Atlas Energy Solutions Inc.

Previous wording

This Report contains forward-looking statements that are subject to risks and uncertainties. All statements, other than statements of historical fact included in this Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Report, the words “may,” “forecast,” “continue,” “could,” “would,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the section titled “Risk Factors” included in this Report, our Annual Report, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 6, 2025. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we believe that the forward-looking statements contained in this Report are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to:

Current wording

This Report contains forward-looking statements that are subject to risks and uncertainties. All statements, other than statements of historical fact included in this Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Report, the words “may,” “forecast,” “continue,” “could,” “would,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the section titled “Risk Factors” included in this Report, our Annual Report, and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, filed with the SEC on May 6, 2025 and August 5, 2025, respectively. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we believe that the forward-looking statements contained in this Report are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to:

Previous wording

We caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, the risks described under the section titled “Item 1A. Risk Factors” in this Report and the risk factors disclosed under the heading “Risk Factors” included in our Annual Report and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 6, 2025.

Current wording

We caution you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, the risks described under the section titled “Item 1A. Risk Factors” in this Report and the risk factors disclosed under the heading “Risk Factors” included in our Annual Report and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, filed with the SEC on May 6, 2025 and August 5, 2025, respectively.

Previous wording

We operate a differentiated logistics platform that is designed to increase the efficiency, safety and sustainability of the oil and natural gas industry within the Permian Basin. This includes our fleet of fit-for-purpose trucks, trailers, and the Dune Express, an overland conveyor infrastructure solution. We have also begun integrating autonomous driving technologies in certain of our fit-for-purpose trucks, creating the first semi-autonomous oilfield logistics network in an effort to increase our automation of the oil and gas proppant supply chain.

Current wording

We operate a differentiated logistics platform that is designed to increase the efficiency, safety and sustainability of the oil and natural gas industry within the Permian Basin. This includes our fleet of fit-for-purpose trucks, trailers, wellsite equipment, and the Dune Express, an overland conveyor infrastructure solution. We have also begun integrating autonomous driving technologies in certain of our fit-for-purpose trucks, creating the first semi-autonomous oilfield logistics network in an effort to increase our automation of the oil and gas proppant supply chain.

Previous wording

We also provide distributed power solutions through a fleet of more than 950 natural gas-powered reciprocating generators, with approximately 225 megawatts of existing power generation, primarily supporting production and artificial lift operations across all major United States resource basins. Our generators are designed for heavy-duty, harsh environments for mission critical power needs. Our in-house manufacturing and remanufacturing capabilities, coupled with critical in-field service, provide quality control and standardization across the fleet ensuring market-leading uptime.

Current wording

We also provide distributed power solutions through a fleet of natural gas-powered reciprocating generators primarily supporting production and artificial lift operations across major United States resource basins. Our generators are designed for heavy-duty, harsh environments for mission critical power needs. Our in-house manufacturing and remanufacturing capabilities, coupled with critical in-field service, provide quality control and standardization across the fleet ensuring market-leading uptime.

Previous wording

Under the terms and conditions of the Moser Purchase Agreement, the aggregate consideration paid to the Seller in the Moser Acquisition (the “Moser Consideration”) consisted of (i) $180.0 million in cash and (ii) approximately 1.7 million shares (the “Moser Stock Consideration”) of Common Stock, issued at the closing of the Moser Acquisition. The Moser Consideration is subject to customary post-closing adjustments.

Current wording

Under the terms and conditions of the Moser Purchase Agreement, the aggregate consideration paid to the Seller in the Moser Acquisition (the “Moser Consideration”) consisted of (i) $180.0 million in cash and (ii) approximately 1.7 million shares (the “Moser Stock Consideration”) of Common Stock, issued at the closing of the Moser Acquisition. The Moser Consideration is subject to customary post-closing adjustments. For further discussion, refer to Note 3 - Acquisitionsof the Financial Statements included elsewhere in this Report.

Previous wording

On August 3, 2025, the Company declared a dividend of $0.25 per share of Common Stock. The dividend will be payable on August 21, 2025 to holders of record of Common Stock as of the close of business on August 14, 2025.

Current wording

On August 3, 2025, the Company declared a dividend of $0.25 per share of Common Stock. The dividend was paid on August 21, 2025 to holders of record of Common Stock as of the close of business on August 14, 2025.

