Mammoth Energy Services(TUSK) - 2025 Q2 - Quarterly Results

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