OIL STATES INTERNATIONAL, INC 10-Q

ITEM 1. Financial Statements UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Products $ 107,342 $ 108,579 $ 207,893 $ 202,908 Services 58,064 77,804 117,451 150,737 165,406 186,383 325,344 353,645 Costs and expenses: Product costs 83,936 82,503 164,265 157,640 Service costs 41,404 59,530 83,752 116,344 Cost of revenues (exclusive of depreciation and amortization expense presented below) 125,340 142,033 248,017 273,984 Selling, general and administrative expense 22,981 26,373 45,511 48,869 Depreciation and amortization expense 11,898 14,698 23,923 28,893 Impairment of goodwill — — — 10,000 Impairments of operating lease assets 1,358 — 1,358 — Other operating (income) expense, net ( 1,448 ) 1,234 ( 4,381 ) 1,031 160,129 184,338 314,428 362,777 Operating income (loss) 5,277 2,045 10,916 ( 9,132 ) Interest expense, net ( 1,692 ) ( 2,061 ) ( 3,270 ) ( 4,162 ) Other income, net 636 652 774 580 Income (loss) before income taxes 4,221 636 8,420 ( 12,714 ) Income tax benefit (provision) ( 1,410 ) 665 ( 2,451 ) 641 Net income (loss) $ 2,811 $ 1,301 $ 5,969 $ ( 12,073 ) Net income (loss) per share: Basic $ 0.05 $ 0.02 $ 0.10 $ ( 0.19 ) Diluted 0.05 0.02 0.10 ( 0.19 ) Weighted average number of common shares outstanding: Basic 59,154 62,483 59,661 62,493 Diluted 59,154 62,704 59,661 62,493 The accompanying notes are an integral part of these financial statements. 3 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In Thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ 2,811 $ 1,301 $ 5,969 $ ( 12,073 ) Other comprehensive income (loss): Currency translation adjustments 9,092 ( 3,151 ) 14,631 ( 6,178 ) Comprehensive income (loss) $ 11,903 $ ( 1,850 ) $ 20,600 $ ( 18,251 ) The accompanying notes are an integral part of these financial statements. 4 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Amounts) June 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 53,858 $ 65,363 Accounts receivable, net 196,706 194,336 Inventories, net 216,430 214,836 Prepaid expenses and other current assets 20,660 23,691 Total current assets 487,654 498,226 Property, plant, and equipment, net 273,674 266,871 Operating lease assets, net 17,799 19,537 Goodwill, net 70,751 69,709 Other intangible assets, net 118,714 125,862 Other noncurrent assets 25,153 24,903 Total assets $ 993,745 $ 1,005,108 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 108,813 $ 633 Accounts payable 57,579 57,708 Accrued liabilities 35,351 36,861 Current operating lease liabilities 7,689 7,284 Income taxes payable 712 2,818 Deferred revenue 50,307 52,399 Total current liabilities 260,451 157,703 Long-term debt 1,916 124,654 Long-term operating lease liabilities 15,772 17,989 Deferred income taxes 6,534 5,350 Other noncurrent liabilities 18,434 18,758 Total liabilities 303,107 324,454 Stockholders’ equity: Common stock, $ .01 par value, 200,000,000 shares authorized, 80,623,166 shares and 78,605,848 shares issued, respectively 806 786 Additional paid-in capital 1,141,788 1,137,949 Retained earnings 279,629 273,660 Accumulated other comprehensive loss ( 64,901 ) ( 79,532 ) Treasury stock, at cost, 20,013,495 and 17,112,853 shares, respectively ( 666,684 ) ( 652,209 ) Total stockholders’ equity 690,638 680,654 Total liabilities and stockholders’ equity $ 993,745 $ 1,005,108 The accompanying notes are an integral part of these financial statements. 5 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In Thousands) Three Months Ended June 30, 2025 Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders’ Equity Balance, March 31, 2025 $ 805 $ 1,139,768 $ 276,818 $ ( 73,993 ) $ ( 659,987 ) $ 683,411 Net income — — 2,811 — — 2,811 Currency translation adjustments (excluding intercompany advances) — — — 7,205 — 7,205 Currency translation adjustments on intercompany advances — — — 1,887 — 1,887 Stock-based compensation expense 1 2,020 — — — 2,021 Surrender of stock to settle taxes on stock awards — — — — — — Stock repurchases — — — — ( 6,697 ) ( 6,697 ) Balance, June 30, 2025 $ 806 $ 1,141,788 $ 279,629 $ ( 64,901 ) $ ( 666,684 ) $ 690,638 Six Months Ended June 30, 2025 Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders' Equity Balance, December 31, 2024 $ 786 $ 1,137,949 $ 273,660 $ ( 79,532 ) $ ( 652,209 ) $ 680,654 Net income — — 5,969 — — 5,969 Currency translation adjustments (excluding intercompany advances) — — — 10,541 — 10,541 Currency translation adjustments on intercompany advances — — — 4,090 — 4,090 Stock-based compensation expense 20 3,839 — — — 3,859 Surrender of stock to settle taxes on stock awards — — — — ( 2,432 ) ( 2,432 ) Stock repurchases — — — — ( 12,043 ) ( 12,043 ) Balance, June 30, 2025 $ 806 $ 1,141,788 $ 279,629 $ ( 64,901 ) $ ( 666,684 ) $ 690,638 The accompanying notes are an integral part of these financial statements. 6 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In Thousands) Three Months Ended June 30, 2024 Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders’ Equity Balance, March 31, 2024 $ 785 $ 1,130,979 $ 271,544 $ ( 73,011 ) $ ( 637,979 ) $ 692,318 Net income — — 1,301 — — 1,301 Currency translation adjustments (excluding intercompany advances) — — — ( 79 ) — ( 79 ) Currency translation adjustments on intercompany advances — — — ( 3,072 ) — ( 3,072 ) Stock-based compensation expense 1 2,303 — — — 2,304 Surrender of stock to settle taxes on stock awards — — — — ( 9 ) ( 9 ) Stock repurchases — — — — ( 2,374 ) ( 2,374 ) Balance, June 30, 2024 $ 786 $ 1,133,282 $ 272,845 $ ( 76,162 ) $ ( 640,362 ) $ 690,389 Six Months Ended June 30, 2024 Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders’ Equity Balance, December 31, 2023 $ 772 $ 1,129,240 $ 284,918 $ ( 69,984 ) $ ( 635,401 ) $ 709,545 Net loss — — ( 12,073 ) — — ( 12,073 ) Currency translation adjustments (excluding intercompany advances) — — — ( 974 ) — ( 974 ) Currency translation adjustments on intercompany advances — — — ( 5,204 ) — ( 5,204 ) Stock-based compensation expense 14 4,042 — — — 4,056 Surrender of stock to settle taxes on stock awards — — — — ( 2,587 ) ( 2,587 ) Stock repurchases — — — — ( 2,374 ) ( 2,374 ) Balance, June 30, 2024 $ 786 $ 1,133,282 $ 272,845 $ ( 76,162 ) $ ( 640,362 ) $ 690,389 The accompanying notes are an integral part of these financial statements. 7 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ 5,969 $ ( 12,073 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 23,923 28,893 Impairment of goodwill — 10,000 Impairments of operating lease assets 1,358 — Stock-based compensation expense 3,859 4,056 Amortization of deferred financing costs 660 841 Deferred income tax provision (benefit) 669 ( 2,299 ) Gains on disposals of assets ( 4,282 ) ( 1,355 ) Gains on extinguishment of convertible senior notes ( 381 ) ( 515 ) Other, net ( 1,423 ) ( 379 ) Changes in operating assets and liabilities, net of effect from acquired business: Accounts receivable 2,601 ( 2,335 ) Inventories 1,348 ( 16,436 ) Accounts payable and accrued liabilities ( 1,014 ) ( 9,504 ) Deferred revenue ( 2,092 ) ( 2,353 ) Other operating assets and liabilities, net ( 6,905 ) 2,341 Net cash flows provided by (used in) operating activities 24,290 ( 1,118 ) Cash flows from investing activities: Capital expenditures ( 19,480 ) ( 15,881 ) Proceeds from disposition of property and equipment 4,217 2,472 Proceeds from disposition of assets held for sale 8,409 10,279 Other, net ( 62 ) ( 68 ) Net cash flows used in investing activities ( 6,916 ) ( 3,198 ) Cash flows from financing activities: Revolving credit facility borrowings 204 22,619 Revolving credit facility repayments ( 204 ) ( 22,619 ) Purchases of 4.75 % convertible senior notes ( 14,284 ) ( 10,846 ) Other debt and finance lease repayments ( 344 ) ( 318 ) Payment of financing costs ( 7 ) ( 1,111 ) Purchases of treasury stock ( 12,043 ) ( 2,374 ) Shares added to treasury stock as a result of net share settlements due to vesting of stock awards ( 2,432 ) ( 2,587 ) Net cash flows used in financing activities ( 29,110 ) ( 17,236 ) Effect of exchange rate changes on cash and cash equivalents 231 ( 371 ) Net change in cash and cash equivalents ( 11,505 ) ( 21,923 ) Cash and cash equivalents, beginning of period 65,363 47,111 Cash and cash equivalents, end of period $ 53,858 $ 25,188 Cash paid for: Interest $ 3,628 $ 3,899 Income taxes, net 3,660 1,346 The accompanying notes are an integral part of these financial statements. 8 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Oil States International, Inc. and its subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial information. Certain information in footnote disclosures normally included with financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to these rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which the Company considers necessary for a fair statement of the results of operations for the interim periods covered and for the financial condition of the Company at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year. The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of such estimates include, but are not limited to, goodwill and long-lived asset impairments, revenue and income recognized over time, valuation allowances recorded on deferred tax assets, reserves on inventory, allowances for doubtful accounts, settlement of litigation and potential future adjustments related to contractual indemnification and other agreements. Actual results could materially differ from those estimates. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, which are adopted by the Company as of the specified effective date. Management believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. The financial statements included in this report should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2024. 2. Asset Impairments and Other Charges and Credits Management has implemented certain cost reduction actions including: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; reductions in the Company’s workforce in the United States; and the realignment in 2024 of operations within two of the Company’s reportable segments. The Company also incurred legal costs associated with patent defense and purchased a portion of its outstanding 4.75 % convertible senior notes (the “2026 Notes”) at a discount. As a result of these events, actions and assessments, the Company recorded the following charges and credits during the three and six months ended June 30, 2025 and 2024 (in thousands): Offshore Manufactured Products Completion and Production Services Downhole Technologies Corporate Total Three Months Ended June 30, 2025 Impairment of operating lease assets $ — $ 403 $ 955 $ — $ 1,358 Facility exit charges 273 1,776 252 — 2,301 Gains on extinguishment of debt — — — ( 381 ) ( 381 ) Pre-tax totals $ 273 $ 2,179 $ 1,207 $ ( 381 ) 3,278 Income tax benefit 688 After-tax total $ 2,590 Six Months Ended June 30, 2025 Impairment of operating lease assets $ — $ 403 $ 955 $ — $ 1,358 Facility exit charges 273 2,706 252 — 3,231 Gains on extinguishment of debt — — — ( 381 ) ( 381 ) Pre-tax totals $ 273 $ 3,109 $ 1,207 $ ( 381 ) 4,208 Income tax benefit 884 After-tax total $ 3,324 9 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Offshore Manufactured Products Completion and Production Services Downhole Technologies Corporate Total Three Months Ended June 30, 2024 Impairment of goodwill $ — $ — $ — $ — $ — Facility consolidation and other charges 1,547 1,916 — — 3,463 Patent defense costs — 963 — — 963 Gains on extinguishment of debt — — — ( 515 ) ( 515 ) Pre-tax totals $ 1,547 $ 2,879 $ — $ ( 515 ) 3,911 Income tax benefit 821 After-tax total $ 3,090 Six Months Ended June 30, 2024 Impairment of goodwill $ — $ — $ 10,000 $ — $ 10,000 Facility consolidation and other charges 3,010 2,601 — — 5,611 Patent defense costs — 1,324 — — 1,324 Gains on extinguishment of debt — — — ( 515 ) ( 515 ) Pre-tax totals $ 3,010 3,925 10,000 $ ( 515 ) 16,420 Income tax benefit 1,829 After-tax total $ 14,591 Goodwill The Company’s remaining goodwill exists in the Offshore Manufactured Products segment, totaling $ 70.8 million and $ 69.7 million, respectively, as of June 30, 2025 and December 31, 2024. The Company does not amortize goodwill, but rather assesses goodwill for impairment annually and when an event occurs or circumstances change that indicate the carrying amounts may not be recoverable. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired and an impairment loss is recorded. Management uses a combination of valuation methodologies including the income approach and guideline public company comparables. The fair values of each of the Company’s reporting units were determined using significant unobservable inputs (Level 3 fair value measurements). The income approach estimates fair value by discounting the Company’s forecasts of future cash flows by a discount rate (expected return) that a market participant is expected to require on its investment. Significant assumptions and estimates used in the income approach include, among others, estimated future net annual cash flows and discount rates for each reporting unit, current and anticipated market conditions, estimated growth rates and historical data. These estimates rely upon significant management judgment. In the first quarter of 2024, certain short-cycle, consumable product operations historically reported within the Offshore Manufactured Products segment (legacy frac plug and elastomer products) were integrated into the Downhole Technologies segment to better align with the underlying activity demand drivers and current segment management structure, as well as provide for additional operational synergies. In connection with this realignment, goodwill of $ 10.0 million was reassigned from the Offshore Manufactured Products segment to the Downhole Technologies segment based on estimated relative fair values. The Company performed an interim quantitative assessment of goodwill recorded within the Offshore Manufactured Products segment as of February 29, 2024 (prior to realignment) which indicated that the fair value of the reporting unit exceeded its carrying value. The Company also performed an interim quantitative assessment of goodwill transferred to the Downhole Technologies segment (subsequent to the realignment). This interim assessment indicated that the fair value of the reporting unit was less than its carrying amount and the Company concluded that goodwill reassigned to the Downhole Technologies business was fully impaired. The Company therefore recognized a non-cash goodwill impairment charge totaling $ 10.0 million in the first quarter of 2024. 10 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 3. Details of Selected Balance Sheet Accounts Additional information regarding selected balance sheet accounts as of June 30, 2025 and December 31, 2024 is presented below (in thousands): June 30, 2025 December 31, 2024 Accounts receivable, net: Trade $ 116,960 $ 128,167 Unbilled revenue 17,467 22,242 Contract assets 58,027 40,101 Other 7,252 6,440 Total accounts receivable 199,706 196,950 Allowance for doubtful accounts ( 3,000 ) ( 2,614 ) $ 196,706 $ 194,336 Allowance for doubtful accounts as a percentage of total accounts receivable 2 % 1 % June 30, 2025 December 31, 2024 Deferred revenue (contract liabilities) $ 50,307 $ 52,399 As of June 30, 2025, accounts receivable, net in the United States and the United Kingdom represented 58 % and 20 %, respectively, of the total. No other country or single customer accounted for more than 10% of the Company’s total accounts receivable as of June 30, 2025. For the six months ended June 30, 2025, the $ 17.9 million net increase in contract assets was primarily attributable to $ 38.3 million in revenue recognized during the period, which was partially offset by $ 20.4 million transferred to accounts receivable. Deferred revenue (contract liabilities) decreased by $ 2.1 million in the first six months of 2025, primarily reflecting the recognition of $ 23.7 million of revenue that was deferred at the beginning of the period, partially offset by $ 20.2 million in new customer billings which were not recognized as revenue during the period. The following provides a summary of activity in the allowance for doubtful accounts for the six months ended June 30, 2025 and 2024 (in thousands): Six Months Ended June 30, 2025 2024 Allowance for doubtful accounts – January 1 $ 2,614 $ 4,497 Provisions 99 135 Write-offs ( 42 ) ( 655 ) Other 329 ( 9 ) Allowance for doubtful accounts – June 30 $ 3,000 $ 3,968 June 30, 2025 December 31, 2024 Inventories, net: Finished goods and purchased products $ 111,022 $ 110,850 Work in process 36,342 34,539 Raw materials 106,765 108,421 Total inventories 254,129 253,810 Allowance for excess or obsolete inventory ( 37,699 ) ( 38,974 ) $ 216,430 $ 214,836 11 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) June 30, 2025 December 31, 2024 Property, plant and equipment, net: Property, plant and equipment $ 754,482 $ 734,548 Accumulated depreciation ( 480,808 ) ( 467,677 ) $ 273,674 $ 266,871 For the three months ended June 30, 2025 and 2024, depreciation expense was $ 8.1 million and $ 10.4 million, respectively. Depreciation expense was $ 16.4 million and $ 20.3 million, respectively, for the six months ended June 30, 2025 and 2024. June 30, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Customer relationships $ 123,132 $ 59,303 $ 63,829 $ 122,859 $ 55,534 $ 67,325 Patents/Technology/Know-how 70,437 42,315 28,122 70,206 39,699 30,507 Tradenames and other 47,758 20,995 26,763 47,729 19,699 28,030 $ 241,327 $ 122,613 $ 118,714 $ 240,794 $ 114,932 $ 125,862 For the three months ended June 30, 2025 and 2024, amortization expense was $ 3.8 million and $ 4.3 million, respectively. Amortization expense was $ 7.6 million and $ 8.5 million for the six months ended June 30, 2025 and 2024, respectively. June 30, 2025 December 31, 2024 Other noncurrent assets: Deferred compensation plan $ 18,076 $ 18,245 Deferred financing costs 1,350 1,619 Deferred income taxes 2,264 1,964 Other 3,463 