GlobeNewswire Inc | Jul 30, 2021 06:00AM EDT

July 30, 2021

OKLAHOMA CITY, July 30, 2021 (GLOBE NEWSWIRE) -- Mammoth Energy Services, Inc. (Mammoth or the Company) (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June30, 2021.

Financial Overview for the Second Quarter 2021:

Total revenue was $47.4 million for the second quarter of 2021, as compared to $60.1 million for the same quarter last year and $66.8million for the first quarter of 2021.

Net loss for the second quarter of 2021 was $34.8 million, or a $0.75 loss per share, as compared to a net loss of $15.2 million, or a $0.33 loss per share, for the same quarter last year, and a net loss of $12.4million, or a $0.27 loss per share, for the first quarter of 2021.

Adjusted EBITDA (as defined and reconciled below) was ($5.5) million for the second quarter of 2021, as compared to $6.9 million for the same quarter last year and $6.4million for the first quarter of 2021.

Arty Straehla, Chief Executive Officer of Mammoth commented, While second quarter results did not meet expectations, internally we remain focused on improving near-term results as we continue migrating the Company further into the infrastructure space to enhance long-term growth and sustainability. In our energy businesses, improved commodities pricing is generating some positive industry movement and increased equipment utilization as we are ramping up to put a second hydraulic fracturing fleet to work in mid-August. We are also beginning to experience increased market activity in our sand business.

In the infrastructure space, improving macro trends related to increased project bidding levels and funding capacity in the sector persists. We continue to pursue opportunities within this sector as we strategically structure our service offerings for growth, both the geographic footprint and depth of projects.

Straehla continued, Lastly, we are continuing our efforts to collect our receivable from PREPA for work performed by our subsidiary Cobra in Puerto Rico. We believe that published documentation to date continues to show that our team performed a difficult job in a difficult environment to save lives and aid the people of Puerto Rico in their time of need.

Infrastructure ServicesMammoth's infrastructure services division contributed revenue (inclusive of inter-segment revenue) of $17.2 million, or approximately 36% of Mammoth's total revenue, for the second quarter of 2021, as compared to $30.2 million for the same quarter last year and $29.3 million for the first quarter of 2021. The decrease in revenue compared to the same quarter of 2020 and first quarter of 2021 is primarily due to management and crew turnover.

Well Completion ServicesMammoth's well completion services division contributed revenue (inclusive of inter-segment revenue) of $17.4 million on 520 stages for the second quarter of 2021, as compared to $16.5 million on 658 stages for the same quarter last year and $23.0 million on 445 stages for the first quarter of 2021. On average, 0.9 of the Company's fleets were active for the second quarter, compared to an average utilization of 1.9 fleets during the same quarter last year and an average utilization of 0.9 fleets during the first quarter of 2021. Natural Sand Proppant ServicesMammoth's natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $6.9 million for the second quarter of 2021, as compared to $6.2 million for the same quarter last year and $8.7 million for the first quarter of 2021. In the second quarter of 2021, the Company sold approximately 255,000 tons of sand at an average sales price of $15.80 per ton, as compared to sales of approximately 82,000 tons of sand at an average sales price of $15.18 per ton during the same quarter last year. In the first quarter of 2021, sales were approximately 171,000 tons of sand at an average price of $16.83 per ton.

Drilling ServicesMammoth's drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.1 million for the second quarter of 2021, as compared to $1.2 million for the same quarter last year and $0.9 million for the first quarter of 2021.

As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.

Other ServicesMammoth's other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation, remote accommodations, equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of $5.5 million for the second quarter of 2021, as compared to $6.8 million for the same quarter last year and $5.7 million for the first quarter of 2021.

As a result of market conditions, the Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.

Selling, General and Administrative Expenses Selling, general and administrative (SG&A) expenses were $12.0 million for the second quarter of 2021, as compared to $13.7 million for the same quarter last year and $20.8 million for the first quarter of 2021.

Following is a breakout of SG&A expense (in thousands):

Three Months Ended Six Months Ended June 30, March 31, June 30, 2021 2020 2021 2021 2020Cash expenses: Compensation and benefits $ 3,333 $ 3,720 $ 4,694 $ 8,027 $ 7,690 Professional services 5,806 6,147 3,405 9,211 9,684 Other^(a) 2,464 2,100 2,342 4,806 4,409 Total cash SG&A expense 11,603 11,967 10,441 22,044 21,783 Non-cash expenses: Bad debt provision 76 1,624 10,125 10,201 1,679 Stock based compensation 304 135 282 586 1,035 Total non-cash SG&A 380 1,759 10,407 10,787 2,714 expenseTotal SG&A expense $ 11,983 $ 13,726 $ 20,848 $ 32,831 $ 24,497 a.Includestravel-related costs,information technologyexpenses, rent, utilities and other general andadministrative-relatedcosts.

SG&A expenses, as a percentage of total revenue, were 25% for the second quarter of 2021, as compared to 23% for the same quarter last year and 31% for the first quarter of 2021. The bad debt provision for the first quarter of 2021 includes $10.0 million related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

LiquidityAs of June30, 2021, Mammoth had cash on hand of $11.0 million, outstanding borrowings under its revolving credit facility of $60.2 million and $51.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit. As of June30, 2021, Mammoth had total liquidity of $62.1 million.

As of July27, 2021, Mammoth had cash on hand of $13.7 million, outstanding borrowings under its revolving credit facility of $61.4 million and $49.8 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit.

Capital ExpendituresThe following table summarizes Mammoth's capital expenditures by operating division for the periods indicated (in thousands):

Three Months Ended Six Months Ended June 30, March 31, June 30, 2021 2020 2021 2021 2020Infrastructure $ 104 $ 43 $ 189 $ 293 $ 43 services^(a)Wellcompletion 388 2,450 412 800 3,054 services^(b)Natural sandproppant 5 354 408 413 875 services^(c)Drilling 1 67 37 38 67 services^(d)Other^(e) 63 10 102 165 385 Total capital $ 561 $ 2,924 $ 1,148 $ 1,709 $ 4,424 expendituresa. Capital expenditures primarily for tooling and other equipment for theperiods presented.b. Capital expenditures primarily for upgrades to our pressure pumping fleetto reduce greenhouse gas emissions and water transfer equipment for the periodspresented.c.Capital expenditures primarily for maintenance for the periodspresented.d.Capital expenditures primarily for maintenance for the periodspresented.e.Capital expenditures primarily for equipment for the Company's rentalbusinesses for the periods presented.

Conference Call InformationMammoth will host a conference call on Friday, July 30, 2021 at 8:00 a.m. CDT (9:00 a.m. EDT) to discuss its second quarter 2021 financial and operational results. The telephone number to access the conference call is 216-562-0385. The conference call will also be webcast live on https://ir.mammothenergy.com/events-presentations.

About Mammoth Energy Services, Inc.Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoths suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.

Contacts:Mark Layton, CFOMammoth Energy Services, Incinvestors@mammothenergy.com

Rick Black / Ken DennardDennard Lascar Investor RelationsTUSK@dennardlascar.com

Forward-Looking Statements and Cautionary StatementsThis news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute forward-looking statements within the meaning of Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. 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, expect, if, intend, plan, estimate, project, forecasts, predict, outlook, aim, will, could, should, potential, would, may, probable, likely and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on managements current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company's subsidiary Cobra Acquisitions LLC by the Puerto Rico Electric Power Authority and contracts for our pressure pumping services and natural sand proppant services; the Company's inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions; the loss of or interruption in operations of one or more of Mammoth's significant suppliers or customers; the outcome or settlement of our litigation matters, including our litigation with Gulfport Energy Corporation and MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations ; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.

Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.

