What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-06 compared with 2025-03-07 · 223 added, 324 removed, 264 unchanged (67% of the section changed)

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“Risk Factors” and the section entitled “Forward-Looking Statements” appearing elsewhere in this annual report.

We are an integrated, growth-oriented energy services company focused on providing products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserve as well as the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through our infrastructure services businesses.

Our primary business objective is to grow our operations and create value for stockholders through organic growth opportunities and accretive acquisitions.

Our suite of services includes well completion services, infrastructure services, natural sand proppant services and other services.

Our well completion services division provides hydraulic fracturing, sand hauling and water transfer services.

Our infrastructure services division provides engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry.

We are an integrated, growth-oriented services company focused on providing products and services to our customers primarily in the oil and natural gas, aviation and utility infrastructure industries.

Our primary business objective is to drive returns through improved execution by prioritizing asset utilization, margin expansion, and capital efficiency across the portfolio.

Our suite of services includes rental services, infrastructure services, natural sand proppant services, accommodation services and drilling services.

Our rental services segment provides a wide range of equipment used in oilfield, construction and aviation activities.

Our infrastructure services division provides engineering, design, construction, upgrade, maintenance and repair services to the fiber industry.

Our natural sand proppant services division mines, processes and sells natural sand proppant used for hydraulic fracturing.

In addition to these service divisions, we also provide directional drilling services, aviation services, equipment rentals, remote accommodations and equipment manufacturing.

We believe that the services we offer play a critical role in increasing the ultimate recovery and present value of production streams from unconventional resources as well as in maintaining and improving electrical infrastructure.

Our drilling services provides directional drilling to oilfield operators.

Our complementary suite of services provides us with the opportunity to cross-sell our services and expand our customer base and geographic positioning.

We continue to focus on growing our industrial business.

We offer infrastructure engineering services focused on the transmission and distribution industry and also have equipment manufacturing operations and offer fiber optic services.

Our equipment manufacturing operations provide us with the ability to repair much of our existing equipment in-house, as well as the option to manufacture certain new equipment we may need in the future.

Our fiber optic services include the installation of both aerial and buried fiber.

We are continuing to explore other opportunities to expand our industrial business lines.

Our revenues, operating (loss) income and identifiable assets are primarily attributable to three reportable segments:

well completion services;

We continue to focus on growing our rental business.

We believe our portfolio of aviation assets provides an attractive form of aviation asset financing for operators that allows capital deployment and fleet flexibility while eliminating residual value risk for the operators.

Our revenues, operating (loss) income and identifiable assets are attributable to five reportable segments:

rental services;

infrastructure services;

and natural sand proppant services.

Prior to 2024, we included Bison Drilling and Field Services, LLC, or Bison Drilling, and Panther Drilling Systems LLC, or Panther, in our drilling reportable segment.

Based on our assessment of FASB ASC 280, Segment Reporting, guidance at December 31, 2024, we changed our presentation in 2024 to move Bison Drilling and Panther to the reconciling column titled “All Other”.

On December 13, 2024, Anaconda Rentals LLC, Aquahawk Energy LLC, or Aquahawk, Barracuda Logistics LLC, or Barracuda, Bison Sand Logistics LLC, or Bison Sand, IFX Transport LLC, Ivory Freight Solutions LLC, Redback Coil Tubing LLC, Redback Energy Services LLC, Redback Pumpdown Services LLC, or Redback Pumpdown, Stingray Cementing LLC and WTL Oil LLC were merged into Orca Energy Services LLC (“Orca”), a wholly-owned subsidiary of Mammoth Energy Partners, LLC.

Prior to 2024, Aquahawk, Bison Sand and Redback Pumpdown were included in our well completion segment and Barracuda was included in our natural sand proppant services segment.

Due to the merger of these entities into Orca, the results for Aquahawk, Bison Sand, Redback Pumpdown and Barracuda are now included in the reconciling column titled “All Other”.

The results for the year ended December 31, 2023 have been retroactively adjusted to reflect these changes.

natural sand proppant services;

accommodation services;

and drilling services.

Following changes to our reportable segments resulting from divestitures completed in 2025, prior‑year segment information for the year ended December 31, 2024 has been recast to align with the current period segment presentation.

Since the dates presented below, we have conducted our operations through the following entities:

Well Completion Services Segment

• Stingray Pressure Pumping LLC—March 2012

• Silverback Energy LLC—November 2012

Inspections LLC—January 2015

Rental Services Segment

• Mammoth Equipment Leasing LLC—November 2016

• Stingray Energy Services LLC, or Stingray Energy Services—June 2017

• Dire Wolf Energy Services LLC—January 2018

• Cobra Aviation Services LLC—January 2018

• Predator Aviation LLC—April 2019

• Leopard Aviation LLC—April 2019

Infrastructure Services Segment

• Cobra Acquisitions LLC, or Cobra—January 2017

• Lion Power Services LLC, formerly Cobra Energy LLC—January 2017

• Higher Power Electrical LLC—April 2017

• 5 Star Electric LLC—July 2017

• Python Equipment LLC—December 2018

• Aquawolf LLC—September 2019

• Falcon Fiber Solutions LLC—May 2021

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• South River Road, LLC—June 2017

Accommodation Services Segment

• Great White Sand Tiger Lodging Ltd.—October 2007

• Bison Drilling and Field Services, LLC—November 2010

Drilling Services Segment

• Panther Drilling Systems LLC—December 2012

• Bison Drilling and Field Services, LLC—November 2010

• Bison Trucking—August 2013

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• Mammoth Energy Partners, LLC—October 2016

• Cobra Acquisitions LLC, or Cobra—January 2017

• Mako Acquisitions LLC—March 2017

• Stingray Energy Services LLC, or Stingray Energy Services—June 2017

• Tiger Shark Logistics LLC—October 2017

• Cobra Aviation Services LLC—January 2018

• Dire Wolf Energy Services LLC—January 2018

• Black Mamba Energy LLC—March 2018

• Stingray Cementing and Acidizing LLC, formerly RTS Energy Services LLC—June 2018

• Air Rescue Systems LLC (“ARS”)—December 2018 through July 13, 2023

• Leopard Aviation LLC—April 2019

• Predator Aviation LLC—April 2019

• Anaconda Manufacturing LLC—September 2019

• Orca Energy Services LLC—December 2024

On July 13, 2023, the Company sold its equity interests in ARS.

Activity for ARS through the date of sale is included in the accompanying results of operations.

2025 Financial Overview and Highlights

• Net loss of $207.3 million, or $4.31 per diluted share, for the year ended December 31, 2024 as compared to net loss of $3.2 million, or $0.07 per diluted share, for the year ended December 31, 2023.

• Net loss from continuing operations of $63.8 million, or $1.32 per diluted share, for the year ended December 31, 2025 as compared to net loss from continuing operations of $183.1 million, or $3.81 per diluted share, for the year ended December 31, 2024.

Net loss for the year ended December 31, 2024 includes a non-cash, pre-tax charge of approximately $170.7 million, of which $89.2 million was charged to credit loss expense and $81.5 million was charged to interest on delinquent accounts receivable in relation to the Settlement Agreement with PREPA.

• Adjusted EBITDA of ($167.5) million for the year ended December 31, 2024 as compared to $71.0 million for the year ended December 31, 2023.

See “Non-GAAP Financial Measures” below for a reconciliation of net loss to Adjusted EBITDA.

Adjusted EBITDA for the year ended December 31, 2024 includes a non-cash, pre-tax charge of approximately $170.7 million, of which $89.2 million was charged to credit loss expense and $81.5 million was charged to interest on delinquent accounts receivable in relation to the Settlement Agreement with PREPA.

• Net cash flow provided by operating activities was $180.7 million for the year ended December 31, 2024 as compared to $31.4 million for the year ended December 31, 2023.

• Received the first two installment payments under the settlement agreement with PREPA, with $150 million paid to Cobra on October 1, 2024 and, subject to Cobra having provided the indemnity letter of credit to PREPA, $18.4 million paid to Cobra on October 18, 2024.

• Paid, in full, all amounts owed under our term credit facility and terminated the facility on October 2, 2024.

• Adjusted EBITDA from continuing operations of ($17.4) million for the year ended December 31, 2025 as compared to ($171.2) million for the year ended December 31, 2024.

See “Non-GAAP Financial Measures” below for a reconciliation of net loss from continuing operations to Adjusted EBITDA from continuing operations.

Adjusted EBITDA from continuing operations for the year ended December 31, 2024 includes a non-cash, pre-tax charge of approximately $170.7 million, of which $89.2 million was charged to credit loss expense and $81.5 million was charged to interest on delinquent accounts receivable in relation to the Settlement Agreement with PREPA.

Overview of Our Industries

Aircraft Industry

The operating environment for the lease of aircraft and aircraft assets is currently favorable.

Factors such as population growth as well as improved global economic health and development are positively influencing both passenger and freight demand.

In addition, factors and trends including OEM supply chain challenges and backlogs, the financing needs of airlines and the availability of maintenance facilities as well as repair timelines may increase the demand for our aircraft and aircraft assets.

Oil and Natural Gas Industry

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The levels of capital expenditures of our customers are driven by many factors, including the prices of oil and natural gas.

Throughout 2023, pricing for crude oil and natural gas declined from levels seen in 2022, which slowed down completion activities for our customers, in particular, in the Utica and Marcellus Shale natural gas plays, and, as a result, reduced demand for our well completion services.

Throughout 2024, we continued to experience persistent challenges in our well completion business and other oilfield services associated with lower U.S.

onshore activity and sustained weakness in the natural gas basins in which we operate.

We expect 2025 completions activity to be relatively steady, with the potential for upside compared to 2024 driven by incremental demand associated with natural gas.

Throughout 2025 and 2024, we experienced challenges in our oil and gas businesses as a result of a generally declining rig count combined with elevated oil and natural gas production in the U.S.

We expect 2026 activity to remain steady during the first half of the year with potential for upside in the back half of the year.

Positive trends that may contribute to increased activity will come from LNG export capacity coming online and general electricity and power demand enhancements.

We will be strategically positioned to capitalize on this anticipated demand if and when it ramps up.

In response to market conditions and reduced demand, we idled our cementing and acidizing operations and flowback operations beginning in July 2019, our contract drilling operations beginning in December 2019, our rig hauling operations beginning in April 2020, our coil tubing, pressure control and full service transportation operations beginning in July 2020 and our crude oil hauling operations beginning in July 2021.

We continue to monitor the market to determine if and when we can recommence these services.

Natural Sand Proppant Industry

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As discussed above, pricing for crude oil and natural gas declined from levels seen in 2022, which slowed down completion activities and adversely impacted demand for our sand proppant services in the second half of 2023.

Activity remained suppressed throughout 2024.

As discussed above, we expect 2025 activity to be relatively steady, with the potential for upside compared to 2024 driven by incremental demand associated with natural gas.

As a result of adverse market conditions, production at our Muskie sand facility in Pierce County, Wisconsin has been idled since September 2018.

Our contracted capacity has provided a baseline of business, which has kept our Taylor and Piranha plants operating and our costs competitive.

Energy Infrastructure Industry

Our infrastructure services business provides engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry.

We offer a broad range of services on electric transmission and distribution, or T&D, networks and substation facilities, which include engineering, design, construction, upgrade, maintenance and repair of high voltage transmission lines, substations and lower voltage overhead and underground distribution systems.

Our commercial services include the installation, maintenance and repair of commercial wiring.

We also provide storm repair and restoration services in response to storms and other disasters.

We provide infrastructure services primarily in the northeastern, southwestern, midwestern and western portions of the United States.

We currently have agreements in place with private utilities, public IOUs and Co-Ops.

Our average crew count declined slightly from approximately 83 crews throughout 2023 to approximately 79 crews throughout 2024.

With the Infrastructure Investment and Jobs Act funds being released for infrastructure projects, we remain encouraged about the potential for growth in this sector.

We saw an uptick in bidding opportunities throughout 2024 related to engineering, fiber, and transmission and distribution, all of which are areas we believe we have differentiated and specialized capabilities.

We continue to focus on operational execution and pursue opportunities within this sector as we strategically structure our service offerings for growth, intending to increase our infrastructure services activity and expand both our geographic footprint and depth of projects, especially in fiber maintenance and installation projects.

We work for multiple utilities primarily across the northeastern, southwestern, midwestern and western portions of the United States.

We believe that we are well-positioned to compete for new projects due to the experience of our infrastructure management team, combined with our vertically integrated service offerings.

We are seeking to leverage this experience and our service offerings to grow our customer base and increase our revenues in the continental United States over the coming years.

Activity remained suppressed throughout 2024 and 2025.

As discussed above, we expect 2026 activity to be relatively steady, with the potential for moderate upside compared to 2025 driven by increases in natural gas demand to support power demand and LNG exports.

Our proppant sand reserves consist of Northern White silica sand, giving us access to a range of high-quality sand grades meeting or exceeding all API specifications, including a mix between concentrations of coarse grades (20/40 and 30/50 mesh size) and finer grades (40/70 and 100 mesh size).

Our sample boring data and our historical production data have indicated that our reserves contain deposits of approximately 60% 40 mesh size or finer substrate.

The coarseness and conductivity of Northern White frac sand significantly enhances recovery of oil and liquids-rich gas by allowing hydrocarbons to flow more freely than is sometimes possible with native sand.

The low acid-solubility increases the integrity of Northern White frac sand relative to other proppants with higher acid-solubility, especially in shales where hydrogen sulfide and other acidic chemicals are co-mingled with the targeted hydrocarbons.

In addition, its crush resistant properties enable Northern White frac sand to be used in deeper drilling applications than the frac sand produced from many native mineral deposits.

We believe that the coarseness, conductivity, sphericity, acid-solubility, and crush-resistant properties of our Northern White sand reserves and our facilities’ connectivity to rail and other transportation infrastructure afford us a cost advantage over many of our competitors and make us one of a select group of sand producers capable of delivering high volumes of frac sand that is optimal for oil and natural gas production to all major unconventional resource basins currently producing throughout North America.

Infrastructure Industry

The infrastructure industry involves the construction and maintenance of fiber networks.

Demand for our services is driven by artificial intelligence (“AI”) and data center projects.

Certain barriers to entry exist in the markets in which we operate, including adequate financial resources, technical expertise, high safety ratings and a proven track record of operational success.

We compete based upon our industry experience, technical expertise, financial and operational resources, geographic presence, industry reputation, safety record and customer service.

While we believe our customers consider a number of factors when selecting a service provider, they generally award most of their work through a bid process.

Consequently, price is often a principal factor in determining which service provider is selected.

We believe that AI and high-performance computing will drive the upgrade and overbuild of fiber networks in order to increase data capacity.

Funding for projects in the infrastructure space remains strong with added opportunities since the Infrastructure Investment and Jobs Act ("IIJA") was signed into law on November 15, 2021.

Federal and state agencies continue to implement multi‑year funding programs established under the IIJA, including substantial investments through Broadband Equity, Access and Deployment ("BEAD") program.

These programs continue to support planned investment in broadband, utility, transportation, and clean‑energy projects.

Although these programs were enacted several years ago, the implementation and distribution of funds remain ongoing and are expected to continue well into the latter half of the decade.

Market participants across telecommunications, power, and energy‑transition sectors have announced substantial capital plans aligned with these programs, supported by federal incentives and growing private‑sector investment in areas such as fiber deployment, grid modernization, electrification, and data‑center‑related power demand.

Settlement Agreement with PREPA

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Our work under each of the contracts with PREPA ended on March 31, 2019.

PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the United States District Court for the District of Puerto Rico (the “Title III Court”).

PREPA is currently subject to

bankruptcy proceedings, which were filed in July 2017 and are currently pending in the United States District Court for the District of Puerto Rico (the “Title III Court”).

As a result, PREPA’s ability to meet its payment obligations under the above-referenced agreements was largely dependent upon funding from the Federal Emergency Management Agency (“FEMA”) or other sources.

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On October 18, 2024, Cobra received a payment from PREPA totaling $18.4 million under the terms of the Settlement Agreement.

$18.4 million and transferred a total of $19.3 million to a restricted cash account maintained by Fifth Third Bank as collateral for the letter of credit.

In connection with the receipt of the $18.4 million from PREPA, Cobra instructed Fifth Third Bank, National Association (“Fifth Third Bank”) to issue a letter of credit to PREPA under the Reimbursement Agreement in the amount of $18.4 million and transferred a total of $19.3 million to a restricted cash account maintained by Fifth Third Bank as collateral for the letter of credit.

As a result of the Settlement Agreement, the Company recorded a non-cash, pre-tax charge of approximately $170.7 million in the second quarter of 2024 to reduce its accounts receivable balance from PREPA of $359.1 million, representing the amount owed to Cobra by PREPA in relation to these agreements as of June 30, 2024, including the accrued but unpaid interest, prior to the Settlement Agreement, to the amount expected to be received from the Settlement Agreement.

Of the $170.7 million, $89.2 million was charged to credit loss expense, which is included in “selling, general and administrative” on the consolidated statements of comprehensive (loss) income, and $81.5 million was charged to interest on delinquent accounts receivable, which is included in “other (expense) income, net” on the consolidated statements of comprehensive (loss) income.

Of the $170.7 million, $89.2 million was charged to credit loss expense, which is included in “selling, general and administrative” on the consolidated statements of comprehensive income (loss), and $81.5 million was charged to interest on delinquent accounts receivable, which is included in “other (expense) income, net” on the consolidated statements of comprehensive income (loss).

As of December 31, 2025, $20.0 million remained outstanding from PREPA.

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The following discussion focuses on a comparison of the results of operations between the years ended December 31, 2025 and 2024.

For a discussion of the results of operations for the year ended December 31, 2023 as compared to the year ended December 31, 2022, please refer to Part II, Item 7.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 (filed with the SEC on March 1, 2024), which is incorporated in this report by reference from such prior report on Form 10-K.

December 31, 2025 December 31, 2024

(in thousands)

Well completion services $ 34,015 $ 127,372

Rental services $ 11,098 $ 7,105

Infrastructure services 4,086 1,476

Natural sand proppant services 16,552 19,057

Accommodation services 8,954 10,851

Drilling services 3,675 3,558

Other services — 3,950

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Cost of revenue:

Well completion services (exclusive of depreciation and amortization of $10,888 and $15,366, respectively, for 2024 and 2023) 38,761 105,062

Rental services (exclusive of depreciation and amortization of $3,738 and $1,155, respectively, for 2025 and 2024) 6,701 4,955

Infrastructure services (exclusive of depreciation and amortization of $221 and $170, respectively, for 2025 and 2024) 5,893 2,280

Natural sand proppant services (exclusive of depreciation, depletion and accretion of $4,106 and $5,228, respectively, for 2025 and 2024) 18,117 17,791

Accommodation services (exclusive of depreciation and amortization of $1,072 and $1,134, respectively, for 2025 and 2024) 5,951 6,397

Drilling services (exclusive of depreciation and amortization of $91 and $145, respectively, for 2025 and 2024) 3,765 4,373

Other services (exclusive of depreciation and amortization of $1,064 and $3,883, respectively, for 2025 and 2024) 2,209 7,137

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Gains on disposal of assets, net (2,371) (2,762)

Impairment of goodwill — 1,810

Impairment of long-lived assets 31,669 —

Operating loss (57,433) (120,357)

Interest expense and financing charges, net (25,204) (16,196)

Other (expense) income, net (64,621) 42,015

(Loss) income before income taxes (218,530) 9,134

Interest income (expense and financing charges), net, inclusive of related parties 1,670 (9,497)

Other expense, net (3,906) (64,564)

Loss before income taxes (59,669) (194,418)

(Benefit) provision for income taxes 4,087 (11,306)

Net loss $ (207,326) $ (3,163)

Net loss from continuing operations $ (63,756) $ (183,112)

Net income (loss) from discontinued operations, net of income taxes $ 68,353 $ (24,214)

Net income (loss) $ 4,597 $ (207,326)

Revenue for 2025 decreased $1.3 million, or 3%, to $44.3 million from $45.6 million for 2024.

The decline in total revenue is primarily attributable to a decrease in utilization in our well completion services division as well as a decline in tons sold in our natural sand proppant services division.

The decline in total revenue is primarily attributable to decreases in revenue for other services, natural sand proppant services, and accommodation services, which was partially offset by an increase in revenue for rental services, infrastructure services, and

drilling services.

Revenue derived from related parties was $1.6 million for 2025 compared to $1.5 million for 2024.

Revenue by division was as follows:

Well Completion Services .

Well completion services division revenue decreased $93.4 million, or 73%, to $34.0 million for 2024 from $127.4 million for 2023.

Intersegment revenue, consisting primarily of revenue derived from our other services and natural sand proppant segment, totaled $0.4 million, for each of 2024 and 2023, respectively.

The decline in our well completion services revenue was primarily driven by decreased utilization as a result of lower activity by our customers in the natural gas basins in which we operate.

The number of stages completed

declined 66% to 1,454 for 2024 from 4,220 for 2023.

An average of 0.5 of our six fleets were active throughout 2024 compared to 1.8 fleets for 2023.

Rental Services .

Rental services division revenue increased $4.0 million, or 56%, to $11.1 million for 2025 from $7.1 million for 2024.

The increase in our rental services revenue was primarily driven by a $2.5 million increase in aviation rental revenue, combined with a 29% increase in equipment rental revenue.

Infrastructure Services.

Infrastructure services division revenue decreased marginally by $0.1 million to $110.4 million for 2024 from $110.5 million for 2023 primarily due to a decline in average crew count from 83 crews during the year ended December 31, 2023 to an average of 79 crews during the year ended December 31, 2024.

This was offset by an increase in storm, transmission and engineering activity of $4.7 million during the year ended December 31, 2024 compared to the year ended December 31, 2023.

Infrastructure services division revenue increased $2.6 million or 173%, to $4.1 million for 2025 from $1.5 million for 2024 primarily due to an increase in fiber optic revenue related to increased activity.

Natural Sand Proppant Services.

Natural sand proppant services division revenue decreased $2.5 million, or 13%, to $16.6 million for 2025, from $19.1 million for 2024.

Intersegment revenue, consisting primarily of revenue derived from our well completion segment, was a nominal amount for each of 2024 and 2023, respectively.

The decrease in our natural sand proppant services revenue was primarily attributable to a 53% decline in tons of sand sold from approximately 1.2 million tons in 2023 to 0.6 million tons in 2024, coupled with a 22% decrease in average price per ton of sand sold from $29.86 in 2023 to $23.15 in 2024 primarily driven by lower completions activity by our customers.

The decrease was partially offset by an increase in contracted shortfall revenue of $2.5 million.

The decrease in our natural sand proppant services revenue was primarily attributable to a 12% decrease in average price per ton of sand sold from $23.15 in 2024 to $20.43 in 2025 primarily driven by lower completions activity by our customers, which was offset by a 12% increase in sand volumes sold.

Accommodation Services.

Accommodation services revenue decreased $1.9 million, or 17%, to $9.0 million for 2025 from $10.9 million for 2024, primarily due to a decline in utilization.

On average, 186 rooms were utilized in 2025 as compared to 216 in 2024 for our accommodation services.

Drilling Services .

Drilling services revenue marginally increased $0.1 million or 3% to $3.7 million for 2025 from $3.6 million for 2024, primarily due to a favorable shift in job mix toward higher value horizontal drilling activity, which offset decreased directional drilling activity.

Other Services.

Revenue from other services, including our directional drilling, aviation, equipment rental, remote accommodation and equipment manufacturing businesses decreased by $3.5 million, or 10%, to $31.4 million for 2024 from $34.9 million for 2023.

Intersegment revenue, consisting primarily of equipment manufacturing revenue derived from our well completion segment, totaled $6.5 million and $2.0 million, for 2024 and 2023, respectively.

The decrease in other services revenue was primarily attributable to decreased utilization for our directional drilling business from 36% for 2023 to 17% for 2024.

This was coupled with a decline in utilization for our equipment rental business.

These declines were primarily the result of lower activity by our customers in 2024 as compared to 2023.

We rented an average of 210 pieces of equipment per month to customers during 2024, a decrease of 13% from an average of 241 pieces of equipment per month rented to customers during 2023.

These declines were offset by an increase in utilization for our remote accommodations business.

On average, 216 rooms were utilized per night during 2024, a 21% increase from an average of 178 rooms utilized per night in 2023.

Other services revenue declined $3.9 million in 2025.

This decrease was primarily related to our water transfer services, which were shut down during the third quarter of 2024, and our crude oil hauling services, which were idled at the beginning of 2025.

Cost of Revenue (exclusive of depreciation, depletion, amortization and accretion expense) .

