Leases

12 Months Ended

Dec. 31, 2024

ASC Topic 842 Leases

We have operating and finance leases primarily for office locations, including for both field locations and corporate offices, certain operating equipment, and light duty vehicles. The terms and conditions for these leases vary by the type of underlying asset.

During the third quarter of 2023, we acquired $7.5 million and $19.1 million of operating leases for operating locations, corporate offices, certain operating equipment and light duty vehicles primarily related to the Ulterra acquisition and NexTier merger, respectively.

We also acquired $5.2 million and $50.7 million of finance leases for light duty vehicles and certain operating equipment related to the Ulterra acquisition and NexTier merger, respectively.

Operating leases have remaining lease terms of approximately one month to ten years as of December 31, 2024, and finance leases have remaining lease terms of approximately one month to six years as of December 31, 2024.

Lease expense consisted of the following for the years ended December 31, 2024, 2023 and 2022 (in thousands):


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	18,147	$	10,073	$	5,664
Finance lease cost:
Amortization of right-of-use assets	21,394		6,360		—
Interest on lease liabilities	2,255		1,395		—
Total finance lease cost	23,649		7,755		—
Short-term lease expense (1)	360		2,278		—
Total lease expense (2)	$	42,156	$	20,106	$	5,664

(1)Short-term lease expense represents expense related to leases with a contract term of one year or less.

(2)Operating lease expense is recorded in operating costs for the respective segments and within “selling, general and administrative”, amortization of right-of-use assets is recorded within “depreciation, depletion, amortization and impairment”, and interest on lease liabilities is recorded within “interest expense” in our consolidated statements of operations.

Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,838	$	8,935	$	6,858
Operating cash flows from finance leases	2,220		1,380		—
Financing cash flows from finance leases	45,484		15,915		—

Right of use assets obtained in exchange for lease obligations:
Operating leases (1)	$	12,541	$	34,802	$	6,530
Finance leases (1)	21,234		73,245		—

(1)Includes right of use assets acquired in business combinations in 2023.

Lease terms and discount rates related to leases as of December 31, 2024 and 2023 is as follows:


	2024		2023
Weighted Average Remaining Lease Term:
Operating leases	4.8 years		5.0 years
Finance leases	2.3 years		1.5 years

Weighted Average Discount Rate:
Operating leases	6.5	%	6.1	%
Finance leases	7.4	%	7.3	%

Maturities of operating and finance lease liabilities as of December 31, 2024 are as follows (in thousands):


Year ending December 31,	Operating		Finance
2025	$	15,791	$	16,664
2026	11,692		6,264
2027	8,238		1,490
2028	6,700		1,485
2029	5,904		1,485
Thereafter	6,944		595
Total lease payments	55,269		27,983
Less imputed interest	(7,642)		(2,553)
Total	$	47,627	$	25,430