Cobra Acquisitions LLC, a wholly owned subsidiary of Mammoth Energy Services, Inc., announced on October 1, 2024, the receipt of $150 million from the Commonwealth of Puerto Rico. This payment is in accordance with the previously disclosed Settlement Agreement with the Puerto Rico Electric Power Authority (PREPA). The initial installment represents a significant portion of the total $188.4 million settlement proceeds.
Mammoth's CEO, Arty Straehla, stated that the company intends to use this first installment to extinguish all outstanding obligations under its term credit facility on or before October 16, 2024. This move is expected to have a transformative impact on the business by establishing a significant cash position and reducing financial leverage. The remaining $38.4 million is still owed through future installments.
The company plans to take a meticulous and strategic approach to deploying its newfound capital. Management intends to pursue accretive, value-enhancing opportunities to strengthen Mammoth for the future. This initial payment is a critical step in improving Mammoth's balance sheet and financial flexibility.
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