Note 16 – Business Segments

Prior to the completion of the Moser Acquisition, we operated as a single segment which reflected how our business was managed and the nature of our services. Following the Moser Acquisition, we re-evaluated our reportable segments and now report two distinct business segments, the sand and logistics segment and the power segment. The operating segments have been identified based on the Company’s management structure, revenue generating activities, and the financial data utilized by the Company’s CODM to assess segment performance and allocate resources among segments.

Sand and Logistics: Provides high-quality, locally sourced 100 mesh and 40/70 sand used as a proppant during the well completion process. Also, provides a differentiated logistics platform that includes our fleet of fit-for-purpose trucks, trailers, wellsite equipment, and the Dune Express, an overland conveyor infrastructure solution.
Power: Provides distributed power solutions through a fleet of natural gas-powered reciprocating generators primarily supporting production and artificial lift operations.

Our CODM evaluates the performance of our business segments and allocates resources based on segment gross profit. Components within segment gross profit, such as revenues and cost of sales, are used to monitor actual performance. Intersegment transactions have been eliminated in the computation of gross profit and assets.

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

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Sand & Logistics

 

 

Power

 

 

Total

 

 

Sand & Logistics

 

 

Power

 

 

Total

 

 

Sand & Logistics

 

 

Power

 

 

Total

 

Product revenue

 

$

477,985

 

 

$

 

 

$

477,985

 

 

$

515,434

 

 

$

 

 

$

515,434

 

 

$

468,119

 

 

$

 

 

$

468,119

 

Service revenue

 

 

558,774

 

 

 

 

 

 

558,774

 

 

 

540,523

 

 

 

 

 

 

540,523

 

 

 

145,841

 

 

 

 

 

 

145,841

 

Rental revenue

 

 

 

 

 

58,551

 

 

 

58,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

1,036,759

 

 

 

58,551

 

 

 

1,095,310

 

 

 

1,055,957

 

 

 

 

 

 

1,055,957

 

 

 

613,960

 

 

 

 

 

 

613,960

 

Cost of sales (excluding depreciation, depletion and accretion expense) (1)

 

 

762,781

 

 

 

21,714

 

 

 

784,495

 

 

 

725,196

 

 

 

 

 

 

725,196

 

 

 

260,396

 

 

 

 

 

 

260,396

 

Depreciation, depletion and accretion expense (1)

 

 

150,486

 

 

 

9,662

 

 

 

160,148

 

 

 

98,747

 

 

 

 

 

 

98,747

 

 

 

39,798

 

 

 

 

 

 

39,798

 

Gross profit

 

$

123,492

 

 

$

27,175

 

 

$

150,667

 

 

$

232,014

 

 

$

 

 

$

232,014

 

 

$

313,766

 

 

$

 

 

$

313,766

 

Selling, general and administrative expense (including stock-based and unit-based compensation expense of $33,227, $22,381, and $7,409, respectively)

 

 

 

 

 

 

 

 

138,829

 

 

 

 

 

 

 

 

 

106,223

 

 

 

 

 

 

 

 

 

48,608

 

Credit loss expense

 

 

 

 

 

 

 

 

4,778

 

 

 

 

 

 

 

 

 

25

 

 

 

 

 

 

 

 

 

28

 

Amortization expense of acquired intangible assets

 

 

 

 

 

 

 

 

23,547

 

 

 

 

 

 

 

 

 

12,316

 

 

 

 

 

 

 

 

 

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

(3,360

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on disposal of assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,672

 

 

 

 

 

 

 

 

 

 

Insurance recovery (gain)

 

 

 

 

 

 

 

 

(2,217

)

 

 

 

 

 

 

 

 

(20,098

)

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

(10,910

)

 

 

 

 

 

 

 

 

113,876

 

 

 

 

 

 

 

 

 

265,130

 

Interest (expense), net

 

 

 

 

 

 

 

 

(57,996

)

 

 

 

 

 

 

 

 

(38,647

)

 

 

 

 

 

 

 

 

(7,689

)

Other income (expense), net

 

 

 

 

 

 

 

 

727

 

 

 

 

 

 

 

 

 

551

 

 

 

 

 

 

 

 

 

430

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

(68,179

)

 

 

 

 

 

 

 

 

75,780

 

 

 

 

 

 

 

 

 

257,871

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

(17,875

)

 

 

 

 

 

 

 

 

15,836

 

 

 

 

 

 

 

 

 

31,378

 

Net income (loss)

 

 

 

 

 

 

 

$

(50,304

)

 

 

 

 

 

 

 

$

59,944

 

 

 

 

 

 

 

 

$

226,493

 

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

The following tables reconcile segment total assets and capital expenditures incurred (in thousands):

 

 

December 31, 2025

 

 

December 31, 2024

 

Sand & Logistics

 

$

1,946,298

 

 

$

1,972,652

 

Power

 

 

282,130

 

 

 

 

Total assets

 

$

2,228,428

 

 

$

1,972,652

 

 

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Sand & Logistics

 

$

114,112

 

 

$

371,035

 

 

$

431,618

 

Power

 

 

27,356

 

 

 

 

 

 

 

Total capital expenditures incurred

 

$

141,468

 

 

$

371,035

 

 

$

431,618

 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.