Business Segment, Geographic and Major Customer Information

12 Months Ended

Dec. 31, 2019

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 segment: 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 years ended December 31,	Energy Chemistry Technologies			Corporate and Other			Total

2019
Net revenue from external customers	$	119,353		$	—		$	119,353
Loss from operations	(46,485		)	(30,140		)	(76,625		)
Depreciation and amortization	7,439			1,026			8,465
Capital expenditures	2,411			—			2,411

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

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



	December 31, 2019		December 31, 2018
Energy Chemistry Technologies	$	117,357	$	139,205
Corporate and Other	114,490		28,208
Total segments	231,847		167,413
Held for sale	—		118,470
Total assets	$	231,847	$	285,883

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):



	Years ended December 31,
	2019		2018		2017
U.S.	$	104,786	$	146,421	$	219,517
Other countries	14,567		31,352		23,589
Total	$	119,353	$	177,773	$	243,106

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:



	Years ended December 31,
	2019	2018	2017
Customer A	20.4%	*	*
Customer B	10.3%	12.23%	*
Customer C	*	10.1%	*
Customer D	*	*	16.7%