Content Detail

• Content META

  Title	Mammoth Energy Services, Inc. Announces Third Quarter 2024 Operational and Financial Results
  ID	4426974
  External ID	110000056
  Author
  Published Date	Nov. 1, 2024, 6 a.m.
  Summary	Mammoth Energy Services, Inc. Announces Third Quarter 2024 Operational and Financial Results PR Newswire Fri, Nov 1, 2024, 7:00 AM 14 min read In This Article: TUSK +8.05% OKLAHOMA CITY , Nov. 1, 2024
  Tags	None
  URL	No URL
  Sentiment	Negative: 0.07186    Neutral: 0.02713    Positive: 0.90101
  Relevance	0.03810

• Content Details

  Content ID	2644449
  Key	2e386c5b-2515-4e9c-82ff-232defd1c21c
  Content	Mammoth Energy Services, Inc. Announces Third Quarter 2024 Operational and Financial Results PR Newswire Fri, Nov 1, 2024, 7:00 AM 14 min read In This Article: TUSK +8.05% 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. Story Continues 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 issued and outstanding at September 30, 2024 and December 31, 2023 481 479 Additional paid in capital 540,213 539,558 Accumulated deficit (268,163) (76,317) Accumulated other comprehensive loss (3,853) (3,620) Total equity 268,678 460,100 Total liabilities and equity $                   442,978 $                   698,479 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (in thousands, except per share amounts) REVENUE Services revenue $          34,069 $          54,025 $        119,653 $        221,140 Services revenue - related parties 1,037 252 1,171 841 Product revenue 4,909 10,682 13,908 34,729 Total revenue 40,015 64,959 134,732 256,710 COST AND EXPENSES Services cost of revenue (exclusive of depreciation, depletion, amortization and 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) 34,468 45,082 107,914 178,905 Services cost of revenue - related parties 118 120 355 360 Product cost of revenue (exclusive of depreciation, depletion, amortization and 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) 3,386 7,615 14,130 22,796 Selling, general and administrative 8,702 10,411 114,961 29,151 Depreciation, depletion, amortization and accretion 6,184 11,233 19,256 36,839 Gains on disposal of assets, net (293) (2,450) (2,496) (3,284) Impairment of goodwill — 1,810 — 1,810 Total cost and expenses 52,565 73,821 254,120 266,577 Operating loss (12,550) (8,862) (119,388) (9,867) OTHER INCOME (EXPENSE) Interest expense and financing charges, net (8,088) (2,876) (15,730) (9,385) Interest expense and financing charges, net - related parties (1,642) — (4,670) — Other (expense) income, net (1,122) 14,088 (64,658) 31,051 Total other (expense) income (10,852) 11,212 (85,058) 21,666 (Loss) income before income taxes (23,402) 2,350 (204,446) 11,799 Provision (benefit) for income taxes 640 3,438 (12,600) 9,006 Net (loss) income $        (24,042) $          (1,088) $      (191,846) $            2,793 OTHER COMPREHENSIVE (LOSS) INCOME Foreign currency translation adjustment 125 (275) (233) (45) Comprehensive (loss) income $        (23,917) $          (1,363) $      (192,079) $            2,748 Net (loss) income per share (basic) $            (0.50) $            (0.02) $            (3.99) $             0.06 Net (loss) income per share (diluted) $            (0.50) $            (0.02) $            (3.99) $             0.06 Weighted average number of shares outstanding (basic) 48,127 47,942 48,044 47,721 Weighted average number of shares outstanding (diluted) 48,127 47,942 48,044 47,973 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2024 2023 (in thousands) Cash flows from operating activities: Net (loss) income $                      (191,846) $                           2,793 Adjustments to reconcile net (loss) income to cash provided by operating activities: Stock based compensation 657 1,127 Depreciation, depletion, accretion and amortization 19,256 36,839 Amortization of debt origination costs 1,076 565 Change in provision for expected credit losses 171,108 (414) Gains on disposal of assets (2,496) (3,284) Gains from sales of equipment damaged or lost down-hole (160) (335) Impairment of goodwill — 1,810 Gain on sale of business — (2,080) Deferred income taxes 3,488 (70) Other 724 (273) Changes in assets and liabilities: Accounts receivable, net 43,107 1,445 Inventories (845) (2,896) Prepaid expenses and other assets 9,252 8,990 Accounts payable 1,938 (7,537) Accrued expenses and other liabilities (3,796) (19,679) Accrued expenses and other liabilities - related parties 4,647 — Income taxes payable (16,809) 7,950 Net cash provided by operating activities 39,301 24,951 Cash flows from investing activities: Purchases of property and equipment (10,967) (15,265) Business divestitures, net of cash transferred — 3,276 Proceeds from disposal of property and equipment 5,047 4,304 Net cash used in investing activities (5,920) (7,685) Cash flows from financing activities: Borrowings on long-term debt — 168,800 Repayments of long-term debt — (183,291) Payments on financing transaction (46,837) — Payments on sale-leaseback transaction (3,206) (3,711) Principal payments on financing leases and equipment financing notes (1,403) (4,872) Debt issuance costs (37) — Other — (919) Net cash used in financing activities (51,483) (23,993) Effect of foreign exchange rate on cash (31) (28) Net change in cash, cash equivalents and restricted cash (18,133) (6,755) Cash, cash equivalents and restricted cash at beginning of period 24,298 17,282 Cash, cash equivalents and restricted cash at end of period $                           6,165 $                         10,527 Supplemental disclosure of cash flow information: Cash paid for interest $                           2,096 $                           8,951 Cash paid for income taxes, net of refunds received $                              716 $                              788 Supplemental disclosure of non-cash transactions: Interest paid in kind - related parties $                           5,888 $                               — Purchases of property and equipment included in accounts payable $                           3,964 $                           4,197 Right-of-use assets obtained for financing lease liabilities $                           2,971 $                              507 MAMMOTH ENERGY SERVICES, INC. SEGMENT INCOME STATEMENTS (in thousands) Three Months Ended September 30, 2024 Well Completion Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $            2,124 $           26,043 $            4,909 $            1,557 $            5,382 $                 — $           40,015 Intersegment revenues 108 — — — 1,641 (1,749) — Total revenue 2,232 26,043 4,909 1,557 7,023 (1,749) 40,015 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 7,099 22,539 3,110 1,478 3,746 — 37,972 Intersegment cost of revenues 185 — — 1 1,565 (1,751) — Total cost of revenue 7,284 22,539 3,110 1,479 5,311 (1,751) 37,972 Selling, general and administrative 887 ... 5,557 1,211 230 817 — 8,702 Depreciation, depletion, amortization and accretion 2,546 626 1,688 587 737 — 6,184 Gains on disposal of assets, net (60) (41) — — (192) — (293) Operating (loss) income (8,425) (2,638) (1,100) (739) 350 2 (12,550) Interest expense and financing charges, net 533 8,742 135 127 193 — 9,730 Other expense (income), net 1 1,491 3 — (373) — 1,122 (Loss) income before income taxes $           (8,959) $         (12,871) $           (1,238) $             (866) $               530 $                   2 $         (23,402) Three Months Ended September 30, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $           20,166 $           26,712 $           10,633 $            2,337 $            5,111 $                 — $           64,959 Intersegment revenues 161 — — — 909 (1,070) — Total revenue 20,327 26,712 10,633 2,337 6,020 (1,070) 64,959 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 17,528 22,042 6,977 2,194 4,076 — 52,817 Intersegment cost of revenues 325 10 — — 735 (1,070) — Total cost of revenue 17,853 22,052 6,977 2,194 4,811 (1,070) 52,817 Selling, general and administrative 1,579 6,495 1,224 215 898 — 10,411 Depreciation, depletion, amortization and accretion 3,971 1,557 2,836 1,114 1,755 — 11,233 Gains on disposal of assets, net (2,016) (311) — — (123) — (2,450) Impairment of goodwill — — — — 1,810 — 1,810 Operating loss (1,060) (3,081) (404) (1,186) (3,131) — (8,862) Interest expense and financing charges, net 774 1,647 117 117 221 — 2,876 Other income, net — (11,348) (6) — (2,734) — (14,088) (Loss) income before income taxes $           (1,834) $            6,620 $             (515) $           (1,303) $             (618) $                 — $            2,350 Nine Months ended September 30, 2024 Well Completion Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $          20,218 $          82,514 $          13,908 $            2,804 $          15,288 $                — $        134,732 Intersegment revenues 331 — 27 — 5,005 (5,363) $                — Total revenue 20,549 82,514 13,935 2,804 20,293 (5,363) 134,732 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 25,533 68,704 13,540 3,683 10,939 — 122,399 Intersegment cost of revenues 638 26 — 4 4,695 (5,363) $                — Total cost of revenue 26,171 68,730 13,540 3,687 15,634 (5,363) 122,399 Selling, general and administrative 3,156 105,625 3,185 618 2,377 — 114,961 Depreciation, depletion, amortization and accretion 8,501 1,972 4,105 2,075 2,603 — 19,256 Losses (gains) on disposal of assets, net 85 (984) (110) — (1,487) — (2,496) Operating (loss) income (17,364) (92,829) (6,785) (3,576) 1,166 — (119,388) Interest expense and financing charges, net 1,624 17,417 408 377 574 — 20,400 Other expense, net 2 63,919 2 — 735 — 64,658 Loss before income taxes $        (18,990) $      (174,165) $          (7,195) $          (3,953) $             (143) $                — $      (204,446) Nine Months ended September 30, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $        114,810 $          83,308 $          34,643 $            6,501 $          17,448 $                — $        256,710 Intersegment revenues 400 — 25 — 1,743 (2,168) — Total revenue 115,210 83,308 34,668 6,501 19,191 (2,168) 256,710 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 93,158 67,810 21,905 6,035 13,153 — 202,061 Intersegment cost of revenues 1,029 29 — 26 1,084 (2,168) — Total cost of revenue 94,187 67,839 21,905 6,061 14,237 (2,168) 202,061 Selling, general and administrative 5,847 17,091 2,682 554 2,977 — 29,151 Depreciation, depletion, amortization and accretion 13,288 7,366 6,397 3,497 6,291 — 36,839 Gains on disposal of assets, net (2,016) (439) (16) — (813) — (3,284) Impairment of goodwill — — — — 1,810 — 1,810 Operating income (loss) 3,904 (8,549) 3,700 (3,611) (5,311) — (9,867) Interest expense and financing charges, net 2,527 5,361 422 376 699 — 9,385 Other expense (income), net 1 (28,713) (12) — (2,327) — (31,051) Income (loss) before income taxes $            1,376 $          14,803 $            3,290 $          (3,987) $          (3,683) $                — $          11,799 MAMMOTH ENERGY SERVICES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Adjusted EBITDA Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net (loss) income before depreciation, depletion, amortization and accretion expense, gains on disposal of assets, net, impairment of goodwill, stock based compensation, interest expense and financing charges, net, other (income) expense, net (which is comprised of interest on trade accounts receivable and certain legal expenses) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net (loss) income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net (loss) income or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth's operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements. The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net (loss) income on a consolidated basis and for each of the Company's segments (in thousands): Consolidated Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net (loss) income to Adjusted EBITDA: 2024 2023 2024 2023 Net (loss) income $      (24,042) $        (1,088) $    (191,846) $          2,793 Depreciation, depletion, amortization and accretion expense 6,184 11,233 19,256 36,839 Gains on disposal of assets, net (293) (2,450) (2,496) (3,284) Impairment of goodwill — 1,810 — 1,810 Stock based compensation 219 219 657 1,127 Interest expense and financing charges, net 9,730 2,876 20,400 