COBRA ACQUISITIONS LLC ANNOUNCES SETTLEMENT AGREEMENT WITH PREPA
Cobra Acquisitions , a subsidiary of Mammoth Energy Services, Inc. (NASDAQ: TUSK), has reached a settlement agreement with the Puerto Rico Electric Power Authority (PREPA) and the Financial Oversight and Management Board for Puerto Rico. The settlement, which resolves outstanding matters related to Puerto Rico's power grid restoration after Hurricane Maria, is expected to yield approximately $188 million in total proceeds.
Key points:
- $170 million allowed administrative expense claim against PREPA
- $18.4 million in withheld FEMA funds to be released
- Payments to be made in three installments
- Settlement subject to Title III Court approval
- Mammoth to record a $170.7 million non-cash, pre-tax charge in Q2 2024
Mammoth plans to use $49.3 million to pay off its term credit facility, with the remaining $139.1 million for business investment and general corporate purposes.
Cobra Acquisitions, una filiale di Mammoth Energy Services, Inc. (NASDAQ: TUSK), ha raggiunto un accordo di transazione con l'Autorità Elettrica di Porto Rico (PREPA) e la Commissione di Vigilanza e Gestione di Porto Rico. L'accordo, che risolve questioni pendenti relative al ripristino della rete elettrica di Porto Rico dopo l'uragano Maria, dovrebbe generare circa 188 milioni di dollari in ricavi totali.
Punti chiave:
- Richiesta di spese amministrative consentite di 170 milioni di dollari contro PREPA
- 18,4 milioni di dollari di fondi FEMA trattenuti saranno rilasciati
- Pagamenti effettuati in tre rate
- Accordo soggetto all'approvazione del Tribunale di Titolo III
- Mammoth registrerà una perdita non monetaria di 170,7 milioni di dollari prima delle tasse nel secondo trimestre del 2024
Mammoth prevede di utilizzare 49,3 milioni di dollari per estinguere la propria linea di credito a termine, mentre i restanti 139,1 milioni di dollari saranno destinati a investimenti aziendali e scopi generali.
Cobra Acquisitions, una subsidiaria de Mammoth Energy Services, Inc. (NASDAQ: TUSK), ha llegado a un acuerdo de liquidación con la Autoridad de Energía Eléctrica de Puerto Rico (PREPA) y la Junta de Supervisión y Administración de Puerto Rico. El acuerdo, que resuelve asuntos pendientes relacionados con la restauración de la red eléctrica de Puerto Rico tras el huracán María, se espera que genere aproximadamente 188 millones de dólares en total.
Puntos clave:
- Reclamo de gasto administrativo permitido de 170 millones de dólares contra PREPA
- Se liberarán 18,4 millones de dólares en fondos de FEMA retenidos
- Los pagos se realizarán en tres cuotas
- Liquidación sujeta a la aprobación del Tribunal de Título III
- Mammoth registrará un cargo no monetario, antes de impuestos, de 170,7 millones de dólares en el segundo trimestre de 2024
Mammoth planea usar 49,3 millones de dólares para pagar su línea de crédito a término, destinando los restantes 139,1 millones de dólares para inversión empresarial y fines generales corporativos.
Cobra Acquisitions는 Mammoth Energy Services, Inc. (NASDAQ: TUSK)의 자회사로서 푸에르토리코 전력청(PREPA) 및 푸에르토리코 재정 감독 관리 위원회와 합의 계약을 체결했습니다. 이 합의는 허리케인 마리아 이후 푸에르토리코의 전력망 복구와 관련된 미결 문제를 해결하며, 약 1억8800만 달러의 총 수익을 기대하고 있습니다.
주요 사항:
- PREPA에 대한 1억7000만 달러의 허용 행정 경비 청구
- 18.4 백만 달러의 FEMA 자금이 반환됨
- 지불은 3회 분할로 이루어짐
- 합의는 제3조 법원의 승인을 받아야 함
- Mammoth는 2024년 2분기에 1억7070만 달러의 비현금 세전 손실을 기록할 예정
Mammoth는 4930만 달러를 사용하여 신용 시설을 상환하고, 나머지 1억3910만 달러는 사업 투자 및 일반 기업 목적에 사용할 계획입니다.
Cobra Acquisitions, une filiale de Mammoth Energy Services, Inc. (NASDAQ: TUSK), a conclu un accord de règlement avec l'Autorité de l'énergie électrique de Porto Rico (PREPA) et le Conseil de surveillance et de gestion de Porto Rico. L'accord, qui résout les problèmes en suspens liés à la restauration du réseau électrique de Porto Rico après l'ouragan Maria, devrait générer environ 188 millions de dollars de produits totaux.
Points clés :
- Demande de frais administratifs de 170 millions de dollars autorisée contre PREPA
- 18,4 millions de dollars de fonds FEMA retenus seront libérés
- Les paiements seront effectués en trois versements
- Règlement soumis à l'approbation du tribunal de titre III
- Mammoth enregistrera une charge non monétaire avant impôts de 170,7 millions de dollars au deuxième trimestre 2024
Mammoth prévoit d'utiliser 49,3 millions de dollars pour rembourser sa facilité de crédit à terme, les restants 139,1 millions de dollars étant destinés à des investissements commerciaux et à des fins générales d'entreprise.
Cobra Acquisitions, eine Tochtergesellschaft von Mammoth Energy Services, Inc. (NASDAQ: TUSK), hat eine Einigungsvereinbarung mit der Puerto Rico Electric Power Authority (PREPA) und dem Financial Oversight and Management Board für Puerto Rico erreicht. Die Einigung, die ausstehende Angelegenheiten in Bezug auf die Wiederherstellung des Stromnetzes von Puerto Rico nach dem Hurrikan Maria regelt, wird voraussichtlich ungefähr 188 Millionen US-Dollar an Gesamterlösen bringen.
Wichtige Punkte:
- 169 Millionen US-Dollar an zugelassenen Verwaltungskostenforderungen gegen PREPA
- 18,4 Millionen US-Dollar von einbehaltenen FEMA-Mitteln werden freigegeben
- Zahlungen erfolgen in drei Raten
- Einigung unterliegt der Genehmigung des Titel-III-Gerichts
- Mammoth wird im zweiten Quartal 2024 einen nicht zahlungswirksamen Steueraufwand von 170,7 Millionen US-Dollar verbuchen
Mammoth plant, 49,3 Millionen US-Dollar zur Tilgung seiner Terminkreditfazilität zu verwenden, während die verbleibenden 139,1 Millionen US-Dollar für Unternehmensinvestitionen und allgemeine Unternehmenszwecke vorgesehen sind.
- Settlement agreement reached for $188 million in total proceeds
- Allowed administrative expense claim of $170 million against PREPA
- $18.4 million in withheld FEMA funds to be released
- Plan to pay off $49.3 million term credit facility
- $139.1 million available for business investment and corporate purposes
- Non-cash, pre-tax charge of $170.7 million to be recorded in Q2 2024
- Settlement amount less than the $359.1 million in remaining receivables due from PREPA
- Final payment contingent on PREPA's plan of adjustment and potential appeals
The settlement agreement between Cobra Acquisitions LLC and the Puerto Rico Electric Power Authority (PREPA) is of great significance to investors. The expected receipt of
This settlement agreement is important from a legal perspective, as it resolves longstanding disputes between Cobra and PREPA that have been ongoing since Hurricane Maria. Settling these disputes allows Cobra to shift focus back to its core operations rather than being entangled in lengthy litigation. The settlement's approval by multiple boards, including that of the Title III Court, underscores the robust legal consensus, reducing the risk of future legal contingencies. Moreover, the structured payment timeline provides a clear framework for Cobra to expect cash inflows, mitigating the uncertainty surrounding the receivables from PREPA. Investors can take confidence in the reduced legal risks and potential costs associated with prolonged legal battles.
From a market perspective, the settlement agreement could positively influence Mammoth Energy Services Inc.'s (NASDAQ: TUSK) stock performance. The resolution brings a closure to the financial ambiguities linked with receivables from PREPA, which had been a point of concern for investors. The infusion of
Total Settlement Proceeds Expected to be Approximately
Arty Straehla, Chief Executive Officer, commented, "We are pleased to have reached this resolution with PREPA and look forward to receiving the money for work we concluded over five years ago. We plan to use a portion of the
Cobra and PREPA previously entered into two agreements to aid in the restoration and reconstruction of
Under the terms of the Settlement Agreement, Cobra will have an allowed administrative expense claim against PREPA of
The Settlement Agreement was approved by the Company's Board of Directors on July 22, 2024, and was also approved by the PREPA Board and by the FOMB. The Settlement Agreement remains subject to approval by the Title III Court, which is expected to hear the motion relating to the Settlement Agreement at either a non-omnibus hearing to be held in August of 2024 or at the next omnibus hearing to be held on September 18, 2024.
As a result of the Settlement Agreement, the Company will record a non-cash, pre-tax charge of approximately
About Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services company focused on the providing products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves as well as the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. Mammoth's suite of services and products include: well completion services, infrastructure services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.
Contacts: | |
Mark Layton, CFO | Rick Black / Ken Dennard |
Mammoth Energy Services, Inc | Dennard Lascar Investor Relations |
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SOURCE Mammoth Energy Services, Inc.
FAQ
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