Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

13. Segment Information

The Company has two operating segments: 1) Oilfield Technologies and Services and 2) Environmental Products and Services.  Discrete financial information is available for each operating segment.  Management of each operating segment reports to our Chief Executive Officer, the Company’s chief operating decision maker, who regularly evaluates income before income taxes as the measure to evaluate segment performance and to allocate resources.  The accounting policies of each segment are the same as those described in the summary of significant accounting policies in Note 1.  For the year ended December 31, 2016, the Company concluded that the Environmental Products and Services operating segment met the disclosure requirements defined by ASC 280, Segment Reporting, and that operating segment became a reportable segment.

The Company’s oilfield technologies and services segment manufactures and sells ceramic proppants on a global basis for use primarily in the hydraulic fracturing of natural gas and oil wells.  All of the Company’s ceramic proppant products have similar production processes and economic characteristics and are marketed predominantly to pressure pumping companies that perform hydraulic fracturing for major oil and gas companies.  The Company’s manufacturing facilities also produce ceramic pellets for use in various industrial technology applications, including but not limited to casting and milling.  This segment also promotes increased production and Estimated Ultimate Recovery (“EUR”) of oil and natural gas by providing industry leading technology to Design, Build, and Optimize the Frac^TM.  Through our wholly-owned subsidiary StrataGen, Inc., we sell one of the most widely used fracture stimulation software under the brand FracPro^® and provide fracture design and consulting services to oil and natural gas E&P companies under the brand StrataGen.  

Our environmental products and services segment is intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (“LOE”).  AGPI, a wholly-owned subsidiary of ours, provides spill prevention, containment and countermeasure systems for the oil and gas industry.  AGPI uses proprietary technology designed to enable its clients to extend the life of their storage assets, reduce the potential for hydrocarbon spills and provide containment of stored materials.

Summarized financial information for the Company’s operating segments for the three-year period ended December 31, 2016 is shown in the following tables.  Intersegment sales are not material.

	Oilfield Technologies and Services			Environmental Products and Services			Total
	($ in thousands)
2016
Revenue from external customers	$	89,351		$	13,700		$	103,051
Loss before income taxes		(128,128	)		(3,080	)		(131,208	)
Total assets		709,180			14,277			723,457
Capital expenditures, net		7,008			(160	)		6,848
Depreciation and amortization		46,871			1,580			48,451
2015
Revenue from external customers	$	257,373		$	22,201		$	279,574
Loss before income taxes		(151,772	)		(11,977	)		(163,749	)
Total assets		817,845			18,524			836,369
Capital expenditures, net		62,996			(249	)		62,747
Depreciation and amortization		52,451			2,006			54,457
2014
Revenue from external customers	$	617,233		$	31,092		$	648,325
Income (loss) before income taxes		94,019			(1,148	)		92,871
Total assets		899,709			34,517			934,226
Capital expenditures, net		160,820			649			161,469
Depreciation and amortization		48,361			2,499			50,860

Geographic Information

Long-lived assets, consisting of net property, plant and equipment and other long-term assets, as of December 31 in the United States and other countries are as follows:

	2016		2015		2014
Long-lived assets:
United States	$	489,374	$	531,518	$	561,109
International		10,241		12,320		18,052
Total	$	499,615	$	543,838	$	579,161

Revenues outside the United States accounted for 34%, 29% and 24% of the Company’s revenues for 2016, 2015 and 2014, respectively.  Revenues for the years ended December 31 in the United States, Canada and other countries are as follows:

	2016		2015		2014
Revenues:
United States	$	67,609	$	199,187	$	491,004
Canada		7,460		33,614		73,092
Other international		27,982		46,773		84,229
Total	$	103,051	$	279,574	$	648,325

Sales to Customers

The following schedule presents customers, primarily from the oilfield technologies and services segment, from whom the Company derived 10% or more of total revenues for the years ended December 31:

	Major Customers
	A			B			C
2016		—			20.4	%		11.1	%
2015		10.7	%		26.9	%		—
2014		22.4	%		29.9	%		—