019 | 1,867 | 4,535 | ||||
Gains on disposal of assets, net | (360) | (473) | (935) | (1,296) | (691) | ||||
Stock based compensation | 13 | 16 | 15 | 29 | 58 | ||||
Interest expense and financing charges, net | 183 | 245 | 199 | 381 | 478 | ||||
Other expense, net | 992 | 221 | 116 | 1,107 | 407 | ||||
Provision for income taxes | 2,196 | 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. |
View original content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-second-quarter-2024-operational-and-financial-results-302218579.html
SOURCE Mammoth Energy Services, Inc.
FAQ
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