MAMMOTH ENERGY SERVICES, INC. Q1 FY2025 earnings call

• Phil Lancaster noted the company completed two transactions in April, buying 8 small passenger aircraft for ~$11.5 million (immediately accretive) and selling 3 infrastructure subsidiaries for $108.7 million. - First quarter results showed positive adjusted EBITDA, with sequential growth in key financial metrics. - Management is evaluating strategic opportunities to add accretive assets while maintaining a strong balance sheet. - SG&A expenses decreased 34% sequentially in Q1 2025, and is expected to decline 20-25% going forward after the infrastructure sale.

Well Completion Services: In the first quarter, well completions generated revenue of $20.9 million with an average of 1.3 active pressure pumping fleets, up from $15.8 million and 1.1 active fleets in the fourth quarter of 2024. Sand: Sold approximately 189,000 tons of sand in Q1 at an average sales price of $21.49 per ton, compared to 129,000 tons at $22.54 in Q4 2024; volumes increased and pricing was stable. Infrastructure Services: Prior to the sale of subsidiaries, revenue for this segment was $30.7 million in Q1 2025, a 10% sequential increase. Post-sale, the segment includes engineering and fiber; engineering had $4 million in Q1, fiber had $0.7 million.

• Expect incremental demand to drive improved results in the sand segment in 2025. - Target utilization in excess of 1.5 active fleets to generate free cash flow. - 2025 CapEx budget excluding acquisitions remains at $12 million, primarily for equipment rentals growth and pressure pumping maintenance. - After the sale of the infrastructure subsidiaries, SG&A is expected to decline 20-25% from Q1 levels.

• Uncertainty in the market due to tariffs, economic state, and OPEC+ production increases affecting oil prices. - Potential increased competition in gas basins may squeeze margins in the near term, though expected to be a short-term headwind.

Q: Could you talk about the uplift in volumes in Q1 for the sand business, outlook for the rest of the year, and near to intermediate term sand prices?

A: For Q1, strong demand in Western Canada in regards to pricing; sees a fairly stable environment persisting through the remainder of 2025.

Q: About the 1.5 active fleets expectation and cost actions if there's weakness in the back half of the year, details on cost actions and adjusted EBITDA relative to CapEx spend?

A: On the pressure pumping business, levers include staffing and repairs/maintenance; historically the team has managed cost structure well, and would lean on them to cut costs if utilization weakens later in 2025