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REPORTABLE SEGMENTS
 6 Months Ended
Jun. 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

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the three-month
period ended		   For the six-month
period ended		 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Reportable Segment:                    
Production Services  $205,061   $219,595   $393,148   $414,098 
Drilling and Evaluation Services   122,307    105,374    237,322    207,719 
Total external revenue  $327,368   $324,969   $630,470   $621,817 

 

Long-lived assets

 

   June 30, 2025   December 31, 2024 
   As of 
   June 30, 2025   December 31, 2024 
Reportable Segment:          
Production Services  $209,492   $220,453 
Drilling and Evaluation Services   163,833    162,295 
Total Reportable Segments   373,325    382,748 
Unallocated assets   50,531    55,398 
Total long-lived assets  $423,856   $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

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the three-month
period ended		   For the six-month
period ended		 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Reportable Segment:                    
Production Services  $22,696   $27,954   $42,725   $46,878 
Drilling and Evaluation Services   20,714    12,921    36,861    22,677 
Total Reportable Segments   43,410    40,875    79,586    69,555 
Unallocated expenses   (16,319)   (6,759)   (31,554)   (10,881)
Total operating income   27,091    34,116    48,032    58,674 
Interest expense, net   (8,562)   (9,439)   (16,846)   (20,043)
Other income, net   940    184    1,999    805 
Income before income tax  $19,469   $24,861   $33,185   $39,436 

 

Unallocated expenses for the three-month and six-month periods ended June 30, 2025, and June 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:

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the three-month
period ended		   For the six-month
period ended		 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Production Services:                    
Compensation  $47,045   $46,937   $94,072   $92,657 
Cost of products, materials, and supplies   65,449    66,779    118,466    123,276 
Transport and rental   29,334    28,876    57,649    56,357 
Depreciation and amortization   19,817    20,021    40,048    37,750 
Other   20,726    29,029    40,189    57,179 
Total  $182,371   $191,642   $350,424   $367,219 

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the three-month
period ended		   For the six-month
period ended		 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Drilling and Evaluation Services                    
Compensation  $35,848   $33,848   $72,505   $66,452 
Cost of products, materials, and supplies   17,434    18,126    35,366    35,240 
Transport and rental   23,030    15,631    45,316    31,016 
Depreciation and amortization   11,646    10,666    23,051    21,230 
Other   13,629    14,181    24,222    31,105 
Total  $101,587   $92,452   $200,460   $185,043 

 

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

 

Revenue by geographic area

 

   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
   For the three-month
period ended		   For the six-month
period ended		 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Geographic Area:                    
Domestic (British Virgin Islands)  $-   $-   $-   $- 
MENA   324,699    322,354    626,157    616,082 
Rest of World   2,669    2,615    4,313    5,735 
Total revenue  $327,368   $324,969   $630,470   $621,817 

 

 

Long-lived assets by geographic area

 

   June 30, 2025   December 31, 2024 
   As of 
   June 30, 2025   December 31, 2024 
Geographic area:          
Domestic (British Virgin Islands)  $-   $- 
MENA   414,714    428,353 
Rest of World   9,142    9,793 
Total long-lived assets  $423,856   $438,146