Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 44,502,223 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | |||
CURRENT ASSETS | |||||
Cash and cash equivalents | [2] | $ 8,549,290 | [1] | $ 29,238,618 | [3] |
Accounts receivable, net | 30,414,421 | [1] | 21,169,579 | [3] | |
Receivables from related parties | 45,686,985 | [1] | 27,589,283 | [3] | |
Inventories | 10,316,700 | [1] | 6,124,201 | [3] | |
Prepaid expenses | 3,647,227 | [1] | 4,425,872 | [3] | |
Other current assets | 341,555 | [1] | 391,599 | [3] | |
Total current assets | 98,956,178 | [1] | 88,939,152 | [3] | |
Property, plant and equipment, net | 327,080,164 | [1] | 242,119,663 | [3] | |
Sand reserves | 75,892,824 | [1] | 55,367,295 | [3] | |
Intangible assets, net | 20,604,329 | 21,566,829 | |||
Goodwill | 99,562,761 | [1] | 88,726,875 | [3] | |
Other non-current assets | 4,821,319 | [1] | 5,642,661 | [3] | |
Total assets | 626,917,575 | [1] | 502,362,475 | [3] | |
CURRENT LIABILITIES | |||||
Accounts payable | 53,864,660 | [1] | 20,469,542 | [3] | |
Payables to related parties | 120,183 | [1] | 203,209 | [3] | |
Accrued expenses and other current liabilities | 10,190,094 | [1] | 8,546,198 | [3] | |
Income taxes payable | 0 | [1] | 28,156 | [3] | |
Total current liabilities | 64,174,937 | [1] | 29,247,105 | [3] | |
Long-term debt | 65,000,000 | [1] | 0 | [3] | |
Deferred income taxes | 52,307,148 | [1] | 47,670,789 | [3] | |
Asset retirement obligation | 2,006,294 | [1] | 259,804 | [3] | |
Other liabilities | 3,018,937 | [1] | 2,404,422 | [3] | |
Total liabilities | 186,507,316 | [1] | 79,582,120 | [3] | |
COMMITMENTS AND CONTINGENCIES (Note 14) | [1] | [3] | |||
EQUITY | |||||
Common stock | 445,000 | [1] | 375,000 | [3] | |
Additional paid in capital | 505,245,742 | [1] | 400,205,921 | [3] | |
Member's equity | 0 | [1] | 81,738,675 | [3] | |
Accumulated deficit | (62,473,672) | [1] | (56,322,878) | [3] | |
Accumulated other comprehensive loss | (2,806,811) | [1] | (3,216,363) | [3] | |
Total equity | 440,410,259 | [1] | 422,780,355 | [3] | |
Total liabilities and equity | 626,917,575 | [1] | 502,362,475 | [3] | |
Trade names | |||||
CURRENT ASSETS | |||||
Intangible assets, net | 6,641,557 | [1] | 5,617,057 | [3] | |
Customer relationships | |||||
CURRENT ASSETS | |||||
Intangible assets, net | $ 13,962,772 | [1] | $ 15,949,772 | [3] | |
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||
[2] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||
[3] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Jun. 30, 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) | 44,500,000 | 37,500,000 |
Common stock, shares, outstanding (in shares) | 44,500,000 | 37,500,000 |
CONDENSED CONSOLDIATED STATEMEN
CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | [1] | Jun. 30, 2016 | Jun. 30, 2017 | [1] | Jun. 30, 2016 | ||||
REVENUE | |||||||||
Services revenue | $ 29,659,151 | $ 18,650,612 | [2] | $ 56,751,033 | $ 46,887,094 | [2] | |||
Services revenue - related parties | 44,602,759 | 39,504,058 | [2] | 77,564,416 | 40,650,612 | [2] | |||
Product revenue | 10,395,025 | 1,694,698 | [2] | 13,767,088 | 2,976,443 | [2] | |||
Product revenue - related parties | 13,605,124 | 9,313,266 | [2] | 25,145,543 | 11,231,344 | [2] | |||
Total revenue | 98,262,059 | 69,162,634 | [2] | 173,228,080 | 101,745,493 | [2] | |||
COST AND EXPENSES | |||||||||
Services cost of revenue | [3] | 57,103,703 | 40,171,539 | [2] | 102,564,507 | 66,264,915 | [2] | ||
COST OF REVENUE | [3] | 262,192 | 80,491 | [2] | 692,109 | 197,537 | [2] | ||
Product cost of revenue | [3] | 19,974,059 | 10,251,613 | [2] | 32,581,324 | 16,432,367 | [2] | ||
Selling, general and administrative | 7,393,076 | 4,989,040 | [2] | 13,805,620 | 8,494,669 | [2] | |||
Selling, general and administrative - related parties | 306,630 | 217,098 | [2] | 630,884 | 325,343 | [2] | |||
Depreciation, depletion, accretion and amortization | 19,893,399 | 18,810,615 | [2] | 37,130,650 | 36,561,687 | [2] | |||
Impairment of long-lived assets | 0 | 1,870,885 | [2] | 0 | [4] | 1,870,885 | [2],[5] | ||
Total cost and expenses | 104,933,059 | 76,391,281 | [2] | 187,405,094 | 130,147,403 | [2] | |||
Operating loss | (6,671,000) | (7,228,647) | [2] | (14,177,014) | (28,401,910) | [2] | |||
OTHER (EXPENSE) INCOME | |||||||||
Interest expense | (1,111,608) | (1,012,031) | [2] | (1,508,792) | (2,308,387) | [2] | |||
Bargain purchase gain, net of tax | 4,011,512 | 0 | [2] | 4,011,512 | [4] | 0 | [2],[5] | ||
Other, net | (202,496) | 626,716 | [2] | (386,642) | 625,726 | [2] | |||
Total other income (expense) | 2,697,408 | (385,315) | [2] | 2,116,078 | (1,682,661) | [2] | |||
Loss before income taxes | (3,973,592) | (7,613,962) | [2] | (12,060,936) | (30,084,571) | [2] | |||
(Benefit) provision for income taxes | (2,804,077) | 789,375 | [2] | (5,910,142) | 1,683,735 | [2] | |||
Net loss | (1,169,515) | (8,403,337) | [2] | (6,150,794) | [4] | (31,768,306) | [2],[5] | ||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||
Foreign currency translation adjustment | [6] | 181,442 | (5,493) | [2] | 409,552 | 1,969,858 | [2] | ||
Comprehensive loss | $ (988,073) | $ (8,408,830) | [2] | $ (5,741,242) | $ (29,798,448) | [2] | |||
Net loss per share (basic and diluted) (Note 10) (in dollars per share) | $ (0.03) | $ (0.28) | [2] | $ (0.16) | $ (1.06) | [2] | |||
Weighted average number of shares outstanding (Note 10) (in shares) | 39,500,000 | 30,000,000 | [2] | 38,505,525 | 30,000,000 | [2] | |||
Pro Forma C Corporation Data: | |||||||||
Net loss, as reported | $ (3,973,592) | $ (7,613,962) | [2] | $ (12,060,936) | $ (30,084,571) | [2] | |||
(Benefit) provision for income taxes | (2,804,077) | 789,375 | [2] | (5,910,142) | 1,683,735 | [2] | |||
Net loss | $ (1,169,515) | $ (8,403,337) | [2] | $ (6,150,794) | [4] | $ (31,768,306) | [2],[5] | ||
Basic and Diluted (Note 10) (in USD per share) | $ (0.14) | [2] | $ (0.71) | [2] | |||||
Weighted average pro forma shares outstanding—basic (Note 10) (in shares) | 37,500,000 | [2] | 37,500,000 | [2] | |||||
Weighted average pro forma shares outstanding—diluted (Note 10) (in shares) | [2] | 37,500,000 | 37,500,000 | ||||||
Net of tax | $ 434,169 | $ 0 | [2] | $ 454,312 | $ 0 | [2] | |||
Pro Forma | |||||||||
OTHER (EXPENSE) INCOME | |||||||||
Loss before income taxes | (7,613,962) | [2] | (30,084,571) | [2] | |||||
(Benefit) provision for income taxes | (2,342,467) | [2] | (3,287,051) | [2] | |||||
Net loss | (5,271,495) | [2] | (26,797,520) | [2] | |||||
Pro Forma C Corporation Data: | |||||||||
Net loss, as reported | (7,613,962) | [2] | (30,084,571) | [2] | |||||
(Benefit) provision for income taxes | (2,342,467) | [2] | (3,287,051) | [2] | |||||
Net loss | $ (5,271,495) | [2] | $ (26,797,520) | [2] | |||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | ||||||||
[3] | Exclusive of depreciation, depletion, accretion and amortization | ||||||||
[4] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||||||
[5] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | ||||||||
[6] | Net of tax of 434,169 and 0 for Three Months Ended June 30 2017 and 2016, respectively, and 454,312 and 0 for Six Months Ended June 20 2017 and 2016 respectively. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) | Total | Common Partners | Members' Equity | Common Stock | Accumulated Deficit | Additional Paid-in Capital | AOCL | Stingray Entities | Stingray EntitiesCommon Stock | Stingray EntitiesAdditional Paid-in Capital | Sturgeon Acquisitions LLC | Sturgeon Acquisitions LLCMembers' Equity | Sturgeon Acquisitions LLCCommon Stock | Sturgeon Acquisitions LLCAccumulated Deficit | Sturgeon Acquisitions LLCAdditional Paid-in Capital | |||
Common stock, shares, outstanding beginning balance(in shares) at Dec. 31, 2015 | [1] | 0 | ||||||||||||||||
Beginning balance at Dec. 31, 2015 | [1] | $ 413,946,770 | $ 0 | $ 0 | $ 0 | $ (5,926,968) | ||||||||||||
Partners' Capital at Dec. 31, 2015 | [1] | $ 329,090,230 | $ 90,783,508 | |||||||||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (4,044,833) | (4,044,833) | ||||||||||||||||
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 | 102,699,661 | |||||||||||||||
Stock-based compensation | 519,830 | 519,830 | ||||||||||||||||
Distributions | (5,000,000) | (5,000,000) | ||||||||||||||||
Other comprehensive income | $ 2,710,605 | 2,710,605 | ||||||||||||||||
Common stock, shares, outstanding ending balance (in shares) at Dec. 31, 2016 | 37,500,000 | 37,500,000 | [1] | |||||||||||||||
Ending balance at Dec. 31, 2016 | [1] | $ 422,780,355 | $ 375,000 | (56,322,878) | 400,205,921 | (3,216,363) | ||||||||||||
Partners' Capital at Dec. 31, 2016 | [1] | 0 | 81,738,675 | |||||||||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (6,150,794) | [2],[3] | (6,150,794) | |||||||||||||||
Equity based compensation | 1,619,893 | 1,619,893 | ||||||||||||||||
Acquisition of company (in shares) | 1,392,548 | 5,607,452 | ||||||||||||||||
Acquisition of company | $ 25,762,138 | $ 13,925 | $ 25,748,213 | $ (4,010,885) | $ (81,738,675) | $ 56,075 | $ 0 | $ 77,671,715 | ||||||||||
Other comprehensive income | $ 409,552 | 409,552 | ||||||||||||||||
Common stock, shares, outstanding ending balance (in shares) at Jun. 30, 2017 | 44,500,000 | 44,500,000 | ||||||||||||||||
Ending balance at Jun. 30, 2017 | $ 440,410,259 | $ 445,000 | $ (62,473,672) | $ 505,245,742 | $ (2,806,811) | |||||||||||||
Partners' Capital at Jun. 30, 2017 | $ 0 | $ 0 | ||||||||||||||||
[1] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | |||||||||||||||||
[2] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||||||||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | [2] | Jun. 30, 2016 | [4] | |
Cash flows from operating activities | ||||
Net loss | $ (6,150,794) | [1] | $ (31,768,306) | [3] |
Adjustments to reconcile net loss to cash provided by operating activities: | ||||
Equity based compensation | 1,619,893 | 0 | ||
Depreciation, depletion, accretion and amortization | 37,130,650 | 36,561,687 | ||
Amortization of coil tubing strings | 1,045,233 | 962,302 | ||
Amortization of debt origination costs | 199,403 | 199,403 | ||
Bad debt expense | 18,980 | 1,764,218 | ||
(Gain) loss on disposal of property and equipment | 127,153 | (710,046) | ||
Gain on bargain purchase | (4,011,512) | [1] | 0 | [3] |
Impairment of long-lived assets | 0 | [1] | 1,870,885 | [3] |
Deferred income taxes | (6,529,406) | 41,292 | ||
Changes in assets and liabilities, net of acquisitions of businesses: | ||||
Accounts receivable, net | (4,792,555) | (2,562,425) | ||
Receivables from related parties | (12,995,194) | (7,803,381) | ||
Inventories | (4,931,651) | 30,615 | ||
Prepaid expenses and other assets | 1,528,346 | (1,092,731) | ||
Accounts payable | 20,557,001 | 8,008,632 | ||
Payables to related parties | (83,079) | (199,694) | ||
Accrued expenses and other liabilities | 1,300,687 | 5,659,053 | ||
Income taxes payable | (28,156) | (15,387) | ||
Net cash provided by operating activities | 24,004,999 | 10,946,117 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (66,575,719) | (2,174,209) | ||
Business acquisitions | (39,570,187) | 0 | ||
Proceeds from disposal of property and equipment | 780,932 | 3,165,519 | ||
Business combination cash acquired (Note 3) | 2,671,558 | 0 | ||
Net cash (used in) provided by investing activities | (102,693,416) | 991,310 | ||
Cash flows from financing activities: | ||||
Borrowings from lines of credit | 79,150,000 | 11,150,000 | ||
Repayments of lines of credit | (14,150,000) | (25,752,516) | ||
Repayment of Stingray acquisition long-term debt | (7,073,854) | 0 | ||
Net cash provided by (used in) financing activities | 57,926,146 | (14,602,516) | ||
Effect of foreign exchange rate on cash | 72,943 | 54,163 | ||
Net decrease in cash and cash equivalents | (20,689,328) | (2,610,926) | ||
Cash and cash equivalents at beginning of period | 29,238,618 | [5] | 4,038,899 | |
Cash and cash equivalents at end of period | 8,549,290 | [6] | 1,427,973 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 1,085,851 | 2,056,581 | ||
Cash paid for income taxes | 911,700 | 2,035,015 | ||
Supplemental disclosure of non-cash transactions: | ||||
Purchases of property and equipment included in trade accounts payable | 7,835,614 | 414,795 | ||
Acquisition of Sturgeon, Stingray Cementing LLC and Stingray Energy Services LLC and (Note 3) | $ 23,090,580 | $ 0 | ||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||
[2] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||
[3] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | |||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | |||
[5] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | |||
[6] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 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 Company's 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, Gulfport Energy Corporation (“Gulfport”), Rhino Resource Partners LP (“Rhino”) and Mammoth Energy Holdings LLC (“Mammoth Holdings”), an entity controlled by Wexford, 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 ("Cobra Acquisitions"), formed January 9, 2017; Cobra Energy LLC ("Cobra"), formed January 24, 2017; Piranha Proppant LLC ("Piranha"), formed March 28, 2017; Mako Acquisitions LLC, (“Mako”) formed on March 28, 2017; Higher Power Electrical LLC ("Higher Power"), acquired April 21, 2017; Stingray Energy Services LLC ("SR Energy"), acquired June 5, 2017; Stingray Cementing LLC ("Cementing"), acquired June 5, 2017; Sturgeon Acquisitions LLC (“Sturgeon”), acquired June 5, 2017; Taylor Frac, LLC (“Taylor Frac”), acquired June 5, 2017; Taylor Real Estate Investments, LLC (“Taylor RE”), acquired June 5, 2017; and South River Road, LLC (“South River”), acquired June 5, 2017. The contribution to the Partnership on November 24, 2014 of all Operating Entities, except Pressure Pumping, Logistics and entities created or acquired 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 the remaining net proceeds for general corporate purposes, which included the acquisition of additional equipment and complementary businesses that enhanced its existing service offerings, broadened its service offerings and expanded its customer relationships. On March 27, 2017, the Company entered into a definitive asset purchase agreement, as amended as of May 24, 2017 (the “Purchase Agreement”), with Chieftain Sand and Proppant, LLC and Chieftain Sand and Proppant Barron, LLC, unrelated third party sellers (the “Chieftain Sellers”), following Mammoth’s successful bid in a bankruptcy court auction for substantially all of the assets of the Sellers (the “Chieftain Acquisition”). The Chieftain Acquisition closed on May 26, 2017 for the purchase price of $36.3 million , including closing adjustments. Mammoth funded the purchase price for the Chieftain Acquisition with cash on hand and borrowings under its revolving credit facility. Refer to Note 3 - Acquisitions for additional disclosure regarding the Chieftain Acquisition. On June 5, 2017, the Company completed the acquisition of (1) Sturgeon, a Delaware limited liability company, which included the acquisition of Sturgeon's wholly-owned subsidiaries Taylor Frac, a Wisconsin limited liability company, Taylor RE, a Wisconsin limited liability company, and South River, a Wisconsin limited liability company, (2) SR Energy, a Delaware limited liability company; and (3) Cementing, a Delaware limited liability company (together with SR Energy, the “Stingray Acquisition”) in exchange for the issuance by Mammoth of an aggregate of 7,000,000 shares of its common stock. Prior to its acquisition of Sturgeon, the Company and Sturgeon were under common control and it is required under accounting principles generally accepted in the Unites States of America ("GAAP") to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Therefore, the Company's historical financial information for all periods included in the accompanying financial statements has been recast to combine Sturgeon LLC with the Company as if the acquisition had been effective since the date Sturgeon commenced operations. Refer to Note 3 - Acquisitions for additional disclosure regarding the acquisition of Sturgeon LLC. At June 30, 2017 and December 31, 2016 , Mammoth Holdings, or its affiliates, Gulfport and Rhino owned the following share of outstanding common stock of Mammoth Inc.: At June 30, 2017 At December 31, 2016 Share Count % Ownership Share Count % Ownership Mammoth Holdings 25,009,319 56.2 % 20,443,903 54.5 % Gulfport 11,171,887 25.1 % 9,073,750 24.2 % Rhino 568,794 1.3 % 232,347 0.6 % Outstanding shares owned by related parties 36,750,000 82.6 % 29,750,000 79.3 % Total outstanding 44,500,000 100.0 % 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, which have historically consisted of remote accommodations for people working in the oil sands located in Northern Alberta, Canada, but recently have been expanded to include energy infrastructure services. 