Ranger Energy Services, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 — Organization and Business Operations

Business

Ranger Energy Services, Inc. (“Ranger, Inc.,” “Ranger,” “we,” “us,” “our” or the “Company”) is a provider of onshore high specification well service rigs, wireline services, and additional processing solutions and ancillary services in the United States (“U.S.”). The Company provides an extensive range of well site services to leading U.S. E&P companies that are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well.

Our service offerings consist of well completion support, workover, well maintenance, wireline, and other complementary services, as well as installation, commissioning, and operation of modular equipment, which are conducted inthree reportable segments, as follows:

•High Specification Rigs. Provides high specification well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well.

•Wireline Services. Provides services necessary to bring and maintain a well on production and consists of our completion, production, and pump down service lines.

•Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics, coil tubing, mixing plants and chemicals, tubing and inspection, transportation, and processing solutions.

The Company’s operations take place in most of the active oil and natural gas basins in the U.S., including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend, Anadarko Basin, and Canadian and Kingfisher Counties plays.

Organization

Ranger, Inc. was incorporated as a Delaware corporation in February 2017. In conjunction with the initial public offering of Class A Common Stock, par value $0.01 per share (“Class A Common Stock”), which closed on August 16, 2017 (the “Offering”), and the corporate reorganization Ranger, Inc. underwent in connection with the Offering, Ranger, Inc. became a holding company, and its sole material assets consist of membership interests in RNGR Energy Services, LLC, a Delaware limited liability company (“Ranger LLC”). Ranger LLC owns all of the outstanding equity interests in Ranger Energy Services, LLC (“Ranger Services”) and Torrent Energy Services, LLC (“Torrent Services”), and the other subsidiaries through which it operates its assets. Ranger LLC is the sole managing member of Ranger Services and Torrent Services, and is responsible for all operational, management and administrative decisions relating to Ranger Services, its subsidiaries, and Torrent Services’ business and consolidates the financial results of Ranger Services, its subsidiaries, and Torrent Services.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the SEC instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures have been condensed or omitted. The Condensed Consolidated Financial Statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results of operations for the interim periods. These interim financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in the Annual Report. Interim results for the periods presented may not be indicative of results that will be realized for future periods.

Certain prior-period amounts have been reclassified to conform to the current-period presentation, including the separate presentation of Short-term contract liabilities previously included within Other current liabilities. These reclassifications had no impact on total liabilities, stockholders’ equity or net income.

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in Note 2 — Summary of Significant Accounting Policies of the Annual Report.

Use of Estimates

The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from such estimates.

Areas where critical accounting estimates are made by management include:

•Depreciation and amortization of property and equipment and intangible assets;

•Assets acquired and liabilities assumed in business combinations;

•Impairment of property and equipment and intangible assets;

•Collectability of accounts receivable and estimates of allowance for credit losses;

•Income taxes; and

•Equity-based compensation.

New Accounting Pronouncements

Recently adopted accounting standards

In July 2025, the FASB issued Accounting Standards Update No. 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets” (“ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers(“ASC 606”). The Company adopted ASU 2025-05 effective January 1, 2026 and elected the practical expedient and applied the guidance prospectively. In estimating expected credit losses, the Company considers historical loss experience, current conditions and reasonable and supportable forecasts, including relevant customer-specific credit considerations. Based on the short-term nature of the Company’s accounts receivable and contract assets, the adoption of ASU 2025-05 did not have a material impact on the Company’s consolidated financial statements or related disclosures.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”). The guidance in ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. In January 2025, the FASB issued Accounting Standards Update 2025-01—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the effective date, which only impacts public business entities with non-calendar year-end reporting periods. As such, the original effective date pronounced in ASU 2024-03 remains applicable for the Company. Based on both the ASU 2024-03 and subsequent clarification in ASU 2025-01, early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

Note 3 — Revenue

Revenue Recognition

The Company recognizes revenue when control of the promised services is transferred to its customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services. Revenue is generally recognized over time as services are performed.

Certain of the Company’s customer agreements related to the construction and operation of hybrid rigs (“ECHO Rigs”) contain lease and non-lease components. The Company has elected the lessor practical expedient under ASC 842, Leases(“ASC 842”) to account for the lease and associated non-lease components as a single combined component because the timing and pattern of transfer of the components are the same and the lease components, if accounted for separately, would be classified as operating leases. Because the non-lease components are predominant, the combined components are accounted for as single performance obligations under ASC 606. Certain ECHO Rig agreements include upfront customer contributions and contractual hourly surcharges. Revenue associated with the customer contributions and contractual surcharges is recognized over time as the related rig services are performed, generally based on rig hours. All revenue associated with the ECHO Rig agreements is included in the High Specification Rigs segment. Revenue disaggregated by reportable segment is presented in Note 17 — Segment Reporting.

Contract Balances

Accounts receivable represent unconditional rights to consideration for billed revenue while Contract assets represent the Company’s earned, but unbilled revenue and conditional right to consideration for services transferred to customers. Contract liabilities represent consideration received from customers in advance of the Company’s satisfaction of its performance obligations. The Company’s contract liabilities primarily consist of advance customer consideration received under its ECHO Rig agreements. These amounts are recognized as revenue over time as the related rig services are performed. The following table presents the Company’s receivables, contract assets and contract liabilities (in millions):

The current portion of contract liabilities is included in Short-term contract liability, and the noncurrent portion is presented as Long-term contract liability in the Condensed Consolidated Balance Sheets.

During the three months ended September 30, 2026, the Company recognized $0.2 million of revenue that was included in the contract liability balances as of June 30, 2026. During the nine months ended September 30, 2026, the Company recognized $0.3 million of revenue that was included in the contract liability balances as of December 31, 2025.

Remaining Performance Obligations

In certain instances, the Company has entered into agreements with customers that contain provisions for certain performance obligations in exchange for upfront payments or hourly premiums. The upfront payments made are classified as contract liabilities until the related performance obligations are satisfied. Remaining performance obligations represent the aggregate amount of fixed contractual consideration included in the transaction price that is allocated to performance obligations that were unsatisfied or partially unsatisfied as of the end of the reporting period. Such amounts include contract liabilities and certain fixed consideration that will be invoiced in future periods. Certain ECHO Rig agreements contain termination provisions under which customer contributions received are nonrefundable and, for certain agreements, the customer may be required to pay remaining fixed contractual hourly surcharges upon termination. These provisions are considered in determining the fixed consideration included in the transaction price. The Company includes only fixed, enforceable amounts in the transaction price allocated to its remaining performance obligations.

As of September 30, 2026, the aggregate transaction price allocated to remaining performance obligations was $21.6 million. The Company expects to recognize this amount as follows (in millions):

The Company applies the practical expedients that permit the exclusion from the disclosure of remaining performance obligations of (i) agreements with an original expected duration of one year or less and (ii) amounts for which the Company recognizes revenue in the amount to which it has a right to invoice when that amount corresponds directly with the value of the Company’s performance completed to date. The excluded performance obligations primarily relate to ordinary hourly well service agreements. The consideration under these agreements varies based on the actual rig hours performed and is generally resolved and invoiced as the services are provided over contractual periods that may extend up to 36 months. The Company has not excluded any other material consideration from the transaction price due to the application of the variable consideration constraint.

Note 4 — Business Combination

The Company completedone acquisition in the fourth quarter of 2025, which was accounted for using the acquisition method of accounting under the FASB Accounting Standards Codification 805, Business Combinations (“ASC 805”). The results of operations for the acquisition are included in the accompanying Condensed Consolidated Statement of Operations from the date of the acquisition. Under the acquisition method of accounting, the assets acquired and liabilities assumed have been recorded at their respective estimated fair values as of the date of completion of the acquisition and reported in Ranger’s Condensed Consolidated Balance Sheet.

The Company utilized valuation techniques consistent with the market approach to measure the fair value of the assets acquired and liabilities assumed in the business combination. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The estimates of fair value required the use of significant unobservable inputs, representative of a Level 3 fair value measurement, including assumptions related to the future performance of the assets.

