# National Energy Services Reunited Corp. (NESR) Informational only - not investment advice. CIK: 0001698514 SIC: 1389 Oil & Gas Field Services, NEC SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1389 Oil & Gas Field Services, NEC](/industry/1389/) Latest 10-K filed: 2026-03-06 SEC page: https://www.sec.gov/edgar/browse/?CIK=1698514 Filing source: https://www.sec.gov/Archives/edgar/data/1698514/000149315226009139/form10-k.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1324047000 | USD | 2025 | 2026-03-06 | | Net income | 51132000 | USD | 2025 | 2026-03-06 | | Assets | 1851519000 | USD | 2025 | 2026-03-06 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001698514.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2017 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | | Revenue | | | 1,145,915,000 | 1,301,704,000 | 1,324,047,000 | | Net income | -2,864,031 | | 12,580,000 | 76,310,000 | 51,132,000 | | Operating income | -4,214,790 | | 80,703,000 | 137,704,000 | 98,320,000 | | Gross profit | | | 148,650,000 | 208,673,000 | 164,730,000 | | Diluted EPS | | | 0.13 | 0.80 | 0.52 | | Operating cash flow | -865,000 | | 176,959,000 | 229,329,000 | 264,242,000 | | Capital expenditures | | | 68,190,000 | 105,105,000 | 143,454,000 | | Assets | 231,422,540 | | | 1,773,678,000 | 1,851,519,000 | | Liabilities | 12,496,729 | | | 865,446,000 | 883,603,000 | | Stockholders' equity | | 802,348,000 | 821,494,000 | 908,232,000 | 967,916,000 | | Cash and cash equivalents | 741,096 | | 67,821,000 | 107,956,000 | 124,797,000 | | Free cash flow | | | 108,769,000 | 124,224,000 | 120,788,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2017 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | | Net margin | | | 1.10% | 5.86% | 3.86% | | Operating margin | | | 7.04% | 10.58% | 7.43% | | Return on equity | | | 1.53% | 8.40% | 5.28% | | Return on assets | -1.24% | | | 4.30% | 2.76% | | Liabilities / equity | | | | 0.95 | 0.91 | | Current ratio | 0.25 | | | 1.07 | 1.04 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001698514.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2017-Q2 | 2017-06-30 | | 299,169 | | reported discrete quarter | | 2017-Q3 | 2017-09-30 | | -31,052 | | reported discrete quarter | | 2017-Q4 | 2017-12-31 | | -3,126,404 | | derived Q4 = FY annual - nine-month YTD | | 2018-Q1 | 2018-03-31 | | -1,851,707 | | reported discrete quarter | | 2026-Q1 | 2026-03-31 | 404,586,000 | 23,827,000 | 0.23 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1698514/000149315226022091/form10-q.htm Extracted from Part I Item 2 to the first post-MD&A boundary after HTML sanitization. Confidence: high Filing date: 2026-05-11 Report date: 2026-03-31 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q (“Quarterly Report”). In addition, such analysis should be read in conjunction with the audited consolidated financial statements, the related notes, and the other information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Annual Report”). The following discussion and analysis contain forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. Please read “Cautionary Note Regarding Forward-Looking Statements” below. National Energy Services Reunited Corp. (the “Company,” “NESR,” “we,” “our,” “us” or similar terms) is one of the largest oilfield services providers in the Middle East and North Africa (“MENA”) region. The Company’s business consists primarily of upstream and midstream oilfield services with oil and natural gas companies as customers. NESR’s revenues are primarily derived by providing production services (“Production Services”) such as hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management. NESR also provides drilling and evaluation services (“Drilling and Evaluation Services”) such as rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services, and slickline services. NESR has significant operations throughout the MENA region including Saudi Arabia, Oman, Kuwait, United Arab Emirates (“UAE”), Iraq, Algeria, Egypt and Libya. EXECUTIVE OVERVIEW Drivers of Our Financial Condition and Results of Operations As of the end of the three-month period covered by this Quarterly Report, the ongoing conflict between the United States, Israel and Iran has contributed to heightened volatility in global crude oil markets and increased upstream activity across the MENA region, as reflected in the increase in Brent crude prices and the regional rig count discussed below. While these conditions have favorably impacted customer demand for our services during the period, the duration, scope and ultimate trajectory of the conflict remain uncertain, and a de-escalation, a further escalation, or related sanctions, supply disruptions or geopolitical responses could materially affect commodity prices, customer capital spending and our results of operations and financial condition in future periods. For a full discussion of the drivers of our financial condition and results of operations, see the section entitled “Drivers of Our Financial Condition and Results of Operations” in Part II, Item 7 of our 2025 Annual Report. Key Performance Indicators As of the end of the three-month period covered by this Quarterly Report, there have been no material changes regarding our key performance indicators except as provided in the following table which shows rig count (Source: Baker Hughes Published Rig Count Data) and oil prices (Source: U.S. Energy Information Administration - Brent – Europe) as of the dates indicated. For a full discussion of our key performance indicators, see the section entitled “Key Performance Indicators” in Part II, Item 7 of our 2025 Annual Report. As of March 31, 2026 December 31, 2025 Rig count: MENA 555 565 Rest of World – outside of North America 507 500 Total International Rig Count 1,062 1,065 Brent Crude (per barrel) $ 126.69 $ 61.35 18 RESULTS OF OPERATIONS We operate our business through two operating segments and report our results of operations through two reporting segments, Production Services and Drilling and Evaluation Services, which aggregate services performed during distinct stages of a typical life cycle of an oil well. Production Services. Our Production Services segment includes the results of operations from services that are generally offered and performed during the production stage of a well’s lifecycle. These services mainly include hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management. Our Production Services accounted for 60% and 62% of our revenues for the three-month periods ended March 31, 2026, and March 31, 2025, respectively. Drilling and Evaluation Services. Our Drilling and Evaluation Services segment includes the results of operations from services that are generally offered and performed during pre-production stages of a well’s lifecycle and related mainly to the operation of oil rigs. The services mainly include rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services and slickline services. Our Drilling and Evaluation Services accounted for 40% and 38% of our revenues for the three-month periods ended March 31, 2026, and March 31, 2025, respectively. For a full discussion of our reportable segments, see the section entitled “Business” in Part I, Item 1 of our 2025 Annual Report. Key Components of Revenues and Expenses As of the end of the three-month period covered by this Quarterly Report, there have been no material changes to our key components of revenues and expenses. See the section entitled “Key Components of Revenues and Expenses” in Part II, Item 7 of our 2025 Annual Report for more information. 