Core Points - Cobra Acquisitions LLC, a subsidiary of Mammoth Energy Services, received $18.4 million from the Puerto Rico Electric Power Authority as part of a Settlement Agreement [1][2] - The total settlement amount under the agreement is $188.4 million, of which Cobra has received $168.4 million, with the remaining $20 million due upon confirmation of PREPA's bankruptcy plan [2] - Mammoth maintains a strong cash position with no debt and plans to strategically deploy the received capital for value-enhancing opportunities [1] Financial Agreements - The receipt of $18.4 million led to an amendment of Mammoth's revolving credit agreement and a letter of credit reimbursement agreement with Fifth Third Bank [1] - The Credit Agreement Amendment allows for the issuance of letters of credit to meet Cobra's obligations under the Settlement Agreement [1] - Cobra transferred $19.3 million to a restricted cash account as collateral for the letter of credit issued to PREPA [1] Company Overview - Mammoth Energy Services is focused on providing products and services for the exploration and development of North American unconventional oil and natural gas reserves [3] - The company also engages in the construction and repair of electric grids for various utilities through its infrastructure services [3] - Mammoth's service offerings include well completion services, infrastructure services, natural sand and proppant services, and drilling services [3]

You can't turn on the news without seeing the utter devastation that Hurricane Helene wrought over the Southeast a couple of weeks ago. One of the things that was wiped away was the electrical grid in parts of Florida, Georgia, South He is the leader of the investing group The Daily Drilling Report where he provides investment analysis for the oil and gas industry. Features of the group include: a model portfolio that covers all segments of upstream oilfield activity with weekly updates, ideas for both U.S ...

OKLAHOMA CITY, Oct. 3, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today announced the payoff and termination of its term credit facility with Wexford Capital LP. On October 2, 2024, the Company used a portion of the proceeds received from the first installment payment from the previously disclosed settlement agreement with the Puerto Rico Electric Power Authority to pay off all outstanding amounts under its term credit facility, including accrued and unpai ...

OKLAHOMA CITY, Aug. 9, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June 30, 2024. Financial Overview for the Second Quarter 2024: Total revenue was $51.5 million for the second quarter of 2024 compared to $43.2 million for the first quarter of 2024. Net loss for the second quarter of 2024 was $156.0 million, or $3.25 loss per diluted share, compared to net loss of $11.8 million, o ...

OKLAHOMA CITY, July 29, 2024 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) (the "Company"), announced today that it will disclose its 2024 second quarter financial results before the market opens on Friday, August 9, 2024. In conjunction with the earnings release, the Company has scheduled a conference call and webcast to discuss second quarter results on the same day at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). About Mammoth Energy Services, Inc. For those who cannot listen to the li ...

Core Viewpoint - Cobra Acquisitions LLC, a subsidiary of Mammoth Energy Services, has reached a settlement agreement with the Puerto Rico Electric Power Authority to resolve outstanding matters, with total settlement proceeds expected to be approximately $188 million [1][2]. Financial Implications - The settlement proceeds will be allocated as follows: approximately $49.3 million will be used to pay off a term credit facility, while the remaining $139.1 million will enhance the company's cash reserves for business investments and general corporate purposes [2]. - As of June 30, 2024, Cobra had remaining receivables from PREPA totaling approximately $359.1 million related to prior agreements for restoration services [2][3]. Settlement Agreement Details - Under the settlement terms, Cobra will have an allowed administrative expense claim against PREPA of $170 million, plus $18.4 million in withheld FEMA funds, to be paid in three installments [3]. - The first installment of $150 million is expected to be paid within ten business days following court approval of the settlement agreement, with subsequent payments scheduled based on specific conditions [3][4]. Approval Process - The settlement agreement has been approved by the boards of both Mammoth and PREPA, and is pending approval from the Title III Court, which is expected to address the motion in August or September 2024 [4]. Accounting Impact - As a result of the settlement agreement, the company will record a non-cash, pre-tax charge of approximately $170.7 million in Q2 2024 to adjust its accounts receivable balance from PREPA [5].

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $43.2 million, down 18% from $52.8 million in Q4 2023, primarily due to lower activity in natural gas-heavy basins and declining North American energy prices [11][40] - Net loss for Q1 2024 was $11.8 million compared to a net loss of $6 million in Q4 2023 [40] - Adjusted EBITDA for Q1 2024 was $4.5 million, a decrease from $10.5 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - The well completions division faced challenges with only 380 stages pumped using 0.6 fleets on average, down from 669 stages and 0.9 fleets in Q4 2023, due to lower natural gas prices [38] - Infrastructure services revenue was $25 million in Q1 2024, down from $27.2 million in Q4 2023, attributed to lower storm-related work [13][31] - The sand division sold approximately 146,000 tons of sand at an average price of $24.38 per ton, compared to 104,000 tons at $23.62 in Q4 2023, indicating improved demand [39] Market Data and Key Metrics Changes - The company noted a decline in activity in natural gas-heavy basins, but anticipates increased demand for natural gas later in 2024 [11][33] - The infrastructure sector is seeing an uptick in bidding activity, particularly in transmission and distribution projects [32][21] Company Strategy and Development Direction - The company is focused on aligning capital expenditures with customer demand, revising its CapEx budget for 2024 to approximately $9 million, a decrease of $6 million from previous guidance [14] - The company is strategically positioning itself for growth in infrastructure services, particularly in T&D and fiber projects, as well as exploring opportunities to relocate assets to more oily basins [6][7][32] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2024, expecting a meaningful increase in activity and improved adjusted EBITDA results [9][11] - The company is prepared for an active storm season and is optimistic about growth in the infrastructure sector due to the Infrastructure Investment and Jobs Act [6][9] Other Important Information - The company received $64 million from PREPA in 2024, but still has approximately $349 million owed in principal and interest [35] - The company maintains a strong liquidity position with $22 million in cash and an undrawn revolving credit facility [42][43] Q&A Session Summary Question: Thoughts on labor market balance and maintaining staff - Management noted that while the labor market is competitive, they are successfully attracting talent, particularly in T&D, and have seen improvements compared to six months ago [51] Question: Revenue side and imminent infrastructure projects - Management confirmed robust bidding activity in infrastructure and mentioned ongoing transmission jobs, indicating a competitive position for upcoming bids [48][55] Question: Interest and financing charges spike - The spike in interest charges was primarily due to the SPCP agreement, with $5 million impacting Q1 2024, which is a one-time charge [23][24]

