Ranger Energy Services, Inc.

Previous wording

•Processing Solutions and Ancillary Services. Provides complimentary services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services primarily include equipment rentals, coil tubing, plug and abandonment, and processing solutions.

Current wording

•Processing Solutions and Ancillary Services. Provides complementary services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services primarily include equipment rentals, coil tubing, plug and abandonment, and processing solutions.

Previous wording

•Other. Other represents costs not allocable to the reporting segments and includes corporate general and administrative expense and depreciation of corporate furniture and fixtures, amortization, impairments, debt retirements and other items similar in nature.

Current wording

•Other. Other represents costs not allocable to the reporting segments and includes corporate general and administrative expense and depreciation of corporate furniture and fixtures, amortization, impairments and other items similar in nature.

Previous wording

Despite continued pressure in the broader oilfield services complex in the first half of the year, the Company was able to maintain relatively consistent performance in most service lines and this trend has continued through the second quarter. Our Wireline segment continues to face weakness in demand as completions activity declines and competition increases as a result of these reduced activity levels. The Energy Information Administration notes in their Short Term Energy Outlook published July 8th that “declining oil prices have contributed to U.S. producers slowing their drilling and completion activity this year. As a result, we forecast U.S. crude oil production will decline from an all-time high of just over 13.4 million barrels per day in the second quarter of 2025 to less than 13.3 million barrels per day by fourth quarter 2026.” Declining crude oil prices and their impacts to production levels are being closely monitored by the Company to mitigate their impacts on our financial performance.

Current wording

Market conditions across the oilfield services sector remained mixed during the third quarter of 2025. Our Wireline segment continues to face weakness in demand as completions activity declines and competition increases as a result of these reduced activity levels. The Energy Information Administration (“EIA”) notes in their Short Term Energy Outlook published in October that crude prices are expected to fall to approximately $62 per barrel in Q4 2025 and further toward $52 per barrel in 2026 as global supply growth outpaces demand and oil inventories build. The EIA also revised its 2025 forecast upward for U.S. crude production to 13.5 million barrels per day, reflecting stronger output in mid-2025. OPEC+ has signaled incremental production increases, including a 137,000 barrels per day raise beginning November 2025, contributing additional downward price pressure. Declining crude oil prices and their impacts to production levels are being closely monitored by the Company to mitigate their impacts on our financial performance.

Previous wording

The Company believes current geopolitical events will continue to have an impact on our industry, including the impact of the current administration’s ongoing tariff policies on broader macroeconomic growth and associated energy demand. We are also monitoring the supply side, particularly in light of OPEC+ recently accelerating the rollback of its voluntary oil production cuts. This development could place additional pressure on global supply-demand balances and, in turn, affect domestic production levels, especially among smaller producers. Considering the rapidly evolving events and the interplay of supply and demand within the oil and gas commodities sector, numerous unknown factors could materially impact our operations. These events have already, and are likely to continue, influencing commodity prices, causing volatility that could have a material effect on our earnings, cash flows, and financial condition.

Current wording

The Company believes current geopolitical events will continue to have an impact on our industry, including the impact of the current administration’s ongoing tariff policies on broader macroeconomic growth and associated energy demand. We are also monitoring the supply side, particularly in light of OPEC+’s acceleration of production increases and the broader rollback of output cuts earlier in 2025. These developments could place additional pressure on global supply-demand balances and, in turn, affect domestic production levels, especially among smaller producers. Considering the rapidly evolving events and the interplay of supply and demand within the oil and gas sector, numerous factors could materially impact our operations. These events have already, and are likely to continue, influencing commodity prices, causing volatility that could have a material effect on our earnings, cash flows, and financial condition.

