OKLAHOMA CITY – Questions are swirling over how a young Oklahoma company scored a $200 million contract to help restore power to Puerto Rico.
Mammoth Energy is based in Oklahoma City and specializes in oilfield services.
But, in January – they formed Cobra Acquisitions, to get into the electric transmission and distribution business.
Mammoth announced Cobra was awarded the contract just last month.
Sarah Terry-Cobo covers the energy sector for the The Journal Record.
She listened in to a call last week as the Mammoth Energy CEO fielded questions from analysts and investors about how their company won the contract.
He told them they got it the old fashioned way.
“They got on a plane. They flew to Puerto Rico. They surveyed the damage, and then they just started knocking on doors until they found the people who are with the Puerto Rico Electric Authority and got a meeting with those people,” Terry-Cobo said.
Montana-based Whitefish has already been ousted from their $300 million contract after congressional inquiries into how they got it.
The Mammoth CEO told investors there have been no similar inquiries into their company.
“That was one of the things an analyst brought up on their conference call was, hey, you know, I heard you guys are supposed to be called to Washington to testify about this. And, Arty says, as far as I know, we haven’t been called to Washington,” Terry-Cobo said.
Terry-Cobo said he also pointed out one big thing he believes helped them win the contract.
They’ll be housing all their employees on self-contained barges, taking care of housing, food, water and electricity.
“It won’t put an additional strain on the locals there and that, the CEO says, was a selling point for the Puerto Rico authorities,” Terry-Cobo said.
A spokesperson for Mammoth Energy tells us they have about 70 employees in Puerto Rico right now but the number will swell to 500 as they work to get the island back up and running.
The Mammoth CEO also told investors and analysts on the conference call FEMA was involved every step of the way as they were crafting the contract between Cobra and the Puerto Rico Electric Power Authority.