Cobra Acquisitions Receives $150 Million Settlement for Growth

Author: Caleb Price Updated: 10-01-2024 04:24 PM

Cobra Acquisitions LLC Receives $150 Million Settlement

Cobra Acquisitions LLC, a fully owned subsidiary of Mammoth Energy Services, Inc. (NASDAQ: TUSK), has successfully secured $150 million from a settlement following the agreement made with the Puerto Rico Electric Power Authority (PREPA). This financial boost marks a significant achievement for the company, reinforcing its strategy for growth and stability.

CEO's Optimistic Outlook

Arty Straehla, the CEO of Cobra, expressed his satisfaction regarding the receipt of the initial settlement funds. He mentioned that this $150 million will aid in extinguishing current obligations linked to their term credit facility, a step he anticipates to complete soon. Furthermore, he expects the remaining settlement sum of approximately $98.8 million to positively transform the company by enhancing its cash position and operational agility.

Strategic Use of Funds

With this capital infusion, Cobra plans to adopt a strategic approach in deploying the funds. The goal is to leverage these resources to pursue opportunities that will add value and strengthen Mammoth's market standing. The company's leadership is focused on ensuring that these investments yield beneficial returns while reinforcing their core operations.

Details of the Settlement Agreement

The settlement agreement, which received validation from Judge Laura Taylor Swain, is structured to deliver total proceeds amounting to $188.4 million to Cobra. As part of this agreement, $38.4 million remains to be disbursed, which includes $18.4 million currently withheld by PREPA, linked to federal assistance from the Federal Emergency Management Agency (FEMA).

Payment Structure

Under the terms of the settlement, the funds will be distributed in three phases: the first installment of $150 million was received recently; a subsequent $20 million will be paid following the final aspect of PREPA's adjustment plan; and lastly, $18.4 million related to withheld FEMA funds will be released under specific conditions.

About Mammoth Energy Services, Inc.

Mammoth Energy Services is an integrated energy services firm committed to supporting the exploration and development of North American unconventional oil and natural gas reserves. The company also focuses on infrastructure services, which include constructing and repairing electric grids for various utilities. Their diverse suite of services encompasses well completion, natural sand and proppant provisions, drilling, and other related services.

Contact Information

For further inquiries, contact Mark Layton, CFO of Mammoth Energy Services, Inc. Reach out to the investor relations team, including Rick Black and Ken Dennard from Dennard Lascar, for detailed discussions regarding investor opportunities.

Frequently Asked Questions

What is the significance of the $150 million settlement?

The $150 million settlement represents a crucial financial milestone for Cobra Acquisitions, aimed at enhancing its operational capacity and overall financial health.

How will Cobra utilize the settlement funds?

Cobra plans to extinguish existing debt and strategically invest in opportunities that promise future growth and value enhancement for Mammoth Energy Services.

What are the key terms of the settlement agreement?

The settlement agreement comprises three installments totaling $188.4 million, with specific conditions attached to future payments based on compliance with PREPA’s financial management.

Who is the CEO of Cobra Acquisitions?

The CEO of Cobra Acquisitions LLC is Arty Straehla, who leads the company’s strategic initiatives and financial operations.

How does this settlement position Mammoth Energy Services?

This settlement positions Mammoth Energy Services for better financial stability and potential growth opportunities, allowing it to strengthen its market presence and expand services.

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