1Q 2020 Earnings Presentation May 2020 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," "en ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 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 of incorporatio ...

Part I [Business](index=8&type=section&id=Item%201.%20Business) Mammoth Energy Services is an integrated company serving North American electric utility and oil and gas industries, strategically shifting towards broader industrial focus - The company operates through four reportable segments: infrastructure, pressure pumping, natural sand proppant, and drilling services, with drilling newly designated in 2019[27](index=27&type=chunk) - In Q4 2019, the company initiated a strategic shift towards a broader industrial focus by starting infrastructure engineering and oilfield equipment manufacturing operations[24](index=24&type=chunk) - Customer concentration is high, with the top five customers accounting for **53% of revenue in 2019**, including PREPA (**15%**) and Gulfport Energy Corporation (**20%**)[26](index=26&type=chunk)[95](index=95&type=chunk) [Our Services](index=9&type=section&id=Item%201.%20Business%20-%20Our%20Services) The company offers diverse services including electrical grid work, hydraulic fracturing, and frac sand mining, with some operations temporarily suspended due to market conditions - The company's substantial revenue-generating work for PREPA in Puerto Rico concluded on **March 31, 2019**, with PREPA owing approximately **$227 million** for services plus **$42 million** in interest as of December 31, 2019[29](index=29&type=chunk)[30](index=30&type=chunk) - The company owns six pressure pumping fleets with an aggregate capacity of **291,750 horsepower**, but a long-term contract with key customer Gulfport is currently under dispute[34](index=34&type=chunk)[37](index=37&type=chunk)[44](index=44&type=chunk) - Due to market conditions, the company temporarily shut down flowback, cementing, and acidizing operations in July 2019, and contract land drilling operations in December 2019[50](index=50&type=chunk)[62](index=62&type=chunk)[71](index=71&type=chunk) [Our Industries](index=15&type=section&id=Item%201.%20Business%20-%20Our%20Industries) The company operates in the Electric Infrastructure, Oil and Natural Gas, and Natural Sand Proppant industries, all subject to distinct market dynamics and volatility - The frac sand market became oversupplied in the second half of 2019 due to new capacity additions and customer capital discipline, leading to significant price drops and mine idling[86](index=86&type=chunk) - Demand for oil and gas services weakened in Q3 and Q4 2019 due to customer budget exhaustion and capital discipline, despite relatively stable oil prices throughout the year[79](index=79&type=chunk)[80](index=80&type=chunk) [Our Strengths and Business Strategy](index=19&type=section&id=Item%201.%20Business%20-%20Our%20Strengths%20and%20Business%20Strategy) The company leverages long-term customer relationships and strategic positioning, aiming to expand through accretive acquisitions and maintain a conservative balance sheet - A key strategy is to expand through selective, accretive acquisitions, primarily focusing on infrastructure services, completion and production services, and industrial-based companies[93](index=93&type=chunk) - The company aims to capitalize on activity in unconventional resource plays like the Utica Shale, SCOOP/STACK, and Permian Basin by strategically deploying specialized equipment and personnel[90](index=90&type=chunk)[97](index=97&type=chunk) [Marketing, Customers, and Backlog](index=21&type=section&id=Item%201.%20Business%20-%20Marketing%2C%20Customers%2C%20and%20Backlog) The company serves approximately 590 customers with significant concentration, and its infrastructure services backlog is substantial but largely non-binding Top Customer Revenue Concentration | Year | Top 5 Customers' % of Revenue | PREPA % of Revenue | Gulfport % of Revenue | | :--- | :--- | :--- | :--- | | 2019 | 53% | 15% | 20% | | 2018 | 77% | 60% | 8% | | 2017 | 71% | 29% | 30% | - As of December 31, 2019, the infrastructure services backlog was **$490 million**, entirely from continental U.S. operations, with an estimated **$148 million** to be realized in 2020[96](index=96&type=chunk) - Approximately **$479 million** of the backlog is from master service agreements where customers are not contractually committed to minimum service purchases and can often be canceled on short notice[97](index=97&type=chunk) [Regulation](index=23&type=section&id=Item%201.%20Business%20-%20Regulation) The company's operations are subject to extensive regulations, including transportation, environmental, and mine safety, with hydraulic fracturing facing increasing scrutiny - The company's trucking operations are subject to DOT and FMCSA regulations, holding a "satisfactory" rating as of December 31, 2019[112](index=112&type=chunk)[114](index=114&type=chunk) - Hydraulic fracturing faces increased public and regulatory scrutiny, with federal agencies asserting authority and potential legislative proposals to restrict or increase costs[132](index=132&type=chunk)[138](index=138&type=chunk) - The Mine Safety and Health Administration (MSHA) has primary jurisdiction over the company's commercial silica operations, conducting at least two annual inspections of its production facilities[139](index=139&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from high customer concentration, particularly the PREPA non-payment and Gulfport dispute, alongside government investigations and industry cyclicality - A significant risk is the potential non-collection of approximately **$227 million** (plus **$42 million** in interest) owed by PREPA, which is in bankruptcy, with recovery efforts currently stayed by the