Core Viewpoint - Mammoth Energy Services, Inc. will release its second quarter financial results for 2025 on August 8, 2025, and will hold a conference call to discuss these results [1][2]. Company Overview - Mammoth Energy Services is an integrated, growth-oriented company focused on providing products and services primarily in the oil and natural gas and infrastructure industries [3]. - The company offers a variety of services including rental services, infrastructure services, natural sand proppant services, accommodation services, and drilling services [3]. - The rental services segment provides equipment for oilfield, construction, and aviation activities [3]. - Infrastructure services include engineering, design, and fiber optic services for the utility industry [3]. - Natural sand proppant services involve mining, processing, and selling natural sand proppant for hydraulic fracturing [3]. - Remote accommodation services offer housing, kitchen, dining, and recreational facilities for workers in remote areas [3]. - Drilling services focus on directional drilling for oilfield operators [3].

Cautionary Note Regarding Forward-Looking Statements [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements based on management's current expectations, estimates, and assumptions. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those detailed in the company's 10-K. Actual results may differ materially from those projected - Forward-looking statements cover a wide range of topics, including customer capital expenditures, oil and gas price volatility, the impact of recent divestitures, employee retention, economic conditions, and the ability to receive payments from the PREPA settlement[8](index=8&type=chunk) - The company cautions readers that these statements are identifiable by words like 'may,' 'expect,' 'plan,' 'believe,' and 'anticipate,' and are subject to risks that are difficult to predict and often beyond the company's control[9](index=9&type=chunk)[10](index=10&type=chunk) - The company does not intend to publicly update or revise any forward-looking statements, which speak only as of the date of this report[10](index=10&type=chunk) PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025. It includes the balance sheets, statements of operations, changes in equity, and cash flows, along with detailed notes. The company reported a net loss of **$0.5 million**, a significant improvement from the prior year, driven by a **45% increase** in revenue [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $374.4 million and total liabilities were $121.8 million, compared to $384.0 million and $131.2 million, respectively, at December 31, 2024. The decrease in assets was primarily driven by depreciation and reclassification of drilling rigs to assets held for sale. Total equity remained relatively stable at $252.5 million Key Balance Sheet Data (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $186,573 | $188,587 | | **Total Assets** | $374,354 | $384,031 | | **Total Current Liabilities** | $105,026 | $114,507 | | **Total Liabilities** | $121,843 | $131,213 | | **Total Equity** | $252,511 | $252,818 | - The company classified **$5.8 million** of drilling rig assets as 'Assets held for sale' as of **March 31, 2025**[14](index=14&type=chunk)[64](index=64&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the three months ended March 31, 2025, the company generated total revenue of $62.5 million, a 45% increase from $43.2 million in the same period of 2024. This led to a significantly reduced net loss of **$0.5 million** ($0.01 per share), compared to a net loss of **$11.8 million** ($0.25 per share) in Q1 2024 Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenue** | $62,465 | $43,189 | | **Operating Income (Loss)** | $509 | $(12,032) | | **Net Loss** | $(537) | $(11,811) | | **Net Loss Per Share (diluted)** | $(0.01) | $(0.25) | - A key driver of improved operating results was a **$4.0 million** gain on the disposal of assets, compared to a **$1.2 million** gain in the prior-year period[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $2.7 million in Q1 2025, a significant decrease from $47.3 million in Q1 2024, primarily due to a large collection of accounts receivable in the prior year. Net cash used in investing activities increased to $3.0 million due to higher equipment purchases. Net cash used in financing activities decreased to $3.8 million from $48.5 million, as the prior year included a $46.8 million payment on a financing transaction Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,711 | $47,349 | | **Net Cash from Investing Activities** | $(2,993) | $(1,102) | | **Net Cash from Financing Activities** | $(3,798) | $(48,489) | | **Net Decrease in Cash** | $(4,075) | $(2,277) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical details on accounting policies and financial items. Key disclosures include the settlement with PREPA, which has a remaining receivable of **$20.0 million**; segment performance, showing strong revenue growth in Well Completion; debt structure, with the term facility paid off and the revolver undrawn; and significant subsequent events, including the **$108.7 million** divestiture of certain infrastructure businesses and an **$11.5 million** aircraft purchase - As of **March 31, 2025**, PREPA owes the company a final payment of **$20.0 million** under the Settlement Agreement, which is payable following the effective date of PREPA's bankruptcy plan of adjustment[36](index=36&type=chunk) - On April 11, 2025, the company sold its subsidiaries 5 Star Electric, Higher Power Electrical, and Python Equipment for an aggregate price of approximately **$108.7 million**. The results of these divested entities will be reported as discontinued operations starting in Q2 2025[135](index=135&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) - The company's revolving credit facility was undrawn at **March 31, 2025**, with **$22.7 million** of borrowing capacity. The term credit facility with Wexford was paid in full and terminated in October 2024[76](index=76&type=chunk)[82](index=82&type=chunk) - On April 3, 2025, the company's subsidiary, Cobra Aviation, purchased eight small passenger aircraft for approximately **$11.5 million**[140](index=140&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 45% year-over-year revenue growth to increased activity across its Well Completion, Infrastructure, and Natural Sand Proppant segments. The Well Completion segment saw a **161%** revenue surge due to a **118%** increase in stages completed. The company's liquidity was significantly bolstered post-quarter-end by the **$108.7 million** sale of certain infrastructure assets. Management plans to deploy this capital for accretive returns and estimates total 2025 capital expenditures at **$12 million** Segment Revenue Performance (in thousands) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Well Completion Services | $20,921 | $8,034 | +161% | | Infrastructure Services | $30,725 | $25,038 | +23% | | Natural Sand Proppant Services | $6,739 | $4,307 | +56% | - The improvement in net loss from **$(11.8) million** in Q1 2024 to **$(0.5) million** in Q1 2025 was primarily due to increased utilization across key service lines[155](index=155&type=chunk) - As of May 2, 2025, following the asset sale, the company had unrestricted cash of **$135.4 million** and available borrowing capacity of **$67.5 million** under its revolving credit facility[181](index=181&type=chunk) - The company estimates total capital expenditures for 2025 will be approximately **$12 million** for its existing entities[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to several market risks, primarily the volatility of oil and natural gas prices which influences demand for its services. Other risks include interest rate fluctuations on its variable-rate credit facility (currently undrawn), foreign currency risk from its Canadian operations, and significant customer credit risk, highlighted by a **$20.0 million** receivable from PREPA, which is in bankruptcy - The business is highly dependent on the activity levels of the U.S. oil and natural gas industry, which are influenced by commodity prices and other factors beyond the company's control[211](index=211&type=chunk) - The company has foreign currency risk from its Canadian operations. At **March 31, 2025**, it held **C$3.1 million** in Canadian accounts[216](index=216&type=chunk) - A significant customer credit risk exists with PREPA, which owes the company **$20.0 million** and is currently in bankruptcy proceedings[218](index=218&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of **March 31, 2025**. There were no material changes to the company's internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of **March 31, 2025**[222](index=222&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[223](index=223&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and regulatory matters in the ordinary course of business. Management does not expect any pending litigation to have a material adverse effect, except as disclosed in Note 18 of the financial statements - Details regarding significant litigation are provided in Note 18, 'Commitments and Contingencies,' of the financial statements[225](index=225&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - The company's operations continue to be subject to the risk factors disclosed in its 2024 Form 10-K[226](index=226&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company's mining operations are subject to the Federal Mine Safety and Health Act. Required disclosures regarding mine safety violations are included as Exhibit 95.1 to this report - Information concerning mine safety violations as required by Section 1503(a) of the Dodd-Frank Act is included in Exhibit 95.1[229](index=229&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) During the first quarter ended March 31, 2025, none of the company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer trading plans were adopted or terminated during Q1 2025[230](index=230&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the 10-Q report, including corporate governance documents, material contracts, CEO/CFO certifications, and XBRL data files - Key exhibits filed include the Equity Interest Purchase Agreement for the recent divestiture (10.1), an amendment to the Revolving Credit Agreement (10.2), and CEO/CFO certifications (31.1, 31.2, 32.1, 32.2)[231](index=231&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $62,500,000, representing a 17% sequential increase from the fourth quarter of 2024 [12] - The net loss for the first quarter was $500,000, or a loss of $0.01 per diluted share, compared to a net loss of $15,500,000, or a loss of $0.32 per diluted share in the previous quarter [19] - Adjusted EBITDA was positive at $2,700,000 in the first quarter, compared to a negative $4,800,000 in the fourth quarter of 2024 [19] Business Line Data and Key Metrics Changes - Well Completions Services generated revenue of $20,900,000 with an average of 1.3 active pressure pumping fleets, up from $15,800,000 with 1.1 active fleets in the previous quarter [14] - The Sands segment sold approximately 189,000 tons of sand at an average price of $21.49 per ton, compared to 129,000 tons at $22.54 per ton in the fourth quarter [16] - Infrastructure Services revenue was $30,700,000 for the first quarter, a 10% sequential increase compared to the fourth quarter [17] Market Data and Key Metrics Changes - The company anticipates increased competition in gas basins due to strong fundamental support for natural gas, which may slightly squeeze margins in the near term [11] - There is uncertainty in the energy market stemming from tariffs, economic conditions, and geopolitical events, which have begun to affect oil prices [10] Company Strategy and Development Direction - The company is evaluating strategic opportunities to add accretive assets while maintaining a strong balance sheet [5] - Following the sale of three subsidiaries, the company will focus on engineering and fiber within the Infrastructure Services segment [17] - The company plans to strategically deploy capital to grow existing businesses that generate the greatest returns [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to drive value for shareholders despite market uncertainties [9] - The company expects steady completions activity in 2025, with potential upside into 2026 driven by natural gas demand [14] - Management highlighted the importance of cost management and operational efficiency in navigating market challenges [22] Other Important Information - As of March 31, 2025, the company had unrestricted cash of approximately $56,700,000, with total liquidity of about $79,400,000 [21] - Following recent transactions, the company had unrestricted cash of $135,400,000 and total liquidity of $202,900,000 as of May 2, 2025 [21] Q&A Session Summary Question: Can you discuss the uplift in volumes in the sand business and your outlook for the rest of the year? - Management noted strong demand in Western Canada for sand pricing and expects a stable environment to persist through 2025 [26] Question: What cost actions could be taken if there is potential weakness in the back half of the year? - Management indicated that the biggest lever for cost management would be on staffing and repairs and maintenance, with a history of effectively managing the cost structure [28]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $62,500,000, representing a 17% sequential increase from Q4 2024 [12] - Adjusted EBITDA was positive at $2,700,000 in Q1 2025, compared to a negative $4,800,000 in Q4 2024 [19] - Net loss for Q1 2025 was $500,000, or a loss of $0.01 per diluted share, compared to a net loss of $15,500,000, or a loss of $0.32 per diluted share in Q4 2024 [19] - Selling, general and administrative expenses decreased by approximately 34% sequentially to $6,500,000 in Q1 2025 [19] Business Line Data and Key Metrics Changes - Well Completions Services segment generated revenue of $20,900,000 with an average of 1.3 active pressure pumping fleets, up from $15,800,000 with 1.1 active fleets in Q4 2024 [14] - The Sands segment sold approximately 189,000 tons of sand at an average sales price of $21.49 per ton in Q1 2025, compared to 129,000 tons at $22.54 per ton in Q4 2024 [15] - Infrastructure Services segment revenue was $30,700,000 for Q1 2025, a 10% sequential increase compared to Q4 2024 [17] Market Data and Key Metrics Changes - The company anticipates increased competition in gas basins due to strong fundamental support for natural gas later in 2025 and into 2026 [11] - Macroeconomic uncertainty, tariff implications, and OPEC plus production increases have placed significant pressure on the energy market and commodity prices [15] Company Strategy and Development Direction - The company plans to evaluate strategic opportunities to add accretive assets while maintaining a strong balance sheet [5] - Following the sale of three subsidiaries, the company will focus on engineering and fiber within the Infrastructure Services segment [17] - The company aims to strategically deploy capital to grow existing businesses generating the greatest returns [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the first quarter results and noted incremental growth in key financial metrics [10] - There is recognition of uncertainty in the market stemming from tariffs, economic conditions, and geopolitical events [10] - The company expects to manage costs effectively in response to potential weakness in utilization [27] Other Important Information - As of March 31, 2025, the company had unrestricted cash on hand of approximately $56,700,000, with total liquidity of approximately $79,400,000 [21] - After completing the sale of three subsidiaries and purchasing eight aircraft, unrestricted cash on hand increased to $135,400,000 as of May 2, 2025 [21] Q&A Session Summary Question: Can you talk about the uplift in volumes in the sand business and your outlook for the rest of the year? - Management noted strong demand in Western Canada for sand pricing and expects a stable environment to persist through 2025 [25] Question: What cost actions could be taken in the event of potential weakness in the back half of the year? - Management indicated that the biggest lever for the pressure pumping business is on staffing and repairs and maintenance, and they have historically managed costs effectively [26][27]

