0001679268FALSE00016792682024-03-012024-03-01



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 1, 2024
 
Mammoth Energy Services, Inc.

(Exact name of registrant as specified in its charter)

001-37917
(Commission File No.)
Delaware32-0498321
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
14201 Caliber Drive,Suite 300
Oklahoma City,Oklahoma(405)608-600773134
(Address of principal executive offices)(Registrant’s telephone number, including area code)(Zip Code)
______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of The Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockTUSKThe Nasdaq Stock Market LLC
NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(s) of the Exchange Act.  ¨





Item 2.02 Results of Operations and Financial Condition

On March 1, 2024, Mammoth Energy Services, Inc. (the “Company”) issued a press release announcing its operational and financial results for the fourth quarter and full year ended December 31, 2023. A copy of that press release is furnished as Exhibit 99.1 to this report.

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.

Item 7.01 Regulation FD Disclosure

On March 1, 2024, the Company posted an investor presentation to the “investors” section of its website (www.mammothenergy.com), where the Company routinely posts announcements, updates, events, investor information and presentations and recent news releases. Information on the Company's website does not constitute part of this Current Report on Form 8-K.

The information in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.





Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MAMMOTH ENERGY SERVICES, INC.
Date:March 1, 2024By:/s/ Mark Layton
Mark Layton
Chief Financial Officer and Secretary







Exhibit 99.1

imagea.jpg


Mammoth Energy Services, Inc. Announces PREPA’s Payment of $50.6 Million and Reports Fourth Quarter and Full Year 2023 Operational and Financial Results


OKLAHOMA CITY - March 1, 2024 - Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today announced payment of $50.6 million from the Puerto Rico Electric Power Authority (“PREPA”) for a portion of the work its wholly-owned subsidiary Cobra Acquisitions LLC (“Cobra”) completed in the aftermath of Hurricane Maria. This is in addition to $13.4 million paid by PREPA in January 2024. As previously announced, on December 1, 2023, Cobra entered into an agreement to transfer approximately $54.4 million of its outstanding receivable with PREPA to SPCP Group, LLC (“SPCP Group”). The aggregate payments from PREPA in 2024 totaling $64.0 million fully satisfied the obligations to SPCP Group and resulted in Cobra receiving approximately $9.6 million in cash.

Mark Layton, Chief Financial Officer of Mammoth commented, “We’re pleased to have received these payments from PREPA, which has allowed us to extinguish the liability owed to SPCP Group and collect nearly $10 million in cash. We continue to pursue payment of the outstanding amounts owed to Cobra, including the associated interest, as these payments represent only a portion of the amounts still owed to us.”

In addition, today Mammoth reported financial and operational results for the fourth quarter and full year ended December 31, 2023.

Financial Overview for the Fourth Quarter and Full Year 2023:

Total revenue was $52.8 million for the fourth quarter of 2023 compared to $102.9 million for the same quarter of 2022 and $65.0 million for the third quarter of 2023. Total revenue for the full year of 2023 was $309.5 million, a decrease of 15% compared to $362.1 million in 2022.

Net loss for the fourth quarter of 2023 was $6.0 million, or $0.12 loss per diluted share, compared to net income of $4.8 million, or $0.10 per diluted share, for the same quarter of 2022 and net loss of $1.1 million, or $0.02 loss per diluted share, for the third quarter of 2023. Net loss for the full year of 2023 was $3.2 million, or $0.07 per fully diluted share, compared to net loss of $0.6 million, or $0.01 per fully diluted share for 2022.

Adjusted EBITDA (as defined and reconciled below) was $10.5 million for the fourth quarter of 2023, compared to $24.1 million for the same quarter of 2022 and $13.4 million for the third quarter of 2023. Adjusted EBITDA was $71.0 million for the full year of 2023 compared to $86.1 million for 2022.

