| 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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Other |
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Eliminations |
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Total |
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Three Months Ended September 30, 2025: |
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Revenue |
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External customers — services |
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$ |
342.7 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
8.5 |
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$ |
351.2 |
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External customers — product sales (1) |
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— |
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20.3 |
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8.6 |
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23.0 |
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— |
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|
51.9 |
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Intercompany (2) |
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|
0.2 |
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|
56.1 |
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39.5 |
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37.8 |
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(133.6 |
) |
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— |
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Total Revenue |
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$ |
342.9 |
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$ |
76.4 |
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$ |
48.1 |
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$ |
60.8 |
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$ |
(125.1 |
) |
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$ |
403.1 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
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|
301.5 |
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|
64.1 |
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|
40.0 |
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|
41.3 |
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(122.8 |
) |
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|
324.1 |
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Selling, general and administrative, excluding stock-based compensation |
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|
22.5 |
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|
4.3 |
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4.5 |
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7.5 |
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— |
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|
38.8 |
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Other income |
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(0.7 |
) |
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— |
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|
— |
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— |
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|
— |
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(0.7 |
) |
Adjusted EBITDA (3) |
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$ |
19.6 |
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|
$ |
8.0 |
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|
$ |
3.6 |
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|
$ |
12.0 |
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|
$ |
(2.3 |
) |
|
$ |
40.9 |
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Depreciation, depletion and amortization |
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|
79.6 |
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|
18.3 |
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|
2.8 |
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|
1.5 |
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0.8 |
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|
103.0 |
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Investment in property, plant & equipment |
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|
27.2 |
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|
7.9 |
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|
1.1 |
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— |
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1.8 |
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38.0 |
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Three Months Ended September 30, 2024: |
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Revenue |
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External customers — services |
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$ |
506.5 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
— |
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|
$ |
— |
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|
$ |
506.5 |
|
External customers — product sales (1) |
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— |
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|
40.1 |
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12.2 |
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16.5 |
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— |
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|
68.8 |
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Intercompany (2) |
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|
0.6 |
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12.7 |
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49.3 |
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34.8 |
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(97.4 |
) |
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— |
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Total Revenue |
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$ |
507.1 |
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|
