Puerto Rico signs agreement with Cobra Acquisitions for USD 188 million

Cobra Acquisitions LLC, a subsidiary of Mammoth Energy Services, Inc. announces a $188 million settlement with the Puerto Rico Electric Power Authority (PREPA) to resolve litigation related to post-hurricane Maria restoration work.

Share:

Illustration des dégâts de l'ouragan Maria sur le réseau électrique de Porto-Rico

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Cobra Acquisitions LLC has reached a settlement agreement with the Puerto Rico Electric Power Authority (PREPA) and the Financial Oversight and Management Board for Puerto Rico (FOMB).
The agreement ends disputes over payments due for restoration services provided after Hurricane Maria in 2017.

Background and importance of PREPA

PREPA, Puerto Rico’s electricity authority, plays a central role in the management and distribution of energy on the island.
Puerto Rico, like the rest of the southern United States, regularly sees its power grid impacted by hurricanes.
Since Hurricane Maria, PREPA has been working to rebuild the severely damaged power grid.
However, ongoing financial difficulties and bankruptcy proceedings are complicating these efforts.
In 2017, Cobra was hired to help restore the network, but payments for these services have been delayed due to PREPA’s financial situation.

Agreement details

The agreement calls for a total payment of $188 million, divided into three tranches.
Cobra will receive $150 million by the end of August 2024, $20 million following validation of the PREPA adjustment plan, and $18.4 million in funds withheld by FEMA (the federal agency responsible for natural disasters), following resolution of any appeals.
This agreement enables Cobra to reduce its bad debts and improve its financial position.

Financial implications for Mammoth Energy

Mammoth Energy plans to use part of the funds to repay its $49.3 million term loan.
The remainder, approximately $139.1 million, will be allocated to internal investments and general corporate purposes.
Mammoth’s board of directors, along with those of PREPA and FOMB, have approved the agreement, which still awaits approval from the U.S. District Court for the District of Puerto Rico.

Outlook on the PREPA situation

The resolution of this dispute represents a significant step forward for Cobra and Mammoth Energy.
However, it also highlights the financial and operational challenges that PREPA continues to face.
Managing critical infrastructure in Puerto Rico, particularly in times of economic crisis and natural disasters, remains complex and requires sustainable solutions to stabilize the island’s power grid.

The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.
A report reveals the economic impact of renewable energy losses in Chile, indicating that a 1% drop in curtailments could generate $15mn in annual savings.
Faced with growing threats to its infrastructure, Denmark raises its energy alert level in response to a series of unidentified drone flyovers and ongoing geopolitical tensions.
The Prime Minister dismissed rumours of a moratorium on renewables, as the upcoming energy roadmap triggers tensions within the sector.
Kuwait plans to develop 14.05 GW of new power capacity by 2031 to meet growing demand and reduce scheduled outages, driven by extreme temperatures and maintenance delays.
The partnership with the World Bank-funded Pro Energia+ programme aims to expand electricity access in Mozambique by targeting rural communities through a results-based financing mechanism.
The European Commission strengthens ACER’s funding through a new fee structure applied to reporting entities, aimed at supporting increased surveillance of wholesale energy market transactions.
France’s Court of Auditors is urging clarity on EDF’s financing structure, as the public utility confronts a €460bn investment programme through 2040 to support its new nuclear reactor rollout.
The U.S. Department of Energy will return more than $13bn in unspent funds originally allocated to climate initiatives, in line with the Trump administration’s new budget policy.
Under pressure from Washington, the International Energy Agency reintroduces a pro-fossil scenario in its report, marking a shift in its direction amid rising tensions with the Trump administration.
Southeast Asia, facing rapid electricity consumption growth, could tap up to 20 terawatts of solar and wind potential to strengthen energy security.
The President of the Energy Regulatory Commission was elected to the presidency of the Board of Regulators of the Agency for the Cooperation of Energy Regulators for a two-and-a-half-year term.