Mammoth Energy Announces Filing of Rand Corporation Report Findings - Seite 2

“Cobra’s blended rates fall within estimated ranges in all scenarios we considered.” (page 47)

Other key findings:

“Cobra was uniquely positioned for rapid response to the crisis, deploying heavy equipment to seaports to barge transports on the day after contract signature (10/20/17). Transmission work on the island began on 10/31/17, two weeks after Cobra was awarded the contract. Furthermore, a fully equipped crew of 463 lineman and 200 support staff arrived on the island within 3 weeks of contract signing (11/13/17). This fully equipped crew was composed of quantities of linemen and security which greatly exceeded the levels proposed in the MSA. This timely delivery of quantities of work and support labor, in excess of the levels initially proposed quickly (three weeks after the MSA was signed), clearly reflects responsiveness to requirements for both immediate availability and contract flexibility.” (page 22)

“Overall, we concluded that work crew headcounts and equipment quantities offered by Cobra were sufficiently large to complete required electricity work and thus, HSOAC deemed quantities presented in Cobra’s bid document to be reasonable.” (page 27)

“Results show that Cobra’s average hourly labor rate lay between low and high benchmarks and did not exceed any individual labor category except for groundman. By comparison, MasTec and PowerSecure’s crew weighted hourly rates were higher than Cobra’s and exceed benchmark ranges for most individual labor categories and overall. These results indicate that Cobra’s labor rates were competitive relative to others who submitted proposals for the MSA.” (page 36)

“PREPA’s requested solution delineated four critical requirements for emergency work – transmission repair capabilities, aircraft assets for installation in mountainous terrain, self-logistics resources, and ability to perform with minimal upfront payment. PREPA stated that Cobra was selected as the only company with experience in installation of transmission equipment and towers in mountainous terrain environments. Cobra had five helicopters, which could be deployed as emergency repair assets. Additionally, Cobra was able to provide its own logistical support – including supplies, equipment, fuel, food, water, housing, etc., and had crews and equipment ready to deploy.” (page 13)

The foregoing description of the Rand Report does not purport to be complete and is qualified in its entirety by reference to the full text of the Rand Report which is included as Exhibit 99.1 to a Current Report on Form 8-K filed by Mammoth with the Security and Exchange Commission (the “SEC”) on June 9, 2020, and can be found on the SEC’s EDGAR website.

About Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy service company serving companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves and private utilities, public investor-owned utilities and co-operative utilities through its energy infrastructure services. Mammoth’s suite of services and products include: pressure pumping services, infrastructure services, natural sand and proppant services, contract land and directional drilling services and other services.

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