Previous wording

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance. The CODM primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity‑based compensation, acquisition‑related costs, severance and reorganization costs, loss on debt retirement, gain or loss on disposal of property and equipment, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, and certain other non‑cash and certain other items that we do not view as indicative of our ongoing performance. See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Current wording

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance. The CODM primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity‑based compensation, acquisition‑related costs, severance and reorganization costs, gain or loss on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, inventory adjustment, and certain other non‑cash and certain other items that we do not view as indicative of our ongoing performance. See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Previous wording

Revenue. Revenue for the three months ended June 30, 2025 increased $2.5 million, or 2%, to $140.6 million from $138.1 million for the three months ended June 30, 2024. The change in revenue by segment was as follows:

Current wording

Revenue. Revenue for the three months ended September 30, 2025 decreased $24.1 million, or 16%, to $128.9 million from $153.0 million for the three months ended September 30, 2024. The change in revenue by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rigs revenue for the three months ended June 30, 2025 increased $3.6 million, or 4%, to $86.3 million from $82.7 million for the three months ended June 30, 2024. The revenue increase is attributable to slightly improved pricing and the average revenue per rig hour increasing 1% to $738 for the three months ended June 30, 2025 from $732 for the three months ended June 30, 2024 due to the build out of complete rig packages with additional equipment, coupled by a corresponding increase in total rig hours to 117,000 hours for the three months ended June 30, 2025 from 113,100 hours reported for three months ended June 30, 2024.

Current wording

High Specification Rigs. High Specification Rigs revenue for the three months ended September 30, 2025 decreased $5.8 million, or 7%, to $80.9 million from $86.7 million for the three months ended September 30, 2024. The revenue decrease is attributable to slightly decreased pricing and the average revenue per rig hour decreasing 2% to $727 for the three months ended September 30, 2025 from $741 for the three months ended September 30, 2024, coupled by a corresponding decrease in total rig hours to 111,200 hours for the three months ended September 30, 2025 from 116,900 hours reported for three months ended September 30, 2024.

Previous wording

Wireline Services. Wireline Services revenue for the three months ended June 30, 2025 decreased $2.4 million, or 10%, to $22.1 million from $24.5 million for the three months ended June 30, 2024. The decreased revenue was primarily attributable to a decrease in production and pump down services revenue by $2.2 million and $1.9 million, respectively. This is offset by an increase in completion services revenue of $1.7 million where there was a 47% increase in completed stage counts to 2,500 for the three months ended June 30, 2025 from 1,700 for the three months ended June 30, 2024.

Current wording

Wireline Services. Wireline Services revenue for the three months ended September 30, 2025 decreased $13.1 million, or 43%, to $17.2 million from $30.3 million for the three months ended September 30, 2024. The decreased revenue was primarily attributable to a decrease in demand as completion services revenue decreased by $4.0 million, where there was a 28% decrease in completed stage counts to 1,800 for the three months ended September 30, 2025 from 2,500 for the three months ended September 30, 2024. This is coupled by a decrease in production and pump down services revenue by $5.1 million and $4.0 million, respectively.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended June 30, 2025 increased $1.3 million, or 4%, to $32.2 million from $30.9 million for the three months ended June 30, 2024. The increase in revenue is primarily attributable to increases in revenue within rentals and coil tubing by $2.9 million and $2.0 million, respectively. Our Torrent gas processing business has continued to grow resulting in revenues of $4.2 million for the three months ended June 30, 2025, compared to $1.6 million in the three months ended June 30, 2024, an increase of $2.6 million. This was offset by a decrease in plugging and abandonment services by $2.6 million, as operators scaled back non-essential spending in response to lower crude prices and completed in flight programs.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended September 30, 2025 decreased $5.2 million, or 14%, to $30.8 million from $36.0 million for the three months ended September 30, 2024. The decrease in revenue is primarily attributable to decreases in revenue within coil tubing, snubbing, and logistics services by $2.7 million, $0.7 million, and $0.6 million, respectively. This was coupled by a decrease in plugging and abandonment services by $2.1 million, as operators scaled back non-essential spending in response to lower crude prices and completed in flight programs. Our Torrent gas processing business has continued to grow resulting in revenues of $3.2 million for the three months ended September 30, 2025, compared to $2.5 million in the three months ended September 30, 2024, an increase of $0.7 million.