court[148](index=148&type=chunk)[150](index=150&type=chunk) - The company is under investigation by the SEC and DOJ related to its PREPA contracts, following a criminal indictment against a former subsidiary president, leading to multiple class action and derivative lawsuits[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - Gulfport, a major customer, filed a lawsuit in December 2019 seeking to terminate its pressure pumping contract and recover alleged damages, which could materially impact the segment[159](index=159&type=chunk) - The company amended its revolving credit facility on **February 26, 2020**, to avoid a potential breach of financial covenants that could have occurred as early as Q1 2020[161](index=161&type=chunk)[162](index=162&type=chunk) [Unresolved Staff Comments](index=56&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[278](index=278&type=chunk) [Properties](index=57&type=section&id=Item%202.%20Properties) The company's corporate headquarters are in Oklahoma City, with owned and leased properties, and key natural sand proppant facilities in Wisconsin with significant capacity and reserves Sand Production Facility Rated Capacity (as of Dec 31, 2019) | Plant Location | Annual Rated Dry Plant Capacity (Thousands of Tons) | | :--- | :--- | | Taylor (Jackson County, WI) | 2,190 | | Piranha (Barron County, WI) | 2,628 | | Muskie (Pierce County, WI) | 876 | | **Total** | **5,694** | Estimated Proven Sand Reserves (Thousands of Tons) | Mine Location | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Taylor (Jackson County, WI) | 25,121 | 26,325 | | Piranha (Barron County, WI) | 41,001 | 42,358 | | **Total** | **66,122** | **68,683** | - Due to adverse market conditions, production at the Muskie facility in Pierce County, Wisconsin has been temporarily idled since September 2018[286](index=286&type=chunk) [Legal Proceedings](index=59&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in several significant investigations and legal proceedings, including those related to PREPA contracts and a dispute with Gulfport Energy - The company is involved in significant legal proceedings and investigations related to its contracts with PREPA and a contract dispute with Gulfport, as detailed in Item 1A and Note 20 of the report[295](index=295&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 of 1977, with required disclosures included in Exhibit 95.1 - The company's operations are subject to stringent health and safety standards from the Mine Safety and Health Administration (MSHA)[298](index=298&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=61&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, but quarterly dividends were suspended in July 2019 due to market conditions and PREPA collection issues, with no equity repurchases Cash Dividends Paid Per Share | Year | Total Dividends Paid (in thousands) | Per Share | | :--- | :--- | :--- | | 2019 | $11,219 | $0.25 | | 2018 | $11,201 | $0.25 | - In July 2019, the board of directors suspended the quarterly cash dividend due to oilfield market conditions and challenges with collecting payments from PREPA[304](index=304&type=chunk) [Selected Financial Data](index=62&type=section&id=Item%206.%20Selected%20Financial%20Data) The company's financial performance shows significant volatility, with revenue peaking in 2018 at **$1.69 billion** before falling to **$625 million** in 2019, resulting in a net loss and increased long-term debt Selected Historical Financial Data (in thousands, except per share data) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $625,012 | $1,690,084 | $691,496 | $230,625 | $367,937 | | **Operating (Loss) Income** | $(128,383) | $394,451 | $62,771 | $(34,630) | $(15,773) | | **Net (Loss) Income** | $(79,044) | $235,965 | $58,964 | $(92,453) | $(21,820) | | **Net (Loss) Income per Share (diluted)** | $(1.76) | $5.24 | $1.42 | $(2.94) | $(0.73) | | **Cash flows from operations** | $(95,318) | $386,668 | $57,616 | $29,689 | $69,639 | | **Total Assets** | $952,385 | $1,073,091 | $867,243 | $502,362 | $536,412 | | **Long-term Debt** | $80,000 | $0 | $99,900 | $0 | $95,000 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=65&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 2019 financial downturn to the end of the PREPA contract and oil and gas market weakness, leading to a net loss, impairments, and credit facility amendments [Results of Operations](index=70&type=section&id=Item%207.%20MD%26A%20-%20Results%20of%20Operations) Total revenue decreased by **$1.1 billion** (63%) from 2018 to 2019, primarily due to the PREPA contract ending, leading to an operating loss and significant impairment charges Revenue by Segment (2019 vs. 2018, in thousands) | Segment | 2019 | 2018 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Infrastructure services | $214,449 | $1,082,371 | $(867,922) | -80% | | Pressure pumping services | $246,350 | $369,492 | $(123,142) | -33% | | Natural sand proppant services | $99,590 | $168,275 | $(68,685) | -41% | | Drilling services | $32,226 | $66,653 | $(34,427) | -52% | | **Total Revenue** | **$625,012** | **$1,690,084** | **$(1,065,072)** | **-63%** | - The company recorded impairment charges of **$33.7 million** for goodwill and **$7.4 million** for other long-lived assets in 2019, compared to **$3.2 million** and **$5.7 million**, respectively, in 2018[364](index=364&type=chunk)[365](index=365&type=chunk) - Other income increased significantly in 2019 due to the recognition of **$42 million** in interest on delinquent trade accounts receivable from PREPA[367](index=367&type=chunk) [Non-GAAP Financial Measures](index=77&type=section&id=Item%207.