SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable segments comprise the structure used by our Chief Executive Officer who is also our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. For all of the segments, the CODM uses segment operating profit in the annual budgeting and monthly forecasting process and as a basis for making decisions about allocating capital and other resources to each segment. Further, cost of goods and services, selling, general and administrative expense, accounts receivable and inventory are regularly provided to the CODM as part of the monthly review of segment financial results to monitor productivity, overhead and working capital. Our reporting segments are: • Production Chemical Technologies—provides oil and natural gas production and midstream markets with solutions to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment and a host of water-related issues. • Production & Automation Technologies—designs, manufactures, markets and services a full range of artificial lift equipment, end-to-end digital automation solutions, as well as other production equipment and asset monitoring technologies. Production & Automation Technologies’ products are sold under a collection of brands including Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, Windrock, Scientific Aviation, ChampionX Emissions Technologies, Artificial Lift Performance and RMSpumptools. • Drilling Technologies—designs, manufactures and markets polycrystalline diamond cutters and bearings for use in oil and gas drill bits under the US Synthetic brand. • Reservoir Chemical Technologies—manufactures specialty products that support well stimulation, construction (including drilling and cementing) and remediation needs in the oil and natural gas industry. We refer to our Production Chemical Technologies segment and our Reservoir Chemical Technologies segment collectively as our Chemical Technologies business. Although Reservoir Chemical Technologies is not required to be disclosed separately as a reportable segment based on materiality, management believes the additional information may contribute to a better understanding of the business. Other business activities that do not meet the criteria of an operating segment have been combined into Corporate and other. Corporate and other includes (i) corporate and overhead expenses, and (ii) revenue and costs for activities that are not operating segments. Segment revenue and segment operating profit Year Ended December 31, 2024 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Total Reportable Segments Corporate and other (1) Total Segment revenue 2,288,886 1,042,369 211,828 94,296 3,637,379 (3,396) 3,633,983 Cost of goods and services 1,548,993 701,924 124,349 69,921 2,445,187 94 2,445,281 Selling, general and administrative expense 373,191 218,290 38,859 12,227 642,567 78,065 720,632 Other segment items 2,655 (1,685) (29,849) 70 (28,809) (1,864) (30,673) Segment operating profit 364,047 123,840 78,469 12,078 578,434 (79,691) 498,743 Interest expense, net — — — — — 55,868 55,868 Income before income taxes 364,047 123,840 78,469 12,078 578,434 (135,559) 442,875 Year Ended December 31, 2023 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Total Reportable Segments Corporate and other (1) Total Segment revenue 2,404,377 1,003,146 215,721 96,154 3,719,398 38,887 3,758,285 Cost of goods and services 1,683,121 692,994 129,104 71,979 2,577,198 41,448 2,618,646 Selling, general and administrative expense 345,000 193,349 41,102 13,484 592,935 40,097 633,032 Other segment items 26,040 (1,606) 34 150 24,618 3,603 28,221 Segment operating profit 350,216 118,409 45,481 10,541 524,647 (46,261) 478,386 Interest expense, net — — — — — 54,562 54,562 Income before income taxes 350,216 118,409 45,481 10,541 524,647 (100,823) 423,824 Year Ended December 31, 2022 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Total Reportable Segments Corporate and other (1) Total Segment revenue $ 2,347,526 $ 954,646 $ 229,479 $ 145,197 $ 3,676,848 $ 129,100 $ 3,805,948 Cost of goods and services 1,786,227 671,485 135,546 177,643 2,770,901 136,383 2,907,284 Selling, general and administrative expense 302,577 191,817 39,438 17,628 551,460 40,822 592,282 Other segment items 18,786 2,211 (17) 40,138 61,118 3,254 64,372 Segment operating profit 239,936 89,133 54,512 (90,212) 293,369 (51,359) 242,010 Interest expense, net — — — — — 45,204 45,204 Income before income taxes $ 239,936 $ 89,133 $ 54,512 $ (90,212) $ 293,369 $ (96,563) $ 196,806 ____________________ (1) Corporate and other includes costs not directly attributable or allocated to our reportable segments such as overhead and other costs pertaining to corporate executive management and other administrative functions, and the results attributable to our noncontrolling interest. Additionally, the sales and expenses related to the Cross Supply and Product Transfer Agreement with Ecolab were included within Corporate and other from June 3, 2020, the date of the Ecolab Merger in which we acquired the Chemical Technologies business, through June 30, 2023. Beginning, July 1, 2023, these sales and expenses are recognized in the Production Chemical Technologies segment. Geographic information December 31, (in thousands) 2024 2023 Property, plant, and equipment, net: United States $ 522,850 $ 522,640 Singapore 72,085 80,526 Canada 64,649 69,974 Other Countries 95,838 100,412 Total property, plant, and equipment, net $ 755,422 $ 773,552 See Note 5—Revenue for information related to revenue by geography and end markets. Other business segment information Segment Assets (in thousands) 2024 2023 2022 Chemical Technologies (1) $ 535,033 $ 647,389 $ 718,882 Production & Automation Technologies 375,492 358,372 371,087 Drilling Technologies 49,998 48,700 52,552 Total segment assets (2) 960,523 1,054,461 1,142,521 Other current assets 603,374 370,956 $ 356,060 Noncurrent assets 1,906,355 1,816,285 1,888,902 Total assets $ 3,470,252 $ 3,241,702 $ 3,387,483 _______________________ (1) Our Chemical Technologies business has an integrated supply chain function that serves the Production Chemical Technologies and Reservoir Chemical Technologies reportable segments. As such, segment assets by each reportable segment has not been provided and is not available, since the Company does not produce or utilize such information. (2) The significant asset categories that is regularly provided to the chief operating decision maker (“CODM”) includes total accounts receivable and inventory. The amounts align with segment level information provided in the CODM package. Capital Expenditures (in thousands) 2024 2023 2022 Chemical Technologies (1) $ 58,805 $ 49,485 $ 41,782 Production & Automation Technologies 76,424 86,029 56,363 Drilling Technologies 5,198 4,700 3,732 Corporate and other 883 2,110 931 Total $ 141,310 $ 142,324 $ 102,808 _______________________ (1) Our Chemical Technologies business has an integrated supply chain function that serves the Production Chemical Technologies and Reservoir Chemical Technologies reportable segments. As such, capital expenditure information by each reportable segment has not been provided and is not available, since the Company does not produce or utilize such information. Depreciation & Amortization (in thousands) 2024 2023 2022 Production Chemical Technologies $ 106,394 $ 105,058 $ 91,875 Production & Automation Technologies 125,884 109,017 103,592 Drilling Technologies 5,465 6,192 6,639 Reservoir Chemical Technologies 6,196 6,471 14,662 Corporate and other 1,886 9,198 25,112 Total $ 245,825 $ 235,936 $ 241,880 |