American Well Intermediate Holdings, LLC Acquisition

On November 7, 2025 (the “AWS Acquisition Date”), the Company entered into a Membership Interest Purchase Agreement (the “AWS Purchase Agreement”) with American Well Holdings, LLC (the “AWS Seller”) to acquire 100% of the ownership interests of American Well Intermediate Holdings, LLC (“AWS Intermediate”), the sole owner of 100% of the ownership interests of American Well Services, LLC (“American Well Services,” and together with AWS Intermediate, “AWS” and the acquisition, the “AWS Acquisition”), which operates a fleet of high specification rigs and complementary supporting equipment primarily within the Permian Basin. The AWS Acquisition was completed to strengthen the Company’s existing service offerings in its current operating segments. In January 2026, AWS Intermediate was renamed Ranger AWS Intermediate Holdings, LLC and American Well Services was renamed Ranger AWS, LLC. The financial results of AWS subsequent to the AWS Acquisition Date are included within the High Specification Rigs and Processing Solutions and Ancillary Services reporting segments.

The preliminary purchase price allocation previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 has been updated during the nine months ended September 30, 2026 to reflect revised estimates, including an update for the refinements to the fair value of certain acquired assets and liabilities based on updated information. During the nine months ended September 30, 2026, the Company finalized the purchase price allocation and completed the acquisition accounting for the AWS Acquisition. The cumulative measurement period adjustments primarily related to the final net working capital adjustment and refinements to the fair values of certain acquired assets and liabilities.

The total fair value of consideration transferred in the AWS Acquisition was $88.6 million, consisting of $61.8 million in cash paid at closing, reduced by a $3.0 million working capital adjustment,1,998,401 shares of Class A Common Stock issued to the AWS Seller, and $2.3 million of additional contingent consideration measured at fair value that the AWS Seller is eligible to receive based on the performance of the AWS Acquisition during the 12 months following the AWS Acquisition Date.

The following table presents the total fair value of assets acquired and liabilities assumed in accordance with ASC 805, including cumulative measurement period adjustments recorded through the completion of the measurement period (in millions):

Net working capital adjustment represents the difference between specified current assets and current liabilities, as defined in the AWS Purchase Agreement, measured as of the AWS Acquisition Date. The net working capital adjustment was finalized during the nine months ended September 30, 2026.

Equity issued represents the 1,998,401 shares of Class A Common Stock issued pursuant to the AWS Acquisition, valued at the Company’s stock price on the AWS Acquisition Date of $13.75 per share.

Contingent consideration represents the fair value of the earnout payable to the AWS Seller based on the achievement of defined post-closing performance targets. The contingent consideration was measured at fair value as of the AWS Acquisition Date and classified as a Level 3 liability due to the use of unobservable inputs. The estimated fair value of $2.3 million was determined using a probability-weighted scenario analysis, which incorporates management’s estimates of the likelihood of achieving the applicable performance targets, discounted at the Company’s cost of debt as of the Acquisition Date. The maximum earnout payable to the AWS Seller is $5.0 million. The contingent consideration liability is remeasured at fair value each reporting period, with changes in fair value recognized in net income. During the three and nine months ended September 30, 2026, the fair value of contingent consideration decreased by $3.0 million and $2.3 million, respectively, resulting in a gain recognized within Change in fair value of contingent consideration in the Condensed Consolidated Statement of Operations. As of September 30, 2026, the estimated fair value of the contingent consideration waszero.

The fair value of trade receivables acquired was $25.9 million. The gross contractual amounts receivable were approximately $26.2 million, of which management estimates approximately $0.3 million will not be collected.

Note 5 — Assets Held for Sale

Assets held for sale include the net book value of assets the Company plans to sell within the next 12 months and are primarily related to excess non-working assets. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value less estimated costs to sell.

As of September 30, 2026 and December 31, 2025, the Company classified $0.2 million and $0.3 million, respectively, of idle high specification rigs within our broader rig portfolio as held for sale, as the assets continue to be actively marketed.

For the three and nine months ended September 30, 2026, the Company recognized an impairment expense of $0.1 million related to assets held for sale.

For the three months ended September 30, 2026 and 2025, the Company recognized a loss on asset disposals of $0.3 million and a gain on asset disposals of $0.4 million, respectively. For the nine months ended September 30, 2026 and 2025, the Company recognized net gains on asset disposals of $1.5 million and $0.6 million, respectively. These gains are included in (Gain) loss on sale of assets in the Condensed Consolidated Statements of Operations.

