SEGMENT INFORMATION

Our reportable business segments are U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services and International. We also have a “Functional Support” segment associated with overhead and other costs in support of our reportable segments. Our U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services operate geographically within the United States. The International reportable segment includes our current and former operations in Canada, Mexico and Russia. During the second quarter of 2017 and the fourth quarter of 2016, we completed the sale of our businesses in Canada and Mexico, respectively, and we are currently in discussions to sell our business in Russia. We evaluate the performance of our segments based on gross margin measures. All inter-segment sales pricing is based on current market conditions.

U.S. Rig Services

Our U.S. Rig Services include the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells at the end of their useful lives. We also provide specialty drilling services to oil and natural gas producers with certain of our larger rigs that are capable of providing conventional and horizontal drilling services. Our rigs encompass various sizes and capabilities, allowing us to service all types of wells. Many of our rigs are outfitted with our proprietary KeyView® technology, which captures and reports well site operating data and provides safety control systems. We believe that this technology allows our customers and our crews to better monitor well site operations, improves efficiency and safety, and adds value to the services that we offer.

The completion and recompletion services provided by our rigs prepare wells for production, whether newly drilled, or recently extended through a workover operation. The completion process may involve selectively perforating the well casing to access production zones, stimulating and testing these zones, and installing tubular and downhole equipment. We typically provide a well service rig and may also provide other equipment to assist in the completion process. Completion services vary by well and our work may take a few days to several weeks to perform, depending on the nature of the completion.

The workover services that we provide are designed to enhance the production of existing wells and generally are more complex and time consuming than normal maintenance services. Workover services can include deepening or extending wellbores into new formations by drilling horizontal or lateral wellbores, sealing off depleted production zones and accessing previously bypassed production zones, converting former production wells into injection wells for enhanced recovery operations and conducting major subsurface repairs due to equipment failures. Workover services may last from a few days to several weeks, depending on the complexity of the workover.

Maintenance services provided with our rig fleet are generally required throughout the life cycle of an oil or natural gas well. Examples of these maintenance services include routine mechanical repairs to the pumps, tubing and other equipment, removing debris and formation material from wellbores, and pulling rods and other downhole equipment from wellbores to identify and resolve production problems. Maintenance services are generally less complicated than completion and workover related services and require less time to perform.

Our rig fleet is also used in the process of permanently shutting-in oil or natural gas wells that are at the end of their productive lives. These plugging and abandonment services generally require auxiliary equipment in addition to a well servicing rig. The demand for plugging and abandonment services is not significantly impacted by the demand for oil and natural gas because well operators are required by state regulations to plug wells that are no longer productive.

Fluid Management Services

We provide transportation and well-site storage services for various fluids utilized in connection with drilling, completions, workover and maintenance activities. We also provide disposal services for fluids produced subsequent to well completion. These fluids are removed from the well site and transported for disposal in saltwater disposal wells owned by us or a third party. In addition, we operate a fleet of hot oilers capable of pumping heated fluids used to clear soluble restrictions in a wellbore. Demand and pricing for these services generally correspond to demand for our well service rigs.

Coiled Tubing Services

Coiled Tubing Services involve the use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications, such as wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations utilizing acid and chemical treatments. Coiled tubing is also used for a number of horizontal well applications such as milling temporary isolation plugs that separate frac zones, and various other pre- and post-hydraulic fracturing well preparation services.

Fishing and Rental Services

We offer a full line of fishing services and rental equipment designed for use in providing drilling and workover services. Fishing services involve recovering lost or stuck equipment in the wellbore utilizing a broad array of “fishing tools.” Our rental tool inventory consists of drill pipe, tubulars, handling tools (including our patented Hydra-Walk^® pipe-handling units and services), pressure-control equipment, pumps, power swivels, reversing units, foam air units, proppants, oil and natural gas. We sold our well testing assets and our frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids in the second quarter of 2017.

Demand for our fishing and rental services is closely related to capital spending by oil and natural gas producers, which is generally a function of oil and natural gas prices.

International

In April 2015, we announced our decision to exit markets in which we participate outside of North America. During the second quarter of 2017 and the fourth quarter of 2016, we completed the sale of our businesses in Canada and Mexico, respectively, and we are currently in discussions to sell our business in Russia. We provided rig-based services such as the maintenance, workover, recompletion of existing oil wells, completion of newly-drilled wells and plugging and abandonment of wells at the end of their useful lives in each of our international markets. In addition, in Mexico we provided drilling, coiled tubing, wireline and project management and consulting services. Our Canadian business was focused on the development of hardware and software related to oilfield service equipment controls, data acquisition and digital information flow.

Functional Support

Our Functional Support segment includes unallocated overhead costs associated with administrative support for our U.S. and International reporting segments.

Financial Summary

The following tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2017 and 2016 (in thousands):



Successor company as of and for the three months ended June 30, 2017
	U.S. Rig Services			Fluid Management Services			Coiled Tubing Services		Fishing and Rental Services			International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	61,802		$	18,867		$	9,165	$	15,776		$	2,170		$	—		$	—		$	107,780
Intersegment revenues	54			354			—		706			—			—			(1,114		)	—
Depreciation and amortization	7,895			5,469			1,284		5,850			32			380			—			20,910
Other operating expenses	54,084			16,625			7,556		(7,568		)	3,490			19,707			—			93,894
Operating income (loss)	(177		)	(3,227		)	325		17,494			(1,352		)	(20,087		)	—			(7,024		)
Reorganization items, net	—			—			—		—			—			101			—			101
Interest expense, net of amounts capitalized	—			—			—		—			—			7,872			—			7,872
Income (loss) before income taxes	(19		)	(3,071		)	330		17,514			(1,044		)	(27,746		)	—			(14,036		)
Long-lived assets(1)	173,679			82,994			21,422		74,285			544			124,711			(99,765		)	377,870
Total assets	297,716			7,617			35,750		367,224			129,176			(46,368		)	(202,762		)	588,353
Capital expenditures	2,642			975			179		503			240			257			—			4,796



Predecessor company as of and for the three months ended June 30, 2016
	U.S. Rig Services			Fluid Management Services			Coiled Tubing Services			Fishing and Rental Services			International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	51,502		$	19,591		$	7,617		$	13,412		$	2,890		$	—		$	—		$	95,012
Intersegment revenues	199			221			3			1,267			110			—			(1,800		)	—
Depreciation and amortization	14,771			5,978			2,905			7,580			2,111			2,511			—			35,856
Impairment expense	—			—			—			—			—			—			—			—
Other operating expenses	50,405			21,168			10,769			14,608			5,680			27,692			—			130,322
Operating loss	(13,674		)	(7,555		)	(6,057		)	(8,776		)	(4,901		)	(30,203		)	—			(71,166		)
Interest expense, net of amounts capitalized	—			—			—			—			—			21,357			—			21,357
Loss before income taxes	(13,663		)	(7,519		)	(6,007		)	(8,767		)	(5,778		)	(51,201		)	—			(92,935		)
Long-lived assets(1)	468,321			118,898			49,598			113,276			48,588			185,907			(143,613		)	840,975
Total assets	1,310,869			255,124			121,677			474,396			164,783			(787,211		)	(409,861		)	1,129,777
Capital expenditures	364			1,200			—			432			347			23			—			2,366



Successor company as of and for the six months ended June 30, 2017
	U.S. Rig Services			Fluid Management Services			Coiled Tubing Services			Fishing and Rental Services		International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	122,093		$	36,762		$	14,506		$	31,631	$	4,240		$	—		$	—		$	209,232
Intersegment revenues	100			638			22			1,626		—			—			(2,386		)	—
Depreciation and amortization	15,219			11,277			2,697			11,800		557			661			—			42,211
Impairment expense	—			—			—			—		187			—			—			187
Other operating expenses	109,138			35,649			13,769			6,214		7,148			40,278			—			212,196
Operating income (loss)	(2,264		)	(10,164		)	(1,960		)	13,617		(3,652		)	(40,939		)	—			(45,362		)
Reorganization items, net	—			—			—			—		—			1,441			—			1,441
Interest expense, net of amounts capitalized	—			—			—			—		—			15,582			—			15,582
Income (loss) before income taxes	(2,110		)	(10,236		)	(1,948		)	13,840		(3,286		)	(57,444		)	—			(61,184		)
Long-lived assets(1)	173,679			82,994			21,422			74,285		544			124,711			(99,765		)	377,870
Total assets	297,716			7,617			35,750			367,224		129,176			(46,368		)	(202,762		)	588,353
Capital expenditures	4,668			1,093			179			530		356			410			—			7,236



Predecessor company as of and for the six months ended June 30, 2016
	U.S. Rig Services			Fluid Management Services			Coiled Tubing Services			Fishing and Rental Services			International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	110,490		$	42,261		$	17,148		$	29,695		$	6,506		$	—		$	—		$	206,100
Intersegment revenues	444			530			43			2,254			250			—			(3,521		)	—
Depreciation and amortization	29,676			11,858			5,891			14,762			4,348			5,073			—			71,608
Other operating expenses	100,854			44,230			23,463			27,721			12,119			58,778			—			267,165
Operating loss	(20,040		)	(13,827		)	(12,206		)	(12,788		)	(9,961		)	(63,851		)	—			(132,673		)
Interest expense, net of amounts capitalized	—			—			—			—			—			42,941			—			42,941
Loss before income taxes	(20,025		)	(13,787		)	(12,083		)	(12,781		)	(10,275		)	(105,844		)	—			(174,795		)
Long-lived assets(1)	468,321			118,898			49,598			113,276			48,588			185,907			(143,613		)	840,975
Total assets	1,310,869			255,124			121,677			474,396			164,783			(787,211		)	(409,861		)	1,129,777
Capital expenditures	504			2,020			101			1,516			711			215			—			5,067


(1)	Long-lived assets include fixed assets, intangibles and other non-current assets.


(2)	Functional Support is geographically located in the United States.