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. Our International segment includes our former operations in Mexico, Canada, Colombia, Ecuador, Russia, Bahrain and Oman. During the second half of 2015, we ceased operations in Colombia, Ecuador and the Middle East. During the fourth quarter of 2016, we completed the sale of our business in Mexico. We completed the sale of our Canadian subsidiary and Russian subsidiary in the second and third quarters of 2017, respectively. We evaluate the performance of our segments based on gross margin measures. All inter-segment sales pricing is based on current market conditions. We aggregate services that create our reportable segments in accordance with ASC 280, and the accounting policies for our segments are the same as those described in “Note 1. Organization and Summary of Significant Accounting Policies” above.

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 oil and gas 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 SWD 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 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. Our rental inventory also included frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids, proppants, oil and natural gas. We also had provided well testing services. Our frac stack equipment well testing services were sold 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

Our International segment includes our former operations in Mexico, Canada, Colombia, Ecuador, Russia, Bahrain and Oman. In April 2015, we announced our decision to exit markets in which we participate outside of North America. To this end, during the second half of 2015, we ceased operations in Colombia, Ecuador and the Middle East. During the fourth quarter of 2016, we completed the sale of our business in Mexico, and we completed the sale of our Canadian subsidiary and Russian subsidiary in the second and third quarters of 2017, respectively. Our services in these international markets consisted of rig-based services such as the maintenance, workover, and recompletion of existing oil wells, completion of newly-drilled wells, and plugging and abandonment of wells at the end of their useful lives. We also had a technology development and control systems business based in Canada, which 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 table presents our segment information as of and for the year ended December 31, 2017, the period from December 16, 2016 through December 31, 2016, the period from January 1, 2016 through December 15, 2016 and the year ended December 31, 2015 (in thousands):

Successor company as of and for the year ended December 31, 2017



	U.S. Rig Service			Fluid Management Services			Coiled Tubing Services		Fishing and Rental Services		International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	248,830		$	80,726		$	41,866	$	59,172	$	5,571		$	—		$	—		$	436,165
Depreciation and amortization	31,493			21,917			5,187		23,454		791			1,700			—			84,542
Impairment expense	—			—			—		—		187			—			—			187
Other operating expenses	220,957			78,341			35,048		28,212		9,586			75,472			—			447,616
Operating income (loss)	(3,620		)	(19,532		)	1,631		7,506		(4,993		)	(77,172		)	—			(96,180		)
Reorganization items, net	—			—			—		—		—			1,501			—			1,501
Interest expense, net of amounts capitalized	—			—			—		—		—			31,797			—			31,797
Income (loss) before taxes	(3,449		)	(19,537		)	1,643		7,748		(298		)	(108,398		)	—			(122,291		)
Long-lived assets(1)	160,170			74,591			19,064		63,340		7			122,965			(97,819		)	342,318
Total assets	287,856			(985		)	41,523		360,581		9,473			513,393			(682,720		)	529,121
Capital expenditures	8,375			3,288			886		741		475			2,314			—			16,079

Successor company as of December 31, 2016 and for the period from December 16, 2016 through December 31, 2016



	U.S. Rig Service			Fluid Management Services			Coiled Tubing Services			Fishing and Rental Services			International		Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	8,549		$	3,208		$	1,392		$	3,389		$	1,292	$	—		$	—		$	17,830
Depreciation and amortization	1,129			987			202			1,158			16		82			—			3,574
Other operating expenses	9,352			3,359			1,446			2,496			1,209		5,242			—			23,104
Operating income (loss)	(1,932		)	(1,138		)	(256		)	(265		)	67		(5,324		)	—			(8,848		)
Interest expense, net of amounts capitalized	—			—			—			—			—		1,364			—			1,364
Income (loss) before taxes	(1,932		)	(1,138		)	(256		)	(265		)	49		(6,702		)	—			(10,244		)
Long-lived assets(1)	172,871			94,887			24,741			95,544			1,236		142,580			(108,448		)	423,411
Total assets	1,348,587			226,503			106,609			462,163			62,971		(1,276,652		)	(272,200		)	657,981
Capital expenditures	331			29			—			10			—		5			—			375

Predecessor company as of December 15, 2016 and for the period from January 1, 2016 through December 15, 2016



	U.S. Rig Service			Fluid Management Services			Coiled Tubing Services			Fishing and Rental Services			International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	222,877		$	76,008		$	30,569		$	55,790		$	14,179		$	—		$	—		$	399,423
Intersegment revenues	922			934			73			4,958			284			—			(7,171		)	—
Depreciation and amortization	56,241			22,583			10,730			26,547			6,497			8,698			—			131,296
Impairment expense	—			—			—			—			44,646			—			—			44,646
Other operating expenses	206,094			91,361			39,161			55,651			22,262			111,553			—			526,082
Operating loss	(39,458		)	(37,936		)	(19,322		)	(26,408		)	(59,226		)	(120,251		)	—			(302,601		)
Reorganization items, net	262,455			9,374			(52,094		)	76,918			377			(542,601		)	—			(245,571		)
Interest expense, net of amounts capitalized	—			—			—			—			—			74,320			—			74,320
Income (loss) before taxes	(301,647		)	(48,014		)	32,891			(103,474		)	(59,773		)	351,110			—			(128,907		)
Long-lived assets(1)	173,762			95,848			24,944			96,692			1,252			142,704			(108,449		)	426,753
Total assets	1,350,566			227,749			106,760			462,759			62,520			(1,274,533		)	(272,199		)	663,622
Capital expenditures	1,477			2,950			110			3,005			711			228			—			8,481

Predecessor company as of and for the year ended December 31, 2015



	U.S. Rig Service			Fluid Management Services			Coiled Tubing Services			Fishing and Rental Services			International			Functional Support(2)			Reconciling Eliminations			Total
Revenues from external customers	$	377,131		$	153,153		$	89,823		$	121,883		$	50,336		$	—		$	—		$	792,326
Intersegment revenues	813			1,393			4			5,988			4,256			1,264			(13,718		)	—
Depreciation and amortization	59,515			28,138			21,593			34,662			23,872			12,491			—			180,271
Impairment expense	297,719			24,479			133,795			180,974			85,129			—			—			722,096
Other operating expenses	327,836			144,020			89,603			103,659			123,871			128,279			—			917,268
Operating loss	(307,939		)	(43,484		)	(155,168		)	(197,412		)	(182,536		)	(140,770		)	—			(1,027,309		)
Interest expense, net of amounts capitalized	—			—			—			—			57			73,790			—			73,847
Loss before taxes	(307,899		)	(43,402		)	(155,154		)	(197,325		)	(185,306		)	(221,464		)	—			(1,110,550		)
Long-lived assets(1)	492,906			133,553			54,156			129,204			48,538			186,211			(137,196		)	907,372
Total assets	1,325,591			267,466			138,177			468,214			185,342			(643,226		)	(413,766		)	1,327,798
Capital expenditures	14,356			6,509			4,621			8,581			2,881			3,860			—			40,808


(1)	Long-lived assets include: fixed assets, goodwill, intangibles and other assets.


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