Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.22.2
Reportable Segment Information
6 Months Ended
Jun. 30, 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 and six months ended June 30, 2022 was $7.7 million and $25.0 million, respectively. Total corporate administrative expense for the three and six months ended June 30, 2021 was $6.5 million and $11.6 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 92.9% and 93.2% of our pressure pumping revenue during the three and six months ended June 30, 2022, respectively. During the three and six months ended June 30, 2021, our hydraulic fracturing operating segment revenue approximated 93.7% and 93.5% 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, 2022
Pressure Pumping All Other Total
Service revenue $ 309,445  $ 5,638  $ 315,083 
Adjusted EBITDA $ 86,291  $ (10,344) $ 75,947 
Depreciation and amortization $ 30,528  $ 934  $ 31,462 
Capital expenditures $ 83,170  $ 5,911  $ 89,081 
Total assets at June 30, 2022 $ 1,025,044  $ 42,579  $ 1,067,623 
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 December 31, 2021 $ 1,023,037  $ 38,199  $ 1,061,236 
Six Months Ended June 30, 2022
Pressure Pumping All Other Total
Service revenue $ 586,557  $ 11,206  $ 597,763 
Adjusted EBITDA $ 163,285  $ (20,805) $ 142,480 
Depreciation and amortization $ 61,459  $ 1,858  $ 63,317 
Capital expenditures $ 154,773  $ 6,036  $ 160,809 
Total assets at June 30, 2022 $ 1,025,044  $ 42,579  $ 1,067,623 
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 December 31, 2021 $ 1,023,037  $ 38,199  $ 1,061,236 
Reconciliation of net income (loss) to adjusted EBITDA (in thousands):
Three Months Ended June 30, 2022
Pressure Pumping All Other Total
Net income (loss) $ (24,392) $ (8,468) $ (32,860)
Depreciation and amortization 30,528  934  31,462 
Impairment expense 57,454  —  57,454 
Interest expense —  669  669 
Income tax benefit —  (8,069) (8,069)
Loss (gain) on disposal of assets 22,680  (195) 22,485 
Stock-based compensation —  3,458  3,458 
Other income —  (6) (6)
Other general and administrative expense(1)
21  1,333  1,354 
Adjusted EBITDA $ 86,291  $ (10,344) $ 75,947 
Three Months Ended June 30, 2021
Pressure Pumping All Other Total
Net income (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, (net)(1)
—  (3,737) (3,737)
Adjusted EBITDA $ 46,826  $ (11,133) $ 35,693 
Six Months Ended June 30, 2022
Pressure Pumping All Other Total
Net income (loss) $ 4,977  $ (26,020) $ (21,043)
Depreciation and amortization 61,459  1,858  63,317 
Impairment expense 57,454  —  57,454 
Interest expense —  803  803 
Income tax benefit —  (3,932) (3,932)
Loss (gain) on disposal of assets 39,101  (498) 38,603 
Stock-based compensation —  14,822  14,822 
Other income(2)
—  (10,364) (10,364)
Other general and administrative expense (1)
294  2,526  2,820 
Adjusted EBITDA $ 163,285  $ (20,805) $ 142,480 
Six Months Ended June 30, 2021
Pressure Pumping All Other Total
Net income (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 

(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, shareholder litigation and other legal matters, net of insurance recoveries. During the three and six months ended June 30, 2022, we received reimbursement of approximately $2.4 million and $3.5 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. During the three and six months ended June 30, 2021, we received reimbursement of approximately $5.1 million and $6.7 million, respectively.
(2)Includes $10.7 million of net tax refund (net of advisory fees) received in March 2022 from the Texas Comptroller of Public Accounts in connection with limited sales, excise, and use tax beginning July 1, 2015 through December 31, 2018.