Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entity

Variable Interest Entity
3 Months Ended
Mar. 31, 2023
Variable Interest Entity, Measure of Activity [Abstract]  
Variable Interest Entity


As a result of our investment in and contractual relationship with Flotek Industries, Inc. ("Flotek"), Flotek meets the definition of a VIE and we are the primary beneficiary. Accordingly, we have consolidated the operating results, assets and liabilities of Flotek.

As of March 31, 2023 and December 31, 2022, $74.6 million and $79.2 million, respectively, of Flotek's assets and $62.4 million and $72.0 million, respectively, of Flotek's liabilities are included in our unaudited condensed consolidated balance sheets. These amounts are exclusive of goodwill and are after intercompany eliminations. The assets of Flotek can only be used to settle its obligations and the creditors of Flotek have no recourse to our assets. Our exposure to Flotek is generally limited to the carrying value of our variable interest.