Previous wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the six months ended June 30, 2025 decreased $3.6 million, or 2%, to $230.4 million from $234.0 million for the six months ended June 30, 2024. As a percentage of revenue, cost of services was 84% and 85% for the six months ended June 30, 2025 and 2024, respectively. The change in cost of services by segment was as follows:

Current wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended September 30, 2025 decreased $12.9 million, or 11%, to $109.1 million from $122.0 million for the three months ended September 30, 2024. As a percentage of revenue, cost of services was 85% and 84% for the three months ended September 30, 2025 and 2024, respectively. The change in cost of services by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rigs cost of services for the three months ended June 30, 2025 increased $3.4 million, or 5%, to $68.7 million from $65.3 million for the three months ended June 30, 2024. The increase was primarily attributable to an increase in variable expenses, notably employee-related labor costs, repair and maintenance costs, and travel costs of $2.2 million, $1.1 million and $0.6 million, respectively. As a percentage of High Specification Rigs revenue, cost of services was 80% for the three months ended June 30, 2025, an increase from 79% for the three months ended June 30, 2024.

Current wording

High Specification Rigs. High Specification Rigs cost of services for the three months ended September 30, 2025 decreased $2.0 million, or 3%, to $65.2 million from $67.2 million for the three months ended September 30, 2024. The decrease was primarily attributable to a decrease in variable expenses, notably employee-related labor costs and fuel costs of $1.7 million and $0.5 million, respectively. As a percentage of High Specification Rigs revenue, cost of services was 81% for the three months ended September 30, 2025, an increase from 78% for the three months ended September 30, 2024.

Previous wording

Wireline Services. Wireline Services cost of services for the three months ended June 30, 2025 decreased $3.5 million, or 14%, to $20.7 million from $24.2 million for the three months ended June 30, 2024. The decrease in wireline services cost of sales was primarily attributable to reductions in production and pump down services costs of $2.2 million and $1.9 million, respectively. As a percentage of Wireline Services revenue, cost of services decreased from 99% for the three months ended June 30, 2024 to 94% for the three months ended June 30, 2025 primarily due to declining operating leverage from lower activity levels.

Current wording

Wireline Services. Wireline Services cost of services for the three months ended September 30, 2025 decreased $9.0 million, or 33%, to $18.6 million from $27.6 million for the three months ended September 30, 2024. The decrease in wireline services cost of sales was primarily attributable to reductions in production, pump down, and completion services costs of $3.9 million, $2.6 million, and $2.5 million respectively. As a percentage of Wireline Services revenue, cost of services increased from 91% for the three months ended September 30, 2024 to 108% for the three months ended September 30, 2025 primarily due to declining operating leverage from lower activity levels. In addition, cost of services for the three months ended September 30, 2025 includes approximately $1.6 million of inventory adjustments identified during a comprehensive physical count and obsolescence review. The impact of these inventory adjustments is non-recurring in nature.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended June 30, 2025 increased $1.9 million, or 8%, to $25.6 million from $23.7 million for the three months ended June 30, 2024. The increase was primarily attributable to increased employee-related labor costs and maintenance and repair costs which accounted for $0.8 million and $0.9 million, respectively. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services increased from 77% for the three months ended June 30, 2024 to 80% for the three months ended June 30, 2025.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended September 30, 2025 decreased $1.9 million, or 7%, to $25.3 million from $27.2 million for the three months ended September 30, 2024. The decrease was primarily attributable to decreased fuel costs, employee-related labor costs, and travel costs which accounted for $0.8 million, $0.4 million, and $0.4 million, respectively. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services increased from 76% for the three months ended September 30, 2024 to 82% for the three months ended September 30, 2025.

