Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.22.1
Reporting Segments
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of March 31, 2022, 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 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, 2022, 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, 2021, the Company included Aquawolf in its “All Other” reconciling column. Based on its assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2021, the Company changed its presentation in 2021 to move Aquawolf to the Infrastructure segment. The results for the three months ended March 31, 2021 have been retroactively adjusted to reflect this change.

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, 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):
Three months ended March 31, 2022 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
Revenue from external customers $ 23,009  $ 23,630  $ 8,347  $ 2,852  $ 4,460  $ —  $ 62,298 
Intersegment revenues —  244  832  3  272  (1,351) — 
Total revenue 23,009  23,874  9,179  2,855  4,732  (1,351) 62,298 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 18,887  21,839  7,788  2,372  3,594  —  54,480 
Intersegment cost of revenues 16  1,031  —  160  70  (1,277) — 
Total cost of revenue 18,903  22,870  7,788  2,532  3,664  (1,277) 54,480 
Selling, general and administrative 4,645  2,039  828  292  864  —  8,668 
Depreciation, depletion, amortization and accretion 4,314  6,444  1,795  1,680  2,934  —  17,167 
Operating loss (4,853) (7,479) (1,232) (1,649) (2,730) (74) (18,017)
Interest expense, net 1,542  371  162  104  170  —  2,349 
Other (income) expense, net (9,587) (49) (79) —  478  —  (9,237)
Income (loss) before income taxes $ 3,192  $ (7,801) $ (1,315) $ (1,753) $ (3,378) $ (74) $ (11,129)
Three months ended March 31, 2021 Infrastructure Well Completion Sand Drilling All Other Eliminations Total
Revenue from external customers $ 30,200  $ 22,901  $ 8,705  $ 919  $ 4,079  $ —  $ 66,804 
Intersegment revenues —  54  —  14  640  (708) — 
Total revenue 30,200  22,955  8,705  933  4,719  (708) 66,804 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 27,377  9,003  5,862  1,604  4,234  —  48,080 
Intersegment cost of revenues 45  394  —  —  269  (708) — 
Total cost of revenue 27,422  9,397  5,862  1,604  4,503  (708) 48,080 
Selling, general and administrative 3,739  10,612  2,049  422  1,202  —  18,024 
Depreciation, depletion, amortization and accretion 6,667  6,683  2,140  2,165  3,491  —  21,146 
Operating income (loss) (7,628) (3,737) (1,346) (3,258) (4,477) —  (20,446)
Interest expense, net 669  254  93  63  146  —  1,225 
Other (income) expense, net (6,486) 439  (794) (9) 242  —  (6,608)
Income (loss) before income taxes $ (1,811) $ (4,430) $ (645) $ (3,312) $ (4,865) $ —  $ (15,063)
Infrastructure Well Completion Sand Drilling All Other Eliminations Total
As of March 31, 2022:
Total assets $ 424,987  $ 53,000  $ 150,849  $ 27,316  $ 121,507  $ (75,212) $ 702,447 
As of December 31, 2021:
Total assets $ 427,626  $ 56,036  $ 156,519  $ 27,457  $ 129,202  $ (75,948) $ 720,892