Segment Information

3 Months Ended

Mar. 31, 2021

Segment Information [Abstract]

Segment Information

(13) Segment Information

In connection with our emergence from bankruptcy, the reportable segments were changed to Global and North America. Reportable segments in the Predecessor’s Annual Report on Form 10-K were Drilling Products and Services, Onshore Completion and Workover Services, Production Services and Technical Solutions.

Business Segments

The Global segment operates in both the domestic and international markets. Its products and service offerings are provided through its five global brands: Workstrings International, which provides value-added engineering services and high-specification premium downhole tubular and accessory rentals; Stabil Drill, which provides design, engineering, manufacturing and rental of premium bottom hole assemblies; ISS, which provides hydraulic workover and snubbing services; Wild Well Control, which provides engineering, risk management, well control and training solutions; and Superior Completion Services, which provides design, engineering and manufacturing of premium sand control tools. Additionally, through its International Services operations, the Global segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, production testing and optimization and remedial

pumping services. The Global segment also includes the Company’s oil and gas production related to its 51% ownership interest in its sole federal offshore oil and gas property and related assets.

The North America segment provides domestic intervention services such as coiled tubing, cased hole and mechanical wireline, production testing and optimization, and remedial pumping services. It also rents accommodation units and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. Additionally, fluid handling, workover and maintenance services are performed by the North America segment.

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 expenses.

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

Successor
For the period February 3, 2021 through March 31, 2021
			North		Corporate and		Consolidated
	Global		America		Other		Total
Revenues	$	90,823	$	38,272	$	-	$	129,095
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		57,607		32,091		-		89,698
Depreciation, depletion, amortization
and accretion		36,079		15,456		1,272		52,807
General and administrative expenses		10,611		3,636		6,690		20,937
Restructuring and other expenses		-		-		8,383		8,383
Loss from operations		(13,474)		(12,911)		(16,345)		(42,730)
Interest income (expense), net		710		-		(495)		215
Reorganization items, net		-		-		-		-
Other income		-		-		(2,845)		(2,845)
Loss from continuing operations
before income taxes	$	(12,764)	$	(12,911)	$	(19,685)	$	(45,360)

Predecessor
For the period January 1, 2021 through February 2, 2021
					Corporate and		Consolidated
	Global		North America		Other		Total
Revenues	$	40,878	$	15,769	$	-	$	56,647
Cost of revenues (exclusive of depreciation,
depletion, amortization and accretion)		24,898		15,064		-		39,962
Depreciation, depletion, amortization
and accretion		7,135		3,049		314		10,498
General and administrative expenses		5,521		1,786		4,857		12,164
Restructuring and other expenses		-		-		1,270		1,270
Income (loss) from operations		3,324		(4,130)		(6,441)		(7,247)
Interest income (expense), net		355		-		(151)		204
Reorganization items, net		39,416		(76,238)		372,382		335,560
Other expense		-		-		(2,104)		(2,104)
Income (loss) from continuing operations
before income taxes	$	43,095	$	(80,368)	$	363,686	$	326,413

Three Months Ended March 31, 2020
				Onshore
				Completion
		Drilling Products		and Workover		Production		Technical		Corporate and		Consolidated
		and Services		Services		Services		Solutions		Other		Total
Revenues	$	103,993	$	61,218	$	101,504	$	54,782	$	-	$	321,497
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		34,963		52,589		82,612		41,522		-		211,686
Depreciation, depletion, amortization
and accretion		17,790		6,313		10,838		5,345		1,069		41,355
General and administrative expenses		14,513		5,314		7,855		13,991		23,484		65,157
Reduction in value of assets		-		-		4,096		12,426		-		16,522
Income (loss) from operations		36,727		(2,998)		(3,897)		(18,502)		(24,553)		(13,223)
Interest income (expense), net		-		-				1,173		(26,307)		(25,134)
Other income		-		-						(4,232)		(4,232)
Income (loss) from continuing operations
before income taxes	$	36,727	$	(2,998)	$	(3,897)	$	(17,329)	$	(55,092)	$	(42,589)

Identifiable Assets
			North		Corporate and		Consolidated
	Global		America		Other		Total
March 31, 2021 - Successor	$	970,767	$	308,373	$	144,700	$	1,423,840

		Drilling Products		Completion and Workover		Production		Technical		Corporate and		Consolidated
		and Services		Services		Services		Solutions		Other		Total
December 31, 2020 - Predecessor	$	557,469	$	183,065	$	368,185	$	260,339	$	132,021	$	1,501,079

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
	Successor		Predecessor
	For the period February 3, 2021 through March 31, 2021		For the Period January 1, 2021 through February 2, 2021		Three Months Ended March 31, 2020
United States	$	76,304	$	34,582	$	214,734
Other countries		52,791		22,065		106,763
Total	$	129,095	$	56,647	$	321,497
Long-Lived Assets
	Successor		Predecessor
	March 31, 2021		December 31, 2020
United States	$	438,538	$	387,097
Other countries		174,059		154,993
Total	$	612,597	$	542,090