MAMMOTH ENERGY SERVICES, INC.

Previous wording

•Net income for the second quarter of 2025 was $8.8 million, or $0.18 per diluted share, as compared to net loss of $156.0 million, or $3.25 per diluted share, for the second quarter of 2024. The second quarter of 2024 included charges totaling $170.7 million in relation to the Settlement Agreement with PREPA.

Current wording

•Net loss for the third quarter of 2025 was $12.6 million, or $0.26 per diluted share, as compared to net loss of $24.0 million, or $0.50 per diluted share, for the third quarter of 2024.

Previous wording

•Adjusted EBITDA for the second quarter of 2025 was ($2.8) million as compared to ($164.6) million for the second quarter of 2024. See “Non-GAAP Financial Measures” for a reconciliation of net loss from continuing operations to Adjusted EBITDA.

Current wording

•Adjusted EBITDA for the third quarter of 2025 was ($4.4) million as compared to ($2.9) million for the third quarter of 2024. See “Non-GAAP Financial Measures” for a reconciliation of net loss from continuing operations to Adjusted EBITDA.

Previous wording

During the second half of 2025, we expect to generate an adjusted EBITDA loss from continuing operations ranging from $3.0 million to $4.0 million based on our current portfolio of assets. Further, we expect our cash outflow related to discontinued operations to range from $4.0 million to $5.0 million due to the wind-down of activities. We plan to largely fund this loss from proceeds from the sale of underutilized assets.

Current wording

During the fourth quarter of 2025, we expect to generate an adjusted EBITDA loss from continuing operations ranging from $2.0 million to $3.0 million based on our current portfolio of assets. Further, we expect our cash outflow related to discontinued operations to range from $1.0 million to $2.0 million due to the wind-down of activities. We plan to largely fund this loss from proceeds from the sale of underutilized assets.

Previous wording

Revenue. Revenue for the three months ended June 30, 2025 increased $0.4 million, or 2%, to $16.4 million from $16.0 million for the three months ended June 30, 2024. The increase in total revenue is primarily attributable to increases in revenue for our rental, infrastructure and natural sand proppant services segments during the three months ended June 30, 2025, which was partially offset by a decline in revenue for our other services. Revenue by segment was as follows:

Current wording

Revenue. Revenue for the three months ended September 30, 2025 decreased $2.3 million, or 13%, to $14.8 million from $17.1 million for the three months ended September 30, 2024. The decrease in total revenue is primarily attributable to decreases in revenue for natural sand proppant services, accommodation services, and other services during the three months ended September 30, 2025, which was partially offset by an increase in revenue for rental services, infrastructure services, and drilling services. Revenue by segment was as follows:

Previous wording

Infrastructure Services. Infrastructure services revenue increased $0.9 million, or 20%, to $5.4 million for the three months ended June 30, 2025 from $4.5 million for the three months ended June 30, 2024. The increase in revenue was primarily due to an increase in fiber optic revenue related to increased activity, partially offset by a 4% decrease in billable engineering hours.

Current wording

Infrastructure Services. Infrastructure services revenue increased $0.4 million, or 9%, to $4.8 million for the three months ended September 30, 2025 from $4.4 million for the three months ended September 30, 2024. The increase in revenue was primarily due to an increase in fiber optic revenue related to increased activity, partially offset by a 7% decrease in billable engineering hours.

Previous wording

Natural Sand Proppant Services. Natural sand proppant services revenue increased $0.7 million, or 15%, to $5.4 million for the three months ended June 30, 2025 from $4.7 million for the three months ended June 30, 2024 primarily due to a 72% increase in tons of sand sold from 140,615 tons for the three months ended June 30, 2024 to 241,763 tons for the three months ended June 30, 2025. This was partially offset by a 6% decline in the average price per ton of sand sold from $22.73 per ton during the three months ended June 30, 2024 to $21.41 per ton during the three months ended June 30, 2025. Additionally, the three months ended June 30, 2024 included shortfall revenue of $1.1 million compared to none for the three months ended June 30, 2025.

