Mammoth Energy Finalizes $30 Million Sale of Aquawolf to Qualus
Mammoth Energy Services, Inc. announced that its subsidiary, Mammoth Energy Partners LLC, completed the sale of all equity interests in its wholly owned subsidiary Aquawolf LLC to Qualus, LLC for a total sales price of $30 million. The transaction marks another step in Mammoth’s ongoing strategy to streamline its portfolio and redeploy capital toward higher-value opportunities.
Aquawolf’s Financial Performance
Aquawolf experienced steady financial growth in recent years.
Revenue and Income Growth
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Revenue increased from $12.1 million in 2022 to $17.3 million in 2024.
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Net income grew from $1.1 million to $1.8 million over the same period.
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For the nine months ending Sept. 30, 2025, Aquawolf generated:
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$12.0 million in revenue
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$1.3 million in net income
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These performance gains helped position the business as a strong asset for monetization.
Transaction Details
At closing, Mammoth Energy Partners LLC received $23.5 million in cash proceeds.
An additional $2.5 million was placed in escrow to fund post-closing adjustments for at least 90 days and indemnified liabilities until December 1, 2026.
Bank Consent and Collateral Release
In connection with the sale, Mammoth entered a consent and release agreement with Fifth Third Bank, National Association (“Fifth Third”).
Fifth Third:
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Formally consented to the transaction
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Released associated collateral
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Left Mammoth’s borrowing base unchanged
Leadership Commentary
CFO Mark Layton Praises Strategic Execution
Mammoth CFO Mark Layton highlighted the deal as meaningful proof of the company’s value-creation strategy:
“This transaction provides another clear proof point of the strategic value we’ve unlocked this year. We 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. Monetizing this business for approximately $30.0 million is a strong outcome and a credit to the people who built the business.”
Layton added that Mammoth believes the sale emphasizes a disconnect between the company’s underlying value and its current share price:
“We’ve shown an ability to build and monetize businesses organically, and we’ll continue to deploy capital where it creates returns and supports long-term value for shareholders.”
Mammoth stated that the proceeds will support further deployment opportunities as the company continues optimizing its operational portfolio.