ProFrac Holding Corp.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto included in this Quarterly Report, as well as our Annual Report.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto included in this Quarterly Report, as well as our Annual Report.

Previous wording

Total revenue for the three months and six months ended June 30, 2026 was $498.1 million and $947.7 million, respectively, which represented decreases of $3.8 million and $154.5 million, respectively, from the same periods in 2025.

Current wording

Total revenue for the three months and nine months ended September 30, 2026 was $511.1 million and $1,458.8 million, respectively, which represented an increase of $108.0 million and a decrease of $46.5 million, respectively, from the same periods in 2025.

Previous wording

Net loss attributable to ProFrac Holding Corp. for the three months and six months ended June 30, 2026 was $79.7 million and $163.2 million, respectively, which represented a decrease in net loss of $28.3 million and an increase of net loss of $37.7 million, respectively, from the same periods in 2025.

Current wording

Net loss attributable to ProFrac Holding Corp. for the three months and nine months ended September 30, 2026 was $80.7 million and $243.9 million, respectively, which represented a decrease of net loss of $20.2 million and an increase of net loss of $17.5 million, respectively, from the same periods in 2025.

Previous wording

Cash provided by operating activities for the six months ended June 30, 2026, was $32.2 million, a decrease of $103.2 million from the same period in 2025.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2026, was $83.3 million, a decrease of $56.7 million from the same period in 2025.

Previous wording

Total principal amount of long-term debt was $1,102.4 million at June 30, 2026, an increase of $54.3 million from December 31, 2025.

Current wording

Total principal amount of long-term debt was $1,051.1 million at September 30, 2026, an increase of $3.0 million from December 31, 2025.

Previous wording

On July 1, 2026, we entered into a new credit agreement with Eclipse Business Capital LLC, as agent, collateral agent, swingline lender, lead arranger and bookrunner, providing for a $300 million asset-based revolving credit facility, which refinanced and replaced our 2022 ABL Credit Facility. See “Note 14. Subsequent Events” in the notes to our unaudited condensed consolidated financial statements for more information regarding our new revolving credit facility.

Current wording

On July 1, 2026, we entered into a new credit agreement with Eclipse Business Capital LLC, as agent, collateral agent, swingline lender, lead arranger and bookrunner, providing for a $300 million asset-based revolving credit facility, which refinanced and replaced our 2022 ABL Credit Facility. See “Note 4. Debt” in the notes to our unaudited condensed consolidated financial statements for more information regarding our new revolving credit facility.

Previous wording

Our business depends on the willingness of E&P companies to make expenditures to explore for, develop, and produce oil and natural gas in the United States. The willingness of E&P companies to undertake these activities is predominantly influenced by current and expected future prices for oil and natural gas. Adverse weather impacted our results early in the first quarter of 2026. In the second quarter of 2026, oil commodity prices were higher than their average in the first quarter of 2026 with increased volatility.

Current wording

Our business depends on the willingness of E&P companies to make expenditures to explore for, develop, and produce oil and natural gas in the United States. The willingness of E&P companies to undertake these activities is predominantly influenced by current and expected future prices for oil and natural gas as well as E&P spending to drill and complete wells. West Texas Intermediate oil prices were volatile late in the second quarter and have recently increased on continued geopolitical disruptions coupled with historically low U.S. Strategic Petroleum Reserves. Henry Hub natural gas prices have generally settled between $2.52 and $3.34 per MMBtu from the beginning of the third quarter through October 27, 2026. Natural gas demand is anticipated to increase due to LNG exports in addition to the build out of AI-focused domestic power generation to support scaled data center compute capabilities.

Previous wording

We currently expect increased pricing for our Stimulation Services business in the third quarter of 2026, compared to the second quarter of 2026. We have observed increased customer demand for hydraulic fracturing equipment that can operate with fuel other than diesel as well as a reduced supply of this equipment due to industry attrition. While we have limited visibility for future demand for our products and services, we are encouraged by current market dynamics and increasing customer engagement around 2027 planning.

