Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

As of June 30, 2021, we have four operating segments, comprised of two drilling services business segments (domestic and international drilling) and two production services business segments (well servicing and wireline services), which reflects the basis used by management in making decisions regarding our business for resource allocation and performance assessment, as required by ASC Topic 280, Segment Reporting. In April 2020, we closed our coiled tubing services business and placed all of our coiled tubing services assets as held for sale at June 30, 2020. Historical financial information for our coiled tubing services business, which had previously been presented as a separate operating segment, continues to be presented in the following tables as a component of continuing operations.

Our domestic and international drilling services segments provide contract land drilling services to a diverse group of exploration and production companies through our three drilling divisions in the US and internationally in Colombia. We provide a comprehensive service offering which includes the drilling rig, crews, supplies, and most of the ancillary equipment needed to operate our drilling rigs.

Our well servicing and wireline services segments provide a range of production services to producers primarily in Texas, North Dakota and the Rocky Mountain region. Our former coiled tubing services segment also provided various production services primarily in Texas, Wyoming, and surrounding areas.

The following tables set forth certain financial information for each of our segments and corporate (amounts in thousands):

	Successor				Predecessor
	Three months ended June 30, 2021		One Month Ended June 30, 2020		Two Months Ended May 31, 2020
Revenues:
Domestic drilling	$	23,414	$	5,866	$	17,450
International drilling	9,685		828		1,473
Drilling services	33,099		6,694		18,923
Well servicing	18,033		3,756		6,331
Wireline services	8,394		713		2,410
Coiled tubing services	—		—		384
Production services	26,427		4,469		9,125
Consolidated revenues	$	59,526	$	11,163	$	28,048
Operating costs:
Domestic drilling	$	17,405	$	3,646	$	9,236
International drilling	7,760		1,063		1,538
Drilling services	25,165		4,709		10,774
Well servicing	13,445		2,810		5,926
Wireline services	7,754		1,085		3,552
Coiled tubing services	33		139		1,773
Production services	21,232		4,034		11,251
Consolidated operating costs	$	46,397	$	8,743	$	22,025
Gross margin:
Domestic drilling	$	6,009	$	2,220	$	8,214
International drilling	1,925		(235)		(65)
Drilling services	7,934		1,985		8,149
Well servicing	4,588		946		405
Wireline services	640		(372)		(1,142)
Coiled tubing services	(33)		(139)		(1,389)
Production services	5,195		435		(2,126)
Consolidated gross margin	$	13,129	$	2,420	$	6,023

	Successor				Predecessor
	Three months ended June 30, 2021		One Month Ended June 30, 2020		Two Months Ended May 31, 2020
Identifiable Assets:
Domestic drilling (1)	$	138,473	$	150,897	$	158,283
International drilling (1) (2)	40,680		47,541		49,611
Drilling services	179,153		198,438		207,894
Well servicing	41,284		47,832		49,388
Wireline services	17,998		22,623		23,948
Coiled tubing services	1,339		5,941		6,336
Production services	60,621		76,396		79,672
Corporate	55,037		68,966		65,057
Consolidated identifiable assets (3)	$	294,811	$	343,800	$	352,623
Depreciation and amortization:
Domestic drilling	$	5,975	$	2,012	$	7,153
International drilling	2,514		1,076		843
Drilling services	8,489		3,088		7,996
Well servicing	2,555		1,261		3,039
Wireline services	807		763		2,011
Coiled tubing services	—		—		471
Production services	3,362		2,024		5,521
Corporate	93		124		146
Consolidated depreciation	$	11,944	$	5,236	$	13,663
Capital Expenditures:
Domestic drilling	$	2,231	$	484	$	621
International drilling	1,405		138		106
Drilling services	3,636		622		727
Well servicing	564		30		201
Wireline services	307		60		112
Coiled tubing services	—		—		3
Production services	871		90		316
Corporate	51		—		20
Consolidated capital expenditures	$	4,558	$	712	$	1,063

	Successor				Predecessor
	Six Months Ended June 30, 2021		One Month Ended June 30, 2020		Five Months Ended May 31, 2020
Revenues:
Domestic drilling	$	45,897	$	5,866	$	53,341
International drilling	20,748		828		15,928
Drilling services	66,645		6,694		69,269
Well servicing	32,890		3,756		31,947
Wireline services	18,729		713		35,543
Coiled tubing services	—		—		5,611
Production services	51,619		4,469		73,101
Consolidated revenues	$	118,264	$	11,163	$	142,370

