Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.24.3
Reporting Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of September 30, 2024, 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 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, 2024, 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. During the three and nine months ended September 30, 2023, the Company included Bison Trucking in its Drilling segment. Based on its assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2023, the Company changed its presentation to move Bison Trucking to the reconciling column titled “All Other”. The results for the three and nine months ended September 30, 2023 have been retroactively adjusted to reflect these changes.

The Company also provided aviation services, equipment rental services, remote accommodations 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, 2024 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 2,124  $ 26,043  $ 4,909  $ 1,557  $ 5,382  $ —  $ 40,015 
Intersegment revenues 108  —  —  —  1,641  (1,749) — 
Total revenue 2,232  26,043  4,909  1,557  7,023  (1,749) 40,015 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 7,099  22,539  3,110  1,478  3,746  —  37,972 
Intersegment cost of revenues 185  —  —  1  1,565  (1,751) — 
Total cost of revenue 7,284  22,539  3,110  1,479  5,311  (1,751) 37,972 
Selling, general and administrative 887  5,557  1,211  230  817  —  8,702 
Depreciation, depletion, amortization and accretion 2,546  626  1,688  587  737  —  6,184 
Gains on disposal of assets, net (60) (41) —  —  (192) —  (293)
Operating (loss) income (8,425) (2,638) (1,100) (739) 350  2  (12,550)
Interest expense and financing charges, net 533  8,742  135  127  193  —  9,730 
Other expense (income), net 1  1,491  3  —  (373) —  1,122 
(Loss) income before income taxes $ (8,959) $ (12,871) $ (1,238) $ (866) $ 530  $ 2  $ (23,402)
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  $ 2,337  $ 5,111  $ —  $ 64,959 
Intersegment revenues 161  —  —  —  909  (1,070) — 
Total revenue 20,327  26,712  10,633  2,337  6,020  (1,070) 64,959 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 17,528  22,042  6,977  2,194  4,076  —  52,817 
Intersegment cost of revenues 325  10  —  —  735  (1,070) — 
Total cost of revenue 17,853  22,052  6,977  2,194  4,811  (1,070) 52,817 
Selling, general and administrative 1,579  6,495  1,224  215  898  —  10,411 
Depreciation, depletion, amortization and accretion 3,971  1,557  2,836  1,114  1,755  —  11,233 
Gains on disposal of assets, net (2,016) (311) —  —  (123) —  (2,450)
Impairment of goodwill —  —  —  —  1,810  —  1,810 
Operating loss (1,060) (3,081) (404) (1,186) (3,131) —  (8,862)
Interest expense and financing charges, net 774  1,647  117  117  221  —  2,876 
Other income, net —  (11,348) (6) —  (2,734) —  (14,088)
(Loss) income before income taxes $ (1,834) $ 6,620  $ (515) $ (1,303) $ (618) $ —  $ 2,350 
Nine Months Ended September 30, 2024 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 20,218  $ 82,514  $ 13,908  $ 2,804  $ 15,288  $ —  $ 134,732 
Intersegment revenues 331  —  27  —  5,005  (5,363) — 
Total revenue 20,549  82,514  13,935  2,804  20,293  (5,363) 134,732 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 25,533  68,704  13,540  3,683  10,939  —  122,399 
Intersegment cost of revenues 638  26  —  4  4,695  (5,363) — 
Total cost of revenue 26,171  68,730  13,540  3,687  15,634  (5,363) 122,399 
Selling, general and administrative 3,156  105,625  3,185  618  2,377  —  114,961 
Depreciation, depletion, amortization and accretion 8,501  1,972  4,105  2,075  2,603  —  19,256 
Loss (gains) on disposal of assets, net 85  (984) (110) —  (1,487) —  (2,496)
Operating (loss) income (17,364) (92,829) (6,785) (3,576) 1,166  —  (119,388)
Interest expense and financing charges, net 1,624  17,417  408  377  574  —  20,400 
Other expense, net 2  63,919  2  —  735  —  64,658 
Loss before income taxes $ (18,990) $ (174,165) $ (7,195) $ (3,953) $ (143) $ —  $ (204,446)
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  $ 6,501  $ 17,448  $ —  $ 256,710 
Intersegment revenues 400  —  25  —  1,743  (2,168) — 
Total revenue 115,210  83,308  34,668  6,501  19,191  (2,168) 256,710 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 93,158  67,810  21,905  6,035  13,153  —  202,061 
Intersegment cost of revenues 1,029  29  —  26  1,084  (2,168) — 
Total cost of revenue 94,187  67,839  21,905  6,061  14,237  (2,168) 202,061 
Selling, general and administrative 5,847  17,091  2,682  554  2,977  —  29,151 
Depreciation, depletion, amortization and accretion 13,288  7,366  6,397  3,497  6,291  —  36,839 
Gains on disposal of assets, net (2,016) (439) (16) —  (813) —  (3,284)
Impairment of goodwill —  —  —  —  1,810  —  1,810 
Operating income (loss) 3,904  (8,549) 3,700  (3,611) (5,311) —  (9,867)
Interest expense and financing charges, net 2,527  5,361  422  376  699  —  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  $ (3,987) $ (3,683) $ —  $ 11,799 
Well Completion Infrastructure Sand Drilling All Other Eliminations Total
As of September 30, 2024:
Total assets $ 48,399  $ 251,697  $ 115,764  $ 12,287  $ 65,813  $ (50,982) $ 442,978 
As of December 31, 2023:
Total assets $ 50,965  $ 462,429  $ 121,162  $ 13,492  $ 69,005  $ (18,574) $ 698,479