Annual report pursuant to Section 13 and 15(d)

Reporting Segments and Geographic Areas

v3.22.4
Reporting Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Reporting Segments and Geographic Areas Reporting Segments and Geographic Areas
Reporting Segments

As of December 31, 2022, the Company’s revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. The Company principally provides services in connection with on-shore drilling of 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.

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 December 31, 2022, 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 Sand segment mines, processes and sells sand for use in hydraulic fracturing. 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 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, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 169,872  $ 111,452  $ 48,916  $ 10,346  $ 21,500  $ —  $ 362,086 
Intersegment revenues 791  —  2,475  22  1,614  (4,902) — 
Total revenue 170,663  111,452  51,391  10,368  23,114  (4,902) 362,086 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 124,848  91,577  36,783  9,259  16,120  —  278,587 
Intersegment cost of revenues 3,894  72  —  538  398  (4,902) — 
Total cost of revenue 128,742  91,649  36,783  9,797  16,518  (4,902) 278,587 
Selling, general and administrative 8,642  19,147  7,171  1,241  3,353  —  39,554 
Depreciation, depletion, amortization and accretion 22,103  16,171  8,732  6,467  10,798  —  64,271 
Gains on disposal of assets, net (615) (795) (89) (172) (2,237) —  (3,908)
Operating (loss) income 11,791  (14,720) (1,206) (6,965) (5,318) —  (16,418)
Interest expense 1,940  7,390  753  545  878  —  11,506 
Other income, net (343) (40,470) (14) —  (85) —  (40,912)
Income (loss) before income taxes $ 10,194  $ 18,360  $ (1,945) $ (7,510) $ (6,111) $ —  $ 12,988 
Total expenditures for property, plant and equipment $ 11,421  $ 885  $ 88  $ 101  $ 395  $ (153) $ 12,737 
As of December 31, 2022:
Intangible assets, net $ 1,307  $ 135  $ —  $ —  $ 340  $ —  $ 1,782 
Total assets $ 82,897  $ 450,841  $ 129,467  $ 21,755  $ 120,164  $ (80,446) $ 724,678 
Year Ended December 31, 2021 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 84,190  $ 93,403  $ 30,880  $ 4,197  $ 16,292  $ —  $ 228,962 
Intersegment revenue 144  —  3,980  124  2,218  (6,466) — 
Total revenue 84,334  93,403  34,860  4,321  18,510  (6,466) 228,962 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 58,782  90,363  27,232  6,102  15,847  —  198,326 
Intersegment cost of revenues 5,770  196  —  —  500  (6,466) — 
Total cost of revenue 64,552  90,559  27,232  6,102  16,347  (6,466) 198,326 
Selling, general and administrative 49,275  18,267  5,351  1,414  3,939  —  78,246 
Depreciation, depletion, amortization and accretion 26,377  21,880  9,005  7,996  13,217  —  78,475 
Gains on disposal of assets, net (770) (286) (30) (202) (3,859) —  (5,147)
Impairment of goodwill —  891  —  —  —  —  891 
Impairment of other long-lived assets —  665  —  —  547  —  1,212 
Operating loss (55,100) (38,573) (6,698) (10,989) (11,681) —  (123,041)
Interest expense 1,107  3,925  474  293  607  —  6,406 
Other (income) expense, net 1,843  (6,499) (844) 25  321  —  (5,154)
Loss before income taxes $ (58,050) $ (35,999) $ (6,328) $ (11,307) $ (12,609) $ —  $ (124,293)
Total expenditures for property, plant and equipment $ 4,327  $ 627  $ 484  $ 44  $ 361  $ —  $ 5,843 
As of December 31, 2021:
Intangible assets, net $ 1,995  $ 165  $ —  $ —  $ 401  $ —  $ 2,561 
Total assets $ 56,036  $ 427,626  $ 156,519  $ 27,457  $ 129,202  $ (75,948) $ 720,892 
Year Ended December 31, 2020 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 87,201  $ 157,751  $ 34,265  $ 7,746  $ 26,113  $ —  $ 313,076 
Intersegment revenues 1,124  —  95  39  2,716  (3,974) — 
Total revenue 88,325  157,751  34,360  7,785  28,829  (3,974) 313,076 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 45,647  124,232  25,955  10,757  25,430  —  232,021 
Intersegment cost of revenues 1,836  323  —  152  1,663  (3,974) — 
Total cost of revenue 47,483  124,555  25,955  10,909  27,093  (3,974) 232,021 
Selling, general and administrative 23,039  27,261  7,807  3,149  5,929  —  67,185 
Depreciation, depletion, amortization and accretion 30,411  29,373  9,771  10,039  15,723  —  95,317 
(Gains) losses on disposal of assets, net (388) (444) 1,829  (352) (1,283) —  (638)
Impairment of goodwill 53,406  —  —  —  1,567  —  54,973 
Impairment of other long-lived assets 4,203  —  —  326  8,368  —  12,897 
Operating loss (69,829) (22,994) (11,002) (16,286) (28,568) —  (148,679)
Interest expense 1,130  2,794  312  454  707  —  5,397 
Other expense, net (1,886) (31,993) 10  125  (556) —  (34,300)
Income (loss) before income taxes $ (69,073) $ 6,205  $ (11,324) $ (16,865) $ (28,719) $ —  $ (119,776)
Total expenditures for property, plant and equipment $ 4,358  $ 258  $ 1,073  $ 432  $ 716  $ —  6,837 
As of December 31, 2020:
Intangible assets, net $ 2,683  $ 1,063  $ —  $ —  $ 1,028  $ —  $ 4,774 
Total assets $ 99,247  $ 437,296  $ 172,927  $ 36,252  $ 136,422  $ (57,582) $ 824,562 
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,
2022 2021 2020
United States $ 343,307  $ 217,958  $ 302,205 
Puerto Rico —  —  53 
Canada 18,603  10,685  10,723 
Other 176  319  95 
Total $ 362,086  $ 228,962  $ 313,076 

The following table presents long-lived assets, excluding deferred income tax assets, by country (in thousands):
Year Ended December 31,
2022 2021 2020
United States $ 217,101  $ 258,666  $ 342,838 
Canada 10,885  13,349  16,976 
Total $ 227,986  $ 272,015  $ 359,814