Exhibit 99.1


mammotha061.jpg


Mammoth Energy Services, Inc. Announces
Third Quarter 2020 Operational and Financial Results


OKLAHOMA CITY, OKLAHOMA, October 29, 2020 - Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the third quarter ended September 30, 2020.

Financial Highlights for the Third Quarter 2020:

Total revenue was $70.5 million for the three months ended September 30, 2020, up 17% from $60.1 million for the three months ended June 30, 2020 and down 38% from $113.4 million for the three months ended September 30, 2019.

Net income for the three months ended September 30, 2020 was $3.4 million, or $0.07 per fully diluted share, as compared to a net loss of $15.2 million, or $0.33 per fully diluted share, for the three months ended June 30, 2020 and a net loss of $35.7 million, or $0.79 per fully diluted share, for the three months ended September 30, 2019.

Adjusted EBITDA (as defined and reconciled below) was $22.1 million for the three months ended September 30, 2020, as compared to $6.9 million for the three months ended June 30, 2020 and ($3.8) million for the three months ended September 30, 2019.

Arty Straehla, Mammoth's Chief Executive Officer, stated, “The third quarter financial results showed the earnings power of our infrastructure segment with gross margin increasing to 34% and Adjusted EBITDA, excluding interest on trade accounts receivable, in this segment growing more than 350% quarter-over-quarter. The initiatives taken by our infrastructure management team have laid a solid foundation for growth in the years to come. While the oilfield portion of our service offerings continue to experience significant challenges, we continue to maintain our oilfield equipment and plan to be ready to ramp up our oilfield service offerings when oilfield demand, pricing and margins strengthen.”

Infrastructure Services

Mammoth's infrastructure services division contributed revenue of $44.0 million, or approximately 62% of Mammoth's total revenue, for the three months ended September 30, 2020, an increase of 44% from $30.6 million for the three months ended June 30, 2020 and an increase of 18% from $37.3 million for the three months ended September 30, 2019 reflecting a strong market.

As of September 30, 2020, Mammoth had approximately 120 crews operating in the continental United States.

Pressure Pumping Services

Mammoth's pressure pumping services division contributed revenue (inclusive of inter-segment revenue) of $15.8 million on 449 stages for the three months ended September 30, 2020, a decrease of 5% from $16.6 million on 658 stages for the three months ended June 30, 2020 and a decrease of 65% from $44.6 million on 783 stages for the three months ended September 30, 2019. On average, 0.9 of the Company's fleets were active for the three months ended September 30, 2020, compared to average utilization of 1.9 fleets during the three months ended June 30, 2020 and an average utilization of 1.2 fleets during the three months ended September 30, 2019.


Natural Sand Proppant Services

Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $6.0 million for the three months ended September 30, 2020, a decrease of 3% from $6.2 million for the three months ended June 30, 2020 and a decrease of 67% from $18.4 million for the three months ended September 30, 2019. The Company sold approximately 68,000 tons of sand during the three months ended September 30, 2020, a decrease of 85% from approximately 456,000 tons sold during the three months ended June 30, 2020 and a decrease of 17% from approximately 82,000 tons sold during the three months ended September 30, 2019. The Company's average sales price for the sand sold during the three months ended September 30, 2020 was $15.59 per ton, a slight increase from the $15.18 per ton average sales price during the three months ended June 30, 2020 and a decrease from the $26.84 per ton average sales price during the three months ended September 30, 2019.