Current wording

We experienced increased pricing for our Stimulation Services business in the third quarter of 2026, compared to the second quarter of 2026. We have observed increased customer demand for hydraulic fracturing equipment that can operate with fuel other than diesel as well as a reduced supply of this equipment due to industry attrition, equipment cannibalization and lower capital investment. Despite uneven activity in the third quarter, due to unanticipated white space and downtime, fourth quarter utilization has improved and is expected to remain relatively consistent including customary year-end seasonality. We remain constructive on supply and demand fundamentals and pricing as we look ahead to 2027.

Previous wording

We actively monitor the effects of inflation and tariffs on our business; however, the potential effects of inflation and tariffs on our business remain uncertain at this time.

Current wording

We actively monitor the effects of inflation and tariffs on our business; however, the effects of tariffs on our business remain uncertain at this time. We have experienced inflationary pressure on hydraulic fracturing materials, such as proppant and chemistry, lubricants, fuel, and labor, in addition to logistics and trucking, with less pronounced increases on capital equipment and components.

Previous wording

Proppant Production. Proppant Production revenues for the three and six months ended June 30, 2026 increased $43.8 million and $96.1 million, or 57% and 66%, respectively, from the same periods in 2025. The increase was primarily due to higher average pricing for our proppant in 2026 compared to the same periods last year, which was due to a shift in intercompany sales mix from mine-gate pricing to wellsite pricing that began in the second quarter of 2025.

Current wording

Proppant Production. Proppant Production revenues for the three and nine months ended September 30, 2026 increased $24.6 million and $120.7 million, or 32% and 55%, respectively, from the same periods in 2025. The increase was primarily due to higher average pricing for our proppant in 2026 compared to the same periods last year, which was due to a shift in intercompany sales mix from mine-gate pricing to wellsite pricing that began in the second quarter of 2025.

Previous wording

Additionally, revenue recognized for the amortization of acquired off-market contracts for the three and six months ended June 30, 2026 was zero, compared to $1.9 million and $7.6 million in the same periods in 2025. Refer to Item 8 "Financial Statements and Supplementary Data" in our Annual Report for information about our acquired contract liabilities. During the three and six months ended June 30, 2026, approximately 87% and 88%, respectively, of the Proppant Production segment's revenues were intercompany, compared with 58% and 48% in the same periods in 2025.

Current wording

Additionally, revenue recognized for the amortization of acquired off-market contracts for the three and nine months ended September 30, 2026 was zero, compared to zero and $7.6 million in the same periods in 2025. Refer to Item 8 "Financial Statements and Supplementary Data" in our Annual Report for information about our acquired contract liabilities. During the three and nine months ended September 30, 2026, approximately 79% and 85%, respectively, of the Proppant Production segment's revenues were intercompany, compared with 73% and 57% in the same periods in 2025.

Previous wording

Manufacturing. Manufacturing revenues for the three and six months ended June 30, 2026 decreased by $8.0 million and $25.4 million, or 14% and 21% respectively from the same periods in 2025. The decrease was due to decreased intercompany demand for manufacturing products. During the three and six months ended June 30, 2026, approximately 82% and 84%, respectively, of the Manufacturing segment's revenues were intercompany, compared with 78% and 83% in the same periods in 2025.

Current wording

Manufacturing. Manufacturing revenues for the three and nine months ended September 30, 2026 increased by $5.3 million and decreased by $20.1 million, or 11% and 12% respectively from the same periods in 2025. These changes were due to the changes in intercompany demand for manufacturing products. During both the three and nine months ended September 30, 2026, approximately 83% of the Manufacturing segment's revenues were intercompany, compared with 82% in the same periods in 2025.

Previous wording

Flotek. Flotek revenues for the three and six months ended June 30, 2026 increased by $42.0 million and $57.5 million, or 70% and 49%, from the same periods in 2025. The increase was primarily due to increased volume of intercompany sales to the Stimulation Services segment and increased sales to external customers. Flotek recorded contract shortfall revenue for the three and six months ended June 30, 2026 of $1.2 and $3.9, compared to $7.7 million and $15.2 million in the same periods in 2025, related to contract shortfalls with the Stimulation Services segment. During the three and six months ended June 30, 2026, approximately 58% and 65% of Flotek revenues were intercompany, compared with 58% and 58% in the same periods in 2025.

Current wording

Flotek. Flotek revenues for the three and nine months ended September 30, 2026 increased by $59.3 million and $116.8 million, or 103% and 67%, from the same periods in 2025. The increases were primarily due to increased volumes of intercompany sales to the Stimulation Services segment and increased sales to external customers. Flotek recorded contract shortfall revenue for the three and nine months ended September 30, 2026 of $0.9 million and $4.8 million, compared to $8.7 million and $23.9 million in the same periods in 2025, related to contract shortfalls with the Stimulation Services segment. During the three and nine months ended September 30, 2026, approximately 51% and 59% of Flotek revenues were intercompany, compared with 60% and 58% in the same periods in 2025.

Previous wording

Other. Other revenues for the three and six months ended June 30, 2026 decreased by $1.6 million and $4.1 million from the same periods in 2025. The decrease was due to lower intercompany sales for Livewire. During the three and six months ended June 30, 2026, approximately 100% and 100%, respectively, of other revenues were intercompany, compared with 100% and 99% in the same periods in 2025.

Current wording

Other. Other revenues for the three and nine months ended September 30, 2026 increased by $0.6 million and decreased by $3.5 million from the same periods in 2025. These changes were due to changes in intercompany sales for Livewire. During both the three and nine months ended September 30, 2026, 100% of other revenues were intercompany, compared with 100% and 99% in the same periods in 2025.

Previous wording

Stimulation Services. Stimulation Services cost of revenues for the three and six months ended June 30, 2026 increased by $15.5 million and decreased $23.0 million, or 4% and 3%, respectively, from the same periods in 2025. These changes were due to a decrease in average active fleets in 2026 compared to the same periods last year. These decreases were offset by an increase in jobs where we supplied proppant and chemistry. Cost of revenues for this segment included intercompany supply commitment charges of $1.2 million and $7.7 million for the three months ended June 30, 2026 and 2025, respectively, and $3.9 million and $15.2 million for the six months ended June 30, 2026 and 2025, respectively, because the Stimulation Services segment did not purchase the minimum contractual commitment of chemistry products from Flotek.

Current wording

Stimulation Services. Stimulation Services cost of revenues for the three and nine months ended September 30, 2026 increased by $57.3 million and $34.3 million, or 19% and 3%, respectively, from the same periods in 2025. These increases were due to an increase in proppant and chemistry volumes and pricing. The increase for the first nine months of 2026 was partially offset by a decrease in average active fleets in 2026 compared to the same period last year. Cost of revenues for this segment included intercompany supply commitment charges of $0.9 million and $8.7 million for the three months ended September 30, 2026 and 2025, respectively, and $4.8 million and $23.9 million for the nine months ended September 30, 2026 and 2025, respectively, because the Stimulation Services segment did not purchase the minimum contractual commitment of chemistry products from Flotek.

Previous wording

Proppant Production. Proppant Production cost of revenues for the three and six months ended June 30, 2026 increased by $52.2 million and $117.5 million, or 91% and 117%, respectively, from the same periods in 2025. These increases were primarily due to increased costs to support the shift in intercompany sales mix from mine-gate pricing to wellsite pricing, which began in the second quarter of 2025. Additionally, costs of revenues also increased due to a mix shift towards brokered volumes in 2026.

Current wording

Proppant Production. Proppant Production cost of revenues for the three and nine months ended September 30, 2026 increased by $28.8 million and $146.3 million, or 45% and 89%, respectively, from the same periods in 2025. These increases were primarily due to increased costs to support the shift in intercompany sales mix from mine-gate pricing to wellsite pricing, which began in the second quarter of 2025. Additionally, costs of revenues also increased due to a mix shift towards brokered volumes in 2026.