Previous wording

Depreciation and Amortization. Depreciation and amortization remained relatively flat; the three months ended June 30, 2025 decreased $0.1 million, or 1%, to $10.9 million from $11.0 million for the three months ended June 30, 2024.

Current wording

Depreciation and Amortization. Depreciation and amortization remained relatively flat; the three months ended September 30, 2025 decreased $0.1 million, or 1%, to $11.0 million from $11.1 million for the three months ended September 30, 2024.

Previous wording

Interest Expense, net. Interest expense, net decreased from $0.6 million for the three months ended June 30, 2024 to $0.1 million for the three months ended June 30, 2025. The changes in interest expense were attributable to reduced borrowings on the Wells Fargo Revolving Credit Facility and decreased borrowing costs on finance leases.

Current wording

Interest Expense, net. Interest expense, net decreased from $0.7 million for the three months ended September 30, 2024 to $0.4 million for the three months ended September 30, 2025. The changes in interest expense, net was attributable to higher interest income recognized on non-recurring items during 2025.

Previous wording

Income Tax Expense. Income tax expense for the three months ended June 30, 2025 increased $0.8 million, or 40%, to $2.8 million compared to $2.0 million for three months ended June 30, 2024. The increase in tax expense resulted from an increase in profit before tax when compared to the prior period.

Current wording

Income Tax Expense. Income tax expense for the three months ended September 30, 2025 decreased $2.2 million, or 63%, to $1.3 million compared to $3.5 million for three months ended September 30, 2024. The decrease in tax expense resulted from a decrease in profit before tax when compared to the prior period.

Previous wording

Net Income. Net income for the three months ended June 30, 2025 increased $2.6 million, or 55%, to $7.3 million from $4.7 million for the three months ended June 30, 2024. The increase in net income was driven by continued increases in High Specification Rigs and Ancillary Services, partially offset by reduced operating income from activity declines in the Wireline segment.

Current wording

Net Income. Net income for the three months ended September 30, 2025 decreased $7.5 million, or 86%, to $1.2 million from $8.7 million for the three months ended September 30, 2024. The decrease in net income was driven by continued reduced operating income from activity declines in the Wireline segment.

Previous wording

Revenue. Revenue for the six months ended June 30, 2025 remained stable, increasing $0.8 million to $275.8 million from $275.0 million for the six months ended June 30, 2024. The change in revenue by segment was as follows:

Current wording

Revenue. Revenue for the nine months ended September 30, 2025 decreased $23.3 million, or 5%, to $404.7 million from $428.0 million for the nine months ended September 30, 2024. The change in revenue by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rig revenue for the six months ended June 30, 2025 increased $11.4 million, or 7%, to $173.8 million from $162.4 million for the six months ended June 30, 2024. The increase in revenue included an increase in the average revenue per rig hour by 3% to $747 from $725 for the six months ended June 30, 2024, coupled with a 4% increase in total rig hours to 232,700 for the six months ended June 30, 2025 from 224,100 for the six months ended June 30, 2024.

Current wording

High Specification Rigs. High Specification Rig revenue for the nine months ended September 30, 2025 increased $5.6 million, or 2%, to $254.7 million from $249.1 million for the nine months ended September 30, 2024. The increase in revenue included an increase in the average revenue per rig hour by 1% to $741 from $730 for the nine months ended September 30, 2024, coupled with a 1% increase in total rig hours to 343,900 for the nine months ended September 30, 2025 from 341,000 for the nine months ended September 30, 2024.

Previous wording

Wireline Services. Wireline Services revenue for the six months ended June 30, 2025 decreased $18.0 million, or 31%, to $39.3 million from $57.3 million for the six months ended June 30, 2024. The decrease in wireline services revenue was attributable to reductions in the completions service line totaling $9.9 million illustrated by a 24% decrease in completed stage counts to 3,900 for the six months ended June 30, 2025 from 5,100 for the six months ended June 30, 2024. This decrease in completion services revenue and stage count is indicative of lower operational activity reflecting the Company’s decision to pursue only work with appropriate margins. Wireline production associated services and pump down revenues decreased year over year due to the more extreme weather conditions in 2025 and additional competitive dynamics across basins.

