• Mammoth Energy Services, Inc. Announces Second Quarter 2021 Operational and Financial Results

    Source: Nasdaq GlobeNewswire / 30 Jul 2021 06:00:01   America/New_York

    OKLAHOMA CITY, July 30, 2021 (GLOBE NEWSWIRE) -- Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June 30, 2021.

    Financial Overview for the Second Quarter 2021:

    Total revenue was $47.4 million for the second quarter of 2021, as compared to $60.1 million for the same quarter last year and $66.8 million for the first quarter of 2021.

    Net loss for the second quarter of 2021 was $34.8 million, or a $0.75 loss per share, as compared to a net loss of $15.2 million, or a $0.33 loss per share, for the same quarter last year, and a net loss of $12.4 million, or a $0.27 loss per share, for the first quarter of 2021.

    Adjusted EBITDA (as defined and reconciled below) was ($5.5) million for the second quarter of 2021, as compared to $6.9 million for the same quarter last year and $6.4 million for the first quarter of 2021.

    Arty Straehla, Chief Executive Officer of Mammoth commented, “While second quarter results did not meet expectations, internally we remain focused on improving near-term results as we continue migrating the Company further into the infrastructure space to enhance long-term growth and sustainability. In our energy businesses, improved commodities pricing is generating some positive industry movement and increased equipment utilization as we are ramping up to put a second hydraulic fracturing fleet to work in mid-August. We are also beginning to experience increased market activity in our sand business.”

    “In the infrastructure space, improving macro trends related to increased project bidding levels and funding capacity in the sector persists. We continue to pursue opportunities within this sector as we strategically structure our service offerings for growth, both the geographic footprint and depth of projects.”

    Straehla continued, “Lastly, we are continuing our efforts to collect our receivable from PREPA for work performed by our subsidiary Cobra in Puerto Rico. We believe that published documentation to date continues to show that our team performed a difficult job in a difficult environment to save lives and aid the people of Puerto Rico in their time of need.”

    Infrastructure Services
    Mammoth's infrastructure services division contributed revenue (inclusive of inter-segment revenue) of $17.2 million, or approximately 36% of Mammoth's total revenue, for the second quarter of 2021, as compared to $30.2 million for the same quarter last year and $29.3 million for the first quarter of 2021. The decrease in revenue compared to the same quarter of 2020 and first quarter of 2021 is primarily due to management and crew turnover.

    Well Completion Services
    Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $17.4 million on 520 stages for the second quarter of 2021, as compared to $16.5 million on 658 stages for the same quarter last year and $23.0 million on 445 stages for the first quarter of 2021. On average, 0.9 of the Company's fleets were active for the second quarter, compared to an average utilization of 1.9 fleets during the same quarter last year and an average utilization of 0.9 fleets during the first quarter of 2021.
      
    Natural Sand Proppant Services
    Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $6.9 million for the second quarter of 2021, as compared to $6.2 million for the same quarter last year and $8.7 million for the first quarter of 2021. In the second quarter of 2021, the Company sold approximately 255,000 tons of sand at an average sales price of $15.80 per ton, as compared to sales of approximately 82,000 tons of sand at an average sales price of $15.18 per ton during the same quarter last year. In the first quarter of 2021, sales were approximately 171,000 tons of sand at an average price of $16.83 per ton.

    Drilling Services
    Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.1 million for the second quarter of 2021, as compared to $1.2 million for the same quarter last year and $0.9 million for the first quarter of 2021.

    As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.

    Other Services
    Mammoth's other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation, remote accommodations, equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of $5.5 million for the second quarter of 2021, as compared to $6.8 million for the same quarter last year and $5.7 million for the first quarter of 2021.

    As a result of market conditions, the Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.

    Selling, General and Administrative Expenses
    Selling, general and administrative (“SG&A”) expenses were $12.0 million for the second quarter of 2021, as compared to $13.7 million for the same quarter last year and $20.8 million for the first quarter of 2021.

