Significant Risks and Uncertainties

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

Significant Risks and Uncertainties

Significant Risks and Uncertainties

The Company operates in two reportable segments: Completion Services and WC&I, with significant concentration in the Completion Services segment. During the three months ended June 30, 2023 and 2022, sales to Completion Services customers represented 96% and 95% of the Company's consolidated revenue, respectively. During the six months ended June 30, 2023 and 2022, sales to Completion Services customers represented 96% and 95% of the Company's consolidated revenue, respectively.

    The Company depends on its customers' willingness to make operating and capital expenditures to explore for, develop and produce oil and natural gas onshore in the U.S. This activity is driven by many factors, including current and expected crude oil and natural gas prices.

From the end of the fourth quarter of 2019 through mid-August 2020, the U.S. active rig count decreased by 70%, from 805 to 244 rigs before recovering to 351 rigs by the end of 2020. In 2021, the U.S. active rig count recovery continued, increasing 67% from 351 rigs at the end of 2020 to 586 rigs by the end of 2021. The activity growth since the end of 2021 continued to improve through the first quarter of 2023, closing at 755 active rigs. However, active rig count has since decreased slightly through the second quarter of 2023, closing at 674 active rigs as of June 30, 2023, though still up 15% from the end of 2021.

     Significant customers are those that individually account for 10% or more of the Company's consolidated revenue or total accounts receivable. For the three months ended June 30, 2023, the Company had one customer in the completions services segment that individually represented 12%, or $111.2 million, of the Company's consolidated revenue. For the three months ended June 30, 2022, there were no customers considered significant. For the six months ended June 30, 2023 and 2022, the Company had one significant customer in the Completions Services segment that individually represented 10% or $183.6 million and 10% or $142.1 million of the Company's consolidated revenue, respectively.

For the three and six months ended June 30, 2023 and 2022, there were no suppliers that individually represented more than 5% of the Company's overall purchases.