3,075 $ 25,153 $ 24,903 June 30, 2025 December 31, 2024 Accrued liabilities: Accrued compensation $ 17,138 $ 22,350 Accrued taxes, other than income taxes 3,315 1,234 Insurance liabilities 3,303 3,383 Accrued interest 1,376 1,555 Accrued commissions 3,191 3,237 Other 7,028 5,102 $ 35,351 $ 36,861 12 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 4. Long-term Debt As of June 30, 2025 and December 31, 2024, long-term debt consisted of the following (in thousands): June 30, 2025 December 31, 2024 Revolving credit facility (1) $ — $ — 2026 Notes (2) 108,222 122,505 Other debt and finance lease obligations 2,507 2,782 Total debt 110,729 125,287 Less: Current portion ( 108,813 ) ( 633 ) Total long-term debt $ 1,916 $ 124,654 ____________________ (1) Unamortized deferred financing costs of $ 1.4 million and $ 1.6 million as of June 30, 2025 and December 31, 2024, respectively, are presented in other noncurrent assets. (2) The outstanding principal amount of the 2026 Notes was $ 108.8 million as of June 30, 2025 and $ 123.5 million as of December 31, 2024 . Revolving Credit Facility Through July 27, 2025 The Company has a senior secured credit facility, which provides for an asset-based revolving credit facility (the “ABL Facility”), under which credit availability is subject to a borrowing base calculation. The ABL Facility is governed by a credit agreement, with Wells Fargo Bank, National Association, as administrative agent and the lenders and other financial institutions from time to time party thereto (as amended, the “ABL Agreement”). The ABL Facility matures on February 16, 2028, with a springing maturity 91 days prior to the stated maturity of any outstanding indebtedness with an outstanding principal balance equal to or greater than $ 17.5 million. The ABL Agreement provides funding based on a borrowing base calculation that includes eligible U.S. customer accounts receivable and inventory and, prior to July 28, 2025, provided for aggregate lender commitments of $ 125.0 million, including a $ 50.0 million sub-limit for the issuance of letters of credit. Borrowings under the ABL Agreement are secured by a pledge of substantially all of the Company’s domestic assets (other than real property) and the stock of certain foreign subsidiaries. Borrowings under the ABL Agreement bear interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) (subject to a floor rate of 0 %) plus, prior to July 28, 2025, a margin of 2.75 % to 3.25 %, or at a base rate plus a margin of 1.75 % to 2.25 %, in each case based on average borrowing availability. Monthly, the Company must also pay a commitment fee of either 0.375 % or 0.50 % per annum, based on average unused commitments under the ABL Agreement. The ABL Agreement places restrictions on the Company’s ability to incur additional indebtedness, grant liens on assets, pay dividends or make distributions on equity interests, dispose of assets, make investments, repay other indebtedness (including the 2026 Notes discussed below), engage in mergers, and other matters, in each case, subject to certain exceptions. The ABL Agreement contains customary default provisions, which, if triggered, could result in acceleration of repayment of all amounts then outstanding. The ABL Agreement also requires the Company to satisfy and maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 (i) in the event that availability under the ABL Agreement is less than the greater of (a) 15 % of the “line cap” (which is the lesser of the maximum revolver amount and the borrowing base) and prior to July 28, 2025, (b) approximately $ 14.1 million; (ii) to complete certain specified transactions; or (iii) if an event of default has occurred and is continuing. As of June 30, 2025, the Company had no borrowings outstanding under the ABL Agreement and $ 17.1 million of outstanding letters of credit. The total amount available to be drawn as of June 30, 2025 was $ 59.3 million, calculated based on the then-current borrowing base less outstanding borrowings, if any, and letters of credit. As of June 30, 2025, the Company was in compliance with its debt covenants under the ABL Agreement. 13 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Effective July 28, 2025 On July 28, 2025, the ABL Agreement was amended to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026. The following provides a summary of the more significant modifications to the ABL Agreement: Through July 27, 2025 Effective July 28, 2025 Lender commitments $ 125.0 million $ 100.0 million Maturity Earlier of (i) February 16, 2028 and (ii) 91 days prior to the stated maturity of any outstanding indebtedness with an outstanding principal balance equal to or greater than $ 17.5 million Earlier of (i) February 16, 2028 and (ii) 91 days prior to the stated maturity of any outstanding indebtedness with an outstanding principal balance equal or greater than $ 17.5 million, unless as of such date such indebtedness has been refinanced, defeased or adequately reserved for (either against the borrowing base or the maximum revolver amount) or escrowed or cash collateralized in a deposit account. Interest rate on outstanding borrowings: SOFR based borrowings SOFR plus a margin of 2.75 % to 3.25 % SOFR plus a margin of 2.25 % to 2.75 % Base-rate borrowings Base rate plus a margin of 1.75 % to 2.25 % Base rate plus a margin of 1.25 % to 1.75 % Letter of credit sublimit $ 50.0 million $ 25.0 million Maintenance covenant: Fixed charge coverage ratio of not less than 1.0 to 1.0 (i) in the event that availability under the ABL Agreement is less than the greater of (a) 15 % of the line cap and (b) approximately $ 14.1 million (i) in the event that availability under the ABL Agreement is less than the greater of (a) 15 % of the line cap and (b) approximately $ 11.3 million 2026 Notes The Company issued $ 135.0 million aggregate principal amount of its 4.75 % convertible senior notes due 2026 pursuant to an indenture, dated as of March 19, 2021 (the “2026 Indenture”), between the Company