Business Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

In accordance with ASC 280, "Segment Reporting", the Company routinely evaluates whether its separate segments have changed. This determination is made based on the following factors: (i) the Company’s chief operating decision maker (“CODM”) is currently managing each operating segment as a separate business and evaluating the performance of each segment and making resource allocation decisions distinctly and expects to do so for the foreseeable future, and (ii) discrete financial information for each operating segment is available.

The following is a description of each reportable segment:

Completion Services

 The Company’s Completion Services segment consists of the following businesses and service lines: (i) fracturing services; (ii) wireline and pumping services; and (iii) completion support services, which includes our Power Solutions natural gas fueling business, our proppant last mile logistics and storage business, and our research and technology department.

Well Construction and Intervention Services

 Following the sale of the Company's coiled tubing assets, the Company’s WC&I Services segment consists of cementing services.

On August 1, 2022, the Company sold its coiled tubing assets to Gladiator for a cash purchase price of $21.6 million, which resulted in a gain on sale of assets of $11.6 million. The divestiture of non-core assets is consistent with the Company’s strategy to repurpose capital towards the highest return projects that fit the Company’s strategy around wellsite integration, while also strengthening liquidity.

The following tables present financial information with respect to the Company’s segments. Corporate and Other represents costs not directly associated with a segment, such as interest expense, income taxes and corporate overhead. Corporate assets include cash, deferred financing costs, derivatives and entity-level machinery equipment.

	(Thousands of Dollars)
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operations by business segment
Adjusted gross profit:
Completion Services(1)	$	260,080	$	184,730	$	512,715	$	291,064
WC&I(1)	8,712		8,316		17,805		12,369
Total adjusted gross profit	$	268,792	$	193,046	$	530,520	$	303,433

(1)    Adjusted gross profit at the segment level is not considered to be a non-GAAP financial measure as it is the Company's segment measure of profitability and is required to be disclosed under GAAP pursuant to ASC 280. Adjusted gross profit is defined as revenue less cost of services excluding depreciation and amortization, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance. 

	(Thousands of Dollars)
	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Completion Services		WC&I		Total		Completion Services		WC&I		Total
Revenue	$	905,518	$	39,573	$	945,091	$	1,801,082	$	79,681	$	1,880,763
Cost of Services	645,438		30,861		676,299		1,288,367		61,876		1,350,243
Gross profit excluding depreciation and amortization	260,080		8,712		268,792		512,715		17,805		530,520
Management adjustments associated with cost of services	—		—		—		—		—		—
Adjusted gross profit	$	260,080	$	8,712	$	268,792	$	512,715	$	17,805	$	530,520

	(Thousands of Dollars)
	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	Completion Services		WC&I		Total		Completion Services		WC&I		Total
Revenue	$	801,049	$	41,863	$	842,912	$	1,403,669	$	74,286	$	1,477,955
Cost of Services	616,319		33,547		649,866		1,112,605		61,917		1,174,522
Gross profit excluding depreciation and amortization	184,730		8,316		193,046		291,064		12,369		303,433
Management adjustments associated with cost of services	—		—		—		—		—		—
Adjusted gross profit	$	184,730	$	8,316	$	193,046	$	291,064	$	12,369	$	303,433

	(Thousands of Dollars)
	June 30, 2023		December 31, 2022
Total assets by segment:
Completion Services	$	1,629,596	$	1,404,557
WC&I	40,394		38,150
Corporate and Other	493,576		284,461
Total assets	$	2,163,566	$	1,727,168
Goodwill by segment:
Completion Services	$	192,780	$	192,780
WC&I	—		—
Corporate and Other	—		—
Total goodwill	$	192,780	$	192,780

Disaggregation of Revenue

Revenue activities during the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	(Thousands of Dollars)						(Thousands of Dollars)
	Completion Services		WC&I		Total		Completion Services		WC&I		Total
Geography
Northeast	$	143,117	$	8,299	$	151,416	$	306,578	$	16,326	$	322,904
Central	174,587		—		174,587		365,595		—		365,595
West Texas	507,510		29,088		536,598		987,734		59,665		1,047,399
West	78,569		2,186		80,755		137,334		3,690		141,024
International	1,735		—		1,735		3,841		—		3,841
	$	905,518	$	39,573	$	945,091	$	1,801,082	$	79,681	$	1,880,763

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	(Thousands of Dollars)						(Thousands of Dollars)
	Completion Services		WC&I		Total		Completion Services		WC&I		Total
Geography
Northeast	$	110,319	$	6,376	$	116,695	$	199,877	$	11,886	$	211,763
Central	159,995		—		159,995		273,091		—		273,091
West Texas	496,916		34,025		530,941		877,063		60,103		937,166
West	30,399		1,462		31,861		49,023		2,297		51,320
International	3,420		—		3,420		4,615		—		4,615
	$	801,049	$	41,863	$	842,912	$	1,403,669	$	74,286	$	1,477,955