Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

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Reporting Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of March 31, 2024, 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 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, 2024, 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. During the three months ended March 31, 2023, 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 to move Bison Trucking to the reconciling column titled “All Other”. The results for the three months ended March 31, 2023 have been retroactively adjusted to reflect these changes.

The Company also provided aviation services, equipment rental services, remote accommodations 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, 2024 Well Completion Infrastructure Sand Drilling All Other Eliminations Total
Revenue from external customers $ 8,159  $ 25,038  $ 4,307  $ 511  $ 5,174  $ —  $ 43,189 
Intersegment revenues 114  —  —  —  1,005  (1,119) — 
Total revenue 8,273  25,038  4,307  511  6,179  (1,119) 43,189 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 8,338  21,533  5,840  1,050  3,823  —  40,584 
Intersegment cost of revenues 218  25  —  2  874  (1,119) — 
Total cost of revenue 8,556  21,558  5,840  1,052  4,697  (1,119) 40,584 
Selling, general and administrative 1,073  5,617  1,031  212  849  —  8,782 
Depreciation, depletion, amortization and accretion 3,264  718  1,146  874  1,019  —  7,021 
Losses (gains) on disposal of assets, net 250  (483) —  2  (935) —  (1,166)
Operating (loss) income (4,870) (2,372) (3,710) (1,629) 549  —  (12,032)
Interest expense and financing charges, net 569  7,099  142  128  199  —  8,137 
Other (income) expense, net —  (10,258) (1) —  116  —  (10,143)
(Loss) income before income taxes $ (5,439) $ 787  $ (3,851) $ (1,757) $ 234  $ —  $ (10,026)
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  $ 1,355  $ 7,064  $ —  $ 116,320 
Intersegment revenues 121  —  25  —  450  (596) — 
Total revenue 67,300  28,280  12,467  1,355  7,514  (596) 116,320 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 52,037  22,476  7,860  1,466  5,154  —  88,993 
Intersegment cost of revenues 478  11  —  14  93  (596) — 
Total cost of revenue 52,515  22,487  7,860  1,480  5,247  (596) 88,993 
Selling, general and administrative 2,492  4,211  503  146  1,031  —  8,383 
Depreciation, depletion, amortization and accretion 4,817  3,374  1,187  1,229  2,349  —  12,956 
Gains on disposal of assets, net —  (127) (16) —  (218) —  (361)
Operating income (loss) 7,476  (1,665) 2,933  (1,500) (895) —  6,349 
Interest expense and financing charges, net 929  1,845  156  126  233  —  3,289 
Other (income) expense, net —  (8,808) (2) —  186  —  (8,624)
Income (loss) before income taxes $ 6,547  $ 5,298  $ 2,779  $ (1,626) $ (1,314) $ —  $ 11,684 
Well Completion Infrastructure Sand Drilling All Other Eliminations Total
As of March 31, 2024:
Total assets $ 49,068  $ 408,603  $ 119,196  $ 12,702  $ 65,943  $ (27,442) $ 628,070 
As of December 31, 2023:
Total assets $ 50,965  $ 462,429  $ 121,162  $ 13,492  $ 69,005  $ (18,574) $ 698,479