Operating Leases
Operating Lease Assets
The following table presents the carry value of operating lease assets in the Company’s consolidated balance sheets as of December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | |
| 2025 | | 2024 |
| Operating lease assets, net | $ | 12,731 | | | $ | 19,537 | |
Operating lease asset additions are offset by a corresponding increase to operating lease liabilities and do not impact the consolidated statement of cash flows at commencement. The non-cash effect of operating lease additions in 2025, 2024 and 2023 totaled $3.5 million, $1.1 million and $1.3 million, respectively.
The following table provides details regarding the components of operating lease expense based on the initial term of underlying agreements for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Operating lease expense components: | | | | | |
| Leases with initial term of greater than 12 months | $ | 7,767 | | | $ | 8,588 | | | $ | 8,481 | |
| Leases with initial term of 12 months or less | 3,028 | | | 4,159 | | | 4,852 | |
| Total operating lease expense | $ | 10,795 | | | $ | 12,747 | | | $ | 13,333 | |
The Completion and Production Services and Downhole Technologies segments recognized non-cash operating lease asset impairment charges of $1.3 million and $1.0 million, respectively, in 2025 and $3.3 million and $0.5 million, respectively, in 2024 associated with the closure of certain leased facilities.
As further discussed in Note 2, “Summary of Significant Accounting Policies,” during 2025 the Company also assessed the carrying value of the long-lived assets of an asset group within the Downhole Technologies segment. As a result of this assessment, the segment recognized non-cash impairment charges of $2.1 million related to operating lease assets.
Operating Lease Liabilities
The following table provides the scheduled maturities of operating lease liabilities as of December 31, 2025 (in thousands):
| | | | | |
| 2026 | $ | 8,201 | |
| 2027 | 6,084 | |
| 2028 | 3,719 | |
| 2029 | 2,483 | |
| 2030 | 1,349 | |
| Thereafter | — | |
| Total lease payments | 21,836 | |
| Less: Imputed interest | (1,896) | |
| Present value of operating lease liabilities | 19,940 | |
| Less: Current portion | (7,286) | |
| Total long-term operating lease liabilities | $ | 12,654 | |
| | | | | |
| Weighted-average remaining lease term (years) | 3.3 |
| Weighted-average discount rate | 7 | % |