tusk-20210730
0001679268FALSE00016792682021-07-302021-07-30



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): July 30, 2021
 
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 July 30, 2021, Mammoth Energy Services, Inc. (the “Company”) issued a press release announcing its financial and operational results for the second quarter ended June 30, 2021. 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 July 30, 2021, 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.

104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.





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:July 30, 2021By:/s/ Mark Layton
Mark Layton
Chief Financial Officer and Secretary





Document

Exhibit 99.1

https://cdn.kscope.io/c098ec3076ff6c89efbcd6e9ffb0e452-imagea.jpg


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


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

Financial Overview for the Second Quarter 2021:

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

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

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

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

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

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

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

Well Completion Services
Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $17.4 million on 520 stages for the second quarter of 2021, as compared to $16.5 million on 658 stages for the same quarter last year and $23.0 million on 445 stages for the first quarter of 2021. On average, 0.9 of the Company's



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

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

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

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

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

Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”) expenses were $12.0 million for the second quarter of 2021, as compared to $13.7 million for the same quarter last year and $20.8 million for the first quarter of 2021.
Following is a breakout of SG&A expense (in thousands):
Three Months EndedSix Months Ended
June 30,March 31,June 30,
20212020202120212020
Cash expenses:
Compensation and benefits$3,333 $3,720 $4,694 $8,027 $7,690 
Professional services5,806 6,147 3,405 9,211 9,684 
Other(a)
2,464 2,100 2,342 4,806 4,409 
Total cash SG&A expense11,603 11,967 10,441 22,044 21,783 
Non-cash expenses:
Bad debt provision76 1,624 10,125 10,201 1,679 
Stock based compensation304 135 282 586 1,035 
Total non-cash SG&A expense380 1,759 10,407 10,787 2,714 
Total SG&A expense$11,983 $13,726 $20,848 $32,831 $24,497 
a.    Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.

SG&A expenses, as a percentage of total revenue, were 25% for the second quarter of 2021, as compared to 23% for the same quarter last year and 31% for the first quarter of 2021. The bad debt provision for the first quarter of
2


2021 includes $10.0 million related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

Liquidity
As of June 30, 2021, Mammoth had cash on hand of $11.0 million, outstanding borrowings under its revolving credit facility of $60.2 million and $51.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit. As of June 30, 2021, Mammoth had total liquidity of $62.1 million.
As of July 27, 2021, Mammoth had cash on hand of $13.7 million, outstanding borrowings under its revolving credit facility of $61.4 million and $49.8 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit.

Capital Expenditures
The following table summarizes Mammoth's capital expenditures by operating division for the periods indicated (in thousands):
Three Months EndedSix Months Ended
June 30,March 31,June 30,
20212020202120212020
Infrastructure services(a)
$104 $43 $189 $293 $43 
Well completion services(b)
388 2,450 412 800 3,054 
Natural sand proppant services(c)
354 408 413 875 
Drilling services(d)
67 37 38 67 
Other(e)
63 10 102 165 385 
Total capital expenditures$561 $2,924 $1,148 $1,709 $4,424 
a.     Capital expenditures primarily for tooling and other equipment for the periods presented.
b.     Capital expenditures primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and water transfer equipment for the periods presented.
c.    Capital expenditures primarily for maintenance for the periods presented.
d.    Capital expenditures primarily for maintenance for the periods presented.
e.    Capital expenditures primarily for equipment for the Company's rental businesses for the periods presented.

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

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

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

Rick Black / Ken Dennard
Dennard Lascar Investor Relations
3


TUSK@dennardlascar.com

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

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

4

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS

ASSETSJune 30,December 31,
20212020
CURRENT ASSETS(in thousands)
Cash and cash equivalents$11,038 $14,822 
Short-term investment1,757 1,750 
Accounts receivable, net413,245 393,112 
Receivables from related parties, net80 28,461 
Inventories10,212 12,020 
Prepaid expenses7,936 13,825 
Other current assets708 758 
Other current assets - related parties— — 
Total current assets444,976 464,748 
Property, plant and equipment, net210,397 251,262 
Sand reserves65,491 65,876 
Operating lease right-of-use assets15,777 20,179 
Intangible assets, net - customer relationships321 408 
Intangible assets, net - trade names3,946 4,366 
Goodwill12,608 12,608 
Deferred income tax asset8,094 — 
Other non-current assets4,329 5,115 
Total assets$765,939 $824,562 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$39,505 $40,316 
Payables to related parties
Accrued expenses and other current liabilities63,375 44,408 
Current operating lease liability7,255 8,618 
Current portion of long-term debt1,430 1,165 
Income taxes payable35,198 34,088 
Total current liabilities146,767 128,598 
Long-term debt, net of current portion62,811 81,338 
Deferred income tax liabilities12,041 24,741 
Long-term operating lease liability8,293 11,377 
Asset retirement obligation3,666 4,746 
Other liabilities15,159 10,435 
Total liabilities248,737 261,235 
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 46,680,731 and 45,769,283 issued and outstanding at June 30, 2021 and December 31, 2020467 458 
Additional paid in capital537,728 537,039 
Retained earnings(18,335)28,895 
Accumulated other comprehensive loss(2,658)(3,065)
Total equity517,202 563,327 
Total liabilities and equity$765,939 $824,562 


5

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


Three Months EndedSix Months Ended
June 30,March 31,June 30,
20212020202120212020
(in thousands, except per share amounts)
REVENUE
Services revenue$40,867 $44,878 $42,691 $83,558 $113,723 
Services revenue - related parties90 8,650 14,986 15,076 26,663 
Product revenue6,483 4,706 6,982 13,465 13,356 
Product revenue - related parties— 1,875 2,145 2,145 3,750 
Total revenue47,440 60,109 66,804 114,244 157,492 
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $17,861, $21,750, $18,989, $36,850 and $45,305, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)43,103 42,255 42,062 85,165 112,952 
Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $0, $0, $0, $0 and $0, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)107 97 109 216 198 
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,384, $2,346, $2,137, $4,521 and $4,654, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)7,165 6,401 5,909 13,074 17,509 
Selling, general and administrative11,791 13,528 20,655 32,446 24,084 
Selling, general and administrative - related parties192 198 193 385 413 
Depreciation, depletion, amortization and accretion20,265 24,116 21,146 41,411 49,998 
Impairment of goodwill— — — — 54,973 
Impairment of other long-lived assets— — — — 12,897 
Total cost and expenses82,623 86,595 90,074 172,697 273,024 
Operating loss(35,183)(26,486)(23,270)(58,453)(115,532)
OTHER INCOME (EXPENSE)
Interest expense, net(1,169)(1,471)(1,225)(2,394)(3,109)
Other (expense) income, net(14,998)8,137 9,947 (5,051)15,546 
Other (expense) income, net - related parties— 1,133 (515)(515)1,133 
Total other (expense) income(16,167)7,799 8,207 (7,960)13,570 
Loss before income taxes(51,350)(18,687)(15,063)(66,413)(101,962)
Benefit for income taxes(16,560)(3,482)(2,623)(19,183)(2,786)
Net loss$(34,790)$(15,205)$(12,440)$(47,230)$(99,176)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of tax of $63, ($150), ($42), $680 and $211, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020239 668 168 407 (746)
Comprehensive loss$(34,551)$(14,537)$(12,272)$(46,823)$(99,922)
Net loss per share (basic)$(0.75)$(0.33)$(0.27)$(1.02)$(2.18)
Net loss per share (diluted)$(0.75)$(0.33)$(0.27)$(1.02)$(2.18)
Weighted average number of shares outstanding (basic)46,402 45,727 45,932 46,168 45,521 
Weighted average number of shares outstanding (diluted) 46,402 45,727 45,932 46,168 45,521 

6

MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended
June 30,
20212020
(in thousands)
Cash flows from operating activities:
Net loss$(47,230)$(99,176)
Adjustments to reconcile net loss to cash provided by operating activities:
Stock based compensation698 1,246 
Depreciation, depletion, accretion and amortization41,411 49,998 
Amortization of coil tubing strings— 359 
Amortization of debt origination costs296 577 
Bad debt expense10,201 1,679 
Gain on disposal of property and equipment(1,599)(1,451)
Impairment of goodwill— 54,973 
Impairment of other long-lived assets— 12,897 
Deferred income taxes(20,898)931 
Other548 623 
Changes in assets and liabilities:
Accounts receivable, net(30,386)7,782 
Receivables from related parties28,381 (19,793)
Inventories1,808 4,651 
Prepaid expenses and other assets5,923 6,079 
Accounts payable(1,546)(7,514)
Payables to related parties(512)
Accrued expenses and other liabilities15,756 (2,818)
Income taxes payable1,107 (3,697)
Net cash provided by operating activities4,471 6,834 
Cash flows from investing activities:
Purchases of property and equipment(1,709)(4,348)
Purchases of property and equipment from related parties— (76)
Proceeds from disposal of property and equipment4,632 2,544 
Net cash provided by (used in) investing activities2,923 (1,880)
Cash flows from financing activities:
Borrowings on long-term debt12,000 22,800 
Repayments of long-term debt(30,269)(13,550)
Proceeds from sale leaseback transaction9,473 — 
Payments on sale leaseback transaction(1,278)— 
Principal payments on financing leases and equipment financing notes(1,140)(914)
Debt issuance costs— (1,000)
Net cash (used in) provided by financing activities(11,214)7,336 
Effect of foreign exchange rate on cash36 (137)
Net change in cash and cash equivalents(3,784)12,153 
Cash and cash equivalents at beginning of period14,822 5,872 
Cash and cash equivalents at end of period$11,038 $18,025 
Supplemental disclosure of cash flow information:
Cash paid for interest$2,134 $2,683 
Cash paid (recovered) for income taxes$964 $(6)
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable$2,035 $2,780 

7

MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
Three months ended June 30, 2021Infrastructure
Well Completion(a)
SandDrillingAll OtherEliminationsTotal
Revenue from external customers$17,220 $17,337 $6,886 $1,130 $4,867 $— $47,440 
Intersegment revenues— 36 — 17 682 (735)— 
Total revenue17,220 17,373 6,886 1,147 5,549 (735)47,440 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion19,881 16,396 7,400 1,568 5,130 — 50,375 
Intersegment cost of revenues50 666 — — 19 (735)— 
Total cost of revenue19,931 17,062 7,400 1,568 5,149 (735)50,375 
Selling, general and administrative7,383 1,893 991 395 1,321 — 11,983 
Depreciation, depletion, amortization and accretion5,899 6,447 2,387 2,079 3,453 — 20,265 
Operating loss(15,993)(8,029)(3,892)(2,895)(4,374)— (35,183)
Interest expense, net656 219 90 58 146 — 1,169 
Other expense (income), net 15,904 (53)(127)(727)— 14,998 
Loss before income taxes$(32,553)$(8,249)$(3,929)$(2,826)$(3,793)$— $(51,350)
Three months ended June 30, 2020Infrastructure
Well Completion(a)
SandDrillingAll OtherEliminationsTotal
Revenue from external customers$30,249 $16,125 $6,237 $1,250 $6,248 $— $60,109 
Intersegment revenues— 419 — — 584 (1,003)— 
Total revenue30,249 16,544 6,237 1,250 6,832 (1,003)60,109 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion25,217 8,375 6,394 2,012 6,755 — 48,753 
Intersegment cost of revenues27 333 — 21 622 (1,003)— 
Total cost of revenue25,244 8,708 6,394 2,033 7,377 (1,003)48,753 
Selling, general and administrative7,830 1,456 1,378 1,331 1,731 — 13,726 
Depreciation, depletion, amortization and accretion7,500 7,675 2,358 2,671 3,912 — 24,116 
Operating loss(10,325)(1,295)(3,893)(4,785)(6,188)— (26,486)
Interest expense, net716 329 69 132 225 — 1,471 
Other (income) expense, net(8,004)(1,179)(2)(298)213 — (9,270)
Loss before income taxes$(3,037)$(445)$(3,960)$(4,619)$(6,626)$— $(18,687)
Three months ended March 31, 2021Infrastructure
Well Completion(a)
SandDrillingAll OtherEliminationsTotal
Revenue from external customers$29,257 $22,901 $8,705 $919 $5,022 $— $66,804 
Intersegment revenues— 54 — 14 640 (708)— 
Total revenue29,257 22,955 8,705 933 5,662 (708)66,804 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion26,458 9,003 5,862 1,604 5,153 — 48,080 
Intersegment cost of revenues45 394 — — 269 (708)— 
Total cost of revenue26,503 9,397 5,862 1,604 5,422 (708)48,080 
Selling, general and administrative6,253 10,612 2,049 422 1,512 — 20,848 
Depreciation, depletion, amortization and accretion6,667 6,683 2,140 2,165 3,491 — 21,146 
Operating loss(10,166)(3,737)(1,346)(3,258)(4,763)— (23,270)
Interest expense, net661 254 93 63 154 — 1,225 
Other (income) expense, net(9,310)439 (794)(9)242 — (9,432)
Loss before income taxes$(1,517)$(4,430)$(645)$(3,312)$(5,159)$— $(15,063)