MAMMOTH ENERGY SERVICES, INC.CONSOLIDATED BALANCE SHEETS

ASSETS June 30, December 31, 2021 2020CURRENT ASSETS (in thousands)Cash and cash equivalents $ 11,038 $ 14,822 Short-term investment 1,757 1,750 Accounts receivable, net 413,245 393,112 Receivables from related parties, net 80 28,461 Inventories 10,212 12,020 Prepaid expenses 7,936 13,825 Other current assets 708 758 Other current assets - related parties ? ? Total current assets 444,976 464,748 Property, plant and equipment, net 210,397 251,262 Sand reserves 65,491 65,876 Operating lease right-of-use assets 15,777 20,179 Intangible assets, net - customer relationships 321 408 Intangible assets, net - trade names 3,946 4,366 Goodwill 12,608 12,608 Deferred income tax asset 8,094 ? Other non-current assets 4,329 5,115 Total assets $ 765,939 $ 824,562 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 39,505 $ 40,316 Payables to related parties 4 3 Accrued expenses and other current liabilities 63,375 44,408 Current operating lease liability 7,255 8,618 Current portion of long-term debt 1,430 1,165 Income taxes payable 35,198 34,088 Total current liabilities 146,767 128,598 Long-term debt, net of current portion 62,811 81,338 Deferred income tax liabilities 12,041 24,741 Long-term operating lease liability 8,293 11,377 Asset retirement obligation 3,666 4,746 Other liabilities 15,159 10,435 Total liabilities 248,737 261,235 COMMITMENTS AND CONTINGENCIES EQUITY Equity: Common stock, $0.01 par value, 200,000,000shares authorized, 46,680,731 and 45,769,283 467 458 issued and outstanding at June 30, 2021 andDecember 31, 2020Additional paid in capital 537,728 537,039 Retained earnings (18,335 ) 28,895 Accumulated other comprehensive loss (2,658 ) (3,065 ) Total equity 517,202 563,327 Total liabilities and equity $ 765,939 $ 824,562

MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

Three Months Ended Six Months Ended June 30, March 31, June 30, 2021 2020 2021 2021 2020 (in thousands, except per share amounts)REVENUE Services $ 40,867 $ 44,878 $ 42,691 $ 83,558 $ 113,723 revenueServicesrevenue - 90 8,650 14,986 15,076 26,663 relatedpartiesProduct 6,483 4,706 6,982 13,465 13,356 revenueProductrevenue - ? 1,875 2,145 2,145 3,750 relatedpartiesTotal revenue 47,440 60,109 66,804 114,244 157,492 COST AND EXPENSESServices costof revenue(exclusive ofdepreciation,depletion,amortizationand accretionof $17,861,$21,750,$18,989,$36,850 and 43,103 42,255 42,062 85,165 112,952 $45,305,respectively,for the threemonths endedJune 30, 2021,June 30, 2020and March 31,2021 and sixmonths endedJune 30, 2021and 2020)Services costof revenue -relatedparties(exclusive ofdepreciation,depletion,amortizationand accretionof $0, $0, $0,$0 and $0, 107 97 109 216 198 respectively,for the threemonths endedJune 30, 2021,June 30, 2020and March 31,2021 and sixmonths endedJune 30, 2021and 2020)Product costof revenue(exclusive ofdepreciation,depletion,amortizationand accretionof $2,384,$2,346,$2,137, $4,521and $4,654, 7,165 6,401 5,909 13,074 17,509 respectively,for the threemonths endedJune 30, 2021,June 30, 2020and March 31,2021 and sixmonths endedJune 30, 2021and 2020)Selling,general and 11,791 13,528 20,655 32,446 24,084 administrativeSelling,general andadministrative 192 198 193 385 413 - relatedpartiesDepreciation,depletion, 20,265 24,116 21,146 41,411 49,998 amortizationand accretionImpairment of ? ? ? ? 54,973 goodwillImpairment ofother ? ? ? ? 12,897 long-livedassetsTotal cost and 82,623 86,595 90,074 172,697 273,024 expensesOperating loss (35,183 ) (26,486 ) (23,270 ) (58,453 ) (115,532 ) OTHER INCOME (EXPENSE)Interest (1,169 ) (1,471 ) (1,225 ) (2,394 ) (3,109 ) expense, netOther(expense) (14,998 ) 8,137 9,947 (5,051 ) 15,546 income, netOther(expense)income, net - ? 1,133 (515 ) (515 ) 1,133 relatedpartiesTotal other(expense) (16,167 ) 7,799 8,207 (7,960 ) 13,570 incomeLoss before (51,350 ) (18,687 ) (15,063 ) (66,413 ) (101,962 ) income taxesBenefit for (16,560 ) (3,482 ) (2,623 ) (19,183 ) (2,786 ) income taxesNet loss $ (34,790 ) $ (15,205 ) $ (12,440 ) $ (47,230 ) $ (99,176 ) OTHERCOMPREHENSIVE INCOME (LOSS)Foreigncurrencytranslationadjustment,net of tax of$63, ($150),($42), $680and $211,respectively, 239 668 168 407 (746 ) for the threemonths endedJune 30, 2021,June 30, 2020and March 31,2021 and sixmonths endedJune 30, 2021and 2020Comprehensive $ (34,551 ) $ (14,537 ) $ (12,272 ) $ (46,823 ) $ (99,922 ) loss Net loss per $ (0.75 ) $ (0.33 ) $ (0.27 ) $ (1.02 ) $ (2.18 ) share (basic)Net loss pershare $ (0.75 ) $ (0.33 ) $ (0.27 ) $ (1.02 ) $ (2.18 ) (diluted)Weightedaverage numberof shares 46,402 45,727 45,932 46,168 45,521 outstanding(basic)Weightedaverage numberof shares 46,402 45,727 45,932 46,168 45,521 outstanding(diluted)

