MAMMOTH ENERGY SERVICES, INC. 10-K

Item 9A. Controls and Procedures Evaluation of Disclosure Control and Procedures 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 64 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, 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 There was no change in our internal control over financial reporting (as defined in Rules 13a-15(d) and 15d-15(d) under the Exchange Act) that occurred during the quarter ended December 31, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Management’s Annual Report on Internal Control Over Financial Reporting 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 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. Based on its evaluation, management did not identify any material weaknesses in our internal control over financial reporting and determined that we maintained effective internal control over financial reporting as of December 31, 2025. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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. 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. 65 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 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. 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 The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting 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 effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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. /s/ DELOITTE & TOUCHE LLP Oklahoma City, Oklahoma March 6, 2026 66 Item 9B. Other Information During the three months ended December 31, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 67 PART III. Item 10. Directors, Executive Officers and Corporate Governance 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 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. We intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, a provision of the Code of Business Conduct and Ethics by posting such information on our website at the address specified above. Item 11. Executive Compensation The information required by Item 11 of Part III is incorporated by reference to our 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. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by Item 12 of Part III is incorporated by reference to our 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. Item 13. Certain Relationships and Related Transactions and Director Independence The information required by Item 13 of Part III is incorporated by reference to our 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. Item 14. Principal Accounting Fees and Services The information required by Item 14 of Part III is incorporated by reference to our 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. 68 PART IV. Item 15. Exhibits and Financial Statement Schedules The following documents are filed as part of this report or incorporated by reference herein: (1) Financial Statements Page Financial Statements Report of Independent Registered Public Accounting Firm (PCAOB ID Number 34 ) 1 Report of Independent Registered Public Accounting Firm (PCAOB ID Number 248 ) 3 Consolidated Balance Sheets 4 Consolidated Statements of Comprehensive Income (Loss) 5 Consolidated Statements of Changes in Equity 6 Consolidated Statements of Cash Flows 7 Notes to Consolidated Financial Statements 9 (2) Financial Statement Schedules All financial statement schedules have been omitted because they are not applicable or the required disclosure is presented in the financial statements or notes thereto. (3) Exhibits Exhibit Number Exhibit Description 3.1 Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-37917), filed with the SEC on November 15, 2016). 3.2 Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-37917), filed with the SEC on November 15, 2016). 3.3 First Amendment to Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-37917), filed with the SEC on June 9, 2020). 4.1 Description of Securities of the Company (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report on Form 10-K (File No. 001-37917), filed with the SEC on March 2, 2020). 4.2 Specimen Certificate for shares of common stock, par value $0.01 per share, of the Company (incorporated by reference to Exhibit 4.1 to the Company’s Amendment No. 2 to the Registration Statement on Form S-1/A (File No. 333-213504), filed with the SEC on October 3, 2016). 4.3 Registration Rights Agreement, dated October 12, 2016, by and between the Company and Mammoth Energy Holdings, LLC (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-37917), filed with the SEC on November 15, 2016). 10.1* N810LA Helicopter Lease Extension Agreement, dated as of January 1, 2026 by and between Cobra Aviation Services LLC and Brim Equipment Leasing LLC. 10.2* N904AF Helicopter Lease Extension Agreement, dated as of January 1, 2026 by and between Leopard Aviation LLC and Brim Equipment Leasing LLC. 10.3 Advisory Services Agreement, dated as of October 19, 2016, by and between the Company and Wexford Capital LP (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 November 15, 2016). 10.4 Mammoth Energy Securities, Inc. 2016 Equity Incentive Plan (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 November 15, 2016). 10.5 Form of Option Agreement (incorporated by reference to Exhibit 10.12 to the Company’s Amendment No. 1 to the Registration Statement on Form S-1/A (File No. 333-213504), filed with the SEC on September 23, 2016). 10.6 Form of Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.13 to the Company’s Amendment No. 1 to the Registration Statement on Form S-1/A (File No. 333-213504), filed with the SEC on September 23, 2016). 10.7† Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.14 to the Company’s Amendment No. 2 to the Registration Statement on Form S-1/A (File No. 333-213504), filed with the SEC on October 3, 2016). 10.8 Emergency Master Service Agreement for PREPA’s Electrical Grid Repairs-Hurricane Maria, executed on October 19, 2017, by the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q (File No. 001-37917), filed with the SEC on November 14, 2017). 10.9 Amendment No. 1 to Emergency Master Service Agreement for PREPA’s Electrical Grid Repairs-Hurricane Maria, executed on November 1, 2017, by the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q (File No. 001-37917), filed with the SEC on November 14, 2017). 69 10.10 Amendment No. 2 to Emergency Master Service Agreement for PREPA’s Electrical Grid Repairs-Hurricane Maria, dated as of December 8, 2017, between the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC (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 January 31, 2018). 10.11 Amendment No. 3 to Emergency Master Service Agreement for PREPA’s Electrical Grid Repairs-Hurricane Maria, dated December 21, 2017, between the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K (File No. 001-37917), filed with the SEC on January 31, 2018). 10.12 Amendment No. 4 to Emergency Master Service Agreement for PREPA’s Electrical Grid Repairs-Hurricane Maria, dated as of January 28, 2018, between the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K (File No. 001-37917), filed with the SEC on January 31, 2018). 10.13 Amendment No. 5 to Emergency Master Service Agreement for PREPA's Electrical Grid Repairs-Hurricane Maria, dated as of February 27, 2018, between the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC (incorporated by reference to Exhibit 10.34 to the Company’s Annual Report on Form 10-K (File No. 001-37917), filed with the SEC on February 28, 2018). 10.14 Master Service Contract for PREPA's Electrical Grid Repairs Hurricane Maria, executed on May 26, 2018, by the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions 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 May 31, 2018). 10.15 N810LA Helicopter Lease Agreement, dated as of January 10, 2020 and effective as of January 1, 2020, by and between Cobra Aviation LLC and Brim Equipment Leasing LLC (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q (File No. 001-37917), filed with the SEC on May 11, 2020). 10.16 N904AF Helicopter Lease Agreement, dated as of January 10, 2020 and effective as of January 1, 2020, by and between Leopard Aviation LLC and Brim Equipment Leasing LLC (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q (File No. 001-37917), filed with the SEC on May 11, 2020). 10.17 First Amendment to the Mammoth Energy Services, Inc. 2016 Equity Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A, filed with the SEC on June 10, 2020). 10.18 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. 