OKLAHOMA
CITY, March 14, 2022 /PRNewswire/ -- Mammoth
Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company")
today issued the following statement in response to Puerto Rico's governor Gov. Pedro Pierluisi's attempt to terminate the
$8.3 billion dollar bankruptcy
agreement that would have allowed the Puerto Rico Electric Power
Authority ("PREPA") to emerge from bankruptcy and pay its
creditors:
"This is yet another example of Puerto
Rico and PREPA continuing their resistance to pay their
bills. I commend Judge Laura Taylor
Swain for directing the Puerto Rico Fiscal Management and
Oversight Board ("FOMB") to advance a new deal for PREPA
immediately. While PREPA has begun addressing amounts owed to
post-bankruptcy creditors, Mammoth's subsidiary Cobra Acquisitions
LLC ("Cobra") is still owed more than $340
million dollars for work completed nearly three years ago.
PREPA is running out of excuses, and it is well past time for them
to make their creditors whole," said Arty Straehla, Chief Executive
Officer of Mammoth.
During a recent meeting of the FOMB in Puerto Rico, board member Justin Peterson made the following comments on
the need to hold PREPA accountable:
https://www.youtube.com/watch?v=0p3iRwyOfs8
JUSTIN PETERSON: "As some of
you know, who follow me on Twitter, I have called attention to this
matter because I think it is important that PREPA be held
accountable. Just so everybody understands that I had the
opportunity to have lunch with Arty Straehla, who is the CEO of
Mammoth in DC one day he came to see me. So, after the hurricane
when Puerto Rico needed help, they
called these guys, and they you know on a moment's notice deployed
people to help bring emergency restoration to the grid and they
were paid some and but not all and PREPA continued to run the meter
and ask a lot of this company who swung into action and did what it
was contracted to do, and they haven't been paid. And so I agree
with everything our chairman said that you know we want to work
with FEMA and work with the process and make sure that everything
that deserves to be paid is paid but I just I just want to
underscore for everybody what these guys did and I also want to
underscore that something that you said which is that when Members
of Congress have asked FEMA are you telling PREPA not to pay
these guys and FEMA'S denied it and so again you know maybe more
fake news that we have to deal with that we have to look into but
thank you for your comments."
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 restoration 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 up to
$900 million to Cobra in response to
a Request for Proposals ("RFP") process.
As of February 28, 2022, Mammoth,
through Cobra, is owed $344 million
including $117 million in interest
charges, as specified in the contract, on remaining invoices for
work Cobra completed nearly three years ago.
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.
Contacts:
Mark Layton,
CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary
Statements
This news release (and any oral statements
made regarding the subjects of this release, including on the
conference call announced herein) contains certain statements and
information that may constitute "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 press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, 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 the
Company'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, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from 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 severity and duration of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions and the resulting negative impact on demand for our
services; the volatility of oil and natural gas prices and actions
by OPEC members and other exporting nations affecting commodities
prices and production levels; the impact of the current
Russian/Ukrainian military conflict on the global energy and
capital markets and global stability; operational challenges
relating to the COVID-19 pandemic and efforts to mitigate the
spread of the virus, including logistical challenges, protecting
the health and well-being of our employees, remote work
arrangements, performance of contracts and supply chain
disruptions; the outcome of ongoing government investigations and
other legal proceedings, including those relating to the contracts
awarded to the Company's subsidiary Cobra Acquisitions LLC
("Cobra") by the Puerto Rico Electric Power Authority ("PREPA");
the failure to receive or delays in receiving governmental
authorizations, approvals and/or payments, including payments with
respect to the PREPA account receivable for prior services to PREPA
performed by Cobra; the Company's inability to replace the prior
levels of work in its business segments, including its
infrastructure and well completion services segments; risks
relating to economic conditions; whether a federal infrastructure
bill is implemented and the terms thereof; the loss of or
interruption in operations of one or more of Mammoth's significant
suppliers or customers; the loss of management and/or crews; the
outcome or settlement of our litigation matters, including the
adverse impact of the recent settlements with Gulfport Energy
Corporation and MasTec Renewables Puerto Rico, LLC, and the effect
on our financial condition and results of operations; the effects
of government regulation, permitting and other legal requirements;
operating risks; the adequacy of capital resources and liquidity;
Mammoth's ability to continue to comply with, or if applicable,
obtain a waiver of forecasted or actual noncompliance with certain
financial covenants and comply with other terms and conditions
under our recently amended revolving credit facility; weather;
natural disasters; litigation; volatility in commodity markets;
competition in the oil and natural gas and infrastructure
industries; and costs and availability of resources.
Investors 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. We undertake 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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SOURCE Mammoth Energy Services