Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.23.3
Reporting Segments
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of September 30, 2023, the Company’s revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. 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 September 30, 2023, the Company’s four reportable segments include well completion services (“Well Completion”), infrastructure services (“Infrastructure”), natural sand proppant services (“Sand”) and drilling services (“Drilling”). 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 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 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.

The Company also provided aviation services, equipment rental services, 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):
Three Months Ended September 30, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 20,166  $ 26,712  $ 10,633  $ 2,820  $ 4,628  $ —  $ 64,959 
Intersegment revenues 161  —  —  2  909  (1,072) — 
Total revenue 20,327  26,712  10,633  2,822  5,537  (1,072) 64,959 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 17,528  22,042  6,977  2,599  3,671  —  52,817 
Intersegment cost of revenues 325  10  —  109  628  (1,072) — 
Total cost of revenue 17,853  22,052  6,977  2,708  4,299  (1,072) 52,817 
Selling, general and administrative 1,579  6,495  1,224  389  724  —  10,411 
Depreciation, depletion, amortization and accretion 3,971  1,557  2,836  1,222  1,647  —  11,233 
(Gains) losses on disposal of assets, net (2,016) (311) —  (138) 15  —  (2,450)
Impairment of goodwill —  —  —  —  1,810  —  1,810 
Operating loss (1,060) (3,081) (404) (1,359) (2,958) —  (8,862)
Interest expense, net 774  1,647  117  151  187  —  2,876 
Other income, net —  (11,348) (6) —  (2,734) —  (14,088)
(Loss) income before income taxes $ (1,834) $ 6,620  $ (515) $ (1,510) $ (411) $ —  $ 2,350 
Three Months Ended September 30, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 51,378  $ 33,296  $ 12,910  $ 3,118  $ 6,500  $ —  $ 107,202 
Intersegment revenues 154  —  —  —  468  (622) — 
Total revenue 51,532  33,296  12,910  3,118  6,968  (622) 107,202 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 35,414  26,495  9,206  2,695  4,646  —  78,456 
Intersegment cost of revenues 403  17  —  109  93  (622) — 
Total cost of revenue 35,817  26,512  9,206  2,804  4,739  (622) 78,456 
Selling, general and administrative 2,390  4,968  1,076  305  946  —  9,685 
Depreciation, depletion, amortization and accretion 4,772  3,969  2,865  1,598  2,638  —  15,842 
(Gains) losses on disposal of assets, net (339) 73  —  (286) (47) —  (599)
Operating income (loss) 8,892  (2,226) (237) (1,303) (1,308) —  3,818 
Interest expense, net 531  2,047  212  154  318  —  3,262 
Other income, net (345) (10,304) (3) —  (337) —  (10,989)
Income (loss) before income taxes $ 8,706  $ 6,031  $ (446) $ (1,457) $ (1,289) $ —  $ 11,545 
Nine Months Ended September 30, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 114,810  $ 83,308  $ 34,643  $ 7,972  $ 15,977  $ —  $ 256,710 
Intersegment revenues 400  —  25  9  1,710  (2,144) — 
Total revenue 115,210  83,308  34,668  7,981  17,687  (2,144) 256,710 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 93,158  67,810  21,905  7,246  11,942  —  202,061 
Intersegment cost of revenues 1,029  29  —  326  760  (2,144) — 
Total cost of revenue 94,187  67,839  21,905  7,572  12,702  (2,144) 202,061 
Selling, general and administrative 5,847  17,091  2,682  1,039  2,492  —  29,151 
Depreciation, depletion, amortization and accretion 13,288  7,366  6,397  3,873  5,915  —  36,839 
Gains on disposal of assets, net (2,016) (439) (16) (138) (675) —  (3,284)
Impairment of goodwill —  —  —  —  1,810  —  1,810 
Operating income (loss) 3,904  (8,549) 3,700  (4,365) (4,557) —  (9,867)
Interest expense, net 2,527  5,361  422  481  594  —  9,385 
Other expense (income), net 1  (28,713) (12) —  (2,327) —  (31,051)
Income (loss) before income taxes $ 1,376  $ 14,803  $ 3,290  $ (4,846) $ (2,824) $ —  $ 11,799 


Nine Months Ended September 30, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 118,580  $ 81,892  $ 35,098  $ 7,922  $ 15,686  $ —  $ 259,178 
Intersegment revenues 643  —  2,450  22  1,044  (4,159) — 
Total revenue 119,223  81,892  37,548  7,944  16,730  (4,159) 259,178 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 88,740  67,190  26,701  7,100  11,991  —  201,722 
Intersegment cost of revenues 3,419  49  —  430  265  (4,163) — 
Total cost of revenue 92,159  67,239  26,701  7,530  12,256  (4,163) 201,722 
Selling, general and administrative 6,314  14,056  2,774  874  2,542  —  26,560 
Depreciation, depletion, amortization and accretion 17,963  12,495  6,717  4,929  8,381  —  50,485 
Gains on disposal of assets, net (547) (795) (90) (286) (2,020) —  (3,738)
Operating income (loss) 3,334  (11,103) 1,446  (5,103) (4,429) 4  (15,851)
Interest expense, net 1,324  5,345  552  379  670  —  8,270 
Other (income) expense, net (345) (29,948) (10) —  128  —  (30,175)
Income (loss) before income taxes $ 2,355  $ 13,500  $ 904  $ (5,482) $ (5,227) $ 4  $ 6,054 
Well Completion Infrastructure Sand Drilling All Other Eliminations Total
As of September 30, 2023:
Total assets $ 60,649  $ 461,731  $ 125,608  $ 17,403  $ 90,306  $ (69,721) $ 685,976 
As of December 31, 2022:
Total assets $ 82,897  $ 450,841  $ 129,467  $ 21,755  $ 120,164  $ (80,446) $ 724,678