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion expense, decreased $77.0 million from $247.8 million, or 80% of total revenue, for 2023 to $170.8 million, or 91% of total revenue, for 2024.

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion expense, marginally increased from $42.5 million, or 93% of total revenue, for 2024 to $42.6 million, or 96% of total revenue, for 2025.

Cost of revenue by operating division was as follows:

Well Completion Services .

Well completion services division cost of revenue, exclusive of depreciation and amortization expense, decreased $66.3 million, or 63%, from $105.1 million for 2023 to $38.8 million for 2024 primarily due to a decline in utilization.

As a percentage of revenue, our well completion services division cost of revenue, exclusive of depreciation and amortization expense of $10.9 million in 2024 and $15.4 million in 2023, was 114% and 82%, for 2024 and 2023, respectively.

The increase as a percentage of revenue is primarily due to a decrease in utilization of our pressure pumping services, resulting in a higher ratio of fixed costs to variable costs.

Rental Services .

Rental services division cost of revenue, exclusive of depreciation and amortization expense, increased $1.7 million, or 34%, from $5.0 million for 2024 to $6.7 million for 2025 primarily due to an increase in average equipment utilization.

As a percentage of revenue, our rental services division cost of revenue, exclusive of depreciation and amortization expense of $3.7 million in 2025 and $1.2 million in 2024, was 60% and 70%, for 2025 and 2024, respectively.

The decrease as a percentage of revenue is primarily due to higher equipment utilization as well as higher margins associated with aviation rentals as compared to equipment rentals, resulting in improved absorption of fixed operating costs.

Infrastructure Services.

Infrastructure services division cost of revenue, exclusive of depreciation and amortization expense, increased $3.6 million from $2.3 million for 2024 to $5.9 million for 2025.

As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization expense of $2.8 million in 2024 and $8.4 million in 2023, was 83% and 82% for 2024 and 2023, respectively.

The increase as a percentage of revenue is primarily due to an increase in contract labor costs as a percentage of revenue.

As a percentage of revenue, cost of revenue, exclusive of depreciation and amortization expense of $0.2 million in 2025 and 2024, was 144% and 153% for 2025 and 2024, respectively.

The decrease as a percentage of revenue is primarily due to an increase in contract labor costs as a percentage of revenue.

Natural Sand Proppant Services.

Natural sand proppant services division cost of revenue, exclusive of depreciation, depletion and accretion expense, decreased $7.9 million, or 31%, from $25.7 million for 2023 to $17.8 million for 2024.

Natural sand proppant services division cost of revenue, exclusive of depreciation, depletion and accretion expense, increased $0.3 million, or 2%, from $17.8 million for 2024 to $18.1 million for 2025.

As a percentage of revenue, cost of revenue, exclusive of depreciation, depletion and accretion expense of $4.1 million in 2025 and $5.2 million in 2024, was 109% and 93%, for 2025 and 2024, respectively.

The increase in cost as a percentage of revenue is primarily due to a 53% decline in tons of sand sold and a 22% decrease in average sales price.

The increase in cost as a percentage of revenue is primarily due to a 12% decrease in average sales price and a 12% increase in tons of sand sold.

Accommodation Services .

Accommodation services cost of revenue, exclusive of depreciation and accretion, decreased $0.4 million, or 6%, to $6.0 million for 2025 from $6.4 million in 2024.

As a percentage of revenue, cost of revenue, exclusive of depreciation and accretion of $1.1 million for 2025 and 2024, was 67% and 59% for 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.

Drilling Services .

Drilling services cost of revenue, exclusive of depreciation, decreased $0.6 million, or 14%, to $3.8 million for 2025 from $4.4 million for 2024.

As a percentage of revenue, cost of revenue, exclusive of depreciation of $0.1 million for 2025 and 2024, was 103% and 122% for 2025 and 2024, respectively.

The decrease as a percentage of revenue is primarily due to an improvement in pricing.

Other Services .

Other services cost of revenue, exclusive of depreciation and amortization expense, was $29.0 million for 2024 and 2023, respectively.

As a percentage of revenue, cost of revenue, exclusive of depreciation

and amortization expense of $6.2 million in 2024 and $13.6 million in 2023, was 92% and 83%, for 2024 and 2023, respectively.

The increase as a percentage of revenue is primarily due to a decrease in utilization for our directional drilling and equipment rental businesses, resulting in a higher ratio of fixed costs to variable cost.

Other services cost of revenue, exclusive of depreciation and amortization expense, was $2.2 million for 2025 and $7.1 million in 2024, respectively.

In 2024, cost of revenue, exclusive of depreciation and amortization, was 182% of revenue, and depreciation and amortization expense was $3.9 million.

In 2025, no revenue was generated and depreciation and amortization expense was $1.1 million;

the cost decrease was primarily due to decreased utilization, resulting in a higher proportion of fixed operating costs.

Selling, General and Administrative Expenses .

Selling, general and administrative expenses, or SG&A, represent the costs associated with managing and supporting our operations.

SG&A expense increased $87.3 million, or 233%, to $124.8 million for the year ended December 31, 2024 from $37.5 million for the year ended December 31, 2023 primarily due to an increase in the provision for expected credit losses in connection with the Settlement Agreement with PREPA.

The following is a breakout of SG&A expenses for the periods indicated (in thousands):

December 31, 2024 December 31, 2023

Cash expenses:

Compensation and benefits $ 14,448 $ 15,563

Professional services 12,298 13,448

Total cash SG&A expense 33,892 36,704

Non-cash expenses:

Change in provision for expected credit losses (b)

Stock based compensation 875 1,345

Total non-cash SG&A expense 90,929 754

Total SG&A expense $ 124,821 $ 37,458

Includes travel-related costs, IT expenses, rent, utilities and other general and administrative-related costs.

The Company recognized an $89.2 million charge in relation to the Settlement Agreement with PREPA during the year ended December 31, 2024.

SG&A expense decreased $94.9 million, or 83%, to $19.6 million for the year ended December 31, 2025, from $114.5 million for the year ended December 31, 2024 primarily due to a decrease in the provision for expected credit losses in connection with the Settlement Agreement with PREPA that was recognized in 2024.

Depreciation, Depletion, Amortization and Accretion .

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Gains on the disposal of assets decreased $0.4 million, or 14%, to $2.4 million for 2025 from $2.8 million in 2024.

Gains on the disposal of assets is primarily related to the sale of dormitories, trucks, and field equipment for the years ended December 31, 2024 and a drilling rig, trucks, and field equipment for the year ended December 31, 2023.

Impairment of Goodwill .

As a result of the sale of ARS, we performed an impairment assessment of our goodwill for the Aviation reporting unit in 2023.

We determined that the carrying value of goodwill for our Aviation reporting unit exceeded the fair value, resulting in impairment expense of $1.8 million for the year ended December 31, 2023.

We did not recognize any impairment of goodwill in 2024.

Gains on the disposal of assets are primarily related to the sale of down-hole tools, trucks, and field equipment for the year ended December 31, 2025, and primarily related to the sale of dormitories, trucks and field equipment for the year ended December 31, 2024.

Impairment of long-lived assets .

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 in 2025.

There was no similar activity for the year ended December 31, 2024.

Operating Loss.

We reported an operating loss of $57.4 million for 2025 compared to $120.4 million for 2024.

The increased operating loss was primarily due to an $89.2 million charge to selling, general and administrative expenses recognized during the year ended December 31, 2024 in relation to the Settlement Agreement with PREPA.

The increased loss was coupled with reduced utilization across our well completions and natural sand proppant divisions, and partially offset by a decline in depreciation, depletion, amortization and accretion expense.

Interest Expense and financing charges, net .

Interest expense and financing charges, net increased $9.0 million to $25.2 million for 2024 from $16.2 million for 2023, primarily due to a $9.9 million charge incurred in relation to our sale leaseback agreements coupled with a $5.5 million financing charge incurred in relation to the Assignment Agreement with SPCP Group.

See “—Liquidity and Capital Resources—Sale Leaseback Transactions” and “—Liquidity and Capital Resources—Cobra Assignment Agreement” for additional information.

The increase was partially offset by a decline in average borrowings outstanding under our revolving credit facility.

The decreased operating loss was primarily due to an $89.2 million charge to selling, general and administrative expenses recognized during the year ended December 31, 2024 in relation to the Settlement Agreement with PREPA.

The decreased loss was coupled with increased utilization in our rental services divisions and reduction in total cash selling, general and administrative expense.

