XML 20 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Revenues
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenues are generated upon the performance of contracted services under formal and informal contracts with customers. Revenues are recognized when the contracted services for our customers are completed in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Sales and usage-based taxes are excluded from revenues. Payment is due when the contracted services are completed in accordance with the payment terms established with each customer prior to providing any services. As such, there is no significant financing component for any of our revenues.

Some of our contracts with customers involve multiple performance obligations as we are providing more than one service under the same contract, such as water transport services and disposal services. However, our core service offerings are capable of being distinct and also are distinct within the context of contracts with our customers. As such, these services represent separate performance obligations when included in a single contract. We have standalone pricing for all of our services which is negotiated with each of our customers in advance of providing the service. The contract consideration is allocated to the individual performance obligations based upon the standalone selling price of each service, and no discount is offered for a bundled services offering.

Contract Assets

During 2019, we recorded a contract asset as a result of a contract modification for disposal services. The contract asset has been fully collected as of September 30, 2020. The contract asset is included in “Other current assets” on the condensed consolidated balance sheets. The change in contract asset balance for the nine months ended September 30, 2020 and September 30, 2019 was as follows:

20202019
Balance at the beginning of the period (January 1)$231 $— 
Balance at the end of the period (September 30)— 386 
Increase/(decrease)$(231)$386 

Disaggregated Revenues

The following tables present our revenues disaggregated by revenue source for each reportable segment for the three and nine months ended September 30, 2020 and September 30, 2019:

Three months ended September 30, 2020
Rocky MountainNortheastSouthernCorporate/OtherTotal
Water Transport Services$8,165 $5,613 $2,299 $— $16,077 
Disposal Services1,380 2,634 1,624 — 5,638 
Other Revenue660 266 25 — 951 
    Total Service Revenue10,205 8,513 3,948 — 22,666 
Rental Revenue1,103 27 — — 1,130 
Total Revenue$11,308 $8,540 $3,948 $— $23,796 
Three months ended September 30, 2019
Rocky MountainNortheastSouthernCorporate/OtherTotal
Water Transport Services$17,446 $7,413 $1,986 $— $26,845 
Disposal Services4,452 2,696 2,434 — 9,582 
Other Revenue1,936 428 71 — 2,435 
    Total Service Revenue23,834 10,537 4,491 — 38,862 
Rental Revenue4,162 68 6 — 4,236 
Total Revenue$27,996 $10,605 $4,497 $— $43,098 

Nine months ended September 30, 2020
Rocky MountainNortheastSouthernCorporate/OtherTotal
Water Transport Services$31,128 $18,746 $6,680 $— $56,554 
Disposal Services6,769 6,648 5,922 — 19,339 
Other Revenue3,091 1,007 102 — 4,200 
    Total Service Revenue40,988 26,401 12,704 — 80,093 
Rental Revenue6,010 95 6 — 6,111 
Total Revenue$46,998 $26,496 $12,710 $— $86,204 

Nine months ended September 30, 2019
Rocky MountainNortheastSouthernCorporate/OtherTotal
Water Transport Services$51,603 $22,681 $8,196 $— $82,480 
Disposal Services13,669 9,293 7,579 — 30,541 
Other Revenue4,953 985 142 — 6,080 
    Total Service Revenue70,225 32,959 15,917 — 119,101 
Rental Revenue11,641 206 17 — 11,864 
Total Revenue$81,866 $33,165 $15,934 $— $130,965 

Water Transport Services

The majority of our revenues are from the removal and disposal of produced water and flowback water originating from oil and natural gas wells or the transportation of fresh water and produced water to customer sites for use in drilling and hydraulic fracturing activities by trucks or through temporary or permanent water transfer pipelines. Water transport rates for trucking are based upon either a fixed fee per barrel or upon an hourly rate. Revenue is recognized once the water has been transported, or over time, based upon the number of barrels transported or disposed of, or at the agreed upon hourly rate, depending upon the customer contract. Contracts for the use of our water disposal pipeline are priced at a fixed fee per disposal barrel transported, with revenues recognized over time from when the water is injected into our pipeline until the transport is complete. Water transport services are all generally completed within 24 hours with no remaining performance obligation outstanding at the end of each month.
Disposal Services

Revenues for disposal services are generated through fees charged for disposal of fluids near disposal wells and disposal of oilfield wastes in our landfill. Disposal rates are generally based on a fixed fee per barrel of produced water, or on a per ton basis for landfill disposal, with revenues recognized once the disposal has occurred. The performance obligation for disposal services is considered complete once the disposal occurs. Therefore, disposal services revenues are recognized at a point in time.

Other Revenue

Other revenue includes revenues from the sale of “junk” or “slop” oil obtained through the skimming of disposal water. Revenue is recognized for “junk” or “slop” oil sales at a point in time once the goods are transferred.

Rental Revenue

We generate rental revenue from the rental of equipment used in wellsite services. Rental rates are based upon negotiated rates with our customers and revenue is recognized over the rental service period. Revenues from rental equipment are not within the scope of the new revenue standard, but rather are recognized under ASC 842, Leases. As the rental service period for our equipment is very short term in nature and does not include any sales-type or direct financing leases, nor any variable rental components, the adoption of ASC 842 in 2019 did not have a material impact upon our consolidated statement of operations.