Mammoth Energy Services, Inc. Announces Third Quarter 2024 Operational and Financial Results
Mammoth Energy Services (NASDAQ: TUSK) reported Q3 2024 financial results with total revenue of $40.0 million, down from $65.0 million in Q3 2023. The company posted a net loss of $24.0 million ($0.50 per share) compared to a net loss of $1.1 million ($0.02 per share) year-over-year. Adjusted EBITDA was ($6.4) million versus $13.4 million in Q3 2023. Notably, Mammoth received $168.4 million from PREPA settlement and became debt-free, with plans to invest in infrastructure and well completion services. As of October 30, 2024, the company had $86.2 million cash on hand and total liquidity of $97.7 million.
Mammoth Energy Services (NASDAQ: TUSK) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato totale di $40,0 milioni, in calo rispetto ai $65,0 milioni del terzo trimestre del 2023. L'azienda ha registrato una perdita netta di $24,0 milioni ($0,50 per azione) rispetto a una perdita netta di $1,1 milioni ($0,02 per azione) rispetto all'anno precedente. L'EBITDA rettificato è stato di ($6,4) milioni contro i $13,4 milioni nel terzo trimestre del 2023. È importante notare che Mammoth ha ricevuto $168,4 milioni dal riconoscimento dell'accordo con PREPA e è diventata senza debiti, con piani di investire in infrastrutture e servizi per il completamento dei pozzi. Al 30 ottobre 2024, l'azienda aveva $86,2 milioni in contante a disposizione e una liquidità totale di $97,7 milioni.
Mammoth Energy Services (NASDAQ: TUSK) informó los resultados financieros del tercer trimestre de 2024 con ingresos totales de $40.0 millones, una disminución respecto a los $65.0 millones en el tercer trimestre de 2023. La empresa reportó una pérdida neta de $24.0 millones ($0.50 por acción) en comparación con una pérdida neta de $1.1 millones ($0.02 por acción) en el mismo período del año anterior. El EBITDA ajustado fue de ($6.4) millones frente a $13.4 millones en el tercer trimestre de 2023. Cabe destacar que Mammoth recibió $168.4 millones del acuerdo con PREPA y se volvió libre de deudas, con planes de invertir en infraestructura y servicios de finalización de pozos. A partir del 30 de octubre de 2024, la empresa tenía $86.2 millones en efectivo y una liquidez total de $97.7 millones.
매머스 에너지 서비스 (NASDAQ: TUSK)는 2024년 3분기 재무 결과를 발표하며 총 수익이 4천만 달러로, 2023년 3분기의 6천5백만 달러에서 감소했다고 전했습니다. 회사는 2천4백만 달러 ($0.50 per share)의 순손실을 기록했으며, 이는 전년 동기 대비 1백1십만 달러 ($0.02 per share)의 순손실에 비해 증가한 수치입니다. 조정된 EBITDA는 6백4십만 달러 적자로, 2023년 3분기의 1천3백4십만 달러와 비교됩니다. 특히 매머스는 PREPA 합의에서 1억6천8백4십만 달러를 수령하였고, 부채가 없는 상태가 되었으며, 인프라 및 유정 완료 서비스에 투자할 계획입니다. 2024년 10월 30일 기준으로, 회사는 8천6백2십만 달러의 현금을 보유하고 있으며, 총 유동성은 9천7백7십만 달러입니다.
Mammoth Energy Services (NASDAQ: TUSK) a annoncé les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires total de 40,0 millions de dollars, en baisse par rapport à 65,0 millions de dollars au troisième trimestre 2023. L'entreprise a enregistré une perte nette de 24,0 millions de dollars (0,50 dollar par action) contre une perte nette de 1,1 million de dollars (0,02 dollar par action) d'une année sur l'autre. L'EBITDA ajusté était de (-6,4) millions de dollars contre 13,4 millions de dollars au troisième trimestre 2023. Il est à noter que Mammoth a reçu 168,4 millions de dollars du règlement avec PREPA et est devenu sans dette, avec des plans d'investir dans des infrastructures et des services d'achèvement de puits. Au 30 octobre 2024, l'entreprise avait 86,2 millions de dollars en espèces et une liquidité totale de 97,7 millions de dollars.