Note 6 — Property and Equipment, Net

Property and equipment, net includes the following (in millions):

Depreciation expense was $14.8 million and $10.8 million for the three months ended September 30, 2026 and 2025, respectively, and $46.2 million and $31.9 million for the nine months ended September 30, 2026 and 2025, respectively.

Note 7 — Intangible Assets, Net

Definite lived intangible assets are comprised of the following (in millions):

Amortization expense was $0.1 million and $0.2 million for the three months ended September 30, 2026 and 2025, respectively and $0.5 million and $0.6 million for the nine months ended September 30, 2026 and 2025, respectively. Amortization expense for the future periods is expected to be as follows (in millions):

Note 8 — Accrued Expenses

Accrued expenses include the following (in millions):

Note 9 — Leases

Operating Leases

The Company has operating leases, primarily for real estate and equipment, with terms that vary fromone tonine years, included in operating lease costs in the table below. The operating leases are included in Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets.

Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and nine months ended September 30, 2026 and 2025, are as follows (in millions):

As of September 30, 2026, aggregate future minimum lease payments under operating leases are as follows (in millions):

On February 1, 2025, the Company entered into an agreement to sublease a 38,033 square foot property located in Midland, Texas. The sublease will cover the remaining term of the head lease for the property with no renewal options, ending September 30, 2027. Sublease income will be reported separately from the operating lease expense as part of other income. The Company recognized an impairment to the right-of-use asset associated with this operating lease of $0.4 million, in accordance with ASC 360-10 on February 1, 2025. The fair value of the right-of-use asset was measured as the present value of the future sublease cash flows using the Company’s incremental borrowing rate.

Certain of the Company’s customer agreements to construct and operate hybrid rigs contain lease and non-lease components. A contract is considered to contain a lease when (i) it specifies identified assets, (ii) the customer obtains substantially all of the economic benefits from those assets during the period of use, and (iii) the customer directs the use of the assets during the period of use. The lease components are classified as operating leases under ASC 842. The Company has elected the lessor practical expedient to account for the lease and associated non-lease components as a single combined component because the timing and pattern of transfer of the components are the same and the lease components, if accounted for separately, would be classified as operating leases. Because the non-lease components are predominant, the combined components are accounted for under ASC 606. See “Item 1. Financial Statements (Unaudited)—Note 3 — Revenue” for additional information regarding the related revenue recognition, contract balances and remaining performance obligations.

Finance Leases

The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three tofive years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets.

Lease costs and other information related to finance leases for the three and nine months ended September 30, 2026 and 2025, are as follows (in millions):

As of September 30, 2026, aggregate future minimum lease payments under finance leases are as follows (in millions):

Note 10 — Other Financing Liabilities

The Company has sale-leaseback agreements for land and certain other fixed assets with terms that vary from 18 months to 13 years. The sales did not qualify for sale accounting, therefore these leases were classified as finance leases and no gain or loss was recorded. The net book value of the assets remained in Property and equipment, net and are depreciating over their original useful lives.

As of September 30, 2026, aggregate future lease payments of the financing liabilities are as follows (in millions):

Note 11 — Debt

Wells Fargo Bank, N.A. Credit Agreement

On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A., providing the Company with a secured credit facility (“Wells Fargo Revolving Credit Facility”) in an aggregate principal amount of $75.0 million. Debt under the Credit Agreement is secured by a lien on substantially all of the Company’s assets. The Company was in compliance with the Credit Agreement covenant of maintaining a Fixed Charge Coverage Ratio (“FCCR”) of greater than 1.0 as of September 30, 2026, which is applicable only under certain borrowing levels.

The Company has up to $5.0 million available under the Wells Fargo Revolving Credit Facility for letters of credit, subject to assignment. As of September 30, 2026, Letters of Credit outstanding totaled $4.8 million. These Letters of Credit are primarily to be utilized for working capital, general corporate purposes, and to support the Company’s insurance programs, and have been amended periodically in connection with the annual insurance renewals. The interest rate applicable to the Letters of Credit was approximately 1.8% for the month ended September 30, 2026.

The Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable and eligible unbilled revenue, less certain reserves. The Company’s eligible accounts receivable serve as collateral for the borrowings under the Wells Fargo Revolving Credit Facility, which is scheduled to mature on May 31, 2028. The Wells Fargo Revolving Credit Facility includes an acceleration clause and cash dominion provisions under certain circumstances that permit the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Wells Fargo Revolving Credit Facility. The borrowings of the Wells Fargo Revolving Credit Facility, therefore, are classified as a current liability on the Condensed Consolidated Balance Sheets.

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, which was based on a borrowing base certificate in effect as of September 30, 2026. On June 17, 2024, the Company entered into the First Amendment to the Wells Fargo Revolving Credit Facility, which allows for a percentage of unbilled revenue to be included in the calculation of the borrowing base. The Company didnot have any borrowings under the Wells Fargo Revolving Credit Facility as of September 30, 2026 and had $4.8 million in Letters of Credit open under the facility, leaving a residual $70.2 million available for borrowings as of September 30, 2026. Subsequent to September 30, 2026, the Company borrowed $22.5 million under the Wells Fargo Revolving Credit Facility to fund the cash portion of the purchase price for the STEP Acquisition (see Note 18 — Subsequent Events). 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. Long-term debt, current portion on the Condensed Consolidated Balance Sheet as of December 31, 2025 also included other immaterial financing obligations, including vehicle-related financing arrangements. Borrowings under the Wells Fargo Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability. The weighted average interest rate for the loan was approximately 5.7% for the nine months ended September 30, 2026.

Note 12 — Equity

Equity-Based Compensation

In 2017, the Company adopted the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan (the “2017 Plan”). The Company has granted shares of restricted stock (“restricted shares” or “RSAs”), restricted stock units (“restricted units” or “RSUs”), and performance-based restricted stock units (“performance stock units” or “PSUs”) under the 2017 Plan.

Restricted Stock Awards

The Company has granted RSAs, which generally vest inthree equal annual installments beginning on the first anniversary date of the grant. No RSAs were granted during 2026 or 2025. As of September 30, 2026, there was an aggregate of $0.5 million of unrecognized expense related to RSAs issued, which is expected to be recognized over a weighted average period of 0.5 years.

Restricted Stock Units

Beginning in 2025, the Company stopped issuing RSAs and began issuing RSUs to certain employees in lieu of RSAs. These employee RSUs generally vest inthree equal annual installments beginning on the first anniversary date of the grant. In addition, the Company began granting RSUs in 2024 to certain non-employee directors, which vest on the first anniversary of the date of the grant. During the nine months ended September 30, 2026, the Company granted approximately 324,400 RSUs to employees with an approximate aggregate value of $5.5 million and 22,500 RSUs to non-employee directors with an aggregate value of $0.4 million. During the nine months ended September 30, 2025, the Company granted approximately 238,300 RSUs to employees with an approximate aggregate value of $4.1 million and 40,700 RSUs to non-employee directors with an aggregate value of $0.5 million. As of September 30, 2026, there was an aggregate of $6.3 million of unrecognized expense related to RSUs issued to employees and non-employee directors, which is expected to be recognized over a weighted average period of 2.1 years.

Certain non-employee directors may elect for a portion of their RSUs to settle in the form of restricted cash units (“RCUs”), which vest on the same schedule as the originally granted RSUs.

RCUs are cash-settled, with the value of each vested RCU equal to the closing price per share of the Company’s Class A Common Stock on the vesting date. The Company determined that RCUs are in-substance liabilities accounted for as liability instruments in accordance with ASC 718, Compensation—Stock Compensation, due to the cash settlement feature. RCUs are remeasured based on the closing price per share of the Company’s Class A Common Stock at the end of each reporting period. During the nine months ended September 30, 2026, non-employee directors elected cash settlement for approximately 6,500 RSUs, which are accounted for as RCUs. During the nine months ended September 30, 2025, the Company granted approximately 12,900 RCUs to non-employee directors. As of September 30, 2026, the liability associated with unvested RCUs was $0.1 million, which is included in Accrued expenses in the Condensed Consolidated Balance Sheets.

Performance Stock Units

The performance criteria applicable to performance stock units that have been granted by the Company are based on relative total stockholder return, which measures the Company’s total stockholder return as compared to the total stockholder return of a designated peer group, and absolute total stockholder return. Generally, the performance stock units are subject to athree-year performance period.

