OKLAHOMA
CITY, Jan. 24, 2023 /PRNewswire/ -- Mammoth
Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company")
today announced that its wholly owned subsidiary Cobra Acquisitions
LLC ("Cobra") has submitted a certified claim for approximately
$379 million to the Federal Emergency
Management Agency ("FEMA") pursuant to the federal Contract
Disputes Act.
In the aftermath of Hurricane Maria in 2017, Puerto Rico was without electricity, and the
entire Island was declared a federal disaster zone. There was
an urgent need to restore power to the Island as quickly as
possible, but few companies had the ability to mobilize immediately
to an island, particularly one that had just been devastated.
Additionally, many companies were reticent about contracting with
the Puerto Rico Electric Power Authority ("PREPA"), which had
declared bankruptcy earlier in 2017. Nevertheless, Cobra
agreed to mobilize immediately and restore the power grid in
Puerto Rico based on assurances
from the highest levels of FEMA that it would be paid for its
work. Despite having successfully undertaken that Herculean
task, and despite spending years attempting to work with FEMA and
PREPA to collect this debt, more than five years after Hurricane
Maria hit, Cobra still has not been paid over $379 million that it is owed. Cobra is
hopeful that FEMA will agree to pay this claim, but Cobra is
prepared to exercise its appellate rights, including seeking
judicial review, if FEMA refuses to honor its commitment.
Arty Straehla, Chief Executive Officer, commented, "Despite
multiple affirmations of our work by FEMA itself, we remain unpaid
for work we completed in Puerto
Rico over three years ago. Our team answered FEMA's call for
assistance when it was needed, and we deserve to be paid for the
work we did."
Cobra is represented in this proceeding by Abbe Lowell and
Christopher Man from Winston &
Strawn LLP.
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: any continuing impacts of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions; 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 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; inflationary pressures; rising interest rates and
their impact on the cost of capital; 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, 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; the effects of government
regulation, permitting and other legal requirements; operating
risks; the adequacy of capital resources and liquidity; Mammoth's
ability to (i) continue to comply with or, if applicable, obtain a
waiver of forecasted or actual non-compliance with certain
financial covenants from its lenders and comply with other terms
and conditions under its amended revolving credit facility, as
amended, (ii) extend or refinance our revolving credit facility at
or prior to maturity on the terms acceptable to Mammoth or at all
and (iii) meet its financial projections associated with reducing
its debt; 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.