Concentrations of Credit Risk |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks And Uncertainties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk |
17. Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of demand deposits, temporary cash investments and trade receivables. The Company believes it has placed its demand deposits and temporary cash investments with high credit-quality financial institutions. At December 31, 2019 and 2018, the Company’s demand deposits and temporary cash investments consisted of the following (in thousands):
Concentrations of credit risk with respect to trade receivables are primarily focused on companies involved in the exploration and development of oil and natural gas properties. The concentration is somewhat mitigated by the diversification of customers for which the Company provides services. As is general industry practice, the Company typically does not require customers to provide collateral. A $5.7 million provision for bad debts was recognized in 2019 with respect to accounts receivable balances that were estimated to be uncollectible. No expense for bad debts was recognized in 2018 and 2017.
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