Mammoth Energy Services, Inc.

Greetings and welcome to the Monmouth Energy Services Third Quarter Earnings Conference Call. At this time, all participants are on 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 zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black, Investor Relations. Thank you. Please go ahead.

Thank you, Operator, and good morning, everyone. We appreciate you joining us for the Mammoth Energy conference call to review 2023 third quarter results. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the investor relations section of mammothenergy.com. Information reported on this call speaks only as of today, November 9, 2023. Please be advised that any time-sensitive information may no longer be accurate as of any subsequent date. I would also like to remind you that statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call that by their nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to the earnings press 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 definitions of this non-GAAP measure and its reconciliations to the most comparable GAAP measures can be found at the end of the earnings press release and in our investor presentation, which can be found on the company's website. Mammoth Energy assumes no obligation to publicly update or revise any forward-looking statements. And now I would like to turn the call over to Mammoth Energy CEO, Artie Strelow.

Artie? Thank you, Rick, and good morning, everyone. I'll start with some overview comments about our business and the quarter, including our successful refinancing with a new revolving credit facility and term loan agreement that we announced last month. I'll conclude with the update related to PREPA and then hand the call over to Mark to cover the financials in more detail. On October 16th, we entered into a new revolving credit facility agreement and a new term loan agreement, which refinanced in full the company's indebtedness outstanding under our previous revolving credit facility. We now have a new five-year revolving credit facility with Fifth Third Bank that provides for revolving commitments of up to $75 million subject to a monthly borrowing-based calculation and a new five-year term loan agreement with Wexford Capital, an affiliate of Mammoth, that provides for term commitments of $45 million. We are pleased to have these agreements in place that position the company with a strong base of liquidity for years to come. Turning now to the third quarter, as expected, the challenges associated with the lower U.S. onshore activity and sustained weakness in natural gas basins persisted from the second quarter and resulted in continued utilization pressures in our well completion services division. Mammoth activity levels during the quarter tracked roughly in line with the decline in rig count and lower customer demand for pressure pumping services. This sequential decline in our active fleet count was reflected in our revenue for the third quarter. We remain extremely focused on managing costs and constraining capital expenditures. Despite the softness we've experienced this year, we are now seeing signs of increasing completion activity as we hold discussions and plan for 2024 with our customers. This is helping to improve our line of sight for the next few quarters, and we are encouraged by what we are seeing. We expect this trend to improve fleet counts in 2024. In the sand business, pricing remained relatively stable and our tonnage was up year over year, but down sequentially due to the lower pressure pumping activity. Our team is managing this business effectively and we are building momentum that we believe will result in performance improvements in 2024. In our infrastructure segment, we continue to expect improved funding for projects created from the Infrastructure Investment and Jobs Act, as those dollars are expected to flow through into increased bidding activity in late 2023 and into 2024, especially in the fiber and substation business. We remain very encouraged about the potential for continued growth in this sector, and we feel strongly that MAMIS infrastructure business is well positioned for long-term growth into 2024 and beyond. As we have demonstrated throughout our history, we have a resilient and diversified business comprised of talented and hardworking teams that will continue to find solutions that optimize our operational efficiencies with a customer and safety first focus. We believe our diverse portfolio and ability to adapt quickly to changing environments positions us well in these segments. Despite a tough quarter, we see many bright spots ahead across all of our business segments, and we expect to exit this year and enter 2024 better positioned for growth. Turning now to an update regarding PREPA. During and subsequent to the end of the third quarter, we have received $11.4 million from PREPA, bringing our total payments received since June to $22.2 million. On October 16, 2023, pursuant to the bankruptcy court's prior order, PREPA and COBRA submitted a joint status report. In the joint status report, PREPA informed the court that, among other things, it intended to process and submit to Core 3 for reimbursement the remaining approximately $82 million in approved but unpaid invoices. While we were pleased to have received some payments from PREPA, They have still only paid a portion of what is owed and a fraction of what FEMA has made available to PREPA for the work performed by COBRA. COBRA's work has been affirmed by FEMA and numerous independent reviewers. However, as of today, we are still owed over $394 million by PREPA, and we will continue to pursue payment for that work we completed. Now let me turn the call over to Mark and take you through our financial performance in greater detail.