Mammoth Energy Services, Inc. Announces Third Quarter 2024 Operational and Financial Results
OKLAHOMA CITY, Nov. 1, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today reported financial and operational results for the third quarter ended September 30, 2024.
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 $168.4 million of the $188.4 million owed to our subsidiary through the Settlement Agreement with the Puerto Rico Electric Power Authority, or PREPA. We are now debt free and have plans to invest in both our Infrastructure Services and Well Completion Services divisions over the next year. In Infrastructure Services, we will be investing in additional crews and our engineering services capabilities to better serve our customers. In our Well Completion Services division, we will be upgrading pressure pumping equipment to more efficient dual fuel Tier 4 technology. We believe this investment positions us to capitalize on rising demand as markets are anticipated to improve later next year. Now that we are debt free and have significant capital to invest into our businesses, we believe we have an excellent platform to increase shareholder value."
Financial Overview for the Third Quarter 2024:
Total revenue was $40.0 million for the third quarter compared to $65.0 million for the same quarter last year.
Net loss for the third quarter was $24.0 million, or $0.50 loss per diluted share, compared to net loss of $1.1 million, or $0.02 loss per diluted share, for the same quarter last year.
Adjusted EBITDA (as defined and reconciled below) was ($6.4) million for the third quarter of 2024, compared to $13.4 million for the same quarter last year.
Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $2.2 million for the third quarter, compared to $20.3 million for the same quarter of 2023. The Company had no pressure pumping fleets active during the third quarter of 2024 compared to an average utilization of 1.2 pressure pumping fleets during the same quarter of 2023. The third quarter 2024 revenue in the well completion services division was primarily attributable to one active pump-down crew.
Infrastructure Services
Mammoth's infrastructure services division contributed revenue of $26.0 million for the third quarter compared to $26.7 million for the same quarter of 2023. Average crew count was 77 crews during the third quarter compared to 81 crews during the same quarter of 2023.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $4.9 million for the third quarter compared to $10.6 million for the same quarter of 2023. In the third quarter, the Company sold approximately 163,000 tons of sand at an average sales price of $22.89 per ton compared to sales of approximately 352,000 tons of sand at an average sales price of $30.18 per ton during the same quarter of 2023.
Drilling Services
Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.6 million for the third quarter compared to $2.3 million for the same quarter of 2023.
Other Services
Mammoth's other services, including aviation, equipment rentals, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $7.0 million for the third quarter compared to $6.0 million for the same quarter of 2023.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were $8.7 million for the third quarter compared to $10.4 million for the same quarter of 2023.
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 $89.2 million related to Cobra's
Settlement Agreement with PREPA.
SG&A expenses, as a percentage of total revenue, were 22% for the third quarter compared to 16% for the same quarter of 2023.
Interest Expense and Financing Charges, net
Interest expense and financing charges, net were $9.7 million for the third quarter compared to $2.9 million for the same quarter of 2023. The Company recognized a charge to interest expense totaling $7.1 million during the third quarter of 2024 related to its sale leaseback agreements.
Liquidity
As of September 30, 2024, Mammoth had unrestricted cash on hand of $4.2 million. As of September 30, 2024, the Company's revolving credit facility was undrawn, the borrowing base was $20.4 million and there was $13.7 million of available borrowing capacity under the revolving credit facility, after giving effect to $6.7 million of outstanding letters of credit. As of September 30, 2024, Mammoth had total liquidity of $17.9 million.
As previously announced, Cobra has received the first two installment payments of $150.0 million and $18.4 million, respectively, in connection with the previously disclosed Settlement Agreement with PREPA in October 2024. Subsequent to the receipt of the first installment payment, the Company paid, in full, all amounts owed under the term credit facility with Wexford Capital LP, including the accrued and unpaid interest, in the aggregate amount of $50.9 million, and terminated the facility on October 2, 2024. In connection with the receipt of the second installment payment from PREPA, as required under the terms of the Settlement Agreement, Cobra instructed Fifth Third Bank, National Association ("Fifth Third Bank") to issue a letter of credit to PREPA in the amount of $18.4 million and transferred a total of $19.3 million to a restricted cash account maintained by Fifth Third Bank as collateral for the letter of credit.
As of October 30, 2024, Mammoth had cash on hand of $86.2 million, no outstanding borrowings under its revolving credit facility, and a borrowing base of $18.2 million. As of October 30, 2024, the Company had $11.5 million of available borrowing capacity under its revolving credit facility and total liquidity of $97.7 million.
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 Ukraine and the Israel-Hamas war on the global energy and capital markets and global stability; performance of contracts and supply chain disruptions; inflationary pressures; higher interest rates and their impact on the cost of capital; instability in the banking and financial services sectors; the outcome of ongoing government investigations and other legal proceedings; the failure to receive or delays in receiving the remaining payments under the settlement agreement with PREPA; 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, including concerns over a potential economic slowdown or recession; 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 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 comply with the applicable financial covenants and other terms and conditions under its 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 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, $0.01 par value, 200,000,000 shares authorized, 48,127,369 and 47,941,652 481 479
issued and outstanding at September 30, 2024 and December 31, 2023
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
accretion of $4,495, $8,394, $15,149, $30,426, respectively, for the three months
ended September 30, 2024 and 2023 and nine months ended September 30, 2024
and 2023)
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
accretion of $1,688, $2,836, $4,105, $6,395, respectively, for the three months
ended September 30, 2024 and 2023 and nine months ended September 30, 2024
and 2023)
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
Completion
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
depreciation, depletion, amortization and
accretion
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
and accretion
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
net
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
Completion
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
depreciation, depletion, amortization and
accretion
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
and accretion
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
net
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
Completion
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
depreciation, depletion, amortization and
accretion
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 8,501 1,972 4,105 2,075 2,603 19,256
accretion
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
net
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
Completion
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
depreciation, depletion, amortization and
accretion
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
accretion
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
net
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.
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SOURCE Mammoth Energy Services, Inc.
