v3.26.1
Business Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segments

Note 15 – Business Segments

The Company has two distinct business segments, the sand and logistics segment and the power segment. The operating segments have been identified based on the Company’s management structure, revenue generating activities, and the financial data utilized by our President and Chief Executive Officer, who is our chief operating decision maker (“CODM”), to assess segment performance and allocate resources among segments.

•
Sand and Logistics: Provides high-quality, locally sourced 100 mesh and 40/70 sand used as a proppant during the well completion process. Also, provides a differentiated logistics platform that includes our fleet of fit-for-purpose trucks, trailers, wellsite equipment, and the Dune Express, an overland conveyor infrastructure solution.
•
Power: Provides distributed power solutions through a fleet of natural gas-powered reciprocating generators primarily supporting production and artificial lift operations.

Our CODM evaluates the performance of our business segments and allocates resources based on segment gross profit (loss). Components within segment gross profit (loss), such as revenues and cost of sales, are used to monitor actual performance. Intersegment transactions have been eliminated in the computation of gross profit and assets.

The following tables summarize selected financial information relating to our business segments (in thousands):

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

 

 

Sand & Logistics

 

 

Power

 

 

Total

 

 

Sand & Logistics

 

 

Power

 

 

Total

 

Product revenue

 

$

105,604

 

 

$

3,336

 

 

$

108,940

 

 

$

139,645

 

 

$

—

 

 

$

139,645

 

Service revenue

 

 

139,113

 

 

 

—

 

 

 

139,113

 

 

 

150,609

 

 

 

—

 

 

 

150,609

 

Rental revenue

 

 

—

 

 

 

17,530

 

 

 

17,530

 

 

 

—

 

 

 

7,337

 

 

 

7,337

 

Total revenue

 

 

244,717

 

 

 

20,866

 

 

 

265,583

 

 

 

290,254

 

 

 

7,337

 

 

 

297,591

 

Cost of sales (excluding depreciation, depletion and accretion expense) (1)

 

 

206,052

 

 

 

7,973

 

 

 

214,025

 

 

 

203,719

 

 

 

2,344

 

 

 

206,063

 

Depreciation, depletion and accretion expense (1)

 

 

40,078

 

 

 

5,148

 

 

 

45,226

 

 

 

35,911

 

 

 

1,089

 

 

 

37,000

 

Gross profit (loss)

 

$

(1,413

)

 

$

7,745

 

 

$

6,332

 

 

$

50,624

 

 

$

3,904

 

 

$

54,528

 

Selling, general and administrative expense (including stock-based compensation expense of $8,442 and $6,518 respectively)

 

 

 

 

 

 

 

 

35,746

 

 

 

 

 

 

 

 

 

34,412

 

Credit loss expense

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

—

 

Amortization expense of acquired intangible assets

 

 

 

 

 

 

 

 

6,371

 

 

 

 

 

 

 

 

 

4,785

 

Insurance recovery (gain)

 

 

 

 

 

 

 

 

(3,326

)

 

 

 

 

 

 

 

 

—

 

Operating income (loss)

 

 

 

 

 

 

 

 

(32,476

)

 

 

 

 

 

 

 

 

15,331

 

Interest (expense), net

 

 

 

 

 

 

 

 

(15,784

)

 

 

 

 

 

 

 

 

(12,078

)

Other income (expense), net

 

 

 

 

 

 

 

 

486

 

 

 

 

 

 

 

 

 

259

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

(47,774

)

 

 

 

 

 

 

 

 

3,512

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

(510

)

 

 

 

 

 

 

 

 

2,293

 

Net income (loss)

 

 

 

 

 

 

 

$

(47,264

)

 

 

 

 

 

 

 

$

1,219

 

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

The following tables reconcile segment total assets and capital expenditures incurred (in thousands):

 

 

March 31, 2026

 

 

December 31, 2025

 

Sand & Logistics

 

$

1,966,392

 

 

$

1,946,298

 

Power

 

 

332,186

 

 

 

282,130

 

Total assets

 

$

2,298,578

 

 

$

2,228,428

 

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Sand & Logistics

 

$

18,850

 

 

$

36,724

 

Power

 

 

48,226

 

 

 

2,139

 

Total capital expenditures incurred

 

$

67,076

 

 

$

38,863