Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 24, 2024 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Commission File Number | 001-33666 | |
Entity Registrant Name | Archrock, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-3204509 | |
Entity Street Address | 9807 Katy Freeway | |
Entity Suite Number | Suite 100 | |
Entity City | Houston | |
Entity State | TX | |
Entity Postal Zip Code | 77024 | |
City Area Code | 281 | |
Local Phone Number | 836-8000 | |
Title of each class | Common stock, $0.01 par value per share | |
Trading Symbol | AROC | |
Name of exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 156,286,457 | |
Entity Central Index Key | 0001389050 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,155 | $ 1,338 |
Accounts receivable, net of allowance of $496 and $587, respectively | 105,295 | 124,069 |
Inventory | 80,358 | 81,761 |
Other current assets | 6,898 | 5,989 |
Total current assets | 193,706 | 213,157 |
Property, plant and equipment, net | 2,332,009 | 2,301,982 |
Operating lease right-of-use assets | 14,343 | 14,097 |
Intangible assets, net | 28,737 | 30,182 |
Contract costs, net | 35,967 | 37,739 |
Deferred tax assets | 2,847 | 3,192 |
Other assets | 47,467 | 47,733 |
Non-current assets of discontinued operations | 7,868 | 7,868 |
Total assets | 2,662,944 | 2,655,950 |
Current liabilities: | ||
Accounts payable, trade | 48,717 | 61,026 |
Accrued liabilities | 98,751 | 85,381 |
Deferred revenue | 5,778 | 5,736 |
Total current liabilities | 153,246 | 152,143 |
Long-term debt | 1,566,566 | 1,584,869 |
Operating lease liabilities | 12,364 | 12,271 |
Deferred tax liabilities | 15,986 | 4,921 |
Other liabilities | 24,834 | 22,857 |
Non-current liabilities of discontinued operations | 7,868 | 7,868 |
Total liabilities | 1,780,864 | 1,784,929 |
Commitments and contingencies (Note 7) | ||
Equity: | ||
Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued | ||
Common stock: $0.01 par value per share, 250,000,000 shares authorized, 165,775,863 and 164,984,401 shares issued, respectively | 1,657 | 1,650 |
Additional paid-in capital | 3,474,777 | 3,470,576 |
Accumulated deficit | (2,485,399) | (2,499,931) |
Treasury stock: 9,489,406 and 9,020,454 common shares, at cost, respectively | (108,955) | (101,274) |
Total equity | 882,080 | 871,021 |
Total liabilities and equity | $ 2,662,944 | $ 2,655,950 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowance | $ 496 | $ 587 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 165,775,863 | 164,984,401 |
Treasury stock, common shares (in shares) | 9,489,406 | 9,020,454 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | $ 268,488 | $ 229,834 |
Total cost of sales (excluding depreciation and amortization) | 112,743 | 113,390 |
Selling, general and administrative | 31,665 | 26,425 |
Depreciation and amortization | 42,835 | 40,181 |
Long-lived and other asset impairment | 2,568 | 2,569 |
Restructuring charges | 1,047 | |
Interest expense | 27,334 | 26,581 |
Gain on sale of assets, net | (2,381) | (3,605) |
Other (income) expense, net | 139 | 603 |
Income before income taxes | 53,585 | 22,643 |
Provision for income taxes | 13,053 | 6,158 |
Net income | $ 40,532 | $ 16,485 |
Basic earnings per common share (in dollars per share) | $ 0.26 | $ 0.10 |
Diluted earnings per common share (in dollars per share) | $ 0.26 | $ 0.10 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 154,187 | 154,116 |
Diluted (in shares) | 154,501 | 154,281 |
Contract operations | ||
Revenue | $ 223,051 | $ 187,745 |
Total cost of sales (excluding depreciation and amortization) | 77,743 | 79,482 |
Aftermarket services | ||
Revenue | 45,437 | 42,089 |
Total cost of sales (excluding depreciation and amortization) | $ 35,000 | $ 33,908 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock, Common | Total |
Beginning balance at Dec. 31, 2022 | $ 1,634 | $ 3,456,777 | $ (2,509,133) | $ (88,585) | $ 860,693 |
Beginning balance (in shares) at Dec. 31, 2022 | 163,439,013 | ||||
Treasury stock, common shares, Beginning balance (in shares) at Dec. 31, 2022 | 7,810,548 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Shares withheld related to net settlement of equity awards | $ (3,773) | (3,773) | |||
Shares withheld related to net settlement of equity awards (in shares) | 383,766 | ||||
Cash dividends | (23,852) | (23,852) | |||
Shares issued in ESPP | $ 1 | 169 | 170 | ||
Shares issued in ESPP (in shares) | 20,251 | ||||
Stock-based compensation, net of forfeitures | $ 14 | 3,313 | 3,327 | ||
Stock-based compensation, net of forfeitures (in shares) | 1,444,636 | 13,076 | |||
Comprehensive income | |||||
Net income | 16,485 | 16,485 | |||
Ending balance at Mar. 31, 2023 | $ 1,649 | 3,460,259 | (2,516,500) | $ (92,358) | 853,050 |
Ending balance (in shares) at Mar. 31, 2023 | 164,903,900 | ||||
Treasury stock, common shares, Ending balance (in shares) at Mar. 31, 2023 | 8,207,390 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,650 | 3,470,576 | (2,499,931) | $ (101,274) | $ 871,021 |
Beginning balance (in shares) at Dec. 31, 2023 | 164,984,401 | ||||
Treasury stock, common shares, Beginning balance (in shares) at Dec. 31, 2023 | 9,020,454 | 9,020,454 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Shares repurchased | $ (1,230) | $ (1,230) | |||
Shares repurchased (in shares) | 82,972 | ||||
Shares withheld related to net settlement of equity awards | $ (6,451) | (6,451) | |||
Shares withheld related to net settlement of equity awards (in shares) | 385,980 | ||||
Cash dividends | (26,000) | (26,000) | |||
Shares issued in ESPP | 244 | 244 | |||
Shares issued in ESPP (in shares) | 17,800 | ||||
Stock-based compensation, net of forfeitures | $ 7 | 3,957 | 3,964 | ||
Stock-based compensation, net of forfeitures (in shares) | 773,662 | ||||
Comprehensive income | |||||
Net income | 40,532 | 40,532 | |||
Ending balance at Mar. 31, 2024 | $ 1,657 | $ 3,474,777 | $ (2,485,399) | $ (108,955) | $ 882,080 |
Ending balance (in shares) at Mar. 31, 2024 | 165,775,863 | ||||
Treasury stock, common shares, Ending balance (in shares) at Mar. 31, 2024 | 9,489,406 | 9,489,406 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Condensed Consolidated Statements of Equity | |||||
Dividend declared per common stock (in dollars per share) | $ 0.165 | $ 0.155 | $ 0.155 | $ 0.150 | $ 0.150 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||||
Net income | $ 40,532 | $ 16,485 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 42,835 | 40,181 | ||
Long-lived and other asset impairment | 2,568 | 2,569 | ||
Non-cash restructuring charges | 927 | |||
Unrealized change in fair value of investment in unconsolidated affiliate | 254 | |||
Inventory write-downs | 199 | 216 | ||
Amortization of operating lease right-of-use assets | 947 | 823 | ||
Amortization of deferred financing costs | 1,193 | 1,288 | ||
Amortization of debt premium | (501) | (501) | ||
Amortization of capitalized implementation costs | 738 | 597 | ||
Stock-based compensation expense | 3,964 | 3,327 | ||
Benefit from credit losses | (75) | (340) | ||
Gain on sale of assets, net | (2,381) | (3,605) | ||
Deferred income tax provision | 12,460 | 5,881 | ||
Amortization of contract costs | 5,768 | 5,090 | ||
Deferred revenue recognized in earnings | (2,859) | (4,476) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 19,819 | 7,632 | ||
Inventory | 1,246 | (4,131) | ||
Other assets | (1,785) | 609 | ||
Contract costs | (3,996) | (6,352) | ||
Accounts payable and other liabilities | 13,958 | 18,219 | ||
Deferred revenue | 3,070 | 3,179 | ||
Other | 2 | (16) | ||
Net cash provided by operating activities | 137,702 | 87,856 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (99,755) | (84,392) | ||
Proceeds from sale of property, equipment and other assets | 13,844 | 28,726 | ||
Proceeds from insurance and other settlements | 45 | |||
Investments in unconsolidated entities | (57) | (2,000) | ||
