| 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):
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
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|
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|
Three Months Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
|
Sand & Logistics |
|
|
Power |
|
|
Total |
|
|
Sand & Logistics |
|
|
Power |
|
|
Total |
|
Product revenue |
|
$ |
101,228 |
|
|
$ |
2,310 |
|
|
$ |
103,538 |
|
|
$ |
126,328 |
|
|
$ |
280 |
|
|
$ |
126,608 |
|
Service revenue |
|
|
162,670 |
|
|
|
— |
|
|
|
162,670 |
|
|
|
146,355 |
|
|
|
— |
|
|
|
146,355 |
|
Rental revenue |
|
|
— |
|
|
|
26,970 |
|
|
|
26,970 |
|
|
|
— |
|
|
|
15,713 |
|
|
|
15,713 |
|
Total revenue |
|
|
263,898 |
|
|
|
29,280 |
|
|
|
293,178 |
|
|
|
272,683 |
|
|
|
15,993 |
|
|
|
288,676 |
|
Cost of sales (excluding depreciation, depletion and accretion expense) (1) |
|
|
211,085 |
|
|
|
10,212 |
|
|
|
221,297 |
|
|
|
189,956 |
|
|
|
5,948 |
|
|
|
195,904 |
|
Depreciation, depletion and accretion expense (1) |
|
|
40,169 |
|
|
|
5,857 |
|
|
|
46,026 |
|
|
|
38,202 |
|
|
|
2,431 |
|
|
|
40,633 |
|
Gross profit |
|
$ |
12,644 |
|
|
$ |
13,211 |
|
|
$ |
25,855 |
|
|
$ |
44,525 |
|
|
$ |
7,614 |
|
|
$ |
52,139 |
|
Selling, general and administrative expense (including stock-based compensation expense of $8,683 and $8,290 respectively) |
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|
|
|
|
|
|
39,411 |
|
|
|
|
|
|
|
|
|
34,371 |
|
Credit loss expense |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
4,110 |
|
Amortization expense of acquired intangible assets |
|
|
|
|
|
|
|
|
6,441 |
|
|
|
|
|
|
|
|
|
6,465 |
|
Litigation settlement expense, net |
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|
|
|
|
|
|
|
2,550 |
|
|
|
|
|
|
|
|
|
— |
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Operating income (loss) |
|
|
|
|
|
|
|
|
(22,547 |
) |
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|
|
|
|
|
|
|
7,193 |
|
Interest (expense), net |
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|
|
|
|
|
|
|
(16,240 |
) |
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|
|
|
|
|
|
|
(14,798 |
) |
Loss on early payoff of lease financing |
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|
|
|
|
|
|
|
(6,783 |
) |
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|
|
|
|
|
|
|
— |
|
Other income (expense), net |
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|
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
|
|
370 |
|
Loss before income taxes |
|
|
|
|
|
|
|
|
(45,529 |
) |
|
|
|
|
|
|
|
|
(7,235 |
) |
Income tax benefit |
|
|
|
|
|
|
|
|
(20,433 |
) |
|
|
|
|
|
|
|
|
(1,677 |
) |
Net loss |
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|
|
|
|
|
|
$ |
(25,096 |
) |
|
|
|
|
|
|
|
$ |
(5,558 |
) |
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|
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|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
|
Sand & Logistics |
|
|
Power |
|
|
Total |
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|
Sand & Logistics |
|
|
Power |
|
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Total |
|
Product revenue |
|
$ |
206,832 |
|
|
$ |
5,646 |
|
|
$ |
212,478 |
|
|
$ |
265,973 |
|
|
$ |
280 |
|
|
$ |
266,253 |
|
Service revenue |
|
|
301,783 |
|
|
|
— |
|
|
|
301,783 |
|
|
|
296,964 |
|
|
|
— |
|
|
|
296,964 |
|
Rental revenue |
|
|
— |
|
|
|
44,500 |
|
|
|
44,500 |
|
|
|
— |
|
|
|
23,050 |
|
|
|
23,050 |
|
Total revenue |
|
|
508,615 |
|
|
|
50,146 |
|
|
|
558,761 |
|
|
|
562,937 |
|
|
|
23,330 |
|
|
|
586,267 |
|
Cost of sales (excluding depreciation, depletion and accretion expense) (1) |
|
|
417,137 |
|
|
|
18,185 |
|
|
|
435,322 |
|
|
|
393,675 |
|
|
|
8,292 |
|
|
|
401,967 |
|
Depreciation, depletion and accretion expense (1) |
|
|
80,247 |
|
|
|
11,005 |
|
|
|
91,252 |
|
|
|
74,113 |
|
|
|
3,520 |
|
|
|
77,633 |
|
Gross profit |
|
$ |
11,231 |
|
|
$ |
20,956 |
|
|
$ |
32,187 |
|
|
$ |
95,149 |
|
|
$ |
11,518 |
|
|
$ |
106,667 |
|
Selling, general and administrative expense (including stock-based compensation expense of $17,125 and $14,808, respectively) |
|
|
|
|
|
|
|
|
75,157 |
|
|
|
|
|
|
|
|
|
68,783 |
|
Credit loss expense |
|
|
|
|
|
|
|
|
17 |
|
|
|
|
|
|
|
|
|
4,110 |
|
Amortization expense of acquired intangible assets |
|
|
|
|
|
|
|
|
12,812 |
|
|
|
|
|
|
|
|
|
11,250 |
|
Litigation settlement expense, net |
|
|
|
|
|
|
|
|
2,550 |
|
|
|
|
|
|
|
|
|
— |
|
Insurance recovery (gain) |
|
|
|
|
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|
|
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(3,326 |
) |
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|
|
|
|
|
|
|
— |
|
Operating income (loss) |
|
|
|
|
|
|
|
|
(55,023 |
) |
|
|
|
|
|
|
|
|
22,524 |
|
Interest (expense), net |
|
|
|
|
|
|
|
|
(32,024 |
) |
|
|
|
|
|
|
|
|
(26,876 |
) |
Loss on early payoff of lease financing |
|
|
|
|
|
|
|
|
(6,783 |
) |
|
|
|
|
|
|
|
|
— |
|
Other income (expense), net |
|
|
|
|
|
|
|
|
527 |
|
|
|
|
|
|
|
|
|
629 |
|
Loss before income taxes |
|
|
|
|
|
|
|
|
(93,303 |
) |
|
|
|
|
|
|
|
|
(3,723 |
) |
Income tax expense (benefit) |
|
|
|
|
|
|
|
|
(20,943 |
) |
|
|
|
|
|
|
|
|
616 |
|
Net loss |
|
|
|
|
|
|
|
$ |
(72,360 |
) |
|
|
|
|
|
|
|
$ |
(4,339 |
) |
(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):
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|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Sand & Logistics |
|
$ |
2,217,714 |
|
|
$ |
1,946,298 |
|
Power |
|
|
337,553 |
|
|
|
282,130 |
|
Total assets |
|
$ |
2,555,267 |
|
|
$ |
2,228,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Sand & Logistics |
|
$ |
18,363 |
|
|
$ |
33,420 |
|
|
$ |
37,213 |
|
|
$ |
70,144 |
|
Power |
|
|
131,616 |
|
|
|
6,882 |
|
|
|
179,842 |
|
|
|
9,021 |
|
Total capital expenditures incurred |
|
$ |
149,979 |
|
|
$ |
40,302 |
|
|
$ |
217,055 |
|
|
$ |
79,165 |
|
|