Mammoth Energy Services Terminates Material Agreement

TL;DR

Mammoth Energy terminated a big deal, potentially screwing up their finances.

AI Summary

On October 1, 2024, Mammoth Energy Services, Inc. announced the termination of a material definitive agreement. This event also triggered events that accelerate or increase a direct financial obligation or an obligation under an off-balance sheet arrangement. The company also provided a Regulation FD disclosure and filed financial statements and exhibits.

Why It Matters

The termination of a material agreement and potential acceleration of financial obligations could significantly impact Mammoth Energy's financial health and operational stability.

Risk Assessment

Risk Level: high — Termination of a material agreement and acceleration of financial obligations pose significant financial and operational risks.

Key Players & Entities

• Mammoth Energy Services, Inc. (company) — Registrant
• October 1, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $170.0 million — strative expense claim against PREPA of $170.0 million (plus the $18.4 million in funds receiv
• $18.4 million — ainst PREPA of $170.0 million (plus the $18.4 million in funds received by PREPA from the Fed
• $150.0 million — payable 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
• $50.9 m — id interest, in the aggregate amount of $50.9 million, and terminated the facility on O
• $150 Million — a Acquisitions LLC Announces Receipt of $150 Million. " 99.2 * Press Release, dated Octob

Filing Documents

• tusk-20241001.htm (8-K) — 36KB
• ex991-tuskreceiptofsettlem.htm (EX-99.1) — 14KB
• ex992-tusktermloanpayoffte.htm (EX-99.2) — 12KB
• image_11a.jpg (GRAPHIC) — 12KB
• image_1a.jpg (GRAPHIC) — 12KB
• 0001679268-24-000069.txt ( ) — 232KB
• tusk-20241001.xsd (EX-101.SCH) — 2KB
• tusk-20241001_lab.xml (EX-101.LAB) — 22KB
• tusk-20241001_pre.xml (EX-101.PRE) — 13KB
• tusk-20241001_htm.xml (XML) — 3KB

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. Introductory Note As previously disclosed in the filings with the Securities and Exchange Commission (the "SEC") made by Mammoth Energy Services, Inc. ("Mammoth" or the "Company"), on July 22, 2024, Cobra Acquisitions LLC ("Cobra"), a wholly-owned subsidiary of Mammoth, entered into a release and settlement agreement with the Puerto Rico Electric Power Authority ("PREPA") and the Financial Oversight and Management Board for Puerto Rico, in its capacity as PREPA's representative to the United States District Court for the District of Puerto Rico (the "Title III Court"), to settle all outstanding matters between Cobra and PREPA (the "Settlement Agreement"). Under the terms of the Settlement Agreement, Cobra was allowed an administrative expense claim against PREPA of $170.0 million (plus the $18.4 million in funds received by PREPA from the Federal Emergency Management Agency ("FEMA") and considered 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 "Withheld FEMA Funds")). Cobra's allowed claim is payable through three installments: (i) $150.0 million on the later of (A) ten business days following approval of the Settlement Agreement by the Title III Court and (B) August 31, 2024; (ii) $20.0 million within seven days following the effective date of PREPA's plan of adjustment; and (iii) $18.4 million in the Withheld FEMA Funds within either (A) ten business days after the deadline for appealing the entry of the settlement order by the Title III Court under the applicable bankruptcy rules of procedure if no such appeal is filed, or (B) if the provisions of the settlement order allowing PREPA to release the Withheld FEMA Funds to Cobra without retaining any liability to the Specified Municipalities are appealed by such municipalities, wit

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On October 1, 2024, the Company issued a press release announcing the receipt of the first installment amount under the Settlement Agreement, which press release is attached hereto as Exhibit 99.1. On October 3, 3024, the Company issued a press release announcing the payoff and termination of the term credit facility and increase in its 2024 capital expenditure guidance, which press release is attached hereto as Exhibit 99.2. The information in this Item 7.01 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference in the registration statement.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. 99.1 * Press R elease , dated October 1 , 2024, entitled " Cobra Acquisitions LLC Announces Receipt of $150 Million. " 99.2 * Press Release, dated October 3, 2024, entitled "Mammoth Announces Payoff and Termination of Term Credit Facility and Increase in 2024 Capital Expenditure Guidance." 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. * Furnished herewith. 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: October 3, 2024 By: /s/ Mark Layton Mark Layton Chief Financial Officer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR