0001723089-24-000091 | 10-Q | XBRL Viewer

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 113,160	$ 63,144
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(10,078)	(10,676)
Cash flow hedges	3,130	(4,689)
Defined pension and other post-retirement benefits adjustments, net	(37)	53
Other comprehensive loss	(6,985)	(15,312)
Comprehensive income	106,175	47,832
Less: Comprehensive income (loss) attributable to noncontrolling interest	237	(388)
Comprehensive income attributable to ChampionX	$ 105,938	$ 48,220

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is subject to various claims and contingencies related to, among other things, workers’ compensation, general liability (including product liability), automobile claims, health care claims, environmental matters, and lawsuits. We record liabilities where a contingent loss is probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. In accordance with applicable GAAP, the Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. Guarantees and Indemnifications We have provided indemnities in connection with sales of certain businesses and assets, including indemnities for environmental health and safety, tax, and employment matters. We do not have any material liabilities recorded for these indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities. As of March 31, 2024 and December 31, 2023, we had $74.0 million and $70.7 million, respectively, of outstanding letters of credit, surety bonds and guarantees, which expire at various dates through 2039. These financial instruments are primarily maintained as security for insurance, warranty, and other performance obligations. Generally, we would only be liable for the amount of these letters of credit, surety bonds, and guarantees in the event of default in the performance of our obligations, the probability of which we believe is remote. Litigation and Environmental Matters The Company is party to various proceedings and claims incidental to its business, including matters arising under provisions relating to the protection of the environment. We review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and accrued to date, and the availability and extent of insurance coverage. We accrue a liability for legal matters that are probable and can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Matters The Company is currently participating in environmental assessments and remediation at approximately 8 locations, the majority of which are in the United States (“U.S.”). Environmental liabilities have been accrued to reflect our best estimate of future costs. Potential insurance reimbursements are not anticipated in the Company’s accruals for environmental liabilities. As of March 31, 2024 and December 31, 2023, environmental liability accruals related to these locations were $5.8 million and $5.9 million, respectively. Prior to the commencement of our operations as an independent publicly traded company in 2018, groundwater contamination was discovered at the Norris Sucker Rods plant site located in Tulsa, Oklahoma. Initial remedial efforts were undertaken at the time of discovery of the contamination and we have since coordinated monitoring and remediation with the Oklahoma Department of Environmental Quality (“ODEQ”). As part of the ongoing long-term remediation process, we contracted an engineering and consulting firm to develop a range of possible additional remedial alternatives in order to accelerate the remediation process and associated cost estimates for the work. In October 2019, we received the firm’s preliminary remedial alternatives for consideration. We have submitted our long-term remediation plan and it was approved by ODEQ. We are now in discussion with ODEQ to finalize a consent order. Because we have not yet finalized the consent order for further remediation at the site and discussions with ODEQ remain ongoing, we cannot fully anticipate the timing, outcome or possible impact of such further remedial activities, financial or otherwise. As a result of the recommendations in the report, we accrued liabilities for these remediation efforts of approximately $2.0 million as of December 31, 2019. Liabilities could increase in the future at such time as we ultimately reach agreement with ODEQ on our remediation plan and such liabilities become probable and can be reasonably estimated; however, there have been no changes to our estimated liability as of March 31, 2024. Matters Related to Deepwater Horizon Incident Response On April 22, 2010, the deepwater drilling platform, the Deepwater Horizon, operated by a subsidiary of BP plc, sank in the Gulf of Mexico after an explosion and fire, resulting in a massive oil spill. Certain entities that are now subsidiaries of ChampionX as a result of the acquisition of the Chemical Technologies business in 2020 (collectively the “COREXIT Defendants”) supplied COREXIT™ 9500, an oil dispersant product listed on the U.S. EPA National Contingency Plan Product Schedule, which was used in the response to the spill. In connection with the provision of COREXIT™ 9500, the COREXIT Defendants were named in several lawsuits. Cases arising out of the Deepwater Horizon accident were administratively transferred and consolidated for pre-trial purposes under In Re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010, Case No. 10-md-02179 in the United States District Court in the Eastern District of Louisiana (E.D. La.) (“MDL 2179”). Claims related to the response to the oil spill were consolidated in a master complaint captioned the “B3 Master Complaint.” In 2011, Transocean Deepwater Drilling, Inc. and its affiliates (the “Transocean Entities”) named the COREXIT Defendants and other unaffiliated companies as first party defendants (In re the Complaint and Petition of Triton Asset Leasing GmbH, et al, MDL No. 2179, Civil Action 10-2771). In April and May 2011, the Transocean Entities, Cameron International Corporation, Halliburton Energy Services, Inc., M-I L.L.C., Weatherford U.S., L.P. and Weatherford International, Inc. (collectively, the “Cross Claimants”) filed cross claims in MDL 2179 against the COREXIT Defendants and other unaffiliated cross defendants. In April and June 2011, in support of its defense of the claims against it, the COREXIT Defendants filed counterclaims against the Cross Claimants. On May 18, 2012, the COREXIT Defendants filed a motion for summary judgment as to the claims in the B3 Master Complaint. On November 28, 2012, the Court granted the COREXIT Defendants’ motion and dismissed with prejudice the claims in the B3 Master Complaint asserted against the COREXIT Defendants. In February 2024, the remaining claims against other defendants in the one pending “B3” case that had asserted claims against the COREXIT Defendants were dismissed and a final judgment was entered. The deadline for that plaintiff to appeal any rulings in that case, including the MDL 2179 Court’s order granting Nalco’s motion for summary judgment, expired on March 11, 2024. The Company intends to vigorously defend these lawsuits and also believes that it has rights to contribution and/or indemnification (including legal expenses) from third parties. However, we cannot predict the outcome of these lawsuits, the involvement it might have in these matters in the future, or the potential for future litigation.

DERIVATIVES AND HEDGING TRANSACTIONS - Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Foreign Exchange Forward Contracts and Interest Rate Swap
Derivative [Line Items]
Notional value of foreign currency forward contracts and interest rate swaps	$ 907,471	$ 892,711

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. The hierarchy is broken down into three levels:

Level 1- Inputs are quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2- Inputs include observable inputs other than quoted prices in active markets.

Level 3- Inputs are unobservable inputs for which there is little or no market data available.

The carrying amount and the estimated fair value for assets and liabilities measured on a recurring basis are as follows:


		Carrying Amount
(in thousands)	Measurement Level	March 31, 2024		December 31, 2023
Assets
Foreign currency forward contracts	Level 2	$	2,320	$	6,231
Interest rate swaps	Level 2	8,094		5,599
Total		$	10,414	$	11,830

Liabilities
Foreign currency forward contracts	Level 2	$	1,639	$	5,354
Interest rate swaps	Level 2	—		—
Total		$	1,639	$	5,354

The carrying value of foreign currency forward contracts is at fair value, which is determined based on foreign currency exchange rates as of the balance sheet date and is classified within Level 2. The primary inputs into the valuation of interest rate swaps are interest yield curves, interest rate volatility, and credit spreads. Our interest rate swaps are classified within Level 2 of the fair value hierarchy, as these significant inputs are corroborated by observable market data. For purposes of fair value disclosure above, derivative values are presented gross. See Note 12—Derivatives and Hedging Transactions for further discussion of gross versus net presentation of the Company’s derivatives.

The carrying amounts of cash and cash equivalents, trade receivables, and accounts payable approximate their fair value due to their short-term nature.

The fair value of our term loan facility is based on Level 2 quoted market prices for the same or similar debt instruments. The fair value of the revolving line of credit approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently (Level 2). The carrying amount and the estimated fair value of long-term debt, including current maturities, held by the Company were:


	March 31, 2024				December 31, 2023
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
2022 Revolving Credit Facility	$	—	$	—	$	—	$	—
2022 Term Loan Facility	$	617,211	$	621,069	$	618,762	$	623,402

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

CASH FLOW INFORMATION (Details) $ in Thousands	3 Months Ended
CASH FLOW INFORMATION (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)
Supplemental Cash Flow Elements [Abstract]
Inventory transferred into property, plant, and equipment	$ 29,500	$ 28,400
Foreign currency exchange rate, remeasurement	0.31
Loss on investments	$ 4,092	$ 0

FAIR VALUE MEASUREMENTS - Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Assets
Derivative assets	$ 10,414	$ 11,830
Liabilities
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities
Derivative liabilities	$ 1,639	5,354
Fair Value, Recurring \| Level 2
Assets
Derivative assets	10,414	11,830
Liabilities
Derivative liabilities	1,639	5,354
Fair Value, Recurring \| Foreign currency forward contracts \| Level 2
Assets
Derivative assets	2,320	6,231
Liabilities
Derivative liabilities	1,639	5,354
Fair Value, Recurring \| Interest rate swaps \| Level 2
Assets
Derivative assets	8,094	5,599
Liabilities
Derivative liabilities	$ 0	$ 0

DERIVATIVES AND HEDGING TRANSACTIONS - Loss on Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total loss (gain) of derivative instruments	$ (1,199)	$ (453)
Cost of goods and services \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total loss (gain) of derivative instruments	(438)	(957)
Interest expense \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total loss (gain) of derivative instruments	(1,714)	(937)
Other (income) expense, net \| Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total loss (gain) of derivative instruments	$ 953	$ 1,441

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of ChampionX have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from our estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments unless otherwise specified) necessary for a fair statement of our financial condition and results of operations as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2024.
New Accounting Standards Issued	New Accounting Standards Issued In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” which requires a public business entity to disclose its significant segment expense categories and amounts for each reportable segment. A significant segment expense is an expense that is significant to the segment, regularly provided to or easily computes from information regularly provides to the chief operating decision maker (CODM), and included in the reported measure of segment profit or loss. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, “Improvements to Income Tax Disclosure” which requires a public business entity to disclose disaggregated information about the entity’s effective tax rate reconciliation, using both percentages and reporting currency amounts for specific standardized categories. Separate disclosures will be required for any reconciling items that are equal to or greater than a specified quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.
Fair Value Measurements	Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. The hierarchy is broken down into three levels: Level 1- Inputs are quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2- Inputs include observable inputs other than quoted prices in active markets. Level 3- Inputs are unobservable inputs for which there is little or no market data available.

