Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.21.2
Reportable Segment Information
9 Months Ended
Sep. 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 nine months ended September 30, 2021, was $13.5 million and $25.1 million, respectively. The corporate administrative expense for the three and nine months ended September 30, 2020, was $7.0 million and $27.9 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 93.4% and 93.5% of our pressure pumping revenue during the three and nine months ended September 30, 2021, respectively. During the three and nine months ended September 30, 2020, our hydraulic fracturing operating segment revenue approximated 95.2% and 94.0% 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 September 30, 2021
Pressure Pumping All Other Total
Service revenue $ 245,641  $ 4,458  $ 250,099 
Adjusted EBITDA $ 53,975  $ (11,877) $ 42,098 
Depreciation and amortization $ 32,536  $ 995  $ 33,531 
Capital expenditures $ 52,904  $ 300  $ 53,204 
Total assets at September 30, 2021 $ 1,060,206  $ 38,544  $ 1,098,750 
Three Months Ended September 30, 2020
Pressure Pumping All Other Total
Service revenue $ 131,321  $ 2,389  $ 133,710 
Adjusted EBITDA $ 26,662  $ (9,308) $ 17,354 
Depreciation and amortization $ 36,326  $ 1,141  $ 37,467 
Capital expenditures $ 7,571  $ 370  $ 7,941 
Total assets at December 31, 2020 $ 1,009,631  $ 41,108  $ 1,050,739 
Nine Months Ended September 30, 2021
Pressure Pumping All Other Total
Service revenue $ 617,293  $ 11,151  $ 628,444 
Adjusted EBITDA $ 132,673  $ (34,866) $ 97,807 
Depreciation and amortization $ 97,307  $ 2,946  $ 100,253 
Capital expenditures $ 113,670  $ 2,634  $ 116,304 
Total assets at September 30, 2021 $ 1,060,206  $ 38,544  $ 1,098,750 
Nine Months Ended September 30, 2020
Pressure Pumping All Other Total
Service revenue $ 622,055  $ 12,833  $ 634,888 
Adjusted EBITDA $ 139,359  $ (21,671) $ 117,688 
Depreciation and amortization $ 114,205  $ 3,639  $ 117,844 
Capital expenditures $ 56,873  $ 3,042  $ 59,915 
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 September 30, 2021
Pressure Pumping All Other Total
Net income (loss) $ 9,058  $ (14,125) $ (5,067)
Depreciation and amortization 32,536  995  33,531 
Interest expense —  143  143 
Income tax benefit —  (1,279) (1,279)
Loss on disposal of assets 12,381  43  12,424 
Stock-based compensation —  3,009  3,009 
Other expense —  309  309 
Other general and administrative expense(1)
—  (972) (972)
Adjusted EBITDA $ 53,975  $ (11,877) $ 42,098 
Three Months Ended September 30, 2020
Pressure Pumping All Other Total
Net loss $ (20,920) $ (8,264) $ (29,184)
Depreciation and amortization 36,326  1,141  37,467 
Interest expense —  137  137 
Income tax benefit —  (7,717) (7,717)
Loss on disposal of assets 11,256  30  11,286 
Stock-based compensation —  2,535  2,535 
Other expense —  312  312 
Other general and administrative expense(1)
—  2,481  2,481 
Severance expense —  37  37 
Adjusted EBITDA $ 26,662  $ (9,308) $ 17,354 
Nine Months Ended September 30, 2021
Pressure Pumping All Other Total
Net loss $ (5,426) $ (28,527) $ (33,953)
Depreciation and amortization 97,307  2,946  100,253 
Interest expense —  477  477 
Income tax benefit —  (11,639) (11,639)
Loss (gain) on disposal of assets 40,792  (292) 40,500 
Stock-based compensation —  8,405  8,405 
Other income —  (1,178) (1,178)
Other general and administrative expense (1)
—  (5,670) (5,670)
Severance expense —  612  612 
Adjusted EBITDA $ 132,673  $ (34,866) $ 97,807 
Nine Months Ended September 30, 2020
Pressure Pumping All Other Total
Net loss $ (30,140) $ (32,768) $ (62,908)
Depreciation and amortization 114,205  3,639  117,844 
Impairment expense 15,559  1,095  16,654 
Interest expense 2,207  2,208 
Income tax benefit —  (15,087) (15,087)
Loss on disposal of assets 39,659  216  39,875 
Stock-based compensation —  5,968  5,968 
Other expense —  583  583 
Other general and administrative expense (1)
—  12,418  12,418 
Retention bonus and severance expense 75  58  133 
Adjusted EBITDA $ 139,359  $ (21,671) $ 117,688 
(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 nine months ended September 30, 2021, we received reimbursement of approximately $1.4 million and $8.1 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation.