Core Insights - Mammoth Energy Services announced the sale of its Aquawolf engineering business for $30 million, with net cash proceeds expected to be up to $26 million [1]. Company Summary - Mammoth Energy Services is divesting its Aquawolf engineering business, indicating a strategic move to streamline operations or raise capital [1]. Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks, focusing on value opportunities and distressed plays, particularly in the energy sector [2].

Core Insights - Qualus Corporation has acquired Aquawolf, enhancing its capabilities in high-voltage transmission infrastructure [1] - The acquisition strengthens Qualus' expertise in grid modernization and expands its service offerings [1] - Qualus operates with over 1,900 professionals across the U.S. and Canada, focusing on power infrastructure transformation [1] Company Overview - Qualus is a leading pure-play power solutions firm specializing in grid modernization, resiliency, security, and sustainability [1] - The firm partners with various clients, including utilities, commercial, industrial, and government sectors, providing integrated advisory and engineering services [1] - Qualus also develops technology-enabled solutions for challenges in the power industry, such as resource integration and emergency management [1] Acquisition Details - The acquisition of Aquawolf adds new offices in San Diego, Denver, and Vancouver, WA, to Qualus' existing operations [1] - Both companies have demonstrated strong cultural alignment and have collaborated prior to the acquisition [1] - Aquawolf's integration into Qualus is seen as a significant step towards improving power infrastructure [1]

Mammoth Energy Services Inc. (NASDAQ:TUSK) shares surged 7.65% in after-hours trading on Tuesday, climbing to $1.9 after the company announced a $30 million asset sale.Check out the current price of TUSK stock here.The stock closed Tuesday's regular session at $1.76, down 0.84%, according to Benzinga Pro data.Strategic Divestiture CompletedThe Oklahoma City–based energy services company completed the sale of all equity interests in its Aquawolf LLC subsidiary to Qualus LLC for $30 million, according to a Tu ...

Core Viewpoint - Mammoth Energy Services, Inc. has completed the sale of its subsidiary Aquawolf LLC for $30.0 million, which is part of the company's ongoing transformation and portfolio optimization efforts [1][5]. Financial Performance - Aquawolf's revenue increased from $12.1 million in 2022 to $17.3 million in 2024, with net income rising from $1.1 million to $1.8 million during the same period [2]. - For the nine months ending September 30, 2025, Aquawolf generated $12.0 million in revenue and $1.3 million in net income [2]. Transaction Details - At closing, Mammoth Energy Partners LLC received total cash proceeds of $23.5 million, with an additional $2.5 million placed into escrow for post-closing adjustments and indemnified liabilities until at least December 1, 2026 [3]. - The company entered into a consent and release agreement with Fifth Third Bank, which consented to the transaction and agreed to release associated collateral, leaving the company's borrowing base unchanged [4]. Strategic Insights - The CFO of Mammoth stated that the transaction demonstrates the strategic value unlocked this year, highlighting the growth of the Engineering business since its inception in 2018 [5]. - The sale reinforces the belief that the underlying value of Mammoth is significantly disconnected from its current share price, indicating the company's ability to build and monetize businesses organically [6].

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $14.8 million, down from $16.4 million in Q2 and $17.1 million year-over-year, primarily due to the divestiture of the Piranha division assets and underperformance in the sand segment [4][5] - Net loss from continuing operations was $12.1 million, or $0.25 per diluted share, compared to a loss of $8.9 million, or $0.18 per diluted share, in Q3 2024 [5][17] - Adjusted EBITDA from continuing operations was a loss of $4.4 million in Q3 compared to a loss of $2.9 million in the prior year [18] Business Line Data and Key Metrics Changes - Rentals segment revenue was $2.8 million, down 11% sequentially but up 24% year-over-year, with aviation performing well [13][14] - Infrastructure segment revenue declined 13% sequentially to $4.8 million, impacted by operational execution challenges [15] - Sand segment revenue was $2.7 million, down 49% from Q2 and 44% year-over-year, reflecting the Piranha division divestiture and weather-related disruptions [16] - Accommodations revenue increased 29% sequentially to $2.3 million, with solid EBITDA growth [16] Market Data and Key Metrics Changes - Market fundamentals in energy services remain steady, with firm pricing in most basins [7] - Infrastructure demand is benefiting from grid hardening, broadband expansion, and data center investments [8] - The aviation platform is positioned to capture sustained leasing demand in the regional passenger market [8] Company Strategy and Development Direction - The company is focused on transforming and simplifying its portfolio towards higher-return businesses, with a notable emphasis on the drilling segment [4][6] - Capital deployment is disciplined, with investments directed towards aviation assets that generate consistent cash flow [7][8] - The company aims to build a leaner organization centered on sustainable returns rather than scale [6][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the sand and infrastructure segments but remains optimistic about the long-term opportunities [10][11] - The company expects improved cash generation and margin recovery in 2026 as transformation initiatives take hold [22][23] - Management emphasizes the importance of operational excellence and strategic capital deployment for future growth [30] Other Important Information - The company maintained a strong balance sheet with $110.9 million in unrestricted cash and total liquidity of approximately $153.4 million [20] - Subsequent to the quarter end, approximately $19.8 million of restricted cash was released, improving the liquidity position [21] Q&A Session Summary Question: Visibility for sand volumes in 2026 - Management expects an increase in sand volumes compared to Q3, with encouraging sales dialogues for 2026 [24][25] Question: Balance sheet details - Cash and marketable securities were about $123 million, excluding $10 million in escrow and $5 to $10 million from land rigs held for sale [26][27] Question: Path to getting the sand business back to free cash flow neutral - Management highlighted several levers, including encouraging sales dialogues and one-time charges related to railcar returns [28][29]

Financial Performance - Total revenue from continuing operations for Q3 2025 was $14.8 million, a decrease of 13.5% from $17.1 million in Q3 2024 and a decrease of 9.8% from $16.4 million in Q2 2025[4] - Net loss from continuing operations for Q3 2025 was $12.1 million, or $0.25 per diluted share, compared to a net loss of $8.9 million, or $0.18 per diluted share, in Q3 2024[5] - Adjusted EBITDA from continuing operations was ($4.4) million for Q3 2025, worsening from ($2.9) million in Q3 2024 and ($2.8) million in Q2 2025[6] - Total revenue for the three months ended September 30, 2025, was $14,801,000, a decrease of 13.8% compared to $17,052,000 for the same period in 2024[28] - The company reported a comprehensive loss of $12,795,000 for the three months ended September 30, 2025, compared to a comprehensive loss of $23,917,000 for the same period in 2024[28] - The company reported a net loss from continuing operations of $(12,058) million for the three months ended September 30, 2025, compared to $(8,865) million in the same period of 2024[38] - The company experienced a total revenue of $46,802 million for the nine months ended September 30, 2025, slightly down from $48,418 million in the same period of 2024, a decrease of approximately 3.3%[34] Segment Performance - Infrastructure services segment revenue increased to $4.8 million in Q3 2025 from $4.4 million in Q3 2024, driven by higher fiber optic activity[7] - Natural sand proppant services segment revenue decreased to $2.7 million in Q3 2025 from $4.9 million in Q3 2024, with sales of approximately 122,000 tons at an average price of $18.26 per ton[9] - Accommodation services segment revenue was $2.3 million in Q3 2025, down from $2.9 million in Q3 2024, with an average of 185 rooms utilized[10] - Drilling services revenue increased to $2.3 million in Q3 2025 from $1.6 million in Q3 2024, attributed to higher utilization[11] - Revenue from external customers for the Rentals segment in the nine months ended September 30, 2025, was $7,744 million, up from $5,594 million in the same period of 2024, reflecting an increase of approximately 38.4%[34] - The Infrastructure segment reported revenue of $14,881 million for the nine months ended September 30, 2025, compared to $13,957 million in 2024, marking an increase of about 6.6%[34] Liquidity and Capital Expenditures - Total liquidity as of September 30, 2025, was $153.4 million, with unrestricted cash and cash equivalents of $98.2 million and no debt[4][13] - As of October 29, 2025, total liquidity increased to $166.7 million, with unrestricted cash on hand of $106.6 million[14] - Capital expenditures for Q3 2025 totaled $17.3 million, primarily for the expansion of the aviation rental fleet[15] Assets and Liabilities - Cash, cash equivalents, and restricted cash at the end of the period was $127,687,000, significantly up from $6,165,000 at the end of the same period in 2024[30] - Total current assets increased to $199,009,000 as of September 30, 2025, compared to $188,587,000 as of December 31, 2024[25] - Total liabilities decreased to $87,510,000 as of September 30, 2025, from $131,213,000 as of December 31, 2024[25] - Total equity decreased to $249,243,000 as of September 30, 2025, from $252,818,000 as of December 31, 2024[25] Expenses - Cost of revenue for the three months ended September 30, 2025, was $14,020 million, compared to $13,433 million in the same period of 2024, an increase of approximately 4.4%[32] - Selling, general and administrative expenses for the three months ended September 30, 2025, totaled $5,160 million, up from $6,561 million in the same period of 2024, a decrease of about 21.4%[32] - The company’s total expenses for the three months ended September 30, 2025, were $18,180 million, compared to $17,994 million in the same period of 2024, reflecting a slight increase[32] Impairment - The company incurred impairment of long-lived assets amounting to $31,669,000 during the nine months ended September 30, 2025[30] Share Information - The weighted average number of shares outstanding for the three months ended September 30, 2025, was 48,358,000, compared to 48,127,000 for the same period in 2024[28] - Adjusted EBITDA for the three months ended September 30, 2025, was $(4,379) million, compared to $(2,942) million for the same period in 2024, indicating a worsening performance[38] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(8,841) million, compared to $(163,272) million in the same period of 2024, indicating a significant decline[38]

Core Insights - Mammoth Energy Services reported a total revenue of $14.8 million for Q3 2025, a decrease from $17.1 million in Q3 2024 and $16.4 million in Q2 2025 [3][4] - The company experienced a net loss from continuing operations of $12.1 million, or $0.25 per diluted share, compared to a loss of $8.9 million, or $0.18 per diluted share, in Q3 2024 [4][22] - Adjusted EBITDA from continuing operations was ($4.4) million for Q3 2025, worsening from ($2.9) million in Q3 2024 [5] Financial Overview - Total liquidity as of September 30, 2025, was approximately $153.4 million, with no debt, providing financial flexibility [3][12] - The infrastructure services segment generated $4.8 million in revenue, up from $4.4 million in Q3 2024, driven by increased fiber optic activity [6] - The rental services segment reported revenue of $2.8 million, an increase from $2.2 million in Q3 2024, attributed to expanded aviation rental offerings [7] - Revenue from natural sand proppant services fell to $2.7 million, down from $4.9 million in Q3 2024, with a decrease in sales volume and average sales price [8] - Accommodation services revenue decreased to $2.3 million from $2.9 million in Q3 2024, with average room utilization dropping [9] - Drilling services revenue increased to $2.3 million from $1.6 million in Q3 2024, primarily due to higher utilization [10] Operational Highlights - Selling, general and administrative expenses decreased to $5.2 million from $6.8 million in Q3 2024, mainly due to lower legal fees [11] - Capital expenditures for Q3 2025 totaled $17.3 million, primarily for the expansion of the aviation rental fleet [14] - As of October 29, 2025, unrestricted cash on hand was $106.6 million, with total liquidity increasing to $166.7 million [13]

Core Insights - Mammoth Energy Services (NASDAQ: TUSK) has shifted its business focus by divesting some infrastructure subsidiaries, which represented approximately 85% to 90% of its infrastructure business, along with its pressure pumping equipment [2] Group 1: Company Changes - The company has sold off significant portions of its infrastructure business, indicating a strategic pivot in operations [2] - The divestiture is part of a broader strategy to refocus on core competencies and potentially enhance shareholder value [2] Group 2: Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [2] - Chow co-founded a mobile gaming company that was acquired by PENN Entertainment, showcasing his experience in both analytical and entrepreneurial ventures [2]

