| 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 March 31, 2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers — services |
|
$ |
523.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
523.9 |
|
External customers — product sales (1) |
|
|
— |
|
|
|
43.3 |
|
|
|
8.7 |
|
|
|
24.4 |
|
|
|
— |
|
|
|
76.4 |
|
Intercompany (2) |
|
|
0.7 |
|
|
|
24.0 |
|
|
|
57.1 |
|
|
|
37.7 |
|
|
|
(119.5 |
) |
|
|
— |
|
Total Revenue |
|
$ |
524.5 |
|
|
$ |
67.3 |
|
|
$ |
65.8 |
|
|
$ |
62.2 |
|
|
$ |
(119.5 |
) |
|
$ |
600.3 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
|
|
387.8 |
|
|
|
43.2 |
|
|
|
55.3 |
|
|
|
47.5 |
|
|
|
(114.4 |
) |
|
|
419.4 |
|
Selling, general and administrative, excluding stock-based compensation |
|
|
33.1 |
|
|
|
5.8 |
|
|
|
6.5 |
|
|
|
7.1 |
|
|
|
— |
|
|
|
52.5 |
|
Other expense (income) |
|
|
(1.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(1.1 |
) |
Adjusted EBITDA (3) |
|
$ |
104.6 |
|
|
$ |
18.3 |
|
|
$ |
4.0 |
|
|
$ |
7.7 |
|
|
$ |
(5.1 |
) |
|
$ |
129.5 |
|
Depreciation, depletion and amortization |
|
|
82.4 |
|
|
|
19.2 |
|
|
|
4.6 |
|
|
|
0.7 |
|
|
|
(0.9 |
) |
|
|
106.0 |
|
Investment in property, plant & equipment |
|
|
51.3 |
|
|
|
3.7 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
(3.9 |
) |
|
|
52.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4.7 |
|
|
$ |
3.0 |
|
|
$ |
1.7 |
|
|
$ |
6.6 |
|
|
$ |
— |
|
|
$ |
16.0 |
|
Total current assets |
|
|
568.2 |
|
|
|
61.5 |
|
|
|
295.7 |
|
|
|
95.3 |
|
|
|
(350.9 |
) |
|
|
669.8 |
|
Property, plant, and equipment, net |
|
|
812.4 |
|
|
|
803.5 |
|
|
|
78.4 |
|
|
|
26.7 |
|
|
|
(7.2 |
) |
|
|
1,713.8 |
|
Total assets |
|
|
3,003.0 |
|
|
|
904.3 |
|
|
|
478.5 |
|
|
|
248.3 |
|
|
|
(1,613.2 |
) |
|
|
3,020.9 |
|
Current portion of long-term debt |
|
|
82.0 |
|
|
|
65.6 |
|
|
|
4.2 |
|
|
|
— |
|
|
|
— |
|
|
|
151.8 |
|
Long-term debt |
|
|
695.8 |
|
|
|
262.7 |
|
|
|
16.5 |
|
|
|
— |
|
|
|
— |
|
|
|
975.0 |
|
Total liabilities |
|
|
1,986.1 |
|
|
|
112.9 |
|
|
|
396.6 |
|
|
|
96.0 |
|
|
|
(694.8 |
) |
|
|
1,896.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stimulation Services |
|
|
Proppant Production |
|
|
Manufacturing |
|
|
Other |
|
|
Eliminations |
|
|
Total |
|
Three Months Ended March 31, 2024: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers — services |
|
$ |
505.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
505.4 |
|
External customers — product sales (1) |
|
|
— |
|
|
|
53.3 |
|
|
|
9.6 |
|
|
|
13.2 |
|
|
|
— |
|
|
|
76.1 |
|
Intercompany (2) |
|
|
11.9 |
|
|
|
24.4 |
|
|
|
33.9 |
|
|
|
28.5 |
|
|
|
(98.7 |
) |
|
|
— |
|
Total Revenue |
|
$ |
517.3 |
|
|
$ |
77.7 |
|
|
$ |
43.5 |
|
|
$ |
41.7 |
|
|
$ |
(98.7 |
) |
|
$ |
581.5 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
|
|
362.8 |
|
|
|
42.1 |
|
|
|
33.8 |
|
|
|
32.0 |
|
|
|
(97.0 |
) |
|
|
373.7 |
|
Selling, general and administrative, excluding stock-based compensation |
|
|
29.9 |
|
|
|
7.2 |
|
|
|
5.3 |
|
|
|
6.1 |
|
|
|
— |
|
|
|
48.5 |
|
Other expense (income) |
|
|
(0.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
Adjusted EBITDA (3) |
|
$ |
125.2 |
|
|
$ |
28.4 |
|
|
$ |
4.4 |
|
|
$ |
3.6 |
|
|
$ |
(1.7 |
) |
|
$ |
159.9 |
|
Depreciation, depletion and amortization |
|
|
92.9 |
|
|
|
18.0 |
|
|
|
1.1 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
112.8 |
|
Investment in property, plant & equipment |
|
|
52.7 |
|
|
|
6.4 |
|
|
|
0.6 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
59.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $5.7 million and $16.5 million for the three months ended March 31, 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 $7.5 million and $8.7 million for the three months ended March 31, 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 $7.5 million and $8.7 million for the three months ended March 31, 2025 and 2024, respectively, because this segment did not purchase the minimum contractual commitment of chemistry products from Flotek.
The following table reconciles consolidated Adjusted EBITDA for our reportable segments to net income (loss):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
|
|
2025 |
|
|
2024 |
|
Adjusted EBITDA of reportable segments |
|
$ |
129.5 |
|
|
$ |
159.9 |
|
Interest expense, net |
|
|
(35.9 |
) |
|
|
(37.6 |
) |
Depreciation, depletion and amortization |
|
|
(106.0 |
) |
|
|
(112.8 |
) |
Income tax expense |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
Gain (loss) on disposal of assets, net |
|
|
(3.4 |
) |
|
|
1.4 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
(0.8 |
) |
Stock-based compensation (1) |
|
|
(1.1 |
) |
|
|
(2.1 |
) |
Transaction costs |
|
|
(0.2 |
) |
|
|
— |
|
Severance charges |
|
|
— |
|
|
|
(0.7 |
) |
Acquisition and integration costs |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Supply commitment charges |
|
|
— |
|
|
|
(0.2 |
) |
Litigation expenses and accruals for legal contingencies |
|
|
(1.6 |
) |
|
|
(4.8 |
) |
Unrealized gain on investments, net |
|
|
3.7 |
|
|
|
1.2 |
|
Net income (loss) |
|
$ |
(15.4 |
) |
|
$ |
3.0 |
|
(1)Stock-based compensation is reported in “Selling, general and administrative” in the consolidated statements of operations and is not allocated to the segments.
|