Mammoth Energy Services, Inc.

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, Zach Vaughn. Thank you, sir. You may begin.

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Mammoth Energy conference call to review 2024 first 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 www.mammothenergy.com. Information reported on this call speaks only as of today, May 2nd, 2024. 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 the 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. We 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 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 definition of this non-GAAP measure and its reconciliation to the most directly comparable GAAP measure can be found at the end of our earnings release and in our investor presentation, which can be found on our website. Mammoth Energy assumes no obligation to publicly update or revise any forward-looking statements. And now I'd like to turn it over to Mammoth Energy CEO, Artie Strayla.

Thank you, Zach, and good morning, everyone. I'll start with some overview comments about our business and the quarter before discussing recent developments and updated expectations for 2024. Then I will turn the call over to Mark to cover the financials in more detail. Our first quarter results were challenged for a number of reasons. Most notably, our well-completion services division experienced continued activity softness resulting from lower energy prices in the quarter, particularly natural gas, and operators electing to defer activity to later in the year. This softness resulted in white space in our FRAC calendar for the month of March and had a direct impact on our revenue and earnings for the quarter in this segment. Our infrastructure services division was also challenged this quarter. primarily due to experiencing less storm-related work in the quarter than we had anticipated, and that caused a slight underperformance relative to our expectations. I'll update everybody on our visibility for the remainder of the year in a moment, but we do expect this first quarter results to serve as our low-water mark for 2024. Our Infrastructure Division experienced a sequential decline in both revenue and adjusted EBITDA for the first quarter, stemming from less storm-related activity. However, we are now seeing an uptick in bidding opportunities related to engineering, fiber, transmission, and distribution, all of which are areas I believe we have differentiated and specialized capabilities to capitalize on opportunities in the market. Our engineering group continues to do well, and we're building up more projects in the T&D space currently. The Infrastructure Investment Job Act are being released funds are being released for infrastructure projects such as fiber and engineering, as well as transmission and distribution areas where we remain excited participants and this continues to give us optimism for improvements throughout 2024. Although the storm season in 2023 and so far in 2024 has been benign relative to historical standards, NOAA is forecasting an active storm season this year. and we will be prepared to deploy teams in the areas that may be impacted. We remain 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. Our well-completions business experience persistent challenges associated with lower U.S. onshore activity and sustained weakness in the natural gas basins in which we operate. This continued to result in underutilization in the first quarter, but we enter the second quarter with improved visibility and line of sight for the remainder of 2024. We are seeing indications of increased activity levels in the back half of the year in anticipation of increased natural gas demand, and we will be strategically positioned to capitalize on this anticipated demand if and when it ramps up. As is always a component of our internal analysis and decision-making, we continue to weigh opportunities to potentially move our assets to more oily basins, but we haven't had a sufficient opportunity yet that would allow us to sustain the calendar and costs associated with relocation. We remain extremely focused on our cost structure and will continue to efficiently manage our capital expenditures to align with activity levels and demand. In our sand division, we experienced increased demand, resulting in sequential improvement in tonnage sold. as well as slight uptick in pricing relative to the fourth quarter. The higher first quarter demand was primarily driven by Western Canada, and we expect to see additional improvements in demand across North America in the second half of 2024. Despite the slow start to the year, we have entered 2024 with an undrawn revolver and cash on the balance sheet, and we believe Mammoth remains poised to capitalize on near-term opportunities. 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 change environments positions us well in these segments. Turning now to PREPA, as previously announced, PREPA has paid 64 million so far in 2024 with respect to our receivable. While we are pleased with these payments, we are still owed approximately $349 million in principal and interest. PREPA has been holding $18.2 million in FEMA funding specifically related to COBRA's work since December. We continue to vigorously pursue payment of the outstanding amounts, especially the $18.2 million PREPA is withholding from us. We remain engaged in mediation with PREPA regarding our claims. If mediation is unsuccessful, we intend to litigate the disputed issues. Looking forward, we enter the second quarter with improved visibility and expect our results to take a meaningful step up as we progress through 2024. We are encouraged by customer conversations and the anticipated ramp in demand and associated well completions activity in the second half of this year. Our current line of sight gives us confidence that we will generate improved adjusted EBITDA results in each of the remaining quarters of 2024. We have a strengthened balance sheet, a new revolving credit facility agreement, and a new term loan agreement, and we remain well positioned for growth in 2024. Now let me turn the call over to Mark to take you through our financial performance in greater detail.