Drilling Services

Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.2 million for the three months ended September 30, 2020, a decrease of 8% from $1.3 million for the three months ended June 30, 2020 and a decrease of 80% from $6.1 million for the three months ended September 30, 2019. The decline is primarily due to reduced utilization. As a result of market conditions, the Company 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 coil tubing, pressure control, flowback, cementing, acidizing, equipment rentals, crude oil hauling, full service transportation, remote accommodations, oilfield equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of $4.2 million for the three months ended September 30, 2020, a decrease of 35% from $6.5 million for the three months ended June 30, 2020 and a decrease of 70% from $14.0 million for the three months ended September 30, 2019.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $12.2 million for the three months ended September 30, 2020, as compared to $13.7 million for the three months ended June 30, 2020 and $14.4 million for the three months ended September 30, 2019.
Following is a breakout of SG&A expense (in thousands):
Three Months EndedNine Months Ended
September 30,June 30,September 30,
20202019202020202019
Cash expenses:
Compensation and benefits$3,449 $4,777 $3,720 $11,138 $16,161 
Professional services5,651 6,104 6,147 15,335 12,827 
Other(a)
2,163 1,665 2,100 6,572 8,290 
Total cash SG&A expense11,263 12,546 11,967 33,045 37,278 
Non-cash expenses:
Bad debt provision626 964 1,624 2,306 1,230 
Stock based compensation291 913 135 1,326 2,705 
Total non-cash SG&A expense917 1,877 1,759 3,632 3,935 
Total SG&A expense$12,180 $14,423 $13,726 $36,677 $41,213 
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 17% for the three months ended September 30, 2020, as compared to 23% for the three months ended June 30, 2020 and 13% for the three months ended September 30, 2019.

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Liquidity
As of September 30, 2020, Mammoth had cash on hand of $13.9 million and outstanding borrowings under its revolving credit facility of $89.8 million. As of September 30, 2020, the Company had $18.0 million of available borrowing capacity under its revolving credit facility. This available borrowing capacity reflects (i) a minimum excess availability covenant of 10% of the maximum revolving advance amount and (ii) $9.0 million of outstanding letters of credit. As of September 30, 2020, Mammoth had total liquidity of $31.9 million.

As of October 28, 2020, Mammoth had cash on hand of $12.4 million and outstanding borrowings under its revolving credit facility of $88.4 million. As of October 28, 2020, the Company had $28.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.3 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 EndedNine Months Ended
September 30,June 30,September 30,
20202019202020202019
Infrastructure services(a)
$178 $122 $43 $298 $5,553 
Pressure pumping services(b)
698 2,963 2,450 3,752 14,305 
Natural sand proppant services(c)
194 728 354 1,069 2,703 
Drilling services(d)
131 146 72 211 3,073 
Other(e)
324 711 5 619 9,256 
Total capital expenditures$1,525 $4,670 $2,924 $5,949 $34,890 
a.     Capital expenditures primarily for truck, tooling and other equipment for the periods presented.
b.     Capital expenditures primarily for pressure pumping and water transfer equipment for the periods presented.
c.    Capital expenditures primarily for maintenance for the periods presented.
d.    Capital expenditures primarily for upgrades to the Company's rig fleet for the periods presented.
e.    Capital expenditures primarily for equipment for the Company's rental businesses for the periods presented.

Explanatory Note Regarding Financial Information

The financial information contained in this release should be read in conjunction with the financial information contained in Mammoth’s Annual Reports filed on Form 10-K with the Securities and Exchange Commission (“SEC”), Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings.

The Company's Chief Executive Officer and Chief Financial Officer comprise the Company's Chief Operating Decision Maker function (“CODM”). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of operating income (loss) as well as a qualitative basis, such as nature of the product and service offerings and types of customers.

Conference Call Information

Mammoth will host a conference call on Thursday, October 29, 2020 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss its third quarter 2020 financial and operational results. The telephone number to access the conference call is 844-265-1561 in the U.S. and the international dial in is 216-562-0385. The conference ID for the call is 2595308. The conference call will also be webcast live on www.mammothenergy.com in the “Investors” section.

About Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy service company serving companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves and government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities through its energy infrastructure services. Mammoth’s suite of services and products include: infrastructure services, pressure pumping services, natural sand and proppant services, drilling services and other energy services.

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For additional information about Mammoth, please visit its website at www.mammothenergy.com, where Mammoth routinely posts announcements, updates, events, investor information and presentations and recent news releases.

Investor Contact:
Don Crist
Director of Investor Relations
dcrist@mammothenergy.com
405-608-6048

Media Contact:
Peter Mirijanian
peter@pmpadc.com
(202) 464-8803

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 current significant surplus in the supply of oil and the ability of the OPEC+ countries to agree on and comply with supply limitations; 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 pressure pumping segments; risks relating to economic conditions; the loss of or interruption in operations of one or more key suppliers or customers; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; weather; natural disasters; litigation; 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


ASSETSSeptember 30,December 31,
20202019
CURRENT ASSETS(in thousands)
Cash and cash equivalents$13,884 $5,872 
Accounts receivable, net373,160 363,053 
Receivables from related parties38,676 7,523 
Inventories13,297 17,483 
Prepaid expenses3,363 12,354 
Other current assets4,413 695 
Total current assets446,793 406,980 
Property, plant and equipment, net270,624 352,772 
Sand reserves66,093 68,351 
Operating lease right-of-use assets25,927 43,446 
Intangible assets, net - customer relationships452 583 
Intangible assets, net - trade names4,576 5,205 
Goodwill12,608 67,581 
Other non-current assets4,026 7,467 
Total assets$831,099 $952,385 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$33,428 $39,220 
Payables to related parties18 526 
Accrued expenses and other current liabilities35,482 40,754 
Current operating lease liability10,657 16,432 
Income taxes payable31,789 33,465 
Total current liabilities111,374 130,397 
Long-term debt89,800 80,000 
Deferred income tax liabilities29,423 36,873 
Long-term operating lease liability15,291 27,102 
Asset retirement obligation4,683 4,241 
Other liabilities6,357 5,031 
Total liabilities256,928 283,644 
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 45,765,533 and 45,108,545 issued and outstanding at September 30, 2020 and December 31, 2019458 451 
Additional paid in capital536,685 535,094 
Retained earnings40,756 136,502 
Accumulated other comprehensive loss(3,728)(3,306)
Total equity574,171 668,741 
Total liabilities and equity$831,099 $952,385 


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



Three Months EndedNine Months Ended
September 30,June 30,September 30,
20202019202020202019
(in thousands, except per share amounts)
REVENUE
Services revenue$55,279 $85,783 $44,878 $169,002 $394,645 
Services revenue - related parties8,565 15,000 8,650 35,228 95,910 
Product revenue4,815 9,710 4,706 18,171 40,381 
Product revenue - related parties1,875 2,924 1,875 5,625 26,439 
Total revenue70,534 113,417 60,109 228,026 557,375 
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $20,424, $25,749, $21,750, $65,728 and $77,028, respectively, for the three months ended September 30, 2020, September 30, 2019 and June 30, 2020 and nine months ended September 30, 2020 and 2019)41,445 91,813 42,255 154,397 382,607 
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 September 30, 2020, September 30, 2019 and June 30, 2020 and nine months ended September 30, 2020 and 2019)131 774 97 329 4,138 
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,689, $4,019, $2,346, $7,344 and $11,414, respectively, for the three months ended September 30, 2020, September 30, 2019 and June 30, 2020 and nine months ended September 30, 2020 and 2019)4,353 18,547 6,401 21,862 81,475 
Selling, general and administrative11,979 14,029 13,528 36,063 39,726 
Selling, general and administrative - related parties201 394 198 614 1,487 
Depreciation, depletion, amortization and accretion23,132 29,791 24,116 73,130 88,512 
Impairment of goodwill— 3,194 — 54,973 3,194 
Impairment of other long-lived assets— 3,348 — 12,897 3,348 
Total cost and expenses81,241 161,890 86,595 354,265 604,487 
Operating loss(10,707)(48,473)(26,486)(126,239)(47,112)
OTHER INCOME (EXPENSE)
Interest expense, net(1,098)(1,398)(1,471)(4,207)(3,472)
Other, net7,943 6,368 8,137 23,489 34,944 
Other, net - related parties1,099 — 1,133 2,232 — 
Total other income7,944 4,970 7,799 21,514 31,472 
Loss before income taxes(2,763)(43,503)(18,687)(104,725)(15,640)
(Benefit) provision for income taxes(6,193)(7,794)(3,482)(8,979)2,625 
Net income (loss) $3,430 $(35,709)$(15,205)$(95,746)$(18,265)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of tax of ($95), ($49), ($150), $116 and $134, respectively, for the three months ended September 30, 2020, September 30, 2019 and June 30, 2020 and nine months ended September 30, 2020 and 2019324 (213)668 (422)493 
Comprehensive income (loss) $3,754 $(35,922)$(14,537)$(96,168)$(17,772)
Net income (loss) per share (basic)$0.07 $(0.79)$(0.33)$(2.10)$(0.41)
Net income (loss) per share (diluted)$0.07 $(0.79)$(0.33)$(2.10)$(0.41)
Weighted average number of shares outstanding (basic)45,764 45,020 45,727 45,603 44,984 
Weighted average number of shares outstanding (diluted) 46,571 45,020 45,727 45,603 44,984 
Dividends declared per share$— $— $— $— $0.25 

