Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Revenue from Contracts with Customers

Our contract asset balances, primarily associated with contractual invoicing milestones and/or customer documentation requirements, were $26.3 million and $30.6 million as of September 30, 2024 and December 31, 2023, 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. Unearned income balances were $0.6 million and $3.1 million as of September 30, 2024 and December 31, 2023, respectively, and vary based on the timing of invoicing and

performance obligations being met. Unearned income is included in accrued liabilities and other in our consolidated balance sheets. We recognized approximately $3.4 million and $2.5 million during the three and nine months ended September 30, 2024, respectively, and $1.2 million and $1.6 million of revenue during the three and nine months ended September 30, 2023, respectively, deferred in unearned income as of the beginning of the period. During the nine months ended September 30, 2024 and September 30, 2023, contract costs were not significant.

We disaggregate revenue from contracts with customers into Product Sales and Services within each segment, as noted in our two reportable segments in Note 9 - “Industry Segments.” In addition, we disaggregate revenue from contracts with customers by geography based on the following table below.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Completion Fluids & Products
United States	$	33,363	$	36,484	$	116,361	$	115,167
International	31,768		36,726		126,071		125,307
	65,131		73,210		242,432		240,474
Water & Flowback Services
United States	59,808		67,877		185,283		204,446
International(1)	16,761		10,377		36,892		28,216
	76,569		78,254		222,175		232,662
Total Revenue
United States	93,171		104,361		301,644		319,613
International(1)	48,529		47,103		162,963		153,523
	$	141,700	$	151,464	$	464,607	$	473,136

(1) Includes $4.1 million of lease revenue described below for the three and nine months ended September 30, 2024.

Lease Revenue

During the three months ended September 30, 2024, in connection with the settlement of a revenue contract by our Water & Flowback Services division, we entered into an arrangement with a customer including an embedded sales-type lease. Pursuant to this contract settlement, we recognized $7.4 million of revenues included in product sales revenues and including $4.1 million of revenues from the embedded lease. We also recognized $3.0 million of cost, included cost of product sales in our consolidated statements of operations during the three and nine months ended September 30, 2024. As of September 30, 2024, current lease receivables of $1.3 million and long-term lease receivables of $2.5 million are included in trade accounts receivable and other assets, respectively, in our consolidated balance sheets. The long-term lease receivable is expected to be collected by the end of 2026.