Net cash used in investing activities | (85,923) | (57,666) | ||
Cash flows from financing activities: | ||||
Borrowings of long-term debt | 244,525 | 158,850 | ||
Repayments of long-term debt | (263,050) | (160,100) | ||
Dividends paid to stockholders | (26,000) | $ (24,190) | $ (23,504) | (23,852) |
Repurchases of common stock | (1,230) | |||
Taxes paid related to net share settlement of equity awards | (6,451) | (3,773) | ||
Proceeds from stock issued under ESPP | 244 | 170 | ||
Net cash used in financing activities | (51,962) | (28,705) | ||
Net increase (decrease) in cash and cash equivalents | (183) | 1,485 | ||
Cash and cash equivalents, beginning of period | 1,338 | $ 3,051 | 1,566 | |
Cash and cash equivalents, end of period | $ 1,155 | $ 1,338 | $ 3,051 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation and Significant Accounting Policies | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation We are an energy infrastructure company with a primary focus on midstream natural gas compression. We are a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment in the U.S. We operate in two business segments: contract operations and aftermarket services. Our predominant segment, contract operations, primarily includes designing, sourcing, owning, installing, operating, servicing, repairing and maintaining our owned fleet of natural gas compression equipment to provide natural gas compression services to our customers. In our aftermarket services business, we sell parts and components and provide operations, maintenance, overhaul and reconfiguration services to customers who own compression equipment. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by GAAP. Therefore, this information should be read in conjunction with our consolidated financial statements and notes contained in our 2023 Form 10-K. The information furnished herein reflects all adjustments that are, in the opinion of management, of a normal recurring nature and considered necessary for a fair statement of the results of the interim periods reported. All intercompany balances and transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. |
Recent Accounting Developments
Recent Accounting Developments | 3 Months Ended |
Mar. 31, 2024 | |
Recent Accounting Developments | |
Recent Accounting Developments | 2. Recent Accounting Developments Accounting Standards Updates Not Yet Implemented Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, Business Combinations – Joint Venture Formations In August 2023, the FASB issued ASU 2023-05, to reduce diversity in practice and provide decision-useful information to a joint venture’s investors by requiring that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture will recognize and initially measure its assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance, on the date of formation. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information to do so. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or been made available for issuance, either prospectively or retrospectively. We expect that the adoption of ASU 2023-05 will have no impact on our consolidated financial statements. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory | |
Inventory | 3. Inventory Inventory is comprised of the following: March 31, December 31, (in thousands) 2024 2023 Parts and supplies $ 68,176 $ 70,759 Work in progress 12,182 11,002 Inventory $ 80,358 $ 81,761 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, net | 4. Property, Plant and Equipment, Net Property, plant and equipment, net is comprised of the following: March 31, December 31, (in thousands) 2024 2023 Compression equipment, facilities and other fleet assets $ 3,377,588 $ 3,326,919 Land and buildings 31,019 30,169 Transportation and shop equipment 100,725 100,474 Computer hardware and software 77,705 77,532 Other 5,779 5,678 Property, plant and equipment 3,592,816 3,540,772 Accumulated depreciation (1,260,807) (1,238,790) Property, plant and equipment, net $ 2,332,009 $ 2,301,982 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2024 | |
Investments in Unconsolidated Affiliates | |
Investment in Unconsolidated Affiliate | 5. Investments in Unconsolidated Affiliates Investments in which we are deemed to exert significant influence, but not control, are accounted for using the equity method of accounting, except in cases where the fair value option is elected. For such investments where we have elected the fair value option, the election is irrevocable and is applied on an investment–by–investment basis at initial recognition. In April 2022, we agreed to acquire for cash a 25% equity interest in ECOTEC, a company specializing in methane emissions detection, monitoring and management. We have elected the fair value option to account for this investment, and during the three months ended March 31, 2023, we recognized an unrealized loss of $0.3 million related to the change in fair value of our investment (see Note 14 (“Fair Value Measurements”)). Changes in the fair value of this investment are recognized in other (income) expense, net in our consolidated statements of operations. As of March 31, 2024, our ownership interest in ECOTEC is 25%, which is included in other assets in our consolidated balance sheets. For ownership interests that are not accounted for under the equity method and that do not have readily determinable fair values, we have elected the fair value measurement alternative to record these investments at cost minus impairment, if any, including adjustments for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Investments in equity securities measured using the fair value measurement alternative are reviewed for impairment or observable price changes in orderly transactions each reporting period. In November 2023, we agreed to serve as the lead investor in a series A preferred financing round for Ionada, a global carbon capture technology company committed to reducing GHG emissions and creating a sustainable future. Ionada has developed a post-combustion carbon capture solution to reduce carbon dioxide emissions from various small to mid-sized industrial emitters in the energy, marine and e-fuels industries, among others. We have elected the fair value measurement alternative to account for this investment (see Note 14 (“Fair Value Measurements”)). Adjustments to the carrying value are recognized in other (income) expense, net in our condensed consolidated statements of operations. Our initial investment in Ionada was $3.8 million and as of March 31, 2024, our fully diluted ownership interest in Ionada is 10%, which is included in other assets in our consolidated balance sheets. Subject to certain conditions, our ownership interest will increase to 24% over the next two years. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Debt | |
Long-Term Debt | 6. Long-Term Debt Long–term debt is comprised of the following: (in thousands) March 31, 2024 December 31, 2023 Credit Facility $ 268,500 $ 287,025 6.25% senior notes due April 2028: Principal outstanding 800,000 800,000 Unamortized debt premium 8,023 8,524 Unamortized debt issuance costs (6,647) (7,081) 801,376 801,443 6.875% senior notes due April 2027: Principal outstanding 500,000 500,000 Unamortized debt issuance costs (3,310) (3,599) 496,690 496,401 Long-term debt $ 1,566,566 $ 1,584,869 As of March 31, 2024, there were $3.8 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.2%. The weighted average annual interest rate on the outstanding balance under the Credit Facility was 7.8% and 7.7% at March 31, 2024 and December 31, 2023, respectively. We incurred $0.4 million and $0.5 million of commitment fees on the daily unused amount of the Credit Facility during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, we were in compliance with all covenants under our Credit Facility agreement. Additionally, all undrawn capacity on our Credit Facility was available for borrowings as of March 31, 2024. Amended and Restated Credit Agreement On May 16, 2023, we amended and restated our Credit Facility to, among other things: ● extend the maturity date of the Credit Facility from November 8, 2024 to May 16, 2028 (or December 2, 2026 or December 3, 2027 if any portion of 2027 Notes and 2028 Notes, respectively, remain outstanding at such date); ● change the referenced rate from LIBOR to SOFR so that borrowings under the Credit Facility bear interest at, based on our election, either a base rate or SOFR, plus an applicable margin; and ● increase the portion of the Credit Facility available for the issuance of swing line loans from $50.0 million to $75.0 million. During the second quarter of 2023, we incurred $6.0 million in transaction costs related to the Amended and Restated Credit Agreement, which were included in other assets in our condensed consolidated balance sheets and are being amortized over the remaining term of the Credit Facility. In addition, during the second quarter of 2023, we wrote off $1.0 million of unamortized deferred financing costs as a result of the Amended and Restated Credit Agreement, which was recorded to interest expense in our condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. Commitments and Contingencies Insurance Matters Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability and commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business, however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self–insured for workers’ compensation and employee group health claims in view of the relatively high per–incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. We are also self–insured for property damage to our offshore assets. Tax Matters We are subject to a number of state and local taxes that are not income–based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of March 31, 2024 and December 31, 2023, we had $4.1 million and $3.9 million, respectively, accrued for the outcomes of non–income–based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We believe the likelihood is remote that the impact of potential unasserted claims from non–income–based tax audits could be material to our consolidated financial position, but it is possible that the resolution of future audits could be material to our consolidated results of operations or cash flows. During the years ended December 31, 2022 and 2021, certain of our sales and use tax audits advanced from the audit review phase to the contested hearing phase. As of March 31, 2024 and December 31, 2023, we accrued $0.6 million for these audits. Litigation and Claims In the ordinary course of business, we are involved in various pending or threatened legal actions. While we are unable to predict the ultimate outcome of these actions, we believe that any ultimate liability arising from any of these actions will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity | |
Stockholders' Equity | 8. Stockholders’ Equity Share Repurchase Program On April 27, 2023, our Board of Directors authorized a share repurchase program that allowed us to repurchase up to $50.0 million of outstanding common stock. Under the Share Repurchase Program, shares of our common stock may be repurchased periodically, including in the open market, privately negotiated transactions, or otherwise in accordance with applicable federal securities laws, at any time. On April 25, 2024, our Board of Directors approved an extension of the Share Repurchase Program upon expiry of the current authorization on April 27, 2024, for an additional twenty-four-month period. Through March 31, 2024, the Company had repurchased 833,346 common shares at an average price of $12.11 per share for an aggregate of $10.1 million. In connection with the extension, the Board of Directors replenished the amount of shares authorized for repurchase under the Share Repurchase Program, resulting in available capacity of $50.0 million. The actual timing, manner, number, and value of shares repurchased under the program will be determined by us at our discretion. The following table summarizes shares repurchased under the Share Repurchase Program: Three Months Ended (dollars in thousands, except per share amounts) March 31, 2024 Total cost of shares repurchased $ 1,230 Average price per share $ 14.83 Total number of shares repurchased 82,972 Cash Dividends The following table summarizes our dividends declared and paid in each of the quarterly periods of 2024 and 2023: Dividends per (dollars in thousands, except per share amounts) Common Share Dividends Paid 2024 Q1 $ 0.165 $ 26,000 2023 Q4 $ 0.155 $ 24,190 Q3 0.155 24,250 Q2 0.150 23,504 Q1 0.150 23,852 On April 25, 2024, our Board of Directors declared a quarterly dividend of $0.165 per share of common stock to be paid |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 9. Revenue from Contracts with Customers The following table presents our revenue from contracts with customers by segment and disaggregated by revenue source: Three Months Ended March 31, (in thousands) 2024 2023 Contract operations: 0 ― 1,000 horsepower per unit $ 45,327 $ 39,954 1,001 ― 1,500 horsepower per unit 95,670 81,807 Over 1,500 horsepower per unit 81,865 65,714 Other (1) 189 270 Total contract operations revenue (2) 223,051 187,745 Aftermarket services: Services 25,438 21,249 OTC parts and components sales 19,999 20,840 Total aftermarket services revenue (3) 45,437 42,089 Total revenue $ 268,488 $ 229,834 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $1.1 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time. (3) Services revenue within aftermarket services is recognized over time. OTC parts and components sales revenue is recognized at a point in time. See Note 16 (“Segment Information”) for further information on segments. Performance Obligations As of March 31, 2024, we had $569.7 million of remaining performance obligations related to our contract operations segment, which will be recognized through 2029 as follows: (in thousands) 2024 2025 2026 2027 2028 2029 Total Remaining performance obligations $ 263,793 $ 184,333 $ 98,640 $ 15,076 $ 7,526 $ 342 $ 569,710 We do not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services as there are no contracts with customers with an original contract term that is greater than one year. Contract Assets and Liabilities Contract Assets As March 31, 2024 and December 31, 2023, our receivables from contracts with customers, net of allowance for credit losses, were $95.9 million and $119.7 million, respectively. Allowance for Credit Losses Our allowance for credit losses balance changed as follows during the three months ended March 31, 2024: (in thousands) Balance at beginning of period $ 587 Benefit from credit losses (75) Write-offs charged against allowance (16) Balance at end of period $ 496 Contract Liabilities Freight billings to customers for the transport of compression assets, customer–specified modifications of compression assets and milestone billings on aftermarket services often result in a contract liability. As of March 31, 2024 and December 31, 2023, our contract liabilities were $7.2 million and $7.0 million, respectively. During the three months ended March 31, 2024, we deferred revenue of $3.1 million and recognized $2.9 million as revenue. |
Long-Lived and Other Asset Impa
Long-Lived and Other Asset Impairment | 3 Months Ended |
Mar. 31, 2024 | |
Long-Lived and Other Asset Impairment | |
