UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 001-37917 Mammoth Energy Services, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0498321 (State or other jurisdiction of inc ...

Financial Data and Key Metrics Changes - Mammoth Energy's revenue for Q2 2021 was $47.4 million, down from $60.1 million in the same quarter last year and $66.8 million in Q1 2021, primarily due to decreased infrastructure revenue caused by management and crew turnover [20] - The net loss for Q2 2021 was $34.8 million, or $0.75 per share, compared to a net loss of $15.2 million, or $0.33 per share, in Q2 2020 and a net loss of $12.4 million, or $0.27 per share, in Q1 2021 [21] - Adjusted EBITDA for Q2 2021 was negative $5.5 million, down from $6.9 million in Q2 2020 and $6.4 million in Q1 2021 [21] - As of June 30, 2021, the company had approximately $11 million in cash and $64 million in debt, with a reduction in long-term debt from $81 million at the end of 2020 to $62.8 million [21][33] Business Line Data and Key Metrics Changes - The oilfield services segment saw some positive signs with increased pricing and utilization, although overall activity levels remained depressed due to capital discipline among exploration and production companies [6] - The infrastructure business underperformed in Q2 2021 due to management crew turnover, but there are ongoing bidding activities and expectations for improved performance in Q3 [9][20] - The sand division sold approximately 255,000 tons of sand at an average price of $15.80 per ton during Q2 2021, with expectations for increased market activity in the second half of 2021 [7][8] Market Data and Key Metrics Changes - The company is experiencing increased project bidding levels and funding capacity in the infrastructure sector, with robust bidding levels expected to continue [9][10] - The infrastructure segment is expected to benefit from the anticipated federal Infrastructure Bill, which could further enhance growth opportunities [9][10] Company Strategy and Development Direction - The company is shifting towards a broader industrial focus, particularly in the infrastructure space, to enhance long-term growth and sustainability [5] - Mammoth Energy is expanding its engineering group and has entered the fiber optic market, which is seen as a significant growth opportunity [11][12] - The company aims to vertically integrate its services and equipment manufacturing capabilities to differentiate itself in a competitive landscape [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 results did not meet expectations but expressed confidence in the company's ability to improve near-term results and adapt to changing market conditions [5][8] - There is optimism regarding the recovery in the oilfield services sector, with expectations for increased activity and improved pricing [6][28] - Management is actively pursuing the collection of outstanding receivables from PREPA in Puerto Rico, with ongoing discussions and support from Congressional members [13][18][33] Other Important Information - The company has signed two significant multiyear contracts with major utilities in the infrastructure space, which are expected to provide a stable base of business [10] - As of June 30, 2021, PREPA owed the company approximately $319 million for services performed, including $227 million in receivables and $92 million in interest [16] Q&A Session Summary Question: Can you talk about the path to repair in the infrastructure segment? - Management noted ongoing bidding activity and integration with engineering offerings, indicating a positive outlook for Q3 despite challenges in restoring profitability [27][28] Question: What are the challenges of ramping up and maintaining personnel? - Management indicated that staffing for frac crews has been relatively easier, but labor shortages remain a concern across the industry [29][30] Question: What is the status of the PREPA receivable? - Management emphasized the importance of the $300 million receivable and noted intensified discussions with PREPA, indicating a strong position as a post-bankruptcy creditor [33]

1Q 2021 Earnings April 2021 Forward Looking and Cautionary Statements Forward-Looking Statements The information in this investor presentation of Mammoth Energy Services, Inc. ("Mammoth" or "Mammoth Energy") includes "forward-looking statements." All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words "anticipate," "believe," "ensure," "exp ...

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The company reported a **net loss of $12.4 million** in Q1 2021, a significant improvement from $84.0 million in Q1 2020, largely due to the absence of prior-year impairment charges [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$780.4 million** as of March 31, 2021, from $824.6 million, while total liabilities also decreased, resulting in a slight reduction in total equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $443,710 | $464,748 | | **Total assets** | **$780,444** | **$824,562** | | **Total current liabilities** | $119,607 | $128,598 | | **Total liabilities** | **$229,045** | **$261,235** | | **Total equity** | **$551,399** | **$563,327** | [Condensed Consolidated Statements of Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Total revenue decreased to **$66.8 million** in Q1 2021, while the net loss significantly improved to **$12.4 million** due to the absence of prior-year impairment charges Q1 Financial Performance (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Total revenue** | $66,804 | $97,383 | | Operating loss | $(23,270) | $(89,046) | | Impairment of goodwill | $0 | $54,973 | | Impairment of other long-lived assets | $0 | $12,897 | | **Net loss** | **$(12,440)** | **$(83,971)** | | Net loss per share (basic & diluted) | $(0.27) | $(1.85) | [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 **$14.2 million** in Q1 2021, while financing activities used $15.0 million primarily for debt repayment Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,234 | $1,541 | | Net cash provided by (used in) investing activities | $309 | $(942) | | Net cash (used in) provided by financing activities | $(15,024) | $6,898 | | **Net change in cash and cash equivalents** | **$(456)** | **$7,308** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight significant credit risks from **PREPA ($227.0 million)** and **Gulfport ($33.0 million)** receivables due to bankruptcy, along with prior-year impairment charges and ongoing legal proceedings - The company faces substantial credit risk with PREPA, which owed approximately **$227.0 million** for services and **$82.9 million** in interest as of March 31, 2021. PREPA is in bankruptcy, and collection is dependent on funding from FEMA[39](index=39&type=chunk)[137](index=137&type=chunk) - Due to Gulfport Energy Corporation's Chapter 11 bankruptcy filing, the company recorded significant reserves against its receivables. In Q1 2021, this resulted in a **bad debt expense of $10.0 million** and a **$27.1 million reduction to revenue** for unliquidated damages[36](index=36&type=chunk)[88](index=88&type=chunk)[138](index=138&type=chunk) - In Q1 2020, the company recorded impairment charges totaling **$67.9 million**, consisting of **$55.0 million** for goodwill and **$12.9 million** for other long-lived assets, primarily in its oilfield services segments, due to a significant decline in oil prices and market conditions[63](index=63&type=chunk)[68](index=68&type=chunk) - The company is subject to multiple legal proceedings, including securities class action lawsuits, shareholder derivative suits, and government investigations related to its Puerto Rico contracts[130](index=130&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of the oil and gas downturn on Q1 2021 results, showing a **31% revenue decline** but a significantly narrowed net loss due to prior-year impairment charges, with liquidity impacted by major bankrupt customer receivables - The company is undergoing a transformation towards a broader industrial focus, expanding into infrastructure engineering and equipment manufacturing to reduce reliance on the volatile oil and gas sector[154](index=154&type=chunk) - Due to adverse market conditions, the company has temporarily shut down multiple oilfield service lines, including contract drilling, rig hauling, coil tubing, and full service transportation[168](index=168&type=chunk) Q1 2021 Financial Highlights | Metric | Q1 2021 | Change from Q1 2020 | | :--- | :--- | :--- | | Net Loss | $12 million | Improved from $84 million loss | | Adjusted EBITDA | $6 million | Decreased from $13.5 million | | Operating Cash Flow | $14 million | Increased from $1.5 million | | Infrastructure Revenue | $29 million | +16% | - The company's liquidity is under pressure from significant uncollected receivables from PREPA (approx. **$227 million** plus interest) and Gulfport (net **$33 million**), both of which are in bankruptcy proceedings[161](index=161&type=chunk)[169](index=169&type=chunk)[210](index=210&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Total revenue decreased **31% to $66.8 million** in Q1 2021, driven by declines in oilfield services, while operating loss improved due to the absence of prior-year impairment charges Revenue by Segment (in thousands) | Segment | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Infrastructure services | $29,257 | $25,475 | 16% | | Well completion services | $22,955 | $43,320 | -47% | | Natural sand proppant services | $8,705 | $10,249 | -15% | | Drilling services | $933 | $4,727 | -80% | | Other services | $5,662 | $15,120 | -63% | | **Total Revenue** | **$66,804** | **$97,383** | **-31%** | - Well completion services revenue decreased by **$20 million (47%)** due to a **70% decline in stages completed** and a reduction in active fleets from 2.7 to 0.9 on average[177](index=177&type=chunk)[178](index=178&type=chunk) - Selling, general and administrative (SG&A) expenses increased to **$20.8 million** from $10.8 million, primarily due to a **$10.1 million bad debt provision** related to the Gulfport bankruptcy[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) [Non-GAAP Financial Measures](index=50&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA decreased to **$6.4 million** in Q1 2021, reflecting lower operational profitability, while Adjusted Net Loss improved to **$12.4 million** after excluding prior-year impairment charges Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net loss | $(12,440) | $(83,971) | | Depreciation, depletion, amortization and accretion | 21,146 | 25,882 | | Impairment of goodwill & long-lived assets | 0 | 67,870 | | Other adjustments | (1,825) | (3,870) | | **Adjusted EBITDA** | **$6,378** | **$13,451** | Adjusted Net Loss (in thousands) | Line Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net loss, as reported | $(12,440) | $(83,971) | | Impairment of goodwill | — | 54,973 | | Impairment of other long-lived assets | — | 12,897 | | **Adjusted net loss** | **$(12,440)** | **$(16,101)** | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by **$14.4 million cash** and **$48.7 million** available credit, with 2021 capital expenditures estimated at $9 million, though collection of bankrupt customer receivables remains uncertain - As of March 31, 2021, the company had **$14.4 million in cash** and **$48.7 million** of available borrowing capacity under its revolving credit facility[210](index=210&type=chunk)[81](index=81&type=chunk) - The company estimates total capital expenditures for 2021 will be approximately **$9 million**, primarily for the infrastructure and well completion segments[225](index=225&type=chunk) - The company believes existing cash, operating cash flow, and credit facility borrowings will be sufficient for the next twelve months, but this is subject to variables including the collection of receivables from PREPA and Gulfport[226](index=226&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant market risks from oil and gas industry volatility, interest rate fluctuations, foreign currency exposure, and substantial customer credit risk, especially from bankrupt receivables - The business is highly dependent on the volatile conditions of the U.S. oil and natural gas industry, with demand and pricing for services influenced by commodity prices and E&P spending levels[231](index=231&type=chunk) - The company has interest rate risk on its revolving credit facility. A **1% change in interest rates** would impact annual interest expense by approximately **$0.6 million** based on the **$64.0 million** balance at March 31, 2021[235](index=235&type=chunk) - The company is subject to significant customer credit risk, which is heightened by the ongoing COVID-19 pandemic and depressed commodity price environment, as evidenced by the situations with PREPA and Gulfport[237](index=237&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report (March 31, 2021)[240](index=240&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of 2021 that have materially affected, or are reasonably likely to materially affect, these controls[241](index=241&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including disputes with bankrupt entities PREPA and Gulfport, securities class actions, and government investigations related to Puerto Rico contracts - The company is involved in numerous legal proceedings, the most significant of which are detailed in Note 18 of the financial statements[243](index=243&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors remain consistent with its 2020 Form 10-K, though their negative impact may be exacerbated by the ongoing COVID-19 pandemic and its economic consequences - The company's risk factors are consistent with its 2020 Form 10-K, but the impact of these risks may be exacerbated by the COVID-19 pandemic[244](index=244&type=chunk) [Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company's mining operations are subject to the Federal Mine Safety and Health Act, with required disclosures provided in Exhibit 95.1 of this report - The company's operations are subject to the Federal Mine Safety and Health Act, and related disclosures are included in Exhibit 95.1[246](index=246&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including CEO/CFO certifications and XBRL data files - A list of all exhibits filed with the Form 10-Q is provided, including CEO/CFO certifications and XBRL data[249](index=249&type=chunk)

Call Start: 17:00 January 1, 0000 5:18 PM ET Mammoth Energy Services, Inc. (NASDAQ:TUSK) Q1 2021 Earnings Conference Call April 29, 2021 17:00 ET Company Participants Don Crist - Director of Investor Relations Arty Straehla - Chief Executive Officer Mark Layton - Chief Financial Officer Conference Call Participants Daniel Burke - Johnson Rice & Company, LLC Operator Good day, ladies and gentlemen and welcome to the Mammoth Energy Services First Quarter 2021 Earnings Conference Call. At this time, all partic ...

Mammoth Energy Services, Inc. (NASDAQ:TUSK) Q4 2020 Earnings Conference Call February 25, 2021 5:00 PM ET Company Participants Don Crist – Director of Investor Relations Arty Straehla – Chief Executive Officer Mark Layton – Chief Financial Officer Conference Call Participants Daniel Burke – Johnson Rice & Company, LLC Operator Welcome, ladies and gentlemen, and welcome to the Mammoth Energy Services Fourth Quarter and Full Year 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this confe ...

PART I [Business](index=9&type=section&id=Item%201.%20Business) Mammoth Energy Services, Inc. is an integrated company serving North America's electric utility and oil and gas industries, facing 2020 pandemic impacts, customer concentration, and a strategic shift towards broader industrial focus - The company operates four primary reportable segments: infrastructure services, well completion services, natural sand proppant services, and drilling services[27](index=27&type=chunk) - The company is strategically shifting towards a broader industrial focus, having commenced infrastructure engineering and equipment manufacturing operations in late 2019[21](index=21&type=chunk)[303](index=303&type=chunk) - For the year ended December 31, 2020, the top five customers accounted for **50% of total revenue**, with Gulfport Energy Corporation representing **16%**, indicating significant customer concentration risk[22](index=22&type=chunk)[86](index=86&type=chunk) - The company has temporarily shut down several oilfield service lines due to adverse market conditions, including contract land drilling, rig moving, flowback, cementing, acidizing, and coil tubing operations[48](index=48&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [Our Services](index=10&type=section&id=Our%20Services) The company provides diverse services including infrastructure, well completion, natural sand proppant, and drilling, with past infrastructure revenue heavily reliant on PREPA and most oilfield services idled due to market conditions - A substantial portion of past infrastructure revenue was generated from storm restoration work for the Puerto Rico Electric Power Authority (PREPA) As of December 31, 2020, PREPA owed the company approximately **$227 million** for services, plus **$74 million** in interest[29](index=29&type=chunk)[31](index=31&type=chunk) - In Well Completion Services, only **one of six** pressure pumping fleets was staffed and operating as of December 31, 2020, reflecting depressed market conditions[33](index=33&type=chunk) - The company's natural sand proppant facility in Pierce County, Wisconsin, has been temporarily idled since September 2018 due to market conditions[44](index=44&type=chunk) - Contract land drilling operations were temporarily shut down in December 2019, and rig moving operations were shut down in April 2020 due to poor market conditions[48](index=48&type=chunk)[55](index=55&type=chunk) [Our Industries](index=15&type=section&id=Our%20Industries) The company operates in electric infrastructure, oil and natural gas, and natural sand proppant industries, all significantly impacted by utility spending, volatile commodity prices, and market oversupply - Demand in the electric infrastructure industry is driven by utility capital expenditures for repair and maintenance of aging networks, as well as responses to natural disasters[70](index=70&type=chunk) - The sharp decline in oil prices starting in March 2020 significantly reduced utilization and pricing for the company's oilfield services, with depressed activity expected to continue[74](index=74&type=chunk)[75](index=75&type=chunk) - The frac sand market became oversupplied in 2019 and 2020 due to industry capacity expansion and reduced oil demand, causing prices to fall significantly and impacting segment profitability[78](index=78&type=chunk) [Regulation](index=21&type=section&id=Regulation) The company's operations are subject to extensive federal, state, and local regulations across worker safety, transportation, environmental protection, and mining, with potential for increased costs from new climate policies - Operations are subject to a wide range of regulations covering worker safety (OSHA), transportation (DOT, FMCSA), environmental protection (EPA), and mine safety (MSHA)[100](index=100&type=chunk)[102](index=102&type=chunk)[106](index=106&type=chunk)[130](index=130&type=chunk) - Hydraulic fracturing is regulated by state commissions, but federal agencies like the EPA have asserted authority over aspects such as the use of diesel fluids and wastewater disposal, creating potential for increased costs and restrictions[123](index=123&type=chunk) - The Biden administration's executive orders regarding climate change, methane emissions, and leasing on public lands create regulatory uncertainty that could increase costs for the company's oilfield services operations[229](index=229&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, high customer concentration, non-payment from PREPA, Gulfport bankruptcy, government investigations, and oil and gas market volatility, alongside common stock ownership concentration - The business is adversely affected by the COVID-19 pandemic, which has disrupted the economy and reduced demand for oil and natural gas[145](index=145&type=chunk) - The company has significant customer concentration, with the top five customers accounting for **50% of revenue in 2020**, and potential loss or non-payment from major customers like PREPA (owed ~**$301 million** including interest) or Gulfport (filed for Chapter 11 bankruptcy) presents a material risk[146](index=146&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - The company is subject to ongoing investigations by the SEC and DOJ, as well as multiple lawsuits, related to its contracts with PREPA, which could have a material adverse effect on the business[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Two major stockholders, Wexford (**48.2%**) and Gulfport (**21.5%**), control a significant percentage of the common stock, and their interests may conflict with those of other stockholders[246](index=246&type=chunk) [Unresolved Staff Comments](index=55&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[266](index=266&type=chunk) [Properties](index=55&type=section&id=Item%202.%20Properties) The company's headquarters are in Oklahoma City, with 15 owned and 35 leased properties, including Wisconsin sand proppant facilities with a total permitted capacity of **5.7 million tons per year** and **62.7 million tons** of proven reserves Sand Plant Annual Rated Production Capacity (as of Dec 31, 2020) | Plant Location | Type | Annual Rated Capacity (Thousands of Tons) | | :--- | :--- | :--- | | Taylor, WI | Wet | 2,646 | | Piranha, WI | Wet | 4,704 | | Muskie, WI | Wet | 1,314 | | Taylor, WI | Dry | 2,190 | | Piranha, WI | Dry | 2,628 | | Muskie, WI | Dry | 876 | Estimated Proven Sand Reserves (Thousands of Tons) | Mine Location | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | :--- | | Taylor, WI | 24,691 | 25,121 | 26,325 | | Piranha, WI | 38,050 | 41,001 | 42,358 | | **Total** | **62,741** | **66,122** | **68,683** | - Production at the Muskie facility in Plum City, Wisconsin has been temporarily idled since September 2018 due to adverse market conditions[272](index=272&type=chunk) [Legal Proceedings](index=58&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in significant investigations and legal proceedings related to PREPA receivables, DOJ and SEC inquiries, and litigation with Gulfport, alongside other routine business disputes - The company is involved in significant legal proceedings and investigations, particularly related to its contracts with PREPA and disputes with Gulfport Energy[281](index=281&type=chunk) [Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company's mining operations are subject to the Federal Mine Safety and Health Act of 1977, with detailed safety violation information provided in Exhibit 95.1 - The company's operations are subject to stringent health and safety standards from the Mine Safety and Health Administration (MSHA)[284](index=284&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=60&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "TUSK," with **39 holders of record** as of February 2021, and quarterly dividends suspended in July 2019 due to market conditions - The company's common stock is traded on the Nasdaq Global Select Market under the symbol "TUSK"[286](index=286&type=chunk) - The quarterly cash dividend was suspended in July 2019 due to oilfield market conditions and issues with collections from PREPA[289](index=289&type=chunk) [Selected Financial Data](index=61&type=section&id=Item%206.%20Selected%20Financial%20Data) The company presents five years of selected historical financial data, showing a significant revenue decline from **$1.69 billion in 2018** to **$313 million in 2020**, with net losses in 2019 and 2020 Selected Historical Financial Data (in thousands, except per share data) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $313,076 | $625,012 | $1,690,084 | $691,496 | $230,625 | | **Operating (loss) income** | $(149,317) | $(128,383) | $394,451 | $62,771 | $(34,630) | | **Net (loss) income** | $(107,607) | $(79,044) | $235,965 | $58,964 | $(92,453) | | **Net (loss) income per share (diluted)** | $(2.36) | $(1.76) | $5.24 | $1.42 | $(2.94) | | **Cash flows from operations** | $6,967 | $(95,318) | $386,668 | $57,616 | $29,689 | | **Total assets** | $824,562 | $952,385 | $1,073,091 | $867,243 | $502,362 | | **Long-term debt** | $81,338 | $80,000 | $— | $99,900 | $— | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=64&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 2020 financial decline to the COVID-19 pandemic and commodity price volatility, resulting in a **50% revenue fall**, a **$108 million net loss**, and **$68 million in impairment charges**, with a conservative **$9 million** 2021 capital budget [Results of Operations](index=70&type=section&id=Results%20of%20Operations) Revenue decreased **50% to $313 million** in 2020 due to the PREPA contract conclusion and oilfield activity decline, leading to a wider operating loss of **$149 million** and **$68 million** in impairment charges Revenue by Segment (2020 vs. 2019, in thousands) | Segment | 2020 | 2019 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Infrastructure services | $155,241 | $213,264 | $(58,023) | -27% | | Well completion services | $88,325 | $243,802 | $(155,477) | -64% | | Natural sand proppant services | $34,360 | $97,063 | $(62,703) | -65% | | Drilling services | $7,785 | $31,964 | $(24,179) | -76% | | **Total Revenue** | **$313,076** | **$625,012** | **$(311,936)** | **-50%** | - The company recorded goodwill impairment of **$55.0 million** and other long-lived asset impairment of **$12.9 million** in 2020, compared to **$33.7 million** and **$7.4 million**, respectively, in 2019[344](index=344&type=chunk)[345](index=345&type=chunk) - Revenue in 2019 decreased by **$1.1 billion (63%)** compared to 2018, primarily due to an **$873 million** decline in infrastructure services revenue following the conclusion of the PREPA contract on March 31, 2019[349](index=349&type=chunk) [Non-GAAP Financial Measures](index=79&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA and Adjusted Net Loss as non-GAAP measures, with Consolidated Adjusted EBITDA at **$50.0 million** in 2020 and Adjusted Net Loss at **$39.7 million** Consolidated Adjusted EBITDA Reconciliation (in thousands) | | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net (loss) income | $(107,607) | $(79,044) | $235,965 | | Adjustments... | ... | ... | ... | | **Adjusted EBITDA** | **$49,952** | **$77,283** | **$547,268** | Adjusted Net (Loss) Income Reconciliation (in thousands) | | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net (loss) income, as reported | $(107,607) | $(79,044) | $235,965 | | Impairment of goodwill | 54,973 | 33,664 | 3,203 | | Impairment of other long-lived assets | 12,897 | 7,358 | 5,652 | | Equity based compensation | — | — | 17,487 | | **Adjusted net (loss) income** | **$(39,737)** | **$(38,022)** | **$262,307** | [Liquidity and Capital Resources](index=82&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources are cash from operations and a revolving credit facility, with **$14.8 million** cash and **$39 million** available capacity as of December 2020, and a **$9 million** capital budget for 2021 - As of December 31, 2020, the company had **$14.8 million** in cash and **$39 million** available under its revolving credit facility[383](index=383&type=chunk)[394](index=394&type=chunk) - Capital expenditures were reduced to **$6.8 million** in 2020, down from **$35.8 million** in 2019 and **$191.9 million** in 2018[389](index=389&type=chunk) - The capital expenditure budget for 2021 is estimated at **$9 million**, with **$6 million** allocated to the infrastructure segment[398](index=398&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=91&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from oil and natural gas industry volatility, interest rate risk on its revolving credit facility, and significant customer credit risk exacerbated by the pandemic - The company's primary market risk is its exposure to the volatility of the oil and natural gas industry, which is influenced by commodity prices and E&P spending[431](index=431&type=chunk) - The company has interest rate risk on its **$78 million** of borrowings under its revolving credit facility, where a **1%** change in interest rates would affect annual interest expense by approximately **$1 million**[435](index=435&type=chunk) - The company is subject to significant customer credit risk, which is enhanced by the COVID-19 pandemic and depressed commodity price environment[437](index=437&type=chunk) [Financial Statements and Supplementary Data](index=92&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the consolidated financial statements and supplementary data which begin on page F-1 of the report - The information required by this item appears beginning on page F-1 of the report[440](index=440&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=92&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - Not applicable[441](index=441&type=chunk) [Controls and Procedures](index=92&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[444](index=444&type=chunk) - Management determined that the company maintained effective internal control over financial reporting as of December 31, 2020, based on the 2013 COSO framework[447](index=447&type=chunk) [Other Information](index=94&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - Not applicable[449](index=449&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=95&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's definitive Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement[452](index=452&type=chunk) [Executive Compensation](index=95&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement[454](index=454&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=95&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners, management, and related stockholder matters is incorporated by reference from the company's definitive Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement[455](index=455&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=95&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement[456](index=456&type=chunk) [Principal Accountant Fees and Services](index=95&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement[457](index=457&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=96&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report, with schedules omitted if not applicable - This section contains a list of all exhibits filed with the 10-K, including corporate governance documents, material contracts, and certifications[462](index=462&type=chunk) [Form 10-K Summary](index=98&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None[466](index=466&type=chunk)

