What Fueled Mammoth Energy's 8% After-Hours Surge? - Mammoth Energy Services (NASDAQ:TUSK)

Core Viewpoint - Mammoth Energy Services Inc. announced a $30 million asset sale, leading to a 7.65% increase in its stock price during after-hours trading, reaching $1.9 [1]. Group 1: Asset Sale Details - The company completed the sale of all equity interests in its Aquawolf LLC subsidiary to Qualus LLC for $30 million [2]. - Mammoth Energy Partners LLC received $23.5 million in cash at closing, with an additional $2.5 million placed in escrow for at least 90 days for post-closing adjustments and indemnified liabilities through December 2026 [2]. Group 2: Financial Performance of Subsidiary - The Aquawolf subsidiary recorded $12.0 million in revenue and $1.3 million in net income through September [3]. Group 3: Management Insights - CFO Mark Layton highlighted the strategic importance of the transaction, noting that the Engineering business, which started in 2018, generated $17.3 million in revenue for 2024 [4]. - Layton expressed that the sale reinforces the belief that the underlying value of Mammoth is significantly disconnected from the current share price [4]. Group 4: Banking and Financial Position - Fifth Third Bank consented to the transaction and released associated collateral, with the company's borrowing base remaining unchanged [5]. Group 5: Stock Performance Overview - TUSK shares are down 40.77% year to date, with a market capitalization of $85.06 million and a 52-week trading range of $1.68 to $3.52 [6]. - Benzinga Edge Stock Rankings indicate a negative price trend for TUSK stock across all time frames [6].