7. INTANGIBLES AND GOODWILL

The components of intangibles, net are as follows (in thousands):

 

 

 

 

December 31,

 

 

 

 

 

2025

 

 

2024

 

 

 

 

 

Gross

 

 

Accumulated Amortization

 

 

Gross

 

 

Accumulated Amortization

 

 

 

Useful life in years

 

Carrying Value

 

 

and Impairment

 

 

Carrying Value

 

 

and Impairment

 

Acquired trade secrets

 

2-20

 

$

4,278

 

 

$

(4,108

)

 

$

4,278

 

 

$

(3,967

)

Acquired patents and technology

 

4-15

 

 

15,604

 

 

 

(14,306

)

 

 

15,722

 

 

 

(14,243

)

Agreements not to compete and other

 

2-5

 

 

2,143

 

 

 

(1,106

)

 

 

1,105

 

 

 

(1,105

)

Acquired trade names and trademarks

 

Indefinite

 

 

4,624

 

 

 

(11

)

 

 

4,624

 

 

 

(11

)

Total intangibles, net

 

 

 

$

26,649

 

 

$

(19,531

)

 

$

25,729

 

 

$

(19,326

)

Our estimated amortization expense relating to these intangibles for the next five years is summarized in the following table (in thousands):

 

 

December 31, 2025

 

2026

 

$

614

 

2027

 

 

459

 

2028

 

 

244

 

2029

 

 

181

 

2030

 

 

1,007

 

The following table summarizes the change in goodwill for each reportable segment (in thousands):

 

 

Reservoir

 

 

Production

 

 

 

 

 

 

Description

 

 

Enhancement

 

 

Total

 

Balance at December 31, 2023

 

$

99,445

 

 

$

 

 

$

99,445

 

Balance at December 31, 2024

 

$

99,445

 

 

$

 

 

$

99,445

 

Business acquisitions

 

 

6,344

 

 

 

 

 

 

6,344

 

Balance at December 31, 2025

 

$

105,789

 

 

$

 

 

$

105,789

 

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Feb 13, 2025

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.