Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.23.1
Reporting Segments
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of March 31, 2023, the Company’s revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. 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, 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 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 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.

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 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, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 67,179  $ 28,280  $ 12,442  $ 1,824  $ 6,595  $ —  $ 116,320 
Intersegment revenues 121  —  25  1  437  (584) — 
Total revenue 67,300  28,280  12,467  1,825  7,032  (584) 116,320 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 52,037  22,476  7,860  1,922  4,698  —  88,993 
Intersegment cost of revenues 478  11  —  109  (14) (584) — 
Total cost of revenue 52,515  22,487  7,860  2,031  4,684  (584) 88,993 
Selling, general and administrative 2,492  4,211  503  313  864  —  8,383 
Depreciation, depletion, amortization and accretion 4,817  3,374  1,187  1,367  2,211  —  12,956 
Gains on disposal of assets, net —  (127) (16) —  (218) —  (361)
Operating income (loss) 7,476  (1,665) 2,933  (1,886) (509) —  6,349 
Interest expense, net 929  1,845  156  160  199  —  3,289 
Other (income) expense, net —  (8,808) (2) —  186  —  (8,624)
Income (loss) before income taxes $ 6,547  $ 5,298  $ 2,779  $ (2,046) $ (894) $ —  $ 11,684 
Three months ended March 31, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 23,630  $ 23,009  $ 8,347  $ 2,852  $ 4,460  $ —  $ 62,298 
Intersegment revenues 244  —  832  3  272  (1,351) — 
Total revenue 23,874  23,009  9,179  2,855  4,732  (1,351) 62,298 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 21,839  18,887  7,788  2,372  3,594  —  54,480 
Intersegment cost of revenues 1,031  16  —  160  70  (1,277) — 
Total cost of revenue 22,870  18,903  7,788  2,532  3,664  (1,277) 54,480 
Selling, general and administrative 2,039  4,645  828  292  864  —  8,668 
Depreciation, depletion, amortization and accretion 6,444  4,314  1,795  1,680  2,934  —  17,167 
Gains on disposal of assets, net (49) (5) (75) —  (67) —  (196)
Operating loss (7,430) (4,848) (1,157) (1,649) (2,663) (74) (17,821)
Interest expense, net 371  1,542  162  104  170  —  2,349 
Other (income) expense , net —  (9,582) (4) —  545  —  (9,041)
(Loss) income before income taxes $ (7,801) $ 3,192  $ (1,315) $ (1,753) $ (3,378) $ (74) $ (11,129)
Well Completion Infrastructure Sand Drilling All Other Eliminations Total
As of March 31, 2023:
Total assets $ 89,795  $ 455,956  $ 131,790  $ 19,534  $ 114,942  $ (80,521) $ 731,496 
As of December 31, 2022:
Total assets $ 82,897  $ 450,841  $ 129,467  $ 21,755  $ 120,164  $ (80,446) $ 724,678