Discontinued Operations

9 Months Ended

Sep. 30, 2020

Discontinued Operations [Abstract]

Discontinued Operations

(17) 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 and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020			2019	2020			2019
Revenues	$	43	$	69,132	$	511	$	239,911
Cost of services		56		62,279		6,588		219,285
Loss from discontinued operations before tax		(60,864)		(17,276)		(123,659)		(81,050)
Loss from discontinued operations, net of income tax		(58,003)		(17,934)		(111,375)		(85,604)

For the nine months ended September 30, 2020, loss from discontinued operations included $109.6 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):

	September 30, 2020		December 31, 2019
Current assets:
Accounts receivable, net	$	-	$	25,106
Other current assets		2,280		6,215
Total current assets	$	2,280	$	31,321
Property, plant and equipment, net		49,259		179,144
Operating lease ROU assets		209		5,732
Total assets	$	51,748	$	216,197
Current liabilities:
Accounts payable	$	136	$	14,370
Accrued expenses		2,869		24,751
Total current liabilities		3,005		39,121
Operating lease liabilities		2,755		5,415
Other long-term liabilities		-		402
Total liabilities	$	5,760	$	44,938

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

	Nine Months Ended September 30,
	2020			2019
Cash flows from discontinued operating activities:
Depreciation and amortization	$	-	$	72,271
Reduction in value of assets		109,591		23,824
Cash flows from discontinued investing activities:
Payments for capital expenditures	$	-	$	(36,743)
Proceeds from sales of assets		14,369		1,669