v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Financial Instruments

Investments

We retained an interest in our former subsidiary, CSI Compressco LP (“CSI Compressco’), which was acquired by Kodiak Gas Services, Inc. (“Kodiak”) on April 1, 2024, and we received shares of Kodiak in exchange for our common units in CSI Compressco in connection with such acquisition. In January 2025, we sold our Kodiak shares for proceeds of $19.0 million, net of transaction and broker fees.

Our investment in Standard Lithium is recorded in investments on our condensed consolidated balance sheets based on the quoted market stock price (Level 1 fair value measurements). The stock component of consideration received from Standard Lithium is initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. Changes in the value of stock are recorded in other (income) expense, net in our consolidated statements of operations.

We also hold investments in convertible notes, common units, and preferred units issued by two privately-held companies. The convertible note includes an option to convert the note into equity interests. Our investment in certain preferred units as of June 30, 2026 and December 31, 2025 were recorded based on internal valuations with assistance from a third-party valuation specialist, including reference to observable market-based inputs for preferred units issued to several investors during October 2025 through March 2026 (Level 3 fair value measurement). Our investment in convertible notes, embedded option and common units are recorded in our consolidated financial statements based on internal valuations with assistance from a third-party valuation specialist (Level 3 fair value measurement). The valuations are impacted by key assumptions, including the assumed probability and timing of potential debt or equity offerings. The change in the fair value of the embedded option, as well as the preferred units and common units, are included in other (income) expense, net in our consolidated statements of operations. The change in the fair value of the convertible note, excluding the embedded option, is included in other comprehensive income (loss) in our consolidated statements of comprehensive income.

The change in our investments for the three and six months ended June 30, 2026 and June 30, 2025 are as follows:
Three Months Ended June 30, 2026
Fair Value Measurements Using
Quoted Prices in Active Markets for Identical Assets or LiabilitiesSignificant Unobservable Inputs
(Level 1)(Level 3)Total
(in thousands)
Investment balance at beginning of period
$2,728 $8,766 $11,494 
Unrealized loss on equity securities
(528)(7)(535)
Unrealized gain on embedded option
— 370 370 
Unrealized loss on convertible note, excluding embedded option
— (239)(239)
Investment balance at end of period
$2,200 $8,890 $11,090 
Three Months Ended June 30, 2025
Fair Value Measurements Using
Quoted Prices in Active Markets for Identical Assets or LiabilitiesSignificant Unobservable Inputs
(Level 1)(Level 3)Total
(in thousands)
Investment balance at beginning of period$1,016 $8,670 $9,686 
Unrealized gain (loss) on equity securities
552 (191)361 
Unrealized loss on embedded option— (660)(660)
Unrealized loss on convertible note, excluding embedded option— (416)(416)
Investment balance at end of period$1,568 $7,403 $8,971