Previous wording

Drilling and completions activities for oil and gas are highly correlated to oil and gas prices. Despite commodity price fluctuations due to ongoing uncertainties in geopolitics, OPEC+ production plans, tariffs, and Chinese economic growth, amongst other factors, North American drilling and completion activity remained relatively flat during the period. The price for West Texas Intermediate (“WTI”) crude oil ended the second quarter of 2025 at $65.11 per barrel (“Bbl”), as compared to $81.54 per Bbl in the second quarter of 2024, representing a decrease of approximately 20%. Global oil prices declined during the first half of 2025 on oversupply fears largely due to the OPEC+ decision to increase production, but we believe global economic growth coupled with an increased focus on energy security and large projected multi-year increases in power consumption should bolster demand, in both crude oil and natural gas, in the coming years.

Current wording

Drilling and completions activities for oil and gas are highly correlated to oil and gas prices. Despite commodity price fluctuations due to ongoing uncertainties in geopolitics, OPEC+ production hikes, and tariffs, amongst other factors, North American drilling and completion activity experienced a modest decline during the period. The price for West Texas Intermediate crude oil ended the third quarter of 2025 at $63.96 per barrel (“Bbl”), as compared to $70.24 per Bbl in the third quarter of 2024, representing a decrease of approximately 9%. Global oil prices declined on oversupply fears largely due to the OPEC+ decision to unwind output cuts, but we believe global economic growth coupled with an increased focus on domestic energy security, and large projected multi-year increases in power consumption, should bolster demand in both crude oil and natural gas in the coming years.

Previous wording

Revenues also include charges for sand logistics services provided to our customers. Our logistics service revenue fluctuates based on several factors, including the volume of proppant transported, the distance between our facilities and our customers, and prevailing freight rates. Revenue is generally recognized as products are delivered in accordance with the contract.

Current wording

Revenues also include charges for sand logistics services provided to our customers. Our logistics service revenue fluctuates based on several factors, including the volume of proppant transported, the distance between our facilities and our customers, and prevailing freight rates. Revenue is generally recognized as products are delivered and services are provided in accordance with the contract.

Previous wording

We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total sales.

Current wording

We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue.

Previous wording

We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total sales.

Current wording

We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total revenue.

Previous wording

We define Adjusted EBITDA less Capital Expenditures Margin as Adjusted EBITDA less Capital Expenditures divided by total sales.

Current wording

We define Adjusted EBITDA less Capital Expenditures Margin as Adjusted EBITDA less Capital Expenditures divided by total revenue.

Previous wording

(1) Represents loss on disposal of assets as a result of the fire at one of the Kermit plants that caused damage to the physical condition of the Kermit asset group.

Current wording

(1) Represents loss on disposal of one of the Company’s dredge mining assets at its Kermit facility and loss on disposal of assets as a result of the fire at one of the Kermit plants that caused damage to the physical condition of the Kermit asset group.

Previous wording

(2) Represents insurance recovery (gain) deemed collectible and legally enforceable related to the fire at one of the Kermit plants.

Current wording

(2) Represents insurance recovery (gain) related to the fire at one of the Kermit plants.

Previous wording

On March 5, 2024, the Company completed the Hi-Crush Transaction, in which the Company acquired substantially all of Hi-Crush Inc.’s, a Delaware corporation (“Hi-Crush”), Permian Basin proppant production and logistics businesses and operations in exchange for (i) cash consideration of $140.1 million, (ii) 9.7 million shares of Common Stock issued at the closing of the transaction, and (iii) the Deferred Cash Consideration Note in an aggregate principle amount of $111.3 million. This history impacts the comparability of our operational results from year to year. Additional information on these transactions can be found in Note 3 - Acquisitions of the condensed consolidated financial statements included elsewhere in this Report.

Current wording

On March 5, 2024, the Company completed the Hi-Crush Transaction, in which the Company acquired substantially all of Hi-Crush Inc.’s, a Delaware corporation (“Hi-Crush”), Permian Basin proppant production and logistics businesses and operations in exchange for (i) cash consideration of $140.1 million, (ii) 9.7 million shares of Common Stock issued at the closing of the transaction, and (iii) the Deferred Cash Consideration Note in an aggregate principal amount of $111.3 million. This history impacts the comparability of our operational results from year to year. Additional information on these transactions can be found in Note 3 - Acquisitions of the Financial Statements included elsewhere in this Report.

