Quarterly report [Sections 13 or 15(d)]

Reportable Segments

v3.25.2
Reportable Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
The Company’s Chief Operating Officer, Chief Financial Officer and Chief Business Officer comprise the Company’s chief operating decision makers (“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 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, exclusive of stock based compensation.

The Company principally provides products and services to our customers primarily in the oil and natural gas and utility infrastructure industries. At June 30, 2025, the Company had five reportable segments, which includes rental services (“Rentals”), infrastructure services (“Infrastructure”), natural sand proppant services (“Sand”), accommodation services (“Accommodations”) and drilling services (“Drilling”). The Rentals segment provides construction, oilfield and aviation rentals to operators in the northeast and midwest regions of the United States as well as Hawaii. The Infrastructure segment provides engineering, design and fiber optic services to utility customers in the midwest and western regions 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 June 30, 2025. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):

Three Months Ended June 30, 2025 Rentals Infrastructure Sand Accommodations Drilling Total
Revenue from external and related party customers $ 3,078  $ 5,445  $ 5,376  $ 1,767  $ 743  $ 16,409 
Intersegment revenue 28  —  —  —  —  28 
3,106  5,445  5,376  1,767  743  16,437 
Reconciliation of Revenue
Eliminations(a)
(28)
Total consolidated revenue $ 16,409 
Less segment expenses:
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 1,567  4,297  5,262  1,242  758 
Selling, general and administrative, exclusive of stock based compensation 1,055  950  1,333  364  187 
Segment Adjusted EBITDA $ 484  $ 198  $ (1,219) $ 161  $ (202) $ (578)
Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)
2,197 
Depreciation, depletion, amortization and accretion 2,832 
Gains on disposal of assets, net (1,077)
Impairment of long-lived assets 31,669 
Stock based compensation 200 
Interest (income) expense and financing charges, net (400)
Other expense, net 628 
Loss from continuing operations before income taxes $ (36,627)
Three Months Ended June 30, 2024 Rentals Infrastructure Sand Accommodations Drilling Total
Revenue from external and related party customers $ 1,666  $ 4,542  $ 4,720  $ 2,671  $ 736  $ 14,335 
Intersegment revenue 134  —  —  —  —  134 
1,800  4,542  4,720  2,671  736  14,469 
Reconciliation of Revenue
Other(b)
1,686 
Eliminations(a)
(135)
Total consolidated revenue $ 16,020 
Less segment expenses:
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 1,211  3,794  4,590  1,480  1,042 
Selling, general and administrative, exclusive of stock based compensation 278  870  1,261  377  228 
Segment Adjusted EBITDA $ 311  $ (122) $ (1,131) $ 814  $ (534) $ (662)
Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)
92,734 
Depreciation, depletion, amortization and accretion 2,908 
Gains on disposal of assets, net (512)
Stock based compensation 195 
Interest (income) expense and financing charges, net 1,025 
Other expense, net 73,668 
Loss from continuing operations before income taxes $ (170,680)
Six Months Ended June 30, 2025 Rentals Infrastructure Sand Accommodations Drilling Total
Revenue from external and related party customers $ 4,994  $ 10,120  $ 12,115  $ 3,847  $ 925  $ 32,001 
Intersegment revenue 38  —  —  —  —  38 
5,032  10,120  12,115  3,847  925  32,039 
Reconciliation of Revenue
Eliminations(a)
(38)
Total consolidated revenue $ 32,001 
Less segment expenses:
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 2,984  8,103  10,738  2,673  1,154 
Selling, general and administrative, exclusive of stock based compensation 1,366  1,744  2,612  693  386 
Segment Adjusted EBITDA $ 682  $ 273  $ (1,235) $ 481  $ (615) $ (414)
Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)
4,049 
Depreciation, depletion, amortization and accretion 4,923 
Gains on disposal of assets, net (4,549)
Impairment of long-lived assets 31,669 
Stock based compensation 412 
Interest (income) expense and financing charges, net (512)
Other expense, net 961 
Loss from continuing operations before income taxes $ (37,367)
Six Months Ended June 30, 2024 Rentals Infrastructure Sand Accommodations Drilling Total
Revenue from external and related party customers $ 3,447  $ 9,606  $ 9,027  $ 5,620  $ 1,247  $ 28,947 
Intersegment revenue 243  —  —  —  —  243 
3,690  9,606  9,027  5,620  1,247  29,190 
Reconciliation of Revenue
Other(b)
2,430 
Eliminations(a)
(254)
Total consolidated revenue $ 31,366 
Less segment expenses:
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion, inclusive of related parties 2,577  7,720  10,320  3,259  1,987 
Selling, general and administrative, exclusive of stock based compensation 657  1,900  2,608  880  494 
Segment Adjusted EBITDA $ 456  $ (14) $ (3,901) $ 1,481  $ (1,234) $ (3,212)
Reconciliation of total segment Adjusted EBITDA
Less:
Other(b)
96,479 
Depreciation, depletion, amortization and accretion 6,194 
Gains on disposal of assets, net (1,446)
Stock based compensation 391 
Interest (income) expense and financing charges, net 7,647 
Other expense (income), net 63,516 
Adjusted EBITDA $ (175,993)
(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 June 30, 2025:
Total assets for reportable segments $ 35,582  $ 7,377  $ 75,036  $ 12,763  $ 2,378  $ 133,136 
Other assets(a)
209,549 
Total consolidated assets, excluding discontinued operations $ 342,685 
As of December 31, 2024:
Total assets for reportable segments $ 8,451  $ 6,010  $ 118,855  $ 12,811  $ 1,870  $ 147,997 
Other assets(a)
130,307 
Total consolidated assets, excluding discontinued operations $ 278,304 
(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 and restricted cash.
Following is a breakout of purchases of property, plant and equipment for the periods indicated (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
2025 2024 2025 2024
Rentals $ 26,821  $ 123  $ 26,940  $ 223 
Infrastructure —  266  101  291 
Sand —  —  93  — 
Accommodations 58  43  75  80 
Drilling 19  85  116  85 
Total segment purchases of property, plant and equipment 26,898  517  27,325  679 
Other(a)
—  217  —  227 
Total consolidated purchases of property, plant and equipment, excluding discontinued operations $ 26,898  $ 734  $ 27,325  $ 906 
(a) Includes purchases related to non-operating legacy services that are no longer active.