Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.20.2
Reporting Segments
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Reporting Segments Reporting Segments
As of September 30, 2020, 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 income (loss) less impairment expense, as well as a qualitative basis, such as nature of the product and service offerings and types of customers.

Prior to the year ended December 31, 2019, the Company had three reportable segments, including infrastructure services, pressure pumping services and natural sand proppant services. Based on its assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2019, the Company changed its reportable segment presentation in 2019 to include its drilling services, which includes Bison Drilling and Field Services LLC, Bison Trucking LLC, Panther Drilling Systems LLC, Mako Acquisitions LLC and White Wing Tubular LLC, as its own reportable segment. The results of the entities were previously included in the reconciling column titled “All Other” in the table below for the three months ended September 30, 2019. As of September 30, 2020, the Company’s four reportable segments include infrastructure services (“Infrastructure”), pressure pumping services (“Pressure Pumping”), natural sand proppant services (“Sand”) and drilling services (“Drilling”). The results for the three and nine months ended September 30, 2019 have been retroactively adjusted to reflect his change in reportable segments.

During certain of the periods presented, the Infrastructure segment provided electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in Puerto Rico and the northeast, southwest and midwest portions of the United States. The Pressure Pumping segment provides hydraulic fracturing and water transfer services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania, Eagle Ford and Permian Basins in Texas 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 coil tubing services, flowback services, cementing services, acidizing services, equipment rental services, full service transportation, crude oil hauling services, remote accommodation, oilfield equipment manufacturing and infrastructure engineering and design services. 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 labeled "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 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 September 30, 2020 Infrastructure Pressure Pumping Sand Drilling All Other Eliminations Total
Revenue from external customers $ 44,009  $ 15,738  $ 6,031  $ 1,193  $ 3,563  $ —  $ 70,534 
Intersegment revenues —  53  —  26  672  (751) — 
Total revenue 44,009  15,791  6,031  1,219  4,235  (751) 70,534 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 29,074  6,881  3,784  1,964  4,226  —  45,929 
Intersegment cost of revenues 162  449  26  —  114  (751) — 
Total cost of revenue 29,236  7,330  3,810  1,964  4,340  (751) 45,929 
Selling, general and administrative 7,377  1,744  1,033  382  1,644  —  12,180 
Depreciation, depletion, amortization and accretion 7,589  7,196  2,693  2,323  3,331  —  23,132 
Operating loss (193) (479) (1,505) (3,450) (5,080) —  (10,707)
Interest expense, net 628  269  54  60  87  —  1,098 
Other (income) expense, net (9,204) (1,156) 1,792  20  (494) —  (9,042)
Income (loss) before income taxes $ 8,383  $ 408  $ (3,351) $ (3,530) $ (4,673) $ —  $ (2,763)

Three months ended September 30, 2019 Infrastructure Pressure Pumping Sand Drilling All Other Eliminations Total
Revenue from external customers $ 37,289  $ 43,887  $ 12,634  $ 6,065  $ 13,542  $ —  $ 113,417 
Intersegment revenues —  725  5,727  58  417  (6,927) — 
Total revenue 37,289  44,612  18,361  6,123  13,959  (6,927) 113,417 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 36,940  33,059  18,547  7,203  15,385  —  111,134 
Intersegment cost of revenues —  6,054  326  185  362  (6,927) — 
Total cost of revenue 36,940  39,113  18,873  7,388  15,747  (6,927) 111,134 
Selling, general and administrative 7,322  3,669  1,314  910  1,208  —  14,423 
Depreciation, depletion, amortization and accretion 7,953  10,176  4,022  3,096  4,544  —  29,791 
Impairment of goodwill —  —  —  —  3,194  —  3,194 
Impairment of other long-lived assets —  —  —  —  3,348  —  3,348 
Operating loss (14,926) (8,346) (5,848) (5,271) (14,082) —  (48,473)
Interest expense, net 599  316  43  220  220  —  1,398 
Other (income) expense, net (6,239) (3) 99  (100) (125) —  (6,368)
Loss before income taxes $ (9,286) $ (8,659) $ (5,990) $ (5,391) $ (14,177) $ —  $ (43,503)
Nine months ended September 30, 2020 Infrastructure Pressure Pumping Sand Drilling All Other Eliminations Total
Revenue from external customers $ 100,294  $ 74,549  $ 22,421  $ 7,166  $ 23,596  $ —  $ 228,026 
Intersegment revenues —  1,435  95  107  2,026  (3,663) — 
Total revenue 100,294  75,984  22,516  7,273  25,622  (3,663) 228,026 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 81,389  41,833  20,465  9,627  23,274  —  176,588 
Intersegment cost of revenues 197  1,410  355  151  1,550  (3,663) — 
Total cost of revenue 81,586  43,243  20,820  9,778  24,824  (3,663) 176,588 
Selling, general and administrative 19,711  5,443  3,641  2,777  5,105  —  36,677 
Depreciation, depletion, amortization and accretion 23,339  23,373  7,353  7,900  11,165  —  73,130 
Impairment of goodwill —  53,406  —  —  1,567  —  54,973 
Impairment of other long-lived assets —  4,203  —  326  8,368  —  12,897 
Operating loss (24,342) (53,684) (9,298) (13,508) (25,407) —  (126,239)
Interest expense, net 2,105  907  167  473  555  —  4,207 
Other (income) expense, net (24,289) (2,444) 1,753  (251) (490) —  (25,721)
Loss before income taxes $ (2,158) $ (52,147) $ (11,218) $ (13,730) $ (25,472) $ —  $ (104,725)

Nine months ended September 30, 2019 Infrastructure Pressure Pumping Sand Drilling All Other Eliminations Total
Revenue from external customers $ 187,831  $ 217,456  $ 66,820  $ 27,091  $ 58,177  $ —  $ 557,375 
Intersegment revenues —  3,936  29,795  484  1,870  (36,085) — 
Total revenue 187,831  221,392  96,615  27,575  60,047  (36,085) 557,375 
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 140,768  157,106  81,475  29,030  59,841  —  468,220 
Intersegment cost of revenues 1  31,388  2,513  686  1,557  (36,145) — 
Total cost of revenue 140,769  188,494  83,988  29,716  61,398  (36,145) 468,220 
Selling, general and administrative 19,874  9,544  4,214  3,117  4,464  —  41,213 
Depreciation, depletion, amortization and accretion 23,490  30,244  11,423  9,866  13,489  —  88,512 
Impairment of goodwill —  —  —  —  3,194  —  3,194 
Impairment of other long-lived assets —  —  —  —  3,348  —  3,348 
Operating income (loss) 3,698  (6,890) (3,010) (15,124) (25,846) 60  (47,112)
Interest expense, net 1,024  965  145  679  659  —  3,472 
Other (income) expense, net (35,108) 5  67  (122) 214  —  (34,944)
Income (loss) before income taxes $ 37,782  $ (7,860) $ (3,222) $ (15,681) $ (26,719) $ 60  $ (15,640)

Infrastructure Pressure Pumping Sand Drilling All Other Eliminations Total
As of September 30, 2020:
Total assets $ 414,164  $ 123,609  $ 176,577  $ 49,195  $ 114,158  $ (46,604) $ 831,099 
As of December 31, 2019:
Total assets $ 420,285  $ 175,259  $ 190,382  $ 61,545  $ 142,731  $ (37,817) $ 952,385