Mammoth Expands Logistics / Transmission Offering via ARS/Brim Helicopter Acquisition
January 02 2019 - 6:00AM
Mammoth Energy Services, Inc. (“Mammoth”) (NASDAQ: TUSK) announced
a series of transactions that provide for an expansion of its
aviation services business. These transactions provide
immediate vertical integration for its Cobra subsidiary via aerial
powerline services while providing a platform to pursue additional
aviation service opportunities. These transactions include
the acquisition of 100% of Air Rescue Services (“ARS”) as well as
the formation of a joint venture between Mammoth and Wexford
Capital (“Wexford”) which purchased Brim Equipment Leasing
(“Brim”). Total consideration paid by Mammoth was $7.9
million. Both transactions were closed on December 21, 2018.
Arty Straehla Mammoth’s CEO stated, “The acquisitions of ARS and
Brim are yet another example of the further integration of our
operation while providing another strategic platform for
growth. We’ve been working with the team at ARS/Brim for the
past year in Puerto Rico and have been impressed with their
expertise and service offerings. Cobra’s T&D operations
will now have six helicopters in its fleet, three of which are
expected to operate in Puerto Rico. In addition, we expect
the integration of aviation assets will provide further advantage
for Cobra’s pursuit of turnkey transmission work throughout North
America.”
Air Rescue Services / Brim Equipment
Leasing
ARS offers a wide range of services in the Pacific Northwest
including aerial surveillance, offshore hoisting operations,
training services, search and rescue operations and transportation
services. ARS currently utilizes one MD 902 aircraft.
Brim holds all three FAA certifications (FAA 133 (external load
ops class A/B/C/D), FAA 135 (air carrier certificate) and FAA 137
(agricultural product dispersal)) and will initially serve as the
operator of six primarily light lift aircraft, including the MD600
aircraft previously owned by Mammoth, providing services and
applications including short haul/hoist operations, power line
construction, search and rescue among other services. The
initial ARS / Brim aviation fleet includes four MD-600 aircraft,
one MD-902 aircraft and one Agusta AW109SP aircraft.
About Mammoth Energy Services,
Inc.
Mammoth is an integrated, growth-oriented
company serving both the oil and gas and the electric utility
industry in North America and US territories. Mammoth's
subsidiaries provide a diversified set of services to the
exploration and production industry including pressure pumping,
coil tubing, natural sand and proppant services as well as
trucking, drilling, cementing, water transfer among others. Its
infrastructure division provides transmission, distribution and
logistics services to various public and private owned utilities
throughout the US and Puerto Rico.
Investor Contact: Don Crist – Director of
Investor Relationsdcrist@mammothenergy.com(405) 608-6048
Forward-Looking Statements and
Cautionary Statements
This news release (and any oral statements made
regarding the subjects of this release) contains certain statements
and information that include “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical facts
that address activities, events or developments that Mammoth
expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words “anticipate,” “believe,”
“ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,”
“forecasts,” “predict,” “outlook,” “aim,” “will,” “could,”
“should,” “potential,” “would,” “may,” “probable,” “likely” and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this news release may include statements, estimates and
projections regarding Mammoth’s business outlook and plans, future
financial position, liquidity and capital resources, operations,
performance, including under Cobra’s utility infrastructure
restoration and reconstruction contracts in Puerto Rico,
acquisitions, returns, capital expenditure budgets, costs and other
guidance regarding future developments. Forward-looking statements
are not assurances of future performance. These forward-looking
statements are based on management’s current expectations and
beliefs, forecasts for Mammoth’s existing operations, experience
and perception of historical trends, current conditions,
anticipated future developments and their effect on Mammoth, and
other factors believed to be appropriate. Although management
believes that the expectations and assumptions reflected in these
forward-looking statements are reasonable as and when made, no
assurance can be given that these assumptions are accurate or that
any of these expectations will be achieved (in full or at all).
Moreover, these forward-looking statements are subject to
significant risks and uncertainties, including those described in
Mammoth’s Annual Report on Form 10-K, Quarterly Reports on Form
10‑Q, Current Reports on Form 8‑K and other filings Mammoth makes
with the Securities and Exchange Commission, which may cause actual
results to differ materially from its historical experience and
present expectations or projections which are implied or expressed
by the forward-looking statements. Important factors that could
cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to: the
failure to receive or delays in receiving governmental
authorizations, approvals and/or payments; risks relating to
economic conditions; delays in or failure of delivery of
current or future orders of specialized equipment; the loss of or
interruption in operations of one or more key suppliers or
customers; the effects of government regulation, permitting and
other legal requirements; operating risks; the adequacy of our
capital resources and liquidity; weather; natural disasters;
litigation; competition in the oil and natural gas and
infrastructure industries; and costs and availability of
resources.
Readers are cautioned not to place undue
reliance on any forward-looking statement which speaks only as of
the date on which such statement is made. Mammoth undertakes no
obligation to correct, revise or update any forward‑looking
statement after the date such statement is made, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
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