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Segments
6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segments Segments
The Company formerly managed its business through two operating segments: Compression Operations and Other Services. After the CSI Acquisition, the Company manages its business through two operating segments: Contract Services and Other Services. Contract Services consists of operating Company-owned compression, customer-owned compression, and gas treating and cooling infrastructure, pursuant to fixed-revenue contracts, to enable the production, gathering and transportation of natural gas and oil. Other Services consists of a full range of services to support ancillary needs of customers, including station construction, maintenance and overhaul, freight and crane charges, and other time and material-based offerings.
The Company evaluates performance and allocates resources based on the gross margin of each segment, which consists of revenues directly attributable to the specific segment (less all costs of service directly attributable to the specific segment, which includes cost of operations and depreciation and amortization). Depreciation and amortization for the Contract Services segment was $69.5 million and $45.4 million for the three months ended June 30, 2024, and 2023, respectively. Depreciation and amortization for the Contract Services segment was $116.4 million and $90.3 million for the six months ended June 30, 2024, and 2023, respectively. Revenue includes only sales to external customers. The following table represents financial metrics by segment (in thousands):
Contract
Services
Other
Services
Total
Three Months Ended June 30, 2024
Revenue$276,250 $33,403 $309,653 
Gross margin107,454 5,467 112,921 
Total assets4,405,861 33,419 4,439,280 
Capital expenditures117,033 — 117,033 
Three Months Ended June 30, 2023
Revenue$181,619 $21,687 $203,306 
Gross margin71,172 3,588 74,760 
Total assets3,219,556 41,807 3,261,363 
Capital expenditures45,453 — 45,453 
Contract
Services
Other
Services
Total
Six Months Ended June 30, 2024
Revenue$469,649 $55,496 $525,145 
Gross margin188,027 9,876 197,903 
Total assets4,405,861 33,419 4,439,280 
Capital expenditures177,186 — 177,186 
Six Months Ended June 30, 2023
Revenue$359,316 $34,102 $393,418 
Gross margin141,202 7,015 148,217 
Total assets3,219,556 41,807 3,261,363 
Capital expenditures94,034 — 94,034 
The following table reconciles total gross margin to income before income taxes (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Total gross margin$112,921 $74,760 $197,903 $148,217 
Selling, general and administrative expenses(59,927)(13,438)(84,751)(26,523)
Gain on sale of property, plant and equipment1,173 738 1,173 721 
Interest expense, net(52,133)(73,658)(91,873)(142,320)
Gain on derivatives6,797 34,934 26,554 26,939 
Other income218 32 150 1 
Income before income taxes$9,049 $23,368 $49,156 $7,035