Segment Information

6 Months Ended

Jun. 30, 2019

Segment Information [Abstract]

Segment Information

(9) Segment Information

Business Segments

The Drilling Products and Services segment rents and sells premium drill pipe, bottom hole assemblies, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. It also provides on-site accommodations and machining services. The Onshore Completion and Workover Services segment provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a variety of well completion, workover and maintenance services. The Production Services segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services. The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well containment systems, stimulation and sand control services, well plug and abandonment services and the production and sale of oil and gas.

The Company evaluates the performance of its reportable segments based on income or loss from operations excluding corporate expenses. The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets. The Company uses this segment measure to evaluate its reportable segments because it is the measure that is most consistent with how the Company organizes and manages its business operations. Corporate and other costs primarily include expenses related to support functions, salaries and benefits for corporate employees and stock-based compensation expense.

Summarized financial information for the Company’s segments is as follows (in thousands):

Three Months Ended June 30, 2019
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	100,682	$	163,495	$	103,002	$	69,136	$	-	$	436,315
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		37,864		140,984		78,418		39,162		-		296,428
Depreciation, depletion, amortization
and accretion		21,490		33,387		13,172		5,979		1,190		75,218
General and administrative expenses		15,241		9,005		7,970		15,522		24,246		71,984
Reduction in value of assets		-		31,381		-		-		-		31,381
Income (loss) from operations		26,087		(51,262)		3,442		8,473		(25,436)		(38,696)
Interest income (expense), net		-		-		-		1,035		(25,685)		(24,650)
Other income		-		-		-		-		490		490
Income (loss) from continuing operations
before income taxes	$	26,087	$	(51,262)	$	3,442	$	9,508	$	(50,631)	$	(62,856)

Three Months Ended June 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	94,033	$	276,242	$	102,004	$	63,269	$	-	$	535,548
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		36,599		210,206		85,129		37,876		-		369,810
Depreciation, depletion, amortization
and accretion		28,590		47,423		14,303		6,273		1,384		97,973
General and administrative expenses		13,843		11,102		9,696		13,323		21,932		69,896
Income (loss) from operations		15,001		7,511		(7,124)		5,797		(23,316)		(2,131)
Interest income (expense), net		-		-		-		971		(25,865)		(24,894)
Other expense		-		-		-		-		(2,382)		(2,382)
Income (loss) from continuing operations
before income taxes	$	15,001	$	7,511	$	(7,124)	$	6,768	$	(51,563)	$	(29,407)

Six Months Ended June 30, 2019
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	201,761	$	368,533	$	206,452	$	126,745	$	-	$	903,491
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		80,069		312,783		158,299		75,440		-		626,591
Depreciation, depletion, amortization
and accretion		44,516		71,130		27,312		12,289		2,410		157,657
General and administrative expenses		29,810		19,580		15,782		31,459		49,198		145,829
Reduction in value of assets		-		31,381		-		-		-		31,381
Income/(loss) from operations		47,366		(66,341)		5,059		7,557		(51,608)		(57,967)
Interest income (expense), net		-		-		-		2,053		(51,824)		(49,771)
Other expense		-		-		-		-		(1,122)		(1,122)
Income/(loss) from continuing operations
before income taxes	$	47,366	$	(66,341)	$	5,059	$	9,610	$	(104,554)	$	(108,860)

Six Months Ended June 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	179,235	$	507,731	$	202,721	$	128,179	$	-	$	1,017,866
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		71,669		390,857		171,065		79,679		-		713,270
Depreciation, depletion, amortization
and accretion		58,231		95,078		33,583		14,003		2,797		203,692
General and administrative expenses		26,367		24,328		19,289		27,383		48,349		145,716
Income (loss) from operations		22,968		(2,532)		(21,216)		7,114		(51,146)		(44,812)
Interest income (expense), net		-		-		-		1,927		(51,708)		(49,781)
Other expense		-		-		-		-		(4,117)		(4,117)
Income (loss) from continuing operations
before income taxes	$	22,968	$	(2,532)	$	(21,216)	$	9,041	$	(106,971)	$	(98,710)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
June 30, 2019	$	633,898	$	684,551	$	398,441	$	360,056	$	69,351	$	2,146,297
December 31, 2018	$	587,264	$	808,037	$	434,430	$	340,161	$	46,070	$	2,215,962

During the six months ended June 30, 2019, the Company sold its drilling rigs service line, which was previously included in the Onshore Completion and Workover Services segment. This service line included twelve active U.S. land based drilling rigs and associated equipment with a carrying value of $66.2 million. The Company received $74.0 million in cash proceeds during the quarter at closing and recognized a $0.2 million loss on sale of assets. In addition, the Company recorded a $7.5 million impairment of the intangibles associated with the disposed assets.

Geographic Segments

The Company attributes revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or rented. Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period. The Company’s revenue attributed to the U.S. and to other countries and the value of its long-lived assets by those locations are as follows (in thousands):

Revenues
	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
United States	$	345,942	$	447,666	$	721,057	$	855,213
Other countries		90,373		87,882		182,434		162,653
Total	$	436,315	$	535,548	$	903,491	$	1,017,866
Long-Lived Assets
	June 30, 2019		December 31, 2018
United States	$	756,345	$	903,520
Other countries		184,588		205,606
Total	$	940,933	$	1,109,126