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory, Net [Abstract]
Raw materials	$ 134,261	$ 137,402
Work in progress	18,835	16,915
Finished goods	473,981	445,437
Subtotal	627,077	599,754
Inventory reserve	(30,169)	(29,081)
LIFO adjustments	(53,684)	(49,124)
Inventories, net	$ 543,224	$ 521,549

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted

A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows:


	Three Months Ended March 31,
(in thousands, except per share data)	2024		2023
Net income attributable to ChampionX	$	112,923	$	63,532

Weighted-average number of shares outstanding	190,803		198,286
Dilutive effect of stock-based compensation	3,161		4,154
Total shares and dilutive securities	193,964		202,440

Earnings per share attributable to ChampionX:
Basic	$	0.59	$	0.32
Diluted	$	0.58	$	0.31

DEBT (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Long-term debt

Long-term debt consisted of the following:


(in thousands)	March 31, 2024		December 31, 2023
2022 Revolving Credit Facility	$	—	$	—
2022 Term Loan Facility	617,211		618,762
Total	617,211		618,762
Net unamortized discounts and issuance costs	(17,433)		(18,276)
Total long-term debt	599,778		600,486
Current portion of long-term debt (1)	(6,203)		(6,203)
Long-term debt, less current portion	$	593,575	$	594,283

_______________________

(1) Includes the mandatory amortization payments due within twelve months related to the 2022 Term Loan Facility as of March 31, 2024.

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 922,141	$ 948,347
United States
Disaggregation of Revenue [Line Items]
Total revenue	495,616	503,425
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	130,019	134,094
Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenue	101,348	101,241
Canada
Disaggregation of Revenue [Line Items]
Total revenue	101,032	98,897
Europe
Disaggregation of Revenue [Line Items]
Total revenue	58,116	63,921
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	18,557	19,601
Australia
Disaggregation of Revenue [Line Items]
Total revenue	17,453	17,273
Other
Disaggregation of Revenue [Line Items]
Total revenue	0	9,895
Operating Segments \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	590,108	591,684
Operating Segments \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	252,614	251,548
Operating Segments \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	55,206	56,707
Operating Segments \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	24,705	25,806
Operating Segments \| United States \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	242,484	241,761
Operating Segments \| United States \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	195,667	192,541
Operating Segments \| United States \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	43,620	42,960
Operating Segments \| United States \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	13,845	12,573
Operating Segments \| Latin America \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	122,313	124,471
Operating Segments \| Latin America \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	4,325	4,688
Operating Segments \| Latin America \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	97	0
Operating Segments \| Latin America \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	3,284	3,968
Operating Segments \| Middle East & Africa \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	79,367	76,987
Operating Segments \| Middle East & Africa \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	14,662	15,421
Operating Segments \| Middle East & Africa \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	2,248	2,481
Operating Segments \| Middle East & Africa \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	5,563	6,737
Operating Segments \| Canada \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	77,880	74,164
Operating Segments \| Canada \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	18,315	20,537
Operating Segments \| Canada \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	4,323	3,767
Operating Segments \| Canada \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	514	418
Operating Segments \| Europe \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	47,653	49,803
Operating Segments \| Europe \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	4,939	4,959
Operating Segments \| Europe \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	4,387	6,160
Operating Segments \| Europe \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	1,137	368
Operating Segments \| Asia-Pacific \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	15,325	9,219
Operating Segments \| Asia-Pacific \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	2,339	2,078
Operating Segments \| Asia-Pacific \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	531	1,337
Operating Segments \| Asia-Pacific \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	362	1,179
Operating Segments \| Australia \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	5,086	5,949
Operating Segments \| Australia \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	12,367	11,324
Operating Segments \| Australia \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Operating Segments \| Australia \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Operating Segments \| Other \| Production Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	0	9,330
Operating Segments \| Other \| Production & Automation Technologies
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Operating Segments \| Other \| Drilling Technologies
Disaggregation of Revenue [Line Items]
Total revenue	0	2
Operating Segments \| Other \| Reservoir Chemical Technologies
Disaggregation of Revenue [Line Items]
Total revenue	0	563
Corporate and other
Disaggregation of Revenue [Line Items]
Total revenue	(492)	22,602
Corporate and other \| United States
Disaggregation of Revenue [Line Items]
Total revenue	0	13,590
Corporate and other \| Latin America
Disaggregation of Revenue [Line Items]
Total revenue	0	967
Corporate and other \| Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenue	(492)	(385)
Corporate and other \| Canada
Disaggregation of Revenue [Line Items]
Total revenue	0	11
Corporate and other \| Europe
Disaggregation of Revenue [Line Items]
Total revenue	0	2,631
Corporate and other \| Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	0	5,788
Corporate and other \| Australia
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Corporate and other \| Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 0	$ 0

ACQUISITIONS, DIVESTITURES AND SALE LEASEBACK	3 Months Ended
ACQUISITIONS, DIVESTITURES AND SALE LEASEBACK	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS, DIVESTITURES AND SALE LEASEBACK	ACQUISITIONS, DIVESTITURES AND SALE LEASEBACK Acquisitions OTS Consulting Services LLP (OTS) On January 5, 2024 we completed an agreement with OTS Consulting Services LLP (“OTS”), a privately held engineering services company based in Pune, India, to acquire the assets and liabilities relating solely to the services performed by OTS for us prior to the acquisition. OTS specializes in digital transformation and advanced IT solutions. The acquired assets and liabilities are included in our Production & Automation Technologies segment. Under the terms of the agreement, we paid an initial amount of $8.4 million. As part of our purchase price allocation, we recorded goodwill of $6.4 million. The pro forma effect of this acquisition on revenue and net income has been determined to be immaterial to our financial statements. Artificial Lift Performance Limited (ALP) On February 26, 2024, we acquired Artificial Lift Performance Limited (“ALP”), a provider of advanced analytics solutions for enhancing oil and gas production performance based in Edinburgh, Scotland. These assets and liabilities have been included in our Production & Automation Technologies segment. Under the terms of the agreements, we paid an initial amount of $13.1 million, with an additional $1.7 million payable on the first anniversary of the closing date, and a maximum earn out potential of $3.0 million over the next two years. As part of our purchase price allocation, we recorded definite-lived intangible assets of $10.4 million which consists of assumed software, trademarks and customer relationships. In addition we recorded $6.9 million of goodwill. The pro forma effect of this acquisition on revenue and net income has been determined to be immaterial to our financial statements. RMSpumptools Limited (RMS) On March 21, 2024, we entered into an agreement to acquire RMSpumptools Limited, a UK-based company that designs and manufactures highly engineered mechanical and electrical solutions for complex artificial lift applications. Under the terms of the agreement, the net purchase price is approximately $110 million at the current exchange rate inclusive of net working capital adjustments. The closing of the transaction is conditioned on, among other things, the receipt of certain customary regulatory approvals and the seller’s shareholders’ approval, and is expected to occur towards the end of second quarter or beginning of the third quarter of 2024. Divestitures Russia Due to the deteriorating business conditions in Russia following the Ukraine invasion and the resultant sanctions imposed by the United States, European Union, and United Kingdom, we initiated a plan to dispose of our operations in Russia (the “CT Russia Business”), which is included in our Production Chemical Technologies segment. As a result, the CT Russia Business met the criteria to be classified as held for sale during the second quarter of 2022 and we measured the carrying value of the disposal group to the lower of its carrying value or fair value less costs to sell. We assess the fair value of the CT Russia Business (less any costs to sell) each reporting period that it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. During the first quarter of 2023, we assessed the fair value less cost to sell the business to be zero, resulting in a $13.0 million pre-tax impairment expense recorded during the three months ended March 31, 2023, which is reflected in loss (gain) on disposal group and sale-leaseback transaction within our condensed consolidated statements of income. There were no charges in the three month period ended March 31, 2024. Sale Leaseback Orem, Utah On March 29, 2024, we entered into a sale-leaseback agreement with an unrelated party involving three buildings in Orem, Utah. Under the arrangement, the property (land and buildings) with a net book value of $14.1 million was sold for $45.5 million and leased back under a twenty year lease agreement. We received cash of $44.3 million, net of closing costs and other fees related to the sale of the property. The lease provides for annual base payments of $3.3 million and expires in March 2044 with an option to extend the term of the lease for one additional seven-year period. The transaction qualifies as a sale leaseback, and as a result, we recorded a $29.9 million net gain on sale. Additionally, we established a $37.7 million right of use asset and $37.7 million operating lease liability.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 386,017	$ 288,557
Receivables, net of allowances of $6,257 in 2024 and $5,734 in 2023	471,813	534,534
Inventories, net	543,224	521,549
Assets held for sale	15,418	15,565
Prepaid expenses and other current assets	59,692	65,212
Total current assets	1,476,164	1,425,417
Property, plant, and equipment, net of accumulated depreciation of $784,428 in 2024 and $781,367 in 2023	759,038	773,552
Goodwill	679,704	669,064
Intangible assets, net	240,459	243,553
Operating lease right-of-use assets	103,957	69,561
Other non-current assets	63,627	60,555
Total assets	3,322,949	3,241,702
Current Liabilities:
Current portion of long-term debt	6,203	6,203
Accounts payable	532,205	451,680
Accrued compensation and employee benefits	58,389	109,626
Current portion of operating lease liabilities	22,796	23,292
Accrued distributor fees	36,658	56,443
Accrued expenses and other current liabilities	150,942	135,505
Total current liabilities	807,193	782,749
Long-term debt	593,575	594,283
Deferred income taxes	58,400	71,497
Operating lease liabilities	76,997	41,975
Other long-term liabilities	91,610	90,167
Total liabilities	1,627,775	1,580,671
Stockholders’ equity:
Common stock (2.5 billion shares authorized, $0.01 par value) 190.4 million shares and 191.3 million shares issued and outstanding in 2024 and 2023, respectively	1,904	1,913
Capital in excess of par value of common stock	2,143,883	2,166,911
Accumulated deficit	(391,813)	(455,676)
Accumulated other comprehensive loss	(43,511)	(36,526)
ChampionX stockholders’ equity	1,710,463	1,676,622
Noncontrolling interest	(15,289)	(15,591)
Total equity	1,695,174	1,661,031
Total liabilities and equity	$ 3,322,949	$ 3,241,702

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 0	$ 0
Contract liabilities - current	$ 24,360	$ 27,406

EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Potentially diluted securities excluded as anti-dilutive (in shares)	0.5	0.6

RESTRUCTURING EXPENSE

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING EXPENSE

We approved various restructuring plans related to the consolidation of product lines and associated facility closures and workforce reductions during prior periods, which we expect to be completed during 2024. We recognized income of $0.4 million during the three months ended March 31, 2024 to reflect the adjustments for differences in actual costs compared to accruals as we were able to mitigate certain expenses under a previous restructuring plan. We recognized charges of $2.2 million during the three months ended March 31, 2023.

The following table presents the restructuring expense by segment as classified in our condensed consolidated statements of income.


	Three Months Ended March 31,
(in thousands)	2024		2023
Segment restructuring expense (income):
Production Chemical Technologies	$	(355)	$	1,144
Production & Automation Technologies	—		785
Drilling Technologies	—		—
Reservoir Chemical Technologies	—		396
Corporate and other	—		(95)
Total	$	(355)	$	2,230

Statements of Income classification:
Cost of goods and services	$	—	$	1,531
Selling, general and administrative expense	(355)		699
Total	$	(355)	$	2,230

Our liability balance for restructuring expense at March 31, 2024 reflects contract termination costs, employee severance and related benefits initiated during prior periods.

The following table details our restructuring accrual activities during the three months ended March 31, 2024:


(in thousands)	Restructuring Accrual Balance
December 31, 2023	$	13,974
Restructuring charges	(355)

Payments	(386)

March 31, 2024	$	13,233

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2024

Inventory, Net [Abstract]

Components of Inventory

Inventories consisted of the following:


(in thousands)	March 31, 2024		December 31, 2023
Raw materials	$	134,261	$	137,402
Work in progress	18,835		16,915
Finished goods	473,981		445,437
	627,077		599,754
Inventory reserve	(30,169)		(29,081)
LIFO adjustments (1)	(53,684)		(49,124)
Inventories, net	$	543,224	$	521,549

_______________________

(1) Represents the amount by which the current cost of LIFO inventories exceeded their carrying value.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared to common shareholders (in dollars per share)	$ 0.095	$ 0.085

RESTRUCTURING EXPENSE - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring charges	$ (355)	$ 2,230

ACCOUNTS RECEIVABLE FACILITIES	3 Months Ended
ACCOUNTS RECEIVABLE FACILITIES	Mar. 31, 2024
Receivables [Abstract]
ACCOUNTS RECEIVABLE FACILITIES	ACCOUNTS RECEIVABLE FACILITIES On June 28, 2022, we entered into an uncommitted accounts receivable purchase agreement (the “JPM Accounts Receivable Facility”) with JPMorgan Chase Bank, N.A. as the purchaser. The amount available for sale under the JPM Accounts Receivable Facility fluctuates over time based on the total amount of eligible receivables generated during the normal course of business. A maximum of $160.0 million in receivables may be sold and remain unpaid under the JPM Accounts Receivable Facility at any time. Accounts receivable sold under the JPM Accounts Receivable were $174.2 million for the three months ended March 31, 2024. The accounts receivables sold that remained outstanding under the JPM Accounts Receivable Facility as of March 31, 2024 was $112.9 million. During this period, cash receipts from the purchaser at the time of the sale were classified as operating activities in our condensed consolidated statement of cash flows. The difference between the carrying amount of the accounts receivables sold and the sum of the cash received is recorded as a loss on sale of receivables in other income (expense), net in our condensed consolidated statements of income. The loss on sale of accounts receivable was $1.9 million and $1.5 million for the three months ended March 31, 2024 and 2023, respectively. On March 28, 2024, we entered into an uncommitted accounts receivable purchase agreement (the “HSBC Accounts Receivable Facility” and, together with the JPM Accounts Receivable Facility, the “Accounts Receivable Facilities”) with HSBC Bank USA, National Association, as the purchaser. The amount available for sale under the HSBC Accounts Receivable Facility fluctuates over time based on the total amount of eligible receivables generated during the normal course of business. A maximum of CAD $40.0 million or approximately $30.0 million in receivables may be sold and remain unpaid under the HSBC Accounts Receivable Facility at any time. As of March 31, 2024 no accounts receivable related to the HSBC agreement have been sold. Transfers under the Accounts Receivable Facilities are accounted for as sales of receivables, resulting in the receivables being derecognized from our condensed consolidated balance sheet. The purchaser assumes the credit risk at the time of sale and has the right at any time to assign or transfer (including as a participation interest) any of its rights under the purchased receivables to another bank or financial institution.

REVENUE (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

Revenue disaggregated by geography was as follows:


	Three Months Ended March 31, 2024
(in thousands)	Production Chemical Technologies		Production & Automation Technologies		Drilling Technologies		Reservoir Chemical Technologies		Corporate and other (1)		Total
United States	$	242,484	$	195,667	$	43,620	$	13,845	$	—	$	495,616
Latin America	122,313		4,325		97		3,284		—		130,019
Middle East & Africa	79,367		14,662		2,248		5,563		(492)		101,348
Canada	77,880		18,315		4,323		514		—		101,032
Europe	47,653		4,939		4,387		1,137		—		58,116
Asia-Pacific	15,325		2,339		531		362		—		18,557
Australia	5,086		12,367		—		—		—		17,453
Other	—		—		—		—		—		—
Total revenue	$	590,108	$	252,614	$	55,206	$	24,705	$	(492)	$	922,141

	Three Months Ended March 31, 2023
(in thousands)	Production Chemical Technologies		Production & Automation Technologies		Drilling Technologies		Reservoir Chemical Technologies		Corporate and other (1)		Total
United States	$	241,761	$	192,541	$	42,960	$	12,573	$	13,590	$	503,425
Latin America	124,471		4,688		—		3,968		967		134,094
Middle East & Africa	76,987		15,421		2,481		6,737		(385)		101,241
Canada	74,164		20,537		3,767		418		11		98,897
Europe	49,803		4,959		6,160		368		2,631		63,921
Asia-Pacific	9,219		2,078		1,337		1,179		5,788		19,601
Australia	5,949		11,324		—		—		—		17,273
Other	9,330		—		2		563		—		9,895
Total revenue	$	591,684	$	251,548	$	56,707	$	25,806	$	22,602	$	948,347

______________________

(1) The sales related to the Cross Supply and Product Transfer Agreement with Ecolab were included within Corporate and other from June 3, 2020 through June 30, 2023. Beginning July 1, 2023, these sales and expenses are recognized in the Production Chemical Technologies segment.

Schedule of Contract Balances

The beginning and ending contract asset and contract liability balances from contracts with customers were as follows:


(in thousands)	March 31, 2024		December 31, 2023
Contract assets	$	—	$	—
Contract liabilities - current	$	24,360	$	27,406

DERIVATIVES AND HEDGING TRANSACTIONS

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING TRANSACTIONS

The Company uses foreign currency forward contracts to manage risks associated with foreign currency exchange rates. The Company also utilizes floating-to-fixed interest rate swap agreements as cash flow hedges on certain debt to mitigate interest rate risk. The Company does not hold derivative financial instruments of a speculative nature or for trading purposes. Derivative contracts are recorded as assets and liabilities on the balance sheet at fair value. We evaluated the interest rate swap hedge effectiveness and determined it to be perfectly effective. We evaluate foreign currency forward contracts’ hedge effectiveness at contract inception and thereafter on a quarterly basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge. Changes in fair value attributable to changes in spot exchange rates for derivative contracts that have been designated as cash flow hedges are recognized in accumulated other comprehensive income (“AOCI”) and reclassified into earnings in the same period the hedged transaction affects earnings and are presented in the same income statement line as the earnings effect of the hedged item. The Company accounts for the interest rate swap agreements as a cash flow hedge, thus the effective portion of gains and losses resulting from changes in fair value are recognized in AOCI and are amortized to interest expense over the term of the respective debt. Cash flows from derivatives are classified in the statement of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships.