Arty Straehla, Chief Executive Officer of Mammoth commented, “The fourth quarter proved to be challenging, largely due to additional deferred activity by exploration and production companies, commodity price fluctuations, and customer budget exhaustion. Despite the operational softness we experienced this year, 2023 marked several accomplishments for Mammoth as we completed a significant debt refinancing transaction, began receiving payments from PREPA on our outstanding receivable and entered into an agreement to monetize a portion of our outstanding PREPA receivable.”

“In 2023, we entered into a new revolving credit facility agreement and a new term loan agreement, which refinanced, in full, Mammoth’s indebtedness outstanding under our previous revolving credit facility. We believe


these new agreements provide Mammoth with a solid liquidity base for years to come. During 2023, we also received our first payments from PREPA in more than four years totaling $22.2 million. In addition, we entered into an agreement to monetize a portion of our outstanding receivable with PREPA, which allowed us to increase liquidity and invest in our business. We used a portion of the proceeds to repay in full our outstanding borrowings under the new revolving credit facility, which currently remains undrawn. We plan to use the remainder of the proceeds to invest back into our business, which may include upgrading an additional hydraulic fracturing fleet with dual fuel capabilities. This incremental dual fuel fleet would result in three of our six fleets having dual fuel capabilities.”

Commenting further, Straehla said, “We exited 2023 with a strong balance sheet and a secure financing structure that positions Mammoth for future growth. We have entered 2024 with an improving line of sight, particularly in our infrastructure and sand divisions, and we will be opportunistic in our well completions business as commodity prices improve and activity increases. I am proud of the hard work and perseverance that our teams have demonstrated across our organization. Our continued commitment to safety and high-quality standards propels our organization forward.”

Well Completion Services
Mammoth’s well completion services division contributed revenue (inclusive of inter-segment revenue) of $16.1 million on 669 stages for the fourth quarter of 2023, compared to $51.4 million on 1,837 stages for the same quarter of 2022 and $20.3 million on 577 stages for the third quarter of 2023. On average, 0.9 of the Company’s fleets were active for the fourth quarter of 2023 compared to an average utilization of 3.4 fleets during the same quarter of 2022 and 1.2 fleets during the third quarter of 2023.

The well completion services division contributed revenues (inclusive of inter-segment revenues) of $131.3 million on 4,220 stages for the full year of 2023, down from $170.7 million on 6,149 stages for 2022. On average, 1.8 of the Company’s fleets were active in 2023 compared to 3.0 fleets in 2022.

Infrastructure Services
Mammoth’s infrastructure services division contributed revenue of $27.2 million for the fourth quarter of 2023 compared to $29.6 million for the same quarter of 2022 and $26.7 million for the third quarter of 2023. Average crew count was 78 crews during the fourth quarter of 2023 compared to 93 crews during the same quarter of 2022 and 81 crews during the third quarter of 2023.

The infrastructure services division contributed revenues of $110.5 million for the full year of 2023 compared to $111.5 million for 2022. Average crew count declined to 83 crews for 2023 compared to 91 crews for 2022.

Natural Sand Proppant Services
Mammoth’s natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $4.5 million for the fourth quarter of 2023 compared to $13.8 million for the same quarter of 2022 and $10.6 million for the third quarter of 2023. In the fourth quarter of 2023, the Company sold approximately 104,000 tons of sand at an average sales price of $23.62 per ton compared to sales of approximately 366,000 tons of sand at an average sales price of $29.80 per ton during the same quarter of 2022. In the third quarter of 2023, sales were approximately 352,000 tons of sand at an average price of $30.18 per ton.

The natural sand proppant division contributed revenues (inclusive of inter-segment revenues) of $39.1 million for the full year of 2023 compared to $51.4 million for 2022. The Company sold 1.2 million tons of sand during 2023, a decrease from 1.4 million tons of sand during 2022. The Company’s average sales price for the sand sold during 2023 was $29.86 per ton, an increase from $27.11 per ton average sales price during 2022.