[Glossary of Oil and Natural Gas and Electrical Infrastructure Terms](index=4&type=section&id=Glossary%20of%20Oil%20and%20Natural%20Gas%20and%20Electrical%20Infrastructure%20Terms) This section defines specialized terms across oil and natural gas, natural sand proppant, and electrical infrastructure industries [Cautionary Note Regarding Forward-Looking Statements](index=7&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks that could cause actual results to differ materially - Forward-looking statements are based on management's estimates and assumptions, which are inherently uncertain and subject to risks beyond the company's control[13](index=13&type=chunk) - Key factors affecting actual results include capital expenditures by customers, volatility of oil and natural gas prices, general economic conditions, inflationary pressures, ability to comply with debt covenants, and outcomes of litigation[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=9&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the Company's unaudited condensed consolidated financial statements, management's discussion, market risk, and controls [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides the Company's unaudited condensed consolidated financial statements, including balance sheets, income, equity, cash flow statements, and detailed notes [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$698.5 million to $628.1 million**, primarily due to reduced accounts receivable, with liabilities and equity also declining Key Balance Sheet Metrics | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $22,021 | $16,556 | $5,465 | | Restricted cash | — | $7,742 | $(7,742) | | Accounts receivable, net | $389,520 | $447,202 | $(57,682) | | Total current assets | $433,898 | $496,925 | $(63,027) | | Total assets | $628,070 | $698,479 | $(70,409) | | Total current liabilities | $123,317 | $182,553 | $(59,236) | | Total liabilities | $179,806 | $238,379 | $(58,573) | | Total equity | $448,264 | $460,100 | $(11,836) | [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) The Company reported a **net loss of $11.8 million** for Q1 2024, a significant decline from prior-year net income, with total revenue decreasing by **63%** Key Comprehensive (Loss) Income Metrics | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | YoY Change (%) | | :------------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :------------- | | Total revenue | $43,189 | $116,320 | $(73,131) | -62.9% | | Total cost and expenses | $55,221 | $109,971 | $(54,750) | -49.8% | | Operating (loss) income | $(12,032) | $6,349 | $(18,381) | -289.5% | | Net (loss) income | $(11,811) | $8,351 | $(20,162) | -241.4% | | Net (loss) income per share (basic) | $(0.25) | $0.18 | $(0.43) | -238.9% | [Condensed Consolidated Statements of Changes in Equity](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from **$460.1 million to $448.3 million** due to a net loss of **$11.8 million** and other comprehensive loss Key Equity Changes | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Balance at December 31 | $460,100 | $462,616 | | Stock based compensation | $219 | $647 | | Net (loss) income | $(11,811) | $8,351 | | Other comprehensive (loss) income | $(244) | $3 | | Balance at March 31 | $448,264 | $470,698 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$47.3 million**, primarily due to PREPA receivable collections, while financing activities used **$48.5 million** Key Cash Flow Metrics | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net cash provided by operating activities | $47,349 | $3,240 | $44,109 | | Net cash used in investing activities | $(1,102) | $(5,706) | $4,604 | | Net cash used in financing activities | $(48,489) | $(3,083) | $(45,406) | | Net decrease in cash, cash equivalents and restricted cash | $(2,277) | $(5,555) | $3,278 | - The increase in operating cash flows was primarily attributable to increased receipts on accounts receivable, including **$64.0 million** from PREPA[206](index=206&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited financial statements, covering accounting policies, asset valuations, debt, equity, and contingencies [1. Organization and Nature of Business](index=14&type=section&id=1.%20Organization%20and%20Nature%20of%20Business) Mammoth Energy Services, Inc. is an integrated company serving the oil and gas and electric utility industries in North America and US territories - Mammoth Energy Services, Inc. is an integrated company serving the oil and gas and electric utility industries in North America and US territories[26](index=26&type=chunk) - Key services include well completion, infrastructure, natural sand proppant, drilling, aviation, equipment rentals, remote accommodations, and equipment manufacturing[27](index=27&type=chunk) - The Company's oil and natural gas business is highly dependent on commodity prices and customer capital spending, while the infrastructure business relies on utility spending and government appropriations[28](index=28&type=chunk) [2. Basis of Presentation and Significant Accounting Policies](index=14&type=section&id=2.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) Financial statements are unaudited, prepared under SEC rules and GAAP, consolidating subsidiaries, with detailed policies on receivables, fair value, and new accounting pronouncements - The Company consolidates its subsidiaries and variable interest entities, with all material intercompany transactions eliminated[29](index=29&type=chunk) - As of March 31, 2024, PREPA owed Cobra approximately **$140.8 million** for services, plus **$208.0 million** in interest on delinquent balances, with the Company believing these receivables are collectible despite PREPA's bankruptcy proceedings[39](index=39&type=chunk)[40](index=40&type=chunk) Customer Revenue and Accounts Receivable | Customer | Revenues (3 Months Ended March 31, 2024) | Revenues (3 Months Ended March 31, 2023) | Accounts Receivable (March 31, 2024) | Accounts Receivable (December 31, 2023) | | :------- | :--------------------------------------- | :--------------------------------------- | :----------------------------------- | :------------------------------------ | | Customer A | 13% | 1% | —% | —% | | Customer B | —% | —% | 90% | 90% | | Customer C | —% | 16% | —% | —% | - The Company adopted ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Tax Disclosures) effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively, and is evaluating their impact[51](index=51&type=chunk)[52](index=52&type=chunk) [3. Revenue](index=19&type=section&id=3.%20Revenue) Primary revenue streams include well completion, infrastructure, natural sand proppant, and drilling services, with recognition varying by service type - Revenue streams include well completion, infrastructure, natural sand proppant, drilling, and other services (aviation, equipment rentals, remote accommodations, equipment manufacturing)[53](index=53&type=chunk) - Well completion and infrastructure services are generally recognized over time, while natural sand proppant revenue is recognized at the point of transfer of legal title[55](index=55&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - The Company had unsatisfied performance obligations totaling **$9.9 million** as of March 31, 2024, expected to be recognized over the next 10 months[66](index=66&type=chunk) [4. Divestitures](index=21&type=section&id=4.%20Divestitures) On July 13, 2023, the Company sold its subsidiary Air Rescue Systems Corporation (ARS) for **$3.3 million** cash, plus a contingent **$0.3 million** - The Company sold its subsidiary Air Rescue Systems Corporation (ARS) for **$3.3 million** cash plus a contingent **$0.3 million** on July 13, 2023[67](index=67&type=chunk) [5. Inventories](index=21&type=section&id=5.%20Inventories) Inventories, valued at the lower of cost or net realizable value, totaled **$12.8 million** at March 31, 2024, a slight increase from December 31, 2023 Inventory Breakdown | Inventory Type | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :------------- | :---------------------------- | :------------------------------- | :-------------------- | | Supplies | $6,678 | $6,757 | $(79) | | Raw materials | $1,523 | $872 | $651 | | Work in process| $3,414 | $3,955 | $(541) | | Finished goods | $1,206 | $1,069 | $137 | | Total inventories | $12,821 | $12,653 | $168 | [6. Property, Plant and Equipment](index=22&type=section&id=6.%20Property,%20Plant%20and%20Equipment) Net property, plant and equipment decreased to **$109.2 million**, with depreciation expense declining by **46%** due to fully depreciated assets Property, Plant and Equipment Summary | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------- | :------------------------------- | :-------------------- | | Total property, plant and equipment, net | $109,232 | $113,905 | $(4,673) | Depreciation and Amortization Expense | Expense Type | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | YoY Change (%) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :------------- | | Depreciation, depletion, amortization and accretion | $7,021 | $12,956 | $(5,935) | -45.8% | - The decrease in depreciation, depletion, amortization and accretion is primarily attributable to a decline in property and equipment depreciation expense as a result of existing assets being fully depreciated[188](index=188&type=chunk) [7. Goodwill and Intangible Assets](index=23&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Goodwill remained stable at **$9.2 million** for the Well Completions segment, with intangible assets having a net carrying value of **$0.7 million** Goodwill by Segment | Segment | Goodwill (March 31, 2024, in thousands) | Goodwill (December 31, 2023, in thousands) | | :-------------- | :-------------------------------------- | :--------------------------------------- | | Well Completions | $9,214 | $9,214 | | Other | — | — | | Total | $9,214 | $9,214 | Intangible Assets Summary | Intangible Asset | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--------------- | :---------------------------- | :------------------------------- | | Intangible assets, net | $720 | $913 | - The Company recorded a **$1.8 million** goodwill impairment charge for the Aviation reporting unit during the third quarter of 2023, based on a qualitative and quantitative assessment following the ARS sale[75](index=75&type=chunk)[76](index=76&type=chunk) [8. Equity Method Investment](index=24&type=section&id=8.