Discontinued Operations

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the third and fourth quarters of 2019, the Company's management decided to divest all of its contract drilling rigs, and a majority of pressure pumping equipment and related ancillary equipment. The majority of the real estate and equipment was sold during late 2019 and the first quarter of 2020, with the remaining, primarily real estate assets classified as assets held for sale. The Company is pursuing additional transactions to divest the remainder of these non-strategic assets during 2021.

The operating results of the pressure pumping operations and contract drilling operations, which were historically included in the Completions & Remedial Services and Other Services segments, have been reclassified

as discontinued operations in the Condensed Consolidated Statement of Operations for the three month periods ended March 31, 2021 and 2020, and are detailed in the table below:

	Three Months Ended March 31,
(in thousands)	2021		2020
Revenues	$	—	$	95
Costs of services	1,393		1,520
Selling, general and administrative	113		1,938
Asset impairment	2,842		2,333
Loss (gain) on disposal of assets	(551)		2,656
Total operating expenses	3,797		8,447
Operating loss	(3,797)		(8,352)
Interest expense	—		(100)
Loss from discontinued operations	$	(3,797)	$	(8,452)

Interest expense in discontinued operations is related to interest expense on finance lease assets that operated in the discontinued Completions & Remedial Services and Other Services segments. Impairment expense was recorded during the three month periods ended March 31, 2021 and 2020, associated with certain non-strategic assets with carrying values that were in excess of current estimated selling price.

During 2020 and 2021, a substantial majority of the assets related to these discontinued operations, were disposed. The remaining assets and liabilities related to the divested operations are included in the consolidated balance sheets as follows:

(in thousands)	March 31, 2021		December 31, 2020
Assets held for sale
Property and equipment, net	$	3,194	$	1,523
Total assets held for sale	$	3,194	$	1,523
Other long term assets
Real estate held for sale	$	—	$	4,802
Liabilities related to assets held for sale
Operating lease liabilities	$	422	$	508
Total liabilities related to assets held for sale	$	422	$	508

Consolidated statements of cash flow information related to these discontinued operations are detailed in the table below:

	Three Months Ended March 31,
(in thousands)	2021		2020
Cash Flows from Discontinued Operations
Net cash provided (used) by operating activities	$	(1,506)	$	(3,467)
Net cash provided by investing activities	$	—	$	39,021

Proceeds from the sale of assets related to discontinued operations totaled $39.0 million for the first quarter of 2020.