Current wording

Natural Sand Proppant Services. Natural sand proppant services revenue decreased $2.2 million, or 45%, to $2.7 million for the three months ended September 30, 2025 from $4.9 million for the three months ended September 30, 2024 primarily due to a 25% decrease in tons of sand sold from 163,297 tons for the three months ended September 30, 2024 to 122,161 tons for the three months ended September 30, 2025, combined with a 20% decline in the average price per ton of sand sold from $22.89 per ton during the three months ended September 30, 2024 to $18.26 per ton during the three months ended September 30, 2025. Additionally, the three months ended September 30, 2024 included shortfall revenue of $1.2 million compared to none for the three months ended September 30, 2025.

Previous wording

Accommodation Services. Accommodation services revenue decreased $0.9 million, or 33%, to $1.8 million for the three months ended June 30, 2025 from $2.7 million for the three months ended June 30, 2024 primarily due to a decline in utilization. On average, 145 rooms were utilized during the three months ended June 30, 2025 as compared to 212 for the three months ended June 30, 2024 for our accommodation services.

Current wording

Accommodation Services. Accommodation services revenue decreased $0.6 million, or 21%, to $2.3 million for the three months ended September 30, 2025 from $2.9 million for the three months ended September 30, 2024 primarily due to a decline in utilization. On average, 185 rooms were utilized during the three months ended September 30, 2025 as compared to 222 for the three months ended September 30, 2024 for our accommodation services.

Previous wording

Other Services. Other services revenue declined $1.7 million during the three months ended June 30, 2025. This activity primarily related to our water transfer services, which were shut down during the third quarter of 2024.

Current wording

Other Services. Other services revenue declined $1.2 million during the three months ended September 30, 2025. This activity primarily related to our water transfer services, which were shut down during the third quarter of 2024.

Previous wording

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, decreased $0.3 million from $14.3 million, or 89% of total revenue, for the three months ended June 30, 2024 to $14.0 million, or 85% of total revenue, for the three months ended June 30, 2025. Cost of revenue by segment was as follows:

Current wording

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, increased $0.6 million from $13.4 million, or 78% of total revenue, for the three months ended September 30, 2024 to $14.0 million, or 95% of total revenue, for the three months ended September 30, 2025. Cost of revenue by segment was as follows:

Previous wording

Rental Services. Rental services cost of revenue, exclusive of depreciation and amortization, increased $0.4 million, or 33%, to $1.6 million for the three months ended June 30, 2025 from $1.2 million for the three months ended June 30, 2024, primarily due to an increase in utilization and the expansion of our aviation equipment offerings. As a percentage of revenue, our rental services cost of revenue, exclusive of depreciation and amortization of $0.9 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively, was 52% and 67% for the three months ended June 30, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an increase in utilization.

Current wording

Rental Services. Rental services cost of revenue, exclusive of depreciation and amortization, increased $0.4 million, or 31%, to $1.7 million for the three months ended September 30, 2025 from $1.3 million for the three months ended September 30, 2024, primarily due to an increase in utilization and the expansion of our aviation equipment offerings. As a percentage of revenue, our rental services cost of revenue, exclusive of depreciation and amortization of $1.0 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, was 61% and 58% for the three months ended September 30, 2025 and 2024, respectively. The increase as a percentage of revenue is primarily due to an increase in repairs and maintenance expense, partially offset by an increase in utilization.

Previous wording

Accommodation Services. Accommodation services cost of revenue, exclusive of depreciation and accretion, decreased $0.3 million, or 20%, to $1.2 million for the three months ended June 30, 2025 from $1.5 million for the three months ended June 30, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion of $0.3 million for the three months ended June 30, 2025 and 2024, was 67% and 56% for the three months ended June 30, 2025 and 2024, respectively. The increase as a percentage of revenue is primarily due to a decline in utilization, resulting in a higher ratio of fixed costs to variable costs.

