What changed in this filing

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Item 9A. Controls and Procedures

2026-03-06 compared with 2025-03-07 · 696 added, 668 removed, 902 unchanged (60% of the section changed)

1 unchanged sentence

Evaluation of Disclosure Control and Procedures

Under the direction of our Chief Executive Officer and Chief Financial Officer, we have established disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Under the direction of our Chief Operating Officer and Chief Financial Officer, we have established disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to management, including our Chief Operating Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no

matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

As of December 31, 2024, an evaluation was performed under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act.

Based upon our

evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of December 31, 2024, our disclosure controls and procedures are effective.

As of December 31, 2025, an evaluation was performed under the supervision and with the participation of management, including our Chief Operating Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act.

Based upon our evaluation, our Chief Operating Officer and Chief Financial Officer have concluded that as of December 31, 2025, our disclosure controls and procedures are effective.

C hanges in Internal Controls Over Financial Reporting

2 unchanged sentences

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended.

Our internal control over financial reporting is a process designed under the supervision of our Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles.

Our internal control over financial reporting is a process designed under the supervision of our Chief Operating Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles.

As of December 31, 2025, management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

2 unchanged sentences

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Grant Thornton LLP, the independent registered public accounting firm that audited the consolidated financial statements of the Company included in this Annual Report on Form 10-K, has issued their report on the effectiveness of the Company’s internal control over financial reporting at December 31, 2024.

The report, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting at December 31, 2024, is included in this Item under the heading “Report of Independent Registered Public Accounting Firm”.

Deloitte & Touche LLP, the independent registered public accounting firm, has audited the consolidated financial statements of the Company included in this Annual Report on Form 10-K and, as part of their audit, has issued their report on the effectiveness of the Company’s internal control over financial reporting.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

Mammoth Energy Services, Inc.

To the stockholders and the Board of Directors of Mammoth Energy Services, Inc .

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Mammoth Energy Services, Inc.

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2024, and our report dated March 7, 2025 expressed an unqualified opinion on those financial statements.

and subsidiaries (the "Company") as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated March 6, 2026, expressed an unqualified opinion on those financial statements.

Basis for Opinion

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/s/ GRANT THORNTON LLP

/s/ DELOITTE & TOUCHE LLP

Oklahoma City, Oklahoma

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Information required by Item 10 of Part III is incorporated herein by reference to the definitive Proxy Statement to be filed by us pursuant to Regulation 14A of the General Rules and Regulations under the Securities Exchange Act of 1934 within 120 days after the close of the year ended December 31, 2025.

We have adopted a Code of Business Conduct and Ethics that applies to directors and employees, including the Chief Executive Officer, the Chief Financial Officer, controller and persons performing similar functions.

We have adopted a Code of Business Conduct and Ethics that applies to directors and employees, including the Chief Operating Officer, the Chief Financial Officer, controller and persons performing similar functions.

The Code of Business Conduct and Ethics is posted on our website at http://ir.mammothenergy.com/corporate-governance.cfm.

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Report of Independent Registered Public Accounting Firm (PCAOB ID Number 34 )

Report of Independent Registered Public Accounting Firm (PCAOB ID Number 248 )

Consolidated Balance Sheets

Consolidated Statements of Comprehensive Loss

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Changes in Equity

59 unchanged sentences

Revolving Credit Agreement, dated as of October 16, 2023, by and among Mammoth Energy Services, Inc., as borrower, certain of its direct and indirect subsidiaries, as guarantors, the lenders from time to time party thereto, and Fifth Third Bank, National Association, as agent, letters of credit issuer and swing line lender.

Loan and Security Agreement, dated as of October 16, 2023, by and among Mammoth Energy Services, Inc., as borrower, certain of its direct and indirect subsidiaries, as guarantors, the lenders from time to time party thereto and Wexford Capital LP, as agent for lenders.

Assignment Agreement, dated as of December 1, 2023, between Cobra Acquisitions LLC, as seller, Mammoth Energy Services, Inc.

as guarantor, and SPCP Group, LLC, as purchaser.

Mammoth Energy Services, Inc.

2 unchanged sentences

001-37917), filed with the SEC on November 1, 2024).

Equity Interest Purchase Agreement, dated as of April 11, 2025, by and among Lion Power Services LLC, 5 Star Electric, LLC, Higher Power Electrical, LLC, Python Equipment LLC, Peak Utility Services Group, Inc.

and Mammoth Energy Services, Inc.

(incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No.

001-37917), filed with the SEC on April 17, 2025).

Amendment No.

2 to Revolving Credit Agreement, dated as of April 11, 2025, by and among Mammoth Energy Services, Inc.

and Fifth Third Bank, National Association.

(incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K (File No.

001-37917), filed with the SEC on April 17, 2025).

A nnex A to Amendment No.

2 to Revolving Credit Agreement, dated as of April 11, 2025, by and among Mammoth Energy Services, Inc.

and Fifth Third Bank, National Association.

(incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K (File No.

001-37917), filed with the SEC on April 17, 2025).

Equipment Purchase Agreement, dated as of June 16, 2025, by and among Stingray Pressure Pumping LLC, Mammoth Equipment Leasing LLC and MGB Manufacturing, LLC.

(incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No.

001-37917), filed with the SEC on June 20, 2025).

Letter Agreement dated July 2, 2025, by and between Fifth Third Bank, National Association, and Mammoth Energy Services, Inc.

(incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No.

001-37917), filed with the SEC on July 3, 2025).

Equity Purchase Agreement, dated as of December 2, 2025, by and among Aquawolf LLC, Mammoth Energy Partners LLC, Qualus LLC, and Mammoth Energy Services, Inc.

(incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No.

001-37917), filed with the SEC on December 4, 2025).

Mammoth Energy Services Inc.

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Boyd Company Consent.

Consent of Deloitte & Touche LLP with respect to the financial statements of Mammoth Energy Services Inc.

Consent of Grant Thornton LLP with respect to the financial statements of Mammoth Energy Services Inc.

Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

Certification of Chief Operating Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Certification of Chief Operating Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.

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+ Management contract, compensatory plan or arrangement.

MAMMOTH ENERGY SERVICES, INC.

Form 10-K Summary

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Signature Title Date

/s/ Phil Lancaster Chief Executive Officer (principal executive officer) March 7, 2025

Phil Lancaster

/s/ Bernard Lancaster Chief Operating Officer (principal executive officer) March 6, 2026

Bernard Lancaster

/s/ Mark Layton Chief Financial Officer (principal financial and accounting officer) March 6, 2026

/s/ Arthur Amron Director (Chairman of the Board) March 6, 2026

/s/ Paul Jacobi Director and Chief Business Officer March 6, 2026

Palm Director March 6, 2026

/s/ Paul Jacobi Director March 7, 2025

/s/ Arthur Smith Director March 7, 2025

/s/ Phil Lancaster Director March 6, 2026

Phil Lancaster

/s/ Corey Booker Director March 6, 2026

/s/ Mark Plaumann Director March 6, 2026

Mark Plaumann

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of Mammoth Energy Services, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Mammoth Energy Services, Inc.

and subsidiaries (the "Company") as of December 31, 2025, the related consolidated statement of operations and comprehensive income (loss) , changes in equity, and cash flows, for the year ended December 31, 2025, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America .

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 6, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audit .

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment of long-lived assets — Refer to Notes 2 and 6 to the financial statements

Critical Audit Matter Description

The Company assesses its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, referred to as triggering events.

Possible indications 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.

If the carrying amount exceeds the undiscounted future cash flows, an analysis is performed to determine the fair value of the assets and the related impairment.

The Company recorded $31.7 million related to the impairment of long-lived assets for the year ended December 31, 2025.

The Company makes significant assumptions to evaluate long-lived assets for possible indications of impairment.

Changes in these assumptions could have a significant impact on the long-lived assets identified for further analysis.

For those long-lived assets where indications of impairment have been identified, the Company makes significant estimates and assumptions to determine the fair value using either:

(1) undiscounted future cash flows expected to be generated over the life of the asset, including estimates and assumptions related to the discount rate and profitability measures, or (2) external valuations or reasonable market indications of the underlying long-lived assets to approximate a relative fair market value.

Assumptions made by the Company in preparing undiscounted cash flow analyses for long-lived assets are useful life of the underlying assets, forecasts of revenue growth and EBITDA.

We identified the Company’s process to identify impairment indicators for long-lived assets and the measurement of impairment of long-lived assets as a critical audit matter because of (1) the significant judgment management uses when determining whether events or changes in circumstances have occurred indicating that the carrying amounts of long-lived assets may not be recoverable and (2) for those long-lived assets where indications of impairment have been identified, the significant judgment used in determining assumptions to be used in the evaluation of the recoverability of long-lived assets.

Audit procedures performed to evaluate (1) whether management appropriately identified impairment indicators and (2) the reasonableness of management’s assumptions to estimate future cash flows to conclude on the recoverability of the recorded value required a high degree of auditor judgment and an increased extent of audit effort.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to impairment of long-lived assets included the following, among others:

• We tested the effectiveness of internal controls over financial reporting related to management’s evaluation of impairment.

This included controls related to the Company’s process to identify and evaluate triggering events, including the consideration of market conditions in determining whether a triggering event exists;

• We evaluated the Company’s process for identifying qualitative and quantitative impairment indicators of long-lived assets and whether the Company appropriately considered such indicators;

• We developed an independent expectation of impairment indicators and compared such expectation to management’s analysis.

• We evaluated management’s determination of the long-lived asset’s estimated useful life as well as any factors impacting the useful life, such as plans to sell and any relevant purchase and sales agreements for assets sold or assets held for sale.

• We evaluated the reasonableness of the methodology and assumptions used in the Company’s forecasted undiscounted cash flows by:

– Inspecting minutes of the Board of Directors and committees to understand if there were factors that would represent potential impairment indicators for long-lived assets;

– Considering industry and analyst reports and the impact of macroeconomic factors, such as adverse changes in the regulatory environment, legislation or other factors that may represent impairment indicators not previously contemplated in management’s analysis;

– Comparing forecasts to historical financial results;

– Performing sensitivity analysis for the forecasts and revenue growth rate utilized.

/s/ DELOITTE & TOUCHE LLP

Oklahoma City, Oklahoma

March 6, 2026

We have served as the Company’s auditor since 2025.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

1 unchanged sentence

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Mammoth Energy Services, Inc.

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of comprehensive loss, changes in equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated March 7, 2025 expressed an unqualified opinion.

We have audited the accompanying consolidated balance sheet of Mammoth Energy Services, Inc.

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2024, the related consolidated statements of operations and comprehensive income (loss), changes in equity, and cash flows for the year ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.

Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical audit matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

We determined that there are no critical audit matters.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2012.

We served as the Company’s auditor from 2012 to 2024.

Oklahoma City, Oklahoma

March 7, 2025

March 7, 2025 (except for Note 3 and the effects thereof, Note 12, and Note 19 as to which the date is March 6, 2026)

MAMMOTH ENERGY SERVICES, INC.

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ASSETS December 31,

CURRENT ASSETS (in thousands)

CURRENT ASSETS (in thousands, except share data)

Cash and cash equivalents $ 101,987 $ 60,845

Marketable securities 19,635 —

Restricted cash 12,085 19,359

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Inventories 4,083 6,848

Prepaid expenses 1,780 1,931

Current assets held for sale 4,287 —

Other current assets 4,619 10,854

Current assets of discontinued operations 1,518 50,009

Total current assets 177,148 188,587

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Operating lease right-of-use assets 2,591 3,954

Goodwill 9,214 9,214

Deferred income tax asset — 1,844

Other non-current assets 5,767 7,383

Noncurrent assets of discontinued operations 3,678 60,183

Total assets $ 334,894 $ 384,031

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Accrued expenses and other current liabilities 18,336 25,650

Accrued expenses and other current liabilities - related parties — 1,241

Current operating lease liability 2,071 2,643

Income taxes payable 39,899 44,570

Current liabilities of discontinued operations 383 29,537

Total current liabilities 70,016 114,507

Long-term debt from related parties — 42,809

Deferred income tax liabilities 2,430 3,021

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Other long-term liabilities 26 213

Noncurrent liabilities of discontinued operations — 7,922

Total liabilities 76,606 131,213

COMMITMENTS AND CONTINGENCIES (Note 18)

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 48,127,369 and 47,941,652 issued and outstanding at December 31, 2024 and 2023

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 48,358,315 and 48,127,369 issued and outstanding at December 31, 2025 and 2024, respectively

Additional paid-in capital 540,841 540,431

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MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

Years Ended December 31,

2024 2023 2022

REVENUE (in thousands, except per share amounts)

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Total revenue 44,292 45,599

COST AND EXPENSES

COST, EXPENSES AND GAINS

Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $ 6,186 and $ 6,486 , respectively, for 2025 and 2024)

24,158 24,378

Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $ 0 , $ 0 and $ 0 , respectively, for 2024, 2023, and 2022)

Services cost of revenue - related parties 288 366

Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $ 4,106 and $ 5,229 , respectively, for 2025 and 2024)

18,117 17,791

Selling, general and administrative (Note 13)

124,821 37,458 39,554

Selling, general and administrative 19,572 114,468

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

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

Impairment of goodwill — 1,810 —

Impairment of long-lived assets 31,669 —

Total cost and expenses 101,725 165,956

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OTHER INCOME (EXPENSE)

Interest expense and financing charges, net ( 20,497 ) ( 14,955 ) ( 11,506 )

Interest expense and financing charges, net - related parties ( 4,707 ) ( 1,241 ) —

Interest income (expense and financing charges), net 1,670 ( 4,790 )

Interest income (expense and financing charges), net - related parties — ( 4,707 )

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

Total other income (expense) ( 89,825 ) 25,819 29,406

Income (loss) before income taxes ( 218,530 ) 9,134 12,988

Provision (benefit) for income taxes ( 11,204 ) 12,297 13,607

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

OTHER COMPREHENSIVE LOSS

Foreign currency translation adjustment, net of tax of $ 0 , $ 0 and $ 0 , respectively, for 2024, 2023, and 2022

Total other (expense) income ( 2,236 ) ( 74,061 )

Loss from continuing operations before income taxes ( 59,669 ) ( 194,418 )

Provision (benefit) for income taxes from continuing operations 4,087 ( 11,306 )

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 )

OTHER COMPREHENSIVE INCOME (LOSS)

Foreign currency translation adjustment $ 461 $ ( 831 )

Other comprehensive income (loss) 461 ( 831 )

Comprehensive income (loss) $ 5,058 $ ( 208,157 )

Net loss per share from continuing operations, basic and diluted (Note 14)

$ ( 1.32 ) $ ( 3.81 )

Comprehensive loss $ ( 208,157 ) $ ( 2,942 ) $ ( 1,529 )

Net loss per share (basic and diluted) (Note 16)

Net income (loss) per share from discontinued operations, basic and diluted (Note 14)

1.42 ( 0.50 )

Net income (loss) per share, basic and diluted (Note 14)

$ 0.10 $ ( 4.31 )

Weighted average number of shares outstanding, basic and diluted (Note 14)

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Additional Other

Common Stock Retained Paid-In Comprehensive

Shares Amount Deficit Capital Loss Total

Common Stock Paid-In Accumulated Comprehensive

Shares Amount Capital Deficit Loss Total Equity

(in thousands)

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Stock based compensation 231 2 410 — — 412

Shares repurchased ( 166 ) ( 2 ) ( 917 ) ( 919 )

Net loss — — ( 3,163 ) — — ( 3,163 )

Net income — — — 4,597 — 4,597

Other comprehensive income — — — — 461 461

Balance at December 31, 2025 48,358 $ 483 $ 540,841 $ ( 279,046 ) $ ( 3,990 ) $ 258,288

Stock based compensation 186 2 — 873 — 875

Net loss — — ( 207,326 ) — — ( 207,326 )

Other comprehensive loss — — — — ( 831 ) ( 831 )

Balance at December 31, 2024 48,127 $ 481 $ ( 283,643 ) $ 540,431 $ ( 4,451 ) $ 252,818

The accompanying notes are an integral part of these consolidated financial statements.

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Years Ended December 31,

2024 2023 2022

Cash flows from operating activities (in thousands)

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

Adjustments to reconcile net loss to cash provided by (used in) operating activities:

Cash flows from operating activities:

(in thousands)

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

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

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

Adjustments to reconcile net loss from continuing operations to net cash (used in) provided by operating activities:

Stock based compensation 412 875

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Gains from sales of equipment damaged or lost down-hole ( 221 ) ( 157 )

Impairment of goodwill — 1,810 —

Gain on sale of business — ( 2,080 ) —

Impairment of long-lived assets 31,669 —

Inventory obsolescence — 97

Deferred income taxes ( 591 ) 4,237

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Inventories 116 43

Prepaid expenses and other assets 195 354 ( 710 )

Other current assets 6,200 590

Accounts payable ( 2,843 ) ( 1,643 )

2 unchanged sentences

Income taxes payable ( 4,671 ) ( 16,743 )

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 provided by operating activities ( 18,570 ) 180,717

Cash flows from investing activities:

Purchases of property and equipment ( 17,065 ) ( 19,395 ) ( 12,737 )

Business divestitures, net of cash transferred — 3,276 —

Proceeds from disposal of property and equipment 6,633 7,333 10,613

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

Purchases of property, plant and equipment ( 70,552 ) ( 1,214 )

Contributions to equity investee ( 368 ) —

Proceeds from disposal of property, plant and equipment 7,950 5,061

Purchase of marketable securities ( 19,534 ) —

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 provided by (used in) investing activities 54,546 ( 10,432 )

Cash flows from financing activities:

Borrowings on long-term debt — 201,091 197,975

Borrowings on long-term debt - related parties — 43,874 —

Repayments of long-term debt — ( 284,610 ) ( 199,430 )

Repayments of long-term debt - related parties ( 50,888 ) — —

Proceeds from financing transaction, net — 46,120 —

Payments on financing transaction (Note 10) ( 46,837 ) — —

Proceeds from sale-leaseback transaction — — 4,589

Payments on sale-leaseback transaction ( 12,407 ) ( 4,958 ) ( 4,429 )

Repayments on long-term debt - related parties — ( 50,888 )

Payments on financing transaction — ( 46,837 )

Principal payments on financing leases and equipment financing notes ( 433 ) ( 469 )

Debt issuance costs — ( 37 )

Other — ( 919 ) —

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 )

Net cash used in financing activities ( 4,287 ) ( 112,113 )

Effect of foreign exchange rate on cash 109 ( 144 )

Net increase (decrease) in cash, cash equivalents and restricted cash 58,028 7,016 7,383

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

Cash, cash equivalents and restricted cash at beginning of period 82,326 24,298

Cash, cash equivalents and restricted cash at end of period 114,124 82,326

Cash, cash equivalents and restricted cash of discontinued operations at end of period 52 2,122

Cash, cash equivalents and restricted cash of continuing operations $ 114,072 $ 80,204

The accompanying notes are an integral part of these consolidated financial statements.

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Years Ended December 31,

2024 2023 2022

Supplemental disclosure of cash flow information:

Supplemental disclosure of cash flow information for continuing operations:

(in thousands)

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Cash paid for income taxes, net of refunds received $ 817 $ 1,102

Supplemental disclosure of non-cash transactions:

Supplemental disclosure of non-cash transactions for continuing operations:

Interest paid in kind - related parties $ — $ 5,888

Purchases of property and equipment included in accounts payable and accrued expenses $ 5,650 $ 3,339 $ 4,736

Purchases of property, plant and equipment included in accounts payable and accrued expenses $ 260 $ 231

Right-of-use assets obtained for financing lease liabilities $ — $ 150

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Mammoth Energy Services, Inc.

(“Mammoth Inc.”, “Mammoth” or the “Company”), together with its subsidiaries, is an integrated, growth-oriented company serving both the oil and gas and the electric utility industries in North America and US territories.

Mammoth Inc.’s infrastructure division provides engineering, design, construction, upgrade, maintenance and repair services to various public and private owned utilities.

Its oilfield services division provides a diversified set of services to the exploration and production industry including well completions and natural sand proppant services.

Additionally, the Company provides aviation services, equipment rentals, remote accommodation services and equipment manufacturing.

(“Mammoth Inc.”, “Mammoth” or the “Company”), together with its subsidiaries, is an integrated, growth-oriented company focused on providing products and services to our customers primarily in the oil and natural gas, aviation and utility infrastructure industries in North America.

Mammoth’s suite of services includes rental services, infrastructure services, natural sand proppant services, accommodation services and drilling services.

The Company’s rental services include a wide range of equipment used in oilfield, construction and aviation activities.

The Company’s infrastructure services include providing fiber optic services to the utility infrastructure industry.

The Company’s natural sand proppant services include mining, processing and selling natural sand proppant used for hydraulic fracturing.

The Company’s accommodation services include housing, kitchen and dining, and recreational service facilities for workers located in remote areas away from readily available lodging.

The Company’s drilling services includes providing directional drilling to oilfield operators.

The Company was incorporated in Delaware in June 2016.

The following companies (“Operating Entities”) are included in these consolidated financial statements:

The following companies are included in these consolidated financial statements:

Bison Drilling and Field Services, LLC (“Bison Drilling”), formed November 2010;

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Piranha Proppant LLC (“Piranha”), formed March 2017;

Higher Power Electrical LLC (“Higher Power”), acquired April 2017;

Higher Power Electrical LLC (“Higher Power”), acquired April 2017 and sold April 2025;

Stingray Energy Services LLC (“SR Energy”), acquired June 2017;

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South River Road, LLC (“South River”), acquired June 2017;

5 Star Electric, LLC (“5 Star”), acquired July 2017;

5 Star Electric, LLC (“5 Star”), acquired July 2017 and sold April 2025;

Tiger Shark Logistics LLC (“Tiger Shark”), formed October 2017;

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Orca Energy Services LLC (“Orca”), formed June 2018;

Python Equipment LLC (“Python”), formed December 2018;

Air Rescue Systems LLC (“ARS”), acquired December 2018 and sold July 2023;

Python Equipment LLC (“Python”), formed December 2018 and sold April 2025;

Leopard Aviation LLC (“Leopard”), formed April 2019;

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Anaconda Manufacturing LLC (“Anaconda”), formed July 2019;

Aquawolf LLC (“Aquawolf”), formed September 2019;

Aquawolf LLC (“Aquawolf”), formed September 2019 and sold December 2025;

and Falcon Fiber Solutions LLC (“Falcon”), formed March 2021.

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

Activity for ARS through the date of sale is included in the accompanying consolidated financial statements.

On December 13, 2024, the following entities were merged into Orca:

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and IFX Transport LLC (“IFX”).

The Company’s well completion services include equipment and personnel used in connection with the completion and early production of oil and natural gas wells.

The Company’s infrastructure services include engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry as well as repair and restoration services in response to storms and other disasters.

The Company’s natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry.

The Company also provides other services, including directional drilling, aviation, equipment rentals, remote accommodations and equipment manufacturing.

On April 11, 2025, the Company completed a transaction to sell a portion of its infrastructure services entities, including its distribution, transmission and substation operations, for aggregate proceeds of $ 108.7 million, subject to customary post-closing adjustments.

On June 16, 2025, the Company sold all of the equipment previously used in its hydraulic fracturing services for $ 15.0 million.

Additionally, on December 2, 2025, the Company completed a transaction to sell its engineering business for $ 30.0 million.

These transactions reflect a strategic shift in the Company’s business.

Results of operations, financial position and cash flows for these services are reported as discontinued operations for all periods presented and discussed in this report.

Refer to Note 3 for further information.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s rental services include a wide range of equipment used in oilfield, construction and aviation activities.

The Company’s infrastructure services include providing design and fiber optic services to the utility infrastructure industry.

The Company’s natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry.

The Company’s accommodation services include housing, kitchen and dining, and recreational service facilities for workers located in remote areas away from readily available lodging.

The Company’s drilling services includes providing directional drilling to oilfield operators.

The Company’s operations are concentrated in North America.

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Decreases in the commodity prices for oil and natural gas would have a material adverse effect on the Company’s results of operations and financial condition.

During the periods presented in this report, the Company provided its infrastructure services primarily in the northeastern, southwestern, midwestern and western portions of the United States.

The Company’s infrastructure business depends on infrastructure spending on maintenance, upgrade, expansion and repair and restoration.

Any prolonged decrease in spending by electric utility companies, delays or reductions in government appropriations or the failure of customers to pay their receivables could have a material adverse effect on the Company’s results of operations and financial condition.

During the periods presented in this report, the Company provided its infrastructure services primarily in the southwestern and midwestern portions of the United States.

Summary of Significant Accounting Policies

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The accompanying consolidated financial statements are prepared in accordance with GAAP and include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary.

All material intercompany accounts and transactions between the entities within the Company have been eliminated.

All intercompany accounts and transactions have been eliminated.

Unless otherwise indicated, information in these notes to our consolidated financial statements relates to continuing operations.

Certain of our operations have been presented as discontinued.

See Note 3 for further information.

Variable Interest Entities

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Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation.

Previously, the Company included Bison Drilling and Panther in its drilling reportable segment.

The Company now presents Bison Drilling and Panther in the “All Other” reconciling column.

On December 13, 2024, Anaconda Rentals, Aquahawk, Barracuda, Bison Sand, IFX, Ivory Freight, Coil Tubing, Redback Energy, Pumpdown, Stingray Cementing and WTL were merged into Orca.

Prior to 2024, Aquahawk, Bison Sand and Pumpdown were included in the Company’s well completion segment and Barracuda was included in the Company’s natural sand proppant services segment.

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

The results for the years ended December 31, 2023 and 2022 have been retroactively adjusted to reflect these changes.

Due to the merger of these entities into Orca, the results for Aquahawk, Bison Sand, Pumpdown and Barracuda are now included in Other Services.

The results for the year ended December 31, 2024 have been retroactively adjusted to reflect these changes.

There was no impact on previously reported total assets, total liabilities, net income (loss) or equity for the periods presented.

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All highly liquid investments with an original maturity of three months or less are considered cash equivalents.

Restricted cash as of December 31, 2024 consisted of amounts held by the Company’s lender as collateral for a letter of credit and bonds.

These amounts are expected to be released upon expiration of the corresponding letter of credit and bonds.

Restricted cash as of December 31, 2023 consisted of amounts held by the Company’s lender as collateral for letters of credit and card program.

Restricted cash at December 31, 2025 consisted of amounts held in escrow related to the sale of certain of our infrastructure subsidiaries as discussed in Note 3.

Restricted cash as of December 31, 2024 consisted of amounts held by the Company’s lender as collateral for a letter of credit, which was subsequently released in October 2025.

The Company maintains its cash accounts in financial institutions that are insured by the Federal Deposit Insurance Corporation, with the exception of cash held by Sand Tiger in a Canadian financial institution.

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however, the Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risks on such accounts.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sums to the total of the same such amounts shown in the statement of cash flows.

Cash and cash equivalents $ 101,987 $ 60,845

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Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 114,072 $ 80,204

Accounts Receivable

Marketable Securities

The Company considers all of its marketable publicly held securities as available for use in current operations, and therefore classifies these securities within current assets on the consolidated balance sheets.

Securities are carried at fair value, with the change in unrealized gains and losses, net of tax, reported within “other (expense) income, net” on the consolidated statements of operations and comprehensive income (loss) until realized.

Accounts Receivable, net

Accounts receivable include amounts due from customers for services performed or goods sold.

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Customer balances are generally considered delinquent if unpaid by the due date, which generally ranges from 30 to 60 days following the invoice date, and credit privileges may be revoked if balances remain unpaid.

Interest on delinquent trade accounts receivable is recognized in “other (expense) income, net” in the consolidated statement of comprehensive loss when chargeable and collectability is reasonably assured.

Interest on delinquent trade accounts receivable is recognized in “other (expense) income, net” on the consolidated statement of comprehensive income (loss) when chargeable and collectability is reasonably assured.

During the period October 2017 through March 2019, the Company provided infrastructure services in Puerto Rico under master services agreements entered into by Cobra, one of the Company’s subsidiaries, with the Puerto Rico Electric Power Authority (“PREPA”) to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria.

During the years ended December 31, 2024, 2023 and 2022, the Company charged interest on delinquent trade accounts receivable pursuant to the terms of its agreements with PREPA totaling $ 20.8 million, $ 45.4 million and $ 41.3 million, respectively.

During the year ended December 31, 2024, the Company charged interest on delinquent trade accounts receivable pursuant to the terms of its agreements with PREPA totaling $ 20.8 million.

As discussed in more detail below, on July 22, 2024, Cobra entered into a release and settlement agreement with PREPA and the Financial Oversight and Management Board for Puerto Rico (the “FOMB”), in its capacity as Title III representative for PREPA, to settle all outstanding matters between Cobra and PREPA (the “Settlement Agreement”).

As a result of the Settlement Agreement, Cobra recognized a charge to interest on delinquent accounts receivable totaling $ 81.5 million during the three months ended June 30, 2024 to reduce its accounts receivable balance to the amount expected to be collected in relation to interest charged to PREPA.

These amounts are included in “other (expense) income, net” in the accompanying consolidated statement of comprehensive loss.

Included in “accounts receivable, net” in the accompanying consolidated balance sheets as of December 31, 2023 were interest charges of $ 197.5 million.

These amounts are included in “other (expense) income, net” in the accompanying consolidated statement of comprehensive income (loss).

See below for a full description of the Settlement Agreement and its impact on the Company’s financial statements for the year ended December 31, 2024.

As of December 31, 2025 and 2024, accounts receivable included receivables from contracts with customers totaling $ 28.1 million and $ 31.3 million, respectively.

Included in accounts receivable at each of December 31, 2024 and 2023, were receivables related to income taxes totaling $ 8.9 million.

Included in accounts receivable at December 31, 2024, were receivables related to income taxes totaling $ 8.9 million.

MAMMOTH ENERGY SERVICES, INC.

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Uncollectible accounts receivable are periodically charged against the allowance for expected credit losses once a final determination is made regarding their collectability.

Following is a roll forward of the allowance for expected credit losses for the years ended December 31, 2024, 2023 and 2022 (in thousands):

Balance, January 1, 2022 $ 18,085

Change in provision for expected credit losses 3,550

Recoveries of receivables previously charged to credit loss expense ( 161 )

Write-offs charged against the provision ( 17,887 )

Balance, December 31, 2022 3,587

Change in provision for expected credit losses 47

Recoveries of receivables previously charged to credit loss expense ( 638 )

Write-offs charged against the provision ( 2,831 )

Following is a roll forward of the allowance for expected credit losses for the year ended December 31, 2025 (in thousands):

Balance, December 31, 2024 $ 171,264

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Balance, December 31, 2025 $ 170,937

The Company has made specific reserves consistent with Company policy which resulted in additions to allowance for expected credit losses totaling $ 171.5 million, a nominal amount and $ 3.6 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

The Company has made specific reserves consistent with Company policy which resulted in additions to allowance for expected credit losses totaling $ 0.1 million and $ 171.4 million respectively, for the years ended December 31, 2025 and 2024.

These additions were charged to credit loss expense based on the factors described above.

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On July 22, 2024, Cobra entered into a release and settlement agreement with PREPA and the FOMB, in its capacity as Title III representative for PREPA, to settle all outstanding matters between Cobra and PREPA.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under the terms of the Settlement Agreement, Cobra was allowed an administrative expense claim against PREPA of $ 170.0 million, plus the $ 18.4 million in the Withheld FEMA Funds.

