Mammoth Energy Services Completes Strategic Sale of Engineering Subsidiary Aquawolf

Mammoth Energy Services: A Strategic Move to Sell Aquawolf

Mammoth Energy Services, Inc. has taken a bold step forward as it announces the completion of the sale of its wholly owned subsidiary, Aquawolf LLC, to Qualus, LLC for an impressive sales price of $30 million. This move marks a significant milestone in Mammoth's ongoing efforts to optimize its portfolio and innovate its operations.

Aquawolf has shown notable revenue growth, increasing from $12.1 million in 2022 to $17.3 million in 2024. This positive trend reflects a robust demand for its services, coupled with a rise in net income from $1.1 million to $1.8 million during the same period. For the nine months ending September 30, 2025, Aquawolf has generated $12.0 million in revenue and a net income of $1.3 million, which underscores its financial health prior to the sale.

Upon the completion of the sale, Mammoth Energy Partners LLC, a subsidiary of Mammoth Energy Services, received cash proceeds totaling $23.5 million. Moreover, an additional $2.5 million was secured in escrow to accommodate post-transaction adjustments and indemnify any liabilities until at least December 1, 2026.

As part of this transaction, Mammoth also entered a consent and release agreement with Fifth Third Bank, National Association. This agreement allowed for the transaction to progress smoothly while also releasing any associated collateral, maintaining Mammoth's existing borrowing base unchanged.

Mark Layton, Mammoth's Chief Financial Officer, spoke positively about this strategic sale, noting, "This transaction provides another clear proof point of the strategic value we've unlocked this year. 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 million is a strong outcome and a credit to the people who built the business."

This sale not only reinforces Mammoth's strategy of creating shareholder value but also highlights the significant underlying worth of its assets compared to current market prices. Layton emphasized the company’s capability to build and monetize businesses successfully, suggesting that capital will continue to be deployed in ways that foster long-term returns.

Mammoth Energy Services stands as an integrated and growth-oriented company. It offers a diversified range of rental, infrastructure, and energy services throughout North America. Their offerings include specialized equipment rentals for sectors like aviation and construction, utility infrastructure solutions, natural sand proppant for hydraulic fracturing, and workforce accommodation facilities tailored for substantial projects in remote areas. This vast service platform, blended with technical expertise, empowers Mammoth to provide its customers with enhanced efficiency, flexibility, and overall value in their operations.

In conclusion, the strategic sale of Aquawolf demonstrates Mammoth Energy Services' commitment to growth through operational excellence and financial tact. The successful transition not only adds immediate cash flow to the company but positions it for future opportunities and expansions. Investors and stakeholders will be closely watching Mammoth as it continues to navigate the challenges of the energy sector while pursuing its vision for durable success and innovation.