Segment Information (Tables)

9 Months Ended

Sep. 30, 2025

Segment Information

Schedule of financial information with respect to operating segments

The following table sets forth financial information with respect to our reportable operating segments:

	Three Months Ended
	September 30, 2025
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	249,836	$	407,235	$	141,942	$	35,597	$	834,610	$	(16,420)	$	818,190
Direct costs		(149,156)		(260,004)		(69,186)		(25,449)		(503,795)		11,967		(491,828)
Depreciation and amortization		(62,732)		(82,075)		(10,684)		(2,893)		(158,384)		(1,963)		(160,347)
Other segment expenses (2)		(6,519)		(19,680)		(12,090)		(6,378)		(44,667)		(45,387)		(90,054)
Total adjusted operating income (loss)	$	31,429	$	45,476	$	49,982	$	877	$	127,764
Capital expenditures	$	39,238	$	132,678	$	16,186	$	517	$	188,619	$	(566)	$	188,053

	Nine Months Ended
	September 30, 2025
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	736,020	$	1,173,923	$	405,404	$	116,289	$	2,431,636	$	(44,472)	$	2,387,164
Direct costs		(428,372)		(756,390)		(193,891)		(81,478)		(1,460,131)		32,122		(1,428,009)
Depreciation and amortization		(185,877)		(246,210)		(44,760)		(7,574)		(484,421)		(5,625)		(490,046)
Other segment expenses (2)		(18,955)		(56,838)		(33,493)		(20,304)		(129,590)		(138,453)		(268,043)
Total adjusted operating income (loss) (2)	$	102,816	$	114,485	$	133,260	$	6,933	$	357,494
Capital expenditures	$	107,137	$	368,189	$	57,772	$	1,268	$	534,366	$	2,732	$	537,098

	Three Months Ended
	September 30, 2024
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	254,773	$	368,594	$	79,544	$	45,809	$	748,720	$	(16,915)	$	731,805
Direct costs		(139,702)		(235,402)		(37,353)		(31,702)		(444,159)		12,454		(431,705)
Depreciation and amortization		(66,966)		(83,769)		(5,080)		(3,343)		(159,158)		(76)		(159,234)
Other segment expenses (2)		(6,411)		(17,241)		(7,880)		(8,003)		(39,535)		(38,845)		(78,380)
Total adjusted operating income (loss)	$	41,694	$	32,182	$	29,231	$	2,761	$	105,868
Capital expenditures	$	25,778	$	81,903	$	4,857	$	586	$	113,124	$	4,785	$	117,909

	Nine Months Ended
	September 30, 2024
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total
	(In thousands)
Operating revenues	$	786,485	$	1,074,686	$	238,079	$	145,511	$	2,244,761	$	(44,454)	$	2,200,307
Direct costs		(425,182)		(699,863)		(116,645)		(99,909)		(1,341,599)		32,592		(1,309,007)
Depreciation and amortization		(205,775)		(246,490)		(15,123)		(8,405)		(475,793)		(1,267)		(477,060)
Other segment expenses (2)		(18,220)		(50,003)		(22,868)		(25,367)		(116,458)		(114,052)		(230,510)
Total adjusted operating income (loss) (2)	$	137,308	$	78,330	$	83,443	$	11,830	$	310,911
Capital expenditures	$	87,597	$	251,163	$	12,273	$	4,158	$	355,191	$	13,365	$	368,556

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
	(In thousands)
Reconciliation of segment adjusted operating income (loss) to net income (loss):
Net income (loss)	$	302,466	$	(33,087)	$	357,440	$	(55,118)
Income tax expense (benefit)		117,571		10,118		155,655		41,716
Income (loss) before income taxes		420,037		(22,969)		513,095		(13,402)
Investment (income) loss		(7,323)		(11,503)		(20,048)		(29,885)
Interest expense		54,334		55,350		164,741		157,222
Gain on disposition of Quail Tools		(415,557)		—		(415,557)		—
Gain on bargain purchase		—		—		(116,499)		—
Other, net		24,470		41,608		75,334		69,795
Other reconciling items (1)		51,803		43,382		156,428		127,181
Total segment adjusted operating income (loss) (3)	$	127,764	$	105,868	$	357,494	$	310,911

	September 30,		December 31,
	2025		2024
	(In thousands)
Total assets:
U.S. Drilling	$	1,012,063	$	1,049,650
International Drilling		2,494,424		2,348,590
Drilling Solutions		221,598		79,065
Rig Technologies		166,351		215,225
Total reportable segments		3,894,436		3,692,530
Other reconciling items (4)		939,068		811,771
Total	$	4,833,504	$	4,504,301

(1) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment and unallocated corporate expenses, assets and capital expenditures.

(2) Other segment expenses represent general and administrative expenses and research and engineering expenses.

(3) Management evaluates the performance of our operating segments using adjusted operating income (loss), which is our segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) is provided in the above table.

(4) Represents corporate-related assets.