Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Mammoth Energy Services, Inc. | |
Entity Central Index Key | 1,679,268 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 37,500,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 12,278,120 | $ 28,693,985 |
Accounts receivable, net | 24,973,332 | 20,602,962 |
Receivables from related parties | 33,141,299 | 28,059,565 |
Inventories | 4,922,627 | 4,355,088 |
Prepaid expenses | 3,402,022 | 4,254,148 |
Other current assets | 1,182,058 | 391,599 |
Total current assets | 79,899,458 | 86,357,347 |
Property, plant and equipment, net | 244,021,697 | 221,247,228 |
Intangible assets, net | 19,299,079 | 21,566,829 |
Goodwill | 86,043,148 | 86,043,148 |
Other non-current assets | 5,239,582 | 5,339,283 |
Total assets | 434,502,964 | 420,553,835 |
CURRENT LIABILITIES | ||
Accounts payable | 37,237,976 | 18,480,325 |
Payables to related parties | 4,921,129 | 2,434,031 |
Accrued expenses and other current liabilities | 8,825,877 | 8,396,968 |
Income taxes payable | 0 | 28,156 |
Total current liabilities | 50,984,982 | 29,339,480 |
Long-term debt | 0 | 0 |
Deferred income taxes | 43,881,012 | 47,670,789 |
Other liabilities | 2,733,863 | 2,501,886 |
Total liabilities | 97,599,857 | 79,512,155 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
Equity: | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 37,500,000 issued and outstanding at March 31, 2017 and December 31, 2016 | 375,000 | 375,000 |
Additional paid in capital | 400,775,752 | 400,205,921 |
Accumulated deficit | (61,259,392) | (56,322,878) |
Accumulated other comprehensive loss | (2,988,253) | (3,216,363) |
Total equity | 336,903,107 | 341,041,680 |
Total liabilities and equity | 434,502,964 | 420,553,835 |
Trade names | ||
CURRENT ASSETS | ||
Intangible assets, net | 5,439,307 | 5,617,057 |
Customer relationships | ||
CURRENT ASSETS | ||
Intangible assets, net | $ 13,859,772 | $ 15,949,772 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 37,500,000 | 37,500,000 |
Common stock, shares, outstanding (in shares) | 37,500,000 | 37,500,000 |
CONDENSED CONSOLDIATED STATEMEN
CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
REVENUE | ||||
Services revenue | $ 27,091,882 | $ 28,236,482 | ||
Services revenue - related parties | 33,132,571 | 1,156,815 | ||
Product revenue | 2,615,209 | 735,453 | ||
Product revenue - related parties | 11,576,151 | 4,374,754 | ||
Total Revenue | 74,415,813 | 34,503,504 | ||
COST AND EXPENSES | ||||
Services cost of revenue | [1] | 45,460,804 | 26,103,641 | |
Services cost of revenue - related parties | 494,345 | 2,835,402 | ||
Product cost of revenue | [2] | 5,376,897 | 3,158,632 | |
Product cost of revenue - related parties | 7,554,380 | 799,545 | ||
Selling, general and administrative | 5,844,093 | 3,110,197 | ||
Selling, general and administrative - related parties | 377,717 | 144,869 | ||
Depreciation and amortization | 16,893,777 | 17,413,591 | ||
Total cost and expenses | 82,002,013 | 53,565,877 | ||
Operating loss | (7,586,200) | (19,062,373) | ||
OTHER (EXPENSE) INCOME | ||||
Interest expense | (286,338) | (1,191,895) | ||
Other, net | (170,041) | 18,194 | ||
Total other expense | (456,379) | (1,173,701) | ||
Loss before income taxes | (8,042,579) | (20,236,074) | ||
(Benefit) provision for income taxes | (3,106,065) | 894,360 | ||
Net loss | (4,936,514) | (21,130,434) | $ (21,130,434) | |
Pro Forma C Corporation Data (unaudited): | ||||
Diluted (Note 9) (in USD per share) | $ (0.54) | |||
Weighted average pro forma shares outstanding—basic (Note 9) (in shares) | 37,500,000 | |||
OTHER COMPREHENSIVE LOSS | ||||
Foreign currency translation adjustment | [3] | 228,110 | 1,975,351 | |
Comprehensive loss | $ (4,708,404) | $ (19,155,083) | ||
Net loss per share (basic and diluted) (in dollars per share) (Note 9) | $ (0.13) | $ (0.70) | ||
Weighted average number of shares outstanding (in shares) (Note 9) | 37,500,000 | 30,000,000 | ||
Exclusive of depreciation and amortization | $ 15,837,735 | $ 16,348,075 | ||
Exclusive of depreciation and amortization | 1,018,241 | 1,029,201 | ||
Net of tax | $ 20,143 | $ 0 | ||
Pro Forma | ||||
OTHER (EXPENSE) INCOME | ||||
Net loss | $ (20,185,850) | |||
Pro Forma C Corporation Data (unaudited): | ||||
Pro forma benefit for income taxes | $ (944,584) | |||
Basic (Note 9) | $ (0.54) | |||
Weighted average pro forma shares outstanding—diluted (Note 9) (in shares) | 37,500,000 | |||
[1] | Exclusive of depreciation and amortization of 15,837,753 and 16,348,075, for Three Months Ended March 31 2017 and 2016, respectively. | |||
[2] | Exclusive of depreciation and amortization of 1,018,241 and 1,029,201, for Three Months Ended March 31 2017 and 2016, respectively. | |||
[3] | Net of tax of 20,143 and 0 for Three Months Ended March 31 2017 and 2016, respectively. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) | Total | AOCL | Common Partners | Common Partners | Common Stock | Accumulated Deficit | Additional Paid-in Capital | AOCL |
Balance at January 1, 2016 at Dec. 31, 2015 | $ 323,163,262 | $ (5,926,968) | $ 329,090,230 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||
Net loss | (21,130,434) | |||||||
Equity based compensation | (18,683) | $ (18,683) | ||||||
LLC Conversion (Note 1) | $ (296,986,430) | $ 296,986,430 | ||||||
Issuance of common stock at public offering, net of offering costs (in shares) | 37,500,000 | |||||||
Issuance of common stock at public offering, net of offering costs | 103,074,661 | $ 375,000 | ||||||
Stock-based compensation | 519,830 | 519,830 | ||||||
Other comprehensive income | $ 2,710,605 | 2,710,605 | ||||||
Ending balance at Dec. 31, 2016 | 0 | |||||||
Balance at March 31, 2017 (in shares) at Dec. 31, 2016 | 37,500,000 | 37,500,000 | ||||||
Balance at March 31, 2017 at Dec. 31, 2016 | $ 341,041,680 | (3,216,363) | $ 375,000 | $ (56,322,878) | 400,205,921 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||
Issuance of common stock at public offering, net of offering costs | 102,699,661 | |||||||
Net loss | (4,936,514) | (4,936,514) | ||||||
Equity based compensation | 569,831 | 569,831 | ||||||
Other comprehensive income | $ 228,110 | $ 228,110 | ||||||
Ending balance at Mar. 31, 2017 | $ 0 | |||||||
Balance at March 31, 2017 (in shares) at Mar. 31, 2017 | 37,500,000 | 37,500,000 | ||||||
Balance at March 31, 2017 at Mar. 31, 2017 | $ 336,903,107 | $ 375,000 | $ (61,259,392) | $ 400,775,752 | $ (2,988,253) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (4,936,514) | $ (21,130,434) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Equity based compensation | 569,831 | 0 |
Depreciation and amortization | 16,893,777 | 17,413,591 |
Amortization of coil tubing strings | 492,409 | 551,300 |
Amortization of debt origination costs | 99,701 | 99,701 |
Bad debt expense | (40,446) | 23,543 |
Gain disposal of property and equipment | (79,408) | (21,000) |
Deferred income taxes | (3,801,212) | 93,451 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (4,282,133) | (1,854,385) |
Receivables from related parties | (5,081,734) | 19,802,936 |
Inventories | (1,059,948) | (162,003) |
Prepaid expenses and other assets | 62,571 | (4,530,288) |
Accounts payable | 12,185,209 | (3,123,148) |
Payables to related parties | 2,487,033 | 1,393,117 |
Accrued expenses and other liabilities | 658,419 | 12,100,124 |
Income taxes payable | (28,156) | (26,912) |
Net cash provided by operating activities | 14,139,399 | 20,629,593 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (30,935,179) | (534,525) |
Proceeds from disposal of property and equipment | 369,258 | 34,863 |
Net cash used in investing activities | (30,565,921) | (499,662) |
Cash flows from financing activities: | ||
Borrowings from lines of credit | 0 | 4,800,000 |
Repayments of lines of credit | 0 | (14,299,772) |
Net cash used in financing activities | 0 | (9,499,772) |
Effect of foreign exchange rate on cash | 10,657 | 260,074 |
Net (decrease) increase in cash and cash equivalents | (16,415,865) | 10,890,233 |
Cash and cash equivalents at beginning of period | 28,693,985 | 3,074,072 |
Cash and cash equivalents at end of period | 12,278,120 | 13,964,305 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 186,584 | 1,138,550 |
Cash paid for income taxes | 700,825 | 934,262 |
Supplemental disclosure of non-cash transactions: | ||
Purchases of property and equipment included in trade accounts payable | $ 9,346,077 | $ 597,885 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements were prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the 2016 annual consolidated financial statements of Mammoth Energy Services, Inc. (the "Company," "Mammoth Inc" or "Mammoth" ) in the Annual Report on Form 10-K filed on February 24, 2017. Mammoth, together with its subsidiaries, is an integrated, growth-oriented oilfield services company serving companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company was incorporated in Delaware in June 2016 as a wholly-owned subsidiary of Mammoth Energy Partners, LP, a Delaware limited partnership (the "Partnership" or the "Predecessor"). The Partnership was originally formed by Wexford Capital LP (“Wexford”) in February 2014 as a holding company under the name Redback Inc. and was converted to a Delaware limited partnership in August 2014. On November 24, 2014, Mammoth Energy Holdings, LLC (“Mammoth Holdings”), an entity controlled by Wexford, Gulfport Energy Corporation (“Gulfport”) and Rhino Resource Partners LP (“Rhino”) contributed their interest in certain of the entities presented below to the Partnership in exchange for 20 million limited partner units. Mammoth Energy Partners GP, LLC (the “General Partner”) held a non-economic general partner interest. The following companies (the "Operating Entities”) are included in these condensed consolidated financial statements: Bison Drilling and Field Services, LLC (“Bison Drilling”), formed November 15, 2010; Bison Trucking LLC (“Bison Trucking”), formed August 9, 2013; White Wing Tubular Services LLC (“White Wing”), formed July 29, 2014; Barracuda Logistics LLC (“Barracuda”), formed October 24, 2014; Mr. Inspections LLC (“MRI”), formed January 25, 2015; Panther Drilling Systems LLC (“Panther”), formed December 11, 2012; Redback Energy Services, LLC (“Energy Services”), formed October 6, 2011; Redback Coil Tubing, LLC (“Coil Tubing”), formed May 15, 2012; Redback Pump Down Services LLC (“Pump Down”), formed January 16, 2015; Muskie Proppant LLC (“Muskie”), formed September 14, 2011; Stingray Pressure Pumping LLC (“Pressure Pumping”), formed March 20, 2012; Stingray Logistics LLC (“Logistics”), formed November 19, 2012; and Great White Sand Tiger Lodging Ltd. (“Lodging”), formed October 1, 2007, Silverback Energy Services LLC ("Silverback"), formed June 8, 2016; Mammoth Equipment Leasing LLC, formed on November 14, 2016; Cobra Acquisitions LLC, formed January 9, 2017; and Cobra T&D LLC, formed January 24, 2017. The contribution to the Partnership on November 24, 2014 of all Operating Entities, except Pressure Pumping, Logistics and entities created after the date of such contribution to the Partnership, was treated as a combination of entities under common control. On November 24, 2014, the Partnership also acquired Pressure Pumping and Logistics (collectively, the “Stingray Entities”) in exchange for 10 million limited partner units. Prior to the contribution, the Partnership did not conduct any material business operations other than certain activities related to the preparation of the registration statement for a proposed initial public offering. On October 12, 2016, the Partnership was converted into a Delaware limited liability company named Mammoth Energy Partners LLC (“Mammoth LLC”), and then Mammoth Holdings, Gulfport and Rhino, as all the members of Mammoth LLC, contributed their member interests in Mammoth LLC to Mammoth Inc. Prior to the conversion and the contribution, Mammoth Inc. was a wholly-owned subsidiary of the Partnership. Following the conversion and the contribution, Mammoth LLC (as the converted successor to the Partnership) was a wholly-owned subsidiary of Mammoth Inc. Mammoth Inc. did not conduct any material business operations until Mammoth LLC was contributed to it. On October 19, 2016, Mammoth Inc. closed its initial public offering of 7,750,000 shares of common stock (the "IPO"), which included an aggregate of 250,000 shares that were offered by Mammoth Holdings, Gulfport and Rhino, at a price to the public of $15.00 per share. Net proceeds to Mammoth Inc. from its sale of 7,500,000 shares of common stock were approximately $103.1 million . On the closing date of the IPO, Mammoth Inc. repaid all outstanding borrowings under its revolving credit facility and intends to use the remaining net proceeds for general corporate purposes, which may include the acquisition of additional equipment and complementary businesses that enhance its existing service offerings, broaden its service offerings or expand its customer relationships. At March 31, 2017 and December 31, 2016 , Mammoth Holdings, Gulfport and Rhino owned the following share of outstanding common stock of Mammoth Inc: At March 31, 2017 At December 31, 2016 Share Count % Ownership Share Count % Ownership Mammoth Holdings 20,443,903 54.5 % 20,443,903 54.5 % Gulfport 9,073,750 24.2 % 9,073,750 24.2 % Rhino 232,347 0.6 % 232,347 0.6 % Outstanding shares owned by related parties 29,750,000 79.3 % 29,750,000 79.3 % Total outstanding 37,500,000 100.0 % 37,500,000 100.0 % Operations The Company's pressure pumping services include equipment and personnel used in connection with the completion and early production of oil and natural gas wells, well services include coil tubing units used to enhance the flow of oil or natural gas and natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry. The Company's contract land and directional drilling services provides drilling rigs and directional tools for both vertical and horizontal drilling of oil and natural gas wells. The Company also provides other energy services, currently primarily consisting of remote accommodations for people working in the oil sands located in Northern Alberta, Canada. The acquisition of the Stingray Entities added to the Company's completion and production portfolio. Specifically, by adding hydraulic fracturing and proppant hauling logistics services, the Company has developed a diverse offering of operations that can participate in nearly all phases of the oilfield services industry. All of the Company’s operations are in North America. The Company operates in the Permian Basin, the Utica Shale, the Eagle Ford Shale, the Marcellus Shale, the Granite Wash, the Cana-Woodford Shale, the Cleveland Sand and the oil sands located in Northern Alberta, Canada. The Company's business depends in large part on the conditions in the oil and natural gas industry and, specifically, on the amount of capital spending by its customers. Any prolonged increase or decrease in oil and natural gas prices affects the levels of exploration, development and production activity, as well as the entire health of the oil and natural gas industry. Changes in the commodity prices for oil and natural gas could have a material effect on the Company’s results of operations and financial condition. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation The consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). All material intercompany accounts and transactions between the entities within the Company have been eliminated. (b) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include but are not limited to the allowance for doubtful accounts, reserves for self-insurance, depreciation and amortization of property and equipment, amortization of intangible assets, and future cash flows and fair values used to assess recoverability and impairment of long-lived assets, including goodwill. (c) Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered cash equivalents. The Company maintains its cash accounts in financial institutions that are insured by the Federal Deposit Insurance Corporation, with the exception of cash held by Lodging in a Canadian financial institution. At March 31, 2017 , the Company had $5.7 million , in Canadian dollars, of cash in Canadian accounts. Cash balances from time to time may exceed the insured amounts; however, the Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risks on such accounts. (d) Accounts Receivable Accounts receivable include amounts due from customers for services performed and are recorded as the work progresses. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Most areas in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30 th day following the invoice date and credit privileges may be revoked if balances remain unpaid. The Company regularly reviews receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events, and other factors. As the financial conditions of customers change, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company was to determine that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once final determination is made of their uncollectability. Following is a roll forward of the allowance for doubtful accounts for the three months ended March 31, 2017 and year ended December 31, 2016 : Balance, January 1, 2016 $ 3,947,432 Additions charged to expense 1,968,001 Deductions for uncollectible receivables written off (602,967 ) Balance, December 31, 2016 5,312,466 Additions charged (credited) to expense (40,446 ) Balance, March 31, 2017 $ 5,272,020 As discussed in Note 1, prolonged declines in pricing can impact the overall health of the oil and natural gas industry. The three months ended March 31, 2017 contained such pricing conditions which may lead to enhanced risk of uncollectiblity on certain receivables. As such, the Company monitored its previously established reserves and, consistent with Company policy, it reduced a portion of the allowance for doubtful accounts. The Company will continue to pursue collection until such time as final determination is made consistent with Company policy. (e) Inventory Inventory consists of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations, and supplies used in performing services. Inventory is stated at the lower of cost or market (net realizable value) on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage and future utility. Inventory also consists of coil tubing strings of various widths, diameters and lengths that are used in providing specialized services to customers who are primarily operators of oil or gas wells. The strings are used at various rates based on factors such as well conditions (i.e. pressure and friction), vertical and horizontal length of the well, running speed of the string in the well, and total running feet accumulated to the string. The Company obtains usage information from data acquisition software and other established assessment methods and attempts to amortize the strings over their estimated useful life. In no event will a string be amortized over a period longer than 12 months . Amortization of coil strings is included in services cost of revenue in the Condensed Consolidated Statements of Comprehensive Loss and totaled $492,409 and $551,300 for the three months ended March 31, 2017 and 2016 , respectively. (f) Prepaid Expenses Prepaid expenses primarily consist of insurance costs. Insurance costs are expensed over the periods that these costs benefit. (g) Property and Equipment Property and equipment, including renewals and betterments, are capitalized and stated at cost, while maintenance and repairs that do not increase the capacity, improve the efficiency or safety, or improve or extend the useful life are charged to operations as incurred. Disposals are removed at cost, less accumulated depreciation, and any resulting gain or loss is recorded in operations. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life, or the remaining lease term, as applicable. Depreciation does not begin until property and equipment is placed in service. Once placed in service, depreciation on property and equipment continues while being repaired, refurbished, or between periods of deployment. (h) Long-Lived Assets The Company reviews long-lived assets for recoverability in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standard Codification (“ASC”) Topic 360, Impairment or Disposal of Long-Lived Assets , which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. These evaluations for impairment are significantly impacted by estimates of revenues, costs and expenses, and other factors. If long-lived assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets. For the three months ended March 31, 2017 and 2016 , no impairment losses were recognized. (i) Goodwill Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The impairment test is a two-step process. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the implied value of the reporting unit’s goodwill is determined by allocating the unit’s fair value to its assets and liabilities as if the reporting unit had been acquired in a business combination. The fair value of the reporting unit is determined using the discounted cash flow approach, excluding interest. The impairment for goodwill is measured as the excess of its carrying value over its implied value. Goodwill was tested for impairment as of December 31, 2016. For the three months ended March 31, 2017 and 2016 , no impairment losses were recognized. (j) Other Non-Current Assets Other non-current assets primarily consist of deferred financing costs on the credit facility (See Note 7) and sales tax receivables. (k) Amortizable Intangible Assets Intangible assets subject to amortization include customer relationships and trade names. Customer relationships are amortized based on an estimated attrition factor and trade names are amortized over their estimated useful lives. For the three months ended March 31, 2017 and 2016 , no impairment losses were recognized. (l) Fair Value of Financial Instruments The Company's financial instruments consist of cash and cash equivalents, trade receivables, trade payables and amounts receivable or payable to related parties. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. (m) Revenue Recognition The Company generates revenue from multiple sources within its operating segments. In all cases, revenue is recognized when services are performed, collection of the receivable is probable, persuasive evidence of an arrangement exists, and the price is fixed and determinable. Services are sold without warranty or right of return. Taxes assessed on revenue transactions are presented on a net basis and are not included in revenue. Pressure pumping services are typically provided based upon a purchase order, contract, or on a spot market basis. Services are provided on a day rate, contracted, or hourly basis, and revenue is recognized as the work progresses. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized upon the completion of each day’s work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location, and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. The labor charges and the use of consumable supplies are reflected on the completed field tickets. Natural sand proppant revenues are recognized when legal title passes to the customer, which may occur at the production facility, rail origin or at the destination terminal. At that point, delivery has occurred, evidence of a contractual arrangement exists, the price is fixed and determinable, and collectability is reasonably assured. Amounts received from customers in advance of sand deliveries are recorded as deferred revenue. Customers have the ability to make up contractual short falls by achieving higher-than-contracted volumes over the shortfall window. Contractual shortfall revenue is deemed not probable until the end of the measurement period. Well services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis, and revenue is recognized as the work progresses. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Our equipment rental services are recognized upon completion of each day's work based on a completed field ticket. Contract drilling services are provided under daywork or footage contracts, and revenue is recognized as the work progresses based on the days completed or the feet drilled, as applicable. Mobilization revenue and costs for daywork and footage contracts are recognized over the days of actual drilling. Directional drilling services are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Proceeds from customers for the cost of equipment that is damaged or lost down-hole are reflected as service revenues as this is deemed to be perfunctory or inconsequential to the underlying service being performed. Revenue from remote accommodation services is recognized when rooms are occupied and services have been rendered. Advance deposits on rooms and special events are deferred until services are provided to the customer. For the three months ended March 31, 2017 , the Company recognized and collected $918,963 in business interruption insurance proceeds which is included in Service revenue in the accompanying Condensed Consolidated Statements of Comprehensive Loss. The proceeds resulted from loss of revenue relating to wildfires that forced evacuation of personnel. The timing of revenue recognition may differ from contract billing or payment schedules, resulting in revenues that have been earned but not billed (“unbilled revenue”). The Company had $2,756,150 and $2,732,993 of unbilled revenue included in accounts receivable, net in the Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016 , respectively. The Company had $11,466,592 and $10,506,958 of unbilled revenue included in receivables from related parties in the Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016 , respectively. (n) Earnings per Share Earnings per share is computed by dividing net loss by the weighted average number of outstanding shares. See Note 9. (o) Unaudited Pro Forma Loss per Share The Company’s pro forma basic loss per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period, as if the common stock issued in the IPO was outstanding for the three months ended March 31, 2016. Diluted earnings per share reflects the potential dilution, using the treasury stock method. During periods in which the Company realizes a net loss, restricted stock awards would be anti-dilutive to net loss per share and conversion into common stock is assumed not to occur. See Note 9. (p) Equity-based Compensation The Company records equity-based payments at fair value on the date of grant, and expenses the value of these equity-based payments in compensation expense over the applicable vesting periods. See Note 10. (q) Stock-based Compensation The Company's stock-based compensation program consists of restricted stock units granted to employees and restricted stock units granted to non-employee directors under the Mammoth Energy Services, Inc. 2016 Incentive Plan (the "2016 Plan"). The Company recognizes in its financial statements the cost of employee services received in exchange for restricted stock based on the fair value of the equity instruments as of the grant date. In general, this value is amortized over the vesting period; for grants with a non-substantive service condition, this value is recognized immediately. Amounts are recognized in selling, general and administrative expenses. See Note 11. (r) Income Taxes On October 12, 2016, immediately prior to the IPO of Mammoth Inc., the Partnership converted into Mammoth LLC a limited liability company. All equity interests in Mammoth LLC were contributed to Mammoth Inc. and Mammoth LLC became a wholly owned subsidiary of Mammoth Inc. Mammoth Inc. is a C corporation under the Internal Revenue Code and is subject to income tax. Historically, each of Mammoth LLC and the Operating Entities other than Lodging was treated as a partnership for federal income tax purposes. As a result, essentially all taxable earnings and losses were passed through to its members, and Mammoth LLC did not pay any federal income taxes at the entity level. Mammoth Inc. owns the member interests in several single member limited liability companies. These LLCs are subject to taxation in Texas where the Company does business; therefore, the Company may provide for income taxes attributable to that state on a current basis. The income tax provision for the period before the IPO has been prepared on a separate return basis for Mammoth LLC and all of its subsidiaries that were treated as a partnership for federal income tax purposes. Subsequent to the IPO, the Company's operations are included in a consolidated federal income tax return and other state returns. Accordingly, the Company has recognized deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases for all its subsidiaries as if each entity were a corporation, regardless of its actual characterization for U.S. federal income tax purposes. The Company's effective tax rate was 38.7% for the three months ended March 31, 2017 . The Company's effective tax rate can fluctuate as a result of the impact of state income taxes, permanent differences and changes in pre-tax income. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of deferred tax assets and liabilities as a result of a change in tax rate is recognized in the period that includes the statutory enactment date. A valuation allowance for deferred tax assets is recognized when it is more likely than not that the benefit of deferred tax assets will not be realized. The Company has included a pro forma provision for income taxes assuming it had been taxed as a C corporation in all periods prior to the conversion and contribution as part of its earnings per share calculation in Note 9. The unaudited pro forma data are presented for informational purposes only, and do not purport to project the Company's results of operations for any future period or its financial position as of any future date. Lodging is subject to foreign income taxes, and such taxes are provided in the financial statements pursuant to FASB ASC 740, Income Taxes. The Company evaluates tax positions taken or expected to be taken in preparation of its tax returns and disallows the recognition of tax positions that do not meet a “more likely than not” threshold of being sustained upon examination by the taxing authorities. During the three months ended March 31, 2017 and 2016 , no uncertain tax positions existed. Penalties and interest, if any, are recognized in general and administrative expense. The Company’s 2016 , 2015 , 2014 and 2013 income tax returns remain open to examination by the applicable taxing authorities. (s) Foreign Currency Translation For foreign operations, assets and liabilities are translated at the period-end exchange rate, and income statement items are translated at the average exchange rate for the period. Resulting translation adjustments are recorded within accumulated other comprehensive loss. Assets and liabilities denominated in foreign currencies, if any, are re-measured at the balance sheet date. Transaction gains or losses are included as a component of current period earnings. (t) Comprehensive Loss Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive loss included certain changes in equity that are excluded from net loss. Specifically, cumulative foreign currency translation adjustments are included in accumulated other comprehensive loss. (u) Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. The Company’s accounts receivable have a concentration in the oil and gas industry and the customer base consists primarily of independent oil and natural gas producers. At March 31, 2017 , no third-party customer accounted for more than 10% of the Company's trade accounts receivable and receivables from related parties balance combined. At March 31, 2017 and December 31, 2016 , related party customers accounted for 57% and 58% , respectively, of the Company’s trade accounts receivable and receivables from related parties balance combined. At March 31, 2017 and December 31, 2016 , one related party customer accounted for 52% and 53% , respectively, of the Company's trade accounts receivable and receivables from related parties balance combined. During the three months ended March 31, 2017 and 2016 , one related party customer accounted for 59% and 7% , respectively, of the Company's total revenue. Two third-party customers accounted for greater than 10% of the Company's total revenue for three months ended March 31, 2016 , at 35% and 17% , respectively. No third-party customer accounted for greater than 10% of the Company's total revenue for three months ended March 31, 2017 . (v) New Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory ,” which changes inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method (for example, inventory measured using first-in, first-out (FIFO) or average cost) at the lower of cost and net realizable value. ASU 2015-11 is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. On January 1, 2017, the Company adopted the ASU and it did not impact our condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers .” ASU 2014-09 supersedes existing revenue recognition requirements in GAAP and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Additionally, it requires expanded disclosures regarding the nature, amount, timing and certainty of revenue and cash flows from contracts with customers. The ASU was effective for annual and interim reporting periods beginning after December 15, 2016, using either a full or a modified retrospective application approach; however, in July 2015 the FASB decided to defer the effective date by one year (until 2018) by issuing ASU No. 2015-14, " Revenue From Contracts with Customers: Deferral of the Effective Date ." The Company expects to adopt this new revenue guidance utilizing the retrospective method of adoption in the first quarter of 2018, and because the Company is still evaluating the portion of its revenues that may be subject to the new leasing guidance discussed below, it is unable to quantify the impact that the new revenue standard will have on the Company’s consolidated financial statements upon adoption. In February 2016, the FASB issued ASU No, 2016-2 “ Leases ” amending the current accounting for leases. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) a financing lease or (ii) an operating lease. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. For sale leaseback transactions, a sale will only be recognized if the criteria in the new revenue recognition standard are met. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. Early adoption is permitted. Since a portion of the Company’s revenue may be subject to this new leasing guidance, it expects to adopt this updated leasing guidance at the same time its adopts the new revenue guidance discussed above, utilizing the retrospective method of adoption. This new leasing guidance will also impact the Company in situations where it is the lessee, and in certain circumstances it will have a right-of-use asset and lease liability on its consolidated financial statements. The Company is currently evaluating the effect the new guidance will have on the Company's consolidated financial statements and results of operations. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory A summary of the Company's inventory is shown below: March 31, December 31, 2017 2016 Supplies $ 3,638,587 $ 4,020,670 Raw materials 149,455 75,971 Work in process — 205,450 Finished goods 1,134,585 52,997 Total inventory $ 4,922,627 $ 4,355,088 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment include the following: March 31, December 31, Useful Life 2017 2016 Land $ 2,010,555 $ 2,010,555 Land improvements 15 years or life of lease 3,640,976 3,640,976 Buildings 15-20 years 42,461,037 42,191,745 Drilling rigs and related equipment 3-15 years 139,101,541 138,526,519 Pressure pumping equipment 3-5 years 101,580,322 96,500,592 Coil tubing equipment 4-10 years 28,006,153 28,019,217 Other machinery and equipment 7-20 years 36,171,379 35,548,357 Vehicles, trucks and trailers 5-10 years 30,041,893 29,964,148 Other property and equipment 3-12 years 11,437,020 11,416,334 394,450,876 387,818,443 Deposits on equipment and equipment in process of assembly 39,144,915 8,701,725 433,595,791 396,520,168 Less: accumulated depreciation 189,574,094 175,272,940 Property, plant and equipment, net $ 244,021,697 $ 221,247,228 Depreciation expense was $14,626,027 and $15,145,841 for the three months ended March 31, 2017 and 2016 , respectively. Proceeds from customers for horizontal and directional drilling services equipment, damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the statement of cash flows. For the three months ended March 31, 2017 , proceeds from the sale of equipment damaged or lost down-hole were $347,844 and gain on sales of equipment damaged or lost down-hole was $242,723 . There were no proceeds from the sale of equipment damaged or lost down-hole for the three months ended March 31, 2016 . Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company had the following definite lived intangible assets recorded: March 31, December 31, 2017 2016 Customer relationships $ 33,605,000 $ 33,605,000 Trade names 7,110,000 7,110,000 Less: accumulated amortization - customer relationships 19,745,228 17,655,228 Less: accumulated amortization - trade names 1,670,693 1,492,943 Intangible assets, net $ 19,299,079 $ 21,566,829 Amortization expense for intangible assets was $2,267,750 and $2,267,750 for the three months ended March 31, 2017 and 2016 , respectively. The original life of customer relationships range from 4 to 10 years with a remaining average useful life of 3.10 years. Trade names are amortized over a 10 year useful life and as of March 31, 2017 the remaining useful life was 7.65 years. Aggregated expected amortization expense for the future periods is expected to be as follows: Year ended December 31: Amount Remainder of 2017 $ 6,803,254 2018 8,224,005 2019 738,504 2020 738,504 2021 732,752 Thereafter 2,062,060 $ 19,299,079 Goodwill was $86,043,148 at March 31, 2017 and December 31, 2016 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expense and other current liabilities included the following: March 31, December 31, 2017 2016 Accrued compensation, benefits and related taxes $ 2,702,648 $ 2,368,143 Financed insurance premiums 3,022,422 3,293,859 State and local taxes payable 319,868 319,597 Insurance reserves 1,173,705 971,351 Other 1,607,234 1,444,018 Total $ 8,825,877 $ 8,396,968 Financed insurance premiums are due in monthly installments, bear interest at rates ranging from 1.79% to 5.00% , are unsecured, and mature within the twelve month period following the close of the year. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mammoth Credit Facility On November 25, 2014, Mammoth entered into a revolving credit and security agreement with a syndicate of banks that provides for maximum borrowings of $170 million . The facility, as amended in connection with the IPO, matures on November 25, 2019. Borrowings under this facility are secured by the assets of Mammoth, inclusive of the subsidiary companies. The maximum availability of the facility is subject to a borrowing base calculation prepared monthly. Concurrent with the execution of the facility, the initial advance was used to repay all the debt of the Company then outstanding. Interest is payable monthly at a base rate set by the institution’s commercial lending group plus an applicable margin. Additionally, at the Company's request, outstanding balances are permitted to be converted to LIBOR rate plus applicable margin tranches at set increments of $500,000 . The LIBOR rate option allows the Company to select interest periods from one, two, three or six months. The applicable margin for either the base rate or the LIBOR rate option can vary from 1.5% to 3.0% , based upon a calculation of the excess availability of the line as a percentage of the maximum credit limit. The deferred loan costs associated with this facility are classified in other non-current assets. At March 31, 2017 , the facility was undrawn and had borrowing base availability of $144,149,393 . At December 31, 2016 , the facility was undrawn and had borrowing base availability of $146,181,002 . The Mammoth facility also contains various customary affirmative and restrictive covenants. Among the various covenants are specifically identified financial covenants placing requirements of a minimum interest coverage ratio ( 3.0 to 1.0), maximum leverage ratio ( 4.0 to 1.0), and minimum availability ( $10 million ). As of March 31, 2017 and December 31, 2016 , the Company was in compliance with its covenants under the facility. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As discussed in Note 1, the Partnership was converted into a limited liability company on October 12, 2016 and the membership interests in the limited liability company were contributed to the Company. As a result, the Company will file a consolidated return for the period October 12, 2016 through December 31, 2016 . Prior to the conversion, the Partnership, other than Lodging, was not subject to corporate income taxes. The components of income tax expense (benefit) attributable to the Company for the three months ended March 31, 2017 and 2016 , are as follows: Three Months Ended March 31, 2017 2016 U.S. deferred income tax benefit $ (3,685,381 ) $ — Foreign current income tax expense 585,467 894,360 Foreign deferred income tax benefit (6,151 ) — Total $ (3,106,065 ) $ 894,360 A reconciliation of the statutory federal income tax amount to the recorded expense is as follows: Three Months Ended March 31, 2017 2016 Loss before income taxes $ (8,042,579 ) $ (20,236,074 ) Statutory income tax rate 35 % 35 % Expected income tax benefit (2,814,903 ) (7,082,626 ) Non-taxable entity — 8,260,791 Other permanent differences 14,063 6,793 State tax benefit (452,372 ) (2,055 ) Foreign tax credit (698,289 ) — Foreign earnings not in book income 1,046,248 — Foreign income tax rate differential (174,511 ) (270,813 ) Other (26,301 ) (17,730 ) Total $ (3,106,065 ) $ 894,360 Deferred tax assets and liabilities attributable to the Company consisted of the following: March 31, December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,891,392 $ 1,892,761 Net operating loss carryforward 2,280,696 — Deferred stock compensation 1,697,536 1,686,671 Accrued liabilities 601,449 746,132 Other 1,765,362 1,785,999 Deferred tax assets 8,236,435 6,111,563 Deferred tax liabilities: Property and equipment $ (40,901,822 ) $ (42,525,793 ) Intangible assets (6,890,355 ) (7,662,590 ) Unrepatriated foreign earnings (4,244,437 ) (3,451,110 ) Other (80,833 ) (142,859 ) Deferred tax liabilities (52,117,447 ) (53,782,352 ) Net deferred tax liability $ (43,881,012 ) $ (47,670,789 ) Reflected in accompanying balance sheet as: Deferred income taxes $ (43,881,012 ) $ (47,670,789 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Common Stock Offering On October 14, 2016, Mammoth Inc.’s common stock began trading on The Nasdaq Global Select Market under the symbol “TUSK.” On October 19, 2016, the Company closed the IPO of 7,750,000 shares of common stock at $15.00 per share. Net proceeds to Mammoth Inc. from its sale of 7,500,000 shares of common stock were approximately $103.1 million . The authorized capital stock of the Company consists of 200 million shares of common stock, par value $0.01 per share, and 20 million shares of preferred stock, par value $0.01 per share. Earnings Per Share In connection with the contribution of Operating Entities to the Partnership in November 2014, the Partnership issued an aggregate of 30,000,000 common units to Mammoth Holdings, Gulfport and Rhino. Upon the conversion of the Partnership into Mammoth LLC, a limited liability company, in October 2016, the common units were converted into an equal number of membership interests in Mammoth LLC. Finally, when Mammoth Holdings, Gulfport and Rhino contributed their 30,000,000 membership interests in Mammoth LLC to the Company in connection with the IPO, the Company issued to them an aggregate of 30,000,000 shares of the Company's common stock. Accordingly, for purposes of comparability of earnings per equity security, the amount of outstanding equity was the same for all periods presented. Three Months Ended March 31, 2017 2016 Basic loss per share: Allocation of earnings: Net loss $ (4,936,514 ) $ (21,130,434 ) Weighted average common shares outstanding 37,500,000 30,000,000 Basic loss per share $ (0.13 ) $ (0.70 ) Diluted loss per share: Allocation of earnings: Net loss $ (4,936,514 ) $ (21,130,434 ) Weighted average common shares, including dilutive effect (a) 37,500,000 30,000,000 Diluted loss per share $ (0.13 ) $ (0.70 ) (a) No incremental shares of potentially dilutive restricted stock awards were included for periods presented as their effect was antidulitive under the treasury stock method. Unaudited Pro Forma Earnings Per Share The Company’s pro forma basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period, as if the shares of common stock issued upon the conversion and contribution of Mammoth LLC to Mammoth Inc. were outstanding for the entire year. A reconciliation of the components of pro forma basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2016 Pro Forma C Corporation Data (unaudited): Net loss, as reported (21,130,434 ) Pro forma benefit for income taxes (944,584 ) Pro forma net loss (20,185,850 ) Basic loss per share: Allocation of earnings: Net loss $ (20,185,850 ) Weighted average common shares outstanding 37,500,000 Basic loss per share $ (0.54 ) Diluted loss per share: Allocation of earnings: Net loss $ (20,185,850 ) Weighted average common shares, including dilutive effect (a) 37,500,000 Diluted loss per share $ (0.54 ) (a) No incremental shares of potentially dilutive restricted stock awards were included for periods presented as their effect was antidulitive under the treasury stock method. Pro forma basic and diluted loss per share has been computed by dividing pro forma net loss attributable to the Company by the number of shares of common stock determined as if the shares of common stock issued were outstanding for all periods presented. Management believes that these assumptions provide a reasonable basis for presenting the pro forma effects. |
Equity Based Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Based Compensation | Equity Based Compensation Upon formation of certain Operating Entities (including the acquired Stingray Entities), specified members of management (“Specified Members”) were granted the right to receive distributions from their respective Operating Entity, after the contribution member’s unreturned capital balance was recovered (referred to as “Payout” provision). Additionally, non-employee members were included in the award class (“Non-Employee Members”). On November 24, 2014, the awards were modified in conjunction with the contribution of the Operating Entities to Mammoth. Awards are not granted in limited or general partner units. Agreements are for interest in the distributable earnings of Mammoth Holdings, Mammoth’s majority equity holder. On the IPO closing date, Mammoth Holdings unreturned capital balance was not fully recovered from its sale of common stock in the IPO. As a result, Payout did not occur and no compensation cost was recorded. Future offerings or sales of common stock to recover outstanding unreturned capital remain not probable. Payout is expected to occur following the sale by Mammoth Holding's of its shares of the Company's common stock, which is considered not probable until the event occurs. Therefore, for the awards that contained the Payout provision, no compensation cost was recognized as the distribution rights do not vest until Payout is reached. For the Specified Member awards, the unrecognized amount, which represents the fair value of the award as of the modification dates or grant date, was $5,618,552 . For the Non-Employees Member awards, the unrecognized cost, which represents the fair value of the awards as of March 31, 2017 was $48,061,841 . |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation The 2016 Plan authorizes the Company's Board of Directors or the compensation committee of the Company's Board of Directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards. There are 4.5 million shares of common stock reserved for issuance under the 2016 Plan. Restricted Stock Units The fair value of restricted stock unit awards was determined based on the fair market value of the Company's common stock on the date of the grant. This value is amortized over the vesting period. A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below. Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value Unvested shares as of January 1, 2017 282,780 $ 14.98 Granted 379,444 21.13 Vested — — Forfeited (4,444 ) 15.00 Unvested shares as of March 31, 2017 657,780 $ 18.53 As of March 31, 2017 , there was $11,324,218 of total unrecognized compensation cost related to the unvested restricted stock. The cost is expected to be recognized over a weighted average period of approximately thirty-three months . Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $569,831 for the three months ended March 31, 2017 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions between the subsidiaries of the Company and the following companies are included in Related Party Transactions: Gulfport; Grizzly Oil Sands ULC (“Grizzly”); Taylor Frac LLC (“Taylor”); El Toro ("El Toro"); Stingray Cementing, LLC ("Cementing"); Diamondback E&P, LLC ("Diamondback"); Stingray Energy Services, LLC ("SR Energy"); Everest Operations Management, LLC ("Everest"); Elk City Yard, LLC ("Elk City Yard"); Double Barrel Downhole Technologies, LLC ("DBDHT"); Orange Leaf Holdings LLC ("Orange Leaf"); Caliber Investment Group, LLC ("Caliber"); and Dunvegan North Oilfield Services ULC (“Dunvegan”). REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2017 2016 2017 2016 Pressure Pumping and Gulfport (a) $ 31,745,950 $ — $ 20,470,158 $ 19,094,509 Muskie and Gulfport (b) 11,540,419 1,918,078 8,109,288 5,373,007 Muskie and Taylor (c) 35,732 2,456,676 20,193 70,470 Panther Drilling and Gulfport (d) 1,042,377 451,875 1,732,263 1,434,036 Lodging and Grizzly (e) 264 555 263 274 Bison Drilling and El Toro (f) — 371,873 — — Panther Drilling and El Toro (f) — 170,170 — — Bison Trucking and El Toro (f) — 130,000 — — White Wing and El Toro (f) — 20,431 — — Energy Services and El Toro (g) 123,645 — 64,646 108,386 Barracuda and Taylor (h) 170,914 10,261 58,227 199,413 MRI and Cementing (i) 4,790 — 5,610 820 White Wing and Diamondback (j) — 1,650 — — Coil Tubing and SR Energy (k) 29,250 — 47,850 — Pressure Pumping and Cementing (l) 9,970 — 26,593 950,678 Silverback and SR Energy (m) 196 — 17,124 12,181 Panther and DBDHT (n) 5,215 — 86,015 100,450 Other Relationships — — 2,503,069 715,341 $ 44,708,722 $ 5,531,569 $ 33,141,299 $ 28,059,565 a. Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport. b. Muskie has agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. c. Taylor, an entity under common ownership with the Company and managed by the Company, has purchased natural sand proppant from Muskie. Natural sand proppant is sold to Taylor at a market-based per ton arrangement on an as-needed basis. d. Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. e. Lodging provides remote accommodation and food services to Grizzly, an entity owned approximately 75% by affiliates of Wexford and approximately 25% by Gulfport. f. The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. g. Energy Services performs completion and production services for El Toro pursuant to a master service agreement. h. Barracuda receives fees from Taylor for the usage of its rail transloading facility. i. MRI provides iron inspection services to Cementing. j. White Wing provides rental services to Diamondback. k. Coil Tubing provides rental services to SR Energy. l. Pressure Pumping provides services and materials to Cementing. m. Silverback provides services and materials to SR Energy. n. Panther provides services and materials to DBDHT. COST OF REVENUE ACCOUNTS PAYABLE Three Months Ended March 31, At March 31, At December 31, 2017 2016 2017 2016 Pressure Pumping and Taylor (a) $ — $ 2,665,992 $ — $ — Muskie and Taylor (a) 7,554,380 799,545 4,056,830 2,119,084 Barracuda and Taylor (b) 64,428 52,364 203,165 111,738 Panther and DBDHT (c) 127,720 46,554 115,661 — Bison Trucking and Diamondback (d) 38,132 41,627 10,187 — Energy Services and Elk City Yard (e) 26,700 26,700 — — Barracuda and SR Energy (f) 14,983 2,165 — 6,279 Stingray Entities and SR Energy (g) 222,382 — 408,458 167,866 Lodging and Dunvegan (h) — — — 3,199 Bison Trucking and El Toro (i) — — 79 — $ 8,048,725 $ 3,634,947 $ 4,794,380 $ 2,408,166 SELLING, GENERAL AND ADMINISTRATIVE COSTS Consolidated and Everest (j) $ 55,367 $ 72,324 $ 16,798 $ 12,668 Consolidated and Taylor (k) 62,550 37,840 — — Consolidated and Wexford (l) 227,739 34,705 109,065 13,197 Mammoth and Orange Leaf (m) 29,510 — — — Lodging and Dunvegan (h) 2,551 — 886 — $ 377,717 $ 144,869 $ 126,749 $ 25,865 $ 4,921,129 $ 2,434,031 a. Taylor, an entity under common ownership with the Company and managed by the Company, sells natural sand proppant to Muskie and Pressure Pumping. Natural sand proppant is sold to Muskie at a market-based per ton arrangement on an as-needed basis to supplement sand provided by its facility (when in operation) if any orders placed by its customers are not able to be readily fulfilled, either because of volume or specific grades of sand requested. b. From time to time, Barracuda pays for goods and services on behalf of Taylor. c. Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. d. Bison Trucking leases office space from Diamondback in Midland, Texas. The office space is leased through early 2017. e. Energy Services leases property from Elk City Yard. f. From time to time, Barracuda rents equipment from SR Energy. g. Stingray entities rent equipment from SR Energy. h. Dunvegan provides technical and administrative services and pays for goods and services on behalf of Lodging. i. Bison Drilling leases space from El Toro for storage of a rig. j. Everest has historically provided office space and certain technical, administrative and payroll services to the Company and the Company has reimbursed Everest in amounts determined by Everest based on estimates of the amount of office space provided and the amount of employees’ time spent performing services for the Company. In 2014, Everest provided personnel to support operational functions in addition to significant technical and advisory support. k. Taylor provides certain administrative and analytical services to the Company. l. Wexford provides certain administrative and analytical services to the Company and, from time to time, the Company pays for goods and services on behalf of Wexford. m. Orange Leaf leases office space to Mammoth Inc. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases real estate, rail cars and other equipment under long-term operating leases with varying terms and expiration dates through 2025. Aggregate future minimum lease payments under these non-cancelable operating leases in effect at March 31, 2017 are as follows: Year ended December 31: Amount Remainder of 2017 $ 4,344,826 2018 5,400,861 2019 4,980,266 2020 3,516,479 2021 2,280,974 Thereafter 4,244,036 $ 24,767,442 For the three months ended March 31, 2017 and 2016 , the Company recognized rent expense of $910,119 and $960,918 , respectively. The Company entered into a purchase agreement in 2014 with a sand supplier to begin January 1, 2015 and end December 31, 2016. The Company is subject to an annual commitment of 200,000 tons of sand. During June 2016, the Company paid a deposit of $600,000 to the sand supplier to be netted against future purchases of sand under this contract and deferred the commitment until June 2017. The Company has one additional unilateral option to extend for one additional year with a further deposit of $600,000 . As of March 31, 2017 , the future commitment for 2017 under this agreement is $2,110,848 . The Company has various letters of credit totaling $454,560 to secure rail car lease payments. These letters of credit were issued under the Company's revolving credit agreement and are collateralized by substantially all of the assets of the Company. On March 31, 2017 , the Company entered into a five year office lease agreement with Caliber Investment Group LLC, an affiliate of Wexford. The aggregate minimum lease payments under this agreement are $2.6 million . In the fourth quarter of 2016 and first quarter of 2017, we entered into agreements to acquire new high pressure fracturing units and other capital equipment. The future commitments under these agreements were $21.0 million as of March 31, 2017 . The Company has insurance coverage for physical loss to its assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. The Company has also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies. As of March 31, 2017 and December 31, 2016 , the policy requires a per deductible per occurrence of $250,000 . The Company establishes liabilities for the unpaid deductible portion of claims incurred relating to workers’ compensation and auto liability based on estimates. As of March 31, 2017 and December 31, 2016 , the policies contained an aggregate stop loss of $2,000,000 . As of March 31, 2017 and December 31, 2016 , accrued claims were $1,173,705 and $971,351 , respectively. The Company also self-insures its employee health insurance. The Company has coverage on its self-insurance program in the form of a stop loss of $150,000 and an aggregate stop-loss of $5,799,991 per calendar year. In connection with the insurance programs, letters of credit of $1,636,000 as of March 31, 2017 and December 31, 2016 , have been issued supporting the retained risk exposure. As of both March 31, 2017 and December 31, 2016 , these letters of credit were collateralized by substantially all of the assets of the Company. On March 20, 2017, as amended and restated on May 12, 2017 , the Company entered into definitive agreements (the "Contribution Agreements") with affiliates of Wexford, Gulfport and Rhino to acquire Sturgeon Acquisitions LLC (which owns Taylor, Taylor Real Estate Investments, LLC and South River Road, LLC), SR Energy and Cementing (collectively, the "Targets") for 7,000,000 of its common stock. Based upon the closing price of Mammoth's common stock of $19.06 per share on March 20, 2017, the total purchase price was valued at approximately $133.4 million . The acquisition is expected to close in the second quarter of 2017. On March 27, 2017, the Company, as purchaser, entered into a definitive asset purchase agreement with Chieftain Sand and Proppant, LLC and Chieftain Sand and Proppant Barron, LLC, unrelated third party sellers (the “Sellers”), following the Company’s successful bid in a bankruptcy court auction for substantially all of the assets of the Sellers for $35.3 million (the “Chieftain Acquisition”). The Chieftain Acquisition was approved by the bankruptcy court at a hearing on March 27, 2017, but remains subject to agreed closing conditions. The Chieftain Acquisition is expected to close in the second quarter of 2017. The Company intends to fund the purchase price for the Chieftain Acquisition with cash on hand and borrowings under its revolving credit facility. The Company is routinely involved in state and local tax audits. During 2015, the State of Ohio assessed taxes on the purchase of equipment the Company believes is exempt under state law. The Company has appealed the assessment and a hearing was scheduled for November 30, 2016. In November 2016, the State of Ohio deferred the hearing until 2017. While the Company is not able to predict the outcome of the appeal, this matter is not expected to have a material adverse effect on the financial position or results of operations of the Company. On March 16, 2016, a putative and collective action lawsuit alleging that Coil Tubing failed to pay a class of workers in compliance with the Fair Labor Standards Act was filed titled Rusty Hale, individually and on behalf of all others similarly situated v. Redback Energy Services LLC in the U.S. District Court for the Western District of Oklahoma. On March 28, 2017, the Company settled this matter. This resolution did not have a material impact on the Company’s financial position, results of operations or cash flows. On June 3, 2015, a putative class and collective action lawsuit alleging that Pressure Pumping failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act and Ohio law was filed titled William Crigler, et al v. Stingray Pressure Pumping, LLC in the U.S. District Court Southern District of Ohio Eastern Division. The parties have reached a settlement of this matter which received preliminary approval from the court in February 2017. This settlement, if it receives final approval at a fairness hearing in August 2017, will not have a material impact on the Company’s financial position, results of operations or cash flows. On October 12, 2015, a putative class and collective action lawsuit alleging that Energy Services failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act and Oklahoma law was filed titled William Reynolds, individually and on behalf of all others similarly situated v. Redback Energy Services LLC in the U.S. District Court for the Western District of Oklahoma. In March 2017, the parties reached a settlement of this matter and filed a joint motion with the court to approve this settlement, which was granted. This settlement will not have a material impact on the Company’s financial position, results of operations or cash flows. On December 2, 2015, a putative class and collective action lawsuit alleging that Bison Drilling failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act and Texas law was filed titled John Talamentez, individually and on behalf of all others similarly situated v. Bison Drilling and Field Services, LLC in the U.S. District Court Western District of Texas Midland/Odessa Division. The Company is evaluating the background facts and at this time is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. On February 12, 2016, a putative lawsuit alleging that Energy Services failed to pay a class of workers in compliance with the Fair Labor Standards Act was filed titled Brian Croniser vs. Redback Energy Services LLC in the U.S. District Court Southern District of Ohio. On February 17, 2017, the Company settled this matter and the lawsuit has been dismissed. This resolution did not have a material impact on the Company’s financial position, results of operations or cash flows. On June 22, 2016, a putative, Title VII discrimination, and Oklahoma anti-discrimination lawsuit alleging that Redback Energy Services was in violation of the previously mentioned federal and state laws. The lawsuit was filed titled Earl Richardson and Keary Johnson v. Redback Energy Services LLC in the U.S. District Court for the Western District of Oklahoma. The Company is evaluating the background facts at this time and is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. On August 1, 2016, a putative class and collective action lawsuit alleging that Energy Services failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act and Texas law was filed titled Michael Caffey, individually and on behalf of all others similarly situated v. Redback Energy Services LLC in the U.S. District Court for the Western District of Texas. The Company is evaluating the background facts and at this time is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. On September 27, 2016, a putative lawsuit alleging that Energy Services failed to pay a class of workers in compliance with the Fair Labor Standards Act was filed titled Michael Drake vs. Redback Coil Tubing LLC, et al in the U.S. District Court Western District of Texas. The Company is evaluating the background facts at this time. The parties have agreed to stay discovery while they engage in settlement discussions. The Company is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. On January 26, 2017, a collective action lawsuit alleging that Pressure Pumping failed to pay a class of workers in compliance with the Fair Labor Standards Act was filed titled Ryan Crosby vs. Stingray Pressure Pumping, in the United Stated District Court for the Southern District of Ohio Eastern Division. The Company is evaluating the background facts at this time and is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. The Company is involved in various other legal proceedings in the ordinary course of business. Although the Company cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. Defined contribution plan The Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at their date of hire. The plan allows eligible employees to contribute up to 92% of their annual compensation, not to exceed annual limits established by the federal government. The Company makes discretionary matching contributions of up to 4% of an employee’s compensation and may make additional discretionary contributions for eligible employees. For the three months ended March 31, 2017 and 2016 , the Company paid $0 and $67,171 , respectively, in contributions to the plan. |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments The Company is organized into five reportable segments based on the nature of services provided and the basis in which management makes business and operating decisions. The Company principally provides oilfield services in connection with on-shore drilling of oil and natural gas wells for small to large domestic independent oil and nature gas producers. The Company’s five segments consist of pressure pumping services ("Pressure Pumping Services"), well services ("Well Services"), natural sand proppant ("Sand"), contract land and directional drilling services ("Drilling") and other energy services ("Other Energy Services"). The Company's Chief Executive Officer and Chief Financial Officer comprise the Company's Chief Operating Decision Maker function ("CODM"). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements, and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of revenue and earnings before interest, other expense (income), impairment, taxes and depreciation and amortization as well as a qualitative basis, such as nature of the product and service offerings, types of customers. Based on the CODM's assessment, effective December 31, 2016, the Company reorganized the reportable segments to align with its new management reporting structure and business activities. Prior to this reorganization, the existing reportable segments were comprised of four segments for financial reporting purposes: land and directional drilling services, completion and production services, completion and production - natural sand proppant and remote accommodation services. As a result of this change, there are five reportable segments for financial reporting purposes as described above. Historical information in this Note to the financial statements has been revised to reflect the new reportable segment. The following table sets forth certain financial information with respect to the Company’s reportable segments: Completion and Production Three Months Ended March 31, 2017 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers... $ 8,691,647 $ 3,190,132 $ 2,615,209 $ 9,703,397 $ 5,506,706 $ 29,707,091 Revenue from related parties.......... $ 31,931,820 $ 152,895 $ 11,576,151 $ 1,047,592 $ 264 $ 44,708,722 Cost of revenue.............................. $ 28,771,868 $ 3,799,776 $ 12,931,277 $ 10,953,423 $ 2,430,082 $ 58,886,426 Selling, general and administrative expenses............................................... $ 1,774,926 $ 972,405 $ 1,542,565 $ 1,295,024 $ 636,890 $ 6,221,810 Earnings before interest, other expense, taxes and depreciation and amortization............ $ 10,076,673 $ (1,429,154 ) $ (282,482 ) $ (1,497,458 ) $ 2,439,998 $ 9,307,577 Other expense ....................... $ 2,631 $ 1,182 $ 102 $ 163,785 $ 2,341 $ 170,041 Interest expense.............................. $ 128,444 $ (105,902 ) $ 21,793 $ 217,182 $ 24,821 $ 286,338 Depreciation and amortization....... $ 9,157,893 $ 1,208,241 $ 1,019,491 $ 4,968,628 $ 539,524 $ 16,893,777 Income tax provision..................... $ — $ (3,691,532 ) $ — $ — $ 585,467 $ (3,106,065 ) Net income (loss).......................... $ 787,705 $ 1,158,857 $ (1,323,868 ) $ (6,847,053 ) $ 1,287,845 $ (4,936,514 ) Total expenditures for property, plant and equipment................. $ 28,665,309 $ — $ — $ 2,269,277 $ 593 $ 30,935,179 At March 31, 2017 Goodwill....................................... $ 86,043,148 $ — $ — $ — $ — $ 86,043,148 Intangible assets, net..................... $ 19,174,183 $ 124,896 $ — $ — $ — $ 19,299,079 Total Assets................................... $ 228,689,765 $ 47,734,021 $ 29,421,704 $ 97,838,858 $ 30,818,616 $ 434,502,964 Completion and Production Three Months Ended March 31, 2016 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers... $ 12,294,529 $ 2,698,592 $ 735,453 $ 5,257,738 $ 7,985,623 $ 28,971,935 Revenue from related parties.......... $ 10,261 $ — $ 4,374,754 $ 1,145,999 $ 555 $ 5,531,569 Cost of revenue.............................. $ 14,260,507 $ 3,927,709 $ 3,958,177 $ 7,208,657 $ 3,542,170 $ 32,897,220 Selling, general and administrative expenses............................................... $ 526,171 $ 573,296 $ 242,463 $ 1,302,473 $ 610,663 $ 3,255,066 Earnings before interest, other (income) expense, taxes and depreciation and amortization....... $ (2,481,888 ) $ (1,802,413 ) $ 909,567 $ (2,107,393 ) $ 3,833,345 $ (1,648,782 ) Other (income) expense ....................... $ (19,208 ) $ 9,400 $ (2 ) $ (10,074 ) $ 1,690 $ (18,194 ) Interest expense.............................. $ 237,055 $ 98,319 $ — $ 852,574 $ 3,947 $ 1,191,895 Depreciation and amortization....... $ 8,955,217 $ 1,397,507 $ 1,031,036 $ 5,507,381 $ 522,450 $ 17,413,591 Income tax provision..................... $ — $ — $ — $ — $ 894,360 $ 894,360 Net (loss) income.......................... $ (11,654,952 ) $ (3,307,639 ) $ (121,467 ) $ (8,457,274 ) $ 2,410,898 $ (21,130,434 ) Total expenditures for property, plant and equipment................. $ 30,695 $ — $ 92,028 $ 264,171 $ 147,631 $ 534,525 At March 31, 2016 Goodwill....................................... $ 86,043,148 $ — $ — $ — $ — $ 86,043,148 Intangible assets, net..................... $ 28,217,683 $ 152,396 $ — $ — $ — $ 28,370,079 Total Assets................................... $ 198,457,528 $ 60,191,891 $ 28,112,951 $ 110,148,572 $ 35,713,736 $ 432,624,678 The pressure pumping services segment provides hydraulic fracturing. The well services segment provides coil tubing, flowback and equipment rental services. The sand segment sells, distributes and produces sand for use in hydraulic fracturing. The contract land and directional drilling services segment provides vertical, horizontal and directional drilling services. The other energy services segment primarily provides housing, kitchen and dining, and recreational service facilities for oilfield workers that are located in remote areas away from readily available lodging. The pressure pumping and well service segments primarily services in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania, Eagle Ford and Permian basin in Texas and mid-continent region. The natural sand proppant segment primarily services the Utica Shale and Montney Shale in British Columbia and Alberta, Canada. The contract land and directional drilling services segment primarily services the Permian Basin in West Texas. The other energy services segment provides service primarily in Canada. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to March 31, 2017 , the Company entered into lease agreements with aggregate commitments of $0.5 million . On April 21, 2017, the Company acquired an energy service provider and related equipment from an unrelated third party seller for $4.0 million . On May 10, 2017, the Company acquired oilfield service equipment and related real property from an unrelated third party seller for $3.8 million . |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). All material intercompany accounts and transactions between the entities within the Company have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include but are not limited to the allowance for doubtful accounts, reserves for self-insurance, depreciation and amortization of property and equipment, amortization of intangible assets, and future cash flows and fair values used to assess recoverability and impairment of long-lived assets, including goodwill. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered cash equivalents. The Company maintains its cash accounts in financial institutions that are insured by the Federal Deposit Insurance Corporation, with the exception of cash held by Lodging in a Canadian financial institution. |
Accounts Receivable | Accounts Receivable Accounts receivable include amounts due from customers for services performed and are recorded as the work progresses. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Most areas in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30 th day following the invoice date and credit privileges may be revoked if balances remain unpaid. The Company regularly reviews receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events, and other factors. As the financial conditions of customers change, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company was to determine that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once final determination is made of their uncollectability. |
Inventory | Inventory Inventory consists of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations, and supplies used in performing services. Inventory is stated at the lower of cost or market (net realizable value) on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage and future utility. Inventory also consists of coil tubing strings of various widths, diameters and lengths that are used in providing specialized services to customers who are primarily operators of oil or gas wells. The strings are used at various rates based on factors such as well conditions (i.e. pressure and friction), vertical and horizontal length of the well, running speed of the string in the well, and total running feet accumulated to the string. The Company obtains usage information from data acquisition software and other established assessment methods and attempts to amortize the strings over their estimated useful life. In no event will a string be amortized over a period longer than 12 months . |
Prepaid Expenses | Prepaid Expenses Prepaid expenses primarily consist of insurance costs. Insurance costs are expensed over the periods that these costs benefit. |
Property and Equipment | Property and Equipment Property and equipment, including renewals and betterments, are capitalized and stated at cost, while maintenance and repairs that do not increase the capacity, improve the efficiency or safety, or improve or extend the useful life are charged to operations as incurred. Disposals are removed at cost, less accumulated depreciation, and any resulting gain or loss is recorded in operations. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life, or the remaining lease term, as applicable. Depreciation does not begin until property and equipment is placed in service. Once placed in service, depreciation on property and equipment continues while being repaired, refurbished, or between periods of deployment. |
Long-Lived Assets | Long-Lived Assets The Company reviews long-lived assets for recoverability in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standard Codification (“ASC”) Topic 360, Impairment or Disposal of Long-Lived Assets , which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. These evaluations for impairment are significantly impacted by estimates of revenues, costs and expenses, and other factors. If long-lived assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets. |
Goodwill | Goodwill Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The impairment test is a two-step process. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the implied value of the reporting unit’s goodwill is determined by allocating the unit’s fair value to its assets and liabilities as if the reporting unit had been acquired in a business combination. The fair value of the reporting unit is determined using the discounted cash flow approach, excluding interest. The impairment for goodwill is measured as the excess of its carrying value over its implied value. Goodwill was tested for impairment as of December 31, 2016. |
Other Non-Current Assets | Other Non-Current Assets Other non-current assets primarily consist of deferred financing costs on the credit facility (See Note 7) and sales tax receivables. |
Amortizable Intangible Assets | Amortizable Intangible Assets Intangible assets subject to amortization include customer relationships and trade names. Customer relationships are amortized based on an estimated attrition factor and trade names are amortized over their estimated useful lives. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments consist of cash and cash equivalents, trade receivables, trade payables and amounts receivable or payable to related parties. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. |
Revenue Recognition | Revenue Recognition The Company generates revenue from multiple sources within its operating segments. In all cases, revenue is recognized when services are performed, collection of the receivable is probable, persuasive evidence of an arrangement exists, and the price is fixed and determinable. Services are sold without warranty or right of return. Taxes assessed on revenue transactions are presented on a net basis and are not included in revenue. Pressure pumping services are typically provided based upon a purchase order, contract, or on a spot market basis. Services are provided on a day rate, contracted, or hourly basis, and revenue is recognized as the work progresses. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized upon the completion of each day’s work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location, and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. The labor charges and the use of consumable supplies are reflected on the completed field tickets. Natural sand proppant revenues are recognized when legal title passes to the customer, which may occur at the production facility, rail origin or at the destination terminal. At that point, delivery has occurred, evidence of a contractual arrangement exists, the price is fixed and determinable, and collectability is reasonably assured. Amounts received from customers in advance of sand deliveries are recorded as deferred revenue. Customers have the ability to make up contractual short falls by achieving higher-than-contracted volumes over the shortfall window. Contractual shortfall revenue is deemed not probable until the end of the measurement period. Well services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis, and revenue is recognized as the work progresses. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Our equipment rental services are recognized upon completion of each day's work based on a completed field ticket. Contract drilling services are provided under daywork or footage contracts, and revenue is recognized as the work progresses based on the days completed or the feet drilled, as applicable. Mobilization revenue and costs for daywork and footage contracts are recognized over the days of actual drilling. Directional drilling services are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Proceeds from customers for the cost of equipment that is damaged or lost down-hole are reflected as service revenues as this is deemed to be perfunctory or inconsequential to the underlying service being performed. Revenue from remote accommodation services is recognized when rooms are occupied and services have been rendered. Advance deposits on rooms and special events are deferred until services are provided to the customer. For the three months ended March 31, 2017 , the Company recognized and collected $918,963 in business interruption insurance proceeds which is included in Service revenue in the accompanying Condensed Consolidated Statements of Comprehensive Loss. The proceeds resulted from loss of revenue relating to wildfires that forced evacuation of personnel. The timing of revenue recognition may differ from contract billing or payment schedules, resulting in revenues that have been earned but not billed (“unbilled revenue”). |
Earnings Per Share and Unaudited Pro Forma Loss per Share | Earnings per Share Earnings per share is computed by dividing net loss by the weighted average number of outstanding shares. Unaudited Pro Forma Loss per Share The Company’s pro forma basic loss per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period, as if the common stock issued in the IPO was outstanding for the three months ended March 31, 2016. Diluted earnings per share reflects the potential dilution, using the treasury stock method. During periods in which the Company realizes a net loss, restricted stock awards would be anti-dilutive to net loss per share and conversion into common stock is assumed not to occur. |
Equity-based and Stock-based Compensation | Equity-based Compensation The Company records equity-based payments at fair value on the date of grant, and expenses the value of these equity-based payments in compensation expense over the applicable vesting periods. Stock-based Compensation The Company's stock-based compensation program consists of restricted stock units granted to employees and restricted stock units granted to non-employee directors under the Mammoth Energy Services, Inc. 2016 Incentive Plan (the "2016 Plan"). The Company recognizes in its financial statements the cost of employee services received in exchange for restricted stock based on the fair value of the equity instruments as of the grant date. In general, this value is amortized over the vesting period; for grants with a non-substantive service condition, this value is recognized immediately. Amounts are recognized in selling, general and administrative expenses. |
Income Taxes | Income Taxes On October 12, 2016, immediately prior to the IPO of Mammoth Inc., the Partnership converted into Mammoth LLC a limited liability company. All equity interests in Mammoth LLC were contributed to Mammoth Inc. and Mammoth LLC became a wholly owned subsidiary of Mammoth Inc. Mammoth Inc. is a C corporation under the Internal Revenue Code and is subject to income tax. Historically, each of Mammoth LLC and the Operating Entities other than Lodging was treated as a partnership for federal income tax purposes. As a result, essentially all taxable earnings and losses were passed through to its members, and Mammoth LLC did not pay any federal income taxes at the entity level. Mammoth Inc. owns the member interests in several single member limited liability companies. These LLCs are subject to taxation in Texas where the Company does business; therefore, the Company may provide for income taxes attributable to that state on a current basis. The income tax provision for the period before the IPO has been prepared on a separate return basis for Mammoth LLC and all of its subsidiaries that were treated as a partnership for federal income tax purposes. Subsequent to the IPO, the Company's operations are included in a consolidated federal income tax return and other state returns. Accordingly, the Company has recognized deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases for all its subsidiaries as if each entity were a corporation, regardless of its actual characterization for U.S. federal income tax purposes. The Company's effective tax rate was 38.7% for the three months ended March 31, 2017 . The Company's effective tax rate can fluctuate as a result of the impact of state income taxes, permanent differences and changes in pre-tax income. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of deferred tax assets and liabilities as a result of a change in tax rate is recognized in the period that includes the statutory enactment date. A valuation allowance for deferred tax assets is recognized when it is more likely than not that the benefit of deferred tax assets will not be realized. The Company has included a pro forma provision for income taxes assuming it had been taxed as a C corporation in all periods prior to the conversion and contribution as part of its earnings per share calculation in Note 9. The unaudited pro forma data are presented for informational purposes only, and do not purport to project the Company's results of operations for any future period or its financial position as of any future date. Lodging is subject to foreign income taxes, and such taxes are provided in the financial statements pursuant to FASB ASC 740, Income Taxes. The Company evaluates tax positions taken or expected to be taken in preparation of its tax returns and disallows the recognition of tax positions that do not meet a “more likely than not” threshold of being sustained upon examination by the taxing authorities. |
