Mammoth Energy Services (TUSK, Financial) has successfully concluded a major transaction through its subsidiary, Lion Power Services, by selling its equity interests in three wholly-owned subsidiaries to Peak Utility Services Group. The subsidiaries, namely 5 Star Electric, Higher Power Electrical, and Python Equipment, were sold for a total of $108.7 million. Upon closing, Lion Power received $98.3 million in cash, with $10.4 million placed into escrow for post-closing adjustments and indemnified liabilities until at least May 15, 2026.
As part of this deal, Phil Lancaster, currently CEO of Mammoth, will transition to a role at Peak either by July 1, 2025, or upon the appointment of a new CEO. In another strategic move, Mammoth also acquired eight small passenger aircraft, currently leased to a commuter airline, at a cost of approximately $11.5 million.
Mammoth's Chief Financial Officer, Mark Layton, expressed satisfaction with the transaction, highlighting it as evidence of the company's substantial growth over the past eight years. He pointed to improved financial performance in late 2024 and projected optimistic results and positive Adjusted EBITDA for the first quarter of 2025. The company has amended its credit facility to enhance shareholder value through potential stock buybacks and additional market investments. These strategic developments aim to strengthen Mammoth's liquidity and growth prospects in the coming year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Mammoth Energy Services Inc (TUSK, Financial) is $4.20 with a high estimate of $4.20 and a low estimate of $4.20. The average target implies an upside of 122.22% from the current price of $1.89. More detailed estimate data can be found on the Mammoth Energy Services Inc (TUSK) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Mammoth Energy Services Inc's (TUSK, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Mammoth Energy Services Inc (TUSK, Financial) in one year is $2.22, suggesting a upside of 17.46% from the current price of $1.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Mammoth Energy Services Inc (TUSK) Summary page.
