Rental Equipment, Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Rental Equipment, Property and Equipment

Rental Equipment

Our rental equipment and associated accumulated depreciation as of December 31, 2023 and 2022, respectively, consisted of the following:


	December 31,
	2023		2022
	(in thousands)
Compressor units	$	514,527	$	387,145
Work-in-progress	50,867		37,034
Rental equipment	565,394		424,179
Accumulated depreciation	(191,745)		(177,729)
Rental equipment, net of accumulated depreciation	$	373,649	$	246,450

Our rental equipment has an estimated useful life between 15 and 25 years. Depreciation expense for rental equipment was $24.0 million and $21.9 million for the years ended December 31, 2023 and 2022, respectively.

Retirement of Rental Equipment

Management routinely reviews the Company's inventory of rental equipment for retirement or obsolescence. During 2023, management reviewed the rental fleet to determine which units were not of the type, configuration, make or model that our customers are demanding or that were not cost efficient to refurbish, maintain and/or operate. As a result of this review, we recorded a $0.5 million loss on retirement of rental equipment during the year ended December 31, 2023.

During our review of our rental compressor units in 2022, we recorded a $0.2 million loss on retirement of rental equipment.

Property and Equipment

Property and equipment consists of the following at December 31, 2023 and 2022:


		December 31,
	Useful Lives (Years)	2023		2022
		(in thousands)
Land	—	$	1,680	$	1,680
Building	39	19,140		19,166
Leasehold improvements	39	1,295		1,218
Office equipment and furniture	5	2,039		2,016
Software	5	573		573
Machinery and equipment	7	4,113		4,052
Vehicles	3	8,770		9,858
Work-in-progress		589		594
Total		38,199		39,157
Less accumulated depreciation		(17,649)		(16,981)
Total		$	20,550	$	22,176

Depreciation expense for property and equipment was $2.4 million and $2.1 million for the year ended December 31, 2023 and 2022, respectively.

Depreciation Expense by Product Line

The following table depicts annual depreciation expense associated with each product line as well as our corporate activities at December 31, 2023 and 2022:


	December 31,
	2023		2022
	(in thousands)
Rentals	$	25,507	$	23,243
Sales	260		275
Service & Maintenance	89		33
Corporate	569		440
Total	$	26,425	$	23,991