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and (iii) $ 18.4 million (subject to providing one or more indemnity letters of credit) in the Withheld FEMA Funds within either (A) ten business days after the deadline for appealing the entry of the settlement order by the Title III Court under the applicable bankruptcy rules of procedure if no such appeal is filed, or (B) if the provisions of the settlement order allowing PREPA to release the Withheld FEMA Funds to Cobra without retaining any liability to the Specified Municipalities are appealed by the Specified Municipalities, within ten business days of the filing of the notice of such appeal.

The Settlement Agreement was approved by the Company’s Board of Directors on July 22, 2024, and was also approved

by the PREPA Board and by the FOMB.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Settlement Agreement was approved by the Company’s Board of Directors on July 22, 2024, and was also approved by the PREPA Board and by the FOMB.

On September 18, 2024, the Settlement Agreement was approved by the Title III Court overruling all objections thereto and an order was entered the same day (the “Settlement Order”).

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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” 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 operation and comprehensive income (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 statements of operation and comprehensive income (loss).

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

Therefore, the Company recorded the $ 170.7 million as an allowance for expected credit losses.

Inventory consists of raw sand and processed sand available for sale, raw materials, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services.

Inventory consists of raw sand and processed sand available for sale and supplies used in performing services.

Inventory is stated at the lower of cost or market (net realizable value) on an average cost basis.

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See Note 5 for additional disclosure related to inventory.

Prepaid Expenses

Other Current Assets

Prepaid expenses primarily consist of insurance costs and lease expense.

These costs are expensed over the periods that they benefit.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other Current Assets

Other current assets primarily consists of financed insurance premiums related to our insurance policies.

These costs are expensed over the terms of the policies.

Property and Equipment

Property and equipment, including renewals and betterments, are capitalized and stated at cost, while maintenance and repairs that do not increase the capacity, improve the efficiency or safety, or improve or extend the useful life are charged to operations as incurred.

Property, Plant and Equipment, net

Property, plant and equipment, including renewals and betterments, are capitalized and stated at cost, while maintenance and repairs that do not increase the capacity, improve the efficiency or safety, or improve or extend the useful life are charged to operations as incurred.

Disposals are removed at cost, less accumulated depreciation, and any resulting gain or loss is recorded in operations.

Depreciation is calculated using the straight-line method over the shorter of the estimated useful life, or the remaining lease term, as applicable.

Depreciation does not begin until property and equipment is placed in service.

Once placed in service, depreciation on property and equipment continues while being repaired, refurbished, or between periods of deployment.

Sand Reserves

Depreciation does not begin until property, plant and equipment is placed in service.

Once placed in service, depreciation on property, plant and equipment continues while being repaired, refurbished, or between periods of deployment.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Sand Reserves, net

Sand reserve costs include engineering, mineralogical studies and other related costs to develop the mine, the removal of overburden to initially expose the mineral and building access ways.

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The Company reviews long-lived assets for recoverability in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 360, Impairment or Disposal of Long-Lived Assets , which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset.

These evaluations for impairment are significantly impacted by estimates of revenues, costs and expenses and other factors.

If long-lived assets are considered to be impaired, the impairment to be recognized is measured by the amount in which the carrying amount of the assets exceeds the fair value of the assets.

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.

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.

See Note 6 for additional disclosure related to impairment of long-lived assets.

Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired.

If it is determined that an impairment exists, an impairment charge is recognized for the excess of carrying value over implied fair value.

The fair value is determined using a combination of the income and market approaches.

See Note 7 and Note 8 for additional disclosures related to goodwill.

Other Non-Current Assets

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Investments are accounted for under the equity method in circumstances where the Company has the ability to exercise significant influence over the operating and investing policies of the investee, but does not have control.

Under the equity method, the Company recognizes its share of the investee’s earnings in its consolidated statements of comprehensive loss.

Under the equity method, the Company recognizes its share of the investee’s earnings in its consolidated statements of operations and comprehensive income (loss).

Investments are evaluated for impairment and a charge to earnings is recognized when any identified impairment is determined to be other than temporary.

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Changes in estimates are reflected in earnings in the period an estimate is revised.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Following is a roll forward of the Company’s asset retirement obligations for the years ended December 31, 2024 and 2023 (in thousands):

Following is a rollforward of the Company’s asset retirement obligations for the years ended December 31, 2025 and 2024 (in thousands):

Balance as of beginning of period $ 4,234 $ 4,140

Additions and revisions of prior estimates — —

Accretion expense 114 161

Impairment ( 1,629 ) —

Foreign currency translation adjustment 40 ( 67 )

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Intangible assets subject to amortization include trade names, which are amortized over their estimated useful lives.

See Note 8 for additional disclosure related to intangible assets.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value of Financial Instruments

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The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The Company’s assessment of the significance of a particular input to the fair value measurements in its entirety requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities.

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Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value.

The Company elected the fair value option for measuring the liability of the Assignment Agreement, as defined herein.

To estimate the fair value of the liability, the Company used inputs that are not observable in the market (Level 3) based on an income approach.

The Company used the contractual settlement amount, imputed interest rate and expected timing of cash flows to estimate the liability as of December 31, 2023 using the discounted cash flow model.

See Notes 10 and 20.

The carrying amount of cash and cash equivalents, restricted cash, trade receivables, trade payables and receivables and payables from related parties approximates fair value because of the short-term nature of the instruments.

The fair value of debt approximates it s carrying value because the cost of borrowing fluctuates based upon market conditions.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

There were no transfers into, or out of, the three levels of fair value hierarchy for the years ended December 31, 2025 and 2024.

The Company’s financial instruments consist of cash and cash equivalents, marketable securities, restricted cash, accounts receivable, accounts payable as well as financing and operating lease obligations and financed insurance premium obligations.

The carrying values of cash and cash equivalents, marketable securities, restricted cash, accounts receivable and accounts payable approximated fair value on December 31, 2025 and 2024 due to their short-term nature.

The carrying values of amounts outstanding under financing and operating lease obligations and financed insurance premium obligations approximated fair value on December 31, 2025 and 2024, as the effective borrowing rates approximated market rates.

Recurring Measurements

The fair value of the Company’s cash equivalents and marketable securities are measured on a recurring basis and are carried at estimated fair value.

Cash equivalents consist of money market accounts and treasury bills which the Company has classified as Level 1 given the active market for these assets.

Marketable securities are presented and are also classified as Level 1 due to their quoted prices in active markets.

At December 31, 2025 and 2024, the Company had cash equivalents and marketable securities measured at fair value of $ 113.6 million and $ 56.5 million, respectively.

Nonrecurring Measurements

The Company estimates fair value to perform impairment tests on long-lived assets including property, plant and equipment.

The inputs used to determine such fair value may be based on internally developed cash flow models or market appraisals, both of which would generally be classified within Level 3 in the event that such assets were required to be measured and recorded at fair value.

As discussed in Note 6, the Company changed the classification of certain of its natural sand proppant assets from held for use to held for sale during the year ended December 31, 2025, which required the Company to estimate the fair value of such assets using Level 3 inputs described above.

The Company determined that the carrying value of these natural sand proppant assets exceeded the fair value and, therefore, recognized impairment expense of $ 31.7 million during the year ended December 31, 2025.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As discussed in Note 6, the Company changed the classification of its drilling rig assets from held for use to held for sale during the year ended December 31, 2025, which required the Company to estimate the fair value of such assets.

Cash flow models or market appraisals used to determine such fair value may be based on inputs that are classified within Level 3.

The Company determined that the fair value of its drilling rig assets exceeding the carrying value and, therefore, no impairment was recognized.

At December 31, 2024, certain of the Company’s assets used in its other services were triggered for impairment based on their operating cash flows.

The Company estimated the fair value of these assets and determined the fair value exceeded the carrying value and, therefore, no impairment was recognized at December 31, 2024.

Revenue Recognition

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The Company had $ 1.4 million and $ 1.6 million of deferred revenue included in “accrued expenses and other current liabilities” in the accompanying consolidated balance sheets at December 31, 2025 and 2024.

Loss per Share

Loss per share is computed by dividing net loss by the weighted average number of outstanding shares.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Earnings per Share

Basic and diluted loss per share from continuing operations is computed using net loss from continuing operations and the weighted‑average common shares outstanding.

Net income (loss) from discontinued operations, net of income taxes, is presented separately, and net income (loss) per share is computed using consolidated net income (loss).

Diluted EPS excludes securities that are anti‑dilutive.

Equity-based Compensation

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Certain income from our infrastructure services segment and income from our remote accommodations business is subject to foreign income taxes, and such taxes are provided in the financial statements pursuant to FASB ASC 740 .

The Company evaluates tax positions taken or expected to be taken in preparation of its tax returns and disallows the recognition of tax positions that do not meet a “more likely than not” threshold of being sustained upon examination by the taxing authorities.

The Company has recorded interest and penalty payable of $ 8.5 million and $ 5.0 million at December 31, 2024 and 2023, respectively, related to the 2022 and 2023 tax year returns in Puerto Rico.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the taxing authorities.

The Company has recorded interest and penalty payable of $ 12.5 million and $ 8.5 million at December 31, 2025 and 2024, related to the 2022, 2023 and 2024 tax year returns in Puerto Rico and the 2020 tax year return in the United States.

It is the Company’s policy to recognize interest and applicable penalties in income tax expense.

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Resulting translation adjustments are recorded within accumulated other comprehensive loss.

Assets and liabilities denominated in foreign currencies, if any, are re-measured at the balance sheet date.

Assets and liabilities denominated in foreign currencies are re-measured at the balance sheet date.

Transaction gains or losses are included as a component of current period earnings.

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Management has established procedures for the ongoing evaluation of the Company’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures.

Environmental expenditures

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

that relate to current operations are expensed or capitalized as appropriate.

Environmental expenditures that relate to current operations are expensed or capitalized as appropriate.

Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed as incurred.

Liabilities are recorded when environmental costs are probable and the costs can be reasonably estimated.

The Company maintains insurance which may cover in whole or in part certain environmental expenditures.

The Company had $ 0.6 million of probable environmental liabilities included in “ accounts payable ” in the accompanying consolidated balance sheet at December 31, 2023.

During the year ended December 31, 2024, the Company made payments totaling $ 0.2 million to resolve this matter.

As of December 31, 2024, there were no probable environmental matters.

Other Comprehensive Loss

Comprehensive loss consists of net loss and other comprehensive loss.

Other comprehensive loss included certain changes in equity that are excluded from net loss.

The Company maintains insurance which may cover in whole or in part certain environmental matters.

As of December 31, 2025 and 2024, there were no probable environmental matters.

Other Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss) and other comprehensive loss.

Other comprehensive income (loss) included certain changes in equity that are excluded from net income (loss).

Specifically, cumulative foreign currency translation adjustments are included in accumulated other comprehensive loss.

11 unchanged sentences

10 % 10 % 2 % 2 %

Customer A is a third-party customer.

Revenues and the related accounts receivable balances earned from Customer A were derived from the Company’s well completion services segment.

Customer B is a third-party customer.

Revenues and the related accounts receivable balances earned from Customer B were derived from the Company’s well completion services segment.

Customer C is a third-party customer.

Revenues and the related accounts receivable balances earned from Customer C were derived from the Company’s infrastructure services segment.

Accounts receivable for Customer C also includes receivables due for interest charged on delinquent accounts receivable.

Customer D (d)

5 % 12 % — % 15 %

Customer E (e)

— % — % 69 % 49 %

(a) Revenues and the related accounts receivable balances earned from Customer A were derived from the Company’s natural sand proppant services segment.

(b) Revenues and the related accounts receivable balances earned from Customer B were derived from the Company’s accommodations services segment.

(c) Revenues and the related accounts receivable balances earned from Customer C were derived from the Company’s rental services segment.

(d) Revenues and the related accounts receivable balances earned from Customer D were derived from the Company’s natural sand proppant services segment.

(e) The accounts receivable balance with Customer E was derived from the Company’s other services.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

New Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280)”, which is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses.

The amendment requires disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) as well as other segment items, extends certain annual disclosures to interim periods, clarifies the applicability to single reportable segment entities, permits more than one measure of profit or loss to be reported under certain conditions and requires disclosure of the title and position of the CODM.

The Company adopted this standard on December 31, 2024.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses”, which requires disclosure of specified information about certain costs and expenses.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted, and should be applied either on a prospective basis or retrospective basis.

The Company is currently assessing the impact of this ASU on the Company’s consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which amends ASC 326-20 to provide a practical expedient for all entities when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606.

The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset.

ASU 2025-05 is effective for fiscal years beginning after December 15, 2025 and interim periods within those fiscal years, with early adoption permitted, and should be applied on a prospective basis.

The Company is currently assessing the impact of this ASU on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU No.

2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements (“ASU 2025-11”).

The amendments clarify and reorganize existing interim reporting guidance, including the scope of Topic 270 and interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose material events or changes occurring since the most recent annual reporting period.

ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2025-11 on its consolidated financial statements and related disclosures.

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures”, which requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option.

The Company is currently evaluating the impact that adoption of ASU 2023-09 will have on its disclosures.

Revenues from Contracts with Customers

The Company’s primary revenue streams include well completion services, infrastructure services, natural sand proppant services and other services, which includes directional drilling, aviation, equipment rentals, remote accommodations and equipment manufacturing.

See Note 21 for the Company’s revenue disaggregated by type.

Improvements to Income Tax Disclosures (“ASU 2023-09”), which enhances income tax disclosures primarily through additional disaggregation and standardization of the effective tax rate reconciliation and disclosure of income taxes paid by jurisdiction.The Company adopted ASU 2023‑09 for the year ended December 31, 2025, and applied the amended disclosure requirements retrospectively to all periods presented.

See Note 12, “Income Taxes” to our consolidated financial statements.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Discontinued Operations

T&D Transaction

On April 11, 2025, Lion Power Services LLC (“Lion”), a subsidiary of the Company, entered into an Equity Interest Purchase Agreement (the “T&D Agreement”), as the seller, with Peak Utility Services Group, Inc.

(“Peak”), as the buyer, pursuant to which Lion sold all equity interests in its wholly-owned subsidiaries 5 Star Electric, LLC (“5 Star”), Higher Power Electrical, LLC (“Higher Power”) and Python Equipment LLC (“Python”) (the “T&D Transaction”).

These subsidiaries provided transmission, distribution and substation services and were previously included in the Company’s Infrastructure segment, as defined in Note 19.

The T&D Transaction was completed simultaneously with the signing of the T&D Agreement on April 11, 2025.

The aggregate sales price in connection with the T&D Transaction was approximately $ 108.7 million, subject to customary post-closing adjustments.

Of the $ 108.7 million, $ 98.3 million was paid to Lion and the remaining $ 10.4 million was deposited into an escrow account for the purposes of funding post-closing adjustments for at least ninety days and indemnified liabilities until at least May 15, 2026.

The T&D Agreement includes customary representations, warranties and covenants by the parties.

In addition, the T&D Agreement provides for customary indemnification rights with respect to a breach of a representation, warranty or covenant by either party, subject to customary thresholds and caps on liability.

Pressure Pumping Transaction

On June 16, 2025, Stingray Pressure Pumping LLC (“Stingray”) and Mammoth Equipment Leasing LLC (“Mammoth Equipment”), subsidiaries of the Company, entered into an Equipment Purchase Agreement (the “Pressure Pumping Agreement”), as the sellers, with MGB Manufacturing, LLC (“MGB”), as the buyer, pursuant to which Stingray and Mammoth Equipment sold all of the Company’s equipment used in its hydraulic fracturing services, which was included in the Company’s historical well completion segment, to MGB for $ 15.0 million (the “Pressure Pumping Transaction”) .

The Pressure Pumping Transaction was completed simultaneously with the signing of the Pressure Pumping Agreement on June 16, 2025.

In conjunction with the Pressure Pumping Transaction, the Company has ceased operations of its sand hauling and equipment manufacturing services, which operations primarily served Stingray and Mammoth Equipment.

All assets and liabilities associated with the Company’s sand hauling and equipment manufacturing services are included in discontinued operations.

Engineering Transaction

On December 2, 2025, Mammoth Energy Partners LLC ("MEP"), a subsidiary of Mammoth Energy Services, Inc.

(“Mammoth” or the “Company”), entered into an Equity Purchase Agreement (the “Agreement”), as the seller, with Qualus, LLC (“Qualus”), as the buyer, and Aquawolf LLC ("Aquawolf"), MEP's wholly-owned subsidiary and the subject of the sale, as a party to the Agreement.

Pursuant to the Agreement, MEP sold all equity interests in Aquawolf, which was included in the Company’s Infrastructure segment, to Qualus for $ 30.0 million (the “Engineering Transaction” and collectively with the Pressure Pumping Transaction and T&D Transaction, the “Transactions”)).

The Engineering Transaction was completed simultaneously with the signing of the Agreement on December 2, 2025.The aggregate sales price in connection with the Transaction was approximately $ 30.0 million, subject to customary post-closing adjustments, including reductions for closing indebtedness, working capital shortfall, and transaction expenses.

Of the $ 30.0 million, $ 23.5 million was paid to MEP and $ 2.5 million was deposited into an escrow account for the purposes of funding post-closing adjustments for at least ninety days and indemnified liabilities until at least December 1, 2026.

The Agreement includes customary representations, warranties and covenants by the parties.

In addition, the Agreement provides for customary indemnification rights with respect to a breach of a representation, warranty or covenant by either party, subject to customary thresholds and caps on liability.

The Transactions and ceasing operations of the Company’s sand hauling and equipment manufacturing services reflect a strategic shift in the Company’s business.

Therefore, the results of operations and cash flows of the services discussed above are classified as discontinued operations in the Company’s consolidated statements of operations and comprehensive income (loss) and consolidated statements of cash flows for all periods presented.

The related assets and liabilities associated with the discontinued operations are included in the financial statement line items labeled discontinued operations in the consolidated balance sheets as of December 31, 2025 and December 31, 2024.

Amounts presented in discontinued operations have been derived from our consolidated financial statements and accounting records using the historical basis of assets, liabilities, results of operations and cash flows of the services discussed above.

The discontinued operations exclude general corporate allocations.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the major classes of assets and liabilities of discontinued operations in the Company’s consolidated balance sheets (in thousands):

T&D Transaction Pressure Pumping Transaction Engineering Transaction

December 31, December 31, December 31,

2025 2024 2025 2024 2025 2024

Carrying amounts of the major classes of assets included in discontinued operations:

Cash and cash equivalents $ — $ — $ 50 $ 122 $ — $ —

Restricted cash — 2,000 — — — —

Accounts receivable, net — 22,408 1,036 12,843 — 3,097

Inventories — — 264 8,271 — —

Other current assets — 404 168 338 — 526

Total current assets of discontinued operations — 24,812 1,518 21,574 — 3,623

Property, plant and equipment, net — 13,190 3,678 35,166 — 74

Operating lease right-of-use assets — 1,202 — 494 — 768

Goodwill — — — 9,214 — —

Other non-current assets — 75 — — — —

Total noncurrent assets of discontinued operations — 14,467 3,678 44,874 — 842

Total assets of discontinued operations $ — $ 39,279 $ 5,196 $ 66,448 $ — $ 4,465

Carrying amounts of the major classes of liabilities included in discontinued operations:

Accounts payable $ — $ 4,673 $ 41 $ 14,346 $ — $ 1,333

Accrued expenses and other current liabilities — 6,621 342 784 — 972

Current operating lease liabilities — 248 — 302 — 258

Total current liabilities of discontinued operations — 11,542 383 15,432 — 2,563

Long-term operating lease liabilities — 954 — — — 522

Other long-term liabilities — 6,415 — — — 31

Total noncurrent liabilities of discontinued operations — 7,369 — — — 553

Total liabilities of discontinued operations $ — $ 18,911 $ 383 $ 15,432 $ — $ 3,116

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the major components from discontinued operations in the Company’s consolidated statements of operations and comprehensive income (loss) (in thousands):

T&D Transaction Pressure Pumping Transaction Engineering Transaction

Years Ended December 31, Years Ended December 31, Years Ended December 31,

2025 2024 2025 2024 2025 2024

Services revenue $ 29,553 $ 91,644 $ 41,916 $ 33,425 $ 14,572 $ 17,263

COST, EXPENSES AND GAINS

Cost of revenue 26,450 76,431 43,255 38,769 11,171 13,017

Selling, general and administrative 1,910 6,245 1,728 2,339 1,489 1,769

Depreciation and amortization 957 2,573 5,766 10,761 20 29

(Gains) losses on disposal of assets, net ( 20 ) ( 1,304 ) ( 1,233 ) 52 — —

Impairment of goodwill — — 9,214 — — —

Impairment of long-lived assets — — 597 — — —

Total cost, expenses and gains, net 29,297 83,945 59,327 51,921 12,680 14,815

Operating income (loss) 256 7,699 ( 17,411 ) ( 18,496 ) 1,892 2,448

OTHER (INCOME) EXPENSE

Interest expense (income), net 59 13,942 ( 348 ) 1,769 ( 470 ) ( 6 )

Other (income) expense, net ( 29 ) 55 279 2 ( 58 ) —

(Gain) loss on divestiture ( 83,747 ) — 24,974 — ( 24,635 ) —

Total other (income) expense, net ( 83,717 ) 13,997 24,905 1,771 ( 25,163 ) ( 6 )

Income (loss) before income taxes 83,973 ( 6,298 ) ( 42,316 ) ( 20,267 ) 27,055 2,454

Provision (benefit) for income taxes 1,617 90 ( 1,262 ) — 4 13

Net income (loss) from discontinued operations, net of income taxes $ 82,356 $ ( 6,388 ) $ ( 41,054 ) $ ( 20,267 ) $ 27,051 $ 2,441

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenues from Contracts with Customers

The Company’s primary revenue streams include rental services, infrastructure services, natural sand proppant services, accommodation services, drilling services and other services.

See Note 19 for the Company’s revenue disaggregated by type.

Certain of the Company’s customer contracts include provisions entitling the Company to a termination penalty when the customer invokes its contractual right to terminate prior to the contract’s nominal end date.

3 unchanged sentences

As of the modification date, the Company updates its estimate of the transaction price using the expected value method, subject to constraints, and recognizes the amount over the remaining performance period.

Well Completion Services

Well completion services are typically provided based upon a purchase order, contract or on a spot market basis.

Rental Services

Rental services are typically provided based upon a purchase order, contract or on a spot market basis.

Services are provided on a day rate, contracted or hourly basis.

Generally, the Company accounts for well completion services as a single performance obligation satisfied over time.

In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer.

The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time.

Jobs for these services are typically short-term in nature and range from a few hours to multiple days.

Generally, revenue is recognized over time upon the completion of each segment of work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and personnel.

Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed.

Such amounts are recognized ratably over the period during which the corresponding goods and services are consumed.

Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output.

Infrastructure Services

10 unchanged sentences

The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal.

Certain of the Company’s sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment.

Certain of the Company’s sand supply agreements contained a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment.

These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment.

If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent periods.

In accordance with FASB ASC 606, Revenue from Contracts with Customers , if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business.

If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months.

In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business.

If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote.

If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer’s inability to take delivery of excess volumes.

As of December 31, 2024, the Company had deferred revenue totaling $ 1.6 million related to shortfall payments.

The Company did not have any deferred revenue related to shortfall payments at December 31, 2025.

During the years ended December 31, 2024, 2023 and 2022, the Company recognized revenue totaling $ 4.5 million, $ 2.0 million and $ 3.1 million, respectively, related to shortfall payments.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company recognized shortfall revenue totaling $ 1.6 million and $ 4.5 million during the years ended December 31, 2025 and 2024, respectively.

In certain of the Company’s sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred.

The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand.

If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities.

Other Services

The Company also provides directional drilling services, aviation services, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing, which are reported under other services.

The Company’s other services are typically provided based upon a purchase order, contract or on a spot market basis.

If revenue is recognized for the related

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities.

Accommodation Services

Accommodation services are typically provided based upon a purchase order, contract or on a spot market basis.

Services are provided on a day rate or contracted basis.

Performance obligations for these services are satisfied over time and revenue is recognized as the service is performed based on the measure of output.

Drilling Services

Drilling services are typically provided based upon a purchase order, contract or on a spot market basis.

Services are provided on a day rate, contracted or hourly basis.

4 unchanged sentences

Contract Balances

Following is a rollforward of the Company’s contract liabilities (in thousands):

Balance, January 1, 2022 $ 3,250

Deduction for recognition of revenue ( 3,207 )

Deduction for rebate credit recognized ( 140 )

Increase for deferral of customer prepayments 7,647

Balance, December 31, 2022 7,550

Deduction for recognition of revenue ( 7,042 )

Deduction for rebate credit recognized ( 375 )

Increase for deferral of customer prepayments 530

Following is a rollforward of the Company’s contract liabilities, which are included in “accrued expenses and other current liabilities” on the consolidated balance sheets (in thousands):

Balance, December 31, 2024 1,600

Deduction for recognition of revenue ( 1,600 )

Deduction for rebate credit recognized ( 506 )

Increase for deferral of shortfall payments 1,595

Increase for deferral of customer prepayments 1,357

4 unchanged sentences

As of December 31, 2025, the Company had unsatisfied performance obligations totaling $ 5.8 million, which are expected to be recognized over the next 13 months.

On July 13, 2023, the Company sold all of the equity interest in its subsidiary ARS for $ 3.3 million in cash.

The Company recognized a gain of $ 2.1 million on the sale, which is included in “other (expense) income, net” in the accompanying consolidated statements of comprehensive loss.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Inventories consist of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services.

Inventories consist of raw sand and processed sand available for sale and supplies used in performing services.

Inventory is stated at the lower of cost or net realizable value on an average cost basis.

6 unchanged sentences

Total inventory $ 4,083 $ 6,848

Property, Plant and Equipment

Property, plant and equipment include the following (in thousands):

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Long‑Lived Asset Impairment and Assets Held for Sale

During the first quarter of 2025, the Company reclassified its drilling rig assets from held for use to held for sale pursuant to a plan to divest of its contract drilling assets.

There was no impairment related to the classification changes as the fair value, less estimated selling costs, of the disposal group exceeded its carrying value.

During the second quarter of 2025, management made the decision to market assets related to its natural sand proppant operations at its Piranha Proppant LLC and Muskie Proppant LLC processing plants.

As a result, the Company recorded impairment expense of $ 31.7 million, representing the amount by which the carrying amounts exceeded estimated fair value less costs to sell at the time the assets were classified as held for sale.

In September 2025, we completed the sale of the Piranha Proppant LLC assets and recognized a loss of $ 2.4 million, calculated as the difference between the carrying amount and final sales proceeds.

Following the sale, no natural sand proppant assets remained classified as held for sale, and related liabilities were nominal.

As of December 31, 2025, the carrying amount of assets classified as held for sale related solely to our contract drilling assets, totaling $ 4.3 million and recorded in current assets held for sale.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Property, Plant and Equipment, net

Property, plant and equipment, net include the following (in thousands):

Useful Life 2025 2024

Pressure pumping equipment 3 - 5 years

$ 261,881 $ 251,111

Drilling rigs and related equipment 3 - 15 years

97,021 97,207

Machinery and equipment 7 - 20 years

$ 53,774 $ 114,366

Buildings (a)

15 - 39 years

Aviation equipment (a)

Buildings and leasehold improvements 15 - 39 years

30,100 38,039

Drilling rigs and directional drilling equipment 3 - 15 years

13,062 96,120

Vehicles, trucks and trailers 5 - 10 years

13,044 19,716

Coil tubing equipment 4 - 10 years

Land N/A 12,349 12,393

Land improvements 15 years or life of lease

Rail improvements 10 - 20 years

11,759 13,445

Other property and equipment (a)

15,010 15,171

Land N/A 6,025 11,679

Other property, plant and equipment 3 - 15 years

177,983 314,412

Deposits on equipment and equipment in process of assembly (b)

Equipment not yet placed in service 25,970 3,094

203,953 317,506

accumulated depreciation (c)

Accumulated depreciation (b)

97,856 250,855

Total property, plant and equipment, net $ 106,097 $ 66,651

Included in Other property and equipment are costs of $ 3.1 million at each of December 31, 2024 and 2023, respectively, related to assets leased to customers under operating leases.

Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use.

The equipment is not yet placed in service.

This equipment relates to assets leased to customers under operating leases.

Includes accumulated depreciation of $ 5.7 million and $ 2.7 million at December 31, 2025 and 2024, respectively, related to assets under operating leases.

Proceeds from customers for horizontal and directional drilling services equipment damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the statement of cash flows.

For the years ended December 31, 2024, 2023 and 2022, total cash and accrued proceeds from the sale of equipment damaged or lost down-hole were $ 0.3 million, $ 0.4 million and $ 0.8 million, respectively, and gains on sales of equipment damaged or lost down-hole were $ 0.2 million, $ 0.3 million and $ 0.6 million, respectively.

Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “gains on disposal of assets, net” in the accompanying consolidated statements of comprehensive loss.

For the years ended

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024, 2023 and 2022, total cash and accrued proceeds from the sale of equipment were $ 5.5 million, $ 8.2 million and $ 10.0 million, respectively, and gains from the sale or disposal of equipment were $ 4.0 million, $ 6.0 million and $ 3.9 million, respectively.

A summary of depreciation, depletion, amortization and accretion expense is shown below (in thousands):

Depreciation, depletion, amortization and accretion

A summary of depreciation, depletion, amortization and accretion is shown below (in thousands):

Years Ended December 31,

2024 2023 2022

Depreciation expense $ 8,669 $ 10,245

Accretion and depletion expense 1,416 3,443 2,947

Depletion and accretion expense 1,568 1,415

Amortization expense 55 55

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

Impairment of Goodwill

Under GAAP, the Company has 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 its reporting units is greater than its carrying amount.

If, after assessing the totality of events or circumstances, the Company determines 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 the Company concludes otherwise, then it is 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.

The Company performed the qualitative assessment described above during the fourth quarter of 2024.

Based on this assessment, the Company concluded that it was more likely than not that the fair value of each of the Company’s reporting units was greater than their carrying value.

Accordingly, no further testing was required and no impairment was recognized during the year ended December 31, 2024.

As a result of the ARS sale, we performed an impairment assessment of our goodwill during the third quarter of 2023.

Based on the qualitative assessment described above, the Company concluded that it was more likely than not that the carrying value of the Aviation reporting unit was greater than its fair value.

To determine fair value of the Aviation reporting unit at September 30, 2023, the Company used the income approach.

The income approach estimates the fair value based on anticipated cash flows that are discounted using a weighted average cost of capital.

As a result, the Company impaired goodwill associated with Cobra Aviation, resulting in a $ 1.8 million impairment charge during the third quarter of 2023.

The Company performed an assessment of goodwill during the fourth quarter of 2023 and determined that the fair value of its goodwill was greater than its carrying value.

Therefore, no additional impairment was deemed necessary at December 31, 2023.

The Company performed the qualitative assessment described above during the fourth quarter of 2022.

Based on this assessment, the Company concluded that it was more likely than not that the fair value of each of the Company’s reporting units was greater than their carrying value.

Accordingly, no further testing was required and no impairment was recognized during the year ended December 31, 2022.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Goodwill and Intangible Assets

Changes in the net carrying amount of goodwill by reporting segment (see Note 21) for the years ended December 31, 2024 and 2023 are presented below (in thousands):

Well Completion Other Total

Balance as of January 1, 2023

Goodwill $ 86,043 $ 14,830 $ 100,873

Accumulated impairment losses ( 76,829 ) ( 12,327 ) ( 89,156 )

9,214 2,503 11,717

Acquisitions — — —

Impairment losses (a)

— ( 1,810 ) ( 1,810 )

Dispositions — ( 693 ) ( 693 )

Balance as of December 31, 2023

Goodwill 86,043 14,137 100,180

Accumulated impairment losses ( 76,829 ) ( 14,137 ) ( 90,966 )

9,214 — 9,214

Acquisitions — — —

Impairment losses — — —

Dispositions — — —

Balance as of December 31, 2024

Goodwill 86,043 14,137 100,180

Accumulated impairment losses ( 76,829 ) ( 14,137 ) ( 90,966 )

$ 9,214 $ — $ 9,214

See Note 7 for a description of impairment losses recognized.

Intangible Assets

The Company had the following definite lived intangible assets recorded as of the dates presented below (in thousands):

Trade names 7,730 7,730

accumulated amortization - trade names ( 7,521 ) ( 6,817 )

Intangible assets, net $ 209 $ 913

Amortization expense for intangible assets was $ 0.7 million, $ 0.8 million and $ 0.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The original life of trade names is 10 years as of December 31, 2024 with a remaining average useful life of 2.5 years.

Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):

Year ended December 31:

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Equity Method Investment

6 unchanged sentences

The investment is included in “other non-current assets” in the accompanying consolidated balance sheets.

The Company recorded equity method adjustments to its investment for its share of Brim Acquisitions’ income (loss) of $( 0.1 ) million, $ 0.7 million, and $ 0.1 million respectively, for the years ended December 31, 2024, 2023 and 2022, respectively, which is included in “other (loss) income, net” in the accompanying consolidated statements of comprehensive loss.

No additional investments were made during the years ended December 31, 2024, 2023 and 2022.

Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities

Accrued expense and other current liabilities and Other long-term liabilities included the following (in thousands):

The Company recorded equity method adjustments to its investment for its share of Brim Acquisitions’ loss of $ 1.3 million, and $ 0.1 million respectively, for the years ended December 31, 2025 and 2024, respectively, which is included in “other (loss) income, net” in the accompanying consolidated statements of comprehensive income (loss).

The Company made additional equity contributions of $ 0.4 million during the year ended December 31, 2025 and no contributions were made during the year ended December 31, 2024.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities included the following (in thousands):

Accrued Expenses and Other Current Liabilities

State and local taxes payable $ 12,332 $ 12,630

Financed insurance premiums (a)

Sale-leaseback liability (b)

Accrued compensation and benefits 2,542 5,558

Deferred revenue 1,357 1,600

Financing leases 2,068 1,702

Insurance reserves 1,166 1,507

Financing arrangement, net (c)

Accrued compensation and benefits 821 469

Other 724 1,035

Total accrued expenses and other current liabilities $ 18,336 $ 25,650

Other Long-Term Liabilities

Financing leases $ 6,521 $ 2,138

Sale-leaseback liability (b)

Total other long-term liabilities $ 6,659 $ 4,715

Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year.

(a) Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year.

As of December 31, 2025, the applicable interest rate associated with financed insurance premiums ranged from 5.49 % to 6.49 %.

As of December 31, 2024, the applicable interest rate associated with financed insurance premiums was 6.49 %.

As of December 31, 2023, the applicable interest rates associated with financed insurance premiums ranged from 6.60 % to 7.05 %.

On December 30, 2020, the Company entered into an agreement with First National Capital, LLC (“FNC”) whereby the Company agreed to sell certain assets from its infrastructure segment to FNC for aggregate proceeds of $ 5.0 million.

Concurrent with the sale of assets, the Company entered into a 36 -month lease agreement whereby the Company agreed to 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, the Company entered into another agreement with FNC whereby the

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $ 9.5 million and entered into a 42 -month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $ 0.2 million.

On June 1, 2022, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $ 4.6 million and entered into a 42 -month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $ 0.1 million.

Under the agreements, the Company has the option to purchase the assets at the end of the lease terms, which caused it to fail true sale treatment.

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

The Company has 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 the year ended December 31, 2024, the Company changed its estimate of the purchase price at the end of the leases, resulting in a charge to interest expense and financing charges, net of $ 9.9 million.

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

On December 1, 2023, Cobra, as seller, and Mammoth, as guarantor, entered into the Assignment Agreement with SPCP Group.

Under the terms and conditions of the Assignment Agreement, Cobra transferred to SPCP Group all of its rights, title and interest in $ 54.4 million of outstanding accounts receivable with PREPA.

The Company elected the fair value option for measuring the liability.

As of December 31, 2023, the fair value of the liability was approximately $ 48.9 million.

See Note 20 for additional information regarding this transaction.

Debt included the following (in thousands):

Revolving Credit Facility

Term credit facility, including interest paid-in-kind — 45,000

Unamortized debt issuance costs and discount — ( 2,191 )

Total debt — 42,809

current portion — —

Total long-term debt $ — $ 42,809

As of December 31, 2023, there were deferred financing costs on our revolving credit facility totaling $ 3.4 million included in “other non-current assets” in the accompanying consolidated balance sheets.

Revolving Credit Facility and Term Credit Facility

On October 16, 2023, the Company entered into a revolving credit facility and a term credit facility (each as defined below), which refinanced in full the Company’s 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.

On October 16, 2023, the Company, as borrower, and certain of its 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, as may be subsequently amended (the “revolving credit facility”).

On October 16, 2023, the Company, as borrower, and certain of its direct and indirect subsidiaries, as guarantors, entered into a revolving credit agreement with the lenders party thereto and 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 $ 50 million.

2 unchanged sentences

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%.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024 and December 31, 2023, the financial covenant under the revolving credit facility was the fixed 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, 2024, December 31, 2023 and the filing date of this report.

At December 31, 2025 and December 31, 2024, the financial covenant under the revolving credit facility was the fixed 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 December 31, 2025, December 31, 2024 and the filing date of this report.

At December 31, 2025, the revolving credit facility was undrawn, the borrowing base was $ 50.0 million, and there was $ 36.7 million of borrowing capacity under the facility, after giving effect to $ 5.0 million of outstanding letters of credit.

At December 31, 2024, the revolving credit facility was undrawn, the borrowing base was $ 25.2 million, and there was $ 17.7 million of borrowing capacity under the facility, after giving effect to $ 7.5 million of outstanding letters of credit.

On October 16, 2024, the Company entered into (i) an amendment to the revolving credit agreement (the “Credit Agreement Amendment”) and (ii) a letter of credit reimbursement agreement (the “Reimbursement Agreement”), each with Fifth Third Bank.

On October 16, 2024, the Company entered into (i) an amendment to the revolving credit agreement (the “Credit Agreement Amendment”) and (ii) the Reimbursement Agreement, each with Fifth Third Bank.

The Credit Agreement Amendment, among other things, permits the transactions contemplated by the Reimbursement Agreement, including the issuance of one or more letters of credit to satisfy Cobra’s obligations under the Settlement Agreement relating to one or more indemnity letters of credit.

1 unchanged sentence

Under the terms of the Reimbursement Agreement, the Company agreed to hold cash funds totaling at least 105 % of the stated amount of all letters of credit in an account maintained by Fifth Third Bank and to which Fifth Third Bank has a first priority security interest.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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 October 16, 2023, the Company, as borrower, and certain of its 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, as administrative agent for the lenders (“Wexford”), as may be subsequently amended (the “term credit facility”).

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

As part of the release, the $ 19.3 million in cash collateral originally deposited on October 18, 2024 was returned to the Company.

In addition, approximately $ 0.5 million of interest earned on the collateralized balance was transferred to the Company’s unrestricted cash account.

On April 11, 2025, the Company entered into an amendment to its revolving credit facility to, among other things, do the following:

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

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.

If an event of default occurs under the revolving credit facility and remains uncured, it could have a material adverse effect on the Company’s business, financial condition, liquidity and results of operations.

The lenders, as applicable, (i) would not be required to lend any additional amounts to the Company, (ii) could elect to increase the interest rate by 200 basis points, (iii) could elect to declare all outstanding borrowings, together with accrued and unpaid interest and fees, to be due and payable, (iv) may have the ability to require the Company to apply all of its available cash to repay outstanding borrowings, and (v) may foreclose on substantially all of the Company’s assets.

The revolving credit facility is currently scheduled to mature on October 16, 2028.

Term Credit Facility

On October 16, 2023, the Company, as borrower, and certain of its 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 (“Wexford”), as administrative agent for the lenders (the “term credit facility”).

The term credit facility was approved by the audit committee of the Company’s board of directors, consisting entirely of independent directors, as a transaction with a related party.

2 unchanged sentences

The term credit facility contained various affirmative and restrictive covenants.

Interest under the term credit facility equaled the SOFR Interest Rate (as defined in the new term credit facility) plus 7.50 %;

provided that the Company may elect to pay all or a portion of the accrued interest due with respect to any Interest Period (as defined in the new term credit facility) ending on or before April 16, 2025, in kind by adding such accrued interest to the principal amount of the outstanding loans thereunder.

In particular, under the term credit facility, the Company was required, among other things, to mandatorily remit to Wexford up to 50 % of all amounts that constitute PREPA Claim Proceeds, as such term is defined in the term credit facility, which was used to reduce outstanding borrowings under the term credit facility, as required under the terms thereof.

Wexford waived this requirement in connection with the Assignment Agreement and the $ 9.6 million received by Cobra from PREPA in February 2024.

At December 31, 2023, there were outstanding borrowings, including interest paid-in-kind, under the term credit facility of $ 45.0 million.

Interest under the term credit facility equaled the SOFR Interest Rate (as defined in the term credit facility) plus 7.50 %;

provided that the Company may elect to pay all or a portion of the accrued interest due with respect to any Interest Period (as defined in the term credit facility).

In connection with the receipt of the first installment amount under the Settlement Agreement on October 1, 2024, the Company paid, in full, all amounts owed under the term credit facility, including the accrued and unpaid interest, in the aggregate amount of $ 50.9 million, and terminated the facility on October 2, 2024.

In connection with the payoff of the term credit facility, Wexford waived the 1 % early termination penalty.

The revolving credit facility is currently scheduled to mature on October 16, 2028.

MAMMOTH ENERGY SERVICES, INC.

3 unchanged sentences

(the “Voting Trustee”).

Under the Voting Trust Agreements, Dire Wolf transferred 100 % of its membership interest in Cobra Aviation and Predator Aviation transferred 100 % of its membership interest in Leopard to the respective Voting Trustees in exchange for Voting Trust Certificates.

Under the Voting Trust Agreements, Dire Wolf transferred 100 % of its membership interest in Cobra Aviation and Predator Aviation transferred 100 % of its membership interest in Leopard Aviation LLC (“Leopard”) to the respective Voting Trustees in exchange for Voting Trust Certificates.

Dire Wolf and Predator Aviation retained the obligation to absorb all expected returns or losses of Cobra Aviation and Leopard.

Prior to the transfer of the membership interest to the Voting Trustee, Cobra Aviation was a wholly owned subsidiary of Dire Wolf and Leopard was a wholly owned subsidiary of Predator Aviation.

Cobra Aviation owns one helicopter and support equipment and 49 % of the equity interest in Brim Acquisitions.

Leopard owns one helicopter.

Cobra Aviation owns aviation equipment, including ten aircraft that are owned through individual trusts that are each structured as separate legal entities, and 49 % of the equity interest in Brim Acquisitions.

Leopard owns aviation equipment.

Dire Wolf and Predator Aviation entered into the Voting Trust Agreements in order to meet certain registration requirements.

3 unchanged sentences

Therefore, the Company, through Dire Wolf and Predator Aviation, is considered the primary beneficiary of the VIEs and consolidates Cobra Aviation and Leopard at December 31, 2025.

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense includes of the following (in thousands):

Loss from continuing operations before incomes taxes for the United States and non-U.S.

jurisdictions for the years ended December 31, 2025 and 2024 are as follows (in thousands):

Years Ended December 31,

2024 2023 2022

Cash expenses:

Compensation and benefits $ 14,448 $ 15,563 $ 13,729

Professional services 12,298 13,448 13,501

7,146 7,693 8,012

Total cash SG&A expense 33,892 36,704 35,242

Non-cash expenses:

Change in provision for expected credit losses (b)

90,054 ( 591 ) 3,389

Stock based compensation 875 1,345 923

Total non-cash SG&A expense 90,929 754 4,312

Total SG&A expense $ 124,821 $ 37,458 $ 39,554

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

Included in the year ended December 31, 2024 amount is a charge of $ 89.2 million related to Cobra’s Settlement Agreement with PREPA.

Summary of Significant Accounting Policies—Accounts Receivable and —Concentrations of Credit Risk and Significant Customers and Note 20.

Commitments and Contingencies—Litigation included elsewhere in this report for additional information.

The components of income tax (benefit) provision attributable to the Company for the year ended December 31, 2024, 2023 and 2022, respectively, are as follows (in thousands):

Year Ended December 31,

Loss from continuing operations before income taxes:

United States ( 52,893 ) ( 26,638 )

( 6,776 ) ( 167,780 )

current income tax expense $ 474 $ 715 $ 61

deferred income tax expense (benefit) 2,500 — ( 207 )

Foreign current income tax (benefit) expense ( 15,913 ) 13,269 5,846

Foreign deferred income tax expense (benefit) 1,735 ( 1,687 ) 7,907

Total $ ( 59,669 ) $ ( 194,418 )

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation of the statutory federal income tax amount to the recorded expense is as follows (in thousands):

Year Ended December 31,

2024 2023 2022

(Loss) income before income taxes $ ( 218,530 ) $ 9,134 $ 12,988

Statutory income tax rate 21 % 21 % 21 %

Expected income tax (benefit) expense ( 45,891 ) 1,918 2,727

The components of income tax (benefit) provision applicable to federal, state and foreign income taxes for the years ended December 31, 2025 and 2024 are as follows (in thousands):

Years Ended December 31,

Federal income tax expense (benefit):

Current 251 295

Deferred ( 358 ) 2,500

Total $ ( 107 ) $ 2,795

State income tax expense (benefit):

Current ( 65 ) 75

Total $ ( 65 ) $ 75

Foreign income tax expense (benefit):

Current 4,491 ( 15,913 )

Deferred ( 232 ) 1,737

Total $ 4,259 $ ( 14,176 )

Total income tax expense (benefit):

Current 4,677 ( 15,543 )

Deferred ( 590 ) 4,237

Total $ 4,087 $ ( 11,306 )

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Effective January 1, 2025, we adopted ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The guidance has been applied retrospectively.

Accordingly, the enhanced disaggregation of income tax rate reconciliation items is presented for the years ended December 31, 2025 and 2024 are as follows (in thousands):

The differences between the statutory U.S.

federal income tax rate and the effective income tax rate for the years ended December 31, 2025 and 2024 are as follows (in thousands):

Years Ended December 31,

Amount Percent Amount Percent

federal statutory tax rate $ ( 12,531 ) 21.0 % $ ( 40,828 ) 21.0 %

State and local income taxes, net of federal income tax effect (a)

Foreign tax effects

Statutory tax rate difference between Canada and United States 14 — 61 —

Withholding taxes 376 ( 0.6 ) — —

Statutory tax rate difference between Puerto Rico and United States ( 1,230 ) 2.1 ( 28,352 ) 14.6

Changes in valuation allowances 2,748 ( 4.7 ) 65,638 ( 33.8 )

Interest and penalties 3,722 ( 6.3 ) 3,201 ( 1.7 )

Foreign income tax rate differential ( 28,291 ) 3,416 4,311

Foreign (loss) earnings not in reported income ( 35,996 ) 5,188 1,565

Foreign tax credits ( 166 ) ( 11,193 ) ( 3,646 )

Withholding taxes — — ( 19,899 ) 10.2

Other permanent differences 1,007 1,011 322

State tax benefit ( 5,983 ) 227 ( 1,129 )

Return to provision ( 27 ) ( 11 ) ( 116 )

Change in valuation allowance 120,549 8,132 6,219

Total $ ( 11,204 ) $ 12,297 $ 13,607

The Company’s effective tax rate was 5.1 % for the year ended December 31, 2024 compared to 134.6 % for the year ended December 31, 2023 and 104.8 % for the year ended December 31, 2022.

The effective tax rate for the years ended December 31, 2024, 2023 and 2022 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.

Effect of changes in tax laws or rates enacted in the current period

Effect of cross-border tax laws

Foreign branch inclusions ( 1,885 ) 3.2 ( 35,996 ) 18.5

Foreign tax credits — — ( 166 ) 0.1

Changes in valuation allowances 12,484 ( 20.9 ) 43,703 ( 22.5 )

Nontaxable or nondeductible items

Other 113 ( 0.2 ) 981 ( 0.5 )

Other adjustments 250 ( 0.4 ) 291 ( 0.1 )

Effective tax rate $ 4,087 ( 6.8 ) % $ ( 11,306 ) 5.8 %

(a) State taxes in Kentucky and West Virginia made up the majority (greater than 50 percent) of the tax effect in this category.

The Company’s effective tax rate was ( 6.8 )% for the year ended December 31, 2025 compared to 5.8 % for the year ended December 31, 2024.

The effective tax rate 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 Canadian withholding tax.

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 Company recorded interest and penalties expense of $ 3.2 million, $ 1.8 million and $ 1.7 million during the years ended December 31, 2024, 2023 and 2022, respectively, related to the 2020, 2021, 2022 and 2023 tax year returns in Puerto Rico.

The Company recorded interest and penalties expense of $ 3.7 million and $ 3.2 million during the years ended December 31, 2025 and 2024, respectively, related to tax year returns from 2019 to 2023 in Puerto Rico.

Additionally, the Company recorded interest expense of $ 0.3 million and $ 0.3 million during the years ended December 31, 2025 and 2024, respectively related to the 2020 tax year return in the United States.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Deferred tax liabilities attributable to the Company consisted of the following (in thousands):

The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2025 and 2024 attributable to the Company consisted of the following (in thousands):

Year Ended December 31,

Deferred tax assets:

Allowance for doubtful accounts $ 94 $ 167

Section 163(j) interest limitation 1,075 5,090

4 unchanged sentences

Foreign tax credits 76,570 76,570

Accumulated other comprehensive income 970 1,068

Other 296 207

2 unchanged sentences

Deferred tax liabilities:

Property and equipment $ ( 14,140 ) $ ( 14,708 )

Property, plant and equipment $ ( 14,571 ) $ ( 14,140 )

Lease liability ( 830 ) ( 3,583 )

Prepaid expenses ( 2,306 ) ( 2,586 )

Other ( 1,597 ) ( 4,134 )

9 unchanged sentences

As of December 31, 2025, the Company has federal net operating loss and 163(j) interest limitation carryforwards of $ 199.0 million and $ 5.1 million, respectively, that have an indefinite life carryforward.

The Company has state net operating loss carryforwards of $ 14.3 million which expire between 2040 and 2045.

The Company has net operating loss carryforwards in Puerto Rico of $ 179.2 million that have a 10-year carryforward period and expire in 2035.

8 unchanged sentences

and no projected benefit related to losses generated in Puerto Rico as of December 31, 2025.

At December 31, 2024, Mammoth has a foreign subsidiary in Canada with undistributed earnings.

These earnings are considered permanently reinvested, as it is the Company’s intention to reinvest these earnings in foreign operations.

Although we would not be subject to income tax in the U.S.

on these earnings, these amounts could be subject to withholding tax if distributed.

The Company has made no provision for tax related to these undistributed earnings.

The Company has recorded interest and penalties payable of $ 8.5 million and $ 5.0 million at December 31, 2024 and

The income taxes paid, net of refunds received, disaggregated by jurisdiction for the years ended December 31, 2025 and 2024 are as follows (in thousands):

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2023, respectively, related to the 2020, 2021, 2022 and 2023 tax year returns in Puerto Rico and the 2019 tax year return in the United States.

Years Ended December 31,

federal $ — $ —

state and local

Other jurisdictions 32 43

Canada 785 1,001

Income taxes paid $ 817 $ 1,102

At December 31, 2025, Mammoth has a foreign subsidiary in Canada with undistributed earnings.

These earnings may be distributed in the future.

Although the Company would not be subject to U.S.

income tax upon distribution, such amounts could be subject to Canadian withholding tax.

Accordingly, the Company recognized a current income tax payable of $ 0.5 million.

The Company continues to evaluate any remaining amounts for which the related tax effects cannot be reasonably estimated.

The Company has recorded interest and penalties payable of $ 12.5 million and $ 8.5 million at December 31, 2025 and 2024, respectively, related to the tax year returns from 2019 to 2023 in Puerto Rico and the 2020 tax year return in the United States.

It is the Company’s policy to recognize interest and applicable penalties in income tax expense.

15 unchanged sentences

The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Lease expense consisted of the following for the years ended December 31, 2025 and 2024 (in thousands):

2 unchanged sentences

Short-term lease expense 890 139

Finance lease expense:

Financing lease expense:

Amortization of right-of-use assets 110 200

1 unchanged sentence

Total lease expense $ 4,675 $ 6,032

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplemental balance sheet information related to leases as of December 31, 2024 and 2023 is as follows (in thousands):

Right of use assets and liabilities related to financing leases are recorded in the following line items on the consolidated balance sheets at December 31, 2025 and 2024 is as follows (in thousands):

Year Ended December 31,

Operating leases:

Operating lease right-of-use assets $ 6,417 $ 9,551

Current operating lease liability 3,450 5,771

Long-term operating lease liability 2,792 3,534

Finance leases:

Property and equipment, net $ 8,731 $ 3,966

Property, plant and equipment, net $ 102 $ 540

Accrued expenses and other current liabilities 49 214

4 unchanged sentences

Operating cash flows from operating leases $ 4,172 $ 5,599

Operating cash flows from finance leases 381 191

Financing cash flows from finance leases 1,858 3,716

Operating cash flows from financing leases 13 51

Financing cash flows from financing leases 214 383

Right-of-use assets obtained in exchange for lease obligations:

Operating leases $ 3,099 $ 779

Finance leases 6,896 1,417

Financing leases — 150

Year Ended December 31,

1 unchanged sentence

Operating leases 3.5 years 2.7 years

Finance leases 3.8 years 2.2 years

Financing leases 1.5 years 1.5 years

Weighted-average discount rate:

Operating leases 9.8 % 9.8 %

Finance leases 9.0 % 6.3 %

Financing leases 10.1 % 7.7 %

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Maturities of lease liabilities as of December 31, 2025 are as follows (in thousands):

1 unchanged sentence

2026 $ 2,284 $ 54

2026 1,590 3,014

2027 697 2,003

Thereafter 510 —

2 unchanged sentences

Present value of lease payments $ 3,446 $ 75

Subsequent to December 31, 2024, the Company entered into 14 additional finance leases for trucks.

These agreements provide for aggregate fixed lease payments totaling $ 0.9 million with lease terms of three years .

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Lessor Accounting

4 unchanged sentences

The Company does not provide an option for the lessee to purchase the rented assets at the end of the lease and the lessees do not provide residual value guarantees on the rented assets.

During the years ended December 31, 2024, 2023 and 2022, the Company recognized lease revenue, which is included in “ services revenue ” and “services revenue - related parties” in the accompanying consolidated statements of comprehensive loss of $ 2.0 million, $ 3.2 million, and $ 3.3 million, respectively.

Loss Per Share

During the years ended December 31, 2025 and 2024, the Company recognized lease revenue, which is included in “ services revenue ” and “services revenue - related parties” in the accompanying consolidated statements of comprehensive loss of $ 3.2 million and $ 1.9 million, respectively.

Maturities of lease payments for the Company’s outstanding long-term leases at December 31, 2025 are as follows (in thousands):

Total lease payments $ 15,142

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Earnings Per Share

Year Ended December 31,

2024 2023 2022

(in thousands, except per share data)

Basic loss per share:

Allocation of earnings:

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

Weighted average common shares outstanding 48,065 47,777 47,175

Basic loss per share $ ( 4.31 ) $ ( 0.07 ) $ ( 0.01 )

Diluted loss per share:

Allocation of earnings:

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

Weighted average common shares, including dilutive effect (a)

Basic and diluted earnings per share:

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 )

Weighted average common shares outstanding (a)

48,274 48,065

Diluted loss per share $ ( 4.31 ) $ ( 0.07 ) $ ( 0.01 )

No incremental shares of potentially dilutive restricted stock awards were included for the years ended December 31, 2024, 2023, or 2022 as their effect was antidilutive under the treasury stock method.

Basic and diluted loss per share from continuing operations $ ( 1.32 ) $ ( 3.81 )

Basic and diluted earnings (loss) per share from discontinued operations 1.42 ( 0.50 )

Basic and diluted earnings (loss) per share $ 0.10 $ ( 4.31 )

(a) Excludes 47 and 66 shares for the years ended December 31, 2025 and 2024, respectively, of potentially dilutive restricted stock awards as their effect was antidilutive under the treasury stock method.

Equity Based Compensation

5 unchanged sentences

As a result, Payout did not occur and no compensation cost was recorded.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Payout for the remaining awards is expected to occur as the contribution member’s unreturned capital balance is recovered from additional sales by MEH Sub of its shares of the Company’s common stock or from dividend distributions, which is not considered probable until the event occurs.

1 unchanged sentence

For the Company’s Non-Employee Member awards, the unrecognized amount, which represents the fair value of the awards as of the date of adoption of ASU 2018-07 was $ 18.9 million.

There was no change to the unrecognized amount during the years ended December 31, 2025 and 2024.

Stock-Based Compensation

On April 29, 2024, the Board of Directors of Mammoth adopted the Mammoth Energy Services, Inc.

2024 Equity Incentive Plan (the “2024 Plan”), subject to stockholder approval, which approval was obtained at Mammoth’s 2024 Annual Meeting of Stockholders on June 12, 2024.

2024 Equity Incentive Plan (the “2024 Plan”).

The 2024 Plan authorizes the Company’s Board of Directors or the compensation committee of the Company’s Board of Directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards.

There are a maximum of 2.1 million shares of common stock reserved for issuance under the 2024 Plan, of which 2.0 million shares of common stock remain available for future grants under the 2024 Plan as of December 31, 2025.

No new awards will be granted under the Company’s previous equity incentive plan after June 12, 2024.

Restricted Stock Units

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This value is amortized over the vesting period.

A summary of the status and changes of the unvested shares of restricted stock is presented below.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of the status and changes of the unvested restricted stock units is presented below:

Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value

Unvested shares as of January 1, 2022 1,128,205 $ 1.27

Granted 228,310 2.19

Vested ( 628,205 ) 1.54

Forfeited — —

Unvested restricted stock units as of December 31, 2022 728,310 1.32

Unvested restricted stock units as of January 1, 2024 302,383 5.06

Granted 139,280 3.59

Vested ( 185,717 ) 4.71

Forfeited — —

Unvested restricted stock units as of December 31, 2024 255,946 4.52

Granted 139,280 3.59

Vested ( 230,946 ) 4.40

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Unvested restricted stock units as of December 31, 2025 — —

As of December 31, 2024, there was $ 0.6 million of total unrecognized compensation cost related to the unvested restricted stock.

The cost is expected to be recognized over a weighted average period of approximately 10 months.

The total fair value of shares vested was $ 0.7 million, $ 4.1 million and $ 1.1 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $ 0.9 million, $ 1.3 million and $ 0.9 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

As of December 31, 2025, there was no unrecognized compensation cost.

The total fair value of shares vested was $ 0.6 million and $ 0.7 million, respectively, for the years ended December 31, 2025 and 2024.

Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $ 0.4 million and $ 0.9 million, respectively, for the years ended December 31, 2025 and 2024.

Related Party Transactions

Transactions between the subsidiaries of the Company, including Panther, Cobra Aviation, ARS and Leopard and the following companies are included in Related Party Transactions:

Wexford, El Toro Resources LLC (“El Toro”), Elk City

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Yard LLC (“Elk City Yard”), Double Barrel Downhole Technologies LLC (“DBDHT”), Caliber Investment Group LLC (“Caliber”) and Brim Equipment.

For the years ended December 31, 2024, 2023 and 2022, revenue from related party transactions was $ 1.5 million, $ 1.0 million and $ 1.1 million, respectively, and costs incurred from related party transactions was $ 0.4 million, $ 0.5 million and $ 0.5 million, respectively.

At December 31, 2024 and December 31, 2023, accounts receivable from related party transactions was $ 0.4 million and a nominal amount, respectively, which is included in “accounts receivable”, in the accompanying consolidated balance sheets.

Transactions between the subsidiaries of the Company and the following companies are included in related party transactions:

Wexford, El Toro Resources LLC (“El Toro”), Caliber Investment Group LLC (“Caliber”), Grizzly Oil Sands ULC and Brim Equipment.

For the years ended December 31, 2025 and 2024, revenue from related party transactions was $ 1.6 million and $ 1.5 million, respectively, and costs of service revenue incurred from related party transactions was $ 0.3 million and $ 0.4 million, respectively.

At December 31, 2025 and 2024, accounts receivable from related party transactions was $ 0.4 million, which is included in “accounts receivable, net”, on the accompanying consolidated balance sheets.

There was no accounts payable for related party transactions at December 31, 2025, and 2024, respectively.

On December 21, 2018, Cobra Aviation acquired all outstanding equity interest in ARS and purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment.

On December 21, 2018, Cobra Aviation purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment.

Following these transactions, and also on December 21, 2018, Cobra Aviation formed a joint venture with Wexford Investment named Brim Acquisitions to acquire all outstanding equity interests in Brim Equipment.

Cobra Aviation owns a 49 % economic interest and Wexford Investment owns a 51 % economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $ 2.0 million.

Wexford Investment is an entity controlled by Wexford, which owns approximately 46 % of the Company’s outstanding common stock.

Wexford Investment is an entity controlled by Wexford.

Cobra Aviation and Leopard each lease one helicopter to Brim Equipment under the terms of aircraft lease and management agreements.

ARS was subsequently sold to a third party in July 2023.

See Note 4 for further discussion.

On October 16, 2023, the Company entered into a loan and security agreement with Wexford, an affiliate of Mammoth.

Under this agreement, the Company had outstanding debt, including interest paid-in kind and net of debt discount and debt issuance costs, of $ 42.8 million as of December 31, 2023.

Additionally, the Company incurred interest expense under this agreement totaling $ 4.7 million and $ 1.2 million for the years ended December 31, 2024 and 2023, respectively.

On October 16, 2023, the Company entered into a term credit facility with Wexford, an affiliate of Mammoth.

The Company incurred interest expense under this agreement totaling $ 4.7 million for the year ended December 31, 2024.

On October 2, 2024, the Company paid, in full, all amounts owed under the term credit facility and terminated the facility.

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The Company had outstanding letters of credit related to environmental remediation and insurance programs that were issued under the Company’s revolving credit facility, which is collateralized by substantially all of the assets of the Company, totaling $ 5.0 million and $ 7.5 million as of December 31, 2025 and 2024, respectively.

Additionally, as of December 31, 2024, the Company had an outstanding letter of credit related to its Settlement Agreement with PREPA totaling $ 18.4 million, which is cash collateralized at Fifth Third Bank for $ 19.3 million.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company has insurance coverage for physical partial loss to its assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks.

The Company has also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies.

At each of December 31, 2024 and 2023, the workers’ compensation policy required a deductible per occurrence of up to $ 0.3 million.

As of December 31, 2025 there was no deductible for the workers’ compensation policy.

At December 31, 2024, the workers’ compensation policy required a deductible per occurrence of up to $ 0.3 million.

At December 31, 2025 and 2024, the Company’s primary automobile liability policy required a deductible per occurrence of up to $ 0.1 million and $ 0.5 million, respectively.

As of December 31, 2024 and 2023, the workers’ compensation and auto liability policies contained an aggregate stop loss of $ 5.4 million.

Effective November 1, 2024, the Company became party to a deductible reimbursement insurance policy from a protected cell captive insurance company that covers losses between the $ 0.5 million deductible under its primary auto liability policy and $ 0.1 million.

At December 31, 2025, there was no aggregate stop loss in place for the workers’ compensation and auto liability policies.

At December 31, 2024, the workers’ compensation and auto liability policies contained an aggregate stop loss of $ 5.4 million.

Effective November 1, 2024, the Company became party to a deductible reimbursement insurance policy from a protected cell captive insurance company that covers losses between $ 0.1 million and the $ 0.5 million deductible under its primary auto liability policy.

Also effective November 1, 2024, the Company became a member of a group captive insurance company that covers one layer of its auto liability coverage.

The Company establishes liabilities for the unpaid deductible portion of claims incurred based on estimates.

As of December 31, 2024 and 2023, accrued claims were $ 1.5 million and $ 1.3 million, respectively.

At December 31, 2025 and 2024, total accrued claims for continuing and discontinued operations were $ 1.2 million and $ 1.5 million, respectively.

Of these amounts, $ 0.4 million and $ 0.2 million at December 31, 2025 and 2024, respectively, relate to continuing operations.

The Company also has insurance coverage for directors and officers liability.

As of December 31, 2024 and 2023, the directors and officers liability policy had a deductible per occurrence of $ 1.0 million and an aggregate deductible of $ 10.0

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2025 and 2024, the directors and officers liability policy had a deductible per occurrence of $ 1.5 million and $ 1.0 million, respectively, and an aggregate deductible of $ 10.0 million for each year.

As of December 31, 2025 and 2024, the Company did not have any accrued claims for directors and officers liability.

1 unchanged sentence

The Company has coverage on its self-insurance program in the form of a stop loss of $ 0.2 million per participant and an aggregate stop-loss of $ 9.1 million for the calendar year ending December 31, 2025.

At December 31, 2024 and 2023, accrued claims were $ 2.3 million and $ 1.5 million, respectively.

At December 31, 2025 and 2024, accrued claims for continuing and discontinued operations were $ 0.9 million and $ 2.3 million, respectively.

Of these amounts, $ 0.3 million at December 31, 2025 and 2024, relate to continuing operations.

These estimates may change in the near term as actual claims continue to develop.

Warranty Guarantees

Pursuant to certain customer contracts in our infrastructure services segment, the Company warrants equipment and labor performed under the contracts for a specified period following substantial completion of the work.

Generally, the warranty is for one year or less.

No liabilities were accrued as of December 31, 2024 or 2023 and no expense was recognized during the years ended December 31, 2024, 2023 or 2022 related to warranty claims.

However, if warranty claims occur, the Company could be required to repair or replace warrantied items, which in most cases are covered by warranties extended from the manufacturer of the equipment.

In the event the manufacturer of equipment failed to perform on a warranty obligation or denied a warranty claim made by the Company, the Company could be required to pay for the cost of the repair or replacement.

In the ordinary course of business, the Company is required to provide bid bonds to certain customers in the infrastructure services segment as part of the bidding process.

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The Company must reimburse the surety for expenses or outlays it incurs.

As of December 31, 2024 and 2023, outstanding performance and payment bonds totaled $ 14.2 million and $ 10.0 million, respectively.

The estimated cost to complete projects secured by the performance and payment bonds totaled $ 7.2 million and $ 2.5 million as of December 31, 2024 and 2023, respectively.

There were $ 0.2 million in outstanding bid bonds as of December 31, 2024 and 2023, respectively.

At December 31, 2025 and 2024, there were no outstanding performance and payment bonds and no outstanding bid bonds that related to the Company's continuing operations.

Cobra and PREPA previously entered into two agreements to aid in the restoration and reconstruction of Puerto Rico’s power grid in response to damage caused by Hurricane Maria in 2017.

4 unchanged sentences

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under the terms of the Settlement Agreement, Cobra was allowed an administrative expense claim against PREPA of $ 170.0 million, plus the $ 18.4 million in the Withheld FEMA Funds.

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In exchange for the settlement payments and conditioned upon the effectiveness and full implementation of the Settlement Agreement, Cobra has agreed to release and waive any further claim against PREPA under its two agreements with PREPA.

Further, if PREPA pays the

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Withheld FEMA Funds to Cobra following the notice of appeal described above, Cobra agreed to indemnify and hold PREPA harmless, as well as to provide PREPA with one or more indemnity letters of credit, solely for any payment(s) PREPA is subsequently required to make pursuant to the Specified Municipalities on account of the Specified Municipal Tax Claims if such order is entered as a result of (i) any reversal on appeal of the settlement order with respect to the FEMA Withheld Funds and/or (ii) the Puerto Rico Court of First Instance or other court of competent jurisdiction enters such order after a diligent challenge by PREPA (including through enforcement of the order approving Settlement Agreement if in effect).

Further, if PREPA pays the Withheld FEMA Funds to Cobra following the notice of appeal described above, Cobra agreed to indemnify and hold PREPA harmless, as well as to provide PREPA with one or more indemnity letters of credit, solely for any payment(s) PREPA is subsequently required to make pursuant to the Specified Municipalities on account of the Specified Municipal Tax Claims if such order is entered as a result of (i) any reversal on appeal of the settlement order with respect to the FEMA Withheld Funds and/or (ii) the Puerto Rico Court of First Instance or other court of competent jurisdiction enters such order after a diligent challenge by PREPA (including through enforcement of the order approving Settlement Agreement if in effect).

Any such indemnity obligation will in no event exceed the amount of the Withheld FEMA Funds paid to and received by Cobra.

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On January 21, 2020, MasTec Renewables Puerto Rico, LLC (“MasTec”) filed a lawsuit against Mammoth Inc.

and Cobra in the U.S.

District Court for the Southern District of Florida.

MasTec’s complaint asserted claims against the Company and Cobra Acquisitions for violations of the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), tortious interference and violations of Puerto Rico law.

MasTec alleged that it sustained injuries to its business and property in an unspecified amount because it lost the opportunity to perform work in connection with rebuilding the energy infrastructure in Puerto Rico after Hurricane Maria under a services contract with a maximum value of $ 500 million due to the Company’s and Cobra’s wrongful interference, payment of bribes, and other inducement to a FEMA official.

On April 1, 2020, the defendants filed a motion to dismiss the complaint.

On October 14, 2020, the Court dismissed the RICO claims, and on November 18, 2020, dismissed the claims arising under the Puerto Rico statute and the cause of action for tortious interference with MasTec’s contract (but not its business relations), and dismissed Mammoth Inc.

from the litigation.

On August 2, 2021, in order to avoid the risks of further litigation, and with no admission of wrongdoing whatsoever, the Company reached an agreement to settle this matter.

Under the terms of the agreement, Cobra paid $ 6.5 million to MasTec on August 2, 2021 and the Company guaranteed payment, by Cobra, of $ 9.25 million on both August 1, 2022 and December 1, 2022.

The agreement specified interest rates between 6 % and 12 %.

The settlement amount and legal expenses related to the matter of $ 25.0 million and $ 5.4 million, respectively, are reflected in “other income, net” in the accompanying consolidated statement of comprehensive loss for the year ended December 31, 2021.

Cobra made the second installment payment, including accrued interest, to MasTec on August 23, 2022, the final installment principal payment to MasTec on October 24, 2022 and the final installment interest payment to MasTec on December 1, 2022.

On May 13, 2021, Foreman Electric Services, Inc.

3 unchanged sentences

Foreman alleged that it sustained injuries to its business and property in the amount of $ 250 million due to the Company’s and Cobra’s alleged wrongful interference by means of inducements to a FEMA official.

On May 18, 2021,

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the Company removed this action to the United States District Court for the Western District of Oklahoma and filed a motion to dismiss on July 8, 2021.

On May 18, 2021, the Company removed this action to the United States District Court for the Western District of Oklahoma and filed a motion to dismiss on July 8, 2021.

On July 29, 2021, Foreman voluntarily dismissed the action without prejudice.

6 unchanged sentences

The defendants moved to dismiss the Amended Petition, which was denied on March 12, 2024.

On February 8, 2024, Foreman filed a Motion for Appointment of Receiver.

On February 8,

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2024, Foreman filed a Motion for Appointment of Receiver.

On April 29, 2024, the Court denied that motion.

6 unchanged sentences

During 2024, the Company recognized an estimated liability related to these complaints, which is included in “accounts payable” in the accompanying consolidated balance sheets.

The amount required to resolve these matters may ultimately increase or decrease from the Company’s estimated amount as the matters progress.

The settlement did not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

The Company is routinely involved in state and local tax audits.

5 unchanged sentences

On August 2, 2023, the Ohio Supreme court affirmed the ruling in part and reversed the ruling in part.

The Company is currently awaiting the final assessment.

It is not expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

The Company received the final assessment in April 2025.

It did not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Cobra has been served with 14 lawsuits from municipalities in Puerto Rico alleging failure to pay construction excise and volume of business taxes.

8 unchanged sentences

The case was remanded to the lower Court for continuation of the proceedings in accordance with the Court of Appeals’ order.

Cobra believes it is exempt from the construction excise taxes.

On May 16, 2025 and May 20, 2025, the Court entered judgment against Cobra in connection with two of the lawsuits in the amount of $ 5.1 million and $ 1.6 million, respectively, plus interest, penalties and attorneys’ fees.

Separately, the Court entered judgment against Cobra in connection with another lawsuit on July 3, 2025, in the amount of $ 3.4 million.

The May 16, 2025 and May 20, 2025 judgments were appealed to the Court of Appeals, which denied the appeals on June 30, 2025.

In August 2025, Cobra appealed the Salinas and Humacao (and others) matters to the Supreme Court of Puerto Rico.

Also in August 2025, Cobra filed a request for oral arguments.

On October 24, 2025, Cobra received a notification from the Supreme Court accepting the cases as certiorari and denying to hear the appeal.

Cobra filed a first motion for reconsideration, which was denied on December 18, 2025.

A second motion for reconsideration was filed on December 19, 2025.

In connection with the Settlement Agreement entered into with PREPA, PREPA (including through the Puerto Rico Fiscal Agency and Financial Advisory Authority, as fiscal agent for PREPA, and the FOMB) has agreed to cooperate with Cobra and assist in resolving the construction excise and volume of business taxes assessed against Cobra.

There is no guarantee, however, that the Company, including with PREPA’s cooperation, will be successful in favorably resolving or mitigating these taxes.

Accordingly, at this time, the amount of loss cannot be reasonably estimated.

The Company intends to vigorously defend these lawsuits until full resolution.

Accordingly, at this time, the Company is not able to predict the outcome of these matters or whether they will have a material impact on the Company’s business, financial condition, results of operations or cash flows.

5 unchanged sentences

The plaintiff alleges the defendant failed to pay overtime wages to a class of workers in compliance with the Fair Labor Standards Act and Puerto Rico law.

On August 21, 2019, upon request of the parties, the Court stayed

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

proceedings in the lawsuit and administratively closed the case pending completion of individual arbitration proceedings initiated by Mr.

On August 21, 2019, upon request of the parties, the Court stayed proceedings in the lawsuit and administratively closed the case pending completion of individual arbitration proceedings initiated by Mr.

Zeisset and opt-in plaintiffs.

2 unchanged sentences

Arbitrations remain pending for the remaining claimants.

The Company will continue to vigorously defend the arbitrations.

The Company will continue to vigorously defend the

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

arbitrations.

During 2023 and 2024, the Company recognized an estimated liability related to these complaints, which is included in “accounts payable” in the accompanying consolidated balance sheets.

The amount required to resolve these matters may ultimately increase or decrease from the Company’s estimated amount as the matters progress.

On September 10, 2019, the U.S.

District Court for the District of Puerto Rico unsealed an indictment that charged the former president of Cobra Acquisitions LLC with conspiracy, wire fraud, false statements and disaster fraud.

Two other individuals were also charged in the indictment.

The indictment is focused on the interactions between a former FEMA official and the former president of Cobra.

Neither the Company nor any of its subsidiaries were charged in the indictment.

On May 18, 2022, the former FEMA official and the former president of Cobra each pled guilty to one-count information charging gratuities related to a project that Cobra never bid upon and was never awarded or received any monies for.

On December 13, 2022, the Court sentenced the former Cobra president to custody of the Bureau of Prisons for six months and one day, a term of supervised release of six months and one day and a fine of $ 25,000 .

The Court sentenced the FEMA official to custody of the Bureau of Prisons for six months and one day, a term of supervised release of six months and a fine of $ 15,000 .

The Court also dismissed the indictment against the two defendants.

The Company does not expect any additional activity in the criminal proceeding.

Subsequent to the indictment, Cobra received a civil investigative demand (“CID”) from the United States Department of Justice (“DOJ”), which requests certain documents and answers to specific interrogatories relevant to an ongoing investigation it is conducting.

The aforementioned DOJ investigation is in connection with the issues raised in the criminal matter.

Cobra fully cooperated with the DOJ but is not able to predict the outcome of this investigation, or even if it still active, or if so, whether it will have a material impact on Cobra’s or the Company’s business, financial condition, results of operations or cash flows.

With regard to the SEC investigation disclosed in previous filings, on July 6, 2022, the SEC sent a letter saying that it had concluded its investigation as to the Company and that based on information the SEC has as of this date, it does not intend to recommend an enforcement action against the Company.

The Company is involved in various other legal proceedings in the ordinary course of business.

4 unchanged sentences

Between October 6, 2023 and December 1, 2023, Cobra received payments from PREPA with respect to the PREPA Claim totaling $ 8.6 million (the “Interim Payment Amount”), resulting in the net Transferred Amount of $ 54.4 million.

In connection with the entry into the Assignment Agreement, Mammoth and Cobra obtained the required consents from lenders under the Company’s revolving credit facility with Fifth Third Bank and the Company’s term loan and security agreement with Wexford.

Further, under the term loan and security agreement with Wexford, Mammoth was required, among other things, to mandatorily remit to Wexford up to 50 % of all amounts that constitute PREPA Claim proceeds, including the proceeds received by Cobra under the Assignment Agreement, to reduce outstanding borrowings under such term loan and security agreement.

In connection with the Assignment Agreement, Wexford waived this requirement.

The net proceeds received by Cobra in connection with the Assignment Agreement were $ 46.1 million.

The Company elected the fair value option for measuring the liability to simplify the accounting associated with the Assignment Agreement.

As of December 31, 2023, the fair value of the liability was approximately $ 48.9 million, which is included in “accrued expenses and other current liabilities” in the accompanying consolidated balance sheet and the aggregate unpaid principal balance related to this liability was $ 54.4 million.

During the year ended December 31, 2023, the Company recognized a financing charge totaling $ 2.8 million, which is included in “interest expense and financing charges, net” in the accompanying consolidated statement of comprehensive loss.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the three months ended March 31, 2024, PREPA paid $ 64.0 million with respect to the outstanding PREPA receivable.

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 under the Assignment Agreement, and the Assignment Agreement was terminated.

The Company recognized a financing charge totaling $ 5.5 million during the three months ended March 31, 2024 related to the termination of the Assignment Agreement, which is included in “interest expense and financing charges, net” in the accompanying consolidated statement of comprehensive loss.

The remaining $ 9.6 million was paid to Cobra.

Wexford waived the requirement to mandatorily remit to Wexford up to 50 % of all PREPA Claim proceeds in relation to the $ 9.6 million.

The Company recognized a financing charge totaling $ 5.5 million during the year ended December 31, 2024 related to the termination of the Assignment Agreement, which is included in “interest income (expense and financing charges), net” in the accompanying consolidated statements of operations and comprehensive income (loss).

Defined contribution plan

2 unchanged sentences

The Company makes discretionary matching contributions of up to 3 % of an employee’s compensation and may make additional discretionary contributions for eligible employees.

For the years ended December 31, 2024, 2023 and 2022, the Company paid $ 2.1 million, $ 2.0 million and $ 1.9 million, respectively, in contributions to the plan.

For the years ended December 31, 2025 and 2024, the Company paid $ 1.1 million and $ 2.1 million, respectively, in contributions to the plan.

Of these amounts for the years ended December 31, 2025 and 2024, $ 0.3 million and $ 0.4 million, respectively, relates to continuing operations.

Reporting Segments and Geographic Areas

Reporting Segments

The Company’s Chief Executive Officer and Chief Financial Officer comprise the Company’s CODM.

The Company’s Chief Business Officer, Chief Financial Officer and Chief Operating Officer comprise the Company’s CODM.

Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions.

Segment evaluation is determined on a quantitative basis based on a function of Adjusted EBITDA, as well as a qualitative basis, such as nature of the product and service offerings and types of customers.

The Company defines Adjusted EBITDA as net loss before depreciation, depletion, amortization and accretion, gains or losses 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.

The Company’s significant segment expenses include cost of revenue and selling, general and administrative expense.

The Company principally provides services in connection with on-shore drilling of oil and natural gas wells for small to large domestic independent oil and natural gas producers as well as electric infrastructure services to private utilities, public investor-owned utilities and co-operative utilities.

As of December 31, 2024, the Company had three reportable segments, which includes well completion services (“Well Completion”), infrastructure services (“Infrastructure”) and natural sand proppant services (“Sand”).

The Well Completion segment provides hydraulic fracturing and water transfer services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania and the mid-continent region.

The Infrastructure segment provides electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in the northeastern, southwestern, midwestern and western portions of the United States.

The Sand segment mines, processes and sells sand for use in hydraulic fracturing.

The Sand segment primarily services the Utica Shale, Permian Basin, SCOOP, STACK and Montney Shale in British Columbia and Alberta, Canada.

Based on its assessment of FASB ASC 280, Segment Reporting , guidance at December 31, 2024, the Company changed its presentation in 2024 to move Bison Drilling and Panther Drilling, which were previously included in the Company’s drilling services reportable segment, to the reconciling column titled “All Other”.

On December 13, 2024, Anaconda Rentals, Aquahawk, Barracuda, Bison Sand, IFX, Ivory Freight, Coil Tubing, Redback Energy, Redback Pumpdown, Stingray Cementing and WTL were merged into Orca.

Prior to 2024, Aquahawk, Bison Sand and Redback Pumpdown were included in the Well Completion segment, Barracuda was included in the Sand segment and the remainder of the entities were included in the reconciling column titled “All Other”.

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 years ended December 31, 2023 and 2022 have been retroactively adjusted to reflect these changes.

The Company also provides directional drilling, aviation services, equipment rental services, remote accommodation and equipment manufacturing services.

The businesses that provide these services are distinct operating segments, which the

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

The Company’s significant segment expenses include cost of revenue, exclusive of depreciation, depletion, amortization and accretion, and selling, general and administrative expense.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

CODM reviews independently when making key operating and resource utilization decisions.

None of these operating segments meet the quantitative thresholds of a reporting segment and do not meet the aggregation criteria set forth in FASB ASC 280 .

Therefore, results for these operating segments are included in the column titled “All Other” in the tables below.

Additionally, assets for corporate activities, which primarily include cash and cash equivalents, restricted cash, inter-segment accounts receivable, prepaid insurance and certain property and equipment, are included in the All Other column.

Although Mammoth Energy Partners LLC, which holds these corporate assets, meets one of the quantitative thresholds of a reporting segment, it does not engage in business activities from which it may earn revenues and its results are not regularly reviewed by the Company’s CODM when making key operating and resource utilization decisions.

Therefore, the Company does not include it as a reportable segment.

The Company principally provides products and services to our customers primarily in the oil and natural gas and utility infrastructure industries.

As of December 31, 2025, the Company had five reportable segments, which includes rental services (“Rentals”), infrastructure services (“Infrastructure”) and natural sand proppant services (“Sand”), accommodation services (“Accommodations”) and drilling services (“Drilling”).

The Rentals segment provides construction, oilfield and aviation rentals to operators primarily in the northeast and midwest regions of the United States as well as Hawaii.

The Infrastructure segment provides design and fiber optic services to utility customers in the midwest region of the United States.

The Sand segment provides sand mining, processing and selling services for use in hydraulic fracturing.

The Sand segment primarily services the Utica Shale and Montney Shale in British Columbia and Alberta, Canada.

The Accommodations segment provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas away from readily available lodging in northern Alberta, Canada.

The Drilling segment provides directional drilling services primarily in the Anadarko and Permian Basins.

Sales from one segment to another are generally priced at estimated equivalent commercial selling prices.

Total revenue and total cost of revenue amounts included in the Eliminations column in the following tables include inter-segment transactions conducted between segments.

Receivables due for sales from one segment to another and for corporate allocations to each segment are included in the Eliminations column for total assets in the following tables.

All transactions conducted between segments are eliminated in consolidation.

Transactions conducted by companies within the same reporting segment are eliminated within each reporting segment.

Transactions conducted by companies within the same reportable segment are eliminated within each reportable segment.

Corporate selling, general and administrative costs are allocated to each segment based on forecasted revenue, expense and asset base.

Corporate interest expense is allocated to each segment based on its inter-company payable position with the Company’s corporate entity.

US income tax expense is not allocated to each segment.

Corporate interest expense is allocated to each segment based on its intercompany payable position with the Company’s corporate entity.

income tax expense is not allocated to each segment.

Foreign income tax expense is realized in the segment in which the foreign operations occur.

To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of December 31, 2025.

The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):

Year Ended December 31, 2024 Well Completion Infrastructure Sand All Other Eliminations Total

Revenue from external customers $ 33,622 $ 110,383 $ 19,026 $ 24,901 $ — $ 187,932

Intersegment revenues 393 — 31 6,548 ( 6,972 ) —

Total revenue 34,015 110,383 19,057 31,449 ( 6,972 ) 187,932

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 38,005 92,081 17,790 22,875 — 170,751

Intersegment cost of revenues 756 51 — 6,165 ( 6,972 ) —

Total cost of revenue 38,761 92,132 17,790 29,040 ( 6,972 ) 170,751

Year Ended December 31, 2025 Rentals Infrastructure Sand Accommodations Drilling Total

Revenue from external and related party customers $ 11,025 $ 4,086 $ 16,552 $ 8,954 $ 3,675 $ 44,292

Intersegment revenue 73 — — — — 73

11,098 4,086 16,552 8,954 3,675 44,365

Reconciliation of Revenue

Eliminations (a)

Total consolidated revenue $ 44,292

Less segment expenses:

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties $ 6,701 $ 5,893 $ 18,117 $ 5,951 $ 3,765

Selling, general and administrative, exclusive of stock based compensation 4,155 1,019 5,131 1,957 944

Interest on trade accounts receivable — ( 60,686 ) — — — ( 60,686 )

Adjusted EBITDA ( 9,135 ) ( 153,503 ) ( 2,928 ) ( 1,885 ) — ( 167,451 )

Reconciliation of net (loss) income to Adjusted EBITDA:

Net (loss) income ( 21,886 ) ( 166,089 ) ( 8,496 ) ( 10,855 ) — ( 207,326 )

Segment Adjusted EBITDA $ 242 $ ( 2,826 ) $ ( 6,696 ) $ 1,046 $ ( 1,034 ) $ ( 9,268 )

Reconciliation of total segment Adjusted EBITDA

Depreciation, depletion, amortization and accretion 10,292

Losses (gains) on disposal of assets, net 52 ( 1,304 ) 1 ( 2,763 ) — ( 4,014 )

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

Impairment of long-lived assets 31,669

Stock based compensation 412

1 unchanged sentence

Other expense, net 3,906

(Benefit) provision for income taxes — ( 14,785 ) — 3,581 — ( 11,204 )

Interest on trade accounts receivable — ( 60,686 ) — — — ( 60,686 )

Adjusted EBITDA ( 9,135 ) ( 153,503 ) ( 2,928 ) ( 1,885 ) — ( 167,451 )

Total expenditures for property, plant and equipment $ 12,730 $ 2,815 $ — $ 913 $ 607 $ 17,065

As of December 31, 2024:

Total assets $ 61,728 $ 150,531 $ 118,855 $ ( 97,525 ) $ 150,442 $ 384,031

Loss from continuing operations before income taxes $ ( 59,669 )

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2023 Well Completion Infrastructure Sand All Other Eliminations Total

Year Ended December 31, 2024 Rentals Infrastructure Sand Accommodations Drilling Total

Revenue from external customers $ 6,712 $ 1,476 $ 19,057 $ 10,851 $ 3,558 $ 41,654

Intersegment revenue 393 — — — — 393

Total revenue 127,372 110,537 39,131 34,946 ( 2,494 ) 309,492

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 103,880 90,478 25,666 27,816 — 247,840

Intersegment cost of revenues 1,182 149 — 1,163 ( 2,494 ) —

Total cost of revenue 105,062 90,627 25,666 28,979 ( 2,494 ) 247,840

7,105 1,476 19,057 10,851 3,558 42,047

Reconciliation of Revenue

Eliminations (a)

Total consolidated revenue $ 45,599

Less segment expenses:

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 4,955 2,280 17,791 6,397 4,373

Selling, general and administrative, exclusive of stock based compensation 1,851 880 6,741 2,361 1,338

Interest on trade accounts receivable — 45,440 — — — 45,440

Adjusted EBITDA 15,939 43,810 10,033 1,197 — 70,979

Reconciliation of net (loss) income to Adjusted EBITDA:

Net (loss) income ( 2,043 ) 8,237 1,824 ( 11,181 ) — ( 3,163 )

Segment Adjusted EBITDA $ 299 $ ( 1,684 ) $ ( 5,475 ) $ 2,093 $ ( 2,153 ) $ ( 6,920 )

Reconciliation of total segment Adjusted EBITDA

Depreciation, depletion, amortization and accretion 11,715

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

Impairment of goodwill — — — 1,810 — 1,810

Stock based compensation 875

1 unchanged sentence

Other expense (income), net 64,564

Provision for income taxes — 11,214 — 1,083 — 12,297

Interest on trade accounts receivable — 45,440 — — — 45,440

Adjusted EBITDA 15,939 43,810 10,033 1,197 — 70,979

Total expenditures for property, plant and equipment $ 17,921 $ 716 $ 223 $ 432 $ 103 $ 19,395

Loss from continuing operations before income taxes $ ( 194,418 )

(a) Includes eliminations for intersegment transactions.

(b) Includes activity related to non-operating legacy services that are no longer active.

Rentals Infrastructure Sand Accommodations Drilling Total

As of December 31, 2025:

Total assets $ 49,926 $ 462,429 $ 121,201 $ ( 40,156 ) $ 105,079 $ 698,479

Total assets for reportable segments $ 75,004 $ 2,598 $ 68,028 $ 14,309 $ 1,859 $ 161,798

Other assets (a)

Total consolidated assets, excluding discontinued operations $ 329,698

As of December 31, 2024:

Total assets for reportable segments $ 8,451 $ 1,803 $ 118,855 $ 12,811 $ 1,870 $ 143,790

Other assets (a)

Total consolidated assets, excluding discontinued operations $ 273,839

(a) Includes assets related to non-operating legacy services that are no longer active as well as corporate related assets, which include cash and cash equivalents, marketable securities, restricted cash and other current assets.

MAMMOTH ENERGY SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2022 Well Completion Infrastructure Sand All Other Eliminations Total

Revenue from external customers $ 165,645 $ 111,452 $ 48,916 $ 36,073 $ — $ 362,086

Intersegment revenues 596 — 2,475 2,057 ( 5,128 ) —

Total revenue 166,241 111,452 51,391 38,130 ( 5,128 ) 362,086

Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 120,562 91,577 35,985 30,463 — 278,587

Intersegment cost of revenues 3,882 72 — 1,174 ( 5,128 ) —

Total cost of revenue 124,444 91,649 35,985 31,637 ( 5,128 ) 278,587

Selling, general and administrative, exclusive of stock based compensation 7,765 18,798 6,988 5,080 — 38,631

Interest on trade accounts receivable — 41,276 — — — 41,276

Adjusted EBITDA 34,032 42,281 8,418 1,413 — 86,144

Reconciliation of net income (loss) to Adjusted EBITDA:

Net income (loss) 12,870 4,933 ( 886 ) ( 17,536 ) — ( 619 )

Depreciation, depletion, amortization and accretion 20,129 16,171 8,714 19,257 — 64,271

Gains on disposal of assets, net ( 618 ) ( 795 ) ( 89 ) ( 2,406 ) — ( 3,908 )

Stock based compensation 369 349 118 87 — 923

Interest expense and financing charges, net 1,625 7,390 575 1,916 — 11,506

Other income, net ( 343 ) ( 40,470 ) ( 14 ) ( 85 ) — ( 40,912 )

Provision for income taxes — 13,427 — 180 — 13,607

Interest on trade accounts receivable — 41,276 — — — 41,276

Adjusted EBITDA 34,032 42,281 8,418 1,413 — 86,144

Total expenditures for property, plant and equipment $ 11,421 $ 885 $ 88 $ 496 $ ( 153 ) $ 12,737

As of December 31, 2022:

Total assets $ 79,022 $ 450,841 $ 129,566 $ 14,813 $ 50,436 $ 724,678

Following is a breakout of purchases of property, plant and equipment for the periods indicated (in thousands):

Year Ended December 31,

Rentals $ 69,953 $ 351

Infrastructure 128 299

Accommodations 343 161

Drilling 128 184

Total segment purchases of property, plant and equipment 70,552 995

Total consolidated purchases of property, plant and equipment, excluding discontinued operations $ 70,552 $ 1,214

(a) Includes purchases related to non-operating legacy services that are no longer active.

Geographic Areas

1 unchanged sentence

Year Ended December 31,

2024 2023 2022

United States $ 27,508 $ 23,550

Canada 16,708 22,033

Other 16 279 176

Total $ 44,292 $ 45,599

1 unchanged sentence

Year Ended December 31,

2024 2023 2022

United States $ 146,537 $ 127,712

1 unchanged sentence

Total $ 154,068 $ 135,261

Subsequent Events

APU Purchase Agreements

On January 30, 2026 and February 12, 2026, Cobra Aviation entered into an agreement with a third‑party seller whereby it purchased two APUs for approximately $ 3.3 million each, both of which are currently under lease to customers.

Sale of Ohio Yard Previously Utilized by Stingray Pressure Pumping

On March 2, 2026, the Company completed the sale of its Ohio yard previously utilized in the operations of its discontinued well completion services segment (the “Ohio Yard”).

The Ohio Yard had historically supported operations conducted by the Company’s former pressure pumping business, including Stingray Pressure Pumping LLC and related discontinued activities.

The transaction resulted in net cash proceeds of approximately $ 4.6 million.

Rentals Purchase Agreements

On March 3, 2026 Stingray Rentals entered into an agreement with a third‑party seller whereby it purchased rental equipment for approximately $ 3.3 million.

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 9A. Controls and Procedures