OKLAHOMA
CITY, March 29, 2022 /PRNewswire/ --
Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the
"Company") announced that its Chief Financial officer, Mark Layton, spoke at the 34th Public
Board Meeting of the Financial Oversight and Management Board for
Puerto Rico ("FOMB"), which took
place Friday in San Juan.
Layton stressed the importance of the Puerto Rico Electric Power
Authority ("PREPA") re-paying its financial obligations to Mammoth
for work conducted by its wholly owned subsidiary, Cobra
Acquisitions LLC ("Cobra"), rebuilding Puerto Rico's power grid in the aftermath of
Hurricane Maria in 2017.
Following Layton's remarks, Justin
Peterson, a member of the FOMB, added, "These guys
(Cobra) swung into action after Hurricane Maria and helped to
rebuild the grid, to restore emergency power and they have been
treated terribly and I think this is a horrible reflection on
Puerto Rico, unfortunately –
PREPA's conduct … I think this reflects really poorly, and I don't
know if anybody from PREPA is here, but I hope they're paying
attention."
Below is a transcript of Layton and Peterson's remarks, and a
link to the entire video exchange is available here:
https://youtu.be/WFPI31bg5Y8
MARK LAYTON, MAMMOTH CFO: I'm
the Chief Financial officer for Mammoth Energy Services and its
wholly-owned subsidiary, Cobra Acquisitions. To Justin's point,
we've not been paid since May of 2019 for the work that we
performed restoring power. A month ago, our representative Mr.
Heimberg addressed the Oversight Board in regards to some purported
directions from FEMA not to pay our invoices. Just to update the
Board on that: since that time, we've not received any update from
staff or anyone else in regards to support from that assertion, but
most importantly, we've not seen any direction from FEMA, inside of
any of PREPA's court filings, any determination memorandums from
FEMA or any official document. So we believe there is an excess of
$10 million dollars that is available
today for PREPA to be able to make disbursements on invoices that
we've submitted and that have been fully reviewed. We continue to
cooperate with that process and push it forward. As you've seen
recently with the Whitefish settlement, it appears that the
ratepayers will bear a significant proportion of these settlements.
Time is of the essence as it continues to accrue interest at a rate
in excess more than $3.3 million
dollars per month. So we would appreciate the Committee's
continued oversight. We have a significant claim. We think that
impacts the viability of any plan of adjustment for PREPA and would
appreciate the Oversight Board's attention to that matter.
JUSTIN PETERSON, FOMB MEMBER:
Thanks Mark. Just to review, as you said, we covered this last
month, but PREPA owes these guys $340
million dollars as of the end of February, including
interest, and that interest is accruing, compounding daily, as they
refuse to pay. PREPA has ignored Mammoth, doesn't meet with them
and right now is dragging its feet after the Court has ordered
PREPA to work with FEMA on a review process – PREPA is dragging its
feet on that -- and so this is important. These guys swung into
action after Hurricane Maria helped to rebuild the grid, to restore
emergency power and they have been treated terribly and I think
this is a horrible reflection on Puerto
Rico, unfortunately – PREPA's conduct. As somebody who wants
Puerto Rico to grow and wants
coming out of bankruptcy to mean something and for it to attract
more investment and attract more companies to be here, this is not
the kind of story that helps with that so I've been talking with
our staff and I want to publicly thank Alejandro for his attention
to this and looking into it, and I'm told there could be some
progress soon, we'll see. But in the meantime, anything I can do to
be of assistance I want to do it because a). you did the work, you
guys deserve to be paid, and b). I think this reflects really
poorly, and I don't know if anybody from PREPA is here, but I hope
they're paying attention.
QUESTION: (inaudible)
Peterson: There was a former executive that has been dealt
with, after that was surfaced PREPA continued to run the meter and
order up hundreds of millions of service. So, if they thought there
was an issue they should have picked another vendor but they
didn't. So they're still responsible.
Layton: And I think additionally, you can see in Judge
Swain's commentary regarding PREPA's assertions relative to that
matter that those legal arguments are "strained". And that's a
direct quote from Judge Swain. We continue to cooperate, to
Justin's point, on inquiries from FEMA to PREPA. I believe as of
Tuesday there were 49 RFIs that FEMA had sent to PREPA. PREPA had
responded to 30 of those 49. But that meter continues to run, so
time is of the essence, and there are undisputed amounts that are
owed that should be paid in order to stop the interest.
For more information related to the Puerto Rico situation, please go to the
attached link: https://puertorico.mammothenergy.com/
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
Investors:
Rick
Black
rblack@dennardlascar.com
(832) 435-0026
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.
View original
content:https://www.prnewswire.com/news-releases/mammoth-cfo-testifies-at-34th-public-meeting-of-financial-oversight-and-management-board-301512540.html
SOURCE Mammoth Energy Services