$ |
52.8 |
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$ |
61.5 |
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$ |
51.3 |
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$ |
(97.4 |
) |
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$ |
575.3 |
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Cost of revenues, exclusive of depreciation, depletion, and amortization |
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|
361.4 |
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|
31.3 |
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54.4 |
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41.0 |
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(97.4 |
) |
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|
390.7 |
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Selling, general and administrative, excluding stock-based compensation |
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|
34.0 |
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|
4.3 |
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7.0 |
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5.5 |
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— |
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|
50.8 |
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Other income |
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(0.9 |
) |
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(0.1 |
) |
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— |
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— |
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— |
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(1.0 |
) |
Adjusted EBITDA (3) |
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$ |
112.6 |
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$ |
17.3 |
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$ |
0.1 |
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$ |
4.8 |
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|
$ |
— |
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$ |
134.8 |
|
Depreciation, depletion and amortization |
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|
88.0 |
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|
19.6 |
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|
4.4 |
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|
0.7 |
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— |
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|
112.7 |
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Investment in property, plant & equipment |
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|
61.3 |
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|
8.1 |
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|
0.3 |
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|
0.3 |
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— |
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|
70.0 |
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As of September 30, 2025: |
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Cash and cash equivalents |
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$ |
48.7 |
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$ |
1.9 |
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$ |
2.7 |
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$ |
4.7 |
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$ |
— |
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$ |
58.0 |
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Total current assets |
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|
433.9 |
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|
60.5 |
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|
308.8 |
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|
94.2 |
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(356.1 |
) |
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|
541.3 |
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Property, plant, and equipment, net (4) |
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|
710.7 |
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|
781.7 |
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|
47.0 |
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41.3 |
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(12.8 |
) |
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1,567.9 |
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Total assets |
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2,894.7 |
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|
865.7 |
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|
463.9 |
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|
288.6 |
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(1,770.5 |
) |
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|
2,742.4 |
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Current portion of long-term debt |
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|
94.1 |
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|
54.1 |
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|
3.6 |
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|
6.8 |
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|
|
— |
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|
158.6 |
|
Long-term debt |
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|
630.9 |
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|
265.7 |
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|
14.7 |
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|
40.3 |
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(40.0 |
) |
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|
911.6 |
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Total liabilities |
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|
1,926.0 |
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|
116.8 |
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|
373.2 |
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|
145.2 |
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|
(840.1 |
) |
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|
1,721.1 |
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Stimulation Services |
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|
Proppant Production |
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Manufacturing |
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Other |
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Eliminations |
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Total |
|
Nine Months Ended September 30, 2025: |
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Revenue |
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|
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|
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|
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External customers — services |
|
$ |
1,298.5 |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
0.1 |
|
|
$ |
8.5 |
|
|
$ |
1,307.1 |
|
External customers — product sales (1) |
|
|
— |
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|
|
95.9 |
|
|
|
29.8 |
|
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|
72.5 |
|
|
|
— |
|
|
|
198.2 |
|
Intercompany (2) |
|
|
0.9 |
|
|
|
125.3 |
|
|
|
139.9 |
|
|
|
115.4 |
|
|
|
(381.5 |
) |
|
|
— |
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Total Revenue |
|
$ |
1,299.4 |
|
|
$ |
221.2 |
|
|
$ |
169.7 |
|
|
$ |
188.0 |
|
|
$ |
(373.0 |
) |
|
$ |
1,505.3 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
|
|
1,039.5 |
|
|
|
164.9 |
|
|
|
138.9 |
|
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|
137.5 |
|
|
|
(362.6 |
) |
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|
1,118.2 |
|
Selling, general and administrative, excluding stock-based compensation |
|
|
86.9 |
|
|
|
15.2 |
|
|
|
15.9 |
|
|
|
22.7 |
|
|
|
— |
|
|
|
140.7 |
|
Other income |
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|
(2.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
(2.6 |
) |
Adjusted EBITDA (3) |
|
$ |
175.3 |
|
|
$ |
41.1 |
|
|
$ |
14.9 |
|
|
$ |
28.1 |
|
|
$ |
(10.4 |
) |
|
$ |
249.0 |
|
Depreciation, depletion and amortization |
|
|
244.0 |
|
|
|
57.2 |
|
|
|
11.3 |
|
|
|
2.8 |
|
|
|
(1.6 |
) |
|
|
313.7 |
|
Investment in property, plant & equipment |
|
|
112.5 |
|
|
|
19.4 |
|
|
|
1.2 |
|
|
|
10.6 |
|
|
|
(10.4 |
) |
|
|
133.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers — services |
|
$ |
1,504.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,504.8 |
|
External customers — product sales (1) |
|
|
— |
|
|
|
147.1 |
|
|
|
36.4 |
|
|
|
47.9 |
|
|
|
— |
|
|
|
231.4 |
|
Intercompany (2) |
|
|
25.2 |
|
|
|
52.9 |
|
|
|
124.5 |
|
|
|
92.7 |
|
|
|
(295.3 |
) |
|
|
— |
|
Total Revenue |
|
$ |
1,530.0 |
|
|
$ |
200.0 |
|
|
$ |
160.9 |
|
|
$ |
140.6 |
|
|
$ |
(295.3 |
) |
|
$ |
1,736.2 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
|
|
1,091.9 |
|
|
|
110.4 |
|
|
|
137.2 |
|
|
|
109.7 |
|
|
|
(291.7 |
) |
|
|
1,157.5 |
|
Selling, general and administrative, excluding stock-based compensation |
|
|
95.1 |
|
|
|
18.2 |
|
|
|
19.1 |
|
|
|
18.1 |
|
|
|
— |
|
|
|
150.5 |
|
Other income |
|
|
(2.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.1 |
) |
Adjusted EBITDA (3) |
|
$ |
345.1 |
|
|
$ |
71.4 |
|
|
$ |
4.6 |
|
|
$ |
12.8 |
|
|
$ |
(3.6 |
) |
|
$ |
430.3 |
|
Depreciation, depletion and amortization |
|
|
258.5 |
|
|
|
59.2 |
|
|
|
9.3 |
|
|
|
2.2 |
|
|
|
(0.3 |
) |
|
|
328.9 |
|
Investment in property, plant & equipment |
|
|
164.0 |
|
|
|
19.4 |
|
|
|
7.9 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
191.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2024: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 zero and $8.9 million for the three months ended September 30, 2025 and 2024, respectively, and $7.6 million and $36.1 million for the nine months ended September 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 $8.7 million and $6.7 million for the three months ended September 30, 2025 and 2024, respectively, and $23.9 million and 23.8 million for the nine months ended September 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 $8.7 million and $6.7 million for the three months ended September 30, 2025 and 2024, respectively, and $23.9 million and $23.8 million for the nine months ended September 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 condensed consolidated 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
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Adjusted EBITDA of reportable segments |
|
$ |
40.9 |
|
|
$ |
134.8 |
|
|
$ |
249.0 |
|
|
$ |
430.3 |
|
Interest expense, net |
|
|
(34.5 |
) |
|
|
(40.6 |
) |
|
|
(105.5 |
) |
|
|
(117.8 |
) |
Depreciation, depletion and amortization |
|
|
(103.0 |
) |
|
|
(112.7 |
) |
|
|
(313.7 |
) |
|
|
(328.9 |
) |
Income tax benefit |
|
|
20.2 |
|
|
|
1.5 |
|
|
|
15.5 |
|
|
|
24.9 |
|
Gain (loss) on disposal of assets, net |
|
|
(5.5 |
) |
|
|
1.4 |
|
|
|
(14.1 |
) |
|
|
2.5 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.8 |
) |
Provision for credit losses, net of recoveries |
|
|
— |
|
|
|
— |
|
|
|
(12.8 |
) |
|
|
— |
|
Stock-based compensation (1) |
|
|
(4.2 |
) |
|
|
(1.1 |
) |
|
|
(7.3 |
) |
|
|
(6.1 |
) |
Lease termination |
|
|
— |
|
|
|
— |
|
|
|
(0.8 |
) |
|
|
— |
|
Transaction costs |
|
|
(1.1 |
) |
|
|
(3.9 |
) |
|
|
(8.3 |
) |
|
|
(3.9 |
) |
Severance charges |
|
|
— |
|
|
|
(0.7 |
) |
|
|
(0.4 |
) |
|
|
(2.5 |
) |
Acquisition and integration costs |
|
|
— |
|
|
|
(2.0 |
) |
|
|
(0.2 |
) |
|
|
(5.1 |
) |
Supply commitment charges |
|
|
— |
|
|
|
(9.4 |
) |
|
|
— |
|
|
|
(9.6 |
) |
Impairment of goodwill |
|
|
— |
|
|
|
(6.8 |
) |
|
|
— |
|
|
|
(74.5 |
) |
Gain (loss) on insurance recoveries |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.3 |
) |
|
|
3.2 |
|
Litigation expenses and accruals for legal contingencies |
|
|
(4.9 |
) |
|
|
(2.9 |
) |
|
|
(9.3 |
) |
|
|
(16.9 |
) |
Loss on investments, net |
|
|
— |
|
|
|
(1.1 |
) |
|
|
(6.8 |
) |
|
|
(0.9 |
) |
Net loss |
|
$ |
(92.4 |
) |
|
$ |
(43.5 |
) |
|
$ |
(215.0 |
) |
|
$ |
(106.1 |
) |
(1)Stock-based compensation is reported in “Selling, general and administrative” in the consolidated statements of operations and is not allocated to the segments.
|