Revenues and Customer Receivables

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenues and Customer Receivables

Revenues and Customer Receivables

The Company's revenues are generated by services, which are rendered as provided by its customers on their sites. As a decentralized organization, contracts for the Company's services are negotiated on a regional level and are on a per job basis, with jobs being completed in a short period of time, usually one day or up to a week. Revenue is recognized as performance obligations have been completed on a daily basis either as accounts receivable or Work-in-Process ("WIP"), when all of the proper approvals are obtained.

A small percentage of the Company's jobs may require performance obligations which extend over a longer period of time and are not invoiced until all performance obligations in the contract are complete, such as plugging a well, fishing services, and pad site preparation jobs. Because these jobs are performed on the customer's job site, and the Company is contractually entitled to bill for its services performed to date, revenues for these service lines are recognized on a daily basis as services are performed and recorded as Contract Assets rather than as WIP or accounts receivable. Contract Assets are typically invoiced within 30 to 60 days of recognizing revenue.

As of September 30, 2020, accounts receivable related to products and services, net of associated allowance for credit losses, were $69.9 million compared to $99.6 million at December 31, 2019. At September 30, 2020, the Company had $1.2 million of contract assets and no contract liabilities on its consolidated balance sheet compared to $1.0 million of contract assets and $0.9 million of contract liabilities on its consolidated balance sheet at December 31, 2019. Contract assets are included in Trade Accounts Receivables, and contract liabilities are included in Other Current Liabilities on our consolidated balances sheets.

For accounts receivable related to products and services, the Company estimates its expected credit losses by reviewing and monitoring updated customer credit scores and risk ratings provided by third party and internal resources, considering the future impact of the current business and industry environment, and reviewing the historical loss experience by type of customer. During the nine month period ended September 30, 2020, the Company considered the impact of the sharp decline and current levels of the West Texas Intermediate oil price on the credit quality of its customers and included this impact in its allowance for credit losses as of September 30, 2020. In addition, the Company included in its allowance for credit losses the impact of the approximately $39.5 million of accounts receivable from the acquisition of CJWS as of the March 9, 2020, closing date. The

following table presents activity in the allowance for credit losses (in thousands):

	Nine Months Ended September 30, 2020
Balance as of December 31, 2019	$	2,208
Provision for expected credit losses, net of writeoffs and recoveries	2,547
Initial allowance for expected credit losses on purchased customer receivables	—
Balance as of September 30, 2020	$	4,755

The Company does not have any long-term service contracts, nor does it have revenue expected to be recognized in any future year related to remaining performance obligations or contracts with variable consideration related to undelivered performance obligations.

The following table sets forth certain financial information with respect to the Company’s disaggregation of revenues by geographic location and type (in thousands):

	Reportable Segments
	Well Servicing		Water Logistics		Completion & Remedial Services		Discontinued Operations		Total
Three Months Ended September 30, 2020
Primary Geographical Markets
Central	$	22,602	$	20,381	$	6,407	$	—	$	49,390
Western	30,966		11,316		5,709		—		47,991
Corporate (Intercompany)	(357)		(992)		(632)		—		(1,981)
Total	$	53,211	$	30,705	$	11,484	$	—	$	95,400
Major Products or Service Line
Well Servicing	34,841		—		—		—		34,841
Plugging	14,138		—		—		—		14,138
Transport/Vacuum	—		20,496		—		—		20,496
Production and Disposal Facilities	—		4,945		—		—		4,945
Hot Oiler	—		1,738		—		—		1,738
RAFT	—		—		9,235		—		9,235
Coiled Tubing	—		—		1,056		—		1,056
Snubbing	—		—		82		—		82
Taylor Industries - Manufacturing	3		—		—		—		3
Other	4,229		3,526		1,111		—		8,866
Total	$	53,211	$	30,705	$	11,484	$	—	$	95,400

	Well Servicing		Water Logistics		Completion & Remedial Services		Discontinued Operations		Total
Three Months Ended September 30, 2019
Primary Geographical Markets
Central	47,020		45,755		19,736		33,666		146,177
Western	11,385		5,395		19,045		1,017		36,842
Corporate (Intercompany)	(966)		(2,699)		(508)		(481)		(4,654)
Total	$	57,439	$	48,451	$	38,273	$	34,202	$	178,365
Major Products or Service Line
Well Servicing	48,738		—		—		—		48,738
Plugging	7,527		—		—		—		7,527
Transport/Vacuum	—		27,969		—		—		27,969
Production and Disposal Facilities	—		8,768		—		—		8,768
Hot Oiler	—		4,583		—		—		4,583
RAFT	—		—		18,385		—		18,385
Coiled Tubing	—		—		15,279		—		15,279
Snubbing	—		—		1,483		—		1,483
Taylor Industries - Manufacturing	731		—		—		—		731
Discontinued Operations	—		—		—		34,202		34,202
Other	443		7,131		3,126		—		10,700
Total	$	57,439	$	48,451	$	38,273	$	34,202	$	178,365

	Well Servicing		Water Logistics		Completion & Remedial Services		Discontinued Operations		Total
Nine Months Ended September 30, 2020
Primary Geographical Markets
Central	81,567		79,218		23,530		—		184,315
Western	79,246		33,650		25,034		120		138,050
Corporate (Intercompany)	(2,143)		(4,528)		(2,134)		—		(8,805)
Total	$	158,670	$	108,340	$	46,430	$	120	$	313,560
Major Products or Service Line
Well Servicing	107,939		—		—		—		107,939
Plugging	35,505		—		—		—		35,505
Transport/Vacuum	—		71,921		—		—		71,921
Production and Disposal Facilities	—		16,694		—		—		16,694
Hot Oiler	—		7,650		—		—		7,650
RAFT	—		—		30,438		—		30,438
Coiled Tubing	—		—		11,477		—		11,477
Snubbing	—		—		840		—		840
Taylor Industries - Manufacturing	3,697		—		—		—		3,697
Discontinued Operations	—		—		—		120		120
Other	11,529		12,075		3,675		—		27,279
Total	$	158,670	$	108,340	$	46,430	$	120	$	313,560

	Well Servicing		Water Logistics		Completion & Remedial Services		Discontinued Operations		Total
Nine Months Ended September 30, 2019
Primary Geographical Markets
Central	153,337		145,619		60,030		119,245		478,231
Western	35,458		17,465		55,446		3,089		111,458
Corporate (Intercompany)	(10,854)		(8,001)		(3,172)		(2,248)		(24,275)
Total	$	177,941	$	155,083	$	112,304	$	120,086	$	565,414
Major Products or Service Line
Well Servicing	144,276		—		—		—		144,276
Plugging	21,288		—		—		—		21,288
Transport/Vacuum	—		87,771		—		—		87,771
Production and Disposal Facilities	—		26,506		—		—		26,506
Hot Oiler	—		16,534		—		—		16,534
RAFT	—		—		56,780		—		56,780
Coiled Tubing	—		—		44,115		—		44,115
Snubbing	—		—		3,960		—		3,960
Taylor Industries - Manufacturing	10,934		—		—		—		10,934
Discontinued Operations	—		—		—		120,086		120,086
Other	1,443		24,272		7,449		—		33,164
Total	$	177,941	$	155,083	$	112,304	$	120,086	$	565,414