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Mammoth Energy Sells Fracturing Equipment for $15 Million, Impairment Expense Expected.
ByAinvest
Friday, Jun 20, 2025 7:04 pm ET1min read
Mammoth Energy Services sold its hydraulic fracturing equipment to MGB Manufacturing for $15 million, leading to an impairment expense of $7.7 million to $9.2 million in Q2 2025. The company will report its hydraulic fracturing business as discontinued operations, reflecting a strategic shift in its business operations. TUSK stock has a neutral rating with a 52.4 overall score, influenced by financial challenges and valuation concerns. Technical analysis suggests mixed momentum.
Mammoth Energy Services, Inc. (TUSK) has recently completed the sale of its hydraulic fracturing equipment to MGB Manufacturing, LLC for $15 million. This transaction, finalized on June 16, 2025, is expected to result in an impairment expense of $7.7 million to $9.2 million during the second quarter of 2025. The carrying value of goodwill exceeded its fair value, necessitating the impairment expense. Additionally, the company will report its hydraulic fracturing business as discontinued operations in its financial statements, reflecting a strategic shift in its business operations [2].The overall stock score for Mammoth Energy Services is 52.4, according to TipRanks' AI Analyst, Spark. This score is influenced by financial challenges, including declining revenues and profitability, which are partially offset by strong operating cash flow. The earnings call provided some positive insights, such as revenue growth and an improved cash position. However, valuation concerns remain due to the negative P/E ratio. Technical analysis suggests mixed momentum, with short-term bullish signals not fully offsetting the longer-term bearish outlook. Strategic asset transactions and cash management are critical to improving the company’s financial health [2].
Mammoth Energy Services operates in the energy sector, focusing on services such as hydraulic fracturing and equipment leasing. The company is involved in well completion and transmission and distribution (T&D) services. The average trading volume for TUSK stock is 176,953 shares, with a current market cap of $140.1 million. The technical sentiment signal for the stock is to sell [2].
References:
[1] https://www.gurufocus.com/news/2931446/biorestorative-therapies-brtx-initiates-2-million-stock-buyback-program-brtx-stock-news
[2] https://www.tipranks.com/news/company-announcements/mammoth-energy-sells-fracturing-equipment-for-15-million
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