Previous wording

Manufacturing. Manufacturing cost of revenues for the three and six months ended June 30, 2026 decreased by $5.0 million and $22.2 million, or 11% and 22%, respectively, from the same periods in 2025. These decreases were due to decreased volumes of products sold to intercompany customers in 2026.

Current wording

Manufacturing. Manufacturing cost of revenues for the three and nine months ended September 30, 2026 increased by $4.8 million and decreased by $17.4 million, or 12% and 13%, respectively, from the same periods in 2025. These changes were due to changes in the volumes of products sold to intercompany customers in 2026.

Previous wording

Flotek.. Flotek cost of revenues for the three and six months ended June 30, 2026 increased by $31.3 million and $42.4 million, or 72% and 49%, respectively, from the same periods in 2025. These increases were primarily due to increased volumes of intercompany sales and sales to external customers.

Current wording

Flotek. Flotek cost of revenues for the three and nine months ended September 30, 2026 increased by $47.9 million and $90.3 million, or 125% and 73%, respectively, from the same periods in 2025. These increases were primarily due to increased volumes of intercompany sales and sales to external customers.

Previous wording

Other. Other cost of revenues for the three and six months ended June 30, 2026 decreased by $1.9 million and $3.9 million, or 37% and 39%, respectively, from the same periods in 2025. The decrease was due to lower intercompany sales for Livewire.

Current wording

Other. Other cost of revenues for the three and nine months ended September 30, 2026 decreased by $0.2 million and $4.1 million, or 6% and 31%, respectively, from the same periods in 2025. The decrease was due to lower intercompany sales for Livewire.

Previous wording

Selling, general and administrative expenses for the three and six months ended June 30, 2026 decreased by $7.7 million and $17.7 million, or 15% and 17%, respectively, from the same periods in 2025. These decreases were primarily due to lower labor and non-labor costs resulting from cost control measures.

Current wording

Selling, general and administrative expenses for the three and nine months ended September 30, 2026 increased by $2.0 million and decreased by $15.7 million, or 5% and 11%, respectively, from the same periods in 2025. The decrease for the first nine months of 2026 was primarily due to lower labor and non-labor costs resulting from cost control measures. Additionally, management fees of $3.5 million owed to Wilks Brothers, LLC was reclassified to stock-based compensation expense in the third quarter of 2025 as a result of an agreement to settle certain management fee payments by issuing common stock.

Previous wording

Depreciation, depletion, and amortization for the three and six months ended June 30, 2026 decreased by $7.7 million and $16.6 million, respectively, from the same periods in 2025 due to certain assets becoming fully depreciated.

Current wording

Depreciation, depletion, and amortization for the three and nine months ended September 30, 2026 decreased by $6.3 million and $22.9 million, respectively, from the same periods in 2025 due to certain assets becoming fully depreciated.

Previous wording

Litigation expenses generally represent legal and professional fees incurred in litigation as well as estimates for loss contingencies with regards to certain vendor disputes and litigation matters. In the periods presented, these costs primarily represent litigation costs incurred in connection with certain patent infringement lawsuits.

Current wording

Litigation expenses generally represent legal and professional fees incurred in litigation as well as estimates for loss contingencies with regards to certain vendor disputes and litigation matters. In 2025, these costs primarily represented litigation costs incurred in connection with certain patent infringement lawsuits.

Previous wording

The provision for credit losses for the three and six months ended June 30, 2025 primarily related to a revised estimate of the payments to be received from an insolvent customer.

Current wording

The provision for credit losses in 2025 primarily related to a revised estimate of the payments to be received from an insolvent customer.

Previous wording

Interest expense, net of interest income, for the three and six months ended June 30, 2026 was $33.2 million and $66.0 million, respectively, compared to $35.1 million and $71.0 million in the same periods in 2025. These decreases were due to lower average outstanding debt balances and interest rates in 2026.