2026 compared to 2025 The following table presents our Consolidated Statements of Operations (Unaudited) data for the periods indicated (in US$ thousands): For the three-month period ended Description March 31, 2026 March 31, 2025 Revenues $ 404,586 $ 303,102 Cost of services (352,755 ) (265,647 ) Gross profit 51,831 37,455 Selling, general, and administrative expenses (excluding Amortization) (11,103 ) (11,821 ) Amortization (4,693 ) (4,693 ) Operating income 36,035 20,941 Interest expense, net (6,543 ) (8,284 ) Other income, net 1,449 1,059 Income before income tax 30,941 13,716 Income tax expense (7,114 ) (3,325 ) Net income $ 23,827 $ 10,391 Revenue. Revenue was $404.6 million for the three-month period ended March 31, 2026, compared to $303.1 million for the three-month period ended March 31, 2025. The table below presents our revenue by segment for the periods indicated (in US$ thousands): For the three-month period ended March 31, 2026 March 31, 2025 Reportable Segment: Production Services $ 241,045 $ 188,087 Drilling and Evaluation Services 163,541 115,015 Total revenue $ 404,586 $ 303,102 19 Production Services revenue was $241.0 million for the three-month period ended March 31, 2026, compared to $188.1 million for the three-month period ended March 31, 2025. The change in revenue was primarily due to increased hydraulic fracturing stages in Saudi Arabia. Drilling and Evaluation Services revenue was $163.5 million for the three-month period ended March 31, 2026, compared to $115.0 million for the three-month period ended March 31, 2025. The change in revenue was primarily due to increased well testing activity in Saudi Arabia. Cost of services. Cost of services was $352.8 million for the three-month period ended March 31, 2026, compared to $265.6 million for the three-month period ended March 31, 2025. Cost of services as a percentage of total revenue was 87.2% and 87.6% for the three-month periods ended March 31, 2026, and March 31, 2025, respectively. The change in cost of services as a percentage of total revenue is mainly due to increased activity levels in the period ended March 31, 2026, as compared to the prior year period, reflecting improved cost absorption as revenue scaled. Cost of services included depreciation expense of $29.1 million, and $29.5 million for the three-month period ended March 31, 2026, and March 31, 2025, respectively. Gross profit. Gross profit was $51.8 million for the three-month period ended March 31, 2026, compared to $37.5 million for the three-month period ended March 31, 2025. Gross profit as a percentage of total revenue was 12.8% and 12.4% for the three-month period ended March 31, 2026, and the three-month period ended March 31, 2025, respectively. The change in trend is described under “Revenue” and “Cost of services.” SG&A expense. SG&A expense, which represents costs associated with managing and supporting our operations, was $11.1 million for the three-month period ended March 31, 2026, compared to $11.8 million for the three-month period ended March 31, 2025. SG&A expense as a percentage of total revenue was 2.7% and 3.9% for the three-month period ended March 31, 2026, and March 31, 2025, respectively. The period-over-period decrease in SG&A expense was primarily attributable to lower spending on activities related to the remediation of the Company’s material weakness, as the Company completed remediation as of June 30, 2025 and therefore incurred significant remediation-related costs during the quarter ended March 31, 2025. Amortization expense. Amortization expense was $4.7 million for the three-month period ended March 31, 2026, compared to $4.7 million for the three-month period ended March 31, 2025. Amortization expense is driven mainly by acquired intangible assets resulting from acquisitions. Interest expense, net. Interest expense, net, was $6.5 million for the three-month period ended March 31, 2026, compared to $8.3 million for the three-month period ended March 31, 2025. Interest expense, net, decreased period-over-period, due to lower debt levels during 2026 as compared to 2025. Other income, net. Other income, net, was $1.4 million for the three-month period ended March 31, 2026, compared to $1.1 million for the three-month period ended March 31, 2025. Income tax expense. Income tax expense was $7.1 million for the three-month period ended March 31, 2026, compared to $3.3 million for the three-month period ended March 31, 2025. The decrease in effective tax rate period-on-period is primarily attributable to changes in geographic earnings mix, as well as higher pre-tax income relative to adjustments related to the Company’s uncertain tax positions and unrecognized tax benefits. See Note 7, Income Taxes, to our consolidated financial statements included in Item 1, “Financial Statements,” of this Quarterly Report. 20 Net income. Net income was $23.8 million for the three-month period ended March 31, 2026, compared to $10.4 million for the three-month period ended March 31, 2025. Supplemental Segment Operating Income Discussion For the three-month period ended (in US$ thousands) March 31, 2026 March 31, 2025 Reportable Segment: Production Services $ 32,737 $ 20,029 Drilling and Evaluation Services 18,182 16,147 Production Services operating income was $32.7 million for the three-month period ended March 31, 2026, compared to $20.0 million for the three-month period ended March 31, 2025. The change in Supplemental Segment Operating Income was primarily due to increased hydraulic fracturing stages in Saudi Arabia with a significant portion of incremental revenue translating into segment operating income. Drilling and Evaluation operating income was $18.2 million for the three-month period ended March 31, 2026, compared to $16.1 million for the three-month period ended March 31, 2025. The change in Supplemental Segment Operating Income was primarily due to addition [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis is provided to increase the understanding of, and should be read in conjunction with the accompanying consolidated financial statements and related notes. In addition, see Item 1A, “Risk Factors” and the “Forward-Looking Statements” included in this Annual Report. for a discussion of the risks, uncertainties and assumptions associated with these statements. Unless otherwise noted, all amounts discussed herein are consolidated. EXECUTIVE OVERVIEW Drivers of Our Financial Condition and Results of Operations We are a provider of services to the oil and natural gas industry primarily in the MENA region. We currently operate in 16 countries, with a strong presence in Saudi Arabia, Oman, Kuwait, UAE, Iraq, Egypt, Libya, and Algeria. Our company was founded with a vision of creating a regional provider for oilfield services that offers a full portfolio of solutions for our customers with a focus on supporting the economies in which we operate. ESG considerations are central to our Company, and we believe that employing local staff and fully integrating with regional economies is a critical part of the social component of our ESG philosophy. In addition, we have found that promoting high local content in our operations optimizes our cost structure, enhancing our ability to generate free cash flow in various commodity price environments. Customer investment in oil and natural gas exploration, field development, and production is driven by multiple factors, including global energy supply and demand forecasts, geopolitical and economic conditions in key operating regions, and expectations for future oil and natural gas prices. During the years ended December 31, 2025, 2024, and 2023, approximately 99%, 99%, and 99%, respectively, of our revenue was generated from operations in the MENA region. According to the Energy Institute Statistical Review of World Energy 2025 (74th edition), the Middle East accounts for nearly one-third of global oil production, underscoring the region’s critical role in global energy supply. NESR’s strong presence in these markets provides a unique competitive advantage. Many MENA economies are structurally dependent on the energy sector as their primary source of national revenue and therefore maintain consistent production and development activity, even in periods of lower commodity prices. With some of the lowest break-even costs of production globally, Middle Eastern producers continue to invest through cycles, enabling NESR to benefit from a stable demand base and long-term customer relationships. This strategic geographic focus positions NESR to deliver resilient financial performance and sustainable growth, even amid broader market volatility. Key Performance Indicators Historically, we have monitored two principal non-financial performance indicators that serve as key drivers of our results of operations: oil prices and rig count. Oil price trends are significant because the level of spending by our customers is heavily influenced by expectations of future oil prices, which reflect anticipated global supply and demand dynamics. Fluctuations in spending directly affect the demand for our services. Rig count, particularly in the regions where we operate, serves as an indicator of the level of drilling activity and capital investment. Historically, changes in rig count have correlated closely with our financial performance and operational activity levels. In recent years, our customers, particularly in certain parts of the MENA region, have increased their focus on natural gas development, including the commercialization of unconventional gas resources. Over time, we expect the natural gas market to become an additional key performance indicator for the Company, reflecting its growing importance in regional energy strategies and our expanding participation in that segment. The following table shows rig count (Source: Baker Hughes Published Rig Count Data) and oil prices (Source: U.S. Energy Information Administration - Brent – Europe) as of the dates indicated: As of December 31, 2025 2024 2023 Rig count: MENA 565 591 379 Rest of World – outside of North America 500 523 576 Total International Rig Count 1,065 1,114 955 Brent Crude (per barrel) $ 61.35 $ 74.58 $ 77.69 RESULTS OF OPERATIONS We operate our business through two operating segments and report our results of operations through two reporting segments, Production Services and Drilling and Evaluation Services, which aggregate services performed during distinct stages of a typical life cycle of an oil and gas well. 39 Production Services. Our Production Services segment includes the results of operations from services that are generally offered and performed during the completion and production stages of a well’s lifecycle. These services mainly include hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management. Our Production Services segment accounted for 62%, 67%, and 69%, of our revenues for the years ended December 31, 2025, 2024, and 2023, respectively. Drilling and Evaluation Services. Our Drilling and Evaluation Services segment includes the results of operations from services that are generally offered and performed during the well construction stage of a well’s lifecycle and related mainly to the operation of drilling rigs. The services mainly include rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services and slickline services. Our Drilling and Evaluation Services accounted for 38%, 33%, and 31%, of our revenues for the years ended December 31, 2025, 2024, and 2023, respectively. Please see “Principal Activities” within Item 1, “Business” in this Annual Report for additional description of our reportable segments. Key Components of Revenues and Expenses Revenues We earn revenue from our broad suite of oilfield services, including coiled tubing, hydraulic fracturing, cementing, stimulation and pumping, well testing services, drilling services and rental, fishing and remediation, drilling and workover rigs, nitrogen services, wireline logging services, turbines drilling, directional drilling, filtration services and slickline services, among others. Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered or rentals provided. A performance obligation arises under contracts with customers to render services or provide rentals and is the unit of account under Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The Company accounts for services rendered and rentals provided separately if they are distinct, and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. A contract’s standalone selling prices are determined based on the prices that the Company charges for its services rendered and rentals provided. Most of the Company’s performance obligations are satisfied over time, which is generally represented by a period of 30 days or less. The Company’s payment terms vary by the type of products or services offered. The term between invoicing and when the payment is due is typically 30-60 days per contract. Cost of services Cost of services primarily includes staff costs for service personnel, purchase of non-capitalized material, equipment and supplies (such as tools and rental equipment), depreciation relating to capital assets used in our operations, vehicle and equipment rental and maintenance and repair. Selling, general and administrative (excluding Amortization) (“SG&A”) expense SG&A expense, excluding Amortization, which is presented separately, primarily includes salary and employee benefits for non-production personnel (primarily management and administrative personnel), professional service fees, office facilities and equipment, office supplies and non-capitalized office equipment and depreciation of office furniture and fixtures. Amortization Amortization expense primarily includes amortization of intangible assets associated with acquired customer contracts, trademarks and tradenames. 40 Interest expense, net Interest expense primarily consists of interest on outstanding debt, net of interest income. Other income / (expense), net Other income / (expense), net primarily consists of inventory scrap sales, bank charges and foreign exchange gains and losses. The discussions below relating to significant line items from our consolidated statements of operations are based on available information and represent our analysis of significant changes or events that impact the fluctuations in or comparability of reported amounts. Where appropriate, we have identified specific events and changes that affect comparability or trends. In addition, the discussions below for revenues are on an aggregate basis for each fiscal period, as the business drivers for all services are similar. All amounts in tables are in US$ thousands, except share data and per share amounts. Fiscal Year 2025 compared to Fiscal Year 2024 The following table presents our Consolidated Statements of Operations data for the periods indicated: Year ended Description December 31, 2025 December 31, 2024 Revenues $ 1,324,047 $ 1,301,704 Cost of services (1,159,317 ) (1,093,031 ) Gross profit 164,730 208,673 Selling, general and administrative expenses (excluding Amortization) (47,636 ) (52,195 ) Amortization (18,774 ) (18,774 ) Operating income 98,320 137,704 Interest expense, net (32,513 ) (39,881 ) Other (expense) / income, net (5,409 ) (2,325 ) Income before income tax 60,398 95,498 Income tax expense (9,266 ) (19,188 ) Net income $ 51,132 $ 76,310 Revenue. Revenue was $1,324 million for the year ended December 31, 2025, compared to $1,301.7 million for the year ended December 31, 2024. The table below presents our revenue by segment for the periods indicated: Year ended December 31, 2025 December 31,  2024 Reportable Segment: Production Services $ 815,999 $ 878,076 Drilling and Evaluation Services 508,048 423,628 Total revenue $ 1,324,047 $ 1,301,704 Production Services revenue was $816.0 million for the year ended December 31, 2025, compared to $878.1 million for the year ended December 31, 2024. The change in revenue was primarily due to reduced hydraulic fracturing stages upon contract transition coupled with reduced coiled tubing activity in Saudi Arabia, and offset in part by higher specialty chemical sales in Egypt. 41 Drilling and Evaluation Services revenue was $508.0 million for the year ended December 31, 2025, compared to $423.6 million for the year ended December 31, 2024. The change in revenue was primarily due to increased business activity in Saudi Arabia and Kuwait. The change in revenue was primarily due to additional well testing activity due to increased rig assignments and sites in Saudi Arabia and higher period-over-period contribution from the Roya™ advanced directional drilling technology platform. Cost of services. Cost of services was $1,159.3 million for the year ended December 31, 2025, compared to $1,093.0 million for the year ended December 31, 2024. On a percentage basis, cost of services was 87.6% of revenue during the year ended December 31, 2025, as compared to 84.0% of revenue for the year ended December 31, 2024, a 359-basis point increase. The change in cost of services as a percentage of total revenue is mainly due to an elevated cost structure expected to support higher activity levels going forward, particularly in Saudi Arabia. Cost of services included depreciation expense of $118.5 million and $111.7 million for the year ended December 31, 2025, and the year ended December 31, 2024, respectively. Gross profit. Gross profit was $164.7 million for the year ended December 31, 2025, compared to $208.7 million for the year ended December 31, 2024. Gross profit as a percentage of total revenue was 12.4% and 16.0% for the year ended December 31, 2025, and the year ended December 31, 2024, respectively. The reason for the change is described under “Revenue” and “Cost of services.” SG&A expenses. SG&A expenses, which represent costs associated with managing and supporting our operations, were $47.6 million for the year ended December 31, 2025, compared to $52.2 million for the year ended December 31, 2024. SG&A as a percentage of total revenue was 3.6% and 4.0% for the year ended December 31, 2025, and the year ended December 31, 2024, respectively. The decrease in SG&A period over period is primarily due to lower spending on activities designed to facilitate remediation of the Company’s previously existing material weaknesses. Amortization expense. Amortization expense was $18.8 million for the year ended December 31, 2025, compared to $18.8 million for the year ended December 31, 2024. Amortization expense is driven mainly by acquired intangible assets resulting from the acquisitions of GES and NPS in 2018, SAPESCO in 2020, and Action in 2021. Interest expense, net. Interest expense, net, was $32.5 million for the year ended December 31, 2025, compared to $39.9 million for the year ended December 31, 2024. Interest expense, net, decreased period-over-period, due to lower debt levels during the year ended December 31, 2025, as compared to the year ended December 31, 2024. Other (expense) / income, net. Other (expense) / income, net, was ($5.4) million for the year ended December 31, 2025, compared to ($2.3) million for the year ended December 31, 2024. The difference between periods is primarily due to increased equity investment impairments recorded in 2025 as compared to 2024 (see Note 8, Goodwill, Intangible, and Other Assets, to the consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report for further discussion). Income tax expense. Income tax expense was $9.3 million for the year ended December 31, 2025, compared to $19.2 million for the year ended December 31, 2024. The decrease between periods is primarily due to a net release of our provisions for uncertain tax positions and unrecognized tax benefits. See Note 12, Income Taxes, to our consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report. Net income. As a result of the foregoing, net income was $51.1 million for the year ended December 31, 2025, compared to a net income of $76.3 million for the year ended December 31, 2024. 42 Supplemental Segment Operating Income Discussion Year ended December 31, 2025 December 31, 2024 Reportable Segment(1): Production Services $ 100,318 $ 146,869 Drilling and Evaluation Services 69,055 63,102 (1) See Note 19, Reportable Segments, to our consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report. Production Services segment operating income was $100.3 million for the year ended December 31, 2025, compared to $146.9 million for the year ended December 31, 2024. The change in Supplemental Segment Operating Income was primarily due to reduced hydraulic fracturing stages upon contract transition coupled reduced coiled tubing activity in Saudi Arabia. Drilling and Evaluation segment operating income was $69.1 million for the year ended December 31, 2025, compared to $63.1 million for the year ended December 31, 2024. The change in Supplemental Segment Operating Income was primarily due to additional well testing activity due to increased rig assignments and sites in Saudi Arabia. Fiscal Year 2024 compared to Fiscal Year 2023 The following table presents our Consolidated Statements of Operations data for the periods indicated: Year ended Description December 31, 2024 December 31, 2023 Revenues $ 1,301,704 $ 1,145,915 Cost of services (1,093,031 ) (997,265 ) Gross profit 208,673 148,650 Selling, general and administrative expenses (excluding Amortization) (52,195 ) (49,173 ) Amortization (18,774 ) (18,774 ) Operating income 137,704 80,703 Interest expense, net (39,881 ) (45,826 ) Other (expense) / income, net (2,325 ) (5,031 ) Income before income tax 95,498 29,846 Income tax expense (19,188 ) (17,266 ) Net income $ 76,310 $ 12,580 Revenue. Revenue was $1,301.7 million for the year ended December 31, 2024, compared to $1,145.9 million for the year ended December 31, 2023. The table below presents our revenue by segment for the periods indicated: Year ended December 31, 2024 December 31,  2023 Reportable Segment: Production Services $ 878,076 $ 785,642 Drilling and Evaluation Services 423,628 360,273 Total revenue $ 1,301,704 $ 1,145,915 Production Services revenue was $878.1 million for the year ended December 31, 2024, compared to $785.6 million for the year ended December 31, 2023. The change in revenue was primarily due to increased well stimulation and hydraulic fracturing services. Drilling and Evaluation Services revenue was $423.6 million for the year ended December 31, 2024, compared to $360.3 million for the year ended December 31, 2023. The change in revenue was primarily due to increased business activity in Saudi Arabia and Kuwait. 43 Cost of services. Cost of services was $1,093.0 million for the year ended December 31, 2024, compared to $997.3 million for the year ended December 31, 2023. On a percentage basis, cost of services was 84.0% of revenue during the year ended December 31, 2024, as compared to 87.0% of revenue for the year ended December 31, 2023, a 306-basis point reduction. The change in cost of services as percentage of total revenue is mainly due to improved utilization on a more efficient cost structure. Cost of services included depreciation expense of $111.7 million and $109.7 million for the year ended December 31, 2024, and the year ended December 31, 2023, respectively. Gross profit. Gross profit was $208.7 million for the year ended December 31, 2024, compared to $148.7 million for the year ended December 31, 2023. Gross profit as a percentage of total revenue was 16.0% and 13.0% for the year ended December 31, 2024, and the year ended December 31, 2023, respectively. The reason for the change is described under “Revenue” and “Cost of services.” SG&A expenses. SG&A expenses, which represent costs associated with managing and supporting our operations, were $52.2 million for the year ended December 31, 2024, compared to $49.2 million for the year ended December 31, 2023. SG&A as a percentage of total revenue was 4.0% and 4.3% for the year ended December 31, 2024, and the year ended December 31, 2023, respectively. The increase in SG&A period over period is primarily due to increased compensation cost associated with employee contracts issued to certain members of our financial and accounting leadership in the fourth quarter of 2023 that were charged to expense during 2024. Amortization expense. Amortization expense was $18.8 million for the year ended December 31, 2024, compared to $18.8 million for the year ended December 31, 2023. Amortization expense is driven mainly by acquired intangible assets resulting from the acquisitions of GES and NPS in 2018, SAPESCO in 2020, and Action in 2021. Interest expense, net. Interest expense, net, was $39.9 million for the year ended December 31, 2024, compared to $45.8 million for the year ended December 31, 2023. Interest expense, net, decreased period-over-period, due to lower debt levels during 2024 as compared to 2023. Other (expense) / income, net. Other (expense) / income, net, was ($2.3) million for the year ended December 31, 2024, compared to ($5.0) million for the year ended December 31, 2023. The difference between periods is primarily due to a decrease in the amount of the other-than-temporary impairment recorded on the WDVGE Investment during 2024 as compared to 2023 (see Note 8, Goodwill, Intangible, and Other Assets, to the consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report for further discussion). Income tax expense. Income tax expense was $19.2 million for the year ended December 31, 2024, compared to $17.3 million for the year ended December 31, 2023. The high effective tax rates are mainly driven by recording valuation allowances against current year losses and recording liabilities on uncertain tax positions in various jurisdictions. See Note 12, Income Taxes, to our consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report. Net income. As a result of the foregoing, net income was $76.3 million for the year ended December 31, 2024, compared to a net income of $12.6 million for the year ended December 31, 2023. Supplemental Segment Operating Income Discussion Year ended December 31, 2024 December 31, 2023 Reportable Segment(1): Production Services $ 146,869 $ 111,060 Drilling and Evaluation Services 63,102 36,461 (1) See Note 19, Reportable Segments, to our consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report. 44 Production Services segment operating income was $146.9 million for the year ended December 31, 2024, compared to $111.1 million for the year ended December 31, 2023. The change in segment operating income was largely attributable to lower well stimulation and hydraulic fracturing services. Drilling and Evaluation segment operating income was $63.1 million for the year ended December 31, 2024, compared to $36.5 million for the year ended December 31, 2023. The change in segment operating income in 2024 as compared to 2023 was primarily due to increased business activity in Saudi Arabia and Kuwait. LIQUIDITY AND CAPITAL RESOURCES Our objective is to maintain sufficient liquidity, adequate financial resources and financial flexibility to fund our operations. We had cash and cash equivalents of $124.8 million as of December 31, 2025, and $108.0 million as of December 31, 2024. Our outstanding borrowings were $310.1 million as of December 31, 2025, and $382.8 million as of December 31, 2024. Current available borrowing capacity totaled $146.9 million and $167.3 million as of December 31, 2025, and 2024, respectively. We believe that our cash on hand, cash flows generated from operations, and liquidity available through our credit facilities, including recently drawn facilities, will provide sufficient liquidity to manage our cash needs. See “Capital Requirements” below. Cash Flows (In US$ thousands) Year ended December 31, 2025 December 31, 2024 December 31, 2023 Cash provided by (used in): Operating Activities $ 264,242 $ 229,329 $ 176,959 Investing Activities (152,238 ) (111,134 ) (83,463 ) Financing Activities (87,264 ) (78,060 ) (104,528 ) Effect of exchange rate changes on cash - - - Net change in cash, cash equivalents, and restricted cash $ 24,740 $ 40,135 $ (11,032 ) Operating Activities Cash flows provided by operating activities were $264.2 million for the year ended December 31, 2025, compared to cash flows provided by operating activities of $229.3 million for the year ended December 31, 2024. Cash flows from operating activities increased by $34.9 million in the year ended December 31, 2025, compared to year ended December 31, 2024, primarily due to improved working capital management year-over-year, and in particular more closely controlling timing of payments on Accounts payable and accrued expenses in relation to payment terms. Investing Activities Cash flows used in investing activities were $152.2 million for the year ended December 31, 2025, compared to cash flows used in investing activities of $111.1 million for the year ended December 31, 2024. The difference between periods was primarily due to higher capital expenditures in 2025. Our principal recurring investing activity is the funding of capital expenditures to ensure that we have the appropriate levels and types of machinery and equipment in place to generate revenue from operations. Financing Activities Cash flows used in financing activities were $87.3 million for the year ended December 31, 2025, compared to cash flows used in financing activities of $78.1 million for the year ended December 31, 2024. The shift between periods is primarily attributable to timing of short-term borrowings and repayments period-over-period as well as no long-term borrowings during the year ended December 31, 2025, as compared to the year ended December 31, 2024. 45 Credit Facilities As of December 31, 2025, we had the following principal credit facilities and instruments outstanding or available: 2021 Secured Facilities Agreement On November 4, 2021, the Company entered into a $860 million Secured Facilities Agreement (the “2021 Secured Facilities Agreement”). At inception, the $860 million 2021 Secured Facilities Agreement consisted of a $430 million term loan due by November 4, 2027 (the “Term Loan” or “Secured Term Loan”), a $80.0 million revolving credit facility due by November 4, 2025 (“RCF” or “Secured Revolving Credit Facility”), and a $350 million working capital facility that renews annually/bi-annually by mutual agreement of the Lenders and the Company. Deferred debt issuance costs totaling $2.1 million and $3.7 million as of December 31, 2025, and 2024, respectively, have been assigned ratably to the term, revolving and working capital facilities and will be amortized to interest expense over periods of 6, 4, and 1 year(s), respectively. The amounts are shown as contra liabilities in the accompanying Consolidated Balance Sheets. The Secured Revolving Credit Facility was extended from November 4, 2025, to February 4, 2026, by mutual agreement of the Company and its Lenders. The Company is currently in discussions with its Lenders regarding further extending the RCF. Borrowings under the Term Loan and RCF facilities incur interest based on the secured overnight financing rate (“SOFR”) for U.S. dollar-denominated borrowings or the Saudi Arabian Interbank Offered Rate (“SAIBOR”) for Saudi Arabia Riyal borrowings plus 2.6% to 3.0% per annum, varying based on the Company’s Net Debt / EBITDA ratio as defined in the 2021 Secured Facilities Agreement. As of December 31, 2025, and 2024, this resulted in interest rates of 7.13% and 7.67%, respectively, for U.S. dollar-denominated borrowings, and interest rates of 7.61% and 8.18%, respectively, for Saudi Arabian Riyal borrowings. The RCF was obtained for general corporate and working capital purposes including capital expenditure related requirements and acquisitions (including transaction related expenses). The RCF requires the payment of a commitment fee each quarter. The commitment fee is computed at the rate of 25% of the margin on the facility lender’s available commitment for the relevant quarter. Under the terms of the RCF, as extended the final settlement is due by February 4, 2026. The Company is permitted to make any prepayment under this RCF in multiples of $5.0 million during this 4-year, 3-month period up to February 4, 2026. Any unutilized balances from the RCF can be drawn down again during the 4-year tenure at the same terms. The Term Loan permits prepayment but once repaid, amounts may not be redrawn. During the second quarter of 2025, the Company shifted borrowing capacity from the revolving credit facility to the working capital facility, reducing revolving credit facility capacity by $20.8 million to $59.2 million. As of December 31, 2025, and 2024, the Company had drawn $258.0 million and $322.5 million, respectively, of the Term Loan, and $0.0 (zero) million and $0.0 (zero) million, respectively, of the RCF. Additionally, as of December 31, 2025, and 2024, the Company had $59.2 million and $80.0 million, respectively, available to be drawn under the RCF. The 2021 Secured Facilities Agreement also includes a working capital facility of $325 million and $305 million as of December 31, 2025, and 2024, respectively, for issuance of letters of guarantee, letters of credit and refinancing letters of credit into debt over a period of no more than two years, which carries an interest rate equal to SOFR for U.S. dollar-denominated borrowings, or SAIBOR for Saudi Arabia Riyal borrowings, for the applicable interest period, plus a margin of 1.25% to 1.5% per annum. As of December 31, 2025, and 2024, this resulted in interest rates of 7.13% and 7.67%, respectively, for U.S. dollar-denominated borrowings, and interest rates of 7.61% and 8.18%, respectively, for Saudi Arabian Riyal borrowings. The working facility requires the payment of a commitment fee each quarter. The commitment fee is computed at the rate of 0.3125% (25% of the margin) on the facility lender’s available commitment for the relevant quarter. As noted above, during the second quarter of 2025, the Company shifted borrowing capacity from the revolving credit facility to the working capital facility, decreasing the revolving credit facility capacity by $20.0 million. As of December 31, 2025, and 2024, the Company had utilized $243.8 million and $226.6 million, respectively, under this working capital facility and the balance of $81.2 million and $78.4 million, respectively, was available to the Company. The 2021 Secured Facilities Agreement includes covenants that specify maximum leverage (Net Debt / EBITDA) up to 3.50, minimum debt service coverage ratio (Cash Flow / Debt Service) of at least 1.25, and interest coverage (EBITDA / Interest) of at least 4.00. As of December 31, 2025, and 2024, the Company was in compliance with all financial and non-financial covenants under the 2021 Secured Facilities Agreement. 46 Other Working Capital Facilities The Company has also retained other legacy bilateral working capital facilities totaling $10.6 million and $13.3 million at December 31, 2025, and 2024, respectively. As of December 31, 2025, and 2024, the Company had utilized $4.1 million and $5.0 million, respectively, under this working capital facility and the balance of $6.5 million and $8.6 million, respectively, was available to the Company. Utilization of the working capital facilities under both the legacy bilateral working capital facilities and 2021 Secured Facilities Agreement comprises letters of credit issued to vendors, guarantees issued to customers, vendors, and others, and short-term borrowings used to settle letters of credit. Once a letter of credit is presented for payment by the vendor, the Company at its election can settle the letter of credit from available cash or leverage short-term borrowings available under both the legacy HSBC arrangement and 2021 Secured Facilities Agreement that will be repaid quarterly over a period of up to two years. Until a letter of credit is presented for payment by the vendor, it is disclosed as an off-balance sheet obligation. For additional discussion of outstanding letters of credit and guarantees, see Note 13, Commitments and Contingencies, to the consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report. Off-Balance Sheet Arrangements Letters of Credit. The Company had outstanding letters of credit amounting to $6.6 million and $2.3 million as of December 31, 2025, and 2024, respectively. Guarantee Agreements. In the normal course of business with customers, vendors and others, the Company has entered into off-balance sheet arrangements, such as surety bonds for performance, and other bank issued guarantees which totaled $187.1 million and $165.4 million as of December 31, 2025, and 2024, respectively. The Company has also entered into cash margin guarantees totaling $14.9 million and $4.2 million on December 31, 2025, and 2024, respectively. A liability is accrued when a loss is both probable and can be reasonably estimated. None of the off-balance sheet arrangements has, or is likely to have, a material effect on the Company’s consolidated financial statements. Capital Requirements For the foreseeable future, we believe cash on hand, cash flows from operating activities and available credit facilities, including those of our subsidiaries, will provide us with sufficient capital resources and liquidity to manage our working capital needs, meet contractual obligations, fund capital expenditures, and support the development of our short-term operating strategies. We plan to pursue strategic acquisitions as an element of our business strategy. The timing, size or success of any acquisition and the associated potential capital commitments are unpredictable and uncertain. We may seek to fund all or part of any such acquisition with proceeds from debt or equity issuances, or may issue equity directly to the sellers in any such acquisition, or any combination thereof. Our ability to obtain capital for strategic acquisitions will depend on our future operating performance, financial condition and, more broadly, on the availability of equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global financial markets and other factors, many of which are beyond our control. Any additional debt service requirements we take on could be based on higher interest rates and shorter maturities and could impose a significant burden on our results of operations and financial condition, and the issuance of additional equity securities could result in significant dilution to our shareholders. 