Mammoth Energy Announces Third Validation of Work Performed in Puerto Rico
December 08 2020 - 7:00AM
Mammoth Energy Services, Inc. (“Mammoth” or the “Company”)
(NASDAQ:TUSK) today announced that it has received and posted to
its website additional information related to its work in Puerto
Rico obtained from the Federal Emergency Management Agency (“FEMA”)
through a Freedom of Information Act request (“FOIA”). The
presentations, reports and additional data add further validation
that the work performed by Cobra Acquisitions LLC (“Cobra”) for the
Puerto Rico Electric Power Authority (“PREPA”) significantly aided
the restoration of power to millions of residents of Puerto Rico
under very harsh conditions.
Third Validation of Work Performed in Puerto
Rico
With the release of additional information through FOIA, we feel
that this is the third validation of the high-quality work Cobra
performed in Puerto Rico, these three validations include the
following:
- Determination Memorandum (“DM”) from
FEMA, dated December 23, 2017, stating that PREPA awarded the Cobra
contract in compliance with the emergency procurement provisions
and determined the costs under this contract to be reasonable.
- Report produced by the Rand
Corporation, an independent third party, stating that the Cobra
contract was procured in a reasonable procurement process and the
blended rates charged fall within estimated ranges for all
scenarios considered for the emergency work performed. The RAND
report was commissioned by the Homeland Security Operational and
Analysis Center (“HSOAC”) as a result of the Office of the
Inspector General (“OIG”) verbally questioning FEMA’s DM stating
that the Cobra contract was obtained in a reasonable manner and the
costs were reasonable.
- 781 pages obtained under a FOIA
request which, among other things, highlights that Cobra was
responsive to PREPA and the people of Puerto Rico (mobilizing
faster than the U.S. Army Corps of Engineers (“USACE”) or power
industry), assigned some of the most difficult work and was the
only company to work in all phases of recovery.
Federal
Emergency
Management
Agency Data
Following multiple requests under the Freedom of Information
Act, Mammoth recently received an additional 781 pages of
information from FEMA relating to the restoration of the electric
grid in Puerto Rico following Hurricane Maria. The information
received includes FEMA presentations, daily status reports,
restoration reports and meeting schedules with meeting notes. The
entire 781 pages have been placed on the Mammoth Energy website
along with the letter from FEMA and the Rand Report and are now
available for review by all interested parties at
http://ir.mammothenergy.com/events-presentations
Key findings
After evaluating the data, we believe it is clear that the Cobra
team played a significant role in restoring power to millions of
people in Puerto Rico. Specific data points include the
following:
- The Cobra team lived on barges and
was assigned the hardest-hit part of the island (Responsive Records
#2 page 86).
- As of 8/31/2018, the Cobra team was
assigned approximately 41% of all transmission restoration projects
and as of that date had completed more than 95% of all of these
assigned transmission projects (Responsive Records #2 page70).
- Cobra was the only contractor on the
island that was assigned work in all phases of restoration
(Responsive Records #1 page 29).
- Cobra dispatched significant
resources faster than the U.S. Army Corps of Engineers and the U.S.
power industry and stayed longer than all other contractors. In
total, Cobra teams represented approximately 19% of the total
electrical restoration workforce (28% of contractors) during the
bulk of the recovery period (November 2017 to June 2018)
(Responsive Records #1 page 24).
- As of October 2018, FEMA estimated
that the restoration work in Puerto Rico would cost approximately
$5.4 billion. Of this amount Cobra was expected to receive up to
approximately 30% of the total, despite doing approximately 41% of
the very challenging transmission work which required specialized
equipment (helicopters, etc.) (Responsive Records #1 page 25).
“The information we received in response to our FOIA requests
underscores the work our Cobra team performed in difficult
conditions to restore power to the island. I remain deeply
appreciative of the sacrifices the men and women with Cobra made to
complete their task. When coupled with the Rand Report (a copy of
which we filed with the Securities and Exchange Commission on June
9, 2020), this information further validates that Cobra carried out
its mission and fulfilled its contractual requirements at
reasonable rates. We are continuing to pursue the approximately
$293 million contractually owed to Mammoth,” commented Arty
Straehla, chief executive officer, Mammoth Energy Services.
About Mammoth Energy Services,
Inc.
Mammoth is an integrated, growth-oriented energy service company
serving companies engaged in the exploration and development of
North American onshore unconventional oil and natural gas reserves
and private utilities, public investor-owned utilities and
co-operative utilities through its energy infrastructure services.
Mammoth’s suite of services and products include: pressure pumping
services, infrastructure services, natural sand and proppant
services, drilling services and other energy services.
Investor Contact: Don Crist –
Director, Investor Relationsdcrist@mammothenergy.com(405)
608-6048
Media Contact:Peter
Mirijanianpeter@pmpadc.com(202) 464-8803
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