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 | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation The condensed consolidated financial statements are prepared in accordance with 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 Company's sand reserves and their impact on calculating the depletion expense, the allowance for doubtful accounts, reserves for self-insurance, depreciation and amortization of property and equipment, business combination valuations, 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 June 30, 2017 , the Company had $3.1 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 30th 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 year ended December 31, 2016 and the six months ended June 30, 2017 : Balance, January 1, 2016 $ 4,011,882 Additions charged to expense 1,968,001 Deductions for uncollectible receivables written off (602,967 ) Balance, December 31, 2016 5,376,916 Additions charged to expense 18,980 Additions other 178,871 Balance, June 30, 2017 $ 5,574,767 As discussed in Note 1, prolonged declines in pricing can impact the overall health of the oil and natural gas industry. The year ended December 31, 2016 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 adjusted upward. 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 manufactured at the Company’s sand production facilities includes direct excavation costs, processing costs and overhead allocation. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Tonnages are verified periodically by an independent surveyor. Costs are calculated on a per ton basis and are applied to the stockpiles based on the number of tons in the stockpile. Inventory transported for sale at the Company’s terminal facility includes the cost of purchased or manufactured sand, plus transportation related charges. 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 $1,045,233 and $962,302 for the six months ended June 30, 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. Sand reserves are depleted using the units-of-production method over the estimated sand reserves. (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 six months ended June 30, 2017 and 2016 , the Company recognized an impairment loss of $0 and $1,870,885 , respectively, on various fixed assets included in property, plant and equipment, net in the Condensed Consolidated Balance Sheets. (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 six months ended June 30, 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 8) and sales tax receivables. (k) Asset Retirement Obligation Mine reclamation costs, future remediation costs for inactive mines or other contractual site remediation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised. Changes in the asset retirement obligation for the year ended December 31, 2016 and the six months ended June 30, 2017 are set forth below: Balance, January 1, 2016 $ 94,904 Accretion expense 164,900 Balance, December 31, 2016 259,804 Accretion expense 14,409 Additions - Chieftain Acquisition (Note 3) 1,732,081 Balance, June 30, 2017 $ 2,006,294 (l) Business Combinations The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in FASB ASC No. 805, “ Business Combinations ”, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed and any noncontrolling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and noncontrolling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with FASB ASC No. 805, the Company recognizes and measures goodwill, if any, as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired. When the Company acquires a business from an entity under common control, whereby the companies are ultimately controlled by the same party or parties both before and after the transaction, it is treated for accounting purposes in a manner similar to the pooling of interest method of accounting. The assets and liabilities are recorded at the transferring entity’s historical cost instead of reflecting the fair market value of assets and liabilities. (m) 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 six months ended June 30, 2017 and 2016 , no impairment losses were recognized. (n) Fair Value of Financial Instruments The Company's financial instruments consist of cash and cash equivalents, trade receivables, trade payables, amounts receivable, long-term debt and payables 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. The fair value of long-term debt approximates it s carrying value because the cost of borrowing fluctuates based upon market conditions. (o) 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 six months ended June 30, 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. Revenue from energy infrastructure services, a component of the Company's other energy services segment, is recognized as the work progresses based on the days completed or as the contract is completed. These services may be provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis), and the final terms and prices of these contracts are frequently negotiated with the customer. Under unit-based contracts, the utilization of an output-based measurement is appropriate for revenue recognition. Under our cost-plus/hourly and time and materials type contracts, the Company recognizes revenue on an input basis, as labor hours are incurred and services are performed. 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 $3,017,892 and $2,732,993 of unbilled revenue included in accounts receivable, net in the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 , respectively. The Company had $13,662,077 and $10,506,958 of unbilled revenue included in receivables from related parties in the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016 , respectively. (p) Earnings per Share Earnings per share is computed by dividing net loss by the weighted average number of outstanding shares. See Note 10. (q) 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 October 12, 2016 contribution and the IPO was outstanding for the six months ended June 30, 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 10. (r) 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 11. (s) 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 12. (t) 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 36.8% for the six months ended June 30, 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 10. 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 six months ended June 30, 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. (u) 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. (v) Environmental Matters The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Company’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed as incurred. Liabilities are recorded when environmental costs are probable, and the costs can be reasonably estimated. The Company maintains insurance which may cover in whole or in part certain environmental expenditures. As of June 30, 2017 and December 31, 2016 , there were no probable environmental matters. (w) Comprehensive Loss Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive income (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. (x) 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 June 30, 2017 , no third-party customer accounted for 10% of the Company's trade accounts receivable and receivables from related parties balance combined. At June 30, 2017 and December 31, 2016 , related party customers accounted for 60% and 58% , respectively, of the Company's trade accounts receivable and receivables from related parties balance combined. During the six months ended June 30, 2017 and 2016 , one related party customer accounted for 59% and 50% , respectively, of the Company's total revenue. Two third-party customers accounted for greater than 10% of the Company's total revenue for six months ended June 30, 2016 , at 12% for each respective parties. No third-party customer accounted for greater than 10% for the six months ended June 30, 2017. (y) 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 full 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. Remaining implementation matters include establishing new policies, procedures, and controls and quantifying any adoption date adjustments. 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. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions (a) Description of Stingray Acquisition On March 20, 2017, and as amended on May 12, 2017, the Company entered into two definitive contribution agreements, one such agreement with MEH Sub LLC (“MEH Sub”), Wexford Offshore Stingray Energy Corp., Gulfport and Mammoth LLC and the other with MEH Sub, Wexford Offshore Stingray Pressure Pumping Corp., Gulfport and Mammoth LLC (collectively, the “Stingray Contribution Agreements”). Under the Stingray Contribution Agreements, the Company agreed to acquire all outstanding membership interests, through its wholly-owned subsidiary Mammoth LLC, in Cementing and SR Energy (the "2017 Stingray Acquisition"). Cementing and SR Energy are included in the Company's well services segment. The addition of their water transfer, equipment rentals and cementing services further expanded and vertically integrated Mammoth’s service offerings. The 2017 Stingray Acquisition closed on June 5, 2017. Pursuant to the Stingray Contribution Agreements, Mammoth issued 1,392,548 shares of its common stock, par value $0.01 per share, for all outstanding equity interests in SR Energy and Cementing. Based upon a closing price of Mammoth's common stock of $18.50 per share on June 5, 2017, the total purchase price was $25,762,138 . At the acquisition date, the components of the consideration transferred were as follows: Consideration attributable to Cementing (1) $ 12,975,123 Consideration attributable to SR Energy (1) 12,787,015 Total consideration transferred $ 25,762,138 (1) See Summary of acquired assets and liabilities below SR Energy Cementing Total Cash and cash equivalents $ 1,611,791 $ 1,059,767 $ 2,671,558 Accounts receivable, net 3,912,322 495,222 4,407,544 Receivables from related parties 3,683,892 1,418,616 5,102,508 Inventories — 306,081 306,081 Prepaid expenses 35,322 31,980 67,302 Property, plant and equipment (1) 13,060,850 7,458,942 20,519,792 Identifiable intangible assets - customer relationships (2) — 1,140,000 1,140,000 Identifiable intangible assets - trade names (2) 550,000 270,000 820,000 Goodwill (3) 3,928,508 6,263,978 10,192,486 Other assets 6,532 — 6,532 Total assets acquired $ 26,789,217 $ 18,444,586 $ 45,233,803 Accounts payable and accrued liabilities $ 5,889,523 $ 2,063,443 $ 7,952,966 Long-term debt (4) 5,073,854 2,000,000 7,073,854 Deferred tax liability 3,038,825 1,406,020 4,444,845 Total liabilities assumed $ 14,002,202 $ 5,469,463 $ 19,471,665 Net assets acquired $ 12,787,015 $ 12,975,123 $ 25,762,138 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) Identifiable intangible assets were measured using a combination of income approaches. Trade names were valued using a "Relief-from-Royalty" method. Non-contractual customer relationships were valued using a "Multi-period excess earnings" method. Identifiable intangible assets will be amortized over 5 - 10 years. (3) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability based on the synergies expected to arise from the acquired entities. (4) Long-term debt assumed was paid off during the three months ended June 30, 2017. Since the acquisition date, the businesses acquired have provided the following activity: 2017 SR Energy Cementing Revenues $ 1,692,239 $ 903,317 Net loss (a) (251,908 ) (422,295 ) a. Includes $503,997 and $512,656 in depreciation and amortization for SR Energy and Cementing, respectively. The following table presents unaudited pro forma information for the Company as if the acquisition of SR Energy and Cementing had occurred on January 1, 2016: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Revenues $ 18,333,453 $ 23,659,445 Net loss (1,612,175 ) (8,171,257 ) The historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the 2017 Stingray Acquisition. For the six months ended June 30, 2017, there were $0.2 million transaction related costs expensed. The unaudited pro forma consolidated results are not necessarily indicative of what the consolidated results of operations actually would have been had the 2017 Stingray Acquisition been completed on January 1, 2017. In addition, the unaudited pro forma consolidated results do not purport to project the future results of operations of the Company. (b) Description of Chieftain Acquisition On March 27, 2017, as amended as of May 24, 2017, the Company entered into a the Purchase Agreement with the Chieftain Sellers, following the Company's successful bid in a bankruptcy court auction for substantially all of the assets of the Chieftain Sellers (the "Chieftain Assets"). The Chieftain Acquisition closed on May 26, 2017. Mammoth funded the purchase price for the Chieftain Assets with cash on hand and borrowings under its revolving credit facility. The Chieftain Assets are held by the Company's wholly owned subsidiary Piranha and are included in the Company's sand segment. The Chieftain Acquisition added sand reserves, increased our production capacity and provided access to the Union Pacific railroad, which affords access to both the Mid-Continent basin in support of the Company’s pressure pumping services as well as the Permian basin. On the acquisition date, the $36,320,187 in cash consideration consisted of the following components: Total Property, plant and equipment (1) $ 23,372,800 Sand reserves (2) 20,910,000 Total assets acquired $ 44,282,800 Asset retirement obligation 1,732,081 Total liabilities assumed $ 1,732,081 Total allocation of purchase price $ 42,550,719 Bargain purchase price (3, 4) (6,230,532 ) Total purchase price $ 36,320,187 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) The fair value of the sand reserves was determined based on the excess cash flow method, a form of the income approach. The method provides a value based on the estimated remaining life of sand reserves, projected financial information and industry projections. (3) Amount reflected in Condensed Consolidated Statements of Comprehensive Loss reflected net of income taxes of $2,219,020 . (4) The fair value of the business was determined based on the excess cash flow method, a form of the income approach. Since the acquisition date, the Chieftain Assets have provided the following activity: 2017 Piranha Revenues $ 1,311,768 Net loss (a) (206,644 ) a. Includes $429,821 in depreciation and amortization The following table presents unaudited pro forma information for the Company as if the acquisition of the Chieftain Assets had occurred as of January 1, 2016: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Revenues $ 1,311,768 $ 7,690,032 Net (loss) income (72,455 ) 34,127,344 The Company's historical financial information was adjusted to give pro forma effect to the events that were directly attributable to the Chieftain Acquisition. For the six months ended June 30, 2017, $0.7 million of transaction related costs was expensed. (c) Description of Sturgeon Acquisition On March 20, 2017, and as amended on May 12, 2017, the Company entered into a definitive contribution agreement with MEH Sub, Wexford Offshore Sturgeon Corp., Gulfport, Rhino and Mammoth Energy Partners LLC (the “Sturgeon Contribution Agreement”). Under the Sturgeon Contribution Agreement, the Company agreed to acquire all outstanding membership interests, through its wholly-owned subsidiary Mammoth LLC, in Sturgeon, which owns all of the membership interests in Taylor Frac, Taylor RE and South River (collectively, the "Sturgeon subsidiaries"). The acquisition added sand reserves, increased our production capacity and provided access to the Canadian National Railway, which affords access to the Appalachian basin in support of the Company’s pressure pumping services as well as to western Canada. The acquisition of Sturgeon closed on June 5, 2017. Pursuant to the Sturgeon Contribution Agreement, Mammoth issued 5,607,452 shares of its common stock, par value $0.01 per share, for all outstanding equity interests in Sturgeon. Based upon a closing price of Mammoth's common stock of $18.50 per share on June 5, 2017, the total purchase price was $103,737,862 . As a result of this transaction, the Company's historical financial information has been recast to combine the Condensed Consolidated Statements of Operations and the Condensed Consolidated Balance Sheets of the Company for all periods included in the accompanying financial statements with those of Sturgeon as if the combination had been in effect since Sturgeon commenced operations on September 13, 2014. Any material transactions between the Company and Sturgeon were eliminated. Sturgeon's financial results were incorporated into the Company's natural sand proppant services division. For the six months ended June 30, 2017, $1.2 million of transaction related costs was expensed. The following table summarizes the carrying value of Sturgeon as of September 13, 2014, the date at which Sturgeon commenced operations with the acquisition of the Sturgeon subsidiaries: Sturgeon Cash and cash equivalents $ 705,638 Accounts receivable 7,587,298 Inventories 2,221,073 Other current assets 555,939 Property, plant and equipment 20,424,087 Sand reserves 57,420,000 Goodwill 2,683,727 Total assets acquired $ 91,597,762 Accounts payable and accrued liabilities $ 2,878,072 Total liabilities assumed $ 2,878,072 Net assets acquired $ 88,719,690 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Sturgeon contribution $ 81,738,675 Deferred tax liability assumed (4,010,885 ) Members' equity conveyed $ 77,727,790 (d) Acquisition of Higher Power On April 21, 2017, the Company completed its acquisition of Higher Power for total consideration of $3,250,000 in cash to the sellers plus up to $750,000 in contingent consideration to be paid in equal annual installments over the next three years subject to contractual conditions. As of June 30, 2017, $250,000 and $500,000 of the contingent consideration are reflected in the accrued expenses and other current liabilities and other liabilities, respectively. Mammoth funded the purchase price for Higher Power with cash on hand and borrowings under its credit facility. The acquisition of Higher Power added to the Company's other energy segment. This acquisition created a new energy infrastructure component of our other energy services segment, which diversifies our service offerings. For the six months ended June 30, 2017 there were $0.1 million transaction related costs expensed. The following table summarizes the fair value of Higher Power as of April 21, 2017: Higher Power Property, plant and equipment $ 1,743,600 Identifiable intangible assets - customer relationships 1,613,000 Goodwill (1) 643,400 Total assets acquired $ 4,000,000 Long-term debt and other liabilities $ 750,000 Total liabilities assumed $ 750,000 Net assets acquired $ 3,250,000 (1) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability expected to arise from the acquired entity. Since the acquisition date, Higher Power has provided the following activity: 2017 Higher Power Revenues $ 1,709,277 Net loss (a) (286,959 ) a. Includes $340,333 in depreciation and amortization The following table presents unaudited pro forma information for the Company as if the acquisition of Higher Power had occurred as of January 1, 2016: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Revenues $ 4,481,260 $ 10,038,825 Net loss (411,237 ) (1,189,496 ) |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories A summary of the Company's inventories is shown below: June 30, December 31, 2017 2016 Supplies $ 6,592,239 $ 4,020,670 Raw materials 149,845 75,971 Work in process — 205,450 Finished goods 3,574,616 1,822,110 Total inventory $ 10,316,700 $ 6,124,201 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment include the following: June 30, December 31, Useful Life 2017 2016 Land $ 11,316,910 $ 5,040,482 Land improvements 15 years or life of lease 9,324,179 3,640,976 Buildings 15-20 years 44,796,429 42,191,745 Buildings - dry plant facility 39 years 7,872,137 7,806,128 Buildings - wash plant facility 39 years 4,835,148 4,835,148 Drilling rigs and related equipment 3-15 years 149,676,740 138,526,519 Pressure pumping equipment 3-5 years 138,792,153 96,500,592 Coil tubing equipment 4-10 years 28,006,153 28,019,217 Rail improvements 10-20 years 5,962,779 4,276,928 Vehicles, trucks and trailers 5-10 years 43,233,579 33,140,599 Machinery and equipment 7-20 years 51,745,514 35,548,357 Other property and equipment 3-12 years 12,424,178 11,461,839 507,985,899 410,988,530 Deposits on equipment and equipment in process of assembly 26,817,262 9,427,307 534,803,161 420,415,837 Less: accumulated depreciation 207,722,997 178,296,174 Property, plant and equipment, net $ 327,080,164 $ 242,119,663 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 six months ended June 30, 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 $221,779 . There were no proceeds from the sale of equipment damaged or lost down-hole for the six months ended June 30, 2016 . A summary of depreciation, depletion, accretion and amortization expense is outlined below: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Depreciation expense $ 17,229,471 $ 16,323,309 $ 32,196,269 $ 31,806,631 Accretion expense (see Note 2) 13,976 329 14,409 329 Depletion expense (see Note 2) 382,202 219,227 384,472 219,227 Amortization expense (see Note 6) 2,267,750 2,267,750 4,535,500 4,535,500 Depreciation, depletion, accretion and amortization $ 19,893,399 $ 18,810,615 $ 37,130,650 $ 36,561,687 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 | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2017 2016 Customer relationships $ 35,798,000 $ 33,605,000 Trade names 8,490,000 7,110,000 Less: accumulated amortization - customer relationships 21,835,228 17,655,228 Less: accumulated amortization - trade names 1,848,443 1,492,943 Intangible assets, net $ 20,604,329 $ 21,566,829 Amortization expense for intangible assets was $4,535,500 and $4,535,500 for the six months ended June 30, 2017 and 2016 , respectively. The original life of customer relationships range from 4 to 10 years with a remaining average useful life of 4.56 years. Trade names are amortized over a 10 year useful life and as of June 30, 2017 the remaining useful life was 8.78 years. Aggregated expected amortization expense for the future periods is expected to be as follows: Year ended December 31: Amount Remainder of 2017 $ 4,694,216 2018 8,541,434 2019 1,055,932 2020 1,055,932 2021 1,050,180 Thereafter 4,206,635 $ 20,604,329 Goodwill was $99,562,761 and $88,726,875 at June 30, 2017 and December 31, 2016 , respectively. Changes in the goodwill for the year ended December 31, 2016 and the six months ended June 30, 2017 are set forth below: Balance, January 1, 2016 $ 88,726,875 Additions — Balance, December 31, 2016 88,726,875 Additions - 2017 Stingray Acquisition (Note 3) 10,192,486 Additions - Higher Power Acquisition (Note 3) 643,400 Balance, June 30, 2017 $ 99,562,761 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2017 2016 Accrued compensation, benefits and related taxes $ 3,670,536 $ 2,432,093 Financed insurance premiums 978,122 3,293,859 State & local taxes payable 920,566 319,597 Insurance reserves 1,491,300 971,351 Other 3,129,570 1,529,298 Total $ 10,190,094 $ 8,546,198 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 | 6 Months Ended |
Jun. 30, 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 lead 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 June 30, 2017 , $57,000,000 of the $65,000,000 outstanding balance of the facility was in a one month LIBOR rate option tranche with an interest rate of 3.72% and $8,000,000 of the outstanding balance was at the base rate with an interest rate of 5.75% . As of June 30, 2017 , Mammoth had availability of $104,664,874 . As of 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 June 30, 2017 and December 31, 2016 , the Company was in compliance with its covenants under the facility. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 (benefit) expense attributable to the Company for the six months ended June 30, 2017 and 2016 , are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 U.S. current income tax (benefit) expense $ — $ (12,880 ) $ — $ (12,880 ) U.S. deferred income tax (benefit) expense (2,810,993 ) 9,786 (6,496,374 ) 9,786 Foreign current income tax expense 21,089 759,824 606,556 1,654,184 Foreign deferred income tax (benefit) expense (14,173 ) 32,645 (20,324 ) 32,645 Total $ (2,804,077 ) $ 789,375 $ (5,910,142 ) $ 1,683,735 A reconciliation of the statutory federal income tax amount to the recorded expense is as follows: Six Months Ended June 30, 2017 2016 Loss before income taxes, as reported $ (12,060,936 ) $ (30,084,571 ) Bargain purchase gain (4,011,512 ) — Loss before income taxes, as taxed (16,072,448 ) (30,084,571 ) Statutory income tax rate 35 % 35 % Expected income tax benefit (5,625,357 ) (10,529,600 ) Non-taxable entity — 12,685,647 Other permanent differences 60,231 21,535 State tax benefit (807,139 ) (3,301 ) Foreign tax credit (907,171 ) — Foreign earnings not in book income 1,542,732 — Foreign income tax rate differential (173,438 ) (497,438 ) Other — 6,892 Total $ (5,910,142 ) $ 1,683,735 Deferred tax assets and liabilities attributable to the Company consisted of the following: June 30, December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,975,186 $ 1,892,761 Net operating loss carryforward 8,060,506 — Deferred stock compensation 1,716,754 1,686,671 Accrued liabilities 1,654,190 746,132 Other 1,331,091 1,785,999 Deferred tax assets 14,737,727 6,111,563 Deferred tax liabilities: Property and equipment $ (55,624,122 ) $ (42,525,793 ) Intangible assets (6,784,966 ) (7,662,590 ) Unrepatriated foreign earnings (4,575,485 ) (3,451,110 ) Other (60,302 ) (142,859 ) Deferred tax liabilities (67,044,875 ) (53,782,352 ) Net deferred tax liability $ (52,307,148 ) $ (47,670,789 ) Reflected in accompanying balance sheet as: Deferred income taxes $ (52,307,148 ) $ (47,670,789 ) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic loss per share: Allocation of earnings: Net loss $ (1,169,515 ) $ (8,403,337 ) $ (6,150,794 ) $ (31,768,306 ) Weighted average common shares outstanding 39,500,000 30,000,000 38,505,525 30,000,000 Basic loss per share $ (0.03 ) $ (0.28 ) $ (0.16 ) $ (1.06 ) Diluted loss per share: Allocation of earnings: Net loss $ (1,169,515 ) $ (8,403,337 ) $ (6,150,794 ) $ (31,768,306 ) Weighted average common shares, including dilutive effect (a) 39,500,000 30,000,000 38,505,525 30,000,000 Diluted loss per share $ (0.03 ) $ (0.28 ) $ (0.16 ) $ (1.06 ) 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 and diluted 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 Six Months Ended June 30, 2016 June 30, 2016 Pro Forma C Corporation Data (unaudited): Net loss, as reported $ (7,613,962 ) $ (30,084,571 ) Pro forma benefit for income taxes (2,342,467 ) (3,287,051 ) Pro forma net loss $ (5,271,495 ) $ (26,797,520 ) Basic loss per share: Allocation of earnings: Net loss $ (5,271,495 ) $ (26,797,520 ) Weighted average common shares outstanding 37,500,000 37,500,000 Basic loss per share $ (0.14 ) $ (0.71 ) Diluted loss per share: Allocation of earnings: Net loss $ (5,271,495 ) $ (26,797,520 ) Weighted average common shares, including dilutive effect (a) 37,500,000 37,500,000 Diluted loss per share $ (0.14 ) $ (0.71 ) (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. |
Equity Based Compensation
Equity Based Compensation | 6 Months Ended |
Jun. 30, 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 June 30, 2017 was $47,168,561 . |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 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 390,587 21.19 Vested (2,233 ) (17.42 ) Forfeited (8,888 ) (15.00 ) Unvested shares as of June 30, 2017 662,246 $ 18.63 As of June 30, 2017 , there was $10,326,977 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 2.5 years . Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $1,050,062 and $1,619,893 for the three and six months ended June 30, 2017 , respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 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”); El Toro ("El Toro"); Diamondback E&P, LLC ("Diamondback"); Cementing and SR Energy (collectively, prior to the 2017 Stingray Acquisition, the "2017 Stingray Companies"); 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 June 30, Six Months Ended June 30, At June 30, At December 31, 2017 2016 2017 2016 2017 2016 Pressure Pumping and Gulfport (a) $ 41,099,441 $ 38,165,558 $ 72,845,391 $ 38,165,558 $ 28,596,696 $ 19,094,509 Muskie and Gulfport (b) 13,605,124 9,313,266 25,145,543 11,231,344 8,151,536 5,373,007 Panther Drilling and Gulfport (c) 951,439 769,147 1,993,816 1,221,022 1,016,589 1,434,036 Cementing and Gulfport (d) 903,317 — 903,317 — 1,767,432 — SR Energy and Gulfport (e) 1,565,211 — 1,565,211 — 6,011,500 — Lodging and Grizzly (f) 261 17 525 572 283 274 Bison Drilling and El Toro (g) — — — 371,873 — — Panther Drilling and El Toro (g) — 1,449 — 171,619 — — Bison Trucking and El Toro (g) — — — 130,000 — — White Wing and El Toro (g) — — — 20,431 — — Energy Services and El Toro (h) 34,100 249,193 157,745 249,193 35,853 108,386 White Wing and Diamondback (i) — — — 1,650 — — Coil Tubing and El Toro (j) — 318,694 — 318,694 — — Panther and DBDHT (k) 8,474 — 13,689 — 11,972 100,450 Consolidated and 2017 Stingray Companies (l) 40,516 — 84,722 — — 1,363,056 Other Relationships — — — — 95,124 115,565 $ 58,207,883 $ 48,817,324 $ 102,709,959 $ 51,881,956 $ 45,686,985 $ 27,589,283 a. Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport, dedicating two spreads and related equipment for the performance of these services. 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. Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. d. Cementing performs well cementing services for Gulfport. e. SR Energy performs rental services for Gulfport. f. Lodging provides remote accommodation and food services to Grizzly, an entity owned approximately 75% by affiliates of Wexford and approximately 25% by Gulfport. g. The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. h. Energy Services performs completion and production services for El Toro pursuant to a master service agreement. i. White Wing provides rental services to Diamondback. j. Coil Tubing provides to El Toro services in connection with completion and drilling activities. k. Panther provides services and materials to DBDHT. l. The Company provided certain services to the 2017 Stingray Companies. COST OF REVENUE ACCOUNTS PAYABLE Three Months Ended June 30, Six Months Ended June 30, At June 30, At December 31, 2017 2016 2017 2016 2017 2016 Panther and DBDHT (a) $ 58 $ 2,444 $ 127,778 $ 48,998 $ — $ — Bison Trucking and Diamondback (b) 28,390 42,331 66,522 83,958 — — Energy Services and Elk City Yard (c) 26,700 26,700 53,400 53,400 — — Lodging and Dunvegan (d) — 2,453 — 2,453 — 3,199 Bison Trucking and El Toro (e) — 5,000 — 5,000 — — Consolidated and 2017 Stingray Companies (f) 207,044 1,563 444,409 3,728 — 174,145 $ 262,192 $ 80,491 $ 692,109 $ 197,537 $ — $ 177,344 SELLING, GENERAL AND ADMINISTRATIVE COSTS Consolidated and Everest (g) $ 49,804 $ 63,431 $ 108,117 $ 135,755 $ 23,818 $ 12,668 Consolidated and Wexford (h) 164,414 100,336 398,294 136,257 50,185 13,197 Mammoth and Orange Leaf (i) 16,276 53,331 45,786 53,331 — — Mammoth and Caliber (j) 71,998 — 71,998 — 43,608 — Sand Tiger and Grizzly (k) 4,047 — 4,047 — 1,820 — Lodging and Dunvegan (d) 91 — 2,642 — 752 — $ 306,630 $ 217,098 $ 630,884 $ 325,343 $ 120,183 $ 25,865 $ 120,183 $ 203,209 a. Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. b. Bison Trucking leased office space from Diamondback in Midland, Texas. c. Energy Services leases property from Elk City Yard. d. Dunvegan provides technical and administrative services and pays for goods and services on behalf of the Company. e. Bison Trucking leases space from El Toro for storage of a rig. f. Prior to the 2017 Stingray Acquisition, the 2017 Stingray Companies provided certain services to the Company and, from time to time, the 2017 Stingray Companies paid for goods and services on behalf of the Company. g. 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. h. 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. i. Orange Leaf leases office space to Mammoth. j. Caliber leases office space to Mammoth. k. Grizzly provides certain administrative and analytical services to the Company. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company leases real estate, rail cars and other equipment under long-term operating leases with varying terms and expiration dates through 2025. Minimum Purchase Commitments We have entered into agreements with sand suppliers that contain minimum purchase obligations. Our failure to purchase the minimum tonnage would require us to pay shortfall fees. However, the minimum quantities set forth in the agreements are not in excess of our currently expected future requirements. Capital Spend Commitments The Company has entered into agreements with suppliers to acquire capital equipment. Aggregate future minimum payments under these obligations in effect at June 30, 2017 are as follows: Year ended December 31: Operating Leases Capital Spend Commitments Minimum Purchase Commitments Remainder of 2017 $ 5,486,024 $ 22,730,189 $ 6,689,581 2018 9,177,272 — 10,866,000 2019 8,075,402 — 10,866,000 2020 5,597,885 — — 2021 2,645,182 — — Thereafter 3,721,249 — — $ 34,703,014 $ 22,730,189 $ 28,421,581 For the six months ended June 30, 2017 and 2016 , the Company recognized rent expense of $4,247,896 and $4,079,662 , respectively. 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. The Company has insurance coverage for physical partial 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 June 30, 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 June 30, 2017 and December 31, 2016 , the policies contained an aggregate stop loss of $2,000,000 . 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 per participant and an aggregate stop-loss of $5,799,991 for the calendar year ending December 31, 2017. These estimates may change in the near term as actual claims continue to develop. As of June 30, 2017 and December 31, 2016 , accrued insurance claims were $1,491,300 and $971,351 , respectively. In connection with the insurance programs, letters of credit of $1,636,000 and $1,285,000 as of June 30, 2017 and December 31, 2016 , respectively, have been issued supporting the retained risk exposure. As of June 30, 2017 , in connection with environmental remediation programs, letters of credit of $3,363,627 have been issued supporting the retained risk exposure. As of both June 30, 2017 and December 31, 2016 , these letters of credit were collateralized by substantially all of the assets of the Company. The Company is routinely involved in state and local tax audits. During the year ended December 31, 2016 , 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 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 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 Talamantez, 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 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. On May 4, 2017, a complaint alleging a former employee was not paid a yearly bonus was filed titled Lawrence Dehoff v. Redback Coil Tubing, L.L.C. in the Judicial District Court at Law 2 for Gregg County, 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 May 8, 2017, a complaint alleging breach of contract was filed titled Philadelphia Indemnity Insurance Co. vs. Stingray Energy Services, LLC in the Commonwealth Pleas Court Belmont County, Ohio. 