Current wording

Wireline Services. Wireline Services revenue for the nine months ended September 30, 2025 decreased $31.1 million, or 36%, to $56.5 million from $87.6 million for the nine months ended September 30, 2024. The decrease in wireline services revenue was attributable to reductions in the completions service line totaling $13.9 million illustrated by a 25% decrease in completed stage counts to 5,700 for the nine months ended September 30, 2025 from 7,600 for the nine months ended September 30, 2024. This decrease in completion services revenue and stage count is indicative of lower operational activity reflecting the Company’s decision to pursue only work with appropriate margins. Wireline production associated services and pump down revenues decreased year over year by $9.2 million and $8.1 million, respectively, due to the more extreme weather conditions in 2025 and additional competitive dynamics across basins.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the six months ended June 30, 2025 increased $7.4 million, or 13%, to $62.7 million from $55.3 million for the six months ended June 30, 2024. The increase in processing solutions and ancillary services revenue is attributable to increasing activity in our rentals and coil tubing service lines of $6.3 million and $4.4 million, respectively. Our Torrent gas processing business has continued to grow resulting in revenues of $8.2 million for the six months ended June 30, 2025, compared to $2.6 million in the six months ended June 30, 2024, an increase of $5.6 million.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the nine months ended September 30, 2025 increased $2.2 million, or 2%, to $93.5 million from $91.3 million for the nine months ended September 30, 2024. The increase in processing solutions and ancillary services revenue is attributable to increasing activity in our rentals and coil tubing service lines of $7.0 million and $1.7 million, respectively. Our Torrent gas processing business has continued to grow resulting in revenues of $11.4 million for the nine months ended September 30, 2025, compared to $5.1 million in the nine months ended September 30, 2024, an increase of $6.3 million. This was offset by a decrease in plugging and abandonment services by $4.3 million, as operators scaled back non-essential spending in response to lower crude prices and completed in flight programs.

Previous wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended June 30, 2025 increased $1.8 million, or 2%, to $115.0 million from $113.2 million for the three months ended June 30, 2024. As a percentage of revenue, cost of services was 82% for both the three months ended June 30, 2025 and 2024. The change in cost of services by segment was as follows:

Current wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the nine months ended September 30, 2025 decreased $16.5 million, or 5%, to $339.5 million from $356.0 million for the nine months ended September 30, 2024. As a percentage of revenue, cost of services was 84% and 83% for the nine months ended September 30, 2025 and 2024, respectively. The change in cost of services by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rig cost of services for the six months ended June 30, 2025 increased $7.2 million, or 5%, to $138.8 million from $131.6 million for the six months ended June 30, 2024. The increase was primarily attributable to an increase in variable expenses, most significant of which is employee-related labor costs, repair and maintenance, and travel accounting for $4.2 million, $1.6 million and $1.1 million, respectively. As a percentage of High Specification Rigs Services revenue, cost of services decreased from 81% for the six months ended June 30, 2024 to 80% for the six months ended June 30, 2025.

Current wording

High Specification Rigs. High Specification Rig cost of services for the nine months ended September 30, 2025 increased $5.2 million, or 3%, to $204.0 million from $198.8 million for the nine months ended September 30, 2024. The increase was primarily attributable to an increase in variable expenses, most significant of which is employee-related labor costs, repair and maintenance, and travel accounting for $2.6 million, $1.7 million and $1.0 million, respectively. As a percentage of High Specification Rigs Services revenue, cost of services remained stable at 80% for both the nine months ended September 30, 2024 and the nine months ended September 30, 2025.

