Mammoth Energy Services, Inc.

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 zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Denard. Thank you, sir. You may begin.

Thank you, Operator. Good morning, everyone. We appreciate you joining us for the Mammoth Energy Conference call to review fourth quarter and full year results. This call is also being webcast and can be accessed through the audio link on the events page, www.mammothenergy.com, in the investor relations section. Information reported on this call speaks only as of today, March 1st. Please be advised that 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 provision of the Private Securities Litigation Reform Act of 1995. Management will be making forward-looking statements as part of today's call that are by 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 this morning for 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 the adjusted EBITDA, The definition of this non-GAAP measure and its reconciliation to the most comparable GAAP measures can be found at the end of the earnings release and in the investor presentation, which can also be found on the website. Mammoth Energy assumes no obligation to publicly update or revise any forward-looking statements. And with that, now I'd like to turn it over to Mammoth Energy's CEO, Artie Strelia. Artie.

Thank you, Ken, and good morning, everyone. I'll start with some overview comments about our business and the quarter, as well as a recap of 2023 before discussing recent developments and expectations for 2024. Then I will turn the call over to Mark to cover the financials in more detail. As noted in our press release this morning, PREPA made a payment of $50.6 million earlier this week, and in combination with $13.4 million that was paid by PREPA in January, fully satisfied the obligation to SPCP Group and resulted in COBRA receiving approximately $9.6 million in cash. I'll have some additional updates relative to PREPA later in our prepared remarks. The fourth quarter proved to be an even more challenging than we had originally anticipated, largely due to additional deferred activity by E&P companies, commodity price fluctuations, and customer budget exhaustion. As we had expected, the impact of these headwinds most directly impacted our well completion and sand divisions in the quarter. During the fourth quarter, we experienced a slight increase in both revenue and adjusted EBITDA in our infrastructure division, and we are encouraged by the recent bidding activity in this segment. The infrastructure investment and job tax are being released for infrastructure projects such as fiber engineering as well as transmission and distribution. and areas where we are excited participants, which gives us optimism for improvements in 2024. 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 in 2024 and beyond. The persistent challenges associated with lower U.S. onshore activity and the sustained weakness in natural gas basins during 2023, particularly in the second half of the year, resulted in continued utilization decline in our well completion services division. We remain extremely focused on our cost structure and managing capital expenditures. In our sand division, we experienced reduced demand due to softening macro conditions. We anticipate higher demand in 2024 partially driven by Western Canada, which we expect to be accretive to current pricing. We are also encouraged by industry expectations of a 10% increase in well completions and pressure pumping year over year, which will be the largest catalyst for our pumping fleets and sand business in 2024. Our team is managing this business efficiently, and we are building momentum that we believe will result in performance improvements in 2024. During the operational softness we've experienced over this year, 2023 marked several accomplishments for Mammoth as we continued a significant debt refinancing transaction, began receiving payments from PREPA on our outstanding receivable, and entered into an agreement to monetize a portion of our outstanding PREPA receivable. This agreement allowed us to pull forward some of our capital expenditures, which we believe will benefit utilization in our Well Completion Services Division in the back half of 2024. In 2023, we entered into a new revolving credit facility agreement and a new term loan agreement, which refinanced in full Mammoth's indebtedness outstanding under a previous revolving credit facility. We believe these new agreements provide Mammoth with a solid liquidity base for years to come. In addition, our Board of Directors approved a stock repurchase program pursuant to which Mammoth is authorized to repurchase up to the lesser of $55 million or 10 million shares of our common stock, subject to certain factors. Turning now to PREPA. As we mentioned in our press release, PREPA has paid $64 million so far in 2024 and has approximately $19 million in FEMA funding for COBRA's work, which they received in December. Additionally, COPA received $22.2 million in payments from PREPA throughout 2023. While we are pleased to receive these funds, this represents only a portion of what is still owed to us. We continue to pursue payment of the outstanding amounts, including the associated interest. In terms of future milestones, PREPA's confirmation trial for its plan of adjustment is currently set to start on March 4th. Our next status report is due to the court on March 27, and the litigation stay has been continued through April 5. We are currently engaged in mediation with PREPA regarding our claims. If mediation is unsuccessful, we intend to litigate the disputed issues. 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 challenging year, we see many bright spots ahead across all of our business segments, and with a strong balance sheet, a new revolving credit facility agreement, and a new term loan agreement, we're poised for growth in 2024. We enter 2024 with an improving line of sight, particularly in our infrastructure and sand divisions, and we will be opportunistic in our well completions business as commodity prices improve and activity increases. I am proud of the hard work and perseverance that our teams have demonstrated across our organization. Our continued commitment to safety and high quality standards propel our organization. Now let me turn the call over to Mark to take you through our financial performance in greater detail. Thank you, Artie.