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Revenue From Contracts With Customers
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue From Contracts With Customers

Note 8 — Revenue from Contracts with Customers

Disaggregation of Revenue

Our service contracts generally contain provisions for specific time, material and equipment charges that are billed in accordance with the terms of such contracts (dayrate contracts) but we occasionally contract on a lump sum basis (lump sum contracts). We record revenues net of taxes collected from customers and remitted to governmental authorities.

Our revenues are primarily derived from short-term and long-term service contracts with customers. Contracts are classified as long-term if all or part of the contract is to be performed over a period extending beyond 12 months from the effective date of the contract. Long-term contracts may include multi-year agreements whereby the commitment for services in any one year may be short in duration. The following table provides information about disaggregated revenue by contract duration (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Well

​

​

​

Shallow Water

​

Production

​

Intercompany

​

Total

​

    

Intervention

    

Robotics

    

Abandonment

    

Facilities

    

Eliminations

    

Revenue

Three months ended June 30, 2024

​

​

​

 

​

  

 

​

  

 

​

  

 

​

  

Short-term

​

$

153,152

​

$

44,193

​

$

42,369

​

$

—

​

$

(106)

​

$

239,608

Long-term

​

 

71,527

​

 

37,056

​

 

8,472

​

 

25,400

​

 

(17,266)

​

 

125,189

Total

​

$

224,679

​

$

81,249

​

$

50,841

​

$

25,400

​

$

(17,372)

​

$

364,797

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2023

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Short-term

​

$

75,621

​

$

38,069

​

$

74,116

​

$

—

​

$

(26)

​

$

187,780

Long-term

​

 

78,600

​

 

31,981

​

 

2,190

​

 

23,128

​

 

(14,862)

​

 

121,037

Total

​

$

154,221

​

$

70,050

​

$

76,306

​

$

23,128

​

$

(14,888)

​

$

308,817

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2024

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Short-term

​

$

287,566

​

$

69,369

​

$

67,732

​

$

—

​

$

(6,433)

​

$

418,234

Long-term

​

 

153,572

​

 

62,189

​

 

9,962

​

 

49,552

​

 

(32,501)

​

 

242,774

Total

​

$

441,138

​

$

131,558

​

$

77,694

​

$

49,552

​

$

(38,934)

​

$

661,008

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2023

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Short-term

​

$

153,388

​

$

73,274

​

$

123,497

​

$

—

​

$

(26)

​

$

350,133

Long-term

​

 

143,271

​

 

45,998

​

 

2,190

​

 

44,033

​

 

(26,724)

​

 

208,768

Total

​

$

296,659

​

$

119,272

​

$

125,687

​

$

44,033

​

$

(26,750)

​

$

558,901

​

We provide services to our customers in the following markets that are key to our energy transition strategy: Production maximization, Decommissioning and Renewables. The following table provides information about disaggregated revenue by market strategy (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Well

​

​

​

Shallow Water

​

Production

​

Intercompany

​

Total

​

    

Intervention

    

Robotics

    

Abandonment

    

Facilities

    

Eliminations

    

Revenue

Three months ended June 30, 2024

​

​

​

 

​

  

 

​

  

 

​

  

 

​

  

Production maximization

​

$

109,302

​

$

20,596

​

$

3,009

​

$

25,400

​

$

(7,819)

​

$

150,488

Decommissioning

​

 

109,640

​

 

7,099

​

 

47,832

​

 

—

​

 

(3,641)

​

 

160,930

Renewables

​

 

4,269

​

 

50,493

​

 

—

​

 

—

​

 

(4,269)

​

 

50,493

Other

​

 

1,468

​

 

3,061

​

 

—

​

 

—

​

 

(1,643)

​

 

2,886

Total

​

$

224,679

​

$

81,249

​

$

50,841

​

$

25,400

​

$

(17,372)

​

$

364,797

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2023

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Production maximization

​

$

52,882

​

$

21,309

​

$

3,562

​

$

23,128

​

$

(4,608)

​

$

96,273

Decommissioning

​

 

96,176

​

 

11,873

​

 

72,744

​

 

—

​

 

(4,943)

​

 

175,850

Renewables

​

 

3,384

​

 

35,885

​

 

—

​

 

—

​

 

(3,384)

​

 

35,885

Other

​

 

1,779

​

 

983

​

 

—

​

 

—

​

 

(1,953)

​

 

809

Total

​

$

154,221

​

$

70,050

​

$

76,306

​

$

23,128

​

$

(14,888)

​

$

308,817

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2024

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Production maximization

​

$

179,751

​

$

39,032

​

$

6,251

​

$

49,552

​

$

(19,211)

​

$

255,375

Decommissioning

​

 

252,325

​

 

12,511

​

 

71,443

​

 

—

​

 

(10,569)

​

 

325,710

Renewables

​

 

6,773

​

 

74,665

​

 

—

​

 

—

​

 

(6,773)

​

 

74,665

Other

​

 

2,289

​

 

5,350

​

 

—

​

 

—

​

 

(2,381)

​

 

5,258

Total

​

$

441,138

​

$

131,558

​

$

77,694

​

$

49,552

​

$

(38,934)

​

$

661,008

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2023

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Production maximization

​

$

100,149

​

$

48,028

​

$

6,969

​

$

44,033

​

$

(8,425)

​

$

190,754

Decommissioning

​

 

188,796

​

 

22,921

​

 

118,718

​

 

—

​

 

(10,014)

​

 

320,421

Renewables

​

 

4,710

​

 

44,563

​

 

—

​

 

—

​

 

(4,710)

​

 

44,563

Other

​

 

3,004

​

 

3,760

​

 

—

​

 

—

​

 

(3,601)

​

 

3,163

Total

​

$

296,659

​

$

119,272

​

$

125,687

​

$

44,033

​

$

(26,750)

​

$

558,901

​

Contract Balances

Contract assets are rights to consideration in exchange for services that we have provided to a customer when those rights are conditioned on our future performance. Contract assets generally consist of (i) demobilization fees recognized ratably over the contract term but invoiced upon completion of the demobilization activities and (ii) revenue recognized in excess of the amount billed to the customer for lump sum contracts when the cost-to-cost method of revenue recognition is utilized. Contract assets are reflected in “Other current assets” in the accompanying condensed consolidated balance sheets (Note 3). Contract assets were $10.0 million as of June 30, 2024 and $5.8 million as of December 31, 2023. We had no credit losses on our contract assets for the three- and six-month periods ended June 30, 2024 and 2023.

Contract liabilities are obligations to provide future services to a customer for which we have already received, or have the unconditional right to receive, the consideration for those services from the customer. Contract liabilities may consist of (i) advance payments received from customers, including upfront mobilization fees allocated to a single performance obligation and recognized ratably over the contract term and/or (ii) amounts billed to the customer in excess of revenue recognized for lump sum contracts when the cost-to-cost method of revenue recognition is utilized. Contract liabilities are reflected as “Deferred revenue,” a component of “Accrued liabilities” in the accompanying condensed consolidated balance sheets (Note 3). Contract liabilities totaled $17.1 million as of June 30, 2024 and $32.8 million as of December 31, 2023. Revenue recognized for the three- and six-month periods ended June 30, 2024 included $18.2 million and $31.0 million, respectively, that were included in the contract liability balance at the beginning of each period. Revenue recognized for the three- and six-month periods ended June 30, 2023 included $9.4 million and $8.0 million, respectively, that were included in the contract liability balance at the beginning of each period.

We report the net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period.

Performance Obligations

As of June 30, 2024, approximately $873.3 million related to unsatisfied performance obligations was expected to be recognized as revenue in the future, with $443.4 million, $403.8 million and $26.0 million in 2024, 2025 and 2026, respectively. These amounts include fixed consideration and estimated variable consideration for both wholly and partially unsatisfied performance obligations, including mobilization and demobilization fees. These amounts are derived from the specific terms of our contracts, and the expected timing for revenue recognition is based on the estimated start date and duration of each contract according to the information known at June 30, 2024.

For the three- and six-month periods ended June 30, 2024 and 2023, revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were immaterial.

Contract Fulfillment Costs

Contract fulfillment costs consist of costs incurred in fulfilling a contract with a customer. Our contract fulfillment costs primarily relate to costs incurred for mobilization of personnel and equipment at the beginning of a contract and costs incurred for demobilization at the end of a contract. Mobilization costs are deferred and amortized ratably over the contract term (including anticipated contract extensions) based on the pattern of the provision of services to which the contract fulfillment costs relate. Demobilization costs are recognized when incurred at the end of the contract. Deferred contract costs are reflected as “Deferred costs,” a component of “Other current assets” and “Other assets, net” in the accompanying condensed consolidated balance sheets (Note 3). Our deferred contract costs totaled $24.1 million as of June 30, 2024 and $36.6 million as of December 31, 2023. For the three- and six-month periods ended June 30, 2024, we recorded $11.0 million and $31.3 million, respectively, related to amortization of these deferred contract costs. For the three- and six-month periods ended June 30, 2023, we recorded $14.4 million and $19.1 million, respectively, related to amortization of these deferred contract costs. There were no associated impairment losses for any period presented.

For additional information regarding revenue recognition, see Notes 2 and 11 to our 2023 Form 10-K.