MAMMOTH ENERGY SERVICES, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2021 2020 (in thousands)Cash flows from operating activities: Net loss $ (47,230 ) $ (99,176 ) Adjustments to reconcile net loss to cash provided by operating activities:Stock based compensation 698 1,246 Depreciation, depletion, accretion and amortization 41,411 49,998 Amortization of coil tubing strings ? 359 Amortization of debt origination costs 296 577 Bad debt expense 10,201 1,679 Gain on disposal of property and equipment (1,599 ) (1,451 ) Impairment of goodwill ? 54,973 Impairment of other long-lived assets ? 12,897 Deferred income taxes (20,898 ) 931 Other 548 623 Changes in assets and liabilities: Accounts receivable, net (30,386 ) 7,782 Receivables from related parties 28,381 (19,793 ) Inventories 1,808 4,651 Prepaid expenses and other assets 5,923 6,079 Accounts payable (1,546 ) (7,514 ) Payables to related parties 1 (512 ) Accrued expenses and other liabilities 15,756 (2,818 ) Income taxes payable 1,107 (3,697 ) Net cash provided by operating activities 4,471 6,834 Cash flows from investing activities: Purchases of property and equipment (1,709 ) (4,348 ) Purchases of property and equipment from related ? (76 ) partiesProceeds from disposal of property and equipment 4,632 2,544 Net cash provided by (used in) investing activities 2,923 (1,880 ) Cash flows from financing activities: Borrowings on long-term debt 12,000 22,800 Repayments of long-term debt (30,269 ) (13,550 ) Proceeds from sale leaseback transaction 9,473 ? Payments on sale leaseback transaction (1,278 ) ? Principal payments on financing leases and equipment (1,140 ) (914 ) financing notesDebt issuance costs ? (1,000 ) Net cash (used in) provided by financing activities (11,214 ) 7,336 Effect of foreign exchange rate on cash 36 (137 ) Net change in cash and cash equivalents (3,784 ) 12,153 Cash and cash equivalents at beginning of period 14,822 5,872 Cash and cash equivalents at end of period $ 11,038 $ 18,025 Supplemental disclosure of cash flow information: Cash paid for interest $ 2,134 $ 2,683 Cash paid (recovered) for income taxes $ 964 $ (6 ) Supplemental disclosure of non-cash transactions: Purchases of property and equipment included in $ 2,035 $ 2,780 accounts payable

MAMMOTH ENERGY SERVICES, INC.SEGMENT INCOME STATEMENTS(in thousands)

Three months Wellended June 30, Infrastructure Completion^ Sand Drilling All Other Eliminations Total2021 (a)Revenue fromexternal $ 17,220 $ 17,337 $ 6,886 $ 1,130 $ 4,867 $ ? $ 47,440 customersIntersegment ? 36 ? 17 682 (735 ) ? revenuesTotal revenue 17,220 17,373 6,886 1,147 5,549 (735 ) 47,440 Cost ofrevenue,exclusive ofdepreciation, 19,881 16,396 7,400 1,568 5,130 ? 50,375 depletion,amortizationand accretionIntersegmentcost of 50 666 ? ? 19 (735 ) ? revenuesTotal cost of 19,931 17,062 7,400 1,568 5,149 (735 ) 50,375 revenueSelling,general and 7,383 1,893 991 395 1,321 ? 11,983 administrativeDepreciation,depletion, 5,899 6,447 2,387 2,079 3,453 ? 20,265 amortizationand accretionOperating loss (15,993 ) (8,029 ) (3,892 ) (2,895 ) (4,374 ) ? (35,183 ) Interest 656 219 90 58 146 ? 1,169 expense, netOther expense 15,904 1 (53 ) (127 ) (727 ) ? 14,998 (income), netLoss before $ (32,553 ) $ (8,249 ) $ (3,929 ) $ (2,826 ) $ (3,793 ) $ ? $ (51,350 ) income taxes

Three months Wellended June 30, Infrastructure Completion^ Sand Drilling All Other Eliminations Total2020 (a)Revenue fromexternal $ 30,249 $ 16,125 $ 6,237 $ 1,250 $ 6,248 $ ? $ 60,109 customersIntersegment ? 419 ? ? 584 (1,003 ) ? revenuesTotal revenue 30,249 16,544 6,237 1,250 6,832 (1,003 ) 60,109 Cost ofrevenue,exclusive ofdepreciation, 25,217 8,375 6,394 2,012 6,755 ? 48,753 depletion,amortizationand accretionIntersegmentcost of 27 333 ? 21 622 (1,003 ) ? revenuesTotal cost of 25,244 8,708 6,394 2,033 7,377 (1,003 ) 48,753 revenueSelling,general and 7,830 1,456 1,378 1,331 1,731 ? 13,726 administrativeDepreciation,depletion, 7,500 7,675 2,358 2,671 3,912 ? 24,116 amortizationand accretionOperating loss (10,325 ) (1,295 ) (3,893 ) (4,785 ) (6,188 ) ? (26,486 ) Interest 716 329 69 132 225 ? 1,471 expense, netOther (income) (8,004 ) (1,179 ) (2 ) (298 ) 213 ? (9,270 ) expense, netLoss before $ (3,037 ) $ (445 ) $ (3,960 ) $ (4,619 ) $ (6,626 ) $ ? $ (18,687 ) income taxes

Three months Wellended March Infrastructure Completion^ Sand Drilling All Other Eliminations Total31, 2021 (a)Revenue fromexternal $ 29,257 $ 22,901 $ 8,705 $ 919 $ 5,022 $ ? $ 66,804 customersIntersegment ? 54 ? 14 640 (708 ) ? revenuesTotal revenue 29,257 22,955 8,705 933 5,662 (708 ) 66,804 Cost ofrevenue,exclusive ofdepreciation, 26,458 9,003 5,862 1,604 5,153 ? 48,080 depletion,amortizationand accretionIntersegmentcost of 45 394 ? ? 269 (708 ) ? revenuesTotal cost of 26,503 9,397 5,862 1,604 5,422 (708 ) 48,080 revenueSelling,general and 6,253 10,612 2,049 422 1,512 ? 20,848 administrativeDepreciation,depletion, 6,667 6,683 2,140 2,165 3,491 ? 21,146 amortizationand accretionOperating loss (10,166 ) (3,737 ) (1,346 ) (3,258 ) (4,763 ) ? (23,270 ) Interest 661 254 93 63 154 ? 1,225 expense, netOther (income) (9,310 ) 439 (794 ) (9 ) 242 ? (9,432 ) expense, netLoss before $ (1,517 ) $ (4,430 ) $ (645 ) $ (3,312 ) $ (5,159 ) $ ? $ (15,063 ) income taxes

