Mammoth Energy Services, Inc.

Greetings and welcome to the Mammoth Energy Services second quarter 2024 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 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, Maria, and good morning, everyone. We appreciate you joining us for the Mammoth Energy Conference call to review 2024 second 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. Also note that information reported on this call speaks only as of today, August 9, 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 statements made in today's discussions 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 today as part of today's call that by nature are uncertain and outside the company's control. Actual results may materially differ. Please refer to the earnings press release that was issued this morning for our disclosure on forward-looking statements. These factors and other factors 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 in today's call. The definition of this non-GAAP measure and its reconciliation to the most directly 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 now with that behind me, I'd like to turn the call over to Mammoth Energy CEO, Artie Traylor. Artie.

Thank you, Ken, and good morning, everyone. I'll start with some commentary around several highlights and recent developments for Mammoth before discussing our second quarter results. I'll then provide commentary about our expectations going forward before turning the call over to Mark to cover the financials in more detail. I'd like to kick off today's call by discussing the PREPA settlement agreement that we announced last month on July 22nd. Our subsidiary, Cobra Acquisitions, entered into a settlement agreement with PREPA to settle all outstanding matters between Cobra and the Puerto Rico Public Electric Power Authority, or PREPA. The settlement agreement remains subject to approval by the title three court, which is expected to hear the motion related to the settlement agreement at the next omnibus hearing to be held on September 18th, 2024. We are pleased to have reached this agreement with PREPA and look forward to receiving the money for work we concluded over five years ago. We plan to use a portion of the $188.4 million in settlement proceeds to pay off our term credit facility. which had a balance of approximately $49.3 million as of June 30, 2024. The remaining amount of approximately $139.1 million will be cash on our balance sheet to be used to invest back into our businesses and for general corporate purposes. This is a significant development for us and may enable us to meaningfully enhance our standing within the markets that we operate and ultimately drive additional value creation for our shareholders. Turning now to our results. Our second quarter results demonstrate sequential improvement compared to the first quarter, despite continued challenges that persist due to industry activity softness. This softness particularly impacts the natural gas basins where we operate, which has especially constrained our well completion services division and other oil field services. This demand softness in the first half of the year resulted in underutilization of our assets, Current indications are that activity levels are expected to remain relatively flat in the back half of the year, with potential for a ramp up in 2025. We will be strategically positioned to capitalize on this anticipated demand if and when it ramps up. In this business segment, we remain very focused on our cost structure and will continue to efficiently manage our capital expenditures to align with expected activity levels and demand. Our infrastructure services business continues to perform well, and in Q2 demonstrated growth both sequentially and year over year. We are seeing an uptick in bidding opportunities relating to engineering, fiber, and transmission and distribution, all of which are areas that I believe we have differential and specialized capabilities to capitalize on the opportunities in the market. Our engineering group continues to do well, and we expect that business will continue to grow in terms of both revenue and EBITDA. The infrastructure investment and job acts funds are slowly being released for infrastructure projects such as fiber and engineering, as well as the transmission and distribution areas where we remain excited participants. And this continues to give us optimism for improvements throughout 2024. In addition, on the storm related side of this business, NOAA is forecasting an active storm season this year, which we've already seen commence with several named storms beginning in June. and we will be opportunistically 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 Mammoth's infrastructure business is well-positioned for long-term growth. As we enter the second half of the year, our teams across the organization remain focused on efficient and effective cost management to align with the activity levels of our customers. Currently, we have an undrawn revolver and cash on the balance sheet, as well as a recently announced resolution with PREPA. Moving forward, we believe Mammoth is well positioned for the second half of 2024 and beyond. We have improved our financial position with a strong balance sheet and cash position. We also have better visibility and opportunities across our business segments than we had at the beginning of the year. And having reached our settlement agreement with PREPA, We can finally put that chapter of our history in the rearview mirror, pay off our term loan facility and focus on opportunities to invest in our current business segments, explore new opportunities and return a more meaningful, enhancing, meaningfully enhancing the value of our organization for all shareholders. Now let me turn the call over to Mark to take you through our financial performance in greater detail.