Mammoth Energy Services, Inc. Announces Sale of Engineering Business

Rhea-AI Summary

Mammoth Energy Services (NASDAQ: TUSK) announced the sale of its engineering subsidiary Aquawolf to Qualus for an aggregate purchase price of $30.0 million on Dec 2, 2025. Aquawolf's revenue rose from $12.1M in 2022 to $17.3M in 2024, with net income increasing from $1.1M to $1.8M over the same period, and produced $12.0M revenue and $1.3M net income for the nine months ended Sept 30, 2025.

At closing Mammoth received $23.5M cash proceeds; $2.5M was placed in escrow for post-closing adjustments and indemnities through at least Dec 1, 2026. Fifth Third Bank consented and released associated collateral; the company said its borrowing base remains unchanged. Management characterized the sale as part of portfolio optimization and capital deployment to support long-term shareholder value.

Positive

• Aggregate sale price of $30.0M for Aquawolf
• Cash proceeds of $23.5M received at closing
• Aquawolf revenue of $17.3M in 2024 (from $12.1M in 2022)
• Net income growth to $1.8M in 2024 from $1.1M in 2022

Negative

• $2.5M placed in escrow for adjustments and indemnities until at least Dec 1, 2026, reducing immediate net proceeds

News Market Reaction

-0.84% 6.2x vol

32 alerts

-0.84% News Effect

+13.4% Peak Tracked

-2.1% Trough Tracked

-$898K Valuation Impact

$106M Market Cap

6.2x Rel. Volume

On the day this news was published, TUSK declined 0.84%, reflecting a mild negative market reaction. Argus tracked a peak move of +13.4% during that session. Argus tracked a trough of -2.1% from its starting point during tracking. Our momentum scanner triggered 32 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $898K from the company's valuation, bringing the market cap to $106M at that time. Trading volume was exceptionally heavy at 6.2x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Aquawolf sale price: $30.0 million Cash proceeds at closing: $23.5 million Escrow amount: $2.5 million +5 more

8 metrics

Aquawolf sale price $30.0 million Aggregate sales price to Qualus, LLC

Cash proceeds at closing $23.5 million Cash received by Mammoth Energy Partners LLC at closing

Escrow amount $2.5 million Placed into escrow for post-closing adjustments and indemnified liabilities

Aquawolf revenue 2022 $12.1 million Aquawolf full-year 2022 revenue

Aquawolf revenue 2024 $17.3 million Aquawolf full-year 2024 revenue

Aquawolf net income 2022 $1.1 million Aquawolf full-year 2022 net income

Aquawolf net income 2024 $1.8 million Aquawolf full-year 2024 net income

9M 2025 Aquawolf net income $1.3 million Net income for nine months ended September 30, 2025

Market Reality Check

Price: $2.45 Vol: Volume 1,073,154 is 5.13x...

high vol

$2.45 Last Close

Volume Volume 1,073,154 is 5.13x the 20-day average of 209,072, indicating elevated trading interest pre-announcement. high

Technical Shares at $1.86 are trading below the 200-day MA of $2.36 and well under the $3.52 52-week high.

Peers on Argus

TUSK was down 5.37% with heavy volume, while peers showed mixed moves: NNBR +3.4...

1 Up

TUSK was down 5.37% with heavy volume, while peers showed mixed moves: NNBR +3.48%, RCMT +1.30%, BOOM 0%, AIRT 0%, and FBYD -21.62% on separate index news, suggesting the reaction appeared more stock-specific than sector-driven.

Historical Context

5 past events · Latest: Dec 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	Business divestiture	Positive	-0.8%	Announced $30M sale of Aquawolf engineering subsidiary to Qualus.
Oct 31	Q3 2025 earnings	Negative	-4.2%	Reported Q3 net loss, negative EBITDA, continued transformation and capex.
Oct 16	Conference call notice	Neutral	-0.5%	Scheduled Q3 2025 earnings conference call and webcast logistics.
Aug 08	Q2 2025 earnings	Negative	-4.5%	Q2 net loss and divestitures including $108.7M sale and $15M equipment sale.
Jul 28	Earnings schedule	Neutral	-1.8%	Announced date and access details for Q2 2025 earnings release and call.