Financial Performance - Total revenue for Q1 2025 was $62.5 million, a 44.8% increase from $43.2 million in Q1 2024 and a 17.5% increase from $53.2 million in Q4 2024[6] - Net loss for Q1 2025 was $0.5 million, or $0.01 per diluted share, significantly improved from a net loss of $11.8 million, or $0.25 per diluted share, in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $2.7 million, compared to $4.5 million in Q1 2024 and a negative $4.8 million in Q4 2024[7] - Total revenue for the three months ended March 31, 2025, was $62,465,000, representing a 44.7% increase from $43,189,000 in the same period of 2024[28] - Net loss for the first quarter of 2025 was $537,000, a significant improvement compared to a net loss of $11,811,000 in Q1 2024[28] - The company reported a comprehensive loss of $518,000 for Q1 2025, significantly lower than the comprehensive loss of $12,055,000 in Q1 2024[28] - The net loss for the three months ended March 31, 2025, was $537 million, a significant improvement compared to a net loss of $11,811 million in the same period of 2024[35] Revenue Segmentation - Infrastructure services segment generated $30.7 million in revenue for Q1 2025, up from $25.0 million in Q1 2024 and $27.9 million in Q4 2024[8] - Well completion services segment reported revenue of $20.9 million on 828 stages in Q1 2025, compared to $8.0 million on 380 stages in Q1 2024[9] - Natural sand proppant services segment revenue was $6.7 million in Q1 2025, an increase from $4.3 million in Q1 2024, with sales of approximately 189,000 tons at an average price of $21.49 per ton[10] - Revenue from external customers in the Completion segment for Q1 2025 was $20,875 million, compared to $7,925 million in Q1 2024, marking an increase of approximately 163.5%[32] - The Infrastructure segment generated $30,725 million in revenue for Q1 2025, up from $25,038 million in Q1 2024, representing a growth of about 22.5%[32] Expenses and Costs - Selling, general and administrative (SG&A) expenses decreased to $6.5 million in Q1 2025, down from $8.8 million in Q1 2024, representing 10% of total revenue[12][13] - The company incurred total costs of revenue of $53,392 million for Q1 2025, compared to $40,584 million in Q1 2024, reflecting an increase of approximately 31.5%[32] - Selling, general and administrative expenses for Q1 2025 were $6,541 million, compared to $8,782 million in Q1 2024, indicating a reduction of about 25.4%[32] - The company’s interest expense and financing charges for Q1 2025 were netted at $153 million, a significant decrease from $8,137 million in Q1 2024, showing improved financial management[35] Liquidity and Capital Management - As of March 31, 2025, the company had total liquidity of $79.4 million, including $56.7 million in unrestricted cash[14] - The company completed the sale of three infrastructure subsidiaries for $108.7 million, enhancing its cash position to approximately $155 million[4] - The company plans to continue evaluating strategic opportunities to deploy its capital for attractive returns and value appreciation[4] Asset and Liability Management - Total current assets decreased slightly to $186,573,000 from $188,587,000 as of December 31, 2024[24] - Total liabilities decreased to $121,843,000 from $131,213,000 at the end of 2024, indicating improved financial health[24] - Cash and cash equivalents at the end of the period were $56,650,000, down from $60,967,000 at the end of 2024[24] - The company had total equity of $252,511,000 as of March 31, 2025, slightly down from $252,818,000 at the end of 2024[25] Operational Efficiency - Operating income for the first quarter was $509,000, compared to an operating loss of $12,032,000 in the same quarter of the previous year[28] - The company reported an operating income of $509 million for Q1 2025, compared to an operating loss of $12,032 million in Q1 2024, indicating a substantial improvement in operational efficiency[32] - Cash flows from operating activities provided $2,711,000, a decrease from $47,349,000 in the same quarter of the previous year[30]

Financial Highlights - Mammoth Energy Services reported Q1 2025 revenue of $62.5 million, a 17% sequential increase[15] - The company has a strong balance sheet with approximately $155 million in cash on hand as of May 2, 2025, and is debt-free[15] - The current market capitalization is $125.1 million, with an appraised value of property and equipment at $149 million[18] Segment Performance (Q1 2025) - Well Completions contributed $20.9 million, representing 33.5% of total revenue[23, 24] - Infrastructure Services generated $30.7 million, accounting for 49.2% of total revenue[23, 24] - Natural Sand and Proppant Services brought in $6.7 million, which is 10.8% of the total revenue[23, 24] - Other Services accounted for $5.9 million, or 9.4% of the total revenue[23, 24] Sand Proppant Services - The company sold approximately 189,000 tons of sand in Q1 2025, compared to 129,000 tons in Q4 2024[36]

