Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segments

17. Business Segments

At December 31, 2022, we had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business and has a separate management team that reports to our chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. We also disclose our identifiable assets for these segments, which are primarily comprised of long-lived assets.

Our acquisition of Pioneer in 2021 expanded our geographic footprint into Latin America with the addition of eight SCR drilling rigs in Colombia. Property and equipment, net and revenue for our domestic and international operations for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Property and equipment, net:
United States (1)	$	2,213,242	$	2,292,448	$	2,761,041
Colombia (2)		47,334		39,307		—
Property and equipment, net	$	2,260,576	$	2,331,755	$	2,761,041
Revenue:
United States (1)	$	2,577,471	$	1,341,330	$	1,124,249
Colombia (2)		70,121		15,751		—
Total revenues	$	2,647,592	$	1,357,081	$	1,124,249

(1)Our Canadian operations in 2021 and 2020 were included in the United States amounts as they were not material individually. In April 2022, we substantially completed our exit from our Canadian operations.

(2)Our Colombian operations are included as part of our contract drilling segment.

Contract Drilling — We market our contract drilling services to major and independent oil and natural gas operators. As of December 31, 2022, we had 184 marketed land-based drilling rigs in the continental United States and eight in Colombia.

Pressure Pumping — We provide pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian region. Substantially all of the revenue in the pressure pumping segment is from well stimulation services (such as hydraulic fracturing) for the completion of new wells and remedial work on existing wells. Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well. We also provide cementing services through our pressure pumping segment. Cementing is the process of inserting material between the wall of the well bore and the casing to support and stabilize the casing.

Directional Drilling — We provide a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States. Substantially all of the revenue in the directional drilling segment is from directional drilling, downhole performance motors and measurement-while-drilling services, which are sold as a bundle.

Major Customer — During 2022, one customer accounted for approximately $476 million or 18% of our consolidated operating revenues. These revenues in 2022 were earned in our contract drilling, pressure pumping, and directional drilling businesses. During 2021, one customer accounted for approximately $216 million or 16% of our consolidated operating revenues. These revenues were earned in both our contract drilling and pressure pumping businesses. No single customer accounted for more than 10% of our consolidated revenues in 2020.

The following tables summarize selected financial information relating to our business segments (in thousands):

	Year Ended December 31,
	2022			2021			2020
Revenues:
Contract drilling	$	1,329,092		$	667,918		$	670,357
Pressure pumping		1,022,413			523,756			336,111
Directional drilling		216,498			111,481			73,356
Other operations (1)		117,607			75,505			57,962
Elimination of intercompany revenues - Contract drilling (2)		(12,420	)		(3,888	)		(1,231	)
Elimination of intercompany revenues - Other operations (2)		(25,598	)		(17,691	)		(12,306	)
Total revenues	$	2,647,592		$	1,357,081		$	1,124,249
Income (loss) before income taxes:
Contract drilling	$	140,239		$	(423,029	)	$	(543,438	)
Pressure pumping		134,103			(118,863	)		(166,666	)
Directional drilling		15,534			(35,301	)		(40,612	)
Other operations		7,810			(9,905	)		(41,685	)
Corporate		(86,655	)		(92,152	)		(94,251	)
Credit loss expense		—			1,500			(5,606	)
Interest income		360			222			1,254
Interest expense		(40,256	)		(41,978	)		(40,770	)
Other		(3,273	)		(275	)		756
Income (loss) before income taxes	$	167,862		$	(719,781	)	$	(931,018	)
Depreciation, depletion, amortization and impairment:
Contract drilling	$	337,513		$	618,879		$	433,771
Pressure pumping		98,162			159,305			152,630
Directional drilling		15,428			40,270			36,504
Other operations		27,671			24,865			41,511
Corporate		5,171			5,859			6,494
Total depreciation, depletion, amortization and impairment	$	483,945		$	849,178		$	670,910
Capital expenditures:
Contract drilling	$	255,634		$	109,894		$	105,037
Pressure pumping		137,935			34,676			21,678
Directional drilling		16,598			8,591			4,681
Other operations		25,504			11,638			12,378
Corporate		1,126			1,521			1,707
Total capital expenditures	$	436,797		$	166,320		$	145,481
Identifiable assets:
Contract drilling	$	2,197,137		$	2,169,501		$	2,315,318
Pressure pumping		541,975			458,202			486,702
Directional drilling		121,111			87,285			107,807
Other operations		93,947			85,932			88,676
Corporate (3)		189,653			156,928			300,566
Total assets	$	3,143,823		$	2,957,848		$	3,299,069

(1)Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and our oil and natural gas working interests.

(2)Intercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation.

(3)Corporate assets primarily include cash on hand and certain property and equipment.