Segment Reporting and Other Disaggregated Information | 21. SEGMENT REPORTING AND OTHER DISAGGREGATED INFORMATION Segment Reporting We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields: • Reservoir Description : Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients’ reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. Services associated with these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel and biofuels. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage. • Production Enhancement : Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects. We use the same accounting policies to prepare our operating segment results as are used to prepare our consolidated financial statements. All interest and other non-operating income (expense) is attributable to Corporate & Other and is not allocated to specific operating segments. Our chief operating decision maker (“CODM”) is our chief executive officer and Chairman of the Board of Directors. The CODM uses revenue from unaffiliated clients and segment operating income to allocate resources, primarily for working capital, staffing, and capital expenditures, during the annual budgeting process and monthly when comparing actual results to budgeted and forecasted results. Summarized financial information of our operating segments is shown in the following table (in thousands): As at and for the years ended: Reservoir Description Production Enhancement Corporate & Other (1) Consolidated December 31, 2024 CODM Measure - Revenue from unaffiliated clients $ 346,146 $ 177,702 $ — $ 523,848 Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: Inter-segment revenue 123 214 ( 337 ) — Cost of services and product sales 269,169 151,916 ( 563 ) 420,522 Depreciation and amortization 10,660 4,293 — 14,953 General and administrative expense (2) 25,531 14,239 — 39,770 Other operating (income) expense, net (3) ( 11,542 ) 550 ( 158 ) ( 11,150 ) Foreign exchange (gain) loss, net (3) 985 306 ( 94 ) 1,197 CODM Measure - Segment operating income 51,466 6,612 478 58,556 Supplemental Disclosures: Total assets 322,764 149,446 118,196 590,406 Capital expenditures 11,413 1,318 297 13,028 December 31, 2023 CODM Measure - Revenue from unaffiliated clients $ 333,345 $ 176,445 $ — $ 509,790 Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: Inter-segment revenue 156 249 ( 405 ) — Cost of services and product sales 256,480 145,194 ( 1,717 ) 399,957 Depreciation and amortization 11,462 4,322 — 15,784 General and administrative expense (2) 25,792 14,467 — 40,259 Other operating (income) expense, net (3) ( 994 ) ( 5 ) ( 27 ) ( 1,026 ) Foreign exchange (gain) loss, net (3) ( 278 ) 197 257 176 CODM Measure - Segment operating income 41,039 12,519 1,082 54,640 Supplemental Disclosures: Total assets 309,162 161,359 115,874 586,395 Capital expenditures 8,312 1,808 459 10,579 December 31, 2022 CODM Measure - Revenue from unaffiliated clients $ 307,691 $ 182,044 $ — $ 489,735 Reconciliation of CODM measure - revenue from unaffiliated clients to segment operating income: Inter-segment revenue 523 315 ( 838 ) — Cost of services and product sales 250,182 145,117 ( 1,644 ) 393,655 Depreciation and amortization 12,207 4,954 — 17,161 General and administrative expense (2) 24,264 13,853 — 38,117 Other operating (income) expense, net (3) ( 1,089 ) 1,414 ( 1,276 ) ( 951 ) Foreign exchange (gain) loss, net (3) ( 252 ) 670 ( 189 ) 229 CODM Measure - Segment operating income 22,902 16,351 2,271 41,524 Supplemental Disclosures: Total assets 307,108 159,628 111,618 578,354 Capital expenditures 7,458 2,181 577 10,216 (1) “Corporate and other” represents those items not directly related to a particular operating segment and eliminations. (2) General and administrative expense is presented as a total amount to the CODM and consists primarily of employee benefits, professional fees and information technology costs. (3) Other remaining balance is included in other (income) expense, net. See Note 19 - Other (income) expense, net for further detail. Disaggregated Revenue We derive our revenue from services and product sales contracts with clients primarily in the oil and gas industry. No single client accounted for 10% or more of revenue in any of the periods presented. Summarized financial information of our contracts is shown in the following table (in thousands): For the Years Ended December 31, 2024 2023 2022 Reservoir Description Services $ 334,325 $ 322,921 $ 296,201 Production Enhancement Services 53,880 48,993 50,773 Total Revenue - Services $ 388,205 $ 371,914 $ 346,974 Reservoir Description Product sales $ 11,821 $ 10,424 $ 11,490 Production Enhancement Product sales 123,822 127,452 131,271 Total Revenue - Product sales $ 135,643 $ 137,876 $ 142,761 Total Revenue $ 523,848 $ 509,790 $ 489,735 We attribute service revenue to the country in which the service was performed rather than where the reservoir or project is located while we attribute product sales revenue to the country where the product was shipped as we feel this gives a clearer view of our operations. We do, however, have significant levels of service revenue performed and recorded in the U.S. that are sourced from projects on non-U.S. oilfields. Summarized financial information of our geographic regions is shown in the following table (in thousands): Other As at and for the years ended: United States Countries (1) (2) Consolidated December 31, 2024 Revenue $ 178,895 $ 344,953 $ 523,848 Property, plant and equipment, net 46,666 50,397 97,063 December 31, 2023 Revenue $ 178,549 $ 331,241 $ 509,790 Property, plant and equipment, net 50,792 48,834 99,626 December 31, 2022 Revenue $ 166,701 $ 323,034 $ 489,735 Property, plant and equipment, net 54,384 50,644 105,028 (1) Revenue earned in other countries, was not individually greater than 10 % of our consolidated revenue in 2024, 2023 and 2022 . (2) Property, plant and equipment, net in other countries, was not individually greater than 10 % of our consolidated property, plant and equipment, net in 2024, 2023 and 2022 . |