TUSK - Mammoth Energy: Improved Liquidity By Partially Monetizing Accounts Receivables

2024-02-13 14:22:56 ET

Summary

• Mammoth Energy Services, Inc. exchanged some of its Puerto Rico Electric Power Authority accounts receivables for cash upfront from a third party.
• Mammoth will give the next $54.4 million paid by PREPA to the SPCP Group and is receiving $46.3 million in net proceeds.
• The proceeds help pay off Mammoth's credit facility debt and gives it the ability to weather a period of challenging business results.
• Demand for Mammoth's pressure pumping fleets is likely to be limited throughout 2024 due to weak natural gas prices.
• This results in projected cash burn for 2024 equal to Mammoth's 2024 capex budget.

Mammoth Energy Services, Inc. ( TUSK ) traded some of its accounts receivables from the Puerto Rico Electric Power Authority [PREPA] to SPCP Group in exchange for upfront cash. This deal gave Mammoth $46.3 million in additional cash, while the SPCP Group receives the next $54.4 million that is paid out by PREPA. If that full $54.4 million isn't paid by PREPA by the end of March 2024, the remaining amount due to the SPCP Group starts increasing at a compounded rate of 1% per month....

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