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS


Nine Months Ended
September 30,
20202019
(in thousands)
Cash flows from operating activities:
Net loss$(95,746)$(18,265)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Stock based compensation1,598 3,367 
Depreciation, depletion, accretion and amortization73,130 88,512 
Amortization of coil tubing strings359 1,236 
Amortization of debt origination costs703 245 
Bad debt expense2,306 1,230 
(Gain) loss on disposal of property and equipment(927)245 
Impairment of goodwill54,973 3,194 
Impairment of other long-lived assets12,897 3,348 
Inventory obsolescence— 1,349 
Deferred income taxes(7,334)(32,183)
Other581 (539)
Changes in assets and liabilities:
Accounts receivable, net(11,707)(33,042)
Receivables from related parties(31,152)2,622 
Inventories3,827 1,415 
Prepaid expenses and other assets8,803 3,713 
Accounts payable(5,211)(27,187)
Payables to related parties(508)117 
Accrued expenses and other liabilities(3,166)(19,121)
Income taxes payable(1,644)(72,501)
Net cash provided by (used in) operating activities1,782 (92,245)
Cash flows from investing activities:
Purchases of property and equipment(5,873)(34,637)
Purchases of property and equipment from related parties(76)(253)
Contributions to equity investee— (680)
Proceeds from disposal of property and equipment4,859 2,491 
Net cash used in investing activities(1,090)(33,079)
Cash flows from financing activities:
Borrowings from lines of credit30,800 138,000 
Repayments of lines of credit(21,000)(58,000)
Dividends paid— (11,219)
Principal payments on financing leases and equipment financing notes(1,423)(1,534)
Debt issuance costs(1,000)— 
Net cash provided by financing activities7,377 67,247 
Effect of foreign exchange rate on cash(57)50 
Net change in cash and cash equivalents8,012 (58,027)
Cash and cash equivalents at beginning of period5,872 67,625 
Cash and cash equivalents at end of period$13,884 $9,598 
Supplemental disclosure of cash flow information:
Cash paid for interest$3,637 $3,280 
Cash paid for income taxes$13 $116,448 
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable$2,032 $1,203 

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

Three months ended September 30, 2020InfrastructurePressure PumpingSandDrillingAll OtherEliminationsTotal
Revenue from external customers$44,009 $15,738 $6,031 $1,193 $3,563 $— $70,534 
Intersegment revenues— 53 — 26 672 (751)— 
Total revenue44,009 15,791 6,031 1,219 4,235 (751)70,534 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion29,074 6,881 3,784 1,964 4,226 — 45,929 
Intersegment cost of revenues162 449 26 — 114 (751)— 
Total cost of revenue29,236 7,330 3,810 1,964 4,340 (751)45,929 
Selling, general and administrative7,377 1,744 1,033 382 1,644 — 12,180 
Depreciation, depletion, amortization and accretion7,589 7,196 2,693 2,323 3,331 — 23,132 
Operating loss(193)(479)(1,505)(3,450)(5,080)— (10,707)
Interest expense, net628 269 54 60 87 — 1,098 
Other (income) expense, net (9,204)(1,156)1,792 20 (494)— (9,042)
Income (loss) before income taxes$8,383 $408 $(3,351)$(3,530)$(4,673)$— $(2,763)