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

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
     2021 2020 2021 2021 2020
    Cash expenses:         
    Compensation and benefits$3,333   $3,720   $4,694   $8,027   $7,690  
    Professional services5,806   6,147   3,405   9,211   9,684  
    Other(a)2,464   2,100   2,342   4,806   4,409  
    Total cash SG&A expense11,603   11,967   10,441   22,044   21,783  
    Non-cash expenses:         
    Bad debt provision76   1,624   10,125   10,201   1,679  
    Stock based compensation304   135   282   586   1,035  
    Total non-cash SG&A expense380   1,759   10,407   10,787   2,714  
    Total SG&A expense$11,983   $13,726   $20,848   $32,831   $24,497  
    a.        Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.                   

    SG&A expenses, as a percentage of total revenue, were 25% for the second quarter of 2021, as compared to 23% for the same quarter last year and 31% for the first quarter of 2021. The bad debt provision for the first quarter of 2021 includes $10.0 million related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

    Liquidity
    As of June 30, 2021, Mammoth had cash on hand of $11.0 million, outstanding borrowings under its revolving credit facility of $60.2 million and $51.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit. As of June 30, 2021, Mammoth had total liquidity of $62.1 million.

    As of July 27, 2021, Mammoth had cash on hand of $13.7 million, outstanding borrowings under its revolving credit facility of $61.4 million and $49.8 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit.

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

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
     2021 2020 2021 2021 2020
    Infrastructure services(a)$104  $43  $189  $293  $43 
    Well completion services(b)388  2,450  412  800  3,054 
    Natural sand proppant services(c)5  354  408  413  875 
    Drilling services(d)1  67  37  38  67 
    Other(e)63  10  102  165  385 
    Total capital expenditures$561  $2,924  $1,148  $1,709  $4,424 
    a.  Capital expenditures primarily for tooling and other equipment for the periods presented.
    b.  Capital expenditures primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and water transfer equipment for the periods presented.
    c.   Capital expenditures primarily for maintenance for the periods presented.
    d.   Capital expenditures primarily for maintenance for the periods presented.
    e.   Capital expenditures primarily for equipment for the Company's rental businesses for the periods presented.

    Conference Call Information
    Mammoth will host a conference call on Friday, July 30, 2021 at 8:00 a.m. CDT (9:00 a.m. EDT) to discuss its second quarter 2021 financial and operational results. The telephone number to access the conference call is 216-562-0385. The conference call will also be webcast live on https://ir.mammothenergy.com/events-presentations.

    About Mammoth Energy Services, Inc.
    Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth’s suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.

    Contacts:
    Mark Layton, CFO
    Mammoth Energy Services, Inc
    investors@mammothenergy.com

    Rick Black / Ken Dennard
    Dennard Lascar Investor Relations
    TUSK@dennardlascar.com

    Forward-Looking Statements and Cautionary Statements
    This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company's subsidiary Cobra Acquisitions LLC by the Puerto Rico Electric Power Authority and contracts for our pressure pumping services and natural sand proppant services; the Company's inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions; the loss of or interruption in operations of one or more of Mammoth's significant suppliers or customers; the outcome or settlement of our litigation matters, including our litigation with Gulfport Energy Corporation and MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations ; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.

    Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.

    MAMMOTH ENERGY SERVICES, INC.
    CONSOLIDATED BALANCE SHEETS

    ASSETS June 30, December 31,
      2021 2020
    CURRENT ASSETS (in thousands)
    Cash and cash equivalents $11,038   $14,822  
    Short-term investment 1,757   1,750  
    Accounts receivable, net 413,245   393,112  
    Receivables from related parties, net 80   28,461  
    Inventories 10,212   12,020  
    Prepaid expenses 7,936   13,825  
    Other current assets 708   758  
    Other current assets - related parties —   —  
    Total current assets 444,976   464,748  
         
    Property, plant and equipment, net 210,397   251,262  
    Sand reserves 65,491   65,876  
    Operating lease right-of-use assets 15,777   20,179  
    Intangible assets, net - customer relationships 321   408  
    Intangible assets, net - trade names 3,946   4,366  
    Goodwill 12,608   12,608  
    Deferred income tax asset 8,094   —  
    Other non-current assets 4,329   5,115  
    Total assets $765,939   $824,562  
    LIABILITIES AND EQUITY    
    CURRENT LIABILITIES    
    Accounts payable $39,505   $40,316  
    Payables to related parties 4   3  
    Accrued expenses and other current liabilities 63,375   44,408  
    Current operating lease liability 7,255   8,618  
    Current portion of long-term debt 1,430   1,165  
    Income taxes payable 35,198   34,088  
    Total current liabilities 146,767   128,598  
         
    Long-term debt, net of current portion 62,811   81,338  
    Deferred income tax liabilities 12,041   24,741  
    Long-term operating lease liability 8,293   11,377  
    Asset retirement obligation 3,666   4,746  
    Other liabilities 15,159   10,435  
    Total liabilities 248,737   261,235  
         
    COMMITMENTS AND CONTINGENCIES    
         
    EQUITY    
    Equity:    
    Common stock, $0.01 par value, 200,000,000 shares authorized, 46,680,731 and 45,769,283 issued and outstanding at June 30, 2021 and December 31, 2020 467   458  
    Additional paid in capital 537,728   537,039  
    Retained earnings (18,335)  28,895  
    Accumulated other comprehensive loss (2,658)  (3,065) 
    Total equity 517,202   563,327  
    Total liabilities and equity $765,939   $824,562  

    MAMMOTH ENERGY SERVICES, INC.

    CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
     2021 2020 2021 2021 2020
     (in thousands, except per share amounts)
    REVENUE 
    Services revenue$40,867   $44,878   $42,691   $83,558   $113,723  
    Services revenue - related parties90   8,650   14,986   15,076   26,663  
    Product revenue6,483   4,706   6,982   13,465   13,356  
    Product revenue - related parties—   1,875   2,145   2,145   3,750  
    Total revenue47,440   60,109   66,804   114,244   157,492  
              
    COST AND EXPENSES         
    Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $17,861, $21,750, $18,989, $36,850 and $45,305, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)43,103   42,255   42,062   85,165   112,952  
    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, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)107   97   109   216   198  
    Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,384, $2,346, $2,137, $4,521 and $4,654, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)7,165   6,401   5,909   13,074   17,509  
    Selling, general and administrative11,791   13,528   20,655   32,446   24,084  
    Selling, general and administrative - related parties192   198   193   385   413  
    Depreciation, depletion, amortization and accretion20,265   24,116   21,146   41,411   49,998  
    Impairment of goodwill—   —   —   —   54,973  
    Impairment of other long-lived assets—   —   —   —   12,897  
    Total cost and expenses82,623   86,595   90,074   172,697   273,024  
    Operating loss(35,183)  (26,486)  (23,270)  (58,453)  (115,532) 
              
    OTHER INCOME (EXPENSE)         
    Interest expense, net(1,169)  (1,471)  (1,225)  (2,394)  (3,109) 
    Other (expense) income, net(14,998)  8,137   9,947   (5,051)  15,546  
    Other (expense) income, net - related parties—   1,133   (515)  (515)  1,133  
    Total other (expense) income(16,167)  7,799   8,207   (7,960)  13,570  
    Loss before income taxes(51,350)  (18,687)  (15,063)  (66,413)  (101,962) 
    Benefit for income taxes(16,560)  (3,482)  (2,623)  (19,183)  (2,786) 
    Net loss$(34,790)  $(15,205)  $(12,440)  $(47,230)  $(99,176) 
              
    OTHER COMPREHENSIVE INCOME (LOSS)         
    Foreign currency translation adjustment, net of tax of $63, ($150), ($42), $680 and $211, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020239   668   168   407   (746) 
    Comprehensive loss$(34,551)  $(14,537)  $(12,272)  $(46,823)  $(99,922) 
              
    Net loss per share (basic)$(0.75)  $(0.33)  $(0.27)  $(1.02)  $(2.18) 
    Net loss per share (diluted)$(0.75)  $(0.33)  $(0.27)  $(1.02)  $(2.18) 
    Weighted average number of shares outstanding (basic)46,402   45,727   45,932   46,168   45,521  
    Weighted average number of shares outstanding (diluted)46,402   45,727   45,932   46,168   45,521  


    MAMMOTH ENERGY SERVICES, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS

     Six Months Ended
     June 30,
     2021 2020
     (in thousands)
    Cash flows from operating activities:   
    Net loss$(47,230)  $(99,176) 
    Adjustments to reconcile net loss to cash provided by operating activities:   
    Stock based compensation698   1,246  
    Depreciation, depletion, accretion and amortization41,411   49,998  
    Amortization of coil tubing strings—   359  
    Amortization of debt origination costs296   577  
    Bad debt expense10,201   1,679  
    Gain on disposal of property and equipment(1,599)  (1,451) 
    Impairment of goodwill—   54,973  
    Impairment of other long-lived assets—   12,897  
    Deferred income taxes(20,898)  931  
    Other548   623  
    Changes in assets and liabilities:   
    Accounts receivable, net(30,386)  7,782  
    Receivables from related parties28,381   (19,793) 
    Inventories1,808   4,651  
    Prepaid expenses and other assets5,923   6,079  
    Accounts payable(1,546)  (7,514) 
    Payables to related parties1   (512) 
    Accrued expenses and other liabilities15,756   (2,818) 
    Income taxes payable1,107   (3,697) 
    Net cash provided by operating activities4,471   6,834  
        
    Cash flows from investing activities:   
    Purchases of property and equipment(1,709)  (4,348) 
    Purchases of property and equipment from related parties—   (76) 
    Proceeds from disposal of property and equipment4,632   2,544  
    Net cash provided by (used in) investing activities2,923   (1,880) 
        
    Cash flows from financing activities:   
    Borrowings on long-term debt12,000   22,800  
    Repayments of long-term debt(30,269)  (13,550) 
    Proceeds from sale leaseback transaction9,473   —  
    Payments on sale leaseback transaction(1,278)  —  
    Principal payments on financing leases and equipment financing notes(1,140)  (914) 
    Debt issuance costs—   (1,000) 
    Net cash (used in) provided by financing activities(11,214)  7,336  
    Effect of foreign exchange rate on cash36   (137) 
    Net change in cash and cash equivalents(3,784)  12,153  
    Cash and cash equivalents at beginning of period14,822   5,872  
    Cash and cash equivalents at end of period$11,038   $18,025  
        
    Supplemental disclosure of cash flow information:   
    Cash paid for interest$2,134   $2,683  
    Cash paid (recovered) for income taxes$964   $(6) 
    Supplemental disclosure of non-cash transactions:   
    Purchases of property and equipment included in accounts payable$2,035   $2,780  


    MAMMOTH ENERGY SERVICES, INC.
    SEGMENT INCOME STATEMENTS
    (in thousands)

    Three months ended June 30, 2021InfrastructureWell
    Completion    (a)    		SandDrillingAll OtherEliminationsTotal
    Revenue from external customers$17,220  $17,337  $6,886  $1,130  $4,867  $—  $47,440  
    Intersegment revenues—  36  —  17  682  (735) —  
    Total revenue17,220  17,373  6,886  1,147  5,549  (735) 47,440  
    Cost of revenue, exclusive of depreciation, depletion, amortization and accretion19,881  16,396  7,400  1,568  5,130  —  50,375  
    Intersegment cost of revenues50  666  —  —  19  (735) —  
    Total cost of revenue19,931  17,062  7,400  1,568  5,149  (735) 50,375  
    Selling, general and administrative7,383  1,893  991  395  1,321  —  11,983  
    Depreciation, depletion, amortization and accretion5,899  6,447  2,387  2,079  3,453  —  20,265  
    Operating loss(15,993) (8,029) (3,892) (2,895) (4,374) —  (35,183) 
    Interest expense, net656  219  90  58  146  —  1,169  
    Other expense (income), net15,904  1  (53) (127) (727) —  14,998  
    Loss before income taxes$(32,553) $(8,249) $(3,929) $(2,826) $(3,793) $—  $(51,350) 


    Three months ended June 30, 2020InfrastructureWell
    Completion    (a)    		SandDrillingAll OtherEliminationsTotal
    Revenue from external customers$30,249  $16,125  $6,237  $1,250  $6,248  $—  $60,109  
    Intersegment revenues—  419  —  —  584  (1,003) —  
    Total revenue30,249  16,544  6,237  1,250  6,832  (1,003) 60,109  
    Cost of revenue, exclusive of depreciation, depletion, amortization and accretion25,217  8,375  6,394  2,012  6,755  —  48,753  
    Intersegment cost of revenues27  333  —  21  622  (1,003) —  
    Total cost of revenue25,244  8,708  6,394  2,033  7,377  (1,003) 48,753  
    Selling, general and administrative7,830  1,456  1,378  1,331  1,731  —  13,726  
    Depreciation, depletion, amortization and accretion7,500  7,675  2,358  2,671  3,912  —  24,116  
    Operating loss(10,325) (1,295) (3,893) (4,785) (6,188) —  (26,486) 
    Interest expense, net716  329  69  132  225  —  1,471  
    Other (income) expense, net(8,004) (1,179) (2) (298) 213  —  (9,270) 
    Loss before income taxes$(3,037) $(445) $(3,960) $(4,619) $(6,626) $—  $(18,687) 


    Three months ended March 31, 2021InfrastructureWell
    Completion    (a)    		SandDrillingAll OtherEliminationsTotal
    Revenue from external customers$29,257  $22,901  $8,705  $919  $5,022  $—  $66,804  
    Intersegment revenues—  54  —  14  640  (708) —  
    Total revenue29,257  22,955  8,705  933  5,662  (708) 66,804  
    Cost of revenue, exclusive of depreciation, depletion, amortization and accretion26,458  9,003  5,862  1,604  5,153  —  48,080  
    Intersegment cost of revenues45  394  —  —  269  (708) —  
    Total cost of revenue26,503  9,397  5,862  1,604  5,422  (708) 48,080  
    Selling, general and administrative6,253  10,612  2,049  422  1,512  —  20,848  
    Depreciation, depletion, amortization and accretion6,667  6,683  2,140  2,165  3,491  —  21,146  
    Operating loss(10,166) (3,737) (1,346) (3,258) (4,763) —  (23,270) 
    Interest expense, net661  254  93  63  154  —  1,225  
    Other (income) expense, net(9,310) 439  (794) (9) 242  —  (9,432) 
    Loss before income taxes$(1,517) $(4,430) $(645) $(3,312) $(5,159) $—  $(15,063) 


    MAMMOTH ENERGY SERVICES, INC.
    SEGMENT INCOME STATEMENTS
    (in thousands)

    Six months ended June 30, 2021InfrastructureWell
    Completion    (a)    		SandDrillingAll OtherEliminationsTotal
    Revenue from external customers$46,476  $40,238  $15,592  $2,049  $9,889  $—  $114,244  
    Intersegment revenues—  90  —  31  1,322  (1,443) —  
    Total revenue46,476  40,328  15,592  2,080  11,211  (1,443) 114,244  
    Cost of revenue, exclusive of depreciation, depletion, amortization and accretion46,340  25,399  13,262  3,173  10,281  —  98,455  
    Intersegment cost of revenues95  1,060  —  —  288  (1,443) —  
    Total cost of revenue46,435  26,459  13,262  3,173  10,569  (1,443) 98,455  
    Selling, general and administrative13,635  12,505  3,040  818  2,833  —  32,831  
    Depreciation, depletion, amortization and accretion12,566  13,130  4,527  4,242  6,946  —  41,411  
    Operating loss(26,160) (11,766) (5,237) (6,153) (9,137) —  (58,453) 
    Interest expense, net1,317  473  183  121  300  —  2,394  
    Other expense (income), net6,593  440  (847) (135) (485) —  5,566  
    Loss before income taxes$(34,070) $(12,679) $(4,573) $(6,139) $(8,952) $—  $(66,413) 


    Six months ended June 30, 2020InfrastructureWell
    Completion    (a)    		SandDrillingAll OtherEliminationsTotal
    Revenue from external customers$55,724  $58,811  $16,391  $5,973  $20,593  $—  $157,492  
    Intersegment revenues—  1,052  95  5  1,360  (2,512) —  
    Total revenue55,724  59,863  16,486  5,978  21,953  (2,512) 157,492  
    Cost of revenue, exclusive of depreciation, depletion, amortization and accretion51,897  33,943  17,691  7,637  19,491  —  130,659  
    Intersegment cost of revenues35  961  —  152  1,364  (2,512) —  
    Total cost of revenue51,932  34,904  17,691  7,789  20,855  (2,512) 130,659  
    Selling, general and administrative11,774  3,627  2,680  2,394  4,022  —  24,497  
    Depreciation, depletion, amortization and accretion15,122  16,157  4,681  5,520  8,518  —  49,998  
    Impairment of goodwill—  53,406  —  —  1,567  —  54,973  
    Impairment of other long-lived assets—  4,203  —  326  8,368  —  12,897  
    Operating loss(23,104) (52,434) (8,566) (10,051) (21,377) —  (115,532) 
    Interest expense, net1,467  605  147  389  501  —  3,109  
    Other (income) expense, net(15,707) (1,288) (39) (271) 626  —  (16,679) 
    Loss before income taxes$(8,864) $(51,751) $(8,674) $(10,169) $(22,504) $—  $(101,962) 
    a. Mammoth changed the name of its pressure pumping segment to the well completion segment during the fourth quarter of 2020.

    MAMMOTH ENERGY SERVICES, INC.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Adjusted EBITDA

    Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion expense, impairment of goodwill, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets and interest on trade accounts receivable) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth's operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.

    The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income (loss) on a consolidated basis and for each of the Company's segments (in thousands):

    Consolidated

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
    Reconciliation of Adjusted EBITDA to net loss:2021 2020 2021 2021 2020
    Net loss$(34,790)  $(15,205)  $(12,440)  $(47,230)  $(99,176) 
    Depreciation, depletion, amortization and accretion expense20,265   24,116   21,146   41,411   49,998  
    Impairment of goodwill—   —   —   —   54,973  
    Impairment of other long-lived assets—   —   —   —   12,897  
    Public offering costs77   —   —   77   —  
    Stock based compensation354   196   344   698   1,246  
    Interest expense, net1,169   1,471   1,225   2,394   3,109  
    Other expense (income), net14,998   (9,270)  (9,432)  5,566   (16,679) 
    Benefit for income taxes(16,560)  (3,482)  (2,623)  (19,183)  (2,786) 
    Interest on trade accounts receivable9,017   9,071   8,158   17,175   16,767  
    Adjusted EBITDA$(5,470)  $6,897   $6,378   $908   $20,349  

    MAMMOTH ENERGY SERVICES, INC.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Infrastructure Services

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
    Reconciliation of Adjusted EBITDA to net loss:2021 2020 2021 2021 2020
    Net loss$(23,715)  $(3,985)  $(3,945)  $(27,658)  $(12,303) 
    Depreciation and amortization expense5,899   7,500   6,667   12,566   15,122  
    Public offering costs43   —   —   43   —  
    Stock based compensation158   44   135   293   286  
    Interest expense656   716   661   1,317   1,467  
    Other expense (income), net15,904   (8,004)  (9,310)  6,593   (15,707) 
    (Benefit) provision for income taxes(8,838)  949   2,428   (6,410)  3,440  
    Interest on trade accounts receivable9,017   7,930   8,673   17,690   15,626  
    Adjusted EBITDA$(876)  $5,150   $5,309   $4,434   $7,931  

    Well Completion Services

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
    Reconciliation of Adjusted EBITDA to net loss:2021 2020 2021 2021 2020
    Net loss$(8,249)  $(446)  $(4,430)  $(12,680)  $(51,750) 
    Depreciation and amortization expense6,447   7,675   6,683   13,130   16,157  
    Impairment of goodwill—   —   —   —   53,406  
    Impairment of other long-lived assets—   —   —   —   4,203  
    Public offering costs12   —   —   12   —  
    Stock based compensation75   53   83   158   381  
    Interest expense219   329   254   473   605  
    Other expense (income), net1   (1,179)  439   440   (1,288) 
    Interest on trade accounts receivable—   1,133   (514)  (514)  1,133  
    Adjusted EBITDA$(1,495)  $7,565   $2,515   $1,019   $22,847  

    Natural Sand Proppant Services

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
    Reconciliation of Adjusted EBITDA to net loss:2021 2020 2021 2021 2020
    Net loss$(3,929)  $(3,960)  $(645)  $(4,573)  $(8,676) 
    Depreciation, depletion, amortization and accretion expense2,387   2,358   2,140   4,527   4,681  
    Public offering costs12   —     12   —  
    Stock based compensation65   46   64   130   278  
    Interest expense90   69   93   183   147  
    Other income, net(53)  (2)  (794)  (847)  (39) 
    Interest on trade accounts receivable—   —   (1)  (1)  —  
    Adjusted EBITDA$(1,428)  $(1,489)  $857   $(569)  $(3,609) 


    MAMMOTH ENERGY SERVICES, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Drilling Services

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
    Reconciliation of Adjusted EBITDA to net loss:2021 2020 2021 2021 2020
    Net loss$(2,826)  $(4,620)  $(3,312)  $(6,139)  $(10,169) 
    Depreciation expense2,079   2,671   2,165   4,242   5,520  
    Impairment of other long-lived assets—   —   —   —   326  
    Acquisition related costs—   —   —   —   —  
    Public offering costs2   —     2   —  
    Stock based compensation28   34   38   65   128  
    Interest expense58   132   63   121   389.172  
    Other income, net(127)  (298)  (9)  (135)  (271) 
    Adjusted EBITDA$(786)  $(2,081)  $(1,055)  $(1,844)  $(4,077) 

    Other Services(a)

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
    Reconciliation of Adjusted EBITDA to net income (loss):2021 2020 2021 2021 2020
    Net income (loss)$3,929   $(2,195)  $(108)  $3,820   $(16,279) 
    Depreciation, amortization and accretion expense3,453   3,912   3,491   6,946   8,518  
    Impairment of goodwill—   —   —   —   1,567  
    Impairment of other long-lived assets—   —   —   —   8,368  
    Public offering costs8   —     8   —  
    Stock based compensation28   20   24   52   173  
    Interest expense, net146   225   154   300   501  
    Other (income) expense, net(727)  213   242   (485)  626  
    Benefit for income taxes(7,722)  (4,430)  (5,051)  (12,773)  (6,226) 
    Interest on trade accounts receivable—   9   —   —   9  
    Adjusted EBITDA$(885)  $(2,246)  $(1,248)  $(2,132)  $(2,743) 
    a.   Includes results for Mammoth's aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation and remote
    accommodations, equipment manufacturing and infrastructure engineering and design services and corporate related activities. The Company's corporate
    related activities do not generate revenue.


    MAMMOTH ENERGY SERVICES, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Adjusted Net Loss and Adjusted Loss per Share

    Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company's operating and financial performance. Management believes these measures provide meaningful information about the Company's performance by excluding certain non-cash charges, such as impairment of goodwill and impairment of other long-lived assets, that may not be indicative of the Company's ongoing operating results. Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.

     Three Months Ended Six Months Ended
     June 30, March 31, June 30,
     2021 2020 2021 2021 2020
     (in thousands, except per share amounts)
    Net loss, as reported$(34,790)  $(15,205)  $(12,440)  $(47,230)  $(99,176) 
    Impairment of goodwill—    —    —    —    54,973   
    Impairment of other long-lived assets—    —    —    —    12,897   
    Adjusted net loss$(34,790)  $(15,205)  $(12,440)  $(47,230)  $(31,306) 
              
    Basic loss per share, as reported$(0.75)  $(0.33)  $(0.27)  $(1.02)  $(2.18) 
    Impairment of goodwill—    —    —    —    1.21   
    Impairment of other long-lived assets—    —    —    —    0.28   
    Adjusted basic loss per share$(0.75)  $(0.33)  $(0.27)  $(1.02)  $(0.69) 
              
    Diluted loss per share, as reported$(0.75)  $(0.33)  $(0.27)  $(1.02)  $(2.18) 
    Impairment of goodwill—    —    —    —    1.21   
    Impairment of other long-lived assets—    —    —    —    0.28   
    Adjusted diluted loss per share$(0.75)  $(0.33)  $(0.27)  $(1.02)  $(0.69) 

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