8

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

Six months ended June 30, 2020Infrastructure
Well Completion(a)
SandDrillingAll OtherEliminationsTotal
Revenue from external customers$55,724 $58,811 $16,391 $5,973 $20,593 $— $157,492 
Intersegment revenues— 1,052 95 1,360 (2,512)— 
Total revenue55,724 59,863 16,486 5,978 21,953 (2,512)157,492 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion51,897 33,943 17,691 7,637 19,491 — 130,659 
Intersegment cost of revenues35 961 — 152 1,364 (2,512)— 
Total cost of revenue51,932 34,904 17,691 7,789 20,855 (2,512)130,659 
Selling, general and administrative11,774 3,627 2,680 2,394 4,022 — 24,497 
Depreciation, depletion, amortization and accretion15,122 16,157 4,681 5,520 8,518 — 49,998 
Impairment of goodwill— 53,406 — — 1,567 — 54,973 
Impairment of other long-lived assets— 4,203 — 326 8,368 — 12,897 
Operating loss(23,104)(52,434)(8,566)(10,051)(21,377)— (115,532)
Interest expense, net1,467 605 147 389 501 — 3,109 
Other (income) expense, net (15,707)(1,288)(39)(271)626 — (16,679)
Loss before income taxes$(8,864)$(51,751)$(8,674)$(10,169)$(22,504)$— $(101,962)
a.Mammoth changed the name of its pressure pumping segment to the well completion segment during the fourth quarter of 2020.
9

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

Adjusted EBITDA

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

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

Consolidated
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of Adjusted EBITDA to net loss:20212020202120212020
Net loss$(34,790)$(15,205)$(12,440)$(47,230)$(99,176)
Depreciation, depletion, amortization and accretion expense20,265 24,116 21,146 41,411 49,998 
Impairment of goodwill— — — — 54,973 
Impairment of other long-lived assets— — — — 12,897 
Public offering costs77 — — 77 — 
Stock based compensation354 196 344 698 1,246 
Interest expense, net1,169 1,471 1,225 2,394 3,109 
Other expense (income), net14,998 (9,270)(9,432)5,566 (16,679)
Benefit for income taxes(16,560)(3,482)(2,623)(19,183)(2,786)
Interest on trade accounts receivable9,017 9,071 8,158 17,175 16,767 
Adjusted EBITDA$(5,470)$6,897 $6,378 $908 $20,349 

10

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

Infrastructure Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of Adjusted EBITDA to net loss:20212020202120212020
Net loss$(23,715)$(3,985)$(3,945)$(27,658)$(12,303)
Depreciation and amortization expense5,899 7,500 6,667 12,566 15,122 
Public offering costs43 — — 43 — 
Stock based compensation158 44 135 293 286 
Interest expense656 716 661 1,317 1,467 
Other expense (income), net15,904 (8,004)(9,310)6,593 (15,707)
(Benefit) provision for income taxes(8,838)949 2,428 (6,410)3,440 
Interest on trade accounts receivable9,017 7,930 8,673 17,690 15,626 
Adjusted EBITDA$(876)$5,150 $5,309 $4,434 $7,931 

