Mammoth Calls On PREPA To Pay the $40.4 Million Dollars that PREPA Shows as Immediately Available For Release
OKLAHOMA CITY, June 7, 2022 /PRNewswire/ — Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") is calling on the Puerto Rico Electric Power Authority ("PREPA") to release the $40.4 million shown by PREPA as available in its emergency account funded by the Federal Emergency Management Agency ("FEMA") toward payment for the electric grid restoration work completed by Mammoth's wholly-owned subsidiary, Cobra Acquisitions LLC ("Cobra"), more than three years ago in Puerto Rico in the aftermath of Hurricane Irma and Hurricane Maria.
In a document, dated May 11, 2022, entitled "13-week cash flow update," PREPA indicated that $40.4 million remains available in PREPA's emergency account for Cobra's restoration work. The 13-week cash flow update, including page 9 referencing the $40.4 million in available funds, was published by the Puerto Rico Fiscal Agency and Financial Advisory Authority ("PRFA") on its website, subject to a number of qualifications, limitations and cautionary statements included therein, and is publicly available at https://www.aafaf.pr.gov/wp-content/uploads/13-week-cash-flow-update-05-11-2022.pdf. Information on the PRFA website does not constitute part of this news release.
As of the date of this news release, PREPA owes Cobra in excess of $350 million, including over $123 million in accrued and unpaid interest, for such restoration work. This account receivable accrues the contractual interest at the rate of over $3.3 million per month. Mammoth continues to vigorously pursue the collection of this severely delinquent account receivable.
Mammoth's Chief Executive Officer, Arty Straehla, commented:
"It is inexplicable that PREPA is continuing to breach their contractual obligations, especially when their own financial documents indicate that $40.4 million of cash for work performed by Cobra remains in a PREPA emergency account. Our work in Puerto Rico has stood the test of time, and yet nearly half a decade later, we are still seeking an explanation from PREPA about their ongoing obfuscation. This trend sends a chilling message to anyone considering doing business in Puerto Rico, particularly during any future natural disasters. Furthermore, as the monthly interest on the debt continues to accrue, the real victims here are the people of Puerto Rico who will ultimately get stuck with the tab. Enough is enough, the apparent funds in the PREPA account have been provided by FEMA for payment to Cobra, and it is long past time for PREPA to pay its bills."
For more information related to the Puerto Rico situation, please visit: 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