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Mammoth Energy to Buy 3 Oilfield Service Companies
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Oklahoma-city based Mammoth Energy Services, Inc. (TUSK - Free Report) recently announced its plans to buy three oilfield services companies in an all-stock transaction worth $137 million.
We note that the company will be using 7 million shares of its common stock to acquire the three companies – Stingray Energy Services LLC, Stingray Cementing LLC, and Sturgeon Acquisitions LLC. Interestingly, Mammoth Energy will also gain ownership of South River Road LLC, Taylor Frac LLC, and Taylor Real Estate Investments LLC, which are owned by Sturgeon Acquisitions.
Taylor Frac owns 700,000 tons per year sand mine along with a processing plant with 37.1 million tons of recoverable reserves, which Mammoth Energy plans to expand to 1.75 million tons per year by the end of 2017. To this end, the company plans to spend $23 million. The company also expects to produce 300 new jobs by the end of 2017, following the acquisition.
The transaction is part of the plan outlined during the company’s initial public offering. The deal has the goal of helping Mammoth integrate the service offerings and provide an efficient price for consumers.
About the Company
Mammoth Energy is an integrated oilfield service company. The services it offers is segmented incorporating Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. The company is based in Oklahoma City, United States.
Price Performance
Mammoth has outperformed the Oil and Gas – US Integrated Industry by a huge margin over the last three months. During this period, Mammoth’s shares increased by 27.64%, compared with Industry’s decrease of 15.49%.
Global Partnersis likely to witness 32.54% year-over-year growth in sales in the first quarter of 2017. The company had a positive average earnings surprise of 96.55% in the last four quarters.
Arch Coal’s year-over-year growth sales estimate for 2017 is 16.51%. In the last quarter of 2016, the company had a positive earnings surprise of 5,400%.
The year-over-year sales growth estimates for Antero Resources is 11.01% for the current year. The company had an average positive earnings surprise of 239.10% in the last four quarters.
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Mammoth Energy to Buy 3 Oilfield Service Companies
Oklahoma-city based Mammoth Energy Services, Inc. (TUSK - Free Report) recently announced its plans to buy three oilfield services companies in an all-stock transaction worth $137 million.
We note that the company will be using 7 million shares of its common stock to acquire the three companies – Stingray Energy Services LLC, Stingray Cementing LLC, and Sturgeon Acquisitions LLC. Interestingly, Mammoth Energy will also gain ownership of South River Road LLC, Taylor Frac LLC, and Taylor Real Estate Investments LLC, which are owned by Sturgeon Acquisitions.
Taylor Frac owns 700,000 tons per year sand mine along with a processing plant with 37.1 million tons of recoverable reserves, which Mammoth Energy plans to expand to 1.75 million tons per year by the end of 2017. To this end, the company plans to spend $23 million. The company also expects to produce 300 new jobs by the end of 2017, following the acquisition.
The transaction is part of the plan outlined during the company’s initial public offering. The deal has the goal of helping Mammoth integrate the service offerings and provide an efficient price for consumers.
About the Company
Mammoth Energy is an integrated oilfield service company. The services it offers is segmented incorporating Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. The company is based in Oklahoma City, United States.
Price Performance
Mammoth has outperformed the Oil and Gas – US Integrated Industry by a huge margin over the last three months. During this period, Mammoth’s shares increased by 27.64%, compared with Industry’s decrease of 15.49%.
Zacks Rank and Stocks to Consider
Mammoth Energy carries a Zacks Rank #2 (Buy). Investors interested in energy industry can also consider stocks like Global Partners LP (GLP - Free Report) , Arch Coal Inc. (ARCH - Free Report) , and Antero Resources Corporation (AR - Free Report) . All these three companies sport aZacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partnersis likely to witness 32.54% year-over-year growth in sales in the first quarter of 2017. The company had a positive average earnings surprise of 96.55% in the last four quarters.
Arch Coal’s year-over-year growth sales estimate for 2017 is 16.51%. In the last quarter of 2016, the company had a positive earnings surprise of 5,400%.
The year-over-year sales growth estimates for Antero Resources is 11.01% for the current year. The company had an average positive earnings surprise of 239.10% in the last four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>