Mammoth Energy Services, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

Property, Plant and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property, plant and equipment include the following:



		March 31,		December 31,
	Useful Life	2017		2016
Land		$	2,010,555	$	2,010,555
Land improvements	15 years or life of lease	3,640,976		3,640,976
Buildings	15-20 years	42,461,037		42,191,745
Drilling rigs and related equipment	3-15 years	139,101,541		138,526,519
Pressure pumping equipment	3-5 years	101,580,322		96,500,592
Coil tubing equipment	4-10 years	28,006,153		28,019,217
Other machinery and equipment	7-20 years	36,171,379		35,548,357
Vehicles, trucks and trailers	5-10 years	30,041,893		29,964,148
Other property and equipment	3-12 years	11,437,020		11,416,334
		394,450,876		387,818,443
Deposits on equipment and equipment in process of assembly		39,144,915		8,701,725
		433,595,791		396,520,168
Less: accumulated depreciation		189,574,094		175,272,940
Property, plant and equipment, net		$	244,021,697	$	221,247,228

Depreciation expense was $14,626,027 and $15,145,841 for the three months ended March 31, 2017 and 2016, respectively.

Proceeds from customers for horizontal and directional drilling services equipment, damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the statement of cash flows. For the three months ended March 31, 2017, proceeds from the sale of equipment damaged or lost down-hole were $347,844 and gain on sales of equipment damaged or lost down-hole was $242,723. There were no proceeds from the sale of equipment damaged or lost down-hole for the three months ended March 31, 2016.

Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service.