Oklahoma City’s Mammoth Energy Services said it used some of its $180 million payment from Puerto Rico’s Power Authority to pay off its term credity facility and as a result the company declared itself debt free.
In an announcement Thursday, Mammoth said it paid $50.9 million with Wexford Capital LP. The payoff was part of Mammoth’s first installment payment received from Puerto Ricoo following nearly 7 years of legal disputes for work it performed in restoring electrical power after Hurricane Maria devastated the commonwealth.
“We are excited to announce the payoff and termination of our term credit facility and are now debt free,” said Mark Layton, Chief Financial Officer.
“In connection with the debt payoff, our board of directors has authorized an increase in our 2024 capital expenditure budget to $23 million, representing an increase of $11 million from our previously announced capex guidance. Of the $11 million increase, we plan to use $6 million to grow and add crews in our infrastructure division and $5 million for maintenance to our current infrastructure fleet.”