Mammoth Energy Services, Inc. announced on April 14, 2025, that its subsidiary, Lion Power Services LLC, completed the sale of three wholly-owned infrastructure subsidiaries—5 Star Electric, Higher Power Electrical, and Python Equipment—to Peak Utility Services Group, Inc. The aggregate sales price for these entities was $108.7 million, with Lion receiving $98.3 million in cash at closing. The divested businesses, acquired for less than $10 million in 2017, had grown to generate over $90 million in annual revenue and were sold at over 4x tangible book value and a 9x trailing EBITDA multiple.
Concurrently, Mammoth announced the purchase of eight small passenger aircraft for approximately $11.5 million. These aircraft are already under long-term leases with a commuter airline and are expected to be immediately accretive to Mammoth's financial results, expanding and diversifying the company's rental services fleet. This strategic move aims to generate predictable, recurring revenue streams.
Following these transactions, Mammoth's cash position increased to approximately $160 million. The company also amended its revolving credit facility to permit the sale, allow for share repurchases up to $50 million or 10 million shares by March 31, 2026, and expand investment opportunities. CEO Phil Lancaster will transition to Peak Utility Services Group upon the appointment of his successor at Mammoth, for which a search has been initiated.
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