Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations [Abstract]

Discontinued Operations

(16) Discontinued Operations

On December 10, 2019, the Company’s indirect, wholly owned subsidiary, Pumpco Energy Services, Inc. (Pumpco), completed its existing hydraulic fracturing field operations and determined to discontinue, wind down and exit its hydraulic fracturing operations. The Company intends to maintain an adequate number of employees to efficiently wind down Pumpco’s business. The financial results of Pumpco’s operations have historically been included in the Company’s Onshore Completions and Workover Services segment. The Company intends to sell Pumpco’s fixed assets over time during the next twelve months.

The following table summarizes the components of loss from discontinued operations, net of tax for the three months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended March 31,
	2020			2019
Revenues	$	254	$	101,902
Cost of services		5,459		90,110
Loss from discontinued operations before tax		(59,651)		(17,037)
Loss from discontinued operations, net of income tax		47,129		(15,061)

For the three months ended March 31, 2020, loss from discontinued operations included $46.4 million in the reduction in value of assets relating to the impairment of property, plant and equipment.

The following summarizes the assets and liabilities related to the Pumpco business reported as discontinued operations (in thousands):

	March 31, 2020		December 31, 2019
Current assets:
Accounts receivable, net	$	-	$	25,106
Other current assets		4,894		6,215
Total current assets	$	4,894	$	31,321
Property, plant and equipment, net		115,363		179,144
Operating lease ROU assets		823		5,732
Total assets	$	121,080	$	216,197
Current liabilities:
Accounts payable	$	495	$	14,370
Accrued expenses		4,335		24,751
Total current liabilities		4,830		39,121
Operating lease liabilities		2,994		5,415
Other long-term liabilities		402		402
Total liabilities	$	8,226	$	44,938

Significant operating non-cash items of Pumpco and cash flows from investing activities were as follows (in thousands):

	Three Months Ended March 31,
	2020			2019
Cash flows from discontinued operating activities:
Depreciation and amortization	$	-	$	26,096
Reduction in value of assets		46,358		-
Cash flows from discontinued investing activities:
Payments for capital expenditures	$	-	$	(14,931)
Proceeds from sales of assets		8,449		-