v3.25.3
REPORTABLE SEGMENTS
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS

11. REPORTABLE SEGMENTS

 

Operating segments are components of an enterprise where separate financial information is available and that are evaluated regularly by the Company’s CODM in deciding how to allocate resources and in assessing performance. The Company reports segment information based on the “management” approach and its CODM is its Chief Executive Officer.

 

The Company’s services are similar to one another in that they consist of oilfield services and related offerings, whose customers are oil and natural gas companies. The results of operations of the service offerings are regularly reviewed by the CODM for the Company for the purposes of determining resource and asset allocation and assessing performance. The Company has determined that it has two reportable segments, Production Services and Drilling and Evaluation Services. The CODM evaluates the operating results of its reportable segments primarily based on revenue and segment operating (loss) / income. Segment operating (loss) / income does not include general corporate expenses, such as corporate overhead (costs incurred at the Company’s global and regional headquarter locations), share-based compensation, and transaction and integration costs, as these expenses are not allocated to the Company’s reportable segments and not reported to the Company’s CODM.

 

Production Services that are offered depend on the well life cycle in which the services may fall. They include, but are not limited to, the following types of service offerings: hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management.

 

Drilling and Evaluation Services generates its revenue from the following service offerings: rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services, and slickline services.

 

The Company’s operations and activities are located within certain geographies, primarily the MENA region.

 

Revenue from operations

 

                 
   For the three-month
period ended		   For the nine-month
period ended		 
   September 30, 2025   September 30, 2024   September 30, 2025   September 30, 2024 
Reportable Segment:                    
Production Services  $174,443   $230,521   $567,591   $644,620 
Drilling and Evaluation Services   120,872    105,684    358,194    313,402 
Total external revenue  $295,315   $336,205   $925,785   $958,022 

 

Long-lived assets

 

         
   As of 
   September 30, 2025   December 31, 2024 
Reportable Segment:          
Production Services  $217,965   $220,453 
Drilling and Evaluation Services   166,802    162,295 
Total Reportable Segments   384,767    382,748 
Unallocated assets   52,467    55,398 
Total long-lived assets  $437,234   $438,146 

 

Unallocated assets mainly comprise of buildings and leasehold improvements in the countries which supports both the segments in the normal course of business.

 

 

Total segment operating income

 

                 
   For the three-month
period ended		   For the nine-month
period ended		 
   September 30, 2025   September 30, 2024   September 30, 2025   September 30, 2024 
Reportable Segment:                    
Production Services  $15,578   $39,774   $58,303   $104,205 
Drilling and Evaluation Services   16,267    14,251    53,128    45,870 
Total Reportable Segments   31,845    54,025    111,431    150,075 
Unallocated expenses   (12,239)   (18,577)   (43,793)   (55,953)
Total operating income   19,606    35,448    67,638    94,122 
Interest expense, net   (8,128)   (9,933)   (24,974)   (29,976)
Other income, net   759    394    2,758    1,199 
Income before income tax  $12,237   $25,909   $45,422   $65,345 

 

Unallocated expenses for the three-month and nine-month periods ended September 30, 2025, and September 30, 2024, respectively, mainly include corporate selling, general, and administrative expenses (inclusive of amortization), offset in small part by a portion of these costs that are allocated to the reportable segments. As described elsewhere, corporate selling, general, and administrative expenses are primarily comprised of payroll and compensation costs for headquarters’ employees, professional and legal expenses relating to audit firms, consulting firms and legal counsel, and depreciation charges on headquarters’ offices and leasehold improvements.

 

Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:

 

                 
   For the three-month
period ended		   For the nine-month
period ended		 
  

September 30,

2025

  

September 30,

2024

  

September 30,

2025

  

September 30,

2024

 
Production Services:                    
Compensation  $44,792   $47,862   $138,864   $140,519 
Cost of products, materials, and supplies   48,861    72,458    167,327    195,734 
Transport and rental   27,430    29,488    85,079    85,845 
Depreciation and amortization   18,382    19,178    58,430    56,928 
Other   19,400    21,761    59,588    61,389 
Total  $158,865   $190,747   $509,288   $540,415 

 

                 
   For the three-month
period ended		   For the nine-month
period ended		 
  

September 30,

2025

  

September 30,

2024

  

September 30,

2025

  

September 30,

2024

 
Drilling and Evaluation Services                    
Compensation  $37,943   $33,428   $110,448   $99,880 
Cost of products, materials, and supplies   16,722    17,710    52,088    52,950 
Transport and rental   24,155    17,889    69,471    48,905 
Depreciation and amortization   11,779    10,599    34,830    31,829 
Other   14,006    11,807    38,229    33,968 
Total  $104,605   $91,433   $305,066   $267,532 

 

Other segment expenses include mobilization, occupancy, professional, and other costs.

 

Revenue by geographic area

 

                 
   For the three-month
period ended		   For the nine-month
period ended		 
   September 30, 2025   September 30, 2024   September 30, 2025   September 30, 2024 
Geographic Area:                    
Domestic (British Virgin Islands)  $-   $-   $-   $- 
MENA   293,644    333,803    919,801    949,884 
Rest of World   1,671    2,402    5,984    8,138 
Total revenue  $295,315   $336,205   $925,785   $958,022 

 

 

Long-lived assets by geographic area

 

         
   As of 
  

September 30,

2025

  

December 31,

2024

 
Geographic area:          
Domestic (British Virgin Islands)  $-   $- 
MENA   428,509    428,353 
Rest of World   8,725    9,793 
Total long-lived assets  $437,234   $438,146