v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases
Note 7 — Leases
Operating Leases
The Company has operating leases, primarily for real estate and equipment, with terms that vary from one to nine years, included in operating lease costs in the table below. The operating leases are included in Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets.
Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and six months ended June 30, 2025 and 2024, are as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Short-term lease costs$3.5 $2.8 $7.2 $6.1 
Operating lease costs$0.8 $0.8 $1.6 $1.6 
Operating cash outflows from operating leases$0.8 $0.8 $1.7 $1.6 
Weighted average remaining lease term2.3 years3.4 years
Weighted average discount rate8.1 %8.1 %
As of June 30, 2025, aggregate future minimum lease payments under operating leases are as follows (in millions):
For the twelve months ending June 30,
Total
2026$3.2 
20272.7 
20280.7 
20290.2 
Total future minimum lease payments6.8 
Less: amount representing interest(0.6)
Present value of future minimum lease payments6.2 
Less: current portion of operating lease obligations(2.8)
Long-term portion of operating lease obligations$3.4 
On February 1, 2025 the Company entered into an agreement to sublease a 38,033 square foot property located in Midland, Texas. The sublease will cover the remaining term of the head lease for the property with no renewal options, ending September 30, 2027. Sublease income will be reported separately from the operating lease expense as part of other income. The Company recognized an impairment to the right of use asset associated with this operating lease of $0.4 million, in accordance with ASC 360-10 on February 1, 2025. The fair value of the right of use asset was measured as the present value of the future sublease cash flows using the Company’s incremental borrowing rate.
Finance Leases
The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to five years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets.
Lease costs and other information related to finance leases for the three and six months ended June 30, 2025 and 2024, are as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Amortization of finance leases$1.8 $1.4 $3.4 $2.7 
Interest on lease liabilities$0.6 $0.6 $1.2 $1.1 
Financing cash outflows from finance leases$1.7 $1.3 $3.4 $2.6 
Weighted average remaining lease term2.1 years2.3 years
Weighted average discount rate6.5 %6.1 %
As of June 30, 2025, aggregate future minimum lease payments under finance leases are as follows (in millions):
For the twelve months ending June 30,Total
2026$7.0 
20275.9 
20283.5 
20291.1 
Total future minimum lease payments17.5 
Less: amount representing interest and fees(2.1)
Present value of future minimum lease payments15.4 
Less: current portion of finance lease obligations(5.9)
Long-term portion of finance lease obligations$9.5 
Note 8 — Other Financing Liabilities
The Company has sale, lease-back agreements for land and certain other fixed assets with terms that vary from 18 months to 13 years. The sales did not qualify for sale accounting, therefore these leases were classified as finance leases and no gain or loss was recorded. The net book value of the assets remained in Property and equipment, net and are depreciating over their original useful lives.
As of June 30, 2025, aggregate future lease payments of the financing liabilities are as follows (in millions):
For the twelve months ending June 30,
Total
2026$0.7 
20270.8 
20280.8 
20290.8 
20300.9 
Thereafter6.6 
Total future minimum lease payments$10.6 
Leases
Note 7 — Leases
Operating Leases
The Company has operating leases, primarily for real estate and equipment, with terms that vary from one to nine years, included in operating lease costs in the table below. The operating leases are included in Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets.
Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and six months ended June 30, 2025 and 2024, are as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Short-term lease costs$3.5 $2.8 $7.2 $6.1 
Operating lease costs$0.8 $0.8 $1.6 $1.6 
Operating cash outflows from operating leases$0.8 $0.8 $1.7 $1.6 
Weighted average remaining lease term2.3 years3.4 years
Weighted average discount rate8.1 %8.1 %
As of June 30, 2025, aggregate future minimum lease payments under operating leases are as follows (in millions):
For the twelve months ending June 30,
Total
2026$3.2 
20272.7 
20280.7 
20290.2 
Total future minimum lease payments6.8 
Less: amount representing interest(0.6)
Present value of future minimum lease payments6.2 
Less: current portion of operating lease obligations(2.8)
Long-term portion of operating lease obligations$3.4 
On February 1, 2025 the Company entered into an agreement to sublease a 38,033 square foot property located in Midland, Texas. The sublease will cover the remaining term of the head lease for the property with no renewal options, ending September 30, 2027. Sublease income will be reported separately from the operating lease expense as part of other income. The Company recognized an impairment to the right of use asset associated with this operating lease of $0.4 million, in accordance with ASC 360-10 on February 1, 2025. The fair value of the right of use asset was measured as the present value of the future sublease cash flows using the Company’s incremental borrowing rate.
Finance Leases
The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to five years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets.
Lease costs and other information related to finance leases for the three and six months ended June 30, 2025 and 2024, are as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Amortization of finance leases$1.8 $1.4 $3.4 $2.7 
Interest on lease liabilities$0.6 $0.6 $1.2 $1.1 
Financing cash outflows from finance leases$1.7 $1.3 $3.4 $2.6 
Weighted average remaining lease term2.1 years2.3 years
Weighted average discount rate6.5 %6.1 %
As of June 30, 2025, aggregate future minimum lease payments under finance leases are as follows (in millions):
For the twelve months ending June 30,Total
2026$7.0 
20275.9 
20283.5 
20291.1 
Total future minimum lease payments17.5 
Less: amount representing interest and fees(2.1)
Present value of future minimum lease payments15.4 
Less: current portion of finance lease obligations(5.9)
Long-term portion of finance lease obligations$9.5