Mammoth Energy Services, Inc. Announces Strong Second Quarter 2022 Operational and Financial Results

Rhea-AI Summary

Mammoth Energy Services reported a robust Q2 2022, achieving $89.7 million in revenue, a significant increase from $47.4 million in Q2 2021 and $62.3 million in Q1 2022. The company recorded a net income of $1.7 million or $0.04 per share, rebounding from a net loss of $34.8 million in the same quarter last year. Adjusted EBITDA soared to $23.0 million, compared to a loss of $3.3 million in Q2 2021. Strong performance was driven by growth in Infrastructure, Well Completion, and Sand Services divisions, alongside plans for further expansion ahead of upcoming storm restoration needs.

Positive

• Revenue increased to $89.7 million, up from $47.4 million in Q2 2021.
• Net income turned positive at $1.7 million, compared to a loss of $34.8 million in the prior year.
• Adjusted EBITDA rose to $23.0 million from a loss of $3.3 million year-over-year.
• Infrastructure Services revenue grew to $25.6 million due to increased storm activity.
• Well Completion Services achieved $43.8 million in revenue, its strongest quarter since mid-2019.
• Natural Sand Proppant Services revenue jumped to $15.5 million, up from $6.9 million in Q2 2021.

Negative

• Continued reliance on external financing with $84.1 million in outstanding borrowings.
• Cash on hand decreased to $9.5 million as of July 26, 2022.

Significant Increases in Q2 Revenue, Net Income and Adjusted EBITDA

OKLAHOMA CITY, July 28, 2022 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported strong financial and operational results for the second quarter ended June 30, 2022.

Financial Overview for the Second Quarter 2022:

Total revenue was $89.7 million for the second quarter of 2022, as compared to $47.4 million for the same quarter last year and $62.3 million for the first quarter of 2022.

Net income for the second quarter of 2022 was $1.7 million, or $0.04 per share, as compared to a net loss of $34.8 million, or a $0.75 loss per share, for the same quarter last year, and a net loss of $14.8 million, or a $0.32 loss per share, for the first quarter of 2022.

Adjusted EBITDA (as defined and reconciled below) was $23.0 million for the second quarter of 2022, as compared to ($3.3) million for the same quarter last year and $9.3 million for the first quarter of 2022.

Arty Straehla, Chief Executive Officer of Mammoth commented, "Our significant second quarter growth in revenue, net income and Adjusted EBITDA resulted from substantial gains in Infrastructure Services, Well Completion Services and our Sand business. In our Infrastructure Services division, we have continued to add crews since the first quarter to just over 100 crews currently, and we expect to add additional crews in the coming weeks in preparation for the seasonal storm restoration services anticipated in the third and fourth quarters. Our Well Completion Services division posted the strongest quarter we've seen since mid-2019 resulting from the robust macro demand that the pressure pumping industry is experiencing. We currently have four pressure pumping spreads operating, which have full schedules through the end of the year, and we expect to add a fifth spread sometime in the fourth quarter. Our Sand business is also experiencing strong demand, as well as increased pricing, which we believe will continue to improve into the back half of the year and into 2023. I am proud of our team's continued commitment and hard work to push through the challenges we have faced over the last few years and am confident that we are well equipped to build on the improvements we have made this quarter."

Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $25.6 million for the second quarter of 2022, as compared to $18.4 million for the same quarter last year and $23.0 million for the first quarter of 2022. The increase in revenue compared to the same quarter of 2021 is primarily due to an increase in storm activity, resulting in higher storm restoration revenue.

Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $43.8 million on 1,716 stages for the second quarter of 2022, as compared to $17.4 million on 520 stages for the same quarter of 2021 and $23.9 million on 699 stages for the first quarter of 2022. On average, 3.5 of the Company's fleets were active for the second quarter of 2022, compared to an average utilization of 0.9 fleets during the same quarter last year and 1.6 fleets during the first quarter of 2022. As of July 26, 2022, Mammoth was operating four of its six pressure pumping fleets and currently expects to activate a fifth fleet in the fourth quarter. Looking to 2023, the Company plans to activate its sixth fleet in the first quarter of 2023, and has plans to acquire or build a new Tier 4, dual-fuel fleet for a total of seven fleets by year-end 2023.

Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $15.5 million for the second quarter of 2022, as compared to $6.9 million for the same quarter last year and $9.2 million for the first quarter of 2022. In the second quarter of 2022, the Company sold approximately 350,000 tons of sand at an average sales price of $26.86 per ton, as compared to sales of approximately 255,000 tons of sand at an average sales price of $15.80 per ton during the same quarter last year. In the first quarter of 2022, sales were approximately 329,000 tons of sand at an average price of $21.44 per ton.

Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $2.0 million for the second quarter of 2022, as compared to $1.1 million for the same quarter last year and $2.9 million for the first quarter of 2022.

Other Services
Mammoth's other services, including aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $5.0 million for the second quarter of 2022, as compared to $4.3 million for the same quarter last year and $4.7 million for the first quarter of 2022.

Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $8.2 million for the second quarter of 2022, as compared to $9.9 million for the same quarter last year and $8.7 million for the first quarter of 2022. 

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

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
	2022		2021		2022		2022		2021
Cash expenses:
Compensation and benefits	$         3,137		$         3,333		$         2,983		$         6,120		$         8,027
Professional services(a)	2,724		3,683		3,637		6,361		4,264
Other(b)	2,162		2,464		1,906		4,068		4,806
Total cash SG&A expense	8,023		9,480		8,526		16,549		17,097
Non-cash expenses:
Bad debt provision(c)	(16)		76		(99)		(115)		10,201
Stock based compensation	199		304		241		440		586
Total non-cash SG&A expense	183		380		142		325		10,787
Total SG&A expense	$         8,206		$         9,860		$         8,668		$       16,874		$       27,884

a.	Certain legal expenses totaling $2.1 million, $4.9 million and $2.8 million were reclassified to Other, net for the three and six months ended June 30, 2021 and three months ended March 31, 2022, respectively.
b.	Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.
c.	The bad debt provision for the six months ended June 30, 2021 includes $10.0 million related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

 

SG&A expenses, as a percentage of total revenue, were 9% for the second quarter of 2022, as compared to 21% for the same quarter last year and 14% for the first quarter of 2022.

Liquidity
As of June 30, 2022, Mammoth had cash on hand of $12.7 million, outstanding borrowings under its revolving credit facility of $82.9 million and $14.3 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. As of June 30, 2022, Mammoth had total liquidity of $27.0 million.

As of July 26, 2022, Mammoth had cash on hand of $9.5 million and outstanding borrowings under its revolving credit facility of $84.1 million. As of July 26, 2022, the Company had $8.2 million of available borrowing capacity under its revolving credit facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. Neither Cobra Acquisitions LLC nor Mammoth plan to make the scheduled settlement payment due on August 1, 2022 to Mastec Renewables Puerto Rico, LLC, but expects to make the payment on or before December 1, 2022.

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,
	2022		2021		2022		2022		2021
Infrastructure services(a)	$            200		$            105		$            398		$            598		$            293
Well completion services(b)	2,500		388		801		3,301		896
Natural sand proppant services(c)	—		5		—		—		413
Drilling services(d)	12		1		2		14		38
Other(e)	161		63		60		221		165
Eliminations	(87)		(96)		(79)		(166)		(96)
Total capital expenditures	$         2,786		$            466		$         1,182		$         3,968		$         1,709

a.	Capital expenditures primarily for truck, tooling and equipment purchases for the periods presented.
b.	Capital expenditures primarily for upgrades to our pressure pumping fleet for the periods presented.
c.	Capital expenditures primarily for maintenance for the periods presented.
d.	Capital expenditures primarily for directional drilling equipment for the periods presented.
e.	Capital expenditures primarily for equipment for the Company's rental businesses for the periods presented.

 

Mammoth anticipates that its total capital expenditures for 2022 will be approximately $20.0 million, representing an $8.0 million increase in its previously announced capital expenditure guidance for 2022, which Mammoth expects to fund from cash flow from operations, cash on hand and borrowings under its revolving credit facility.

