Mammoth Energy Services, Inc.

Greetings and welcome to the Mammoth Energy Services Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star 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.

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Mammoth Energy conference call to review 2025 second quarter results. This call is also being webcast and can be accessed through the audio link on the events and presentation page of the investor relations section at mammothenergy.com. Information reported on this call speaks only as of today, August 8th, 2025. 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 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 their nature, are uncertain and outside 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 Exchange Commission. Management may also refer to non-gap measures, including adjusted EBITDA. The definition of this non-GAAP measure and its reconciliation to the most directly comparable GAAP financial measures can be found at the end of our earnings release. Management 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 CFO, Mark Layton. Mark?

Thank you, Ken, and good morning, everyone. We appreciate you taking the time to join us on the call this morning. I'll start by providing an update on our business, the current market environment, and our ongoing transformation before turning the call over to our Chief Operating Officer, Bernie Lancaster, to discuss our operations in greater detail. Then, I'll return and provide our second quarter financial results and touch on our outlook before opening the call up for questions. The second quarter marked the beginning of a new chapter for Mammoth. I'll go into more detail later but revenue was $16.4 million in the second quarter and the net loss for the quarter was $35.7 million. The net loss included a non-cash impairment charge of $31.7 million. We executed several transactions during the quarter that meaningfully changed our portfolio of services and positioned us favorably for the future. As we've mentioned in the past, We take great pride in our track record of successfully growing businesses organically within our enterprise and transacting at attractive multiples at great returns, which help us generate significant value for our shareholders. This quarter was no different. We had the opportunity to complete transactions that would unlock value, make the company more resilient, and establish a launchpad for future growth, and we delivered. it's safe to say that our transformation is well underway. As part of this transformation, we are focused on driving returns through improved internal execution by prioritizing asset utilization, margin expansion, and capital efficiency across the portfolio. While macroeconomic uncertainty, including tariffs and demand volatility, continue to affect parts of the market, we remained proactive in repositioning Mammoth to perform through cycles. In the second quarter, this included strategic divestitures that sharpened our portfolio focus alongside the accretive acquisition of leased aircraft assets that strengthened and diversified our rental services segment. We will continue to evaluate strategic opportunities both within our existing platform and in adjacent markets that can unlock value while preserving balance sheet strength. Mammoth may act as a buyer or seller or both depending on market dynamics and where we see the most attractive returns. Second quarter was a great example of this as we completed three transactions, one as a buyer and two as a seller. As a buyer, We purchased eight small passenger aircraft in early April for approximately $11.5 million. These aircraft added meaningful scale and further diversified Mammoth's rental services fleet. Also, each of these planes are under leases with a commuter airline, so this purchase was immediately accretive to our financial results. In addition, we purchased two aircraft engines and one auxiliary power unit, or APU, during the second quarter. The APU is currently on lease and we expect the two engines to be on lease beginning in the third quarter. A second APU was purchased at the beginning of the third quarter. In total, we have invested $25 million year-to-date to grow our aircraft portfolio. Our aviation investments this year have generated positive EBITDA from day one and we believe this is an area that will continue to compete for capital inside our portfolio. As a seller, our first transaction in April consisted of selling three infrastructure subsidiaries, Five Star Electric, Higher Power Electrical, and Python Equipment to Peak Utility Services Group for an aggregate sales price of 108.7 million. I know we touched on this transaction on our last call, but this was a monumental transaction for Mammoth and demonstrated the ability for us to repeatedly grow businesses organically within our enterprise. As a reminder, we originally purchased these businesses for less than $10 million in 2017, and over the past eight years, we significantly grew this business and increased revenue. Our second transaction as a seller occurred in June. Two of Mammoth's subsidiaries, stingray pressure pumping, and mammoth equipment leasing, entered an agreement to sell all of the equipment used in our hydraulic fracturing business to MGB Manufacturing for proceeds of $15 million. Formerly, this equipment was included in Mammoth's Well Completion Services segment. We view this transaction as a natural next step as we look to reposition our portfolio of services and emphasize that demand-driven approach to our operations. We are focused on building a better, more resilient company for the future and each of these transactions were completed with this goal in mind. We view the current market as being primed with opportunity and we intend to remain active M&A participants. To provide some context, We have evaluated and continue to evaluate several opportunities. Some of these M&A deals are verticals to businesses in our portfolio. Some would expand our portfolio of services, and some would expand the footprint of existing operations. We remain focused on investing in quality assets or companies at the right valuations to generate positive returns. I look forward to sharing additional positive developments with you in coming quarters. Now, let me turn the call over to Bernie Lancaster, our Chief Operating Officer, to take you through our new business segments and the current state of Mammoth's operations.