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Cobra Acquisitions LLC Announces Receipt of $18.4 Million From PREPA
TUSKMammoth Energy Services(TUSK) Prnewswire·2024-10-21 11:00

Core Points - Cobra Acquisitions LLC, a subsidiary of Mammoth Energy Services, received 18.4millionfromthePuertoRicoElectricPowerAuthorityaspartofaSettlementAgreement[1][2]−Thetotalsettlementamountundertheagreementis18.4 million from the Puerto Rico Electric Power Authority as part of a Settlement Agreement [1][2] - The total settlement amount under the agreement is 188.4 million, of which Cobra has received 168.4million,withtheremaining168.4 million, with the remaining 20 million due upon confirmation of PREPA's bankruptcy plan [2] - Mammoth maintains a strong cash position with no debt and plans to strategically deploy the received capital for value-enhancing opportunities [1] Financial Agreements - The receipt of 18.4millionledtoanamendmentofMammoth′srevolvingcreditagreementandaletterofcreditreimbursementagreementwithFifthThirdBank[1]−TheCreditAgreementAmendmentallowsfortheissuanceoflettersofcredittomeetCobra′sobligationsundertheSettlementAgreement[1]−Cobratransferred18.4 million led to an amendment of Mammoth's revolving credit agreement and a letter of credit reimbursement agreement with Fifth Third Bank [1] - The Credit Agreement Amendment allows for the issuance of letters of credit to meet Cobra's obligations under the Settlement Agreement [1] - Cobra transferred 19.3 million to a restricted cash account as collateral for the letter of credit issued to PREPA [1] Company Overview - Mammoth Energy Services is focused on providing products and services for the exploration and development of North American unconventional oil and natural gas reserves [3] - The company also engages in the construction and repair of electric grids for various utilities through its infrastructure services [3] - Mammoth's service offerings include well completion services, infrastructure services, natural sand and proppant services, and drilling services [3]