Ranger Energy Services, Inc.

Previous wording

Market conditions across the oilfield services sector were mixed during the second quarter of 2026. Geopolitical developments and disruptions to global oil supply contributed to elevated commodity prices and continued market volatility. The Company expects customer activity to continue to be shaped primarily by operators’ longer-term capital discipline, basin-level economics and production priorities rather than short-term commodity price movements alone. Our production-oriented service lines continue to support relative resilience in our core business. Although elevated commodity prices and potential supply constraints may support customer activity in the near term, the timing and extent of any corresponding changes in customer spending in the mid to longer term is unclear. The longer global oil and gas supply chain disruptions persist, there is an increased likelihood of supply shortages which could drive up commodity prices further. Elevated prices may cause ultimate demand weakening which would have the potential to affect North American oil and gas activity.

Current wording

Market conditions across the oilfield services sector were mixed during the third quarter of 2026. Geopolitical developments and disruptions to global oil supply continued to contribute to elevated commodity prices and market volatility. The Company expects customer activity to continue to be shaped primarily by operators’ longer-term capital discipline, basin-level economics and production priorities rather than short-term commodity price movements alone. The Company’s production-oriented service lines continue to support relative resilience in its core business.

Previous wording

The Company continues to monitor macroeconomic and industry developments that may affect demand for its services. During the second quarter of 2026, the West Texas Intermediate (“WTI”) crude oil spot price averaged approximately $96 per barrel, compared to approximately $72 per barrel during the first quarter of 2026 and approximately $65 per barrel during the second quarter of 2025. For the six months ended June 30, 2026, the WTI crude oil spot price averaged approximately $84 per barrel, compared to approximately $68 per barrel during the same period in 2025. The U.S. Energy Information Administration (“EIA”) noted in its July 2026 Short-Term Energy Outlook that WTI crude oil prices are expected to average approximately

Current wording

The Company continues to monitor macroeconomic and industry developments that may affect demand for its services. During the third quarter of 2026, the West Texas Intermediate (“WTI”) crude oil spot price averaged approximately $87 per barrel, compared to approximately $96 per barrel during the second quarter of 2026 and approximately $66 per barrel during the third quarter of 2025. For the nine months ended September 30, 2026, the WTI crude oil spot price averaged approximately $85 per barrel, compared to approximately $67 per barrel during the same period in 2025. The U.S. Energy Information Administration (“EIA”) noted in its October 2026 Short-Term Energy Outlook that WTI crude oil prices are expected to average approximately $97 per barrel during the fourth quarter of 2026 before declining during 2027, averaging approximately $80 per barrel for the year and approximately $70 per barrel during the fourth quarter of 2027. The EIA also forecast U.S. crude oil production to average approximately 13.9 million barrels per day in 2026.

Previous wording

Although commodity prices have been impacted by recent disruptions in the Middle East, the Company believes customers will continue to prioritize efficient production from existing wells and disciplined development activity. As a provider of production- and completion-oriented well services with solely domestic operations, we believe our service offering is positioned to benefit from customer demand tied to maintaining and enhancing production. However, reductions in customer capital spending, weakening oil demand, sustained cost inflation or increased competitive pricing pressures could adversely affect utilization, pricing and financial results, particularly in service lines more directly exposed to discretionary completions activity.

Current wording

Although commodity prices have been affected by disruptions in the Middle East, the Company believes customers will continue to prioritize efficient production from existing wells and disciplined development activity. As a provider of production- and completion-oriented well services with solely domestic operations, the Company believes its service offerings are positioned to benefit from customer demand associated with maintaining and enhancing production. However, reductions in customer capital spending, weakening oil demand, sustained cost inflation or increased competitive pricing pressures could adversely affect utilization, pricing and financial results, particularly in service lines more directly exposed to discretionary completions activity.

Previous wording

Following the acquisition of AWS in November 2025, the Company has a larger presence in the Permian Basin and an operating footprint more heavily concentrated in this basin than in prior operating periods. AWS complements the Company’s existing service offerings and contributed to the Company’s financial results during the first half of 2026. During the remainder of the year, the Company remains focused on continuing to realize the expected benefits of the acquisition, maintaining service quality for customers and preserving liquidity and balance sheet flexibility.

Current wording

Following the AWS Acquisition in November 2025, the Company has a larger presence in the Permian Basin and an operating footprint more heavily concentrated in this basin than in prior operating periods. AWS complements the Company’s existing service offerings and contributed to the Company’s financial results during the first nine months of 2026. During the remainder of the year, the Company remains focused on continuing to realize the expected benefits of the AWS Acquisition, maintaining service quality for customers and preserving liquidity and balance sheet flexibility.

Previous wording

The Company also continues to monitor longer-term trends that may influence demand for its services, including ongoing regulatory focus on emissions and flaring, the pace of natural gas infrastructure development and data center power demands and also changing customer demand for field-level gas processing solutions. While the Company’s direct exposure to natural gas markets is more limited than its exposure to crude oil markets, these factors could provide incremental support for certain of the Company’s service offerings.

Current wording

The Company also continues to monitor longer-term trends that may influence demand for its services, including evolving regulatory requirements and policies related to emissions and flaring, the pace of natural gas infrastructure development, increasing power demand associated with data center development, and changing customer demand for field-level gas processing solutions. While the Company’s direct exposure to natural gas markets is more limited than its exposure to crude oil markets, these factors could provide incremental support for certain of the Company’s service offerings.

Previous wording

General & Administrative. General and administrative expenses are corporate in nature and are included within Other. These costs include the majority of centrally-located company management and administrative personnel and are not attributable to any of our lines of business or reporting segments.

Current wording

General and Administrative. General and administrative expenses are corporate in nature and are included within Other. These costs include the majority of centrally-located company management and administrative personnel and are not attributable to any of our lines of business or reporting segments.

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, gain on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, adjustment to contingent consideration, 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, adjustment to contingent consideration, contract liability revenue recognition, 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, 2026 increased $35.9 million, or 26%, to $176.5 million from $140.6 million for the three months ended June 30, 2025. The change in revenue by segment was as follows:

Current wording

Revenue. Revenue for the three months ended September 30, 2026 increased $33.9 million, or 26%, to $162.8 million from $128.9 million for the three months ended September 30, 2025. 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, 2026 increased $27.1 million, or 31%, to $113.4 million from $86.3 million for the three months ended June 30, 2025. The increase in revenue reflects revenue growth of $30.3 million related to the AWS Acquisition and included a corresponding increase in total rig hours to 146,800 hours for the three months ended June 30, 2026 from 117,000 hours reported for the three months ended June 30, 2025. Hourly rig rates increased to $772 per hour for the three months ended June 30, 2026 from $738 per hour for the three months ended June 30, 2025, largely reflecting the pass through of fuel surcharges as well as certain changes in asset and regional revenue mix.

Current wording

High Specification Rigs. High Specification Rigs revenue for the three months ended September 30, 2026 increased $29.6 million, or 37%, to $110.5 million from $80.9 million for the three months ended September 30, 2025. The increase in revenue reflects revenue growth of $30.9 million related to the AWS Acquisition and included a corresponding increase in total rig hours to 143,500 hours for the three months ended September 30, 2026 from 111,200 hours reported for the three months ended September 30, 2025. Hourly rig rates increased to $770 per hour for the three months ended September 30, 2026 from $727 per hour for the three months ended September 30, 2025, largely reflecting the pass through of fuel surcharges as well as certain changes in asset and regional revenue mix.

Previous wording

Wireline Services. Wireline Services revenue for the three months ended June 30, 2026 decreased $3.5 million, or 16%, to $18.6 million from $22.1 million for the three months ended June 30, 2025. The decreased revenue was primarily attributable to a $2.4 million decrease in production services revenue and a $1.5 million decrease in completion services revenue, partially offset by a $0.4 million increase in pump down services revenue. Completion services revenue decreased despite a 2% increase in completed stage counts to 2,560 for the three months ended June 30, 2026 from 2,500 for the three months ended June 30, 2025, primarily reflecting a change in customer and job mix.

Current wording

Wireline Services. Wireline Services revenue for the three months ended September 30, 2026 decreased $4.9 million, or 28%, to $12.3 million from $17.2 million for the three months ended September 30, 2025. The decreased revenue was primarily attributable to a $4.4 million decrease in completion services revenue where there was a 61% decrease in completed stage counts to 700 for the three months ended September 30, 2026 from 1,800 for the three months ended September 30, 2025, primarily reflecting a change in customer and job mix. Additionally, production services revenue decreased $1.1 million, partially offset by a $0.7 million increase in pump down services revenue.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended June 30, 2026 increased $12.3 million, or 38%, to $44.5 million from $32.2 million for the three months ended June 30, 2025. The increase reflects higher activity in other Ancillary Services lines with revenue growth of $9.5 million related to the AWS Acquisition and increases also within primarily the plugging and abandonment and Torrent legacy service lines.

Current wording

September 30, 2025. The increase reflects higher activity in other Ancillary Services lines with revenue growth of $7.9 million related to the AWS Acquisition and increases also within primarily the plugging and abandonment and Torrent legacy service lines.

Previous wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended June 30, 2026 increased $27.7 million, or 24%, to $142.7 million from $115.0 million for the three months ended June 30, 2025. As a percentage of revenue, cost of services was 81% and 82% for the three months ended June 30, 2026 and 2025, 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, 2026 increased $28.9 million, or 26%, to $138.0 million from $109.1 million for the three months ended September 30, 2025. As a percentage of revenue, cost of services was 85% for both the three months ended September 30, 2026 and 2025. The change in cost of services by segment was as follows:

Previous wording

Wireline Services. Wireline Services cost of services for the three months ended June 30, 2026 decreased $5.5 million, or 27%, to $15.2 million from $20.7 million for the three months ended June 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $2.4 million as the Company reorganized this service line in response to lower operating activity. Additionally, costs decreased within production and pump down services by $2.2 million and $0.9 million, respectively. As a percentage of Wireline Services revenue, cost of services decreased from 94% for the three months ended June 30, 2025 to 82% for the three months ended June 30, 2026. These cost reductions reflect the Company’s efforts to align the Wireline Services cost structure with current activity levels, which contributed to improved profitability despite continued pressure on revenue.

Current wording

Wireline Services. Wireline Services cost of services for the three months ended September 30, 2026 decreased $6.5 million, or 35%, to $12.1 million from $18.6 million for the three months ended September 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $4.6 million as the Company reorganized this service line in response to lower operating activity. Additionally, costs decreased within production and pump down services by $1.5 million and $0.4 million, respectively. As a percentage of Wireline Services revenue, cost of services decreased from 108% for the three months ended September 30, 2025 to 98% for the three months ended September 30, 2026. These cost reductions reflect the Company’s efforts to align the Wireline Services cost structure with current activity levels, which contributed to improved profitability despite continued pressure on revenue.

Previous wording

General & Administrative. General and administrative expenses for the three months ended June 30, 2026 increased $0.6 million, or 9%, to $7.6 million from $7.0 million for the three months ended June 30, 2025. This increase was due to increased employee labor and other costs related to the AWS Acquisition.

Current wording

General and Administrative. General and administrative expenses for the three months ended September 30, 2026 increased $1.1 million, or 17%, to $7.7 million from $6.6 million for the three months ended September 30, 2025. This increase was due to increased employee labor costs and professional fees.

Previous wording

Depreciation and Amortization. Depreciation and amortization for the three months ended June 30, 2026 increased $4.7 million, or 43%, to $15.6 million from $10.9 million for the three months ended June 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.

Current wording

Depreciation and Amortization. Depreciation and amortization for the three months ended September 30, 2026 increased $3.9 million, or 35%, to $14.9 million from $11.0 million for the three months ended September 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.

Previous wording

Interest Expense, net. Interest expense, net for the three months ended June 30, 2026 increased $1.0 million, or 1000%, to $1.1 million from $0.1 million for the three months ended June 30, 2025. The increase to net interest expense was attributable to the increased principal balance on our Wells Fargo Revolving Credit Facility.

