Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.23.2
Reporting Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of June 30, 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 June 30, 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 June 30, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 27,466  $ 28,315  $ 11,567  $ 3,329  $ 4,754  $ —  $ 75,431 
Intersegment revenues 118  —  —  6  365  (489) — 
Total revenue 27,584  28,315  11,567  3,335  5,119  (489) 75,431 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 23,594  23,292  7,067  2,725  3,574  —  60,252 
Intersegment cost of revenues 227  9  —  108  145  (489) — 
Total cost of revenue 23,821  23,301  7,067  2,833  3,719  (489) 60,252 
Selling, general and administrative 1,776  6,385  954  337  905  —  10,357 
Depreciation, depletion, amortization and accretion 4,500  2,436  2,374  1,284  2,056  —  12,650 
Gains on disposal of assets, net —  —  —  —  (473) —  (473)
Operating (loss) income (2,513) (3,807) 1,172  (1,119) (1,088) —  (7,355)
Interest expense, net 824  1,869  149  170  208  —  3,220 
Other expense (income), net 1  (8,557) (4) —  221  —  (8,339)
(Loss) income before income taxes $ (3,338) $ 2,881  $ 1,027  $ (1,289) $ (1,517) $ —  $ (2,236)
Three months ended June 30, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 43,574  $ 25,587  $ 13,841  $ 1,952  $ 4,724  $ —  $ 89,678 
Intersegment revenues 243  —  1,618  19  306  (2,186) — 
Total revenue 43,817  25,587  15,459  1,971  5,030  (2,186) 89,678 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 31,486  21,808  9,707  2,034  3,751  —  68,786 
Intersegment cost of revenues 1,985  15  —  160  103  (2,263) — 
Total cost of revenue 33,471  21,823  9,707  2,194  3,854  (2,263) 68,786 
Selling, general and administrative 1,884  4,443  870  277  732  —  8,206 
Depreciation, depletion, amortization and accretion 6,747  4,211  2,058  1,651  2,809  —  17,476 
Gains on disposal of assets, net (157) (863) (16) —  (1,907) —  (2,943)
Operating income (loss) 1,872  (4,027) 2,840  (2,151) (458) 77  (1,847)
Interest expense, net 422  1,755  178  121  183  —  2,659 
Other income, net —  (10,062) (3) —  (79) —  (10,144)
Income (loss) before income taxes $ 1,450  $ 4,280  $ 2,665  $ (2,272) $ (562) $ 77  $ 5,638 
Six months ended June 30, 2023 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 94,644  $ 56,596  $ 24,009  $ 5,153  $ 11,349  $ —  $ 191,751 
Intersegment revenues 240  —  25  7  801  (1,073) — 
Total revenue 94,884  56,596  24,034  5,160  12,150  (1,073) 191,751 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 75,630  45,768  14,927  4,648  8,271  —  149,244 
Intersegment cost of revenues 704  20  —  217  132  (1,073) — 
Total cost of revenue 76,334  45,788  14,927  4,865  8,403  (1,073) 149,244 
Selling, general and administrative 4,268  10,595  1,458  650  1,769  —  18,740 
Depreciation, depletion, amortization and accretion 9,317  5,810  3,561  2,651  4,267  —  25,606 
Gains on disposal of assets, net —  (127) (16) —  (691) —  (834)
Operating income (loss) 4,965  (5,470) 4,104  (3,006) (1,598) —  (1,005)
Interest expense, net 1,753  3,714  305  330  407  —  6,509 
Other expense (income), net 1  (17,365) (6) —  407  —  (16,963)
Income (loss) before income taxes $ 3,211  $ 8,181  $ 3,805  $ (3,336) $ (2,412) $ —  $ 9,449 
Six months ended June 30, 2022 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 67,202  $ 48,596  $ 22,189  $ 4,804  $ 9,185  $ —  $ 151,976 
Intersegment revenues 489  —  2,450  22  576  (3,537) — 
Total revenue 67,691  48,596  24,639  4,826  9,761  (3,537) 151,976 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 53,325  40,695  17,495  4,406  7,345  —  123,266 
Intersegment cost of revenues 3,016  31  —  321  172  (3,540) — 
Total cost of revenue 56,341  40,726  17,495  4,727  7,517  (3,540) 123,266 
Selling, general and administrative 3,923  9,088  1,698  569  1,596  —  16,874 
Depreciation, depletion, amortization and accretion 13,191  8,525  3,852  3,331  5,744  —  34,643 
Gains on disposal of assets, net (206) (868) (91) —  (1,974) —  (3,139)
Operating (loss) income (5,558) (8,875) 1,685  (3,801) (3,122) 3  (19,668)
Interest expense, net 793  3,298  340  225  352  —  5,008 
Other (income) expense, net —  (19,644) (7) —  466  —  (19,185)
(Loss) income before income taxes $ (6,351) $ 7,471  $ 1,352  $ (4,026) $ (3,940) $ 3  $ (5,491)

Well Completion Infrastructure Sand Drilling All Other Eliminations Total
As of June 30, 2023:
Total assets $ 64,766  $ 453,656  $ 129,609  $ 18,916  $ 84,772  $ (58,956) $ 692,763 
As of December 31, 2022:
Total assets $ 82,897  $ 450,841  $ 129,467  $ 21,755  $ 120,164  $ (80,446) $ 724,678