Foreign Currency Translation | Foreign Currency Translation For foreign operations, assets and liabilities are translated at the period-end exchange rate, and income statement items are translated at the average exchange rate for the period. Resulting translation adjustments are recorded within accumulated other comprehensive loss. Assets and liabilities denominated in foreign currencies, if any, are re-measured at the balance sheet date. Transaction gains or losses are included as a component of current period earnings. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive loss included certain changes in equity that are excluded from net loss. Specifically, cumulative foreign currency translation adjustments are included in accumulated other comprehensive loss. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. The Company’s accounts receivable have a concentration in the oil and gas industry and the customer base consists primarily of independent oil and natural gas producers. |
New Accounting Pronouncements | New Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory ,” which changes inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method (for example, inventory measured using first-in, first-out (FIFO) or average cost) at the lower of cost and net realizable value. ASU 2015-11 is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. On January 1, 2017, the Company adopted the ASU and it did not impact our condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers .” ASU 2014-09 supersedes existing revenue recognition requirements in GAAP and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Additionally, it requires expanded disclosures regarding the nature, amount, timing and certainty of revenue and cash flows from contracts with customers. The ASU was effective for annual and interim reporting periods beginning after December 15, 2016, using either a full or a modified retrospective application approach; however, in July 2015 the FASB decided to defer the effective date by one year (until 2018) by issuing ASU No. 2015-14, " Revenue From Contracts with Customers: Deferral of the Effective Date ." The Company expects to adopt this new revenue guidance utilizing the retrospective method of adoption in the first quarter of 2018, and because the Company is still evaluating the portion of its revenues that may be subject to the new leasing guidance discussed below, it is unable to quantify the impact that the new revenue standard will have on the Company’s consolidated financial statements upon adoption. In February 2016, the FASB issued ASU No, 2016-2 “ Leases ” amending the current accounting for leases. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) a financing lease or (ii) an operating lease. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. For sale leaseback transactions, a sale will only be recognized if the criteria in the new revenue recognition standard are met. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. Early adoption is permitted. Since a portion of the Company’s revenue may be subject to this new leasing guidance, it expects to adopt this updated leasing guidance at the same time its adopts the new revenue guidance discussed above, utilizing the retrospective method of adoption. This new leasing guidance will also impact the Company in situations where it is the lessee, and in certain circumstances it will have a right-of-use asset and lease liability on its consolidated financial statements. The Company is currently evaluating the effect the new guidance will have on the Company's consolidated financial statements and results of operations. |
Organization and Basis of Pre23
Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Ownership Of The Company By Major Stakeholders | At March 31, 2017 and December 31, 2016 , Mammoth Holdings, Gulfport and Rhino owned the following share of outstanding common stock of Mammoth Inc: At March 31, 2017 At December 31, 2016 Share Count % Ownership Share Count % Ownership Mammoth Holdings 20,443,903 54.5 % 20,443,903 54.5 % Gulfport 9,073,750 24.2 % 9,073,750 24.2 % Rhino 232,347 0.6 % 232,347 0.6 % Outstanding shares owned by related parties 29,750,000 79.3 % 29,750,000 79.3 % Total outstanding 37,500,000 100.0 % 37,500,000 100.0 % |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts Receivable | Following is a roll forward of the allowance for doubtful accounts for the three months ended March 31, 2017 and year ended December 31, 2016 : Balance, January 1, 2016 $ 3,947,432 Additions charged to expense 1,968,001 Deductions for uncollectible receivables written off (602,967 ) Balance, December 31, 2016 5,312,466 Additions charged (credited) to expense (40,446 ) Balance, March 31, 2017 $ 5,272,020 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of the Company's inventory is shown below: March 31, December 31, 2017 2016 Supplies $ 3,638,587 $ 4,020,670 Raw materials 149,455 75,971 Work in process — 205,450 Finished goods 1,134,585 52,997 Total inventory $ 4,922,627 $ 4,355,088 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment include the following: March 31, December 31, Useful Life 2017 2016 Land $ 2,010,555 $ 2,010,555 Land improvements 15 years or life of lease 3,640,976 3,640,976 Buildings 15-20 years 42,461,037 42,191,745 Drilling rigs and related equipment 3-15 years 139,101,541 138,526,519 Pressure pumping equipment 3-5 years 101,580,322 96,500,592 Coil tubing equipment 4-10 years 28,006,153 28,019,217 Other machinery and equipment 7-20 years 36,171,379 35,548,357 Vehicles, trucks and trailers 5-10 years 30,041,893 29,964,148 Other property and equipment 3-12 years 11,437,020 11,416,334 394,450,876 387,818,443 Deposits on equipment and equipment in process of assembly 39,144,915 8,701,725 433,595,791 396,520,168 Less: accumulated depreciation 189,574,094 175,272,940 Property, plant and equipment, net $ 244,021,697 $ 221,247,228 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The Company had the following definite lived intangible assets recorded: March 31, December 31, 2017 2016 Customer relationships $ 33,605,000 $ 33,605,000 Trade names 7,110,000 7,110,000 Less: accumulated amortization - customer relationships 19,745,228 17,655,228 Less: accumulated amortization - trade names 1,670,693 1,492,943 Intangible assets, net $ 19,299,079 $ 21,566,829 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Aggregated expected amortization expense for the future periods is expected to be as follows: Year ended December 31: Amount Remainder of 2017 $ 6,803,254 2018 8,224,005 2019 738,504 2020 738,504 2021 732,752 Thereafter 2,062,060 $ 19,299,079 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expense and other current liabilities included the following: March 31, December 31, 2017 2016 Accrued compensation, benefits and related taxes $ 2,702,648 $ 2,368,143 Financed insurance premiums 3,022,422 3,293,859 State and local taxes payable 319,868 319,597 Insurance reserves 1,173,705 971,351 Other 1,607,234 1,444,018 Total $ 8,825,877 $ 8,396,968 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) attributable to the Company for the three months ended March 31, 2017 and 2016 , are as follows: Three Months Ended March 31, 2017 2016 U.S. deferred income tax benefit $ (3,685,381 ) $ — Foreign current income tax expense 585,467 894,360 Foreign deferred income tax benefit (6,151 ) — Total $ (3,106,065 ) $ 894,360 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax amount to the recorded expense is as follows: Three Months Ended March 31, 2017 2016 Loss before income taxes $ (8,042,579 ) $ (20,236,074 ) Statutory income tax rate 35 % 35 % Expected income tax benefit (2,814,903 ) (7,082,626 ) Non-taxable entity — 8,260,791 Other permanent differences 14,063 6,793 State tax benefit (452,372 ) (2,055 ) Foreign tax credit (698,289 ) — Foreign earnings not in book income 1,046,248 — Foreign income tax rate differential (174,511 ) (270,813 ) Other (26,301 ) (17,730 ) Total $ (3,106,065 ) $ 894,360 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities attributable to the Company consisted of the following: March 31, December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,891,392 $ 1,892,761 Net operating loss carryforward 2,280,696 — Deferred stock compensation 1,697,536 1,686,671 Accrued liabilities 601,449 746,132 Other 1,765,362 1,785,999 Deferred tax assets 8,236,435 6,111,563 Deferred tax liabilities: Property and equipment $ (40,901,822 ) $ (42,525,793 ) Intangible assets (6,890,355 ) (7,662,590 ) Unrepatriated foreign earnings (4,244,437 ) (3,451,110 ) Other (80,833 ) (142,859 ) Deferred tax liabilities (52,117,447 ) (53,782,352 ) Net deferred tax liability $ (43,881,012 ) $ (47,670,789 ) Reflected in accompanying balance sheet as: Deferred income taxes $ (43,881,012 ) $ (47,670,789 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | A reconciliation of the components of pro forma basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2016 Pro Forma C Corporation Data (unaudited): Net loss, as reported (21,130,434 ) Pro forma benefit for income taxes (944,584 ) Pro forma net loss (20,185,850 ) Basic loss per share: Allocation of earnings: Net loss $ (20,185,850 ) Weighted average common shares outstanding 37,500,000 Basic loss per share $ (0.54 ) Diluted loss per share: Allocation of earnings: Net loss $ (20,185,850 ) Weighted average common shares, including dilutive effect (a) 37,500,000 Diluted loss per share $ (0.54 ) (a) No incremental shares of potentially dilutive restricted stock awards were included for periods presented as their effect was antidulitive under the treasury stock method. Three Months Ended March 31, 2017 2016 Basic loss per share: Allocation of earnings: Net loss $ (4,936,514 ) $ (21,130,434 ) Weighted average common shares outstanding 37,500,000 30,000,000 Basic loss per share $ (0.13 ) $ (0.70 ) Diluted loss per share: Allocation of earnings: Net loss $ (4,936,514 ) $ (21,130,434 ) Weighted average common shares, including dilutive effect (a) 37,500,000 30,000,000 Diluted loss per share $ (0.13 ) $ (0.70 ) (a) No incremental shares of potentially dilutive restricted stock awards were included for periods presented as their effect was antidulitive under the treasury stock method. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below. Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value Unvested shares as of January 1, 2017 282,780 $ 14.98 Granted 379,444 21.13 Vested — — Forfeited (4,444 ) 15.00 Unvested shares as of March 31, 2017 657,780 $ 18.53 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2017 2016 2017 2016 Pressure Pumping and Gulfport (a) $ 31,745,950 $ — $ 20,470,158 $ 19,094,509 Muskie and Gulfport (b) 11,540,419 1,918,078 8,109,288 5,373,007 Muskie and Taylor (c) 35,732 2,456,676 20,193 70,470 Panther Drilling and Gulfport (d) 1,042,377 451,875 1,732,263 1,434,036 Lodging and Grizzly (e) 264 555 263 274 Bison Drilling and El Toro (f) — 371,873 — — Panther Drilling and El Toro (f) — 170,170 — — Bison Trucking and El Toro (f) — 130,000 — — White Wing and El Toro (f) — 20,431 — — Energy Services and El Toro (g) 123,645 — 64,646 108,386 Barracuda and Taylor (h) 170,914 10,261 58,227 199,413 MRI and Cementing (i) 4,790 — 5,610 820 White Wing and Diamondback (j) — 1,650 — — Coil Tubing and SR Energy (k) 29,250 — 47,850 — Pressure Pumping and Cementing (l) 9,970 — 26,593 950,678 Silverback and SR Energy (m) 196 — 17,124 12,181 Panther and DBDHT (n) 5,215 — 86,015 100,450 Other Relationships — — 2,503,069 715,341 $ 44,708,722 $ 5,531,569 $ 33,141,299 $ 28,059,565 a. Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport. b. Muskie has agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. c. Taylor, an entity under common ownership with the Company and managed by the Company, has purchased natural sand proppant from Muskie. Natural sand proppant is sold to Taylor at a market-based per ton arrangement on an as-needed basis. d. Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. e. Lodging provides remote accommodation and food services to Grizzly, an entity owned approximately 75% by affiliates of Wexford and approximately 25% by Gulfport. f. The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. g. Energy Services performs completion and production services for El Toro pursuant to a master service agreement. h. Barracuda receives fees from Taylor for the usage of its rail transloading facility. i. MRI provides iron inspection services to Cementing. j. White Wing provides rental services to Diamondback. k. Coil Tubing provides rental services to SR Energy. l. Pressure Pumping provides services and materials to Cementing. m. Silverback provides services and materials to SR Energy. n. Panther provides services and materials to DBDHT. COST OF REVENUE ACCOUNTS PAYABLE Three Months Ended March 31, At March 31, At December 31, 2017 2016 2017 2016 Pressure Pumping and Taylor (a) $ — $ 2,665,992 $ — $ — Muskie and Taylor (a) 7,554,380 799,545 4,056,830 2,119,084 Barracuda and Taylor (b) 64,428 52,364 203,165 111,738 Panther and DBDHT (c) 127,720 46,554 115,661 — Bison Trucking and Diamondback (d) 38,132 41,627 10,187 — Energy Services and Elk City Yard (e) 26,700 26,700 — — Barracuda and SR Energy (f) 14,983 2,165 — 6,279 Stingray Entities and SR Energy (g) 222,382 — 408,458 167,866 Lodging and Dunvegan (h) — — — 3,199 Bison Trucking and El Toro (i) — — 79 — $ 8,048,725 $ 3,634,947 $ 4,794,380 $ 2,408,166 SELLING, GENERAL AND ADMINISTRATIVE COSTS Consolidated and Everest (j) $ 55,367 $ 72,324 $ 16,798 $ 12,668 Consolidated and Taylor (k) 62,550 37,840 — — Consolidated and Wexford (l) 227,739 34,705 109,065 13,197 Mammoth and Orange Leaf (m) 29,510 — — — Lodging and Dunvegan (h) 2,551 — 886 — $ 377,717 $ 144,869 $ 126,749 $ 25,865 $ 4,921,129 $ 2,434,031 a. Taylor, an entity under common ownership with the Company and managed by the Company, sells natural sand proppant to Muskie and Pressure Pumping. Natural sand proppant is sold to Muskie at a market-based per ton arrangement on an as-needed basis to supplement sand provided by its facility (when in operation) if any orders placed by its customers are not able to be readily fulfilled, either because of volume or specific grades of sand requested. b. From time to time, Barracuda pays for goods and services on behalf of Taylor. c. Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. d. Bison Trucking leases office space from Diamondback in Midland, Texas. The office space is leased through early 2017. e. Energy Services leases property from Elk City Yard. f. From time to time, Barracuda rents equipment from SR Energy. g. Stingray entities rent equipment from SR Energy. h. Dunvegan provides technical and administrative services and pays for goods and services on behalf of Lodging. i. Bison Drilling leases space from El Toro for storage of a rig. j. Everest has historically provided office space and certain technical, administrative and payroll services to the Company and the Company has reimbursed Everest in amounts determined by Everest based on estimates of the amount of office space provided and the amount of employees’ time spent performing services for the Company. In 2014, Everest provided personnel to support operational functions in addition to significant technical and advisory support. k. Taylor provides certain administrative and analytical services to the Company. l. Wexford provides certain administrative and analytical services to the Company and, from time to time, the Company pays for goods and services on behalf of Wexford. m. Orange Leaf leases office space to Mammoth Inc. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Aggregate future minimum lease payments under these non-cancelable operating leases in effect at March 31, 2017 are as follows: Year ended December 31: Amount Remainder of 2017 $ 4,344,826 2018 5,400,861 2019 4,980,266 2020 3,516,479 2021 2,280,974 Thereafter 4,244,036 $ 24,767,442 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table sets forth certain financial information with respect to the Company’s reportable segments: Completion and Production Three Months Ended March 31, 2017 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers... $ 8,691,647 $ 3,190,132 $ 2,615,209 $ 9,703,397 $ 5,506,706 $ 29,707,091 Revenue from related parties.......... $ 31,931,820 $ 152,895 $ 11,576,151 $ 1,047,592 $ 264 $ 44,708,722 Cost of revenue.............................. $ 28,771,868 $ 3,799,776 $ 12,931,277 $ 10,953,423 $ 2,430,082 $ 58,886,426 Selling, general and administrative expenses............................................... $ 1,774,926 $ 972,405 $ 1,542,565 $ 1,295,024 $ 636,890 $ 6,221,810 Earnings before interest, other expense, taxes and depreciation and amortization............ $ 10,076,673 $ (1,429,154 ) $ (282,482 ) $ (1,497,458 ) $ 2,439,998 $ 9,307,577 Other expense ....................... $ 2,631 $ 1,182 $ 102 $ 163,785 $ 2,341 $ 170,041 Interest expense.............................. $ 128,444 $ (105,902 ) $ 21,793 $ 217,182 $ 24,821 $ 286,338 Depreciation and amortization....... $ 9,157,893 $ 1,208,241 $ 1,019,491 $ 4,968,628 $ 539,524 $ 16,893,777 Income tax provision..................... $ — $ (3,691,532 ) $ — $ — $ 585,467 $ (3,106,065 ) Net income (loss).......................... $ 787,705 $ 1,158,857 $ (1,323,868 ) $ (6,847,053 ) $ 1,287,845 $ (4,936,514 ) Total expenditures for property, plant and equipment................. $ 28,665,309 $ — $ — $ 2,269,277 $ 593 $ 30,935,179 At March 31, 2017 Goodwill....................................... $ 86,043,148 $ — $ — $ — $ — $ 86,043,148 Intangible assets, net..................... $ 19,174,183 $ 124,896 $ — $ — $ — $ 19,299,079 Total Assets................................... $ 228,689,765 $ 47,734,021 $ 29,421,704 $ 97,838,858 $ 30,818,616 $ 434,502,964 Completion and Production Three Months Ended March 31, 2016 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers... $ 12,294,529 $ 2,698,592 $ 735,453 $ 5,257,738 $ 7,985,623 $ 28,971,935 Revenue from related parties.......... $ 10,261 $ — $ 4,374,754 $ 1,145,999 $ 555 $ 5,531,569 Cost of revenue.............................. $ 14,260,507 $ 3,927,709 $ 3,958,177 $ 7,208,657 $ 3,542,170 $ 32,897,220 Selling, general and administrative expenses............................................... $ 526,171 $ 573,296 $ 242,463 $ 1,302,473 $ 610,663 $ 3,255,066 Earnings before interest, other (income) expense, taxes and depreciation and amortization....... $ (2,481,888 ) $ (1,802,413 ) $ 909,567 $ (2,107,393 ) $ 3,833,345 $ (1,648,782 ) Other (income) expense ....................... $ (19,208 ) $ 9,400 $ (2 ) $ (10,074 ) $ 1,690 $ (18,194 ) Interest expense.............................. $ 237,055 $ 98,319 $ — $ 852,574 $ 3,947 $ 1,191,895 Depreciation and amortization....... $ 8,955,217 $ 1,397,507 $ 1,031,036 $ 5,507,381 $ 522,450 $ 17,413,591 Income tax provision..................... $ — $ — $ — $ — $ 894,360 $ 894,360 Net (loss) income.......................... $ (11,654,952 ) $ (3,307,639 ) $ (121,467 ) $ (8,457,274 ) $ 2,410,898 $ (21,130,434 ) Total expenditures for property, plant and equipment................. $ 30,695 $ — $ 92,028 $ 264,171 $ 147,631 $ 534,525 At March 31, 2016 Goodwill....................................... $ 86,043,148 $ — $ — $ — $ — $ 86,043,148 Intangible assets, net..................... $ 28,217,683 $ 152,396 $ — $ — $ — $ 28,370,079 Total Assets................................... $ 198,457,528 $ 60,191,891 $ 28,112,951 $ 110,148,572 $ 35,713,736 $ 432,624,678 |
Organization and Basis of Pre35
Organization and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 19, 2016 | Nov. 24, 2014 |
Operating Entities | ||
Business Acquisition [Line Items] | ||
Limited partner units issued (in shares) | 20,000,000 | |
Stingray Entities | ||
Business Acquisition [Line Items] | ||
Limited partner units issued (in shares) | 10,000,000 | |
IPO | ||
Business Acquisition [Line Items] | ||
Shares issued (in shares) | 7,750,000 | |
Sale of stock, price per share (in dollars per share) | $ 15 | |
Proceeds from issuance initial public offering | $ 103.1 | |
Over-Allotment Option | ||
Business Acquisition [Line Items] | ||
Shares issued (in shares) | 7,500,000 | |
Outstanding shares owned by related parties | IPO | ||
Business Acquisition [Line Items] | ||
Shares issued (in shares) | 250,000 |
Organization and Basis of Pre36
Organization and Basis of Presentation - Schedule of Ownership (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Share Count (in shares) | 37,500,000 | 37,500,000 |
% Ownership | 100.00% | 100.00% |
Mammoth Holdings | ||
Business Acquisition [Line Items] | ||
Share Count (in shares) | 20,443,903 | 20,443,903 |
% Ownership | 54.50% | 54.50% |
Gulfport | ||
Business Acquisition [Line Items] | ||
Share Count (in shares) | 9,073,750 | 9,073,750 |
% Ownership | 24.20% | 24.20% |
Rhino | ||
Business Acquisition [Line Items] | ||
Share Count (in shares) | 232,347 | 232,347 |
% Ownership | 0.60% | 0.60% |
Outstanding shares owned by related parties | ||
Business Acquisition [Line Items] | ||
Share Count (in shares) | 29,750,000 | 29,750,000 |
% Ownership | 79.30% | 79.30% |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) CAD in Millions | Mar. 31, 2017CAD |
Accounting Policies [Abstract] | |
Cash | CAD 5.7 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, Period Start | $ 5,312,466 | $ 3,947,432 | $ 3,947,432 |
Additions charged to expense | (40,446) | $ 23,543 | 1,968,001 |
Deductions for uncollectible receivables written off | (602,967) | ||
Balance, Period End | $ 5,272,020 | $ 5,312,466 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Amortization of coil tubing strings | $ 492,409 | $ 551,300 |
Coil Tubing Strings | ||
Property, Plant and Equipment [Line Items] | ||
Inventory useful life (no longer than) | 12 months |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Amortizable Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, impairment loss | $ 0 | $ 0 |
Impairment of intangible assets | $ 0 | $ 0 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from insurance settlement, operating activities | $ 918,963 | |
Accounts receivable, net | 20,602,962 | $ 24,973,332 |
Unbilled Revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 2,732,993 | 2,756,150 |
Accounts receivable, related parties | $ 10,506,958 | $ 11,466,592 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accounting Policies [Abstract] | ||
Effective tax rate | 38.70% | |
Unrecognized tax benefits | $ 0 | $ 0 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Third-Party Customer | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35.00% | ||
Related Party Customer | Trade Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 57.00% | 58.00% | |
One Related Party Customer | Trade Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 52.00% | 53.00% | |
One Related Party Customer | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 59.00% | 7.00% | |
Second Third-Party Customer | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Supplies | $ 3,638,587 | $ 4,020,670 |
Raw materials | 149,455 | 75,971 |
Work in process | 0 | 205,450 |
Finished goods | 1,134,585 | 52,997 |
Total inventory | $ 4,922,627 | $ 4,355,088 |
Property, Plant and Equipment45
Property, Plant and Equipment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 394,450,876 | $ 387,818,443 | |
Deposits on equipment and equipment in process of assembly | 39,144,915 | 8,701,725 | |
Property, plant and equipment, gross | 433,595,791 | 396,520,168 | |
Less: accumulated depreciation | 189,574,094 | 175,272,940 | |
Property, plant and equipment, net | 244,021,697 | 221,247,228 | |
Depreciation | 14,626,027 | $ 15,145,841 | |
Proceeds from disposal of property and equipment | 369,258 | 34,863 | |
Loss (gain) on disposal of property and equipment | 79,408 | 21,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | 2,010,555 | 2,010,555 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 3,640,976 | 3,640,976 | |
Useful Life | 15 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 42,461,037 | 42,191,745 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 15 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 20 years | ||
Drilling rigs and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 139,101,541 | 138,526,519 | |
Proceeds from disposal of property and equipment | 347,844 | $ 0 | |
Loss (gain) on disposal of property and equipment | $ 242,723 | ||
Drilling rigs and related equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 3 years | ||
Drilling rigs and related equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 15 years | ||
Pressure pumping equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 101,580,322 | 96,500,592 | |
Pressure pumping equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 3 years | ||
Pressure pumping equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 5 years | ||
Coil tubing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 28,006,153 | 28,019,217 | |
Coil tubing equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 4 years | ||
Coil tubing equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 10 years | ||
Other machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 36,171,379 | 35,548,357 | |
Other machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 7 years | ||
Other machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 20 years | ||
Vehicles, trucks and trailers | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 30,041,893 | 29,964,148 | |
Vehicles, trucks and trailers | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 5 years | ||
Vehicles, trucks and trailers | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 10 years | ||
Other property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 11,437,020 | $ 11,416,334 | |
Other property and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 3 years | ||
Other property and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 12 years |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Definite Lived Intangible Assets (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 19,299,079 | $ 21,566,829 | $ 28,370,079 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 33,605,000 | 33,605,000 | |
Less: accumulated amortization | 19,745,228 | 17,655,228 | |
Intangible assets, net | 13,859,772 | 15,949,772 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 7,110,000 | 7,110,000 | |
Less: accumulated amortization | $ 1,670,693 | $ 1,492,943 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 2,267,750 | $ 2,267,750 | |
Goodwill | $ 86,043,148 | $ 86,043,148 | $ 86,043,148 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 3 years 1 month 7 days | ||
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Acquired finite-lived intangible assets, weighted average useful life | 7 years 7 months 24 days | ||
Minimum | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 4 years | ||
Maximum | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Aggregated Expected Amortization Expense (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remainder of 2017 | $ 6,803,254 | ||
2,018 | 8,224,005 | ||
2,019 | 738,504 | ||
2,020 | 738,504 | ||
2,021 | 732,752 | ||
Thereafter | 2,062,060 | ||
Intangible assets, net | $ 19,299,079 | $ 21,566,829 | $ 28,370,079 |
Accrued Expenses and Other Cu49
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued compensation, benefits and related taxes | $ 2,702,648 | $ 2,368,143 |
Financed insurance premiums | 3,022,422 | 3,293,859 |
State and local taxes payable | 319,868 | 319,597 |
Insurance reserves | 1,173,705 | 971,351 |
Other | 1,607,234 | 1,444,018 |
Total | $ 8,825,877 | $ 8,396,968 |
Accrued Expenses and Other Cu50
Accrued Expenses and Other Current Liabilities - Narrative (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Minimum | |
Supplementary Insurance Information, by Segment [Line Items] | |
Financed insurance premium interest rate | 1.79% |
Maximum | |
Supplementary Insurance Information, by Segment [Line Items] | |
Financed insurance premium interest rate | 5.00% |
Debt (Details)
Debt (Details) - Revolving Credit Facility | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 25, 2014USD ($) | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 170,000,000 | ||
Remaining borrowing capacity | $ 144,149,393 | $ 146,181,002 | |
Maximum leverage ratio | 4 | ||
Debt covenant, minimum availability required | $ 10,000,000 | ||
London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Increments of debt that can be converted | $ 500,000 | ||
Maximum | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Interest coverage rate | 3 | ||
Minimum | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
U.S. deferred income tax benefit | $ (3,685,381) | $ 0 |
Foreign current income tax expense | 585,467 | 894,360 |
Foreign deferred income tax benefit | (6,151) | 0 |
Provision (benefit) for income taxes | $ (3,106,065) | $ 894,360 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Reconciliation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (8,042,579) | $ (20,236,074) |
Statutory income tax rate | 35.00% | 35.00% |
Expected income tax benefit | $ (2,814,903) | $ (7,082,626) |
Non-taxable entity | 0 | 8,260,791 |
Other permanent differences | 14,063 | 6,793 |
State tax benefit | (452,372) | (2,055) |
Foreign tax credit | (698,289) | 0 |
Foreign earnings not in book income | 1,046,248 | 0 |
Foreign income tax rate differential | (174,511) | (270,813) |
Other | (26,301) | (17,730) |
Provision (benefit) for income taxes | $ (3,106,065) | $ 894,360 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 1,891,392 | $ 1,892,761 |
Net operating loss carryforward | 2,280,696 | 0 |
Deferred stock compensation | 1,697,536 | 1,686,671 |
Accrued liabilities | 601,449 | 746,132 |
Other | 1,765,362 | 1,785,999 |
Deferred tax assets | 8,236,435 | 6,111,563 |
Deferred tax liabilities: | ||
Property and equipment | (40,901,822) | (42,525,793) |
Intangible assets | (6,890,355) | (7,662,590) |
Unrepatriated foreign earnings | (4,244,437) | (3,451,110) |
Other | (80,833) | (142,859) |
Deferred tax liabilities | (52,117,447) | (53,782,352) |
Net deferred tax liability | (43,881,012) | (47,670,789) |
Reflected in accompanying balance sheet as: | ||
Deferred income taxes | $ (43,881,012) | $ (47,670,789) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Oct. 12, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic loss per share: | ||||||
Net loss | $ (4,936,514) | $ (56,322,878) | $ (21,130,434) | $ (32,085,117) | $ (21,130,434) | |
Weighted average common shares outstanding (in shares) | 37,500,000 | 30,000,000 | 30,000,000 | |||
Basic loss per share (in dollars per share) | $ (0.13) | $ (0.70) | ||||
Diluted loss per share: | ||||||
Weighted average common shares, including dilutive effect (in shares) | 37,500,000 | 30,000,000 | ||||
Diluted loss per share (in dollars per share) | $ (0.13) | $ (0.70) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 19, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 |
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common units outstanding (in shares) | 30,000,000 | ||||
Common units, converted | 30,000,000 | ||||
Weighted average common shares outstanding (in shares) | 37,500,000 | 30,000,000 | 30,000,000 | ||
IPO | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares issued (in shares) | 7,750,000 | ||||
Sale of stock, price per share (in dollars per share) | $ 15 | ||||
Proceeds from issuance initial public offering | $ 103.1 | ||||
Over-Allotment Option | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares issued (in shares) | 7,500,000 |
Earnings Per Share - Pro Forma
Earnings Per Share - Pro Forma Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Oct. 12, 2016 | Dec. 31, 2016 | |
Pro Forma C Corporation Data (unaudited): | |||||
Net loss | $ (4,936,514) | $ (56,322,878) | $ (21,130,434) | $ (32,085,117) | $ (21,130,434) |
Basic loss per share: | |||||
Weighted average common shares outstanding (in USD per share) | 37,500,000 | ||||
Basic loss per share (in USD per share) | $ (0.54) | ||||
Diluted loss per share: | |||||
Weighted average common shares, including dilutive effect (in shares) | 37,500,000 | ||||
Diluted loss per share (in USD per share) | $ (0.54) | ||||
Pro Forma | |||||
Pro Forma C Corporation Data (unaudited): | |||||
Net loss | $ (20,185,850) | ||||
Pro forma benefit for income taxes | $ (944,584) |
Equity Based Compensation (Deta
Equity Based Compensation (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation expense | $ 0 |
Specified Member Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of the award as of the modification dates or grant date | 5,618,552 |
