XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.26.1

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 9 Months Ended
--- | ---
Jun. 30, 2026
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION |
NOTE 12 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
Description of the Business We are a performance-driven drilling solutions and technologies company based in Tulsa, Oklahoma with operations in all major U.S. onshore oil and gas producing basins as well as the Middle East, Europe, Latin America, and Australia. Our drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. We believe we are the recognized industry leader in drilling as well as technological innovation. We focus on offering our customers an integrated solutions-based approach by combining proprietary rig technology, automation software, and digital expertise into our rig operations rather than a product-based offering, such as a rig or separate technology package. Our drilling services operations are organized into the following reportable operating business segments: North America Solutions, International Solutions, and Offshore Solutions. Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. External revenues included in “Other” primarily consist of rental, manufacturing and engineering services income. Segment Performance In March 2026, we named a new Chief Executive Officer, Raymond John Adams III, who now serves as our chief operating decision maker ("CODM"). Our CODM evaluates segment performance and allocates resources based on segment operating income (loss) before income taxes. Components within segment operating income (loss), such as operating revenues and direct operating expenses, are used to monitor actual performance against forecasted results for each segment. Segment operating income (loss) before income taxes includes: •Revenues from external and internal customers •Direct operating costs •Depreciation and amortization •Research and development •Allocated general and administrative expenses ▪Acquisition transaction and integration costs •Asset impairment charges •Restructuring charges but excludes gain on involuntary conversion, gain on reimbursement of drilling equipment, other gain (loss) on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods may be used which we believe to be a reasonable reflection of the utilization of services provided. Summarized financial information of our reportable segments for the three and nine months ended June 30, 2026 and 2025 is shown in the following tables:
| Three Months Ended June 30, 2026
(in thousands) | North America Solutions |  | International Solutions |  | Offshore Solutions |  | Total
Revenues from external customers | $ | 562,565 |  |  | $ | 249,907 |  |  | $ | 174,409 |  |  | $ | 986,881 |
Intersegment revenues | 337 |  |  | 210 |  |  | — |  |  | 547 |
Total revenues | 562,902 |  |  | 250,117 |  |  | 174,409 |  |  | 987,428 |
Reconciliation of revenues: |  |  |  |  |  |  |
All other revenues |  |  |  |  |  |  | 69,765 |
Elimination of intersegment revenues |  |  |  |  |  |  | (22,337) |
Total consolidated revenues |  |  |  |  |  |  | 1,034,856 |
Less 1: |  |  |  |  |  |  |
Direct operating expenses | 321,686 |  |  | 219,064 |  |  | 145,191 |  |  | 685,941 |
Depreciation & amortization | 83,214 |  |  | 74,547 |  |  | 11,023 |  |  | 168,784 |
Research and development | 6,015 |  |  | — |  |  | — |  |  | 6,015 |
Selling, general and administrative costs | 11,282 |  |  | 9,097 |  |  | 1,337 |  |  | 21,716 |
Acquisition transaction and integration costs | — |  |  | 186 |  |  | — |  |  | 186 |
Asset impairment charge | — |  |  | 1,153 |  |  | — |  |  | 1,153 |
Restructuring charges | 393 |  |  | 498 |  |  | 58 |  |  | 949 |
Segment operating income (loss) | 140,312 |  |  | (54,428) |  |  | 16,800 |  |  | 102,684 |
Reconciliation of segment operating income (loss): |  |  |  |  |  |  |
All other operating income |  |  |  |  |  |  | 1,344 |
Elimination of intersegment income |  |  |  |  |  |  | 1,528 |
Segment operating income |  |  |  |  |  |  | 105,556 |
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
| Nine Months Ended June 30, 2026
(in thousands) | North America Solutions |  | International Solutions |  | Offshore Solutions |  | Total
Revenues from external customers | $ | 1,643,150 |  |  | $ | 697,222 |  |  | $ | 534,069 |  |  | $ | 2,874,441 |
Intersegment revenues | 935 |  |  | 5,504 |  |  | — |  |  | 6,439 |
Total revenues | 1,644,085 |  |  | 702,726 |  |  | 534,069 |  |  | 2,880,880 |
Reconciliation of revenues: |  |  |  |  |  |  |
All other revenues |  |  |  |  |  |  | 176,278 |
Elimination of intersegment revenues |  |  |  |  |  |  | (72,914) |
Total consolidated revenues |  |  |  |  |  |  | 2,984,244 |
Less 1: |  |  |  |  |  |  |
Direct operating expenses | 948,857 |  |  | 631,463 |  |  | 446,966 |  |  | 2,027,286 |
Depreciation & amortization | 250,413 |  |  | 231,925 |  |  | 31,705 |  |  | 514,043 |
Research and development | 19,538 |  |  | — |  |  | — |  |  | 19,538 |
Selling, general and administrative costs | 38,705 |  |  | 17,491 |  |  | 5,035 |  |  | 61,231 |
Acquisition transaction and integration costs | — |  |  | 1,820 |  |  | 925 |  |  | 2,745 |
Asset impairment charge | 97,922 |  |  | 27,254 |  |  | 2,128 |  |  | 127,304 |
Restructuring charges | 795 |  |  | 2,118 |  |  | 58 |  |  | 2,971 |
Segment operating income (loss) | 287,855 |  |  | (209,345) |  |  | 47,252 |  |  | 125,762 |
Reconciliation of segment operating income (loss): |  |  |  |  |  |  |
All other operating loss |  |  |  |  |  |  | (7,276) |
Elimination of intersegment loss |  |  |  |  |  |  | (1,774) |
Segment operating income |  |  |  |  |  |  | 116,712 |
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
| Three Months Ended June 30, 2025
(in thousands) | North America Solutions |  | International Solutions |  | Offshore Solutions |  | Total
Revenues from external customers | $ | 591,976 |  |  | $ | 265,099 |  |  | $ | 161,777 |  |  | $ | 1,018,852 |
Intersegment revenues | 238 |  |  | 704 |  |  | — |  |  | 942 |
Total revenues | 592,214 |  |  | 265,803 |  |  | 161,777 |  |  | 1,019,794 |
Reconciliation of revenues: |  |  |  |  |  |  |
All other revenues |  |  |  |  |  |  | 42,898 |
Elimination of intersegment revenues |  |  |  |  |  |  | (21,768) |
Total consolidated revenues |  |  |  |  |  |  | 1,040,924 |
Less 1: |  |  |  |  |  |  |
Direct operating expenses | 326,042 |  |  | 231,695 |  |  | 139,004 |  |  | 696,741 |
Depreciation & amortization | 88,078 |  |  | 66,734 |  |  | 12,681 |  |  | 167,493 |
Research and development | 7,617 |  |  | — |  |  | — |  |  | 7,617 |
Selling, general and administrative costs | 10,972 |  |  | 5,014 |  |  | 1,294 |  |  | 17,280 |
Acquisition transaction and integration costs | 7 |  |  | 141 |  |  | — |  |  | 148 |
Asset impairment charge | — |  |  | 128,352 |  |  | — |  |  | 128,352 |
Restructuring charges | 1,849 |  |  | 380 |  |  | 29 |  |  | 2,258 |
Segment operating income (loss) | 157,649 |  |  | (166,513) |  |  | 8,769 |  |  | (95) |
Reconciliation of segment operating income (loss): |  |  |  |  |  |  |
All other operating loss |  |  |  |  |  |  | (70,004) |
Elimination of intersegment income |  |  |  |  |  |  | 6,114 |
Segment operating loss |  |  |  |  |  |  | (63,985) |
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
| Nine Months Ended June 30, 2025
(in thousands) | North America Solutions |  | International Solutions |  | Offshore Solutions |  | Total
Revenues from external customers | $ | 1,789,350 |  |  | $ | 560,319 |  |  | $ | 340,067 |  |  | $ | 2,689,736 |
Intersegment revenues | 703 |  |  | 873 |  |  | — |  |  | 1,576 |
Total revenues | 1,790,053 |  |  | 561,192 |  |  | 340,067 |  |  | 2,691,312 |
Reconciliation of revenues: |  |  |  |  |  |  |
All other revenues |  |  |  |  |  |  | 107,704 |
Elimination of intersegment revenues |  |  |  |  |  |  | (64,751) |
Total consolidated revenues |  |  |  |  |  |  | 2,734,265 |
Less 1: |  |  |  |  |  |  |
Direct operating expenses | 992,462 |  |  | 507,106 |  |  | 284,569 |  |  | 1,784,137 |
Depreciation & amortization | 263,565 |  |  | 128,715 |  |  | 22,438 |  |  | 414,718 |
Research and development | 26,560 |  |  | — |  |  | — |  |  | 26,560 |
Selling, general and administrative costs | 42,266 |  |  | 12,268 |  |  | 3,322 |  |  | 57,856 |
Acquisition transaction and integration costs | 41 |  |  | 351 |  |  | 60 |  |  | 452 |
Asset impairment charge | 1,507 |  |  | 128,352 |  |  | — |  |  | 129,859 |
Restructuring charges | 1,849 |  |  | 380 |  |  | 29 |  |  | 2,258 |
Segment operating income (loss) | 461,803 |  |  | (215,980) |  |  | 29,649 |  |  | 275,472 |
Reconciliation of segment operating income (loss): |  |  |  |  |  |  |
All other operating loss |  |  |  |  |  |  | (70,605) |
Elimination of intersegment loss |  |  |  |  |  |  | (2,247) |
Segment operating income |  |  |  |  |  |  | 202,620 |
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. The following table reconciles segment operating income per the tables above to income (loss) before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations:
| Three Months Ended June 30, |  | Nine Months Ended June 30,
(in thousands) | 2026 |  | 2025 |  | 2026 |  | 2025
Segment operating income (loss) | $ | 105,556 |  |  | $ | (63,985) |  |  | $ | 116,712 |  |  | $ | 202,620 |
Gain on involuntary conversion | 13,581 |  |  | — |  |  | 13,581 |  |  | — |
Gain on reimbursement of drilling equipment | 6,036 |  |  | 6,773 |  |  | 18,099 |  |  | 26,149 |
Other gain (loss) on sale of assets | 120,044 |  |  | (1,347) |  |  | 119,423 |  |  | (2,136) |
Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges | (57,006) |  |  | (69,710) |  |  | (176,435) |  |  | (221,853) |
Operating income (loss) | 188,211 |  |  | (128,269) |  |  | 91,380 |  |  | 4,780 |
Other income (expense) |  |  |  |  |  |  |
Interest and dividend income | 2,280 |  |  | 2,856 |  |  | 7,193 |  |  | 31,854 |
Interest expense | (24,439) |  |  | (29,200) |  |  | (75,860) |  |  | (79,836) |
Gain (loss) on investment securities | (16,007) |  |  | (337) |  |  | (687) |  |  | 14,084 |
Foreign currency exchange gain (loss) | 1,885 |  |  | (9,216) |  |  | 4,864 |  |  | (16,137) |
Other | (1,411) |  |  | 31,258 |  |  | (6,664) |  |  | 33,214 |
Total other income (expense) | (37,692) |  |  | (4,639) |  |  | (71,154) |  |  | (16,821) |
Income (loss) before income taxes | $ | 150,519 |  |  | $ | (132,908) |  |  | $ | 20,226 |  |  | $ | (12,041) |
The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets:
(in thousands) | June 30, 2026 |  | September 30, 2025
Total assets 1 |  |  |
North America Solutions | $ | 2,751,463 |  |  | $ | 2,957,139 |
International Solutions | 2,313,972 |  |  | 2,426,613 |
Offshore Solutions | 690,754 |  |  | 714,708 |
Other | 307,406 |  |  | 360,037 |
| 6,063,595 |  |  | 6,458,497 |
Investments and corporate operations | 223,179 |  |  | 247,241 |
| $ | 6,286,774 |  |  | $ | 6,705,738 |
(1)Assets by segment exclude investments in subsidiaries and intersegment activity. The following table presents revenues from external customers by country based on the location of service provided:
| Three Months Ended June 30, |  | Nine months ended June 30,
(in thousands) | 2026 |  | 2025 |  | 2026 |  | 2025
Operating revenues |  |  |  |  |  |  |
United States | $ | 592,664 |  |  | $ | 659,364 |  |  | $ | 1,738,869 |  |  | $ | 1,876,295 |
Norway | 90,058 |  |  | 82,854 |  |  | 264,771 |  |  | 161,159 |
Saudi Arabia | 74,258 |  |  | 103,752 |  |  | 206,140 |  |  | 201,673 |
Oman | 65,611 |  |  | 45,089 |  |  | 196,475 |  |  | 114,709 |
Azerbaijan | 44,758 |  |  | 38,922 |  |  | 143,390 |  |  | 81,681 |
Argentina | 50,240 |  |  | 39,634 |  |  | 121,767 |  |  | 119,245 |
Other foreign | 117,267 |  |  | 71,309 |  |  | 312,832 |  |  | 179,503 |
Total | $ | 1,034,856 |  |  | $ | 1,040,924 |  |  | $ | 2,984,244 |  |  | $ | 2,734,265 |
The following table presents property, plant and equipment by country based on the location of service provided:
(in thousands) | June 30, 2026 |  | September 30, 2025
Property, plant and equipment, net |  |  |
United States | $ | 2,240,325 |  |  | $ | 2,503,045 |
Saudi Arabia | 895,012 |  |  | 971,440 |
Oman | 389,332 |  |  | 445,706 |
Other Foreign | 340,663 |  |  | 392,883 |
Total | $ | 3,865,332 |  |  | $ | 4,313,074 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for segment reporting. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 15: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 17: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 18: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 19: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 20: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 21: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 22: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration