From Frac Sand to Flight: Mammoth Energy Secures $58M Aviation Loan

OKLAHOMA CITY, OK – October 30, 2026 — In a striking departure from its origins in the cyclical trenches of oilfield services, Mammoth Energy Services, Inc. is charting a radically different course. The company has formally accelerated its transformation into a commercial aviation lessor, announcing a senior secured term loan facility of up to $58 million with Bank7. The asset-backed financing, secured by its aviation subsidiaries Cobra Aviation Services LLC and Leopard Aviation LLC, marks a definitive pivot. A firm once synonymous with hydraulic fracturing proppant and utility repair is now leveraging an unencumbered aircraft fleet to capture yield in the sky.

The transaction, which closed on October 28, signals Mammoth's formal transition to using debt leverage to scale its rapidly expanding aviation leasing platform. No funds were drawn at closing, but the facility provides the dry powder necessary to acquire additional aviation assets in a market currently defined by intense supply constraints and soaring lease rates.

For investors and industry observers watching the evolution of energy infrastructure players, the move represents a fascinating case study in capital reallocation. By trading the volatility of oilfield services for the contracted cash flows of aviation leasing, the Oklahoma City-based firm is attempting to completely rewrite its corporate DNA.

The Great Pivot: Rebuilding an Oilfield Player

To understand the magnitude of this shift, one must look at the company's balance sheet over the past twenty-four months. Historically, Mammoth's fortunes were tethered to the boom-and-bust cycles of North American drilling and the unpredictable nature of grid repair contracts. Today, its primary growth engine is the Rental Services segment, which houses its aviation leasing operations.

As of September 30, the firm's aviation portfolio had an accumulated cost basis of approximately $134.9 million. This fleet comprises 44 assets, specifically 14 aircraft, 14 engines, and 16 auxiliary power units (APUs). This is a dramatic expansion from just 15 assets at the end of the third quarter in 2025. Notably, out of the 44 assets, 29 are already revenue-producing, up from 23 at the end of June.

The financial impact of this pivot is already materializing. In the third quarter of 2026, the Rental Services segment generated $9.6 million in revenue, a massive leap from $2.8 million in the same period last year. This growth was predominantly driven by a $5.4 million increase attributed directly to aviation fleet expansion and higher utilization rates.

"This facility is an important step for our aviation platform," Mark Layton, Mammoth's Chief Financial Officer, stated in the press release announcing the deal. "As of September 30, the total cost of our aviation portfolio was approximately $134.9 million, which had been funded without debt. Our aviation assets are well suited to asset-backed financing. This facility allows us to add prudent leverage and fund the next phase of fleet growth while preserving liquidity."

Debt Enters the Cockpit: Unpacking the Bank7 Agreement

Until this week, Mammoth's aviation expansion was a purely cash-funded endeavor, an anomaly in an aviation leasing industry that typically thrives on high financial leverage to maximize returns on equity. The Bank7 agreement changes that calculus, introducing a structured debt mechanism to accelerate growth.

The $58 million facility is bifurcated into a $25 million Term Loan A and a $33 million Term Loan B. Both tranches are available to be drawn within a 60-day window following the October 28 closing date. The loans bear interest at a floating rate—specifically, the greater of 6.25% or the Wall Street Journal prime rate plus 0.50%. Amortization begins in January 2027 based on a 48-month schedule, with the facility maturing in October 2030.

Advances under Term Loan B come with specific conditions attached. It was unavailable at closing and may only become accessible if Bank7 successfully syndicates or sells a participation interest of at least $10.0 million on terms acceptable to the lender, and provided that Term Loan A is fully advanced.

The introduction of debt covenants also imposes new financial disciplines on the transitioning company. Cobra Aviation Services LLC is required to maintain a debt service coverage ratio of at least 1.25 to 1.00 starting at the end of 2026. Furthermore, Mammoth Energy Services, acting as the guarantor, must maintain at least $25.0 million in unencumbered liquid assets at the close of each fiscal quarter.

Financial analysts tracking the sector note that while Mammoth's debt-free approach provided safety, it inherently limited return on equity compared to established aviation lessors. By securing this facility, the enterprise is aligning its capital structure with industry norms, utilizing the hard collateral of aircraft and engines to access cheaper capital for further acquisitions.

A Post-Divestiture Identity

The seed capital for this aviation empire was generated through a systematic dismantling of the company's legacy infrastructure businesses. In April 2025, the firm sold its subsidiaries 5 Star Electric, Higher Power Electrical, and Python Equipment LLC for an aggregate price of $108.7 million. Months later, in December 2025, it offloaded its engineering subsidiary, Aquawolf LLC, for $30.0 million.

These divestitures provided a massive infusion of liquidity—over $120 million in immediate cash proceeds—which management aggressively redeployed into the aviation sector. For the first nine months of 2026, capital expenditures totaled $97.5 million, with the vast majority funneled directly into the Rental Services segment to purchase aircraft and engines.

Yet, ghosts of the company's past still linger. The firm continues to grapple with outstanding receivables from the Puerto Rico Electric Power Authority (PREPA), stemming from grid restoration work following hurricane damage years ago. The timing and collectability of these massive legacy claims remain uncertain, frequently cited in the company's risk disclosures. By pivoting so aggressively into aviation, management has effectively created a new, high-growth entity that isolates its future cash flows from the ongoing PREPA bankruptcy quagmire.

Navigating a Supply-Constrained Sky

Mammoth's entry into commercial aviation leasing is impeccably timed to capitalize on a historic supply-demand imbalance. The global commercial aviation market is currently grappling with a severe shortage of airworthy aircraft and engines. Ongoing delivery delays from major original equipment manufacturers like Boeing and Airbus, combined with persistent supply chain disruptions, have forced airlines to extend existing leases and seek out secondary market lift.

This dynamic has created a highly favorable environment for lessors, driving up lease rates and asset values. Lessors now own more than half of the global commercial fleet and are projected to finance roughly 50% of the over $100 billion in annual aircraft deliveries expected through the end of the decade.

By acquiring assets like the eight small passenger aircraft it purchased in April 2025—which are currently under lease with a commuter airline—the company is locking in steady, predictable revenue streams. The broader market for aviation leasing, valued at over $200 billion, offers a vast runway for an enterprise that has proven its willingness to aggressively deploy capital.

The early results of this strategic reinvention are compelling. In its third-quarter 2026 financial results, reported just days after the Bank7 loan closing, the company revealed that revenue from continuing operations nearly doubled year-over-year to $21.3 million. More importantly, it achieved a positive net income of $0.3 million—a stark turnaround from a $12.6 million loss in the same quarter the previous year. Adjusted EBITDA more than doubled sequentially to $5.8 million.

Buoyed by these metrics, management has raised its full-year 2026 Adjusted EBITDA outlook for the third consecutive time and is projecting over 40% growth in that metric for 2027. As the global economy continues to demand both energy resilience and physical connectivity, Mammoth Energy Services has definitively chosen its new battlefield. Armed with $58 million in fresh borrowing capacity and an unencumbered fleet of aircraft, the former oilfield contractor is preparing for a steep ascent.