Mammoth Energy Services Enters Material Agreement

TL;DR

MMS enters new deal, could impact debt & assets.

AI Summary

On July 22, 2024, Mammoth Energy Services, Inc. entered into a material definitive agreement. This filing also indicates potential triggering events that could accelerate or increase financial obligations, and it may involve material impairments.

Why It Matters

This filing signals a significant new contract or financial arrangement for Mammoth Energy Services, potentially impacting its financial obligations and asset values.

Risk Assessment

Risk Level: medium — The filing mentions potential acceleration of financial obligations and material impairments, which could indicate financial distress or significant changes in asset value.

Key Players & Entities

• Mammoth Energy Services, Inc. (company) — Registrant
• July 22, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $359.1 million — s due from PREPA totaling approximately $359.1 million in relation to these agreements. PREPA
• $18.4 million — REPA is currently holding approximately $18.4 million in funds (the "Withheld FEMA Funds") re
• $170.0 million — strative expense claim against PREPA of $170.0 million (plus the $18.4 million in the Withheld
• $150.0 million — be paid through three installments: (i) $150.0 million on the later of (A) ten business days f
• $20.0 million — III Court and (B) August 31, 2024; (ii) $20.0 million within seven days following the effecti
• $49.3 million — ity. As of June 30, 2024, approximately $49.3 million was outstanding under this facility. Ma
• $170.7 million — n-cash, pre-tax charge of approximately $170.7 million in the second quarter of 2024 to reduce

Filing Documents

• tusk-20240722.htm (8-K) — 33KB
• 0001679268-24-000057.txt ( ) — 159KB
• tusk-20240722.xsd (EX-101.SCH) — 2KB
• tusk-20240722_lab.xml (EX-101.LAB) — 22KB
• tusk-20240722_pre.xml (EX-101.PRE) — 13KB
• tusk-20240722_htm.xml (XML) — 3KB

01 Entry Into A Material Definitive Agreement

Item 1.01 Entry Into A Material Definitive Agreement. Introductory Note As disclosed in the filings with the Securities and Exchange Commission (the "SEC") made by Mammoth Energy Services, Inc. ("Mammoth" or the "Company"), Cobra Acquisitions LLC ("Cobra"), a wholly-owned subsidiary of Mammoth, and the Puerto Rico Electric Power Authority ("PREPA") previously entered into two agreements to aid in the restoration and reconstruction of Puerto Rico's power grid in response to damage caused by Hurricane Maria in 2017. PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the United States District Court for the District of Puerto Rico (the "Title III Court"). As a result, PREPA's ability to meet its payment obligations under the above-referenced agreements is largely dependent upon funding from the Federal Emergency Management Agency ("FEMA") or other sources. Since September 30, 2019, Mammoth has been pursuing litigation in the Title III Court and other dispute resolution efforts seeking recovery of the amounts owed to Cobra by PREPA for restoration services in Puerto Rico, which proceedings are discussed in more detail in Mammoth's filings with the SEC. As of June 30, 2024, Cobra had remaining receivables due from PREPA totaling approximately $359.1 million in relation to these agreements. PREPA is currently holding approximately $18.4 million in funds (the "Withheld FEMA Funds") received from FEMA and considers payable to Cobra but for purported garnishments in this amount asserted by three Puerto Rican municipalities (the "Specified Municipalities") for certain municipal tax claims discussed in Mammoth's filings with the SEC (the "Specified Municipal Tax Claims") and for which Cobra disputes any valid garnishment. Settlement Agreement On July 22, 2024, Cobra entered into a release and settlement agreement with PREPA and the Financial Oversight and Management Board for Puerto Rico, in its capacity as

06 Material Impairments

Item 2.06 Material Impairments. As a result of the Settlement Agreement, the Company will record a non-cash, pre-tax charge of approximately $170.7 million in the second quarter of 2024 to reduce its accounts receivable balance from PREPA to the amount expected to be received from the Settlement Agreement. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MAMMOTH ENERGY SERVICES, INC. Date: July 23, 2024 By: /s/ Mark Layton Mark Layton Chief Financial Officer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR