Trade Accounts Receivable

3 Months Ended

Mar. 31, 2026

The following table summarizes our trade accounts receivable from customers as of the dates presented:


	March 31,		December 31,
	2026		2025
Trade accounts receivable
Rentals	$	20,678	$	16,565
Sales and aftermarket services	2,662		2,249
	23,340		18,814
Less: Provision for credit losses	(390)		(317)
Total trade accounts receivable, net	$	22,950	$	18,497

Our trade accounts receivable consist of customer obligations due under normal trade terms for (i) operating leases for the use of our compressor equipment, (ii) the sale of compressor parts, other equipment and rebuild services and (iii) the performance of aftermarket services.

Major Customers and Concentration of Credit Risk

Rental revenue and sales from Occidental Permian, LTD. (“Oxy”) and Devon Energy Corporation (“Devon”) in the three months ended March 31, 2026 and 2025 amounted to 64 percent and 55 percent of revenue on a combined basis, respectively. No other single customer accounted for more than 10 percent of our revenues during these periods. Likewise, Oxy’s and Devon’s accounts receivable balances amounted to 63 percent and 62 percent of our accounts receivable on a combined basis as of March 31, 2026, and December 31, 2025, respectively. No other customers amounted to more than 10 percent of our accounts receivable as of these dates.

Provision for Credit Losses

The following table summarizes the changes in our provision for credit losses for the periods presented:


	Three months ended		Year ended
	March 31,		December 31,
	2026		2025
Beginning balance	$	317	$	1,249
Provision for credit losses	88		155

Write-offs	(15)		(1,087)
Ending balance	$	390	$	317

Management believes that the provision is adequate; however, actual write-offs may exceed the recorded provision. The substantial write-off of the provision for credit losses during the year ended December 31, 2025 reflects certain aged receivables that were no longer deemed collectible.