| 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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Three Months Ended June 30, 2026: |
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Revenue |
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External customers — services |
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$ |
429.5 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
1.4 |
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$ |
430.9 |
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External customers — product sales (1) |
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— |
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15.2 |
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8.8 |
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43.2 |
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— |
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— |
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67.2 |
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Intercompany (2) |
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— |
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106.1 |
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39.0 |
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58.6 |
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3.6 |
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(207.3 |
) |
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— |
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Total Revenue |
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$ |
429.5 |
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$ |
121.3 |
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$ |
47.8 |
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$ |
101.8 |
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$ |
3.6 |
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$ |
(205.9 |
) |
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$ |
498.1 |
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Cost of revenues, exclusive of depreciation, depletion, and amortization (3) |
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365.7 |
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109.8 |
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38.6 |
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74.9 |
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3.2 |
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(204.1 |
) |
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388.1 |
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Selling, general and administrative, excluding stock-based compensation |
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24.5 |
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5.2 |
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3.1 |
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7.8 |
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— |
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— |
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40.6 |
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Other income |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Adjusted EBITDA |
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$ |
39.3 |
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$ |
6.3 |
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$ |
6.1 |
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$ |
19.1 |
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$ |
0.4 |
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$ |
(1.8 |
) |
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$ |
69.4 |
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Depreciation, depletion and amortization |
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75.2 |
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18.6 |
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2.8 |
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1.0 |
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0.8 |
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(1.4 |
) |
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97.0 |
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Investment in property, plant & equipment |
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29.3 |
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3.1 |
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0.1 |
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1.9 |
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— |
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(2.7 |
) |
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31.7 |
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Three Months Ended June 30, 2025: |
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Revenue |
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External customers — services |
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$ |
432.0 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
432.0 |
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External customers — product sales (1) |
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— |
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32.3 |
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12.5 |
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25.1 |
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— |
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— |
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69.9 |
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Intercompany (2) |
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— |
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45.2 |
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43.3 |
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34.7 |
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5.2 |
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(128.4 |
) |
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— |
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Total Revenue |
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$ |
432.0 |
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$ |
77.5 |
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$ |
55.8 |
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$ |
59.8 |
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$ |
5.2 |
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$ |
(128.4 |
) |
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$ |
501.9 |
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Cost of revenues, exclusive of depreciation, depletion, and amortization |
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350.2 |
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57.6 |
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43.6 |
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43.6 |
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5.1 |
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(125.4 |
) |
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374.7 |
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Selling, general and administrative, excluding stock-based compensation |
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31.3 |
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5.1 |
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4.9 |
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7.7 |
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0.4 |
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— |
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49.4 |
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Other income |
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(0.6 |
) |
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— |
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— |
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(0.2 |
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— |
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— |
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(0.8 |
) |
Adjusted EBITDA (3) |
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$ |
51.1 |
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$ |
14.8 |
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$ |
7.3 |
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$ |
8.7 |
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$ |
(0.3 |
) |
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$ |
(3.0 |
) |
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$ |
78.6 |
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Depreciation, depletion and amortization |
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|
82.0 |
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19.7 |
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3.9 |
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0.6 |
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— |
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(1.5 |
) |
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104.7 |
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Investment in property, plant & equipment |
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34.0 |
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7.8 |
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0.1 |
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7.2 |
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2.0 |
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(8.3 |
) |
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42.8 |
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As of June 30, 2026: |
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Cash and cash equivalents |
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$ |
10.3 |
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$ |
2.5 |
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$ |
1.6 |
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$ |
4.4 |
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$ |
— |
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$ |
— |
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$ |
18.8 |
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Total current assets |
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464.5 |
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|
78.6 |
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|
325.2 |
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158.0 |
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6.0 |
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(460.2 |
) |
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572.1 |
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Property, plant, and equipment, net |
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|
591.1 |
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|
697.0 |
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|
38.1 |
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31.8 |
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8.8 |
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(16.0 |
) |
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1,350.8 |
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Total assets |
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2,756.0 |
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|
1,089.5 |
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|
467.2 |
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|
311.0 |
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|
33.8 |
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(2,149.6 |
) |
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2,507.9 |
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Current portion of long-term debt |
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|
88.7 |
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|
62.3 |
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|
3.8 |
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|
10.5 |
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— |
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— |
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|
165.3 |
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Long-term debt |
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|
626.9 |
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|
237.3 |
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|
14.2 |
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39.8 |
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— |
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— |
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|
918.2 |
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Total liabilities |
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1,956.8 |
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|
445.1 |
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|
382.9 |
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|
138.8 |
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|
40.0 |
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(1,172.8 |
) |
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1,790.8 |
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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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Six Months Ended June 30, 2026: |
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Revenue |
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External customers — services |
|
$ |
836.5 |
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|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
4.7 |
|
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$ |
841.2 |
|
External customers — product sales (1) |
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|
— |
|
|
|
29.3 |
|
|
|
15.8 |
|
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|
61.4 |
|
|
|
— |
|
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|
— |
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|
106.5 |
|
Intercompany (2) |
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|
— |
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|
|
211.6 |
|
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|
80.4 |
|
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|
112.7 |
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|
6.5 |
|
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|
(411.2 |
) |
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|
— |
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Total Revenue |
|
$ |
836.5 |
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|
$ |
240.9 |
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|
$ |
96.2 |
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$ |
174.1 |
|
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$ |
6.5 |
|
|
$ |
(406.5 |
) |
|
$ |
947.7 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization |
|
|
715.0 |
|
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|
218.3 |
|
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|
76.7 |
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|
128.5 |
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|
6.2 |
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(402.2 |
) |
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|
742.5 |
|
Selling, general and administrative, excluding stock-based compensation |
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|
50.2 |
|
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|
9.8 |
|
|
|
6.6 |
|
|
|
15.2 |
|
|
|
— |
|
|
|
— |
|
|
|
81.8 |
|
Other expense (income) |
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|
— |
|
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|
— |
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|
— |
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|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA (3) |
|
$ |
71.3 |
|
|
$ |
12.8 |
|
|
$ |
12.9 |
|
|
$ |
30.4 |
|
|
$ |
0.3 |
|
|
$ |
(4.3 |
) |
|
$ |
123.4 |
|
Depreciation, depletion and amortization |
|
|
150.3 |
|
|
|
37.3 |
|
|
|
5.6 |
|
|
|
2.0 |
|
|
|
1.6 |
|
|
|
(2.7 |
) |
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|
194.1 |
|
Investment in property, plant & equipment |
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|
65.3 |
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|
8.0 |
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|
0.3 |
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|
4.1 |
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|
— |
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(5.3 |
) |
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|
72.4 |
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|
|
|
|
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Six Months Ended June 30, 2025: |
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Revenue |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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External customers — services |
|
$ |
955.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
955.9 |
|
External customers — product sales (1) |
|
|
— |
|
|
|
75.6 |
|
|
|
21.2 |
|
|
|
49.5 |
|
|
|
(0.0 |
) |
|
|
— |
|
|
|
146.3 |
|
Intercompany (2) |
|
|
0.7 |
|
|
|
69.2 |
|
|
|
100.4 |
|
|
|
67.1 |
|
|
|
10.5 |
|
|
|
(247.9 |
) |
|
|
— |
|
Total Revenue |
|
$ |
956.5 |
|
|
$ |
144.8 |
|
|
$ |
121.6 |
|
|
$ |
116.6 |
|
|
$ |
10.6 |
|
|
$ |
(247.9 |
) |
|
$ |
1,102.2 |
|
Cost of revenues, exclusive of depreciation, depletion, and amortization (3) |
|
|
738.0 |
|
|
|
100.8 |
|
|
|
98.9 |
|
|
|
86.1 |
|
|
|
10.1 |
|
|
|
(239.8 |
) |
|
|
794.1 |
|
Selling, general and administrative, excluding stock-based compensation |
|
|
64.4 |
|
|
|
10.9 |
|
|
|
11.4 |
|
|
|
14.1 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
101.9 |
|
Other expense (income) |
|
|
(1.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.9 |
) |
Adjusted EBITDA |
|
$ |
155.7 |
|
|
$ |
33.1 |
|
|
$ |
11.3 |
|
|
$ |
16.7 |
|
|
$ |
(0.6 |
) |
|
$ |
(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 |
|
|
|
7.6 |
|
|
|
3.0 |
|
|
|
(12.2 |
) |
|
$ |
95.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14.0 |
|
|
$ |
1.1 |
|
|
$ |
2.1 |
|
|
$ |
5.7 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
22.9 |
|
Total current assets |
|
|
403.1 |
|
|
|
78.5 |
|
|
|
315.7 |
|
|
|
110.4 |
|
|
|
3.5 |
|
|
|
(427.7 |
) |
|
|
483.5 |
|
Property, plant, and equipment, net (4) |
|
|
669.4 |
|
|
|
725.6 |
|
|
|
42.7 |
|
|
|
29.6 |
|
|
|
10.4 |
|
|
|
(13.4 |
) |
|
|
1,464.3 |
|
Total assets |
|
|
2,795.6 |
|
|
|
1,115.8 |
|
|
|
455.8 |
|
|
|
266.2 |
|
|
|
37.0 |
|
|
|
(2,097.3 |
) |
|
|
2,573.1 |
|
Current portion of long-term debt |
|
|
94.1 |
|
|
|
48.5 |
|
|
|
3.6 |
|
|
|
3.5 |
|
|
|
— |
|
|
|
— |
|
|
|
149.7 |
|
Long-term debt |
|
|
554.8 |
|
|
|
266.4 |
|
|
|
14.6 |
|
|
|
39.8 |
|
|
|
— |
|
|
|
— |
|
|
|
875.6 |
|
Total liabilities |
|
|
1,855.2 |
|
|
|
425.2 |
|
|
|
378.0 |
|
|
|
114.2 |
|
|
|
41.9 |
|
|
|
(1,122.1 |
) |
|
|
1,692.4 |
|
(1)
Our Proppant Production segment recognized noncash revenue associated with acquired contract liabilities of zero and $1.9 million for the three months ended June 30, 2026 and 2025, respectively and zero and $7.6 million for the six months ended June 30, 2026 and 2025, 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 $1.2 million and $7.7 million for the three months ended June 30, 2026 and 2025, respectively, and $3.9 million and $15.2 million for the six months ended June 30, 2026 and 2025, respectively, related to contract shortfalls because the Stimulation Services segment did not purchase the minimum contractual commitment of chemistry products from Flotek.
(3)
Cost of revenues, exclusive of depreciation, depletion, and amortization, for the Stimulation Services segment included an intercompany supply commitment charge of $1.2 million and $7.7 million for the three months ended June 30, 2026 and 2025, respectively, and $3.9 million and $15.2 million for the six months ended June 30, 2026 and 2025, 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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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Adjusted EBITDA |
|
$ |
69.4 |
|
|
$ |
78.6 |
|
|
$ |
123.4 |
|
|
$ |
208.1 |
|
Interest expense, net |
|
|
(33.2 |
) |
|
|
(35.1 |
) |
|
|
(66.0 |
) |
|
|
(71.0 |
) |
Depreciation, depletion and amortization |
|
|
(97.0 |
) |
|
|
(104.7 |
) |
|
|
(194.1 |
) |
|
|
(210.7 |
) |
Income tax expense |
|
|
(3.6 |
) |
|
|
(4.4 |
) |
|
|
(5.2 |
) |
|
|
(4.7 |
) |
Loss on disposal of assets, net |
|
|
(4.5 |
) |
|
|
(5.2 |
) |
|
|
(2.5 |
) |
|
|
(8.6 |
) |
Provision for credit losses, net of recoveries |
|
|
— |
|
|
|
(12.8 |
) |
|
|
— |
|
|
|
(12.8 |
) |
Stock-based compensation (1) |
|
|
(3.1 |
) |
|
|
(2.0 |
) |
|
|
(5.5 |
) |
|
|
(3.1 |
) |
Field restructuring costs |
|
|
(1.6 |
) |
|
|
— |
|
|
|
(1.6 |
) |
|
|
— |
|
Lease termination |
|
|
— |
|
|
|
(0.8 |
) |
|
|
(0.2 |
) |
|
|
(0.8 |
) |
Transaction costs |
|
|
(0.1 |
) |
|
|
(7.0 |
) |
|
|
(0.4 |
) |
|
|
(7.2 |
) |
Severance charges |
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
Acquisition and integration costs |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.2 |
) |
Litigation expenses |
|
|
(1.0 |
) |
|
|
(2.8 |
) |
|
|
(3.4 |
) |
|
|
(4.4 |
) |
Loss on investments, net |
|
|
— |
|
|
|
(10.5 |
) |
|
|
— |
|
|
|
(6.8 |
) |
Net loss |
|
$ |
(74.7 |
) |
|
$ |
(107.2 |
) |
|
$ |
(155.5 |
) |
|
$ |
(122.6 |
) |
(1)Stock-based compensation is reported in “Selling, general and administrative” in the unaudited condensed consolidated statements of operations and is not allocated to the segments.
|