Mammoth Energy Services Update

New development makes TUSK a buy

This morning Mammoth Energy Servicse (TUSK) announced that they had sold most of its infrastructure business for $109 million.

Just as importantly, TUSK announced that it will launch a major share repurchase program up to the lesser of $50 million or 10 million shares by the end of March 2026.

I’ll keep the math simple here, but this new announcement shows how cheap TUSK is currently trading.

• TUSK has ~48 million shares outstanding as of March 2025.

• While the stock price is up almost 20% today on the news, it closed at $2.25 per share, implying a market cap of $108 million.

• The company has no net debt and a net cash position of $160 million after today’s transaction, meaning that it trades BELOW NET CASH!

• TUSK still has its oilfield services and fracking proppant business intact which are currently being ascribed negative implied value given where the stock trades today.

• There is also now a clear catalyst in the form of a major share buyback program. Assuming TUSK can buy back the full 10 million share authorization, this would imply more than 20% of current shares outstanding, which would significantly tighten the float and reprice the stock price higher.

• Even if we ascribe ZERO value to the rest of TUSK’s business, if we price the stock at cash value of $160 million, the stock price would have to rise above $3.30/share, implying ~50% easy upside.

I have written on TUSK previously, and the stock is down significantly since my last writeup.

But given how the math pencils, it seems clear to me that historical price action aside, TUSK remains a compelling buy opportunity.

If I am missing anything, please let me know in the comments!