Mammoth Energy Services (NASDAQ: TUSK) is restructuring its portfolio with the $108.7 million sale of three infrastructure subsidiaries to Peak Utility Services Group. The move, which sent TUSK shares up roughly 23%, delivers a significant boost to Mammoth’s balance sheet while signaling a renewed focus on capital deployment and strategic diversification.
The sale includes 5 Star Electric, Higher Power Electrical, and Python Equipment—subsidiaries Mammoth originally acquired in 2017. At closing, Mammoth received $98.3 million in cash, with an additional $10.4 million held in escrow for potential adjustments and liabilities. The company now holds approximately $160 million in cash, positioning it for new investment opportunities.
As part of the agreement, current CEO Phil Lancaster will transition to Peak by July 1, 2025, or upon the appointment of his successor. Mammoth’s board has initiated a formal search for a new CEO to guide the company through its next phase.
In addition to the divestiture, Mammoth announced the acquisition of eight small passenger aircraft currently leased to a commuter airline. The $11.5 million purchase is expected to be immediately accretive to financial results and will expand the company’s aircraft rental services fleet.
Mammoth also amended its revolving credit facility with Fifth Third Bank to permit the asset sale, authorize share repurchases of up to $50 million or 10 million shares, and broaden investment parameters to include private equity and public securities. CFO Mark Layton emphasized that the strengthened liquidity and expanded investment options provide new levers to deliver value to shareholders.
Layton added that preliminary Q1 results point to continued financial improvement, including positive adjusted EBITDA, building on momentum from the previous quarter.
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