Quarterly report [Sections 13 or 15(d)]

Reportable Segments

v3.25.1
Reportable Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Reportable Segments 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 Adjusted EBITDA, as well as a qualitative basis, such as nature of the product and service offerings and types of customers. The Company defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion, gains or losses on disposal of assets, net, stock based compensation, interest (income) expense and financing charges, net, other expense (income), net (which is comprised of interest on trade accounts receivable and certain legal expenses) and provision for income taxes, further adjusted to add back interest on trade accounts receivable. The Company’s significant segment expenses include cost of revenue and selling, general and administrative.

The Company principally provides services in connection with on-shore oil and natural gas wells for small to large domestic independent oil and natural gas producers as well as electric infrastructure services to private utilities, public investor-owned utilities and co-operative utilities. At March 31, 2025, the Company had three reportable segments, which includes well completion services (“Well Completion”), infrastructure services (“Infrastructure”) and natural sand proppant services (“Sand”). 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. During the periods discussed in this report, the Infrastructure segment provided 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.

The Company also provides directional drilling, aviation services, equipment rental services, remote accommodations and equipment manufacturing. The entities 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 reportable segment and do not meet the aggregation criteria set forth in ASC 280. Therefore, results for these operating segments are included in the column titled “Other” in the tables below. Additionally, assets for corporate activities, which primarily include cash and cash equivalents, restricted cash, intersegment accounts receivable, prepaid insurance and certain property, plant and equipment, are included in the Other column. Although Mammoth and Mammoth Energy Partners LLC, which hold these corporate assets, meet one of the quantitative thresholds of a reportable segment, they do not engage in business activities from which they may earn revenue and their 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. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reportable segment are eliminated within each reportable segment. Eliminations for intersegment transactions are included in the Other column in the tables below. Corporate selling, general and administrative costs are allocated to each segment based on forecasted revenue, expense and asset base. Corporate interest expense is allocated to each segment based on its intercompany payable position with the Company’s corporate entity. US income tax expense is not allocated to each segment. Foreign income tax expense is realized in the segment in which the foreign operations occur.

To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of March 31, 2025. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):
Three Months Ended March 31, 2025 Well Completion Infrastructure Sand Other Total
Revenue from external and related party customers $ 20,875  $ 30,725  $ 6,738  $ 4,127  $ 62,465 
Intersegment revenue 46  —  1  (47) — 
Total revenue 20,921  30,725  6,739  4,080  62,465 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 18,598  25,400  5,476  3,918  53,392 
Intersegment cost of revenue 198  —  —  (198) — 
Total cost of revenue 18,796  25,400  5,476  3,720  53,392 
Selling, general and administrative, exclusive of stock based compensation 976  3,763  865  726  6,330 
Adjusted EBITDA $ 1,149  $ 1,562  $ 398  $ (366) $ 2,743 
Reconciliation of net (loss) income to Adjusted EBITDA:
Net (loss) income $ (1,494) $ (338) $ (451) $ 1,746  $ (537)
Depreciation, depletion, amortization and accretion 3,068  920  877  1,176  6,041 
Gains on disposal of assets, net (381) (165) —  (3,472) (4,018)
Stock based compensation 55  107  37  12  211 
Interest (income) expense and financing charges, net (100) (12) (86) 45  (153)
Other expense (income), net 1  421  21  (104) 339 
Provision for income taxes —  629  —  231  860 
Adjusted EBITDA $ 1,149  $ 1,562  $ 398  $ (366) $ 2,743 
Total purchases of property, plant and equipment $ 4,341  $ 2,630  $ 93  $ 167  $ 7,231 
Three Months Ended March 31, 2024 Well Completion Infrastructure Sand Other Total
Revenue from external and related party customers $ 7,925  $ 25,038  $ 4,307  $ 5,919  $ 43,189 
Intersegment revenue 109  —  —  (109) — 
Total revenue 8,034  25,038  4,307  5,810  43,189 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 7,736  21,533  5,731  5,584  40,584 
Intersegment cost of revenue 191  25  —  (216) — 
Total cost of revenue 7,927  21,558  5,731  5,368  40,584 
Selling, general and administrative, exclusive of stock based compensation 966  5,500  992  1,105  8,563 
Interest on trade accounts receivable —  (10,485) —  —  (10,485)
Adjusted EBITDA $ (859) $ 8,465  $ (2,416) $ (663) $ 4,527 
Reconciliation of net loss to Adjusted EBITDA:
Net loss $ (4,720) $ (405) $ (3,681) $ (3,005) $ (11,811)
Depreciation, depletion, amortization and accretion 3,087  718  1,146  2,070  7,021 
Loss (gains) on disposal of assets, net 250  (483) —  (933) (1,166)
Stock based compensation 42  117  37  23  219 
Interest expense and financing charges, net, inclusive of related parties 481  7,099  83  474  8,137 
Other expense (income), net 1  (10,258) (1) 115  (10,143)
Provision for income taxes —  1,192  —  593  1,785 
Interest on trade accounts receivable —  10,485  —  —  10,485 
Adjusted EBITDA $ (859) $ 8,465  $ (2,416) $ (663) $ 4,527 
Total purchases of property, plant and equipment $ 3,414  $ 590  $ —  $ 147  4,151 
Well Completion Infrastructure Sand Other Total
As of March 31, 2025:
Total assets $ 62,701  $ 151,483  $ 112,015  $ 48,155  $ 374,354 
As of December 31, 2024:
Total assets $ 61,728  $ 150,531  $ 118,855  $ 52,917  $ 384,031