Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.10.0.1
Reportable Segment Information
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Reportable Segment Information
Reportable Segment Information
          The Company has five operating segments for which discreet financial information is readily available: hydraulic fracturing (inclusive of acidizing), cementing, coil tubing, flowback, and drilling. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources.
          During the fourth quarter of 2017, our acidizing operation was consolidated into our hydraulic fracturing operating segment, and we no longer maintain discreet financial information for acidizing, resulting in a reduction in the number of our operating segments from seven to six as of the year ended December 31, 2017.
          On August 31, 2018, we divested our surface air drilling operations, included in our "all other" category, in order to continue to focus and position ourselves as a Permian Basin-focused pressure pumping business because we believe the pressure pumping market in the Permian Basin offers more supportive long-term growth fundamentals. The divestiture of our surface air drilling operations did not qualify for presentation and disclosure as discontinued operations, and accordingly we have recorded the resulting loss on disposal of our surface air drilling of $0.3 million, as part of our loss on disposal of asset in our statement of operations. The divestiture of our surface air drilling operations resulted in a reduction in the number of our current operating segments to five. The change in the number of our operating segments did not impact our reportable segment information reported during the three and nine months ended September 30, 2018 and 2017.
          In accordance with Accounting Standards Codification 280—Segment Reporting, the Company has one reportable segment (pressure pumping) comprised of the hydraulic fracturing and cementing 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 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 September 30, 2018
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
 
 
 
 
 
 
 
Service revenue
 
$
421,436

 
$
12,605

 
$
434,041

Adjusted EBITDA
 
$
105,069

 
$
(1,701
)
 
$
103,368

Depreciation and amortization
 
$
22,026

 
$
1,191

 
$
23,217

Goodwill
 
$
9,425

 
$

 
$
9,425

Capital expenditures
 
$
73,143

 
$
1,060

 
$
74,203

Total assets
 
$
903,653

 
$
36,065

 
$
939,718

 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
Service revenue
 
$
271,924

 
$
10,806

 
$
282,730

Adjusted EBITDA
 
$
50,013

 
$
(2,245
)
 
$
47,768

Depreciation and amortization
 
$
13,637

 
$
1,108

 
$
14,745

Goodwill
 
$
9,425

 
$

 
$
9,425

Capital expenditures
 
$
61,752

 
$
765

 
$
62,517

Total assets at December 31, 2017
 
$
688,279

 
$
30,753

 
$
719,032



 
 
Nine Months Ended September 30, 2018
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
 
 
 
 
 
 
 
Service revenue
 
$
1,242,286

 
$
36,862

 
$
1,279,148

Adjusted EBITDA
 
$
281,951

 
$
(5,871
)
 
$
276,080

Depreciation and amortization
 
$
59,830

 
$
3,598

 
$
63,428

Goodwill
 
$
9,425

 
$

 
$
9,425

Capital expenditures
 
$
218,113

 
$
6,586

 
$
224,699

Total assets
 
$
903,653

 
$
36,065

 
$
939,718

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
Service revenue
 
$
639,355

 
$
28,798

 
$
668,153

Adjusted EBITDA
 
$
98,296

 
$
(3,641
)
 
$
94,655

Depreciation and amortization
 
$
35,228

 
$
3,374

 
$
38,602

Goodwill
 
$
9,425

 
$

 
$
9,425

Capital expenditures
 
$
203,097

 
$
3,231

 
$
206,328

Total assets at December 31, 2017
 
$
688,279

 
$
30,753

 
$
719,032


Reconciliation of net income (loss) to adjusted EBITDA:
 
 
Three Months Ended September 30, 2018
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
66,493

 
$
(20,208
)
 
$
46,285

Depreciation and amortization
 
22,026

 
1,191

 
23,217

Interest expense
 

 
1,480

 
1,480

Income tax expense
 

 
13,592

 
13,592

Loss on disposal of assets
 
16,117

 
290

 
16,407

Stock-based compensation
 

 
1,631

 
1,631

Other expense
 

 
93

 
93

Deferred IPO bonus expense
 
433

 
230

 
663

Adjusted EBITDA
 
$
105,069

 
$
(1,701
)
 
$
103,368

 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
28,372

 
$
(6,407
)
 
$
21,965

Depreciation and amortization
 
13,637

 
1,108

 
14,745

Interest expense
 

 
644

 
644

Income tax benefit
 

 
(96
)
 
(96
)
Loss on disposal of assets
 
7,552

 
1,190

 
8,742

Stock-based compensation
 

 
751

 
751

Other expense
 

 
191

 
191

Other general and administrative expense(1)
 

 
149

 
149

Deferred IPO bonus expense
 
452

 
225

 
677

Adjusted EBITDA
 
$
50,013

 
$
(2,245
)
 
$
47,768


 
(1) Other general and administrative expense relates to legal settlement expense. 
 
 
Nine Months Ended September 30, 2018
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
176,952

 
$
(54,868
)
 
$
122,084

Depreciation and amortization
 
59,830

 
3,598

 
63,428

Interest expense
 

 
4,973

 
4,973

Income tax expense
 

 
35,998

 
35,998

Loss/(gain) on disposal of assets
 
43,768

 
(707
)
 
43,061

Stock-based compensation
 

 
3,832

 
3,832

Other expense
 

 
505

 
505

Other general and administrative expense (1)
 
2

 
18

 
20

Deferred IPO bonus expense
 
1,399

 
780

 
2,179

Adjusted EBITDA
 
$
281,951

 
$
(5,871
)
 
$
276,080

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
($ in thousands)
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
30,087

 
$
(27,552
)
 
$
2,535

Depreciation and amortization
 
35,228

 
3,374

 
38,602

Interest expense
 

 
6,469

 
6,469

Income tax expense
 

 
128

 
128

Loss on disposal of assets
 
27,943

 
1,028

 
28,971

Stock-based compensation
 

 
8,730

 
8,730

Other expense
 

 
792

 
792

Other general and administrative expense (1)
 

 
722

 
722

Deferred IPO bonus expense
 
5,038

 
2,668

 
7,706

Adjusted EBITDA
 
$
98,296

 
$
(3,641
)
 
$
94,655

 
(1) Other general and administrative expense relates to legal settlement expense.