Mammoth Energy Services, Inc. Announces Sale of Engineering Business

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].