%20Equity%20Method%20Investment) The Company holds a **49%** economic interest in Brim Acquisitions LLC, with a carrying value of **$4.1 million** and **$0.1 million** in equity method adjustments - The Company owns a **49%** economic interest in Brim Acquisitions LLC, a joint venture with Wexford Investment, which provides helicopter services[80](index=80&type=chunk) Equity Method Investment Carrying Value | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------- | :---------------------------- | :------------------------------- | | Carrying value of investment | $4,100 | $4,200 | Equity Method Adjustments | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :-------------------- | :----------------------------------------------- | :----------------------------------------------- | | Equity method adjustments | $100 | $200 | [9. Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities](index=25&type=section&id=9.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities%20and%20Other%20Long-Term%20Liabilities) Total accrued expenses and other current liabilities significantly decreased to **$34.1 million**, primarily due to the termination of a **$48.9 million** financing arrangement Key Liabilities Breakdown | Liability Type | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :--------------------------------------- | :---------------------------- | :------------------------------- | :-------------------- | | Total accrued expenses and other current liabilities | $34,117 | $87,954 | $(53,837) | | Financing arrangement, net | — | $48,943 | $(48,943) | | Total other long-term liabilities | $3,483 | $4,715 | $(1,232) | - The significant decrease in current liabilities is mainly due to the termination of the Assignment Agreement with SPCP Group, which fully extinguished the **$54.4 million** obligation related to PREPA receivables[84](index=84&type=chunk)[147](index=147&type=chunk) [10. Debt](index=25&type=section&id=10.%20Debt) Total long-term debt increased to **$45.6 million**, primarily due to interest paid-in-kind on the new term credit facility, which has **$47.7 million** outstanding at **12.8%** interest Debt Summary | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :--------------------------------------- | :---------------------------- | :------------------------------- | :-------------------- | | Term credit facility, including interest paid-in-kind | $47,741 | $45,000 | $2,741 | | Total long-term debt | $45,630 | $42,809 | $2,821 | - The Company entered into a new **$75 million** revolving credit facility and a **$45 million** term credit facility on October 16, 2023, refinancing previous debt[87](index=87&type=chunk)[88](index=88&type=chunk)[92](index=92&type=chunk) - As of March 31, 2024, the new revolving credit facility was undrawn with **$21.0 million** borrowing capacity, and the new term credit facility had **$47.7 million** outstanding, bearing interest at **12.8%**[90](index=90&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) [11. Variable Interest Entities](index=27&type=section&id=11.%20Variable%20Interest%20Entities) Dire Wolf and Predator Aviation transferred membership interests in Cobra Aviation and Leopard to Voting Trustees, but the Company consolidates them as VIEs - Dire Wolf Energy Services LLC and Predator Aviation LLC transferred membership interests in Cobra Aviation and Leopard to Voting Trustees for registration purposes[97](index=97&type=chunk) - The Company is considered the primary beneficiary of Cobra Aviation and Leopard, which are classified as Variable Interest Entities (VIEs), and consolidates their financial results[97](index=97&type=chunk) [12. Selling, General and Administrative Expense](index=28&type=section&id=12.%20Selling,%20General%20and%20Administrative%20Expense) Selling, general and administrative (SG&A) expenses increased by **$0.4 million** to **$8.8 million**, primarily due to higher professional services fees SG&A Expense Breakdown | SG&A Component | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | YoY Change (%) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :------------- | | Total SG&A expense | $8,782 | $8,383 | $399 | 4.8% | | Professional services | $2,457 | $1,929 | $528 | 27.4% | - The increase in SG&A was primarily due to an increase in professional fees[187](index=187&type=chunk) [13. Income Taxes](index=28&type=section&id=13.%20Income%20Taxes) The Company recorded an income tax expense of **$1.8 million** on a pre-tax loss of **$10.0 million**, resulting in an effective tax rate of **18%** Income Tax Summary | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :-------------------- | :----------------------------------------------- | :----------------------------------------------- | | Income tax expense | $1,785 | $3,333 | | Pre-tax (loss) income | $(10,026) | $11,684 | | Effective tax rate | 18% | 29% | - The effective tax rates differed from the statutory rate of **21%** primarily due to the mix of earnings between the United States and Puerto Rico, changes in the valuation allowance, and interest and penalties[100](index=100&type=chunk) [14. Leases](index=28&type=section&id=14.%20Leases) Total lease expense decreased to **$2.4 million**, with operating lease right-of-use assets at **$8.0 million** and liabilities at **$7.8 million** as of March 31, 2024 Lease Expense | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :-------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Total lease expense | $2,352 | $2,810 | $(458) | Lease Assets and Liabilities | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------------- | :---------------------------- | :------------------------------- | | Operating lease right-of-use assets | $7,990 | $9,551 | | Current operating lease liability | $5,212 | $5,771 | | Long-term operating lease liability | $2,617 | $3,534 | Lease Term and Discount Rate | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Weighted-average remaining lease term (Operating leases) | 2.4 years | 2.5 years | | Weighted-average discount rate (Operating leases) | 8.8% | 8.7% | [15. (Loss) Earnings Per Share](index=30&type=section&id=15.%20(Loss)%20Earnings%20Per%20Share) The Company reported a basic and diluted net loss per share of **$0.25** for Q1 2024, a significant decrease from **$0.18** earnings per share in the prior-year period Earnings Per Share Metrics | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net (loss) income per share (basic) | $(0.25) | $0.18 | $(0.43)| | Net (loss) income per share (diluted) | $(0.25) | $0.17 | $(0.42)| | Weighted average shares outstanding (basic) | 47,964 | 47,443 | 521 | | Weighted average shares outstanding (diluted) | 47,964 | 48,002 | (38) | [16. Equity Based Compensation](index=31&type=section&id=16.%20Equity%20Based%20Compensation) Equity awards are contingent on "Payout" (recovery of unreturned capital), with **$5.6 million** and **$18.9 million** in unrecognized compensation for Specified and Non-Employee Member awards, respectively - Awards for interests in distributable earnings are contingent on "Payout" (recovery of unreturned capital balance), which has not yet occurred, so no compensation cost has been recorded[109](index=109&type=chunk)[111](index=111&type=chunk) Unrecognized Equity Compensation | Award Type | Unrecognized Amount (in millions) | | :-------------------- | :-------------------------------- | | Specified Member awards | $5.6 | | Non-Employee Member awards | $18.9 | [17. Stock Based Compensation](index=31&type=section&id=17.%20Stock%20Based%20Compensation) The 2016 Incentive Plan has **0.6 million** shares available, with **235,716** unvested restricted shares and **$0.7 million** in unrecognized compensation cost - The 2016 Incentive Plan has **0.6 million** shares available for future grants as of March 31, 2024[114](index=114&type=chunk) Restricted Stock Details | Metric | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Unvested shares of restricted stock | 235,716 | 302,383 | | Total unrecognized compensation cost | $0.7 million | N/A | | Weighted average recognition period | 1.6 years | N/A | Stock-Based Compensation Expense | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | YoY Change (%) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :------------- | | Stock-based compensation expense | $200 | $600 | $(400) | -66.7% | [18. Related Party Transactions](index=32&type=section&id=18.%20Related%20Party%20Transactions) Revenue from related parties was **$0.1 million** for Q1 2024, with **$45.6 million** in outstanding debt from Wexford's term credit facility incurring **$1.5 million** in interest expense Related Party Financials | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Revenue from related parties | $0.1 | $0.2 | | Costs incurred from related parties | $0.1 | Nominal | | Accounts receivable from related parties | $0.1 | Nominal | | Accounts payable for related parties | $0.1 | — | Related Party Debt | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--------------------------------------- | :--------------------------- | :------------------------------ | | Outstanding debt from Wexford term credit facility | $45.6 | $42.8 | - Interest expense from the Wexford term credit facility was **$1.5 million** for the three months ended March 31, 2024[122](index=122&type=chunk) [19. Commitments and Contingencies](index=32&type=section&id=19.%20Commitments%20and%20Contingencies) The Company has **$6.3 million** in letters of credit and **$9.2 million** in performance bonds, with ongoing litigation regarding **$140.8 million** owed by PREPA plus **$208.0 million** in interest Key Commitments and Bonds | Commitment Type | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--------------------------------------- | :---------------------------- | :------------------------------- | | Total letters of credit | $6,282 | $6,282 | | Outstanding performance and payment bonds | $9,200 | $10,000 | - As of March 31, 2024, PREPA owed Cobra approximately **$140.8 million** for services, excluding **$208.0 million** of interest, with ongoing litigation and mediation regarding these amounts and related tax claims[130](index=130&type=chunk) - The Assignment Agreement with SPCP Group for **$54.4 million** of PREPA receivables was terminated in February 2024 after PREPA paid **$64.0 million**, with **$54.4 million** going to SPCP Group and **$9.6 million** to Cobra[147](index=147&type=chunk) - The Company is involved in other legal proceedings, including a RICO lawsuit by Foreman Electric Services, Inc., state tax audits, and a DOJ investigation related to a former Cobra president's criminal matter, but does not expect a material adverse effect from most of these[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [20. Reporting Segments](index=39&type=section&id=20.%20Reporting%20Segments) The Company operates through four reportable segments: Well Completion, Infrastructure, Natural Sand Proppant, and Drilling services, with most segments experiencing operating losses in Q1 2024 - The Company's four reportable segments are Well Completion, Infrastructure, Natural Sand Proppant, and Drilling services. "All Other" includes aviation, equipment rentals, remote accommodations, equipment manufacturing, and corporate activities[150](index=150&type=chunk)[151](index=151&type=chunk) Segment Performance Overview | Segment | Revenue (Q1 2024, in thousands) | Revenue (Q1 2023, in thousands) | Change (in thousands) | YoY Change (%) | Operating (Loss) Income (Q1 2024, in thousands) | | :-------------------- | :------------------------------ | :------------------------------ | :-------------------- | :------------- | :---------------------------------------------- | | Well Completion | $8,159 | $67,179 | $(59,020) | -87.9% | $(4,870) | | Infrastructure | $25,038 | $28,280 | $(3,242) | -11.5% | $(2,372) | | Natural Sand Proppant | $4,307 | $12,442 | $(8,135) | -65.4% | $(3,710) | | Drilling | $511 | $1,355 | $(844) | -62.3% | $(1,629) | | All Other | $5,174 | $7,064 | $(1,890) | -26.8% | $549 | | Total External Revenue| $43,189 | $116,320 | $(73,131) | -62.9% | $(12,032) | - Bison Trucking LLC was reclassified from the Drilling segment to the "All Other" reconciling column, with prior period results retroactively adjusted[150](index=150&type=chunk) [21. Subsequent Events](index=42&type=section&id=21.%20Subsequent%20Events) Subsequent to March 31, 2024, the Company issued **$5.0 million** in bid bonds and **$1.4 million** in performance and payment bonds for its infrastructure segment - After March 31, 2024, the Company issued **$5.0 million** in bid bonds and **$1.4 million** in performance and payment bonds for its infrastructure segment[155](index=155&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, industry trends, operational results, and liquidity, highlighting revenue decline, net loss, and improved operating cash flow [Overview](index=43&type=section&id=Overview) Mammoth Energy Services is an integrated energy services company focused on North American oil and gas development and electric grid infrastructure, pursuing organic growth and acquisitions - Mammoth Energy Services is an integrated company providing services for North American onshore unconventional oil and natural gas development and electric grid infrastructure[158](index=158&type=chunk) - The Company's strategy is to grow through organic opportunities and accretive acquisitions, offering a complementary suite of services including well completion, infrastructure, natural sand proppant, drilling, aviation, equipment rentals, crude oil hauling, remote accommodations, and equipment manufacturing[158](index=158&type=chunk) - The Company is focused on improving operational efficiencies, cost structure, and expanding its industrial business lines, including fiber optic services[159](index=159&type=chunk)[160](index=160&type=chunk) [Overview of Our Industries](index=43&type=section&id=Overview%20of%20Our%20Industries) The oil and natural gas industry remains volatile, leading to reduced demand for services, while the energy infrastructure industry shows growth potential due to federal funding - The oil and natural gas industry is volatile, with declining crude oil and natural gas prices in 2023 and Q1 2024 slowing completion activities and reducing demand for well completion and sand proppant services[161](index=161&type=chunk)[162](index=162&type=chunk)[165](index=165&type=chunk) - The Company temporarily shut down several oilfield services (cementing, acidizing, flowback, contract drilling, rig hauling, coil tubing, pressure control, full service transportation, crude oil hauling) and idled its Muskie sand facility due to adverse market conditions[164](index=164&type=chunk)[166](index=166&type=chunk) - The energy infrastructure industry is encouraged by Infrastructure Investment and Jobs Act funds, leading to an uptick in bidding opportunities for engineering, fiber, and transmission and distribution services, despite a slight decrease in average crew count (from **78 to 75**) and storm restoration activity in Q1 2024[167](index=167&type=chunk)[168](index=168&type=chunk) - As of March 31, 2024, PREPA owed the Company approximately **$140.8 million** for services, plus **$208.0 million** in interest, with ongoing litigation and mediation for recovery[170](index=170&type=chunk) [First Quarter 2024 Financial Overview](index=45&type=section&id=First%20Quarter%202024%20Financial%20Overview) Q1 2024 revenue decreased by **63%** to **$43.2 million**, resulting in a **$11.8 million** net loss, while operating cash flow significantly increased to **$47.3 million** Q1 2024 Financial Highlights | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | Change (in millions) | YoY Change (%) | | :------------------------------------ | :-------------------- | :-------------------- | :------------------- | :------------- | | Revenue | $43.2 | $116.3 | $(73.1) | -62.9% | | Net (loss) income | $(11.8) | $8.4 | $(20.2) | -240.5% | | Net (loss) income per diluted share | $(0.25) | $0.17 | $(0.42) | -247.1% | | Adjusted EBITDA | $4.5 | $30.7 | $(26.2) | -85.3% | | Net cash flow provided by operating activities | $47.3 | $3.2 | $44.1 | 1378.1% | [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Total revenue decreased by **63%** to **$43.2 million**, leading to a **$12.0 million** operating loss, with cost of revenue increasing to **94%** of total revenue Consolidated Financial Performance | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (in thousands) | YoY Change (%) | | :--------------------------------------- | :--------------------- | :--------------------- | :-------------------- | :------------- | | Total revenue | $43,189 | $116,320 | $(73,131) | -62.9% | | Operating (loss) income | $(12,032) | $6,349 | $(18,381) | -289.5% | | Interest expense and financing charges, net | $(8,137) | $(3,289) | $(4,848) | 147.4% | | Net (loss) income | $(11,811) | $8,351 | $(20,162) | -241.4% | Revenue by Segment | Segment | Q1 2024 Revenue (in thousands) | Q1 2023 Revenue (in thousands) | Change (in thousands) | YoY Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------------- | | Well Completion Services | $8,273 | $67,300 | $(59,027) | -87.7% | | Infrastructure Services | $25,038 | $28,280 | $(3,242) | -11.5% | | Natural Sand Proppant Services | $4,307 | $12,467 | $(8,160) | -65.5% | | Drilling Services | $511 | $1,355 | $(844) | -62.3% | | Other Services | $6,179 | $7,514 | $(1,335) | -17.8% | - Well completion services revenue decreased by **88%** due to an **81%** decrease in stages completed (from **2,018 to 380**) and a **$20.5 million** decrease in sand and chemical materials revenue, with average active fleets dropping from **3.6 to 0.6**[175](index=175&type=chunk)[176](index=176&type=chunk) - Natural sand proppant services revenue decreased by **66%** due to a **63%** decrease in tons sold (from **391,439 to 145,662**) and a **21%** decline in average price per ton (from **$31.02 to $24.38**)[178](index=178&type=chunk) - Cost of revenue as a percentage of total revenue increased from **77%** in Q1 2023 to **94%** in Q1 2024, primarily due to decreased utilization and a higher ratio of fixed costs to variable costs across well completion, natural sand proppant, drilling, and other services[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - Interest expense and financing charges increased by **$4.8 million**, primarily due to a **$5.5 million** financing charge related to the Assignment Agreement with SPCP Group[190](index=190&type=chunk) [Non-GAAP Financial Measures](index=49&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Adjusted EBITDA as a supplemental non-GAAP measure, showing a consolidated Adjusted EBITDA of **$4.5 million** for Q1 2024, a significant decrease from Q1 2023 - Adjusted EBITDA is a non-GAAP measure defined as net (loss) income before DDA, gains/losses on asset disposal, stock-based compensation, interest expense, other income/expense (adjusted for interest on trade receivables and certain legal expenses), and income taxes, further adjusted to add back interest on trade accounts receivable[193](index=193&type=chunk) Adjusted EBITDA Reconciliation | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (in thousands) | YoY Change (%) | | :-------------------- | :--------------------- | :--------------------- | :-------------------- | :------------- | | Net (loss) income | $(11,811) | $8,351 | $(20,162) | -241.4% | | Adjusted EBITDA | $4,527 | $30,703 | $(26,176) | -85.3% | Adjusted EBITDA by Segment | Segment | Q1 2024 Adjusted EBITDA (in thousands) | Q1 2023 Adjusted EBITDA (in thousands) | | :-------------------- | :------------------------------------- | :------------------------------------- | | Well Completion Services | $(1,312) | $12,584 | | Infrastructure Services | $8,465 | $12,925 | | Natural Sand Proppant Services | $(2,526) | $4,181 | | Drilling Services | $(748) | $(263) | | Other Services | $648 | $1,276 | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity sources include cash, credit facilities, and operating cash flows, with net cash from operations increasing to **$47.3 million** due to PREPA collections - Primary liquidity sources are cash on hand, borrowings under revolving and term credit facilities, and cash flows from operations[201](index=201&type=chunk) Liquidity Metrics | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--------------------------------------- | :---------------------------- | :------------------------------- | | Cash and cash equivalents | $22,021 | $16,556 | | Net working capital (less cash) | $288,560 | $297,816 | | Total liquidity | $283,868 | $290,106 | - Net cash provided by operating activities increased to **$47.3 million** in Q1 2024, primarily due to **$64.0 million** received from PREPA[206](index=206&type=chunk)[230](index=230&type=chunk) - As of April 30, 2024, the new revolving credit facility was undrawn with **$13.6 million** of available borrowing capacity (after letters of credit and reserves)[204](index=204&type=chunk)[221](index=221&type=chunk) - 2024 capital expenditure estimate revised down to **$9.0 million** (from **$15 million**) due to lower commodity prices and softer demand for oilfield services, with **$4.2 million** spent in Q1 2024[232](index=232&type=chunk) - The Company continues to monitor market conditions for recommencing temporarily shut down oilfield services and increasing workforce, which would increase liquidity requirements[233](index=233&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company faces market risks from volatile oil and gas, energy infrastructure, and natural sand proppant industries, interest rate fluctuations, foreign currency, and significant customer credit risk - The Company's business is highly dependent on the volatile oil and natural gas, energy infrastructure, and natural sand proppant industries, influenced by commodity prices, demand, and economic conditions[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) - Interest rate risk from variable-rate debt (term loan at **12.8%** interest) means a **1%** change would impact annual interest expense by approximately **$0.5 million**[241](index=241&type=chunk) - Foreign currency risk from Canadian dollar operations is minor; a **10%** change in the Canadian dollar's strength against the U.S. dollar would impact pre-tax income by approximately **$0.1 million**[242](index=242&type=chunk) - Significant customer credit risk exists, particularly from PREPA, which owes **$348.8 million** (including interest) as of March 31, 2024, with collectability dependent on FEMA funding and ongoing bankruptcy proceedings[243](index=243&type=chunk)[244](index=244&type=chunk) - Operations in certain regions (Ohio, Wisconsin, Minnesota, Pennsylvania, West Virginia, Canada) are subject to seasonality due to severe weather, and the Company faces inflationary pressures on costs[245](index=245&type=chunk)[246](index=246&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - As of March 31, 2024, the Company's disclosure controls and procedures were deemed effective by management, including the CEO and CFO[248](index=248&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2024[249](index=249&type=chunk) [PART II. OTHER INFORMATION](index=61&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers additional information including legal proceedings, risk factors, unregistered sales of equity securities, mine safety disclosures, and other miscellaneous items [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The Company is routinely involved in various litigation and regulatory matters, with management expecting no material adverse effect on financial condition or operations, except as detailed in Note 19 - The Company is routinely involved in litigation, disputes, claims, and regulatory matters, including contractual obligations, workers' compensation, and employment-related issues[251](index=251&type=chunk) - Management believes that none of the pending legal matters are expected to have a material adverse effect on the Company's financial condition, cash flows, or results of operations, except as disclosed in Note 19[251](index=251&type=chunk) [Item 1A. Risk Factors](index=61&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 recent trends discussed in Management's Discussion and Analysis - The Company's operations are subject to risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023[252](index=252&type=chunk) - Recent trends and uncertainties impacting the business are further detailed in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section[252](index=252&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period, indicating no unregistered sales of equity securities or use of proceeds to report - This item is not applicable for the reporting period[253](index=253&type=chunk) [Item 4. Mine Safety Disclosures](index=61&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 non-compliance or changes in standards potentially affecting the business - The Company's operations are subject to the Federal Mine Safety and Health Act of 1977, which imposes stringent health and safety standards on mineral extraction and processing[254](index=254&type=chunk) - Failure to comply with these standards or changes in their interpretation could materially affect the business. Mine safety violation information is in Exhibit 95.1[254](index=254&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first quarter ended March 31, 2024 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024[255](index=255&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the report, including corporate governance documents, certifications, mine safety disclosures, and XBRL interactive data files - The exhibits include corporate governance documents, CEO and CFO certifications, mine safety disclosures, and XBRL interactive data files[257](index=257&type=chunk) [SIGNATURES](index=63&type=section&id=SIGNATURES) This section contains the signatures of the Company's CEO, Arty Straehla, and CFO, Mark Layton, certifying the report filing on May 2, 2024 - The report is signed by Arty Straehla (Chief Executive Officer) and Mark Layton (Chief Financial Officer) on May 2, 2024[260](index=260&type=chunk)