Previous wording

On February 24, 2025, the Company completed the Moser Acquisition, in which the Company acquired 100% of the authorized, issued and outstanding equity ownership interests in Moser AcquisitionCo and Moser Engine Service, Inc. (d/b/a Moser Energy Systems) in exchange for (i) cash consideration of $180.0 million and (ii) the Moser Stock Consideration. This history impacts the comparability of our operational results from year to year. Additional information on these transactions can be found in Note 3 - Acquisitions of the condensed consolidated financial statements included elsewhere in this Report.

Current wording

On February 24, 2025, the Company completed the Moser Acquisition, in which the Company acquired 100% of the authorized, issued and outstanding equity ownership interests in Moser AcquisitionCo and Moser Engine Service, Inc. (d/b/a Moser Energy Systems) in exchange for (i) cash consideration of $180.0 million and (ii) the Moser Stock Consideration. This history impacts the comparability of our operational results from year to year. Additional information on these transactions can be found in Note 3 - Acquisitions of the Financial Statements included elsewhere in this Report.

Previous wording

Product Revenue. Product revenue decreased by $1.9 million to $126.3 million for the three months ended June 30, 2025, as compared to $128.2 million for the three months ended June 30, 2024. There was a decrease in proppant prices between the periods which contributed to a $26.1 million decrease in product revenue. This was offset by an increase in sales volume contributed to a $12.7 million increase in product revenue. There was $11.5 million in shortfall revenue for the three months ended June 30, 2025, as compared to no shortfall revenue for the three months ended June 30, 2024.

Current wording

Product Revenue. Product revenue decreased by $38.5 million to $106.8 million for the three months ended September 30, 2025, as compared to $145.3 million for the three months ended September 30, 2024. There was a decrease in proppant prices between the periods which contributed to a $20.9 million decrease in product revenue. Additionally, a decrease in sales volume contributed to a $17.6 million decrease in product revenue.

Previous wording

Service Revenue. Services revenue, which includes freight for last-mile logistics services, decreased by $12.9 million to $146.4 million for the three months ended June 30, 2025, as compared to $159.3 million for the three months ended June 30, 2024. The decrease in logistics revenue was due to a decrease in prices on volumes shipped to last-mile logistics customers.

Current wording

Service Revenue. Services revenue, which includes freight for last-mile logistics services, decreased by $23.4 million to $135.7 million for the three months ended September 30, 2025, as compared to $159.1 million for the three months ended September 30, 2024. The decrease in logistics revenue was due to lower sales volumes shipped to last-mile logistics customers.

Previous wording

Rental Revenue. Rental revenue is $16.0 million for the three months ended June 30, 2025, due to the acquisition of Moser and the related revenue from leasing power equipment. There was no rental revenue for the three months ended June 30, 2024.

Current wording

Rental Revenue. Rental revenue is $17.1 million for the three months ended September 30, 2025, due to the acquisition of Moser and the related revenue from leasing power equipment. There was no rental revenue for the three months ended September 30, 2024.

Previous wording

Cost of sales (excluding depreciation, depletion and accretion expense). Cost of sales (excluding depreciation, depletion and accretion expense) decreased by $6.2 million to $195.9 million for the three months ended June 30, 2025, as compared to $202.1 million for the three months ended June 30, 2024.

Current wording

Cost of sales (excluding depreciation, depletion and accretion expense). Cost of sales (excluding depreciation, depletion and accretion expense) decreased by $30.1 million to $195.2 million for the three months ended September 30, 2025, as compared to $225.3 million for the three months ended September 30, 2024.

Previous wording

Cost of sales (excluding depreciation, depletion and accretion) related to product revenue decreased by $1.9 million to $66.1 million for the three months ended June 30, 2025, as compared to $68.0 million for the three months ended June 30, 2024. This decrease was due to higher costs related to the temporary loadout equipment associated with the mechanical fire at the Kermit facility for the three months ended June 30, 2024.

Current wording

Cost of sales (excluding depreciation, depletion and accretion) related to product revenue decreased by $17.8 million to $71.0 million for the three months ended September 30, 2025, as compared to $88.8 million for the three months ended September 30, 2024. This decrease was due to a decrease in rental equipment and outside service cost associated with lower production, as well as not incurring costs related to the temporary loadout equipment associated with the mechanical fire at the Kermit facility that occurred in 2024.

Previous wording

Cost of sales (excluding depreciation, depletion and accretion expense) related to services decreased by $10.2 million to $123.9 million for the three months ended June 30, 2025, as compared to $134.1 million for the three months ended June 30, 2024. The decrease was due to lower freight costs associated with higher utilization of the Dune Express.

Current wording

Cost of sales (excluding depreciation, depletion and accretion expense) related to services decreased by $18.7 million to $117.8 million for the three months ended September 30, 2025, as compared to $136.5 million for the three months ended September 30, 2024. The decrease was due to shortened average drive distances for deliveries to last-mile logistics customers during the period.

Previous wording

Cost of sales (excluding depreciation, depletion, and accretion expense) related to rentals is $5.9 million for the three months ended June 30, 2025, due to the acquisition of Moser and the cost of sales associated with leasing power equipment. There was no cost of sales related to rentals for the three months ended June 30, 2024.

Current wording

Cost of sales (excluding depreciation, depletion, and accretion expense) related to rentals is $6.4 million for the three months ended September 30, 2025, due to the acquisition of Moser and the cost of sales associated with leasing power equipment. There was no cost of sales related to rentals for the three months ended September 30, 2024.

Previous wording

Depreciation, depletion and accretion expense. Depreciation, depletion and accretion expense increased by $15.6 million to $40.6 million for the three months ended June 30, 2025, as compared to $25.0 million for the three months ended June 30, 2024, due to additional depreciable assets placed into service when compared to the prior period as well as contribution from Moser.

Current wording

Depreciation, depletion and accretion expense. Depreciation, depletion and accretion expense increased by $14.5 million to $40.6 million for the three months ended September 30, 2025, as compared to $26.1 million for the three months ended September 30, 2024, due to additional depreciable assets placed into service when compared to the prior period as well as contribution from Moser and PropFlow.

Previous wording

Selling, general and administrative expense. Selling, general and administrative expense increased by $7.1 million to $34.4 million for the three months ended June 30, 2025, as compared to $27.3 million for the three months ended June 30, 2024. The increase is due to an increase of $2.8 million from stock-based compensation, an increase of $0.2 million in corporate costs, as well as $4.1 million contribution from Moser for the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Current wording

Selling, general and administrative expense. Selling, general and administrative expense increased by $10.8 million to $36.3 million for the three months ended September 30, 2025, as compared to $25.5 million for the three months ended September 30, 2024. The increase is due to an increase of $3.0 million from stock-based compensation, an increase of $3.7 million in other corporate expenses, as well as $4.1 million contribution from Moser for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Previous wording

Our selling, general and administrative expense includes the non-cash expense for stock-based compensation expense for equity awards granted to our employees. For the three months ended June 30, 2025, stock-based compensation expense was $8.3 million, as compared to $5.5 million of stock-based expense for the three months ended June 30, 2024.

Current wording

Our selling, general and administrative expense includes the non-cash expense for stock-based compensation expense for equity awards granted to our employees. For the three months ended September 30, 2025, stock-based compensation expense was $9.3 million, as compared to $6.3 million of stock-based compensation expense for the three months ended September 30, 2024.

Previous wording

Amortization expense of acquired intangible assets. Amortization expense of acquired intangible assets increased $2.7 million to $6.5 million for the three month ended June 30, 2025, as compared to $3.8 million for the three month ended June 30, 2024. The increase was primarily due to the amortization of intangibles associated with the Moser acquisition.

Current wording

Amortization expense of acquired intangible assets. Amortization expense of acquired intangible assets increased $2.2 million to $5.9 million for the three month ended September 30, 2025, as compared to $3.7 million for the three month ended September 30, 2024. The increase was primarily due to the amortization of intangibles associated with the Moser Acquisition and PropFlow Acquisition.

Previous wording

Loss on disposal of assets. There was no loss on disposal of assets for the six months ended June 30, 2025, as compared to $11.1 million loss on disposal of assets for the six months ended June 30, 2024, due to $11.1 million disposal of certain assets associated with mechanical fire at the Kermit facility. See Note 6 - Property, Plant and Equipment, Net - Impairment or Disposal of Long-Lived Assetsfor more information.

Current wording

Loss on disposal of assets. There was no loss on disposal of assets for the three months ended September 30, 2025, as compared to $8.6 million loss on disposal of assets for the three months ended September 30, 2024, due to the $8.6 million disposal from the damaged dredge asset. See Note 6 - Property, Plant and Equipment, Net - Impairment or Disposal of Long-Lived Assetsfor more information.

Previous wording

Interest (expense), net. Interest expense, net increased by $4.3 million to $14.8 million for the three months ended June 30, 2025, as compared to $10.5 million for the three months ended June 30, 2024. The increase is driven by the 2025 Term Loan Credit Facility and associated debt refinancing.

Current wording

Interest (expense), net. Interest expense, net increased by $3.8 million to $15.0 million for the three months ended September 30, 2025, as compared to $11.2 million for the three months ended September 30, 2024. The increase is driven by the 2025 Term Loan Credit Facility and associated debt refinancing.

Previous wording

Income tax expense (benefit). Income tax expense (benefit) decreased $4.8 million to $(1.7) million for the three months ended June 30, 2025, as compared to $3.1 million for the three months ended June 30, 2024. The decrease is primarily attributable to a decrease in income before income taxes for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Current wording

Income tax expense (benefit). Income tax expense (benefit) decreased by $10.2 million to $(9.8) million for the three months ended September 30, 2025, as compared to $0.4 million for the three months ended September 30, 2024. The decrease is primarily attributable to a decrease in income before income taxes for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Previous wording

Product Revenue. Product revenue increased by $24.4 million to $266.0 million for the six months ended June 30, 2025, as compared to $241.6 million for the six months ended June 30, 2024. An increase in sales volume contributed to a $61.0 million increase in product revenue. This was partially offset by a decrease in proppant prices between the periods which contributed to a $60.5 million decrease in product revenue. There was $23.9 million in shortfall revenue for the six months ended June 30, 2025, as compared to no shortfall revenue for the six months ended June 30, 2024.

Current wording

Product Revenue. Product revenue decreased by $14.2 million to $372.8 million for the nine months ended September 30, 2025, as compared to $387.0 million for the nine months ended September 30, 2024. A decrease in proppant prices between the periods contributed to a $77.6 million decrease in product revenue. This was partially offset by an increase in sales volume which contributed to a $39.5 million increase in product revenue. Additionally, there was $23.9 million in shortfall revenue for the nine months ended September 30, 2025, as compared to no shortfall revenue for the nine months ended September 30, 2024.

Previous wording

Service Revenue. Services revenue, which includes freight for last-mile logistics services, increased by $58.5 million to $297.0 million for the six months ended June 30, 2025, as compared to $238.5 million for the six months ended June 30, 2024. The increase in logistics revenue was due to higher sales volumes shipped to last-mile logistics customers.

Current wording

Service Revenue. Services revenue, which includes freight for last-mile logistics services, increased by $35.0 million to $432.6 million for the nine months ended September 30, 2025, as compared to $397.6 million for the nine months ended September 30, 2024. The increase in logistics revenue was due to higher sales volumes shipped to last-mile logistics customers.

Previous wording

Rental Revenue. Rental revenue is $23.3 million for the six months ended June 30, 2025, due to the acquisition of Moser and the related revenue from leasing power equipment. There was no rental revenue for the six months ended June 30, 2024.

Current wording

Rental Revenue. Rental revenue is $40.4 million for the nine months ended September 30, 2025, due to the acquisition of Moser and the related revenue from leasing power equipment. There was no rental revenue for the nine months ended September 30, 2024.

Previous wording

Cost of sales (excluding depreciation, depletion and accretion expense). Cost of sales (excluding depreciation, depletion and accretion expense) increased by $93.1 million to $402.0 million for the six months ended June 30, 2025, as compared to $308.9 million for the six months ended June 30, 2024.

Current wording

Cost of sales (excluding depreciation, depletion and accretion expense). Cost of sales (excluding depreciation, depletion and accretion expense) increased by $63.0 million to $597.2 million for the nine months ended September 30, 2025, as compared to $534.2 million for the nine months ended September 30, 2024.

Previous wording

Cost of sales (excluding depreciation, depletion and accretion) related to product revenue increased by $29.0 million to $136.4 million for the six months ended June 30, 2025, as compared to $107.4 million for the six months ended June 30, 2024, due to increased production.

Current wording

Cost of sales (excluding depreciation, depletion and accretion) related to product revenue increased by $11.1 million to $207.3 million for the nine months ended September 30, 2025, as compared to $196.2 million for the nine months ended September 30, 2024, due to increased mining, utility, and payroll cost associated with increased production. This was partially offset by not incurring costs related to the temporary loadout equipment associated with the mechanical fire at the Kermit facility that occurred in 2024.

Previous wording

Cost of sales (excluding depreciation, depletion and accretion expense) related to services increased by $55.9 million to $257.4 million for the six months ended June 30, 2025, as compared to $201.5 million for the six months ended June 30, 2024. The increase was due to higher sales volumes shipped to last-mile logistics customers during the period.

Current wording

Cost of sales (excluding depreciation, depletion and accretion expense) related to services increased by $37.1 million to $375.1 million for the nine months ended September 30, 2025, as compared to $338.0 million for the nine months ended September 30, 2024. The increase was due to the higher sales volumes shipped being partially offset by shortened average drive distances for deliveries to last-mile logistics customers during the period.

Previous wording

Cost of sales (excluding depreciation, depletion, and accretion expense) related to rentals is $8.2 million for the six months ended June 30, 2025, due to the acquisition of Moser and the cost of sales associated with leasing power equipment. There was no cost of sales related to rentals for the six months ended June 30, 2024.

Current wording

Cost of sales (excluding depreciation, depletion, and accretion expense) related to rentals is $14.8 million for the nine months ended September 30, 2025, due to the acquisition of Moser and the cost of sales associated with leasing power equipment. There was no cost of sales related to rentals for the nine months ended September 30, 2024.

Previous wording

Depreciation, depletion and accretion expense. Depreciation, depletion and accretion expense increased by $35.4 million to $77.6 million for the six months ended June 30, 2025, as compared to $42.2 million for the six months ended June 30, 2024, due to additional depreciable assets placed into service when compared to the prior period as well as contribution from Moser.

Current wording

Depreciation, depletion and accretion expense. Depreciation, depletion and accretion expense increased by $50.0 million to $118.3 million for the nine months ended September 30, 2025, as compared to $68.3 million for the nine months ended September 30, 2024, due to additional depreciable assets placed into service when compared to the prior period as well as contribution from Moser and PropFlow.

Previous wording

Selling, general and administrative expense. Selling, general and administrative expense increased by $13.6 million to $68.8 million for the six months ended June 30, 2025, as compared to $55.2 million for the six months ended June 30, 2024. The increase is due to an increase of $5.1 million from stock-based compensation, an increase of $2.6 million in corporate costs, as well as $5.9 million contribution from Moser for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Current wording

Selling, general and administrative expense. Selling, general and administrative expense increased by $24.4 million to $105.1 million for the nine months ended September 30, 2025, as compared to $80.7 million for the nine months ended September 30, 2024. The increase is due to an increase of $8.2 million from stock-based compensation, an increase of $6.2 million in other corporate expenses, as well as $10.0 million contribution from Moser for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Previous wording

Our selling, general and administrative expense includes the non-cash expense for stock-based compensation expense for equity awards granted to our employees. For the six months ended June 30, 2025, stock-based compensation expense was $14.8 million, as compared to $9.7 million of stock-based expense for the six months ended June 30, 2024.

Current wording

Our selling, general and administrative expense includes the non-cash expense for stock-based compensation expense for equity awards granted to our employees. For the nine months ended September 30, 2025, stock-based compensation expense was $24.2 million, as compared to $16.0 million of stock-based compensation expense for the nine months ended September 30, 2024.

Previous wording

Credit loss expense. Credit loss expense is $4.1 million for the six months ended June 30, 2025, as compared to de minimis credit loss expense for the six months ended June 30, 2024, due to certain shortfall receivables. See Note 2 - Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Credit Losses for more information.

Current wording

Credit loss expense. Credit loss expense is $4.2 million for the nine months ended September 30, 2025, as compared to de minimis credit loss expense for the nine months ended September 30, 2024, due to certain shortfall receivables. See Note 2 - Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Credit Losses for more information.