Mammoth Energy Services, Inc.

Greetings and welcome to the Memef Energy Services third quarter earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Ken Dennard. Please go ahead, sir.

Thank you, operator. And good afternoon, everyone. We appreciate you joining us for the Mammoth Energy Conference call to review 2022 third quarter results. This call is also being webcast. It can be accessed through the audio link on the events and presentations page of the investor relations sections of mammothenergy.com. Information reported on this call speaks only as of today, October 27, 2022, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript reading. I would also like to remind you that statements made in today's discussions that are not historical facts, including statements of expectations of future events, or future financial performance are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Management will be making forward-looking statements as part of today's call that by nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to the earnings release that was issued today for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management may also refer to non-GAAP measures, including adjusted EBITDA. The definition of this non-GAAP measure and its reconciliation to the nearest GAAP measure can be found at the end of the earnings release and in the investor presentation, which can be found on the website. And Mammoth Energy assumes no obligation to publicly update or revise any forward-looking statements. And now with that behind me, I'd like to turn the call over to Mammoth Energy's CEO, Artie Strelitz. Artie.

Thank you, Ken, and good afternoon, everyone. We are extremely pleased with our third quarter performance and the momentum we are seeing across our three major business segments. I'll provide an overview of each of these businesses before turning the call over to Mark to review our financials in more detail, and then we will take your questions. In the third quarter, total revenue grew to $107.2 million, representing an increase of 86% year-over-year and up 20% sequentially. This strong performance resulted in an adjusted EBITDA of $29.8 million, compared to a loss in Q3 of last year and a sequential increase of 30% compared to last quarter. As demonstrated by these results, we continue to experience strong demand environments across our three largest segments, infrastructure services, well completion services, and our sand business. Our well completion services division continues to improve performance, generating strong growth both at the top and bottom line, where the macro demand in the pressure pumping industry remains robust. We currently have four of our six pressure pumping spreads operating, which have full schedules through the end of the year, and we expect to add a fifth spread during the fourth quarter. Looking to 2023, we plan to activate our sixth fleet in the first half of the year. In addition, we have plans to upgrade one of our existing spreads to Tier 4 dual fuel. This would give us a total of three dual fuel fleets. We exited Q4 with annualized net income per fleet of $10 million and annualized adjusted EBITDA per fleet of roughly $15 million. Turning to our sand business, demand also remains strong and is supported by increased pricing. We believe this trend will continue in the fourth quarter and into 2023. While we experienced some railroad constraints during the quarter that were a constraint on total volume, pricing was up sharply, and we anticipate the transportation constraints to ease going forward. In our infrastructure services division, operational improvements are driving enhanced results, and we continue to add crew capacity for a sector that has a healthy bidding environment. The need for seasonal storm restoration services, as well as the overall infrastructure project opportunities that have come about as a result of the historic investment in our nation's infrastructure, which was passed by the federal government last fall, continues to present prospects for growth in this business. Across all of our business segments, I'm proud of our team's continued commitment, hard work, and perseverance to manage through today's macro environment relative supply chain constraints and labor and inflationary challenges. As we have stated before, we believe our diverse portfolio and ability to adapt quickly to changing environments positions us well in these segments. Moving forward, we continue to see improved macroeconomic trends that we believe will drive increased demand. We believe the future for Mammoth is brighter than the past, and we remain committed to enhancing value for all of our stakeholders. Turning now to an update on PREPA, we continued our efforts to hold PREPA accountable for their contractual and financial obligations. We look forward to seeing PREPA's plan of adjustment, which we currently anticipate will be filed in early December. Now let me turn the call over to Mark to take you through MAMA's financial performance during the third quarter before we open the call to questions.