OKLAHOMA CITY,
March 31, 2022
/PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK)
("Mammoth" or the "Company") called on members of the Financial
Oversight and Management Board for Puerto
Rico ("FOMB"), who are in Washington D.C. to brief federal lawmakers on
recent activities, to take immediate and substantive action that
will result in Mammoth's wholly-owned subsidiary, Cobra
Acquisitions LLC ("Cobra") being paid the more than $340 million dollars owed related to the
restoration of power in Puerto
Rico more than three years ago:
"When disaster struck, the Mammoth team was
there for the people of Puerto
Rico, and now we need our elected representatives to be
there for us. Every day that passes is another day that the
interest piles up for the people of Puerto Rico and Mammoth's business activities
are hindered here in the United
States. The Puerto Rico Electric Power Authority ("PREPA")
has the financial resources obligated by U.S. taxpayers to pay
their debts, but they are simply choosing not to. Cobra needs the
FOMB and members of Congress to step in with strict oversight and
hold PREPA accountable. Time is of the
essence."
–
Mammoth's Chief Executive Officer, Arty Straehla
This week, Oklahoma City-based
News 9 investigated PREPA's unpaid bills in a story entitled
"Mammoth Energy Appealing To Federal Government Regarding
Payment Over $300 Million."
The entire segment is available here:
https://tinyurl.com/ms7xenhe
The story includes an interview with Justin Peterson, a member of the FOMB, who
said of Cobra's work: "These guys swung into action after
Hurricane Maria and they've been treated terribly."
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 $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 it has already completed.
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-calls-on-fomb--congress-to-hold-prepa-accountable-301514425.html
SOURCE Mammoth Energy Services