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 June 27, 2017, a complaint alleging negligence, as a result of a motor vehicle accident, was filed titled Donnelle Banks, individually and as parent and next Friend for Leila Ann Hollis, a minor, vs. Redback Coil Tubing LLC and Mammoth Energy Services, Inc. in the District Court of Gregg County, 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. 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 six months ended June 30, 2017 and 2016 , the Company paid $0 and $102,230 , respectively, in contributions to the plan. |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, 2017 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers $ 17,508,098 $ 8,796,654 $ 13,767,088 $ 21,215,222 $ 9,231,059 $ 70,518,121 Revenue from related parties $ 72,868,938 $ 2,687,448 $ 25,145,543 $ 2,007,505 $ 525 $ 102,709,959 Cost of revenue $ 64,533,809 $ 10,436,065 $ 32,581,324 $ 22,986,579 $ 5,300,163 $ 135,837,940 Selling, general and administrative expenses $ 4,179,665 $ 1,698,503 $ 4,473,436 $ 2,728,778 $ 1,356,122 $ 14,436,504 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 21,663,562 $ (650,466 ) $ 1,857,871 $ (2,492,630 ) $ 2,575,299 $ 22,953,636 Other expense (income) $ 6,389 $ (1,991 ) $ 153,776 $ 224,236 $ 4,232 $ 386,642 Bargain purchase gain $ — $ — $ (4,011,512 ) $ — $ — $ (4,011,512 ) Interest expense (income) $ 431,795 $ (108,376 ) $ 485,239 $ 657,058 $ 43,076 $ 1,508,792 Depreciation, depletion, accretion and amortization $ 18,784,446 $ 3,428,162 $ 3,568,659 $ 9,942,310 $ 1,407,073 $ 37,130,650 Income tax (benefit) provision $ — $ (6,500,514 ) $ 8,502 $ — $ 581,870 $ (5,910,142 ) Net income (loss) $ 2,440,932 $ 2,532,253 $ 1,653,207 $ (13,316,234 ) $ 539,048 $ (6,150,794 ) Total expenditures for property, plant and equipment $ 53,401,909 $ 344,474 $ 2,969,883 $ 5,900,817 $ 3,958,636 $ 66,575,719 Three Months Ended June 30, 2017 Revenue from external customers $ 8,816,451 $ 5,606,522 $ 10,395,025 $ 11,511,825 $ 3,724,353 $ 40,054,176 Revenue from related parties $ 41,108,032 $ 2,534,553 $ 13,605,124 $ 959,913 $ 261 $ 58,207,883 Cost of revenue $ 35,826,369 $ 6,636,289 $ 19,974,059 $ 12,033,156 $ 2,870,081 $ 77,339,954 Selling, general and administrative expenses $ 2,404,739 $ 726,098 $ 2,415,883 $ 1,433,754 $ 719,232 $ 7,699,706 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 11,693,375 $ 778,688 $ 1,610,207 $ (995,172 ) $ 135,301 $ 13,222,399 Other expense (income) $ 3,758 $ (3,173 ) $ 139,569 $ 60,451 $ 1,891 $ 202,496 Bargain purchase gain $ — $ — $ (4,011,512 ) $ — $ — $ (4,011,512 ) Interest expense (income) $ 303,351 $ (2,474 ) $ 352,600 $ 439,876 $ 18,255 $ 1,111,608 Depreciation, depletion, accretion and amortization $ 9,626,553 $ 2,219,921 $ 2,205,694 $ 4,973,682 $ 867,549 $ 19,893,399 Income tax (benefit) provision $ — $ (2,808,982 ) $ 8,502 $ — $ (3,597 ) $ (2,804,077 ) Net income (loss) $ 1,759,713 $ 1,373,396 $ 2,915,354 $ (6,469,181 ) $ (748,797 ) $ (1,169,515 ) Total expenditures for property, plant and equipment $ 24,736,600 $ 344,474 $ 2,795,370 $ 3,631,540 $ 3,958,043 $ 35,466,027 At June 30, 2017 Goodwill $ 86,043,147 $ 10,192,486 $ 2,683,727 $ — $ 643,400 $ 99,562,761 Intangible assets, net $ 16,913,308 $ 2,078,021 $ — $ — $ 1,613,000 $ 20,604,329 Total assets $ 244,665,648 $ 83,026,472 $ 163,911,495 $ 98,203,014 $ 37,110,946 $ 626,917,575 Completion and Production Six Months Ended June 30, 2016 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers $ 18,157,113 $ 4,360,611 $ 2,976,443 $ 9,715,833 $ 14,653,537 $ 49,863,537 Revenue from related parties $ 38,165,558 $ 567,887 $ 11,231,344 $ 1,916,595 $ 572 $ 51,881,956 Cost of revenue $ 40,083,680 $ 6,962,055 $ 16,432,367 $ 12,968,054 $ 6,448,663 $ 82,894,819 Selling, general and administrative expenses $ 2,065,542 $ 1,013,478 $ 2,109,803 $ 2,567,237 $ 1,063,952 $ 8,820,012 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 14,173,449 $ (3,047,035 ) $ (4,334,383 ) $ (3,902,863 ) $ 7,141,494 $ 10,030,662 Other expense (income) $ 23,825 $ (673,145 ) $ 72,985 $ (57,574 ) $ 8,183 $ (625,726 ) Interest expense (income) $ 368,764 $ 149,095 $ 211,111 $ 1,554,207 $ 25,210 $ 2,308,387 Depreciation, depletion, accretion and amortization $ 18,913,487 $ 2,670,222 $ 2,949,851 $ 10,945,932 $ 1,082,195 $ 36,561,687 Impairment of long-lived assets $ 138,587 $ 1,384,751 $ — $ 347,547 $ — $ 1,870,885 Income tax (benefit) provision $ — $ (3,094 ) $ — $ — $ 1,686,829 $ 1,683,735 Net (loss) income $ (5,271,214 ) $ (6,574,864 ) $ (7,568,330 ) $ (16,692,975 ) $ 4,339,077 $ (31,768,306 ) Total expenditures for property, plant and equipment $ 927,542 $ 247,829 $ 157,726 $ 423,095 $ 418,017 $ 2,174,209 Three Months Ended June 30, 2016 Revenue from external customers $ 5,862,584 $ 1,662,019 $ 1,694,698 $ 4,458,095 $ 6,667,914 $ 20,345,310 Revenue from related parties $ 38,165,558 $ 567,887 $ 9,313,266 $ 770,596 $ 17 $ 48,817,324 Cost of revenue $ 28,551,790 $ 3,034,349 $ 10,251,613 $ 5,759,398 $ 2,906,493 $ 50,503,643 Selling, general and administrative expenses $ 1,539,371 $ 440,182 $ 1,508,533 $ 1,264,763 $ 453,289 $ 5,206,138 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 13,936,981 $ (1,244,625 ) $ (752,182 ) $ (1,795,470 ) $ 3,308,149 $ 13,452,853 Other expense (income) $ 43,033 $ (682,545 ) $ 53,803 $ (47,500 ) $ 6,493 $ (626,716 ) Interest expense (income) $ 131,709 $ 50,776 $ 106,650 $ 701,633 $ 21,263 $ 1,012,031 Depreciation, depletion, accretion and amortization $ 9,958,270 $ 1,272,715 $ 1,581,334 $ 5,438,551 $ 559,745 $ 18,810,615 Impairment of long-lived assets $ 138,587 $ 1,384,751 $ — $ 347,547 $ — $ 1,870,885 Income tax (benefit) provision $ — $ (3,094 ) $ — $ — $ 792,469 $ 789,375 Net income (loss) $ 3,665,382 $ (3,267,228 ) $ (2,493,969 ) $ (8,235,701 ) $ 1,928,179 $ (8,403,337 ) Total expenditures for property, plant and equipment $ 896,847 $ 247,829 $ 65,184 $ 158,924 $ 270,386 $ 1,639,170 At June 30, 2016 Goodwill $ 86,043,148 $ — $ 2,683,727 $ — $ — $ 88,726,875 Intangible assets, net $ 25,956,808 $ 145,521 $ — $ — $ — $ 26,102,329 Total assets $ 209,357,385 $ 41,178,159 $ 114,090,998 $ 105,556,115 $ 35,639,200 $ 505,821,857 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 provides housing, kitchen and dining, and recreational service facilities for oilfield workers that are located in remote areas away from readily available lodging as well as energy infrastructure services. 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 in Canada, Texas and New Mexico. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 7, 2017, the Company acquired an energy service company from an unrelated third party seller for $2.3 million in cash consideration and the assumption of $1.8 million in debt. Effective as of July 12, 2017, the Company entered into a Second Amendment to Revolving Credit and Security Agreement, among the Company and certain of its subsidiaries, as borrowers, certain financial institutions party thereto, as lenders, and PNC Bank, National Association, as agent for the lenders (the “Amendment”). The Amendment provided the borrowers with greater flexibility for permitted acquisitions and permitted indebtedness, increased the maximum amount credited to the borrowing base for sand inventory and for in-transit inventory and increased certain cross-default thresholds from $5 million to $15 million . Subsequent to June 30, 2017 , the Company entered into a lease agreement for capital equipment with aggregate commitments of $1.5 million . |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements are prepared in accordance with 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 Company's sand reserves and their impact on calculating the depletion expense, the allowance for doubtful accounts, reserves for self-insurance, depreciation and amortization of property and equipment, business combination valuations, 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 30th 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 manufactured at the Company’s sand production facilities includes direct excavation costs, processing costs and overhead allocation. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Tonnages are verified periodically by an independent surveyor. Costs are calculated on a per ton basis and are applied to the stockpiles based on the number of tons in the stockpile. Inventory transported for sale at the Company’s terminal facility includes the cost of purchased or manufactured sand, plus transportation related charges. 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 8) and sales tax receivables. |
Asset Retirement Obligation | Asset Retirement Obligation Mine reclamation costs, future remediation costs for inactive mines or other contractual site remediation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. |
Business Combinations | Business Combinations The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in FASB ASC No. 805, “ Business Combinations ”, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed and any noncontrolling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and noncontrolling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with FASB ASC No. 805, the Company recognizes and measures goodwill, if any, as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired. When the Company acquires a business from an entity under common control, whereby the companies are ultimately controlled by the same party or parties both before and after the transaction, it is treated for accounting purposes in a manner similar to the pooling of interest method of accounting. The assets and liabilities are recorded at the transferring entity’s historical cost instead of reflecting the fair market value of assets and liabilities. |
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, amounts receivable, long-term debt and payables 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. The fair value of long-term debt approximates it s carrying value because the cost of borrowing fluctuates based upon market conditions. |
Revenue Recognition | The proceeds resulted from loss of revenue relating to wildfires that forced evacuation of personnel. Revenue from energy infrastructure services, a component of the Company's other energy services segment, is recognized as the work progresses based on the days completed or as the contract is completed. These services may be provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis), and the final terms and prices of these contracts are frequently negotiated with the customer. Under unit-based contracts, the utilization of an output-based measurement is appropriate for revenue recognition. Under our cost-plus/hourly and time and materials type contracts, the Company recognizes revenue on an input basis, as labor hours are incurred and services are performed. 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”). 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. |
Earnings per Share | Earnings per Share Earnings per share is computed by dividing net loss by the weighted average number of outstanding shares. See Note 10. (q) 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 October 12, 2016 contribution and the IPO was outstanding for the six months ended June 30, 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 36.8% for the six months ended June 30, 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 10. 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. |
Environmental Matters | Environmental Matters The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Company’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed as incurred. Liabilities are recorded when environmental costs are probable, and the costs can be reasonably estimated. The Company maintains insurance which may cover in whole or in part certain environmental expenditures. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive income (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 full 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. Remaining implementation matters include establishing new policies, procedures, and controls and quantifying any adoption date adjustments. 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 Pre24
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Ownership Of The Company By Major Stakeholders | At June 30, 2017 and December 31, 2016 , Mammoth Holdings, or its affiliates, Gulfport and Rhino owned the following share of outstanding common stock of Mammoth Inc.: At June 30, 2017 At December 31, 2016 Share Count % Ownership Share Count % Ownership Mammoth Holdings 25,009,319 56.2 % 20,443,903 54.5 % Gulfport 11,171,887 25.1 % 9,073,750 24.2 % Rhino 568,794 1.3 % 232,347 0.6 % Outstanding shares owned by related parties 36,750,000 82.6 % 29,750,000 79.3 % Total outstanding 44,500,000 100.0 % 37,500,000 100.0 % |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of allowance for doubtful accounts receivable | Following is a roll forward of the allowance for doubtful accounts for the year ended December 31, 2016 and the six months ended June 30, 2017 : Balance, January 1, 2016 $ 4,011,882 Additions charged to expense 1,968,001 Deductions for uncollectible receivables written off (602,967 ) Balance, December 31, 2016 5,376,916 Additions charged to expense 18,980 Additions other 178,871 Balance, June 30, 2017 $ 5,574,767 |
Schedule of asset retirement obligations | Changes in the asset retirement obligation for the year ended December 31, 2016 and the six months ended June 30, 2017 are set forth below: Balance, January 1, 2016 $ 94,904 Accretion expense 164,900 Balance, December 31, 2016 259,804 Accretion expense 14,409 Additions - Chieftain Acquisition (Note 3) 1,732,081 Balance, June 30, 2017 $ 2,006,294 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stingray Acquisitions | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | At the acquisition date, the components of the consideration transferred were as follows: Consideration attributable to Cementing (1) $ 12,975,123 Consideration attributable to SR Energy (1) 12,787,015 Total consideration transferred $ 25,762,138 (1) See Summary of acquired assets and liabilities below |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | SR Energy Cementing Total Cash and cash equivalents $ 1,611,791 $ 1,059,767 $ 2,671,558 Accounts receivable, net 3,912,322 495,222 4,407,544 Receivables from related parties 3,683,892 1,418,616 5,102,508 Inventories — 306,081 306,081 Prepaid expenses 35,322 31,980 67,302 Property, plant and equipment (1) 13,060,850 7,458,942 20,519,792 Identifiable intangible assets - customer relationships (2) — 1,140,000 1,140,000 Identifiable intangible assets - trade names (2) 550,000 270,000 820,000 Goodwill (3) 3,928,508 6,263,978 10,192,486 Other assets 6,532 — 6,532 Total assets acquired $ 26,789,217 $ 18,444,586 $ 45,233,803 Accounts payable and accrued liabilities $ 5,889,523 $ 2,063,443 $ 7,952,966 Long-term debt (4) 5,073,854 2,000,000 7,073,854 Deferred tax liability 3,038,825 1,406,020 4,444,845 Total liabilities assumed $ 14,002,202 $ 5,469,463 $ 19,471,665 Net assets acquired $ 12,787,015 $ 12,975,123 $ 25,762,138 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) Identifiable intangible assets were measured using a combination of income approaches. Trade names were valued using a "Relief-from-Royalty" method. Non-contractual customer relationships were valued using a "Multi-period excess earnings" method. Identifiable intangible assets will be amortized over 5 - 10 years. (3) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability based on the synergies expected to arise from the acquired entities. (4) Long-term debt assumed was paid off during the three months ended June 30, 2017. |
Business Acquisition, Pro Forma Information | Since the acquisition date, the businesses acquired have provided the following activity: 2017 SR Energy Cementing Revenues $ 1,692,239 $ 903,317 Net loss (a) (251,908 ) (422,295 ) a. Includes $503,997 and $512,656 in depreciation and amortization for SR Energy and Cementing, respectively. The following table presents unaudited pro forma information for the Company as if the acquisition of SR Energy and Cementing had occurred on January 1, 2016: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Revenues $ 18,333,453 $ 23,659,445 Net loss (1,612,175 ) (8,171,257 ) |
Chieftain Sand And Proppant, LLC | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | On the acquisition date, the $36,320,187 in cash consideration consisted of the following components: Total Property, plant and equipment (1) $ 23,372,800 Sand reserves (2) 20,910,000 Total assets acquired $ 44,282,800 Asset retirement obligation 1,732,081 Total liabilities assumed $ 1,732,081 Total allocation of purchase price $ 42,550,719 Bargain purchase price (3, 4) (6,230,532 ) Total purchase price $ 36,320,187 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) The fair value of the sand reserves was determined based on the excess cash flow method, a form of the income approach. The method provides a value based on the estimated remaining life of sand reserves, projected financial information and industry projections. (3) Amount reflected in Condensed Consolidated Statements of Comprehensive Loss reflected net of income taxes of $2,219,020 . (4) The fair value of the business was determined based on the excess cash flow method, a form of the income approach. |
