| Schedule of financial information with respect to operating segments |
The following table sets forth financial information with respect to our reportable operating segments: | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Drilling | | | International Drilling | | | Drilling Solutions | | | Rig Technologies | | | Total Reportable Segments | | | Other items (1) | | | Total | | | | (In thousands) | Operating revenues | | $ | 255,438 | | $ | 384,970 | | $ | 170,283 | | $ | 36,527 | | $ | 847,218 | | $ | (14,430) | | $ | 832,788 | Direct costs | | | (147,288) | | | (247,946) | | | (80,482) | | | (24,794) | | | (500,510) | | | 11,629 | | | (488,881) | Depreciation and amortization | | | (62,033) | | | (81,607) | | | (26,136) | | | (3,453) | | | (173,229) | | | (1,832) | | | (175,061) | Other segment expenses (2) | | | (6,329) | | | (19,366) | | | (13,300) | | | (6,559) | | | (45,554) | | | (49,894) | | | (95,448) | Total adjusted operating income (loss) | | $ | 39,788 | | $ | 36,051 | | $ | 50,365 | | $ | 1,721 | | $ | 127,925 | | $ | (54,527) | | $ | 73,398 | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 35,499 | | $ | 127,383 | | $ | 34,414 | | $ | 468 | | $ | 197,764 | | $ | 772 | | $ | 198,536 |
| | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | | | June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Drilling | | | International Drilling | | | Drilling Solutions | | | Rig Technologies | | | Total Reportable Segments | | | Other items (1) | | | Total | | | | | (In thousands) | | Operating revenues | | $ | 486,184 | | $ | 766,688 | | $ | 263,462 | | $ | 80,692 | | $ | 1,597,026 | | $ | (28,052) | | $ | 1,568,974 | | Direct costs | | | (279,216) | | | (496,386) | | | (124,705) | | | (56,029) | | | (956,336) | | | 20,155 | | | (936,181) | | Depreciation and amortization | | | (123,145) | | | (164,135) | | | (34,076) | | | (4,681) | | | (326,037) | | | (3,662) | | | (329,699) | | Other segment expenses (2) | | | (12,436) | | | (37,158) | | | (21,403) | | | (13,926) | | | (84,923) | | | (93,066) | | | (177,989) | | Total adjusted operating income (loss) (2) | | $ | 71,387 | | $ | 69,009 | | $ | 83,278 | | $ | 6,056 | | $ | 229,730 | | $ | (104,625) | | $ | 125,105 | | | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 67,899 | | $ | 235,511 | | $ | 41,586 | | $ | 751 | | $ | 345,747 | | $ | 3,298 | | $ | 349,045 | |
| | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Drilling | | | International Drilling | | | Drilling Solutions | | | Rig Technologies | | | Total Reportable Segments | | | Other items (1) | | | Total | | | | (In thousands) | Operating revenues | | $ | 259,723 | | $ | 356,733 | | $ | 82,961 | | $ | 49,546 | | $ | 748,963 | | $ | (14,165) | | $ | 734,798 | Direct costs | | | (140,054) | | | (233,523) | | | (42,784) | | | (33,948) | | | (450,309) | | | 10,084 | | | (440,225) | Depreciation and amortization | | | (68,935) | | | (82,699) | | | (5,149) | | | (2,470) | | | (159,253) | | | (888) | | | (160,141) | Other segment expenses (2) | | | (5,649) | | | (16,839) | | | (7,709) | | | (8,268) | | | (38,465) | | | (38,051) | | | (76,516) | Total adjusted operating income (loss) | | $ | 45,085 | | $ | 23,672 | | $ | 27,319 | | $ | 4,860 | | $ | 100,936 | | $ | (43,020) | | $ | 57,916 | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 31,876 | | $ | 95,675 | | $ | 3,885 | | $ | 1,166 | | $ | 132,602 | | $ | 5,648 | | $ | 138,250 |
| | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | | | June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Drilling | | | International Drilling | | | Drilling Solutions | | | Rig Technologies | | | Total Reportable Segments | | | Other items (1) | | | Total | | | | | (In thousands) | | Operating revenues | | $ | 531,712 | | $ | 706,092 | | $ | 158,535 | | $ | 99,702 | | $ | 1,496,041 | | $ | (27,539) | | $ | 1,468,502 | | Direct costs | | | (285,480) | | | (464,461) | | | (79,292) | | | (68,207) | | | (897,440) | | | 20,138 | | | (877,302) | | Depreciation and amortization | | | (138,809) | | | (162,721) | | | (10,043) | | | (5,062) | | | (316,635) | | | (1,191) | | | (317,826) | | Other segment expenses (2) | | | (11,809) | | | (32,762) | | | (14,988) | | | (17,364) | | | (76,923) | | | (75,207) | | | (152,130) | | Total adjusted operating income (loss) (2) | | $ | 95,614 | | $ | 46,148 | | $ | 54,212 | | $ | 9,069 | | $ | 205,043 | | $ | (83,799) | | $ | 121,244 | | | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 61,819 | | $ | 169,259 | | $ | 7,416 | | $ | 3,572 | | $ | 242,066 | | $ | 8,580 | | $ | 250,646 | |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | (In thousands) | | Reconciliation of segment adjusted operating income (loss) to net income (loss): | | | | | | | | | | | | | | Net income (loss) | | $ | (2,205) | | $ | (13,029) | | $ | 54,974 | | $ | (22,031) | | Income tax expense (benefit) | | | 23,077 | | | 15,554 | | | 38,084 | | | 31,598 | | Income (loss) before income taxes | | | 20,872 | | | 2,525 | | | 93,058 | | | 9,567 | | Investment (income) loss | | | (6,129) | | | (8,181) | | | (12,725) | | | (18,382) | | Interest expense | | | 56,081 | | | 51,493 | | | 110,407 | | | 101,872 | | Gain on bargain purchase | | | (3,500) | | | — | | | (116,499) | | | — | | Other, net | | | 6,074 | | | 12,079 | | | 50,864 | | | 28,187 | | Total adjusted operating income (loss) (3) | | $ | 73,398 | | $ | 57,916 | | $ | 125,105 | | $ | 121,244 | |
| | | | | | | | | June 30, | | December 31, | | | 2025 | | 2024 | | | | (In thousands) | Total assets: | | | | | | | U.S. Drilling | | $ | 1,070,216 | | $ | 1,049,650 | International Drilling | | | 2,471,483 | | | 2,348,590 | Drilling Solutions | | | 444,153 | | | 79,065 | Rig Technologies | | | 180,229 | | | 215,225 | Total reportable segments | | | 4,166,081 | | | 3,692,530 | Other reconciling items (4) | | | 872,582 | | | 811,771 | Total | | $ | 5,038,663 | | $ | 4,504,301 |
| (1) | Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment and unallocated corporate expenses, assets and capital expenditures. |
| (2) | Other segment expenses represent general and administrative expenses and research and engineering expenses. |
| (3) | Management evaluates the performance of our operating segments using adjusted operating income (loss), which is our segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) is provided in the above table. |
| (4) | Represents corporate-related assets. |
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