Goodwill and Intangible Assets
Goodwill
Changes in the net carrying amount of goodwill by reporting segment (see Note 21) for the years ended December 31, 2024 and 2023 are presented below (in thousands): | | | | | | | | | | | | | | | | | | | | |
| | Well Completion | | Other | | Total |
| Balance as of January 1, 2023 | | | | | | |
| Goodwill | | $ | 86,043 | | | $ | 14,830 | | | $ | 100,873 | |
| Accumulated impairment losses | | (76,829) | | | (12,327) | | | (89,156) | |
| | 9,214 | | | 2,503 | | | 11,717 | |
| Acquisitions | | — | | | — | | | — | |
Impairment losses(a) | | — | | | (1,810) | | | (1,810) | |
| Dispositions | | — | | | (693) | | | (693) | |
| Balance as of December 31, 2023 | | | | | | |
| Goodwill | | 86,043 | | | 14,137 | | | 100,180 | |
| Accumulated impairment losses | | (76,829) | | | (14,137) | | | (90,966) | |
| | 9,214 | | | — | | | 9,214 | |
| Acquisitions | | — | | | — | | | — | |
| Impairment losses | | — | | | — | | | — | |
| Dispositions | | — | | | — | | | — | |
| Balance as of December 31, 2024 | | | | | | |
| Goodwill | | 86,043 | | | 14,137 | | | 100,180 | |
| Accumulated impairment losses | | (76,829) | | | (14,137) | | | (90,966) | |
| | $ | 9,214 | | | $ | — | | | $ | 9,214 | |
a.See Note 7 for a description of impairment losses recognized.
Intangible Assets
The Company had the following definite lived intangible assets recorded as of the dates presented below (in thousands): | | | | | | | | | | | | | | |
| | December 31, |
| | 2024 | | 2023 |
| | | | |
| Trade names | | 7,730 | | | 7,730 | |
| | | | |
| Less: accumulated amortization - trade names | | (7,521) | | | (6,817) | |
| Intangible assets, net | | $ | 209 | | | $ | 913 | |
Amortization expense for intangible assets was $0.7 million, $0.8 million and $0.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. The original life of trade names is 10 years as of December 31, 2024 with a remaining average useful life of 2.5 years.
Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands): | | | | | | | | |
| Year ended December 31: | | Amount |
| 2025 | | $ | 85 | |
| 2026 | | 85 | |
| 2027 | | 39 | |
| | |
| | |
| | |
| | $ | 209 | |
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.