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REVENUE
 12 Months Ended
Dec. 31, 2024
REVENUE  
REVENUE

NOTE 5—REVENUE

The Company follows ASC 606, Revenue from Contracts with Customers, for most revenue recognition, which provides a five-step model for determining revenue recognition for arrangements that are within the scope of the standard: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model only to contracts when it is probable that we will collect the consideration the Company is entitled to in exchange for the goods or services the Company transfers to the customer. The accommodations and rentals revenue continues to be guided by ASC 842 – Leases, which is discussed further below.

The following factors are applicable to all three of the Company’s segments for the years 2024, 2023 and 2022, respectively:

●The vast majority of Water Services and Chemical Technologies customer agreements are short-term, lasting less than one year. Water Infrastructure contains both short-term and long-term agreements.
●Contracts are seldom combined together as virtually all of our customer agreements constitute separate performance obligations. Each job is typically distinct, thereby not interdependent or interrelated with other customer agreements.
●Most contracts allow either party to terminate at any time without substantive penalties. If the customer terminates the contract, the Company is unconditionally entitled to the payments for the services rendered and products delivered to date.
●Contract terminations before the end of the agreement are rare.
●Sales returns are rare and no sales return assets have been recognized on the balance sheet.
●There are minimal volume discounts.
●There are no service-type warranties.
●There is no long-term customer financing.
●Taxes assessed by government authorities included on customer invoices are excluded from revenue.

In the Water Infrastructure and Water Services segments, performance obligations arise in connection with services provided to customers in accordance with contractual terms, in an amount the Company expects to collect. Services are generally sold based upon customer orders or contracts with customers that include fixed or determinable prices. Revenues are generated by services rendered and measured based on the output generated, which is usually simultaneously received and consumed by customers at their job sites. As a multi-job site organization, contract terms, including the pricing for the Company’s services, are negotiated on a job site level on a per-job basis. Most jobs are completed in a short period of time, usually between one day and one month. Revenue is recognized as performance obligations are completed on a daily, hourly or per unit basis with unconditional rights to consideration for services rendered reflected as accounts receivable trade, net of allowance for credit losses. In cases where a prepayment is received before the Company satisfies its performance obligations, a contract liability is recorded in accrued expenses and other current liabilities. Final billings generally occur once all of the proper approvals are obtained. Mobilization and demobilization are factored into the pricing for services. Billings and costs related to mobilization and demobilization are not material for customer agreements that start in one period and end in another. The Company recognizes revenue from certain sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured and delivery occurs as directed by the customer.

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As of December 31, 2024, 2023, and 2022, the Company reported no contract assets and had contract liabilities of $1.1 million, $1.7 million, and $0.3 million, respectively. During the years ended December 31, 2024 and 2023, the Company recognized revenue of $1.7 million and $0.3 million, respectively, related to contract liabilities existing as of the end of the prior year. Additionally, the Company recognized $8.2 million of revenue during the year ended December 31, 2022, related to a contract liability outstanding as of December 31, 2021.

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Accommodations and rentals revenue is included in the Water Services segment and the Company accounts for accommodations and rentals agreements as an operating lease. The Company recognizes revenue from renting equipment on a straight-line basis. Accommodations and rental contract periods are generally daily, weekly or monthly. The average lease term is less than three months and as of December 31, 2024, there were no material rental agreements in effect lasting more than one year. During 2024, 2023 and 2022, approximately $78.7 million, $83.3 million and $75.9 million of accommodations and rentals revenue was accounted for under ASC 842 lease guidance.

In the Chemical Technologies segment, the typical performance obligation is to provide a specific quantity of chemicals to customers in accordance with the customer agreement in an amount the Company expects to collect. Products and services are generally sold based upon customer orders or contracts with customers that include fixed or determinable prices. Revenue is recognized as the customer takes title to chemical products in accordance with the agreement. Products may be provided to customers in packaging or delivered to the customers’ containers through a hose. In some cases, the customer takes title to the chemicals upon consumption from storage containers on their property, where the chemicals are considered inventory until customer usage. In cases where the Company delivers products and recognizes revenue before collecting payment, the Company has an unconditional right to payment

reflected in accounts receivable trade, net of allowance for credit losses. Customer returns are rare and immaterial, and there were no material in-process customer agreements for this segment as of December 31, 2024 lasting greater than one year.

The following table sets forth certain financial information with respect to the Company’s disaggregation of revenues by geographic location:

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​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31,

​

    

2024

​

2023

    

2022

​

​

(in thousands)

Geographic Region

​

​

​

​

​

​

​

​

​

Permian Basin

​

$

702,014

​

$

759,303

​

$

646,225

Rockies

​

​

209,934

​

​

231,306

​

​

155,854

Eagle Ford

​

​

154,887

​

​

163,366

​

​

152,467

Marcellus/Utica

​

​

141,267

​

​

160,839

​

​

140,859

Bakken

​

​

91,162

​

​

96,338

​

​

78,794

Mid-Continent

​

​

85,342

​

​

100,510

​

​

119,753

Haynesville/E. Texas

​

​

79,036

​

​

84,028

​

​

103,056

Eliminations and other regions

​

​

(11,567)

​

​

(10,337)

​

​

(9,588)

Total

​

$

1,452,075

​

$

1,585,353

​

$

1,387,420

​

In the Water Infrastructure segment, the most recent top three revenue-producing regions are the Permian Basin, Bakken and Marcellus/Utica, which collectively comprised 75%, 75% and 78% of segment revenue for 2024, 2023 and 2022, respectively. In the Water Services segment, the most recent top three revenue-producing regions are the Permian Basin, Marcellus/Utica and Rockies, which collectively comprised 72%, 70% and 68% of segment revenue for 2024, 2023 and 2022, respectively. In the Chemical Technologies segment, the most recent top three revenue-producing regions are the Permian Basin, Midcon and Rockies, which collectively comprised 84%, 86% and 76% of segment revenue for 2024, 2023 and 2022, respectively.