Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.7.0.1
Reportable Segment Information
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Reportable Segment Information
Reportable Segment Information
          The Company has seven operating segments for which discreet financial information is readily available: hydraulic fracturing, cementing, acidizing, coil tubing, flowback, surface drilling, and Permian drilling. These segments represent how the Chief Operating Decision Maker (CODM) evaluates performance and allocates resources.
          In accordance with Accounting Standards Codification (ASC) 280—Segment Reporting, the Company has one reportable segment (pressure pumping) comprised of the hydraulic fracturing, cementing, and acidizing operating segments. All other operating segments and corporate administrative expenses are included in the ‘‘all other’’category in the table below. 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, taxes, depreciation & amortization, stock-based compensation expense, impairment expense, (gain)/loss on disposal of assets, gain on extinguishment of debt 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.
 
 
Three months ended June 30, 2017
 
Six months ended June 30, 2017
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
 
Pressure Pumping
 
All Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Service revenue
 
$
203,591

 
$
9,901

 
$
213,492

 
$
367,431

 
$
17,992

 
$
385,423

Adjusted EBITDA
 
$
31,362

 
$
(706
)
 
$
30,656

 
$
48,283

 
$
(1,399
)
 
$
46,884

Depreciation and amortization
 
$
11,596

 
$
1,110

 
$
12,706

 
$
21,591

 
$
2,266

 
$
23,857

Goodwill
 
$
9,425

 
$

 
$
9,425

 
$
9,425

 
$

 
$
9,425

Capital expenditures
 
$
86,302

 
$
1,047

 
$
87,349

 
$
141,345

 
$
2,466

 
$
143,811

Total assets
 
$
527,648

 
$
34,268

 
$
561,916

 
$
527,648

 
$
34,268

 
$
561,916

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2016
 
Six months ended June 30, 2016
 
 
Pressure Pumping

 
All Other

 
Total

 
Pressure Pumping

 
All Other

 
Total

Service revenue
 
$
62,167

 
$
5,998

 
$
68,165

 
$
141,712

 
$
14,383

 
$
156,095

Adjusted EBITDA
 
$
529

 
$
(2,336
)
 
$
(1,807
)
 
$
3,549

 
$
(3,314
)
 
$
235

Depreciation and amortization
 
$
9,222

 
$
1,572

 
$
10,794

 
$
18,631

 
$
3,248

 
$
21,879

Goodwill
 
$
9,425

 
$
1,177

 
$
10,602

 
$
9,425

 
$
1,177

 
$
10,602

Capital expenditures
 
$
3,452

 
$
105

 
$
3,557

 
$
9,942

 
$
110

 
$
10,052

Total assets at December 31, 2016
 
$
501,906

 
$
39,516

 
$
541,422

 
$
501,906

 
$
39,516

 
$
541,422



Reconciliation of net income (loss) to adjusted EBITDA:
 
 
Three months ended June 30, 2017
 
Six months ended June 30, 2017
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
9,633

 
$
(4,712
)
 
$
4,921

 
$
1,715

 
$
(21,146
)
 
$
(19,431
)
Depreciation and amortization
 
11,596

 
1,110

 
12,706

 
21,591

 
2,266

 
23,857

Interest expense
 

 
650

 
650

 

 
5,825

 
5,825

Income tax expense
 

 
108

 
108

 

 
223

 
223

Loss/(gain) on disposal of assets
 
9,681

 
106

 
9,787

 
20,391

 
(162
)
 
20,229

Stock-based compensation
 

 
609

 
609

 

 
7,978

 
7,978

Other expense
 

 
627

 
627

 

 
602

 
602

Other general and administrative expense (1)
 

 
572

 
572

 

 
572

 
572

Deferred IPO bonus expense
 
452

 
224

 
676

 
4,586

 
2,443

 
7,029

Adjusted EBITDA
 
$
31,362

 
$
(706
)
 
$
30,656

 
$
48,283

 
$
(1,399
)
 
$
46,884

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2016
 
Six months ended June 30, 2016
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
(11,390
)
 
$
2,096

 
$
(9,294
)
 
$
(22,550
)
 
$
319

 
$
(22,231
)
Depreciation and amortization
 
9,222

 
1,572

 
10,794

 
18,631

 
3,248

 
21,879

Interest expense
 

 
5,977

 
5,977

 

 
11,392

 
11,392

Income tax benefit
 

 
(4,905
)
 
(4,905
)
 

 
(11,697
)
 
(11,697
)
Loss/(gain) on disposal of assets
 
2,697

 
(528
)
 
2,169

 
7,468

 
(532
)
 
6,936

Stock-based compensation
 

 
413

 
413

 

 
619

 
619

Gain on extinguishment of debt
 

 
(6,975
)
 
(6,975
)
 

 
(6,975
)
 
(6,975
)
Other expense
 

 
14

 
14

 

 
312

 
312

Adjusted EBITDA
 
$
529

 
$
(2,336
)
 
$
(1,807
)
 
$
3,549

 
$
(3,314
)
 
$
235