	Successor				Predecessor
	Six Months Ended June 30, 2021		One Month Ended June 30, 2020		Five Months Ended May 31, 2020
Operating costs:
Domestic drilling	$	32,864	$	3,646	$	33,101
International drilling	15,835		1,063		13,676
Drilling services	48,699		4,709		46,777
Well servicing	25,333		2,810		26,877
Wireline services	17,632		1,085		31,836
Coiled tubing services	59		139		8,557
Production services	43,024		4,034		67,270
Consolidated operating costs	$	91,723	$	8,743	$	114,047
Gross margin:
Domestic drilling	$	13,033	$	2,220	$	20,240
International drilling	4,913		(235)		2,252
Drilling services	17,946		1,985		22,492
Well servicing	7,557		946		5,070
Wireline services	1,097		(372)		3,707
Coiled tubing services	(59)		(139)		(2,946)
Production services	8,595		435		5,831
Consolidated gross margin	$	26,541	$	2,420	$	28,323
Identifiable Assets:
Domestic drilling (1)	$	138,473	$	150,897	$	158,283
International drilling (1) (2)	40,680		47,541		49,611
Drilling services	179,153		198,438		207,894
Well servicing	41,284		47,832		49,388
Wireline services	17,998		22,623		23,948
Coiled tubing services	1,339		5,941		6,336
Production services	60,621		76,396		79,672
Corporate	55,037		68,966		65,057
Consolidated identifiable assets (3)	$	294,811	$	343,800	$	352,623
Depreciation and amortization:
Domestic drilling	$	12,265	$	2,012	$	18,058
International drilling	5,662		1,076		2,144
Drilling services	17,927		3,088		20,202
Well servicing	5,491		1,261		7,820
Wireline services	1,697		763		5,088
Coiled tubing services	—		—		2,164
Production services	7,188		2,024		15,072
Corporate	194		124		373
Consolidated depreciation	$	25,309	$	5,236	$	35,647
Capital Expenditures:
Domestic drilling	$	4,616	$	484	$	3,862
International drilling	1,970		138		1,273
Drilling services	6,586		622		5,135
Well servicing	899		30		1,918
Wireline services	799		60		1,684
Coiled tubing services	—		—		166
Production services	1,698		90		3,768
Corporate	88		—		21
Consolidated capital expenditures	$	8,372	$	712	$	8,924

(1)    Identifiable assets for our drilling segments include the impact of a $28.7 million and $28.3 million intercompany balance, as of June 30, 2021 and 2020, respectively, between our domestic drilling segment (intercompany receivable) and our international drilling segment (intercompany payable).

(2)    Identifiable assets for our international drilling segment include five drilling rigs that are owned by our Colombia subsidiary and three drilling rigs that are owned by one of our domestic subsidiaries and leased to our Colombia subsidiary.

(3)     Upon our emergence from Chapter 11, due to the application of fresh start accounting, the carrying value of our identifiable assets was reduced to the estimated fair value and a new historical cost basis was established for all our property and equipment.

The following is a reconciliation of consolidated gross margin of our segments reported above to loss from operations as reported on the condensed consolidated statements of operations (amounts in thousands):

	Successor				Predecessor
	Three months ended June 30, 2021		One Month Ended June 30, 2020		Two Months Ended May 31, 2020
Consolidated gross margin	$	13,129	$	2,420	$	6,023
Depreciation and amortization	(11,944)		(5,236)		(13,663)
General and administrative	(10,997)		(4,213)		(7,392)
Prepetition restructuring charges	—		—		252
Impairment	—		(388)		—
Bad debt (expense) recovery, net	198		283		(482)
Gain on dispositions of property and equipment, net	1,072		460		272
Loss from operations	$	(8,542)	$	(6,674)	$	(14,990)

	Successor				Predecessor
	Six Months Ended June 30, 2021		One Month Ended June 30, 2020		Five Months Ended May 31, 2020
Consolidated gross margin	$	26,541	$	2,420	$	28,323
Depreciation and amortization	(25,309)		(5,236)		(35,647)
General and administrative	(20,710)		(4,213)		(22,047)
Prepetition restructuring charges	—		—		(16,822)
Impairment	—		(388)		(17,853)
Bad debt (expense) recovery, net	395		283		(1,209)
Gain on dispositions of property and equipment, net	3,370		460		989
Loss from operations	$	(15,713)	$	(6,674)	$	(64,266)