Mammoth Energy Services reduces credit facility and appoints new COO

Published 03/07/2025, 14:04
Mammoth Energy Services reduces credit facility and appoints new COO

Mammoth Energy Services, Inc. (NASDAQ:TUSK), a $134 million market cap energy services company, announced Wednesday that it has amended its revolving credit facility with Fifth Third Bank, National Association, reducing the available commitments from $75 million to $50 million. The change was made through a letter agreement signed on July 2, 2025, according to a statement released in a Securities and Exchange Commission filing. InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.78, suggesting the facility reduction aligns with its cash management strategy.

The company, which provides oil and gas field services and generates annual revenue of $207 million, stated that the reduction affects the Revolving Loan Commitments as defined in its existing credit agreement with the lender. No additional terms of the amendment were disclosed in the filing. According to InvestingPro analysis, TUSK holds more cash than debt on its balance sheet, suggesting a conservative financial approach.

Separately, Mammoth Energy Services reported that Bernard Lancaster has been appointed as Chief Operating Officer, effective Tuesday. The company’s board of directors approved compensation for Mr. Lancaster that includes a base salary of $300,000 per year. He is also eligible for an annual discretionary bonus based on personal and company performance.

These announcements were made as part of a press release statement included in the company’s SEC Form 8-K filing.

In other recent news, Mammoth Energy Services reported its first-quarter 2025 financial results, surpassing expectations with an earnings per share (EPS) of -$0.01, compared to the forecasted -$0.09. The company also reported revenue of $62.5 million, significantly exceeding the projected $38.2 million. In addition, Mammoth Energy’s shareholders approved the re-election of several board members and executive compensation at the Annual Meeting of Stockholders. The company also ratified the appointment of Deloitte & Touche LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025. Furthermore, Mammoth Energy appointed Phil Lancaster to its board as a director, following his decision to step down as CEO. The board determined that Arthur Amron, the chairman, meets the independence standards set by Nasdaq. In strategic moves, Mammoth Energy completed the sale of three infrastructure subsidiaries and acquired eight small passenger aircraft, enhancing its rental services fleet. These developments reflect the company’s strategic focus on expanding its equipment rentals and pressure pumping fleet conversions.

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