%20MD%26A%20-%20Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA and Adjusted Net Income as supplemental non-GAAP measures, both showing sharp declines in 2019 reflecting severe operating performance Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Net (loss) income** | **$(79,044)** | **$235,965** | **$58,964** | | Depreciation, depletion, amortization & accretion | $117,033 | $119,877 | $92,124 | | Impairment of goodwill & other long-lived assets | $41,022 | $8,855 | $4,146 | | Interest on delinquent accounts receivable | $42,040 | $0 | $0 | | Other adjustments | $(43,768) | $82,571 | $10,054 | | **Adjusted EBITDA** | **$77,283** | **$547,268** | **$165,288** | Adjusted Net (Loss) Income (in thousands) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net (Loss) Income, as reported | $(79,044) | $235,965 | | Adjustments (Impairment, Equity Comp) | $41,022 | $26,342 | | **Adjusted Net (Loss) Income** | **$(38,022)** | **$262,307** | [Liquidity and Capital Resources](index=81&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) Liquidity tightened significantly in 2019, with cash dropping and net cash used in operations, leading to a credit facility amendment and reduced capital expenditures for 2020 - On **February 26, 2020**, the company amended its revolving credit facility to avoid a potential covenant breach, reducing the maximum borrowing amount to **$130 million** while providing more flexible covenants[415](index=415&type=chunk)[416](index=416&type=chunk) Capital Expenditures by Segment (in thousands) | Segment | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Infrastructure services | $5,643 | $100,701 | $20,144 | | Pressure pumping services | $14,703 | $33,774 | $85,853 | | Natural sand proppant services | $2,877 | $17,935 | $16,376 | | Drilling services | $3,156 | $13,398 | $8,927 | | Other | $9,382 | $26,135 | $2,553 | | **Total** | **$35,761** | **$191,943** | **$133,853** | Contractual Obligations as of Dec 31, 2019 (in thousands) | Obligation Type | Total | Less than 1 year | 1-3 Years | 3-5 Years | | :--- | :--- | :--- | :--- | :--- | | Long-term debt | $80,000 | $0 | $0 | $80,000 | | Operating lease obligations | $46,831 | $17,948 | $21,928 | $6,074 | | Purchase commitments | $25,245 | $24,416 | $821 | $8 | [Critical Accounting Policies and Estimates](index=87&type=section&id=Item%207.%20MD%26A%20-%20Critical%20Accounting%20Policies%20and%20Estimates) Management identifies several critical accounting policies requiring significant estimates and judgments, including allowance for doubtful accounts, impairment assessments, and revenue recognition - A significant estimate is the allowance for doubtful accounts, especially given the **$227 million** receivable from PREPA, which is in bankruptcy, though the company believes the amount is collectible[442](index=442&type=chunk)[550](index=550&type=chunk) - The company tests goodwill for impairment annually and long-lived assets when triggering events occur, with these tests relying on uncertain estimates of future undiscounted cash flows and fair value[444](index=444&type=chunk)[445](index=445&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=90&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to commodity price risk, interest rate risk through its revolving credit facility, and minor foreign currency risk from its Canadian operations - The company has interest rate risk on its **$80 million** of outstanding debt under its credit facility, where a **1%** change in interest rates would impact annual interest expense by approximately **$1 million**[456](index=456&type=chunk) - The company is exposed to foreign currency risk from its Canadian remote accommodation business, which generates revenue and incurs expenses in Canadian dollars[457](index=457&type=chunk) [Financial Statements and Supplementary Data](index=91&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section indicates that the company's audited consolidated financial statements and supplementary data are included in the report, beginning on page F-1 - The required financial statements and supplementary data are located starting on page F-1 of the report[461](index=461&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=91&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[462](index=462&type=chunk) [Controls and Procedures](index=91&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2019, 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, 2019[464](index=464&type=chunk) - The independent auditor, Grant Thornton LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2019[469](index=469&type=chunk)[471](index=471&type=chunk) [Other Information](index=94&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - Not applicable[478](index=478&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 for the 2020 Annual Meeting of Stockholders [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 for the 2020 Annual Meeting of Stockholders [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 is incorporated by reference from the company's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders [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 related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders [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 for the 2020 Annual Meeting of Stockholders 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, including various agreements and certifications [Form 10-K Summary](index=98&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary - None[495](index=495&type=chunk)

4Q 2019 Earnings Presentation February 2020 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, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2019 o 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019 o 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2019 o 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 Indicate by check mark whether the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 incorporation or organization) 14201 Cali ...