DNOW Inc.

The Company conducts certain operations through contractual arrangements with certain entities that are considered VIEs. The Company is the primary beneficiary and consolidates the VIEs as it has the power to direct the activities that most significantly affect the VIEs’ economic performance and has the obligation to absorb the VIEs’ losses or the right to receive benefits. For the three and six months ended June 30, 2026, net loss attributable to noncontrolling interests wasless than $1 million for each period, and for thethree and six months ended June 30, 2025, net income attributable to noncontrolling interests was approximatelynil and$1 million, respectively.

The assets of the VIEs can only be used to settle its own obligations and its creditors have no recourse to the Company’s assets. As of June 30, 2026 and December 31, 2025, the VIEs’ assets were primarily current assets of$25 million and$24 million, respectively, including cash and cash equivalents, receivables, net and prepaid and other current assets. As of June 30, 2026 and December 31, 2025, the VIEs’ liabilities were primarily comprised of current liabilities of$11 million and$8 million, respectively, including accounts payable and accrued liabilities.