Reporting Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Reporting Segments

Reporting Segments

As of September 30, 2020, the Company's revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. The Company principally provides electric infrastructure services to private utilities, public investor-owned utilities and co-operative utilities and services in connection with on-shore drilling of oil and natural gas wells for small to large domestic independent oil and natural gas producers.

The Company's Chief Executive Officer and Chief Financial Officer comprise the Company's Chief Operating Decision Maker function (“CODM”). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of operating income (loss) less impairment expense, as well as a qualitative basis, such as nature of the product and service offerings and types of customers.

Prior to the year ended December 31, 2019, the Company had three reportable segments, including infrastructure services, pressure pumping services and natural sand proppant services. Based on its assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2019, the Company changed its reportable segment presentation in 2019 to include its drilling services, which includes Bison Drilling and Field Services LLC, Bison Trucking LLC, Panther Drilling Systems LLC, Mako Acquisitions LLC and White Wing Tubular LLC, as its own reportable segment. The results of the entities were previously included in the reconciling column titled “All Other” in the table below for the three months ended September 30, 2019. As of September 30, 2020, the Company’s four reportable segments include infrastructure services (“Infrastructure”), pressure pumping services (“Pressure Pumping”), natural sand proppant services (“Sand”) and drilling services (“Drilling”). The results for the three and nine months ended September 30, 2019 have been retroactively adjusted to reflect his change in reportable segments.

During certain of the periods presented, the Infrastructure segment provided electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in Puerto Rico and the northeast, southwest and midwest portions of the United States. The Pressure Pumping segment provides hydraulic fracturing and water transfer services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania, Eagle Ford and Permian Basins in Texas and the mid-continent region. The Sand segment mines, processes and sells sand for use in hydraulic fracturing. The Sand segment primarily services the Utica Shale, Permian Basin, SCOOP, STACK and Montney Shale in British Columbia and Alberta, Canada. During certain of the periods presented, the Drilling segment provided contract land and directional drilling services primarily in the Permian Basin and mid-continent region.

During certain of the periods presented, the Company also provided coil tubing services, flowback services, cementing services, acidizing services, equipment rental services, full service transportation, crude oil hauling services, remote accommodation, oilfield equipment manufacturing and infrastructure engineering and design services. The businesses that provide these services are distinct operating segments, which the CODM reviews independently when making key operating and resource utilization decisions. None of these operating segments meet the quantitative thresholds of a reporting segment and do not meet the aggregation criteria set forth in ASC 280 Segment Reporting. Therefore, results for these operating segments are included in the column labeled "All Other" in the tables below. Additionally, assets for

corporate activities, which primarily include cash and cash equivalents, inter-segment accounts receivable, prepaid insurance and certain property and equipment, are included in the All Other column. Although Mammoth LLC, which holds these corporate assets, meets one of the quantitative thresholds of a reporting segment, it does not engage in business activities from which it may earn revenues and its results are not regularly reviewed by the Company's CODM when making key operating and resource utilization decisions. Therefore, the Company does not include it as a reportable segment.

Sales from one segment to another are generally priced at estimated equivalent commercial selling prices. Total revenue and Total cost of revenue amounts included in the Eliminations column in the following tables include inter-segment transactions conducted between segments. Receivables due for sales from one segment to another and for corporate allocations to each segment are included in the Eliminations column for Total assets in the following tables. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reporting segment are eliminated within each reporting segment. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):

Three months ended September 30, 2020	Infrastructure		Pressure Pumping		Sand		Drilling		All Other		Eliminations		Total
Revenue from external customers	$	44,009	$	15,738	$	6,031	$	1,193	$	3,563	$	—	$	70,534
Intersegment revenues	—		53		—		26		672		(751)		—
Total revenue	44,009		15,791		6,031		1,219		4,235		(751)		70,534
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	29,074		6,881		3,784		1,964		4,226		—		45,929
Intersegment cost of revenues	162		449		26		—		114		(751)		—
Total cost of revenue	29,236		7,330		3,810		1,964		4,340		(751)		45,929
Selling, general and administrative	7,377		1,744		1,033		382		1,644		—		12,180
Depreciation, depletion, amortization and accretion	7,589		7,196		2,693		2,323		3,331		—		23,132
Operating loss	(193)		(479)		(1,505)		(3,450)		(5,080)		—		(10,707)
Interest expense, net	628		269		54		60		87		—		1,098
Other (income) expense, net	(9,204)		(1,156)		1,792		20		(494)		—		(9,042)
Income (loss) before income taxes	$	8,383	$	408	$	(3,351)	$	(3,530)	$	(4,673)	$	—	$	(2,763)

Three months ended September 30, 2019	Infrastructure		Pressure Pumping		Sand		Drilling		All Other		Eliminations		Total
Revenue from external customers	$	37,289	$	43,887	$	12,634	$	6,065	$	13,542	$	—	$	113,417
Intersegment revenues	—		725		5,727		58		417		(6,927)		—
Total revenue	37,289		44,612		18,361		6,123		13,959		(6,927)		113,417
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	36,940		33,059		18,547		7,203		15,385		—		111,134
Intersegment cost of revenues	—		6,054		326		185		362		(6,927)		—
Total cost of revenue	36,940		39,113		18,873		7,388		15,747		(6,927)		111,134
Selling, general and administrative	7,322		3,669		1,314		910		1,208		—		14,423
Depreciation, depletion, amortization and accretion	7,953		10,176		4,022		3,096		4,544		—		29,791
Impairment of goodwill	—		—		—		—		3,194		—		3,194
Impairment of other long-lived assets	—		—		—		—		3,348		—		3,348
Operating loss	(14,926)		(8,346)		(5,848)		(5,271)		(14,082)		—		(48,473)
Interest expense, net	599		316		43		220		220		—		1,398
Other (income) expense, net	(6,239)		(3)		99		(100)		(125)		—		(6,368)
Loss before income taxes	$	(9,286)	$	(8,659)	$	(5,990)	$	(5,391)	$	(14,177)	$	—	$	(43,503)

Nine months ended September 30, 2020	Infrastructure		Pressure Pumping		Sand		Drilling		All Other		Eliminations		Total
Revenue from external customers	$	100,294	$	74,549	$	22,421	$	7,166	$	23,596	$	—	$	228,026
Intersegment revenues	—		1,435		95		107		2,026		(3,663)		—
Total revenue	100,294		75,984		22,516		7,273		25,622		(3,663)		228,026
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	81,389		41,833		20,465		9,627		23,274		—		176,588
Intersegment cost of revenues	197		1,410		355		151		1,550		(3,663)		—
Total cost of revenue	81,586		43,243		20,820		9,778		24,824		(3,663)		176,588
Selling, general and administrative	19,711		5,443		3,641		2,777		5,105		—		36,677
Depreciation, depletion, amortization and accretion	23,339		23,373		7,353		7,900		11,165		—		73,130
Impairment of goodwill	—		53,406		—		—		1,567		—		54,973
Impairment of other long-lived assets	—		4,203		—		326		8,368		—		12,897
Operating loss	(24,342)		(53,684)		(9,298)		(13,508)		(25,407)		—		(126,239)
Interest expense, net	2,105		907		167		473		555		—		4,207
Other (income) expense, net	(24,289)		(2,444)		1,753		(251)		(490)		—		(25,721)
Loss before income taxes	$	(2,158)	$	(52,147)	$	(11,218)	$	(13,730)	$	(25,472)	$	—	$	(104,725)

Nine months ended September 30, 2019	Infrastructure		Pressure Pumping		Sand		Drilling		All Other		Eliminations		Total
Revenue from external customers	$	187,831	$	217,456	$	66,820	$	27,091	$	58,177	$	—	$	557,375
Intersegment revenues	—		3,936		29,795		484		1,870		(36,085)		—
Total revenue	187,831		221,392		96,615		27,575		60,047		(36,085)		557,375
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	140,768		157,106		81,475		29,030		59,841		—		468,220
Intersegment cost of revenues	1		31,388		2,513		686		1,557		(36,145)		—
Total cost of revenue	140,769		188,494		83,988		29,716		61,398		(36,145)		468,220
Selling, general and administrative	19,874		9,544		4,214		3,117		4,464		—		41,213
Depreciation, depletion, amortization and accretion	23,490		30,244		11,423		9,866		13,489		—		88,512
Impairment of goodwill	—		—		—		—		3,194		—		3,194
Impairment of other long-lived assets	—		—		—		—		3,348		—		3,348
Operating income (loss)	3,698		(6,890)		(3,010)		(15,124)		(25,846)		60		(47,112)
Interest expense, net	1,024		965		145		679		659		—		3,472
Other (income) expense, net	(35,108)		5		67		(122)		214		—		(34,944)
Income (loss) before income taxes	$	37,782	$	(7,860)	$	(3,222)	$	(15,681)	$	(26,719)	$	60	$	(15,640)

	Infrastructure		Pressure Pumping		Sand		Drilling		All Other		Eliminations		Total
As of September 30, 2020:
Total assets	$	414,164	$	123,609	$	176,577	$	49,195	$	114,158	$	(46,604)	$	831,099
As of December 31, 2019:
Total assets	$	420,285	$	175,259	$	190,382	$	61,545	$	142,731	$	(37,817)	$	952,385