Previous wording

Wireline Services. Wireline Services cost of services for the six months ended June 30, 2025 decreased $15.8 million, or 28%, to $41.0 million from $56.8 million for the six months ended June 30, 2024. The decrease is primarily attributable to a decrease in costs from the completion services lines by approximately $10.9 million as the Company reorganized this service line to accommodate lower operation activity and focus on more profitable service lines. As a percentage of Wireline Services revenue, cost of services increased from 99% for the six months ended June 30, 2024 to 104% for the six months ended June 30, 2025 primarily due to declining operating leverage due to lower activity levels.

Current wording

Wireline Services. Wireline Services cost of services for the nine months ended September 30, 2025 decreased $24.8 million, or 29%, to $59.6 million from $84.4 million for the nine months ended September 30, 2024. The decrease is primarily attributable to a decrease in costs from the completion services lines by approximately $13.5 million as the Company reorganized this service line beginning in the second half of the prior year to accommodate lower operation activity and focus on more profitable service lines. As a percentage of Wireline Services revenue, cost of services increased from 96% for the nine months ended September 30, 2024 to 105% for the nine months ended September 30, 2025 primarily due to declining operating leverage due to lower activity levels. In addition, cost of services for the nine months ended September 30, 2025 includes approximately $1.6 million of inventory adjustments identified during a comprehensive physical count and obsolescence review. The impact of these inventory adjustments is non-recurring in nature.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the six months ended June 30, 2025 increased $5.0 million, or 11%, to $50.6 million from $45.6 million for the six months ended June 30, 2024. The increase was primarily attributable to increased employee labor and repair and maintenance which amounted to $1.7 million and $1.5 million, respectively. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services improved from 82% for the six months ended June 30, 2024 to 81% for the six months ended June 30, 2025 due to increased operational efficiencies and service line contribution mix.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the nine months ended September 30, 2025 increased $3.1 million, or 4%, to $75.9 million from $72.8 million for the nine months ended September 30, 2024. The increase was primarily attributable to increased repair and maintenance and employee labor which amounted to $2.2 million and $1.3 million, respectively. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services remained relatively stable from 80% for the nine months ended September 30, 2024 to 81% for the nine months ended September 30, 2025.

Previous wording

Depreciation and Amortization. Depreciation and amortization for the six months ended June 30, 2025 decreased $0.7 million, or 3%, to $21.5 million from $22.2 million for the six months ended June 30, 2024. The decrease was attributable to capital expenditures with longer useful lives added during the latter half of 2024 into 2025.

Current wording

Depreciation and Amortization. Depreciation and amortization for the nine months ended September 30, 2025 decreased $0.8 million, or 2%, to $32.5 million from $33.3 million for the nine months ended September 30, 2024. The decrease was attributable to capital expenditures with longer useful lives added during the latter half of 2024 into 2025.

Previous wording

Interest Expense, net. Interest expense, net for the six months ended June 30, 2025 decreased $0.8 million, or 57%, to $0.6 million from $1.4 million for the six months ended June 30, 2024. The changes in interest expense were attributable to reduced borrowings on the Wells Fargo Revolving Credit Facility and decreased borrowing costs on finance leases.

Current wording

Interest Expense, net. Interest expense, net for the nine months ended September 30, 2025 decreased $1.1 million, or 52%, to $1.0 million from $2.1 million for the nine months ended September 30, 2024. The changes in interest expense, net was attributable to higher interest income recognized on non-recurring items during 2025.

Previous wording

Income Tax Expense. Income tax expense for the six months ended June 30, 2025 increased $1.2 million, or 80%, to $2.7 million from $1.5 million for the six months ended June 30, 2024. The increase in tax expense resulted from an increase in profit before tax when compared to the prior period.

Current wording

Income Tax Expense. Income tax expense for the nine months ended September 30, 2025 decreased $1.0 million, or 20%, to $4.0 million from $5.0 million for the nine months ended September 30, 2024. The decrease in tax expense resulted from a decrease in profit before tax when compared to the prior period.

