v3.26.1
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
NOTE 12 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
Description of the Business
We are a performance-driven drilling solutions and technologies company based in Tulsa, Oklahoma with operations in all major U.S. onshore oil and gas producing basins as well as the Middle East, Europe, Latin America, and Australia. Our drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. We believe we are the recognized industry leader in drilling as well as technological innovation. We focus on offering our customers an integrated solutions-based approach by combining proprietary rig technology, automation software, and digital expertise into our rig operations rather than a product-based offering, such as a rig or separate technology package. Our drilling services operations are organized into the following reportable operating business segments: North America Solutions, International Solutions, and Offshore Solutions. 
Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. External revenues included in “Other” primarily consist of rental, manufacturing and engineering services income.
Segment Performance
In March 2026, we named a new Chief Executive Officer, Raymond John Adams III, who now serves as our chief operating decision maker ("CODM"). Our CODM evaluates segment performance and allocates resources based on segment operating income (loss) before income taxes. Components within segment operating income (loss), such as operating revenues and direct operating expenses, are used to monitor actual performance against forecasted results for each segment.
Segment operating income (loss) before income taxes includes:
•Revenues from external and internal customers
•Direct operating costs
•Depreciation and amortization
•Research and development
•Allocated general and administrative expenses
▪Acquisition transaction and integration costs
•Asset impairment charges
•Restructuring charges
but excludes gain on involuntary conversion, gain on reimbursement of drilling equipment, other gain (loss) on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges.
General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods may be used which we believe to be a reasonable reflection of the utilization of services provided.
Summarized financial information of our reportable segments for the three and nine months ended June 30, 2026 and 2025 is shown in the following tables:
Three Months Ended June 30, 2026
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers$562,565 $249,907 $174,409 $986,881 
Intersegment revenues337 210 — 547 
Total revenues562,902 250,117 174,409 987,428 
Reconciliation of revenues:
All other revenues69,765 
Elimination of intersegment revenues(22,337)
Total consolidated revenues1,034,856 
Less1:
Direct operating expenses321,686 219,064 145,191 685,941 
Depreciation & amortization83,214 74,547 11,023 168,784 
Research and development6,015 — — 6,015 
Selling, general and administrative costs11,282 9,097 1,337 21,716 
Acquisition transaction and integration costs
— 186 — 186 
Asset impairment charge— 1,153 — 1,153 
Restructuring charges393 498 58 949 
Segment operating income (loss)140,312 (54,428)16,800 102,684 
Reconciliation of segment operating income (loss):
All other operating income1,344 
Elimination of intersegment income1,528 
Segment operating income105,556 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
Nine Months Ended June 30, 2026
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers$1,643,150 $697,222 $534,069 $2,874,441 
Intersegment revenues935 5,504 — 6,439 
Total revenues1,644,085 702,726 534,069 2,880,880 
Reconciliation of revenues:
All other revenues176,278 
Elimination of intersegment revenues(72,914)
Total consolidated revenues2,984,244 
Less1:
Direct operating expenses948,857 631,463 446,966 2,027,286 
Depreciation & amortization250,413 231,925 31,705 514,043 
Research and development19,538 — — 19,538 
Selling, general and administrative costs38,705 17,491 5,035 61,231 
Acquisition transaction and integration costs
— 1,820 925 2,745 
Asset impairment charge97,922 27,254 2,128 127,304 
Restructuring charges795 2,118 58 2,971 
Segment operating income (loss)287,855 (209,345)47,252 125,762 
Reconciliation of segment operating income (loss):
All other operating loss(7,276)
Elimination of intersegment loss(1,774)
Segment operating income116,712 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
Three Months Ended June 30, 2025
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers$591,976 $265,099 $161,777 $1,018,852 
Intersegment revenues238 704 — 942 
Total revenues592,214 265,803 161,777 1,019,794 
Reconciliation of revenues:
All other revenues42,898 
Elimination of intersegment revenues(21,768)
Total consolidated revenues1,040,924 
Less1:
Direct operating expenses326,042 231,695 139,004 696,741 
Depreciation & amortization88,078 66,734 12,681 167,493 
Research and development7,617 — — 7,617 
Selling, general and administrative costs10,972 5,014 1,294 17,280 
Acquisition transaction and integration costs
7 141 — 148 
Asset impairment charge— 128,352 — 128,352 
Restructuring charges1,849 380 29 2,258 
Segment operating income (loss)157,649 (166,513)8,769 (95)
Reconciliation of segment operating income (loss):
All other operating loss
(70,004)
Elimination of intersegment income6,114 
Segment operating loss(63,985)
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
Nine Months Ended June 30, 2025
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers$1,789,350 $560,319 $340,067 $2,689,736 
Intersegment revenues703 873 — 1,576 
Total revenues1,790,053 561,192 340,067 2,691,312 
Reconciliation of revenues:
All other revenues107,704 
Elimination of intersegment revenues(64,751)
Total consolidated revenues2,734,265 
Less1:
Direct operating expenses992,462 507,106 284,569 1,784,137 
Depreciation & amortization263,565 128,715 22,438 414,718 
Research and development26,560 — — 26,560 
Selling, general and administrative costs42,266 12,268 3,322 57,856 
Acquisition transaction and integration costs
41 351 60 452 
Asset impairment charge1,507 128,352 — 129,859 
Restructuring charges1,849 380 29 2,258 
Segment operating income (loss)461,803 (215,980)29,649 275,472 
Reconciliation of segment operating income (loss):
All other operating loss
(70,605)
Elimination of intersegment loss
(2,247)
Segment operating income202,620 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
The following table reconciles segment operating income per the tables above to income (loss) before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Nine Months Ended June 30,
(in thousands)2026202520262025
Segment operating income (loss)$105,556 $(63,985)$116,712 $202,620 
Gain on involuntary conversion13,581 — 13,581 — 
Gain on reimbursement of drilling equipment6,036 6,773 18,099 26,149 
Other gain (loss) on sale of assets120,044 (1,347)119,423 (2,136)
Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges
(57,006)(69,710)(176,435)(221,853)
Operating income (loss)188,211 (128,269)91,380 4,780 
Other income (expense)
Interest and dividend income2,280 2,856 7,193 31,854 
Interest expense(24,439)(29,200)(75,860)(79,836)
Gain (loss) on investment securities(16,007)(337)(687)14,084 
Foreign currency exchange gain (loss)1,885 (9,216)4,864 (16,137)
Other(1,411)31,258 (6,664)33,214 
Total other income (expense)(37,692)(4,639)(71,154)(16,821)
Income (loss) before income taxes$150,519 $(132,908)$20,226 $(12,041)
The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets:
(in thousands)June 30, 2026September 30, 2025
Total assets1
North America Solutions$2,751,463 $2,957,139 
International Solutions2,313,972 2,426,613 
Offshore Solutions690,754 714,708 
Other307,406 360,037 
6,063,595 6,458,497 
Investments and corporate operations223,179 247,241 
$6,286,774 $6,705,738 
(1)Assets by segment exclude investments in subsidiaries and intersegment activity.
The following table presents revenues from external customers by country based on the location of service provided:
Three Months Ended June 30,Nine months ended June 30,
(in thousands)2026202520262025
Operating revenues
United States$592,664 $659,364 $1,738,869 $1,876,295 
Norway90,058 82,854 264,771 161,159 
Saudi Arabia74,258 103,752 206,140 201,673 
Oman65,611 45,089 196,475 114,709 
Azerbaijan44,758 38,922 143,390 81,681 
Argentina50,240 39,634 121,767 119,245 
Other foreign117,267 71,309 312,832 179,503 
Total$1,034,856 $1,040,924 $2,984,244 $2,734,265 
The following table presents property, plant and equipment by country based on the location of service provided:
(in thousands)June 30, 2026September 30, 2025
Property, plant and equipment, net
United States$2,240,325 $2,503,045 
Saudi Arabia895,012 971,440 
Oman389,332 445,706 
Other Foreign340,663 392,883 
Total$3,865,332 $4,313,074