Annual report pursuant to Section 13 and 15(d)

REPORTABLE SEGMENT INFORMATION (Tables)

v3.22.4
REPORTABLE SEGMENT INFORMATION (Tables)
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Reconciliation of segment information
A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below (in thousands):
Completion
Services
All Other
Total
Year ended and as of December 31, 2022
Service revenue
$ 1,266,261  $ 13,440  $ 1,279,701 
Adjusted EBITDA
$ 318,051  $ (1,461) $ 316,590 
Depreciation and amortization
$ 125,867  $ 2,241  $ 128,108 
Impairment expense $ 57,454  $ —  $ 57,454 
Capital expenditures
$ 362,467  $ 2,849  $ 365,316 
Goodwill $ 23,624  $ —  $ 23,624 
Total assets
$ 1,335,501  $ 285  $ 1,335,786 
Completion
Services
All Other
Total
Year ended and as of December 31, 2021
Service revenue
$ 857,642  $ 16,872  $ 874,514 
Adjusted EBITDA
$ 134,309  $ 698  $ 135,007 
Depreciation and amortization
$ 129,780  $ 3,597  $ 133,377 
Capital expenditures
$ 162,222  $ 2,936  $ 165,158 
Total assets $ 1,029,992  $ 31,244  $ 1,061,236 
Completion
Services
All Other
Total
Year ended and as of December 31, 2020
Service revenue
$ 773,474  $ 15,758  $ 789,232 
Adjusted EBITDA
$ 141,652  $ (189) $ 141,463 
Depreciation and amortization
$ 148,936  $ 4,354  $ 153,290 
Impairment expense $ 36,907  $ 1,095  $ 38,002 
Capital expenditures
$ 80,410  $ 835  $ 81,245 
Total assets
$ 1,018,536  $ 32,203  $ 1,050,739 
Reconciliation of net income (loss) to adjusted EBITDA (in thousands):
Completion
Services
All Other
Total
Year ended December 31, 2022
Net income (loss) $ 19,754  $ (17,724) $ 2,030 
Depreciation and amortization
125,867  2,241  128,108 
Interest expense
1,605  —  1,605 
Income tax expense 5,356  —  5,356 
Loss on disposal of assets 88,145  14,005  102,150 
Impairment expense 57,454  —  57,454 
Stock‑based compensation
21,881  —  21,881 
Other income (2) (3)
(11,582) —  (11,582)
Other general and administrative expense (1)
8,460  —  8,460 
Severance expense 1,111  17  1,128 
Adjusted EBITDA
$ 318,051  $ (1,461) $ 316,590 
Completion
Services
All Other Total
Year ended December 31, 2021
Net loss $ (51,189) $ (2,996) $ (54,185)
Depreciation and amortization
129,780  3,597  133,377 
Interest expense
614  —  614 
Income tax benefit (14,252) —  (14,252)
Loss on disposal of assets 64,549  97  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 632  —  632 
Adjusted EBITDA
$ 134,309  $ 698  $ 135,007 
Completion
Services
All Other Total
Year ended December 31, 2020
Net loss $ (99,830) $ (7,190) $ (107,020)
Depreciation and amortization
148,936  4,354  153,290 
Interest expense
2,383  —  2,383 
Income tax benefit (27,480) —  (27,480)
Loss on disposal of assets
56,584  1,552  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 1,140  —  1,140 
Adjusted EBITDA
$ 141,652  $ (189) $ 141,463 
(1)During the years ended December 31, 2022, 2021 and 2020, 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, legal settlement to a vendor and other legal matters, net of insurance recoveries. During the years ended December 31, 2022, 2021 and 2020, we received reimbursement of approximately $10.4 million, $9.8 million and $0.6 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation.
(2)Includes a $10.7 million 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 audit of the period from July 1, 2015 through December 31, 2018.
(3)Includes $2.7 million non-cash income from fixed asset inventory received as part of a settlement of warranty claims with an equipment manufacturer and a $1.6 million unrealized loss on short-term investment.
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,
2022 2021 2020
Customer A
33.1  % 54.2  % 42.5  %
Customer B
28.3  % 14.6  % 20.3  %
Customer C
15.0  % 8.8  % 9.3  %
Customer D
4.7  % 4.4  % 8.6  %
Customer E
2.9  % 3.8  % 5.8  %
The above significant customers’ revenue that relates to Completion Services reportable segment is below:
Year Ended December 31,
2022 2021 2020
Customer A 99.8  % 99.6  % 99.8  %
Customer B 99.9  % 100.0  % 97.6  %
Customer C 100.0  % 99.7  % 99.9  %
Customer D 99.1  % 87.6  % 99.7  %
Customer E 99.4  % 100.0  % 85.7  %