Business Segment, Geographic and Major Customer Information

12 Months Ended

Dec. 31, 2018

Business Segment, Geographic and Major Customer Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-makers in deciding how to allocate resources and assess performance. The operations of the Company are categorized into one reportable segments: Energy Chemistry Technologies.


•	Energy Chemistry Technologies designs, develops, manufactures, packages, and markets specialty chemistries used in oil and natural gas well drilling, cementing, completion, and stimulation. In addition, the Company’s chemistries are used in specialized enhanced and improved oil recovery markets. Activities in this segment also include construction and

management of automated material handling facilities and management of loading facilities and blending operations for oilfield services companies.

The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes are not allocated to reportable segments.

Summarized financial information of the reportable segments is as follows (in thousands):



As of and for the year ended December 31,	Energy Chemistry Technologies			Corporate and Other			Total

2018
Net revenue from external customers	$	177,773		$	—		$	177,773
Income (loss) from operations	(36,817		)	(32,994		)	(69,811		)
Depreciation and amortization	7,107			2,109			9,216
Capital expenditures	2,733			826			3,559

2017
Net revenue from external customers	$	243,106		$	—		$	243,106
Income (loss) from operations	33,611			(43,931		)	(10,320		)
Depreciation and amortization	7,323			2,445			9,768
Capital expenditures	3,279			918			4,197

2016
Net revenue from external customers	$	188,233		$	—		$	188,233
Income (loss) from operations	29,014			(45,982		)	(16,968		)
Depreciation and amortization	5,935			2,237			8,172
Capital expenditures	10,674			2,398			13,072

Assets of the Company by reportable segments are as follows (in thousands):



	December 31, 2018		December 31, 2017
Energy Chemistry Technologies	$	139,205	$	172,799
Corporate and Other	28,208		35,871
Total segments	167,413		208,670
Held for sale	118,470		121,218
Total assets	$	285,883	$	329,888

Geographic Information

Revenue by country is based on the location where services are provided and products are used. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):



	Year ended December 31,
	2018		2017		2016
U.S.	$	146,421	$	219,517	$	164,596
Other countries	31,352		23,589		23,637
Total	$	177,773	$	243,106	$	188,233

Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements.

Major Customers

Revenue from major customers, as a percentage of consolidated revenue, is as follows:



	Year ended December 31,
	2018	2017	2016
Customer A	12.2%	*	*
Customer B	10.1%	*	16.4%
Customer C	*	16.7%	21.9%