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Drilling Services
Mammoth’s drilling services division contributed revenue (inclusive of inter-segment revenue) of $0.6 million for the fourth quarter of 2023 compared to $1.9 million for the same quarter of 2022 and $2.3 million for the third quarter of 2023. The drilling services division contributed revenues of $7.1 million for the full year of 2023, compared to $8.4 million for 2022. The decrease in drilling services revenue is primarily attributable to decreased utilization for our directional drilling business.

Other Services
Mammoth’s other services, including aviation, equipment rentals, remote accommodations and equipment manufacturing, contributed revenue (inclusive of inter-segment revenue) of $4.9 million for the fourth quarter of 2023 compared to $6.9 million for the same quarter of 2022 and $6.0 million for the third quarter of 2023. The Company’s other services contributed revenues of $24.1 million for the full year of 2023, compared to $25.2 million for 2022.

Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”) expenses were $8.3 million for the fourth quarter of 2023 compared to $13.0 million for the same quarter of 2022 and $10.4 million for the third quarter of 2023. SG&A expenses were $37.5 million for the full year of 2023 compared to $39.6 million for 2022.
Following is a breakout of SG&A expense (in thousands):
Three Months EndedTwelve Months Ended
December 31,September 30,December 31,
20232022202320232022
Cash expenses:
Compensation and benefits$3,898 $3,932 $3,392 $15,563 $13,729 
Professional services2,559 3,434 4,684 13,448 13,501 
Other(a)
1,808 1,885 2,105 7,693 8,012 
Total cash SG&A expense8,265 9,251 10,181 36,704 35,242 
Non-cash expenses:
Change in provision for expected credit losses(177)3,501 11 (591)3,389 
Stock based compensation219 241 219 1,345 923 
Total non-cash SG&A expense42 3,742 230 754 4,312 
Total SG&A expense$8,307 $12,993 $10,411 $37,458 $39,554 
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 16% for the fourth quarter of 2023 compared to 13% for the same quarter of 2022 and 16% for the third quarter of 2023. SG&A expenses, as a percentage of total revenue, were 12% for the full year of 2023 compared to 11% for 2022.

Interest Expense and Financing Charges, net
Interest expense and financing charges, net were $6.8 million for the fourth quarter of 2023 compared to $3.2 million for the same quarter of 2022 and $2.9 million for the third quarter of 2023. Interest expense and financing charges, net were $16.2 million for the full year of 2023 compared to $11.5 million for 2022.

On December 1, 2023, Cobra entered into an agreement to transfer approximately $54.4 million of its outstanding receivable with PREPA to SPCP Group in exchange for net proceeds of $46.1 million. During the fourth quarter of 2023, the Company incurred financing charges totaling $2.8 million in relation to this transaction. Mammoth expects to recognize a financing charge totaling approximately $5.5 million during the first quarter of 2024 related to the termination of the Assignment Agreement.

3

Liquidity
As of December 31, 2023, Mammoth had cash on hand of $16.6 million. As of December 31, 2023, the Company’s revolving credit facility was undrawn, the borrowing base was $27.0 million and there was $20.7 million of available borrowing capacity under the revolving credit facility, after giving effect to $6.3 million of outstanding letters of credit. As of December 31, 2023, Mammoth had total liquidity of $37.3 million.
As of February 28, 2024, Mammoth had cash on hand of $10.5 million, no outstanding borrowings under its revolving credit facility, and a borrowing base of $23.3 million. As of February 28, 2024, the Company had $17.0 million of available borrowing capacity under its revolving credit facility and total liquidity of $27.5 million. These amounts do not include $9.6 million in cash received on February 29, 2024.

Capital Expenditures
The following table summarizes Mammoth’s capital expenditures by operating division for the periods indicated (in thousands):
Three Months EndedTwelve Months Ended
December 31,September 30,December 31,
20232022202320232022
Well completion services(a)
$3,170 $3,374 $4,651 $17,931 $11,421 
Infrastructure services(b)
373 62 69 716 885 
Natural sand proppant services(c)
223 54 — 223 88 
Drilling services(c)
13 54 98 110 95 
Other(d)
229 121 72 312 401 
Eliminations124 (26)(165)103 (153)
Total capital expenditures$4,132 $3,639 $4,725 $19,395 $12,737 
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.

Mammoth’s full year 2024 capital expenditure budget is approximately $15 million.

Conference Call Information
Mammoth will host a conference call on Friday, March 1, 2024 at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its fourth quarter and full year 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
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TUSK@dennardlascar.com

Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company’s business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, plans for stock repurchases under its stock repurchase program, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for the Company’s existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company’s forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company’s acquisitions and contracts, many of which are beyond the Company’s control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the impact of the war in 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; high 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, including those relating to the contracts awarded to the Company’s subsidiary Cobra by PREPA; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments, including payments with respect to the PREPA account receivable for prior services to PREPA performed by Cobra; the Company’s inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions, 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 Mammoth's revolving credit facility and term loan; 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.

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS

ASSETSDecember 31,December 31,
20232022
CURRENT ASSETS(in thousands)
Cash and cash equivalents$16,556 $17,282 
Restricted Cash7,742 — 
Accounts receivable, net447,155 456,465 
Receivables from related parties, net47 223 
Inventories12,653 8,883 
Prepaid expenses12,181 13,219 
Other current assets591 620 
Total current assets496,925 496,692 
Property, plant and equipment, net113,905 138,066 
Sand reserves58,528 61,830 
Operating lease right-of-use assets9,551 10,656 
Intangible assets, net913 1,782 
Goodwill9,214 11,717 
Deferred income tax asset1,844 — 
Other non-current assets7,599 3,935 
Total assets$698,479 $724,678 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$27,508 $47,391 
Accrued expenses and other current liabilities86,713 52,297 
Accrued expenses and other current liabilities - related parties1,241 — 
Current operating lease liability5,771 5,447 
Current portion of long-term debt— 83,520 
Income taxes payable61,320 48,557 
Total current liabilities182,553 237,212 
Long-term debt from related parties42,809 — 
Deferred income tax liabilities628 471 
Long-term operating lease liability3,534 4,913 
Asset retirement obligation4,140 3,981 
Other long-term liabilities4,715 15,485 
Total liabilities238,379 262,062 
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 47,941,652 and 47,312,270 issued and outstanding at December 31, 2023 and 2022
479 473 
Additional paid in capital539,558 539,138 
Accumulated deficit(76,317)(73,154)
Accumulated other comprehensive loss(3,620)(3,841)
Total equity460,100 462,616 
Total liabilities and equity$698,479 $724,678 


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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


Three Months EndedTwelve Months Ended
December 31,September 30,December 31,
20232022202320232022
(in thousands, except per share amounts)
REVENUE
Services revenue$48,087 $88,963 $54,025 $269,227 $311,968 
Services revenue - related parties139 110 252 980 1,133 
Product revenue4,556 13,836 10,682 39,285 48,985 
Total revenue52,782 102,909 64,959 309,492 362,086 
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $6,931, $11,819, $8,394, $37,356, and $55,546, respectively, for the three months ended December 31, 2023, December 31, 2022, and September 30, 2023 and years ended December 31, 2023 and 2022)
40,972 67,502 45,082 219,876 241,323 
Services cost of revenue - related parties114 135 120 475 541 
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $1,339, $2,014, $2,836, $7,734, and $8,725, respectively, for the three months ended December 31, 2023, December 31, 2022, and September 30, 2023 and years ended December 31, 2023 and 2022)
4,692 9,226 7,615 27,489 36,723 
Selling, general and administrative8,307 12,993 10,411 37,458 39,554 
Depreciation, depletion, amortization and accretion8,271 13,786 11,233 45,110 64,271 
Gains on disposal of assets, net(2,757)(170)(2,450)(6,041)(3,908)
Impairment of goodwill— — 1,810 1,810 — 
Total cost and expenses59,599 103,472 73,821 326,177 378,504 
Operating loss(6,817)(563)(8,862)(16,685)(16,418)
OTHER INCOME (EXPENSE)
Interest expense and financing charges, net(5,570)(3,237)(2,876)(14,955)(11,506)
Interest expense and financing charges, net - related parties(1,241)— — (1,241)— 
Other income, net10,964 10,737 14,088 42,015 40,912 
Total other income 4,153 7,500 11,212 25,819 29,406 
(Loss) income before income taxes(2,664)6,937 2,350 9,134 12,988 
Provision for income taxes3,291 2,165 3,438 12,297 13,607 
Net (loss) income$(5,955)$4,772 $(1,088)$(3,163)$(619)
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment266 (59)(275)221 (910)
Comprehensive (loss) income$(5,689)$4,713 $(1,363)$(2,942)$(1,529)
Net (loss) income per share (basic)$(0.12)$0.10 $(0.02)$(0.07)$(0.01)
Net (loss) income per share (diluted)$(0.12)$0.10 $(0.02)$(0.07)$(0.01)
Weighted average number of shares outstanding (basic)47,942 47,312 47,942 47,777 47,175 
Weighted average number of shares outstanding (diluted) 47,942 47,963 47,942 47,777 47,175 