Business Acquisition, Pro Forma Information | Since the acquisition date, the Chieftain Assets have provided the following activity: 2017 Piranha Revenues $ 1,311,768 Net loss (a) (206,644 ) a. Includes $429,821 in depreciation and amortization The following table presents unaudited pro forma information for the Company as if the acquisition of the Chieftain Assets had occurred as of January 1, 2016: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Revenues $ 1,311,768 $ 7,690,032 Net (loss) income (72,455 ) 34,127,344 |
Sturgeon Acquisitions LLC | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the carrying value of Sturgeon as of September 13, 2014, the date at which Sturgeon commenced operations with the acquisition of the Sturgeon subsidiaries: Sturgeon Cash and cash equivalents $ 705,638 Accounts receivable 7,587,298 Inventories 2,221,073 Other current assets 555,939 Property, plant and equipment 20,424,087 Sand reserves 57,420,000 Goodwill 2,683,727 Total assets acquired $ 91,597,762 Accounts payable and accrued liabilities $ 2,878,072 Total liabilities assumed $ 2,878,072 Net assets acquired $ 88,719,690 Allocation of purchase price Carrying value of sponsor's non-controlling interest prior to Sturgeon contribution $ 81,738,675 Deferred tax liability assumed (4,010,885 ) Members' equity conveyed $ 77,727,790 |
Higher Power | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The following table summarizes the fair value of Higher Power as of April 21, 2017: Higher Power Property, plant and equipment $ 1,743,600 Identifiable intangible assets - customer relationships 1,613,000 Goodwill (1) 643,400 Total assets acquired $ 4,000,000 Long-term debt and other liabilities $ 750,000 Total liabilities assumed $ 750,000 Net assets acquired $ 3,250,000 (1) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability expected to arise from the acquired entity. |
Business Acquisition, Pro Forma Information | Since the acquisition date, Higher Power has provided the following activity: 2017 Higher Power Revenues $ 1,709,277 Net loss (a) (286,959 ) a. Includes $340,333 in depreciation and amortization The following table presents unaudited pro forma information for the Company as if the acquisition of Higher Power had occurred as of January 1, 2016: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Revenues $ 4,481,260 $ 10,038,825 Net loss (411,237 ) (1,189,496 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of the Company's inventories is shown below: June 30, December 31, 2017 2016 Supplies $ 6,592,239 $ 4,020,670 Raw materials 149,845 75,971 Work in process — 205,450 Finished goods 3,574,616 1,822,110 Total inventory $ 10,316,700 $ 6,124,201 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment include the following: June 30, December 31, Useful Life 2017 2016 Land $ 11,316,910 $ 5,040,482 Land improvements 15 years or life of lease 9,324,179 3,640,976 Buildings 15-20 years 44,796,429 42,191,745 Buildings - dry plant facility 39 years 7,872,137 7,806,128 Buildings - wash plant facility 39 years 4,835,148 4,835,148 Drilling rigs and related equipment 3-15 years 149,676,740 138,526,519 Pressure pumping equipment 3-5 years 138,792,153 96,500,592 Coil tubing equipment 4-10 years 28,006,153 28,019,217 Rail improvements 10-20 years 5,962,779 4,276,928 Vehicles, trucks and trailers 5-10 years 43,233,579 33,140,599 Machinery and equipment 7-20 years 51,745,514 35,548,357 Other property and equipment 3-12 years 12,424,178 11,461,839 507,985,899 410,988,530 Deposits on equipment and equipment in process of assembly 26,817,262 9,427,307 534,803,161 420,415,837 Less: accumulated depreciation 207,722,997 178,296,174 Property, plant and equipment, net $ 327,080,164 $ 242,119,663 |
Schedule Of Depreciation, Depletion, Accretion And Amortization Expense | A summary of depreciation, depletion, accretion and amortization expense is outlined below: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Depreciation expense $ 17,229,471 $ 16,323,309 $ 32,196,269 $ 31,806,631 Accretion expense (see Note 2) 13,976 329 14,409 329 Depletion expense (see Note 2) 382,202 219,227 384,472 219,227 Amortization expense (see Note 6) 2,267,750 2,267,750 4,535,500 4,535,500 Depreciation, depletion, accretion and amortization $ 19,893,399 $ 18,810,615 $ 37,130,650 $ 36,561,687 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The Company had the following definite lived intangible assets recorded: June 30, December 31, 2017 2016 Customer relationships $ 35,798,000 $ 33,605,000 Trade names 8,490,000 7,110,000 Less: accumulated amortization - customer relationships 21,835,228 17,655,228 Less: accumulated amortization - trade names 1,848,443 1,492,943 Intangible assets, net $ 20,604,329 $ 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 $ 4,694,216 2018 8,541,434 2019 1,055,932 2020 1,055,932 2021 1,050,180 Thereafter 4,206,635 $ 20,604,329 |
Schedule of Goodwill | Changes in the goodwill for the year ended December 31, 2016 and the six months ended June 30, 2017 are set forth below: Balance, January 1, 2016 $ 88,726,875 Additions — Balance, December 31, 2016 88,726,875 Additions - 2017 Stingray Acquisition (Note 3) 10,192,486 Additions - Higher Power Acquisition (Note 3) 643,400 Balance, June 30, 2017 $ 99,562,761 |
Accrued Expenses and Other Cu30
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expense and other current liabilities included the following: June 30, December 31, 2017 2016 Accrued compensation, benefits and related taxes $ 3,670,536 $ 2,432,093 Financed insurance premiums 978,122 3,293,859 State & local taxes payable 920,566 319,597 Insurance reserves 1,491,300 971,351 Other 3,129,570 1,529,298 Total $ 10,190,094 $ 8,546,198 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax (benefit) expense attributable to the Company for the six months ended June 30, 2017 and 2016 , are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 U.S. current income tax (benefit) expense $ — $ (12,880 ) $ — $ (12,880 ) U.S. deferred income tax (benefit) expense (2,810,993 ) 9,786 (6,496,374 ) 9,786 Foreign current income tax expense 21,089 759,824 606,556 1,654,184 Foreign deferred income tax (benefit) expense (14,173 ) 32,645 (20,324 ) 32,645 Total $ (2,804,077 ) $ 789,375 $ (5,910,142 ) $ 1,683,735 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax amount to the recorded expense is as follows: Six Months Ended June 30, 2017 2016 Loss before income taxes, as reported $ (12,060,936 ) $ (30,084,571 ) Bargain purchase gain (4,011,512 ) — Loss before income taxes, as taxed (16,072,448 ) (30,084,571 ) Statutory income tax rate 35 % 35 % Expected income tax benefit (5,625,357 ) (10,529,600 ) Non-taxable entity — 12,685,647 Other permanent differences 60,231 21,535 State tax benefit (807,139 ) (3,301 ) Foreign tax credit (907,171 ) — Foreign earnings not in book income 1,542,732 — Foreign income tax rate differential (173,438 ) (497,438 ) Other — 6,892 Total $ (5,910,142 ) $ 1,683,735 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities attributable to the Company consisted of the following: June 30, December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,975,186 $ 1,892,761 Net operating loss carryforward 8,060,506 — Deferred stock compensation 1,716,754 1,686,671 Accrued liabilities 1,654,190 746,132 Other 1,331,091 1,785,999 Deferred tax assets 14,737,727 6,111,563 Deferred tax liabilities: Property and equipment $ (55,624,122 ) $ (42,525,793 ) Intangible assets (6,784,966 ) (7,662,590 ) Unrepatriated foreign earnings (4,575,485 ) (3,451,110 ) Other (60,302 ) (142,859 ) Deferred tax liabilities (67,044,875 ) (53,782,352 ) Net deferred tax liability $ (52,307,148 ) $ (47,670,789 ) Reflected in accompanying balance sheet as: Deferred income taxes $ (52,307,148 ) $ (47,670,789 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Unit | 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic loss per share: Allocation of earnings: Net loss $ (1,169,515 ) $ (8,403,337 ) $ (6,150,794 ) $ (31,768,306 ) Weighted average common shares outstanding 39,500,000 30,000,000 38,505,525 30,000,000 Basic loss per share $ (0.03 ) $ (0.28 ) $ (0.16 ) $ (1.06 ) Diluted loss per share: Allocation of earnings: Net loss $ (1,169,515 ) $ (8,403,337 ) $ (6,150,794 ) $ (31,768,306 ) Weighted average common shares, including dilutive effect (a) 39,500,000 30,000,000 38,505,525 30,000,000 Diluted loss per share $ (0.03 ) $ (0.28 ) $ (0.16 ) $ (1.06 ) 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. A reconciliation of the components of pro forma basic and diluted earnings per common share is presented in the table below: Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Pro Forma C Corporation Data (unaudited): Net loss, as reported $ (7,613,962 ) $ (30,084,571 ) Pro forma benefit for income taxes (2,342,467 ) (3,287,051 ) Pro forma net loss $ (5,271,495 ) $ (26,797,520 ) Basic loss per share: Allocation of earnings: Net loss $ (5,271,495 ) $ (26,797,520 ) Weighted average common shares outstanding 37,500,000 37,500,000 Basic loss per share $ (0.14 ) $ (0.71 ) Diluted loss per share: Allocation of earnings: Net loss $ (5,271,495 ) $ (26,797,520 ) Weighted average common shares, including dilutive effect (a) 37,500,000 37,500,000 Diluted loss per share $ (0.14 ) $ (0.71 ) (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) | 6 Months Ended |
Jun. 30, 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 390,587 21.19 Vested (2,233 ) (17.42 ) Forfeited (8,888 ) (15.00 ) Unvested shares as of June 30, 2017 662,246 $ 18.63 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | REVENUES ACCOUNTS RECEIVABLE Three Months Ended June 30, Six Months Ended June 30, At June 30, At December 31, 2017 2016 2017 2016 2017 2016 Pressure Pumping and Gulfport (a) $ 41,099,441 $ 38,165,558 $ 72,845,391 $ 38,165,558 $ 28,596,696 $ 19,094,509 Muskie and Gulfport (b) 13,605,124 9,313,266 25,145,543 11,231,344 8,151,536 5,373,007 Panther Drilling and Gulfport (c) 951,439 769,147 1,993,816 1,221,022 1,016,589 1,434,036 Cementing and Gulfport (d) 903,317 — 903,317 — 1,767,432 — SR Energy and Gulfport (e) 1,565,211 — 1,565,211 — 6,011,500 — Lodging and Grizzly (f) 261 17 525 572 283 274 Bison Drilling and El Toro (g) — — — 371,873 — — Panther Drilling and El Toro (g) — 1,449 — 171,619 — — Bison Trucking and El Toro (g) — — — 130,000 — — White Wing and El Toro (g) — — — 20,431 — — Energy Services and El Toro (h) 34,100 249,193 157,745 249,193 35,853 108,386 White Wing and Diamondback (i) — — — 1,650 — — Coil Tubing and El Toro (j) — 318,694 — 318,694 — — Panther and DBDHT (k) 8,474 — 13,689 — 11,972 100,450 Consolidated and 2017 Stingray Companies (l) 40,516 — 84,722 — — 1,363,056 Other Relationships — — — — 95,124 115,565 $ 58,207,883 $ 48,817,324 $ 102,709,959 $ 51,881,956 $ 45,686,985 $ 27,589,283 a. Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport, dedicating two spreads and related equipment for the performance of these services. 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. Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. d. Cementing performs well cementing services for Gulfport. e. SR Energy performs rental services for Gulfport. f. Lodging provides remote accommodation and food services to Grizzly, an entity owned approximately 75% by affiliates of Wexford and approximately 25% by Gulfport. g. The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. h. Energy Services performs completion and production services for El Toro pursuant to a master service agreement. i. White Wing provides rental services to Diamondback. j. Coil Tubing provides to El Toro services in connection with completion and drilling activities. k. Panther provides services and materials to DBDHT. l. The Company provided certain services to the 2017 Stingray Companies. COST OF REVENUE ACCOUNTS PAYABLE Three Months Ended June 30, Six Months Ended June 30, At June 30, At December 31, 2017 2016 2017 2016 2017 2016 Panther and DBDHT (a) $ 58 $ 2,444 $ 127,778 $ 48,998 $ — $ — Bison Trucking and Diamondback (b) 28,390 42,331 66,522 83,958 — — Energy Services and Elk City Yard (c) 26,700 26,700 53,400 53,400 — — Lodging and Dunvegan (d) — 2,453 — 2,453 — 3,199 Bison Trucking and El Toro (e) — 5,000 — 5,000 — — Consolidated and 2017 Stingray Companies (f) 207,044 1,563 444,409 3,728 — 174,145 $ 262,192 $ 80,491 $ 692,109 $ 197,537 $ — $ 177,344 SELLING, GENERAL AND ADMINISTRATIVE COSTS Consolidated and Everest (g) $ 49,804 $ 63,431 $ 108,117 $ 135,755 $ 23,818 $ 12,668 Consolidated and Wexford (h) 164,414 100,336 398,294 136,257 50,185 13,197 Mammoth and Orange Leaf (i) 16,276 53,331 45,786 53,331 — — Mammoth and Caliber (j) 71,998 — 71,998 — 43,608 — Sand Tiger and Grizzly (k) 4,047 — 4,047 — 1,820 — Lodging and Dunvegan (d) 91 — 2,642 — 752 — $ 306,630 $ 217,098 $ 630,884 $ 325,343 $ 120,183 $ 25,865 $ 120,183 $ 203,209 a. Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. b. Bison Trucking leased office space from Diamondback in Midland, Texas. c. Energy Services leases property from Elk City Yard. d. Dunvegan provides technical and administrative services and pays for goods and services on behalf of the Company. e. Bison Trucking leases space from El Toro for storage of a rig. f. Prior to the 2017 Stingray Acquisition, the 2017 Stingray Companies provided certain services to the Company and, from time to time, the 2017 Stingray Companies paid for goods and services on behalf of the Company. g. 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. h. 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. i. Orange Leaf leases office space to Mammoth. j. Caliber leases office space to Mammoth. k. Grizzly provides certain administrative and analytical services to the Company. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Aggregate future minimum payments under these obligations in effect at June 30, 2017 are as follows: Year ended December 31: Operating Leases Capital Spend Commitments Minimum Purchase Commitments Remainder of 2017 $ 5,486,024 $ 22,730,189 $ 6,689,581 2018 9,177,272 — 10,866,000 2019 8,075,402 — 10,866,000 2020 5,597,885 — — 2021 2,645,182 — — Thereafter 3,721,249 — — $ 34,703,014 $ 22,730,189 $ 28,421,581 |
Schedule of Future Minimum Rental Payments for Operating Leases | Aggregate future minimum payments under these obligations in effect at June 30, 2017 are as follows: Year ended December 31: Operating Leases Capital Spend Commitments Minimum Purchase Commitments Remainder of 2017 $ 5,486,024 $ 22,730,189 $ 6,689,581 2018 9,177,272 — 10,866,000 2019 8,075,402 — 10,866,000 2020 5,597,885 — — 2021 2,645,182 — — Thereafter 3,721,249 — — $ 34,703,014 $ 22,730,189 $ 28,421,581 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, 2017 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers $ 17,508,098 $ 8,796,654 $ 13,767,088 $ 21,215,222 $ 9,231,059 $ 70,518,121 Revenue from related parties $ 72,868,938 $ 2,687,448 $ 25,145,543 $ 2,007,505 $ 525 $ 102,709,959 Cost of revenue $ 64,533,809 $ 10,436,065 $ 32,581,324 $ 22,986,579 $ 5,300,163 $ 135,837,940 Selling, general and administrative expenses $ 4,179,665 $ 1,698,503 $ 4,473,436 $ 2,728,778 $ 1,356,122 $ 14,436,504 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 21,663,562 $ (650,466 ) $ 1,857,871 $ (2,492,630 ) $ 2,575,299 $ 22,953,636 Other expense (income) $ 6,389 $ (1,991 ) $ 153,776 $ 224,236 $ 4,232 $ 386,642 Bargain purchase gain $ — $ — $ (4,011,512 ) $ — $ — $ (4,011,512 ) Interest expense (income) $ 431,795 $ (108,376 ) $ 485,239 $ 657,058 $ 43,076 $ 1,508,792 Depreciation, depletion, accretion and amortization $ 18,784,446 $ 3,428,162 $ 3,568,659 $ 9,942,310 $ 1,407,073 $ 37,130,650 Income tax (benefit) provision $ — $ (6,500,514 ) $ 8,502 $ — $ 581,870 $ (5,910,142 ) Net income (loss) $ 2,440,932 $ 2,532,253 $ 1,653,207 $ (13,316,234 ) $ 539,048 $ (6,150,794 ) Total expenditures for property, plant and equipment $ 53,401,909 $ 344,474 $ 2,969,883 $ 5,900,817 $ 3,958,636 $ 66,575,719 Three Months Ended June 30, 2017 Revenue from external customers $ 8,816,451 $ 5,606,522 $ 10,395,025 $ 11,511,825 $ 3,724,353 $ 40,054,176 Revenue from related parties $ 41,108,032 $ 2,534,553 $ 13,605,124 $ 959,913 $ 261 $ 58,207,883 Cost of revenue $ 35,826,369 $ 6,636,289 $ 19,974,059 $ 12,033,156 $ 2,870,081 $ 77,339,954 Selling, general and administrative expenses $ 2,404,739 $ 726,098 $ 2,415,883 $ 1,433,754 $ 719,232 $ 7,699,706 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 11,693,375 $ 778,688 $ 1,610,207 $ (995,172 ) $ 135,301 $ 13,222,399 Other expense (income) $ 3,758 $ (3,173 ) $ 139,569 $ 60,451 $ 1,891 $ 202,496 Bargain purchase gain $ — $ — $ (4,011,512 ) $ — $ — $ (4,011,512 ) Interest expense (income) $ 303,351 $ (2,474 ) $ 352,600 $ 439,876 $ 18,255 $ 1,111,608 Depreciation, depletion, accretion and amortization $ 9,626,553 $ 2,219,921 $ 2,205,694 $ 4,973,682 $ 867,549 $ 19,893,399 Income tax (benefit) provision $ — $ (2,808,982 ) $ 8,502 $ — $ (3,597 ) $ (2,804,077 ) Net income (loss) $ 1,759,713 $ 1,373,396 $ 2,915,354 $ (6,469,181 ) $ (748,797 ) $ (1,169,515 ) Total expenditures for property, plant and equipment $ 24,736,600 $ 344,474 $ 2,795,370 $ 3,631,540 $ 3,958,043 $ 35,466,027 At June 30, 2017 Goodwill $ 86,043,147 $ 10,192,486 $ 2,683,727 $ — $ 643,400 $ 99,562,761 Intangible assets, net $ 16,913,308 $ 2,078,021 $ — $ — $ 1,613,000 $ 20,604,329 Total assets $ 244,665,648 $ 83,026,472 $ 163,911,495 $ 98,203,014 $ 37,110,946 $ 626,917,575 Completion and Production Six Months Ended June 30, 2016 Pressure Pumping Services Well Services Sand Drilling Other Energy Services Total Revenue from external customers $ 18,157,113 $ 4,360,611 $ 2,976,443 $ 9,715,833 $ 14,653,537 $ 49,863,537 Revenue from related parties $ 38,165,558 $ 567,887 $ 11,231,344 $ 1,916,595 $ 572 $ 51,881,956 Cost of revenue $ 40,083,680 $ 6,962,055 $ 16,432,367 $ 12,968,054 $ 6,448,663 $ 82,894,819 Selling, general and administrative expenses $ 2,065,542 $ 1,013,478 $ 2,109,803 $ 2,567,237 $ 1,063,952 $ 8,820,012 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 14,173,449 $ (3,047,035 ) $ (4,334,383 ) $ (3,902,863 ) $ 7,141,494 $ 10,030,662 Other expense (income) $ 23,825 $ (673,145 ) $ 72,985 $ (57,574 ) $ 8,183 $ (625,726 ) Interest expense (income) $ 368,764 $ 149,095 $ 211,111 $ 1,554,207 $ 25,210 $ 2,308,387 Depreciation, depletion, accretion and amortization $ 18,913,487 $ 2,670,222 $ 2,949,851 $ 10,945,932 $ 1,082,195 $ 36,561,687 Impairment of long-lived assets $ 138,587 $ 1,384,751 $ — $ 347,547 $ — $ 1,870,885 Income tax (benefit) provision $ — $ (3,094 ) $ — $ — $ 1,686,829 $ 1,683,735 Net (loss) income $ (5,271,214 ) $ (6,574,864 ) $ (7,568,330 ) $ (16,692,975 ) $ 4,339,077 $ (31,768,306 ) Total expenditures for property, plant and equipment $ 927,542 $ 247,829 $ 157,726 $ 423,095 $ 418,017 $ 2,174,209 Three Months Ended June 30, 2016 Revenue from external customers $ 5,862,584 $ 1,662,019 $ 1,694,698 $ 4,458,095 $ 6,667,914 $ 20,345,310 Revenue from related parties $ 38,165,558 $ 567,887 $ 9,313,266 $ 770,596 $ 17 $ 48,817,324 Cost of revenue $ 28,551,790 $ 3,034,349 $ 10,251,613 $ 5,759,398 $ 2,906,493 $ 50,503,643 Selling, general and administrative expenses $ 1,539,371 $ 440,182 $ 1,508,533 $ 1,264,763 $ 453,289 $ 5,206,138 Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization $ 13,936,981 $ (1,244,625 ) $ (752,182 ) $ (1,795,470 ) $ 3,308,149 $ 13,452,853 Other expense (income) $ 43,033 $ (682,545 ) $ 53,803 $ (47,500 ) $ 6,493 $ (626,716 ) Interest expense (income) $ 131,709 $ 50,776 $ 106,650 $ 701,633 $ 21,263 $ 1,012,031 Depreciation, depletion, accretion and amortization $ 9,958,270 $ 1,272,715 $ 1,581,334 $ 5,438,551 $ 559,745 $ 18,810,615 Impairment of long-lived assets $ 138,587 $ 1,384,751 $ — $ 347,547 $ — $ 1,870,885 Income tax (benefit) provision $ — $ (3,094 ) $ — $ — $ 792,469 $ 789,375 Net income (loss) $ 3,665,382 $ (3,267,228 ) $ (2,493,969 ) $ (8,235,701 ) $ 1,928,179 $ (8,403,337 ) Total expenditures for property, plant and equipment $ 896,847 $ 247,829 $ 65,184 $ 158,924 $ 270,386 $ 1,639,170 At June 30, 2016 Goodwill $ 86,043,148 $ — $ 2,683,727 $ — $ — $ 88,726,875 Intangible assets, net $ 25,956,808 $ 145,521 $ — $ — $ — $ 26,102,329 Total assets $ 209,357,385 $ 41,178,159 $ 114,090,998 $ 105,556,115 $ 35,639,200 $ 505,821,857 |
Organization and Basis of Pre37
Organization and Basis of Presentation (Details) - USD ($) | Jun. 05, 2017 | May 26, 2017 | May 24, 2017 | Oct. 19, 2016 | Nov. 24, 2014 |
Operating Entities | |||||
Business Acquisition [Line Items] | |||||
Shares issued in acquisition (in shares) | 20,000,000 | ||||
Stingray Entities | |||||
Business Acquisition [Line Items] | |||||
Shares issued in acquisition (in shares) | 10,000,000 | ||||
Chieftain Sand And Proppant, LLC | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 36,300,000 | $ 36,320,187 | |||
Sturgeon LLC and Stingray Acquisition | |||||
Business Acquisition [Line Items] | |||||
Shares issued in acquisition (in shares) | 7,000,000 | ||||
IPO | |||||
Business Acquisition [Line Items] | |||||
Shares issued (in shares) | 7,750,000 | ||||
Sale of stock, price per share (in USD per share) | $ 15 | ||||
Proceeds from issuance initial public offering | $ 103,100,000 | ||||
IPO | Mammoth Holdings, Gulfport and Rhino | |||||
Business Acquisition [Line Items] | |||||
Shares issued (in shares) | 250,000 | ||||
Over-Allotment Option | |||||
Business Acquisition [Line Items] | |||||
Shares issued (in shares) | 7,500,000 |
Organization and Basis of Pre38
Organization and Basis of Presentation - Schedule of Ownership (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 44,500,000 | 37,500,000 |
% Ownership | 100.00% | 100.00% |
Mammoth Holdings | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 25,009,319 | 20,443,903 |
% Ownership | 56.20% | 54.50% |
Gulfport | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 11,171,887 | 9,073,750 |
% Ownership | 25.10% | 24.20% |
Rhino | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 568,794 | 232,347 |
% Ownership | 1.30% | 0.60% |
Outstanding shares owned by related parties | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 36,750,000 | 29,750,000 |
% Ownership | 82.60% | 79.30% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) CAD in Millions | Jun. 30, 2017CAD |
Accounting Policies [Abstract] | |
Cash | CAD 3.1 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Balance, Period Start | $ 5,376,916 | $ 4,011,882 | $ 4,011,882 | ||
Additions charged to expense | 18,980 | [1] | $ 1,764,218 | [2] | 1,968,001 |
Deductions for uncollectible receivables written off | (602,967) | ||||
Additions other | 178,871 | ||||
Balance, Period End | $ 5,574,767 | $ 5,376,916 | |||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | [2] | ||
Property, Plant and Equipment [Line Items] | ||||
Amortization of coil tubing strings | $ 1,045,233 | [1] | $ 962,302 | |
Coil Tubing Strings | ||||
Property, Plant and Equipment [Line Items] | ||||
Inventory useful life (no longer than) | 12 months | |||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Long-Lived Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||
Impairment of long-lived assets | $ 0 | $ 1,870,885 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||
Goodwill, impairment loss | $ 0 | $ 0 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Asset Retirement Obligation | $ 259,804 | [1] | $ 94,904 | |
Accretion expense | 14,409 | 164,900 | ||
Additions - Chieftain Acquisition (Note 3) | 1,732,081 | |||
Asset Retirement Obligation | $ 2,006,294 | [2] | $ 259,804 | [1] |
[1] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | |||
[2] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Amortizable Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||
Impairment of intangible assets (excluding goodwill) | $ 0 | $ 0 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2016 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from insurance settlement, operating activities | $ 918,963 | |||
Accounts receivable, net | 30,414,421 | [1] | $ 21,169,579 | [2] |
Unbilled Revenues | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, net | 3,017,892 | 2,732,993 | ||
Accounts receivable, related parties | $ 13,662,077 | $ 10,506,958 | ||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||
Effective income tax rate reconciliation, percent | 36.80% | |
Unrecognized tax benefits | $ 0 | $ 0 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Customer | Trade Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 60.00% | 58.00% | |
Related Party Customer | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 59.00% | 50.00% | |
One Third Party Customer | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Second Third-Party Customer | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% |
Acquisitions - Stingray Acquisi
Acquisitions - Stingray Acquisition Narrative (Details) | Jun. 05, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | May 12, 2017agreement | Dec. 31, 2016$ / shares |
Business Acquisition [Line Items] | ||||
Number of contribution agreements entered into | agreement | 2 | |||
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Stingray Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Issuance of common stock | $ | $ 1,392,548 | |||
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.01 | |||
Business acquisition, share price (in USD per share) | $ / shares | $ 18.50 | |||
Purchase price | $ | $ 25,762,138 | |||
Transaction related costs expensed | $ | $ 200,000 |
Acquisitions - Consideration Tr
Acquisitions - Consideration Transferred Stingray Acquisition (Details) | Jun. 05, 2017USD ($) |
Cementing | |
Business Acquisition [Line Items] | |
Purchase price | $ 12,975,123 |
SR Energy | |
Business Acquisition [Line Items] | |
Purchase price | 12,787,015 |
Stingray Acquisitions | |
Business Acquisition [Line Items] | |
Purchase price | $ 25,762,138 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed, Stingray (Details) - USD ($) | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 05, 2017 | Dec. 31, 2016 | [2] | Jun. 30, 2016 | Dec. 31, 2015 | ||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 99,562,761 | [1] | $ 88,726,875 | $ 88,726,875 | $ 88,726,875 | ||
Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life (in years) | 4 years 6 months 23 days | ||||||
Trade names | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life (in years) | 8 years 9 months 12 days | ||||||
SR Energy | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 1,611,791 | ||||||
Accounts receivable, net | 3,912,322 | ||||||
Receivables from related parties | 3,683,892 | ||||||
Inventories | 0 | ||||||
Prepaid expenses | 35,322 | ||||||
Property, plant and equipment | 13,060,850 | ||||||
Goodwill | 3,928,508 | ||||||
Other assets | 6,532 | ||||||
Total assets acquired | 26,789,217 | ||||||
Accounts payable and accrued liabilities | 5,889,523 | ||||||
Long-term debt | 5,073,854 | ||||||
Deferred tax liability | 3,038,825 | ||||||
Total liabilities assumed | 14,002,202 | ||||||
Net assets acquired | 12,787,015 | ||||||
SR Energy | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 0 | ||||||
SR Energy | Trade names | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 550,000 | ||||||
Cementing | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 1,059,767 | ||||||
Accounts receivable, net | 495,222 | ||||||
Receivables from related parties | 1,418,616 | ||||||
Inventories | 306,081 | ||||||
Prepaid expenses | 31,980 | ||||||
Property, plant and equipment | 7,458,942 | ||||||
Goodwill | 6,263,978 | ||||||
Other assets | 0 | ||||||
Total assets acquired | 18,444,586 | ||||||
Accounts payable and accrued liabilities | 2,063,443 | ||||||
Long-term debt | 2,000,000 | ||||||
Deferred tax liability | 1,406,020 | ||||||
Total liabilities assumed | 5,469,463 | ||||||
Net assets acquired | 12,975,123 | ||||||
Cementing | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 1,140,000 | ||||||
Cementing | Trade names | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 270,000 | ||||||
Stingray Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 2,671,558 | ||||||
Accounts receivable, net | 4,407,544 | ||||||
Receivables from related parties | 5,102,508 | ||||||
Inventories | 306,081 | ||||||
Prepaid expenses | 67,302 | ||||||
Property, plant and equipment | 20,519,792 | ||||||
Goodwill | 10,192,486 | ||||||
Other assets | 6,532 | ||||||
Total assets acquired | 45,233,803 | ||||||
Accounts payable and accrued liabilities | 7,952,966 | ||||||
Long-term debt | 7,073,854 | ||||||
Deferred tax liability | 4,444,845 | ||||||
Total liabilities assumed | 19,471,665 | ||||||
Net assets acquired | 25,762,138 | ||||||
Stingray Acquisitions | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 1,140,000 | ||||||
Stingray Acquisitions | Trade names | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 820,000 | ||||||
Minimum | Stingray Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life (in years) | 5 years | ||||||
Maximum | Stingray Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life (in years) | 10 years | ||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Acquisitions - Pro Forma Stingr
Acquisitions - Pro Forma Stingray Acquisitions (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Stingray Acquisitions | ||
Business Acquisition [Line Items] | ||
Revenues | $ 18,333,453 | $ 23,659,445 |
Net (loss) income | (1,612,175) | $ (8,171,257) |
SR Energy | ||
Business Acquisition [Line Items] | ||
Revenues | 1,692,239 | |
Net loss | (251,908) | |
Depreciation | 503,997 | |
Cementing | ||
Business Acquisition [Line Items] | ||
Revenues | 903,317 | |
Net loss | (422,295) | |
Depreciation | $ 512,656 |
Acquisitions - Chieftain Acquis
Acquisitions - Chieftain Acquisition Narrative (Details) - Chieftain Sand And Proppant, LLC - USD ($) | May 26, 2017 | May 24, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||
Purchase price | $ 36,300,000 | $ 36,320,187 | |
Transaction related costs expensed | $ 700,000 |
Acquisitions - Schedule of As54
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed Chieftrain Sand and Proppant LLC (Details) - USD ($) | May 26, 2017 | May 24, 2017 | Jun. 30, 2017 | [1] | Jun. 30, 2016 | [2] | Jun. 30, 2017 | [1],[3] | Jun. 30, 2016 | [2],[4] |
Business Acquisition [Line Items] | ||||||||||
Bargain purchase gain | $ (4,011,512) | $ 0 | $ (4,011,512) | $ 0 | ||||||
Chieftain Sand And Proppant, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Property, plant and equipment | $ 23,372,800 | |||||||||
Sand reserves | 20,910,000 | |||||||||
Total assets acquired | 44,282,800 | |||||||||
Asset retirement obligation | 1,732,081 | |||||||||
Total liabilities assumed | 1,732,081 | |||||||||
Net assets acquired | 42,550,719 | |||||||||
Bargain purchase gain | (6,230,532) | |||||||||
Total purchase price | $ 36,300,000 | 36,320,187 | ||||||||
Bargain purchase, gain recognized, tax amount | $ 2,219,020 | |||||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | |||||||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information Chieftain Sand and Proppant LLC (Details) - Chieftain Sand And Proppant, LLC - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Revenues | $ 1,311,768 | |
Net loss | (206,644) | |
Depreciation | 429,821 | |
Revenues | 1,311,768 | $ 7,690,032 |
Net (loss) income | $ (72,455) | $ 34,127,344 |
Acquisitions - Narrative Sturge
Acquisitions - Narrative Sturgeon Acquisitions (Details) - USD ($) | Jun. 05, 2017 | Sep. 13, 2014 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 | ||
Sturgeon Acquisitions LLC | ||||
Business Acquisition [Line Items] | ||||
Issuance of common stock | $ 5,607,452 | $ 77,727,790 | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | |||
Business acquisition, share price (in USD per share) | $ 18.50 | |||
Purchase price | $ 103,737,862 | |||
Transaction related costs expensed | $ 1,200,000 |
Acquisitions - Schedule of As57
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed, Sturgeon Acquisition (Details) - USD ($) | Jun. 05, 2017 | Sep. 13, 2014 | Jun. 30, 2017 | [1] | Dec. 31, 2016 | [2] | Jun. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 99,562,761 | $ 88,726,875 | $ 88,726,875 | $ 88,726,875 | ||||
Sturgeon Acquisitions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | $ 705,638 | |||||||
Accounts receivable, net | 7,587,298 | |||||||
Inventories | 2,221,073 | |||||||
Other current assets | 555,939 | |||||||
Property, plant and equipment | 20,424,087 | |||||||
Sand reserves | 57,420,000 | |||||||
Goodwill | 2,683,727 | |||||||
Total assets acquired | 91,597,762 | |||||||
Accounts payable and accrued liabilities | 2,878,072 | |||||||
Total liabilities assumed | 2,878,072 | |||||||
Net assets acquired | 88,719,690 | |||||||
Allocation of purchase price | ||||||||
Carrying value of sponsor's non-controlling interest prior to Sturgeon contribution | 81,738,675 | |||||||
Deferred tax liability assumed | (4,010,885) | |||||||
Members' equity conveyed | $ 5,607,452 | $ 77,727,790 | ||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Acquisitions - Acquisition of H
Acquisitions - Acquisition of Higher Power Narrative (Details) - USD ($) | Apr. 21, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | [2] | |
Business Acquisition [Line Items] | |||||
Cash paid to acquire a business | $ 39,570,187 | [1] | $ 0 | ||
Higher Power | |||||
Business Acquisition [Line Items] | |||||
Cash paid to acquire a business | $ 3,250,000 | ||||
Business combination, contingent consideration, liability | $ 750,000 | ||||
Business combination, contingent consideration, payment term | 3 years | ||||
Transaction related costs expensed | $ 100,000 | ||||
Accrued Liabilities | Higher Power | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability | $ 250,000 | ||||
Other Liabilities | Higher Power | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability | $ 500,000 | ||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Acquisitions - Schedule of As59
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed. High Power Acquisition (Details) - USD ($) | Jun. 30, 2017 | [1] | Apr. 21, 2017 | Dec. 31, 2016 | [2] | Jun. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 99,562,761 | $ 88,726,875 | $ 88,726,875 | $ 88,726,875 | |||
Higher Power | |||||||
Business Acquisition [Line Items] | |||||||
Property, plant and equipment | $ 1,743,600 | ||||||
Goodwill | 643,400 | ||||||
Total assets acquired | 4,000,000 | ||||||
Long-term debt | 750,000 | ||||||
Total liabilities assumed | 750,000 | ||||||
Net assets acquired | 3,250,000 | ||||||
Customer relationships | Higher Power | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets - customer relationships | $ 1,613,000 | ||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Acquisitions - Pro Forma Info60
