Greetings, and welcome to the Mammoth Energy Services 2024 fourth quarter and full year results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black, with Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Mammoth Energy conference call to review 2024 fourth quarter and full year results. This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section of MammothEnergy.com. Information reported on this call speaks only as of today, March 7, 2025. Please be advised that any time-sensitive information may no longer be accurate as of the date of any subsequent transcript reading or listening. I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events, or future financial performance, are forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call, that by their nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to today's earnings press release for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management will also refer to non-GAAP measures, including adjusted EBITDA. The definition of this non-GAAP measure and its reconciliation to the most directly comparable GAAP measure can be found at the end of our earnings press release and in our investor presentation which can be found on the company's website. Mammoth Energy assumes no obligation to publicly update or revise any forward-looking statements. So with that out of the way, I would now like to turn the call over to Mammoth Energy CEO, Bill Lancaster. Phil?

Thank you, Rick. Good morning, everyone. Pleasure to speak with you in this forum for the first time in my new role as CEO. I'd like to first take a moment to acknowledge and thank our former CEO, Arty Straehla. After nine years of leadership and unwavering dedication at Mammoth, Arty retired at the end of 2024. Arty was pivotal in growing Mammoth and navigating the difficult preparations in recent years. I'll start today's call with a few highlights from the quarter, and then I'll introduce some key areas of focus for Mammoth in the year ahead, and provide a high level of commentary on our results. I'll then turn the call over to Mark Layton to cover the financials in more detail. There were signs of improvement in our results for the fourth quarter, and we're carrying this positive momentum into 2025. Despite typical seasonality and budget exhaustion at year-end, we benefited from improved pressure pumping utilization during the quarter. And we continue to see strong demand throughout our various businesses, including engineering, fiber, and T&D services. We remain well-positioned to deliver improved results in 2025, and the incremental natural gas and LNG-related demand may augment our performance and utilization in our pressure pumping business. Our focus going forward will be unlocking value for our shareholders. We believe it is imperative to maintain a strong balance sheet. Given our significant cash position, we are evaluating potential strategic opportunities that would allow us to add accretive assets. As we evaluate our existing businesses and new opportunities to unlock value, we may be buyers or sellers and at times both. I'm excited to explore these opportunities to improve results for all stakeholders. We see many opportunities to strategically allocate capital to grow our existing businesses that are generating the greatest returns.…

Thank you, Phil. I hope everyone is doing well, and we appreciate you joining us today. As I usually do, I'm going to take this time to provide additional details on some meaningful metrics and several key highlights. A detailed breakdown of our results can be found in our earnings release and in our 10-Ks once it is on file with the SEC. Mammoth's total revenue during the fourth quarter of 2024 came in at $53.2 million, which represents a 33% sequential increase when compared to $40 million in the third quarter of 2024. Total revenue for the full year 2024 was $187.9 million compared to $309.5 million in 2023. This year-over-year decline was primarily attributable to decreased utilization across our well completion services division as a result of lower activity by our customers in the natural gas basins in which we operate. We continue to believe there are positive demand implications for natural gas on the horizon driven by incremental LNG export capacity and growing electricity demand requirements. We remain optimistic that associated activity increases will occur in 2025 and when coupled with various cost-cutting measures that we implemented prior to year-end, this should further support improvements in our overall financial performance. Additionally, we will continue to evaluate strategic opportunities to deploy capital in ways that will be accretive and value-enhancing. Our infrastructure services division contributed revenue of $27.9 million for the fourth quarter of 2024, which represents a slight sequential increase when compared to $26 million for the third quarter. For the full year 2024, infrastructure services revenue was $110.4 million, which was flat compared to $110.5 million for 2023. As Phil mentioned, we've added roughly twenty crews over the past ninety days to address the growing demand surrounding distribution work. This division has a healthy bidding environment…

Thank you. We will now be conducting a question and answer session. You may press star two if you would like to remove your question from the queue. Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. There are no questions at this time. At this point, I'd like to turn the call over to Rick Black for email questions.

Thank you, operator. Starting with the first question that we received, where is the best growth potential for the infrastructure business? Is that organic or acquisitive? And now that there is a new administration and changes out there, how should we be thinking about these two things impacting the infrastructure space in the coming year?

Yeah. Thank you, Rick. So I think most of our growth currently is through organic growth. As I stated, we picked up twenty crews, but we have even more demand. And a little bit of that is because the larger IOUs have realized that they have to expand. And so right across the US, we're noticing a lot more demand from the larger IOUs. So we feel like the organic growth is there. We have also started getting involved with more co-ops which we think will help our storm revenue, and we would look at acquisitions maybe, but at this particular point, we feel like there's plenty of organic growth.

Excellent. Mark, in the rental business, can you just provide a little bit of color around the customers and the demand cycle that are in that business and what would be a driver of growth and demand perspective in the coming year?

Our current customer base is primarily comprised of E&P companies along with other service companies. The opportunities to grow our customer base, in particular, we see some discrete opportunities as it relates to the construction market. And some of the rental equipment that we have inside of the portfolio. And I just remind you that we see the rental business as a fairly broad portfolio of assets that for us includes helicopters. So we've always viewed that business broadly and believe this is an area where we can acquire high-quality assets at attractive prices. And then turning to the sand business, a similar type question. Can you just give us a little bit of color on what characterizes that environment? And, you know, are there opportunities to deploy more capital there? Or to make acquisitions? How does that business grow? And what do you see that environment looking like in 2025?

For 2025, we're seeing some stabilized demand. As always, the key drivers for our sand business are commodity pricing. For us, we're operating well underneath our maximum capacity, so we've got the ability to expand capacity and capitalize as we see demand.

Excellent. And then on, just on your CapEx outlook for 2025, I believe you said $12 million. And that some of that would be spent on pressure pumping and some on the rental business. Can you just give us a percentage break of how you see that playing out over the year?

Yeah. Just to give some detail on that, approximately half of our CapEx budget is allocated to growing our rental business. We have about $5 million inside of that $12 million budget related to pressure pumping upgrades. That will be dependent on customer demand.

Excellent. And then finally, Phil, now that you've been in this position for a few months and the company has capital again and that the negative overhang of PREPA is gone, just curious what your perspective is on the primary focus as you sit at the company today.

Yeah. I think primarily is getting my feet wet, but the three focuses for me at this particular time. First one is to get the company rightsized and profitable. Second is evaluating our existing businesses for the future. And then now we have our position, with cash for the first time in six or seven years, we now have the door open to look for potential acquisitions to either help our existing businesses or new opportunities.

Excellent. That's all the questions I have. So I'll turn the call over to you, Phil, as we wrap up this quarterly call.

Thank you again for joining us on the call today. We continue to focus on positioning Mammoth for future growth, improving operating results, and unlocking value. This concludes our conference call, and we look forward to speaking to you all again next quarter.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. Have a wonderful day.