Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Other Matters

10. Commitments and Contingencies

As of September 30, 2023, we maintained letters of credit in the aggregate amount of $92.7 million primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses that could become payable under the terms of the underlying insurance contracts. These letters of credit expire annually at various times during the year and are typically renewed. As of September 30, 2023, no amounts had been drawn under the letters of credit.

As of September 30, 2023, we had commitments to purchase major equipment totaling approximately $197 million.

Our completion services segment has entered into agreements to purchase minimum quantities of proppants and chemicals from certain vendors. As of September 30, 2023, the remaining minimum obligation under these agreements was approximately $34.5 million, of which approximately $14.2 million, $16.3 million, and $4.0 million relate to the remainder of 2023, 2024 and 2025, respectively.

We are party to various legal proceedings arising in the normal course of our business. We do not believe that the outcome of these proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition, cash flows or results of operations.