Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.21.1
Reporting Segments
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of March 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 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 year ended December 31, 2020, the Company included Barracuda Logistics LLC in its Well Completion segment, Cobra Aviation, ARS and Leopard in its Infrastructure segment and Mako Acquisitions LLC 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, the Company changed the name of its pressure pumping segment to the well completion segment in 2020. The results for the three months ended March 31, 2020 have been retroactively adjusted to reflect his change in reportable segments.

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, equipment manufacturing and infrastructure engineering and design services. 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 March 31, 2021 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
Revenue from external customers $ 29,257  $ 22,901  $ 8,705  $ 919  $ 5,022  $ —  $ 66,804 
Intersegment revenues —  54  —  14  640  (708) — 
Total revenue 29,257  22,955  8,705  933  5,662  (708) 66,804 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 26,458  9,003  5,862  1,604  5,153  —  48,080 
Intersegment cost of revenues 45  394  —  —  269  (708) — 
Total cost of revenue 26,503  9,397  5,862  1,604  5,422  (708) 48,080 
Selling, general and administrative 6,253  10,612  2,049  422  1,512  —  20,848 
Depreciation, depletion, amortization and accretion 6,667  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, net 661  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, 2020 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
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 revenue 25,475  43,320  10,249  4,727  15,120  (1,508) 97,383 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 26,681  25,568  11,297  5,625  12,735  —  81,906 
Intersegment cost of revenues 8  627  —  130  743  (1,508) — 
Total cost of revenue 26,689  26,195  11,297  5,755  13,478  (1,508) 81,906 
Selling, general and administrative 3,944  2,171  1,303  1,063  2,290  —  10,771 
Depreciation, depletion, amortization and accretion 7,622  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, net 752  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)

Infrastructure Well Completion Sand Drilling All Other Eliminations Total
As of March 31, 2021:
Total assets $ 405,364  $ 101,798  $ 167,901  $ 33,498  $ 111,977  $ (40,094) $ 780,444 
As of December 31, 2020:
Total assets $ 436,604  $ 99,247  $ 172,927  $ 36,252  $ 135,194  $ (55,662) $ 824,562