Current wording

Interest expense, net of interest income, for the three and nine months ended September 30, 2026 was $33.4 million and $99.4 million, respectively, compared to $34.5 million and $105.5 million in the same periods in 2025. These decreases were due to lower average outstanding debt balances and interest rates in 2026.

Previous wording

For the three and six months ended June 30, 2025, we recognized other expense, net of $9.7 million and $4.9 million, respectively. These amounts were primarily due to a $10.5 million loss on disposal of EKU Power Drives in the second quarter of 2025, which was partially offset by a decrease in the fair value of our Munger make-whole provision in the first quarter of 2025.

Current wording

For the nine months ended September 30, 2025, we recognized other expense, net of $4.2 million. This amount was primarily due to a $10.5 million loss on disposal of EKU Power Drives in the second quarter of 2025, which was partially offset by a decrease in the fair value of our Munger make-whole provision in the first quarter of 2025.

Previous wording

Income taxes expense was $5.2 million and $4.7 million for the six months ended June 30, 2026 and 2025, respectively. Our effective tax rate for the six months ended June 30, 2026 was negative 3.5%, compared with negative 4.0% in the same period in 2025.

Current wording

Income tax expense was $8.2 million and income tax benefit was $15.5 million for the nine months ended September 30, 2026 and 2025, respectively. Our effective tax rate for the nine months ended September 30, 2026 was negative 3.7%, compared with positive 6.7% in the same period in 2025.

Previous wording

For the six months ended June 30, 2026, the difference between our effective tax rate and the federal statutory rate related to changes in the valuation allowance on our net deferred tax assets.

Current wording

For the nine months ended September 30, 2026, the difference between our effective tax rate and the federal statutory rate related to changes in the valuation allowance on our net deferred tax assets.

Previous wording

For the six months ended June 30, 2025, our income tax provision included a discrete expense of approximately $4 million related to a book-tax difference on the sale of certain gas conditioning equipment to Flotek. Excluding this discrete item, the difference between our effective tax rate and the federal statutory rate related to changes in the valuation allowance on our net deferred tax assets.

Current wording

For the nine months ended September 30, 2025, our income tax provision included a discrete benefit of approximately $12 million from a reduction in Flotek's valuation allowance. Excluding this discrete item, the difference between our effective tax rate and the federal statutory rate related to a permanent book-tax difference on the sale of certain gas conditioning equipment to Flotek and changes in the valuation allowance on our net deferred tax assets.

Previous wording

Historically, our primary sources of liquidity are cash flows from operations and availability under our revolving credit facility. In the three months ended March 31, 2026, we issued $25.0 million of 2029 Senior Notes. While Flotek is included in our unaudited condensed consolidated financial statements, we do not have the ability to access or use Flotek’s cash or liquidity in our operations and, accordingly, have excluded Flotek’s cash and other sources of liquidity from the following discussion of our liquidity and capital resources. See "Note 1. Organization and Description of Business" in the notes to our unaudited condensed consolidated financial statements for discussion of our ownership of Flotek.

Current wording

While Flotek is included in our unaudited condensed consolidated financial statements, we do not have the ability to access or use Flotek’s cash or liquidity in our operations and, accordingly, have excluded Flotek’s cash and other sources of liquidity from the following discussion of our liquidity and capital resources. See "Note 1. Organization and Description of Business" in the notes to our unaudited condensed consolidated financial statements for discussion of our ownership of Flotek.

Previous wording

Our Alpine 2023 Term Loan requires us to segregate collateral associated with Alpine and limits our ability to use Alpine's cash or assets to satisfy our obligations or the obligations of our other subsidiaries. We have limited ability to provide Alpine with liquidity to satisfy its obligations. Refer to our Annual Report and "Note 4. Debt" in the notes to our unaudited condensed consolidated financial statements for more information regarding the Alpine 2023 Term Loan.

Current wording

Our Alpine 2023 Term Loan requires us to segregate collateral associated with Alpine and limits our ability to use Alpine's cash or assets to satisfy our obligations or the obligations of our other subsidiaries. We have limited ability to provide Alpine with liquidity to satisfy its obligations. Under the Alpine Term Loan September 2026 Amendment, Alpine may elect to pay a portion of its interest in kind through August 2027, scheduled amortization payments were eliminated for the quarters ending

Previous wording

At June 30, 2026, we had $14.4 million of cash and cash equivalents, excluding Flotek, and $57.6 million available for borrowings under our previous revolving credit facility, which resulted in a total liquidity position of $72.0 million. On July 1, 2026, we entered into a new revolving credit facility. See “Note 14. Subsequent Events” in the notes to our unaudited condensed consolidated financial statements for more information regarding our new revolving credit facility. At July 1, 2026, we had $70.6 million available for borrowings under our new revolving credit facility.

Current wording

On July 1, 2026, we entered into a new credit agreement with Eclipse Business Capital LLC, as agent, collateral agent, swingline lender, lead arranger and bookrunner, providing for a $300 million asset-based revolving credit facility, which refinanced and replaced our 2022 ABL Credit Facility. See “Note 4. Debt” in the notes to our unaudited condensed consolidated financial statements for more information regarding our new revolving credit facility. At September 30, 2026, we had $18.6 million of cash and cash equivalents, excluding Flotek, and $78.7 million available for borrowings under our revolving credit facility, which resulted in a total liquidity position of $97.3 million.

Previous wording

We believe that our cash and cash equivalents, cash provided by operations, and the availability under our new revolving credit facility will be sufficient to fund our capital expenditures, satisfy our obligations, and remain in compliance with our existing debt covenants for at least the next 12 months. The market for our services is cyclical and if our customers unexpectedly reduce activity levels or the pricing of our products and services unexpectedly declines, we may need to take action to improve our liquidity, which may include selling assets or seeking additional sources of capital. There can be no assurance that any such additional liquidity enhancements will be available, or if available, that they will be on terms acceptable to us or our stakeholders. In addition, Alpine is closely monitoring its forthcoming debt covenant compliance obligation that commences in the fiscal quarter ending March 31, 2028. While there can be no assurance, Alpine believes that it will be able to meet, modify, or further defer this debt covenant. See “Note 4. Debt” in the notes to our unaudited condensed consolidated financial statements for more information about this forthcoming debt covenant.

Current wording

The market for our services is cyclical, and if our customers unexpectedly reduce activity levels, the improvement in activity we currently expect beginning in the second quarter of 2027 is delayed, or the pricing of our products and services unexpectedly declines, we may need to take additional actions to improve our liquidity, which may include reducing capital expenditures, selling additional assets or seeking additional sources of capital. There can be no assurance that any such additional liquidity enhancements will be available, or if available, that they will be on terms acceptable to us or our stakeholders.

Previous wording

Operating Activities. Net cash provided by operating activities was $32.2 million and $135.4 million for the six months ended June 30, 2026 and 2025, respectively. Cash flows from operating activities consist of net income or loss adjusted for non-cash items and changes in net working capital. Net income or loss adjusted for non-cash items for the six months ended June 30, 2026 resulted in a cash increase of $54.9 million compared with a cash increase of $116.8 million in the same period of 2025. This change was primarily due to lower earnings in 2026. Changes in net working capital for the six months ended June 30, 2026 resulted in a cash decrease of $22.7 million compared with a cash increase of $18.6 million in the same period in 2025.

Current wording

Operating Activities. Net cash provided by operating activities was $83.3 million and $140.0 million for the nine months ended September 30, 2026 and 2025, respectively. Cash flows from operating activities consist of net income or loss adjusted for non-cash items and changes in net working capital. Net income or loss adjusted for non-cash items for the nine months ended September 30, 2026 resulted in a cash increase of $88.6 million compared with a cash increase of $124.5 million in the same period of 2025. This change was primarily due to lower earnings in 2026. Changes in net working capital for the nine months ended September 30, 2026 resulted in a cash decrease of $5.3 million compared with a cash increase of $15.5 million in the same period in 2025.