[Executive Summary & Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Outlook) Mammoth Energy Services reported a significant Q1 2024 decline in revenue and net loss, with the CEO anticipating improvement in H2, and a partial PREPA receivable payment received [Financial Highlights for Q1 2024](index=1&type=section&id=Financial%20Highlights) Mammoth Energy Services, Inc. reported a significant Q1 2024 decline in revenue and a net loss, with Adjusted EBITDA also substantially lower | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :------------------- | :-------- | :-------- | :-------- | | Total Revenue | $43.2 | $116.3 | $52.8 | | Net (Loss) Income | $(11.8) | $8.4 | $(6.0) | | Diluted EPS ($) | $0.25 | $0.17 | $0.12 | | Adjusted EBITDA | $4.5 | $30.7 | $10.5 | [CEO Commentary & Business Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Business%20Outlook) CEO commentary highlights Q1 2024 challenges from activity softness and weather, with reduced capex and anticipated H2 improvement - **Q1 2024** results were challenged by activity softness in natural gas basins due to lower energy prices, impacting **Well Completion Services** and other oilfield services[5](index=5&type=chunk) - Milder weather in **Q1 2024** resulted in less storm-related work for the **Infrastructure Services** business[5](index=5&type=chunk) - Mammoth is proactively lowering its **2024** capex guidance to **$9 million**, a **$6 million** decrease from prior guidance, and expects **Q1** results to be the low-water mark for the year, with increased activity anticipated in the second half[5](index=5&type=chunk)[6](index=6&type=chunk) [PREPA Receivable Update](index=1&type=section&id=PREPA%20Receivable%20Update) Mammoth received $64 million from PREPA, retaining $9.6 million and paying $54.4 million to SPCP Group, while $349 million remains outstanding | Item | Amount ($ millions) | | :-------------------------------- | :---------------- | | Total PREPA Payment Received | $64.0 | | Amount Retained by Mammoth | $9.6 | | Amount Paid to SPCP Group | $54.4 | - Mammoth, through Cobra, is still owed approximately **$349 million** in principal and associated interest for work completed over five years ago[7](index=7&type=chunk) [Segmental Performance](index=1&type=section&id=Segmental%20Performance) Mammoth's Q1 2024 segmental performance shows significant revenue declines in Well Completion and Natural Sand Proppant Services, while Infrastructure and Other Services saw modest changes [Well Completion Services](index=1&type=section&id=Well%20Completion%20Services) The Well Completion Services division experienced a significant decline in revenue and stages completed in Q1 2024 compared to prior periods, primarily due to reduced demand from lower energy prices | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :---------------- | :------ | :------ | :------ | | Revenue | $8.3 | $67.3 | $16.1 | | Stages Completed | 380 | 2,018 | 669 | | Average Fleets Active | 0.6 | 3.6 | 0.9 | [Infrastructure Services](index=2&type=section&id=Infrastructure%20Services) Infrastructure Services revenue saw a modest decrease in Q1 2024 compared to Q1 2023 and Q4 2023, accompanied by a slight reduction in average crew count | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :---------------- | :------ | :------ | :------ | | Revenue | $25.0 | $28.3 | $27.2 | | Average Crew Count | 75 | 88 | 78 | [Natural Sand Proppant Services](index=2&type=section&id=Natural%20Sand%20Proppant%20Services) The Natural Sand Proppant Services division experienced a substantial drop in revenue, tons sold, and average sales price in Q1 2024 compared to Q1 2023, though revenue was stable compared to Q4 2023 | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :---------------- | :------ | :------ | :------ | | Revenue | $4.3 | $12.5 | $4.5 | | Tons Sold | 146,000 | 391,000 | 104,000 | | Avg. Sales Price/Ton ($) | $24.38 | $31.02 | $23.62 | - The Company recognized approximately **$2.0 million** in shortfall revenue during **Q4 2023**[11](index=11&type=chunk) [Drilling Services](index=2&type=section&id=Drilling%20Services) Drilling Services revenue decreased in Q1 2024 compared to both Q1 2023 and Q4 2023, primarily due to lower utilization in the directional drilling business | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :------ | :------ | :------ | :------ | | Revenue | $0.5 | $1.4 | $0.6 | - The decrease in drilling services revenue is primarily attributable to decreased utilization for the directional drilling business[12](index=12&type=chunk) [Other Services](index=2&type=section&id=Other%20Services) Revenue from other services, including aviation, equipment rentals, remote accommodations, and equipment manufacturing, saw a slight decrease in Q1 2024 compared to Q1 2023 but an increase compared to Q4 2023 | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :------ | :------ | :------ | :------ | | Revenue | $6.2 | $7.5 | $4.9 | [Financial Review](index=2&type=section&id=Financial%20Review) Mammoth's Q1 2024 financial review highlights increased SG&A as a percentage of revenue, higher interest expenses due to financing charges, and a decrease in total liquidity [Selling, General and Administrative Expenses (SG&A)](index=2&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses%20%28SG%26A%29) SG&A expenses increased slightly in Q1 2024 compared to prior periods, and significantly increased as a percentage of total revenue due to lower overall revenue | SG&A Component | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Compensation and benefits | $4,104 | $4,277 | $3,898 | | Professional services | $2,457 | $1,929 | $2,559 | | Other cash expenses | $1,773 | $1,911 | $1,808 | | Total cash SG&A expense | $8,334 | $8,117 | $8,265 | | Change in provision for expected credit losses | $229 | $(381) | $(177) | | Stock based compensation | $219 | $647 | $219 | | Total non-cash SG&A expense | $448 | $266 | $42 | | Total SG&A expense | $8,782 | $8,383 | $8,307 | - SG&A expenses as a percentage of total revenue were **20%** for **Q1 2024**, up from **7%** in **Q1 2023** and **16%** in **Q4 2023**[17](index=17&type=chunk) [Interest Expense and Financing Charges, net](index=3&type=section&id=Interest%20Expense%20and%20Financing%20Charges) Net interest expense and financing charges increased significantly in Q1 2024, primarily due to a $5.5 million financing charge related to the termination of an agreement with SPCP Group LLC | Metric | Q1 2024 ($ millions) | Q1 2023 ($ millions) | Q4 2023 ($ millions) | | :-------------------------------- | :------ | :------ | :------ | | Interest expense and financing charges, net | $8.1 | $3.3 | $6.8 | - The Company recognized a financing charge totaling **$5.5 million** during **Q1 2024** related to the termination of the Assignment Agreement with SPCP Group LLC[18](index=18&type=chunk) [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) Mammoth maintained a healthy liquidity position with cash on hand and an undrawn revolving credit facility as of March 31, 2024, though total liquidity decreased by April 30, 2024 | Metric | As of March 31, 2024 ($ millions) | As of April 30, 2024 ($ millions) | | :-------------------------------- | :------------------- | :------------------- | | Cash on Hand | $22.0 | $15.5 | | Revolving Credit Facility Status | Undrawn | No outstanding borrowings | | Borrowing Base | $27.3 | $19.9 | | Available Borrowing Capacity | $21.0 | $13.6 | | Total Liquidity | $43.0 | $29.1 | [Capital Expenditures](index=3&type=section&id=Capital%20Expenditures) Total capital expenditures for Q1 2024 were $4.15 million, primarily directed towards well completion services, with a notable decrease compared to Q1 2023 | Operating Division | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :------------------------- | :--------------------- | :--------------------- | :--------------------- | | Well completion services | $2,663 | $5,772 | $3,170 | | Infrastructure services | $683 | $203 | $373 | | Natural sand proppant services | — | — | $223 | | Drilling services | — | — | $13 | | Other | $146 | — | $229 | | Eliminations | $659 | $61 | $124 | | Total capital expenditures | $4,151 | $6,036 | $4,132 | [Company Information](index=4&type=section&id=Company%20Information) This section provides details on Mammoth's Q1 2024 conference call, its business overview, and important forward-looking statements and cautionary disclosures [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Mammoth Energy Services, Inc. hosted a conference call on May 2, 2024, to discuss its first quarter financial and operational results, with access provided via telephone and webcast - A conference call was held on Thursday, **May 2, 2024**, at **9:00 a.m.** Central time (**10:00 a.m.