Mammoth Energy announces multiple acquisitions
Mammoth Energy Services announced that it has entered into definitive agreements to acquire Sturgeon Acquisitions, Stingray Energy Services, LLC and Stingray Cementing, LLC for 7M shares of common stock. Mammoth anticipates closing the transactions in May 2017, subject to regulatory approval and other closing conditions. The definitive agreement for the acquisition of Sturgeon is with Gulfport Energy Corporation, Rhino Exploration LLC and an entity affiliated with Wexford Capital. The definitive agreements for the acquisition of Stingray Energy Services and Stingray Cementing are with the Wexford Affiliate and Gulfport. Under the terms of the agreements Mammoth will issue an aggregate of 7M shares of common stock based on the pro-rata ownership of the acquired businesses. Based upon a closing price of Mammoth's common stock of $19.06 per share on March 20, 2017, the value of the transaction is approximately $133.8M, including the assumption of $7.3M in debt and offset by a positive working capital balance of $6.7M as of February 28, 2017.