Segment Information

9 Months Ended

Sep. 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 September 30, 2019
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	111,185	$	145,105	$	98,787	$	70,640	$	-	$	425,717
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		38,663		123,617		82,556		49,370		-		294,206
Depreciation, depletion, amortization
and accretion		20,168		29,080		12,063		4,909		1,169		67,389
General and administrative expenses		14,363		10,046		2,905		14,935		20,519		62,768
Reduction in value of assets		-		566		1,997		7,008		-		9,571
Income (loss) from operations		37,991		(18,204)		(734)		(5,582)		(21,688)		(8,217)
Interest income (expense), net		-		-		-		1,051		(25,556)		(24,505)
Other income		-		-		-		-		(3,353)		(3,353)
Income (loss) from continuing operations
before income taxes	$	37,991	$	(18,204)	$	(734)	$	(4,531)	$	(50,597)	$	(36,075)

Three Months Ended September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	99,184	$	294,869	$	105,870	$	73,145	$	-	$	573,068
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		37,328		239,348		84,312		43,401		-		404,389
Depreciation, depletion, amortization
and accretion		27,830		47,299		17,085		6,329		1,349		99,892
General and administrative expenses		13,771		5,455		10,471		14,453		24,745		68,895
Income (loss) from operations		20,255		2,767		(5,998)		8,962		(26,094)		(108)
Interest income (expense), net		-		-		-		986		(25,938)		(24,952)
Other expense		-		-		-		-		(277)		(277)
Income (loss) from continuing operations
before income taxes	$	20,255	$	2,767	$	(5,998)	$	9,948	$	(52,309)	$	(25,337)

Nine Months Ended September 30, 2019
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	312,946	$	513,638	$	305,239	$	197,385	$	-	$	1,329,208
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		118,732		436,400		240,855		124,810		-		920,797
Depreciation, depletion, amortization
and accretion		64,684		100,210		39,375		17,198		3,579		225,046
General and administrative expenses		44,173		29,626		18,687		46,394		69,717		208,597
Reduction in value of assets		-		31,947		1,997		7,008		-		40,952
Income/(loss) from operations		85,357		(84,545)		4,325		1,975		(73,296)		(66,184)
Interest income (expense), net		-		-		-		3,104		(77,379)		(74,275)
Other expense		-		-		-		-		(4,476)		(4,476)
Income/(loss) from continuing operations
before income taxes	$	85,357	$	(84,545)	$	4,325	$	5,079	$	(155,151)	$	(144,935)

Nine Months Ended September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	278,419	$	802,600	$	308,591	$	201,324	$	-	$	1,590,934
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		108,997		630,205		255,377		123,080		-		1,117,659
Depreciation, depletion, amortization
and accretion		86,061		142,377		50,668		20,332		4,146		303,584
General and administrative expenses		40,138		29,783		29,760		41,836		73,094		214,611
Income (loss) from operations		43,223		235		(27,214)		16,076		(77,240)		(44,920)
Interest income (expense), net		-		-		-		2,913		(77,646)		(74,733)
Other expense		-		-		-		-		(4,394)		(4,394)
Income (loss) from continuing operations
before income taxes	$	43,223	$	235	$	(27,214)	$	18,989	$	(159,280)	$	(124,047)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
September 30, 2019	$	663,515	$	607,947	$	420,208	$	361,434	$	70,647	$	2,123,751
December 31, 2018	$	587,264	$	808,037	$	434,430	$	340,161	$	46,070	$	2,215,962

During the nine months ended September 30, 2019, the Company sold its drilling rig 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 $78.0 million in cash proceeds 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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
United States	$	324,559	$	486,912	$	1,045,615	$	1,342,125
Other countries		101,158		86,156		283,593		248,809
Total	$	425,717	$	573,068	$	1,329,208	$	1,590,934
Long-Lived Assets
	September 30, 2019		December 31, 2018
United States	$	712,661	$	903,520
Other countries		178,879		205,606
Total	$	891,540	$	1,109,126