[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section details various forward-looking statements and the risks that could cause actual results to differ from expectations [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and risks, such as divestitures, commodity price volatility, and the PREPA settlement, that could cause actual results to differ - Key factors that could affect actual results include the impact of recent divestitures of subsidiaries like 5 Star Electric and hydraulic fracturing equipment[10](index=10&type=chunk) - The company identifies volatility in oil and natural gas prices, actions by OPEC+, and general economic conditions as significant risks[10](index=10&type=chunk) - Potential delays or failure to receive the remaining payment under the settlement agreement with the Puerto Rico Electric Power Authority (PREPA) is noted as a forward-looking risk[10](index=10&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. 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 periods ended June 30, 2025, including balance sheets, statements of operations, changes in equity, cash flows, and comprehensive notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of **$364.2 million**, a decrease from **$384.0 million** at year-end 2024, primarily due to divestitures. Cash increased to **$127.3 million** from **$60.8 million**, while total liabilities decreased and total equity increased Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $127.3 | $60.8 | | Total current assets | $240.1 | $188.6 | | Total assets | $364.2 | $384.0 | | **Liabilities & Equity** | | | | Total current liabilities | $96.1 | $114.5 | | Total liabilities | $102.2 | $131.2 | | Total equity | $262.0 | $252.8 | [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 Q2 2025, the company reported a net income of **$8.8 million**, a significant improvement from a **$156.0 million** net loss in Q2 2024, driven by income from discontinued operations and absence of prior-year PREPA charges Q2 Statement of Operations Highlights (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $16.4 | $16.0 | | Operating Loss | $(36.4) | $(96.0) | | Net Loss from Continuing Operations | $(35.7) | $(155.6) | | Net Income (Loss) from Discontinued Operations | $44.5 | $(0.4) | | **Net Income (Loss)** | **$8.8** | **$(156.0)** | | **Net Income (Loss) per Share** | **$0.18** | **$(3.25)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by investing activities was **$88.9 million**, driven by **$111.2 million** from discontinued operations, resulting in a net cash increase of **$75.1 million** Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(9.8) | $40.5 | | Net cash provided by (used in) investing activities | $88.9 | $(4.5) | | Net cash used in financing activities | $(4.1) | $(50.0) | | **Net increase (decrease) in cash** | **$75.1** | **$(14.0)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial results, including strategic divestitures, a **$31.7 million** impairment on sand proppant assets, full repayment of the term credit facility, and updates on the PREPA settlement - On April 11, 2025, the company sold a portion of its infrastructure services entities for **$108.7 million**. On June 16, 2025, it sold all equipment from its hydraulic fracturing services for **$15.0 million**. These are reported as discontinued operations[30](index=30&type=chunk) - The company recognized a **$31.7 million** impairment expense on natural sand proppant assets at its Piranha and Muskie processing plants, which were reclassified as held for sale in Q2 2025[52](index=52&type=chunk)[77](index=77&type=chunk) - As of June 30, 2025, PREPA owes Cobra **$20.0 million** under the settlement agreement, payable after PREPA's bankruptcy plan becomes effective[42](index=42&type=chunk)[131](index=131&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift post-divestitures, reporting a Q2 2025 net income of **$8.8 million** (vs. **$156.0 million** loss in Q2 2024) driven by discontinued operations and improved liquidity - The company completed the sale of its distribution, transmission, and substation operations for **$108.7 million** and its hydraulic fracturing equipment for **$15.0 million**, shifting its strategic focus[157](index=157&type=chunk) Q2 2025 Financial Overview | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $16.4 million | $16.0 million | | Net Income (Loss) | $8.8 million | $(156.0) million | | Net Income (Loss) per Share | $0.18 | $(3.25) | | Adjusted EBITDA | $(2.8) million | $(164.6) million | - For the second half of 2025, management expects to generate an adjusted EBITDA loss from continuing operations of **$3.0 million** to **$4.0 million**[165](index=165&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased **2%** year-over-year to **$16.4 million**, driven by growth in Rental, Infrastructure, and Sand services, while operating loss decreased to **$36.4 million** from **$96.0 million** due to the absence of prior-year PREPA charges Q2 Revenue by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Rental services | $3.1 | $1.8 | +72% | | Infrastructure services | $5.4 | $4.5 | +20% | | Natural sand proppant services | $5.4 | $4.7 | +15% | | Accommodation services | $1.8 | $2.7 | -33% | - The company recognized a **$31.7 million** impairment expense on assets related to its natural sand proppant operations during Q2 2025[183](index=183&type=chunk) - Selling, general and administrative (SG&A) expenses decreased to **$5.3 million** in Q2 2025 from **$95.3 million** in Q2 2024, primarily due to an **$89.2 million** charge related to the PREPA settlement in the prior-year period[180](index=180&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly strengthened, with cash increasing to **$127.3 million** at June 30, 2025, and an undrawn revolving credit facility, while capital expenditures for 2025 are estimated at **$42.0 million** Liquidity Summary (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $127.3 | $60.8 | | Revolving credit facility borrowing base | $75.0 | $25.2 | - Capital expenditures for continuing operations totaled **$27.3 million** for the first six months of 2025, with a full-year estimate of approximately **$42.0 million**[247](index=247&type=chunk) - The term credit facility with Wexford was fully paid off and terminated on October 2, 2024[239](index=239&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies its primary market risks as being tied to the volatility of the U.S. oil and natural gas and utility infrastructure industries, including interest rate, foreign currency, and customer credit risks - The company is exposed to interest rate risk through its revolving credit facility, which has a variable interest rate[253](index=253&type=chunk) - Foreign currency risk exists due to the accommodation services segment generating revenue and incurring expenses in Canadian dollars. As of June 30, 2025, the company held **$2.8 million** in Canadian dollars[254](index=254&type=chunk) - Significant customer credit risk is highlighted, specifically the **$20.0 million** receivable due from PREPA, which is in bankruptcy proceedings[256](index=256&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Operating Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[261](index=261&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[262](index=262&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and refers to Note 18 for detailed disclosures, expecting no material adverse effect beyond what is disclosed - For detailed information on legal proceedings, the report refers to Note 18 of the unaudited condensed consolidated financial statements[264](index=264&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) The company's operations remain subject to risk factors previously disclosed in its Annual Report on Form 10-K, with no new or materially changed risks presented - The company's risk factors have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[265](index=265&type=chunk) [Item 4. Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company's operations are subject to the Federal Mine Safety and Health Act of 1977, with required safety violation information included in Exhibit 95.1 - Information regarding mine safety violations required by Section 1503(a) of the Dodd-Frank Act is included in Exhibit 95.1 to this Form 10-Q[268](index=268&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the 10-Q report, including purchase agreements for divestitures, credit agreement amendments, and officer certifications - Key exhibits filed include the Equity Interest Purchase Agreement for the T&D Transaction (Exhibit 10.3) and the Equipment Purchase Agreement for the Pressure Pumping Transaction (Exhibit 10.4)[273](index=273&type=chunk) - Certifications by the Chief Operating Officer and Chief Financial Officer pursuant to Sarbanes-Oxley Sections 302 and 906 are included as Exhibits 31.1, 31.2, 32.1, and 32.2[273](index=273&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for the second quarter of 2025 was $16.4 million, compared to $16 million in the same period a year ago, reflecting a modest increase [19] - The net loss for the quarter was $35.7 million, which included a non-cash impairment charge of $31.7 million, compared to a net loss of $155.6 million in the same quarter of 2024 [5][24] - Adjusted EBITDA from continuing operations was a loss of $2.8 million, an improvement from a loss of $164.6 million in the previous year [25] Business Line Data and Key Metrics Changes - Rental Services segment revenue increased by 72% to $3.1 million, driven by expanded aviation rental offerings [22] - Infrastructure Services segment revenue was $5.4 million, a 20% increase compared to the same quarter in 2024 [20] - Natural Sand Proppant Services generated $5.4 million in revenue, a 15% increase, although sales volumes rose while pricing declined by 6% [21] - Remote Accommodation segment revenue decreased to $1.8 million from $2.7 million in the same quarter last year [23] - Drilling segment revenue slightly increased to $743,000 from $736,000 year-over-year [24] Market Data and Key Metrics Changes - The company noted strong demand in the infrastructure space driven by macro tailwinds around data centers, AI, and nuclear developments [15] - The rental services segment saw a 33% increase in the number of equipment rented compared to the same period last year [14] Company Strategy and Development Direction - The company is focused on driving returns through improved internal execution, prioritizing asset utilization, margin expansion, and capital efficiency [6] - Strategic divestitures and acquisitions are part of the transformation strategy to enhance resilience and growth potential [7][11] - The company aims to remain active in M&A, evaluating opportunities that can unlock value while preserving balance sheet strength [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market, viewing it as primed with opportunities despite macroeconomic uncertainties [7] - The company plans to continue investing in quality assets or companies at attractive valuations to generate positive returns [11] - Future growth is expected to be supported by ongoing investments in the aviation sector and other rental services [35][50] Other Important Information - As of June 30, 2025, the company had unrestricted cash of approximately $127.3 million, with total liquidity around $194.8 million [27] - The company remains debt-free and plans to utilize its cash position for future growth investments [29] Q&A Session Summary Question: Growth potential in rental and accommodation services - Management highlighted that the majority of capital has been invested in the aviation sector, targeting IRRs of 25% to 35% [35] Question: Domestic versus Canadian sand sales and market evolution - The majority of sand sales have historically been to Western Canada, particularly the Montney region, with expectations for continued demand [37] Question: Context on aviation market supply-demand imbalances - Management noted favorable passenger travel and production delays at major manufacturers, creating demand in the aviation sector [41] Question: Thoughts on stock buybacks - The board approved a buyback, but execution has been limited due to blackout periods related to ongoing transactions [42] Question: Path to free cash flow - Management indicated that as litigation costs decrease, the current asset mix should help achieve free cash flow neutrality [46]

[Q2 2025 Financial and Operational Results](index=1&type=section&id=Mammoth%20Energy%20Services%2C%20Inc.%20Announces%20Second%20Quarter%202025%20Operational%20and%20Financial%20Results) [Management Commentary and Strategic Update](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Update) Management highlighted three Q2 2025 transactions, including asset sales and aviation fleet expansion, to reposition the company for growth - Executed three pivotal transactions to reposition the company's portfolio: sold infrastructure subsidiaries for **$108.7 million**, purchased **eight small passenger aircraft** for rental expansion, and sold hydraulic fracturing equipment for **$15 million**[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's strategy focuses on leveraging its robust cash position for value-enhancing transactions, accretive asset additions, and organic growth investments[5](index=5&type=chunk) [Financial Overview](index=1&type=section&id=Financial%20Overview) Q2 2025 saw total revenue increase slightly to **$16.4 million**, with net loss from continuing operations narrowing to **$35.7 million** Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Total Revenue (Continuing Ops) ($) | $16.4M | $16.0M | $15.6M | | Net Loss (Continuing Ops) ($) | ($35.7M) | ($155.6M) | ($1.6M) | | Diluted EPS (Continuing Ops) ($) | ($0.74) | ($3.24) | ($0.03) | | Adjusted EBITDA (Continuing Ops) ($) | ($2.8M) | ($164.6M) | ($1.7M) | [Segment Performance](index=1&type=section&id=Segment%20Performance) Q2 2025 segment performance was mixed, with growth in Rental and Infrastructure Services, but declines in Accommodation Services Segment Revenue and Adjusted EBITDA (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Revenue ($) | Q2 2024 Revenue ($) | Q2 2025 Adj. EBITDA ($) | Q2 2024 Adj. EBITDA ($) | | :--- | :--- | :--- | :--- | :--- | | Infrastructure Services | $5.4M | $4.5M | $0.2M | ($0.1M) | | Rental Services | $3.1M | $1.8M | $0.5M | $0.3M | | Natural Sand Proppant | $5.4M | $4.7M | ($1.2M) | ($1.1M) | | Accommodation Services | $1.8M | $2.7M | $0.2M | $0.8M | | Drilling Services | $0.7M | $0.7M | ($0.2M) | ($0.5M) | [Infrastructure Services](index=1&type=section&id=Infrastructure%20Services) Infrastructure Services revenue increased to **$5.4 million** in Q2 2025, driven by higher fiber optic activity - Revenue increased to **$5.4 million** in Q2 2025, up **20% YoY** from **$4.5 million** in Q2 2024[9](index=9&type=chunk) [Rental Services](index=2&type=section&id=Rental%20Services) Rental Services revenue grew substantially to **$3.1 million** in Q2 2025, driven by aviation rental expansion - Revenue increased **72% YoY** to **$3.1 million**, driven by the expansion of aviation rental offerings[10](index=10&type=chunk) [Natural Sand Proppant Services](index=2&type=section&id=Natural%20Sand%20Proppant%20Services) Natural Sand Proppant revenue reached **$5.4 million** in Q2 2025, with higher volumes offsetting lower pricing Sand Sales Performance | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Sand Sold (tons) | 242,000 | 141,000 | 189,000 | | Avg. Sales Price/ton ($) | $21.41 | $22.73 | $21.49 | [Accommodation Services](index=2&type=section&id=Accommodation%20Services) Accommodation Services revenue declined to **$1.8 million** in Q2 2025 due to lower average room utilization - Average room utilization dropped to **145 rooms** in Q2 2025, compared to **212** in Q2 2024, leading to lower revenue[12](index=12&type=chunk) [Drilling Services](index=2&type=section&id=Drilling%20Services) Drilling Services revenue remained stable at **$0.7 million** YoY, but increased significantly QoQ due to utilization - Revenue was flat YoY at **$0.7 million** but increased significantly QoQ from **$0.2 million** due to higher utilization[13](index=13&type=chunk) [Operating Expenses and Liquidity](index=2&type=section&id=Operating%20Expenses%20and%20Liquidity) SG&A expenses significantly decreased to **$5.3 million** in Q2 2025, while liquidity remained strong at **$194.8 million** - SG&A expense was **$5.3 million** in Q2 2025, a sharp decrease from **$95.3 million** in Q2 2024 due to a prior-year settlement charge[14](index=14&type=chunk) Liquidity Position as of June 30, 2025 | Metric | Amount ($) | | :--- | :--- | | Unrestricted Cash | $127.3M | | Revolving Credit Facility | Undrawn | | Available Borrowing Capacity | $67.5M | | **Total Liquidity** | **$194.8M** | [Capital Expenditures](index=3&type=section&id=Capital%20Expenditures) Capital expenditures significantly increased to **$26.9 million** in Q2 2025, primarily for aviation rental fleet expansion Capital Expenditures by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Rental services | $26,821 | $123 | | Infrastructure services | $0 | $266 | | Other Segments | $77 | $345 | | **Total** | **$26,898** | **$734** | [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements detail the company's position, reflecting increased cash from asset sales and a gain from discontinued operations [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of **$364.2 million** and cash increased to **$127.3 million** Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $127,250 | $60,845 | | Total current assets | $240,133 | $188,587 | | Total assets | $364,194 | $384,031 | | Total current liabilities | $96,101 | $114,507 | | Total liabilities | $102,156 | $131,213 | | Total equity | $262,038 | $252,818 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 operations show **$16.4 million** revenue, a **$31.7 million** impairment charge, and a **$44.5 million** gain from discontinued operations Q2 2025 Income Statement Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenue | $16,409 | $16,020 | | Impairment of long-lived assets | $31,669 | $0 | | Operating loss | ($36,399) | ($95,987) | | Net loss from continuing operations | ($35,693) | ($155,625) | | Net income from discontinued ops | $44,541 | ($368) | | **Net income (loss)** | **$8,848** | **($155,993)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six months ended June 30, 2025, show **$9.8 million** cash used in operations and **$88.9 million** cash provided by investing activities Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($9,813) | $40,528 | | Net cash provided by (used in) investing activities | $88,866 | ($4,522) | | Net cash used in financing activities | ($4,101) | ($49,988) | | **Net increase (decrease) in cash** | **$75,065** | **($14,032)** | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles Adjusted EBITDA to net loss from continuing operations, detailing adjustments for Q2 2025 financial results Reconciliation of Net Loss to Adjusted EBITDA for Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | **Net loss from continuing operations** | **($35,693)** | | Depreciation, depletion, amortization and accretion | $2,832 | | Gains on disposal of assets, net | ($1,077) | | Impairment of long-lived assets | $31,669 | | Stock based compensation | $200 | | Other adjustments | ($440) | | **Adjusted EBITDA** | **($2,775)** |

Core Viewpoint - Mammoth Energy Services, Inc. reported its financial and operational results for the second quarter of 2025, highlighting a strategic transformation towards a demand-centric portfolio and the execution of three pivotal transactions aimed at unlocking value and enhancing operations [1][2][4]. Financial Overview - Total revenue from continuing operations for Q2 2025 was $16.4 million, a slight increase from $16.0 million in Q2 2024 and $15.6 million in Q1 2025 [5]. - The net loss from continuing operations for Q2 2025 was $35.7 million, or $0.74 per diluted share, compared to a net loss of $155.6 million, or $3.24 per diluted share, in Q2 2024 [6]. - Adjusted EBITDA from continuing operations was ($2.8) million for Q2 2025, significantly improved from ($164.6) million in Q2 2024 [7]. Segment Performance - **Infrastructure Services**: Revenue increased to $5.4 million in Q2 2025 from $4.5 million in Q2 2024, driven by higher fiber optic activity [8]. - **Rental Services**: Revenue rose to $3.1 million in Q2 2025 from $1.8 million in Q2 2024, with an average of 296 pieces of equipment rented compared to 223 in the previous year [9]. - **Natural Sand Proppant Services**: Revenue was $5.4 million in Q2 2025, up from $4.7 million in Q2 2024, with approximately 242,000 tons sold at an average price of $21.41 per ton [10]. - **Accommodation Services**: Revenue decreased to $1.8 million in Q2 2025 from $2.7 million in Q2 2024, with an average of 145 rooms utilized compared to 212 in the previous year [11]. - **Drilling Services**: Revenue remained stable at $0.7 million for both Q2 2025 and Q2 2024, with increased utilization noted compared to Q1 2025 [12]. Expenses and Liquidity - Selling, general and administrative (SG&A) expenses were $5.3 million in Q2 2025, a significant decrease from $95.3 million in Q2 2024, primarily due to the absence of a large charge related to a settlement agreement [13]. - As of June 30, 2025, the company had unrestricted cash of $127.3 million and total liquidity of $194.8 million [14]. Capital Expenditures - Capital expenditures for Q2 2025 totaled $26.9 million, primarily for the expansion of the aviation rental fleet [16][17]. Conference Call - A conference call is scheduled for August 8, 2025, to discuss the second quarter financial and operational results [18].

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]