Acquisitions - Pro Forma Information High Power Acquisition (Details) - Higher Power - USD ($) | Apr. 21, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Revenues | $ 1,709,277 | ||
Net loss | (286,959) | ||
Depreciation | $ 340,333 | ||
Revenues | $ 4,481,260 | $ 10,038,825 | |
Net loss | $ (411,237) | $ (1,189,496) |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | ||
Inventory Disclosure [Abstract] | ||||
Supplies | $ 6,592,239 | $ 4,020,670 | ||
Raw materials | 149,845 | 75,971 | ||
Work in process | 0 | 205,450 | ||
Finished goods | 3,574,616 | 1,822,110 | ||
Total inventory | $ 10,316,700 | [1] | $ 6,124,201 | [2] |
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Property, Plant and Equipment62
Property, Plant and Equipment (Details) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | $ 507,985,899 | $ 410,988,530 | ||||
Deposits on equipment and equipment in process of assembly | 26,817,262 | 9,427,307 | ||||
Property, plant and equipment, gross | 534,803,161 | 420,415,837 | ||||
Less: accumulated depreciation | 207,722,997 | 178,296,174 | ||||
Property, plant and equipment, net | 327,080,164 | [1] | 242,119,663 | [2] | ||
Proceeds from disposal of property and equipment | 780,932 | [3] | $ 3,165,519 | [4] | ||
Gain (loss) on disposal of property and equipment | (127,153) | [3] | 710,046 | [4] | ||
Land | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | $ 11,316,910 | 5,040,482 | ||||
Land improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful Life | 15 years | |||||
Property, plant, and equipment | $ 9,324,179 | 3,640,976 | ||||
Buildings | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | $ 44,796,429 | 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 | |||||
Buildings - dry plant facility | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful Life | 39 years | |||||
Property, plant, and equipment | $ 7,872,137 | 7,806,128 | ||||
Buildings - wash plant facility | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful Life | 39 years | |||||
Property, plant, and equipment | $ 4,835,148 | 4,835,148 | ||||
Drilling rigs and related equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | 149,676,740 | 138,526,519 | ||||
Proceeds from disposal of property and equipment | 347,844 | $ 0 | ||||
Gain (loss) on disposal of property and equipment | $ 221,779 | |||||
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 | $ 138,792,153 | 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 | |||||
Rail improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | $ 5,962,779 | 4,276,928 | ||||
Rail improvements | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful Life | 10 years | |||||
Rail improvements | 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 | $ 43,233,579 | 33,140,599 | ||||
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 | |||||
Machinery and equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | $ 51,745,514 | 35,548,357 | ||||
Machinery and equipment | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful Life | 7 years | |||||
Machinery and equipment | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful Life | 20 years | |||||
Other property and equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment | $ 12,424,178 | $ 11,461,839 | ||||
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 | |||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | |||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Depreciation, Amortization, Accretion, and Depletion (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Property, Plant and Equipment [Abstract] | ||||||||
Depreciation expense | $ 17,229,471 | $ 16,323,309 | $ 32,196,269 | $ 31,806,631 | ||||
Accretion expense (see Note 2) | 13,976 | 329 | 14,409 | 329 | ||||
Depletion expense (see Note 2) | 382,202 | 219,227 | 384,472 | 219,227 | ||||
Amortization expense (see Note 6) | 2,267,750 | 2,267,750 | 4,535,500 | 4,535,500 | ||||
Depreciation, depletion, accretion and amortization | $ 19,893,399 | [1] | $ 18,810,615 | [2] | $ 37,130,650 | [1] | $ 36,561,687 | [2] |
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Definite Lived Intangible Assets (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 20,604,329 | $ 21,566,829 | $ 26,102,329 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 35,798,000 | 33,605,000 | |||
Less: accumulated amortization | 21,835,228 | 17,655,228 | |||
Intangible assets, net | 13,962,772 | [1] | 15,949,772 | [2] | |
Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 8,490,000 | 7,110,000 | |||
Less: accumulated amortization | $ 1,848,443 | $ 1,492,943 | |||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | [2] | Dec. 31, 2015 | |||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Amortization | $ 2,267,750 | $ 2,267,750 | $ 4,535,500 | $ 4,535,500 | |||||
Goodwill | $ 99,562,761 | [1] | $ 88,726,875 | $ 99,562,761 | [1] | $ 88,726,875 | $ 88,726,875 | $ 88,726,875 | |
Customer relationships | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible asset, useful life (in years) | 4 years 6 months 23 days | ||||||||
Trade names | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible asset, useful life (in years) | 10 years | ||||||||
Finite-lived intangible asset, useful life (in years) | 8 years 9 months 12 days | ||||||||
Minimum | Customer relationships | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible asset, useful life (in years) | 4 years | ||||||||
Maximum | Customer relationships | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Finite-lived intangible asset, useful life (in years) | 10 years | ||||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Aggregated Expected Amortization Expense (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remainder of 2017 | $ 4,694,216 | ||
2,018 | 8,541,434 | ||
2,019 | 1,055,932 | ||
2,020 | 1,055,932 | ||
2,021 | 1,050,180 | ||
Thereafter | 4,206,635 | ||
Intangible assets, net | $ 20,604,329 | $ 21,566,829 | $ 26,102,329 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Schedule Of Changes in Goodwill (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 05, 2017 | Apr. 21, 2017 | Jun. 30, 2016 | Dec. 31, 2015 | |||
Goodwill [Roll Forward] | ||||||||
Goodwill | $ 99,562,761 | [1] | $ 88,726,875 | [2] | ||||
Additions | 0 | |||||||
Goodwill | 99,562,761 | [1] | $ 88,726,875 | [2] | $ 88,726,875 | $ 88,726,875 | ||
Stingray Acquisitions | ||||||||
Goodwill [Roll Forward] | ||||||||
Additions | 10,192,486 | |||||||
Goodwill | $ 10,192,486 | |||||||
Higher Power | ||||||||
Goodwill [Roll Forward] | ||||||||
Additions | $ 643,400 | |||||||
Goodwill | $ 643,400 | |||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Accrued Expenses and Other Cu68
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | ||
Payables and Accruals [Abstract] | ||||
Accrued compensation, benefits and related taxes | $ 3,670,536 | $ 2,432,093 | ||
Financed insurance premiums | 978,122 | 3,293,859 | ||
State & local taxes payable | 920,566 | 319,597 | ||
Insurance reserves | 1,491,300 | 971,351 | ||
Other | 3,129,570 | 1,529,298 | ||
Total | $ 10,190,094 | [1] | $ 8,546,198 | [2] |
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Accrued Expenses and Other Cu69
Accrued Expenses and Other Current Liabilities - Narrative (Details) | 6 Months Ended |
Jun. 30, 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) | Nov. 25, 2014USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 24, 2014USD ($) | ||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility | $ 65,000,000 | [1] | $ 0 | [2] | ||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 170,000,000 | |||||
Line of credit facility | 65,000,000 | |||||
Remaining borrowing capacity | $ 104,664,874 | $ 146,181,002 | ||||
Maximum leverage ratio | 4 | |||||
Debt covenant, minimum availability required | $ 10,000,000 | |||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Increments of debt that can be converted | $ 500,000 | |||||
Line of credit facility | $ 57,000,000 | |||||
Debt instrument, interest rate, stated percentage | 3.72% | |||||
Base Rate | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 5.75% | |||||
Line of credit facility | $ 8,000,000 | |||||
Minimum | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest coverage rate | 3 | |||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 3.00% | |||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Income Tax Disclosure [Abstract] | ||||||||
U.S. current income tax expense (benefit) | $ 0 | $ (12,880) | $ 0 | $ (12,880) | ||||
U.S. deferred income tax (benefit) expense | (2,810,993) | 9,786 | (6,496,374) | 9,786 | ||||
Foreign current income tax expense | 21,089 | 759,824 | 606,556 | 1,654,184 | ||||
Foreign deferred income tax (benefit) expense | (14,173) | 32,645 | (20,324) | 32,645 | ||||
Provision (benefit) for income taxes | $ (2,804,077) | [1] | $ 789,375 | [2] | $ (5,910,142) | [1] | $ 1,683,735 | [2] |
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Reconciliation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | [1] | Jun. 30, 2016 | [2] | Jun. 30, 2017 | Jun. 30, 2016 | |||
Income Tax Disclosure [Abstract] | ||||||||
Loss before income taxes | $ (3,973,592) | $ (7,613,962) | $ (12,060,936) | [1] | $ (30,084,571) | [2] | ||
Bargain purchase gain | (4,011,512) | 0 | (4,011,512) | [1],[3] | 0 | [2],[4] | ||
Loss before income taxes, as taxed | $ (16,072,448) | $ (30,084,571) | ||||||
Statutory income tax rate | 35.00% | 35.00% | ||||||
Expected income tax benefit | $ (5,625,357) | $ (10,529,600) | ||||||
Non-taxable entity | 0 | 12,685,647 | ||||||
Other permanent differences | 60,231 | 21,535 | ||||||
State tax benefit | (807,139) | (3,301) | ||||||
Foreign tax credit | (907,171) | 0 | ||||||
Foreign earnings not in book income | 1,542,732 | 0 | ||||||
Foreign income tax rate differential | (173,438) | (497,438) | ||||||
Other | 0 | 6,892 | ||||||
Provision (benefit) for income taxes | $ (2,804,077) | $ 789,375 | $ (5,910,142) | [1] | $ 1,683,735 | [2] | ||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | |||||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | ||
Deferred tax assets: | ||||
Allowance for doubtful accounts | $ 1,975,186 | $ 1,892,761 | ||
Net operating loss carryforward | 8,060,506 | 0 | ||
Deferred stock compensation | 1,716,754 | 1,686,671 | ||
Accrued liabilities | 1,654,190 | 746,132 | ||
Other | 1,331,091 | 1,785,999 | ||
Deferred tax assets | 14,737,727 | 6,111,563 | ||
Deferred tax liabilities: | ||||
Property and equipment | (55,624,122) | (42,525,793) | ||
Intangible assets | (6,784,966) | (7,662,590) | ||
Unrepatriated foreign earnings | (4,575,485) | (3,451,110) | ||
Other | (60,302) | (142,859) | ||
Deferred tax liabilities | (67,044,875) | (53,782,352) | ||
Net deferred tax liability | $ (52,307,148) | [1] | $ (47,670,789) | [2] |
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 19, 2016 | Oct. 31, 2016 | Nov. 30, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | |||||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||||||
Weighted-average common units outstanding (in shares) | 30,000,000 | |||||||
Common units, converted (in shares) | 30,000,000 | |||||||
Weighted average number of shares outstanding (in shares) | 30,000,000 | 39,500,000 | 30,000,000 | 38,505,525 | 30,000,000 | |||
IPO | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued (in shares) | 7,750,000 | |||||||
Sale of stock, price per share (in USD 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 | |||||||
Restricted Stock | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements | 0 | 0 | 0 | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 12, 2016 | Dec. 31, 2016 | |||||
Earnings Per Share [Abstract] | ||||||||||||
Net loss | $ (1,169,515) | [1] | $ (56,322,878) | $ (8,403,337) | [2] | $ (6,150,794) | [1],[3] | $ (31,768,306) | [2],[4] | $ (32,085,117) | $ (4,044,833) | |
Basic loss per share: | ||||||||||||
Weighted average number of shares outstanding (in shares) | 30,000,000 | 39,500,000 | 30,000,000 | 38,505,525 | 30,000,000 | |||||||
Basic loss per share (in USD per share) | $ (0.03) | $ (0.28) | $ (0.16) | $ (1.06) | ||||||||
Diluted loss per share: | ||||||||||||
Weighted average common shares, including dilutive effect (in shares) | 39,500,000 | 30,000,000 | 38,505,525 | 30,000,000 | ||||||||
Diluted loss per share (in USD per share) | $ (0.03) | $ (0.28) | $ (0.16) | $ (1.06) | ||||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | |||||||||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Earnings Per Share - Pro Forma
Earnings Per Share - Pro Forma Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 12, 2016 | Dec. 31, 2016 | ||||||
Pro Forma C Corporation Data (unaudited): | ||||||||||||
Net loss, as reported | $ (3,973,592) | [1] | $ (7,613,962) | [2] | $ (12,060,936) | [1] | $ (30,084,571) | [2] | ||||
(Benefit) provision for income taxes | (2,804,077) | [1] | 789,375 | [2] | (5,910,142) | [1] | 1,683,735 | [2] | ||||
Net loss | (1,169,515) | [1] | $ (56,322,878) | (8,403,337) | [2] | (6,150,794) | [1],[3] | (31,768,306) | [2],[4] | $ (32,085,117) | $ (4,044,833) | |
Basic loss per share: | ||||||||||||
Net loss | $ (1,169,515) | [1] | $ (56,322,878) | $ (8,403,337) | [2] | $ (6,150,794) | [1],[3] | $ (31,768,306) | [2],[4] | $ (32,085,117) | $ (4,044,833) | |
Weighted average common shares outstanding (in shares) | [1] | 37,500,000 | [2] | [1] | 37,500,000 | [2] | ||||||
Basic loss per share (in USD per share) | [1] | $ (0.14) | [2] | [1] | $ (0.71) | [2] | ||||||
Diluted loss per share: | ||||||||||||
Weighted average common shares, including dilutive effect (in shares) | [2] | 37,500,000 | 37,500,000 | |||||||||
Diluted loss per share (in USD per share) | $ (0.14) | [2] | $ (0.71) | [2] | ||||||||
Pro Forma | ||||||||||||
Pro Forma C Corporation Data (unaudited): | ||||||||||||
Net loss, as reported | [1] | $ (7,613,962) | [2] | [1] | $ (30,084,571) | [2] | ||||||
(Benefit) provision for income taxes | [1] | (2,342,467) | [2] | [1] | (3,287,051) | [2] | ||||||
Net loss | [1] | (5,271,495) | [2] | [1] | (26,797,520) | [2] | ||||||
Basic loss per share: | ||||||||||||
Net loss | [1] | $ (5,271,495) | [2] | [1] | $ (26,797,520) | [2] | ||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | |||||||||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Equity Based Compensation (Deta
Equity Based Compensation (Details) | 6 Months Ended |
Jun. 30, 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 | $ 47,168,561 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Number of Unvested Restricted Shares | |
Unvested shares as of January 1, 2017 (in shares) | shares | 282,780 |
Granted (in shares) | shares | 390,587 |
Vested (in shares) | shares | (2,233) |
Forfeited (in shares) | shares | (8,888) |
Unvested shares as of June 30, 2017 (in shares) | shares | 662,246 |
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 | 21.19 |
Vested (in dollars per share) | $ / shares | (17.42) |
Forfeited (in dollars per share) | $ / shares | (15) |
Unvested shares as of June 30, 2017 (in dollars per share) | $ / shares | $ 18.63 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($)shares | Jun. 30, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | shares | 4,500,000 | 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 | $ 10,326,977 | $ 10,326,977 |
Unrecognized compensation cost | 30 months | |
Compensation expense | $ 1,050,062 | $ 1,619,893 |
Related Party Transactions - Re
Related Party Transactions - Revenues and Accounts Receivable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | $ 58,207,883 | $ 48,817,324 | $ 102,709,959 | $ 51,881,956 | ||||
ACCOUNTS RECEIVABLE | 45,686,985 | [1] | 45,686,985 | [1] | $ 27,589,283 | [2] | ||
Other Relationships | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 0 | 0 | 0 | ||||
ACCOUNTS RECEIVABLE | 95,124 | 95,124 | 115,565 | |||||
Pressure Pumping and Gulfport | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 41,099,441 | 38,165,558 | 72,845,391 | 38,165,558 | ||||
ACCOUNTS RECEIVABLE | 28,596,696 | 28,596,696 | 19,094,509 | |||||
Muskie and Gulfport | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 13,605,124 | 9,313,266 | 25,145,543 | 11,231,344 | ||||
ACCOUNTS RECEIVABLE | 8,151,536 | 8,151,536 | 5,373,007 | |||||
Panther Drilling and Gulfport | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 951,439 | 769,147 | 1,993,816 | 1,221,022 | ||||
ACCOUNTS RECEIVABLE | 1,016,589 | 1,016,589 | 1,434,036 | |||||
Cementing and Gulfport | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 903,317 | 0 | 903,317 | 0 | ||||
ACCOUNTS RECEIVABLE | 1,767,432 | 1,767,432 | 0 | |||||
SR Energy and Gulfport | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 1,565,211 | 0 | 1,565,211 | 0 | ||||
ACCOUNTS RECEIVABLE | 6,011,500 | 6,011,500 | 0 | |||||
Lodging and Grizzly | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 261 | 17 | 525 | 572 | ||||
ACCOUNTS RECEIVABLE | 283 | 283 | 274 | |||||
Bison Drilling and El Toro | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 0 | 0 | 371,873 | ||||
ACCOUNTS RECEIVABLE | 0 | 0 | 0 | |||||
Panther Drilling and El Toro | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 1,449 | 0 | 171,619 | ||||
ACCOUNTS RECEIVABLE | 0 | 0 | 0 | |||||
Bison Trucking and El Toro | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 0 | 0 | 130,000 | ||||
ACCOUNTS RECEIVABLE | 0 | 0 | 0 | |||||
White Wing and El Toro | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 0 | 0 | 20,431 | ||||