Current wording

Interest Expense, net. Interest expense, net for the three months ended September 30, 2026 increased $0.3 million, or 75%, to $0.7 million from $0.4 million for the three months ended September 30, 2025. The increase in interest expense, net was primarily due to higher non-recurring interest income recognized during 2025 and the increased principal balance under our Wells Fargo Revolving Credit Facility.

Previous wording

Income Tax Expense. Income tax expense for the three months ended June 30, 2026 increased $0.6 million, or 21%, to $3.4 million compared to $2.8 million for the three months ended June 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.

Current wording

Income Tax Expense. Income tax expense for the three months ended September 30, 2026 increased $0.4 million, or 31%, to $1.7 million compared to $1.3 million for the three months ended September 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.

Previous wording

Net Income. Net income for the six months ended June 30, 2026 increased $2.0 million, or 25%, to $9.9 million from $7.9 million for the six months ended June 30, 2025. The increase in net income was primarily driven by incremental operating income from the AWS Acquisition, partially offset by lower income resulting from activity declines in the Wireline Services segment.

Current wording

Net Income. Net income for the three months ended September 30, 2026 increased $1.3 million, or 108%, to $2.5 million from $1.2 million for the three months ended September 30, 2025. The increase in net income was primarily driven by incremental operating income from the AWS Acquisition and the contingent consideration gain, partially offset by lower income resulting from activity declines in the Wireline Services segment.

Previous wording

Revenue. Revenue for the six months ended June 30, 2026 increased $59.8 million, or 22%, to $335.6 million from $275.8 million for the six months ended June 30, 2025. The change in revenue by segment was as follows:

Current wording

Revenue. Revenue for the nine months ended September 30, 2026 increased $93.7 million, or 23%, to $498.4 million from $404.7 million for the nine months ended September 30, 2025. The change in revenue by segment was as follows:

Previous wording

High Specification Rigs. High Specification Rigs revenue for the six months ended June 30, 2026 increased $48.7 million, or 28%, to $222.5 million from $173.8 million for the six months ended June 30, 2025. The increase in revenue reflects revenue growth of $59.5 million related to the AWS Acquisition and included a corresponding increase in the average revenue per rig hour by 2% to $762 from $747 for the six months ended June 30, 2025, coupled with a 26% increase in total rig hours to 292,200 for the six months ended June 30, 2026 from 232,700 for the six months ended June 30, 2025.

Current wording

High Specification Rigs. High Specification Rigs revenue for the nine months ended September 30, 2026 increased $78.3 million, or 31%, to $333.0 million from $254.7 million for the nine months ended September 30, 2025. The increase in revenue reflects revenue growth of $90.4 million related to the AWS Acquisition and included a corresponding increase in the average revenue per rig hour by 3% to $764 from $741 for the nine months ended September 30, 2025, coupled with a 27% increase in total rig hours to 435,700 for the nine months ended September 30, 2026 from 343,900 for the nine months ended September 30, 2025.

Previous wording

Wireline Services. Wireline Services revenue for the six months ended June 30, 2026 decreased $10.1 million, or 26%, to $29.2 million from $39.3 million for the six months ended June 30, 2025. The decrease in wireline services revenue was attributable to reductions in the completions service line totaling $4.6 million illustrated by a 15% decrease in completed stage counts to 3,300 for the six months ended June 30, 2026 from 3,900 for the six months ended June 30, 2025. This decrease in completion services revenue and stage count is indicative of lower operating 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 $4.7 million and $0.8 million, respectively.

Current wording

Wireline Services. Wireline Services revenue for the nine months ended September 30, 2026 decreased $15.0 million, or 27%, to $41.5 million from $56.5 million for the nine months ended September 30, 2025. The decrease in wireline services revenue was attributable to reductions in the completions service line totaling $9.1 million illustrated by a 30% decrease in completed stage counts to 4,000 for the nine months ended September 30, 2026 from 5,700 for the nine months ended September 30, 2025. This decrease in completion services revenue and stage count is indicative of lower operating 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 $5.8 million and $0.1 million, respectively.