Core Points - Mammoth Energy Services, Inc. will host a conference call on October 31, 2025, to discuss its third-quarter results for the period ending September 30, 2025 [1][2] - The conference call will start at 11:00 a.m. Eastern Time and will be accessible via the company's website or by phone [2][3] - A telephonic replay of the call will be available until November 7, 2025, and an archived webcast will be accessible shortly after the call [3] Company Overview - Mammoth Energy Services is an integrated, growth-oriented company providing a diversified suite of rental, infrastructure, and energy services across North America [5] - The company's offerings include specialized equipment rentals for aviation, construction, and energy operations, as well as utility infrastructure solutions [5] - Mammoth also provides natural sand proppant for hydraulic fracturing, directional drilling services, and workforce accommodation facilities for large-scale projects in remote locations [5]

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section details various forward-looking statements and the risks that could cause actual results to differ from expectations [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements and risks, such as divestitures, commodity price volatility, and the PREPA settlement, that could cause actual results to differ - Key factors that could affect actual results include the impact of recent divestitures of subsidiaries like 5 Star Electric and hydraulic fracturing equipment[10](index=10&type=chunk) - The company identifies volatility in oil and natural gas prices, actions by OPEC+, and general economic conditions as significant risks[10](index=10&type=chunk) - Potential delays or failure to receive the remaining payment under the settlement agreement with the Puerto Rico Electric Power Authority (PREPA) is noted as a forward-looking risk[10](index=10&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2025, including balance sheets, statements of operations, changes in equity, cash flows, and comprehensive notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of **$364.2 million**, a decrease from **$384.0 million** at year-end 2024, primarily due to divestitures. Cash increased to **$127.3 million** from **$60.8 million**, while total liabilities decreased and total equity increased Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $127.3 | $60.8 | | Total current assets | $240.1 | $188.6 | | Total assets | $364.2 | $384.0 | | **Liabilities & Equity** | | | | Total current liabilities | $96.1 | $114.5 | | Total liabilities | $102.2 | $131.2 | | Total equity | $262.0 | $252.8 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For Q2 2025, the company reported a net income of **$8.8 million**, a significant improvement from a **$156.0 million** net loss in Q2 2024, driven by income from discontinued operations and absence of prior-year PREPA charges Q2 Statement of Operations Highlights (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $16.4 | $16.0 | | Operating Loss | $(36.4) | $(96.0) | | Net Loss from Continuing Operations | $(35.7) | $(155.6) | | Net Income (Loss) from Discontinued Operations | $44.5 | $(0.4) | | **Net Income (Loss)** | **$8.8** | **$(156.0)** | | **Net Income (Loss) per Share** | **$0.18** | **$(3.25)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by investing activities was **$88.9 million**, driven by **$111.2 million** from discontinued operations, resulting in a net cash increase of **$75.1 million** Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(9.8) | $40.5 | | Net cash provided by (used in) investing activities | $88.9 | $(4.5) | | Net cash used in financing activities | $(4.1) | $(50.0) | | **Net increase (decrease) in cash** | **$75.1** | **$(14.0)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial results, including strategic divestitures, a **$31.7 million** impairment on sand proppant assets, full repayment of the term credit facility, and updates on the PREPA settlement - On April 11, 2025, the company sold a portion of its infrastructure services entities for **$108.7 million**. On June 16, 2025, it sold all equipment from its hydraulic fracturing services for **$15.0 million**. These are reported as discontinued operations[30](index=30&type=chunk) - The company recognized a **$31.7 million** impairment expense on natural sand proppant assets at its Piranha and Muskie processing plants, which were reclassified as held for sale in Q2 2025[52](index=52&type=chunk)[77](index=77&type=chunk) - As of June 30, 2025, PREPA owes Cobra **$20.0 million** under the settlement agreement, payable after PREPA's bankruptcy plan becomes effective[42](index=42&type=chunk)[131](index=131&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift post-divestitures, reporting a Q2 2025 net income of **$8.8 million** (vs. **$156.0 million** loss in Q2 2024) driven by discontinued operations and improved