Revenue From Contracts With Customers

3 Months Ended

Mar. 31, 2025

Revenue from Contracts with Customers

Revenue From Contracts With Customers

Note 8 — Revenue from Contracts with Customers

Disaggregation of Revenue

Our service contracts generally contain provisions for specific time, material and equipment charges that are billed in accordance with the terms of such contracts (dayrate contracts) but we occasionally contract on a lump sum basis (lump sum contracts). We record revenues net of taxes collected from customers and remitted to governmental authorities.

Our revenues are primarily derived from short-term and long-term service contracts with customers. Contracts are classified as long-term if all or part of the contract is to be performed over a period extending beyond 12 months from the effective date of the contract. Long-term contracts may include multi-year agreements whereby the commitment for services in any one year may be short in duration. We provide services to our customers in the following markets that are key to our energy transition strategy: Production maximization, Decommissioning and Renewables. The following tables provide information about disaggregated revenue by contract duration and by market strategy (in thousands):

	Well				Shallow Water		Production		Intercompany		Total
	Intervention		Robotics		Abandonment		Facilities		Eliminations		Revenue
Three months ended March 31, 2025
Short-term	$	24,223	$	22,550	$	15,571	$	—	$	(52)	$	62,292
Long-term		174,151		28,492		1,247		19,837		(7,955)		215,772
Total	$	198,374	$	51,042	$	16,818	$	19,837	$	(8,007)	$	278,064
Three months ended March 31, 2024 (1)
Short-term	$	134,414	$	25,176	$	25,363	$	—	$	(6,327)	$	178,626
Long-term		76,886		25,133		1,490		24,152		(10,076)		117,585
Total	$	211,300	$	50,309	$	26,853	$	24,152	$	(16,403)	$	296,211

	Well				Shallow Water		Production		Intercompany		Total
	Intervention		Robotics		Abandonment		Facilities		Eliminations		Revenue
Three months ended March 31, 2025
Production maximization	$	96,962	$	24,726	$	1,076	$	19,837	$	(3,972)	$	138,629
Decommissioning		100,683		4,016		15,666		—		(4,035)		116,330
Renewables		—		16,774		76		—		—		16,850
Other		729		5,526		—		—		—		6,255
Total	$	198,374	$	51,042	$	16,818	$	19,837	$	(8,007)	$	278,064
Three months ended March 31, 2024 (1)
Production maximization	$	69,935	$	18,436	$	3,242	$	24,152	$	(10,878)	$	104,887
Decommissioning		141,278		5,412		23,611		—		(5,521)		164,780
Renewables		—		24,172		—		—		—		24,172
Other		87		2,289		—		—		(4)		2,372
Total	$	211,300	$	50,309	$	26,853	$	24,152	$	(16,403)	$	296,211

(1) For the three-month period ended March 31, 2024, $5.2 million have been removed from Well Intervention segment revenues and related intersegment eliminations. See Note 11 regarding this change in prior year reported segment information.

Contract Balances

Net contract assets were $26.0 million as of March 31, 2025 and $12.2 million as of December 31, 2024 and are reflected in “Other current assets” in the accompanying condensed consolidated balance sheets (Note 3). The increase in net contract assets was primarily attributable to more revenue recognized for demobilization fees and more revenue recognized in excess of the amount billed to the customer for lump sum contracts. We had no credit losses on our contract assets for the three-month periods ended March 31, 2025 and 2024.

Net contract liabilities totaled $40.2 million as of March 31, 2025 and $15.6 million as of December 31, 2024 and are reflected as “Deferred revenue,” a component of “Accrued liabilities” and ‘Other non-current liabilities” in the accompanying condensed consolidated balance sheets (Note 3). The increase was primarily attributable to the increase in deferred mobilization revenue due to the timing of mobilization payments for contracts. Revenue recognized for the three-month periods ended March 31, 2025 and 2024 included $15.6 million and $16.4 million, respectively, that were included in the contract liability balance at the beginning of each period.

Performance Obligations

As of March 31, 2025, $1.4 billion related to unsatisfied performance obligations was expected to be recognized as revenue in the future, with $592.1 million, $429.3 million and $394.4 million in 2025, 2026, 2027 and beyond, respectively. These amounts include fixed consideration and estimated variable consideration for both wholly and partially unsatisfied performance obligations, including mobilization and demobilization fees. These amounts are derived from the specific terms of our contracts, and the expected timing for revenue recognition is based on the estimated start date and duration of each contract according to the information known at March 31, 2025.

For the three-month periods ended March 31, 2025 and 2024, revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were immaterial.

Contract Fulfillment Costs

Deferred contract costs are reflected as “Deferred costs,” a component of “Other current assets” and “Other assets, net” in the accompanying condensed consolidated balance sheets (Note 3). Our deferred contract costs totaled $43.2 million as of March 31, 2025 and $37.2 million as of December 31, 2024. For the three-month periods ended March 31, 2025 and 2024, we recorded $16.4 million and $20.3 million, respectively, related to amortization of these deferred contract costs. There were no associated impairment losses for any period presented.

For additional information regarding revenue recognition, see Notes 2 and 11 to our 2024 Form 10-K.