10.19 Mammoth Energy Services, Inc. 2024 Equity Incentive Plan (incorporated by reference to Annex B to the Registrant’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 29, 2024). 10.20 Credit Agreement Amendment, dated as of October 16, 2024, by and between the Company and Fifth Third Bank, National Association (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q (File No. 001-37917), filed with the SEC on November 1, 2024). 10.21 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). 10.22 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). 10.23 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). 10.24 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). 10.25 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). 10.26 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). 19.1* Mammoth Energy Services Inc. Insider Trading and Unauthorized Disclosure of Information Policy 19.2* Mammoth Energy Services Inc. Supplemental Insider Trading Policy 21.1* List of Significant Subsidiaries of the Company. 23.1* John T. Boyd Company Consent. 23. 2 * Consent of Deloitte & Touche LLP with respect to the financial statements of Mammoth Energy Services Inc. 23. 3 * Consent of Grant Thornton LLP with respect to the financial statements of Mammoth Energy Services Inc. 31.1* Certification of Chief Operating Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. 31.2* Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. 32.1** 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. 32.2** 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. 95.1* Mine Safety Disclosure Exhibit. 96.1 Technical Report Summary for Piranha and Taylor Mines prepared by John T. Boyd Company (incorporated by reference to Exhibit 96.1 to the Company's Annual Report on Form 10-K (File No. 001-37917) filed with the SEC on March 4, 2022). 97.1 Mammoth Energy Services, Inc. Clawback Policy, effective as of December 1, 2023 (incorporated by reference to Exhibit 97.1 to the Company’s Annual Report on Form 10-K (File No. 001-37917), filed with the SEC on March 1, 2024). 70 101.INS* XBRL Instance Document. 101.SCH* XBRL Taxonomy Extension Schema Document. 101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF* XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB* XBRL Taxonomy Extension Labels Linkbase Document. 101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document. 104 Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. * Filed herewith. ** Furnished herewith, not filed. + Management contract, compensatory plan or arrangement. Item 16. Form 10-K Summary None. 71 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MAMMOTH ENERGY SERVICES, INC. Date: March 6, 2026 By: /s/ Mark Layton Mark Layton Chief Financial Officer Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Signature Title Date /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 Mark Layton /s/ Arthur Amron Director (Chairman of the Board) March 6, 2026 Arthur Amron /s/ Paul Jacobi Director and Chief Business Officer March 6, 2026 Paul Jacobi /s/ James D. Palm Director March 6, 2026 James D. Palm /s/ Phil Lancaster Director March 6, 2026 Phil Lancaster /s/ Corey Booker Director March 6, 2026 Corey Booker /s/ Mark Plaumann Director March 6, 2026 Mark Plaumann 72 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. F-1 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. F-2 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Shareholders Mammoth Energy Services, Inc. Opinion on the financial statements 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 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 provides a reasonable basis for our opinion. /s/ GRANT THORNTON LLP We served as the Company’s auditor from 2012 to 2024. Oklahoma City, Oklahoma 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) F-3 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED BALANCE SHEETS ASSETS December 31, 2025 2024 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 Accounts receivable, net 28,934 40,672 Inventories 4,083 6,848 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 Property, plant and equipment, net 106,097 66,651 Sand reserves, net 39,613 57,273 Operating lease right-of-use assets 2,591 3,954 Other non-current assets 5,767 7,383 Noncurrent assets of discontinued operations 3,678 60,183 Total assets $ 334,894 $ 384,031 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 9,327 $ 12,107 Accrued expenses and other current liabilities 18,336 25,650 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 Deferred income tax liabilities 2,430 3,021 Long-term operating lease liability 1,375 1,316 Asset retirement obligations 2,759 4,234 Other long-term liabilities 26 213 Noncurrent liabilities of discontinued operations — 7,922 Total liabilities 76,606 131,213 COMMITMENTS AND CONTINGENCIES (Note 18) EQUITY Equity: 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 483 481 Additional paid-in capital 540,841 540,431 Accumulated deficit ( 279,046 ) ( 283,643 ) Accumulated other comprehensive loss ( 3,990 ) ( 4,451 ) Total equity 258,288 252,818 Total liabilities and equity $ 334,894 $ 384,031 The accompanying notes are an integral part of these consolidated financial statements. F-4 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31, 2025 2024 REVENUE (in thousands, except per share amounts) Services revenue $ 26,187 $ 24,994 Services revenue - related parties 1,553 1,548 Product revenue 16,552 19,057 Total revenue 44,292 45,599 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 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 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 long-lived assets 31,669 — Total cost and expenses 101,725 165,956 Operating loss ( 57,433 ) ( 120,357 ) OTHER INCOME (EXPENSE) 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 (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 ) 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) 48,274 48,065 The accompanying notes are an integral part of these consolidated financial statements. F-5 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Accumulated Additional Other Common Stock Paid-In Accumulated Comprehensive Shares Amount Capital Deficit Loss Total Equity (in thousands) Balance at January 1, 2024 47,941 $ 479 $ 539,558 $ ( 76,317 ) $ ( 3,620 ) $ 460,100 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 $ 540,431 $ ( 283,643 ) $ ( 4,451 ) $ 252,818 Stock based compensation 231 2 410 — — 412 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 The accompanying notes are an integral part of these consolidated financial statements. F-6 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2025 2024 Cash flows from operating activities: (in thousands) Net income (loss) $ 4,597 $ ( 207,326 ) Less: 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 Depreciation, depletion, amortization and accretion 10,292 11,715 Amortization of financing origination costs 708 2,971 Change in provision for expected credit losses 49 171,140 Gains on disposal of assets, net ( 2,371 ) ( 2,762 ) Gains from sales of equipment damaged or lost down-hole ( 221 ) ( 157 ) Impairment of long-lived assets 31,669 — Inventory obsolescence — 97 Deferred income taxes ( 591 ) 4,237 Other 1,159 63 Changes in assets and liabilities: Accounts receivable, net 11,756 206,129 Inventories 116 43 Other current assets 6,200 590 Accounts payable ( 2,843 ) ( 1,643 ) Accrued expenses and other liabilities ( 7,483 ) ( 3,369 ) Accrued expenses and other liabilities - related parties — 4,647 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, 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: 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 ) 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 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. F-7 MAMMOTH ENERGY SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2025 2024 Supplemental disclosure of cash flow information for continuing operations: (in thousands) Cash paid for interest $ 620 $ 6,407 Cash paid for income taxes, net of refunds received $ 817 $ 1,102 Supplemental disclosure of non-cash transactions for continuing operations: Interest paid in kind - related parties $ — $ 5,888 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 The accompanying notes are an integral part of these consolidated financial statements. F-8 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Basis of Presentation The accompanying consolidated financial statements were prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments, which in the opinion of management are necessary for the fair presentation of the results. Mammoth Energy