Assets Held for Sale

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

Note 4 — Assets Held for Sale

Assets held for sale include the net book value of assets the Company plans to sell within the next 12 months and are primarily related to excess non-working assets. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value less estimated costs to sell.

As of December 31, 2025 and 2024, the Company classified $0.3 million and $0.8 million, respectively, of idle high specification rigs within our broader rig portfolio as held for sale as they are being actively marketed.

For the years ended December 31, 2025 and 2024, the Company recognized a gain on sale of assets of $1.4 million and $2.2 million, respectively, which is shown on the Consolidated Statements of Operations.

During the year ended December 31, 2025, the Company reclassified certain well service rigs with a carrying value of $0.3 million from Assets Held for Sale back to Property and Equipment, net, as the criteria for classification as held for sale under ASC 360-10-45-9 were no longer met. The Company believes these assets may have use in future operations and are no longer actively marketing them. Depreciation on the reclassified rigs resumed prospectively beginning in July 2025.