Three months ended September 30, 2019InfrastructurePressure PumpingSandDrillingAll OtherEliminationsTotal
Revenue from external customers$37,289 $43,887 $12,634 $6,065 $13,542 $— $113,417 
Intersegment revenues— 725 5,727 58 417 (6,927)— 
Total revenue37,289 44,612 18,361 6,123 13,959 (6,927)113,417 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion36,940 33,059 18,547 7,203 15,385 — 111,134 
Intersegment cost of revenues— 6,054 326 185 362 (6,927)— 
Total cost of revenue36,940 39,113 18,873 7,388 15,747 (6,927)111,134 
Selling, general and administrative7,322 3,669 1,314 910 1,208 — 14,423 
Depreciation, depletion, amortization and accretion7,953 10,176 4,022 3,096 4,544 — 29,791 
impairment of goodwill— — — — 3,194 — 3,194 
Impairment of other long-lived assets— — — — 3,348 — 3,348 
Operating loss(14,926)(8,346)(5,848)(5,271)(14,082)— (48,473)
Interest expense, net599 316 43 220 220 — 1,398 
Other (income) expense, net(6,239)(3)99 (100)(125)— (6,368)
Loss before income taxes$(9,286)$(8,659)$(5,990)$(5,391)$(14,177)$— $(43,503)

Three months ended June 30, 2020InfrastructurePressure PumpingSandDrillingAll OtherEliminationsTotal
Revenue from external customers$30,579 $16,125 $6,237 $1,250 $5,918 $— $60,109 
Intersegment revenues— 446 — 25 580 (1,051)— 
Total revenue30,579 16,571 6,237 1,275 6,498 (1,051)60,109 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion25,368 8,744 6,025 2,027 6,589 — 48,753 
Intersegment cost of revenues27 333 28 21 642 (1,051)— 
Total cost of revenue25,395 9,077 6,053 2,048 7,231 (1,051)48,753 
Selling, general and administrative8,037 1,477 1,357 1,331 1,524 — 13,726 
Depreciation, depletion, amortization and accretion7,816 7,685 2,348 2,700 3,567 — 24,116 
Operating loss(10,669)(1,668)(3,521)(4,804)(5,824)— (26,486)
Interest expense, net720 346 53 143 209 — 1,471 
Other (income) expense, net(7,809)(1,179)(2)(298)18 — (9,270)
Loss before income taxes$(3,580)$(835)$(3,572)$(4,649)$(6,051)$— $(18,687)
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MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)

Nine months ended September 30, 2020InfrastructurePressure PumpingSandDrillingAll OtherEliminationsTotal
Revenue from external customers$100,294 $74,549 $22,421 $7,166 $23,596 $— $228,026 
Intersegment revenues— 1,435 95 107 2,026 (3,663)— 
Total revenue100,294 75,984 22,516 7,273 25,622 (3,663)228,026 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion81,389 41,833 20,465 9,627 23,274 — 176,588 
Intersegment cost of revenues197 1,410 355 151 1,550 (3,663)— 
Total cost of revenue81,586 43,243 20,820 9,778 24,824 (3,663)176,588 
Selling, general and administrative19,711 5,443 3,641 2,777 5,105 — 36,677 
Depreciation, depletion, amortization and accretion23,339 23,373 7,353 7,900 11,165 — 73,130 
Impairment of goodwill— 53,406 — — 1,567 — 54,973 
Impairment of other long-lived assets— 4,203 — 326 8,368 — 12,897 
Operating loss(24,342)(53,684)(9,298)(13,508)(25,407)— (126,239)
Interest expense, net2,105 907 167 473 555 — 4,207 
Other (income) expense, net (24,289)(2,444)1,753 (251)(490)— (25,721)
Loss before income taxes$(2,158)$(52,147)$(11,218)$(13,730)$(25,472)$— $(104,725)

