Mammoth Energy Provides Status Update on PREPA Receivable
Mammoth Energy Services, Inc. (NASDAQ:TUSK) announced that FEMA's Determination Memorandum, dated May 26, 2021, identified $47 million in unauthorized costs for hurricane repairs by Cobra Acquisitions LLC for PREPA.
Sentiment and the balance of points
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Rhea-AI Summary
Mammoth Energy Services, Inc. (NASDAQ:TUSK) announced that FEMA's Determination Memorandum, dated May 26, 2021, identified $47 million in unauthorized costs for hurricane repairs by Cobra Acquisitions LLC for PREPA. PREPA has appealed this decision within the allotted 60 days, with FEMA expected to respond within 90 days. Additionally, Mammoth has sought support from Congressional members to recover the receivable owed by PREPA. The company remains proactive in its efforts to collect these funds, emphasizing its commitment to financial recovery.
Positive
- None.
Negative
- FEMA identified $47 million in unauthorized costs related to hurricane repairs, impacting Mammoth's financial performance.
- The company's efforts to collect receivables from PREPA have been ongoing for two years without resolution.
Details
News Market Reaction – TUSK
The recorded move for TUSK in the trading session of this news was -14.08%.
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OKLAHOMA CITY, July 29, 2021 (GLOBE NEWSWIRE) -- On June 8, 2021, Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ:TUSK) announced that the Federal Emergency Management Agency (“FEMA”) released a Determination Memorandum dated May 26, 2021 related to hurricane repair work performed by Cobra Acquisitions LLC (“Cobra”) for the Puerto Rico Electric Power Authority (“PREPA”). The Determination Memorandum raised two contract compliance issues and, as a result, FEMA concluded that approximately
On July 23, 2021, with aid from Mammoth, PREPA filed an appeal of the entire
Separately, over the past two years, Mammoth has sought and obtained help from Senate and Congressional members in pursuit of collecting the receivable due from PREPA. The assistance of these Senators and Congressional members has been beneficial to the efforts to collect the receivable from PREPA and the Company continues to pursue multiple avenues to collect the money owed from PREPA.
About 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
Media Contact:
Peter Mirijanian
peter@pmpadc.com
(202) 464-8803
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