
Cautionary Note Regarding Forward-Looking Statements This section details various forward-looking statements and the risks that could cause actual results to differ from expectations Forward-Looking Statements This section outlines forward-looking statements and risks, such as divestitures, commodity price volatility, and the PREPA settlement, that could cause actual results to differ - Key factors that could affect actual results include the impact of recent divestitures of subsidiaries like 5 Star Electric and hydraulic fracturing equipment10 - The company identifies volatility in oil and natural gas prices, actions by OPEC+, and general economic conditions as significant risks10 - Potential delays or failure to receive the remaining payment under the settlement agreement with the Puerto Rico Electric Power Authority (PREPA) is noted as a forward-looking risk10 PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2025, including balance sheets, statements of operations, changes in equity, cash flows, and comprehensive notes Condensed Consolidated Balance Sheets The balance sheet as of June 30, 2025, shows total assets of $364.2 million, a decrease from $384.0 million at year-end 2024, primarily due to divestitures. Cash increased to $127.3 million from $60.8 million, while total liabilities decreased and total equity increased Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $127.3 | $60.8 | | Total current assets | $240.1 | $188.6 | | Total assets | $364.2 | $384.0 | | Liabilities & Equity | | | | Total current liabilities | $96.1 | $114.5 | | Total liabilities | $102.2 | $131.2 | | Total equity | $262.0 | $252.8 | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) For Q2 2025, the company reported a net income of $8.8 million, a significant improvement from a $156.0 million net loss in Q2 2024, driven by income from discontinued operations and absence of prior-year PREPA charges Q2 Statement of Operations Highlights (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $16.4 | $16.0 | | Operating Loss | $(36.4) | $(96.0) | | Net Loss from Continuing Operations | $(35.7) | $(155.6) | | Net Income (Loss) from Discontinued Operations | $44.5 | $(0.4) | | Net Income (Loss) | $8.8 | $(156.0) | | Net Income (Loss) per Share | $0.18 | $(3.25) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash provided by investing activities was $88.9 million, driven by $111.2 million from discontinued operations, resulting in a net cash increase of $75.1 million Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(9.8) | $40.5 | | Net cash provided by (used in) investing activities | $88.9 | $(4.5) | | Net cash used in financing activities | $(4.1) | $(50.0) | | Net increase (decrease) in cash | $75.1 | $(14.0) | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail accounting policies and financial results, including strategic divestitures, a $31.7 million impairment on sand proppant assets, full repayment of the term credit facility, and updates on the PREPA settlement - On April 11, 2025, the company sold a portion of its infrastructure services entities for $108.7 million. On June 16, 2025, it sold all equipment from its hydraulic fracturing services for $15.0 million. These are reported as discontinued operations30 - The company recognized a $31.7 million impairment expense on natural sand proppant assets at its Piranha and Muskie processing plants, which were reclassified as held for sale in Q2 20255277 - As of June 30, 2025, PREPA owes Cobra $20.0 million under the settlement agreement, payable after PREPA's bankruptcy plan becomes effective42131 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's strategic shift post-divestitures, reporting a Q2 2025 net income of $8.8 million (vs. $156.0 million loss in Q2 2024) driven by discontinued operations and improved liquidity - The company completed the sale of its distribution, transmission, and substation operations for $108.7 million and its hydraulic fracturing equipment for $15.0 million, shifting its strategic focus157 Q2 2025 Financial Overview | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $16.4 million | $16.0 million | | Net Income (Loss) | $8.8 million | $(156.0) million | | Net Income (Loss) per Share | $0.18 | $(3.25) | | Adjusted EBITDA | $(2.8) million | $(164.6) million | - For the second half of 2025, management expects to generate an adjusted EBITDA loss from continuing operations of $3.0 million to $4.0 million165 Results of Operations Q2 2025 revenue increased 2% year-over-year to $16.4 million, driven by growth in Rental, Infrastructure, and Sand services, while operating loss decreased to $36.4 million from $96.0 million due to the absence of prior-year PREPA charges Q2 Revenue by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Rental services | $3.1 | $1.8 | +72% | | Infrastructure services | $5.4 | $4.5 | +20% | | Natural sand proppant services | $5.4 | $4.7 | +15% | | Accommodation services | $1.8 | $2.7 | -33% | - The company recognized a $31.7 million impairment expense on assets related to its natural sand proppant operations during Q2 2025183 - Selling, general and administrative (SG&A) expenses decreased to $5.3 million in Q2 2025 from $95.3 million in Q2 2024, primarily due to an $89.2 million charge related to the PREPA settlement in the prior-year period180 Liquidity and Capital Resources The company's liquidity significantly strengthened, with cash increasing to $127.3 million at June 30, 2025, and an undrawn revolving credit facility, while capital expenditures for 2025 are estimated at $42.0 million Liquidity Summary (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $127.3 | $60.8 | | Revolving credit facility borrowing base | $75.0 | $25.2 | - Capital expenditures for continuing operations totaled $27.3 million for the first six months of 2025, with a full-year estimate of approximately $42.0 million247 - The term credit facility with Wexford was fully paid off and terminated on October 2, 2024239 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company identifies its primary market risks as being tied to the volatility of the U.S. oil and natural gas and utility infrastructure industries, including interest rate, foreign currency, and customer credit risks - The company is exposed to interest rate risk through its revolving credit facility, which has a variable interest rate253 - Foreign currency risk exists due to the accommodation services segment generating revenue and incurring expenses in Canadian dollars. As of June 30, 2025, the company held $2.8 million in Canadian dollars254 - Significant customer credit risk is highlighted, specifically the $20.0 million receivable due from PREPA, which is in bankruptcy proceedings256 Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Operating Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025261 - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls262 PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is involved in various legal proceedings and refers to Note 18 for detailed disclosures, expecting no material adverse effect beyond what is disclosed - For detailed information on legal proceedings, the report refers to Note 18 of the unaudited condensed consolidated financial statements264 Item 1A. Risk Factors The company's operations remain subject to risk factors previously disclosed in its Annual Report on Form 10-K, with no new or materially changed risks presented - The company's risk factors have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024265 Item 4. Mine Safety Disclosures The company's operations are subject to the Federal Mine Safety and Health Act of 1977, with required safety violation information included in Exhibit 95.1 - Information regarding mine safety violations required by Section 1503(a) of the Dodd-Frank Act is included in Exhibit 95.1 to this Form 10-Q268 Item 6. Exhibits This section lists all exhibits filed with the 10-Q report, including purchase agreements for divestitures, credit agreement amendments, and officer certifications - Key exhibits filed include the Equity Interest Purchase Agreement for the T&D Transaction (Exhibit 10.3) and the Equipment Purchase Agreement for the Pressure Pumping Transaction (Exhibit 10.4)273 - Certifications by the Chief Operating Officer and Chief Financial Officer pursuant to Sarbanes-Oxley Sections 302 and 906 are included as Exhibits 31.1, 31.2, 32.1, and 32.2273