Previous wording

Investing Activities. Net cash used in investing activities was $65.3 million and $94.2 million for the six months ended June 30, 2026 and 2025, respectively. This change was primarily due to decreased capital expenditures in 2026.

Current wording

Investing Activities. Net cash used in investing activities was $102.9 million and $128.0 million for the nine months ended September 30, 2026 and 2025, respectively. This change was primarily due to decreased capital expenditures in 2026.

Previous wording

As of June 30, 2026 we have $1,102.4 million in aggregate principal amount of long-term debt outstanding, with $165.3 million coming due over the next twelve months. For additional information about our long-term debt, see "Note 4. Debt" in the notes to our unaudited condensed consolidated financial statements and Item 8 "Financial Statements and Supplementary Data" in our Annual Report.

Current wording

As of September 30, 2026 we had $1,051.1 million in aggregate principal amount of long-term debt outstanding, with $112.9 million due over the next twelve months. In September 2026, we amended the Alpine 2023 Term Loan to extend its maturity to February 2030 and defer the timing of required principal repayments. See “Note 4. Debt” in the notes to our unaudited condensed consolidated financial statements for more information regarding the amendment to the Alpine 2023 Term Loan. For additional information about our long-term debt, see "Note 4. Debt" in the notes to our unaudited condensed consolidated financial statements and Item 8 "Financial Statements and Supplementary Data" in our Annual Report.

Previous wording

During the six months ended June 30, 2026 our capital expenditures were $72.4 million, consisting of maintenance capital expenditures for our hydraulic fracturing fleet, upgrades to legacy pumps, expenditures to maintain efficient operations at our sand mines, and investments in next generation technology.

Current wording

During the nine months ended September 30, 2026 our capital expenditures were $112.1 million, consisting of maintenance capital expenditures for our hydraulic fracturing fleet, upgrades to legacy pumps, expenditures to maintain efficient operations at our sand mines, and investments in next generation technology.

Previous wording

For the full year of 2026, we estimate capital expenditures will range from $100 million to $120 million in maintenance related expenditures and an additional $55 million to $65 million for growth initiatives. Growth initiatives in 2026 relate to upgrades to our hydraulic fracturing fleet, investments in next generation technology and sand mine improvements.

Current wording

For the full year of 2026, we estimate capital expenditures will range from $160 million to $180 million, which includes upgrades to our hydraulic fracturing fleet, investments in next generation technology and sand mine improvements.

Previous wording

As of June 30, 2026, we had purchase commitments of $0.9 million in 2026, $1.6 million in 2027, $1.6 million in 2028, and $0.3 million in 2029.

Current wording

As of September 30, 2026, we had purchase commitments of $0.4 million in 2026, $1.4 million in 2027, $1.3 million in 2028, and $0.3 million in 2029.

Previous wording

As of June 30, 2026 we have $86.7 million of estimated tax receivable agreement obligations, with an estimated $4.7 million coming due over the next twelve months. This obligation will generally be paid under the tax receivable agreement as the Company realizes actual cash tax savings from the tax benefits covered by the tax receivable agreement in future tax years. We do not expect a significant increase in the estimate of this liability in future periods. For additional information about our tax receivable agreement, please see Item 8 "Financial Statements and Supplementary Data" in our Annual Report.

Current wording

As of September 30, 2026 we have $86.7 million of estimated tax receivable agreement obligations, with an estimated $4.8 million coming due over the next twelve months. This obligation will generally be paid under the tax receivable agreement as the Company realizes actual cash tax savings from the tax benefits covered by the tax receivable agreement in future tax years. We do not expect a significant increase in the estimate of this liability in future periods. For additional information about our tax receivable agreement, please see Item 8 "Financial Statements and Supplementary Data" in our Annual Report.