The Company is exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts and interest rate swaps. We monitor our exposure to credit risk by using major banks and financial institutions as counterparties and monitoring their financial condition and credit profile. The Company does not anticipate nonperformance by any of these counterparties, and therefore, recording a valuation allowance against the Company’s derivative balance is not considered necessary.

Derivative Positions Summary

Certain of the Company’s derivative transactions are subject to master netting arrangements that allow the Company to settle with the same counterparties. These arrangements generally do not call for collateral and as of the applicable dates presented in the following table, no cash collateral had been received or pledged related to the underlying derivatives. We have elected to present our derivative balances on a gross basis on the condensed consolidated balance sheet.

The following table summarizes the gross fair value of the Company’s outstanding derivatives and the lines in which they are presented on the condensed consolidated balance sheet.


	Derivative Assets				Derivative Liabilities
(in thousands)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Prepaid expenses and other current assets	$	7,848	$	11,004	$	—	$	—
Other non-current assets	2,566		826		—		—
Accrued expenses and other current liabilities	—		—		1,639		5,354

	$	10,414	$	11,830	$	1,639	$	5,354

The following table summarizes the notional values of the Company’s outstanding derivatives:


(in thousands)	March 31, 2024		December 31, 2023
Notional value of foreign currency forward contracts and interest rate swaps	$	907,471	$	892,711

Cash Flow Hedges

The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on forecasted foreign currency transactions, primarily related to inventory purchases. These forward contracts are designated as cash flow hedges. The changes in fair value of these contracts attributable to changes in spot exchange rates are recorded in AOCI until the hedged items affect earnings, at which time the gain or loss is reclassified into the same line item in the condensed consolidated statements of income as the underlying exposure being hedged. The forward points are marked-to-market monthly and recognized in the same line item in the condensed consolidated statements of income as the underlying exposure being hedged.

Under interest rate swaps, we agree with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional principal amount. Any unrealized gain or loss at the time of settlement will be reclassified to interest expense, where we record the interest expense on the associated debt.

Derivatives Not Designated as Hedging Instruments

The Company also uses foreign currency forward contracts to offset its exposure to the change in value of certain foreign currency denominated assets and liabilities, primarily receivables and payables, which are remeasured at the end of each period. Although the contracts are effective economic hedges, they are not designated as accounting hedges. Therefore, changes in the value of these derivatives are recognized immediately in earnings, thereby offsetting the current earnings effect of the related foreign currency denominated assets and liabilities.

Effect of Derivative Instruments on Income

The loss of all derivative instruments recognized is summarized below:


	Three Months Ended March 31,
(in thousands)	2024		2023
Loss (gain) reclassified from AOCI to income on cash flow hedges:
Cost of goods and services	$	(438)	$	(957)
Interest expense	(1,714)		(937)
Loss on derivatives not designated as hedging instruments:
Other (income) expense, net	953		1,441
Total loss (gain) of derivative instruments	$	(1,199)	$	(453)

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Business ChampionX Corporation is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. Our expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. Unless the context requires otherwise, references in this report to “we,” “us,” “our,” “the Company,” or “ChampionX” mean ChampionX Corporation, together with its subsidiaries where the context requires. Merger Agreement On April 2, 2024, ChampionX entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Schlumberger Limited, a Curaçao corporation (“SLB”), Sodium Holdco, Inc., a Delaware corporation and indirect wholly owned subsidiary of SLB, (“Holdco”), and Sodium Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of SLB and Holdco (“Merger Sub”), pursuant to which, and subject to the terms and conditions therein, Merger Sub will be merged with and into ChampionX (the “Merger”, together with the other transactions contemplated by the Merger Agreement, the “Transactions”), with ChampionX surviving the Merger as an indirect wholly owned subsidiary of SLB. Pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”) and by virtue of the Merger, each share of common stock, par value $0.01 per share, of ChampionX issued and outstanding immediately prior to the Effective Time (other than any shares of ChampionX common stock held in the treasury of ChampionX or held by SLB, Holdco or any direct or indirect wholly owned subsidiary of SLB, in each case except for any such shares held on behalf of third parties) will be converted, without any action on the part of the holder thereof, into the right to receive 0.735 shares of common stock, par value $0.01 per share, of SLB (“SLB Common Stock”), which shares will be duly authorized and validly issued in accordance with applicable laws (the “Equity Consideration”) and, if applicable, cash in lieu of fractional shares. The Merger Agreement contains certain termination rights for each of ChampionX and SLB. Upon termination of the Merger Agreement under specified circumstances, including the termination by SLB prior to receipt of approval by ChampionX stockholders if the Board fails to recommend the adoption of the Merger Agreement, changes its recommendation, approves an alternative proposal, fails to include its recommendation in the Form S-4 or takes certain other actions as set forth in the Merger Agreement, subject in each case to certain exceptions, or the consummation of a competing acquisition proposal within 12 months of the termination of the Merger Agreement for certain specified reasons, ChampionX would be required to pay SLB a termination fee of $265.4 million. Upon termination of the Merger Agreement under specified circumstances, including the termination by either party if certain Mutual Legal Restraints exist, specified regulatory approvals have not been obtained or if the consummation of the Merger does not occur on or prior to April 2, 2025 (subject to an automatic extension to October 2, 2025 under specified circumstances) and, subject to certain exceptions, parties will have satisfied conditions to the merger or by SLB under specified circumstances, SLB would be required to pay ChampionX a termination fee of $326.6 million. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of ChampionX have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from our estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments unless otherwise specified) necessary for a fair statement of our financial condition and results of operations as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2024. Significant Accounting Policies Please refer to “Note 1–Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for the discussion of our significant accounting policies. New Accounting Standards Issued In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” which requires a public business entity to disclose its significant segment expense categories and amounts for each reportable segment. A significant segment expense is an expense that is significant to the segment, regularly provided to or easily computes from information regularly provides to the chief operating decision maker (CODM), and included in the reported measure of segment profit or loss. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, “Improvements to Income Tax Disclosure” which requires a public business entity to disclose disaggregated information about the entity’s effective tax rate reconciliation, using both percentages and reporting currency amounts for specific standardized categories. Separate disclosures will be required for any reconciling items that are equal to or greater than a specified quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

STOCKHOLDERS' EQUITY	3 Months Ended
STOCKHOLDERS' EQUITY	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY Dividends On January 31, 2024, our Board of Directors (“Board”) approved an increase of our regular quarterly cash dividend to $0.095 per share of the Company’s common stock and declared our next quarterly cash dividend payable on April 26, 2024, to shareholders of record on April 5, 2024. As a result, we recorded a dividend payable of $18.8 million on our condensed consolidated balance sheet as of March 31, 2024. Subsequent dividend declarations, if any, including the amounts and timing of future dividends, are subject to approval by the Board and will depend on future business conditions, financial conditions, results of operations and other factors. Repurchases On March 7, 2022, the Company announced that our Board authorized the Company to repurchase up to $250 million of its common stock which was increased by our Board to $750 million on October 24, 2022. On January 31, 2024, our Board authorized a further increase in the aggregate value of shares that may be repurchased under the share repurchase program to $1.5 billion. This program has no time limit and does not obligate the Company to acquire any particular amount of shares of its common stock. During the three months ended March 31, 2024, we repurchased and cancelled 1,611,055 shares of common stock for a total of $49.4 million, including commissions and excise tax. During the three months ended March 31, 2023, we repurchased and cancelled 1,302,499 shares of common stock for a total of $40.4 million, including commissions and excise tax.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SUPPLY CHAIN FINANCE	3 Months Ended
SUPPLY CHAIN FINANCE	Mar. 31, 2024
Debt Disclosure [Abstract]
SUPPLY CHAIN FINANCE	SUPPLY CHAIN FINANCE We use a supply chain finance program in connection with the purchase of goods, which allows our suppliers to work directly with a third party to provide financing by purchasing their receivables earlier in the payment cycle. We maintain the same contractually agreed upon invoice terms prior to each supplier entering into the program. As of March 31, 2024, we had approximately $37.9 million outstanding under the program, which is included in accounts payable on our condensed consolidated balance sheet.

FAIR VALUE MEASUREMENTS - Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Sep. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 617,211	$ 618,762
2022 Revolving Credit Facility \| 2022 Revolving Credit Facility \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Fair Value	0	0
2022 Term Loan Facility \| 2022 Term Loan Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	617,211	618,762	$ 620,300
2022 Term Loan Facility \| 2022 Term Loan Facility \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	617,211	618,762
Fair Value	$ 621,069	$ 623,402

INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The components of our definite- and indefinite-lived intangible assets were as follows:


	March 31, 2024						December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Customer relationships	$	585,014	$	444,704	$	140,310	$	583,326	$	438,181	$	145,145
Unpatented technologies	149,960		79,943		70,017		142,760		75,224		67,536

Trademarks	60,156		40,367		19,789		59,862		39,564		20,298
Patents	35,588		30,045		5,543		36,438		30,664		5,774

	830,718		595,059		235,659		822,386		583,633		238,753
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
In-process research and development	1,200		—		1,200		1,200		—		1,200
	4,800		—		4,800		4,800		—		4,800
Total	$	835,518	$	595,059	$	240,459	$	827,186	$	583,633	$	243,553

Goodwill

The carrying amount of goodwill, including changes therein, by reportable segment is below:


(in thousands)	Production Chemical Technologies		Production & Automation Technologies		Drilling Technologies		Reservoir Chemical Technologies		Total
December 31, 2023	$	356,558	$	211,370	$	101,136	$	—	$	669,064
Acquisitions (1)	—		13,285		—		—		13,285


Foreign currency translation	(2,478)		(167)		—		—		(2,645)
March 31, 2024	$	354,080	$	224,488	$	101,136	$	—	$	679,704

______________________

(1) See Note 10—Acquisitions and Divestitures for additional information related to the acquisitions completed during the first quarter of 2024.

Goodwill is not subject to amortization but is tested for impairment on an annual basis or more frequently if impairment indicators arise.

DEBT - Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Sep. 29, 2023
Debt Instrument [Line Items]
Total	$ 617,211	$ 618,762
Net unamortized discounts and issuance costs	(17,433)	(18,276)
Total long-term debt	599,778	600,486
Current portion of long-term debt	(6,203)	(6,203)
Long-term debt, less current portion	593,575	594,283
2022 Revolving Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Total	0	0
2022 Term Loan Facility \| 2022 Term Loan Facility
Debt Instrument [Line Items]
Total	$ 617,211	$ 618,762	$ 620,300

DERIVATIVES AND HEDGING TRANSACTIONS - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative Assets
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other current assets	Prepaid expenses and other current assets
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Derivative asset, current	$ 7,848	$ 11,004
Derivative asset, noncurrent	2,566	826
Derivative assets	$ 10,414	$ 11,830
Derivative Liabilities
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Derivative liability, current	$ 1,639	$ 5,354
Derivative liabilities	$ 1,639	$ 5,354

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 02, 2024	Apr. 03, 2024	Mar. 31, 2024	Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01
Subsequent Event \| Merger Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value (in dollars per share)	$ 0.01
Conversion ratio	$ 0.735
Period for termination fees payable	12 months
Possible termination fee	$ 265.4
Subsequent Event \| Merger Agreement \| Schlumberger Limited
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value (in dollars per share)	$ 0.01
Possible termination fee		$ 326.6

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	3 Months Ended	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Mar. 31, 2024 USD ($) location	Dec. 31, 2023 USD ($)	Feb. 29, 2024 case	Dec. 31, 2019 USD ($)
Loss Contingencies [Line Items]
Outstanding letters of credit	$ 74.0	$ 70.7
Environmental loss contingency, noncurrent, statement of financial position, extensible enumeration, not disclosed flag	true	true
Accrued liabilities for remediation	$ 5.8	$ 5.9
Environmental Assessments and Remediation
Loss Contingencies [Line Items]
Number of locations with environmental matters (in locations) \| location	8
Oklahoma Department of Environmental Quality
Loss Contingencies [Line Items]
Accrued liabilities for remediation				$ 2.0
Deepwater Horizon Incident Response
Loss Contingencies [Line Items]
Number of pending cases \| case			1

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Revenue and Operating Profit

Segment revenue and segment operating profit


	Three Months Ended March 31,
(in thousands)	2024		2023
Segment revenue:
Production Chemical Technologies	$	590,108	$	591,684
Production & Automation Technologies	252,614		251,548
Drilling Technologies	55,206		56,707
Reservoir Chemical Technologies	24,705		25,806
Corporate and other (1)	(492)		22,602
Total revenue	$	922,141	$	948,347

Segment operating profit (loss):
Production Chemical Technologies	$	87,832	$	66,314
Production & Automation Technologies	28,470		34,792
Drilling Technologies	44,402		11,887
Reservoir Chemical Technologies	3,746		1,987
Total segment operating profit	164,450		114,980
Corporate and other (1)	10,759		10,701
Interest expense, net	13,935		12,466
Income before income taxes	$	139,756	$	91,813

_______________________

(1) Corporate and other includes costs not directly attributable or allocated to our reportable segments such as overhead and other costs pertaining to corporate executive management and other administrative functions, and the results attributable to our noncontrolling interest. Additionally, the sales and expenses related to the Cross Supply and Product Transfer Agreement with Ecolab, Inc. (“Ecolab”) were included within Corporate and other from June 3, 2020, the date of the merger in which we acquired the Chemical Technologies business, through June 30, 2023. Beginning, July 1, 2023, these sales and expenses are recognized in the Production Chemical Technologies segment.

CASH FLOW INFORMATION	3 Months Ended
CASH FLOW INFORMATION	Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]
CASH FLOW INFORMATION	CASH FLOW INFORMATION Leased Asset Program Our electrical submersible pumping leased asset program is reported in our Production & Automation Technologies segment. At the time of purchase, assets are recorded to inventory and are transferred to property, plant, and equipment when a customer contracts for an asset under our leased asset program. During the three months ended March 31, 2024 and 2023, we transferred $29.5 million and $28.4 million, respectively, of inventory into property, plant, and equipment as a result of assets entering our leased asset program. Expenditures for assets that are placed into our leased asset program expected to be recovered through sale are reported in leased assets in the operating section of our condensed consolidated statements of cash flows. All other capitalizable expenditures for assets that are placed into our leased asset program are classified as capital expenditures in the investing section of our condensed consolidated statements of cash flows. Argentina Blue Chip Swap The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in the use of a parallel U.S. dollar exchange rate to convert available Argentine pesos to U.S. dollars. This parallel rate, which cannot be used as the basis to remeasure our net monetary assets in U.S. dollars under GAAP, was 31% higher than Argentina's official exchange rate at the transaction date. During the three months ended March 31, 2024, we entered into a Blue Chip Swap transaction, which resulted in a $4.1 million pre-tax loss on investment, reflected in other expense (income), net, within our condensed consolidated statements of income.

INVENTORIES

3 Months Ended

Mar. 31, 2024

Inventory, Net [Abstract]

INVENTORIES

Inventories consisted of the following:


(in thousands)	March 31, 2024		December 31, 2023
Raw materials	$	134,261	$	137,402
Work in progress	18,835		16,915
Finished goods	473,981		445,437
	627,077		599,754
Inventory reserve	(30,169)		(29,081)
LIFO adjustments (1)	(53,684)		(49,124)
Inventories, net	$	543,224	$	521,549

_______________________

(1) Represents the amount by which the current cost of LIFO inventories exceeded their carrying value.

Subsequent Events (Details) - Subsequent Event - Merger Agreement - USD ($) $ / shares in Units, $ in Millions	Apr. 02, 2024	Apr. 03, 2024
Subsequent Event [Line Items]
Conversion ratio	$ 0.735
Period for termination fees payable	12 months
Possible termination fee	$ 265.4
Schlumberger Limited
Subsequent Event [Line Items]
Possible termination fee		$ 326.6

DEBT

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

DEBT

Long-term debt consisted of the following:


(in thousands)	March 31, 2024		December 31, 2023
2022 Revolving Credit Facility	$	—	$	—
2022 Term Loan Facility	617,211		618,762
Total	617,211		618,762
Net unamortized discounts and issuance costs	(17,433)		(18,276)
Total long-term debt	599,778		600,486
Current portion of long-term debt (1)	(6,203)		(6,203)
Long-term debt, less current portion	$	593,575	$	594,283

_______________________

(1) Includes the mandatory amortization payments due within twelve months related to the 2022 Term Loan Facility as of March 31, 2024.

On June 7, 2022, we entered into a restated credit agreement (the “Restated Credit Agreement”), which amends and restates the prior credit agreement. The Restated Credit Agreement provides for (i) a $625.0 million seven-year senior secured term loan B facility (the “2022 Term Loan Facility”) and (ii) a five-year senior secured revolving credit facility in an aggregate principal amount of $700.0 million, of which $100.0 million is available for the issuance of letters of credit (the “2022 Revolving Credit Facility,” and, together with the 2022 Term Loan Facility, the “Senior Secured Credit Facility”). Proceeds from future borrowings under the 2022 Revolving Credit Facility are expected to be used for working capital and general corporate purposes. The initial amount drawn under the 2022 Revolving Credit Facility has been repaid. As of March 31, 2024, we had no amounts outstanding under the 2022 Revolving Credit Facility.

The 2022 Term Loan Facility matures June 7, 2029 and the 2022 Revolving Credit Facility matures June 7, 2027. The 2022 Term Loan Facility is subject to mandatory amortization payments of 1% per annum of the initial commitment paid quarterly, which began on December 30, 2022. The Senior Secured Credit Facility contains customary representations and warranties, covenants, and events of default for loan facilities of this type. We were in compliance with all covenants as of March 31, 2024.

On September 29, 2023, we amended the Restated Credit Agreement to, among other things, reprice the Company’s $620.3 million of existing term loans under the 2022 Term Loan Facility, in connection with which new term loans in the same amount were issued. The new term loans bear interest at a per annum rate of (i) an adjusted SOFR Rate plus 2.75% per annum or (ii) a base rate plus 1.75%. The new term loans may be prepaid at any time without penalty, subject to the payment of customary breakage costs in the case of the SOFR rate loans.

On June 29, 2022, the Company executed a five-year amortizing floating-to-fixed interest rate swap to hedge our exposure to increases in variable interest rates on the 2022 Term Loan Facility. This interest rate swap agreement is based on a $300.0 million notional amount for the first three years, reducing to $150.0 million for years four and five. See Note 11—Fair Value Measurements and Note 12—Derivatives and Hedging Transactions for additional information on interest rate swaps.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

INTANGIBLE ASSETS AND GOODWILL - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 830,718	$ 822,386
Accumulated Amortization	595,059	583,633
Net Carrying Amount	235,659	238,753
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4,800	4,800
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross Carrying Amount	835,518	827,186
Accumulated Amortization	595,059	583,633
Net Carrying Amount	240,459	243,553
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	3,600	3,600
In-process research and development
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	1,200	1,200
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	585,014	583,326
Accumulated Amortization	444,704	438,181
Net Carrying Amount	140,310	145,145
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	444,704	438,181
Unpatented technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	149,960	142,760
Accumulated Amortization	79,943	75,224
Net Carrying Amount	70,017	67,536
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	79,943	75,224
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	60,156	59,862
Accumulated Amortization	40,367	39,564
Net Carrying Amount	19,789	20,298
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	40,367	39,564
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	35,588	36,438
Accumulated Amortization	30,045	30,664
Net Carrying Amount	5,543	5,774
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ 30,045	$ 30,664

RESTRUCTURING EXPENSE (Tables)

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Other Related Charges

The following table presents the restructuring expense by segment as classified in our condensed consolidated statements of income.


	Three Months Ended March 31,
(in thousands)	2024		2023
Segment restructuring expense (income):
Production Chemical Technologies	$	(355)	$	1,144
Production & Automation Technologies	—		785
Drilling Technologies	—		—
Reservoir Chemical Technologies	—		396
Corporate and other	—		(95)
Total	$	(355)	$	2,230

Statements of Income classification:
Cost of goods and services	$	—	$	1,531
Selling, general and administrative expense	(355)		699
Total	$	(355)	$	2,230

The following table details our restructuring accrual activities during the three months ended March 31, 2024:


(in thousands)	Restructuring Accrual Balance
December 31, 2023	$	13,974
Restructuring charges	(355)

Payments	(386)

March 31, 2024	$	13,233

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 113,160	$ 63,144
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	59,580	56,710
Loss (gain) on disposal group and sale-leaseback transaction	(29,883)	12,965
Loss on Argentina Blue Chip Swap transaction	4,092	0
Stock-based compensation	6,173	5,234
Provision for inventory obsolescence and write-downs	2,621	9,966
Deferred income taxes	(12,903)	(8,441)
Loss (gain) on disposal of fixed assets	1,107	(534)
Amortization of deferred loan costs and accretion of discount	1,059	1,014
Other	1,863	1,512
Changes in operating assets and liabilities (net of effects of foreign exchange):
Receivables	62,915	62,673
Inventories	(39,873)	(63,139)
Leased assets	(4,254)	(9,830)
Other assets	(602)	1,472
Accounts payable	68,248	40,708
Other liabilities	(59,795)	(81,076)
Net cash flows provided by operating activities	173,508	92,378
Cash flows from investing activities:
Capital expenditures	(31,912)	(26,530)
Proceeds from sale of fixed assets	2,390	3,505
Proceeds from sale-leaseback transaction	44,292	0
Purchase of investments	(17,162)	0
Sale of investments	13,070	0
Acquisitions, net of cash acquired	(21,472)	0
Net cash used for investing activities	(10,794)	(23,025)
Cash flows from financing activities:
Repayment of long-term debt	(1,551)	(26,563)
Repurchases of common stock	(49,399)	(40,428)
Dividends paid	(16,247)	(15,011)
Payments related to taxes withheld on stock-based compensation	(11,821)	(5,100)
Proceeds expected to be remitted under the Accounts Receivable Facility	17,083	15,774
Other	(2,158)	221
Net cash used for financing activities	(64,093)	(71,107)
Effect of exchange rate changes on cash and cash equivalents	(1,161)	(437)
Net increase (decrease) in cash and cash equivalents	97,460	(2,191)
Cash and cash equivalents at beginning of period	288,557	250,187
Cash and cash equivalents at end of period	$ 386,017	$ 247,996

REVENUE

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

Our revenue is generated primarily from product sales. Service revenue is generated from providing services to our customers. These services include installation, repair and maintenance, laboratory and logistics services, chemical management services, troubleshooting, reporting, water treatment services, technical advisory assistance, emissions detection and monitoring, and other field services. Lease revenue is derived from rental income of leased production equipment. As our costs are shared across the various revenue categories, cost of goods sold is not tracked separately and is not discretely identifiable.

In certain geographical areas, the Company utilizes joint ventures and independent third-party distributors and sales agents to sell and market products and services. Amounts payable to independent third-party distributors and sales agents may fluctuate based on sales and timing of distributor fee payments. For services rendered by such independent third-party distributors and sales agents, the Company records the consideration received on a net basis within product revenue in our condensed consolidated statements of income. Additionally, amounts owed to distributors and sales agents are reported within accrued distributor fees within our condensed consolidated balance sheets.

Revenue disaggregated by geography was as follows:


	Three Months Ended March 31, 2024
(in thousands)	Production Chemical Technologies		Production & Automation Technologies		Drilling Technologies		Reservoir Chemical Technologies		Corporate and other (1)		Total
United States	$	242,484	$	195,667	$	43,620	$	13,845	$	—	$	495,616
Latin America	122,313		4,325		97		3,284		—		130,019
Middle East & Africa	79,367		14,662		2,248		5,563		(492)		101,348
Canada	77,880		18,315		4,323		514		—		101,032
Europe	47,653		4,939		4,387		1,137		—		58,116
Asia-Pacific	15,325		2,339		531		362		—		18,557
Australia	5,086		12,367		—		—		—		17,453
Other	—		—		—		—		—		—
Total revenue	$	590,108	$	252,614	$	55,206	$	24,705	$	(492)	$	922,141

	Three Months Ended March 31, 2023
(in thousands)	Production Chemical Technologies		Production & Automation Technologies		Drilling Technologies		Reservoir Chemical Technologies		Corporate and other (1)		Total
United States	$	241,761	$	192,541	$	42,960	$	12,573	$	13,590	$	503,425
Latin America	124,471		4,688		—		3,968		967		134,094
Middle East & Africa	76,987		15,421		2,481		6,737		(385)		101,241
Canada	74,164		20,537		3,767		418		11		98,897
Europe	49,803		4,959		6,160		368		2,631		63,921
Asia-Pacific	9,219		2,078		1,337		1,179		5,788		19,601
Australia	5,949		11,324		—		—		—		17,273
Other	9,330		—		2		563		—		9,895
Total revenue	$	591,684	$	251,548	$	56,707	$	25,806	$	22,602	$	948,347

______________________

Revenue is attributed to regions based on the location of our direct customer, which in some instances is an intermediary and not necessarily the end user.

Contract Balances

The beginning and ending contract asset and contract liability balances from contracts with customers were as follows:


(in thousands)	March 31, 2024		December 31, 2023
Contract assets	$	—	$	—
Contract liabilities - current	$	24,360	$	27,406

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Accum. Deficit	Accum. Other Comp. Loss	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2022		198,466,000
Beginning balance at Dec. 31, 2022	$ 1,677,215	$ 1,985	$ 2,249,698	$ (527,603)	$ (29,530)	$ (17,335)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	63,144			63,532		(388)
Other comprehensive loss	(15,312)				(15,312)
Stock-based compensation (in shares)		327,000
Stock-based compensation	5,234	$ 3	5,231
Stock options exercised (in shares)		481,000
Stock options exercised	3,014	$ 5	3,009
Taxes withheld on issuance of stock-based awards	(5,100)		(5,100)
Dividends declared to common stockholders	$ (16,784)			(16,784)
Repurchase and cancellation of common stock (in shares)	(1,302,499)	(1,302,000)
Repurchase and cancellation of common stock	$ (40,427)	$ (13)	(14,811)	(25,603)
Distributions to noncontrolling interest	(823)					(823)
Cumulative translation adjustments	8					8
Ending balance (in shares) at Mar. 31, 2023		197,972,000
Ending balance at Mar. 31, 2023	$ 1,670,169	$ 1,980	2,238,027	(506,458)	(44,842)	(18,538)
Beginning balance (in shares) at Dec. 31, 2023	191,300,000	191,135,000
Beginning balance at Dec. 31, 2023	$ 1,661,031	$ 1,913	2,166,911	(455,676)	(36,526)	(15,591)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	113,160			112,923		237
Other comprehensive loss	(6,985)				(6,985)
Stock-based compensation (in shares)		677,000
Stock-based compensation	6,173	$ 7	6,166
Stock options exercised (in shares)		168,000
Stock options exercised	917	$ 2	915
Taxes withheld on issuance of stock-based awards	(11,821)		(11,821)
Dividends declared to common stockholders	$ (17,967)			(17,967)
Repurchase and cancellation of common stock (in shares)	(1,611,055)	(1,611,000)
Repurchase and cancellation of common stock	$ (49,399)	$ (18)	(18,288)	(31,093)
Distributions to noncontrolling interest	0					0
Cumulative translation adjustments	$ 65					65
Ending balance (in shares) at Mar. 31, 2024	190,400,000	190,369,000
Ending balance at Mar. 31, 2024	$ 1,695,174	$ 1,904	$ 2,143,883	$ (391,813)	$ (43,511)	$ (15,289)

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income attributable to ChampionX	$ 112,923	$ 63,532

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Insider Trading Arrangements
shares in Thousands

3 Months Ended

Mar. 31, 2024

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

During the three months ended March 31, 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) informed us of the adoption or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, except as described in the table below:

Name & Title

Date Adopted

Character of Trading Arrangement

(1)

Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement

Duration

(2)

Other Material Terms

Date Terminated

Antoine Marcos, Vice President, Corporate Controller and Chief Accounting Officer

March 6, 2024

Rule 10b5-1 Trading Arrangement

Up to 7,580 shares to be sold

December 4, 2024

N/A

_______________________

(1)Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act, (the “Rule”).

