Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.21.2
Reportable Segment Information
6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Reportable Segment Information Reportable Segment Information
          The Company has three operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), cementing and coiled tubing. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources.
          In accordance with the FASB Accounting Standards Codification ("ASC") 280—Segment Reporting, the Company has one reportable segment (pressure pumping) comprised of the hydraulic fracturing and cementing operating segments. The coiled tubing operating segment and corporate administrative expense (inclusive of our total income tax expense (benefit), other (income) and expense and interest expense) are included in the "all other" category in the table below. Total corporate administrative expense for the three and six months ended June 30, 2021, was $6.5 million and $11.6 million, respectively. The corporate administrative expense for the three and six months ended June 30, 2020, was $10.6 million and $20.9 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 93.7% and 93.5% of our pressure pumping revenue during the three and six months ended June 30, 2021, respectively. During the three and six months ended June 30, 2020, our hydraulic fracturing operating segment revenue approximated 89.7% and 93.7% of our pressure pumping revenue, respectively.
          Inter-segment revenues are not material and are not shown separately in the table below.
          The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before other income (expense), interest expense, income taxes, depreciation and amortization, stock-based compensation expense, severance and related expense, impairment expense, (gain)/loss on disposal of assets and other unusual or nonrecurring expenses or (income)). A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below (in thousands):
Three Months Ended June 30, 2021
Pressure Pumping All Other Total
Service revenue $ 213,461  $ 3,426  $ 216,887 
Adjusted EBITDA $ 46,826  $ (11,133) $ 35,693 
Depreciation and amortization $ 32,256  $ 987  $ 33,243 
Capital expenditures $ 30,744  $ 29  $ 30,773 
Total assets at June 30, 2021 $ 1,029,140  $ 37,646  $ 1,066,786 
Three Months Ended June 30, 2020
Pressure Pumping All Other Total
Service revenue $ 103,815  $ 2,294  $ 106,109 
Adjusted EBITDA $ 34,030  $ (8,620) $ 25,410 
Depreciation and amortization $ 38,910  $ 1,263  $ 40,173 
Capital expenditures $ 10,034  $ 1,846  $ 11,880 
Total assets at December 31, 2020 $ 1,009,631  $ 41,108  $ 1,050,739 
Six Months Ended June 30, 2021
Pressure Pumping All Other Total
Service revenue $ 371,652  $ 6,693  $ 378,345 
Adjusted EBITDA $ 78,697  $ (22,988) $ 55,709 
Depreciation and amortization $ 64,770  $ 1,951  $ 66,721 
Capital expenditures $ 60,766  $ 2,334  $ 63,100 
Total assets at June 30, 2021 $ 1,029,140  $ 37,646  $ 1,066,786 
Six Months Ended June 30, 2020
Pressure Pumping All Other Total
Service revenue $ 490,735  $ 10,443  $ 501,178 
Adjusted EBITDA $ 112,696  $ (12,362) $ 100,334 
Depreciation and amortization $ 77,879  $ 2,498  $ 80,377 
Capital expenditures $ 49,301  $ 2,674  $ 51,975 
Total assets at December 31, 2020 $ 1,009,631  $ 41,108  $ 1,050,739 
Reconciliation of net income (loss) to adjusted EBITDA (in thousands):
Three Months Ended June 30, 2021
Pressure Pumping All Other Total
Net loss $ (809) $ (7,702) $ (8,511)
Depreciation and amortization 32,256  987  33,243 
Interest expense —  159  159 
Income tax benefit —  (3,697) (3,697)
Loss (gain) on disposal of assets 15,379  (354) 15,025 
Stock-based compensation —  2,909  2,909 
Other expense —  302  302 
Other general and administrative expense(1)
—  (3,737) (3,737)
Adjusted EBITDA $ 46,826  $ (11,133) $ 35,693 
Three Months Ended June 30, 2020
Pressure Pumping All Other Total
Net loss $ (13,528) $ (12,392) $ (25,920)
Depreciation and amortization 38,910  1,263  40,173 
Interest expense —  791  791 
Income tax benefit —  (6,460) (6,460)
Loss on disposal of assets 8,587  147  8,734 
Stock-based compensation —  2,962  2,962 
Other expense —  267  267 
Other general and administrative expense(1)
—  4,802  4,802 
Retention bonus and severance expense 61  —  61 
Adjusted EBITDA $ 34,030  $ (8,620) $ 25,410 
Six Months Ended June 30, 2021
Pressure Pumping All Other Total
Net loss $ (14,484) $ (14,402) $ (28,886)
Depreciation and amortization 64,770  1,951  66,721 
Interest expense —  335  335 
Income tax benefit —  (10,360) (10,360)
Loss (gain) on disposal of assets 28,411  (335) 28,076 
Stock-based compensation —  5,396  5,396 
Other income —  (1,487) (1,487)
Other general and administrative expense (1)
—  (4,698) (4,698)
Retention bonus and severance expense —  612  612 
Adjusted EBITDA $ 78,697  $ (22,988) $ 55,709 
Six Months Ended June 30, 2020
Pressure Pumping All Other Total
Net loss $ (9,220) $ (24,504) $ (33,724)
Depreciation and amortization 77,879  2,498  80,377 
Impairment expense 15,559  1,095  16,654 
Interest expense 2,071  2,072 
Income tax benefit —  (7,370) (7,370)
Loss on disposal of assets 28,402  186  28,588 
Stock-based compensation —  3,433  3,433 
Other expense —  271  271 
Other general and administrative expense (1)
—  9,937  9,937 
Retention bonus and severance expense 75  21  96 
Adjusted EBITDA $ 112,696  $ (12,362) $ 100,334 
(1)Other general and administrative expense, (net of reimbursement from insurance carriers) relates to nonrecurring professional fees paid to external consultants in connection with the Company's pending SEC investigation and shareholder litigation, net of insurance recoveries. During the three and six months ended June 30, 2021, we received reimbursement of approximately $5.1 million and $6.7 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation.