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  • Mammoth Energy (TUSK) Stock Rises Sharply On Subsidiary’s Settlement Agreement

    Mammoth Energy (TUSK) Stock Rises Sharply On Subsidiary’s Settlement Agreement

    The shares of Mammoth Energy Services, Inc. (NASDAQ: TUSK) have increased significantly during the current trading session following the announcement of a settlement agreement. The price of TUSK stock on US stock charts climbed 24.64% to $4.36 in the most recent update.

    Specifics of the Settlement Agreement

    Mammoth Energy subsidiary Cobra Acquisitions LLC (“Cobra”) stated that it has entered into a release and settlement agreement with the Financial Oversight and Management Board for Puerto Rico (FOMB) and the Puerto Rico Electric Power Authority (“PREPA”). FOMB is serving as PREPA’s Title III representative. This agreement aims to address any outstanding disputes that may exist between PREPA and Cobra.

    Mammoth Energy will be compensated for services completed almost five years ago. With a balance of about $49.3 million as of June 30, 2024, the company’s term credit facility will be repaid in part with the $188.4 million settlement. The remaining $139.1 million will increase Mammoth Energy’s cash on hand, allowing for general corporate purposes and further company reinvestment.

    The Agreement’s History and Financial Consequences

    Puerto Rico’s electricity system was severely damaged by Hurricane Maria in 2017, and Cobra and PREPA had previously inked two contracts to assist in its reconstruction. In the District of Puerto Rico United States District Court, PREPA has been the focus of bankruptcy proceedings since July 2017. These actions are currently pending.

    As of June 30, 2024, Cobra owed PREPA a total of around $359.1 million for these agreements’ receivables. About $18.4 million in FEMA money that PREPA is holding are at risk of being garnished for municipal tax claims made by three Puerto Rican municipalities. Cobra contests that these garnishments are legal.

    Due to the Settlement Agreement, Mammoth Energy will record a non-cash, pre-tax charge of approximately $170.7 million in the second quarter of 2024. This charge will adjust its accounts receivable balance from PREPA to reflect the expected settlement amount.

  • Mammoth Energy Services, Inc. (TUSK) Stock Gaining in Early Trading, Here’s What you Should Know.

    Mammoth Energy Services, Inc. (TUSK) Stock Gaining in Early Trading, Here’s What you Should Know.

    Mammoth Energy Services, Inc. (TUSK) is an energy services provider engaged in the building and restoration of the electric grid for different types of utilities. It also supports the oil and natural gas reserves exploration. 

    The price of TUSK stock in the early trading session on March 4, 2022, was last checked to be $1.42 with a gain of 1.30%.

    TUSK: Key Financials

    On March 4, 2022, TUSK released its consolidated unaudited financial statement for the fourth quarter ended December 31, 2021. Some of the key features are discussed here.

    Revenue

    Total revenue in Q4 2021 was $57.2 million as compared to $85.1 million in the same quarter of 2020. The company observed a significant decline of $27.9 million in its total revenue over the year.

    EPS

    Basic and diluted net loss per share in Q4 2021 was $13.3 million or $0.28 corresponding to $11.9 million or $0.26 in the comparable quarter of 2020. The company recorded a decline in its EPS over the year.

    TUSK: Events and Happenings

    On December 1, 2021, TUSK reported that its fiber division had been awarded two fiber-based agreements with electric cooperatives. Under the terms and conditions of the first contract, it will provide make-ready construction facilities in connection with fiber installation. Under the terms of the second agreement, it will provide fiber installation facilities. The projects are anticipated to generate a revenue of $7.7 million.

    On November 18, 2021, USK updated on the contract award by its subsidiary by a major enterprise to design the building of EV charging station infrastructure to be utilized in its clean transportation steps. The company will provide assistance in civil and structural engineering, electrical distribution design, drafting and mapping, and construction support. The contract was issued at $5 million and will be completed by 2024.

    Conclusion

    TUSK stock, like other companies, also faced turmoil in the pandemic as its stock price dropped by 73% in the past year. The recent stock gain is the impact of its financial statement release as its revenue.