MAMMOTH ENERGY SERVICES, INC.SEGMENT INCOME STATEMENTS(in thousands)

Six months Wellended June 30, Infrastructure Completion^ Sand Drilling All Other Eliminations Total2021 (a)Revenue fromexternal $ 46,476 $ 40,238 $ 15,592 $ 2,049 $ 9,889 $ ? $ 114,244 customersIntersegment ? 90 ? 31 1,322 (1,443 ) ? revenuesTotal revenue 46,476 40,328 15,592 2,080 11,211 (1,443 ) 114,244 Cost ofrevenue,exclusive ofdepreciation, 46,340 25,399 13,262 3,173 10,281 ? 98,455 depletion,amortizationand accretionIntersegmentcost of 95 1,060 ? ? 288 (1,443 ) ? revenuesTotal cost of 46,435 26,459 13,262 3,173 10,569 (1,443 ) 98,455 revenueSelling,general and 13,635 12,505 3,040 818 2,833 ? 32,831 administrativeDepreciation,depletion, 12,566 13,130 4,527 4,242 6,946 ? 41,411 amortizationand accretionOperating loss (26,160 ) (11,766 ) (5,237 ) (6,153 ) (9,137 ) ? (58,453 ) Interest 1,317 473 183 121 300 ? 2,394 expense, netOther expense 6,593 440 (847 ) (135 ) (485 ) ? 5,566 (income), netLoss before $ (34,070 ) $ (12,679 ) $ (4,573 ) $ (6,139 ) $ (8,952 ) $ ? $ (66,413 ) income taxes

Six months Wellended June 30, Infrastructure Completion^ Sand Drilling All Other Eliminations Total2020 (a)Revenue fromexternal $ 55,724 $ 58,811 $ 16,391 $ 5,973 $ 20,593 $ ? $ 157,492 customersIntersegment ? 1,052 95 5 1,360 (2,512 ) ? revenuesTotal revenue 55,724 59,863 16,486 5,978 21,953 (2,512 ) 157,492 Cost ofrevenue,exclusive ofdepreciation, 51,897 33,943 17,691 7,637 19,491 ? 130,659 depletion,amortizationand accretionIntersegmentcost of 35 961 ? 152 1,364 (2,512 ) ? revenuesTotal cost of 51,932 34,904 17,691 7,789 20,855 (2,512 ) 130,659 revenueSelling,general and 11,774 3,627 2,680 2,394 4,022 ? 24,497 administrativeDepreciation,depletion, 15,122 16,157 4,681 5,520 8,518 ? 49,998 amortizationand accretionImpairment of ? 53,406 ? ? 1,567 ? 54,973 goodwillImpairment ofother ? 4,203 ? 326 8,368 ? 12,897 long-livedassetsOperating loss (23,104 ) (52,434 ) (8,566 ) (10,051 ) (21,377 ) ? (115,532 ) Interest 1,467 605 147 389 501 ? 3,109 expense, netOther (income) (15,707 ) (1,288 ) (39 ) (271 ) 626 ? (16,679 ) expense, netLoss before $ (8,864 ) $ (51,751 ) $ (8,674 ) $ (10,169 ) $ (22,504 ) $ ? $ (101,962 ) income taxesa. Mammoth changed the name of its pressure pumping segment to the wellcompletion segment during the fourth quarter of 2020.

