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Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments Business Segments
In the first quarter 2024, following the Variperm Acquisition, we aligned our reportable segments with business activity drivers, our customer base, and the manner in which management reviews and evaluates operating performance. FET now operates in the following two reportable segments: (1) Drilling and Completions and (2) Artificial Lift and Downhole. Our historical results of operations were recast retrospectively to reflect these changes in accordance with U.S. GAAP.
The Drilling and Completions segment designs, manufactures and supplies products and solutions to the drilling, subsea, coiled tubing, well stimulation and intervention markets, including applications in oil and natural gas, renewable energy, defense and communications. The Artificial Lift and Downhole segment designs, manufactures and supplies products and solutions for the artificial lift, production and infrastructure markets.
The Company’s reportable segments are strategic units that offer distinct products and services. They are managed separately since each business segment requires different marketing strategies. Operating segments have not been aggregated as part of a reportable segment. The Company evaluates the performance of its reportable segments based on operating income. This segmentation is representative of the manner in which our Chief Operating Decision Maker and our board of directors make decisions on how to allocate resources and assess performance. We consider the Chief Operating Decision Maker to be the Chief Executive Officer.
Summary financial data by reportable segment follows (in thousands):
Year ended December 31, 2024Drilling and CompletionsArtificial Lift and Downhole
Total
Revenue from external customers
$470,767 345,680 $816,447 
Intersegment revenue
(22)— (22)
Total revenue470,745 345,680 816,425 
Less:
Cost of sales348,878 212,536 561,414 
Selling, general and administrative expenses104,123 84,250 188,373 
Segment operating income
17,744 48,894 66,638 
Reconciliation to income (loss) before income taxes
Elimination of intersegment expenses
(22)
Other corporate expenses
30,952 
Transaction expenses7,728 
Impairment of intangible assets119,123 
Gain on sale-leaseback transactions(4,860)
Loss on disposal of assets and other484 
Interest expense31,490 
Foreign exchange losses and other, net7,315 
Loss on extinguishment of debt2,854 
Loss before income taxes$(128,426)
Year ended December 31, 2023Drilling and CompletionsArtificial Lift and DownholeTotal
Revenue from external customers$502,622 236,312 $738,934 
Intersegment revenue(70)— (70)
Total revenue502,552 236,312 738,864 
Less:
Cost of sales376,882 157,899 534,781 
Selling, general and administrative expenses106,306 46,830 153,136 
Segment operating income19,364 31,583 50,947 
Reconciliation to income (loss) before income taxes
Elimination of intersegment expenses(70)
Other corporate expenses27,253 
Transaction expenses2,892 
Loss on disposal of assets and other156 
Interest expense18,297 
Foreign exchange losses and other, net10,233 
Loss before income taxes$(7,814)
Year ended December 31,
20242023
Depreciation and amortization
Drilling and Completions$28,181 $29,164 
Artificial Lift and Downhole25,349 5,318 
Corporate187 246 
Total depreciation and amortization$53,717 $34,728 
A summary of capital expenditures by reportable segment is as follows (in thousands):
Year ended December 31,
Capital expenditures20242023
Drilling and Completions$5,974 $6,444 
Artificial Lift and Downhole1,413 753 
Corporate758 747 
Total capital expenditures$8,145 $7,944 
A summary of consolidated assets by reportable segment is as follows (in thousands):
Year ended December 31,
Assets20242023
Drilling and Completions$418,583 $615,033 
Artificial Lift and Downhole371,178 178,785 
Corporate26,193 27,243 
Total assets$815,954 $821,061 
Corporate assets primarily include cash, certain prepaid expenses and deferred loan costs.
A summary of long-lived assets by geography is as follows (in thousands):
December 31,
Long-lived assets20242023
United States$125,373 $251,901 
Canada172,740 11,131 
Europe & Africa19,196 24,846 
Middle East2,951 3,508 
Asia-Pacific53 67 
Latin America4 4 
Total long-lived assets$320,317 $291,457 
The following table presents our revenues disaggregated by geography based on shipping destination (in thousands):
Year ended December 31,
20242023
Revenue$%$%
United States$415,132 50.9 %$455,871 61.7 %
Canada152,168 18.6 %52,833 7.2 %
Middle East91,500 11.2 %89,346 12.1 %
Europe & Africa76,712 9.4 %64,245 8.7 %
Asia-Pacific43,971 5.4 %38,624 5.2 %
Latin America36,942 4.5 %37,945 5.1 %
Total Revenue$816,425 100.0 %$738,864 100.0 %
The following table presents our revenues disaggregated by product line (in thousands):
Year ended December 31,
20242023
Revenue$%$%
Drilling$143,269 17.6 %$168,547 22.9 %
Subsea78,118 9.6 %68,478 9.3 %
Stimulation and Intervention144,879 17.7 %158,296 21.4 %
Coiled Tubing104,501 12.8 %107,301 14.5 %
Downhole207,430 25.4 %90,448 12.2 %
Production Equipment76,251 9.3 %81,989 11.1 %
Valve Solutions61,999 7.6 %63,875 8.6 %
Eliminations(22)— %(70)— %
Total revenue$816,425 100.0 %$738,864 100.0 %