ACCOUNTS RECEIVABLE | 0 | 0 | 0 | |||||
Energy Services and El Toro | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 34,100 | 249,193 | 157,745 | 249,193 | ||||
ACCOUNTS RECEIVABLE | 35,853 | 35,853 | 108,386 | |||||
White Wing and Diamondback | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 0 | 0 | 1,650 | ||||
ACCOUNTS RECEIVABLE | 0 | 0 | 0 | |||||
Coil Tubing and El Toro | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 0 | 318,694 | 0 | 318,694 | ||||
ACCOUNTS RECEIVABLE | 0 | 0 | 0 | |||||
Panther and DBDHT | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 8,474 | 0 | 13,689 | 0 | ||||
ACCOUNTS RECEIVABLE | 11,972 | 11,972 | 100,450 | |||||
Consolidated and 2017 Stingray Companies | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
REVENUES | 40,516 | $ 0 | 84,722 | $ 0 | ||||
ACCOUNTS RECEIVABLE | $ 0 | $ 0 | $ 1,363,056 | |||||
Wexford | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percent | 75.00% | 75.00% | ||||||
Gulfport | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percent | 25.00% | 25.00% | ||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Related Party Transactions - Co
Related Party Transactions - Cost of Revenues of Accounts Payable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | [1] | $ 262,192 | [2] | $ 80,491 | [3] | $ 692,109 | [2] | $ 197,537 | [3] | ||
ACCOUNTS PAYABLE | 120,183 | [4] | 120,183 | [4] | $ 203,209 | [5] | |||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 306,630 | [2] | 217,098 | [3] | 630,884 | [2] | 325,343 | [3] | |||
Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 262,192 | 80,491 | 692,109 | 197,537 | |||||||
ACCOUNTS PAYABLE | 120,183 | 120,183 | 203,209 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 306,630 | 217,098 | 630,884 | 325,343 | |||||||
Panther and DBDHT | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 58 | 2,444 | 127,778 | 48,998 | |||||||
Bison Trucking and Diamondback | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 28,390 | 42,331 | 66,522 | 83,958 | |||||||
Energy Services and Elk City Yard | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 26,700 | 26,700 | 53,400 | 53,400 | |||||||
Lodging and Dunvegan | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 0 | 2,453 | 0 | 2,453 | |||||||
Bison Trucking and El Toro | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 0 | 5,000 | 0 | 5,000 | |||||||
Consolidated and 2017 Stingray Companies | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
COST OF REVENUE | 207,044 | 1,563 | 444,409 | 3,728 | |||||||
Consolidated and Everest | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 49,804 | 63,431 | 108,117 | 135,755 | |||||||
Consolidated and Wexford | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 164,414 | 100,336 | 398,294 | 136,257 | |||||||
Mammoth and Orange Leaf | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 16,276 | 53,331 | 45,786 | 53,331 | |||||||
Mammoth and Caliber | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 71,998 | 0 | 71,998 | 0 | |||||||
Sand Tiger and Grizzly | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 4,047 | 0 | 4,047 | 0 | |||||||
Lodging and Dunvegan | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 91 | $ 0 | 2,642 | $ 0 | |||||||
ACCOUNTS PAYABLE | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 177,344 | ||||||||
ACCOUNTS PAYABLE | Panther and DBDHT | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 0 | ||||||||
ACCOUNTS PAYABLE | Bison Trucking and Diamondback | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 0 | ||||||||
ACCOUNTS PAYABLE | Energy Services and Elk City Yard | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 0 | ||||||||
ACCOUNTS PAYABLE | Lodging and Dunvegan | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 3,199 | ||||||||
ACCOUNTS PAYABLE | Bison Trucking and El Toro | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 0 | ||||||||
ACCOUNTS PAYABLE | Consolidated and 2017 Stingray Companies | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 174,145 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 120,183 | 120,183 | 25,865 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Consolidated and Everest | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 23,818 | 23,818 | 12,668 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Consolidated and Wexford | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 50,185 | 50,185 | 13,197 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Mammoth and Orange Leaf | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 0 | 0 | 0 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Mammoth and Caliber | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 43,608 | 43,608 | 0 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Sand Tiger and Grizzly | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | 1,820 | 1,820 | 0 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Lodging and Dunvegan | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
ACCOUNTS PAYABLE | $ 752 | $ 752 | $ 0 | ||||||||
[1] | Exclusive of depreciation, depletion, accretion and amortization | ||||||||||
[2] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||||||||
[3] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | ||||||||||
[4] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||||||||
[5] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease payments (Details) | Jun. 30, 2017USD ($) |
Operating Leases | |
Remainder of 2017 | $ 5,486,024 |
2,018 | 9,177,272 |
2,019 | 8,075,402 |
2,020 | 5,597,885 |
2,021 | 2,645,182 |
Thereafter | 3,721,249 |
Total | 34,703,014 |
Minimum Purchase Commitments | |
Remainder of 2017 | 6,689,581 |
2,018 | 10,866,000 |
2,019 | 10,866,000 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Minimum Purchase Commitments | 28,421,581 |
Capital Spend Commitments | |
Minimum Purchase Commitments | |
Remainder of 2017 | 22,730,189 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Minimum Purchase Commitments | $ 22,730,189 |
Commitments and Contingencies83
Commitments and Contingencies - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating leases, rent expense | $ 4,247,896 | $ 4,079,662 | |
Insurance deductible | 250,000 | $ 250,000 | |
Insurance aggregate stop loss | 2,000,000 | 2,000,000 | |
Workers compensation and auto claims insurance, aggregate stop loss per claim basis | 150,000 | ||
Workers compensation and auto claims insurance, aggregate stop loss per calendar year | 5,799,991 | ||
Insurance reserves | $ 1,491,300 | 971,351 | |
Maximum annual contributions per employee, percent | 92.00% | ||
Employer matching contribution, percent of match | 4.00% | ||
Employer discretionary contribution amount | $ 0 | $ 102,230 | |
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 | |
Line of credit outstanding | $ 3,363,627 |
Operating Segments (Details)
Operating Segments (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Oct. 12, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2016segment | Dec. 31, 2015USD ($) | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Number of reportable segments | segment | 5 | 4 | |||||||||||||
Revenue from external customers | $ 40,054,176 | $ 20,345,310 | $ 70,518,121 | $ 49,863,537 | |||||||||||
Revenue from related parties | 58,207,883 | 48,817,324 | 102,709,959 | 51,881,956 | |||||||||||
Cost of revenue | 77,339,954 | 50,503,643 | 135,837,940 | 82,894,819 | |||||||||||
Selling, general and administrative expenses | 7,699,706 | 5,206,138 | 14,436,504 | 8,820,012 | |||||||||||
Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization | 13,222,399 | 13,452,853 | 22,953,636 | 10,030,662 | |||||||||||
Other expense (income) | 202,496 | [1] | (626,716) | [2] | 386,642 | [1] | (625,726) | [2] | |||||||
Gain on bargain purchase | (4,011,512) | [1] | 0 | [2] | (4,011,512) | [1],[3] | 0 | [2],[4] | |||||||
Interest expense (income) | 1,111,608 | [1] | 1,012,031 | [2] | 1,508,792 | [1] | 2,308,387 | [2] | |||||||
Depreciation, depletion, accretion and amortization | 19,893,399 | [1] | 18,810,615 | [2] | 37,130,650 | [1] | 36,561,687 | [2] | |||||||
Impairment of long-lived assets | 0 | [1] | 1,870,885 | [2] | 0 | [1],[3] | 1,870,885 | [2],[4] | |||||||
Income tax (benefit) provision | (2,804,077) | [1] | 789,375 | [2] | (5,910,142) | [1] | 1,683,735 | [2] | |||||||
Net loss | (1,169,515) | [1] | $ (56,322,878) | (8,403,337) | [2] | (6,150,794) | [1],[3] | (31,768,306) | [2],[4] | $ (32,085,117) | $ (4,044,833) | ||||
Total expenditures for property, plant and equipment | 35,466,027 | 1,639,170 | 66,575,719 | 2,174,209 | |||||||||||
Goodwill | 99,562,761 | [5] | 88,726,875 | [6] | 88,726,875 | 99,562,761 | [5] | 88,726,875 | 88,726,875 | [6] | $ 88,726,875 | ||||
Intangible assets, net | 20,604,329 | 21,566,829 | 26,102,329 | 20,604,329 | 26,102,329 | 21,566,829 | |||||||||
Total assets | 626,917,575 | [5] | $ 502,362,475 | [6] | 505,821,857 | 626,917,575 | [5] | 505,821,857 | $ 502,362,475 | [6] | |||||
Pressure Pumping Services | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from external customers | 8,816,451 | 5,862,584 | 17,508,098 | 18,157,113 | |||||||||||
Revenue from related parties | 41,108,032 | 38,165,558 | 72,868,938 | 38,165,558 | |||||||||||
Cost of revenue | 35,826,369 | 28,551,790 | 64,533,809 | 40,083,680 | |||||||||||
Selling, general and administrative expenses | 2,404,739 | 1,539,371 | 4,179,665 | 2,065,542 | |||||||||||
Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization | 11,693,375 | 13,936,981 | 21,663,562 | 14,173,449 | |||||||||||
Other expense (income) | 3,758 | 43,033 | 6,389 | 23,825 | |||||||||||
Gain on bargain purchase | 0 | 0 | |||||||||||||
Interest expense (income) | 303,351 | 131,709 | 431,795 | 368,764 | |||||||||||
Depreciation, depletion, accretion and amortization | 9,626,553 | 9,958,270 | 18,784,446 | 18,913,487 | |||||||||||
Impairment of long-lived assets | 138,587 | 138,587 | |||||||||||||
Income tax (benefit) provision | 0 | 0 | 0 | 0 | |||||||||||
Net loss | 1,759,713 | 3,665,382 | 2,440,932 | (5,271,214) | |||||||||||
Total expenditures for property, plant and equipment | 24,736,600 | 896,847 | 53,401,909 | 927,542 | |||||||||||
Goodwill | 86,043,147 | 86,043,148 | 86,043,147 | 86,043,148 | |||||||||||
Intangible assets, net | 16,913,308 | 25,956,808 | 16,913,308 | 25,956,808 | |||||||||||
Total assets | 244,665,648 | 209,357,385 | 244,665,648 | 209,357,385 | |||||||||||
Well Services | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from external customers | 5,606,522 | 1,662,019 | 8,796,654 | 4,360,611 | |||||||||||
Revenue from related parties | 2,534,553 | 567,887 | 2,687,448 | 567,887 | |||||||||||
Cost of revenue | 6,636,289 | 3,034,349 | 10,436,065 | 6,962,055 | |||||||||||
Selling, general and administrative expenses | 726,098 | 440,182 | 1,698,503 | 1,013,478 | |||||||||||
Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization | 778,688 | (1,244,625) | (650,466) | (3,047,035) | |||||||||||
Other expense (income) | (3,173) | (682,545) | (1,991) | (673,145) | |||||||||||
Gain on bargain purchase | 0 | 0 | |||||||||||||
Interest expense (income) | (2,474) | 50,776 | (108,376) | 149,095 | |||||||||||
Depreciation, depletion, accretion and amortization | 2,219,921 | 1,272,715 | 3,428,162 | 2,670,222 | |||||||||||
Impairment of long-lived assets | 1,384,751 | 1,384,751 | |||||||||||||
Income tax (benefit) provision | (2,808,982) | (3,094) | (6,500,514) | (3,094) | |||||||||||
Net loss | 1,373,396 | (3,267,228) | 2,532,253 | (6,574,864) | |||||||||||
Total expenditures for property, plant and equipment | 344,474 | 247,829 | 344,474 | 247,829 | |||||||||||
Goodwill | 10,192,486 | 0 | 10,192,486 | 0 | |||||||||||
Intangible assets, net | 2,078,021 | 145,521 | 2,078,021 | 145,521 | |||||||||||
Total assets | 83,026,472 | 41,178,159 | 83,026,472 | 41,178,159 | |||||||||||
Sand | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from external customers | 10,395,025 | 1,694,698 | 13,767,088 | 2,976,443 | |||||||||||
Revenue from related parties | 13,605,124 | 9,313,266 | 25,145,543 | 11,231,344 | |||||||||||
Cost of revenue | 19,974,059 | 10,251,613 | 32,581,324 | 16,432,367 | |||||||||||
Selling, general and administrative expenses | 2,415,883 | 1,508,533 | 4,473,436 | 2,109,803 | |||||||||||
Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization | 1,610,207 | (752,182) | 1,857,871 | (4,334,383) | |||||||||||
Other expense (income) | 139,569 | 53,803 | 153,776 | 72,985 | |||||||||||
Gain on bargain purchase | (4,011,512) | (4,011,512) | |||||||||||||
Interest expense (income) | 352,600 | 106,650 | 485,239 | 211,111 | |||||||||||
Depreciation, depletion, accretion and amortization | 2,205,694 | 1,581,334 | 3,568,659 | 2,949,851 | |||||||||||
Impairment of long-lived assets | 0 | 0 | |||||||||||||
Income tax (benefit) provision | 8,502 | 0 | 8,502 | 0 | |||||||||||
Net loss | 2,915,354 | (2,493,969) | 1,653,207 | (7,568,330) | |||||||||||
Total expenditures for property, plant and equipment | 2,795,370 | 65,184 | 2,969,883 | 157,726 | |||||||||||
Goodwill | 2,683,727 | 2,683,727 | 2,683,727 | 2,683,727 | |||||||||||
Intangible assets, net | 0 | 0 | 0 | 0 | |||||||||||
Total assets | 163,911,495 | 114,090,998 | 163,911,495 | 114,090,998 | |||||||||||
Drilling | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from external customers | 11,511,825 | 4,458,095 | 21,215,222 | 9,715,833 | |||||||||||
Revenue from related parties | 959,913 | 770,596 | 2,007,505 | 1,916,595 | |||||||||||
Cost of revenue | 12,033,156 | 5,759,398 | 22,986,579 | 12,968,054 | |||||||||||
Selling, general and administrative expenses | 1,433,754 | 1,264,763 | 2,728,778 | 2,567,237 | |||||||||||
Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization | (995,172) | (1,795,470) | (2,492,630) | (3,902,863) | |||||||||||
Other expense (income) | 60,451 | (47,500) | 224,236 | (57,574) | |||||||||||
Gain on bargain purchase | 0 | 0 | |||||||||||||
Interest expense (income) | 439,876 | 701,633 | 657,058 | 1,554,207 | |||||||||||
Depreciation, depletion, accretion and amortization | 4,973,682 | 5,438,551 | 9,942,310 | 10,945,932 | |||||||||||
Impairment of long-lived assets | 347,547 | 347,547 | |||||||||||||
Income tax (benefit) provision | 0 | 0 | 0 | 0 | |||||||||||
Net loss | (6,469,181) | (8,235,701) | (13,316,234) | (16,692,975) | |||||||||||
Total expenditures for property, plant and equipment | 3,631,540 | 158,924 | 5,900,817 | 423,095 | |||||||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||||||
Intangible assets, net | 0 | 0 | 0 | 0 | |||||||||||
Total assets | 98,203,014 | 105,556,115 | 98,203,014 | 105,556,115 | |||||||||||
Other Energy Services | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from external customers | 3,724,353 | 6,667,914 | 9,231,059 | 14,653,537 | |||||||||||
Revenue from related parties | 261 | 17 | 525 | 572 | |||||||||||
Cost of revenue | 2,870,081 | 2,906,493 | 5,300,163 | 6,448,663 | |||||||||||
Selling, general and administrative expenses | 719,232 | 453,289 | 1,356,122 | 1,063,952 | |||||||||||
Earnings before interest, other expense (income), impairment, taxes and depreciation and amortization | 135,301 | 3,308,149 | 2,575,299 | 7,141,494 | |||||||||||
Other expense (income) | 1,891 | 6,493 | 4,232 | 8,183 | |||||||||||
Gain on bargain purchase | 0 | 0 | |||||||||||||
Interest expense (income) | 18,255 | 21,263 | 43,076 | 25,210 | |||||||||||
Depreciation, depletion, accretion and amortization | 867,549 | 559,745 | 1,407,073 | 1,082,195 | |||||||||||
Impairment of long-lived assets | 0 | 0 | |||||||||||||
Income tax (benefit) provision | (3,597) | 792,469 | 581,870 | 1,686,829 | |||||||||||
Net loss | (748,797) | 1,928,179 | 539,048 | 4,339,077 | |||||||||||
Total expenditures for property, plant and equipment | 3,958,043 | 270,386 | 3,958,636 | 418,017 | |||||||||||
Goodwill | 643,400 | 0 | 643,400 | 0 | |||||||||||
Intangible assets, net | 1,613,000 | 0 | 1,613,000 | 0 | |||||||||||
Total assets | $ 37,110,946 | $ 35,639,200 | $ 37,110,946 | $ 35,639,200 | |||||||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||||||||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3 | ||||||||||||||
[3] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | ||||||||||||||
[4] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. | ||||||||||||||
[5] | Financial information includes the financial position and results attributable to Sturgeon Acquisitions LLC ("Sturgeon") for the entire period presented. See Note 3. | ||||||||||||||
[6] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jul. 07, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | [2] | Aug. 04, 2017 | Jul. 12, 2017 | Jul. 11, 2017 | |
Subsequent Event [Line Items] | ||||||||
Business combination cash acquired | $ 2,671,558 | [1] | $ 0 | |||||
Lease aggregate commitments | $ 34,703,014 | |||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Business combination cash acquired | $ 2,300,000 | |||||||
Long-term debt | $ 1,800,000 | |||||||
Revolving Credit Facility | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum cross default threshold | $ 15,000,000 | $ 5,000,000 | ||||||
Equipment | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Lease aggregate commitments | $ 1,500,000 | |||||||
[1] | Financial information includes the financial position and results attributable to Sturgeon for the entire period presented. See Note 3. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to Sturgeon. See Note 3. |
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) |