Conference Call Information
Mammoth will host a conference call on Thursday, July 28, 2022 at 4:00 p.m. Central time (5:00 p.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 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: any continuing impacts of the COVID-19 pandemic, related global and national health concerns and economic repercussions; demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the impact of the war in Ukraine on the global energy and capital markets and global stability; 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; inflationary pressures; rising interest rates and their impact on the cost of capital; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company's subsidiary Cobra Acquisitions LLC ("Cobra") by the Puerto Rico Electric Power Authority ("PREPA"); the failure to receive or delays in receiving governmental authorizations, approvals and/or payments, including payments with respect to the PREPA account receivable for prior services to PREPA performed by Cobra; the Company's inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions; 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, including the adverse impact of the recent settlement with 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; Mammoth's ability to continue to comply with, or if applicable, obtain a waiver of forecasted or actual noncompliance with certain financial covenants and comply with other terms and conditions under our recently amended revolving credit facility; 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,
		2022		2021
CURRENT ASSETS		(in thousands)
Cash and cash equivalents		$                     12,729		$                       9,899
Short-term investment		1,765		1,762
Accounts receivable, net		430,443		407,550
Receivables from related parties, net		193		88
Inventories		8,000		8,366
Prepaid expenses		7,919		12,381
Other current assets		645		737
Total current assets		461,694		440,783
Property, plant and equipment, net		145,905		176,586
Sand reserves		64,141		64,641
Operating lease right-of-use assets		11,654		12,168
Intangible assets, net		2,171		2,561
Goodwill		11,717		11,717
Deferred income tax asset		2,228		8,094
Other non-current assets		3,620		4,342
Total assets		$                   703,130		$                   720,892
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable		$                     38,618		$                     37,560
Accrued expenses and other current liabilities		55,484		62,516
Current operating lease liability		5,655		5,942
Current portion of long-term debt		1,505		1,468
Income taxes payable		43,660		42,748
Total current liabilities		144,922		150,234
Long-term debt, net of current portion		83,969		85,240
Deferred income tax liabilities		1,611		865
Long-term operating lease liability		5,840		5,918
Asset retirement obligation		3,952		3,720
Other long-term liabilities		12,537		11,693
Total liabilities		252,831		257,670
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 47,312,270 and 46,684,065 issued and outstanding at June 30, 2022 and December 31, 2021		473		467
Additional paid in capital		538,656		538,221
Accumulated deficit		(85,649)		(72,535)
Accumulated other comprehensive loss		(3,181)		(2,931)
Total equity		450,299		463,222
Total liabilities and equity		$                   703,130		$                   720,892

 

MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
	2022		2021		2021		2022		2021
	(in thousands, except per share amounts)
REVENUE
Services revenue	$           75,459		$           40,867		$           53,667		$         129,126		$           83,558
Services revenue - related parties	395		90		274		669		15,076
Product revenue	13,824		6,483		8,357		22,181		13,465
Product revenue - related parties	—		—		—		—		2,145
Total revenue	89,678		47,440		62,298		151,976		114,244
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $15,404, $17,861, $15,355, $30,759 and $36,850, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)	58,433		43,103		46,567		105,000		85,165
Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $0, $0, $0, $0 and $0, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)	128		107		135		263		216
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,055, $2,384, $1,792, $3,847 and $4,521, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)	10,225		7,165		7,778		18,003		13,074
Selling, general and administrative	8,206		9,668		8,668		16,874		27,499
Selling, general and administrative - related parties	—		192		—		—		385
Depreciation, depletion, amortization and accretion	17,476		20,265		17,167		34,643		41,411
Total cost and expenses	94,468		80,500		80,315		174,783		167,750
Operating loss	(4,790)		(33,060)		(18,017)		(22,807)		(53,506)
OTHER INCOME (EXPENSE)
Interest expense, net	(2,659)		(1,169)		(2,349)		(5,008)		(2,394)
Other income (expense), net	13,087		(17,121)		9,237		22,324		(9,998)
Other expense, net - related parties	—		—		—		—		(515)
Total other income (expense)	10,428		(18,290)		6,888		17,316		(12,907)
Income (loss) before income taxes	5,638		(51,350)		(11,129)		(5,491)		(66,413)
Provision (benefit) for income taxes	3,935		(16,560)		3,688		7,623		(19,183)
Net income (loss)	$             1,703		$          (34,790)		$          (14,817)		$          (13,114)		$          (47,230)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of tax of $0, $63, $0, $0 and $680, respectively, for the three months ended June 30, 2022, June 30, 2021 and March 31, 2022 and six months ended June 30, 2022 and 2021)	(448)		239		198		(250)		407
Comprehensive income (loss)	$             1,255		$          (34,551)		$          (14,619)		$          (13,364)		$          (46,823)
Net income (loss) per share (basic)	$               0.04		$              (0.75)		$              (0.32)		$              (0.28)		$              (1.02)
Net income (loss) per share (diluted)	$               0.04		$              (0.75)		$              (0.32)		$              (0.28)		$              (1.02)
Weighted average number of shares outstanding (basic)	47,225		46,402		46,845		47,036		46,168
Weighted average number of shares outstanding (diluted)	47,634		46,402		46,845		47,036		46,168

 

MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
	Six Months Ended
	June 30,
	2022		2021
	(in thousands)
Cash flows from operating activities:
Net loss	$                        (13,114)		$                        (47,230)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Stock based compensation	441		698
Depreciation, depletion, accretion and amortization	34,643		41,411
Amortization of debt origination costs	375		296
Bad debt (recoveries) expense	(115)		10,201
Gain on disposal of property and equipment	(3,650)		(1,599)
Deferred income taxes	6,612		(20,898)
Other	449		548
Changes in assets and liabilities:
Accounts receivable, net	(22,480)		(30,386)
Receivables from related parties, net	(105)		28,381
Inventories	366		1,808
Prepaid expenses and other assets	4,567		5,923
Accounts payable	(2,132)		(1,546)
Accrued expenses and other liabilities	(7,407)		15,756
Income taxes payable	912		1,107
Net cash (used in) provided by operating activities	(638)		4,471
Cash flows from investing activities:
Purchases of property and equipment	(3,968)		(1,709)
Proceeds from disposal of property and equipment	7,447		4,632
Net cash provided by investing activities	3,479		2,923
Cash flows from financing activities:
Borrowings on long-term debt	83,000		12,000
Repayments of long-term debt	(84,241)		(30,269)
Payments on sale-leaseback transaction	(2,094)		(1,278)
Principal payments on financing leases and equipment financing notes	(1,197)		(1,140)
Net cash (used in) provided by financing activities	57		(11,214)
Effect of foreign exchange rate on cash	(68)		36
Net change in cash and cash equivalents	2,830		(3,784)
Cash and cash equivalents at beginning of period	9,899		14,822
Cash and cash equivalents at end of period	$                         12,729		$                          11,038
Supplemental disclosure of cash flow information:
Cash paid for interest	$                           3,792		$                           2,134
Cash paid for income taxes, net of refunds received	$                               98		$                              964
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable	$                           4,733		$                           2,035

 

MAMMOTH ENERGY SERVICES, INC. SEGMENT INCOME STATEMENTS (in thousands)
Three months ended June 30, 2022	Infrastructure	Well Completion	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$           25,587	$           43,574	$           13,841	$            1,952	$            4,724	$                 —	$           89,678
Intersegment revenues	—	243	1,618	19	306	(2,186)	—
Total revenue	25,587	43,817	15,459	1,971	5,030	(2,186)	89,678
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	21,808	31,486	9,707	2,034	3,751	—	68,786
Intersegment cost of revenues	15	1,985	—	160	103	(2,263)	—
Total cost of revenue	21,823	33,471	9,707	2,194	3,854	(2,263)	68,786
Selling, general and administrative	4,443	1,884	870	277	732	—	8,206
Depreciation, depletion, amortization and accretion	4,211	6,747	2,058	1,651	2,809	—	17,476
Operating (loss) income	(4,890)	1,715	2,824	(2,151)	(2,365)	77	(4,790)
Interest expense, net	1,755	422	178	121	183	—	2,659
Other income, net	(10,925)	(157)	(19)	—	(1,986)	—	(13,087)
Income (loss) before income taxes	$            4,280	$            1,450	$            2,665	$           (2,272)	$              (562)	$                 77	$            5,638
Three months ended June 30, 2021	Infrastructure	Well Completion	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$           18,420	$           17,337	$            6,886	$            1,130	$            3,667	$                 —	$           47,440
Intersegment revenues	—	36	—	17	682	(735)	—
Total revenue	18,420	17,373	6,886	1,147	4,349	(735)	47,440
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	21,062	16,396	7,400	1,568	3,949	—	50,375
Intersegment cost of revenues	50	666	—	—	19	(735)	—
Total cost of revenue	21,112	17,062	7,400	1,568	3,968	(735)	50,375
Selling, general and administrative	5,620	1,893	991	395	961	—	9,860
Depreciation, depletion, amortization and accretion	5,899	6,447	2,387	2,078	3,454	—	20,265
Operating loss	(14,211)	(8,029)	(3,892)	(2,894)	(4,034)	—	(33,060)
Interest expense, net	664	219	90	58	138	—	1,169
Other expense (income), net	18,035	1	(53)	(126)	(736)	—	17,121
Loss before income taxes	$         (32,910)	$           (8,249)	$           (3,929)	$           (2,826)	$           (3,436)	$                 —	$         (51,350)
Three months ended March 31, 2022	Infrastructure	Well Completion	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$           23,009	$           23,630	$            8,347	$            2,852	$            4,460	$                 —	$           62,298
Intersegment revenues	—	244	832	3	272	(1,351)	—
Total revenue	23,009	23,874	9,179	2,855	4,732	(1,351)	62,298
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	18,887	21,839	7,788	2,372	3,594	—	54,480
Intersegment cost of revenues	16	1,031	—	160	70	(1,277)	—
Total cost of revenue	18,903	22,870	7,788	2,532	3,664	(1,277)	54,480

