5. IMPAIRMENTS

Long-lived Assets Impairment

In the fourth quarter of 2025 long-lived assets held and used at a sand mine located in Merryville, Louisiana, with a total carrying value of $44.6 million were written down to their fair value of $3.2 million, resulting in an impairment charge of $41.4 million in our Proppant Production segment. This sand mine was idled in April 2024 and we have been monitoring market conditions for the mine’s service area since then. In the fourth quarter of 2025, we noted that our forecasts did not include activating the mine for at least the next 12 months based on projected sand demand in the region.

BPC Goodwill Impairment

In our annual goodwill impairment test for BPC in the fourth quarter of 2025, we noted a decrease in BPC’s actual results compared with forecasted results from previous periods. We also noted a decrease in BPC’s current forecast compared to previous periods. As a result, we performed a quantitative goodwill impairment test. Based upon the results of our quantitative impairment test, we concluded that the carrying value of BPC exceeded its estimated fair value. This resulted in a goodwill impairment charge of $11.2 million for the fourth quarter of 2025, which represented all of the goodwill recorded on the BPC reporting unit.

In performing the quantitative impairment test, we determined the fair value of BPC using a combination of the income approach and the market approach. Under the income approach, the fair value for this reporting unit was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. Due to the inherent uncertainties involved in making estimates and assumptions, actual results and discount rates may differ from those assumed in our forecasts.

Haynesville Proppant Goodwill Impairment

In the second quarter of 2024, the reduced operating results of our Haynesville Proppant reporting unit resulted in a triggering event and, accordingly, we performed an interim quantitative impairment test. Based upon the results of our interim quantitative impairment test, we concluded that the carrying value of the Haynesville Proppant reporting unit exceeded its estimated fair value, which resulted in a goodwill impairment charge of $67.7 million for the second quarter of 2024, which represented all of the goodwill recorded on the Haynesville Proppant reporting unit.

In performing the interim quantitative impairment test, we determined the fair value of our Haynesville Proppant reporting unit using a combination of the income approach and the market approach. Under the income approach, the fair value for this reporting unit was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. Due to the inherent uncertainties involved in making estimates and assumptions, actual results and discount rates may differ from those assumed in our forecasts.

Permian Proppant and Eagle Ford Proppant Goodwill Impairments

In the third quarter of 2024, the reduced operating results for our Permian Proppant reporting unit and our Eagle Ford Proppant reporting unit resulted in a triggering event and, accordingly, we performed interim quantitative impairment tests. Based upon the results of our interim quantitative impairment tests, we concluded that the carrying values of the Permian Proppant and Eagle Ford Proppant reporting units exceeded their estimated fair values, which resulted in goodwill impairment charges of $2.4 million and $4.4 million, respectively, for the third quarter of 2024, which represented all of the goodwill recorded on these reporting units.

In performing the interim quantitative impairment tests, we determined the fair value of our Permian Proppant and Eagle Ford Proppant reporting units using a combination of the income approach and the market approach. Under the income approach, the fair values for these reporting units were determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. Due to the inherent uncertainties involved in making estimates and assumptions, actual results and discount rates may differ from those assumed in our forecasts.