Exhibit 99.1


mammotha061a.jpg


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


OKLAHOMA CITY, OKLAHOMA, April 29, 2021 - Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the first quarter ended March 31, 2021.

Financial Overview for the First Quarter 2021:

Total revenue was $66.8 million for the three months ended March 31, 2021, down 22% from $85.1 million for the three months ended December 31, 2020 and down 31% from $97.4 million for the three months ended March 31, 2020.

Net loss for the three months ended March 31, 2021 was $12.4 million, or $0.27 per fully diluted share, as compared to a net loss of $11.9 million, or $0.26 per fully diluted share, for the three months ended December 31, 2020 and a net loss of $84.0 million, or $1.85 per fully diluted share, for the three months ended March 31, 2020.

Adjusted EBITDA (as defined and reconciled below) was $6.4 million for the three months ended March 31, 2021, as compared to $7.5 million for the three months ended December 31, 2020 and $13.5 million for the three months ended March 31, 2020.

Arty Straehla, Chief Executive Officer of Mammoth commented, “The first quarter of 2021 came in as expected as restoration work on the Gulf Coast came to an end and our infrastructure work moderated slightly. Bidding opportunities for both traditional transmission and distribution work as well as renewable work has increased significantly over the past several months. We expect this increase in bidding opportunities to continue to increase in the coming years as the new administration advances its infrastructure bill to rebuild a broad array of the nation's infrastructure assets. The roughly $2 trillion plan includes several areas in which our teams have expertise, including modernization of the electric grid and a shift to renewables.”

Infrastructure Services

Mammoth's infrastructure services division contributed revenue (inclusive of inter-segment revenue) of $29.3 million, or approximately 44% of Mammoth's total revenue, for the three months ended March 31, 2021, a decrease of 48% from $55.9 million for the three months ended December 31, 2020 and an increase of 15% from $25.5 million for the three months ended March 31, 2020.

Well Completion Services

Mammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $23.0 million on 445 stages for the three months ended March 31, 2021, an increase of 81% from $12.7 million on 291 stages for the three months ended December 31, 2020 and a decrease of 47% from $43.3 million on 1,482 stages for the three months ended March 31, 2020. On average, 0.9 of the Company's fleets were active for the three months ended March 31, 2021, compared to average utilization of 0.6 fleets during the three months ended December 31, 2020 and an average utilization of 2.7 fleets during the three months ended March 31, 2020.
Natural Sand Proppant Services

Mammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $8.7 million for


the three months ended March 31, 2021, a decrease of 26% from $11.8 million for the three months ended December 31, 2020 and a decrease of 15% from $10.2 million for the three months ended March 31, 2020. The Company sold approximately 171,000 tons of sand during the three months ended March 31, 2021, an increase of 71% from approximately 100,000 tons sold during the three months ended December 31, 2020 and a decrease of 28% from approximately 239,000 tons sold during the three months ended March 31, 2020. The Company's average sales price for the sand sold during the three months ended March 31, 2021 was $16.83 per ton, as compared to $15.59 per ton during the three months ended December 31, 2020 and $13.67 per ton during the three months ended March 31, 2020.

Drilling Services

Mammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $0.9 million for the three months ended March 31, 2021, an increase of 50% from $0.6 million for the three months ended December 31, 2020 and a decrease of 81% from $4.7 million for the three months ended March 31, 2020.

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 $5.7 million for the three months ended March 31, 2021, an increase of 21% from $4.7 million for the three months ended December 31, 2020 and a decrease of 62% from $15.1 million for the three months ended March 31, 2020.

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 $20.8 million for the three months ended March 31, 2021, as compared to $30.5 million for the three months ended December 31, 2020 and $10.8 million for the three months ended March 31, 2020.
Following is a breakout of SG&A expense (in thousands):
Three Months Ended
March 31,December 31,
202120202020
Cash expenses:
Compensation and benefits$4,694 $3,969 $3,738 
Professional services3,405 3,538 4,570 
Other(a)
2,342 2,309 2,256 
Total cash SG&A expense10,441 9,816 10,564 
Non-cash expenses:
Bad debt provision10,125 55 19,652 
Stock based compensation282 900 292 
Total non-cash SG&A expense10,407 955 19,944 
Total SG&A expense$20,848 $10,771 $30,508 
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 31% for the three months ended March 31, 2021, as compared to 36% for the three months ended December 31, 2020 and 11% for the three months ended March 31, 2020. The bad debt provision
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for the three months ended March 31, 2021 and December 31, 2020, includes $10.0 million and $19.4 million, respectively, related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

Liquidity
As of March 31, 2021, Mammoth had cash on hand of $14.4 million, outstanding borrowings under its revolving credit facility of $64.0 million and $48.7 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit. As of March 31, 2021, Mammoth had total liquidity of $63.1 million.

As of April 27, 2021, Mammoth had cash on hand of $14.8 million, outstanding borrowings under its revolving credit facility of $67.0 million and $45.7 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 Ended
March 31,December 31,
202120202020
Infrastructure services(a)
$189 $— $37 
Well completion services(b)
412 604 606 
Natural sand proppant services(c)
408 521 4 
Drilling services(d)
37 — 234 
Other(e)
102 375 7 
Total capital expenditures$1,148 $1,500 $888 
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 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 with the SEC.

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) less impairment expense as well as a qualitative basis, such as nature of the product and service offerings and types of customers.

As of March 31, 2021, the Company’s four reportable segments include infrastructure services (“Infrastructure”), well completion services (“Well Completion”), natural sand proppant services (“Sand”) and drilling services (“Drilling”). Prior to the fourth quarter of 2020, the Company included Barracuda Logistics LLC (“Barracuda”) in its Well Completion segment, Cobra Aviation Services LLC (“Cobra Aviation”), Air Rescue Systems Corporation (“ARS”) and Leopard Aviation LLC (“Leopard”) in its Infrastructure segment and Mako Acquisitions LLC (“Mako”) in its Drilling segment. Based on its assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2020, the Company changed its presentation in 2020 to move Barracuda to the Sand segment and Cobra Aviation, ARS, Leopard and Mako to the reconciling column titled “All Other”. Additionally, Mammoth changed the name of its pressure pumping segment to the well completion segment during the fourth quarter of 2020. The results for the three months ended March 31, 2020 have been retroactively adjusted to reflect these changes.

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Conference Call Information

Mammoth will host a conference call on Thursday, April 29, 2021 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss its first quarter 2021 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 2449776. 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 construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its energy infrastructure services and 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 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
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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 of Gulfport Energy Corporation's chapter 11 bankruptcy filing and the treatment of Mammoth's contracts and claims in such proceeding and subsequent related proceedings; 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.

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS


ASSETSMarch 31,December 31,
20212020
CURRENT ASSETS(in thousands)
Cash and cash equivalents$14,366 $14,822 
Short-term investment1,753 1,750 
Accounts receivable, net369,434 393,112 
Receivables from related parties, net33,115 28,461 
Inventories11,356 12,020 
Prepaid expenses10,740 13,825 
Other current assets718 758 
Other current assets - related parties2,228 — 
Total current assets443,710 464,748 
Property, plant and equipment, net231,321 251,262 
Sand reserves65,876 65,876 
Operating lease right-of-use assets17,958 20,179 
Intangible assets, net - customer relationships365 408 
Intangible assets, net - trade names4,156 4,366 
Goodwill12,608 12,608 
Other non-current assets4,450 5,115 
Total assets$780,444 $824,562 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$36,690 $40,316 
Payables to related parties2 3 
Accrued expenses and other current liabilities36,823 44,408 
Current operating lease liability8,122 8,618 
Current portion of long-term debt1,412 1,165 
Income taxes payable36,558 34,088 
Total current liabilities119,607 128,598 
Long-term debt, net of current portion66,977 81,338 
Deferred income tax liabilities19,722 24,741 
Long-term operating lease liability9,626 11,377 
Asset retirement obligation3,617 4,746 
Other liabilities9,496 10,435 
Total liabilities229,045 261,235 
COMMITMENTS AND CONTINGENCIES
EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 46,272,617 and 45,769,283 issued and outstanding at March 31, 2021 and December 31, 2020463 458 
Additional paid in capital537,378 537,039 
Retained earnings16,455 28,895 
Accumulated other comprehensive loss(2,897)(3,065)
Total equity551,399 563,327 
Total liabilities and equity$780,444 $824,562 


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



Three Months Ended
March 31,December 31,
202120202020
(in thousands, except per share amounts)
REVENUE
Services revenue$42,691 $68,845 $65,079 
Services revenue - related parties14,986 18,013 7,862 
Product revenue6,982 8,650 10,234 
Product revenue - related parties2,145 1,875 1,875 
Total revenue66,804 97,383 85,050 
COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $18,989, $23,554 and $19,780, respectively, for the three months ended March 31, 2021, March 31, 2020 and December 31, 2020)42,062 70,697 51,260 
Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $0, $0 and $0, respectively, for the three months March 31, 2021, March 31, 2020 and December 31, 2020)109 101 90 
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,137, $2,309 and $2,387, respectively, for the three months ended March 31, 2021, March 31, 2020 and December 31, 2020)5,909 11,108 4,083 
Selling, general and administrative20,655 10,556 30,364 
Selling, general and administrative - related parties193 215 144 
Depreciation, depletion, amortization and accretion21,146 25,882 22,187 
Impairment of goodwill— 54,973 — 
Impairment of other long-lived assets— 12,897 — 
Total cost and expenses90,074 186,429 108,128 
Operating loss(23,270)(89,046)(23,078)
OTHER INCOME (EXPENSE)
Interest expense, net(1,225)(1,638)(1,191)
Other, net9,947 7,409 9,559 
Other, net - related parties(515)— (341)
Total other income8,207 5,771 8,027 
Loss before income taxes(15,063)(83,275)(15,051)
(Benefit) provision for income taxes(2,623)696 (3,190)
Net loss$(12,440)$(83,971)$(11,861)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of tax of ($42), $361 and ($170), respectively, for the three months ended March 31, 2021, March 31, 2020 and December 31, 2020168 (1,414)663 
Comprehensive loss$(12,272)$(85,385)$(11,198)
Net loss per share (basic)$(0.27)$(1.85)$(0.26)
Net loss per share (diluted)$(0.27)$(1.85)$(0.26)
Weighted average number of shares outstanding (basic)45,932 45,314 45,769 
Weighted average number of shares outstanding (diluted) 45,932 45,314 45,769 

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MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS


Three Months Ended
March 31,
20212020
(in thousands)
Cash flows from operating activities:
Net loss$(12,440)$(83,971)
Adjustments to reconcile net loss to cash provided by operating activities:
Stock based compensation344 1,049 
Depreciation, depletion, accretion and amortization21,146 25,882 
Amortization of coil tubing strings— 237 
Amortization of debt origination costs142 452 
Bad debt expense10,125 55 
Gain on disposal of property and equipment(615)(673)
Impairment of goodwill— 54,973 
Impairment of other long-lived assets— 12,897 
Deferred income taxes(5,061)5,361 
Other558 432 
Changes in assets and liabilities:
Accounts receivable, net23,437 (8,569)
Receivables from related parties(14,611)(10,267)
Inventories664 4,053 
Prepaid expenses and other assets3,105 3,929 
Other current assets - related parties(2,228)— 
Accounts payable(4,283)2,078 
Payables to related parties(2)(444)
Accrued expenses and other liabilities(8,516)(1,220)
Income taxes payable2,469 (4,713)
Net cash provided by operating activities14,234 1,541 
Cash flows from investing activities:
Purchases of property and equipment(1,148)(1,424)
Purchases of property and equipment from related parties— (76)
Proceeds from disposal of property and equipment1,457 558 
Net cash provided by (used in) investing activities309 (942)
Cash flows from financing activities:
Borrowings on long-term debt1,500 17,300 
Repayments of long-term debt(15,617)(8,950)
Payments on sale leaseback transaction(330)— 
Principal payments on financing leases and equipment financing notes(577)(452)
Debt issuance costs— (1,000)
Net cash (used in) provided by financing activities(15,024)6,898 
Effect of foreign exchange rate on cash25 (189)
Net change in cash and cash equivalents(456)7,308 
Cash and cash equivalents at beginning of period14,822 5,872 
Cash and cash equivalents at end of period$14,366 $13,180 
Supplemental disclosure of cash flow information:
Cash paid for interest$1,093 $1,285 
Cash (recovered) paid for income taxes$(32)$62 
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable$1,954 $4,347 

