Annual report pursuant to Section 13 and 15(d)

Reporting Segments and Geographic Areas

v3.22.0.1
Reporting Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Reporting Segments and Geographic Areas Reporting Segments and Geographic Areas
Reporting Segments

As of December 31, 2021, the Company’s revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. The Company principally provides electric infrastructure services to private utilities, public investor-owned utilities and co-operative utilities and services in connection with on-shore drilling of oil and natural gas wells for small to large domestic independent oil and natural gas producers.

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 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 December 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 year ended December 31, 2021, the Company included Aquawolf in its “All Other” reconciling column. Based on its assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2021, the Company changed its presentation in 2021 to move Aquawolf to the Infrastructure segment. The results for the years ended December 31, 2020 and 2019 have been retroactively adjusted to reflect this change.

The Infrastructure segment provides electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in the northeastern, southwestern, midwestern and western portions of the United States. The Well Completion segment provides hydraulic fracturing and water transfer services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania and the mid-continent region. The Sand segment mines, processes and sells sand for use in hydraulic fracturing. The Sand segment primarily services the Utica Shale, Permian Basin, SCOOP, STACK and Montney Shale in British Columbia and Alberta, Canada. During certain of the periods presented, the Drilling segment provided contract land and directional drilling services primarily in the Permian Basin and mid-continent region.

During certain of the periods presented, the Company also provided aviation services, coil tubing services, equipment rental services, full service transportation, crude oil hauling services, remote accommodation and equipment manufacturing. The businesses that provide these services are distinct operating segments, which the CODM reviews independently when making key operating and resource utilization decisions. None of these operating segments meet the quantitative thresholds of a reporting segment and do not meet the aggregation criteria set forth in ASC 280 Segment Reporting. Therefore, results for these operating segments are included in the column titled “All Other” in the tables below. Additionally, assets for corporate activities, which primarily include cash and cash equivalents, inter-segment accounts receivable, prepaid insurance and certain property and equipment, are included in the All Other column. Although Mammoth Energy Partners LLC, which holds these corporate assets, meets one of the quantitative thresholds of a reporting segment, it does not engage in business activities from which it may earn revenues and its results are not
regularly reviewed by the Company’s CODM when making key operating and resource utilization decisions. Therefore, the Company does not include it as a reportable segment.

Sales from one segment to another are generally priced at estimated equivalent commercial selling prices. Total revenue and total cost of revenue amounts included in the Eliminations column in the following tables include inter-segment transactions conducted between segments. Receivables due for sales from one segment to another and for corporate allocations to each segment are included in the Eliminations column for total assets in the following tables. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reporting segment are eliminated within each reporting segment. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):

