What Fueled Mammoth Energy's 8% After-Hours Surge?

Mammoth Energy Services Inc. (NASDAQ:TUSK) shares surged 7.65% in after-hours trading on Tuesday, climbing to $1.9 after the company announced a $30 million asset sale.

Check out the current price of TUSK stock here.

The stock closed Tuesday's regular session at $1.76, down 0.84%, according to Benzinga Pro data.

Strategic Divestiture Completed

The Oklahoma City–based energy services company completed the sale of all equity interests in its Aquawolf LLC subsidiary to Qualus LLC for $30 million, according to a Tuesday press release.

Mammoth Energy Partners LLC received $23.5 million in cash at closing, with another $2.5 million placed in escrow for at least 90 days to cover post-closing adjustments and indemnified liabilities through Dec. 2026.

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Through September, the subsidiary recorded $12.0 million in revenue and $1.3 million in net income.

Management Highlights Value Creation

Chief Financial Officer Mark Layton emphasized the transaction’s strategic importance, stating the company “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.”

Layton noted the sale “reinforces our belief that the underlying value across Mammoth is significantly disconnected from the current share price.”

Banking Arrangements Unchanged

Fifth Third Bank, National Association, consented to the transaction and released associated collateral through a consent and release agreement.

According to the company, its borrowing base remains unchanged.

Stock Performance

TUSK shares are down 40.77% year to date.

Mammoth Energy Services has a market capitalization of $85.06 million and a 52-week trading range of $1.68 to $3.52.

Benzinga Edge Stock Rankings indicate that TUSK stock has a negative price trend across all time frames. Analyze the performance of other companies in this market segment.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.