Mammoth Energy Services, Inc. (NASDAQ:TUSK) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On May 26, 2018, Cobra Acquisitions LLC (“Cobra”), a wholly-owned subsidiary of Mammoth Energy Services, Inc. (“Mammoth”), entered into a new master services agreement with the Puerto Rico Electric Power Authority (“PREPA”) to complete the restoration of the electrical transmission and distribution system components damaged by Hurricane Maria and to support the initial phase of reconstruction of the electrical power system in Puerto Rico (the “New PREPA Contract”). Cobra has agreed to provide the labor, supervision, tools and materials necessary to provide the restoration and reconstruction services under the New PREPA Contract, which has a one-year term ending May 25, 2019 and provides for total payments not to exceed $900.0 million. The New PREPA Contract was awarded at the conclusion of a request for proposal (RFP) bid process that began in February 2018. The New PREPA Contract is in addition to the contract that Cobra entered into in October 2017, as subsequently amended, to provide restoration services to PREPA. Cobra continues to perform services under this original contract.
At March 31, 2018, Cobra had approximately 1,000 people working in Puerto Rico. With the execution of the New PREPA Contract, Cobra will be increasing its total resource count and expects to have approximately 1,250 people on the island within the next 60 days. In connection with the New PREPA Contract, Mammoth has increased its 2018 capital budget by $35 million to approximately $160 million, primarily for additional equipment, trucks and tools to perform the contracted services.
The description of the New PREPA Contract is qualified in its entirety by reference to the New PREPA Contract filed as Exhibit 10.1 to this Current Report on Form 8-K.
Item 7.01. Regulation FD Disclosure.
On May 29, 2018, Mammoth issued a press release announcing the New PREPA Contract to provide restoration and reconstruction services in Puerto Rico. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
Exhibits.
MAMMOTH ENERGY SERVICES, INC. ExhibitEX-10.1 2 ex-101cobracontractrfprest.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1GOVERNMENT OF PUERTO RICOPUERTO RICO ELECTRIC POWER AUTHORITYMASTER SERVICE CONTRACTFOR PREPA’S ELECTRICAL GRID REPAIRS HURRICANE MARIAAPPEARAS FIRST PARTY: The Puerto Rico Electric Power Authority (PREPA),…To view the full exhibit click here
About Mammoth Energy Services, Inc. (NASDAQ:TUSK)
Mammoth Energy Services, Inc. is an integrated oilfield service company. The Company is engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company’s segments include Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. Its Completion and Production Services division provides pressure pumping services, pressure control Services, flowback services and equipment rentals. Its Natural Sand Proppant Services division is engaged in selling, distributing and producing proppant for hydraulic fracturing. Its Contract Land and Directional Drilling Services division provides drilling rigs and crews for operators, as well as rental equipment. Its Remote Accommodation Services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas.