| Summary of Financial Information for Reportable Segments |
Summarized financial information for our reportable segments is as follows:
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Stimulation Services |
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Proppant Production |
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Manufacturing |
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Flotek |
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Other |
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Eliminations |
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Total |
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Year Ended December 31, 2025: |
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Revenue |
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External customers — services |
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$ |
1,681.8 |
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$ |
— |
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$ |
— |
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|
$ |
— |
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$ |
0.1 |
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$ |
10.8 |
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$ |
1,692.7 |
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External customers — product sales (1) |
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— |
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121.2 |
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37.5 |
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90.4 |
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— |
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— |
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249.1 |
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Intercompany (2) |
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1.1 |
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214.8 |
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174.8 |
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153.2 |
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17.2 |
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(561.1 |
) |
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— |
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Total Revenue |
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$ |
1,682.9 |
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$ |
336.0 |
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$ |
212.3 |
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$ |
243.6 |
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$ |
17.3 |
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$ |
(550.3 |
) |
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$ |
1,941.8 |
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Cost of revenues, exclusive of depreciation, depletion, and amortization |
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|
1,368.1 |
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259.3 |
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174.1 |
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174.8 |
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16.6 |
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(538.3 |
) |
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1,454.6 |
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Selling, general and administrative, excluding stock-based compensation |
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|
108.9 |
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19.7 |
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19.7 |
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30.9 |
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0.9 |
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— |
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180.1 |
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Other expense (income) |
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(2.6 |
) |
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(0.1 |
) |
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— |
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(0.3 |
) |
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— |
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— |
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(3.0 |
) |
Adjusted EBITDA (3) |
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$ |
208.5 |
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$ |
57.1 |
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$ |
18.5 |
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$ |
38.2 |
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$ |
(0.2 |
) |
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$ |
(12.0 |
) |
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$ |
310.1 |
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Depreciation, depletion and amortization |
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321.5 |
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76.6 |
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15.3 |
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3.5 |
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1.8 |
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(2.4 |
) |
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416.3 |
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Investment in property, plant & equipment |
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144.7 |
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23.3 |
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1.9 |
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8.9 |
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3.0 |
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(11.9 |
) |
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169.9 |
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As of December 31, 2025: |
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Cash and cash equivalents |
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$ |
14.0 |
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$ |
1.1 |
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$ |
2.1 |
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$ |
5.7 |
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$ |
— |
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$ |
— |
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$ |
22.9 |
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Total current assets |
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403.1 |
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78.5 |
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315.7 |
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110.4 |
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3.5 |
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(427.7 |
) |
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483.5 |
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Property, plant, and equipment, net (4) |
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669.4 |
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725.6 |
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42.7 |
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29.6 |
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10.4 |
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(13.4 |
) |
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1,464.3 |
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Total assets |
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2,795.6 |
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1,115.8 |
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455.8 |
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266.2 |
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37.0 |
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(2,097.3 |
) |
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2,573.1 |
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Current portion of long-term debt |
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94.1 |
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48.5 |
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3.6 |
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3.5 |
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— |
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— |
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149.7 |
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Long-term debt |
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554.8 |
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266.4 |
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14.6 |
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39.8 |
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— |
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— |
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|
875.6 |
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Total liabilities |
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1,855.2 |
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425.2 |
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378.0 |
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114.2 |
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41.9 |
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(1,122.1 |
) |
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1,692.4 |
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Stimulation Services |
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Proppant Production |
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Manufacturing |
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Flotek |
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Other |
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Eliminations |
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Total |
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Year Ended December 31, 2024: |
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Revenue |
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External customers — services |
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$ |
1,886.7 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
1,886.7 |
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External customers — product sales (1) |
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— |
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|
181.5 |
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|
50.8 |
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71.3 |
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0.6 |
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— |
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304.2 |
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Intercompany (2) |
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27.7 |
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65.0 |
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172.0 |
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121.1 |
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2.5 |
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(388.3 |
) |
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— |
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Total Revenue |
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$ |
1,914.4 |
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$ |
246.5 |
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$ |
222.8 |
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$ |
192.4 |
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$ |
3.1 |
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$ |
(388.3 |
) |
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$ |
2,190.9 |
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Cost of revenues, exclusive of depreciation, depletion, and amortization |
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1,394.8 |
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|
137.6 |
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|
190.5 |
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|
147.5 |
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5.0 |
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(380.3 |
) |
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1,495.1 |
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Selling, general and administrative, excluding stock-based compensation |
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|
123.6 |
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|
23.3 |
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|
24.6 |
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24.8 |
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1.0 |
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|
— |
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|
197.3 |
|
Other expense (income) |
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(2.7 |
) |
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|
— |
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|
0.1 |
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— |
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— |
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— |
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(2.6 |
) |
Adjusted EBITDA (3) |
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$ |
398.7 |
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$ |
85.6 |
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$ |
7.6 |
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$ |
20.1 |
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$ |
(2.9 |
) |
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$ |
(8.0 |
) |
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$ |
501.1 |
|
Depreciation, depletion and amortization |
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|
348.5 |
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|
77.8 |
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|
13.8 |
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|
2.8 |
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— |
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(0.7 |
) |
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$ |
442.2 |
|
Investment in property, plant & equipment |
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|
216.8 |
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|
23.5 |
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|
8.6 |
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|
1.6 |
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|
9.2 |
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(4.7 |
) |
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$ |
255.0 |
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As of December 31, 2024: |
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Cash and cash equivalents |
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$ |
8.7 |
|
|
$ |
— |
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$ |
1.7 |
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$ |
4.4 |
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$ |
— |
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|
$ |
— |
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$ |
14.8 |
|
Total current assets |
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|
466.9 |
|
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|
71.4 |
|
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|
255.3 |
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|
89.9 |
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|
5.4 |
|
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|
(314.8 |
) |
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|
574.1 |
|
Property, plant, and equipment, net (4) |
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|
839.3 |
|
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|
817.6 |
|
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|
82.5 |
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|
16.7 |
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|
9.2 |
|
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|
(4.1 |
) |
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1,761.2 |
|
Total assets |
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|
2,911.3 |
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|
|
929.5 |
|
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|
443.2 |
|
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|
204.7 |
|
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|
44.9 |
|
|
|
(1,545.5 |
) |
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|
2,988.1 |
|
Current portion of long-term debt |
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|
87.5 |
|
|
|
65.5 |
|
|
|
6.8 |
|
|
|
4.8 |
|
|
|
— |
|
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|
— |
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|
164.6 |
|
Long-term debt |
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|
649.1 |
|
|
|
278.0 |
|
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|
17.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
944.4 |
|
Total liabilities |
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|
1,891.4 |
|
|
|
124.2 |
|
|
|
360.7 |
|
|
|
56.2 |
|
|
|
47.7 |
|
|
|
(631.7 |
) |
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|
1,848.5 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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Year Ended December 31, 2023: |
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|
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Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers — services |
|
$ |
2,274.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
2,274.2 |
|
External customers — product sales (1) |
|
|
— |
|
|
|
270.2 |
|
|
|
19.0 |
|
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|
66.6 |
|
|
|
— |
|
|
|
— |
|
|
|
355.8 |
|
Intercompany (2) |
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|
17.0 |
|
|
|
113.1 |
|
|
|
157.1 |
|
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|
126.4 |
|
|
|
— |
|
|
|
(413.6 |
) |
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|
— |
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Total Revenue |
|
$ |
2,291.2 |
|
|
$ |
383.3 |
|
|
$ |
176.1 |
|
|
$ |
193.0 |
|
|
$ |
— |
|
|
$ |
(413.6 |
) |
|
$ |
2,630.0 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
|
|
1,668.9 |
|
|
|
171.6 |
|
|
|
147.0 |
|
|
|
166.2 |
|
|
|
— |
|
|
|
(413.6 |
) |
|
|
1,740.1 |
|
Selling, general and administrative, excluding stock-based compensation |
|
|
147.0 |
|
|
|
13.8 |
|
|
|
14.6 |
|
|
|
28.4 |
|
|
|
— |
|
|
|
— |
|
|
|
203.8 |
|
Other expense (income) |
|
|
(2.1 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.3 |
) |
Adjusted EBITDA (3) |
|
$ |
477.4 |
|
|
$ |
198.1 |
|
|
$ |
14.5 |
|
|
$ |
(1.6 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
688.4 |
|
Depreciation, depletion and amortization |
|
|
363.0 |
|
|
|
68.1 |
|
|
|
4.2 |
|
|
|
3.1 |
|
|
|
— |
|
|
|
— |
|
|
$ |
438.4 |
|
Investment in property, plant & equipment |
|
|
221.8 |
|
|
|
40.9 |
|
|
|
3.3 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
— |
|
|
$ |
267.0 |
|
(1)
Our Proppant Production segment recognized noncash revenue associated with acquired contract liabilities of $7.6 million, $43.7 million and $57.5 million in 2025, 2024 and 2023, respectively.
(2)
Flotek recorded $27.4 million. $32.5 million and $20.1 million of revenue in 2025, 2024 and 2023, 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 stimulated services segment included an intercompany supply commitment charge of $27.4 million, $32.5 million and $20.1 million in 2025, 2024 and 2023, 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. We believe this Flotek partnership provides ownership exposure to a highly-scalable gas quality and asset integrity business. The effects of this sale-leaseback transaction have been eliminated from our consolidated financial statements.
The following table reconciles consolidated Adjusted EBITDA to net income (loss):
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|
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|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Adjusted EBITDA of reportable segments |
|
$ |
310.1 |
|
|
$ |
501.1 |
|
|
$ |
688.4 |
|
Interest expense, net |
|
|
(138.8 |
) |
|
|
(156.6 |
) |
|
|
(154.9 |
) |
Depreciation, depletion and amortization |
|
|
(416.3 |
) |
|
|
(442.2 |
) |
|
|
(438.4 |
) |
Income tax benefit (expense) |
|
|
12.9 |
|
|
|
7.0 |
|
|
|
(1.2 |
) |
Gain (loss) on disposal of assets, net |
|
|
(18.1 |
) |
|
|
(0.3 |
) |
|
|
1.7 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
(0.8 |
) |
|
|
(33.5 |
) |
Acquisition earnout adjustment |
|
|
— |
|
|
|
— |
|
|
|
6.6 |
|
Provision for credit losses, net of recoveries |
|
|
(13.7 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Stock-based compensation (1) |
|
|
(10.4 |
) |
|
|
(7.3 |
) |
|
|
(10.1 |
) |
Stock-based compensation related to deemed contributions (1) |
|
|
— |
|
|
|
— |
|
|
|
(19.7 |
) |
Lease termination |
|
|
(1.1 |
) |
|
|
— |
|
|
|
— |
|
Transaction costs |
|
|
(8.0 |
) |
|
|
(3.9 |
) |
|
|
— |
|
Severance charges |
|
|
(0.4 |
) |
|
|
(2.5 |
) |
|
|
(1.1 |
) |
Acquisition and integration costs |
|
|
(0.2 |
) |
|
|
(7.8 |
) |
|
|
(21.8 |
) |
Supply commitment charges |
|
|
— |
|
|
|
(9.6 |
) |
|
|
— |
|
Impairment of long-lived assets and goodwill |
|
|
(52.6 |
) |
|
|
(74.5 |
) |
|
|
(2.5 |
) |
Inventory write-down |
|
|
(0.8 |
) |
|
|
— |
|
|
|
— |
|
Gain (loss) on insurance recoveries |
|
|
(0.3 |
) |
|
|
4.9 |
|
|
|
— |
|
Litigation expenses and accruals for legal contingencies |
|
|
(11.0 |
) |
|
|
(15.7 |
) |
|
|
(34.1 |
) |
Gain (loss) on investments, net |
|
|
(6.8 |
) |
|
|
0.4 |
|
|
|
(38.5 |
) |
Net loss |
|
$ |
(355.5 |
) |
|
$ |
(207.8 |
) |
|
$ |
(59.2 |
) |
(1)
Stock-based compensation and stock-based compensation related to deemed contributions are reported in “Selling, general and administrative” in the consolidated statements of operations and are not allocated to the segments.
|