Well Completion Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of Adjusted EBITDA to net loss:20212020202120212020
Net loss$(8,249)$(446)$(4,430)$(12,680)$(51,750)
Depreciation and amortization expense6,447 7,675 6,683 13,130 16,157 
Impairment of goodwill— — — — 53,406 
Impairment of other long-lived assets— — — — 4,203 
Public offering costs12 — — 12 — 
Stock based compensation75 53 83 158 381 
Interest expense219 329 254 473 605 
Other expense (income), net(1,179)439 440 (1,288)
Interest on trade accounts receivable— 1,133 (514)(514)1,133 
Adjusted EBITDA$(1,495)$7,565 $2,515 $1,019 $22,847 

Natural Sand Proppant Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of Adjusted EBITDA to net loss:20212020202120212020
Net loss$(3,929)$(3,960)$(645)$(4,573)$(8,676)
Depreciation, depletion, amortization and accretion expense2,387 2,358 2,140 4,527 4,681 
Public offering costs12 — 12 — 
Stock based compensation65 46 64 130 278 
Interest expense90 69 93 183 147 
Other income, net(53)(2)(794)(847)(39)
Interest on trade accounts receivable— — (1)(1)— 
Adjusted EBITDA$(1,428)$(1,489)$857 $(569)$(3,609)

11

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

Drilling Services
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of Adjusted EBITDA to net loss:20212020202120212020
Net loss$(2,826)$(4,620)$(3,312)$(6,139)$(10,169)
Depreciation expense2,079 2,671 2,165 4,242 5,520 
Impairment of other long-lived assets— — — — 326 
Acquisition related costs— — — — — 
Public offering costs— — 
Stock based compensation28 34 38 65 128 
Interest expense58 132 63 121 389.172 
Other income, net(127)(298)(9)(135)(271)
Adjusted EBITDA$(786)$(2,081)$(1,055)$(1,844)$(4,077)

Other Services(a)
Three Months EndedSix Months Ended
June 30,March 31,June 30,
Reconciliation of Adjusted EBITDA to net income (loss):20212020202120212020
Net income (loss)$3,929 $(2,195)$(108)$3,820 $(16,279)
Depreciation, amortization and accretion expense3,453 3,912 3,491 6,946 8,518 
Impairment of goodwill— — — — 1,567 
Impairment of other long-lived assets— — — — 8,368 
Public offering costs— — 
Stock based compensation28 20 24 52 173 
Interest expense, net146 225 154 300 501 
Other (income) expense, net(727)213 242 (485)626 
Benefit for income taxes(7,722)(4,430)(5,051)(12,773)(6,226)
Interest on trade accounts receivable— — — 
Adjusted EBITDA$(885)$(2,246)$(1,248)$(2,132)$(2,743)
a.    Includes results for Mammoth's aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation and remote accommodations, equipment manufacturing and infrastructure engineering and design services and corporate related activities. The Company's corporate related activities do not generate revenue.

12

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

Adjusted Net Loss and Adjusted Loss per Share

Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company's operating and financial performance. Management believes these measures provide meaningful information about the Company's performance by excluding certain non-cash charges, such as impairment of goodwill and impairment of other long-lived assets, that may not be indicative of the Company's ongoing operating results. Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.
Three Months EndedSix Months Ended
June 30,March 31,June 30,
20212020202120212020
(in thousands, except per share amounts)
Net loss, as reported$(34,790)$(15,205)$(12,440)$(47,230)$(99,176)
Impairment of goodwill— — — — 54,973 
Impairment of other long-lived assets— — — — 12,897 
Adjusted net loss$(34,790)$(15,205)$(12,440)$(47,230)$(31,306)
Basic loss per share, as reported$(0.75)$(0.33)$(0.27)$(1.02)$(2.18)
Impairment of goodwill— — — — 1.21 
Impairment of other long-lived assets— — — — 0.28 
Adjusted basic loss per share$(0.75)$(0.33)$(0.27)$(1.02)$(0.69)
Diluted loss per share, as reported$(0.75)$(0.33)$(0.27)$(1.02)$(2.18)
Impairment of goodwill— — — — 1.21 
Impairment of other long-lived assets— — — — 0.28 
Adjusted diluted loss per share$(0.75)$(0.33)$(0.27)$(1.02)$(0.69)

13