other material
confidence high
sentiment negative
materiality 0.80
Mammoth expects $32-33M loss from Gulfport settlement; likely covenant breach under credit facility
MAMMOTH ENERGY SERVICES, INC.
- Settled litigation with Gulfport; received allowed claim of $3.1M but had $33.0M receivables, expects ~$32-33M loss in Q3 2021.
- Likely breach of leverage and fixed charge coverage ratios under revolving credit facility due to Gulfport loss and $325.1M Puerto Rico receivable.
- Negotiating waiver of financial covenants with lenders; no assurance of outcome; default could materially affect business.
- Derivative action settlement agreed; final amount covered by D&O insurance; court approval pending.
- Securities class action final judgment approving $11M settlement; also covered by D&O insurance.