Previous wording

Cost of services (exclusive of depreciation and amortization). Cost of services for the six months ended June 30, 2026 increased $42.9 million, or 19%, to $273.3 million from $230.4 million for the six months ended June 30, 2025. As a percentage of revenue, cost of services was 81% and 84% for the six months ended June 30, 2026 and 2025, 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 nine months ended September 30, 2026 increased $71.8 million, or 21%, to $411.3 million from $339.5 million for the nine months ended September 30, 2025. As a percentage of revenue, cost of services was 83% and 84% for the nine months ended September 30, 2026 and 2025, 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 six months ended June 30, 2026 increased $42.4 million, or 31%, to $181.2 million from $138.8 million for the six months ended June 30, 2025. The increase was primarily attributable to an increase in variable expenses, most significant of which are employee-related labor costs, repair and maintenance, travel, and fuel costs, which amounted to $19.0 million, $5.5 million, $3.3 million and $3.3 million, respectively. These increases were driven by higher activity levels and the inclusion of $47.1 million of costs related to the AWS Acquisition. As a percentage of High Specification Rigs revenue, cost of services were stable reporting 80% for the six months ended June 30, 2025 compared to 81% for the six months ended June 30, 2026.

Current wording

High Specification Rigs. High Specification Rigs cost of services for the nine months ended September 30, 2026 increased $69.8 million, or 34%, to $273.8 million from $204.0 million for the nine months ended September 30, 2025. The increase was primarily attributable to an increase in variable expenses, most significant of which are employee-related labor costs, repair and maintenance, fuel, and travel costs, which amounted to $34.4 million, $7.9 million, $6.0 million and $5.7 million, respectively. These increases were driven by higher activity levels and the inclusion of $71.7 million of costs related to the AWS Acquisition. As a percentage of High Specification Rigs revenue, cost of services increased from 80% for the nine months ended September 30, 2025 to 82% for the nine months ended September 30, 2026.

Previous wording

Wireline Services. Wireline Services cost of services for the six months ended June 30, 2026 decreased $15.1 million, or 37%, to $25.9 million from $41.0 million for the six months ended June 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $6.6 million as the Company reorganized this service line beginning in the second half of the prior year to accommodate lower operating activity and focus on more profitable service lines. As a percentage of Wireline Services revenue, cost of services decreased from 104% for the six months ended June 30, 2025 to 89% for the six months ended June 30, 2026 primarily due to cost reductions and lower activity levels.

Current wording

Wireline Services. Wireline Services cost of services for the nine months ended September 30, 2026 decreased $21.6 million, or 36%, to $38.0 million from $59.6 million for the nine months ended September 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $11.2 million as the Company reorganized this service line beginning in the second half of the prior year to accommodate lower operating activity and focus on more profitable service lines. Additionally, costs decreased in the production services line by $5.8 million. As a percentage of Wireline Services revenue, cost of services decreased from 105% for the nine months ended September 30, 2025 to 92% for the nine months ended September 30, 2026 primarily due to cost reductions and lower activity levels.

Previous wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the six months ended June 30, 2026 increased $15.6 million, or 31%, to $66.2 million from $50.6 million for the six months ended June 30, 2025. The increase was primarily attributable to increased employee labor and repair and maintenance costs which amounted to $5.5 million and $2.7 million, respectively. These increases were driven by higher activity levels and the inclusion of $15.0 million of costs related to operations acquired in the AWS Acquisition. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services remained improved from 81% for the six months ended June 30, 2025 to 79% for the six months ended June 30, 2026.

Current wording

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the nine months ended September 30, 2026 increased $23.6 million, or 31%, to $99.5 million from $75.9 million for the nine months ended September 30, 2025. The increase was primarily attributable to increased employee labor and repair and maintenance costs which amounted to $7.6 million and $3.7 million, respectively. These increases were driven by higher activity levels and the inclusion of $21.3 million of costs related to operations acquired in the AWS Acquisition. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services remained relatively consistent, reporting 81% for the nine months ended September 30, 2025 to 80% for the nine months ended September 30, 2026.

Previous wording

General & Administrative. General and administrative expenses for the six months ended June 30, 2026 increased $1.3 million, or 9%, to $15.4 million from $14.1 million for the six months ended June 30, 2025. This increase was due to increased employee labor and integration costs largely associated with the AWS Acquisition.