** Eastern time)[23](index=23&type=chunk) - Access to the conference call was available via telephone at **1-201-389-0872** and webcast live on **https://ir.mammothenergy.com/events-presentations**[23](index=23&type=chunk) [About Mammoth Energy Services, Inc.](index=4&type=section&id=About%20Mammoth%20Energy%20Services%2C%20Inc.) Mammoth is an integrated energy services company providing products and services for North American onshore unconventional oil and natural gas reserves, as well as electric grid construction and repair through its infrastructure services - Mammoth is an integrated, growth-oriented energy services company focused on providing products and services for the exploration and development of North American onshore unconventional oil and natural gas reserves[24](index=24&type=chunk) - The company also specializes in the construction and repair of the electric grid for private, public investor-owned, and co-operative utilities through its infrastructure services businesses[24](index=24&type=chunk) - Mammoth's suite of services includes well completion, infrastructure, natural sand and proppant, drilling, and other energy services[24](index=24&type=chunk) [Forward-Looking Statements and Cautionary Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, highlighting that the release contains forward-looking statements based on management's current expectations, which are subject to significant risks and uncertainties that could cause actual results to differ materially - The news release contains forward-looking statements regarding the Company's business outlook, future financial position, liquidity, operations, and other future developments[25](index=25&type=chunk) - These statements are based on management's current expectations and beliefs but are subject to significant risks and uncertainties, including demand for services, volatility of oil and natural gas prices, performance of contracts, inflationary pressures, and the outcome of legal proceedings[25](index=25&type=chunk)[26](index=26&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements, and the Company undertakes no obligation to update them except as required by law[27](index=27&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2024 reflect a decrease in total assets and equity, a net loss, and increased cash from operating activities [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a decrease in total assets and total liabilities from December 31, 2023, to March 31, 2024, with a corresponding reduction in total equity | Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------- | :---------------------------- | :----------------------------- | | Total current assets | $433,898 | $496,925 | | Total assets | $628,070 | $698,479 | | Total current liabilities | $123,317 | $182,553 | | Total liabilities | $179,806 | $238,379 | | Total equity | $448,264 | $460,100 | [Consolidated Statements of Comprehensive (Loss) Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20%28Loss%29%20Income) The consolidated statements of comprehensive income reflect a significant decline in total revenue and a shift from net income to a net loss in Q1 2024 compared to Q1 2023, with increased interest expense contributing to the loss | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Total revenue | $43,189 | $116,320 | $52,782 | | Total cost and expenses | $55,221 | $109,971 | $59,599 | | Operating (loss) income | $(12,032) | $6,349 | $(6,817) | | Interest expense and financing charges, net | $(8,137) | $(3,289) | $(6,811) | | Net (loss) income | $(11,811) | $8,351 | $(5,955) | | Net (loss) income per share (diluted) ($) | $0.25 | $0.17 | $0.12 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flows from operating activities significantly increased in Q1 2024, primarily driven by a large change in accounts receivable, while cash used in financing activities increased due to payments on a financing transaction | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash provided by operating activities | $47,349 | $3,240 | | Net cash used in investing activities | $(1,102) | $(5,706) | | Net cash used in financing activities | $(48,489) | $(3,083) | | Net change in cash, cash equivalents and restricted cash | $(2,277) | $(5,555) | | Cash, cash equivalents and restricted cash at end of period | $22,021 | $11,727 | - Payments on financing transaction amounted to **$46,837 thousand** in **Q1 2024**, contributing to the increase in cash used in financing activities[35](index=35&type=chunk) [Segment Income Statements](index=9&type=section&id=Segment%20Income%20Statements) Q1 2024 segment income statements reveal operating losses across most divisions, with Infrastructure Services showing positive income before taxes due to other income [Segment Income Statements Overview](index=9&type=section&id=Segment%20Income%20Statements%20Overview) The segment income statements for Q1 2024 show operating losses across most divisions, with Infrastructure Services being the only segment to report a positive income before income taxes, largely due to other income | Segment | Q1 2024 Operating (Loss) Income (in thousands) | Q1 2023 Operating Income (Loss) (in thousands) | | :------------------------- | :------------------------------------- | :------------------------------------- | | Well Completion Services | $(4,870) | $7,476 | | Infrastructure Services | $(2,372) | $(1,665) | | Natural Sand Proppant Services | $(3,710) | $2,933 | | Drilling Services | $(1,629) | $(1,500) | | All Other | $549 | $(895) | | Total | $(12,032) | $6,349 | - **Infrastructure Services** reported income before income taxes of **$787 thousand** in **Q1 2024**, despite an operating loss, primarily due to **$10,258 thousand** in other income, net[37](index=37&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section defines Adjusted EBITDA as a non-GAAP measure and provides its consolidated and segmental reconciliations for Q1 2024 [Adjusted EBITDA Definition](index=10&type=section&id=Adjusted%20EBITDA%20Definition) Adjusted EBITDA is a non-GAAP financial measure used by management and external users to assess operating performance and debt service ability, defined as net (loss) income adjusted for various non-operating and non-cash items - Adjusted EBITDA is defined as net (loss) income before depreciation, depletion, amortization and accretion expense, gains on disposal of assets, net, stock based compensation, interest expense and financing charges, net, other (income) expense, net, and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable[39](index=39&type=chunk) - This non-GAAP measure is used by management and external users to compare operating performance across companies with varying accounting methods, capital structures, and asset acquisition methods[39](index=39&type=chunk) [Consolidated Adjusted EBITDA](index=10&type=section&id=Consolidated%20Adjusted%20EBITDA) Consolidated Adjusted EBITDA for Q1 2024 was $4.5 million, a significant decrease from $30.7 million in Q1 2023 and $10.5 million in Q4 2023, reflecting the overall challenging financial quarter | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net (loss) income | $(11,811) | $8,351 | $(5,955) | | Depreciation, depletion, amortization and accretion expense | $7,021 | $12,956 | $8,271 | | Gains on disposal of assets, net | $(1,166) | $(361) | $(2,757) | | Stock based compensation | $219 | $647 | $219 | | Interest expense and financing charges, net | $8,137 | $3,289 | $6,811 | | Other income, net | $(10,143) | $(8,624) | $(10,964) | | Provision for income taxes | $1,785 | $3,333 | $3,291 | | Interest on trade accounts receivable | $10,485 | $11,112 | $11,543 | | Adjusted EBITDA | $4,527 | $30,703 | $10,459 | [Segment Adjusted EBITDA](index=10&type=section&id=Segment%20Adjusted%20EBITDA) Segment Adjusted EBITDA figures show varied performance across divisions, with Well Completion Services and Natural Sand Proppant Services reporting negative Adjusted EBITDA in Q1 2024, while Infrastructure Services remained positive [Well Completion Services Adjusted EBITDA](index=10&type=section&id=Well%20Completion%20Services%20Adjusted%20EBITDA) Well Completion Services reported a negative Adjusted EBITDA in Q1 2024, a significant decline from Q1 2023 | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net (loss) income | $(5,439) | $6,547 | $(5,158) | | Adjusted EBITDA | $(1,312) | $12,584 | $306 | [Infrastructure Services Adjusted EBITDA](index=11&type=section&id=Infrastructure%20Services%20Adjusted%20EBITDA) Infrastructure Services maintained a positive Adjusted EBITDA in Q1 2024, though lower than prior periods | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net (loss) income | $(405) | $2,452 | $1,844 | | Adjusted EBITDA | $8,465 | $12,925 | $11,101 | [Natural Sand Proppant Services Adjusted EBITDA](index=11&type=section&id=Natural%20Sand%20Proppant%20Services%20Adjusted%20EBITDA) Natural Sand Proppant Services reported a negative Adjusted EBITDA in Q1 2024, a decline from positive figures in Q1 2023 | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net (loss) income | $(3,851) | $2,779 | $(2,384) | | Adjusted EBITDA | $(2,526) | $4,181 | $(890) | [Drilling Services Adjusted EBITDA](index=11&type=section&id=Drilling%20Services%20Adjusted%20EBITDA) Drilling Services continued to report negative Adjusted EBITDA in Q1 2024, consistent with prior periods | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net loss | $(1,757) | $(1,626) | $(147) | | Adjusted EBITDA | $(748) | $(263) | $(622) | [Other Services Adjusted EBITDA](index=12&type=section&id=Other%20Services%20Adjusted%20EBITDA) Other Services maintained a positive Adjusted EBITDA in Q1 2024, showing resilience despite overall challenges | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Q4 2023 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net loss | $(359) | $(1,801) | $(110) | | Adjusted EBITDA | $648 | $1,276 | $564 |