(2)Each trading arrangement permits transactions through and including the earlier to occur of (i) the completion of all sales of shares subject to the arrangement, (ii) the date listed in the “Duration” column, or (iii) the occurrence of such other termination event as specified in the arrangement. Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Antoine Marcos [Member]

Trading Arrangements, by Individual

Name

Antoine Marcos

Title

Vice President, Corporate Controller and Chief Accounting Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

March 6, 2024

Arrangement Duration

273 days

Aggregate Available

7,580

DERIVATIVES AND HEDGING TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Values of Outstanding Derivatives


	Derivative Assets				Derivative Liabilities
(in thousands)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Prepaid expenses and other current assets	$	7,848	$	11,004	$	—	$	—
Other non-current assets	2,566		826		—		—
Accrued expenses and other current liabilities	—		—		1,639		5,354

	$	10,414	$	11,830	$	1,639	$	5,354

The following table summarizes the notional values of the Company’s outstanding derivatives:


(in thousands)	March 31, 2024		December 31, 2023
Notional value of foreign currency forward contracts and interest rate swaps	$	907,471	$	892,711

Schedule of Loss on Derivative Instruments

The loss of all derivative instruments recognized is summarized below:


	Three Months Ended March 31,
(in thousands)	2024		2023
Loss (gain) reclassified from AOCI to income on cash flow hedges:
Cost of goods and services	$	(438)	$	(957)
Interest expense	(1,714)		(937)
Loss on derivatives not designated as hedging instruments:
Other (income) expense, net	953		1,441
Total loss (gain) of derivative instruments	$	(1,199)	$	(453)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Total revenue	$ 922,141	$ 948,347
Income before income taxes	139,756	91,813
Interest expense, net	13,935	12,466
Operating Segments
Segment Reporting Information [Line Items]
Income before income taxes	164,450	114,980
Operating Segments \| Production Chemical Technologies
Segment Reporting Information [Line Items]
Total revenue	590,108	591,684
Income before income taxes	87,832	66,314
Operating Segments \| Production & Automation Technologies
Segment Reporting Information [Line Items]
Total revenue	252,614	251,548
Income before income taxes	28,470	34,792
Operating Segments \| Drilling Technologies
Segment Reporting Information [Line Items]
Total revenue	55,206	56,707
Income before income taxes	44,402	11,887
Operating Segments \| Reservoir Chemical Technologies
Segment Reporting Information [Line Items]
Total revenue	24,705	25,806
Income before income taxes	3,746	1,987
Corporate and other
Segment Reporting Information [Line Items]
Total revenue	(492)	22,602
Income before income taxes	$ 10,759	$ 10,701

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands, shares in Millions	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Receivables, allowances	$ 6,257	$ 5,734
Accumulated depreciation on property, plant and equipment	$ 784,428	$ 781,367
Common stock, shares authorized (in shares)	2,500.0	2,500.0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	190.4	191.3
Common stock, shares outstanding (in shares)	190.4	191.3

INTANGIBLE ASSETS AND GOODWILL (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The components of our definite- and indefinite-lived intangible assets were as follows:


	March 31, 2024						December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Customer relationships	$	585,014	$	444,704	$	140,310	$	583,326	$	438,181	$	145,145
Unpatented technologies	149,960		79,943		70,017		142,760		75,224		67,536

Trademarks	60,156		40,367		19,789		59,862		39,564		20,298
Patents	35,588		30,045		5,543		36,438		30,664		5,774

	830,718		595,059		235,659		822,386		583,633		238,753
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
In-process research and development	1,200		—		1,200		1,200		—		1,200
	4,800		—		4,800		4,800		—		4,800
Total	$	835,518	$	595,059	$	240,459	$	827,186	$	583,633	$	243,553

Schedule of Indefinite-Lived Intangible Assets

The components of our definite- and indefinite-lived intangible assets were as follows:


	March 31, 2024						December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Customer relationships	$	585,014	$	444,704	$	140,310	$	583,326	$	438,181	$	145,145
Unpatented technologies	149,960		79,943		70,017		142,760		75,224		67,536

Trademarks	60,156		40,367		19,789		59,862		39,564		20,298
Patents	35,588		30,045		5,543		36,438		30,664		5,774

	830,718		595,059		235,659		822,386		583,633		238,753
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
In-process research and development	1,200		—		1,200		1,200		—		1,200
	4,800		—		4,800		4,800		—		4,800
Total	$	835,518	$	595,059	$	240,459	$	827,186	$	583,633	$	243,553

Schedule of Goodwill

The carrying amount of goodwill, including changes therein, by reportable segment is below:


(in thousands)	Production Chemical Technologies		Production & Automation Technologies		Drilling Technologies		Reservoir Chemical Technologies		Total
December 31, 2023	$	356,558	$	211,370	$	101,136	$	—	$	669,064
Acquisitions (1)	—		13,285		—		—		13,285


Foreign currency translation	(2,478)		(167)		—		—		(2,645)
March 31, 2024	$	354,080	$	224,488	$	101,136	$	—	$	679,704

______________________

(1) See Note 10—Acquisitions and Divestitures for additional information related to the acquisitions completed during the first quarter of 2024.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows:


	Three Months Ended March 31,
(in thousands, except per share data)	2024		2023
Net income attributable to ChampionX	$	112,923	$	63,532

Weighted-average number of shares outstanding	190,803		198,286
Dilutive effect of stock-based compensation	3,161		4,154
Total shares and dilutive securities	193,964		202,440

Earnings per share attributable to ChampionX:
Basic	$	0.59	$	0.32
Diluted	$	0.58	$	0.31

For all periods presented, the computation of diluted earnings per share excludes awards with an anti-dilutive impact. For the three months ended March 31, 2024 and March 31, 2023, the diluted shares include the dilutive impact of equity awards except for approximately 0.5 million and 0.6 million shares, respectively, that were excluded because their inclusion would be anti-dilutive.

SUPPLY CHAIN FINANCE (Details) $ in Millions	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Supply chain finance outstanding	$ 37.9
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]	Accounts Payable, Current

ACCOUNTS RECEIVABLE FACILITIES (Details) - Accounts receivable held for sale under Accounts Receivable Facility $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 28, 2024 USD ($)	Mar. 28, 2024 CAD ($)	Jun. 28, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum accounts receivable that can be sold			$ 30.0	$ 40,000,000	$ 160.0
Accounts receivable sold	$ 174.2
Accounts receivable outstanding	112.9
Loss on sale of trade receivable	$ 1.9	$ 1.5

INTANGIBLE ASSETS AND GOODWILL - Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 669,064
Acquisitions	13,285
Foreign currency translation	(2,645)
Goodwill, end of period	679,704
Production Chemical Technologies
Goodwill [Roll Forward]
Goodwill, beginning of period	356,558
Acquisitions	0
Foreign currency translation	(2,478)
Goodwill, end of period	354,080
Production & Automation Technologies
Goodwill [Roll Forward]
Goodwill, beginning of period	211,370
Acquisitions	13,285
Foreign currency translation	(167)
Goodwill, end of period	224,488
Drilling Technologies
Goodwill [Roll Forward]
Goodwill, beginning of period	101,136
Acquisitions	0
Foreign currency translation	0
Goodwill, end of period	101,136
Reservoir Chemical Technologies
Goodwill [Roll Forward]
Goodwill, beginning of period	0
Acquisitions	0
Foreign currency translation	0
Goodwill, end of period	$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

Our reporting segments are:

•Production Chemical Technologies—provides oil and natural gas production and midstream markets with solutions to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment and a host of water-related issues.

•Production & Automation Technologies—designs, manufactures, markets and services a full range of artificial lift equipment, end-to-end digital automation solutions, as well as other production equipment and asset monitoring technologies. Production & Automation Technologies’ products are sold under a collection of brands including Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, Windrock and AL Perform.

•Drilling Technologies—designs, manufactures and markets polycrystalline diamond cutters and bearings for use in oil and gas drill bits under the US Synthetic brand.

•Reservoir Chemical Technologies—manufactures specialty products that support well stimulation, construction (including drilling and cementing) and remediation needs in the oil and natural gas industry.

We refer to our Production Chemical Technologies segment and our Reservoir Chemical Technologies segment collectively as our Chemical Technologies business. Although Reservoir Chemical Technologies is not required to be disclosed separately as a reportable segment, based on materiality, management believes the additional information may contribute to a better understanding of the business. Other business activities that do not meet the criteria of an operating segment have been combined into Corporate and other. Corporate and other includes (i) corporate and overhead expenses, and (ii) revenue and costs for activities that are not operating segments.

