Mammoth Energy Announces Fiber Construction and Installation Contracts

Rhea-AI Summary

Mammoth Energy Services (NASDAQ: TUSK) announced two contracts for its newly established fiber division, projected to generate approximately $7.7 million in revenue over the next 18 months. These contracts, awarded by electric cooperatives in the Midwest, involve make-ready construction and fiber installation services. CEO Arty Straehla highlighted that these projects reflect the ongoing expansion of their infrastructure services and the opportunities arising from the recently passed infrastructure bill, which allocates $65 billion for improving U.S. broadband access.

Positive

• Awarded two contracts for fiber construction, expected to generate $7.7 million in revenue.
• Contracts showcase the successful launch of the new fiber division.
• Anticipated robust bidding opportunities due to the recent infrastructure bill, which includes $40 billion for new fiber construction.

Negative

• None.

OKLAHOMA CITY, Dec. 1, 2021 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today announced that its fiber division, which was organically started only a few months ago, has been awarded two fiber-related contracts with two different electric cooperatives in the Midwest. Under one of the contracts, the Company will provide make-ready construction services in preparation for fiber installation. Under the second contract, the Company will provide fiber installation services. The projects, which the Company anticipates will begin in the coming weeks, are expected to generate an aggregate of approximately $7.7 million in revenue over the next 18 months.

"These contracts mark the first projects for our newly established fiber business and reflect the ongoing expansion of our infrastructure suite of services," said Arty Straehla, CEO of Mammoth. "The recently passed infrastructure bill contains $65 billion to improve broadband access across the U.S. Of this amount, over $40 billion is for new fiber construction. We expect this to create opportunities for many providers to continue to build or start to build fiber networks for their customers and anticipate bidding opportunities for projects like the ones we have been awarded to be robust as a result of the new infrastructure bill."

Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth's suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.

Contact:
Mark Layton, Chief Financial Officer
mlayton@mammothenergy.com
(405) 608-6007

Investors:
Rick Black
rblack@dennardlascar.com
(832) 435-0026

 

View original content:https://www.prnewswire.com/news-releases/mammoth-energy-announces-fiber-construction-and-installation-contracts-301434863.html

SOURCE Mammoth Energy Services, Inc.

FAQ

What contracts did Mammoth Energy Services announce on Dec 1, 2021?

Mammoth Energy Services announced two fiber-related contracts with electric cooperatives in the Midwest for construction and installation services.

What is the total projected revenue from Mammoth's new fiber contracts?

The total projected revenue from the new fiber contracts is approximately $7.7 million over the next 18 months.

How does the new infrastructure bill affect Mammoth Energy Services?

The new infrastructure bill allocates $65 billion to improve broadband access in the U.S., creating bidding opportunities for projects like those awarded to Mammoth Energy.

What services will Mammoth Energy provide under the new contracts?

Mammoth Energy will provide make-ready construction services and fiber installation services under the new contracts.