Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.22.1
Reportable Segment Information
 3 Months Ended
Mar. 31, 2022
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 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 months ended March 31, 2022 and 2021 was $17.3 million and $5.0 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 93.6% and 93.3% of our pressure pumping revenue during the three months ended March 31, 2022 and 2021, 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 March 31, 2022
Pressure Pumping All Other Total
Service revenue $ 277,112  $ 5,568  $ 282,680 
Adjusted EBITDA $ 76,995  $ (10,462) $ 66,533 
Depreciation and amortization $ 30,930  $ 924  $ 31,854 
Capital expenditures $ 71,602  $ 126  $ 71,728 
Total assets at March 31, 2022 $ 1,047,878  $ 36,573  $ 1,084,451 
Three Months Ended March 31, 2021
Pressure Pumping All Other Total
Service revenue $ 158,191  $ 3,267  $ 161,458 
Adjusted EBITDA $ 31,870  $ (11,853) $ 20,017 
Depreciation and amortization $ 32,513  $ 965  $ 33,478 
Capital expenditures $ 30,023  $ 2,305  $ 32,328 
Total assets at December 31, 2021 $ 1,023,037  $ 38,199  $ 1,061,236 
Reconciliation of net income (loss) to adjusted EBITDA (in thousands):
Three Months Ended March 31, 2022
Pressure Pumping All Other Total
Net income (loss) $ 29,370  $ (17,553) $ 11,817 
Depreciation and amortization 30,930  924  31,854 
Interest expense —  134  134 
Income tax expense —  4,137  4,137 
Loss (gain) on disposal of assets 16,421  (304) 16,117 
Stock-based compensation —  11,364  11,364 
Other income(2)
—  (10,357) (10,357)
Other general and administrative expense(1)
274  1,193  1,467 
Adjusted EBITDA $ 76,995  $ (10,462) $ 66,533 
Three Months Ended March 31, 2021
Pressure Pumping All Other Total
Net loss $ (13,675) $ (6,700) $ (20,375)
Depreciation and amortization 32,513  965  33,478 
Interest expense —  176  176 
Income tax benefit —  (6,663) (6,663)
Loss on disposal of assets 13,032  20  13,052 
Stock-based compensation —  2,487  2,487 
Other income —  (1,789) (1,789)
Other general and administrative expense, (net)(1)
—  (961) (961)
Severance expense —  612  612 
Adjusted EBITDA $ 31,870  $ (11,853) $ 20,017 
(1)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 three months ended March 31, 2022 and 2021, we received reimbursement of approximately $1.0 million and $1.6 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation.
(2)Includes $10.7 million of net tax refund (net of advisory fees) received from the Texas Comptroller of Public Accounts in connection with limited sales, excise, and use tax beginning July 1, 2015 through December 31, 2018.