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

Three months ended March 31, 2021InfrastructureWell CompletionSandDrillingAll 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)

Three months ended March 31, 2020InfrastructureWell CompletionSandDrillingAll OtherEliminationsTotal
Revenue from external customers$25,475 $42,686 $10,154 $4,723 $14,345 $— $97,383 
Intersegment revenues— 634 95 4 775 (1,508)— 
Total revenue25,475 43,320 10,249 4,727 15,120 (1,508)97,383 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion26,681 25,568 11,297 5,625 12,735 — 81,906 
Intersegment cost of revenues8 627 — 130 743 (1,508)— 
Total cost of revenue26,689 26,195 11,297 5,755 13,478 (1,508)81,906 
Selling, general and administrative3,944 2,171 1,303 1,063 2,290 — 10,771 
Depreciation, depletion, amortization and accretion7,622 8,482 2,322 2,849 4,607 — 25,882 
Impairment of goodwill— 53,406 — — 1,567 — 54,973 
Impairment of other long-lived assets— 4,203 — 326 8,368 — 12,897 
Operating loss(12,780)(51,137)(4,673)(5,266)(15,190)— (89,046)
Interest expense, net752 275 79 257 275 — 1,638 
Other (income) expense, net(7,703)(110)(37)27 414 — (7,409)
Loss before income taxes$(5,829)$(51,302)$(4,715)$(5,550)$(15,879)$— $(83,275)

Three months ended December 31, 2020InfrastructureWell CompletionSandDrillingAll OtherEliminationsTotal
Revenue from external customers$55,934 $12,653 $11,843 $580 $4,040 $— $85,050 
Intersegment revenues— 44 — 23 670 (737)— 
Total revenue55,934 12,697 11,843 603 4,710 (737)85,050 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion41,265 5,194 4,110 1,165 3,699 — 55,433 
Intersegment cost of revenues127 426 — — 184 (737)— 
Total cost of revenue41,392 5,620 4,110 1,165 3,883 (737)55,433 
Selling, general and administrative7,057 17,691 4,070 373 1,317 — 30,508 
Depreciation, depletion, amortization and accretion6,957 7,066 2,390 2,224 3,550 — 22,187 
Operating income (loss)528 (17,680)1,273 (3,159)(4,040)— (23,078)
Interest expense, net685 273 95 5 133 — 1,191 
Other (income) expense, net(8,355)170 86 23 (1,142)— (9,218)
Income (loss) before income taxes$8,198 $(18,123)$1,092 $(3,187)$(3,031)$— $(15,051)

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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, 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 Ended
March 31,December 31,
Reconciliation of Adjusted EBITDA to net loss:202120202020
Net loss$(12,440)$(83,971)$(11,861)
Depreciation, depletion, amortization and accretion expense21,146 25,882 22,187 
Impairment of goodwill— 54,973 — 
Impairment of other long-lived assets— 12,897 — 
Stock based compensation344 1,049 354 
Interest expense, net1,225 1,638 1,191 
Other income, net(9,432)(7,409)(9,218)
(Benefit) provision for income taxes(2,623)696 (3,190)
Interest on trade accounts receivable8,158 7,696 8,077 
Adjusted EBITDA$6,378 $13,451 $7,540 

