OKLAHOMA
CITY, Oct. 1, 2024 /PRNewswire/ --Cobra
Acquisitions LLC ("Cobra"), a wholly owned subsidiary of Mammoth
Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK),
today announced the receipt of $150
million from the Commonwealth of Puerto Rico in accordance with the Settlement
Agreement with the Puerto Rico Electric Power Authority
("PREPA").
Arty Straehla, Chief Executive Officer, commented, "We are happy
to have received the initial $150
million in settlement proceeds. With this first installment,
we intend to extinguish all outstanding obligations under our term
credit facility on or before October 16,
2024 and we expect the remaining amount of approximately
$98.8 million, along with the
$38.4 million still owed to us
through the remaining installments, will have a transformative
impact on our business going forward. We now maintain a significant
cash position on our balance sheet, and we will take a meticulous
and strategic approach when deploying this capital. We intend to
pursue accretive, value-enhancing opportunities as we strive to
strengthen Mammoth for the future."
Under the terms of the Settlement Agreement, which was approved
by Judge Laura Taylor Swain, Cobra
will receive total settlement proceeds of $188.4 million. Of the $38.4 million still owed to Cobra, $18.4 million relates to funds PREPA has received
from the Federal Emergency Management Agency ("FEMA") but are
currently withholding. These funds are to be paid out according to
the terms of the Settlement Agreement, which can be found
below.
Settlement Agreement Terms
The proceeds of the
Settlement Agreement will be paid to Cobra through three
installments: (i) $150.0 million on
the later of (A) ten business days following approval of the
Settlement Agreement by the Title III Court and (B) August 31, 2024; (ii) $20.0 million within seven days following the
effective date of PREPA's plan of adjustment; and (iii)
$18.4 million in the Withheld FEMA
Funds within either (A) ten business days after the deadline for
appealing the entry of the settlement order by the Title III Court
under the applicable bankruptcy rules of procedure if no such
appeal is filed, or (B) if the provisions of the settlement order
allowing PREPA to release the Withheld FEMA Funds to Cobra without
retaining any liability to the Specified Municipalities are
appealed by the Specified Municipalities, within ten business days
of the filing of the notice of such appeal.
About Mammoth Energy Services, Inc.
Mammoth is an
integrated, growth-oriented energy services company focused on the
providing products and services to enable the exploration and
development of North American onshore unconventional oil and
natural gas reserves as well as the construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its infrastructure
services businesses. Mammoth's suite of services and products
include: well completion services, infrastructure 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 news 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, plans for stock repurchases under its stock repurchase
program, 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: 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 war in Ukraine and
the Israel-Hamas war on the global energy and capital markets and
global stability; performance of contracts and supply chain
disruptions; inflationary pressures; high interest rates and their
impact on the cost of capital; instability in the banking and
financial services sectors; the outcome of ongoing government
investigations and other legal proceedings; the failure to receive
or delays in receiving payments discussed in this news release to
settle all outstanding matters between Cobra and PREPA; 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, including
concerns over a potential economic slowdown or recession; impacts
of the recent federal infrastructure bill on the infrastructure
industry and our infrastructure services business; 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 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 comply with the applicable financial covenants
and other terms and conditions under Mammoth's revolving credit
facility and term loan; 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, Inc.