Part I [Business and Operations](index=9&type=section&id=Part%20I) Mammoth Energy Services' integrated operations across well completion, infrastructure, natural sand proppant, and drilling in North America - The company operates through four primary reportable segments: well completion services, infrastructure services, natural sand proppant services, and drilling services[20](index=20&type=chunk)[23](index=23&type=chunk) - The company's business strategy focuses on organic growth, accretive acquisitions, cross-selling its complementary services, expanding its infrastructure business, and maintaining a conservative balance sheet[74](index=74&type=chunk)[75](index=75&type=chunk) - Customer concentration is a key characteristic, with the top five customers accounting for approximately **35% of revenue** in 2023[77](index=77&type=chunk) [Business Overview](index=9&type=section&id=Item%201.%20Business) Details Mammoth Energy Services' core business segments, North American market presence, and historical revenue drivers, including PREPA contracts [Company Services](index=9&type=section&id=1.1%20Our%20Services) Key services include well completion, infrastructure, natural sand proppant, and drilling, with some lines temporarily idled Key Service Segments and Assets (as of Dec 31, 2023) | Service Segment | Key Offerings | Key Assets | | :--- | :--- | :--- | | **Well Completion** | Hydraulic fracturing, sand hauling, water transfer | 6 high-pressure fleets (310,000 HHP), 39 sand trucks, 91 miles of water hose | | **Infrastructure** | Electric T&D engineering, construction, repair, storm restoration | Agreements with IOUs, Co-Ops; significant past work with PREPA | | **Natural Sand Proppant** | Mining, processing, and selling Northern White frac sand | Wisconsin-based plants, logistics network, new 12-month supply agreement for ~709k tons | | **Drilling** | Directional drilling rentals (MWD, motors), contract drilling (idled) | 4 MWD kits, 89 mud motors, 11 land drilling rigs (idled) | | **Other Services** | Aviation, equipment rentals, remote accommodations, manufacturing | 2 helicopters, rental fleet, 878-room accommodation capacity (178 rooms/night avg utilization) | - Several service lines, including contract drilling, rig moving, coil tubing, pressure control, flowback, cementing, and acidizing, were temporarily shut down due to market conditions but are maintained for potential recommencement[41](index=41&type=chunk)[55](index=55&type=chunk) - A significant portion of infrastructure revenue was historically generated from two contracts with PREPA for hurricane restoration, which ended in March 2019. A substantial receivable remains outstanding[33](index=33&type=chunk) [Industry Overview](index=15&type=section&id=1.2%20Our%20Industries) Industry overview covers volatile oil & gas, natural sand proppant, and energy infrastructure markets - **Oil & Gas:** The industry is volatile and influenced by commodity prices. Lower crude oil and natural gas prices in 2023 slowed completion activities and reduced demand for the company's well completion services[62](index=62&type=chunk)[63](index=63&type=chunk) - **Natural Sand Proppant:** Demand increased through early 2023 but was later adversely impacted by Canadian wildfires and the slowdown in completion activities. The company is seeing an uptick in orders in Q1 2024[65](index=65&type=chunk) - **Energy Infrastructure:** Demand is driven by repair, maintenance, and expansion of the electrical grid. The Infrastructure Investment and Jobs Act is expected to provide added opportunities and fuel additional projects[69](index=69&type=chunk)[71](index=71&type=chunk) [Regulatory Environment](index=19&type=section&id=1.3%20Regulation) Operations are subject to extensive federal and state regulations, including environmental, safety, and climate change - Operations are subject to extensive regulation by multiple bodies including the Department of Transportation (DOT), EPA, and MSHA, covering worker safety, environmental protection, and transportation standards[88](index=88&type=chunk)[89](index=89&type=chunk) - Hydraulic fracturing is regulated by state commissions, but federal agencies like the EPA have asserted authority over aspects like diesel fuel use and wastewater disposal. Potential for increased federal regulation remains a key issue[109](index=109&type=chunk)[115](index=115&type=chunk) - Climate change initiatives, such as the Inflation Reduction Act (IRA), could accelerate the transition away from fossil fuels, potentially decreasing demand for oil and gas services, while also imposing new costs like a methane emissions charge[103](index=103&type=chunk)[154](index=154&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) Substantial risks include the PREPA receivable, customer concentration, market volatility, and regulatory changes - A primary risk is the failure by PREPA to pay amounts owed to subsidiary Cobra. As of December 31, 2023, PREPA owed approximately **$204.8 million** for services, plus **$197.5 million** in interest. Collection is dependent on funding from FEMA and PREPA's bankruptcy proceedings[134](index=134&type=chunk)[136](index=136&type=chunk) - The company has a concentrated customer base, with the top five customers accounting for about **35% of revenue** in 2023, making it vulnerable to the loss of any single major customer[138](index=138&type=chunk) - The company's largest stockholder, Wexford, beneficially owns approximately **47.1% of the common stock**, allowing it to exercise significant influence over corporate matters and creating potential conflicts of interest[233](index=233&type=chunk) - The business is exposed to volatility in oil and natural gas prices, which directly impacts customer capital expenditures and demand for oilfield services[143](index=143&type=chunk) [Cybersecurity](index=53&type=section&id=Item%201C.%20Cybersecurity) NIST-informed cybersecurity program is managed in-house with board oversight, reporting no material impacts to date - The cybersecurity program is managed by an in-house team led by the Director of Information Technology, who reports to the CFO, and is informed by the NIST Cybersecurity Framework[257](index=257&type=chunk)[259](index=259&type=chunk)[261](index=261&type=chunk) - The board of directors receives quarterly updates on the cybersecurity program's status and any security incidents[261](index=261&type=chunk) - The company states that risks from cybersecurity threats have not materially affected the company's business strategy, results of operations, or financial condition to date[262](index=262&type=chunk) [Properties](index=54&type=section&id=Item%202.%20Properties) Primary properties are Wisconsin natural sand proppant facilities with reserves and corporate headquarters Estimated Proven Frac Sand Reserves (as of Dec 31, 2023) | Mine Location | Proven Reserves (Thousands of Tons) | | :--- | :--- | | Taylor (Jackson County, WI) | 23,191 | | Piranha (Barron County, WI) | 36,706 | | **Total** | **59,897** | - The Muskie facility in Pierce County, Wisconsin, has been temporarily idled since September 2018 due to market conditions and does not have any associated proppant sand reserves[269](index=269&type=chunk)[294](index=294&type=chunk) - Total sand mined in 2023 was **1.304 million tons**, a decrease from **1.396 million tons** in 2022[273](index=273&type=chunk) [Legal Proceedings](index=60&type=section&id=Item%203.%20Legal%20Proceedings) Significant legal proceedings involve collecting **$204.8 million** from PREPA, and other tax and labor claims - The company is actively pursuing collection of approximately **$204.8 million** in principal and **$197.5 million** in interest from PREPA through litigation in PREPA's bankruptcy case[666](index=666&type=chunk) - Cobra, a subsidiary, faces **13 lawsuits** from municipalities in Puerto Rico for alleged failure to pay construction excise and business taxes. Cobra believes it is exempt from these taxes[677](index=677&type=chunk) - A former employee filed a class and collective action complaint alleging failure to pay overtime wages in compliance with FLSA and Puerto Rico law. The company has reached settlements in principle with some claimants, while arbitrations are pending for others[678](index=678&type=chunk) Part II [Financial Information](index=62&type=section&id=Part%20II) This section provides an overview of the company's financial performance, liquidity, capital resources, and critical accounting estimates, including details on stock matters and internal controls Financial Highlights (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenue | $309.5 million | $362.1 million | | Net Loss | ($3.2 million) | ($0.6 million) | | Adjusted EBITDA | $71.0 million | $86.1 million | | Debt Reduction | $40.7 million | N/A | | Operating Cash Flow | $31.4 million | $15.3 million | - The company refinanced its debt in October 2023, entering into a new **$75 million** revolving credit facility and a new **$45 million** term credit facility with an affiliate, Wexford Capital LP[314](index=314&type=chunk)[374](index=374&type=chunk) - In December 2023, the company entered into an assignment agreement to sell **$54.4 million** of its PREPA receivable, receiving **$46.1 million** in net proceeds. This obligation was fully extinguished subsequent to year-end after PREPA made the required payment to the assignee[315](index=315&type=chunk)[383](index=383&type=chunk)[386](index=386&type=chunk) [Common Stock and Shareholder Matters](index=62&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C