Long-Lived and Other Asset Impairment | 10. Long-Lived and Other Asset Impairment We review long–lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressors from our active fleet, indicate that the carrying amount of an asset may not be recoverable. Compression Fleet We periodically review the future deployment of our idle compression assets for units that are not of the type, configuration, condition, make or model that are cost efficient to maintain and operate. Based on these reviews, we determine that certain idle compressors should be retired from the active fleet. The retirement of these units from the active fleet triggers a review of these assets for impairment and as a result of our review, we may record an asset impairment to reduce the book value of each unit to its estimated fair value. The fair value of each unit is estimated based on the expected net sale proceeds compared to other fleet units we recently sold, a review of other units recently offered for sale by third parties or the estimated component value of the equipment we plan to use. In connection with our review of our idle compression assets, we evaluate for impairment idle units that were culled from our fleet in prior years and are available for sale. Based on that review, we may reduce the expected proceeds from disposition and record additional impairment to reduce the book value of each unit to its estimated fair value. The following table presents the results of our compression fleet impairment review as recorded in our contract operations segment: Three Months Ended March 31, (dollars in thousands) 2024 2023 Idle compressors retired from the active fleet 25 30 Horsepower of idle compressors retired from the active fleet 14,000 14,000 Impairment recorded on idle compressors retired from the active fleet $ 2,568 $ 2,569 See Note 14 (“Fair Value Measurements”) for further details on fair value accounting. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring Charges | |
Restructuring Charges | 11. Restructuring Charges During the first quarter of 2023, a plan to further streamline our organization and more fully align our teams to improve our customer service and profitability was approved by management. While we did not incur restructuring charges during the three months ended March 31, 2024, we expect to incur additional restructuring charges of $0.1 million related to these restructuring activities. The following table presents restructuring charges incurred by segment during the three months ended March 31, 2023: Contract Aftermarket (in thousands) Operations Services Other (1) Total Organizational restructuring $ 203 $ — $ 844 $ 1,047 Total restructuring charges $ 203 $ — $ 844 $ 1,047 (1) Represents expense incurred within our corporate function and not directly attributable to our segments. The following table presents restructuring charges incurred by cost type: Three Months Ended (in thousands) March 31, 2024 Organizational Restructuring Severance costs $ 789 Consulting costs 258 Total restructuring costs $ 1,047 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes | |
Income Taxes | 12. Income Taxes Valuation Allowance The amount of our deferred tax assets considered realizable could be adjusted if projections of future taxable income are reduced or objective negative evidence in the form of a three–year cumulative loss is present or both. Should we no longer have a level of sustained profitability, excluding nonrecurring charges, we will have to rely more on our future projections of taxable income to determine if we have an adequate source of taxable income for the realization of our deferred tax assets, namely net operating loss, interest expense limitation and tax credit carryforwards. This may result in the need to record a valuation allowance against all or a portion of our deferred tax assets. Effective Tax Rate The year-to-date effective tax rate for the three months ended March 31, 2024 differed significantly from our statutory rate primarily due to state taxes, unrecognized tax benefits and the limitation on executive compensation offset by the benefit from equity-settled long term incentive compensation. Unrecognized Tax Benefits As of March 31, 2024, we believe it is reasonably possible that $3.3 million of our unrecognized tax benefits, including penalties, interest and discontinued operations, will be reduced prior to March 31, 2025 due to the settlement of audits or the expiration of statutes of limitations or both. However, due to the uncertain and complex application of the tax regulations, it is possible that the ultimate resolution of these matters may result in liabilities that could materially differ from this estimate. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings per Common Share | |
Net Income (Loss) per Common Share | 13. Earnings Per Common Share Basic earnings per common share is computed using the two–class method, which is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two–class method, basic earnings per common share is determined by dividing net income, after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and stock–settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, only distributed earnings (dividends) are allocated to participating securities, as participating securities do not have a contractual obligation to participate in our undistributed losses. Diluted earnings per common share is computed using the weighted average number of common shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding performance–based restricted stock units and stock to be issued pursuant to our ESPP unless their effect would have been anti–dilutive. The following table shows the calculation of net income attributable to common stockholders, which is used in the calculation of basic and diluted earnings per common share, potential shares of common stock that were included in computing diluted earnings per common share and the potential shares of common stock issuable that were excluded from computing diluted earnings per common share as their inclusion would have been anti–dilutive: Three Months Ended March 31, (in thousands) 2024 2023 Net income $ 40,532 $ 16,485 Less: Allocation of earnings to participating securities (748) (735) Net income attributable to common stockholders $ 39,784 $ 15,750 Less: Allocation of earnings to cash or share settled restricted stock units (85) — Diluted net income attributable to common stockholders $ 39,699 $ 15,750 Weighted average common shares outstanding used in basic earnings per common share 154,187 154,116 Effect of dilutive securities: Performance-based restricted stock units 310 162 ESPP shares 4 3 Weighted average common shares outstanding used in diluted earnings per common share 154,501 154,281 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | 14. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis As of March 31, 2024, we owned a 25% equity interest in ECOTEC (see Note 5 (“Investments in Unconsolidated Affiliates”)). We have elected the fair value option to account for this investment. The fair value determination of this investment primarily consisted of unobservable inputs, which creates uncertainty in the measurement of fair value as of the reporting date. The significant unobservable inputs used in the fair value measurement, which was valued through an average of an income approach (discounted cash flow method) and a market approach (guideline public company method), are the WACC and the revenue multiples. Significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement. As of March 31, 2024, the fair value of our investment in ECOTEC was $14.9 million. This fair value measurement is classified as Level 3. The significant unobservable inputs are as follows: Significant Three Months Ended Three Months Ended Unobservable March 31, 2024 March 31, 2023 Inputs Range Median Range Median Valuation technique: Discounted cash flow WACC 0.4% - 20.0% 13.5% 0.0% - 22.1% 11.3% Guideline public company Revenue multiple 1.5x - 7.2x 3.8x 1.7x - 8.0x 3.9x The reconciliation of changes in the fair value of our investment in ECOTEC is as follows: Three Months Ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 14,905 $ 12,803 Purchases of equity interests — 2,000 Unrealized loss (1) — (254) Balance at end of period $ 14,905 $ 14,549 (1) Included in other expense (income), net in our unaudited condensed consolidated statement of operations. See Note 5 (“Investments in Unconsolidated Affiliates”) for further details. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Investment in Ionada As of March 31, 2024, we had a fully diluted ownership equity interest in Ionada of 10% (see Note 5 (“Investments in Unconsolidated Affiliates”)). We have elected the fair value measurement alternative to account for this investment. As of March 31, 2024, the carrying value of our investment in Ionada was $4.3 million. The reconciliation of changes in the carrying value of our investment in Ionada is as follows: Three Months Ended March 31, (in thousands) 2024 Balance at beginning of period $ 4,205 Purchases of equity interests — Transaction costs capitalized as investment activity 57 Cost basis 4,262 Adjustments — Carrying value $ 4,262 Subject to certain contractual conditions, we will invest, on the same terms and conditions as the initial investment, $1.2 million on November 1, 2024, $1.3 million on November 1, 2025, and $4.8 million prior to July 1, 2026, for a fully diluted ownership interest of 12%, 15% and 24%, respectively. Compressors During the three months ended March 31, 2024, we recorded nonrecurring fair value measurements related to our idle compressors. Our estimate of the compressors’ fair value was primarily based on the expected net sale proceeds compared with other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. We discounted the expected proceeds, net of selling and other carrying costs, using a weighted average disposal period of four years. These fair value measurements are classified as Level 3. The fair value of our compressors impaired as of March 31, 2024 and December 31, 2023 was as follows: March 31, 2024 December 31, 2023 (in thousands) Impaired compressors $ 263 $ 1,423 The significant unobservable inputs used to develop the above fair value measurements were weighted by the relative fair value of the compressors being measured. Additional quantitative information related to our significant unobservable inputs follows: Range Weighted Average (1) Estimated net sale proceeds: As of March 31, 2024 $0 - $211 per horsepower $50 per horsepower As of December 31, 2023 $0 - $294 per horsepower $50 per horsepower (1) Calculated based on an estimated discount for market liquidity 30% and 33% as of March 31, 2024 and December 31, 2023, respectively. See Note 10 (“Long-Lived and Other Asset Impairments”) for further details. Other Financial Instruments The carrying amounts of our cash, accounts receivable and accounts payable approximate fair value due to the short–term nature of these instruments. The carrying amount of borrowings outstanding under our Credit Facility approximates fair value due to the variable interest rate. The measurement of the fair value of these outstanding borrowings is a Level 3 measurement. The fair value of our fixed rate debt is estimated using yields observable in active markets, which are Level 2 inputs, and was as follows: March 31, 2024 December 31, 2023 (in thousands) Carrying amount of fixed rate debt (1) $ 1,298,066 $ 1,297,844 Fair value of fixed rate debt 1,294,000 1,289,000 (1) Carrying amounts are shown net of unamortized premium and deferred financing costs. See Note 6 (“Long-Term Debt”). |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions | |
Related Party Transactions | 15. Related Party Transactions From August 2019 to present, our Board of Directors has included a member affiliated with our customer Hilcorp or its subsidiaries or affiliates. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information | |
Segments | 16. Segment Information We manage our business segments primarily based on the type of product or service provided. We have two segments that we operate within the U.S.: contract operations and aftermarket services. Our contract operations segment primarily provides natural gas compression services to meet specific customer requirements. Our aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. We evaluate the performance of our segments based on gross margin, defined as revenue less cost of sales (excluding depreciation and amortization) for each segment. Segment revenue includes only sales to external customers. Summarized financial information for our reporting segments is shown below: Contract Aftermarket (in thousands) Operations Services Total Three months ended March 31, 2024 Revenue $ 223,051 $ 45,437 $ 268,488 Gross margin 145,308 10,437 155,745 Three months ended March 31, 2023 Revenue $ 187,745 $ 42,089 $ 229,834 Gross margin 108,263 8,181 116,444 The following table reconciles total gross margin to income before income taxes: Three Months Ended March 31, (in thousands) 2024 2023 Total gross margin $ 155,745 $ 116,444 Less: Selling, general and administrative 31,665 26,425 Depreciation and amortization 42,835 40,181 Long-lived and other asset impairment 2,568 2,569 Restructuring charges — 1,047 Interest expense 27,334 26,581 Gain on sale of assets, net (2,381) (3,605) Other (income) expense, net 139 603 Income before income taxes $ 53,585 $ 22,643 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by GAAP. Therefore, this information should be read in conjunction with our consolidated financial statements and notes contained in our 2023 Form 10-K. The information furnished herein reflects all adjustments that are, in the opinion of management, of a normal recurring nature and considered necessary for a fair statement of the results of the interim periods reported. All intercompany balances and transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. |
Accounting Standards Updates Implemented and Accounting Standards Updates Not Yet Implemented | Accounting Standards Updates Not Yet Implemented Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, Business Combinations – Joint Venture Formations In August 2023, the FASB issued ASU 2023-05, to reduce diversity in practice and provide decision-useful information to a joint venture’s investors by requiring that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture will recognize and initially measure its assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance, on the date of formation. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information to do so. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or been made available for issuance, either prospectively or retrospectively. We expect that the adoption of ASU 2023-05 will have no impact on our consolidated financial statements. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory | |
Schedule of inventory | March 31, December 31, (in thousands) 2024 2023 Parts and supplies $ 68,176 $ 70,759 Work in progress 12,182 11,002 Inventory $ 80,358 $ 81,761 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment, Net | |
Schedule of property, plant and equipment, net | March 31, December 31, (in thousands) 2024 2023 Compression equipment, facilities and other fleet assets $ 3,377,588 $ 3,326,919 Land and buildings 31,019 30,169 Transportation and shop equipment 100,725 100,474 Computer hardware and software 77,705 77,532 Other 5,779 5,678 Property, plant and equipment 3,592,816 3,540,772 Accumulated depreciation (1,260,807) (1,238,790) Property, plant and equipment, net $ 2,332,009 $ 2,301,982 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Debt | |
Schedule of long-term debt | (in thousands) March 31, 2024 December 31, 2023 Credit Facility $ 268,500 $ 287,025 6.25% senior notes due April 2028: Principal outstanding 800,000 800,000 Unamortized debt premium 8,023 8,524 Unamortized debt issuance costs (6,647) (7,081) 801,376 801,443 6.875% senior notes due April 2027: Principal outstanding 500,000 500,000 Unamortized debt issuance costs (3,310) (3,599) 496,690 496,401 Long-term debt $ 1,566,566 $ 1,584,869 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity | |
Summary of shares repurchased | Three Months Ended (dollars in thousands, except per share amounts) March 31, 2024 Total cost of shares repurchased $ 1,230 Average price per share $ 14.83 Total number of shares repurchased 82,972 |
Summary of dividends declared and paid | Dividends per (dollars in thousands, except per share amounts) Common Share Dividends Paid 2024 Q1 $ 0.165 $ 26,000 2023 Q4 $ 0.155 $ 24,190 Q3 0.155 24,250 Q2 0.150 23,504 Q1 0.150 23,852 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contracts with Customers | |
Schedule of revenue from contracts with customers by segment | Three Months Ended March 31, (in thousands) 2024 2023 Contract operations: 0 ― 1,000 horsepower per unit $ 45,327 $ 39,954 1,001 ― 1,500 horsepower per unit 95,670 81,807 Over 1,500 horsepower per unit 81,865 65,714 Other (1) 189 270 Total contract operations revenue (2) 223,051 187,745 Aftermarket services: Services 25,438 21,249 OTC parts and components sales 19,999 20,840 Total aftermarket services revenue (3) 45,437 42,089 Total revenue $ 268,488 $ 229,834 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $1.1 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time. (3) Services revenue within aftermarket services is recognized over time. OTC parts and components sales revenue is recognized at a point in time. |
Schedule of remaining performance obligations | (in thousands) 2024 2025 2026 2027 2028 2029 Total Remaining performance obligations $ 263,793 $ 184,333 $ 98,640 $ 15,076 $ 7,526 $ 342 $ 569,710 |
Summary of changes in allowance for credit losses | (in thousands) Balance at beginning of period $ 587 Benefit from credit losses (75) Write-offs charged against allowance (16) Balance at end of period $ 496 |
Long-Lived and Other Asset Im_2
Long-Lived and Other Asset Impairment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Long-Lived and Other Asset Impairment | |
Schedule of impairment of long-lived assets | Three Months Ended March 31, (dollars in thousands) 2024 2023 Idle compressors retired from the active fleet 25 30 Horsepower of idle compressors retired from the active fleet 14,000 14,000 Impairment recorded on idle compressors retired from the active fleet $ 2,568 $ 2,569 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring Charges | |
Schedule of restructuring charges by segment | Contract Aftermarket (in thousands) Operations Services Other (1) Total Organizational restructuring $ 203 $ — $ 844 $ 1,047 Total restructuring charges $ 203 $ — $ 844 $ 1,047 (1) Represents expense incurred within our corporate function and not directly attributable to our segments. |
Schedule of restructuring charges by type | Three Months Ended (in thousands) March 31, 2024 Organizational Restructuring Severance costs $ 789 Consulting costs 258 Total restructuring costs $ 1,047 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings per Common Share | |
Schedule of calculation of basic and diluted net income per common share | Three Months Ended March 31, (in thousands) 2024 2023 Net income $ 40,532 $ 16,485 Less: Allocation of earnings to participating securities (748) (735) Net income attributable to common stockholders $ 39,784 $ 15,750 Less: Allocation of earnings to cash or share settled restricted stock units (85) — Diluted net income attributable to common stockholders $ 39,699 $ 15,750 Weighted average common shares outstanding used in basic earnings per common share 154,187 154,116 Effect of dilutive securities: Performance-based restricted stock units 310 162 ESPP shares 4 3 Weighted average common shares outstanding used in diluted earnings per common share 154,501 154,281 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair value | |
Schedule of carrying value and estimated fair value of debt instruments | March 31, 2024 December 31, 2023 (in thousands) Carrying amount of fixed rate debt (1) $ 1,298,066 $ 1,297,844 Fair value of fixed rate debt 1,294,000 1,289,000 (1) Carrying amounts are shown net of unamortized premium and deferred financing costs. See Note 6 (“Long-Term Debt”). |
Compressors | |
Fair value | |
Schedule of significant unobservable inputs | Range Weighted Average (1) Estimated net sale proceeds: As of March 31, 2024 $0 - $211 per horsepower $50 per horsepower As of December 31, 2023 $0 - $294 per horsepower $50 per horsepower (1) Calculated based on an estimated discount for market liquidity 30% and 33% as of March 31, 2024 and December 31, 2023, respectively. |
Schedule of non-recurring fair value assets | March 31, 2024 December 31, 2023 (in thousands) Impaired compressors $ 263 $ 1,423 |
Ionada | Equity investment | |
Fair value | |
Schedule of reconciliation of changes in the carrying value of investment measured at fair value on nonrecurring basis | Three Months Ended March 31, (in thousands) 2024 Balance at beginning of period $ 4,205 Purchases of equity interests — Transaction costs capitalized as investment activity 57 Cost basis 4,262 Adjustments — Carrying value $ 4,262 |
ECOTEC | Equity investment | |
Fair value | |
Schedule of significant unobservable inputs | Significant Three Months Ended Three Months Ended Unobservable March 31, 2024 March 31, 2023 Inputs Range Median Range Median Valuation technique: Discounted cash flow WACC 0.4% - 20.0% 13.5% 0.0% - 22.1% 11.3% Guideline public company Revenue multiple 1.5x - 7.2x 3.8x 1.7x - 8.0x 3.9x |
Schedule of changes in assets measured at fair value on a recurring basis | Three Months Ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 14,905 $ 12,803 Purchases of equity interests — 2,000 Unrealized loss (1) — (254) Balance at end of period $ 14,905 $ 14,549 (1) Included in other expense (income), net in our unaudited condensed consolidated statement of operations. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information | |
Summary of revenue and other financial information by reportable segment | Contract Aftermarket (in thousands) Operations Services Total Three months ended March 31, 2024 Revenue $ 223,051 $ 45,437 $ 268,488 Gross margin 145,308 10,437 155,745 Three months ended March 31, 2023 Revenue $ 187,745 $ 42,089 $ 229,834 Gross margin 108,263 8,181 116,444 |
Reconciliation of total gross margin to income before taxes | Three Months Ended March 31, (in thousands) 2024 2023 Total gross margin $ 155,745 $ 116,444 Less: Selling, general and administrative 31,665 26,425 Depreciation and amortization 42,835 40,181 Long-lived and other asset impairment 2,568 2,569 Restructuring charges — 1,047 Interest expense 27,334 26,581 Gain on sale of assets, net (2,381) (3,605) Other (income) expense, net 139 603 Income before income taxes $ 53,585 $ 22,643 |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Basis of Presentation and Significant Accounting Policies | |
Number of reportable segments | 2 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Composition of Inventory net of reserves | ||
Parts and supplies | $ 68,176 | $ 70,759 |
Work in progress | 12,182 | 11,002 |
Inventory | $ 80,358 | $ 81,761 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment, Net | ||
Property, plant and equipment | $ 3,592,816 | $ 3,540,772 |
Accumulated depreciation | (1,260,807) | (1,238,790) |
Property, plant and equipment, net | 2,332,009 | 2,301,982 |
Compression equipment, facilities and other fleet assets | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment | 3,377,588 | 3,326,919 |
Land and buildings | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment | 31,019 | 30,169 |
Transportation and shop equipment | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment | 100,725 | 100,474 |
Computer hardware and software | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment | 77,705 | 77,532 |
Other | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment | $ 5,779 | $ 5,678 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Apr. 30, 2022 | |
Investments | ||||
Cash paid to acquire equity interest | $ 57 | $ 2,000 | ||
ECOTEC | ||||
Investments | ||||
Equity interest agreed to acquire (as a percent) | 25% | |||
Ownership interest (as a percent) | 25% | |||
Unrealized loss recognized due to change in fair value | $ 300 | |||
Ionada | ||||
Investments | ||||
Equity interest agreed to acquire (as a percent) | 24% | |||
Cash paid to acquire equity interest | $ 3,800 | |||
Ownership interest (as a percent) | 10% | |||
Period over which ownership interest will be acquired to reach agreed upon ownership percentage | 2 years |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instruments | ||
Long-term debt | $ 1,566,566 | $ 1,584,869 |
Credit Facility | ||
Debt Instruments | ||
Long-term debt | 268,500 | 287,025 |
6.25% senior notes due April 2028 | ||
Debt Instruments | ||
Principal outstanding | 800,000 | 800,000 |
Unamortized debt premium | 8,023 | 8,524 |
Unamortized debt issuance costs | (6,647) | (7,081) |
Long-term debt | $ 801,376 | $ 801,443 |
Interest rate (as a percent) | 6.25% | 6.25% |
6.875% senior notes due April 2027 | ||
Debt Instruments | ||
Principal outstanding | $ 500,000 | $ 500,000 |
Unamortized debt issuance costs | (3,310) | (3,599) |
Long-term debt | $ 496,690 | $ 496,401 |
Interest rate (as a percent) | 6.875% | 6.875% |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | May 16, 2023 | Mar. 31, 2023 | |
Credit Facility | |||||
Line of Credit Facility | |||||
Letter of credit outstanding | $ 3.8 | ||||
Debt instrument, variable rate (percentage) | 2.20% | ||||
Debt instrument weighted average interest rate (percent) | 7.80% | 7.70% | |||
Debt issuance cost written off | $ 1 | ||||
Commitment fee amount | $ 0.4 | $ 0.5 | |||
Swing Line Loans, Credit Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 75 | $ 50 | |||
Credit Facility, Amendment 4 | |||||
Line of Credit Facility | |||||
Transaction costs | $ 6 |
Commitments and Contingencies-
Commitments and Contingencies- Tax Matters - Loss contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Non-income based tax audits | ||
Loss Contingencies | ||
Accrued liability | $ 4.1 | $ 3.9 |
Non-income based tax audits in contested hearing phase | ||
Loss Contingencies | ||
Accrued liability | $ 0.6 | $ 0.6 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 11 Months Ended | ||
Apr. 27, 2024 | Mar. 31, 2024 | Mar. 31, 2024 | Apr. 27, 2023 | |
Treasury Stock | ||||
Total cost of shares repurchased (in dollars) | $ 1,230 | |||
Share Repurchase Program | ||||
Treasury Stock | ||||
Shares authorized to be repurchased (in dollars) | $ 50,000 | |||
Total cost of shares repurchased (in dollars) | $ 1,230 | $ 10,100 | ||
Average price per share (in dollars per share) | $ 14.83 | $ 12.11 | ||
Total number of shares repurchased (in shares) | 82,972 | 833,346 | ||
Subsequent Event | Share Repurchase Program | ||||
Treasury Stock | ||||
Renewal period | 24 months | |||
Available capacity for repurchase (in dollars) | $ 50,000 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
May 14, 2024 | Apr. 25, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Distributions | |||||||
Declared Dividends per Common Share (in dollars per share) | $ 0.165 | $ 0.155 | $ 0.155 | $ 0.150 | $ 0.150 | ||
Dividends Paid (in dollars) | $ 26,000 | $ 24,190 | $ 24,250 | $ 23,504 | $ 23,852 | ||
Forecasted | |||||||
Distributions | |||||||
Dividends Paid (in dollars per share) | $ 0.165 | ||||||
Subsequent Event | |||||||
Distributions | |||||||
Declared Dividends per Common Share (in dollars per share) | $ 0.165 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregate Revenue (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) hp | Mar. 31, 2023 USD ($) hp | |
Disaggregation of Revenue | ||
Revenue | $ 268,488 | $ 229,834 |
Contract operations | ||
Disaggregation of Revenue | ||
Revenue | 223,051 | 187,745 |
Contract operations | Transferred at Point in Time | ||
Disaggregation of Revenue | ||
Revenue | 1,100 | 800 |
Contract operations | 0 - 1,000 horsepower per unit | ||
Disaggregation of Revenue | ||
Revenue | $ 45,327 | $ 39,954 |
Contract operations | 0 - 1,000 horsepower per unit | Minimum | ||
Disaggregation of Revenue | ||
Compressor unit horsepower (horsepower) | hp | 0 | 0 |
Contract operations | 0 - 1,000 horsepower per unit | Maximum | ||
Disaggregation of Revenue | ||
Compressor unit horsepower (horsepower) | hp | 1,000 | 1,000 |
Contract operations | 1,001 - 1,500 horsepower per unit | ||
Disaggregation of Revenue | ||
Revenue | $ 95,670 | $ 81,807 |
Contract operations | 1,001 - 1,500 horsepower per unit | Minimum | ||
Disaggregation of Revenue | ||
Compressor unit horsepower (horsepower) | hp | 1,001 | 1,001 |
Contract operations | 1,001 - 1,500 horsepower per unit | Maximum | ||
Disaggregation of Revenue | ||
Compressor unit horsepower (horsepower) | hp | 1,500 | 1,500 |
Contract operations | Over 1,500 horsepower per unit | ||
Disaggregation of Revenue | ||
Revenue | $ 81,865 | $ 65,714 |
Contract operations | Over 1,500 horsepower per unit | Minimum | ||
Disaggregation of Revenue | ||
Compressor unit horsepower (horsepower) | hp | 1,500 | 1,500 |
Contract operations | Other | ||
Disaggregation of Revenue | ||
Revenue | $ 189 | $ 270 |
Aftermarket services | ||
Disaggregation of Revenue | ||
Revenue | 45,437 | 42,089 |
Aftermarket services | Service | ||
Disaggregation of Revenue | ||
Revenue | 25,438 | 21,249 |
Aftermarket services | OTC parts and components sales | ||
Disaggregation of Revenue | ||
Revenue | $ 19,999 | $ 20,840 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 569,710 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 263,793 |
Performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 184,333 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 98,640 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 15,076 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 7,526 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 342 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contracts with Customers | ||
Accounts receivable, net of allowance - Customer related | $ 95.9 | $ 119.7 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in the allowance for credit losses balance | ||
Balance at beginning of period | $ 587 | |
Benefit from credit losses | (75) | $ (340) |
Write-offs charged against the allowance | (16) | |
Balance at end of period | $ 496 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contracts with Customers | |||
Contract liability | $ 7,200 | $ 7,000 | |
Deferred revenue | 3,070 | $ 3,179 | |
Deferred revenue recognized in earnings | $ 2,859 | $ 4,476 |
Long-Lived and Other Asset Im_3
Long-Lived and Other Asset Impairment (Details) - Idle Compressor Units hp in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) CompressorUnit hp | Mar. 31, 2023 USD ($) CompressorUnit hp | |
Impaired Long-Lived Assets Held and Used | ||
Idle compressors retired from the active fleet | CompressorUnit | 25 | 30 |
Horsepower of idle compressors retired from the active fleet | hp | 14 | 14 |
Impairment recorded on idle compressors retired from the active fleet | $ | $ 2,568 | $ 2,569 |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income | Long-lived and other asset impairment | Long-lived and other asset impairment |
Restructuring Charges - By segm
Restructuring Charges - By segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring charges | ||
Restructuring charges | $ 1,047 | |
Organizational Restructuring | ||
Restructuring charges | ||
Restructuring charges | $ 0 | 1,047 |
Expected additional restructuring charges | $ 100 | |
Corporate | ||
Restructuring charges | ||
Restructuring charges | 844 | |
Corporate | Organizational Restructuring | ||
Restructuring charges | ||
Restructuring charges | 844 | |
Contract operations | Operating | ||
Restructuring charges | ||
Restructuring charges | 203 | |
Contract operations | Operating | Organizational Restructuring | ||
Restructuring charges | ||
Restructuring charges | $ 203 |
Restructuring Charges - By type
Restructuring Charges - By type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring charges | ||
Restructuring charges | $ 1,047 | |
Organizational Restructuring | ||
Restructuring charges | ||
Restructuring charges | $ 0 | 1,047 |
Severance costs | Organizational Restructuring | ||
Restructuring charges | ||
Restructuring charges | 789 | |
Consulting costs | Organizational Restructuring | ||
Restructuring charges | ||
Restructuring charges | $ 258 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Income Taxes | |
Potential decrease in unrecognized tax benefit in next twelve months | $ 3.3 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings per Common Share | ||
Net income | $ 40,532 | $ 16,485 |
Less: Allocation of earnings to participating securities | (748) | (735) |
Net income attributable to common stockholders, basic | 39,784 | 15,750 |
Less: Allocation of earnings to cash or share settled restricted stock units | (85) | |
Diluted net income attributable to common stockholders | $ 39,699 | $ 15,750 |
Weighted average common shares outstanding used in basic earnings per common share (in shares) | 154,187 | 154,116 |
Effect of dilutive securities: | ||
Performance-based restricted stock units (in shares) | 310 | 162 |
ESPP shares (in shares) | 4 | 3 |
Weighted average common shares outstanding used in diluted earnings per common share (in shares) | 154,501 | 154,281 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis - Investment in ECOTEC - Unobservable inputs (Details) - ECOTEC $ in Millions | Mar. 31, 2024 USD ($) | Mar. 31, 2023 |
Fair value measurement of assets and liabilities | ||
Ownership interest (as a percent) | 25% | |
Investment | $ 14.9 | |
Equity investment | Level 3 | Discounted cash flow | WACC | Minimum | ||
Significant unobservable inputs | ||
Equity Securities, FV-NI, Measurement Input | 0.004 | 0 |
Equity investment | Level 3 | Discounted cash flow | WACC | Maximum | ||
Significant unobservable inputs | ||
Equity Securities, FV-NI, Measurement Input | 0.200 | 0.221 |
Equity investment | Level 3 | Discounted cash flow | WACC | Median | ||
Significant unobservable inputs | ||
Equity Securities, FV-NI, Measurement Input | 0.135 | 0.113 |
Equity investment | Level 3 | Guideline public company | Revenue multiple | Minimum | ||
Significant unobservable inputs | ||
Equity Securities, FV-NI, Measurement Input | 1.5 | 1.7 |
Equity investment | Level 3 | Guideline public company | Revenue multiple | Maximum | ||
Significant unobservable inputs | ||
Equity Securities, FV-NI, Measurement Input | 7.2 | 8 |
Equity investment | Level 3 | Guideline public company | Revenue multiple | Median | ||
Significant unobservable inputs | ||
Equity Securities, FV-NI, Measurement Input | 3.8 | 3.9 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Recurring Basis - Investment in ECOTEC - Changes in FV (Details) - ECOTEC - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of changes in fair value | ||
Unrealized loss | $ (300) | |
Equity investment | ||
Reconciliation of changes in fair value | ||
Balance, beginning of period | $ 14,905 | 12,803 |
Purchases of equity interests | 2,000 | |
Unrealized loss | (254) | |
Balance, end of period | $ 14,905 | $ 14,549 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis - Investment in Ionada (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Jun. 30, 2026 | Nov. 01, 2025 | Nov. 01, 2024 | Nov. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of changes in fair value | ||||||
Cash paid to acquire equity interest | $ 57 | $ 2,000 | ||||
Ionada | ||||||
Assets measured at fair value on a nonrecurring basis | ||||||
Ownership interest (as a percent) | 10% | |||||
Reconciliation of changes in fair value | ||||||
Balance, beginning of period | $ 4,205 | |||||
Transaction costs capitalized as investment activity | 57 | |||||
Cost basis | 4,262 | |||||
Carrying value | $ 4,262 | |||||
Cash paid to acquire equity interest | $ 3,800 | |||||
Ionada | Forecasted | ||||||
Assets measured at fair value on a nonrecurring basis | ||||||
Ownership interest (as a percent) | 24% | 15% | 12% | |||
Reconciliation of changes in fair value | ||||||
Purchases of equity interests | $ 4,800 | $ 1,300 | $ 1,200 |
Fair Value Measurements - Non_2
Fair Value Measurements - Nonrecurring Basis - Compressors (Details) - Level 3 - Impaired Long-Lived Assets - Compressors $ in Thousands | Mar. 31, 2024 USD ($) $ / hp Y | Dec. 31, 2023 USD ($) $ / hp Y |
Measurement Input, Weighted average disposal period | ||
Assets measured on nonrecurring basis | ||
Measurement input | Y | 4 | 4 |
Measurement Input, Sale proceeds | Minimum | ||
Assets measured on nonrecurring basis | ||
Measurement input | 0 | 0 |
Measurement Input, Sale proceeds | Maximum | ||
Assets measured on nonrecurring basis | ||
Measurement input | 211 | 294 |
Measurement Input, Sale proceeds | Weighted average | ||
Assets measured on nonrecurring basis | ||
Measurement input | 50 | 50 |
Measurement Input, Discount for market liquidity | ||
Assets measured on nonrecurring basis | ||
Measurement input | 0.30 | 0.33 |
Nonrecurring Basis | ||
Assets measured on nonrecurring basis | ||
Impaired assets | $ | $ 263 | $ 1,423 |
Fair Value Measurements - Other
Fair Value Measurements - Other Financial Instruments (Details) - Fixed Rate Debt - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, fair value | $ 1,298,066 | $ 1,297,844 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, fair value | $ 1,294,000 | $ 1,289,000 |
Long-Term Debt, Fair Value by Fair Value Hierarchy Level | us-gaap:FairValueInputsLevel2Member | us-gaap:FairValueInputsLevel2Member |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction | |||
Revenue | $ 268,488 | $ 229,834 | |
Accounts receivable, net of allowance - Customer related | 95,900 | $ 119,700 | |
Accounts receivable, net of allowance of $1,487 and $2,152, respectively | 105,295 | 124,069 | |
Affiliated Entity | |||
Related Party Transaction | |||
Revenue | 10,500 | $ 9,100 | |
Accounts receivable, net of allowance - Customer related | $ 3,600 | $ 3,800 |
Segment Information - Number (D
Segment Information - Number (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Information | |
Number of reportable segments | 2 |
Segment Information - Revenue a
Segment Information - Revenue and Gross Margin by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue and other financial information by reportable segment | ||
Revenue | $ 268,488 | $ 229,834 |
Gross margin | 155,745 | 116,444 |
Capital expenditures | 99,755 | 84,392 |
Contract operations | ||
Revenue and other financial information by reportable segment | ||
Revenue | 223,051 | 187,745 |
Gross margin | 145,308 | 108,263 |
Aftermarket services | ||
Revenue and other financial information by reportable segment | ||
Revenue | 45,437 | 42,089 |
Gross margin | $ 10,437 | $ 8,181 |
Segment Information - Reconcili
Segment Information - Reconciliation of gross margin to income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of total gross margin to income | ||
Total gross margin | $ 155,745 | $ 116,444 |
Less: | ||
Selling, general and administrative | 31,665 | 26,425 |
Depreciation and amortization | 42,835 | 40,181 |
Long-lived and other asset impairment | 2,568 | 2,569 |
Restructuring charges | 1,047 | |
Interest expense | 27,334 | 26,581 |
Gain on sale of assets, net | (2,381) | (3,605) |
Other (income) expense, net | 139 | 603 |
Income before income taxes | $ 53,585 | $ 22,643 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 40,532 | $ 16,485 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |