Sale of F&R Services Operations (Notes)

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Sale of Fishing and Rental Services Operations

On September 17, 2014, we entered into an asset sales agreement with Basic Energy Services L.P. ("Basic") for the sale of our fishing and rental services (“F&R”) operations for total consideration of $16.1 million, subject to certain adjustments. The sales price consisted of $15.1 million of cash received at closing and $1.0 million to be held in escrow for a period of 180 days for potential claims due to Basic. Under the terms of the sales agreement, Basic purchased two real estate locations and all F&R tools and equipment for which we had a total net book value of $4.3 million at the date of sale. Basic also purchased certain other assets and assumed certain liabilities related to our F&R operations. In addition, Basic offered employment to the F&R employees and we agreed to provide transition services to Basic after the close of the transaction. We recognized a $10.7 million gain on the sale of our F&R operations, net of costs directly attributable to the sale. Net of income taxes, the gain was $6.6 million. Cash proceeds from the sale were used to repay long-term debt obligations.

For the nine months ended September 30, 2014, F&R operations represented approximately 1% of our consolidated revenues and approximately 1% of our consolidated pretax income. Total assets for F&R at the date of sale represented less than 1% of our total assets as of September 30, 2014. The sale of the F&R operations does not represent a strategic shift for our company and will not have a significant effect on our operating results. Therefore, the F&R operations does not represent discontinued operations based on the criteria of ASU No. 2014-08, "Discontinued Operations."

Balance sheet information for the F&R operations is as follows (amounts in thousands):

	December 31, 2013
Current assets	$	1,877
Property and equipment, less accumulated depreciation	6,132
Total assets	$	8,009
Current liabilities	$	919
Long term liabilities	1,452
Total liabilities	$	2,371

Statement of operations information for the F&R operations is as follows (amounts in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2014		2013			2014			2013
Revenues	$	2,603	$	3,072		$	7,828		$	9,627
Operating costs	1,686		2,082			5,097			6,217
F&R margin	$	917	$	990		$	2,731		$	3,410
Income (loss) before income taxes	$	52	$	(51	)	$	(162	)	$	238