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Note 6 - Revenue
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

6.

Revenue

 

Disaggregation of revenue

 

We disaggregate our revenue from contracts with customers by geography, as disclosed in Note 5 “Business segment reporting,” as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Additionally, we disaggregate our revenue into main areas of capabilities.

 

The following table sets forth the total amount of revenue by main area of capabilities as follows (in thousands):

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2023

  

2022

  

2023

  

2022

 

Well construction

 $143,719  $121,794  $271,984  $233,229 

Well management

  253,198   191,830   464,212   360,872 

Total

 $396,917  $313,624  $736,196  $594,101 

 

Contract balances

 

We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of unbilled receivables and deferred revenue.

 

Unbilled receivables are initially recognized for revenue earned on completion of the performance obligation which are not yet invoiced to the customer. The amounts recognized as unbilled receivables are reclassified to trade receivable upon billing. Deferred revenue represents the Company’s obligations to transfer goods or services to customers for which the Company has received consideration, in full or part, from the customer.

 

Contract balances consisted of the following as of June 30, 2023, and December 31, 2022 (in thousands):

 

   

June 30,

    

December 31,

  
   

2023

    

2022

  

Trade receivable, net

   $ 307,005     $ 289,235  

Unbilled receivables (included within accounts receivable, net)

   $ 139,547     $ 139,690  

Deferred revenue (included within other liabilities)

   $ 29,378     $ 51,192  

 

The Company recognized revenue during the three and six months ended  June 30, 2023 of $17.1 million and $42.3 million, respectively, and for the three and six months ended  June 30, 2022 of $1.0 million and $8.9 million, respectively, out of the deferred revenue balance as of the beginning of the applicable year.

 

As of June 30, 2023, $28.5 million of our deferred revenue was classified as current and is included in “Other current liabilities” on the condensed consolidated balance sheets, with the remainder classified as non-current and included in “Other non-current liabilities” on the condensed consolidated balance sheets.

 

Transaction price allocated to remaining performance obligations

 

Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less and for our long-term contracts we have a right to consideration from customers in an amount that corresponds directly with the value to the customer of the performance completed to date. With respect to our construction contracts, revenue allocated to remaining performance obligations is $88.6 million.