Non-Employees Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of the award as of the modification dates or grant date | $ 48,061,841 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Unvested Restricted Shares | |
Unvested shares as of January 1, 2017 (in shares) | shares | 282,780 |
Granted (in shares) | shares | 379,444 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (4,444) |
Unvested shares as of March 31, 2017 (in shares) | shares | 657,780 |
Weighted Average Grant-Date Fair Value | |
Unvested shares as of January 1, 2017 (in dollars per share) | $ / shares | $ 14.98 |
Granted (in dollars per share) | $ / shares | 21.13 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 15 |
Unvested shares as of March 31, 2017 (in dollars per share) | $ / shares | $ 18.53 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Oct. 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 4,500,000 | ||
Compensation expense | $ 0 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of the award as of the modification dates or grant date | 11,324,218 | ||
Unrecognized compensation cost | 33 months | ||
Compensation expense | $ 569,831 |
Related Party Transactions - Re
Related Party Transactions - Revenues and Accounts Receivable (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 44,708,722 | $ 5,531,569 | |
Receivables from related parties | 33,141,299 | $ 28,059,565 | |
Other Relationships | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | 0 | |
Receivables from related parties | 2,503,069 | 715,341 | |
Pressure Pumping and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 31,745,950 | 0 | |
Receivables from related parties | 20,470,158 | 19,094,509 | |
Muskie and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 11,540,419 | 1,918,078 | |
Receivables from related parties | 8,109,288 | 5,373,007 | |
Muskie and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 35,732 | 2,456,676 | |
Receivables from related parties | 20,193 | 70,470 | |
Panther Drilling and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 1,042,377 | 451,875 | |
Receivables from related parties | 1,732,263 | 1,434,036 | |
Lodging and Grizzly | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 264 | 555 | |
Receivables from related parties | 263 | 274 | |
Bison Drilling and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | 371,873 | |
Receivables from related parties | 0 | 0 | |
Panther Drilling and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | 170,170 | |
Receivables from related parties | 0 | 0 | |
Bison Trucking and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | 130,000 | |
Receivables from related parties | 0 | 0 | |
White Wing and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | 20,431 | |
Receivables from related parties | 0 | 0 | |
Energy Services and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 123,645 | 0 | |
Receivables from related parties | 64,646 | 108,386 | |
Barracuda and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 170,914 | 10,261 | |
Receivables from related parties | 58,227 | 199,413 | |
MRI and Cementing | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 4,790 | 0 | |
Receivables from related parties | 5,610 | 820 | |
White Wing and Diamondback | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 0 | 1,650 | |
Receivables from related parties | 0 | 0 | |
Coil Tubing and SR Energy | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 29,250 | 0 | |
Receivables from related parties | 47,850 | 0 | |
Pressure Pumping and Cementing | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 9,970 | 0 | |
Receivables from related parties | 26,593 | 950,678 | |
Silverback and SR Energy | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 196 | 0 | |
Receivables from related parties | 17,124 | 12,181 | |
Panther and DBDHT | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 5,215 | $ 0 | |
Receivables from related parties | $ 86,015 | $ 100,450 | |
Wexford | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percent | 75.00% | ||
Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Ownership percent | 25.00% |
Related Party Transactions - Co
Related Party Transactions - Cost of Revenues of Accounts Payable (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | $ 494,345 | $ 2,835,402 | |
Payables to related parties | 4,921,129 | $ 2,434,031 | |
Selling, general and administrative - related parties | 377,717 | 144,869 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 8,048,725 | 3,634,947 | |
Payables to related parties | 4,921,129 | 2,434,031 | |
Selling, general and administrative - related parties | 377,717 | 144,869 | |
Pressure Pumping and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 0 | 2,665,992 | |
Muskie and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 7,554,380 | 799,545 | |
Barracuda and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 64,428 | 52,364 | |
Panther and DBDHT | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 127,720 | 46,554 | |
Bison Trucking and Diamondback | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 38,132 | 41,627 | |
Energy Services and Elk City Yard | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 26,700 | 26,700 | |
Barracuda and SR Energy | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 14,983 | 2,165 | |
Stingray Entities and SR Energy | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 222,382 | 0 | |
Lodging and Dunvegan | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 0 | 0 | |
Selling, general and administrative - related parties | 2,551 | 0 | |
Bison Trucking and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Services cost of revenue - related parties | 0 | 0 | |
Consolidated and Everest | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative - related parties | 55,367 | 72,324 | |
Consolidated and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative - related parties | 62,550 | 37,840 | |
Consolidated and Wexford | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative - related parties | 227,739 | 34,705 | |
Mammoth and Orange Leaf | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative - related parties | 29,510 | $ 0 | |
ACCOUNTS PAYABLE | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 4,794,380 | 2,408,166 | |
ACCOUNTS PAYABLE | Pressure Pumping and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 0 | 0 | |
ACCOUNTS PAYABLE | Muskie and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 4,056,830 | 2,119,084 | |
ACCOUNTS PAYABLE | Barracuda and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 203,165 | 111,738 | |
ACCOUNTS PAYABLE | Panther and DBDHT | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 115,661 | 0 | |
ACCOUNTS PAYABLE | Bison Trucking and Diamondback | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 10,187 | 0 | |
ACCOUNTS PAYABLE | Energy Services and Elk City Yard | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 0 | 0 | |
ACCOUNTS PAYABLE | Barracuda and SR Energy | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 0 | 6,279 | |
ACCOUNTS PAYABLE | Stingray Entities and SR Energy | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 408,458 | 167,866 | |
ACCOUNTS PAYABLE | Lodging and Dunvegan | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 0 | 3,199 | |
ACCOUNTS PAYABLE | Bison Trucking and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 79 | 0 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 126,749 | 25,865 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Lodging and Dunvegan | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 886 | 0 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Consolidated and Everest | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 16,798 | 12,668 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Consolidated and Taylor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 0 | 0 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Consolidated and Wexford | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | 109,065 | 13,197 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Mammoth and Orange Leaf | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables to related parties | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease payments (Details) | Mar. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2017 | $ 4,344,826 |
2,018 | 5,400,861 |
2,019 | 4,980,266 |
2,020 | 3,516,479 |
2,021 | 2,280,974 |
Thereafter | 4,244,036 |
Total | $ 24,767,442 |
Commitments and Contingencies64
Commitments and Contingencies - Narrative (Details) | Mar. 23, 2017USD ($) | May 31, 2017USD ($)shares | Jun. 30, 2016USD ($)option | Mar. 31, 2017USD ($)T$ / shares | Mar. 31, 2016USD ($) | Mar. 20, 2017$ / shares | Dec. 31, 2016USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Operating leases, rent expense | $ 910,119 | $ 960,918 | |||||
Operating leases, future minimum payments due | 24,767,442 | ||||||
Long-term purchase commitment, amount | 21,000,000 | ||||||
Insurance deductible | 250,000 | $ 250,000 | |||||
Insurance aggregate stop loss | 2,000,000 | 2,000,000 | |||||
Insurance reserves | 1,173,705 | $ 971,351 | |||||
Insurance stop loss per-claim basis | 150,000 | ||||||
Aggregate stop loss per calendar year | $ 5,799,991 | ||||||
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Defined contribution plan, maximum annual contributions per employee, percent (up to) | 92.00% | ||||||
Defined contribution plan, employer matching contribution, percent of match (up to) | 4.00% | ||||||
Defined contribution plan, employer discretionary contribution amount | $ 0 | $ 67,171 | |||||
Sand | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual commitment to purchase tons of sand | T | 200,000 | ||||||
Deposit paid | $ 600,000 | ||||||
Number of additional unilateral options to extent the contract | option | 1 | ||||||
Term of extension option | 1 year | ||||||
Remaining purchase commitment | $ 2,110,848 | ||||||
Standby Letters of Credit | Lease Payment Letters of Credit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Letters of credit outstanding | 454,560 | ||||||
Letter of Credit | Insurance Programs Letters of Credit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Letters of credit outstanding | $ 1,636,000 | $ 1,285,000 | |||||
Chieftain Sand And Proppant, LLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price | $ 35,300,000 | ||||||
Wexford, Gulfport and Rhino | Sturgeon Acquisitions LLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price (in dollars per share) | $ / shares | $ 19.06 | ||||||
Scenario, Forecast | Wexford, Gulfport and Rhino | Sturgeon Acquisitions LLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock to be issued upon acquisition (in shares) | shares | 7,000,000 | ||||||
Purchase price | $ 133,400,000 | ||||||
Affiliated Entity | Caliber Investment Group LLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Leases, term of contract | 5 years | ||||||
Operating leases, future minimum payments due | $ 2,600,000 |
Operating Segments (Details)
Operating Segments (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Oct. 12, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2016segment | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 5 | 4 | ||||
Revenue from external customers | $ 29,707,091 | $ 28,971,935 | ||||
Revenue from related parties | 44,708,722 | 5,531,569 | ||||
Cost of revenue | 58,886,426 | 32,897,220 | ||||
Selling, general and administrative expenses | 6,221,810 | 3,255,066 | ||||
Earnings before interest, other expense taxes and depreciation and amortization | 9,307,577 | (1,648,782) | ||||
Other (income) expense | 170,041 | (18,194) | ||||
Interest expense | 286,338 | 1,191,895 | ||||
Depreciation and amortization | 16,893,777 | 17,413,591 | ||||
Income tax provision | (3,106,065) | 894,360 | ||||
Net loss | (4,936,514) | $ (56,322,878) | (21,130,434) | $ (32,085,117) | $ (21,130,434) | |
Total expenditures for property, plant and equipment | 30,935,179 | 534,525 | ||||
Goodwill | 86,043,148 | 86,043,148 | 86,043,148 | 86,043,148 | ||
Intangible assets, net | 19,299,079 | 21,566,829 | 28,370,079 | 21,566,829 | ||
Total Assets | 434,502,964 | $ 420,553,835 | 432,624,678 | $ 420,553,835 | ||
Pressure Pumping Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue from external customers | 8,691,647 | 12,294,529 | ||||
Revenue from related parties | 31,931,820 | 10,261 | ||||
Cost of revenue | 28,771,868 | 14,260,507 | ||||
Selling, general and administrative expenses | 1,774,926 | 526,171 | ||||
Earnings before interest, other expense taxes and depreciation and amortization | 10,076,673 | (2,481,888) | ||||
Other (income) expense | 2,631 | (19,208) | ||||
Interest expense | 128,444 | 237,055 | ||||
Depreciation and amortization | 9,157,893 | 8,955,217 | ||||
Income tax provision | 0 | 0 | ||||
Net loss | 787,705 | (11,654,952) | ||||
Total expenditures for property, plant and equipment | 28,665,309 | 30,695 | ||||
Goodwill | 86,043,148 | 86,043,148 | ||||
Intangible assets, net | 19,174,183 | 28,217,683 | ||||
Total Assets | 228,689,765 | 198,457,528 | ||||
Well Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue from external customers | 3,190,132 | 2,698,592 | ||||
Revenue from related parties | 152,895 | 0 | ||||
Cost of revenue | 3,799,776 | 3,927,709 | ||||
Selling, general and administrative expenses | 972,405 | 573,296 | ||||
Earnings before interest, other expense taxes and depreciation and amortization | (1,429,154) | (1,802,413) | ||||
Other (income) expense | 1,182 | 9,400 | ||||
Interest expense | (105,902) | 98,319 | ||||
Depreciation and amortization | 1,208,241 | 1,397,507 | ||||
Income tax provision | (3,691,532) | 0 | ||||
Net loss | 1,158,857 | (3,307,639) | ||||
Total expenditures for property, plant and equipment | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 124,896 | 152,396 | ||||
Total Assets | 47,734,021 | 60,191,891 | ||||
Sand | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue from external customers | 2,615,209 | 735,453 | ||||
Revenue from related parties | 11,576,151 | 4,374,754 | ||||
Cost of revenue | 12,931,277 | 3,958,177 | ||||
Selling, general and administrative expenses | 1,542,565 | 242,463 | ||||
Earnings before interest, other expense taxes and depreciation and amortization | (282,482) | 909,567 | ||||
Other (income) expense | 102 | (2) | ||||
Interest expense | 21,793 | 0 | ||||
Depreciation and amortization | 1,019,491 | 1,031,036 | ||||
Income tax provision | 0 | 0 | ||||
Net loss | (1,323,868) | (121,467) | ||||
Total expenditures for property, plant and equipment | 0 | 92,028 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Total Assets | 29,421,704 | 28,112,951 | ||||
Drilling | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue from external customers | 9,703,397 | 5,257,738 | ||||
Revenue from related parties | 1,047,592 | 1,145,999 | ||||
Cost of revenue | 10,953,423 | 7,208,657 | ||||
Selling, general and administrative expenses | 1,295,024 | 1,302,473 | ||||
Earnings before interest, other expense taxes and depreciation and amortization | (1,497,458) | (2,107,393) | ||||
Other (income) expense | 163,785 | (10,074) | ||||
Interest expense | 217,182 | 852,574 | ||||
Depreciation and amortization | 4,968,628 | 5,507,381 | ||||
Income tax provision | 0 | 0 | ||||
Net loss | (6,847,053) | (8,457,274) | ||||
Total expenditures for property, plant and equipment | 2,269,277 | 264,171 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Total Assets | 97,838,858 | 110,148,572 | ||||
Other Energy Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue from external customers | 5,506,706 | 7,985,623 | ||||
Revenue from related parties | 264 | 555 | ||||
Cost of revenue | 2,430,082 | 3,542,170 | ||||
Selling, general and administrative expenses | 636,890 | 610,663 | ||||
Earnings before interest, other expense taxes and depreciation and amortization | 2,439,998 | 3,833,345 | ||||
Other (income) expense | 2,341 | 1,690 | ||||
Interest expense | 24,821 | 3,947 | ||||
Depreciation and amortization | 539,524 | 522,450 | ||||
Income tax provision | 585,467 | 894,360 | ||||
Net loss | 1,287,845 | 2,410,898 | ||||
Total expenditures for property, plant and equipment | 593 | 147,631 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Total Assets | $ 30,818,616 | $ 35,713,736 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 10, 2017 | Apr. 21, 2017 | May 15, 2017 | Mar. 31, 2017 |
Subsequent Event [Line Items] | ||||
Operating leases, future minimum payments due | $ 24,767,442 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Operating leases, future minimum payments due | $ 500,000 | |||
Payments to acquire equipment | $ 4,000,000 | |||
Payments to acquire equipment | $ 3,800,000 |
Uncategorized Items - tusk-2017
Label | Element | Value |
Limited Partner [Member] | ||
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | $ (32,085,117) |
Retained Earnings [Member] | ||
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | $ (56,322,878) |