Segment Information

9 Months Ended

Sep. 30, 2021

Segment Information [Abstract]

Segment Information

(13) Segment Information

In connection with our previously discussed Transformation Project and disposition activities, during the second quarter of 2021, our reportable segments were changed to Rentals, Well Services and Corporate and other. Reportable segments for periods prior to January 1, 2021 which were presented in our Annual Report were Drilling Products and Services, Onshore Completion and Workover Services, Production Services and Technical Solutions.

Business Segments

The products and service offerings of Rentals are comprised of value-added engineering services and premium downhole tubular rentals, design engineering, manufacturing and rental of bottom hole assemblies and rentals of accommodation units.

The products and service offerings of Well Services are comprised of risk management, well control and training solutions, hydraulic workover and snubbing services, engineering and manufacturing of premium sand control tools, coiled tubing, cased hole and mechanical wireline, production testing and optimization, pressure control and remedial pumping services.

We evaluate the performance of our 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. We use this segment measure to evaluate our reportable segments as it is the measure that is most consistent with how we organize and manage our business operations. Corporate and other costs primarily include expenses related to support functions, including salaries and benefits for corporate employees.

Summarized financial information for our segments is as follows (in thousands):

Successor

Three Months Ended September 30, 2021

				Well			Corporate and			Consolidated
	Rental			Services			Other			Total
Revenues	$	76,217		$	102,366		$	-		$	178,583
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		33,438			91,535			-			124,973
Depreciation, depletion, amortization and accretion		41,641			15,615			1,952			59,208
General and administrative expenses		7,184			13,445			13,042			33,671
Restructuring and other expenses		-			-			4,712			4,712
Income (loss) from operations		(6,046	)		(18,229	)		(19,706	)		(43,981	)
Interest income (expense), net		(7	)		-			654			647
Other income (expense)		1,754			3,204			(11,182	)		(6,224	)
Income (loss) from continuing operations before income taxes	$	(4,299	)	$	(15,025	)	$	(30,234	)	$	(49,558	)

Predecessor

Three Months Ended September 30, 2020

	Drilling								Corporate
	Products		Production			Technical			and			Consolidated
	and Services		Services			Solutions			Other			Total
Revenues	$	56,001	$	46,962		$	33,013		$	-		$	135,976
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		23,714		38,899			24,461			-			87,074
Depreciation, depletion, amortization and accretion		14,424		7,931			4,983			825			28,163
General and administrative expenses		12,948		6,594			9,844			22,054			51,440
Restructuring expense		-		-			-			25,746			25,746
Reduction in value of assets		-		-			2,929			-			2,929
Income (loss) from operations		4,915		(6,462	)		(9,204	)		(48,625	)		(59,376	)
Interest income (expense), net		-		-			1,122			(25,922	)		(24,800	)
Other income		-		-			-			(1,399	)		(1,399	)
Income (loss) from continuing operations before    income taxes	$	4,915	$	(6,462	)	$	(8,082	)	$	(75,946	)	$	(85,575	)

Predecessor

For the Period January 1, 2021 through February 2, 2021

				Well			Corporate and			Consolidated
	Rental			Services			Other			Total
Revenues	$	18,339		$	27,589		$	-		$	45,928
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		7,839			21,934			-			29,773
Depreciation, depletion, amortization and accretion		4,271			3,666			421			8,358
General and administrative expenses		2,027			4,111			4,914			11,052
Restructuring and other expenses		-			-			1,270			1,270
Income (loss) from operations		4,202			(2,122	)		(6,605	)		(4,525	)
Interest income (expense), net		10			1			191			202
Reorganization items, net		(2,037	)		31,816			305,781			335,560
Other income (expense)		(399	)		(165	)		(1,541	)		(2,105	)
Income (loss) from continuing operations before income taxes	$	1,776		$	29,530		$	297,826		$	329,132

Successor

For the Period February 3, 2021 through September 30, 2021

				Well			Corporate and			Consolidated
	Rental			Services			Other			Total
Revenues	$	185,902		$	264,416		$	-		$	450,318
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		76,793			219,627			-			296,420
Depreciation, depletion, amortization and accretion		111,781			41,991			4,484			158,256
General and administrative expenses		16,986			35,029			32,402			84,417
Restructuring and other expenses		-			-			20,533			20,533
Loss from operations		(19,658	)		(32,231	)		(57,419	)		(109,308	)
Interest income (expense), net		(7	)		3			1,398			1,394
Other income (expense)		1,053			5,439			(12,991	)		(6,499	)
Loss from continuing operations before income taxes	$	(18,612	)	$	(26,789	)	$	(69,012	)	$	(114,413	)

Predecessor

Nine Months Ended September 30, 2020

	Drilling								Corporate
	Products		Production			Technical			and			Consolidated
	and Services		Services			Solutions			Other			Total
Revenues	$	227,344	$	165,828		$	128,625		$	-		$	521,797
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		81,163		137,689			99,161			-			318,013
Depreciation, depletion, amortization and accretion		48,042		23,526			14,663			2,821			89,052
General and administrative expenses		38,388		20,281			34,044			72,244			164,957
Restructuring expense		-		-			-			27,033			27,033
Reduction in value of assets		-		4,096			15,355			-			19,451
Income (loss) from operations		59,751		(19,764	)		(34,598	)		(102,098	)		(96,709	)
Interest income (expense), net		-		-			3,399			(78,097	)		(74,698	)
Other income		-		-			-			(4,810	)		(4,810	)
Income (loss) from continuing operations before income taxes	$	59,751	$	(19,764	)	$	(31,199	)	$	(185,005	)	$	(176,217	)

Identifiable Assets

			Well		Corporate and		Consolidated
	Rentals		Services		Other		Total
September 30, 2021 - Successor	$	386,220	$	697,291	$	172,272	$	1,255,783

	Drilling		Completion
	Products		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

We attribute 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. Our revenue attributed to the U.S. and to other countries and the value of our long-lived assets by those locations are as follows (in thousands):

Revenues

	Successor		Predecessor
	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020
United States	$	84,017	$	64,148
Other countries		94,566		71,828
Total	$	178,583	$	135,976

Revenues

	Successor		Predecessor
	For the Period February 3, 2021 through September 30, 2021		For the Period January 1, 2021 through February 2, 2021		For the Nine Months Ended September 30, 2020
United States	$	218,110	$	23,863	$	272,895
Other countries		232,208		22,065		248,902
Total	$	450,318	$	45,928	$	521,797

Long-Lived Assets

	Successor		Predecessor
	September 30, 2021		December 31, 2020
United States	$	261,774	$	253,114
Other countries		141,699		154,993
Total	$	403,473	$	408,107