Pattern Detected

Recent news—earnings, asset sales, and conference announcements—has often been followed by modest to negative price reactions, even when disclosures emphasized strategic portfolio optimization and strong liquidity.

Recent Company History

Over the past six months, Mammoth has repeatedly reshaped its portfolio through divestitures and strategic shifts. The company sold infrastructure subsidiaries for $108.7M and hydraulic fracturing equipment for $15.0M, while Q2 and Q3 2025 results highlighted ongoing net losses from continuing operations but strong liquidity. Today’s $30.0M Aquawolf sale extends this divestiture trend, converting an organically built engineering platform into cash proceeds while management continues emphasizing portfolio optimization and capital redeployment.

Market Pulse Summary

This announcement extends Mammoth’s transformation by monetizing Aquawolf, an engineering subsidiary...

Analysis

This announcement extends Mammoth’s transformation by monetizing Aquawolf, an engineering subsidiary whose revenue grew from $12.1M in 2022 to $17.3M in 2024, for a total consideration of $30.0M, including $23.5M in cash at closing. Investors may track how these proceeds are redeployed, how remaining segments offset divested earnings, and whether future disclosures show progress in reducing losses from continuing operations and stabilizing the portfolio mix.

Key Terms

equity interests, escrow, indemnified liabilities, collateral, +1 more

5 terms

equity interests financial

"completed a sale of all equity interests in its wholly owned subsidiary"

Equity interests are an ownership stake in a company—usually represented by shares or membership units—that give the holder a claim on the business’s profits, assets and sometimes voting power. Think of it as owning one or more slices of a company’s pie: the bigger your slice, the larger your share of dividends, capital gains and influence, and the more you are affected by dilution or company losses. Investors use equity interests to measure value, control and potential returns.

escrow financial

"An additional $2.5 million was placed into escrow to fund post-closing"

A neutral third party holds money, documents, or assets until both sides in a transaction meet agreed conditions, like a safety deposit box that only opens when everyone fulfills the rules. For investors, escrow reduces risk and increases certainty by ensuring payments or shares are released only when contractual steps are completed, which affects deal timing, legal protection, and the likelihood that a transaction will close as planned.

indemnified liabilities financial

"escrow to fund post-closing adjustments for at least ninety days and indemnified liabilities until"

Indemnified liabilities are obligations or potential losses that one party has agreed in a contract to pay for if they arise, so the other party is protected from bearing the cost. For investors they matter because this promise shifts risk and possible future cash outflows away from one side—like someone agreeing to cover another’s car repairs—affecting a company’s financial exposure, valuation, and likelihood of unexpected expenses.

collateral financial

"Fifth Third consented to the transaction and agreed to release associated collateral."

Collateral is an asset a borrower pledges to a lender as security for a loan; if the borrower fails to repay, the lender can take the asset to recover losses. For investors, collateral matters because it reduces lender risk, influences interest rates and loan terms, and determines who gets paid first if a company faces financial trouble—think of it like a pawned item that gives the lender extra protection.

borrowing base financial

"The Company's borrowing base remains unchanged."

A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.

AI-generated analysis. Not financial advice.

Sales Price of $30.0 million; Further Expands Deployment Opportunities

OKLAHOMA CITY, Dec. 2, 2025 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today announced that its subsidiary, Mammoth Energy Partners LLC, has completed a sale of all equity interests in its wholly owned subsidiary, Aquawolf LLC ("Aquawolf"), to Qualus, LLC for an aggregate sales price of $30.0 million, advancing the Company's ongoing transformation and portfolio optimization initiatives.