Current wording

Accommodation Services. Accommodation services cost of revenue, exclusive of depreciation and accretion, decreased $0.3 million, or 18%, to $1.4 million for the three months ended September 30, 2025 from $1.7 million for the three months ended September 30, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion of $0.3 million for the three months ended September 30, 2025 and 2024, was 61% and 59% for the three months ended September 30, 2025 and 2024, respectively. The increase as a percentage of revenue is primarily due to a decline in utilization, resulting in a higher ratio of fixed costs to variable costs.

Previous wording

Drilling Services. Drilling services cost of revenue, exclusive of depreciation, decreased $0.2 million, or 20%, to $0.8 million for the three months ended June 30, 2025 from $1.0 million for the three months ended June 30, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation of nominal amounts for the three months ended June 30, 2025 and 2024, was 114% and 143% for the three months ended June 30, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an improvement in pricing.

Current wording

Drilling Services. Drilling services cost of revenue, exclusive of depreciation, increased $0.4 million, or 29%, to $1.8 million for the three months ended September 30, 2025 from $1.4 million for the three months ended September 30, 2024. As a percentage of revenue, cost of revenue, exclusive of depreciation of nominal amounts for the three months ended September 30, 2025 and 2024, was 78% and 88% for the three months ended September 30, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an improvement in pricing.

Previous wording

Other. Other services cost of revenue, exclusive of depreciation, decreased $1.4 million to $0.9 million for the three months ended June 30, 2025 from $2.3 million for the three months ended June 30, 2024. The decline is primarily due to the shut down of our water transfer service offerings during the third quarter of 2024. Costs for the three months ended June 30, 2025 primarily relate to insurance and facilities expense for the legacy assets.

Current wording

Other Services. Other services cost of revenue, exclusive of depreciation, decreased $2.1 million to $0.2 million for the three months ended September 30, 2025 from $2.3 million for the three months ended September 30, 2024. The decline is primarily due to the shut down of our water transfer service offerings during the third quarter of 2024. Costs for the three months ended September 30, 2025 primarily relate to insurance and facilities expense for the legacy assets.

Previous wording

Selling, General and Administrative. Selling, general and administrative, or SG&A, represent the costs associated with managing and supporting our operations. SG&A decreased $90.0 million to $5.3 million for the three months ended June 30, 2025 from $95.3 million for the three months ended June 30, 2024. The decline is primarily due to an $89.2 million charge in relation to the Settlement Agreement with PREPA during the three months ended June 30, 2024 with no similar activity in 2025.

Current wording

Selling, General and Administrative. Selling, general and administrative, or SG&A, represent the costs associated with managing and supporting our operations. SG&A decreased $1.6 million to $5.2 million for the three months ended September 30, 2025 from $6.8 million for the three months ended September 30, 2024. The decrease is primarily due to a decrease in legal fees.

Previous wording

Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion totaled $2.8 million for the three months ended June 30, 2025 compared to $2.9 million for the three months ended June 30, 2024. The decrease is primarily attributable to a decline in property, plant and equipment depreciation as a result of existing assets being fully depreciated during or after the three months ended June 30, 2024, partially offset by an increase in depletion expense.

Current wording

Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion totaled $2.8 million for the three months ended September 30, 2025 compared to $3.2 million for the three months ended September 30, 2024. The decrease is primarily attributable to a decline in property, plant and equipment depreciation as a result of existing assets being fully depreciated during or after the three months ended September 30, 2024, partially offset by an increase in depletion expense.

Previous wording

Operating Loss. We reported operating loss of $36.4 million for the three months ended June 30, 2025 compared to operating loss of $96.0 million for the three months ended June 30, 2024. The decrease in operating loss is primarily due to an $89.2 million charge to selling, general and administrative expenses recognized during the three months ended June 30, 2024 in relation to the Settlement Agreement with PREPA, partially offset by $31.7 million in impairment expense recognized during the three months ended June 30, 2025.

Current wording

Operating Loss. We reported operating loss of $9.0 million for the three months ended September 30, 2025 compared to operating loss of $6.1 million for the three months ended September 30, 2024. The increase in operating loss is primarily due to a decline in activity for our natural sand proppant and accommodation services.

Previous wording

Interest Income (Expense and Financing Charges), Net. Interest income, net of interest expense and financing charges was $0.4 million for the three months ended June 30, 2025 compared to interest expense and financing charges, net of $1.0 million for the three months ended June 30, 2024. The decline in interest expense is primarily due to the payoff of our long-term debt in 2024.

Current wording

Interest Income (Expense and Financing Charges), Net. Interest income, net of interest expense and financing charges was $0.9 million for the three months ended September 30, 2025 compared to interest expense and financing charges, net of $1.1 million for the three months ended September 30, 2024. The decrease is primarily due to the decrease in interest expense due to the payoff of our long-term debt in 2024.

Previous wording

Provision for Income Taxes. We recorded income tax benefit of $0.9 million on pre-tax loss of $36.6 million for the three months ended June 30, 2025 compared to income tax benefit of $15.1 million on pre-tax loss of $170.7 million for the three months ended June 30, 2024. Our effective tax rates were 2.6% and 8.9% for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate for the six months ended June 30, 2025 differed from the statutory rate of 21% primarily due to changes in the valuation allowance and interest and penalties recognized during the period. The effective tax rate for the six months ended June 30, 2024 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico as well as changes in the valuation allowance. Additionally, as a result of the Settlement Agreement with PREPA, during the three months ended June 30, 2024, the Company reversed $19.9 million in withholding tax accruals related to undistributed earnings from Puerto Rico.

Current wording

Provision for Income Taxes. We recorded income tax expense of $2.1 million on pre-tax loss of $9.9 million for the three months ended September 30, 2025 compared to income tax expense of $0.6 million on pre-tax loss of $8.3 million for the three months ended September 30, 2024. Our effective tax rates were (21.6)% and (6.8)% for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate for the three months ended September 30, 2025 differed from the statutory rate of 21% primarily due to changes in the valuation allowance and interest and penalties recognized during the period. The effective tax rate for the three months ended September 30, 2024 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico as well as changes in the valuation allowance.

Previous wording

Discontinued Operations. We recorded net income from discontinued operations, net of income taxes totaling $44.5 million during the three months ended June 30, 2025 compared to a net loss from discontinued operations, net of income taxes of $0.4 million for the three months ended June 30, 2024. See Note 3 of the notes to our unaudited condensed consolidated financial statements for a breakout of the results of operations for our discontinued operations.

Current wording

Discontinued Operations. We recorded net loss from discontinued operations, net of income taxes totaling $0.6 million during the three months ended September 30, 2025 compared to a net loss from discontinued operations, net of income taxes of $15.2 million for the three months ended September 30, 2024. See Note 3 of the notes to our unaudited condensed consolidated financial statements for a breakout of the results of operations for our discontinued operations.

Previous wording

Revenue. Revenue for the six months ended June 30, 2025 increased $0.6 million, or 2%, to $32.0 million from $31.4 million for the six months ended June 30, 2024. The increase in total revenue is primarily attributable to increases in rental services and natural sand proppant services revenue, partially offset by declines in accommodation services and other services revenue. Revenue by segments was as follows:

Current wording

Revenue. Revenue for the nine months ended September 30, 2025 decreased $1.6 million, or 3%, to $46.8 million from $48.4 million for the nine months ended September 30, 2024. The decrease in total revenue is primarily attributable to decreases in accommodations services and other services revenue, partially offset by increases in rental services, infrastructure services and natural sand proppant services revenue. Revenue by segments was as follows:

Previous wording

Rental Services. Rental services revenue increased $1.3 million, or 72%, to $3.1 million for the three months ended June 30, 2025 from $1.8 million for the three months ended June 30, 2024. The increase in our rental services revenue was primarily driven by a 33% increase in the average number of pieces of equipment rented to customers from 223 for the three months ended June 30, 2024 to 296 for the three months ended June 30, 2025 as well as the expansion of our aviation equipment offerings.