Year Ended December 31, 2021 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
Revenue from external customers $ 93,403  $ 84,190  $ 30,880  $ 4,197  $ 16,292  $ —  $ 228,962 
Intersegment revenues —  144  3,980  124  2,218  (6,466) — 
Total revenue 93,403  84,334  34,860  4,321  18,510  (6,466) 228,962 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 90,363  58,782  27,232  6,102  15,847  —  198,326 
Intersegment cost of revenues 196  5,770  —  —  500  (6,466) — 
Total cost of revenue 90,559  64,552  27,232  6,102  16,347  (6,466) 198,326 
Selling, general and administrative 18,267  49,275  5,351  1,414  3,939  —  78,246 
Depreciation, depletion, amortization and accretion 21,880  26,377  9,005  7,996  13,217  —  78,475 
Impairment of goodwill 891  —  —  —  —  —  891 
Impairment of other long-lived assets 665  —  —  —  547  —  1,212 
Operating loss (38,859) (55,870) (6,728) (11,191) (15,540) —  (128,188)
Interest expense 3,925  1,107  474  293  607  —  6,406 
Other (income) expense, net (6,785) 1,073  (874) (177) (3,538) —  (10,301)
Loss before income taxes $ (35,999) $ (58,050) $ (6,328) $ (11,307) $ (12,609) $ —  $ (124,293)
Total expenditures for property, plant and equipment $ 627  $ 4,327  $ 484  $ 44  $ 361  $ —  $ 5,843 
As of December 31, 2021:
Intangible assets, net $ 165  $ 1,995  $ —  $ —  $ 401  $ —  $ 2,561 
Total assets $ 427,626  $ 56,036  $ 156,519  $ 27,457  $ 129,202  $ (75,948) $ 720,892 
Year Ended December 31, 2020 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
Revenue from external customers $ 157,751  $ 87,201  $ 34,265  $ 7,746  $ 26,113  $ —  $ 313,076 
Intersegment revenue —  1,124  95  39  2,716  (3,974) — 
Total revenue 157,751  88,325  34,360  7,785  28,829  (3,974) 313,076 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 124,232  45,647  25,955  10,757  25,430  —  232,021 
Intersegment cost of revenues 323  1,836  —  152  1,663  (3,974) — 
Total cost of revenue 124,555  47,483  25,955  10,909  27,093  (3,974) 232,021 
Selling, general and administrative 27,261  23,039  7,807  3,149  5,929  —  67,185 
Depreciation, depletion, amortization and accretion 29,373  30,411  9,771  10,039  15,723  —  95,317 
Impairment of goodwill —  53,406  —  —  1,567  —  54,973 
Impairment of other long-lived assets —  4,203  —  326  8,368  —  12,897 
Operating loss (23,438) (70,217) (9,173) (16,638) (29,851) —  (149,317)
Interest expense 2,794  1,130  312  454  707  —  5,397 
Other (income) expense, net (32,437) (2,274) 1,839  (227) (1,839) —  (34,938)
Income (loss) before income taxes $ 6,205  $ (69,073) $ (11,324) $ (16,865) $ (28,719) $ —  $ (119,776)
Total expenditures for property, plant and equipment $ 258  $ 4,358  $ 1,073  $ 432  $ 716  $ —  $ 6,837 
As of December 31, 2020:
Intangible assets, net $ 1,063  $ 2,683  $ —  $ —  $ 1,028  $ —  $ 4,774 
Total assets $ 437,296  $ 99,247  $ 172,927  $ 36,252  $ 136,422  $ (57,582) $ 824,562 
Year Ended December 31, 2019 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
Revenue from external customers $ 210,712  $ 241,951  $ 67,267  $ 31,728  $ 73,354  $ —  $ 625,012 
Intersegment revenues 2,573  1,851  29,796  236  15,232  (49,688) — 
Total revenue 213,285  243,802  97,063  31,964  88,586  (49,688) 625,012 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 160,731  174,816  87,637  35,925  84,679  —  543,788 
Intersegment cost of revenues 12,820  31,727  15  1,028  4,158  (49,748) — 
Total cost of revenue 173,551  206,543  87,652  36,953  88,837  (49,748) 543,788 
Selling, general and administrative 23,616  10,889  5,006  4,177  7,864  —  51,552 
Depreciation, depletion, amortization and accretion 30,349  40,159  14,050  13,143  19,332  —  117,033 
Impairment of goodwill —  23,423  2,684  —  7,557  —  33,664 
Impairment of other long-lived assets —  —  —  2,955  4,403  —  7,358 
Operating loss (14,231) (37,212) (12,329) (25,264) (39,407) 60  (128,383)
Interest expense 1,674  1,228  193  862  1,001  —  4,958 
Other expense (41,949) 580  67  (9) (905) —  (42,216)
(Loss) income before income taxes $ 26,044  $ (39,020) $ (12,589) $ (26,117) $ (39,503) $ 60  $ (91,125)
Total expenditures for property, plant and equipment $ 3,456  $ 14,703  $ 2,877  $ 3,156  $ 11,569  $ —  35,761 
As of December 31, 2019:
Intangible assets, net $ 1,296  $ 3,371  $ —  $ —  $ 1,121  $ —  $ 5,788 
Total assets $ 420,755  $ 172,608  $ 189,415  $ 55,273  $ 166,406  $ (52,072) $ 952,385 
Geographic Areas

The following table presents consolidated revenues by country based on sales destination of the products or services (in thousands):
Year Ended December 31,
2021 2020 2019
United States $ 217,958  $ 302,205  $ 516,276 
Puerto Rico —  53  96,630 
Canada 10,685  10,723  11,946 
Other 319  95  160 
Total $ 228,962  $ 313,076  $ 625,012 

The following table presents long-lived assets, excluding deferred income tax assets, by country (in thousands):
Year Ended December 31,
2021 2020 2019
United States $ 258,666  $ 342,838  $ 526,584 
Canada 13,349  16,976  18,821 
Total $ 272,015  $ 359,814  $ 545,405