MAMMOTH ENERGY SERVICES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion expense, impairment of goodwill, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets and interest on trade accounts receivable) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth's operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a companys financial performance, such as a companys cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.

The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income (loss) on a consolidated basis and for each of the Company's segments (in thousands):

Consolidated

Three Months Ended Six Months Ended June 30, March 31, June 30,Reconciliationof Adjusted 2021 2020 2021 2021 2020EBITDA to netloss:Net loss $ (34,790 ) $ (15,205 ) $ (12,440 ) $ (47,230 ) $ (99,176 ) Depreciation,depletion,amortization 20,265 24,116 21,146 41,411 49,998 and accretionexpenseImpairment of ? ? ? ? 54,973 goodwillImpairment ofother ? ? ? ? 12,897 long-livedassetsPublic 77 ? ? 77 ? offering costsStock based 354 196 344 698 1,246 compensationInterest 1,169 1,471 1,225 2,394 3,109 expense, netOther expense 14,998 (9,270 ) (9,432 ) 5,566 (16,679 ) (income), netBenefit for (16,560 ) (3,482 ) (2,623 ) (19,183 ) (2,786 ) income taxesInterest ontrade accounts 9,017 9,071 8,158 17,175 16,767 receivableAdjusted $ (5,470 ) $ 6,897 $ 6,378 $ 908 $ 20,349 EBITDA

MAMMOTH ENERGY SERVICES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Infrastructure Services

Three Months Ended Six Months Ended June 30, March 31, June 30,Reconciliationof Adjusted 2021 2020 2021 2021 2020EBITDA to netloss:Net loss $ (23,715 ) $ (3,985 ) $ (3,945 ) $ (27,658 ) $ (12,303 ) Depreciationand 5,899 7,500 6,667 12,566 15,122 amortizationexpensePublic offering 43 ? ? 43 ? costsStock based 158 44 135 293 286 compensationInterest 656 716 661 1,317 1,467 expenseOther expense 15,904 (8,004 ) (9,310 ) 6,593 (15,707 ) (income), net(Benefit)provision for (8,838 ) 949 2,428 (6,410 ) 3,440 income taxesInterest ontrade accounts 9,017 7,930 8,673 17,690 15,626 receivableAdjusted EBITDA $ (876 ) $ 5,150 $ 5,309 $ 4,434 $ 7,931

Well Completion Services

Three Months Ended Six Months Ended June 30, March 31, June 30,Reconciliationof Adjusted 2021 2020 2021 2021 2020EBITDA to netloss:Net loss $ (8,249 ) $ (446 ) $ (4,430 ) $ (12,680 ) $ (51,750 ) Depreciationand 6,447 7,675 6,683 13,130 16,157 amortizationexpenseImpairment of ? ? ? ? 53,406 goodwillImpairment ofother ? ? ? ? 4,203 long-livedassetsPublic offering 12 ? ? 12 ? costsStock based 75 53 83 158 381 compensationInterest 219 329 254 473 605 expenseOther expense 1 (1,179 ) 439 440 (1,288 ) (income), netInterest ontrade accounts ? 1,133 (514 ) (514 ) 1,133 receivableAdjusted EBITDA $ (1,495 ) $ 7,565 $ 2,515 $ 1,019 $ 22,847

Natural Sand Proppant Services

Three Months Ended Six Months Ended June 30, March 31, June 30,Reconciliationof Adjusted 2021 2020 2021 2021 2020EBITDA to netloss:Net loss $ (3,929 ) $ (3,960 ) $ (645 ) $ (4,573 ) $ (8,676 ) Depreciation,depletion,amortization 2,387 2,358 2,140 4,527 4,681 and accretionexpensePublic 12 ? 12 ? offering costsStock based 65 46 64 130 278 compensationInterest 90 69 93 183 147 expenseOther income, (53 ) (2 ) (794 ) (847 ) (39 ) netInterest ontrade accounts ? ? (1 ) (1 ) ? receivableAdjusted $ (1,428 ) $ (1,489 ) $ 857 $ (569 ) $ (3,609 ) EBITDA

