Business Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company’s reportable business segments are Well Servicing, Water Logistics, and Completion & Remedial Services. These segments have been selected based on changes in management’s resource allocation and performance assessment in making decisions regarding the Company. Prior to December 2019, the Company operated an Other Services segment, which was comprised of contract drilling services and manufacturing and rig servicing. Contract drilling was discontinued as a service in the third quarter of 2019, and manufacturing rig servicing was realigned with Well Servicing. Our Pumping Services Division, which was included in the Completion & Remedial Services segment was discontinued in the fourth quarter of 2019. Costs related to other business activities, primarily corporate headquarters functions, are disclosed separately from the three operating segments as "Corporate and Other." The Company evaluates segment performance on earnings before interest expense and income taxes. Products are transferred between segments and geographic areas on a basis intended to reflect as nearly as possible the market value of the products. Prior period segment information has been retrospectively revised to reflect the Company's current segmentation.

The following table sets forth certain financial information with respect to the Company’s reportable segments for the three and six months ended June 30, 2020 and 2019 (in thousands):

	Well Servicing		Water Logistics		Completion & Remedial Services		Corporate and Other		Continuing Operations Total		Discontinued Operations
Three Months Ended June 30, 2020
Operating revenues	$	47,318	$	33,254	$	9,065	$	—	$	89,637	$	25
Direct operating costs	(39,385)		(25,582)		(9,646)		—		(74,613)		(892)
Segment profits	7,933		7,672		(581)		—		15,024		(867)
Depreciation and amortization	1,638		6,111		3,736		1,368		12,853		—
Capital expenditures	172		1,324		348		(23)		1,821		—
Three Months Ended June 30, 2019
Operating revenues	$	58,518	$	51,031	$	38,426	$	—	$	147,975	$	41,872
Direct operating costs	(46,162)		(35,529)		(27,369)		—		(109,060)		(34,105)
Segment profits	12,356		15,502		11,057		—		38,915		7,767
Depreciation and amortization	4,053		5,359		6,561		1,323		17,296		11,695
Capital expenditures	5,304		7,518		1,304		220		14,346		3,915

	Well Servicing		Water Logistics		Completion & Remedial Services		Corporate and Other		Continuing Operations Total		Discontinued Operations
Six Months Ended June 30, 2020
Operating revenues	$	105,459	$	77,635	$	34,946	$	—	$	218,040	$	120
Direct operating costs	(90,202)		(58,701)		(30,828)		—		(179,731)		(2,411)
Segment profits	15,257		18,934		4,118		—		38,309		(2,291)
Depreciation and amortization	3,519		13,132		8,028		2,940		27,619		—
Capital expenditures	1,854		3,461		1,007		(3)		6,319		—
Identifiable assets	$	33,933	$	134,234	$	78,448	$	151,484	$	398,099	$	8,745
Six Months Ended June 30, 2019
Operating revenues	$	120,502	$	106,632	$	74,031	$	—	$	301,165	$	85,884
Direct operating costs	(94,970)		(72,828)		(52,385)		—		(220,183)		(74,824)
Segment profits	25,532		33,804		21,646		—		80,982		11,060
Depreciation and amortization	7,845		10,372		12,699		2,562		33,478		23,011
Capital expenditures	11,544		15,051		5,528		446		32,569		9,726
Identifiable assets	$	84,483	$	97,966	$	129,235	$	263,731	$	575,415	$	126,420

The following table reconciles the segment profits reported above to the operating loss as reported in the consolidated statements of operations for the three and six months ended June 30, 2020 and 2019 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Segment profits	$	15,024	$	38,915	$	38,309	$	80,982
General and administrative expenses	(30,445)		(30,186)		(65,515)		(61,941)
Depreciation and amortization	(12,853)		(17,296)		(27,619)		(33,478)
Gain (loss) on disposal of assets	474		(580)		511		(1,277)
Asset impairment	—		—		(99,628)		—
Operating loss	$	(27,800)	$	(9,147)	$	(153,942)	$	(15,714)