Mammoth Energy subsidiary sells engineering business to Qualus for $30M

Mammoth Energy (TUSK) Services announced that its subsidiary, Mammoth Energy Partners has completed a sale of all equity interests in its wholly owned subsidiary, Aquawolf to Qualus for an aggregate sales price of $30.0M, advancing the Company’s ongoing transformation and portfolio optimization initiatives. Aquawolf’s revenue grew from $12.1M in 2022 to $17.3M in 2024, with net income rising from $1.1M to $1.8M over the same period. For the nine months ended September 30 Aquawolf generated $12.0M in revenue and $1.3M in net income. At closing, Mammoth Energy Partners received total cash proceeds of $23.5M. An additional $2.5M was placed into escrow to fund post-closing adjustments for at least ninety days and indemnified liabilities until at least December 1, 2026. In conjunction with the transaction described above, the Company entered into a consent and release agreement with Fifth Third Bank, National Association in which Fifth Third consented to the transaction and agreed to release associated collateral. The Company’s borrowing base remains unchanged.