Infrastructure Services
Three Months Ended
March 31,December 31,
Reconciliation of Adjusted EBITDA to net (loss) income:202120202020
Net (loss) income$(3,945)$(8,320)$6,150 
Depreciation and amortization expense6,667 7,622 6,957 
Stock based compensation135 241 156 
Interest expense661 752 685 
Other income, net(9,310)(7,703)(8,355)
Provision for income taxes2,428 2,491 2,048 
Interest on trade accounts receivable8,673 7,696 8,418 
Adjusted EBITDA$5,309 $2,779 $16,059 
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MAMMOTH ENERGY SERVICES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Well Completion Services
Three Months Ended
March 31,December 31,
Reconciliation of Adjusted EBITDA to net loss:202120202020
Net loss$(4,430)$(51,302)$(18,123)
Depreciation and amortization expense6,683 8,482 7,066 
Impairment of goodwill— 53,406 — 
Impairment of other long-lived assets— 4,203 — 
Stock based compensation83 329 70 
Interest expense254 275 273 
Other expense (income), net439 (110)170 
Interest on trade accounts receivable(514)— (318)
Adjusted EBITDA$2,515 $15,283 $(10,862)

Natural Sand Proppant Services
Three Months Ended
March 31,December 31,
Reconciliation of Adjusted EBITDA to net (loss) income:202120202020
Net (loss) income$(645)$(4,715)$1,092 
Depreciation, depletion, amortization and accretion expense2,140 2,322 2,390 
Stock based compensation64 232 70 
Interest expense93 79 95 
Other (income) expense, net(794)(37)86 
Interest on trade accounts receivable(1)— (23)
Adjusted EBITDA$857 $(2,119)$3,710 

Drilling Services
Three Months Ended
March 31,December 31,
Reconciliation of Adjusted EBITDA to net loss:202120202020
Net loss$(3,312)$(5,550)$(3,187)
Depreciation expense2,165 2,849 2,224 
Impairment of other long-lived assets— 326 — 
Stock based compensation38 94 36 
Interest expense63 257 5 
Other (income) expense, net(9)27 23 
Adjusted EBITDA$(1,055)$(1,997)$(899)

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

Other Services(a)
Three Months Ended
March 31,December 31,
Reconciliation of Adjusted EBITDA to net (loss) income:202120202020
Net (loss) income$(108)$(14,084)$2,207 
Depreciation, amortization and accretion expense3,491 4,607 3,550 
Impairment of goodwill— 1,567 — 
Impairment of other long-lived assets— 8,368 — 
Stock based compensation24 153 22 
Interest expense, net154 275 133 
Other expense (income), net242 414 (1,142)
Benefit for income taxes(5,051)(1,795)(5,238)
Adjusted EBITDA$(1,248)$(495)$(468)
a.    Includes results for Mammoth's aviation, coil tubing, pressure control, flowback, cementing, acidizing, 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.

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 Ended
March 31,December 31,
202120202020
(in thousands, except per share amounts)
Net loss, as reported$(12,440)$(83,971)$(11,861)
Impairment of goodwill— 54,973 — 
Impairment of other long-lived assets— 12,897 — 
Adjusted net loss$(12,440)$(16,101)$(11,861)
Basic loss per share, as reported$(0.27)$(1.85)$(0.26)
Impairment of goodwill— 1.21 — 
Impairment of other long-lived assets— 0.28 — 
Adjusted basic loss per share$(0.27)$(0.36)$(0.26)
Diluted loss per share, as reported$(0.27)$(1.85)$(0.26)
Impairment of goodwill— 1.21 — 
Impairment of other long-lived assets— 0.28 — 
Adjusted diluted loss per share$(0.27)$(0.36)$(0.26)

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