Annual report pursuant to Section 13 and 15(d)

Reporting Segments and Geographic Areas

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Reporting Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Reporting Segments and Geographic Areas Reporting Segments and Geographic Areas
Reporting Segments

As of December 31, 2023, 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 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, 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 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. In 2022, 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 in 2023 to move Bison Trucking to the reconciling column titled “All Other”. The results for the years ended December 31, 2022 and 2021 have been retroactively adjusted to reflect these changes.

During certain of the periods presented, 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 FASB ASC 280. 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, restricted cash, 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, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 130,771  $ 110,537  $ 39,106  $ 7,126  $ 21,952  $ —  $ 309,492 
Intersegment revenues 517  —  25  —  2,102  (2,644) — 
Total revenue 131,288  110,537  39,131  7,126  24,054  (2,644) 309,492 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 107,405  90,478  26,324  7,095  16,538  —  247,840 
Intersegment cost of revenues 1,246  149  —  26  1,223  (2,644) — 
Total cost of revenue 108,651  90,627  26,324  7,121  17,761  (2,644) 247,840 
Selling, general and administrative 7,212  22,078  3,655  746  3,767  —  37,458 
Depreciation, depletion, amortization and accretion 16,794  8,390  7,737  4,514  7,675  —  45,110 
Gains on disposal of assets, net (2,091) (510) (13) (1,577) (1,850) —  (6,041)
Impairment of goodwill —  —  —  —  1,810  —  1,810 
Operating income (loss) 722  (10,048) 1,428  (3,678) (5,109) —  (16,685)
Interest expense and financing charges, net 4,502  9,753  540  489  912  —  16,196 
Other expense (income), net 2  (39,252) (18) (33) (2,714) —  (42,015)
(Loss) income before income taxes $ (3,782) $ 19,451  $ 906  $ (4,134) $ (3,307) $ —  $ 9,134 
Total expenditures for property, plant and equipment $ 17,931  $ 716  $ 223  $ 110  $ 312  $ 103  $ 19,395 
As of December 31, 2023:
Intangible assets, net $ 619  $ 105  $ —  $ —  $ 189  $ —  $ 913 
Total assets $ 50,965  $ 462,429  $ 121,162  $ 13,492  $ 69,005  $ (18,574) $ 698,479 
Year Ended December 31, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 169,872  $ 111,452  $ 48,916  $ 8,380  $ 23,466  $ —  $ 362,086 
Intersegment revenue 791  —  2,475  —  1,708  (4,974) — 
Total revenue 170,663  111,452  51,391  8,380  25,174  (4,974) 362,086 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 124,848  91,577  36,783  7,514  17,865  —  278,587 
Intersegment cost of revenues 3,894  72  —  85  923  (4,974) — 
Total cost of revenue 128,742  91,649  36,783  7,599  18,788  (4,974) 278,587 
Selling, general and administrative 8,642  19,147  7,171  606  3,988  —  39,554 
Depreciation, depletion, amortization and accretion 22,103  16,171  8,732  5,811  11,454  —  64,271 
Gains on disposal of assets, net (615) (795) (89) —  (2,409) —  (3,908)
Operating income (loss) 11,791  (14,720) (1,206) (5,636) (6,647) —  (16,418)
Interest expense and financing charges, net 1,940  7,390  753  435  988  —  11,506 
Other income, net (343) (40,470) (14) —  (85) —  (40,912)
Income (loss) before income taxes $ 10,194  $ 18,360  $ (1,945) $ (6,071) $ (7,550) $ —  $ 12,988 
Total expenditures for property, plant and equipment $ 11,421  $ 885  $ 88  $ 95  $ 401  $ (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  $ 20,276  $ 115,980  $ (74,783) $ 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  $ 3,117  $ 17,372  $ —  $ 228,962 
Intersegment revenues 144  —  3,980  5  2,694  (6,823) — 
Total revenue 84,334  93,403  34,860  3,122  20,066  (6,823) 228,962 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 58,782  90,363  27,232  4,258  17,691  —  198,326 
Intersegment cost of revenues 5,770  196  —  403  454  (6,823) — 
Total cost of revenue 64,552  90,559  27,232  4,661  18,145  (6,823) 198,326 
Selling, general and administrative 49,275  18,267  5,351  803  4,550  —  78,246 
Depreciation, depletion, amortization and accretion 26,377  21,880  9,005  6,784  14,429  —  78,475 
Gains on disposal of assets, net (770) (286) (30) (205) (3,856) —  (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) (8,921) (13,749) —  (123,041)
Interest expense and financing charges, net 1,107  3,925  474  237  663  —  6,406 
Other expense (income), net 1,843  (6,499) (844) 25  321  —  (5,154)
Loss before income taxes $ (58,050) $ (35,999) $ (6,328) $ (9,183) $ (14,733) $ —  $ (124,293)
Total expenditures for property, plant and equipment $ 4,327  $ 627  $ 484  $ 23  $ 382  $ —  5,843 
As of December 31, 2021:
Intangible assets, net $ 1,995  $ 165  $ —  $ —  $ 401  $ —  $ 2,561 
Total assets $ 56,036  $ 427,626  $ 156,519  $ 25,188  $ 126,482  $ (70,959) $ 720,892 
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,
2023 2022 2021
United States $ 287,467  $ 343,307  $ 217,958 
Canada 21,746  18,603  10,685 
Other 279  176  319 
Total $ 309,492  $ 362,086  $ 228,962 

The following table presents long-lived assets, excluding deferred income tax assets, by country (in thousands):
Year Ended December 31,
2023 2022 2021
United States $ 189,697  $ 217,101  $ 258,666 
Canada 10,013  10,885  13,349 
Total $ 199,710  $ 227,986  $ 272,015