Company Announcement - Mammoth Energy Services, Inc. will disclose its 2025 first quarter financial results before the market opens on May 7, 2025 [1] - A conference call and webcast to discuss the first quarter results is scheduled for the same day at 11:00 a.m. Eastern Time [1] Conference Call Details - The conference call can be accessed by dialing 1-201-389-0872 or via the internet at the provided link [1] - A replay of the call will be available until May 14, 2025, and can be accessed using the specified passcode [1] Company Overview - Mammoth Energy Services is an integrated, growth-oriented energy services company focused on North American onshore unconventional oil and natural gas reserves [2] - The company offers a suite of services including well completion services, infrastructure services, and natural sand and proppant services [2]

Business Segments and Operations - The company operates in three reportable segments: well completion services, infrastructure services, and natural sand proppant services, with a focus on organic growth and accretive acquisitions [23]. - As of December 31, 2024, the pressure pumping business included six high-pressure fleets with a total capacity of 310,000 horsepower, and two fleets were active in the northeast region [29]. - The company owns a fleet of 39 trucks for sand hauling services as of December 31, 2024 [30]. - The natural sand proppant business mines, processes, and sells frac sand, which is widely used in U.S. unconventional oil and gas wells [43]. - The company’s processing plants produce a range of frac sand sizes, customizable to meet specific well demands, with operations in Wisconsin [44]. - The company provides logistics solutions for frac sand products, primarily shipping by rail to various basins including the Permian Basin and Utica Shale [45]. - As of December 31, 2024, the company owned four Measurement-While-Drilling (MWD) kits and 89 mud motors, performing directional drilling services in multiple basins [49]. - The remote accommodations business had a capacity of 764 rooms, with an average utilization of 216 rooms per night during the year ended December 31, 2024 [52]. Financial Performance and Customer Base - The company reported a decline in the number of customers from approximately 410 in 2022 to 259 in 2024, indicating a significant reduction in its customer base [76]. - The top five customers accounted for approximately 34% of the company's revenue in 2024, down from 36% in 2022, highlighting a slight decrease in revenue concentration [76]. - The average oil price for 2024 was $75.79 per barrel, with fluctuations between a low of $65.75 and a high of $86.91, impacting the company's oilfield services [74]. - Natural gas prices averaged $2.41 per MMBtu in 2024, with a low of $1.58 and a high of $3.95, contributing to lower utilization and margins for oilfield services [74]. - The company maintained unrestricted cash of $61.0 million and had no outstanding debt as of December 31, 2024, reflecting a conservative balance sheet strategy [74]. - As of December 31, 2024, $20.0 million remained outstanding from PREPA, which is subject to bankruptcy proceedings, potentially impacting the company's financial condition [139]. Market Conditions and Demand - Demand for natural sand proppant was adversely impacted in 2023 by wildfires in Canada and declining crude oil and natural gas prices, leading to suppressed activity throughout 2024 [66]. - The company expects 2025 completions activity to be steady, with potential upside driven by incremental demand associated with natural gas [64]. - The company experienced persistent challenges in its well completion business due to reduced demand, particularly in the Utica and Marcellus Shale natural gas plays [142]. - The cyclicality of the oil and natural gas industry may cause significant fluctuations in the company's operating results, influenced by oil and natural gas price volatility [145]. - The ongoing war in Ukraine and instability in the Middle East may increase volatility in oil and natural gas prices, adversely impacting the oilfield services industry [136]. Regulatory and Environmental Compliance - Compliance with environmental regulations may require costly measures, and changes in laws could materially affect operations and financial position [94]. - The company handles hazardous and non-hazardous wastes under the Resource Conservation and Recovery Act, which imposes strict compliance requirements [95]. - The EPA may adopt more stringent waste handling requirements, potentially increasing costs for the company [96]. - The Clean Water Act and related regulations impose strict controls on pollutant discharges, affecting operational costs and permitting processes [100]. - The company’s operations are subject to extensive environmental, health, and safety laws, which may result in substantial liability [132]. - The EPA's final rule aims for a 95% reduction in volatile organic compounds emissions from hydraulically-fractured wells constructed or refractured after January 1, 2015 [110]. - The company may face increased costs and operational restrictions due to climate change regulations and extreme weather conditions [107]. Strategic Initiatives and Growth - The company continues to explore opportunities to expand its industrial business lines, including fiber optic services and equipment manufacturing [21]. - The company aims to expand its energy infrastructure business in response to increased demand in geographic areas where it currently operates [75]. - The company intends to pursue selected, accretive acquisitions to complement organic growth and enhance its portfolio of products and services [75]. - The company is pursuing selected, accretive acquisitions of complementary assets, businesses, and technologies, but faces risks related to integration and financing [199]. - Growth in accordance with the business plan could strain financial, technical, operational, and management resources, impacting the ability to execute the business plan [201]. Workforce and Diversity - As of December 31, 2024, the company had 639 full-time employees, with over 9% identifying as women and over 13% as ethnic minorities [124][125]. - The operational division heads have an average of over 32 years of oilfield services experience, enhancing the company's ability to provide innovative customer service [73]. - The company actively promotes diversity and inclusion, with one of five board members being ethnically diverse [125]. Risks and Challenges - The company may experience losses in excess of recorded reserves for receivables, which could materially affect its financial condition and cash flows [135]. - The company faces risks related to supply chain disruptions, including shortages and delays in obtaining specialized equipment and parts, which could adversely affect operations [158]. - The company may face difficulties in managing growth through acquisitions, which could adversely affect its financial condition and results of operations [130]. - The company relies on a few key employees, and their absence could adversely affect its business operations [130]. - The competitive landscape in the frac sand market is challenging, with larger producers potentially impacting pricing and demand [174]. - Increasing transportation and related costs could adversely affect the company's operations, as these expenses comprise a significant component of the total delivered cost of frac sand sales [178]. - The company faces challenges in employing and retaining skilled workers, which could diminish capacity and profitability, as well as impair growth potential [190]. Financial and Operational Constraints - The company’s revolving credit facility imposes restrictions that may affect its ability to operate successfully, including limitations on incurring additional indebtedness and paying dividends [141]. - The company has not hedged interest rate exposure on floating rate debt, leading to potential difficulties in making interest payments if rates increase [204]. - The company derives a portion of its infrastructure services revenue from fixed-price contracts, which may lead to reduced profitability if actual costs exceed estimates [160]. - The timing of new contracts and the termination of existing contracts can lead to unpredictable fluctuations in cash flows and financial results [165]. - Delays in government appropriations may negatively impact the company's energy infrastructure projects and expose it to credit risk [168].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $53.2 million, a 33% sequential increase from $40 million in Q3 2024 [21] - Full year 2024 total revenue was $187.9 million, down from $309.5 million in 2023, primarily due to decreased utilization in well completion services [21][22] - Net loss for Q4 2024 was $15.5 million, or a loss of $0.32 per diluted share, while the full year net loss was $207.3 million, or a loss of $4.31 per diluted share [27] - Adjusted EBITDA for Q4 2024 was a negative $4.8 million, improving from a negative $6.4 million in Q3 2024 [28] Business Line Data and Key Metrics Changes - Infrastructure services revenue for Q4 2024 was $27.9 million, slightly up from $26 million in Q3 2024, with full year revenue flat at $110.4 million compared to $110.5 million in 2023 [23] - Well completion services generated $15.8 million in Q4 2024, with an average of 1.1 fleets utilized [25] - Sand division sold 129,000 tons of sand in Q4 2024 at an average price of $22.54 per ton, down from 163,000 tons at $22.89 in Q3 2024 [26] Market Data and Key Metrics Changes - The company noted improved pressure pumping utilization and strong demand across various businesses, including engineering, fiber, and T&D services [10] - There are significant bidding opportunities in the market related to engineering fiber transmission and distribution [14] Company Strategy and Development Direction - The company aims to unlock value for shareholders while maintaining a strong balance sheet and evaluating strategic opportunities for accretive assets [11][12] - Strategic investments are being made to add equipment and crews in response to growing utility demand [15] - The focus for 2025 includes organic growth, particularly in infrastructure services, with potential for acquisitions if beneficial [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand implications for natural gas driven by LNG export capacity and electricity demand [22] - The company expects steady completions activity in 2025 with potential upside from natural gas demand [17] - Management emphasized disciplined capital stewardship and alignment of spending with customer demand [26] Other Important Information - The company had unrestricted cash of $61 million as of December 31, 2024, with total liquidity remaining strong and debt-free [32] - CapEx for Q4 2024 was approximately $6.1 million, with a budget of $12 million for 2025 focused on growth and maintenance [29] Q&A Session Summary Question: Where is the best growth potential for the infrastructure business? - Management indicated that most growth is currently organic, with increased demand from larger IOUs and potential for co-op involvement [38] Question: Can you provide details on the rental business and its growth drivers? - The rental business primarily serves E&P companies, with opportunities in the construction market and a broad portfolio of assets including helicopters [42] Question: What is the outlook for the sand business in 2025? - Management noted stabilized demand and the ability to expand capacity as key drivers for growth in the sand business [44] Question: Can you break down the CapEx outlook for 2025? - Approximately half of the $12 million CapEx budget is allocated to growing the rental business, with about $5 million for pressure pumping upgrades [46] Question: What are the primary focuses for the company moving forward? - The focus includes rightsizing the company, evaluating existing businesses, and exploring potential acquisitions now that the company has cash available [48]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $53.2 million, a 33% sequential increase from $40 million in Q3 2024 [21] - Full year 2024 total revenue was $187.9 million, down from $309.5 million in 2023 [21] - Net loss for Q4 2024 was $15.5 million, or a loss of $0.32 per diluted share, while the full year net loss was $207.3 million, or a loss of $4.31 per diluted share [27] - Adjusted EBITDA for Q4 2024 was a negative $4.8 million, an improvement from a negative $6.4 million in Q3 2024 [28] Business Line Data and Key Metrics Changes - Infrastructure services revenue for Q4 2024 was $27.9 million, a slight increase from $26 million in Q3 2024, with full year revenue flat at $110.4 million compared to $110.5 million in 2023 [23] - Well completion services generated $15.8 million in Q4 2024, with approximately 1.1 fleets utilized on average [25] - Sand division sold 129,000 tons of sand in Q4 2024 at an average price of $22.54 per ton, down from 163,000 tons at $22.89 in Q3 2024 [26] Market Data and Key Metrics Changes - The company noted improved pressure pumping utilization and strong demand across various businesses, including engineering, fiber, and T&D services [10] - There are significant bidding opportunities in the market related to engineering fiber transmission and distribution [14] - The company expects steady completions activity in 2025, with potential upside driven by natural gas demand and LNG export capacity [17] Company Strategy and Development Direction - The company aims to unlock value for shareholders while maintaining a strong balance sheet and evaluating strategic opportunities for accretive assets [11][12] - The focus is on organic growth, with an increase of 25% in crew count to meet growing utility demand [13] - Strategic investments are being made in infrastructure services to capitalize on favorable market conditions [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand for natural gas and the potential for improved financial performance in 2025 [22] - The company is focused on efficient cost management and aligning spending with customer demand [18] - Management emphasized the importance of disciplined operations and strategic capital allocation to unlock shareholder value [35] Other Important Information - The company had unrestricted cash of $61 million as of December 31, 2024, with total liquidity remaining strong and debt-free [32] - CapEx for Q4 2024 was approximately $6.1 million, with a budget of $12 million for 2025 primarily for growth in the equipment rentals business [29] Q&A Session Summary Question: Where is the best growth potential for the infrastructure business? - Management indicated that most growth is currently through organic means, with increased demand from larger IOUs and potential involvement with co-ops [38] Question: Can you provide details on the rental business and its growth drivers? - The rental business primarily serves E&P companies and other service companies, with opportunities in the construction market [42] Question: What is the outlook for the sand business in 2025? - Management noted stabilized demand and the ability to expand capacity as key drivers for growth in the sand business [44] Question: Can you break down the CapEx outlook for 2025? - Approximately half of the $12 million CapEx budget is allocated to growing the rental business, with about $5 million for pressure pumping upgrades [46] Question: What are the primary focuses for the company moving forward? - The focus is on rightsizing the company, evaluating existing businesses, and exploring potential acquisitions [48]