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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 17 – Segment Information

Our operations are primarily based in the United States. All material revenues of the Company are derived from the United States. Substantially all long-lived assets of the Company are located in the U.S.

The Company identifies reportable operating segments based on management’s structure, the customer’s application of its products and services offered by each and the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among segments. The Company’s two reportable operating segments are as follows:

•
Production Solutions: relates to rental, sale and services related to high pressure gas lift, conventional gas lift and plunger lift; including other digital solutions and methane abatement technologies. This segment includes rental, sales, and service revenues.
•
Natural Gas Technologies: relates to the design, manufacturing, rental, sale and servicing of vapor recovery and natural gas systems. This segment includes rental, sales, and service revenues.

Corporate headquarters and certain functional departments do not earn revenues but incur costs which do not constitute business activities. Therefore, these corporate headquarters and certain functional departments do not qualify as an operating segment and have been included within corporate and other, which is also not considered a reportable segment. Corporate and other includes (i) corporate and overhead costs, and (ii) capitalized costs related to the IPO and debt issuance and does not include any immaterial and aggregated operating segments.

The CODM assesses segment performances and allocates resources based on profitability. The CODM evaluates operating performance and decides how to allocate resources based on segment profit or loss, which is equivalent to segment income from operations, as well as Adjusted EBITDA, a non-GAAP measure defined as adjusted earnings before interest, income taxes, depreciation and amortization. The CODM uses the segment profit or loss for each segment predominantly in the annual budget and forecasting process. The CODM considers quarter-to-quarter variances on a sequential basis when making decisions about the allocation of operating and capital resources to each segment.

The below tables contain revenues and certain expenses regularly presented to the CODM in order to make decisions regarding the Company's business, including resource allocation and performance assessments, as well as the current focus in compliance with ASC 280, Segment Reporting, for the periods presented (in thousands):

 

Three Months Ended March 31, 2025

 

 

 

Production Solutions

 

 

 

Natural Gas Technologies

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

 

115,992

 

 

$

 

76,358

 

 

$

 

192,350

 

Intersegment revenues

 

 

—

 

 

 

 

9,139

 

 

 

 

9,139

 

Total revenues

 

 

115,992

 

 

 

 

85,497

 

 

 

 

201,489

 

Elimination of intersegment revenue

 

 

 

 

 

 

 

 

 

 

(9,139

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

192,350

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues from external customers (1)

 

 

52,323

 

 

 

 

40,094

 

 

 

 

92,417

 

Intersegment cost of revenue

 

 

—

 

 

 

 

9,139

 

 

 

 

9,139

 

Total cost of revenues

 

 

52,323

 

 

 

 

49,233

 

 

 

 

101,556

 

Elimination of intersegment cost of revenue

 

 

 

 

 

 

 

 

 

 

(9,139

)

Total consolidated cost of revenue

 

 

 

 

 

 

 

 

 

 

92,417

 

Selling, general and administrative expenses (1)

 

 

14,677

 

 

 

 

10,054

 

 

 

 

24,731

 

Depreciation and amortization (1)

 

 

19,614

 

 

 

 

14,499

 

 

 

 

34,113

 

(Gain) loss on sale of equipment

 

 

46

 

 

 

 

(91

)

 

 

 

(45

)

Segment profit

$

 

29,332

 

 

$

 

11,802

 

 

 

 

41,134

 

Corporate expenses (2)

 

 

 

 

 

 

 

 

 

 

(5,809

)

Total operating income

 

 

 

 

 

 

 

 

 

 

35,325

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(5,365

)

Other expense

 

 

 

 

 

 

 

 

 

 

(267

)

Income before provision for income taxes

 

 

 

 

 

 

 

 

$

 

29,693

 

 

____________________________

(1) Represents the significant expense categories and amounts for each reportable operating segment that are regularly provided to the chief operating decision maker.

(2) Comprised primarily of expenses not allocated to our reportable segments.

 

Three Months Ended March 31, 2024

 

 

 

Production Solutions

 

 

 

Natural Gas Technologies

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

 

46,163

 

 

 

 

20,549

 

 

$

 

66,712

 

Intersegment revenues

 

 

—

 

 

 

 

13,599

 

 

 

 

13,599

 

Total revenues

 

 

46,163

 

 

 

 

34,148

 

 

 

 

80,311

 

Elimination of intersegment revenue

 

 

 

 

 

 

 

 

 

 

(13,599

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

66,712

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues from external customers (1)

 

 

10,975

 

 

 

 

16,933

 

 

 

 

27,908

 

Intersegment cost of revenue

 

 

—

 

 

 

 

13,599

 

 

 

 

13,599

 

Total cost of revenues

 

 

10,975

 

 

 

 

30,532

 

 

 

 

41,507

 

Elimination of intersegment cost of revenue

 

 

 

 

 

 

 

 

 

 

(13,599

)

Total consolidated cost of revenue

 

 

 

 

 

 

 

 

 

 

27,908

 

Selling, general and administrative expenses (1)

 

 

3,414

 

 

 

 

1,045

 

 

 

 

4,459

 

Depreciation and amortization (1)

 

 

11,426

 

 

 

 

286

 

 

 

 

11,712

 

Loss on sale of equipment

 

 

389

 

 

 

 

—

 

 

 

 

389

 

Segment profit

$

 

19,959

 

 

$

 

2,285

 

 

 

 

22,244

 

Corporate expenses (2)

 

 

 

 

 

 

 

 

 

 

(17

)

Total operating income

 

 

 

 

 

 

 

 

 

 

22,227

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(4,807

)

Other expense

 

 

 

 

 

 

 

 

 

 

(102

)

Income before provision for income taxes

 

 

 

 

 

 

 

 

$

 

17,318

 

 

____________________________

(1) Represents the significant expense categories and amounts for each reportable operating segment that are regularly provided to the chief operating decision maker.

(2) Comprised primarily of expenses not allocated to our reportable segments.

The following tables set forth certain selected financial information for our operating segments for the periods presented (in thousands):

 

 

Three Months Ended
March 31,

 

 

 

2025

 

 

2024

 

Segment capital expenditures:

 

 

 

 

 

 

 

 

Production Solutions

 

$

 

11,381

 

 

$

 

14,774

 

Natural Gas Technologies

 

 

 

16,469

 

 

 

 

—

 

Total segment capital expenditures

 

 

 

27,850

 

 

 

 

14,774

 

Corporate and other

 

 

 

—

 

 

 

 

—

 

Total capital expenditures

 

$

 

27,850

 

 

$

 

14,774

 

 

 

 

As of
March 31,

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Segment assets:

 

 

 

 

 

 

 

 

Production Solutions

 

$

 

895,605

 

 

$

 

886,372

 

Natural Gas Technologies

 

 

 

748,910

 

 

 

 

730,459

 

Total segment assets

 

 

 

1,644,515

 

 

 

 

1,616,831

 

Eliminations

 

 

 

(52,400

)

 

 

 

(41,639

)

Corporate and other

 

 

 

13,695

 

 

 

 

13,757

 

Total assets

 

$

 

1,605,810

 

 

$

 

1,588,949