v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

15. SEGMENT REPORTING

We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields.

•
Reservoir Description: Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients’ reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. Services associated with these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel and biofuels. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.
•
Production Enhancement: Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.

We use the same accounting policies to prepare our operating segment results as are used to prepare our consolidated financial statements. All interest and other non-operating income (expense) is attributable to Corporate & Other and is not allocated to specific operating segments.

Our chief operating decision maker (“CODM”) is our Chief Executive Officer, who also serves as Chairman of the Board of Directors. The CODM uses revenue from unaffiliated clients and segment operating income to allocate resources, primarily for working capital, staffing and capital expenditures, during the annual budgeting process and monthly when comparing actual results to budgeted and forecasted results.

Summarized financial information of our operating segments is shown in the following table (in thousands):

 

 

 

Reservoir
Description

 

 

Production
Enhancement

 

 

Corporate &
Other (1)

 

 

Consolidated

 

Three months ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

CODM Measure - Revenue from unaffiliated clients

 

$

78,747

 

 

$

45,862

 

 

$

—

 

 

$

124,609

 

Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income:

 

Inter-segment revenue

 

 

51

 

 

 

32

 

 

 

(83

)

 

 

—

 

Cost of services and product sales

 

 

65,335

 

 

 

35,874

 

 

 

162

 

 

 

101,371

 

General and administrative expense (2)

 

 

7,140

 

 

 

3,813

 

 

 

—

 

 

 

10,953

 

Depreciation and amortization

 

 

2,760

 

 

 

1,065

 

 

 

—

 

 

 

3,825

 

Other operating (income) expense, net (3)

 

 

(184

)

 

 

(198

)

 

 

(528

)

 

 

(910

)

Foreign exchange (gain) loss, net (3)

 

 

69

 

 

 

112

 

 

 

38

 

 

 

219

 

CODM Measure - Segment operating income

 

 

3,678

 

 

 

5,228

 

 

 

245

 

 

 

9,151

 

Supplemental Disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

329,630

 

 

 

143,925

 

 

 

113,223

 

 

 

586,778

 

Capital expenditures

 

 

4,625

 

 

 

1,109

 

 

 

35

 

 

 

5,769

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

CODM Measure - Revenue from unaffiliated clients

 

$

86,280

 

 

$

43,879

 

 

$

—

 

 

$

130,159

 

Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income:

 

Inter-segment revenue

 

 

41

 

 

 

46

 

 

 

(87

)

 

 

—

 

Cost of services and product sales

 

 

66,940

 

 

 

36,376

 

 

 

385

 

 

 

103,701

 

General and administrative expense (2)

 

 

6,816

 

 

 

3,648

 

 

 

—

 

 

 

10,464

 

Depreciation and amortization

 

 

2,645

 

 

 

1,025

 

 

 

—

 

 

 

3,670

 

Other operating (income) expense, net (3)

 

 

(2,472

)

 

 

(90

)

 

 

(412

)

 

 

(2,974

)

Foreign exchange (gain) loss, net (3)

 

 

189

 

 

 

(182

)

 

 

—

 

 

 

7

 

CODM Measure - Segment operating income

 

 

12,203

 

 

 

3,148

 

 

 

(60

)

 

 

15,291

 

Supplemental Disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (4)

 

 

316,882

 

 

 

146,907

 

 

 

133,046

 

 

 

596,835

 

Capital expenditures

 

 

3,753

 

 

 

575

 

 

 

—

 

 

 

4,328

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

CODM Measure - Revenue from unaffiliated clients

 

$

160,678

 

 

$

85,728

 

 

$

—

 

 

$

246,406

 

Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income:

 

Inter-segment revenue

 

 

169

 

 

 

61

 

 

 

(230

)

 

 

—

 

Cost of services and product sales

 

 

133,442

 

 

 

69,503

 

 

 

499

 

 

 

203,444

 

General and administrative expense (2)

 

 

17,110

 

 

 

8,561

 

 

 

—

 

 

 

25,671

 

Depreciation and amortization

 

 

5,539

 

 

 

2,050

 

 

 

—

 

 

 

7,589

 

Other operating (income) expense, net (3)

 

 

(615

)

 

 

(329

)

 

 

(991

)

 

 

(1,935

)

Foreign exchange (gain) loss, net (3)

 

 

547

 

 

 

(28

)

 

 

80

 

 

 

599

 

CODM Measure - Segment operating income

 

 

4,824

 

 

 

6,032

 

 

 

182

 

 

 

11,038

 

Supplemental Disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

329,630

 

 

 

143,925

 

 

 

113,223

 

 

 

586,778

 

Capital expenditures

 

 

9,133

 

 

 

1,415

 

 

 

111

 

 

 

10,659

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

CODM Measure - Revenue from unaffiliated clients

 

$

167,177

 

 

$

86,567

 

 

$

—

 

 

$

253,744

 

Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income:

 

Inter-segment revenue

 

 

57

 

 

 

114

 

 

 

(171

)

 

 

—

 

Cost of services and product sales

 

 

131,545

 

 

 

71,137

 

 

 

488

 

 

 

203,170

 

General and administrative expense (2)

 

 

15,854

 

 

 

8,257

 

 

 

—

 

 

 

24,111

 

Depreciation and amortization

 

 

5,260

 

 

 

2,127

 

 

 

—

 

 

 

7,387

 

Other operating (income) expense, net (3)

 

 

(344

)

 

 

448

 

 

 

(1,223

)

 

 

(1,119

)

Foreign exchange (gain) loss, net (3)

 

 

377

 

 

 

61

 

 

 

49

 

 

 

487

 

CODM Measure - Segment operating income

 

 

14,542

 

 

 

4,651

 

 

 

515

 

 

 

19,708

 

Supplemental Disclosures:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (4)

 

 

316,882

 

 

 

146,907

 

 

 

133,046

 

 

 

596,835

 

Capital expenditures

 

 

6,175

 

 

 

1,704

 

 

 

28

 

 

 

7,907

 

(1) "Corporate & Other" represents those items that are not directly related to a particular operating segment and eliminations.

(2) General and administrative expense is presented as a total amount to the CODM and consists primarily of employee compensation costs, professional fees and information technology costs.

(3) Other operating (income) expense, net and foreign currency exchange (loss), net are included in the consolidated statement of operations as other (income) expense, net. See Note 12 - Other (income) expense, net for further details.

(4) Total assets at June 30, 2025 included in the Reservoir Description operating segment have been adjusted for certain prior period immaterial corrections. See Note 2 - Significant Accounting Policies Update.