and Computershare Trust Company, National Association, as successor trustee. The following table provides a summary of the Company's purchases of outstanding 2026 Notes during the three and six months ended June 30, 2025 and 2024, with non-cash gains reported within other income, net (in thousands): Principal Amount Carrying Value of Liability Cash Paid Non-cash Pre-tax Gains Recognized Three and Six Months Ended June 30, 2025 $ 14,750 $ 14,665 $ 14,284 $ 381 Three and Six Months Ended June 30, 2024 11,500 11,361 10,846 515 The outstanding 2026 Notes bear interest at a rate of 4.75 % per year and will mature on April 1, 2026, unless earlier repurchased, redeemed or converted. Interest is payable semi-annually in arrears on April 1 and October 1 of each year. Additional interest and special interest may accrue on the 2026 Notes under certain circumstances as described in the 2026 Indenture. The initial conversion rate is 95.3516 shares of the Company’s common stock per $1,000 principal amount of the 2026 Notes (equivalent to an initial conversion price of $ 10.49 per share of common stock). The conversion rate, and thus the conversion price, may be adjusted under certain circumstances as described in the 2026 Indenture. The Company’s intent is to repay the principal amount of the 2026 Notes in cash and settle the conversion feature (if any) in shares of the Company’s common stock. As of June 30, 2025, none of the conditions allowing holders of the 2026 Notes to convert, or requiring the Company to repurchase the 2026 Notes, had been met. 14 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. Fair Value Measurements The Company’s financial instruments consist of cash and cash equivalents, investments, receivables, payables and debt instruments. The Company believes that the carrying values of these instruments, other than the 2026 Notes, on the accompanying consolidated balance sheets approximate their fair values. The estimated fair value of the 2026 Notes as of June 30, 2025 was $ 107.9 million based on quoted market prices (a Level 2 fair value measurement), which compares to the principal amount of $ 108.8 million. 6. Stockholders’ Equity Common and Preferred Stock The following table provides details with respect to the changes to the number of shares of common stock, $ 0.01 par value, outstanding during the first six months of 2025 (in thousands): Shares of common stock outstanding – December 31, 2024 61,493 Restricted stock awards, net of forfeitures 2,017 Shares withheld for taxes on vesting of stock awards ( 457 ) Purchases of treasury stock ( 2,443 ) Shares of common stock outstanding – June 30, 2025 60,610 As of June 30, 2025 and December 31, 2024, the Company had 25,000,000 shares of preferred stock, $ 0.01 par value, authorized, with no shares issued or outstanding. In October 2024, the Company’s Board of Directors terminated the Company’s existing common stock repurchase program and replaced it with a new $ 50.0 million authorization for the repurchase of the Company’s common stock, par value $ 0.01 per share, through October 2026. Subject to applicable securities laws, such purchases will be at such times and in such amounts as the Company deems appropriate. During the six months ended June 30, 2025, the Company purchased 2.4 million shares of common stock under the program at a total cost of $ 12.0 million. The amount remaining under the Company’s share repurchase authorization as of June 30, 2025 was $ 29.3 million. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, reported as a component of stockholders’ equity, primarily relates to fluctuations in currency exchange rates against the U.S. dollar as used to translate certain of the international operations of the Company’s operating segments. Accumulated other comprehensive loss decreased from $ 79.5 million at December 31, 2024 to $ 64.9 million at June 30, 2025. For the three and six months ended June 30, 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil. During the six months ended June 30, 2025, the exchange rates for the British pound and the Brazilian real strengthened by 9 % and 13 %, respectively, compared to the U.S. dollar, contributing to other comprehensive income of $ 14.6 million. During the six months ended June 30, 2024, the exchange rates for the British pound and the Brazilian real weakened by 1 % and 12 %, respectively, compared to the U.S. dollar, contributing to other comprehensive loss of $ 6.2 million. 7. Income Taxes Income tax benefit (provision) for the three and six months ended June 30, 2025 and 2024 was calculated using a discrete approach. This methodology was used because changes in the Company’s results of operations and non-deductible expenses can materially impact the estimated annual effective tax rate. For the three months ended June 30, 2025, the Company’s income tax expense was $ 1.4 million, which included adjustments to valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $ 4.2 million. This compares to an income tax benefit of $ 0.7 million, which included adjustments to valuation allowances recorded against deferred tax assets and certain non-deductible expenses, on pre-tax income of $ 0.6 million for the three months ended June 30, 2024. 15 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the six months ended June 30, 2025, the Company’s income tax expense was $ 2.5 million, which included the impact of certain discrete tax items and other non-deductible expenses, on pre-tax income of $ 8.4 million. This compares to an income tax benefit of $ 0.6 million, which included the impact of a goodwill impairment charge, other non-deductible expenses and adjustments to valuation allowances recorded against deferred tax assets, on a pre-tax loss of $ 12.7 million for the six months ended June 30, 2024. On July 4, 2025, the United States enacted tax reform legislation which resulted in changes to U.S. tax and related law, including certain key federal income tax provisions applicable to multinational companies such as Oil States. These include, among others: the reinstatement of 100% bonus depreciation election for investments in qualifying property; the immediate deduction of domestic research and development expenditures; and manufacturing tax incentives related to goods sold outside the United States. While the Company continues to evaluate these new laws and regulations, it does not expect they will have a material impact on its consolidated financial position or results of operations. 8. Net Income (Loss) Per Share The table below provides a reconciliation of the numerators and denominators of basic and diluted net income (loss) per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Numerators: Net income (loss) $ 2,811 $ 1,301 $ 5,969 $ ( 12,073 ) Less: Income attributable to unvested restricted stock awards ( 103 ) ( 31 ) ( 218 ) — Numerator for basic net income (loss) per share 2,708 1,270 5,751 ( 12,073 ) Effect of dilutive securities: Unvested restricted stock awards — — — — Numerator for diluted net income (loss) per share $ 2,708 $ 1,270 $ 5,751 $ ( 12,073 ) Denominators: Weighted average number of common shares outstanding 61,408 64,025 61,729 63,954 Less: Weighted average number of unvested restricted stock awards outstanding ( 2,254 ) ( 1,542 ) ( 2,068 ) ( 1,461 ) Denominator for basic net income (loss) per share 59,154 62,483 59,661 62,493 Effect of dilutive securities: Performance share units — 221 — — Denominator for diluted net income (loss) per share 59,154 62,704 59,661 62,493 Net income (loss) per share: Basic $ 0.05 $ 0.02 $ 0.10 $ ( 0.19 ) Diluted 0.05 0.02 0.10 ( 0.19 ) Shares issuable upon conversion of the Company’s 2026 Notes were excluded from each period due to, among other factors, the Company’s share price. 16 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 9. Long-Term Incentive Compensation The following table presents a summary of activity for service-based restricted stock and stock unit awards, and performance-based stock unit awards for the six months ended June 30, 2025 (in thousands): Service-based Restricted Stock Performance- and Service-based Stock Units Outstanding – December 31, 2024 1,513 1,033 Granted 1,568 297 Vested and distributed ( 803 ) ( 467 ) Forfeited ( 18 ) — Outstanding – June 30, 2025 2,260 863 Weighted average grant date fair value (2025 awards) $ 5.31 $ 5.31 The restricted stock program consists of a combination of service-based restricted stock and stock units, as well as performance-based stock units. Service-based restricted stock awards vest on a straight-line basis over a term of three years . Service-based stock unit awards ( 180 thousand outstanding as of June 30, 2025) vest over one year , with the underlying shares issued at a specified future date. Performance-based stock unit awards vest at the end of a three-year period, with the number of shares ultimately issued under the program dependent upon achievement of predefined specific performance objectives based on the Company’s cumulative EBITDA over a three-year period. In the event the predefined targets are exceeded for any performance-based award, additional shares up to a maximum of 200 % of the target award may be granted. Conversely, if actual performance falls below the predefined target, the number of shares vested is reduced. If the actual performance falls below the threshold performance level, no shares will vest. The Company issued conditional long-term cash incentive awards (“Cash Awards”) with targeted values of $ 1.4 million and $ 1.5 million in the first quarters of 2025 and 2024, respectively. The performance measure for each of these Cash Awards is relative total stockholder return compared to a peer group of companies over a three-year period. The ultimate dollar amount to be awarded for each annual grant may range from zero to a maximum of $ 2.9 million for 2025 awards and from zero to a maximum of $ 3.1 million for 2024 awards, limited to their targeted value if the Company’s total stockholder return were to be negative over the performance period. Obligations related to the Cash Awards are classified as liabilities and recognized over their respective vesting periods. Stock-based compensation expense recognized during the three and six months ended June 30, 2025 totaled $ 2.0 million and $ 3.9 million, respectively. Stock-based compensation expense recognized during the three and six months ended June 30, 2024 totaled $ 2.3 million and $ 4.1 million, respectively. As of June 30, 2025, there was $ 12.9 million of pre-tax compensation costs related to service-based and performance-based stock awards, which will be recognized in future periods as vesting conditions are satisfied. 17 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 10. Segments and Related Information The Company operates through three operating segments: Offshore Manufactured Products, Completion and Production Services and Downhole Technologies. Financial information by operating segment as of and for the three and six months ended June 30, 2025 and 2024 is summarized in the following tables (in thousands). Three Months Ended June 30, 2025 Offshore Manufactured Products (1) Completion and Production Services (2) Downhole Technologies (3) Corporate Total Revenues $ 106,586 $ 29,424 $ 29,396 $ — $ 165,406 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization expense presented below) 75,304 23,593 26,443 — 125,340 Selling, general and administrative expense 9,475 2,017 1,999 9,490 22,981 Depreciation and amortization expense 3,703 4,083 4,005 107 11,898 Impairments of operating lease assets — 403 955 — 1,358 Other operating (income) loss, net 1,115 ( 2,549 ) ( 14 ) — ( 1,448 ) 89,597 27,547 33,388 9,597 160,129 Operating income (loss) $ 16,989 $ 1,877 $ ( 3,992 ) $ ( 9,597 ) $ 5,277 Capital expenditures $ 8,003 $ 1,825 $ 428 $ 66 $ 10,322 ________________ (1) Operating income included charges of $ 0.3 million primarily associated with the consolidation and relocation of certain manufacturing and service locations. (2) Operating income included $ 2.2 million of facility exit and other charges. (3) Operating loss included $ 1.2 million in costs associated primarily with the exit of a leased facility. Six Months Ended June 30, 2025 Offshore Manufactured Products (1) Completion and Production Services (2) Downhole Technologies (3) Corporate Total Revenues $ 199,182 $ 63,943 $ 62,219 $ — $ 325,344 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization expense presented below) 142,219 50,498 55,300 — 248,017 Selling, general and administrative expense 18,110 4,013 3,998 19,390 45,511 Depreciation and amortization expense 7,311 8,355 8,034 223 23,923 Impairments of operating lease assets — 403 955 — 1,358 Other operating (income) loss, net 277 ( 4,706 ) 48 — ( 4,381 ) 167,917 58,563 68,335 19,613 314,428 Operating income (loss) $ 31,265 $ 5,380 $ ( 6,116 ) $ ( 19,613 ) $ 10,916 Capital expenditures $ 12,826 $ 5,350 $ 1,219 $ 85 $ 19,480 Total assets (as of June 30, 2025) $ 532,179 $ 134,031 $ 262,758 $ 64,777 $ 993,745 ________________ (1) Operating income included charges of $ 0.3 million primarily associated with the consolidation and relocation of certain manufacturing and service locations. (2) Operating income included $ 3.1 million of facility exit and other charges. (3) Operating loss included $ 1.2 million in costs associated primarily with the exit of a leased facility. 18 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Three Months Ended June 30, 2024 Offshore Manufactured Products (1) Completion and Production Services (2) Downhole Technologies Corporate Total Revenues $ 101,556 $ 46,421 $ 38,406 $ — $ 186,383 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization expense presented below) 71,236 37,895 32,902 — 142,033 Selling, general and administrative expense 10,400 3,083 2,403 10,487 26,373 Depreciation and amortization expense 4,247 6,047 4,255 149 14,698 Impairment of goodwill — — — — — Other operating (income) loss, net 1,316 ( 69 ) ( 13 ) — 1,234 87,199 46,956 39,547 10,636 184,338 Operating income (loss) $ 14,357 $ ( 535 ) $ ( 1,141 ) $ ( 10,636 ) $ 2,045 Capital expenditures $ 1,552 $ 3,918 $ 310 $ 9 $ 5,789 ________________ (1) Operating income included $ 1.5 million of facility consolidation charges. (2) Operating loss included $ 2.9 million of facility consolidation and other charges. Six Months Ended June 30, 2024 Offshore Manufactured Products (1) Completion and Production Services (2) Downhole Technologies (3) Corporate Total Revenues $ 188,413 $ 93,713 $ 71,519 $ — $ 353,645 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization expense presented below) 134,737 77,709 61,538 — 273,984 Selling, general and administrative expense 18,958 5,609 4,686 19,616 48,869 Depreciation and amortization expense 7,940 12,126 8,525 302 28,893 Impairment of goodwill — — 10,000 — 10,000 Other operating (income) loss, net 1,818 ( 777 ) ( 10 ) — 1,031 163,453 94,667 84,739 19,918 362,777 Operating income (loss) $ 24,960 $ ( 954 ) $ ( 13,220 ) $ ( 19,918 ) $ ( 9,132 ) Capital expenditures $ 8,773 $ 6,332 $ 756 $ 20 $ 15,881 Total assets (as of June 30, 2024) $ 502,582 $ 177,098 $ 279,947 $ 41,551 $ 1,001,178 ________________ (1) Operating income included $ 3.0 million of facility consolidation charges. (2) Operating loss included $ 3.9 million in facility consolidation and other charges. (3) Operating loss included a $ 10.0 million non-cash goodwill impairment charge. 19 Table of Contents OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following tables provide supplemental disaggregated revenue from contracts with customers by operating segment for the three and six months ended June 30, 2025 and 2024 (in thousands): Offshore Manufactured Products Completion and Production Services Downhole Technologies Total 2025 2024 2025 2024 2025 2024 2025 2024 Three Months Ended June 30 Project-driven: Products $ 68,653 $ 59,752 $ — $ — $ — $ — $ 68,653 $ 59,752 Services 27,907 31,024 — — — — 27,907 31,024 Total project-driven 96,560 90,776 — — — — 96,560 90,776 Military and other products 10,026 10,780 — — — — 10,026 10,780 Short-cycle products and services — — 29,424 46,421 29,396 38,406 58,820 84,827 $ 106,586 $ 101,556 $ 29,424 $ 46,421 $ 29,396 $ 38,406 $ 165,406 $ 186,383 Offshore Manufactured Products Completion and Production Services Downhole Technologies Total 2025 2024 2025 2024 2025 2024 2025 2024 Six Months Ended June 30 Project-driven: Products $ 127,777 $ 112,889 $ — $ — $ — $ — $ 127,777 $ 112,889 Services 52,331 56,257 — — — — 52,331 56,257 Total project-driven 180,108 169,146 — — — — 180,108 169,146 Military and other products 19,074 19,267 — — — — 19,074 19,267 Short-cycle products and services — — 63,943 93,713 62,219 71,519 126,162 165,232 $ 199,182 $ 188,413 $ 63,943 $ 93,713 $ 62,219 $ 71,519 $ 325,344 $ 353,645 Revenues from products and services transferred to customers over time accounted for approximately 63 % and 66 % of consolidated revenues for the six months ended June 30, 2025 and 2024, respectively. The balance of revenues for the respective periods relates to products and services transferred to customers at a point in time. As of June 30, 2025, the Company had $ 260 million of remaining backlog related to contracts with an original expected duration of greater than one year. Approximately 38 % of this remaining backlog is expected to be recognized as revenue over the remaining six months of 2025, with an additional 36 % recognized in 2026 and the balance thereafter. 11. Commitments and Contingencies The Company is a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its commercial operations, products, employees and other matters. Although the Company can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on the Company, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise covered by insurance, will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. 