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Revenue Recognition | 3 Months Ended
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Mar. 31, 2025
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Note 4 – Revenue Recognition The Company’s revenues are derived from multiple sources. The following are descriptions of its principal revenue generating activities. Rental Revenue The company earns rental revenue from leasing production equipment, primarily compression systems and VRUs, under operating leases in accordance with the authoritative guidance for leases (“ASC 842”). Rental contracts range from month to month up to 48 months, with billing at a fixed monthly rate and payment typically due within 15-60 days. Upon lease commencement, the Company evaluates rental agreements to determine classification, but all agreements have been classified as operating leases, keeping the equipment on the balance sheet and depreciating it accordingly. Rental revenue is recognized on a straight-line basis over the lease term. Additionally, the Company has elected a practical expedient to combine lease and non-lease components (such as maintenance services) into a single component, as their timing and pattern of transfer are the same. To protect its assets, the company incorporates risk mitigation measures in rental agreements, including monitoring, maintenance, and customer liability clauses for damage or loss. Sales Revenue Sales revenue is recognized in accordance with ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), which follows a five-step model to determine when and how revenue is recorded. Typically, contracts involve a single performance obligation, and revenue is recognized at a point in time when control of the product transfers to the customer. Sales revenue is measured as the fixed consideration expected from the customer, with payments generally collected within 15–70 days. Since the time between the sale and payment does not exceed a year, the Company does not include a financing component in its contracts. Additionally, there are no material costs associated with obtaining contracts, no right of return, and no significant post-delivery obligations. The Company’s sales revenue primarily comes from three categories: (i) equipment and compressors, (ii) oil & gas products and parts, and (iii) maintenance and repair services: • For equipment and compressors, revenue is recognized when fabrication is complete, the product is segregated, and the customer has been notified that it is ready for pickup. At this point, the Company invoices the customer, and ownership risks and rewards transfer to the customer per the contract terms. The customer is responsible for arranging transportation, and while awaiting pickup (typically within 2-14 days), the equipment remains in the Company’s possession but is designated for the specific customer. The Company does not have the right to direct the product elsewhere. • For oil & gas products and parts, the Company has a single performance obligation – the manufacture and sale of the contracted goods. Revenue is recognized upon the transfer of control which occurs at a point in time upon delivery. The transaction price is based on the standalone sales price of each good, and payments are typically collected within 15–70 days. Shipping and handling are treated as fulfillment activities and recognized as costs of sales. Any sales taxes collected are excluded from revenue. • For maintenance and repair services, the Company provides services for gas lift systems, plunger lift systems, downhole fluid recovery, and related activities. Revenue is recognized at a point in time upon completion of the service, which typically takes 1-3 days from commencement. The transaction price corresponds to the standalone price of the completed service, with payments generally collected within 30-45 days. Similar to product sales, taxes collected from customers are excluded from reported revenues. Disaggregation of Revenues The following table presents our third-party revenue from contracts with customers by reportable segment (see Note 17 – Segment Information) and disaggregated by major product and service lines, timing of revenue recognition, and geographical markets for the three months ended March 31, 2025 (in thousands):
Segments |  | Production Solutions |  |  | Natural Gas Technologies |  |  | Other and Eliminations |  |  | Total |
Major Product/Service Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Surface Equipment (1) |  | $ |  | 54,598 |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | 54,598 |
Downhole Components |  |  |  | 61,394 |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 61,394 |
Vapor Recovery (1) |  |  |  | — |  |  |  |  | 56,616 |  |  |  |  | (45 | ) |  |  |  | 56,571 |
Natural Gas Systems |  |  |  | — |  |  |  |  | 28,881 |  |  |  |  | (9,094 | ) |  |  |  | 19,787 |
Total |  | $ |  | 115,992 |  |  | $ |  | 85,497 |  |  | $ |  | (9,139 | ) |  | $ |  | 192,350 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred at a point in time |  | $ |  | 61,394 |  |  | $ |  | 42,799 |  |  | $ |  | (9,139 | ) |  | $ |  | 95,054 |
Services transferred over time |  |  |  | 54,598 |  |  |  |  | 42,698 |  |  |  |  | — |  |  |  |  | 97,296 |
Total |  | $ |  | 115,992 |  |  | $ |  | 85,497 |  |  | $ |  | (9,139 | ) |  | $ |  | 192,350 |
Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ |  | 113,458 |  |  | $ |  | 85,298 |  |  | $ |  | (9,139 | ) |  | $ |  | 189,617 |
International |  |  |  | 2,534 |  |  |  |  | 199 |  |  |  |  | — |  |  |  |  | 2,733 |
Total |  | $ |  | 115,992 |  |  | $ |  | 85,497 |  |  | $ |  | (9,139 | ) |  | $ |  | 192,350 |
____________________________ (1) All of revenue for these service lines are recognized in accordance with ASC 842 as described within the Revenue Recognition section above. The following table presents our third-party revenue from contracts with customers by reportable segment (see Note 17 – Segment Information) and disaggregated by major product and service lines, timing of revenue recognition, and geographical markets for the three months ended March 31, 2024 (in thousands):
Segments |  | Production Solutions |  |  | Natural Gas Technologies |  |  | Other and Eliminations |  |  | Total |
Major Product/Service Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Surface Equipment (1) |  | $ |  | 46,163 |  |  | $ |  | — |  |  | $ |  | — |  |  | $ |  | 46,163 |
Natural Gas Systems |  |  |  | — |  |  |  |  | 34,148 |  |  |  |  | (13,599 | ) |  |  |  | 20,549 |
Total |  | $ |  | 46,163 |  |  | $ |  | 34,148 |  |  | $ |  | (13,599 | ) |  | $ |  | 66,712 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred at a point in time |  | $ |  | — |  |  | $ |  | 34,148 |  |  | $ |  | (13,599 | ) |  | $ |  | 20,549 |
Services transferred over time |  |  |  | 46,163 |  |  |  |  | - |  |  |  |  | — |  |  |  |  | 46,163 |
Total |  | $ |  | 46,163 |  |  | $ |  | 34,148 |  |  | $ |  | (13,599 | ) |  | $ |  | 66,712 |
Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ |  | 46,163 |  |  | $ |  | 34,148 |  |  | $ |  | (13,599 | ) |  | $ |  | 66,712 |
International |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | — |
Total |  | $ |  | 46,163 |  |  | $ |  | 34,148 |  |  | $ |  | (13,599 | ) |  | $ |  | 66,712 |
___________________________ (1) All of revenue for these service lines are recognized in accordance with ASC 842 as described within the Revenue Recognition section above. Deferred Revenue As of March 31, 2025, the Company had a deferred revenue balance of $7.6 million compared to the December 31, 2024 balance of $8.0 million. Deferred revenue represents our obligation to transfer products to or perform services for a customer for which we have received cash or billed in advance. The revenue that has been deferred will be recognized upon product delivery or as services are performed. As of March 31, 2025, the Company did no t have any contracts with an original length of greater than a year from which revenue is expected to be recognized in the future related to performance obligations that are unsatisfied.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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