Quarterly report pursuant to Section 13 or 15(d)

Reportable Segment Information

v3.20.2
Reportable Segment Information
 9 Months Ended
Sep. 30, 2020
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. In March 2020, the Company shut down its flowback operating segment and subsequently disposed of the assets for approximately $1.6 million. In September 2020, the Company disposed of all of its drilling rigs and ancillary assets for approximately $0.5 million. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources.
          In accordance with 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 and nine months ended September 30, 2020 was $7.0 million and $27.9 million, respectively. The corporate administrative expense for the three and nine months ended September 30, 2019 was $30.1 million and $87.3 million, respectively.
          Our hydraulic fracturing operating segment revenue approximated 95.2% and 94.0% of our pressure pumping revenue during the three and nine months ended September 30, 2020, respectively. During the three and nine months ended September 30, 2019, our hydraulic fracturing operating segment revenue approximated 95.7% and 95.7% of our pressure pumping revenue, respectively.
          Inter-segment revenues are not material and are not shown separately in the table below.
          The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before other income (expense), interest expense, income taxes, depreciation and amortization, stock-based compensation expense, severance, impairment expense, (gain)/loss on disposal of assets and other unusual or nonrecurring expenses or (income)). A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below ($ in thousands):
Three Months Ended September 30, 2020
Pressure Pumping All Other Total
Service revenue $ 131,321  $ 2,389  $ 133,710 
Adjusted EBITDA $ 26,662  $ (9,308) $ 17,354 
Depreciation and amortization $ 36,326  $ 1,141  $ 37,467 
Capital expenditures $ 7,571  $ 370  $ 7,941 
Total assets at September 30, 2020 $ 1,055,698  $ 40,439  $ 1,096,137 
Three Months Ended September 30, 2019
Pressure Pumping All Other Total
Service revenue $ 528,851  $ 12,996  $ 541,847 
Adjusted EBITDA $ 134,789  $ (2,894) $ 131,895 
Depreciation and amortization $ 36,110  $ 1,543  $ 37,653 
Goodwill at December 31, 2019 $ 9,425  $ —  $ 9,425 
Capital expenditures $ 83,770  $ 3,189  $ 86,959 
Total assets at December 31, 2019 $ 1,381,811  $ 54,300  $ 1,436,111 
Nine Months Ended September 30, 2020
Pressure Pumping All Other Total
Service revenue $ 622,055  $ 12,833  $ 634,888 
Adjusted EBITDA $ 139,359  $ (21,671) $ 117,688 
Depreciation and amortization $ 114,205  $ 3,639  $ 117,844 
Capital expenditures $ 56,873  $ 3,042  $ 59,915 
Total assets at September 30, 2020 $ 1,055,698  $ 40,439  $ 1,096,137 
Nine Months Ended September 30, 2019
Pressure Pumping All Other Total
Service revenue $ 1,576,781  $ 40,740  $ 1,617,521 
Adjusted EBITDA $ 417,017  $ (8,283) $ 408,734 
Depreciation and amortization $ 101,916  $ 4,336  $ 106,252 
Goodwill at December 31, 2019 $ 9,425  $ —  $ 9,425 
Capital expenditures $ 322,347  $ 11,978  $ 334,325 
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 September 30, 2020
Pressure Pumping All Other Total
Net loss $ (20,920) $ (8,264) $ (29,184)
Depreciation and amortization 36,326  1,141  37,467 
Interest expense —  137  137 
Income tax benefit —  (7,717) (7,717)
Loss on disposal of assets 11,256  30  11,286 
Stock-based compensation —  2,535  2,535 
Other expense —  312  312 
Other general and administrative expense(1)
—  2,481  2,481 
Severance expense —  37  37 
Adjusted EBITDA $ 26,662  $ (9,308) $ 17,354 
Three Months Ended September 30, 2019
Pressure Pumping All Other Total
Net income (loss) $ 65,961  $ (31,564) $ 34,397 
Depreciation and amortization 36,110  1,543  37,653 
Interest expense 21  1,728  1,749 
Income tax expense —  12,340  12,340 
Loss on disposal of assets 30,987  166  31,153 
Stock-based compensation —  577  577 
Other expense —  75  75 
Other general and administrative expense(1)
—  10,786  10,786 
Retention bonus and severance expense 1,710  1,455  3,165 
Adjusted EBITDA $ 134,789  $ (2,894) $ 131,895 
Nine Months Ended September 30, 2020
Pressure Pumping All Other Total
Net loss $ (30,140) $ (32,768) $ (62,908)
Depreciation and amortization 114,205  3,639  117,844 
Impairment expense 15,559  1,095  16,654 
Interest expense 1  2,207  2,208 
Income tax benefit —  (15,087) (15,087)
Loss on disposal of assets 39,659  216  39,875 
Stock-based compensation —  5,968  5,968 
Other expense —  583  583 
Other general and administrative expense (1)
—  12,418  12,418 
Retention bonus and severance expense 75  58  133 
Adjusted EBITDA $ 139,359  $ (21,671) $ 117,688 
Nine Months Ended September 30, 2019
Pressure Pumping All Other Total
Net income (loss) $ 228,285  $ (87,950) $ 140,335 
Depreciation and amortization 101,916  4,336  106,252 
Interest expense 43  5,635  5,678 
Income tax expense —  44,504  44,504 
Loss on disposal of assets 81,110  468  81,578 
Stock-based compensation —  5,246  5,246 
Other expense —  539  539 
Other general and administrative expense (1)
—  17,326  17,326 
Deferred IPO, retention bonus and severance expense 5,663  1,613  7,276 
Adjusted EBITDA $ 417,017  $ (8,283) $ 408,734 
(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, SEC investigation and shareholder litigation. All nonrecurring professional fees incurred after the end of June 2020 are in connection with the pending SEC investigation and shareholder litigation.