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Investing.com -- Mammoth Energy Services Inc (NASDAQ:TUSK) stock rose 8.2% in after-hours trading Tuesday following the company’s announcement that it sold its Aquawolf subsidiary for $30 million.
The Oklahoma City-based company said its subsidiary Mammoth Energy Partners LLC completed the sale of Aquawolf LLC to Qualus, LLC, receiving $23.5 million in cash at closing. An additional $2.5 million was placed in escrow to fund post-closing adjustments and indemnified liabilities.
The transaction advances Mammoth’s "ongoing transformation and portfolio optimization initiatives," according to the company. Aquawolf’s revenue grew from $12.1 million in 2022 to $17.3 million in 2024, while net income increased from $1.1 million to $1.8 million during the same period. For the first nine months of 2025, Aquawolf generated $12.0 million in revenue and $1.3 million in net income.
As part of the deal, Mammoth entered into an agreement with Fifth Third Bank, which consented to the transaction and agreed to release associated collateral. The company’s borrowing base remains unchanged.
"This transaction provides another clear proof point of the strategic value we’ve unlocked this year," said Mark Layton, Mammoth’s Chief Financial Officer. "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."
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