Current wording

General and Administrative. General and administrative expenses for the nine months ended September 30, 2026 increased $2.4 million, or 12%, to $23.1 million from $20.7 million for the nine months ended September 30, 2025. This increase was due to increased employee labor, integration costs largely associated with the AWS Acquisition and incremental professional fees incurred in 2026.

Previous wording

Depreciation and Amortization. Depreciation and amortization for the six months ended June 30, 2026 increased $10.3 million, or 48%, to $31.8 million from $21.5 million for the six months ended June 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.

Current wording

Depreciation and Amortization. Depreciation and amortization for the nine months ended September 30, 2026 increased $14.2 million, or 44%, to $46.7 million from $32.5 million for the nine months ended September 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.

Previous wording

Interest Expense, net. Interest expense, net for the six months ended June 30, 2026 increased $1.3 million, or 217%, to $1.9 million from $0.6 million for the six months ended June 30, 2025. The increase to net interest expense was attributable to the increased principal balance on our Wells Fargo Revolving Credit Facility.

Current wording

Interest Expense, net. Interest expense, net for the nine months ended September 30, 2026 increased $1.6 million, or 160%, to $2.6 million from $1.0 million for the nine months ended September 30, 2025. The increase in interest expense, net was primarily due to higher non-recurring interest income recognized during 2025 and the increased principal balance under our Wells Fargo Revolving Credit Facility.

Previous wording

Income Tax Expense. Income tax expense for the six months ended June 30, 2026 increased $1.7 million, or 63%, to $4.4 million from $2.7 million for the six months ended June 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.

Current wording

Income Tax Expense. Income tax expense for the nine months ended September 30, 2026 increased $2.1 million, or 53%, to $6.1 million from $4.0 million for the nine months ended September 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.

Previous wording

Net Income. Net income for the three months ended June 30, 2026 decreased $0.4 million, or 5%, to $6.9 million from $7.3 million for the three months ended June 30, 2025. Lower operating income from activity declines in the Wireline Services segment was largely offset by incremental operating income from the AWS Acquisition within the High Specification Rigs and Processing Solutions and Ancillary Services segments. These factors were accompanied by higher interest expense, higher other expense (income), net and a higher income tax provision compared with the prior year period.

Current wording

Net Income. Net income for the nine months ended September 30, 2026 increased $3.3 million, or 36%, to $12.4 million from $9.1 million for the nine months ended September 30, 2025. The increase in net income was primarily driven by incremental operating income from the AWS Acquisition and the contingent consideration gain, partially offset by lower income resulting from activity declines in the Wireline Services 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, gain on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, adjustment to contingent consideration, 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, adjustment to contingent consideration, contract liability revenue recognition, 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, 2026 increased $8.0 million to $28.6 million from $20.6 million for the three months ended June 30, 2025. The change by segment was as follows:

Current wording

Adjusted EBITDA for the three months ended September 30, 2026 increased $3.3 million to $20.1 million from $16.8 million for the three months ended September 30, 2025. The change by segment was as follows:

Previous wording

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended June 30, 2026 increased $2.0 million to $3.6 million from $1.6 million for the three months ended June 30, 2025, due to a decrease in cost of services of $5.5 million, partially offset by a corresponding decline in revenue of $3.5 million.

Current wording

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended September 30, 2026 decreased $0.2 million to $0.2 million from $0.4 million for the three months ended September 30, 2025. Adjusted EBITDA increased $1.6 million due to a decrease in cost of services of $6.5 million, partially offset by a corresponding decline in revenue of $4.9 million. This improvement was more than offset by $1.8 million of adjustments to EBITDA in the prior year period, primarily an inventory adjustment, that did not recur in the current year period.