liquidity - The company completed the sale of its distribution, transmission, and substation operations for **$108.7 million** and its hydraulic fracturing equipment for **$15.0 million**, shifting its strategic focus[157](index=157&type=chunk) Q2 2025 Financial Overview | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $16.4 million | $16.0 million | | Net Income (Loss) | $8.8 million | $(156.0) million | | Net Income (Loss) per Share | $0.18 | $(3.25) | | Adjusted EBITDA | $(2.8) million | $(164.6) million | - For the second half of 2025, management expects to generate an adjusted EBITDA loss from continuing operations of **$3.0 million** to **$4.0 million**[165](index=165&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased **2%** year-over-year to **$16.4 million**, driven by growth in Rental, Infrastructure, and Sand services, while operating loss decreased to **$36.4 million** from **$96.0 million** due to the absence of prior-year PREPA charges Q2 Revenue by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Rental services | $3.1 | $1.8 | +72% | | Infrastructure services | $5.4 | $4.5 | +20% | | Natural sand proppant services | $5.4 | $4.7 | +15% | | Accommodation services | $1.8 | $2.7 | -33% | - The company recognized a **$31.7 million** impairment expense on assets related to its natural sand proppant operations during Q2 2025[183](index=183&type=chunk) - Selling, general and administrative (SG&A) expenses decreased to **$5.3 million** in Q2 2025 from **$95.3 million** in Q2 2024, primarily due to an **$89.2 million** charge related to the PREPA settlement in the prior-year period[180](index=180&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly strengthened, with cash increasing to **$127.3 million** at June 30, 2025, and an undrawn revolving credit facility, while capital expenditures for 2025 are estimated at **$42.0 million** Liquidity Summary (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $127.3 | $60.8 | | Revolving credit facility borrowing base | $75.0 | $25.2 | - Capital expenditures for continuing operations totaled **$27.3 million** for the first six months of 2025, with a full-year estimate of approximately **$42.0 million**[247](index=247&type=chunk) - The term credit facility with Wexford was fully paid off and terminated on October 2, 2024[239](index=239&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies its primary market risks as being tied to the volatility of the U.S. oil and natural gas and utility infrastructure industries, including interest rate, foreign currency, and customer credit risks - The company is exposed to interest rate risk through its revolving credit facility, which has a variable interest rate[253](index=253&type=chunk) - Foreign currency risk exists due to the accommodation services segment generating revenue and incurring expenses in Canadian dollars. As of June 30, 2025, the company held **$2.8 million** in Canadian dollars[254](index=254&type=chunk) - Significant customer credit risk is highlighted, specifically the **$20.0 million** receivable due from PREPA, which is in bankruptcy proceedings[256](index=256&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Operating Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[261](index=261&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[262](index=262&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and refers to Note 18 for detailed disclosures, expecting no material adverse effect beyond what is disclosed - For detailed information on legal proceedings, the report refers to Note 18 of the unaudited condensed consolidated financial statements[264](index=264&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) The company's operations remain subject to risk factors previously disclosed in its Annual Report on Form 10-K, with no new or materially changed risks presented - The company's risk factors have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[265](index=265&type=chunk) [Item 4. Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company's operations are subject to the Federal Mine Safety and Health Act of 1977, with required safety violation information included in Exhibit 95.1 - Information regarding mine safety violations required by Section 1503(a) of the Dodd-Frank Act is included in Exhibit 95.1 to this Form 10-Q[268](index=268&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the 10-Q report, including purchase agreements for divestitures, credit agreement amendments, and officer certifications - Key exhibits filed include the Equity Interest Purchase Agreement for the T&D Transaction (Exhibit 10.3) and the Equipment Purchase Agreement for the Pressure Pumping Transaction (Exhibit 10.4)[273](index=273&type=chunk) - Certifications by the Chief Operating Officer and Chief Financial Officer pursuant to Sarbanes-Oxley Sections 302 and 906 are included as Exhibits 31.1, 31.2, 32.1, and 32.2[273](index=273&type=chunk)