Quarterly report [Sections 13 or 15(d)]

Business Segments (Table)

v3.25.2
Business Segments (Table)
6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Summary of Financial Information for Reportable Segments

Summarized financial information for our reportable segments is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stimulation Services

 

 

Proppant Production

 

 

Manufacturing

 

 

Other

 

 

Eliminations

 

 

Total

 

Three Months Ended June 30, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers — services

 

$

432.0

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

432.0

 

External customers — product sales (1)

 

 

 

 

 

32.3

 

 

 

12.5

 

 

 

25.1

 

 

 

 

 

 

69.9

 

Intercompany (2)

 

 

 

 

 

45.2

 

 

 

43.3

 

 

 

39.9

 

 

 

(128.4

)

 

 

 

Total Revenue

 

$

432.0

 

 

$

77.5

 

 

$

55.8

 

 

$

65.0

 

 

$

(128.4

)

 

$

501.9

 

Cost of revenues, exclusive of depreciation, depletion, and amortization

 

 

350.2

 

 

 

57.6

 

 

 

43.6

 

 

 

48.7

 

 

 

(125.4

)

 

 

374.7

 

Selling, general and administrative, excluding stock-based compensation

 

 

31.3

 

 

 

5.1

 

 

 

4.9

 

 

 

8.1

 

 

 

 

 

 

49.4

 

Other expense (income)

 

 

(0.6

)

 

 

 

 

 

 

 

 

(0.2

)

 

 

 

 

 

(0.8

)

Adjusted EBITDA (3)

 

$

51.1

 

 

$

14.8

 

 

$

7.3

 

 

$

8.4

 

 

$

(3.0

)

 

$

78.6

 

Depreciation, depletion and amortization

 

 

82.0

 

 

 

19.7

 

 

 

3.9

 

 

 

0.6

 

 

 

(1.5

)

 

 

104.7

 

Investment in property, plant & equipment

 

 

34.0

 

 

 

7.8

 

 

 

0.1

 

 

 

12.9

 

 

 

(8.3

)

 

 

46.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers — services

 

$

492.9

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

492.9

 

External customers — product sales (1)

 

 

 

 

 

53.7

 

 

 

14.6

 

 

 

18.2

 

 

 

 

 

 

86.5

 

Intercompany (2)

 

 

12.7

 

 

 

15.8

 

 

 

41.3

 

 

 

29.4

 

 

 

(99.2

)

 

 

 

Total Revenue

 

$

505.6

 

 

$

69.5

 

 

$

55.9

 

 

$

47.6

 

 

$

(99.2

)

 

$

579.4

 

Cost of revenues, exclusive of depreciation, depletion, and amortization

 

 

367.7

 

 

 

37.0

 

 

 

49.0

 

 

 

36.7

 

 

 

(97.3

)

 

 

393.1

 

Selling, general and administrative, excluding stock-based compensation

 

 

31.2

 

 

 

6.7

 

 

 

6.8

 

 

 

6.5

 

 

 

 

 

 

51.2

 

Other expense (income)

 

 

(0.6

)

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

(0.5

)

Adjusted EBITDA (3)

 

$

107.3

 

 

$

25.7

 

 

$

0.1

 

 

$

4.4

 

 

$

(1.9

)

 

$

135.6

 

Depreciation, depletion and amortization

 

 

77.6

 

 

 

21.6

 

 

 

3.8

 

 

 

0.7

 

 

 

(0.3

)

 

 

103.4

 

Investment in property, plant & equipment

 

 

50.0

 

 

 

4.9

 

 

 

7.0

 

 

 

 

 

 

 

 

 

61.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

16.2

 

 

$

1.4

 

 

$

3.4

 

 

$

5.0

 

 

$

 

 

$

26.0

 

Total current assets

 

 

500.1

 

 

 

70.4

 

 

 

284.4

 

 

 

82.6

 

 

 

(357.2

)

 

 

580.3

 

Property, plant, and equipment, net (4)

 

 

762.6

 

 

 

791.6

 

 

 

49.0

 

 

 

46.7

 

 

 

(13.9

)

 

 

1,636.0

 

Total assets

 

 

2,946.6

 

 

 

886.6

 

 

 

440.2

 

 

 

254.0

 

 

 

(1,696.7

)

 

 

2,830.7

 

Current portion of long-term debt

 

 

82.2

 

 

 

44.4

 

 

 

4.2

 

 

 

5.2

 

 

 

 

 

 

136.0

 

