Mammoth Energy shares rise 10.48% intraday after selling Aquawolf subsidiary for $30M to boost portfolio optimization.

Mammoth Energy Services (NASDAQ: TUSK) surged 10.48% intraday following the announcement of a $30.0 million sale of its Aquawolf LLC subsidiary to Qualus, LLC. The transaction, which generated $23.5 million in immediate cash proceeds and $2.5 million in escrow, marked a strategic pivot to optimize Mammoth’s portfolio. The subsidiary, which grew revenue from $12.1 million in 2022 to $17.3 million in 2024, was sold to align with the company’s focus on core operations. Mammoth’s CFO highlighted the sale as evidence of its ability to build and monetize businesses, reinforcing confidence in its undervalued shares. The deal also secured Fifth Third Bank’s consent to release collateral without altering the company’s borrowing base, easing liquidity concerns. The acquisition by Qualus, a power infrastructure firm, underscored the subsidiary’s strategic value in grid modernization, further validating Mammoth’s restructuring efforts.