Current wording

Rental Services. Rental services revenue increased $1.9 million, or 32%, to $7.8 million for the nine months ended September 30, 2025 from $5.9 million for the nine months ended September 30, 2024. The increase in our rental services revenue was primarily attributable to an increase in aviation rental revenue of $1.6 million coupled with an increase in equipment rental revenue of $0.4 million. The increase in our equipment rental revenue was driven by a 19% increase in the average number of pieces of equipment rented to customers from 228 for the nine months ended September 30, 2024 to 271 for the nine months ended September 30, 2025.

Previous wording

Infrastructure Services. Infrastructure services revenue increased $0.5 million, or 5%, to $10.1 million for the six months ended June 30, 2025 from $9.6 million for the six months ended June 30, 2024. The increase in revenue was primarily due to an increase in fiber optic revenue related to increased activity, partially offset by a 4% decrease in billable engineering hours.

Current wording

Infrastructure Services. Infrastructure services revenue increased $0.9 million, or 6%, to $14.9 million for the nine months ended September 30, 2025 from $14.0 million for the nine months ended September 30, 2024. The increase in revenue was primarily due to an increase in fiber optic revenue related to increased activity, partially offset by a 3% decrease in utilization.

Previous wording

Natural Sand Proppant Services. Natural sand proppant services revenue increased $3.1 million, or 34%, to $12.1 million for the six months ended June 30, 2025, from $9.0 million for the six months ended June 30, 2024. The increase in our natural sand proppant services revenue was primarily due to a 50% increase in tons of sand sold from approximately 286,277 tons for the six months ended June 30, 2024 to approximately 430,783 tons for the six months ended June 30, 2025, partially offset by a 9% decrease in the average sales price per ton of sand sold from $23.57 per ton during the six months ended June 30, 2024 to $21.44 per ton during the six months ended June 30, 2025.

Current wording

Natural Sand Proppant Services. Natural sand proppant services revenue increased $0.9 million, or 6%, to $14.8 million for the nine months ended September 30, 2025 from $13.9 million for the nine months ended September 30, 2024. The increase in our natural sand proppant services revenue was primarily due to a 23% increase in tons of sand sold from approximately 449,574 tons for the nine months ended September 30, 2024 to approximately 552,944 tons for the nine months ended September 30, 2025, partially offset by a 11% decrease in the average sales price per ton of sand sold from $23.32 per ton during the nine months ended September 30, 2024 to $20.74 per ton during the nine months ended September 30, 2025.

Previous wording

Accommodation Services. Accommodation services revenue decreased $1.8 million, or 32%, to $3.8 million for the six months ended June 30, 2025, from $5.6 million for the six months ended June 30, 2024 primarily due to a decline in utilization. On average, 162 rooms were utilized during the six months ended June 30, 2025 as compared to 222 for the six months ended June 30, 2024 for our accommodation services.

Current wording

Accommodation Services. Accommodation services revenue decreased $2.4 million, or 28%, to $6.1 million for the nine months ended September 30, 2025, from $8.5 million for the nine months ended September 30, 2024 primarily due to a decline in utilization. On average, 170 rooms were utilized during the nine months ended September 30, 2025 as compared to 222 for the nine months ended September 30, 2024 for our accommodation services.

Previous wording

Drilling Services. Drilling services revenue decreased $0.3 million, or 25%, to $0.9 million for the six months ended June 30, 2025, from $1.2 million for the six months ended June 30, 2024. The decrease in our drilling services revenue was primarily attributable to decreased utilization, which was partially offset by an increase in the average dayrate.

Current wording

Drilling Services. Drilling services revenue increased $0.4 million, or 14%, to $3.2 million for the nine months ended September 30, 2025, from $2.8 million for the nine months ended September 30, 2024. The increase in our drilling services revenue was primarily attributable to an increase in the average dayrate, which was partially offset by a decrease in utilization.

Previous wording

Other Services. Other services revenue declined $2.4 million during the six months ended June 30, 2025. This activity primarily related to our water transfer services, which were shut down during the third quarter of 2024.

Current wording

Other Services. Other services revenue declined $3.7 million during the nine months ended September 30, 2025. This activity primarily related to our water transfer services, which were shut down during the third quarter of 2024.

Previous wording

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, decreased $2.4 million from $29.4 million, or 94% of total revenue, for the six months ended June 30, 2024 to $27.0 million, or 84% of total revenue, for the six months ended June 30, 2025. Cost of revenue by segment was as follows:

Current wording

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion). Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, decreased $1.7 million from $42.8 million, or 88% of total revenue, for the nine months ended September 30, 2024 to $41.1 million, or 88% of total revenue, for the nine months ended September 30, 2025. Cost of revenue by segment was as follows:

Previous wording

Rental Services. Rental services cost of revenue, exclusive of depreciation and amortization, increased $0.4 million, or 15%, to $3.0 million for the six months ended June 30, 2025 from $2.6 million for the six months ended June 30, 2024. As a percentage of revenue, our rental services cost of revenue, exclusive of depreciation and amortization expense of $1.1 million and $0.7 million for the six months ended June 30, 2025 and 2024, respectively, was 60% and 70% for the six months ended June 30, 2025 and 2024, respectively. The increase as a percentage of revenue is primarily due to a increase in utilization.

Current wording

Rental Services. Rental services cost of revenue, exclusive of depreciation and amortization, increased $0.8 million, or 21%, to $4.7 million for the nine months ended September 30, 2025 from $3.9 million for the nine months ended September 30, 2024. As a percentage of revenue, our rental services cost of revenue, exclusive of depreciation and amortization of $2.1 million and $0.9 million for the nine months ended September 30, 2025 and 2024, respectively, was 60% and 66% for the nine months ended September 30, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an increase in utilization, combined with the investment in aviation assets, which produces a higher gross margin percentage.

Previous wording

Accommodation Services. Accommodation services cost of revenue, exclusive of depreciation and accretion, decreased $0.6 million, or 18%, from $3.3 million for the six months ended June 30, 2024 to $2.7 million for the six months ended June 30, 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion expense of $0.5 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively, was 71% and

Current wording

Accommodation Services. Accommodation services cost of revenue, exclusive of depreciation and accretion, decreased $0.9 million, or 18%, from $5.0 million for the nine months ended September 30, 2024 to $4.1 million for the nine months ended September 30, 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion of $0.8 million and $0.9 million for the nine months ended September 30, 2025 and 2024, respectively, was 67% and 59% for the nine months ended September 30, 2025 and 2024, respectively. The increase as a percentage of revenue is primarily due to a decline in utilization, resulting in a higher ratio of fixed costs to variable costs.

Previous wording

Drilling Services. Drilling services cost of revenue, exclusive of depreciation, decreased $0.8 million, or 40%, from $2.0 million for the six months ended June 30, 2024 to $1.2 million for the six months ended June 30, 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation expense of $0.1 million for the six months ended June 30, 2025 and 2024, was 133% and 167% for the six months ended June 30, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an improvement in pricing.

Current wording

Drilling Services. Drilling services cost of revenue, exclusive of depreciation, decreased $0.3 million, or 9%, from $3.3 million for the nine months ended September 30, 2024 to $3.0 million for the nine months ended September 30, 2025. As a percentage of revenue, cost of revenue, exclusive of depreciation of $0.1 million for the nine months ended September 30, 2025 and 2024, was 94% and 118% for the nine months ended September 30, 2025 and 2024, respectively. The decrease as a percentage of revenue is primarily due to an improvement in pricing.

Previous wording

Other Services. Other services cost of revenue, exclusive of depreciation, decreased $2.4 million to $1.4 million for the three months ended June 30, 2025 from $3.8 million for the three months ended June 30, 2024. The decline is primarily due to the shut down of our water transfer service offerings during the third quarter of 2024. Costs for the six months ended June 30, 2025 primarily relate to insurance and facilities expense for the legacy assets.

Current wording

Other Services. Other services cost of revenue, exclusive of depreciation, decreased $4.5 million to $1.6 million for the nine months ended September 30, 2025 from $6.1 million for the nine months ended September 30, 2024. The decline is primarily due to the shut down of our water transfer service offerings during the third quarter of 2024. Costs for the nine months ended September 30, 2025 primarily relate to insurance and facilities expense for the legacy assets.

Previous wording

Selling, General and Administrative. Selling, general and administrative represent the costs associated with managing and supporting our operations. SG&A decreased $92.3 million to $9.8 million for the six months ended June 30, 2025 from $102.1 million for the six months ended June 30, 2024. The decline is primarily due to an $89.2 million charge in relation to the Settlement Agreement with PREPA during the six months ended June 30, 2024 with no similar activity in 2025.

Current wording

Selling, General and Administrative. Selling, general and administrative represent the costs associated with managing and supporting our operations. SG&A decreased $93.8 million to $15.0 million for the nine months ended September 30, 2025 from $108.8 million for the nine months ended September 30, 2024. The decline is primarily due to an $89.2 million charge in relation to the Settlement Agreement with PREPA during the nine months ended September 30, 2024 with no similar activity in 2025.

Previous wording

Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion decreased $1.3 million to $4.9 million for the six months ended June 30, 2025 from $6.2 million for the six months ended June 30, 2024. The decrease is primarily attributable to a decline in property, plant and equipment depreciation as a result of lower capital expenditures and existing assets being fully depreciated during or after the six months ended June 30, 2024.

Current wording

Depreciation, Depletion, Amortization and Accretion. Depreciation, depletion, amortization and accretion decreased $1.7 million to $7.7 million for the nine months ended September 30, 2025 from $9.4 million for the nine months ended September 30, 2024. The decrease is primarily attributable to a decline in property, plant and equipment depreciation as a result of existing assets being fully depreciated during or after the nine months ended September 30, 2024.

Previous wording

Gains on Disposal of Assets, Net. Gains on the disposal of assets were $4.5 million and $1.4 million for the six months ended June 30, 2025 and 2024, respectively. The assets sold primarily related to our legacy services that are no longer in operation.

Current wording

Gains on Disposal of Assets, Net. Gains on the disposal of assets were $2.7 million and $1.6 million for the nine months ended September 30, 2025 and 2024, respectively. The assets sold primarily related to our underutilized assets.

Previous wording

Impairment of Long-Lived Assets. During the three months ended June 30, 2025, the Company’s management made the decision to market assets related to is natural sand proppant operations at its Piranha Proppant LLC and Muskie Proppant LLC processing plants. As a result, the Company recognized impairment expense on these assets totaling $31.7 million during the three months ended June 30, 2025. There was no similar activity during the three months ended June 30, 2024.

Current wording

Impairment of Long-Lived Assets. During the nine months ended September 30, 2025, the Company’s management made the decision to market assets related to is natural sand proppant operations at its Piranha Proppant LLC and Muskie Proppant LLC processing plants. As a result, the Company recognized impairment expense on these assets totaling $31.7 million during the nine months ended September 30, 2025. There was no similar activity during the nine months ended September 30, 2024.

Previous wording

Operating Loss. We reported an operating loss of $36.9 million for the six months ended June 30, 2025 compared to $104.8 million for the six months ended June 30, 2024. The decreased operating loss was primarily due to an $89.2 million charge to selling, general and administrative recognized during the six months ended June 30, 2024 in relation to the Settlement Agreement with PREPA, partially offset by $31.7 million in impairment expense recognized during the six months ended June 30, 2025.

Current wording

Operating Loss. We reported an operating loss of $45.9 million for the nine months ended September 30, 2025 compared to $111.0 million for the nine months ended September 30, 2024. The decreased operating loss was primarily due to an $89.2 million charge to selling, general and administrative recognized during the nine months ended September 30, 2024 in relation to the Settlement Agreement with PREPA, partially offset by $31.7 million in impairment expense recognized during the nine months ended September 30, 2025.

Previous wording

Interest Income (Expense and Financing Charges), Net. Interest income, net of interest expense and financing charges was $0.5 million for the six months ended June 30, 2025 compared to interest expense and financing charges, net of $7.6 million for the six months ended June 30, 2024. The increase is primarily due to a $5.5 million financing charge incurred in relation to the Assignment Agreement with SPCP Group coupled with a decline in interest expense on long term debt. See “—Liquidity and Capital Resources—Cobra Assignment Agreement” for additional information.

Current wording

Interest Income (Expense and Financing Charges), Net. Interest income, net of interest expense and financing charges was $1.4 million for the nine months ended September 30, 2025 compared to interest expense and financing charges, net of $8.7 million for the nine months ended September 30, 2024. The increase is primarily due to a $5.5 million financing charge incurred during the nine months ended September 30, 2024 in relation to the Assignment Agreement with SPCP Group coupled with a decline in interest expense on long term debt. See “—Liquidity and Capital Resources—Cobra Assignment Agreement” for additional information.

Previous wording

Other Income (Expense), Net. We recognized other expense of $1.0 million during the six months ended June 30, 2025 compared to other expense of $63.5 million for the six months ended June 30, 2024. We recognized a net charge to interest on delinquent accounts receivable totaling $60.7 million during the three months ended June 30, 2024 related to the Settlement Agreement with PREPA with no similar activity during the three months ended June 30, 2025.

Current wording

Other Income (Expense), Net. We recognized other expense, net of $2.8 million during the nine months ended September 30, 2025 compared to other expense, net of $64.6 million for the nine months ended September 30, 2024. We recognized a net charge to interest on delinquent accounts receivable totaling $60.7 million during the nine months ended September 30, 2024 related to the Settlement Agreement with PREPA with no similar activity during the nine months ended September 30, 2025.

Previous wording

Provision (Benefit) for Income Taxes. We recorded income tax benefit of $0.1 million on pre-tax loss of $37.4 million for the six months ended June 30, 2025 compared to an income tax benefit of $13.3 million on pre-tax loss of $176.0 million for the six months ended June 30, 2024. Our effective tax rate for the six months ended June 30, 2025 differed from the statutory rate of 21% primarily due to changes in the valuation allowance and interest and penalties recognized during the period. Our effective tax rate for the six months ended June 30, 2024 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico, changes in the valuation allowance and interest and penalties. Additionally, as a result of the Settlement Agreement with PREPA, during the six months ended June 30, 2025, we reversed $19.9 million in withholding tax accruals related to undistributed earnings from Puerto Rico.

Current wording

Provision (Benefit) for Income Taxes. We recorded income tax expense of $2.0 million on pre-tax loss of $47.3 million for the nine months ended September 30, 2025 compared to an income tax benefit of $12.7 million on pre-tax loss of $184.3 million for the nine months ended September 30, 2024. Our effective tax rate for the nine months ended September 30, 2025 differed from the statutory rate of 21% primarily due to changes in the valuation allowance and interest and penalties recognized during the period. Our effective tax rate for the nine months ended September 30, 2024 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico, changes in the valuation allowance and interest and penalties. Additionally, as a result of the Settlement Agreement with PREPA, during the nine months ended September 30, 2024, we reversed $19.9 million in withholding tax accruals related to undistributed earnings from Puerto Rico.

Previous wording

Discontinued Operations. We recorded net income from discontinued operations, net of income taxes totaling $45.6 million during the six months ended June 30, 2025 compared to net loss from discontinued operations, net of income taxes of $5.1 million for the six months ended June 30, 2024. See Note 3 of the notes to our unaudited condensed consolidated financial statements for a breakout of the results of operations for our discontinued operations.

Current wording

Discontinued Operations. We recorded net income from discontinued operations, net of income taxes totaling $45.0 million during the nine months ended September 30, 2025 compared to net loss from discontinued operations, net of income taxes of $20.3 million for the nine months ended September 30, 2024. See Note 3 of the notes to our unaudited condensed consolidated financial statements for a breakout of the results of operations for our discontinued operations.