Previous wording

Other. Other Adjusted EBITDA for the three months ended June 30, 2026 increased $0.4 million to a loss of $5.6 million from a loss of $5.2 million for the three months ended June 30, 2025. 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. The Other Adjusted EBITDA loss for the three months ended September 30, 2026 increased $0.5 million to $5.3 million from $4.8 million for the three months ended September 30, 2025. 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, 2026 increased $15.8 million to $51.9 million from $36.1 million for the six months ended June 30, 2025. The change by segment was as follows:

Current wording

Adjusted EBITDA for the nine months ended September 30, 2026 increased $19.1 million to $72.0 million from $52.9 million for the nine months ended September 30, 2025. The change by segment was as follows:

Previous wording

Wireline Services. Wireline Services Adjusted EBITDA for the six months ended June 30, 2026 increased $4.5 million to $3.8 million from a loss of $0.7 million for the six months ended June 30, 2025, primarily due to a decrease in cost of services of $15.1 million, partially offset by a corresponding decline in revenue of $10.1 million.

Current wording

Wireline Services. Wireline Services Adjusted EBITDA for the nine months ended September 30, 2026 increased $4.3 million to $4.0 million from a loss of $0.3 million for the nine months ended September 30, 2025. Adjusted EBITDA increased $6.6 million due to a decrease in cost of services of $21.6 million, partially offset by a corresponding decline in revenue of $15.0 million. This improvement was partially offset by a $2.3 million decrease in adjustments to Adjusted EBITDA compared with the prior year period, primarily due to an inventory adjustment recorded in the prior year period.

Previous wording

Other. Other Adjusted EBITDA for the six months ended June 30, 2026 increased $1.2 million to a loss of $11.6 million from a loss of $10.4 million for the six months ended June 30, 2025. 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. The Other Adjusted EBITDA loss for the nine months ended September 30, 2026 increased $1.7 million to $16.9 million from $15.2 million for the nine months ended September 30, 2025. 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, 2026, we had total liquidity of $61.3 million, consisting of $4.2 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $57.1 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of $4.2 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 $71.2 million as of June 30, 2025 and $57.4 million as of December 31, 2025. 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, 2026, we had total liquidity of $76.2 million, consisting of $6.0 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $70.2 million. The Wells Fargo Revolving Credit Facility had a total loan capacity of $75.0 million as of September 30, 2026, with $4.8 million of outstanding Letters of Credit reducing available borrowing capacity to $70.2 million, compared to available borrowing capacity of $71.5 million as of September 30, 2025 and $57.4 million as of December 31, 2025. Subsequent to September 30, 2026, the Company completed the STEP Acquisition, and the cash portion of the purchase price was funded with $22.5 million of borrowings under the Wells Fargo Revolving Credit Facility. Following the closing of the STEP Acquisition on October 8, 2026, total borrowings outstanding under the Wells Fargo Revolving Credit Facility were $30.6 million and approximately $39.6 million remained available for borrowings. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements and 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 remain in compliance with our covenants under our debt agreements. Based upon current levels of operations and anticipated growth, we expect that cash generated from operations, together with borrowings under 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 used in investing activities increased $11.8 million to $23.4 million for the six months ended June 30, 2026 compared to $11.6 million for the six months ended June 30, 2025. The change in cash flows used in investing activities is largely attributable to increases in construction in progress for the build out of ECHO hybrid rigs relative to those that occurred during the six months ended June 30, 2025.

Current wording

Net cash used in investing activities increased $15.1 million to $32.6 million for the nine months ended September 30, 2026 compared to $17.5 million for the nine months ended September 30, 2025. The change in cash flows used in investing activities is largely attributable to increases in construction in progress for the build out of ECHO hybrid rigs.

Previous wording

Net cash used in financing activities decreased $6.0 million to $5.7 million for the six months ended June 30, 2026 compared to $11.7 million for the six months ended June 30, 2025. The change was primarily driven by borrowings on the Wells Fargo Revolving Credit Facility to cover working capital, partially offset by cash used for share repurchases and payments on finance lease obligations.

Current wording

Net cash used in financing activities increased $2.1 million to $25.2 million for the nine months ended September 30, 2026 compared to $23.1 million for the nine months ended September 30, 2025. The change was primarily driven by net repayments under the Wells Fargo Revolving Credit Facility and higher principal payments on finance lease obligations, partially offset by lower cash used for share repurchases.