MAMMOTH ENERGY SERVICES, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Drilling Services

Three Months Ended Six Months Ended June 30, March 31, June 30,Reconciliationof Adjusted 2021 2020 2021 2021 2020EBITDA to netloss:Net loss $ (2,826 ) $ (4,620 ) $ (3,312 ) $ (6,139 ) $ (10,169 ) Depreciation 2,079 2,671 2,165 4,242 5,520 expenseImpairment ofother ? ? ? ? 326 long-livedassetsAcquisition ? ? ? ? ? related costsPublic offering 2 ? 2 ? costsStock based 28 34 38 65 128 compensationInterest 58 132 63 121 389.172 expenseOther income, (127 ) (298 ) (9 ) (135 ) (271 ) netAdjusted EBITDA $ (786 ) $ (2,081 ) $ (1,055 ) $ (1,844 ) $ (4,077 )

Other Services(a)

Three Months Ended Six Months Ended June 30, March 31, June 30,Reconciliationof Adjusted 2021 2020 2021 2021 2020EBITDA to netincome (loss):Net income $ 3,929 $ (2,195 ) $ (108 ) $ 3,820 $ (16,279 ) (loss)Depreciation,amortization 3,453 3,912 3,491 6,946 8,518 and accretionexpenseImpairment of ? ? ? ? 1,567 goodwillImpairment ofother ? ? ? ? 8,368 long-livedassetsPublic 8 ? 8 ? offering costsStock based 28 20 24 52 173 compensationInterest 146 225 154 300 501 expense, netOther (income) (727 ) 213 242 (485 ) 626 expense, netBenefit for (7,722 ) (4,430 ) (5,051 ) (12,773 ) (6,226 ) income taxesInterest ontrade accounts ? 9 ? ? 9 receivableAdjusted $ (885 ) $ (2,246 ) $ (1,248 ) $ (2,132 ) $ (2,743 ) EBITDAa.Includes results for Mammoth's aviation, coil tubing, pressure control,equipment rentals, crude oil hauling, full service transportation and remoteaccommodations, equipment manufacturing and infrastructure engineering anddesign services and corporate related activities. The Company's corporaterelated activities do not generate revenue.

MAMMOTH ENERGY SERVICES, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted Net Loss and Adjusted Loss per Share

Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company's operating and financial performance. Management believes these measures provide meaningful information about the Company's performance by excluding certain non-cash charges, such as impairment of goodwill and impairment of other long-lived assets, that may not be indicative of the Company's ongoing operating results. Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.

Three Months Ended Six Months Ended June 30, March 31, June 30, 2021 2020 2021 2021 2020 (in thousands, except per share amounts)Net loss, as $ (34,790 ) $ (15,205 ) $ (12,440 ) $ (47,230 ) $ (99,176 ) reportedImpairment of ? ? ? ? 54,973 goodwillImpairment ofother ? ? ? ? 12,897 long-livedassetsAdjusted net $ (34,790 ) $ (15,205 ) $ (12,440 ) $ (47,230 ) $ (31,306 ) loss Basic lossper share, as $ (0.75 ) $ (0.33 ) $ (0.27 ) $ (1.02 ) $ (2.18 ) reportedImpairment of ? ? ? ? 1.21 goodwillImpairment ofother ? ? ? ? 0.28 long-livedassetsAdjustedbasic loss $ (0.75 ) $ (0.33 ) $ (0.27 ) $ (1.02 ) $ (0.69 ) per share Diluted lossper share, as $ (0.75 ) $ (0.33 ) $ (0.27 ) $ (1.02 ) $ (2.18 ) reportedImpairment of ? ? ? ? 1.21 goodwillImpairment ofother ? ? ? ? 0.28 long-livedassetsAdjusteddiluted loss $ (0.75 ) $ (0.33 ) $ (0.27 ) $ (1.02 ) $ (0.69 ) per share