Greetings, and welcome to the Mammoth Energy Services Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mohammed Topiwala, Investor Relations at Vizara Advisors. Thank you. You may begin.

Thank you, operator, and good morning, everyone. We appreciate you joining us for Mammoth's Third Quarter 2025 Earnings Conference Call. Joining us on the call today are Mark Layton, Chief Financial Officer; and Bernie Lancaster, Chief Operating Officer. We will start today with our prepared remarks and then open it up for questions. I want to remind everyone that some of today's comments include forward-looking statements. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our latest Securities and Exchange Commission filings for risk factors and cautions regarding forward-looking statements. Our comments today also include non-GAAP financial measures. The underlying details and a reconciliation of GAAP to non-GAAP financial measures are included in our third quarter earnings press release, which can be found on our website. As a reminder, today's call is being webcast, and a recorded version will be available on the Investor Relations section of Mammoth's website following the conclusion of this call. With that, I'll turn the call over to Mark.

Thank you, Mohammed, and good morning, everyone. Mammoth delivered another quarter of steady execution as we advance our transformation plan, simplifying the company and realigning the portfolio toward higher return businesses. Our Drilling segment was a standout this quarter with revenue more than tripling sequentially and gross margin reaching the highest level in the segment's history. Activity was driven by increased horizontal drilling in the Permian Basin, which continues to demonstrate the value of concentrating capital in our strongest markets. This performance underscores the early benefits of our strategic realignment and highlights the opportunity for further growth as market condition stabilize. For the third quarter, revenue was $14.8 million, down from the $16.4 million in the second quarter and $17.1 million a year ago, largely reflecting the divestiture of the Piranha assets and continued underperformance in the Sand segment. Net loss from continuing operations was $12.1 million or $0.25 per diluted share. While these results are not where we want them to be, they reinforce why we're taking decisive actions to fix structural issues, strengthen the portfolio and build a healthier business. Importantly, the quarter also marked a step forward in cash generation. We delivered positive free cash flow from operations, which is inclusive of both continued and discontinued operations, supported by the monetization of underutilized assets. These results highlight the growing financial resilience of our reshaped portfolio and our focus on self-funding the transformation. We remain committed to optimizing the portfolio, reducing structural drag and redeploying capital toward businesses capable of generating consistent, high-return performance through cycles. We continued repositioning the company this quarter with the sale of our Piranha assets in the Sand segment, transaction that pruned the portfolio by removing an underperforming business. At the same time, we invested selectively in new aviation assets within rentals, where…

Thanks, Mark. Operationally, our teams executed well across our businesses in what was a challenging quarter. While we were disappointed with the results in the Sand and Infrastructure segments, we have already taken actions to address structural inefficiencies and improve execution. Let me take a moment to review our operating performance by segment and highlight where we're seeing momentum build. In Rentals, aviation delivered a full quarter of operations with strong customer demand and improving fleet availability as we continue to tighten operating efficiency to offset start-up issues. We're prioritizing long-term contracts and profitable deployment over volume for volume's sake. Non-aviation rentals remained somewhat steady with good equipment returns and minimal downtime. In Infrastructure, our teams managed through schedule shifts and customer delays that impacted margin, but we executed safely and continue to work to secure several new engineering and fiber projects. This business remains a strategic part of Mammoth given its alignment with long-term grid, AI data center and broadband investment themes. Our Sand operations faced another difficult quarter, driven by the divestiture of Piranha assets, nonrecurring costs associated with railcar returns and continued weather-related headwinds in Canada. The environment remains challenging, but we believe our remaining assets are in a more advantageous position to return capital over the medium to long term. We believe that focusing on internal cost efficiency, maintenance reliability and disciplined contract management will restore margins over time. Our Accommodations segment had a very good quarter. Higher occupancy and improved cost efficiency led to margin expansion and solid EBITDA growth. Customer feedback remains strong, and our team continues to deliver excellent service and safety performance. Finally, drilling was the standout performer this quarter. Our decision to focus on the Permian Basin and horizontal drilling activity is paying off. The team delivered record gross margins and continued to gain share in our target markets. We expect to build on this momentum in Q4 and into 2026 as activity and customer engagement remains strong in the areas where we operate. Taken together, these results demonstrate the resilience of our diversified portfolio with strength in drilling and accommodations helping offset weakness in Sand and Infrastructure during the third quarter. Across the company, I want to thank our employees for their commitment and execution. We are steadily building a more efficient and resilient organization. With that, I'll hand it back to Mark for closing remarks.