During the nine months ended September 30, 2026, the Company granted approximately 154,100 target shares of market-based performance stock units, of which 77,050 were granted at a relative grant date fair value of approximately $22.20 per share and 77,050 were granted at an absolute grant date fair value of approximately $21.74 per share. Shares granted during the nine months ended September 30, 2026 are expected to vest (if at all) following the completion of the applicable performance period on December 31, 2028. During the nine months ended September 30, 2025, the Company granted approximately 136,000 target shares of market-based performance stock units, of which 68,000 were granted at a relative grant date fair value of approximately $22.46 per share and 68,000 were granted at an absolute grant date fair value of approximately $18.24 per share. As of September 30, 2026, there was an aggregate of $4.1 million of unrecognized compensation cost related to performance stock units, which is expected to be recognized over a weighted average period of 1.2 years.

Effective March 3, 2025, the Company modified the absolute total stockholder return calculation for grants made tothree grantees in 2023 and 2024 to include dividends in the calculation of absolute stockholder return. The modification resulted in incremental compensation cost of $0.1 million, which was recognized in 2025.

Share Repurchases

On March 7, 2023, the Company announced a share repurchase program allowing the Company to purchase Class A Common Stock held by non-affiliates, not to exceed $35.0 million in aggregate value. On March 4, 2024, the Company announced that its Board of Directors approved additional share repurchases of $50.0 million, bringing the total share repurchase program authorization to $85.0 million in aggregate value. Share repurchases may take place in any transaction form as allowable by the SEC. Approval of the program by the Board of Directors of the Company is valid for 36 months after the approval date, and may be accelerated, suspended or discontinued at any time without notice, allowing the Company to utilize the expanded $50 million of approved capacity through March 4, 2027.

During the three and nine months ended September 30, 2026, the Company repurchased 142,100 and 463,700 shares, respectively, of the Company’s Class A Common Stock for a total of $2.2 million and $7.2 million, respectively on the open market. As of September 30, 2026, an aggregate of 4,783,900 shares of Class A Common Stock were purchased for a total of $54.1 million, net of tax since the inception of the repurchase plan announced on March 7, 2023 and $30.9 million remained available under the share repurchase program.

Dividends

In 2023, the Board of Directors approved the initiation of a quarterly dividend of $0.05 per share. The Company increased the quarterly dividend to $0.06 per share in 2025. The Company paid $4.4 million and $4.1 million to stockholders for the nine months ended September 30, 2026 and 2025, respectively.

The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company’s debt agreements and other factors. There can be no assurance that we will pay a dividend in the future.

Note 13 — Risk Concentrations

Customer Concentrations

During the three months ended September 30, 2026, three customers accounted for approximately 40%,14%, and 11%, respectively, of the Company’s consolidated revenues. These customers contributed 68% of the revenue for high specification rigs,61% for wireline services, and 61% for processing solutions and ancillary services. During the nine months ended September 30, 2026, three customers accounted for approximately 39%,15%, and 11%, respectively, of the Company’s consolidated revenues. These customers contributed 66% of the revenue for high specification rigs,50% for wireline services, and 68% for processing solutions and ancillary services. As of September 30, 2026, approximately 67% of the net accounts receivable balance, in aggregate, was due from these customers.

The majority of our trade receivables generally have payment terms ranging from 60 to 90 days. As of September 30, 2026, the top three trade receivable balances represented approximately 48%,13%, and 7%, respectively, of consolidated net accounts receivable. Within our High Specification Rigs segment, the top three trade receivable balances represented 53%,13%, and 7%, respectively, of total High Specification Rigs net accounts receivable. Within our Wireline Services segment, the top three trade receivable balances represented 37%,25%, and 11%, respectively, of total Wireline Services net accounts receivable. Within our Processing Solutions and Ancillary Services segment, the top three trade receivable balances represented 44%,12%, and 9%, respectively, of total Processing Solutions and Ancillary Services net accounts receivable. We mitigate the associated credit risk by performing credit evaluations and monitoring the payment patterns of our customers.