Long-term debt

 

 

654.1

 

 

 

278.9

 

 

 

14.9

 

 

 

40.3

 

 

 

(40.0

)

 

 

948.2

 

Total liabilities

 

 

1,928.0

 

 

 

113.6

 

 

 

361.6

 

 

 

146.0

 

 

 

(736.8

)

 

 

1,812.4

 

 

 

 

 

Stimulation Services

 

 

Proppant Production

 

 

Manufacturing

 

 

Other

 

 

Eliminations

 

 

Total

 

Six Months Ended June 30, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers — services

 

$

955.8

 

 

$

 

 

$

 

 

$

0.1

 

 

$

 

 

$

955.9

 

External customers — product sales (1)

 

 

 

 

 

75.6

 

 

 

21.2

 

 

 

49.5

 

 

 

 

 

 

146.3

 

Intercompany (2)

 

 

0.7

 

 

 

69.2

 

 

 

100.4

 

 

 

77.6

 

 

 

(247.9

)

 

 

 

Total Revenue

 

$

956.5

 

 

$

144.8

 

 

$

121.6

 

 

$

127.2

 

 

$

(247.9

)

 

$

1,102.2

 

Cost of revenues, exclusive of depreciation, depletion, and amortization

 

 

738.0

 

 

 

100.8

 

 

 

98.9

 

 

 

96.2

 

 

 

(239.8

)

 

 

794.1

 

Selling, general and administrative, excluding stock-based compensation

 

 

64.4

 

 

 

10.9

 

 

 

11.4

 

 

 

15.2

 

 

 

 

 

 

101.9

 

Other expense (income)

 

 

(1.6

)

 

 

 

 

 

 

 

 

(0.3

)

 

 

 

 

 

(1.9

)

Adjusted EBITDA (3)

 

$

155.7

 

 

$

33.1

 

 

$

11.3

 

 

$

16.1

 

 

$

(8.1

)

 

$

208.1

 

Depreciation, depletion and amortization

 

 

164.4

 

 

 

38.9

 

 

 

8.5

 

 

 

1.3

 

 

 

(2.4

)

 

 

210.7

 

Investment in property, plant & equipment

 

 

85.3

 

 

 

11.5

 

 

 

0.1

 

 

 

14.3

 

 

 

(12.2

)

 

 

99.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers — services

 

$

998.3

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

998.3

 

External customers — product sales (1)

 

 

 

 

 

107.0

 

 

 

24.2

 

 

 

31.4

 

 

 

 

 

 

162.6

 

Intercompany (2)

 

 

24.6

 

 

 

40.2

 

 

 

75.2

 

 

 

57.9

 

 

 

(197.9

)

 

 

 

Total Revenue

 

$

1,022.9

 

 

$

147.2

 

 

$

99.4

 

 

$

89.3

 

 

$

(197.9

)

 

$

1,160.9

 

Cost of revenues, exclusive of depreciation, depletion, and amortization

 

 

730.5

 

 

 

79.1

 

 

 

82.8

 

 

 

68.7

 

 

 

(194.3

)

 

 

766.8

 

Selling, general and administrative, excluding stock-based compensation

 

 

61.1

 

 

 

13.9

 

 

 

12.1

 

 

 

12.6

 

 

 

 

 

 

99.7

 

Other expense (income)

 

 

(1.2

)

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

(1.1

)

Adjusted EBITDA (3)

 

$

232.5

 

 

$

54.1

 

 

$

4.5

 

 

$

8.0

 

 

$

(3.6

)

 

$

295.5

 

Depreciation, depletion and amortization

 

 

170.5

 

 

 

39.6

 

 

 

4.9

 

 

 

1.5

 

 

 

(0.3

)

 

 

216.2

 

Investment in property, plant & equipment

 

 

102.7

 

 

 

11.3

 

 

 

7.6

 

 

 

0.2

 

 

 

 

 

 

121.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

8.7

 

 

$

 

 

$

1.7

 

 

$

4.4

 

 

$

 

 

$

14.8

 

Total current assets

 

 

466.9

 

 

 

71.4

 

 

 

255.3

 

 

 

95.3

 

 

 

(314.8

)

 

 

574.1

 

Property, plant, and equipment, net

 

 

839.3

 

 

 

817.6

 

 

 

82.5

 

 

 

25.9

 

 

 

(4.1

)

 

 

1,761.2

 

Total assets

 

 

2,911.3

 

 

 

929.5

 

 

 

443.2

 

 

 

249.6

 

 

 

(1,545.5

)

 

 

2,988.1

 

Current portion of long-term debt

 

 

87.5

 

 

 

65.5

 

 

 

6.8

 

 

 

4.8

 

 

 

 

 

 

164.6

 

Long-term debt

 

 

649.1

 

 

 

278.0

 

 

 

17.3

 

 

 

 

 

 

 

 

 

944.4

 

Total liabilities

 

 

1,891.4

 

 

 

124.2

 

 

 

360.7

 

 

 

103.9

 

 

 

(631.7

)

 

 

1,848.5

 

 

(1)
Our Proppant Production segment recognized noncash revenue associated with acquired contract liabilities of $1.9 million and $10.9 million for the three months ended June 30, 2025 and 2024, respectively, and $7.6 million and $27.4 million for the six months ended June 30, 2025 and 2024 respectively. Refer to Item 8 "Financial Statements and Supplementary Data" in our Annual Report for information about our acquired contract liabilities.
(2)
In our other business activities, Flotek recorded revenue of $7.7 million and $8.4 million for the three months ended June 30, 2025 and 2024, respectively, related to contract shortfalls because the Stimulation Services segment did not purchase the minimum contractual commitment of chemistry products from Flotek.
(3)
Adjusted EBITDA for the Stimulation Services segment included an intercompany supply commitment charge of $7.7 million and $8.4 million for the three months ended June 30, 2025 and 2024, respectively, and $15.2 million and $17.1 million for the six months ended June 30, 2025 and 2024, respectively, because this segment did not purchase the minimum contractual commitment of chemistry products from Flotek.
(4)
In April 2025, Flotek acquired certain gas conditioning equipment from our Stimulation Services segment for total consideration of $107.5 million and our Stimulation Services segment leased these assets back from Flotek for a six year term. The effects of this sale-leaseback transaction have been eliminated from our consolidation financial statements. The assets have been recorded by Flotek, and reflected in our other business activities, at the previous carrying values recorded by our Stimulation Services segment due to this transaction being conducted by entities under common control.

 

The following table reconciles consolidated Adjusted EBITDA for our reportable segments to net income (loss):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Adjusted EBITDA of reportable segments

 

$

78.6

 

 

$

135.6

 

 

$

208.1

 

 

$

295.5

 

Interest expense, net

 

 

(35.1

)

 

 

(39.6

)

 

 

(71.0

)

 

 

(77.2

)

Depreciation, depletion and amortization

 

 

(104.7

)

 

 

(103.4

)

 

 

(210.7

)

 

 

(216.2

)

Income tax benefit (expense)

 

 

(4.4

)

 

 

23.7

 

 

 

(4.7

)

 

 

23.4

 

Gain (loss) on disposal of assets, net

 

 

(5.2

)

 

 

(0.3

)

 

 

(8.6

)

 

 

1.1

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(0.8

)

Provision for credit losses, net of recoveries

 

 

(12.8

)

 

 

 

 

 

(12.8

)

 

 

 

Stock-based compensation (1)

 

 

(2.0

)

 

 

(2.9

)

 

 

(3.1

)

 

 

(5.0

)

Lease termination

 

 

(0.8

)

 

 

 

 

 

(0.8

)

 

 

 

Transaction costs

 

 

(3.3

)

 

 

 

 

 

(3.5

)

 

 

 

Severance charges

 

 

(0.4

)

 

 

(1.1

)

 

 

(0.4

)

 

 

(1.8

)

Acquisition and integration costs

 

 

(0.1

)

 

 

(2.9

)

 

 

(0.2

)

 

 

(3.1

)

Supply commitment charges

 

 

 

 

 

 

 

 

 

 

 

(0.2

)

Impairment of goodwill

 

 

 

 

 

(67.7

)

 

 

 

 

 

(67.7

)

Gain on insurance recoveries

 

 

 

 

 

3.2

 

 

 

 

 

 

3.2

 

Litigation expenses and accruals for legal contingencies

 

 

(2.8

)

 

 

(9.2

)

 

 

(4.4

)

 

 

(14.0

)

Gain (loss) on investments, net

 

 

(10.5

)

 

 

(1.0

)

 

 

(6.8

)

 

 

0.2

 

Net loss

 

$

(103.5

)

 

$

(65.6

)

 

$

(118.9

)

 

$

(62.6

)

(1)
Stock-based compensation is reported in “Selling, general and administrative” in the consolidated statements of operations and is not allocated to the segments.