Thanks, Bernie. While Q3 results highlight areas where we must improve, they also demonstrate the progress we're making to rebuild Mammoth on a stronger foundation. Our Drilling and Accommodation segments show that what disciplined execution can deliver even in a challenging market, and we're applying those lessons across the organization. These segment results reflect both the progress we've made and the work still ahead. Our continued discipline around the cost and capital remains central to restoring profitability. Now turning to our financial performance by segment. I'll walk through key highlights for the quarter, beginning with rentals. Segment revenue was $2.8 million, down 11% sequentially, but up 24% year-over-year. Aviation performed well with a full quarter of revenue and solid customer demand. On average, during the third quarter of 2025, we had approximately 286 pieces of equipment rented out to customers compared to 296 pieces in the second quarter. The sequential decline primarily reflected timing of project completions in the Northeast. We continue to be encouraged by the potential in this segment as more than 80% of our current rental activity is tied to gas-weighted basins. These markets stand to benefit from secular demand growth in natural gas-fired power generation, particularly as the AI-driven expansion of data center capacity increases electricity requirements across the grid. Utilization levels remain healthy, and we're focused on operational levers and pricing to further enhance margins. In addition, seasonal weather trends could provide a tailwind for heating-related rental assets as we move through the winter months. The quarter also represented the first full quarter of revenue contribution from our aviation assets, which continue to perform well and generate stable returns. Overall, we remain excited about the opportunity set within our rentals business as we enter 2026. Infrastructure segment revenue of $4.8 million declined 13% sequentially, primarily…

[Operator Instructions] Our first questions come from the line of Colby Sasso with Daniel Energy Partners.

I just wanted to ask, can you speak on the visibility for sand volumes in 2026, ideally with some color on the basins you serve?

Sure. As we look at '26, our primary logistic advantage is into Western Canada, into the Montney and then into the Northeast, so into the Utica, Marcellus. As we look at '26 volumes, we certainly expect an increase compared to what we saw in Q3 that we framed as a low watermark or a reset. But the conversations that our sales team is having are encouraging as it relates to 2026.

That's all for me. I will turn it back.

Our next question come from the line of Doug Garber with Westport Alpha.

Hey Mark, how is that going?

Good, how are you Doug?

Wanted to just start on the balance sheet. Your cash and marketable securities is about $123 million as of 10/31. And I wanted to just confirm that does not include -- you still have, what, $10 million from escrow from the recent sale and another, call it, $5 million to $10 million from land rigs held for sale that are not included in that number that should be a cash inflow. Do I have that right? And are there other big other things that you're expecting to collect?

Yes. High level, there's about $5 million in held for sale that primarily relates to the drilling rig assets. And then you identified the $10 million that remains in escrow relative to the T&D transaction that occurred in April of this year that we expect to be released in April of '26 at the earliest.

And can you just remind us on the PREPA puts and takes, how much you still have, I think, a $20 million left in AR to collect and then you also have a tax liability. And if I have that in the $20-ish million net liability range between those 2 items, is that a fair way to think about it?

Yes. So as you look at the PREPA receivable, you're correct, that's $20 million that's due when PREPA exits bankruptcy. I think that date is undetermined at this particular point in time. And then the majority of the tax liability that sits on the balance sheet relates to Puerto Rico activities. And as you look at that, that's at the gross amount to reduce that to reflect the write-off, we'll take some negotiations with the tax department in Puerto Rico. So what you're seeing on the balance sheet is the gross tax amount nonreflective of the write-off that we took last year.

Okay. And I also wanted to dig into the Sand business. It's a decent drag on free cash flow here. Can you help me understand the path? How much of it was onetime for rail rental car returns of a drag? And what is your path to getting that business back to free cash flow neutral in '26 or even next quarter?

There are several levers. First, it comes down to sales and the sales dialogue is encouraging as it relates to '26. But as you pointed out, Q3 included some onetime charges associated with returning railcars of about $550,000. So while we incurred that cost during the quarter, it reduces our fixed cost profile on a go-forward basis and moves us a step closer towards rightsizing our railcar fleet.

How much did it reduce your cost? And what's your total railcar liability monthly?

Yes. So as we look at the total railcar monthly right now, it's about $120,000 a month. We reduced it by about $30,000 per month by returning this set of cars. I think the next set of cars that becomes available releases in February or March time frame of '26, and we'll continue to evaluate that fleet based on demand.

We've reduced our -- sorry, this is Bernie. We've reduced our fleet count this year about 30% trying to rightsize where we're at.

And is it a volume? Or where is the pricing on that stand? Are you still in the $20 per ton kind of FOB range?

We were a little below $20 during the quarter. Some of that related to offloading some 30-50 that allowed us to reposition some of the railcars that we were returning, but we continue to see demand and pricing in that $20 range for 40-70.

Thank you. This now concludes our question-and-answer session. I would now like to turn the floor back over to Mark Layton for any closing comments.

Thank you again for joining us on the call today. We continue to focus on positioning Mammoth for future growth and unlocking value. We will achieve this through operational excellence, efficiency and strategic capital deployment. 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 now disconnect your lines. Enjoy the rest of your day.