Services, Inc. (“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 are included in these consolidated financial statements: Bison Drilling and Field Services, LLC (“Bison Drilling”), formed November 2010; Bison Trucking LLC (“Bison Trucking”), formed August 2013; Mr. Inspections LLC (“MRI”), formed January 2015; Panther Drilling Systems LLC (“Panther”), formed December 2012; Muskie Proppant LLC (“Muskie”), formed September 2011; Stingray Pressure Pumping LLC (“Stingray Pressure Pumping”), acquired November 2014; Silverback Energy LLC (“Silverback”), formerly known as Stingray Logistics LLC, acquired November 2014; Great White Sand Tiger Lodging Ltd. (“Sand Tiger”), formed October 2007; Mammoth Energy Partners LLC, formed October 2016; Mammoth Equipment Leasing LLC, formed November 2016; Cobra Acquisitions LLC (“Cobra”), formed January 2017; Lion Power Services LLC (“Lion Power”), formerly known as Cobra Energy LLC, formed January 2017; Mako Acquisitions LLC (“Mako”), formed March 2017; Piranha Proppant LLC (“Piranha”), formed March 2017; Higher Power Electrical LLC (“Higher Power”), acquired April 2017 and sold April 2025; Stingray Energy Services LLC (“SR Energy”), acquired June 2017; Sturgeon Acquisitions LLC (“Sturgeon”), acquired June 2017; Taylor Frac, LLC (“Taylor Frac”), acquired June 2017; Taylor Real Estate Investments, LLC (“Taylor RE”), acquired June 2017; South River Road, LLC (“South River”), acquired June 2017; 5 Star Electric, LLC (“5 Star”), acquired July 2017 and sold April 2025; Tiger Shark Logistics LLC (“Tiger Shark”), formed October 2017; Cobra Aviation Services LLC (“Cobra Aviation”), formed January 2018; Dire Wolf Energy Services LLC (“Dire Wolf”), formed January 2018; Black Mamba Energy LLC (“Black Mamba”), formed March 2018; Stingray Cementing and Acidizing LLC (“Stingray Cementing and Acidizing”), formerly known as RTS Energy Services LLC (“RTS”), acquired June 2018; Orca Energy Services LLC (“Orca”), formed June 2018; Python Equipment LLC (“Python”), formed December 2018 and sold April 2025; Leopard Aviation LLC (“Leopard”), formed April 2019; Predator Aviation LLC (“Predator Aviation”), formed April 2019; Anaconda Manufacturing LLC (“Anaconda”), formed July 2019; Aquawolf LLC (“Aquawolf”), formed September 2019 and sold December 2025; and Falcon Fiber Solutions LLC (“Falcon”), formed March 2021. On December 13, 2024, the following entities were merged into Orca: Anaconda Rentals LLC, formerly known as White Wing Tubular Services LLC; Barracuda Logistics LLC (“Barracuda”); Redback Energy Services, LLC (“Redback Energy”); Redback Coil Tubing, LLC (“Coil Tubing”); Redback Pumpdown Services LLC (“Pumpdown”); WTL Oil LLC (“WTL”), formerly known as Silverback Energy Services LLC; Stingray Cementing LLC (“Cementing”); Bison Sand Logistics LLC (“Bison Sand”); Aquahawk Energy LLC (“Aquahawk”); Ivory Freight Solutions LLC (“Ivory Freight”); and IFX Transport LLC (“IFX”). 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. F-9 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Operations 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. The Company operates its oil and natural gas businesses in the Permian Basin, the Utica Shale, the Eagle Ford Shale, the Marcellus Shale, the Granite Wash, the SCOOP, the STACK, the Cana-Woodford Shale, the Cleveland Sand and the oil sands located in Northern Alberta, Canada. The Company’s oil and natural gas business depends in large part on the conditions in the oil and natural gas industry and, specifically, on the amount of capital spending by its customers. Any prolonged increase or decrease in oil and natural gas prices affects the levels of exploration, development and production activity, as well as the entire health of the oil and natural gas industry. 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 southwestern and midwestern portions of the United States. 2. Summary of Significant Accounting Policies Principles of Consolidation 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 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 The Company consolidates a VIE when it is determined to be the primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. See Note 11 for more information on the Company’s VIEs. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, the Company’s sand reserves and their impact on calculating depletion expense, allowance for expected credit losses, fair values used to assess recoverability and impairment of long-lived assets, including goodwill, estimates of income taxes and the estimated effects of litigation and other contingencies. Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation. 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. 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. Change in Accounting Estimate The Company is party to sale leaseback agreements whereby it has the option to purchase the assets 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. The effect of this change in estimate for the year ended December 31, 2024 was a decrease to net income of $ 9.9 million, or $ 0.21 per both basic and diluted share. F-10 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Cash, Cash Equivalents and Restricted Cash All highly liquid investments with an original maturity of three months or less are considered cash equivalents. 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. At December 31, 2025, the Company had $ 4.1 million, in Canadian dollars, of cash in Canadian accounts. Cash balances from time to time may exceed the insured amounts; 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 sums to the total of the same such amounts shown in the statement of cash flows. December 31, 2025 2024 Cash and cash equivalents $ 101,987 $ 60,845 Restricted cash 12,085 19,359 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 114,072 $ 80,204 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. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer’s risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Most areas in the continental United States in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. 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” 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 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 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 December 31, 2024, were receivables related to income taxes totaling $ 8.9 million. F-11 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Allowance for Current Expected Credit Losses The Company regularly reviews receivables and provides for expected losses through an allowance for expected credit losses. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for expected credit losses may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. 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 year ended December 31, 2025 (in thousands): Balance, December 31, 2024 $ 171,264 Change in provision for expected credit losses 133 Recoveries of receivables previously charged to credit loss expense ( 84 ) Write-offs charged against the provision ( 376 ) 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 $ 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. PREPA On October 19, 2017, one of our subsidiaries, Cobra, and PREPA entered into an emergency master services agreement for repairs to PREPA’s electrical grid as a result of Hurricane Maria. The one-year contract, as amended, provided for payments of up to $ 945 million (the “first contract”). On May 26, 2018, Cobra and PREPA entered into a second one-year, $ 900 million master services agreement to provide additional repair services and begin the initial phase of reconstruction of the electrical power system in Puerto Rico (the “second contract”). PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the United States District Court for the District of Puerto Rico (the “Title III Court”). As a result, PREPA’s ability to meet its payment obligations under the above-referenced agreements was largely dependent upon funding from the Federal Emergency Management Agency (“FEMA”) or other sources. Since September 30, 2019, Cobra has been pursuing litigation in the Title III Court and other dispute resolution efforts seeking recovery of the amounts owed to Cobra by PREPA for restoration services in Puerto Rico, which proceedings are discussed in more detail in the Company’s prior reports filed with the SEC. PREPA was holding approximately $ 18.4 million in funds (the “Withheld FEMA Funds”) received from FEMA and considered payable to Cobra but had been withheld due to garnishments asserted by three Puerto Rican municipalities (the “Specified Municipalities”) for certain municipal tax claims discussed in Mammoth’s filings with the SEC (the “Specified Municipal Tax Claims”) and for which Cobra disputed any valid garnishment. 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. 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. Cobra’s allowed claim will be paid through three installments: (i) $ 150.0 million on the later of (A) ten business days following approval of the Settlement Agreement by the Title III Court and (B) August 31, 2024; (ii) $ 20.0 million within seven days following the effective date of PREPA’s plan of adjustment; 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. F-12 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”). On October 1, 2024, Cobra received the first installment payment of $ 150.0 million from the Commonwealth of Puerto Rico in connection with the Settlement Agreement with PREPA. Also on October 1, 2024, certain Puerto Rico municipalities and Foreman Electric Services Inc. that had objected to approval of the Settlement Order each filed timely notices of appeal of the Settlement Order to the United States Court of Appeals for the First Circuit. None of the foregoing parties have sought a stay of the Settlement Order pending such appeals. Although the ultimate outcome of these appeals cannot be predicted with certainty, Cobra believes that the appeals are without merit. 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, National Association (“Fifth Third Bank”) to issue a letter of credit to PREPA under the Reimbursement Agreement in the amount of $ 18.4 million and transferred a total of $ 19.3 million to a restricted cash account maintained by Fifth Third Bank as collateral for the letter of credit. As a result of the Settlement Agreement, the Company recorded a non-cash, pre-tax charge of approximately $ 170.7 million in the second quarter of 2024 to reduce its accounts receivable balance from PREPA of $ 359.1 million, representing the amount owed to Cobra by PREPA in relation to these agreements as of June 30, 2024, including the accrued but unpaid interest, prior to the Settlement Agreement, to the amount expected to be received from the Settlement Agreement. Of the $ 170.7 million, $ 89.2 million was charged to credit loss expense, which is included in “selling, general and administrative” 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 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. The Company assesses the valuation of its inventories based upon specific usage, future utility, obsolescence and other factors. Inventory manufactured at the Company’s sand production facilities includes direct excavation costs, processing costs and overhead allocation. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Costs are calculated on a per ton basis and are applied to the stockpiles based on the number of tons in the stockpile. Inventory transported for sale at the Company’s terminal facility includes the cost of purchased or manufactured sand, plus transportation related charges. See Note 5 for additional disclosure related to inventory. Other Current Assets Prepaid expenses primarily consist of insurance costs and lease expense. These costs are expensed over the periods that they benefit. 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, 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, 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. F-13 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. Exploration costs are expensed as incurred and classified as product cost of revenue. Capitalization of mine development project costs begins once the deposit is classified as proven and probable reserves. Drilling and related costs are capitalized for deposits where proven and probable reserves exist and the activities are directed at obtaining additional information on the deposit or converting non-reserve minerals to proven and probable reserves and the benefit is to be realized over a period greater than one year. Mining property and development costs are amortized using the units-of-production method on estimated measured tons in in-place reserves. The impact of revisions to reserve estimates is recognized on a prospective basis. Impairment of Long-Lived Assets 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. Possible indicators of impairment may include events or changes in circumstances affecting the manner in which the assets are being used, historical and estimated future profitability measures, and other adverse events or changes that could affect the value of the assets. If a triggering event is identified, recoverability is assessed using undiscounted future net cash flows of assets grouped at the lowest level for which there are identifiable cash flows independent of the cash flows of other groups of assets. When alternative courses of action to recover the carrying amount of the asset group are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence, which require us to apply judgment. If the carrying amount of the asset is not recoverable based on its estimated undiscounted cash flows expected to result from the use and eventual disposition, an impairment loss is recognized in an amount by which its carrying amount exceeds its estimated fair value. The assumptions used in the impairment evaluation of long-lived assets are inherently uncertain and require management’s judgment. See Note 6 for additional disclosure related to impairment of long-lived assets. Other Non-Current Assets Other non-current assets primarily consist of deferred financing costs on our revolving credit facility (see Note 10), our equity method investment (see Note 8) and capital contributions made to our group captive and protective cell captive insurance companies (see Note 18). 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 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. Asset Retirement Obligations Mine reclamation costs, future remediation costs for inactive mines and other contractual site remediation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates are reflected in earnings in the period an estimate is revised. Following is a rollforward of the Company’s asset retirement obligations for the years ended December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Balance as of beginning of period $ 4,234 $ 4,140 Accretion expense 114 161 Impairment ( 1,629 ) — Foreign currency translation adjustment 40 ( 67 ) Asset retirement obligation as of end of period $ 2,759 $ 4,234 Amortizable Intangible Assets Intangible assets subject to amortization include trade names, which are amortized over their estimated useful lives. F-14 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. 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. 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. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. 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. 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. F-15 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 The timing of revenue recognition may differ from contract billing or payment schedules, resulting in revenues that have been earned but not billed (“unbilled revenue”) or amounts that have been billed, but not earned (“deferred revenue”). The Company had $ 1.9 million and $ 7.7 million, respectively, of unbilled revenue included in “accounts receivable, net” in the accompanying consolidated balance sheets at December 31, 2025 and 2024. 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. 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. See Note 14. Equity-based Compensation The Company measures equity-based payments at fair value on the date of grant and expenses the value of these equity-based payments in compensation expense over the applicable vesting periods. See Note 15. Stock-based Compensation The Company’s stock-based compensation program consists of restricted stock units granted to employees and restricted stock units granted to non-employee directors under the Mammoth Energy Services, Inc. 2016 Equity Incentive Plan (the “2016 Plan”) and Mammoth Energy Services, Inc. 2024 Equity Incentive Plan (the “2024 Plan”). The Company recognizes in its financial statements the cost of employee services received in exchange for restricted stock based on the fair value of the equity instruments as of the grant date. In general, this value is amortized over the vesting period; for grants with a non-substantive service condition, this value is recognized immediately. Amounts are recognized in cost of revenue and selling, general and administrative expenses. See Note 16. Income Taxes The Company’s operations are included in a consolidated federal income tax return and other state returns. Accordingly, the Company has recognized deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases for all our subsidiaries as if each entity were a corporation, regardless of its actual characterization for U.S. federal income tax purposes. Under FASB ASC 740, Income Taxes , deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of deferred tax assets and liabilities as a result of a change in tax rate are recognized in the period that includes the statutory enactment date. A valuation allowance for deferred tax assets is recognized when it is more likely than not that the benefit of deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgments regarding future taxable income, as well as the jurisdiction in which such taxable income is generated, to determine whether a valuation allowance is required. 