News that Oklahoma City’s Mammoth Energy Services had come under federal investigation over the nearly $1 billion in electrical power restoration contracts in Puerto Rico left company stock reeling.
While opening prices last week hit a high of $11.20 on Wednesday, they dropped when news surfaced of the probe by the Federal Bureau of Investigation and Homeland Security.
On Thursday, opening prices were down to $9.49 and finished the day at $6.11. On Friday, the opening price was $6.31 and shares finished the day t $6.24.
From a start last week where shares increased 3.42% they fell by nearly 36% on Thursday. Trading hit a high of $42.30 in July of 2018 but the news of the investigation sent shareholders scurrying to dump their stock.
Last week’s trading volume went from 234,122 on Monday to more than 3.7 million on Thursday.
But company leaders defend their contracts, maintaining their work to restore power to Puerto Rico following the 2017 hurricane was on the up and up with approval from the Puerto Rico Electric Power Authority.
“Mammoth stands by the quality and reasonableness of its work and welcomes an open inquiry into its performance.”