Mammoth Energy Provides Status Update on PREPA Receivable
July 29 2021 - 4:15PM
On June 8, 2021, Mammoth Energy Services, Inc. (“Mammoth” or the
“Company”) (NASDAQ:TUSK) announced that the Federal Emergency
Management Agency (“FEMA”) released a Determination Memorandum
dated May 26, 2021 related to hurricane repair work performed by
Cobra Acquisitions LLC (“Cobra”) for the Puerto Rico Electric Power
Authority (“PREPA”). The Determination Memorandum raised two
contract compliance issues and, as a result, FEMA concluded that
approximately $47 million in costs were not authorized costs under
the contract. PREPA had 60 days from the receipt of FEMA’s
Determination Memorandum to file an appeal.
On July 23, 2021, with aid from Mammoth, PREPA
filed an appeal of the entire $47 million that FEMA de-obligated in
the May 26, 2021 Determination Memorandum. FEMA has 90 days
following the receipt of the appeal to notify PREPA of the
disposition of the appeal or request additional information. If
additional information is requested, FEMA will have 90 days from
the date the requested information is received to notify PREPA of
the disposition of the appeal. If PREPA does not receive a decision
within 180 days after the appeal was filed, PREPA can file a demand
for arbitration.
Separately, over the past two years, Mammoth has
sought and obtained help from Senate and Congressional members in
pursuit of collecting the receivable due from PREPA. The assistance
of these Senators and Congressional members has been beneficial to
the efforts to collect the receivable from PREPA and the Company
continues to pursue multiple avenues to collect the money owed from
PREPA.
About Mammoth Energy
Services, Inc.
Mammoth is an integrated, growth-oriented energy
services company focused on the construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its infrastructure
services businesses. The Company also provides products and
services to enable the exploration and development of North
American onshore unconventional oil and natural gas reserves.
Mammoth’s suite of services and products include: infrastructure
services, well completion services, natural sand and proppant
services, drilling services and other energy services. For more
information, please visit www.mammothenergy.com.
Contact: Mark Layton, Chief
Financial Officermlayton@mammothenergy.com(405) 608-6007
Media Contact:Peter
Mirijanianpeter@pmpadc.com(202) 464-8803
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