Human management

Mammoth Announces Response to First Call from Federal Emergency Management Agency

OKLAHOMA CITY, June 14, 2022 /PRNewswire/ — Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth” or the “Company”) today announced the first response to a call from the Federal Emergency Management Agency (“FEMA ”) regarding Project Worksheet 251, generally referred to as the first contract between Mammoth subsidiary Cobra Acquisitions LLC (“Cobra”) and the Puerto Rico Electric Power Authority (“PREPA”). This call follows the May 26, 2021memorandum of determination issued by FEMA, which denied $47 million costs claimed under the first contract. FEMA approved the appeal in part and denied it in part. FEMA found that staff costs for $24.4 million are eligible for funding and that FEMA would amend project worksheet 251 to mandate this additional funding.

Mammoth CEO Arty Straehla commented:

“While our work has received numerous third-party validations, PREPA continues to choose to pay advisors over its pre-existing obligations for services rendered years ago. PREPA has $40.4 million in federal funding sitting in a cash account set aside for our work that could be used to pay us now, but PREPA continues to withhold payment. Surprisingly, the Financial Oversight & Management Board for Porto Rico continues to allow PREPA to accrue interest on amounts approved by FEMA while PREPA has funds set aside and has more than $1 billion cash at hand. PREPA says they cannot pay when they have no funds and will not pay when they have funds. This lack of accountability should serve as a red flag for any entity contemplating doing work for PREPA and is bad news for those in Porto Rico the next time a natural disaster occurs.”

PREPA has 60 days from the date of receipt of the decision to submit a second appeal to the Assistant Administrator, Collections Branch, at FEMA Headquarters or to request arbitration by the Civil Contracts Appeals Board. .

The total amount PREPA owes Cobra exceeds $350 million and continues to generate contractual interest at the rate of more than $3.3 million per month.

For more information related to the Porto Rico situation as well as access to FEMA’s first call response, please visit: https://puertorico.mammothenergy.com/

Mammoth Energy Services, Inc.

Mammoth is a growth-oriented, integrated energy services company focused on building and repairing the electrical grid for private utilities, investor-owned utilities and cooperative utilities through its services business. infrastructure. The Company also provides products and services to enable the exploration and development of North American onshore reserves of unconventional oil and natural gas. Mammoth’s range of services and products include: infrastructure services, well completion services, natural sand and ground support services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.

Contact:
Marc LaytonFinancial director
[email protected]
(405) 608-6007

Investors:
Rick Black
[email protected]
(832) 435-0026

Forward-Looking Statements and Cautions

This press release (and any oral statements made regarding the subjects of this release, including during the conference call announced here) contain 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 fact that address the business, 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”, “expect”, “predict”, “prospect”, “aim”, “will”, “could”, “should”, “potential”, “would”, “could”, “probable”, “probable” and similar expressions, as well as their negative form, are intended to identify statements in search. Without limiting the generality of the foregoing, the forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company’s business prospects and plans, future financial condition, liquidity and resources. capital, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other advice regarding future developments. Forward-looking statements are not guarantees of future performance. These forward-looking statements are based on management’s current expectations and beliefs, expectations regarding the Company’s existing operations, experience and perception of historical trends, current conditions, expected future developments and their effect on Mammoth, and other factors deemed appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable at the time they are made, there can be no assurance that these assumptions are correct or that any of these expectations will be realized (in whole or at all). ). In addition, 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 documents filed with the SEC, including those relating to Company acquisitions and contracts, many of which are beyond the Company’s control, which may cause actual results to differ materially from historical experience and expectations or current projections implied or expressed by forward-looking statements. Important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: any continued impact of the COVID-19 pandemic, related global and national health concerns and economic repercussions; request for our services; volatility in oil and natural gas prices and actions by OPEC members and other exporting countries affecting commodity prices and production levels; the impact of the current Russian-Ukrainian military conflict on global energy and capital markets and global stability; operational challenges related 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 working arrangements, contract enforcement and supply chain disruptions; inflationary pressures; the outcome of ongoing government investigations and other legal proceedings, including those relating to contracts awarded to the Company’s subsidiary, Cobra Acquisitions LLC (“Cobra”) by the Puerto Rico Electric Power Authority (“PREPA”); non-receipt or delays in receipt of government authorizations, approvals and/or payments, including payments relating to PREPA’s account receivable for pre-PREPA services performed by Cobra; the Company’s inability to replace prior levels of work in its businesses, including its infrastructure services and well completions segments; risks related to economic conditions; the impacts of the recent federal infrastructure bill on the infrastructure industry and our infrastructure services business; the loss or interruption of operations of one or more of Mammoth’s major suppliers or customers; loss of management and/or crews; the outcome or settlement of our litigation, including the adverse impact of the recent settlement with MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations; the effects of government regulations, permits and other legal requirements; operational risks; adequacy of capital resources and liquidity; Mammoth’s ability to continue to comply or, if applicable, to obtain a waiver of anticipated or actual non-compliance with certain financial covenants and to comply with other terms and conditions under our recently revolving credit facility modified; Weather report; natural disasters; dispute; volatility in commodity markets; competition in the oil and natural gas and infrastructure sectors; 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 such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date on which such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law. ‘required.

SOURCE Mammoth Energy Services, Inc.