OKLAHOMA CITY, Oct. 1, 2021 /PRNewswire/ --
"I hope this is resolved fairly to a company
that helped the most in the recovery."
– José Ortiz,
former PREPA CEO
"PREPA would often find reasons not to pay
Cobra – by, for instance, delaying their own inspections of
completed work – even though Cobra's PW was obligated, and funds
were awaiting draw-down by PREPA."
– Mark Merritt, former FEMA consultant to
Puerto Rico during Hurricane Maria
recovery
Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the
"Company") today released additional information from both former
Federal Emergency Management Agency ("FEMA") and Puerto Rico
Electric Power Authority ("PREPA") officials and representatives
reaffirming that the Company's subsidiary Cobra Acquisitions LLC
("Cobra") fulfilled its contractual requirements to rebuild and
restore power in Puerto Rico in
the aftermath of Hurricane Maria. PREPA continues to withhold,
without merit, more than $325 million
contractually owed to Cobra as of August 31,
2021.
Mammoth's Chief Executive Officer, Arty Straehla, commented:
"The men and women of our
company are proud of the work we performed and the services we
provided to the citizens of Puerto
Rico. Now, four years after Maria made landfall, we are
still awaiting payment while PREPA continues to breach their
contract. Experts have verified the work Cobra performed time and
time again, so it is far past time for Cobra to receive payment. We
appreciate the comments of former FEMA and PREPA officials, who
oversaw the recovery efforts after Hurricane Maria destroyed
Puerto Rico, further validating
the work our team performed in the harshest
conditions."
Affirmations have come from numerous reports and presentations
by independent government officials and experts engaged in the
effort to restore power to the island. These documents are on the
Mammoth website:
https://ir.mammothenergy.com/events-presentations.
The authoritative comments come from the following experts, the
content of which can be found both on the Mammoth website:
https://ir.mammothenergy.com/events-presentations and below.
José Ortiz, former PREPA
CEO (https://tinyurl.com/wksuzfw3)
"Thanks Arty, I hope this is
resolved fairly to a company that helped the most in the recovery.
Take care."
Carlos Torres,
Governor-appointed Power Restoration Coordinator ("PRC") for the
emergency restoration of electrical power in Puerto
Rico. (https://tinyurl.com/7m4v4f3x)
"My impression was that
Cobra generally performed good restoration work. I do not recall
reports of any significant deficiencies in Cobra's work during my
time in Puerto Rico. I also found
that Cobra demonstrated a strong commitment to safety."
Mark Merritt, former FEMA consultant to
Puerto
Rico (https://tinyurl.com/fcu8zerv)
"Restoring the power grid in
Puerto Rico was uniquely
challenging, as the terrain on the Island includes steep mountains
and triple-canopy jungles, among other obstacles. Transmission
restoration work, including potentially the installation of new
transmission towers, required helicopters. Cobra, which brought its
own helicopters and pilots, was very effective at performing its
work under difficult circumstances."
"PREPA would often find
reasons not to pay Cobra – by, for instance, delaying their own
inspections of completed work – even though Cobra's PW was
obligated, and funds were awaiting draw-down by PREPA."
"Nonetheless, I never
observed Cobra slowing or ceasing its work based on lack of
payment. On the contrary, I witnessed Cobra working at considerable
financial risk not knowing if and when they were going to get paid
by their client, PREPA, even though the funding had been made
available by FEMA."
"The entire Unified Command
Group ("UCG") favored allocation of work to Cobra because Cobra was
the most effective, and often the only available,
resource."
Following Hurricane Maria (September
2017) in Puerto Rico and
its complete destruction of the island's power grid, Mammoth,
through Cobra, was awarded an initial $200
million reconstruction contract in 2017. Through five
separate amendments to the original contract, the aggregate
contract amount was eventually increased to $945 million. PREPA awarded a second contract of
$900 million to Cobra in response to
a Request for Proposals (RFP) process.
As of August 31, 2021, Mammoth,
through Cobra, is owed $325 million
including $98 million in interest
charges, as specified in the contract, on remaining invoices for
work it has already completed.
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 Officer
mlayton@mammothenergy.com
(405) 608-6007
Media Contact:
Peter
Mirijanian
peter@pmpadc.com
(202) 464-8803
Investors:
Rick
Black
rblack@dennardlascar.com
(832) 435-0026
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content:https://www.prnewswire.com/news-releases/mammoth-energy-releases-verbatim-testimonials-from-former-fema-and-prepa-officials-supporting-the-vital-work-done-in-the-aftermath-of-hurricane-maria-yet-325-million-still-unpaid-by-prepa-as-of-august-31-2021-301389476.html
SOURCE Mammoth Energy Services, Inc.