Interest income (expense and financing charges), net .

Interest income, net of interest expense and financing charges was $1.7 million for the year ended December 31, 2025 compared to interest expense and financing charges, net of $9.5 million for the year ended December 31, 2024.

The increase is primarily due to a $5.5 million financing charge incurred during the year ended December 31, 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.

Other (Expense) Income, net.

We recognized other expense, net of $3.9 million during the year ended December 31, 2025 compared to other income, net of $64.6 million for the year ended December 31, 2024.

During the years ended December 31, 2024 and 2023, we recognized interest on delinquent accounts receivable totaling $20.8 million and $45.4 million,

respectively, in relation to our outstanding receivable with PREPA.

During the year ended December 31, 2024, we recognized interest on delinquent accounts receivable totaling $20.8 million in relation to our outstanding receivable with PREPA.

In July 2024, Cobra entered into the Settlement Agreement with PREPA resulting in a charge to interest on delinquent accounts receivable totaling $81.5 million during the year ended December 31, 2024 to reduce its accounts receivable balance to the amount expected to be collected in relation to interest charged to PREPA.

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Our effective tax rate was (6.8)% for 2025 compared to 5.8% for 2024.

The effective tax rates for the years ended December 31, 2024 and 2023 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 year ended December 31, 2024, the Company reversed $19.9 million in withholding tax accruals related to undistributed earnings from Puerto Rico.

The effective tax rates for the years ended December 31, 2025 and 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.

“Income Taxes” to our consolidated financial statements included elsewhere in this annual report for additional detail regarding our change in tax expense.

Discontinued Operations .

We recorded net income from discontinued operations, net of income taxes totaling $68.4 million during the year ended December 31, 2025 compared to a net loss from discontinued operations, net of income taxes of $24.2 million for the year ended December 31, 2024.

See Note 3 of the notes to our consolidated financial statements for a breakout of the results of operations for our discontinued operations.

Non-GAAP Financial Measures

Adjusted EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.

We define Adjusted EBITDA as net loss before depreciation, depletion, amortization and accretion, gains on disposal of assets, net, impairment of goodwill, stock based compensation, interest expense and financing charges, net, other expense (income), net (which is comprised of interest on trade accounts receivable and certain legal expenses) and (benefit) provision for income taxes, further adjusted to add back interest on trade accounts receivable.

We exclude the items listed above from net loss in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industries depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.

Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net loss or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.

Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA.

Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

We believe that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure our ability to meet debt service requirements.

The following tables also provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income or (loss) for each of our operating segments for the specified periods (in thousands).

Years Ended December 31,

Reconciliation of net loss to Adjusted EBITDA:

2024 2023 2022

Net loss $ (207,326) $ (3,163) $ (619)

Depreciation, depletion, amortization and accretion 25,079 45,110 64,271

Gains on disposal of assets, net (4,014) (6,041) (3,908)

Impairment of goodwill — 1,810 —

Stock based compensation 875 1,345 923

Interest expense and financing charges, net 25,204 16,196 11,506

Other expense (income), net 64,621 (42,015) (40,912)

(Benefit) provision for income taxes (11,204) 12,297 13,607

Interest on trade accounts receivable (60,686) 45,440 41,276

Adjusted EBITDA $ (167,451) $ 70,979 $ 86,144

Well Completion Services

Years Ended December 31,

Reconciliation of net (loss) income to Adjusted EBITDA:

2024 2023 2022

Net (loss) income $ (21,886) $ (2,043) $ 12,870

Depreciation, depletion, amortization and accretion 10,889 15,374 20,129

Loss (gains) on disposal of assets, net 52 (2,023) (618)

Stock based compensation 180 496 369

Interest expense and financing charges, net 1,628 4,133 1,625

Other expense (income), net 2 2 (343)

Adjusted EBITDA $ (9,135) $ 15,939 $ 34,032

Infrastructure Services

Adjusted EBITDA from Continuing Operations

Adjusted EBITDA from continuing operations is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.

We define Adjusted EBITDA from continuing operations as net loss from continuing operations before depreciation, depletion, amortization and accretion, gains on disposal of assets, net, impairment of goodwill, stock based compensation, interest expense and financing charges, net, other expense (income), net (which is comprised of interest on trade accounts receivable and certain legal expenses) and (benefit) provision for income taxes, further adjusted to add back interest on trade accounts receivable.

We exclude the items listed above from net loss from continuing operations in arriving at Adjusted EBITDA from continuing operations because these amounts can vary substantially from company to company within our industries depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.

Adjusted EBITDA from continuing operations should not be considered as an alternative to, or more meaningful than, net loss from continuing operations or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.

Certain items excluded from Adjusted EBITDA from continuing operations are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA from continuing operations.

Our computations of Adjusted EBITDA from continuing operations may not be comparable to other similarly titled measures of other companies.

We believe that Adjusted EBITDA from continuing operations is a widely followed measure of operating performance and may also be used by investors to measure our ability to meet debt service requirements.

The following tables provide a reconciliation of Adjusted EBITDA from continuing operations to net loss from continuing operations, the most directly comparable GAAP financial measure for the specified periods (in thousands):

Years Ended December 31,

Reconciliation of net (loss) income to Adjusted EBITDA:

2024 2023 2022

Net (loss) income $ (166,089) $ 8,237 $ 4,933

Reconciliation of net loss from continuing operations to Adjusted EBITDA from continuing operations:

Net loss from continuing operations $ (63,756) $ (183,112)

Depreciation, depletion, amortization and accretion 10,292 11,715

Gains on disposal of assets, net (2,371) (2,762)

Impairment of long-lived assets 31,669 —

Stock based compensation 412 875

Interest expense and financing charges, net (1,670) 9,497

Other expense (income), net 64,535 (39,252) (40,470)

Other expense, net 3,906 64,564

(Benefit) provision for income taxes 4,087 (11,306)

Interest on trade accounts receivable — (60,686)

Adjusted EBITDA $ (153,503) $ 43,810 $ 42,281

Natural Sand Proppant Services

Years Ended December 31,

Reconciliation of net (loss) income to Adjusted EBITDA:

2024 2023 2022

Net (loss) income $ (8,496) $ 1,824 $ (886)

Depreciation, depletion, amortization and accretion 5,228 7,737 8,714

Loss (gains) on disposal of assets, net 1 (13) (89)

Stock based compensation 145 186 118

Interest expense and financing charges, net 186 317 575

Other expense (income), net 8 (18) (14)

Adjusted EBITDA $ (2,928) $ 10,033 $ 8,418

Other Services (a)

Years Ended December 31,

Reconciliation of net loss to Adjusted EBITDA:

2024 2023 2022

Net loss $ (10,855) $ (11,181) $ (17,536)

Depreciation, depletion, amortization and accretion 6,188 13,609 19,257

Gains on disposal of assets, net (2,763) (3,495) (2,406)

Impairment of goodwill — 1,810 —

Stock based compensation 88 125 87

Interest expense and financing charges, net 1,800 1,993 1,916

Other expense (income), net 76 (2,747) (85)

Provision for income taxes 3,581 1,083 180

Adjusted EBITDA $ (1,885) $ 1,197 $ 1,413

Includes results for our directional drilling, aviation, equipment rentals, remote accommodations and equipment manufacturing and corporate related activities.

Our corporate related activities do not generate revenue.

Adjusted Net Loss and Adjusted Loss per Share

Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate our operating and financial performance.

Management believes these measures provide meaningful information about the Company’s performance by excluding certain non-cash charges, such as impairment of goodwill, that may not be indicative of the Company’s ongoing operating results, from net loss.

Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.

The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.

Adjusted EBITDA from continuing operations $ (17,431) $ (171,215)

Adjusted Net Loss from Continuing Operations and Adjusted Loss per Share from Continuing Operations

Adjusted net loss from continuing operations and adjusted basic and diluted loss per share from continuing operations are supplemental non-GAAP financial measures that are used by management to evaluate our operating and financial performance.

Management believes these measures provide meaningful information about the Company’s performance by excluding certain non-cash charges, such as impairment of long-lived assets, which may not be indicative of the Company’s ongoing operating results, from net loss from continuing operations.

Adjusted net loss from continuing operations and adjusted loss per share from continuing operations should not be considered in isolation or as a substitute for net loss from continuing operations and loss per share from continuing operations prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.

The following tables provide a reconciliation of adjusted net loss from continuing operations and adjusted loss per share from continuing operations to the GAAP financial measures of net loss from continuing operations and loss per share from continuing operations for the periods specified.

Years Ended December 31,

2024 2023 2022

(in thousands, except per share amounts)

Net loss, as reported $ (207,326) $ (3,163) $ (619)

Impairment of goodwill — 1,810 —

Adjusted net loss $ (207,326) $ (1,353) $ (619)

Basic loss per share, as reported $ (4.31) $ (0.07) $ (0.01)

Impairment of goodwill — 0.04 —

Adjusted basic loss per share $ (4.31) $ (0.03) $ (0.01)

Diluted loss per share, as reported $ (4.31) $ (0.07) $ (0.01)

Impairment of goodwill — 0.04 —

Adjusted diluted loss per share $ (4.31) $ (0.03) $ (0.01)

Net loss from continuing operations, as reported $ (63,756) $ (183,112)

Impairment of long-lived assets 31,669 —

Adjusted net loss from continuing operations $ (32,087) $ (183,112)

Basic and diluted earnings per share from continuing operations, as reported $ (1.32) $ (3.81)

Impairment of long-lived assets 0.66 —

Adjusted basic and diluted earnings per share from continuing operations $ (0.66) $ (3.81)

Liquidity and Capital Resources

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“Commitments and Contingencies” to our consolidated financial statements included elsewhere in this annual report and under “Capital Requirements and Sources of Liquidity” below.

Our primary sources of liquidity have been cash on hand, borrowings under our revolving credit facility and term credit facility and cash flows from operations, as well as the net proceeds received

by Cobra under the assignment agreement with SPCP Group relating to the PREPA receivable.

Our primary uses of capital have been for investing in property and equipment used to provide our services and to acquire complementary businesses.

Our primary sources of liquidity have been cash on hand, borrowings under our revolving credit facility and cash flows from operations, as well as the net proceeds received by Cobra under the assignment agreement with SPCP Group relating to the PREPA receivable.

Our primary uses of capital have been for investing in property, plant and equipment used to provide our services and to acquire complementary businesses.

The following table summarizes our liquidity as of the dates indicated (in thousands):

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Revolving credit facility borrowing base 50,000 25,162

Less current and long-term debt - related parties — (45,000)

Less letter of credit facilities (environmental remediation) (2,573) (4,228)

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Total $ 140,074 $ 72,355

Net working capital (less cash) is a non-GAAP measure and, as of December 31, 2024, is calculated by subtracting total current liabilities of $114.5 million and cash and cash equivalents of $61.0 million from total current assets of $188.6 million.

As of December 31, 2023, net working capital (less cash and current portion of long-term debt) is calculated by subtracting total current liabilities of $182.6 million and cash and cash equivalents of $16.6 million from total current assets of $496.9 million.

Amounts include receivables due from PREPA of $20.0 million and $402.3 million and tax liabilities related to our work in Puerto Rico of $43.3 million and $60.6 million at December 31, 2024 and 2023, respectively.

As of March 5, 2025, we had unrestricted cash on hand of $64.8 million, no outstanding borrowings under our revolving credit facility and a borrowing base of $33.7 million, leaving an aggregate of $26.2 million of available borrowing capacity under this facility, after giving effect to $7.5 million of outstanding letters of credit.

(a) Net working capital (less cash, cash equivalents and restricted cash) is calculated by subtracting total current liabilities, cash and cash equivalents and restricted cash from total current assets.

As of March 3, 2026, we had unrestricted cash on hand of $89.6 million, marketable securities of $28.8 million, no outstanding borrowings under our revolving credit facility and a borrowing base of $50.0 million, leaving an aggregate of $38.2

million of available borrowing capacity under this facility, after giving effect to $5.0 million of outstanding letters of credit.

As of March 3, 2026, we had total liquidity of $156.6 million consisting of cash on hand and available borrowing capacity under our revolving credit facility.

Liquidity and Cash Flows

The following table sets forth our cash flows for the years indicated (in thousands):

Years Ended December 31,

2024 2023 2022

Net cash provided by operating activities $ 180,717 $ 31,386 $ 15,266

Net cash used in investing activities (10,432) (8,786) (2,124)

Net cash used in financing activities (112,113) (15,586) (5,601)

Net cash (used in) provided by operating activities from continuing operations $ (19,575) $ 194,721

Net cash provided by (used in) operating activities from discontinued operations 1,005 (14,004)

Net cash (used in) provided by investing activities from continuing operations (82,504) 3,847

Net cash provided by (used in) investing activities from discontinued operations 137,050 (14,279)

Net cash used in financing activities from continuing operations (433) (98,231)

Net cash used in financing activities from discontinued operations (3,854) (13,882)

Effect of foreign exchange rate on cash 109 (144)

Net change in cash $ 58,028 $ 7,016 $ 7,383

Operating Activities

Net cash provided by operating activities was $180.7 million, $31.4 million and $15.3 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

The change in operating cash flows from 2023 to 2024 was primarily due to increased receipts on accounts receivable, including the receipt of $232.4 million from PREPA, which was partially offset by a decline in utilization for our well completion and natural sand proppant services during 2024.

The change in operating cash flows from 2022 to 2023 was primarily due to increased receipts on accounts receivable, including the receipt of $22.2 million from PREPA, which was partially offset by an increase in payments on accounts payable and other liabilities.

Investing Activities

Net cash used in investing activities was $10.4 million, $8.8 million and $2.1 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

Cash used in investing activities is primarily comprised of purchases of property and equipment and proceeds from the disposal of property and equipment and business divestitures.

Net increase in cash, cash equivalents and restricted cash $ 31,798 $ 58,028

Operating Activities for Continuing Operations

Net cash (used in) provided by operating activities from continuing operations was ($19.6) million and $194.7 million, for the years ended December 31, 2025 and 2024, respectively.

The change in operating cash flows from 2024 to 2025 was primarily due to decreased receipts on accounts receivable, including the receipt of $232.4 million from PREPA in 2024, which was partially offset by a decrease in net loss from continuing operations.

Operating Activities from Discontinued Operations

Net cash provided by (used in) operating activities from discontinued operations was $1.0 million and ($14) million, for the years ended December 31, 2025 and 2024, respectively.

The change in operating cash flows from 2024 to 2025 was primarily attributable to the receipt of outstanding receivables of the discontinued entities and pressure pumping equipment.

Investing Activities from Continuing Operations

Net cash (used in) provided by investing activities from continuing operations was ($82.5) million and $3.8 million, for the years ended December 31, 2025 and 2024, respectively.

Cash used in investing activities is primarily comprised of purchases of property, plant and equipment, purchases of marketable securities and proceeds from the disposal of property, plant and equipment.

The following table summarizes our capital expenditures by operating division for the periods indicated (in thousands):

Years Ended December 31,

2024 2023 2022

Well completion services (a)

Rental services (a)

$ 69,953 $ 351

Infrastructure services (b)

2,815 716 885

Natural sand proppant services (c)

Eliminations (e)

607 103 (153)

Accommodation services (c)

Drilling services (c)

Total capital expenditures $ 70,552 $ 1,214

Capital expenditures primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and maintenance for the years ended December 31, 2024, 2023 and 2022.

Capital expenditures primarily for truck, tooling and other equipment purchases for new infrastructure crews for the years ended December 31, 2024, 2023 and 2022.

Capital expenditures primarily for maintenance for the years ended December 31, 2023 and 2022.

Capital expenditures primarily for equipment for our remote accommodations and equipment rental businesses for the years ended December 31, 2024, 2023 and 2022.

Eliminations primarily relate to upgrades to our pressure pumping fleet completed by our equipment manufacturing business.

Financing Activities

Net cash used in financing activities was $112.1 million, $15.6 million and $5.6 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

Net cash used in financing activities for the year ended December 31, 2024 was primarily attributable to net repayments under our term credit facility of $50.9 million, payments on financing transactions of $46.8 million, payments on sale leaseback transactions of $12.4 million and principal payments on financing leases and equipment financing notes totaling $1.9 million.

Net cash used in financing activities for the year ended December 31, 2023 was primarily attributable to net repayments under our revolving credit facility of $83.5 million, principal payments on financing leases and equipment financing notes of $12.2 million, principal payments on sale leaseback arrangements of $5.0 million, debt issuance costs of $4.0 million and share repurchases used to satisfy tax withholding obligations of $0.9 million in connection with the vesting and settlement of certain executive restricted stock unit awards, partially offset by net proceeds from financing transactions of $46.1 million and borrowings with related parties of $43.9 million in relation to our term loan.

Net cash used in financing activities for the year ended December 31, 2022 was primarily attributable to net repayments under our revolving credit facility of $1.5 million and principal payments on financing leases and equipment notes of $4.3 million, partially offset by net proceeds received from sale-leaseback transactions of $0.2 million.

Capital expenditures primarily for purchasing aircraft and equipment to be used by our equipment rental businesses for the year ended December 31, 2025 and maintenance for the year ended December 31, 2024.

Capital expenditures primarily for trailer purchases for fiber optic crews for the year ended December 31, 2025 and an utility directional drill for the year ended December 31, 2024.

Capital expenditures primarily for maintenance and equipment for the years ended December 31, 2025 and 2024.

Capital expenditures primarily for maintenance for the year ended December 31, 2024.

Investing Activities from Discontinued Operations

Net cash provided by (used in) investing activities from discontinued operations was $137.1 million and $(14.3) million for the years ended December 31, 2025 and 2024, respectively.

The change in net cash provided by investing activities from discontinued operations for the periods is primarily due to the sale of a portion of our infrastructure services entities and pressure pumping equipment.

Financing Activities from Continuing Operations

Net cash used in financing activities from continuing operations was $0.4 million and $98.2 million for the years ended December 31, 2025 and 2024, respectively.

The decrease in net cash used in financing activities from continuing operations is primarily attributable to repayments on long-term debt - related parties of $50.9 million and payments on financing transactions of $46.8 million incurred during the year ended December 31, 2024.

There was no similar activity for the year ended December 31, 2025.

Financing Activities from Discontinued Operations

Net cash used in financing activities from discontinued operations was $3.9 million and $13.9 million for the years ended December 31, 2025 and 2024, respectively.

The decrease in net cash provided by investing activities from discontinued operations is primarily attributable to principal payments on financing leases and equipment financing notes and payments on sale leaseback arrangements.

Effect of Foreign Exchange Rate on Cash

The effect of foreign exchange rate on cash was a ($0.1) million for the year ended December 31, 2024, a nominal amount for the year ended December 31, 2023, and ($0.2) million for the year ended December 31, 2022.

The effect of foreign exchange rate on cash was $0.1 million for the year ended December 31, 2025, and ($0.1) million for the year ended December 31, 2024.

The year-over-year effect was driven primarily by a favorable (unfavorable) shift in the weakness (strength) of the Canadian dollar relative to the U.S.

dollar for the cash held in Canadian accounts.

Working Capital

Our working capital totaled $74.1 million and $314.4 million, respectively, at December 31, 2024 and 2023.

Net Working Capital

Our net working capital totaled $107.1 million and $74.1 million, respectively, at December 31, 2025 and 2024.

Our unrestricted cash balances totaled $102.0 million and $60.8 million, respectively, at December 31, 2025 and 2024.

Included in working capital are receivables due from PREPA totaling $20.0 million and $402.3 million and tax liabilities related to our work in Puerto Rico of $43.3 million and $60.6 million at December 31, 2024 and 2023, respectively.

Revolving Credit Facility and Term Credit Facility

On October 16, 2023, we entered into a revolving credit facility and a term credit facility (each as defined below), which refinanced in full our indebtedness outstanding under, and terminated, the amended and restated revolving credit facility, dated as of October 19, 2018, as amended (the “previous revolving credit facility”), with us and certain of our direct and indirect subsidiaries, as borrowers, the lenders party thereto from time to time, and PNC Bank, National Association, as a lender and as administrative agent for the lenders.

administrative agent for the lenders (“Fifth Third Bank”), as may be subsequently amended (the “revolving credit facility”).

On October 16, 2023, we, as borrower, and certain of our direct and indirect subsidiaries, as guarantors, entered into a revolving credit agreement with the lenders party thereto and Fifth Third Bank, National Association, as a lender and as administrative agent for the lenders (“Fifth Third Bank”), as may be subsequently amended (the “revolving credit facility”).

The revolving credit facility provides for revolving commitments in an aggregate amount of up to $75 million.

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Interest under the revolving credit facility equals the Tranche Rate (as defined in the revolving credit facility) plus (i) 1.75%, if the Average Excess Availability Percentage (as defined in the revolving credit facility) is greater than 66 2/3%, (ii) 2.00% if the Average Excess Availability Percentage is greater than 33 1/3% and less than or equal to 66 2/3%, and (iii) 2.25% if the Average Excess Availability Percentage is less than or equal to 33 1/3%.

As of December 31, 2024 and December 31, 2023, the financial covenant under the revolving credit facility was the fixed charge coverage ratio of 1.0 to 1.0 which applies only during the period from the date that excess availability under the revolving credit facility is less than the greater of (i) 10% of total availability under the revolving credit facility and (ii) $5 million until the date in which the excess availability is equal to the greater of (i) 10% of excess availability and (ii) $5 million for 30 consecutive days (such period, a “Financial Covenant Period”).

As of December 31, 2025 and December 31, 2024, the financial covenant under the revolving credit facility was the fixed charge coverage ratio of 1.0 to 1.0 which applies only during the period from the date that excess availability under the revolving credit facility is less than the greater of (i) 10% of total availability under the revolving credit facility and (ii) $5 million until the date in which the excess availability is equal to the greater of (i) 10% of excess availability and (ii) $5 million

for 30 consecutive days (such period, a “Financial Covenant Period”).

A Financial Covenant Period was not in effect as of each of December 31, 2025 and the filing date of this report.

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In connection with the receipt of the $18.4 million from PREPA, Cobra instructed Fifth Third Bank to issue a letter of credit to PREPA under the Reimbursement Agreement in the amount of $18.4 million and transferred a total of $19.3 million to a restricted cash account maintained by Fifth Third Bank as collateral for the letter of credit.

On April 11, 2025, we entered into a second amendment to our revolving credit agreement to, among other things, do the following:

receive consent from Fifth Third Bank to effectuate the sale of 5 Star Electric, LLC, Higher Power Electric, LLC and Python Equipment LLC;

permit the Company to repurchase up to the lesser of $50 million or 10 million shares of its common stock on or before March 31, 2026, so long as the aggregate amount of the Company’s unrestricted cash is greater than $50 million after each such repurchase;

expand the Company’s investment opportunities to include equity securities and private investments;

add certain investments and qualified cash to the borrowing base calculation.

On July 2, 2025, the Company entered into a letter agreement in relation to its revolving credit facility whereby the Revolving Loan Commitments are reduced from $75.0 million to $50.0 million.

On October 16, 2023, we, as borrower, and certain of our direct and indirect subsidiaries, as guarantors, also entered into a loan and security agreement with the lenders party thereto and Wexford Capital LP, an affiliate of the Company (the “term credit facility”).

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Of the $64.0 million, $54.4 million was paid to SPCP Group, as Cobra’s assignee under the Assignment Agreement, which fully extinguished Cobra’s and Mammoth’s obligations to SPCP Group, and the Assignment Agreement was terminated.

The remaining $9.6 million was paid to Cobra.

Repurchase Program Authorization

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“Risk Factors--Our ability to repurchase stock may be limited and no assurance can be given that we will be able to effectuate our stock repurchase program in the future at indicated levels or at all.”

Sale-Leaseback Transactions

On December 30, 2020, we entered into an agreement with First National Capital, LLC, or FNC, whereby we agreed to sell certain assets from our infrastructure segment to FNC for aggregate proceeds of $5.0 million.

Concurrent with the sale of assets, we entered into a 36-month lease agreement whereby we lease back the assets at a monthly rental rate of $0.1 million.

On December 30, 2023, this lease was extended 12 months.

On June 1, 2021, we entered into another agreement with FNC whereby we sold additional assets from our infrastructure segment to FNC for aggregate proceeds of $9.5 million and entered into a 42-month lease agreement whereby we lease back the assets at a monthly rental rate of $0.2 million.

On June 1, 2022, we entered into another agreement with FNC whereby we sold additional assets from our infrastructure segment to FNC for

aggregate proceeds of $4.6 million and entered into a 42-month lease agreement whereby we lease back the assets at a monthly rental rate of $0.1 million.

Under the agreements, we have the option to purchase the assets at the end of the lease term, which caused us to fail true sale treatment.

As a result, we recorded a liability for the proceeds received and will continue to depreciate the assets.

We imputed an interest rate so that the carrying amount of the financial liabilities will be the expected repurchase price at the end of the lease terms.

During 2024, the Company changed its estimate of the purchase price at the end of the leases, resulting in charges to interest expense and financing charges, net of $9.9 million.

During the fourth quarter of 2024, we purchased the assets under the June 1, 2021 and June 1, 2022 agreements for an aggregate purchase price of $10.9 million.

Equipment Financing Note

In December 2022, we entered into a 42-month financing arrangement with FNC for the purchase of seven new pressure pumping units for an aggregate value of $9.7 million.

Under this arrangement, we agreed to make monthly principal and interest payments totaling $0.3 million over the term of the agreement.

This note was secured by the seven pressure pumping units and bore interest at an imputed rate of approximately 15.0%.

This equipment note was paid off on December 22, 2023.

Capital Requirements and Sources of Liquidity

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We believe that our cash on hand, including the cash payments received to date under the Settlement Agreement with PREPA, operating cash flow and available borrowings under our currently undrawn credit facility will be sufficient to meet our short-term and long-term funding requirements, including funding our current operations, planned capital expenditures, debt service obligations and known contingencies.

During the year ended December 31, 2024, our capital expenditures totaled $17.1 million, including $12.7 million in our well completion segment primarily related to upgrades to our pressure pumping fleet, $2.8 million in our infrastructure segment primarily related to truck, tooling and equipment purchases for new crews and $1.6 million for our other divisions primarily related to equipment additions for our remote accommodations and equipment rental businesses.

During 2025, we currently estimate that our aggregate capital expenditures for our existing businesses will be approximately $12 million, depending upon industry conditions and our financial results.

These capital expenditures include $5 million for our well completions segment, $1 million for our infrastructure segment, $1 million for our sand segment and $5 million for our other businesses, primarily related to our equipment rentals division.

During the year ended December 31, 2025, our capital expenditures totaled $70.6 million, including $70.0 million in our rental service segment primarily related to purchases of aircraft and equipment for our equipment rental business, $0.1 million in our infrastructure segment primarily related to trailer purchases for fiber optic crews and $0.5 million for our other divisions primarily related to equipment additions for our remote accommodations and drilling businesses.

During 2026, we currently estimate that our aggregate capital expenditures, excluding aviation equipment, will be approximately $11 million, depending upon industry conditions and our financial results.

These capital expenditures include $4 million for equipment rentals in our rental services segment, $2 million for our infrastructure services segment, $3 million for our natural sand proppant services segment, $1 million for our accommodation services segment and $1 million for our drilling services segment.

Additional growth in our infrastructure division is expected to be financed through leasing arrangements.

Also, as noted above in this report, in response to market conditions and reduced demand, we have (i) temporarily shut down certain of our oilfield service offerings, including coil tubing, pressure control, flowback, crude oil hauling, cementing, acidizing and land drilling services, (ii) idled certain facilities, including our sand processing plant in Pierce County, Wisconsin and (iii) reduced our workforce across all of our operations.

Also, as noted above in this report, in response to market conditions and reduced demand, we have (i) temporarily shut down certain of our oilfield service offerings, including crude oil hauling, cementing, acidizing and land drilling services, (ii) idled certain facilities, including our sand processing plant in Pierce County, Wisconsin and (iii) reduced our workforce across all of our operations.

We continue to monitor market conditions to determine if and when we will recommence these services and operations and increase our workforce.

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$ 318 $ 125 $ 193 $ — $ —

Sale-leaseback arrangements (b)

3,283 3,283 — — —

Operating lease obligations (c)

7,313 3,846 2,287 727 453

Financing lease obligations (d)

Operating lease obligations (b)

4,122 2,284 1,228 100 510

Financing lease obligations (c)

$ 4,521 $ 2,463 $ 1,448 $ 100 $ 510

Assumes no outstanding borrowings on the revolving credit facility.

Obligations under a sale-leaseback arrangement for a portion of our infrastructure segment assets.

Operating lease obligations primarily relate to rail cars, real estate and other equipment.

Financing lease obligations primarily relate to equipment for our infrastructure and natural sand proppant segments.

Critical Accounting Estimates

(a) Assumes no outstanding borrowings on the revolving credit facility.

(b) Operating lease obligations primarily relate to rail cars, real estate and other equipment.

Critical Accounting Policies and Estimates

The preparation of financial statements requires the use of judgments and estimates.

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During October 2024, Cobra received the first installment payment of $150.0 million from the Commonwealth of Puerto Rico and the $18.4 million in the Withheld FEMA Funds.

In October 2025, Fifth Third Bank released the $18.4 million letter of credit previously issued under the Reimbursement Agreement with PREPA.

As of December 31, 2025, $20.0 million remained outstanding from PREPA.

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Of the $170.7 million, $89.2 million was charged to credit loss expense, which is included in “selling, general and administrative” in the accompanying consolidated statement of comprehensive loss, and $81.5 million was charged to interest on delinquent accounts receivable, which is included in “other (expense) income, net” in the accompanying consolidated

statement of comprehensive loss.

Of the $170.7 million, $89.2 million was charged to credit loss expense, which is included in “selling, general and

administrative” in the accompanying consolidated statements of comprehensive loss, and $81.5 million was charged to interest on delinquent accounts receivable, which is included in “other (expense) income, net” in the accompanying consolidated statement of operations and comprehensive income (loss).

Complete performance of the Settlement Agreement is not met until PREPA satisfies the remaining $20.0 million payment.

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Valuation of Long-Lived Assets

Long-lived assets on our balance sheet include property, plant and equipment, goodwill and intangible assets.

We test goodwill for impairment annually, or more frequently if events or changes in circumstances indicate that an impairment may exist.

We conduct impairment tests on long-lived assets, other than goodwill, whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Under generally accepted accounting principles, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of one or more of our reporting units is greater than its carrying amount.

If, after assessing the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, there is no need to perform any further testing.

However, if we conclude otherwise, then we are required to perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit.

If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded based on that difference.

During the year ended December 31, 2023, we recorded a goodwill impairment charge of $1.8 million.

We did not recognize any impairment of goodwill for the years ended December 31, 2024 and 2022.

“Impairments” to our consolidated financial statements included elsewhere in this annual report for details regarding the facts and circumstances that led to this impairment and how the fair value of each reporting unit was estimated, including significant assumptions used and other details.

Other Long-Lived Assets.

Impairment of other long-lived assets, including property, plant and equipment and intangible assets is evaluated by measuring the carrying amount of the assets against the estimated undiscounted future cash flows associated with the assets.

If such evaluations indicate that the future undiscounted cash flow from the assets is not sufficient to recover the carrying value of such assets, the assets are adjusted to their estimated fair values.

We did not recognize any impairment of other long-lived assets for the years ended December 31, 2024, 2023 or 2022.

The assumptions used in the impairment evaluation for goodwill and other long-lived assets are inherently uncertain and require management’s judgment.

A continued period of low oil and natural gas prices or continued reductions in capital expenditures by our customers would likely have an adverse impact on our utilization and the prices that we receive for our services.

This could result in the recognition of future material impairment charges if future cash flow estimates, based upon information then available to management, indicate that their carrying values are not recoverable.

Long-lived assets such as property, plant and equipment, operating lease right-of-use assets, sand reserves and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable.

Possible indicators of impairment may include events or changes in circumstances affecting the manner in which the assets are being used, historical and estimated future profitability measures, and other adverse events or changes that could affect the value of the assets.

If a triggering event is identified, recoverability is assessed using undiscounted future net cash flows of assets grouped at the lowest level for which there are identifiable cash flows independent of the cash flows of other groups of assets.

When alternative courses of action to recover the carrying amount of the asset group are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence, which require us to apply judgment.

If the carrying amount of the asset is not recoverable based on its estimated undiscounted cash flows expected to result from the use and eventual disposition, an impairment loss is recognized in an amount by which its carrying amount exceeds its estimated fair value.

The assumptions used in the impairment evaluation of long-lived assets are inherently uncertain and require management’s judgment.

We recognized $31.7 million of impairment of long-lived assets for the year ended December 31, 2025.

We did not recognize any impairment of long-lived assets for the year ended, December 31, 2024.

Litigation and Contingencies

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis