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Segment Information
12 Months Ended
Dec. 31, 2017
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 revenue and income (loss) 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.

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 FracTM.  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, 2017 is shown in the following tables.  Intersegment sales are not material.

 

 

 

Oilfield Technologies and Services

 

 

Environmental Products and Services

 

 

Total

 

 

 

($ in thousands)

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

165,557

 

 

$

23,199

 

 

$

188,756

 

Loss before income taxes

 

 

(255,097

)

 

 

(46

)

 

 

(255,143

)

Total assets

 

 

524,952

 

 

 

15,646

 

 

 

540,598

 

Capital expenditures, net

 

 

2,228

 

 

 

(76

)

 

 

2,152

 

Depreciation and amortization

 

 

44,060

 

 

 

1,277

 

 

 

45,337

 

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

 

 

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:

 

 

 

2017

 

 

2016

 

 

2015

 

Long-lived assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

326,665

 

 

$

489,374

 

 

$

531,518

 

International

 

 

6,482

 

 

 

10,241

 

 

 

12,320

 

Total

 

$

333,147

 

 

$

499,615

 

 

$

543,838

 

 

Revenues outside the United States accounted for 21%, 34% and 29% of the Company’s revenues for 2017, 2016 and 2015, respectively.  Revenues for the years ended December 31 in the United States, Canada and other countries are as follows:

 

 

 

2017

 

 

2016

 

 

2015

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

149,040

 

 

$

67,609

 

 

$

199,187

 

Canada

 

 

7,439

 

 

 

7,460

 

 

 

33,614

 

Other international

 

 

32,276

 

 

 

27,982

 

 

 

46,773

 

Total

 

$

188,756

 

 

$

103,051

 

 

$

279,574

 

 

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

 

 

D

 

2017

 

 

 

 

 

16.1

%

 

 

 

 

 

10.2

%

2016

 

 

 

 

 

20.4

%

 

 

11.1

%

 

 

 

2015

 

 

10.7

%

 

 

26.9

%