Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUE FROM CONTRACTS WITH CUSTOMERS

Our contract asset balances, primarily associated with contractual invoicing milestones and/or customer documentation requirements, were $36.7 million and $33.1 million as of June 30, 2023 and December 31, 2022, respectively. Contract assets, along with billed trade accounts receivable, are included in trade accounts receivable in our consolidated balance sheets.

Unearned income includes amounts in which the Company was contractually allowed to invoice prior to satisfying the associated performance obligations. We are also party to agreements whereby Standard Lithium Ltd.

(NYSE: SLI) (“Standard Lithium”) has the right to explore for, and an option to acquire the rights to produce and extract lithium in our Arkansas leases and other potential resources in the Mojave region of California. The Company receives cash and stock of Standard Lithium under the terms of the arrangements. The cash and stock component of consideration received is initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. Unearned income balances were $5.1 million and $3.7 million as of June 30, 2023 and December 31, 2022, respectively, and vary based on the timing of (i) invoicing, (ii) performance obligations being met and (iii) the receipt of stock and cash from Standard Lithium. Unearned income is included in accrued liabilities and other in our consolidated balance sheets. During the six-month periods ended June 30, 2023 and June 30, 2022, contract costs were not significant.

We recognized approximately $1.4 million and $0.9 million of revenue during the three-month and six-month periods ended June 30, 2023, respectively, and $0.2 million and $0.5 million of revenue during the three-month and six-month periods ended June 30, 2022, respectively, deferred in unearned income as of the beginning of the period. We also recognized approximately $0.8 million and $1.4 million of income during the three-month and six-month periods ended June 30, 2023, respectively, and $0.9 million and $1.5 million of income during the three-month and six-month periods ended June 30, 2022, respectively, related to the Standard Lithium arrangements deferred in unearned income as of the beginning of the period and included in other income, net in our consolidated statements of operations.

We disaggregate revenue from contracts with customers into Product Sales and Services within each segment, as noted in our two reportable segments in Note 10 - “Industry Segments.” In addition, we disaggregate revenue from contracts with customers by geography based on the following table below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Completion Fluids & Products
United States	$	45,859	$	34,344	$	78,682	$	73,188
International	52,363		40,454		88,582		74,804
	98,222		74,798		167,264		147,992
Water & Flowback Services
United States	68,231		61,654		136,569		114,417
International	9,010		4,264		17,839		8,344
	77,241		65,918		154,408		122,761
Total Revenue
United States	114,090		95,998		215,251		187,605
International	61,373		44,718		106,421		83,148
	$	175,463	$	140,716	$	321,672	$	270,753