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended
December 31,
20232022
(in thousands)
Cash flows from operating activities:
Net loss$(3,163)$(619)
Adjustments to reconcile net loss to cash provided by operating activities:
Stock based compensation1,345 923 
Depreciation, depletion, accretion and amortization45,110 64,271 
Amortization of debt origination costs1,288 777 
Change in provision for expected credit losses(591)3,389 
Gains on disposal of assets(6,041)(3,908)
Gains from sales of equipment damaged or lost down-hole(335)(604)
Impairment of goodwill1,810 — 
Gain on sale of business(2,080)— 
Deferred income taxes(1,687)7,700 
Other(693)(117)
Changes in assets and liabilities:
Accounts receivable, net11,099 (52,392)
Receivables from related parties, net176 (135)
Inventories(3,770)(517)
Prepaid expenses and other assets354 (710)
Accounts payable(18,485)6,680 
Accrued expenses and other liabilities(6,949)(15,272)
Accrued expenses and other liabilities - related parties1,241 — 
Income taxes payable12,757 5,800 
Net cash provided by operating activities31,386 15,266 
Cash flows from investing activities:
Purchases of property and equipment(19,395)(12,737)
Business divestitures, net of cash transferred3,276 — 
Proceeds from disposal of property and equipment7,333 10,613 
Net cash used in investing activities(8,786)(2,124)
Cash flows from financing activities:
Borrowings on long-term debt201,091 197,975 
Borrowings on long-term debt - related parties43,874 — 
Repayments of long-term debt(284,610)(199,430)
Proceeds from financing transaction46,120 — 
Proceeds from sale-leaseback transaction— 4,589 
Payments on sale-leaseback transaction(4,958)(4,429)
Principal payments on financing leases and equipment financing notes(12,212)(4,306)
Debt issuance costs(3,972)— 
Other(919)— 
Net cash used in financing activities(15,586)(5,601)
Effect of foreign exchange rate on cash2 (158)
Net change in cash, cash equivalents and restricted cash7,016 7,383 
Cash, cash equivalents and restricted cash at beginning of period17,282 9,899 
Cash, cash equivalents and restricted cash at end of period$24,298 $17,282 
Supplemental disclosure of cash flow information:
Cash paid for interest$12,017 $10,164 
Cash paid for income taxes, net of refunds received$897 $106 
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable$3,339 $4,736 
Right-of-use assets obtained for financing lease liabilities$1,417 $3,058 

