Operational Performance and Strategic Rationale

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• Second quarter revenue grew 15.6% sequentially to $167.3 million, driven by a normalization of seasonal impacts and improved utilization across the base business.

• Adjusted EBITDA increased 68% sequentially to $19 million, demonstrating significant operating leverage as activity levels improved and fixed costs were better absorbed.

• The base business grew 13% sequentially, notably outpacing the 5.8% increase in U.S. land rig count, reflecting solid execution in coiled tubing and directional drilling.

• The WolfPack acquisition, closed in June, contributed $3.4 million in its first month and is already realizing cross-selling opportunities and increased synergy targets.

• Management attributed the shift toward drilling-focused revenue (23% of total) to the inclusion of WolfPack and legacy accommodations, which limited incremental margins due to service mix.

• Regional performance was led by the Rockies and Southwest segments, while Mid-Con revenue remained flat but achieved margin expansion through cost discipline and PSL mix shifts.

Strategic Outlook and Financial Flexibility

• Q3 revenue is guided to $176-$188 million, implying mid-single-digit growth in the base business despite broader market expectations for flat activity.

• The $125 million backstopped equity rights offering is a proactive measure to reduce net leverage to approximately 2.7x and enhance financial resilience against market cycles.

• Management expects Q3 to be the low point for liquidity due to working capital builds required to support meaningful sequential revenue growth.

• The company anticipates a 50-50 cash and PIK interest mix for senior secured notes in Q4, moving away from the 100% PIK election used in Q2 and Q3.

• Strategic focus remains on integrating WolfPack, capturing synergy benefits, and converting higher activity levels into stronger cash generation.

Structural Changes and Risk Factors

• A $6.5 million non-recurring bargain purchase gain was recognized from the WolfPack acquisition, reflecting fair value of assets acquired above the purchase price.

• The equity rights offering is explicitly framed as a proactive capital structure improvement, not a response to operational failure or a bankruptcy process.

• Management flagged that current pricing across most service lines is insufficient to justify material growth CapEx or equipment reactivation.

• The expiration of coiled tubing leases at the end of 2026 is expected to improve the annual free cash flow profile by approximately $8.2 million starting in 2027.