Mammoth Energy Services (NASDAQ: TUSK) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 40,0 Millionen Dollar, was einem Rückgang von 65,0 Millionen Dollar im 3. Quartal 2023 entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 24,0 Millionen Dollar (0,50 Dollar pro Aktie) im Vergleich zu einem Nettoverlust von 1,1 Millionen Dollar (0,02 Dollar pro Aktie) im Vorjahreszeitraum. Das angepasste EBITDA betrug (-6,4) Millionen Dollar im Vergleich zu 13,4 Millionen Dollar im 3. Quartal 2023. Bemerkenswert ist, dass Mammoth 168,4 Millionen Dollar aus dem Vergleich mit PREPA erhalten hat und schuldenfrei geworden ist, mit Plänen zur Investition in Infrastruktur und Dienstleistungen zum Abschluss von Bohrungen. Am 30. Oktober 2024 verfügte das Unternehmen über 86,2 Millionen Dollar in Bargeld und eine Gesamtl Liquidität von 97,7 Millionen Dollar.
- Received $168.4 million from PREPA settlement
- Achieved debt-free status
- Increased liquidity to $97.7 million
- Cash position improved to $86.2 million
- Revenue declined 38.5% to $40.0 million vs Q3 2023
- Net loss increased to $24.0 million from $1.1 million YoY
- Adjusted EBITDA turned negative to ($6.4) million from $13.4 million YoY
- Well completion services revenue dropped 89% to $2.2 million
- Sand sales volume decreased 54% to 163,000 tons
Insights
The Q3 results reveal significant challenges, with total revenue declining
However, the recent
The market dynamics show contrasting trends across segments. Infrastructure services remain relatively stable at
The debt-free status and strong liquidity position create a solid foundation for market share expansion, particularly as management anticipates market improvement in late 2025. The infrastructure division's steady performance provides stability during the well completion services downturn.
Arty Straehla, Chief Executive Officer of Mammoth commented, "Softness across our Well Completion Services markets appeared to have bottomed in the third quarter, and we expect a rebound in the fourth quarter. More importantly, we were pleased to have recently received a total of
Financial Overview for the Third Quarter 2024:
Total revenue was
Net loss for the third quarter was
Adjusted EBITDA (as defined and reconciled below) was
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 | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash expenses: | |||||||
Compensation and benefits | $ 3,173 | $ 3,392 | $ 10,394 | $ 11,665 | |||
Professional services | 3,503 | 4,684 | 9,016 | 10,889 | |||
Other(a) | 1,775 | 2,105 | 5,249 | 5,884 | |||
Total cash SG&A expense | 8,451 | 10,181 | 24,659 | 28,438 | |||
Non-cash expenses: | |||||||
Change in provision for expected credit losses(b) | 32 | 11 | 89,645 | (414) | |||
Stock based compensation | 219 | 219 | 657 | 1,127 | |||
Total non-cash SG&A expense | 251 | 230 | 90,302 | 713 | |||
Total SG&A expense | $ 8,702 | $ 10,411 | $ 114,961 | $ 29,151 | |||
a. | Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs. |
b. | Included in the nine months ended September 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 September 30, 2024, Mammoth had unrestricted cash on hand of
As previously announced, Cobra has received the first two installment payments of
