Annual report pursuant to Section 13 and 15(d)

REPORTABLE SEGMENT INFORMATION

v3.22.0.1
REPORTABLE SEGMENT INFORMATION
12 Months Ended
Dec. 31, 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 December 2021, the Company disposed of two turbine generators included in our pressure pumping reportable segment for total cash proceeds of approximately $36.0 million. The net book value of the two turbines prior to the disposal was approximately $39.5 million, resulting in loss on disposal of approximately $3.5 million. In September 2020, the Company shut down its drilling operations and disposed of all of its drilling rigs and ancillary assets for approximately $0.5 million. In March 2020, the Company shut down its flowback operating segment and subsequently disposed of the assets for approximately $1.6 million. Our drilling and flowback operations were included in our “all other” category. The shutdown of the drilling and flowback operations resulted in a reduction in the number of our current operating segments to three. The change in the number of our operating segments did not impact our reportable segment information reported for the years presented.
          In accordance with FASB 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 tables below. Total corporate administrative expense for the years ended December 31, 2021, 2020 and 2019 was $38.5 million, $31.6 million and $113.0 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 93.3%, 94.2% and 95.6% of our pressure pumping revenue for the years ended December 31, 2021, 2020 and 2019, 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):
Pressure
Pumping
All Other
Total
Year ended and as of December 31, 2021
Service revenue
$ 857,642  $ 16,872  $ 874,514 
Adjusted EBITDA
$ 181,688  $ (46,681) $ 135,007 
Depreciation and amortization
$ 129,478  $ 3,899  $ 133,377 
Capital expenditures
$ 162,044  $ 3,114  $ 165,158 
Total assets
$ 1,023,037  $ 38,199  $ 1,061,236 
Pressure
Pumping
All Other
Total
Year ended and as of December 31, 2020
Service revenue
$ 773,474  $ 15,758  $ 789,232 
Adjusted EBITDA
$ 174,030  $ (32,567) $ 141,463 
Depreciation and amortization
$ 148,659  $ 4,631  $ 153,290 
Impairment expense
$ 36,907  $ 1,095  $ 38,002 
Capital expenditures
$ 78,154  $ 3,091  $ 81,245 
Total assets $ 1,009,631  $ 41,108  $ 1,050,739 
Pressure
Pumping
All Other
Total
Year ended and as of December 31, 2019
Service revenue
$ 2,001,627  $ 50,687  $ 2,052,314 
Adjusted EBITDA
$ 533,760  $ (14,691) $ 519,069 
Depreciation and amortization
$ 139,348  $ 5,956  $ 145,304 
Impairment expense $ —  $ 3,405  $ 3,405 
Capital expenditures
$ 387,119  $ 13,552  $ 400,671 
Goodwill
$ 9,425  $ —  $ 9,425 
Total assets
$ 1,381,811  $ 54,300  $ 1,436,111 
Reconciliation of net income (loss) to adjusted EBITDA (in thousands):
Pressure
Pumping
All Other
Total
Year ended December 31, 2021
Net loss $ (12,723) $ (41,462) $ (54,185)
Depreciation and amortization
129,478  3,899  133,377 
Interest expense
—  614  614 
Income tax benefit —  (14,252) (14,252)
Loss (gain) on disposal of assets 64,903  (257) 64,646 
Stock‑based compensation
—  11,519  11,519 
Other income —  (873) (873)
Other general and administrative expense (1)
—  (6,471) (6,471)
Severance expense 30  602  632 
Adjusted EBITDA
$ 181,688  $ (46,681) $ 135,007 
Pressure
Pumping
All Other Total
Year ended December 31, 2020
Net loss $ (68,271) $ (38,749) $ (107,020)
Depreciation and amortization
148,659  4,631  153,290 
Interest expense
2,382  2,383 
Income tax benefit —  (27,480) (27,480)
Loss on disposal of assets
56,659  1,477  58,136 
Impairment expense 36,907  1,095  38,002 
Stock‑based compensation
—  9,100  9,100 
Other expense
—  874  874 
Other general and administrative expense (1)
—  13,038  13,038 
Retention bonus and severance expense 75  1,065  1,140 
Adjusted EBITDA
$ 174,030  $ (32,567) $ 141,463 
Pressure
Pumping
All Other Total
Year ended December 31, 2019
Net income (loss)
$ 281,090  $ (118,080) $ 163,010 
Depreciation and amortization
139,348  5,956  145,304 
Interest expense
51  7,090  7,141 
Income tax expense —  50,494  50,494 
Loss on disposal of assets
106,178  633  106,811 
Impairment expense —  3,405  3,405 
Stock‑based compensation
—  7,776  7,776 
Other expense
—  717  717 
Other general and administrative expense (1)
—  25,208  25,208 
Deferred IPO bonus, retention bonus and severance expense 7,093  2,110  9,203 
Adjusted EBITDA
$ 533,760  $ (14,691) $ 519,069 
(1)During the years ended December 31, 2021, 2020 and 2019, other general and administrative expense (net of reimbursement from insurance carriers) primarily relates to nonrecurring professional fees paid to external consultants in connection with our audit committee review, SEC investigation and shareholder litigation, net of insurance recoveries. During the years ended December 31, 2021, 2020 and 2019, we received reimbursement of approximately $9.8 million, $0.6 million and $0, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation.
Major Customers
          The Company had revenue from the following significant customers that accounted for the following percentages of the Company’s total revenue:
Year Ended December 31,
2021 2020 2019
Customer A
54.2  % 42.5  % 25.5  %
Customer B
14.6  % 20.3  % 20.9  %
Customer C
8.8  % 9.3  % 13.2  %
Customer D
4.4  % 8.6  % 9.2  %
Customer E
3.8  % 5.8  % 8.2  %
           The above significant customers’ revenue that relates to pressure pumping is below:
Year Ended December 31,
2021 2020 2019
Customer A 99.6  % 99.8  % 99.7  %
Customer B 100.0  % 97.6  % 95.4  %
Customer C 99.7  % 99.9  % 99.9  %
Customer D 87.6  % 99.7  % 100.0  %
Customer E 100.0  % 85.7  % 100.0  %