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 F-16 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. Litigation and Contingencies Accruals for litigation and contingencies are reflected in the consolidated financial statements based on management’s assessment, including advice of legal counsel, of the expected outcome of litigation or other dispute resolution proceedings and/or the expected resolution of contingencies. Liabilities for estimated losses are accrued if the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount is reasonably estimable. Accruals are based only on information available at the time of the assessment due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates. See Note 18. Foreign Currency Translation For foreign operations, assets and liabilities are translated at the period-end exchange rate and income statement items are translated at the average exchange rate for the period. Resulting translation adjustments are recorded within accumulated other comprehensive loss. 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. Environmental Matters The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. 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 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 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. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. Following is a summary of our significant customers based on accounts receivable balances at December 31, 2025 and 2024 and revenues derived for the years ended December 31, 2025 and 2024: REVENUES ACCOUNTS RECEIVABLE Years Ended December 31, At December 31, 2025 2024 2025 2024 Customer A (a) 18 % 18 % 4 % 3 % Customer B (b) 12 % 14 % 5 % 1 % Customer C (c) 10 % 10 % 2 % 2 % 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. F-17 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS New Accounting Pronouncements 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 (“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. F-18 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3. 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. F-19 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 F-20 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 F-21 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. 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. The termination penalties in the customer contracts vary, but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification in the period in which the customer invokes the termination provision. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. 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. 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. 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 Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. 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 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 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. 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 F-22 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. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation. Contract Balances 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 ) Increase for deferral of customer prepayments 1,357 Balance, December 31, 2025 $ 1,357 The Company did not have any contract assets as of December 31, 2025 or December 31, 2024. Performance Obligations Revenue recognized in the current period from performance obligations satisfied in previous periods was a nominal amount for the years ended December 31, 2025 and 2024. 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. 5. Inventories 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. The Company assesses the valuation of its inventories based upon specific usage, future utility, obsolescence and other factors. A summary of the Company’s inventories is shown below (in thousands): December 31, 2025 2024 Supplies $ 1,913 $ 2,080 Raw materials — 15 Work in process 1,482 4,081 Finished goods 688 672 Total inventory $ 4,083 $ 6,848 F-23 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6. 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. F-24 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7. Property, Plant and Equipment, net Property, plant and equipment, net include the following (in thousands): December 31, Useful Life 2025 2024 Machinery and equipment 7 - 20 years $ 53,774 $ 114,366 Aviation equipment (a) 3 - 10 years 43,498 3,742 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 Rail improvements 10 - 20 years 11,759 13,445 Land N/A 6,025 11,679 Other property, plant and equipment 3 - 15 years 6,721 17,305 177,983 314,412 Equipment not yet placed in service 25,970 3,094 203,953 317,506 Less: Accumulated depreciation (b) 97,856 250,855 Total property, plant and equipment, net $ 106,097 $ 66,651 a. This equipment relates to assets leased to customers under operating leases. b. Includes accumulated depreciation of $ 5.7 million and $ 2.7 million at December 31, 2025 and 2024, respectively, related to assets under operating leases. Depreciation, depletion, amortization and accretion A summary of depreciation, depletion, amortization and accretion is shown below (in thousands): Years Ended December 31, 2025 2024 Depreciation expense $ 8,669 $ 10,245 Depletion and accretion expense 1,568 1,415 Amortization expense 55 55 Depreciation, depletion, amortization and accretion $ 10,292 $ 11,715 8. Equity Method Investment On December 21, 2018, Cobra Aviation and Wexford Partners Investment Co. LLC (“Wexford Investment”), a related party, formed a joint venture under the name of Brim Acquisitions LLC (“Brim Acquisitions”) to acquire all outstanding equity interest in Brim Equipment Leasing, Inc. (“Brim Equipment”) for a total purchase price of approximately $ 2.0 million. 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. Brim Acquisitions, through Brim Equipment, owns three commercial helicopters and leases two commercial helicopters for operations, which it uses to provide a variety of services, including short haul, aerial ignition, hoist operations, aerial photography, fire suppression, construction services, animal/capture/survey, search and rescue, airborne law enforcement, power line construction, precision long line operations, pipeline construction and survey, mineral and seismic exploration, and aerial seeding and fertilization. The Company uses the equity method of accounting to account for its investment in Brim Acquisitions, which had a carrying value of approximately $ 3.2 million and $ 4.1 million, respectively, at December 31, 2025 and 2024. 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’ 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. F-25 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities included the following (in thousands): December 31, 2025 2024 Accrued Expenses and Other Current Liabilities State and local taxes payable $ 12,332 $ 12,630 Financed insurance premiums (a) 1,936 8,409 Deferred revenue 1,357 1,600 Insurance reserves 1,166 1,507 Accrued compensation and benefits 821 469 Other 724 1,035 Total accrued expenses and other current liabilities $ 18,336 $ 25,650 (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 %. 10. Debt 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. Borrowings under the revolving credit facility are secured by the Company’s assets, inclusive of the subsidiary companies, and are subject to a borrowing base calculation prepared monthly which includes a requirement to maintain certain reserves as specified in the revolving credit facility. The revolving credit facility also contains various affirmative and restrictive covenants. 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%. 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) 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. The aggregate amount of all such letters of credit shall not exceed $ 18.4 million. 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. F-26 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. 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: i. 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”); ii. 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; iii. expand the Company’s investment opportunities to include equity securities and private investments; and iv. 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. The term credit facility provided for term commitments in an aggregate amount equal to $ 45 million. Borrowings under the term credit facility were secured by the Company’s assets, inclusive of the subsidiary companies. 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 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. F-27 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 11. Variable Interest Entities Dire Wolf and Predator Aviation, wholly owned subsidiaries of the Company, are party to Voting Trust Agreements with TVPX Aircraft Solutions Inc. (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 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 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. Dire Wolf’s and Predator Aviation’s voting rights are not proportional to their respective obligations to absorb expected returns or losses of Cobra Aviation and Leopard, respectively, and all of Cobra Aviation’s and Leopard’s activities are conducted on behalf of Dire Wolf and Predator Aviation, which have disproportionately fewer voting rights; therefore, Cobra Aviation and Leopard meet the criteria of a VIE. Cobra Aviation and Leopard’s operational activities are directed by Dire Wolf’s and Predator Aviation’s officers and Dire Wolf and Predator Aviation have the option to terminate the Voting Trust Agreements at any time. 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. 12. Income Taxes 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, 2025 2024 Loss from continuing operations before income taxes: United States ( 52,893 ) ( 26,638 ) Non-U.S. ( 6,776 ) ( 167,780 ) Total $ ( 59,669 ) $ ( 194,418 ) F-28 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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, 2025 2024 Federal income tax expense (benefit): Current 251 295 Deferred ( 358 ) 2,500 Total $ ( 107 ) $ 2,795 State income tax expense (benefit): Current ( 65 ) 75 Deferred — — 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 ) F-29 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, 2025 2024 Amount Percent Amount Percent U.S. federal statutory tax rate $ ( 12,531 ) 21.0 % $ ( 40,828 ) 21.0 % State and local income taxes, net of federal income tax effect (a) 26 — 60 — Foreign tax effects Canada Statutory tax rate difference between Canada and United States 14 — 61 — Withholding taxes 376 ( 0.6 ) — — Puerto Rico 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 ) Withholding taxes — — ( 19,899 ) 10.2 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 Tax credits 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 $ 3.7 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. F-30 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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, 2025 2024 Deferred tax assets: Allowance for doubtful accounts $ 94 $ 167 Section 163(j) interest limitation 1,075 5,090 Lease asset 626 3,660 Intangible assets 810 1,050 Accrued liabilities 2,211 3,605 Net operating loss carryover 120,277 114,506 Foreign tax credits 76,570 76,570 Accumulated other comprehensive income 970 1,068 Other 296 207 Valuation allowance ( 188,361 ) ( 187,087 ) Deferred tax assets 14,568 18,836 Deferred tax liabilities: Property, plant and equipment $ ( 14,571 ) $ ( 14,140 ) Lease liability ( 830 ) ( 3,583 ) Other ( 1,597 ) ( 4,134 ) Deferred tax liabilities ( 16,998 ) ( 21,857 ) Net deferred tax (liability) asset $ ( 2,430 ) $ ( 3,021 ) Reflected in accompanying balance sheet as: Deferred income tax asset $ — $ — Deferred income tax liability ( 2,430 ) ( 3,021 ) Total $ ( 2,430 ) $ ( 3,021 ) During the years ended December 31, 2025 and 2024, the Company recorded changes in its valuation allowance of $ 1.3 million and $ 120.5 million, respectively, related to deferred tax assets that are not expected to be utilized. The Company has foreign tax credit carryforwards of $ 76.6 million as of December 31, 2025. These credits have a 10-year carryforward period and begin to expire in 2028. 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. The Company maintains a full valuation allowance related to U.S. foreign tax credit carryforwards, as it cannot objectively assert that these deferred tax assets are more likely than not to be realized. The Company has a full valuation allowance on U.S. tax attribute carryforwards to the extent not supported by existing deferred tax liabilities. As result of the annual limitations for net operating loss carryforwards to offset only 80 percent of taxable income, the Company reflects the net deferred tax liability as of December 31, 2025. The Company recorded the full valuation allowance with respect to the Puerto Rico net operating loss carryforwards as they are not more likely than not to be realized. All available positive and negative evidence was weighed to determine whether a valuation allowance was necessary. The most significant evidential matter relates to recent cumulative loss position in the U.S. and no projected benefit related to losses generated in Puerto Rico as of December 31, 2025. 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): F-31 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2025 2024 U.S. federal $ — $ — U.S. state and local Texas — 58 Other jurisdictions 32 43 Foreign 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. The Company did not have any uncertain tax positions for the years ended December 31, 2025 and 2024. The Company’s U.S. federal tax returns for tax years 2020 through 2024 remain subject to examination by the tax authorities. The Company’s state and local income tax returns for tax years 2019 through 2024 remain subject to examination, with few exceptions, by the respective tax authorities. Puerto Rico tax returns for tax years 2019 through 2024 and Canada tax returns for the tax years 2018 through 2024 remain open to examination by the respective tax authorities. 13. Leases Lessee Accounting The Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. 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. F-32 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): Year Ended December 31, 2025 2024 Operating lease expense $ 3,662 $ 5,642 Short-term lease expense 890 139 Financing lease expense: Amortization of right-of-use assets 110 200 Interest on lease liabilities 13 51 Total lease expense $ 4,675 $ 6,032 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, 2025 2024 Property, plant and equipment, net $ 102 $ 540 Accrued expenses and other current liabilities 49 214 Other liabilities 26 76 Other supplemental information related to leases for the years ended December 31, 2025 and 2024 is as follows (in thousands): Year Ended December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,172 $ 5,599 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 Financing leases — 150 Year Ended December 31, 2025 2024 Weighted-average remaining lease term: Operating leases 3.5 years 2.7 years Financing leases 1.5 years 1.5 years Weighted-average discount rate: Operating leases 9.8 % 9.8 % Financing leases 10.1 % 7.7 % F-33 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Maturities of lease liabilities as of December 31, 2025 are as follows (in thousands): Operating Leases Finance Leases 2026 $ 2,284 $ 54 2027 977 27 2028 251 — 2029 50 — 2030 50 — Thereafter 510 — Total lease payments 4,122 81 Less: Present value discount 676 6 Present value of lease payments $ 3,446 $ 75 Lessor Accounting Certain of the Company’s agreements with its customers for equipment rentals, aviation services and remote accommodation services contain an operating lease component under FASB ASC 842, Leases, because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under FASB ASC 606, when the non-lease component is the predominant element of the combined component. The Company’s lease agreements are generally short-term in nature and lease revenue is recognized over time based on a monthly, daily or hourly rate basis. 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, 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): 2026 $ 7,169 2027 3,504 2028 2,802 2029 1,365 2030 302 Thereafter — Total lease payments $ 15,142 F-34 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 14. Earnings Per Share Year Ended December 31, 2025 2024 (in thousands, except per share data) 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 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. 15. Equity Based Compensation Upon formation of certain operating entities by Wexford and Gulfport, specified members of management (the “Specified Members”) and certain non-employee members (the “Non-Employee Members”) were granted the right to receive distributions from the operating entities after the contribution member’s unreturned capital balance was recovered (referred to as “Payout” provision). On November 24, 2014, the awards were modified in conjunction with the contribution of the operating entities to Mammoth. These awards were not granted in limited or general partner units. The awards are for interests in the distributable earnings of the members of MEH Sub, Mammoth’s majority equity holder. On the closing date of Mammoth Inc.’s initial public offering (“IPO”), the unreturned capital balance of Mammoth’s majority equity holder was not fully recovered from its sale of common stock in the IPO. As a result, Payout did not occur and no compensation cost was recorded. 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. For the Specified Member awards, the unrecognized amount, which represents the fair value of the award as of the modification dates or grant date, was $ 5.6 million. 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. 16. 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”). 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. Restricted Stock Units The fair value of restricted stock unit awards was determined based on the fair market value of the Company’s common stock on the date of the grant. This value is amortized over the vesting period. F-35 MAMMOTH ENERGY SERVICES, INC. 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 restricted stock units as of January 1, 2024 302,383 5.06 Granted 139,280 3.59 Vested ( 185,717 ) 4.71 Unvested restricted stock units as of December 31, 2024 255,946 4.52 Vested ( 230,946 ) 4.40 Forfeited ( 25,000 ) 5.63 Unvested restricted stock units as of December 31, 2025 — — 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. 17. Related Party Transactions 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 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. Cobra Aviation and Leopard each lease one helicopter to Brim Equipment under the terms of aircraft lease and management agreements. 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. See Note 10 for additional detail on the agreement with Wexford. 18. Commitments and Contingencies Commitments From time to time, the Company may enter into agreements with suppliers that contain minimum purchase obligations and agreements to purchase capital equipment. The Company did not have any unconditional purchase obligations as of December 31, 2025. Letters of Credit 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. F-36 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Insurance 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. 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. 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. 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, 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. The Company also self-insures its employee health insurance. 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, 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. Bonds 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. These bonds provide a guarantee to the customer that the Company, if awarded the project, will perform under the terms of the contract. Bid bonds are typically provided for a percentage of the total contract value. Additionally, the Company may be required to provide performance and payment bonds for contractual commitments related to projects in process. These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for expenses or outlays it incurs. 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. Litigation 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. PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the Title III Court. As a result, PREPA’s ability to meet its payment obligations under the above-referenced agreements was largely dependent upon funding from FEMA or other sources. Since September 30, 2019, Cobra has been pursuing litigation in the Title III Court and other dispute resolution efforts seeking recovery of the amounts owed to Cobra by PREPA for restoration services in Puerto Rico, which proceedings are discussed in more detail in the Company’s prior reports filed with the SEC. PREPA was holding approximately $ 18.4 million in Withheld FEMA Funds received from FEMA and considered payable to Cobra but had been withheld due to garnishments asserted by three Puerto Rican municipalities for certain municipal tax claims discussed below and for which Cobra disputed any valid garnishment. 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. F-37 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. Cobra’s allowed claim is payable through three installments: (i) $ 150.0 million on the later of (A) ten business days following approval of the Settlement Agreement by the Title III Court and (B) August 31, 2024; (ii) $ 20.0 million within seven days following the effective date of PREPA’s plan of adjustment; and (iii) $ 18.4 million 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. 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 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. 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”). On October 1, 2024, Cobra received the first installment payment of $ 150.0 million from the Commonwealth of Puerto Rico in connection with the Settlement Agreement with PREPA. Also on October 1, 2024, certain Puerto Rico municipalities and Foreman Electric Services Inc. that had objected to approval of the Settlement Order each filed timely notices of appeal of the Settlement Order to the United States Court of Appeals for the First Circuit. None of the foregoing parties have sought a stay of the Settlement Order pending such appeals. Although the ultimate outcome of these appeals cannot be predicted with certainty, Cobra believes that the appeals are without merit. 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. As a result of the Settlement Agreement, the Company recorded a non-cash, pre-tax charge of approximately $ 170.7 million in the second quarter of 2024 to reduce its accounts receivable balance from PREPA of $ 359.1 million, representing the amount owed to Cobra by PREPA in relation to these agreements as of June 30, 2024, including the accrued but unpaid interest, prior to the Settlement Agreement, to the amount expected to be received from the Settlement Agreement. Of the $ 170.7 million, $ 89.2 million was charged to credit loss expense, which is included in “selling, general and administrative” 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. On May 13, 2021, Foreman Electric Services, Inc. (“Foreman”) filed a petition against Mammoth Inc. and Cobra in the Oklahoma County District Court (Oklahoma State Court). The petition asserted claims against the Company and Cobra under federal Racketeer Influenced and Corrupt Organizations Act (“RICO”) statutes and certain state-law causes of action. 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, 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. On December 14, 2021, Foreman re-filed its petition against Mammoth Inc. and Cobra in the Oklahoma County District Court (Oklahoma State Court). On December 16, 2021, the Company again removed this action to the United States District Court for the Western District of Oklahoma. Foreman filed a motion to remand this action back to Oklahoma County District Court, which was granted on May 5, 2022. On September 28, 2023, the Company moved to dismiss the petition. On November 16, 2023, rather than respond to the motion, Foreman filed an Amended Petition naming Arty Straehla, Mark Layton and Wexford as additional defendants, added claims for fraudulent transfer arising out of the refinancing of certain debt and sought receivership over Mammoth and Cobra related to allegedly fraudulently transferred assets. The defendants moved to dismiss the Amended Petition, which was denied on March 12, 2024. On February 8, F-38 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. Additionally, on February 6, 2023, Foreman moved to amend a complaint against the former president of Cobra filed in Florida State Court arising from facts similar to those in the pending Oklahoma action to add, as defendants, Arty Straehla and Mark Layton. On September 15, 2023, Straehla and Layton moved to dismiss the complaint. On January 18, 2024, Foreman voluntarily dismissed the Florida State Court action against Straehla and Layton. In a related matter, on January 12, 2022, a Derivative Complaint on behalf of nominal defendant Machine Learning Integration, LLC (“MLI”), which alleges it would have served as a sub-contractor to Foreman in Puerto Rico, was filed against the Company and Cobra in the U.S. District Court for the District of Puerto Rico alleging essentially the same facts as Foreman’s action and asserting violations of federal RICO statutes and certain non-federal claims. MLI alleges it sustained injuries to its business and property in an unspecified amount because the Company’s and Cobra’s wrongful interference by means of inducements to a FEMA official prevented Foreman from obtaining work, and thereby prevented MLI, as Foreman’s subcontractor, from obtaining work. 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 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. During 2015, the State of Ohio assessed taxes on the purchase of equipment the Company believes is exempt under state law. The Company appealed the assessment and a hearing was held in 2017. As a result of the hearing, the Company received a decision from the State of Ohio, which the Company appealed. On February 25, 2022, the Company received an unfavorable decision on the appeal. The Company appealed the decision. On August 2, 2023, the Ohio Supreme court affirmed the ruling in part and reversed the ruling in part. 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. On November 14, 2022, the Court entered judgment against Cobra in connection with one of the lawsuits ordering payment of approximately $ 9.0 million. On January 9, 2023, Cobra appealed the judgment and, on March 20, 2023, the Court confirmed the imposition of approximately $ 8.5 million related to construction excise taxes. On April 10, 2023, Cobra appealed this judgment, which was denied on May 5, 2023. Cobra filed a motion for reconsideration on May 15, 2023, which was denied. Cobra filed a second motion for reconsideration on June 22, 2023 and is currently awaiting a decision. On December 18, 2023, the Humacao Superior Court issued an order to PREPA to withhold payment of approximately $ 9.0 million to Cobra. On January 17, 2024, Cobra filed a Writ of Certiorari requesting the Court of Appeals to reverse the order from the Humacao Superior Court. On February 15, 2024, Cobra’s request was granted by the Court of Appeals and the order instructing PREPA to withhold the $ 9.0 million payment from Cobra was revoked. The case was remanded to the lower Court for continuation of the proceedings in accordance with the Court of Appeals’ order. 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. On April 16, 2019, Christopher Williams, a former employee of Higher Power Electrical, LLC, filed a putative class and collective action complaint titled Christopher Williams, individually and on behalf of all others similarly situated v. Higher Power Electrical, LLC, Cobra Acquisitions LLC, and Cobra Energy LLC in the U.S. District Court for the District of Puerto Rico. On June 24, 2019, the complaint was amended to replace Mr. Williams with Matthew Zeisset as the named plaintiff. 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 proceedings in the lawsuit and administratively closed the case pending completion of individual arbitration proceedings initiated by Mr. Zeisset and opt-in plaintiffs. Other claimants have subsequently initiated additional individual arbitration proceedings asserting similar claims. During 2023, the Company agreed to settlements in principle with a portion of the claimants. Arbitrations remain pending for the remaining claimants. The Company will continue to vigorously defend the F-39 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. The Company is involved in various other legal proceedings in the ordinary course of business. Although the Company cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material impact on the Company’s business, financial condition, results of operations or cash flows. Assignment Agreement On December 1, 2023, Cobra, as seller and Mammoth, as guarantor, entered into the Assignment Agreement with SPCP Group, as purchaser. Under the terms and conditions of the Assignment Agreement, Cobra transferred to SPCP Group, at the purchase rate of 88.0 % and free and clear of any liens and claims, all of its rights, title and interest in the first $ 63.0 million (the “Transferred Amount”) of the total outstanding accounts receivable that remained unpaid by PREPA as of October 6, 2023 (the “PREPA Claim”), received or to be received by Cobra on or after October 6, 2023. 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. The net proceeds received by Cobra in connection with the Assignment Agreement were $ 46.1 million. 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 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 The Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at their date of hire. The plan allows eligible employees to contribute up to 92 % of their annual compensation, not to exceed annual limits established by the federal government. 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, 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. 19. Reporting Segments and Geographic Areas Reporting Segments 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 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. F-40 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. All transactions conducted between segments are eliminated in consolidation. 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 intercompany payable position with the Company’s corporate entity. U.S. 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, 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) ( 73 ) 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 Segment Adjusted EBITDA $ 242 $ ( 2,826 ) $ ( 6,696 ) $ 1,046 $ ( 1,034 ) $ ( 9,268 ) Reconciliation of total segment Adjusted EBITDA Less: Other (b) $ 8,163 Depreciation, depletion, amortization and accretion 10,292 Gains on disposal of assets, net ( 2,371 ) Impairment of long-lived assets 31,669 Stock based compensation 412 Interest expense and financing charges, net ( 1,670 ) Other expense, net 3,906 Loss from continuing operations before income taxes $ ( 59,669 ) F-41 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 7,105 1,476 19,057 10,851 3,558 42,047 Reconciliation of Revenue Other (b) 3,950 Eliminations (a) ( 398 ) 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 Segment Adjusted EBITDA $ 299 $ ( 1,684 ) $ ( 5,475 ) $ 2,093 $ ( 2,153 ) $ ( 6,920 ) Reconciliation of total segment Adjusted EBITDA Less: Other (b) $ 103,609 Depreciation, depletion, amortization and accretion 11,715 Gains on disposal of assets, net ( 2,762 ) Stock based compensation 875 Interest expense and financing charges, net 9,497 Other expense (income), net 64,564 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 for reportable segments $ 75,004 $ 2,598 $ 68,028 $ 14,309 $ 1,859 $ 161,798 Other assets (a) 167,900 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) 130,049 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. F-42 MAMMOTH ENERGY SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Following is a breakout of purchases of property, plant and equipment for the periods indicated (in thousands): Year Ended December 31, 2025 2024 Rentals $ 69,953 $ 351 Infrastructure 128 299 Accommodations 343 161 Drilling 128 184 Total segment purchases of property, plant and equipment 70,552 995 Other (a) — 219 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 The following table presents consolidated revenues by country based on sales destination of the products or services (in thousands): Year Ended December 31, 2025 2024 United States $ 27,508 $ 23,550 Canada 16,708 22,033 Other 76 16 Total $ 44,292 $ 45,599 The following table presents long-lived assets, excluding deferred income tax assets, by country (in thousands): Year Ended December 31, 2025 2024 United States $ 146,537 $ 127,712 Canada 7,531 7,549 Total $ 154,068 $ 135,261 20. 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. F-43