Selling, general and administrative	4,645	2,039	828	292	864	—	8,668
Depreciation, depletion, amortization and accretion	4,314	6,444	1,795	1,680	2,934	—	17,167
Operating loss	(4,853)	(7,479)	(1,232)	(1,649)	(2,730)	(74)	(18,017)
Interest expense, net	1,542	371	162	104	170	—	2,349
Other (income) expense, net	(9,587)	(49)	(79)	—	478	—	(9,237)
Income (loss) before income taxes	$            3,192	$           (7,801)	$           (1,315)	$           (1,753)	$           (3,378)	$                (74)	$         (11,129)
Six months ended June 30, 2022	Infrastructure	Well Completion	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$          48,596	$          67,202	$          22,189	$            4,804	$            9,185	$                —	$        151,976
Intersegment revenues	—	489	2,450	22	576	(3,537)	—
Total revenue	48,596	67,691	24,639	4,826	9,761	(3,537)	151,976
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	40,695	53,325	17,495	4,406	7,345	—	123,266
Intersegment cost of revenues	31	3,016	—	321	172	(3,540)	—
Total cost of revenue	40,726	56,341	17,495	4,727	7,517	(3,540)	123,266
Selling, general and administrative	9,088	3,923	1,698	569	1,596	—	16,874
Depreciation, depletion, amortization and accretion	8,525	13,191	3,852	3,331	5,744	—	34,643
Operating (loss) income	(9,743)	(5,764)	1,594	(3,801)	(5,096)	3	(22,807)
Interest expense, net	3,298	793	340	225	352	—	5,008
Other income, net	(20,512)	(206)	(98)	—	(1,508)	—	(22,324)
Income (loss) before income taxes	$            7,471	$          (6,351)	$            1,352	$          (4,026)	$          (3,940)	$                  3	$          (5,491)
Six months ended June 30, 2021	Infrastructure	Well Completion	Sand	Drilling	All Other	Eliminations	Total
Revenue from external customers	$          48,619	$          40,238	$          15,592	$            2,049	$            7,746	$                —	$        114,244
Intersegment revenues	—	90	—	31	1,322	(1,443)	—
Total revenue	48,619	40,328	15,592	2,080	9,068	(1,443)	114,244
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	48,439	25,399	13,262	3,173	8,182	—	98,455
Intersegment cost of revenues	95	1,060	—	—	288	(1,443)	—
Total cost of revenue	48,534	26,459	13,262	3,173	8,470	(1,443)	98,455
Selling, general and administrative	9,359	12,505	3,040	817	2,163	—	27,884
Depreciation, depletion, amortization and accretion	12,566	13,130	4,527	4,243	6,945	—	41,411
Operating loss	(21,840)	(11,766)	(5,237)	(6,153)	(8,510)	—	(53,506)
Interest expense, net	1,333	473	183	121	284	—	2,394
Other expense (income), net	11,548	440	(847)	(135)	(493)	—	10,513
Loss before income taxes	$         (34,721)	$          (12,679)	$          (4,573)	$          (6,139)	$          (8,301)	$                —	$         (66,413)

 

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, 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, 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 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 income (loss):	2022		2021		2022		2022		2021
Net income (loss)	$              1,703		$           (34,790)		$           (14,817)		$           (13,114)		$           (47,230)
Depreciation, depletion, amortization and accretion expense	17,476		20,265		17,167		34,643		41,411
Public offering costs	—		77		—		—		77
Stock based compensation	200		354		241		441		698
Interest expense, net	2,659		1,169		2,349		5,008		2,394
Other (income) expense, net	(13,087)		17,121		(9,237)		(22,324)		10,513
Provision (benefit) for income taxes	3,935		(16,560)		3,688		7,623		(19,183)
Interest on trade accounts receivable	10,160		9,017		9,862		20,022		17,175
Adjusted EBITDA	$            23,046		$             (3,347)		$              9,253		$            32,299		$              5,855

 

Infrastructure Services

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
Reconciliation of Adjusted EBITDA to net income (loss):	2022		2021		2022		2022		2021
Net income (loss)	$                572		$          (24,073)		$                125		$                695		$          (28,311)
Depreciation and amortization expense	4,211		5,899		4,314		8,525		12,566
Public offering costs	—		45		—		—		45
Stock based compensation	74		162		98		172		301
Interest expense	1,755		664		1,542		3,298		1,333
Other (income) expense, net	(10,925)		18,035		(9,587)		(20,512)		11,548
Provision (benefit) for income taxes	3,708		(8,838)		3,067		6,776		(6,409)
Interest on trade accounts receivable	10,160		9,017		9,862		20,022		17,689
Adjusted EBITDA	$             9,555		$                911		$             9,421		$            18,976		$             8,762

 

Well Completion Services

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
Reconciliation of Adjusted EBITDA to net income (loss):	2022		2021		2022		2022		2021
Net income (loss)	$             1,450		$            (8,248)		$            (7,801)		$            (6,351)		$          (12,678)
Depreciation and amortization expense	6,747		6,447		6,444		13,191		13,130
Public offering costs	—		12		—		—		12
Stock based compensation	84		75		87		171		158
Interest expense	422		219		371		793		473
Other (income) expense, net	(157)		1		(49)		(206)		440
Interest on trade accounts receivable	—		—		—		—		(513)
Adjusted EBITDA	$             8,546		$            (1,494)		$               (948)		$             7,598		$             1,022

 

Natural Sand Proppant Services

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
Reconciliation of Adjusted EBITDA to net income (loss):	2022		2021		2022		2022		2021
Net income (loss)	$             2,665		$            (3,930)		$            (1,315)		$             1,352		$            (4,574)
Depreciation, depletion, amortization and accretion expense	2,058		2,387		1,795		3,852		4,527
Public offering costs	—		12		—		—		12
Stock based compensation	26		66		34		60		130
Interest expense	178		90		162		340		183
Other income, net	(19)		(53)		(79)		(98)		(847)
Interest on trade accounts receivable	—		—		—		—		(1)
Adjusted EBITDA	$             4,908		$            (1,428)		$                597		$             5,506		$               (570)

 

Drilling Services

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
Reconciliation of Adjusted EBITDA to net loss:	2022		2021		2022		2022		2021
Net loss	$            (2,272)		$            (2,825)		$            (1,753)		$            (4,026)		$            (6,140)
Depreciation expense	1,651		2,078		1,680		3,331		4,243
Public offering costs	—		2		—		—		2
Stock based compensation	4		28		5		9		65
Interest expense	121		58		104		225		121
Other income, net	—		(126)		—		—		(135)
Adjusted EBITDA	$               (496)		$               (785)		$                  36		$               (461)		$            (1,844)

 

Other Services^(a)

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
Reconciliation of Adjusted EBITDA to net (loss) income:	2022		2021		2022		2022		2021
Net (loss) income	$               (788)		$             4,286		$            (3,999)		$            (4,786)		$             4,473
Depreciation, amortization and accretion expense	2,809		3,454		2,934		5,744		6,945
Public offering costs	—		6		—		—		6
Stock based compensation	12		23		17		29		44
Interest expense, net	183		138		170		352		284
Other income (expense), net	(1,986)		(736)		478		(1,508)		(493)
Provision (benefit) for income taxes	226		(7,722)		621		846		(12,774)
Adjusted EBITDA	$                456		$               (551)		$                221		$                677		$            (1,515)

a.	Includes results for Mammoth's aviation, equipment rentals, crude oil hauling, 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-strong-second-quarter-2022-operational-and-financial-results-301595697.html

SOURCE Mammoth Energy Services, Inc.

FAQ

What were Mammoth Energy's Q2 2022 earnings results?

Mammoth Energy reported Q2 2022 revenue of $89.7 million, net income of $1.7 million, and adjusted EBITDA of $23.0 million.

What is the future outlook for Mammoth Energy Services in 2023?

The company plans to activate a sixth pressure pumping fleet in Q1 2023, and anticipates increased demand and pricing in its Sand business.

How does Mammoth's Q2 2022 performance compare to the previous year?

In Q2 2021, Mammoth reported revenue of $47.4 million and a net loss of $34.8 million, while in Q2 2022, revenue rose to $89.7 million with a net income of $1.7 million.

What are the main drivers of Mammoth's revenue growth in Q2 2022?

The growth is primarily attributed to increased activity in Infrastructure Services, strong demand in Well Completion Services, and improved pricing in Sand Services.