Business Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Business Segments

15. Business Segments

Effective as of the third quarter of 2023, we revised our reportable segments to align with certain changes in how our Chief Operating Decision Maker (“CODM”) manages and allocates resources to our business as a result of the Ulterra acquisition and NexTier merger. Accordingly, we now have the following reportable business segments: (i) drilling services, (ii) completion services, and (iii) drilling products.

Drilling Services — represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses.

Completion Services — represents the combination of our well completion business, which includes hydraulic fracturing, wireline and pumping, completion support, cementing and our legacy pressure pumping business.

Drilling Products — represents our manufacturing and distribution of drill bits business, which was acquired with our acquisition of Ulterra on August 14, 2023.

As a result of the revised reportable segment structure, we have restated the corresponding items of segment information for all periods presented.

The following tables summarize selected financial information relating to our business segments (in thousands):

	Three Months Ended March 31,
	2024		2023
Revenues:
Drilling Services	$	461,887	$	482,535
Completion Services	944,997		293,268
Drilling Products	89,973		—
Other (1)	18,445		21,036
Elimination of intercompany revenues – Drilling Services (2)	(4,314)		(4,808)
Elimination of intercompany revenues – Other (2)	(628)		(229)
Total revenues	$	1,510,360	$	791,802
Segment operating income (3) and reconciliation to income before income taxes:
Drilling Services	$	89,612	$	101,306
Completion Services	49,629		44,432
Drilling Products	6,500		—
Total segment operating income (3)	145,741		145,738
Other	988		1,967
Corporate	(59,730)		(21,742)
Interest income	2,189		1,240
Interest expense	(18,335)		(8,826)
Other	850		1,486
Income before income taxes	$	71,703	$	119,863
Depreciation, depletion, amortization and impairment:
Drilling Services	$	92,345	$	91,293
Completion Services	148,680		26,025
Drilling Products	27,182		—
Other	5,411		7,323
Corporate	1,338		3,539
Total depreciation, depletion, amortization and impairment	$	274,956	$	128,180
Capital expenditures:
Drilling Services	$	82,793	$	89,279
Completion Services	123,377		21,425
Drilling Products	15,586		—
Other	3,797		5,223
Corporate	1,388		1,674
Total capital expenditures	$	226,941	$	117,601

	March 31, 2024		December 31, 2023
Identifiable assets:
Drilling Services	$	2,208,251	$	2,368,604
Completion Services	3,786,399		3,835,699
Drilling Products	996,195		1,011,870
Other	58,392		59,221
Corporate (4)	176,951		144,637
Total assets	$	7,226,188	$	7,420,031

(1)Other includes our oilfield rentals business and oil and natural gas working interests.

(2)Intercompany revenues consist of revenues from drilling services provided to our other operations, and revenues from other operations for services provided to drilling services, completion services and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation.

(3)Segment operating income is our measure of segment profitability. It is defined as revenue less operating expenses, selling, general and administrative expenses, depreciation, amortization and impairment expenses and other operating income.

(4)Corporate assets primarily include cash on hand and certain property and equipment.