9,385 Other expense (income), net 1,122 (14,088) 64,658 (31,051) Provision (benefit) for income taxes 640 3,438 (12,600) 9,006 Interest on trade accounts receivable — 11,443 (60,686) 33,897 Adjusted EBITDA $        (6,440) $        13,393 $    (162,657) $        60,522 Well Completion Services Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net (loss) income to Adjusted EBITDA: 2024 2023 2024 2023 Net (loss) income $     (8,959) $        (1,834) $      (18,990) $          1,376 Depreciation and amortization expense 2,546 3,971 8,501 13,288 (Gains) losses on disposal of assets, net (60) (2,016) 85 (2,016) Stock based compensation 33 64 122 451 Interest expense and financing charges, net 533 774 1,624 2,527 Other expense, net 1 — 2 1 Adjusted EBITDA $     (5,906) $              959 $        (8,656) $       15,627 Infrastructure Services Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net (loss) income to Adjusted EBITDA: 2024 2023 2024 2023 Net (loss) income $    (13,500) $          3,239 $    (158,767) $          6,392 Depreciation and amortization expense 626 1,557 1,972 7,366 Gains on disposal of assets, net (41) (311) (984) (439) Stock based compensation 124 99 364 436 Interest expense and financing charges, net 8,742 1,647 17,417 5,361 Other expense (income), net 1,491 (11,348) 63,919 (28,713) Provision (benefit) for income taxes 629 3,381 (15,398) 8,411 Interest on trade accounts receivable — 11,443 (60,686) 33,897 Adjusted EBITDA $      (1,929) $          9,707 $    (152,163) $        32,711 Natural Sand Proppant Services Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net (loss) income to Adjusted EBITDA: 2024 2023 2024 2023 Net (loss) income $        (1,238) $           (515) $        (7,195) $          3,290 Depreciation, depletion, amortization and accretion expense 1,688 2,836 4,105 6,397 Gains on disposal of assets, net — — (110) (16) Stock based compensation 39 37 109 149 Interest expense and financing charges, net 135 117 408 422 Other expense (income), net 3 (6) 2 (12) Adjusted EBITDA $             627 $          2,469 $        (2,681) $       10,230 Drilling Services Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net loss to Adjusted EBITDA: 2024 2023 2024 2023 Net loss $           (866) $        (1,303) $        (3,953) $        (3,987) Depreciation expense 587 1,114 2,075 3,497 Stock based compensation 5 5 15 18 Interest expense and financing charges, net 127 117 377 376 Adjusted EBITDA $           (147) $             (67) $        (1,486) $             (96) Other Services (a) Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of net income (loss) to Adjusted EBITDA: 2024 2023 2024 2023 Net income (loss) $             519 $           (675) $        (2,941) $        (4,278) Depreciation, amortization and accretion expense 737 1,755 2,603 6,291 Gains on disposal of assets, net (192) (123) (1,487) (813) Impairment of goodwill — 1,810 — 1,810 Stock based compensation 18 14 47 73 Interest expense and financing charges, net 193 221 574 699 Other (income) expense, net (373) (2,734) 735 (2,327) Provision for income taxes 11 57 2,798 595 Adjusted EBITDA $             913 $             325 $          2,329 $          2,050 a. Includes results for Mammoth's aviation, equipment rentals, remote accommodations and equipment manufacturing and corporate related activities. The Company's corporate related activities do not generate revenue. Cision View original content: https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-third-quarter-2024-operational-and-financial-results-302293680.html SOURCE Mammoth Energy Services, Inc. View Comments Terms and Privacy Policy Your Privacy Choices Recommended Stories
  Content Reference URL	None

• Publisher

  None

• Data Source

  Data Source Name	Yahoo Finance News
  Data Source Type	news
  Data Source URL	https://finance.yahoo.com/
  Description	Yahoo! Finance is a media property that is part of the Yahoo! network. It provides financial news, data and commentary including stock quotes, press releases, financial reports, and original content. It also offers some online tools for personal finance management.
  Weight	10