Aquawolf's revenue grew from $12.1 million in 2022 to $17.3 million in 2024, with net income rising from $1.1 million to $1.8 million over the same period. For the nine months ended September 30, 2025, Aquawolf generated $12.0 million in revenue and $1.3 million in net income.

At closing, Mammoth Energy Partners LLC received total cash proceeds of $23.5 million. An additional $2.5 million was placed into escrow to fund post-closing adjustments for at least ninety days and indemnified liabilities until at least December 1, 2026.

In conjunction with the transaction described above, the Company entered into a consent and release agreement with Fifth Third Bank, National Association ("Fifth Third"), in which Fifth Third consented to the transaction and agreed to release associated collateral. The Company's borrowing base remains unchanged.

Mark Layton, Mammoth's Chief Financial Officer, stated, "This transaction provides another clear proof point of the strategic value we've unlocked this year. We entered the Engineering business in 2018 with one manager and a small initial investment, and over time built it into a team generating $17.3 million of revenue in 2024. Monetizing this business for approximately $30.0 million is a strong outcome and a credit to the people who built the business.

More importantly, this sale reinforces our belief that the underlying value across Mammoth is significantly disconnected from the current share price. We've shown an ability to build and monetize businesses organically, and we'll continue to deploy capital where it creates returns and supports long-term value for shareholders."

About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented company providing a diversified suite of rental, infrastructure and energy services across North America. Mammoth's offerings span specialized equipment rentals supporting aviation, construction, and energy operations, as well as utility infrastructure solutions, including engineering, design and fiber optic services. The Company also provides natural sand proppant for hydraulic fracturing, directional drilling services, and workforce accommodation facilities designed to support large-scale projects in remote locations. By combining technical expertise with a broad service platform, Mammoth helps customers achieve greater efficiency, flexibility and value across their operations. For more information, please visit www.mammothenergy.com.

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Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "plan," "estimate," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "potential," "would," "may," "probable," "likely" and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this news release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, plans for stock repurchases under its stock repurchase program, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management's current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; conditions of U.S. oil and natural gas industry and the effect of U.S. energy, monetary and trade policies; U.S. and global economic conditions and political and economic developments, including the energy and environmental policies; changes in U.S. and foreign trade regulations and tariffs, including potential increases of tariffs on goods imported into the U.S., and uncertainty regarding the same; performance of contracts and supply chain disruptions; inflationary pressures; higher interest rates and their impact on the cost of capital; the failure to receive or delays in receiving the remaining payment under the settlement agreement with PREPA; the Company's inability to replace the prior levels of work in its business segments, including its well completion services segments; risks relating to economic conditions, including concerns over a potential economic slowdown or recession; the loss of or interruption in operations of one or more of Mammoth's significant suppliers or customers; the outcome or settlement of our litigation matters and the effect on our financial condition and results of operations; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; Mammoth's ability to comply with the applicable financial covenants and other terms and conditions under its revolving credit facility; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.

Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.

 

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SOURCE MAMMOTH ENERGY SERVICES

FAQ

What price did Mammoth Energy (TUSK) sell Aquawolf for on Dec 2, 2025?

Mammoth sold Aquawolf for an aggregate purchase price of $30.0 million.

How much cash did Mammoth receive from the Aquawolf sale (TUSK)?

Mammoth received $23.5 million in cash proceeds at closing; $2.5 million was placed into escrow.

What were Aquawolf's recent revenue and net income figures reported by Mammoth (TUSK)?

Aquawolf reported $17.3M revenue and $1.8M net income in 2024; nine months ended Sept 30, 2025 showed $12.0M revenue and $1.3M net income.

Does the Aquawolf sale affect Mammoth's borrowing base or bank collateral (TUSK)?

Fifth Third Bank consented to the transaction and released associated collateral, and the company stated its borrowing base remains unchanged.

Why did Mammoth Energy (TUSK) sell the engineering business?

The company said the sale is part of ongoing portfolio optimization and to free capital for deployment that supports long-term shareholder value.