47 Contractual Obligations and Commitments The table below summarizes the payments due by fiscal year for our material cash requirements from contractual obligations as of December 31, 2025. Certain amounts included in this table are based on our estimates and assumptions about these obligations, including their duration, anticipated actions by third parties and other factors. The contractual cash obligations we will actually pay in future periods may vary from those reflected in the table below because the estimates and assumptions are subjective. Payments Due by Period (In thousands) Total Less than 1 year 1 – 3 years 3 – 5 years More than 5 years Principal payments for long-term debt(1) $ 258,000 64,500 193,500 - - Principal and interest payments for short-term debt (2) 56,159 56,159 - - - Estimated interest payments for long-term debt (3) 29,278 17,250 12,028 - - Operating leases (4) 42,862 3,482 5,369 4,967 29,044 Finance leases (5) 2,080 1,778 186 116 - Seller-provided installment financing for capital expenditures (6) 2,062 2,062 - - - Contractual commitments for capital expenditures (7) 45,591 45,591 - - - Employees’ end of service benefits (8) 66,488 8,027 13,912 13,671 30,878 Total $ 502,520 198,849 224,995 18,754 59,922 (1) Amounts represent the cash payments for the principal amounts related to our long-term debt at December 31, 2025. Amounts for debt do not include any unamortized discounts or deferred issuance costs. Cash payments for interest are excluded from these amounts. (2) Amounts represent the cash payments for the principal amounts and interest related to our short-term debt at December 31, 2025. (3) Amounts represent the cash payments for interest on our long-term debt. (4) Amounts represent the future minimum payments under non-cancelable operating leases with initial or remaining terms of one year or more. We enter into operating leases, some of which include renewal options; however, we have excluded renewal options from the table above unless it is anticipated that we will exercise such renewals. (5) Represents gross future minimum payments under finance leases. We enter into finance leases for property, plant, and equipment when the terms of these leases are advantageous to immediate purchase or where other unique business factors exist. (6) Represents future minimum under agreements to purchase capital assets using seller-provided installment financing. (7) Contractual commitments for capital expenditures include agreements to purchase property, plant, and equipment that are enforceable and legally binding and specify all significant terms. Our performance is secured by letters of credit for $6.6 million of this balance. (8) Amount represents the expected payments of employees’ end of service benefits. Other Factors Affecting Liquidity Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets as well as unsettled political conditions. If our customers delay paying or fail to pay us a significant amount of our outstanding receivables, it could have a material impact on our liquidity, results of operations and financial condition. 48 Shelf registration statement. The Company does not have any effective shelf registration statements as of December 31, 2025. Capital expenditure commitments. The Company was committed to incur capital expenditures of $45.6 million and $33.6 million at December 31, 2025, and 2024, respectively. Substantially all of the commitments outstanding as of December 31, 2025, are expected to be settled during 2026. CRITICAL ACCOUNTING ESTIMATES We have defined a critical accounting estimate as one that is both important to the portrayal of either our financial condition or results of operations and requires us to make difficult, subjective or complex judgments or estimates about matters that are uncertain. We believe that the following are the critical accounting estimates used in the preparation of our consolidated financial statements. There are other items within our consolidated financial statements that require estimation and judgment, but they are not deemed critical as defined above. This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes included in this Annual Report. Goodwill Goodwill is the excess cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill is evaluated for impairment on an annual basis as of October 1, or more frequently if circumstances indicate an impairment may exist at the reporting unit level. When performing the annual impairment test we have the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such a conclusion is reached, we would then be required to perform a quantitative impairment assessment of goodwill. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of each reporting unit with its fair value. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions and typically requires analysis of discounted cash flows and other market information, such as trading multiples, and comparable transactions. Cash flow analysis requires judgment regarding many factors, such as management’s projections of future cash flows, weighted-average cost of capital, and long-term growth rates. Market information requires judgmental selection of relevant market comparables. We assess the valuation methodology based upon the relevance and availability of the data at the time the valuation is performed. Our estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain, and actual results may differ from those assumed in our analysis. The determination of whether goodwill is impaired involves a significant level of judgment in these assumptions, and changes in our forecasts, business strategy, government regulations, or economic or market conditions could significantly impact these judgments, potentially decreasing the fair value of one or more reporting units. Any resulting impairment charges could have a material impact on our results of operations. The Company estimated the aggregate fair value of its two reporting units to be approximately $1.8 billion as of October 1, 2025, the date of its most recent annual goodwill impairment test. As of that same date, the Company’s market capitalization was approximately $1.0 billion, based on a closing share price of $10.39 and 100,777,759 common shares outstanding. Management believes that the Company’s share price as of October 1, 2025, was not representative of the implied fair value of the reporting units, as it does not reflect a control premium or certain non-public information available to management at that time. Subsequent to the valuation date, portions of this non-public information became public through earnings releases, analyst coverage, and investor communications, including the announcement of a major contract award in Saudi Arabia after October 1, 2025. Following these disclosures, the Company’s stock price increased materially during the remainder of 2025. The Company believes that this subsequent market response represents corroborative evidence, rather than hindsight bias, that the estimated fair value appropriately reflected market-participant assumptions as of the impairment testing date. In estimating the applicable control premium, management considered both current and historical industry transactions occurring prior to the valuation date. 49 In further evaluating the valuation of the Company’s goodwill, management performed sensitivity analysis by adjusting key assumptions used in estimating future cash flows. For the October 1, 2025 impairment test date, the Company’s sensitized analysis incorporated the following adjustments: ● a 100 basis point reduction in annual revenue growth rates beginning in 2027 and continuing through the end of the explicit forecast period, resulting in a cumulative reduction of approximately 400 basis points by 2030 relative to the base case; management did not sensitize 2026 due to a higher degree of confidence in achieving the base-case forecast; ● reduced margin assumptions reflecting a 340 to 460 basis point decline relative to the base case over the projection period beginning in 2026; and ● an increase in the weighted average cost of capital from 14.5% to 16.0%. Notwithstanding the downward revisions, the sensitized models continued to indicate that the implied fair value of the reporting units exceeded their carrying values. The results of the base-case and sensitized fair value analyses are presented in the table below (in $000,000s): Excess (deficit) of Implied Fair Value over (under) Carrying Value Production Services Drilling and Evaluation Base case $ 517 $ 277 Sensitized case 156 109 Intangible assets Our intangible assets with finite lives consist of customer contracts, trademarks and trade names primarily acquired in connection with the Business Combinations. The cost of intangible assets with finite lives is amortized over the estimated period of economic benefit, ranging from eight to ten years. Asset lives are adjusted whenever there is a change in the estimated period of economic benefit. No residual value has been assigned to these intangible assets. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. We assess the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of assets involves significant estimates on the part of management. If there is a material change in economic conditions or other circumstances influencing the estimate of future cash flows or fair value, we could be required to recognize impairment charges in the future. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. Income taxes Income tax (expense) / benefit represents the sum of current tax and deferred tax. Interest and penalties relating to income tax are also included in the income tax (expense) / benefit. Income tax is recognized in the statements of operations, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case the related tax is recognized in other comprehensive income or directly in equity. Current tax is based on the taxable profit for the period. Taxable profit differs from net profit as reported in the statements of operations because it is determined in accordance with the rules established by the applicable taxation authorities. It therefore excludes items of income or expense that are taxable or deductible in other periods as well as items that are never taxable or deductible. Our liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is provided, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences except: ● where the deferred tax liability arises on the initial recognition of goodwill; ● where the deferred tax liability arises on the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss; and ● In respect of taxable temporary differences associated with investments in subsidiaries and associates and interests in joint arrangements, where we are able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. 50 Deferred tax assets are recognized for deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss. In respect of deductible temporary differences associated with investments in subsidiaries and associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized. The computation of our income tax (expense) / benefit and liability involves the interpretation of applicable tax laws and regulations in many jurisdictions. The resolution of tax positions taken by us, through negotiations with relevant tax authorities or through litigation, can take several years to complete and in some cases it is difficult to predict the ultimate outcome. Therefore, judgment is required to determine provisions for income taxes. In addition, we have carry-forward tax losses and tax credits in certain taxing jurisdictions that are available to offset against future taxable profit. However, deferred tax assets are recognized only to the extent that it is probable that taxable profit will be available against which the unused tax losses or tax credits can be utilized. Management judgment is exercised in assessing whether this is the case and estimates are required to be made of the amount of future taxable profits that will be available. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Please refer to Note 3, Summary of Significant Accounting Policies, to the consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report, for a discussion of recent accounting pronouncements and their anticipated impact. RELATED PARTY TRANSACTIONS See Note 18, Related Party Transactions, to the consolidated financial statements included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report. FORWARD-LOOKING STATEMENTS This Annual Report contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Any and all statements contained in this Annual Report that are not statements of historical fact may be deemed forward-looking statements. Terms such as “may,” “might,” “would,” “should,” “could,” “project,” “estimate,” “predict,” “potential,” “strategy,” “anticipate,” “attempt,” “develop,” “plan,” “help,” “believe,” “continue,” “intend,” “expect,” “future,” and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this Annual Report may include, without limitation, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, our future financial performance, including any such statement contained in a discussion and analysis of financial condition by management or in the results of operations included pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), expansion plans and opportunities, completion and integration of acquisitions and the assumptions underlying or relating to any such statement. 51 The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon our current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which we have no control over, including the impact of the extent of any material weakness or significant deficiencies in our internal control over financial reporting. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: ● Changing commodity prices, market volatility and other market trends that affect our customers’ demand for our services; ● Public health crises and other catastrophic events; ● The level of capital spending by our customers; ● Political, market, financial and regulatory risks, including those related to the geographic concentration of our operations and customers; ● Our operations, including maintenance, upgrades and refurbishment of our assets, may require significant capital expenditures, which may or may not be available to us; ● Operating hazards inherent in our industry and the ability to secure sufficient indemnities and insurance; ● Our ability to successfully integrate acquisitions; ● Competition, including capital and technological advances; and ● Other risks and uncertainties set forth in Item 1A, “Risk Factors,” included in this Annual Report. Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. We disclaim any obligation to update the forward-looking statements contained in this Annual Report to reflect any new information or future events or circumstances or otherwise, except as required by law. Readers should read this Annual Report in conjunction with the discussion under Item 1A, “Risk Factors,” included in this Annual Report, our consolidated financial statements and the related notes thereto included in this Annual Report, other documents which we may furnish from time to time with the SEC, and other announcements we may make from time to time.