As of October 30, 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 | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Well completion services(a) | $ 3,812 | $ 4,651 | $ 8,549 | $ 14,762 | |||
Infrastructure services(b) | 88 | 69 | 1,051 | 344 | |||
Drilling services(c) | 15 | 98 | 102 | 97 | |||
Other(d) | 323 | 72 | 665 | 82 | |||
Eliminations(a) | (2,341) | (165) | 600 | (20) | |||
Total capital expenditures | $ 1,897 | $ 4,725 | $ 10,967 | $ 15,265 | |||
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, November 1, 2024 at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its third 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 news 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. CONSOLIDATED BALANCE SHEETS | ||||
ASSETS | September 30, | December 31, | ||
2024 | 2023 | |||
CURRENT ASSETS | (in thousands) | |||
Cash and cash equivalents | $ 4,165 | $ 16,556 | ||
Restricted cash | 2,000 | 7,742 | ||
Accounts receivable, net | 232,032 | 447,202 | ||
Inventories | 13,498 | 12,653 | ||
Prepaid expenses | 2,912 | 12,181 | ||
Other current assets | 581 | 591 | ||
Total current assets | 255,188 | 496,925 | ||
Property, plant and equipment, net | 109,394 | 113,905 | ||
Sand reserves, net | 57,497 | 58,528 | ||
Operating lease right-of-use assets | 5,010 | 9,551 | ||
Goodwill | 9,214 | 9,214 | ||
Deferred income tax asset | — | 1,844 | ||
Other non-current assets | 6,675 | 8,512 | ||
Total assets | $ 442,978 | $ 698,479 | ||
LIABILITIES AND EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable | $ 30,065 | $ 27,508 | ||
Accrued expenses and other current liabilities | 35,433 | 86,713 | ||
Accrued expenses and other current liabilities - related parties | — | 1,241 | ||
Current operating lease liability | 3,428 | 5,771 | ||
Income taxes payable | 44,512 | 61,320 | ||
Total current liabilities | 113,438 | 182,553 | ||
Long-term debt from related parties | 49,009 | 42,809 | ||
Deferred income tax liabilities | 2,272 | 628 | ||
Long-term operating lease liability | 1,556 | 3,534 | ||
Asset retirement obligation | 4,244 | 4,140 | ||
Other long-term liabilities | 3,781 | 4,715 | ||
Total liabilities | 174,300 | 238,379 | ||
COMMITMENTS AND CONTINGENCIES | ||||
EQUITY | ||||
Equity: | ||||
Common stock, | 481 | 479 | ||
Additional paid in capital | 540,213 | 539,558 | ||
Accumulated deficit | (268,163) | (76,317) | ||
Accumulated other comprehensive loss | (3,853) | (3,620) | ||
Total equity | 268,678 | 460,100 | ||
Total liabilities and equity | $ 442,978 | $ 698,479 | ||
MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in thousands, except per share amounts) | |||||||
REVENUE | |||||||
Services revenue | $ 34,069 | $ 54,025 | $ 119,653 | $ 221,140 | |||
Services revenue - related parties | 1,037 | 252 | 1,171 | 841 | |||
Product revenue | 4,909 | 10,682 | 13,908 | 34,729 | |||
Total revenue | 40,015 | 64,959 | 134,732 | 256,710 | |||
COST AND EXPENSES | |||||||
Services cost of revenue (exclusive of depreciation, depletion, amortization and | 34,468 | 45,082 | 107,914 | 178,905 | |||
Services cost of revenue - related parties | 118 | 120 | 355 | 360 | |||
Product cost of revenue (exclusive of depreciation, depletion, amortization and | 3,386 | 7,615 | 14,130 | 22,796 | |||
Selling, general and administrative | 8,702 | 10,411 | 114,961 | 29,151 | |||
Depreciation, depletion, amortization and accretion | 6,184 | 11,233 | 19,256 | 36,839 | |||
Gains on disposal of assets, net | (293) | (2,450) | (2,496) | (3,284) | |||
Impairment of goodwill | — | 1,810 | — | 1,810 | |||
Total cost and expenses | 52,565 | 73,821 | 254,120 | 266,577 | |||
Operating loss | (12,550) | (8,862) | (119,388) | (9,867) | |||
OTHER INCOME (EXPENSE) | |||||||
Interest expense and financing charges, net | (8,088) | (2,876) | (15,730) | (9,385) | |||
Interest expense and financing charges, net - related parties | (1,642) | — | (4,670) | — | |||
Other (expense) income, net | (1,122) | 14,088 | (64,658) | 31,051 | |||
Total other (expense) income | (10,852) | 11,212 | (85,058) | 21,666 | |||
(Loss) income before income taxes | (23,402) | 2,350 | (204,446) | 11,799 | |||
Provision (benefit) for income taxes | 640 | 3,438 | (12,600) | 9,006 | |||
Net (loss) income | $ (24,042) | $ (1,088) | $ (191,846) | $ 2,793 | |||
OTHER COMPREHENSIVE (LOSS) INCOME | |||||||
Foreign currency translation adjustment | 125 | (275) | (233) | (45) | |||
Comprehensive (loss) income | $ (23,917) | $ (1,363) | $ (192,079) | $ 2,748 | |||
Net (loss) income per share (basic) | $ (0.50) | $ (0.02) | $ (3.99) | $ 0.06 | |||
Net (loss) income per share (diluted) | $ (0.50) | $ (0.02) | $ (3.99) | $ 0.06 | |||
Weighted average number of shares outstanding (basic) | 48,127 | 47,942 | 48,044 | 47,721 | |||
Weighted average number of shares outstanding (diluted) | 48,127 | 47,942 | 48,044 | 47,973 | |||
MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Nine Months Ended | |||
September 30, | |||
2024 | 2023 | ||
(in thousands) | |||
Cash flows from operating activities: | |||
Net (loss) income | $ (191,846) | $ 2,793 | |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | |||
Stock based compensation | 657 | 1,127 | |
Depreciation, depletion, accretion and amortization | 19,256 | 36,839 | |
Amortization of debt origination costs | 1,076 | 565 | |
Change in provision for expected credit losses | 171,108 | (414) | |
Gains on disposal of assets | (2,496) | (3,284) | |
Gains from sales of equipment damaged or lost down-hole | (160) | (335) | |
Impairment of goodwill | — | 1,810 | |
Gain on sale of business | — | (2,080) | |
Deferred income taxes | 3,488 | (70) | |
Other | 724 | (273) | |
Changes in assets and liabilities: | |||
Accounts receivable, net | 43,107 | 1,445 | |
Inventories | (845) | (2,896) | |
Prepaid expenses and other assets | 9,252 | 8,990 | |
Accounts payable | 1,938 | (7,537) | |
Accrued expenses and other liabilities | (3,796) | (19,679) | |
Accrued expenses and other liabilities - related parties | 4,647 | — | |
Income taxes payable | (16,809) | 7,950 | |
Net cash provided by operating activities | 39,301 | 24,951 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (10,967) | (15,265) | |
Business divestitures, net of cash transferred | — | 3,276 | |
Proceeds from disposal of property and equipment | 5,047 | 4,304 | |
Net cash used in investing activities | (5,920) | (7,685) | |
Cash flows from financing activities: | |||
Borrowings on long-term debt | — | 168,800 | |
Repayments of long-term debt | — | (183,291) | |
Payments on financing transaction | (46,837) | — | |
Payments on sale-leaseback transaction | (3,206) | (3,711) | |
Principal payments on financing leases and equipment financing notes | (1,403) | (4,872) | |
Debt issuance costs | (37) | — | |
Other | — | (919) | |
Net cash used in financing activities | (51,483) | (23,993) | |
Effect of foreign exchange rate on cash | (31) | (28) | |
Net change in cash, cash equivalents and restricted cash | (18,133) | (6,755) | |
Cash, cash equivalents and restricted cash at beginning of period | 24,298 | 17,282 | |
Cash, cash equivalents and restricted cash at end of period | $ 6,165 | $ 10,527 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | $ 2,096 | $ 8,951 | |
Cash paid for income taxes, net of refunds received | $ 716 | $ 788 | |
Supplemental disclosure of non-cash transactions: | |||
Interest paid in kind - related parties | $ 5,888 | $ — | |
Purchases of property and equipment included in accounts payable | $ 3,964 | $ 4,197 | |
Right-of-use assets obtained for financing lease liabilities | $ 2,971 | $ 507 | |
MAMMOTH ENERGY SERVICES, INC. SEGMENT INCOME STATEMENTS (in thousands) | |||||||
Three Months Ended September 30, 2024 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 2,124 | $ 26,043 | $ 4,909 | $ 1,557 | $ 5,382 | $ — | $ 40,015 |
Intersegment revenues | 108 | — | — | — | 1,641 | (1,749) | — |
Total revenue | 2,232 | 26,043 | 4,909 | 1,557 | 7,023 | (1,749) | 40,015 |
Cost of revenue, exclusive of | 7,099 | 22,539 | 3,110 | 1,478 | 3,746 | — | 37,972 |
Intersegment cost of revenues | 185 | — | — | 1 | 1,565 | (1,751) | — |
Total cost of revenue | 7,284 | 22,539 | 3,110 | 1,479 | 5,311 | (1,751) | 37,972 |
Selling, general and administrative | 887 | 5,557 | 1,211 | 230 | 817 | — | 8,702 |
Depreciation, depletion, amortization | 2,546 | 626 | 1,688 | 587 | 737 | — | 6,184 |
Gains on disposal of assets, net | (60) | (41) | — | — | (192) | — | (293) |
Operating (loss) income | (8,425) | (2,638) | (1,100) | (739) | 350 | 2 | (12,550) |
Interest expense and financing charges, | 533 | 8,742 | 135 | 127 | 193 | — | 9,730 |
Other expense (income), net | 1 | 1,491 | 3 | — | (373) | — | 1,122 |
(Loss) income before income taxes | $ (8,959) | $ (12,871) | $ (1,238) | $ (866) | $ 530 | $ 2 | $ (23,402) |
Three Months Ended September 30, 2023 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 20,166 | $ 26,712 | $ 10,633 | $ 2,337 | $ 5,111 | $ — | $ 64,959 |
Intersegment revenues | 161 | — | — | — | 909 | (1,070) | — |
Total revenue | 20,327 | 26,712 | 10,633 | 2,337 | 6,020 | (1,070) | 64,959 |
Cost of revenue, exclusive of | 17,528 | 22,042 | 6,977 | 2,194 | 4,076 | — | 52,817 |
Intersegment cost of revenues | 325 | 10 | — | — | 735 | (1,070) | — |
Total cost of revenue | 17,853 | 22,052 | 6,977 | 2,194 | 4,811 | (1,070) | 52,817 |
Selling, general and administrative | 1,579 | 6,495 | 1,224 | 215 | 898 | — | 10,411 |
Depreciation, depletion, amortization | 3,971 | 1,557 | 2,836 | 1,114 | 1,755 | — | 11,233 |
Gains on disposal of assets, net | (2,016) | (311) | — | — | (123) | — | (2,450) |
Impairment of goodwill | — | — | — | — | 1,810 | — | 1,810 |
Operating loss | (1,060) | (3,081) | (404) | (1,186) | (3,131) | — | (8,862) |
Interest expense and financing charges, | 774 | 1,647 | 117 | 117 | 221 | — | 2,876 |
Other income, net | — | (11,348) | (6) | — | (2,734) | — | (14,088) |
(Loss) income before income taxes | $ (1,834) | $ 6,620 | $ (515) | $ (1,303) | $ (618) | $ — | $ 2,350 |
Nine Months ended September 30, 2024 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 20,218 | $ 82,514 | $ 13,908 | $ 2,804 | $ 15,288 | $ — | $ 134,732 |
Intersegment revenues | 331 | — | 27 | — | 5,005 | (5,363) | $ — |
Total revenue | 20,549 | 82,514 | 13,935 | 2,804 | 20,293 | (5,363) | 134,732 |
Cost of revenue, exclusive of | 25,533 | 68,704 | 13,540 | 3,683 | 10,939 | — | 122,399 |
Intersegment cost of revenues | 638 | 26 | — | 4 | 4,695 | (5,363) | $ — |
Total cost of revenue | 26,171 | 68,730 | 13,540 | 3,687 | 15,634 | (5,363) | 122,399 |
Selling, general and administrative | 3,156 | 105,625 | 3,185 | 618 | 2,377 | — | 114,961 |
Depreciation, depletion, amortization and accretion | 8,501 | 1,972 | 4,105 | 2,075 | 2,603 | — | 19,256 |
Losses (gains) on disposal of assets, net | 85 | (984) | (110) | — | (1,487) | — | (2,496) |
Operating (loss) income | (17,364) | (92,829) | (6,785) | (3,576) | 1,166 | — | (119,388) |
Interest expense and financing charges, | 1,624 | 17,417 | 408 | 377 | 574 | — | 20,400 |
Other expense, net | 2 | 63,919 | 2 | — | 735 | — | 64,658 |
Loss before income taxes | $ (18,990) | $ (174,165) | $ (7,195) | $ (3,953) | $ (143) | $ — | $ (204,446) |
Nine Months ended September 30, 2023 | Well | Infrastructure | Sand | Drilling | All Other | Eliminations | Total |
Revenue from external customers | $ 114,810 | $ 83,308 | $ 34,643 | $ 6,501 | $ 17,448 | $ — | $ 256,710 |
Intersegment revenues | 400 | — | 25 | — | 1,743 | (2,168) | — |
Total revenue | 115,210 | 83,308 | 34,668 | 6,501 | 19,191 | (2,168) | 256,710 |
Cost of revenue, exclusive of | 93,158 | 67,810 | 21,905 | 6,035 | 13,153 | — | 202,061 |
Intersegment cost of revenues | 1,029 | 29 | — | 26 | 1,084 | (2,168) | — |
Total cost of revenue | 94,187 | 67,839 | 21,905 | 6,061 | 14,237 | (2,168) | 202,061 |
Selling, general and administrative | 5,847 | 17,091 | 2,682 | 554 | 2,977 | — | 29,151 |
Depreciation, depletion, amortization and | 13,288 | 7,366 | 6,397 | 3,497 | 6,291 | — | 36,839 |
Gains on disposal of assets, net | (2,016) | (439) | (16) | — | (813) | — | (3,284) |
Impairment of goodwill | — | — | — | — | 1,810 | — | 1,810 |
Operating income (loss) | 3,904 | (8,549) | 3,700 | (3,611) | (5,311) | — | (9,867) |
Interest expense and financing charges, | 2,527 | 5,361 | 422 | 376 | 699 | — | 9,385 |
Other expense (income), net | 1 | (28,713) | (12) | — | (2,327) | — | (31,051) |
Income (loss) before income taxes | $ 1,376 | $ 14,803 | $ 3,290 | $ (3,987) | $ (3,683) | $ — | $ 11,799 |
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, impairment of goodwill, 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 | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net (loss) income | $ (24,042) | $ (1,088) | $ (191,846) | $ 2,793 | |||
Depreciation, depletion, amortization and accretion expense | 6,184 | 11,233 | 19,256 | 36,839 | |||
Gains on disposal of assets, net | (293) | (2,450) | (2,496) | (3,284) | |||
Impairment of goodwill | — | 1,810 | — | 1,810 | |||
Stock based compensation | 219 | 219 | 657 | 1,127 | |||
Interest expense and financing charges, net | 9,730 | 2,876 | 20,400 | 9,385 | |||
Other expense (income), net | 1,122 | (14,088) | 64,658 | (31,051) | |||
Provision (benefit) for income taxes | 640 | 3,438 | (12,600) | 9,006 | |||
Interest on trade accounts receivable | — | 11,443 | (60,686) | 33,897 | |||
Adjusted EBITDA | $ (6,440) | $ 13,393 | $ (162,657) | $ 60,522 | |||
Well Completion Services
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net (loss) income | $ (8,959) | $ (1,834) | $ (18,990) | $ 1,376 | |||
Depreciation and amortization expense | 2,546 | 3,971 | 8,501 | 13,288 | |||
(Gains) losses on disposal of assets, net | (60) | (2,016) | 85 | (2,016) | |||
Stock based compensation | 33 | 64 | 122 | 451 | |||
Interest expense and financing charges, net | 533 | 774 | 1,624 | 2,527 | |||
Other expense, net | 1 | — | 2 | 1 | |||
Adjusted EBITDA | $ (5,906) | $ 959 | $ (8,656) | $ 15,627 | |||
Infrastructure Services
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net (loss) income | $ (13,500) | $ 3,239 | $ (158,767) | $ 6,392 | |||
Depreciation and amortization expense | 626 | 1,557 | 1,972 | 7,366 | |||
Gains on disposal of assets, net | (41) | (311) | (984) | (439) | |||
Stock based compensation | 124 | 99 | 364 | 436 | |||
Interest expense and financing charges, net | 8,742 | 1,647 | 17,417 | 5,361 | |||
Other expense (income), net | 1,491 | (11,348) | 63,919 | (28,713) | |||
Provision (benefit) for income taxes | 629 | 3,381 | (15,398) | 8,411 | |||
Interest on trade accounts receivable | — | 11,443 | (60,686) | 33,897 | |||
Adjusted EBITDA | $ (1,929) | $ 9,707 | $ (152,163) | $ 32,711 | |||
Natural Sand Proppant Services
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net (loss) income | $ (1,238) | $ (515) | $ (7,195) | $ 3,290 | |||
Depreciation, depletion, amortization and accretion expense | 1,688 | 2,836 | 4,105 | 6,397 | |||
Gains on disposal of assets, net | — | — | (110) | (16) | |||
Stock based compensation | 39 | 37 | 109 | 149 | |||
Interest expense and financing charges, net | 135 | 117 | 408 | 422 | |||
Other expense (income), net | 3 | (6) | 2 | (12) | |||
Adjusted EBITDA | $ 627 | $ 2,469 | $ (2,681) | $ 10,230 | |||
Drilling Services
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
Reconciliation of net loss to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net loss | $ (866) | $ (1,303) | $ (3,953) | $ (3,987) | |||
Depreciation expense | 587 | 1,114 | 2,075 | 3,497 | |||
Stock based compensation | 5 | 5 | 15 | 18 | |||
Interest expense and financing charges, net | 127 | 117 | 377 | 376 | |||
Adjusted EBITDA | $ (147) | $ (67) | $ (1,486) | $ (96) | |||
Other Services(a)
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
Reconciliation of net income (loss) to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | |||
Net income (loss) | $ 519 | $ (675) | $ (2,941) | $ (4,278) | |||
Depreciation, amortization and accretion expense | 737 | 1,755 | 2,603 | 6,291 | |||
Gains on disposal of assets, net | (192) | (123) | (1,487) | (813) | |||
Impairment of goodwill | — | 1,810 | — | 1,810 | |||
Stock based compensation | 18 | 14 | 47 | 73 | |||
Interest expense and financing charges, net | 193 | 221 | 574 | 699 | |||
Other (income) expense, net | (373) | (2,734) | 735 | (2,327) | |||
Provision for income taxes | 11 | 57 | 2,798 | 595 | |||
Adjusted EBITDA | $ 913 | $ 325 | $ 2,329 | $ 2,050 | |||
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-third-quarter-2024-operational-and-financial-results-302293680.html
SOURCE Mammoth Energy Services, Inc.
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