During the three months ended September 30, 2025, three customers accounted for approximately 27%,24%, and 12%, respectively, of the Company’s consolidated revenues. These customers contributed 72% of the revenue for high specification rigs,24% for wireline services, and 63% for processing solutions and ancillary services. During the nine months ended September 30, 2025, three customers accounted for approximately 28%,21%, and 11%, respectively, of the Company’s consolidated revenues. These customers contributed 68% of the revenue for high specification rigs,30% for wireline services, and 54% for processing solutions and ancillary services. As of September 30, 2025, approximately 60% of the net accounts receivable balance, in aggregate, was due from these customers.

Note 14 — Income Taxes

Effective Tax Rate

The Company is a corporation and is subject to U.S. federal income tax. The Company uses an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating the estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and other income tax related estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. The effective U.S. federal income tax rate applicable to the Company for the nine months ended September 30, 2026 and 2025 was 32.9% and 30.5%, respectively. The Company is subject to the Texas Margin Tax, which requires tax payments at a maximum statutory effective rate of 0.75% on the taxable margin of each taxable entity that does business in Texas.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. ASC 740, Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Certain elements of the OBBBA are not effective until 2026, and the Company has evaluated those provisions. The Company determined that the legislation did not have a material effect on the provision for income taxes in 2026.

Tax Attributes

Historically, utilization of a portion of the Company's net operating loss carryforwards has been subject to limitations of utilization under Section 382 of the Internal Revenue Code of 1986 (“Section 382”), as amended. The Company incurred an ownership change, triggering another Section 382 loss limitation, during the three months ended June 30, 2023.

As the Company continues to experience increasing profits, it expects to fully utilize all deferred tax assets including those associated with the net operating loss carry-forward. Accordingly, the Company has not recorded a valuation allowance against any deferred tax assets as of September 30, 2026.

Other Tax Matters

Total income tax expense for the nine months ended September 30, 2026 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income or loss primarily due to the impact of state income taxes as well as certain non-deductible expenses.

The Company qualified for federal government assistance through employee retention credit provisions of the Consolidated Appropriations Act of 2021. As previously reported, the Company filed amended tax returns with the Internal Revenue Service ("IRS") claiming a refund of certain payroll taxes from 2020 and 2021. During 2025, the Company received a portion of the claimed refunds in cash and recognized such amounts in Other income in the periods received. As of September 30, 2026, the Company had not recognized a receivable for the remaining claimed amount and plans to record any additional refunds in the period received.

The Company is subject to the following material taxing jurisdictions: the United States and Texas. As of September 30, 2026, the Company has no current tax years under audit. The Company remains subject to examination for federal income taxes and state income taxes for tax years 2022 through 2025.

The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained upon examination. Therefore, as of September 30, 2026, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions.

Note 15 — Earnings per Share

Earnings per share is based on the amount of earnings allocated to the stockholders and the weighted average number of shares outstanding during the period for each class of Common Stock. Diluted earnings per share is computed giving effect to all potentially dilutive shares. The following table presents the Company’s calculation of the basic and diluted earnings per share (in millions, except share and per share data):

Note 16 — Commitments and Contingencies

Legal Matters

From time to time, the Company is involved in various legal matters arising in the normal course of business. The Company does not believe that the ultimate resolution of these currently pending matters will have a material adverse effect on its condensed consolidated financial position or results of operations. We maintain insurance policies with insurers in amounts and with coverage and deductibles that we, with the advice of our insurance advisers and brokers, believe are reasonable and prudent. We cannot, however, assure you that this insurance will be adequate to protect us from all material expenses related to potential future claims for personal injury and property damage or that these levels of insurance will be available in the future at economical prices.

Earnout Obligations Related to Business Combination

In connection with the AWS Acquisition, the Company included in the AWS Purchase Agreement a contingent consideration arrangement that provides for potential future cash payments to the AWS Seller based on the achievement of specified post-acquisition performance targets during the 12 months following the AWS Acquisition Date. The contingent consideration obligation is recorded at fair value and remeasured each reporting period, with changes in fair value recognized in earnings. During the nine months ended September 30, 2026, the fair value of the contingent consideration decreased by $2.3 million. As of September 30, 2026, the fair value of the contingent consideration liability waszero. See “Item 1. Financial Statements (Unaudited)—Note 4 — Business Combination" for additional information.