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MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Three Months Ended December 31, 2023Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$15,962 $27,229 $4,464 $625 $4,502 $— $52,782 
Intersegment revenues116 — — — 360 (476)— 
Total revenue16,078 27,229 4,464 625 4,862 (476)52,782 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion14,248 22,668 4,419 1,059 3,384 — 45,778 
Intersegment cost of revenues216 119 — — 141 (476)— 
Total cost of revenue14,464 22,787 4,419 1,059 3,525 (476)45,778 
Selling, general and administrative1,365 4,987 973 193 789 — 8,307 
Depreciation, depletion, amortization and accretion3,506 1,023 1,339 1,017 1,386 — 8,271 
(Gains) losses on disposal of assets, net(75)(71)3 (1,577)(1,037)— (2,757)
Operating (loss) income(3,182)(1,497)(2,270)(67)199 — (6,817)
Interest expense and financing charges, net1,975 4,394 119 113 210 — 6,811 
Other expense (income), net1 (10,539)(5)(33)(388)— (10,964)
(Loss) income before income taxes$(5,158)$4,648 $(2,384)$(147)$377 $— $(2,664)
Three Months Ended December 31, 2022Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$51,292 $29,559 $13,817 $1,919 $6,322 $— $102,909 
Intersegment revenues147 — 25 — 602 (774)— 
Total revenue51,439 29,559 13,842 1,919 6,924 (774)102,909 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion36,108 24,387 10,081 1,756 4,531 — 76,863 
Intersegment cost of revenues475 23 — 32 242 (772)— 
Total cost of revenue36,583 24,410 10,081 1,788 4,773 (772)76,863 
Selling, general and administrative2,328 5,091 4,397 184 993 — 12,993 
Depreciation, depletion, amortization and accretion4,140 3,675 2,015 1,390 2,566 — 13,786 
(Gains) losses on disposal of assets, net(68)— 1 — (103)— (170)
Operating income (loss)8,456 (3,617)(2,652)(1,443)(1,305)(2)(563)
Interest expense and financing charges, net617 2,046 201 134 239 — 3,237 
Other expense (income), net1 (10,522)(4)— (212)— (10,737)
Income (loss) before income taxes$7,838 $4,859 $(2,849)$(1,577)$(1,332)$(2)$6,937 
Three months ended September 30, 2023Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$20,166 $26,712 $10,633 $2,336 $5,112 $— $64,959 
Intersegment revenues161 — — — 909 (1,070)— 
Total revenue20,327 26,712 10,633 2,336 6,021 (1,070)64,959 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion17,528 22,042 6,977 2,194 4,076 — 52,817 
Intersegment cost of revenues325 10 — — 735 (1,070)— 
Total cost of revenue17,853 22,052 6,977 2,194 4,811 (1,070)52,817 
Selling, general and administrative1,579 6,495 1,224 215 898 — 10,411 
Depreciation, depletion, amortization and accretion3,971 1,557 2,836 1,114 1,755 — 11,233 
Gains on disposal of assets, net(2,016)(311)— — (123)— (2,450)
Impairment of goodwill— — — — 1,810 — 1,810 
Operating loss (1,060)(3,081)(404)(1,187)(3,130)— (8,862)
Interest expense and financing charges, net774 1,647 117 117 221 — 2,876 
Other income, net— (11,348)(6)— (2,734)— (14,088)
(Loss) income before income taxes$(1,834)$6,620 $(515)$(1,304)$(617)$— $2,350 
9
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Year ended December 31, 2023Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$130,771 $110,537 $39,106 $7,126 $21,952 $— $309,492 
Intersegment revenues517 — 25 — 2,102 (2,644)$— 
Total revenue131,288 110,537 39,131 7,126 24,054 (2,644)309,492 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion107,405 90,478 26,324 7,095 16,538 — 247,840 
Intersegment cost of revenues1,246 149 — 26 1,223 (2,644)$— 
Total cost of revenue108,651 90,627 26,324 7,121 17,761 (2,644)247,840 
Selling, general and administrative7,212 22,078 3,655 746 3,767 — 37,458 
Depreciation, depletion, amortization and accretion16,794 8,390 7,737 4,514 7,675 — 45,110 
Gains on disposal of assets, net(2,091)(510)(13)(1,577)(1,850)— (6,041)
Impairment of goodwill— — — — 1,810 — 1,810 
Operating income (loss)722 (10,048)1,428 (3,678)(5,109)— (16,685)
Interest expense and financing charges, net4,502 9,753 540 489 912 — 16,196 
Other expense (income), net2 (39,252)(18)(33)(2,714)— (42,015)
(Loss) income before income taxes$(3,782)$19,451 $906 $(4,134)$(3,307)$— $9,134 
Year ended December 31, 2022Well CompletionInfrastructureSandDrillingAll OtherEliminationsTotal
Revenue from external customers$169,872 $111,452 $48,916 $8,380 $23,466 $— $362,086 
Intersegment revenues791 — 2,475 — 1,708 (4,974)— 
Total revenue170,663 111,452 51,391 8,380 25,174 (4,974)362,086 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion124,848 91,577 36,783 7,514 17,865 — 278,587 
Intersegment cost of revenues3,894 72 — 85 923 (4,974)— 
Total cost of revenue128,742 91,649 36,783 7,599 18,788 (4,974)278,587 
Selling, general and administrative8,642 19,147 7,171 606 3,988 — 39,554 
Depreciation, depletion, amortization and accretion22,103 16,171 8,732 5,811 11,454 — 64,271 
Gains on disposal of assets, net(615)(795)(89)— (2,409)— (3,908)
Operating income (loss)11,791 (14,720)(1,206)(5,636)(6,647)— (16,418)
Interest expense and financing charges, net1,940 7,390 753 435 988 — 11,506 
Other income, net(343)(40,470)(14)— (85)— (40,912)
Income (loss) before income taxes$10,194 $18,360 $(1,945)$(6,071)$(7,550)$— $12,988 




10
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 EndedYears Ended
December 31,September 30,December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:20232022202320232022
Net (loss) income$(5,955)$4,772 $(1,088)$(3,163)$(619)
Depreciation, depletion, amortization and accretion expense8,271 13,786 11,233 45,110 64,271 
Gains on disposal of assets, net(2,757)(170)(2,450)(6,041)(3,908)
Impairment of goodwill— — 1,810 1,810 — 
Stock based compensation219 241 219 1,345 923 
Interest expense and financing charges, net6,811 3,237 2,876 16,196 11,506 
Other income, net(10,964)(10,737)(14,088)(42,015)(40,912)
Provision for income taxes3,291 2,165 3,438 12,297 13,607 
Interest on trade accounts receivable11,543 10,785 11,443 45,440 41,276 
Adjusted EBITDA$10,459 $24,079 $13,393 $70,979 $86,144 

11
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Well Completion Services
Three Months EndedYears Ended
December 31,September 30,December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:20232022202320232022
Net (loss) income$(5,158)$7,838 $(1,834)$(3,782)$10,194 
Depreciation and amortization expense3,506 4,140 3,971 16,794 22,103 
Gains on disposal of assets, net(75)(68)(2,016)(2,091)(615)
Stock based compensation57 106 64 508 380 
Interest expense and financing charges, net1,975 617 774 4,502 1,940 
Other expense (income), net1 1 — 2 (343)
Adjusted EBITDA$306 $12,634 $959 $15,933 $33,659 

Infrastructure Services
Three Months EndedYears Ended
December 31,September 30,December 31,
Reconciliation of net income to Adjusted EBITDA:20232022202320232022
Net income$1,844 $1,609 $3,239 $8,237 $4,933 
Depreciation and amortization expense1,023 3,675 1,557 8,390 16,171 
Gains on disposal of assets, net(71)— (311)(510)(795)
Stock based compensation103 88 99 538 349 
Interest expense and financing charges, net4,394 2,046 1,647 9,753 7,390 
Other income, net(10,539)(10,522)(11,348)(39,252)(40,470)
Provision for income taxes2,804 3,250 3,381 11,214 13,427 
Interest on trade accounts receivable11,543 10,785 11,443 45,440 41,276 
Adjusted EBITDA$11,101 $10,931 $9,707 $43,810 $42,281 

Natural Sand Proppant Services
Three Months EndedYears Ended
December 31,September 30,December 31,
Reconciliation of net (loss) income to Adjusted EBITDA:20232022202320232022
Net (loss) income$(2,384)$(2,849)$(515)$906 $(1,945)
Depreciation, depletion, amortization and accretion expense1,339 2,015 2,836 7,737 8,732 
Losses (gains) on disposal of assets, net3 1 — (13)(89)
Stock based compensation38 29 37 187 119 
Interest expense and financing charges, net119 201 117 540 753 
Other income, net(5)(4)(6)(18)(14)
Adjusted EBITDA$(890)$(607)$2,469 $9,339 $7,556 

12
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Drilling Services
Three Months EndedYears Ended
December 31,September 30,December 31,
Reconciliation of net loss to Adjusted EBITDA:20232022202320232022
Net loss$(147)$(1,577)$(1,304)$(4,134)$(6,071)
Depreciation expense1,017 1,390 1,114 4,514 5,811 
Gains on disposal of assets, net(1,577)— — (1,577)— 
Stock based compensation5 3 5 23 11 
Interest expense and financing charges, net113 134 117 489 435 
Other income, net(33)— — (33)— 
Adjusted EBITDA$(622)$(50)$(68)$(718)$186 


Other Services(a)
Three Months EndedYears Ended
December 31,September 30,December 31,
Reconciliation of net loss to Adjusted EBITDA:20232022202320232022
Net loss$(110)$(249)$(674)$(4,390)$(7,730)
Depreciation, amortization and accretion expense1,386 2,566 1,755 7,675 11,454 
Gains on disposal of assets, net(1,037)(103)(123)(1,850)(2,409)
Impairment of goodwill— — 1,810 1,810 — 
Stock based compensation16 15 14 89 64 
Interest expense and financing charges, net210 239 221 912 988 
Other income, net(388)(212)(2,734)(2,714)(85)
Provision (benefit) for income taxes487 (1,085)57 1,083 180 
Adjusted EBITDA$564 $1,171 $326 $2,615 $2,462 
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.


13
MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted Net (Loss) Income and Adjusted (Loss) Earnings per Share

Adjusted net (loss) income and adjusted basic and diluted (loss) earnings per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company’s operating and financial performance. Mammoth defines adjusted net (loss) income as net (loss) income before impairment of goodwill. Mammoth defines adjusted basic and diluted (loss) earnings per share as (loss) earnings per share before the effects of impairment of goodwill and impairment of other long-lived assets. 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) income and adjusted (loss) earnings per share should not be considered in isolation or as a substitute for net (loss) income and (loss) earnings 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) income and adjusted (loss) earnings per share to the GAAP financial measures of net (loss) income and (loss) earnings per share for the periods specified.

Three Months EndedYears Ended
December 31,September 30,December 31,
20232022202320232022
(in thousands, except per share amounts)
Net (loss) income, as reported$(5,955)$4,772 $(1,088)$(3,163)$(619)
Impairment of goodwill— — — 1,810 — 
Adjusted net (loss) income$(5,955)$4,772 $(1,088)$(1,353)$(619)
Basic (loss) earnings per share, as reported$(0.12)$0.10 $(0.02)$(0.07)$(0.01)
Impairment of goodwill— — — 0.04 — 
Adjusted basic (loss) earnings per share$(0.12)$0.10 $(0.02)$(0.03)$(0.01)
Diluted (loss) earnings per share, as reported$(0.12)$0.10 $(0.02)$(0.07)$(0.01)
Impairment of goodwill— — — 0.04 — 
Adjusted diluted (loss) earnings per share$(0.12)$0.10 $(0.02)$(0.03)$(0.01)
14
v3.24.0.1
Cover
Mar. 01, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Mar. 01, 2024
Entity Registrant Name Mammoth Energy Services, Inc.
Entity File Number 001-37917
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 32-0498321
Entity Address, Address Line One 14201 Caliber Drive,
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Oklahoma City,
Entity Address, State or Province OK
City Area Code (405)
Local Phone Number 608-6007
Entity Address, Postal Zip Code 73134
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol TUSK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001679268
Amendment Flag false
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