Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.20.2
Reportable Segment Information
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Reportable Segment Information Reportable Segment Information
          The Company has four operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), cementing, coiled tubing and drilling. In March 2020, the Company shut down its flowback operating segment and subsequently disposed of the assets for approximately $1.6 million. These operating segments represent how the Chief Operating Decision Maker 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 and cementing operating segments. All other operating segments and corporate administrative expense (inclusive of our total income tax 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, 2020 and 2019 was $10.3 million and $29.7 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 94.8% and 95.9% of our pressure pumping revenue during the three months ended March 31, 2020 and and 2019, respectively.
          Inter-segment revenues are not material and are not shown separately in the table below.
          The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before other income (expense), interest, taxes, depreciation and amortization, stock-based compensation expense, severance, impairment expense, (gain)/loss on disposal of assets and other unusual or nonrecurring expenses or (income)). A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below ($ in thousands):
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
Pressure Pumping
 
All Other
 
Total
Service revenue
 
$
386,919

 
$
8,150

 
$
395,069

Adjusted EBITDA
 
$
78,664

 
$
(3,741
)
 
$
74,923

Depreciation and amortization
 
$
38,969

 
$
1,236

 
$
40,205

Capital expenditures
 
$
39,268

 
$
828

 
$
40,096

Total assets at March 31, 2020
 
$
1,347,189

 
$
52,701

 
$
1,399,890

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Pressure Pumping
 
All Other
 
Total
Service revenue
 
$
532,064

 
$
14,115

 
$
546,179

Adjusted EBITDA
 
$
151,040

 
$
(765
)
 
$
150,275

Depreciation and amortization
 
$
31,783

 
$
1,334

 
$
33,117

Goodwill at December 31, 2019
 
$
9,425

 
$

 
$
9,425

Capital expenditures
 
$
82,035

 
$
4,112

 
$
86,147

Total assets at December 31, 2019
 
$
1,381,811

 
$
54,300

 
$
1,436,111


Reconciliation of net income (loss) to adjusted EBITDA ($ in thousands):
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
4,308

 
$
(12,112
)
 
$
(7,804
)
Depreciation and amortization
 
38,969

 
1,236

 
40,205

Impairment expense
 
15,559

 
1,095

 
16,654

Interest expense
 
1

 
1,280

 
1,281

Income tax expense
 

 
(909
)
 
(909
)
Loss on disposal of assets
 
19,815

 
39

 
19,854

Stock-based compensation
 

 
471

 
471

Other expense
 

 
3

 
3

Other general and administrative expense(1)
 

 
5,135

 
5,135

Retention bonus and severance expense
 
12

 
21

 
33

Adjusted EBITDA
 
$
78,664

 
$
(3,741
)
 
$
74,923

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Pressure Pumping
 
All Other
 
Total
Net income (loss)
 
$
98,094

 
$
(28,289
)
 
$
69,805

Depreciation and amortization
 
31,783

 
1,334

 
33,117

Interest expense
 

 
1,903

 
1,903

Income tax expense
 

 
21,892

 
21,892

Loss on disposal of assets
 
19,006

 
222

 
19,228

Stock-based compensation
 

 
1,829

 
1,829

Other expense
 

 
187

 
187

Deferred IPO bonus expense
 
2,157

 
157

 
2,314

Adjusted EBITDA
 
$
151,040

 
$
(765
)
 
$
150,275


 
(1)
Other general and administrative expense relates to nonrecurring professional fees paid to external consultants in connection with the Company's expanded audit committee review.