Note 17 — Segment Reporting

The Company’s operations are located in the United States and organized into three reportable segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. 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. The reportable segments comprise the structure used by the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance during the years presented in the accompanying Consolidated Financial Statements. The Chief Executive Officer is regarded as the Company’s CODM. The primary profitability measurement used by the CODM to review segment operating results is Adjusted EBITDA. 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. The CODM uses Adjusted EBITDA as the primary measure of segment profitability to assess segment performance and monitor period-over-period, forecast-to-actual and plan-to-actual results. The CODM also uses Adjusted EBITDA to inform resource allocation decisions, including the allocation of equipment, financial and human resources, and in connection with the Company’s annual planning and forecasting process.

The reportable segments have been categorized based on services provided in each line of business. The tables below present Adjusted EBITDA, as the Company believes this is most consistent with the principles used in measuring the financial statements.

During the second quarter of 2026, the Company changed the classification of certain revenues and related costs associated with the AWS Acquisition. These activities, which were previously included in the Processing Solutions and Ancillary Services segment, are now included in the High Specification Rigs segment to align with the manner in which management reviews the operations. The change impacted segment revenue for the three months ended March 31, 2026 and, accordingly, segment revenue for the nine months ended September 30, 2026. The change had no impact on the Company’s consolidated financial position, results of operations or cash flows for the nine months ended September 30, 2025.

The Company’s assets are routinely utilized across multiple segments, and the CODM does not regularly review net property and equipment by segment when evaluating segment performance or allocating resources. Therefore, the net property and equipment by segment is not presented.

The following is a description of each operating segment:

High Specification Rigs. Provides high specification well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well.

Wireline Services. Provides services necessary to bring and maintain a well on production and consists of our completion, production and pump down service lines.

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, plug and abandonment, and processing solutions.

Certain segment information for the three and nine months ended September 30, 2026 and 2025 is as follows (in millions):

• Other Segment Items include Direct Materials, Subcontractor Expense, Reimbursable Expenses, Equipment Rentals, Fuel, Per Diem, Travel & Entertainment, Vehicles and Miscellaneous. These items, including Employee Expenses and Repair and Maintenance, are included in Cost of Services and General and Administrative expense in the Consolidated Statements of Operations.

A reconciliation of Adjusted EBITDA to income before income taxes and net income is as follows (in millions):

Note 18 — Subsequent Events

STEP U.S. Operations Acquisition

As previously disclosed in the Current Report on Form 8-K filed by the Company on August 31, 2026, the Company entered into an Asset Purchase Agreement (the “STEP Purchase Agreement”), dated as of August 30, 2026, with STEP Energy Services (USA) Ltd., STEP Energy Services (Leasing) LLC, STEP Energy Services Holdings Ltd., and STEP Nitrogen Industrial Services (USA) Ltd. (collectively, “STEP” or the “Sellers”), pursuant to which the Company agreed to acquire certain assets associated with STEP’s coiled tubing, fluid and nitrogen pumping, and related well services business in the United States (the “STEP Acquisition”). On October 8, 2026, the Company completed the transactions contemplated by the STEP Purchase Agreement.

Pursuant to the STEP Purchase Agreement, the Company acquired certain coiled tubing units and related equipment and other operating assets, and certain rights under leases associated with the acquired operations, among other assets. In connection with the STEP Acquisition, the Company also assumed certain obligations relating to certain facility, vehicle and equipment leases.

The aggregate consideration for the STEP Acquisition was approximately $27.5 million, subject to customary post-closing adjustments set forth in the STEP Purchase Agreement. The consideration consisted of $22.5 million in cash and 307,503 shares of Class A Common Stock issued to the Sellers. The cash portion of the purchase price was funded through borrowings under the Company’s Wells Fargo Revolving Credit Facility.

As of the date these Condensed Consolidated Financial Statements were issued, the initial accounting for the STEP Acquisition was incomplete. Accordingly, certain disclosures, including the purchase price allocation and pro forma financial information, are not included herein.

Dividend

On November 9, 2026, the Board of Directors declared a quarterly cash dividend of $0.06 per share payable December 4, 2026 to common stockholders of record at the close of business on November 20, 2026. The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company’s debt agreements and other factors. There can be no assurance that we will pay a dividend in the future.

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date the financial statements were issued. Based upon this review, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the financial statements.