Nine months ended September 30, 2019InfrastructurePressure PumpingSandDrillingAll OtherEliminationsTotal
Revenue from external customers$187,831 $217,456 $66,820 $27,091 $58,177 $— $557,375 
Intersegment revenues— 3,936 29,795 484 1,870 (36,085)— 
Total revenue187,831 221,392 96,615 27,575 60,047 (36,085)557,375 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion140,768 157,106 81,475 29,030 59,841 — 468,220 
Intersegment cost of revenues1 31,388 2,513 686 1,557 (36,145)— 
Total cost of revenue140,769 188,494 83,988 29,716 61,398 (36,145)468,220 
Selling, general and administrative19,874 9,544 4,214 3,117 4,464 — 41,213 
Depreciation, depletion, amortization and accretion23,490 30,244 11,423 9,866 13,489 — 88,512 
Impairment of goodwill— — — — 3,194 — 3,194 
Impairment of other long-lived assets— — — — 3,348 — 3,348 
Operating income (loss)3,698 (6,890)(3,010)(15,124)(25,846)60 (47,112)
Interest expense, net1,024 965 145 679 659 — 3,472 
Other (income) expense, net(35,108)5 67 (122)214 — (34,944)
Income (loss) before income taxes$37,782 $(7,860)$(3,222)$(15,681)$(26,719)$60 $(15,640)

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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, inventory obsolescence charges, acquisition related 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 EndedNine Months Ended
September 30,June 30,September 30,
Reconciliation of Adjusted EBITDA to net income (loss):20202019202020202019
Net income (loss)$3,430 $(35,709)$(15,205)$(95,746)$(18,265)
Depreciation, depletion, amortization and accretion expense23,132 29,791 24,116 73,130 88,512 
Impairment of goodwill— 3,194 — 54,973 3,194 
Impairment of other long-lived assets— 3,348 — 12,897 3,348 
Inventory obsolescence charges— 1,349 — — 1,349 
Acquisition related costs— — — — 45 
Stock based compensation353 1,134 196 1,598 3,367 
Interest expense, net1,098 1,398 1,471 4,207 3,472 
Other income, net(9,042)(6,368)(9,270)(25,721)(34,944)
(Benefit) provision for income taxes(6,193)(7,794)(3,482)(8,979)2,625 
Interest on trade accounts receivable9,285 5,896 9,071 26,052 34,865 
Adjusted EBITDA$22,063 $(3,761)$6,897 $42,411 $87,568 

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

Infrastructure Services
Three Months EndedNine Months Ended
September 30,June 30,September 30,
Reconciliation of Adjusted EBITDA to net income (loss):20202019202020202019
Net income (loss)$6,738 $(10,763)$(4,529)$(7,242)$31,113 
Depreciation and amortization expense7,589 7,953 7,816 23,339 23,490 
Acquisition related costs— — — — 12 
Stock based compensation141 217 45 437 688 
Interest expense628 599 720 2,105 1,024 
Other income, net(9,204)(6,239)(7,809)(24,289)(35,108)
Provision for income taxes1,645 1,477 949 5,085 6,670 
Interest on trade accounts receivable8,170 5,896 7,929 23,796 34,865 
Adjusted EBITDA$15,707 $(860)$5,121 $23,231 $62,754 

Pressure Pumping Services
Three Months EndedNine Months Ended
September 30,June 30,September 30,
Reconciliation of Adjusted EBITDA to net income (loss):20202019202020202019
Net income (loss)$408 $(8,659)$(835)$(52,149)$(7,860)
Depreciation and amortization expense7,196 10,176 7,685 23,373 30,244 
Impairment of goodwill— — — 53,406 — 
Impairment of other long-lived assets— — — 4,203 — 
Acquisition related costs— — — — 18 
Stock based compensation77 503 53 465 1,402 
Interest expense269 316 346 907 965 
Other (income) expense, net(1,156)(3)(1,179)(2,444)5 
Interest on trade accounts receivable1,073 — 1,133 2,205 — 
Adjusted EBITDA$7,867 $2,333 $7,203 $29,966 $24,774 

Natural Sand Proppant Services
Three Months EndedNine Months Ended
September 30,June 30,September 30,
Reconciliation of Adjusted EBITDA to net loss:20202019202020202019
Net loss$(3,351)$(5,990)$(3,572)$(11,218)$(3,222)
Depreciation, depletion, amortization and accretion expense2,693 4,022 2,348 7,353 11,423 
Acquisition related costs— — — — 8 
Stock based compensation76 216 45 347 656 
Interest expense54 43 53 167 145 
Other expense (income), net1,792 99 (2)1,753 67 
Interest on trade accounts receivable26 — — 26 — 
Adjusted EBITDA$1,290 $(1,610)$(1,128)$(1,572)$9,077 

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

Drilling Services
Three Months EndedNine Months Ended
September 30,June 30,September 30,
Reconciliation of Adjusted EBITDA to net loss:20202019202020202019
Net loss$(3,530)$(5,391)$(4,649)$(13,730)$(15,681)
Depreciation expense2,323 3,096 2,700 7,900 9,866 
Impairment of other long-lived assets— — — 326 — 
Acquisition related costs— — — — 2 
Stock based compensation38 90 34 166 279 
Interest expense60 220 143 473 679 
Other expense (income), net20 (100)(298)(251)(122)
Adjusted EBITDA$(1,089)$(2,085)$(2,070)$(5,116)$(4,977)

Other Services(a)
Three Months EndedNine Months Ended
September 30,June 30,September 30,
Reconciliation of Adjusted EBITDA to net income (loss):20202019202020202019
Net income (loss)$3,165 $(4,905)$(1,620)$(11,407)$(22,674)
Depreciation, amortization and accretion expense3,331 4,544 3,567 11,165 13,489 
Impairment of goodwill— 3,194 — 1,567 3,194 
Impairment of other long-lived assets— 3,348 — 8,368 3,348 
Inventory obsolescence charges— 1,349 — — 1,349 
Acquisition related costs— — — — 5 
Stock based compensation21 107 19 183 341 
Interest expense, net87 220 209 555 659 
Other (income) expense, net(494)(125)18 (490)214 
Benefit for income taxes(7,838)(9,272)(4,431)(14,064)(4,045)
Interest on trade accounts receivable16 — 9 25 — 
Adjusted EBITDA$(1,712)$(1,540)$(2,229)$(4,098)$(4,120)
a.    Includes results for Mammoth's coil tubing, pressure control, flowback, cementing, acidizing, equipment rentals, crude oil hauling, full service transportation and remote accommodations, oilfield equipment manufacturing and infrastructure engineering and design services and corporate related activities. The Company's corporate related activities do not generate revenue.

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

Adjusted net income (loss) and adjusted basic and diluted earnings (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 income (loss) and adjusted earnings (loss) per share should not be considered in isolation or as a substitute for net income (loss) and earnings (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 income (loss) and adjusted earnings (loss) per share to the GAAP financial measures of net income (loss) and earnings (loss) per share for the periods specified.

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

Three Months EndedNine Months Ended
September 30,June 30,September 30,
20202019202020202019
(in thousands, except per share amounts)
Net income (loss), as reported$3,430 $(35,709)$(15,205)$(95,746)$(18,265)
Impairment of goodwill— 3,194 — 54,973 3,194 
Impairment of other long-lived assets— 3,348 — 12,897 3,348 
Adjusted net income (loss)$3,430 $(29,167)$(15,205)$(27,876)$(11,723)
Basic earnings (loss) per share, as reported$0.07 $(0.79)$(0.33)$(2.10)$(0.41)
Impairment of goodwill— 0.07 — 1.21 0.07 
Impairment of other long-lived assets— 0.07 — 0.28 0.07 
Adjusted basic earnings (loss) per share$0.07 $(0.65)$(0.33)$(0.61)$(0.27)
Diluted earnings (loss) per share, as reported$0.07 $(0.79)$(0.33)$(2.10)$(0.41)
Impairment of goodwill— 0.07 — 1.21 0.07 
Impairment of other long-lived assets— 0.07 — 0.28 0.07 
Adjusted diluted earnings (loss) per share$0.07 $(0.65)$(0.33)$(0.61)$(0.27)

13