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Mammoth Energy Announces Growth of Engineering Services Company

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Mammoth Energy Services, Inc. (TUSK) announced a new contract for its subsidiary, Aquawolf, with a major utility. This three-year contract is expected to generate approximately $40 million in revenue. Aquawolf specializes in engineering services, including electrical transmission, gas, and renewable operations. The company aims to expand its workforce and project portfolio, moving closer to becoming a fully integrated Engineering, Procurement, and Construction (EPC) entity. This development is a significant milestone for Mammoth as it strengthens its infrastructure service capabilities.

Positive
  • Contract awarded to Aquawolf expected to generate up to $40 million in revenue over three years.
  • Significant expansion of engineering services following the contract.
  • Mammoth moving toward full integration as an Engineering, Procurement, and Construction (EPC) company.
Negative
  • None.

OKLAHOMA CITY, Feb. 17, 2021 (GLOBE NEWSWIRE) -- Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ:TUSK) today announced that its wholly owned subsidiary, Aquawolf, LLC (“Aquawolf”), has been awarded a contract by a major utility to provide engineering and design services. The three-year contract is expected to generate up to approximately $40 million in revenue over the contract term.   

Engineering Services

Aquawolf has grown significantly since operations began in September 2019 and now has offices in Denver, Colorado, San Diego, California and Vancouver, Washington. Aquawolf provides the following engineering services:

  • Electrical transmission and distribution
  • Natural gas
  • Generation & renewables
  • Electric substations
  • Owners engineering
  • Project management
  • Power system studies
  • Third party attachments

“The signing of this agreement is significant for Aquawolf as it is expected to allow for a significant expansion of both engineers employed and breadth of projects engineered. When coupled with our other infrastructure businesses, this agreement moves Mammoth one step closer to being a fully integrated Engineering, Procurement and Construction “EPC” company.” commented Arty Straehla, chief executive officer of Mammoth.

About Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy service company serving companies engaged in the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its energy infrastructure services and 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.

Investor Contact:
Don Crist – Director, Investor Relations
dcrist@mammothenergy.com
(405) 608-6048

Media Contact:
Peter Mirijanian
peter@pmpadc.com
(202) 464-8803

Forward-Looking Statements and Cautionary Statements

This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for the Company's existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company's forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company's acquisitions and contracts, many of which are beyond the Company's control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on demand for our services; the current significant surplus in the supply of oil and the ability of the OPEC+ countries to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company's subsidiary Cobra Acquisitions LLC by the Puerto Rico Electric Power Authority and contracts for our pressure pumping services and natural sand proppant services; the Company's inability to replace the prior levels of work in its business segments, including its infrastructure and pressure pumping segments; risks relating to economic conditions; the loss of or interruption in operations of one or more key suppliers or customers; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; weather; natural disasters; litigation; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.

Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law


FAQ

What is the significance of the new contract awarded to Mammoth Energy Services (TUSK)?

The new contract awarded to Mammoth's subsidiary, Aquawolf, is significant as it is expected to generate up to $40 million in revenue over three years, enhancing the company's earnings potential.

When was the contract awarded to Aquawolf by Mammoth Energy Services (TUSK)?

The contract was announced on February 17, 2021.

What services does Aquawolf provide under the new contract for Mammoth Energy Services (TUSK)?

Aquawolf provides engineering services related to electrical transmission, natural gas, generation and renewables, electric substations, and project management among others.

How does the new contract impact Mammoth Energy Services' business model?

The contract is a step towards making Mammoth a fully integrated Engineering, Procurement, and Construction (EPC) company, potentially increasing its project scope and workforce.

Mammoth Energy Services, Inc.

NASDAQ:TUSK

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Conglomerates
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United States of America
OKLAHOMA CITY