Segment revenue and segment operating profit


	Three Months Ended March 31,
(in thousands)	2024		2023
Segment revenue:
Production Chemical Technologies	$	590,108	$	591,684
Production & Automation Technologies	252,614		251,548
Drilling Technologies	55,206		56,707
Reservoir Chemical Technologies	24,705		25,806
Corporate and other (1)	(492)		22,602
Total revenue	$	922,141	$	948,347

Segment operating profit (loss):
Production Chemical Technologies	$	87,832	$	66,314
Production & Automation Technologies	28,470		34,792
Drilling Technologies	44,402		11,887
Reservoir Chemical Technologies	3,746		1,987
Total segment operating profit	164,450		114,980
Corporate and other (1)	10,759		10,701
Interest expense, net	13,935		12,466
Income before income taxes	$	139,756	$	91,813

_______________________

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On April 2, 2024, ChampionX entered into the Merger Agreement with SLB, Holdco, and Merger Sub, pursuant to which, and subject to the terms and conditions therein, Merger Sub will be merged with and into ChampionX, with ChampionX surviving the Merger as an indirect wholly owned subsidiary of SLB. Pursuant to the Merger Agreement, at the effective time of the Merger and by virtue of the Merger, each share of ChampionX common stock issued and outstanding immediately prior to the Effective Time (other than any shares of ChampionX common stock held in the treasury of ChampionX or held by SLB, Holdco or any direct or indirect wholly owned subsidiary of SLB, in each case except for any such shares held on behalf of third parties) will be converted, without any action on the part of the holder thereof, into the right to receive 0.735 shares of common stock of SLB, which shares will be duly authorized and validly issued in accordance with applicable laws and, if applicable, cash in lieu of fractional shares. The Merger Agreement contains certain termination rights for each of ChampionX and SLB. Upon termination of the Merger Agreement under specified circumstances, including the termination by SLB prior to receipt of approval by ChampionX stockholders if the Board fails to recommend the adoption of the Merger Agreement, changes its recommendation, approves an alternative proposal, fails to include its recommendation in the Form S-4 or takes certain other actions as set forth in the Merger Agreement, subject in each case to certain exceptions, or the consummation of a competing acquisition proposal within 12 months of the termination of the Merger Agreement for certain specified reasons, ChampionX would be required to pay SLB a termination fee of $265.4 million. Upon termination of the Merger Agreement under specified circumstances, including the termination by either party if certain Mutual Legal Restraints exist, specified regulatory approvals have not been obtained or if the consummation of the Merger does not occur on or prior to April 2, 2025 (subject to an automatic extension to October 2, 2025 under specified circumstances) and, subject to certain exceptions, parties will have satisfied conditions to the Merger or by SLB under specified circumstances, SLB would be required to pay ChampionX a termination fee of $326.6 million.

Cover Page - shares shares in Millions	3 Months Ended
Cover Page - shares shares in Millions	Mar. 31, 2024	Apr. 18, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38441
Entity Registrant Name	ChampionX Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3066826
Entity Address, Address Line One	2445 Technology Forest Blvd,
Entity Address, Address Line Two	Building 4, 12th Floor
Entity Address, City or Town	The Woodlands,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77381
City Area Code	(281)
Local Phone Number	403-5772
Security 12b Title	Common stock, $0.01 par value
Trading Symbol	CHX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		190.4
Entity Central Index Key	0001723089
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

RESTRUCTURING EXPENSE - Restructuring Reserve Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Restructuring Accrual Balance
Beginning balance	$ 13,974
Restructuring charges	(355)
Payments	(386)
Ending balance	$ 13,233

STOCKHOLDERS' EQUITY (Details) - USD ($)		3 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($)	Jan. 31, 2024	Mar. 31, 2024	Mar. 31, 2023	Oct. 24, 2022	Mar. 07, 2022
Stockholders' Equity Note [Abstract]
Approved quarterly cash dividend (in dollars per share)	$ 0.095
Dividends payable		$ 18,800,000
Authorized amount of stock repurchase	$ 1,500,000,000			$ 750,000,000	$ 250,000,000
Repurchase and cancellation of common stock (in shares)		1,611,055	1,302,499
Repurchase and cancellation of common stock		$ (49,399,000)	$ (40,427,000)

ACQUISITIONS, DIVESTITURES AND SALE LEASEBACK (Details)					3 Months Ended
ACQUISITIONS, DIVESTITURES AND SALE LEASEBACK (Details)	Mar. 29, 2024 USD ($) property	Mar. 21, 2024 USD ($)	Feb. 26, 2024 USD ($)	Jan. 05, 2024 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill					$ 679,704,000		$ 669,064,000
Number of buildings in sale-leaseback agreement \| property	3
Sale leaseback transaction, net book value	$ 14,100,000
Sale leaseback transaction, gross proceeds	$ 45,500,000
Sale leaseback transaction, lease term	20 years
Proceeds from sale-leaseback transaction	$ 44,300,000				44,292,000	$ 0
Sale leaseback, annual base payments	$ 3,300,000
Sale leaseback, term extended	7 years
Sale leaseback transaction, gain on sale	$ 29,900,000
Operating lease right-of-use assets	37,700,000				$ 103,957,000		$ 69,561,000
Operating lease liabilities	$ 37,700,000
Disposal Group, Not Discontinued Operations \| CT Russia Business
Business Acquisition [Line Items]
Recoverable value on divestiture						0
Gain (charge) on divestiture						$ 13,000,000
OTS Consulting Services LLP
Business Acquisition [Line Items]
Consideration transferred				$ 8,400,000
Goodwill				$ 6,400,000
Artificial Lift Performance Limited
Business Acquisition [Line Items]
Consideration transferred			$ 13,100,000
Goodwill			6,900,000
Future payments contingent upon performance			1,700,000
Earn out			$ 3,000,000
Earn out term			2 years
Identifiable intangible assets			$ 10,400,000
RMSpumptools Limited
Business Acquisition [Line Items]
Consideration transferred		$ 110,000,000

RESTRUCTURING EXPENSE - Restructuring and Other Related Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (355)	$ 2,230
Cost of goods and services
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	1,531
Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(355)	699
Operating Segments \| Production Chemical Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(355)	1,144
Operating Segments \| Production & Automation Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	785
Operating Segments \| Drilling Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0
Operating Segments \| Reservoir Chemical Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	396
Corporate and other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ (95)

DEBT - Narrative (Details) - USD ($)	Sep. 29, 2023	Jun. 29, 2022	Jun. 07, 2022	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Carrying amount				$ 617,211,000	$ 618,762,000
Interest rate swaps \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Derivative, term of contract (in years)		5 years
Interest Rate Swap, First Three Years \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Notional value of foreign currency forward contracts and interest rate swaps		$ 300,000,000
Interest Rate Swap, Years Four And Five \| Designated as Hedging Instrument
Debt Instrument [Line Items]
Notional value of foreign currency forward contracts and interest rate swaps		$ 150,000,000
2022 Term Loan Facility \| 2022 Term Loan Facility
Debt Instrument [Line Items]
Principal amount of debt issued			$ 625,000,000
Debt instrument, term (in years)			7 years
Carrying amount	$ 620,300,000			617,211,000	$ 618,762,000
Mandatory amortization payment, percent per annum			1.00%
2022 Term Loan Facility \| 2022 Term Loan Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
2022 Term Loan Facility \| 2022 Term Loan Facility \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
2022 Revolving Credit Facility \| 2022 Revolving Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, term (in years)			5 years
Maximum borrowing capacity			$ 700,000,000
Carrying amount				$ 0
2022 Revolving Credit Facility \| 2022 Revolving Credit Facility \| Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 100,000,000

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured on Recurring Basis

The carrying amount and the estimated fair value for assets and liabilities measured on a recurring basis are as follows:


		Carrying Amount
(in thousands)	Measurement Level	March 31, 2024		December 31, 2023
Assets
Foreign currency forward contracts	Level 2	$	2,320	$	6,231
Interest rate swaps	Level 2	8,094		5,599
Total		$	10,414	$	11,830

Liabilities
Foreign currency forward contracts	Level 2	$	1,639	$	5,354
Interest rate swaps	Level 2	—		—
Total		$	1,639	$	5,354

Schedule of Fair Value of Long-Term Debt

The carrying amount and the estimated fair value of long-term debt, including current maturities, held by the Company were:


	March 31, 2024				December 31, 2023
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
2022 Revolving Credit Facility	$	—	$	—	$	—	$	—
2022 Term Loan Facility	$	617,211	$	621,069	$	618,762	$	623,402

EARNINGS PER SHARE - Reconciliation of the Shares Used in EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income attributable to ChampionX	$ 112,923	$ 63,532
Weighted-average number of shares outstanding (in shares)	190,803	198,286
Dilutive effect of stock-based compensation (in shares)	3,161	4,154
Total shares and dilutive securities (in shares)	193,964	202,440
Earnings per share attributable to ChampionX:
Basic (in dollars per share)	$ 0.59	$ 0.32
Diluted (in dollars per share)	$ 0.58	$ 0.31

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Lease and other revenue	$ 27,135	$ 22,079
Total revenue	922,141	948,347
Cost of goods and services	622,937	664,992
Gross profit	299,204	283,355
Costs and expenses:
Selling, general and administrative expense	172,414	160,816
Loss (gain) on disposal group and sale-leaseback transaction	(29,883)	12,965
Interest expense, net	13,935	12,466
Foreign currency transaction losses, net	55	9,252
Other expense (income), net	2,927	(3,957)
Income before income taxes	139,756	91,813
Provision for income taxes	26,596	28,669
Net income	113,160	63,144
Net income (loss) attributable to noncontrolling interest	237	(388)
Net income attributable to ChampionX	$ 112,923	$ 63,532
Earnings per share attributable to ChampionX:
Basic (in dollars per share)	$ 0.59	$ 0.32
Diluted (in dollars per share)	$ 0.58	$ 0.31
Weighted-average shares outstanding:
Basic (in shares)	190,803	198,286
Diluted (in shares)	193,964	202,440
Product revenue
Revenue:
Revenue	$ 807,827	$ 833,023
Service revenue
Revenue:
Revenue	$ 87,179	$ 93,245