Segment Information

9 Months Ended

Sep. 30, 2020

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 fluid handling services and 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 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, 2020
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	56,001	$	21,559	$	56,355	$	33,013	$	-	$	166,928
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion		23,714		21,943		46,115		24,461		-		116,233
Depreciation, depletion, amortization
and accretion		14,424		5,356		9,584		4,983		825		35,172
General and administrative expenses		12,948		3,319		6,801		9,844		22,054		54,966
Restructuring expense		-		-		-		-		25,746		25,746
Reduction in value of assets		-		-		-		2,929		-		2,929
Income (loss) from operations		4,915		(9,059)		(6,145)		(9,204)		(48,625)		(68,118)
Interest income (expense), net		-		-		-		1,122		(25,916)		(24,794)
Other income		-		-		-		-		(1,399)		(1,399)
Income (loss) from continuing operations
before income taxes	$	4,915	$	(9,059)	$	(6,145)	$	(8,082)	$	(75,940)	$	(94,311)

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	$	75,973	$	98,787	$	70,640	$	-	$	356,585
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion		38,663		61,338		82,556		49,370		-		231,927
Depreciation, depletion, amortization
and accretion		20,168		6,853		12,063		4,909		1,169		45,162
General and administrative expenses		14,363		8,144		2,905		14,935		20,519		60,866
Reduction in value of assets		-		566		1,997		7,008		-		9,571
Income (loss) from operations		37,991		(928)		(734)		(5,582)		(21,688)		9,059
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	$	(928)	$	(734)	$	(4,531)	$	(50,597)	$	(18,799)

Nine Months Ended September 30, 2020
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	227,344	$	103,957	$	212,352	$	128,625	$	-	$	672,278
Cost of revenues (exclusive of depreciation,
depletion, amortization and accretion)		81,163		98,774		177,624		99,161		-		456,722
Depreciation, depletion, amortization
and accretion		48,042		17,183		30,604		14,663		2,821		113,313
General and administrative expenses		38,388		12,635		21,232		34,044		72,244		178,543
Restructuring expense		-		-		-		-		27,033		27,033
Reduction in value of assets		-		-		4,096		15,355		-		19,451
Income (loss) from operations		59,751		(24,635)		(21,204)		(34,598)		(102,098)		(122,784)
Interest income (expense), net		-		-		-		3,399		(78,076)		(74,677)
Other expense		-		-		-		-		(4,810)		(4,810)
Income (loss) from continuing operations
before income taxes	$	59,751	$	(24,635)	$	(21,204)	$	(31,199)	$	(184,984)	$	(202,271)

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	$	273,727	$	305,239	$	197,385	$	-	$	1,089,297
Cost of revenues (exclusive of depreciation,
depletion, amortization and accretion)		118,732		217,115		240,855		124,810		-		701,512
Depreciation, depletion, amortization
and accretion		64,684		27,940		39,375		17,198		3,579		152,776
General and administrative expenses		44,173		24,044		18,687		46,394		69,717		203,015
Reduction in value of assets		-		8,123		1,997		7,008		-		17,128
Income (loss) from operations		85,357		(3,495)		4,325		1,975		(73,296)		14,866
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	$	(3,495)	$	4,325	$	5,079	$	(155,151)	$	(63,885)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
September 30, 2020	$	591,152	$	200,101	$	367,944	$	272,893	$	142,156	$	1,574,246
December 31, 2019	$	659,621		467,697	$	421,848	$	377,627	$	66,437	$	1,993,230

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,
	2020		2019		2020		2019
United States	$	95,100	$	255,427	$	423,376	$	805,704
Other countries		71,828		101,158		248,902		283,593
Total	$	166,928	$	356,585	$	672,278	$	1,089,297
Long-Lived Assets
	September 30, 2020		December 31, 2019
United States	$	411,974	$	489,189
Other countries		162,614		175,760
Total	$	574,588	$	664,949