Previous wording

Net Income. Net income for the six months ended June 30, 2025 increased $4.0 million, or 103%, to $7.9 million from $3.9 million for the six months ended June 30, 2024. The increase in net income was primarily driven by continued increases in High Specification Rigs and Ancillary Services, partially offset by reduced operating income from activity declines in the Wireline segment.

Current wording

Net Income. Net income for the nine months ended September 30, 2025 decreased $3.5 million, or 28%, to $9.1 million from $12.6 million for the nine months ended September 30, 2024. The decrease in net income was primarily driven by continued reduced operating income from activity declines in the Wireline segment.

Previous wording

Adjusted EBITDA is not a financial measure determined in accordance with U.S. GAAP. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, loss on debt retirement, gain or loss on disposal of property and equipment, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

Current wording

Adjusted EBITDA is not a financial measure determined in accordance with U.S. GAAP. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain or loss on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, inventory adjustment, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.

Previous wording

Adjusted EBITDA for the three months ended June 30, 2025 decreased $0.4 million to $20.6 million from $21.0 million for the three months ended June 30, 2024. The change by segment was as follows:

Current wording

Adjusted EBITDA for the three months ended September 30, 2025 decreased $8.3 million to $16.8 million from $25.1 million for the three months ended September 30, 2024. The change by segment was as follows:

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended June 30, 2025 decreased $0.7 million to $6.6 million from $7.3 million for the three months ended June 30, 2024, due to an increase in cost of services of $1.9 million, partially offset by a corresponding increased revenue of $1.3 million.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended September 30, 2025 decreased $3.3 million to $5.5 million from $8.8 million for the three months ended September 30, 2024, due to a decline in revenue of $5.2 million, partially offset by a corresponding decrease in cost of services of $1.9 million.

Previous wording

Other. Other Adjusted EBITDA three months ended June 30, 2025 improved $0.2 million to a loss of $5.2 million from a loss of $5.4 million for the three months ended June 30, 2024. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Current wording

Other. Other Adjusted EBITDA three months ended September 30, 2025 improved $0.8 million to a loss of $4.8 million from a loss of $5.6 million for the three months ended September 30, 2024. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Previous wording

Adjusted EBITDA for the six months ended June 30, 2025 increased $4.2 million to $36.1 million from $31.9 million for the six months ended June 30, 2024. The change by segment was as follows:

Current wording

Adjusted EBITDA for the nine months ended September 30, 2025 decreased $4.1 million to $52.9 million from $57.0 million for the nine months ended September 30, 2024. The change by segment was as follows:

Previous wording

Wireline Services. Wireline Services Adjusted EBITDA for the six months ended June 30, 2025 decreased $1.3 million to a loss of $0.7 million from income of $0.6 million for the six months ended June 30, 2024, primarily due to significant decreases in operating activity within the completions service line year over year.

Current wording

Wireline Services. Wireline Services Adjusted EBITDA for the nine months ended September 30, 2025 decreased $3.6 million to a loss of $0.3 million from $3.3 million for the nine months ended September 30, 2024, primarily due to significant decreases in operating activity within the completions service line year over year.

Previous wording

Other. Other Adjusted EBITDA for the six months ended June 30, 2025 improved $0.4 million to a loss of $10.4 million from a loss of $10.8 million for the six months ended June 30, 2024. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Current wording

Other. Other Adjusted EBITDA for the nine months ended September 30, 2025 improved $1.2 million to a loss of $15.2 million from a loss of $16.4 million for the nine months ended September 30, 2024. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Previous wording

We require capital to fund ongoing operations, including maintenance expenditures on our existing fleet and equipment, organic growth initiatives, investments and acquisitions. Our primary sources of liquidity have historically been cash generated from operations and borrowings under our credit facilities. As of June 30, 2025, we had total liquidity of $120.1 million, consisting of $48.9 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $71.2 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of $3.8 million of Letters of Credit open under the facility. This compares to the Company’s available borrowing capacity under the Wells Fargo Revolving Credit Facility of $58.6 million as of June 30, 2024 and $71.2 million as of December 31, 2024. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements that permit us to manage the cyclicality associated with our business. We currently expect to have sufficient funds to meet the Company’s short and long term liquidity requirements and comply with our covenants of our debt agreements. Based upon current levels of operations and anticipated growth, we expect that cash generated from operations, combined with borrowings under our credit facilities, including our Wells Fargo Revolving Credit Facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future. For further details, see “— Debt Agreements.”

Current wording

We require capital to fund ongoing operations, including maintenance expenditures on our existing fleet and equipment, organic growth initiatives, investments and acquisitions. Our primary sources of liquidity have historically been cash generated from operations and borrowings under our credit facilities. As of September 30, 2025, we had total liquidity of $116.7 million, consisting of $45.2 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $71.5 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of $3.5 million of Letters of Credit open under the facility. This compares to the Company’s available borrowing capacity under the Wells Fargo Revolving Credit Facility of $71.3 million as of September 30, 2024 and $71.2 million as of December 31, 2024. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements that permit us to manage the cyclicality associated with our business. We currently expect to have sufficient funds to meet the Company’s short and long term liquidity requirements and comply with our covenants of our debt agreements. Based upon current levels of operations and anticipated growth, we expect that cash generated from operations, combined with borrowings under our credit facilities, including our Wells Fargo Revolving Credit Facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future. For further details, see “— Debt Agreements.”

Previous wording

Net cash from operating activities decreased $2.8 million to $31.3 million for six months ended June 30, 2025 compared to $34.1 million for the six months ended June 30, 2024. The change was primarily driven by a $10.1 million decrease in cash generated from working capital, which shifted to a cash outflow of $6.1 million for the six months ended June 30, 2025, compared to a cash inflow of $4.0 million for the six months ended June 30, 2024, primarily due to lower collections activity in recent quarters.

Current wording

Net cash from operating activities decreased $6.9 million to $44.9 million for nine months ended September 30, 2025 compared to $51.8 million for the nine months ended September 30, 2024. The change was primarily driven by a $4.4 million decrease in cash generated from working capital, which was a cash outflow of $8.8 million for the nine months ended September 30, 2025, compared to $4.4 million for the nine months ended September 30, 2024, primarily due to lower collections activity in recent quarters.

Previous wording

Net cash used in investing activities decreased $8.7 million to $11.6 million for six months ended June 30, 2025 compared to $20.3 million for the six months ended June 30, 2024. The change in cash flows from investing activities is largely attributable to decreases in fixed asset additions and more proceeds from asset disposals relative to those that occurred during the six months ended June 30, 2024.

Current wording

Net cash used in investing activities decreased $9.7 million to $17.5 million for nine months ended September 30, 2025 compared to $27.2 million for the nine months ended September 30, 2024. The change in cash flows from investing activities is largely attributable to decreases in fixed asset additions relative to those that occurred during the nine months ended September 30, 2024.

Previous wording

Net cash used in financing activities decreased $9.1 million to $11.7 million for six months ended June 30, 2025 compared to $20.8 million for the six months ended June 30, 2024. In the first half of 2024, the Company repurchased $13.8 million of the Company’s Class A Common Stock on the open market, relative to $3.3 million for the first half of 2025. (see Item 1. Financial Information— Note 10 — Equity).

Current wording

Net cash used in financing activities decreased $2.4 million to $23.1 million for nine months ended September 30, 2025 compared to $25.5 million for the nine months ended September 30, 2024. In 2024, the Company repurchased $15.5 million of the Company’s Class A Common Stock on the open market, relative to $11.5 million for 2025. (see Item 1. Financial Information— Note 11 — Equity).