19. Segments
The Company manages its business through two operating segments: Contract Services and Other Services. Contract Services consists of operating Company-owned and customer-owned compression, and gas treating and cooling infrastructure, pursuant to primarily fixed-revenue contracts to enable the production and gathering of natural gas and oil. Other Services consists of a full range of contract services to support ancillary needs of customers, including station construction, maintenance and overhaul, freight and crane charges and other time and material-based offerings.
Our Chief Executive Officer, also our CODM, assesses the performance of each segment based on adjusted gross margin. This metric is calculated by subtracting specific costs of service, such as cost of operations, from revenues directly attributable to the segment. Adjusted gross margin is a key tool used by the CODM for annual budgeting, monthly forecasting, and determining how to allocate capital and resources across the segments.
Revenue includes only sales to external customers.
The following table represents financial metrics by segment:
(in thousands)
Contract
Services
Other
Services
Total
Year ended December 31, 2025
Revenue$1,181,270 $126,830 $1,308,100 
Cost of operations (exclusive of depreciation and amortization)373,493 106,432 479,925 
Adjusted gross margin807,777 20,398 828,175 
Total assets4,280,661 37,356 4,318,017 
Capital expenditures315,472 — 315,472 
Year ended December 31, 2024
Revenue$1,034,173 $125,138 $1,159,311 
Cost of operations (exclusive of depreciation and amortization)355,016 103,360 458,376 
Adjusted gross margin679,157 21,778 700,935 
Total assets4,398,127 36,996 4,435,123 
Capital expenditures336,956 — 336,956 
Year ended December 31, 2023
Revenue$735,605 $114,776 $850,381 
Cost of operations (exclusive of depreciation and amortization)257,092 93,779 350,871 
Adjusted gross margin478,513 20,997 499,510 
Total assets3,211,801 32,305 3,244,106 
Capital expenditures219,795 — 219,795 
The following table reconciles adjusted gross margin to income before income taxes:
Year ended December 31,
(in thousands)
202520242023
Adjusted gross margin:
Contract Services$807,777 $679,157 $478,513 
Other Services20,398 21,778 20,997 
Depreciation and amortization(1)
(276,185)(260,272)(182,869)
Long-lived asset impairment(6,344)(9,921)— 
Selling, general and administrative expenses(144,070)(151,680)(73,308)
(Loss) gain on sale of assets(61,566)(29,612)777 
Interest expense(198,370)(197,144)(222,514)
Loss on extinguishment of debt— — (6,757)
Gain on derivatives— 24,017 20,266 
Other income (expense), net(28,168)(415)31 
Income before income taxes$113,472 $75,908 $35,136 
(1)
All depreciation and amortization is related to the Contract Services segment.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 7, 2025
2023Mar 7, 2024

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.