20 Table of Contents C autionary Statement Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q and other statements we make contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Actual results could differ materially from those projected in the forward-looking statements as a result of a number of important factors, including incorrect or changed assumptions. For a discussion of known material factors that could affect our results, please refer to “Part I, Item 1. Business,” “Part I, Item 1A. Risk Factors,” “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk” included in our 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2025. You can typically identify “forward-looking statements” by the use of forward-looking words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “expect,” “estimate,” “potential,” “plan,” “forecast,” “proposed,” “should,” “seek,” and other similar words. Such statements may relate to our future financial position, budgets, capital expenditures, projected costs, plans and objectives of management for future operations and possible future strategic transactions. Actual results frequently differ from assumed facts and such differences can be material, depending upon the circumstances. While we believe we are providing forward-looking statements expressed in good faith and on a reasonable basis, there can be no assurance that actual results will not differ from such forward-looking statements. The following are important factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, us: • the impact of changes in tariffs and duties on imported materials and exported finished goods; • the ability and willingness of the Organization of Petroleum Exporting Countries and other producing nations (“OPEC+”) to set and maintain oil production levels and pricing; • the level of supply of and demand for oil and natural gas; • fluctuations in the current and future prices of oil and natural gas; • the level of exploration, drilling and completion activity; • the cyclical nature of the oil and natural gas industry; • the level of offshore oil and natural gas developmental activities; • inflation, including our ability to increase prices to our customers as our costs increase; • the impact of disruptions in the bank and capital markets; • the financial health of our customers; • the impact of the ongoing military actions in Europe and the Middle East, or any similar future military actions or unrest, including, but not limited to, energy market disruptions, supply chain disruptions and increased costs, government sanctions, and delays or potential cancellation of planned customer projects; • the impact of environmental matters, including executive actions and federal, state and local regulatory or legislative efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, such as previous attempts to prohibit or otherwise limit new exports of liquefied natural gas (“LNG”), hydraulic fracturing, and lease development; • political, economic and litigation efforts to restrict or eliminate certain oil and natural gas exploration, development and production activities due to concerns over the threat of climate change; • the availability of and access to attractive oil and natural gas field prospects, which may be affected by governmental actions or actions of other parties restricting drilling and completion activities; • general global economic conditions; • global weather conditions and natural disasters, including hurricanes in the Gulf of America (formerly named the Gulf of Mexico); • changes in tax laws and regulations as well as volatility in the political, legal and regulatory environments in connection with the new U.S. presidential administration; including changes such as the One Big Beautiful Bill Act (the “OBBBA”); • supply chain disruptions, including as a result of the adoption of or increase in tariffs, or the threat thereof; • our ability to timely obtain and maintain critical permits for operating facilities; 21 Table of Contents • our ability to attract and retain skilled personnel; • our ability to develop new competitive technologies and products; • fluctuations in currency exchange rates; • physical, digital, cyber, internal and external security breaches and other incidents affecting information security and data privacy; • the cost of capital in the bank and capital markets and our ability to access them; • our ability to protect and enforce our intellectual property rights; • negative outcome of litigation, threatened litigation or government proceedings; • the potential for future federal or state requirements related to the enhanced disclosure of a range of climate-related information and risks; • our ability to complete the integration of acquired businesses and achieve the expected accretion in earnings; and • the other factors identified in “Part I, Item 1A. Risk Factors” in our 2024 Annual Report on Form 10-K, as well as in “Part II, Item 1A. Risk Factors” included in this Quarterly Report on Form 10-Q. Should one or more of these risks or uncertainties materialize, or should the assumptions on which our forward-looking statements are based prove incorrect or change, actual results may differ materially from those expected, estimated or projected. In addition, the factors identified above may not necessarily be all of the important factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by us, or on our behalf. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no responsibility to publicly release the result of any revision of our forward-looking statements after the date they are made. In addition, in certain places in this Quarterly Report on Form 10-Q, we refer to information and reports published by third parties that purport to describe trends or developments in the energy industry. We do so for the convenience of our stockholders and in an effort to provide information available in the market that will assist our investors in better understanding the market environment in which we operate. However, we specifically disclaim any responsibility for the accuracy and completeness of such information and undertake no obligation to update such information.