Financial Performance - 4Q 2020 revenues were approximately $85 million, with a net loss of approximately $12 million and adjusted EBITDA of approximately $8 million[7] - Approximately 66% of the revenue in 4Q 2020 was generated from the infrastructure segment[7, 48] - The company's capex for the period was approximately $1 million[7] - Operating cash flows were approximately $5 million[7] Infrastructure Segment - Infrastructure revenues increased significantly, reaching $55.9 million in 4Q 2020[32] - Infrastructure EBITDA has stabilized and commenced a growth trajectory[31] - Approximately 50% of the company's 2020 revenue was generated from the Infrastructure segment[48] Oil Field Services - The company has a fully integrated oil field service capability, including pressure pumping fleets and sand mines[40] Strategy and Outlook - The company is focused on identifying growth opportunities and integrating them into its culture[41, 42] - The company's 2021 capex budget is approximately $9 million, with allocations for well completions, infrastructure, and other projects[54] - Utilities are investing heavily in the electrical grid, driving growth in the infrastructure sector[33]

Financial Data and Key Metrics Changes - The company's revenue for Q3 2020 was $71 million, an increase from $60 million in Q2 2020, primarily driven by higher infrastructure revenue [17] - Net income for Q3 2020 was $3 million, compared to a net loss of $15 million in Q2 2020, resulting in a net profit of $0.07 per diluted share [18] - Adjusted EBITDA for Q3 2020 was $22 million, up from $7 million in Q2 2020 [18] - Capital expenditures (CapEx) for Q3 2020 were approximately $2 million, with a total of $6 million spent in the first nine months of the year [19] Business Line Data and Key Metrics Changes - The infrastructure division's gross margin was 34% in Q3 2020, with EBITDA growth exceeding 300% to 350% quarter-over-quarter when excluding interest on PREPA receivables [9] - The oil field segment faced challenges due to ongoing low oil prices, with 449 stages pumped using one fleet on average during Q3 2020 [13][14] - The sand division sold approximately 68,000 tons of sand at an average price of $15.59 per ton during Q3 2020 [14] Market Data and Key Metrics Changes - The infrastructure business is experiencing significant demand, particularly due to storm recovery efforts from hurricanes Laura, Delta, and Zeta [8] - The oil field service market remains constrained, with customers indicating limited incremental work due to ongoing pricing challenges [13] Company Strategy and Development Direction - The company is focusing on a diversification strategy, integrating engineering and manufacturing operations into its infrastructure offerings to lower costs and expand its customer base [10][12] - The management team is optimistic about future growth opportunities in the infrastructure sector, particularly in engineering, procurement, and construction (EPC) bidding [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by the COVID-19 pandemic but noted that the infrastructure business is positioned for growth [7][15] - The company is actively pursuing various avenues to collect receivables from PREPA, with ongoing communication and legal efforts [35][36] Other Important Information - The company ended Q3 2020 with approximately $14 million in cash and $90 million in debt [19] - The management team emphasized the importance of maintaining cost controls and preparing for a potential market recovery in the oil field segment [30] Q&A Session Summary Question: How to assess the performance of infrastructure in Q3 regarding storm-driven work versus structural changes? - Management indicated that while storm work contributed, the infrastructure team was already performing well prior to the storms, with growing bidding opportunities [24][25] Question: Will infrastructure results in Q4 differ materially from Q3? - Management expects Q4 results for infrastructure to be in a similar range as Q3 [27] Question: What capital allocation might be considered for infrastructure in 2021? - Management is still formulating the annual operating plan but is optimistic about cash position improvements and bidding opportunities [28][29] Question: What is the current status of the sand market? - The company noted a decline in Northern White mines and a challenging pricing environment, but demand has picked up slightly recently [31][32] Question: Update on efforts to collect from PREPA? - Management continues to pursue various avenues for collection, including communication with PREPA and legal actions [35][36]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 001-37917 Mammoth Energy Services, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0498321 (State or other jurisdiction o ...