Business Segment and Significant Customer Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

Our segment results for the periods indicated were as follows:

	Three Months Ended June 30, 2022
	Drilling Services		Managed Services		Unallocated			Consolidated
(unaudited, in thousands)
Revenue
Contract drilling services	$	42,744	$	—	$	—		$	42,744
Management fees		—		2,840		—			2,840
Reimbursables and other		5,119		22,535		—			27,654
Total revenue		47,863		25,375		—			73,238
Operating costs and expenses
Operating costs		36,164		23,241		—			59,405
General and administrative		—		—		6,910			6,910
Depreciation		10,695		—		392			11,087
Gain on EDC Sale		—		—		(60,781	)		(60,781	)
Total operating costs and expenses		46,859		23,241		(53,479	)		16,621
Income from operations		1,004		2,134		53,479			56,617
Other (expense) income
Interest income		—		—		7			7
Interest expense and financing charges		—		—		(8,503	)		(8,503	)
Other, net		—		—		(1,011	)		(1,011	)
Total other expense		—		—		(9,507	)		(9,507	)
Income before income taxes	$	1,004	$	2,134	$	43,972		$	47,110
Reconciliation of income from operations to segment adjusted operating income:	Drilling Services		Managed Services
Income from operations	$	1,004	$	2,134
Depreciation		10,695		—
Segment adjusted operating income	$	11,699	$	2,134

	Three Months Ended June 30, 2021
(unaudited, in thousands)	Drilling Services			Managed Services		Unallocated			Consolidated
Revenue
Contract drilling services	$	31,655		$	—	$	—		$	31,655
Management fees		—			497		—			497
Reimbursables and other		2,711			738		—			3,449
Total revenue		34,366			1,235		—			35,601
Operating costs and expenses
Operating costs		34,867			1,189		—			36,056
General and administrative		—			—		4,967			4,967
Depreciation		13,752			—		409			14,161
Gain on EDC Sale		—			—		—			—
Total operating costs and expenses		48,619			1,189		5,376			55,184
(Loss) income from operations		(14,253	)		46		(5,376	)		(19,583	)
Other (expense) income
Interest income		—			—		10			10
Interest expense and financing charges		—			—		(8,511	)		(8,511	)
Other, net		—			—		(179	)		(179	)
Total other expense		—			—		(8,680	)		(8,680	)
(Loss) income before income taxes	$	(14,253	)	$	46	$	(14,056	)	$	(28,263	)
Reconciliation of (loss) income from operations to segment operating (loss) income:	Drilling Services			Managed Services
(Loss) income from operations	$	(14,253	)	$	46
Depreciation		13,752			—
Segment adjusted operating (loss) income	$	(501	)	$	46

	Six Months Ended June 30, 2022
	Drilling Services		Managed Services		Unallocated			Consolidated
(unaudited, in thousands)
Revenue
Contract drilling services	$	87,657	$	—	$	—		$	87,657
Management fees		—		3,943		—			3,943
Reimbursables and other		10,302		29,667		—			39,969
Total revenue		97,959		33,610		—			131,569
Operating costs and expenses
Operating costs		72,602		30,736		—			103,338
General and administrative		—		—		13,492			13,492
Depreciation		21,551		—		831			22,382
Gain on EDC Sale		—		—		(60,781	)		(60,781	)
Total operating costs and expenses		94,153		30,736		(46,458	)		78,431
Income from operations		3,806		2,874		46,458			53,138
Other (expense) income
Interest income		—		—		11			11
Interest expense and financing charges		—		—		(17,007	)		(17,007	)
Other, net		—		—		(1,786	)		(1,786	)
Total other expense		—		—		(18,782	)		(18,782	)
Income before income taxes	$	3,806	$	2,874	$	27,676		$	34,356
Reconciliation of income from operations to segment adjusted operating income:	Drilling Services		Managed Services
Income from operations	$	3,806	$	2,874
Depreciation		21,551		—
Segment adjusted operating income	$	25,357	$	2,874

	Six Months Ended June 30, 2021
	Drilling Services			Managed Services		Unallocated			Consolidated
(unaudited, in thousands)
Revenue
Contract drilling services	$	49,380		$	—	$	—		$	49,380
Management fees		—			595		—			595
Reimbursables and other		5,054			738		—			5,792
Total revenue		54,434			1,333		—			55,767
Operating costs and expenses
Operating costs		60,224			1,189		—			61,413
General and administrative		—			—		10,462			10,462
Depreciation		27,467			—		819			28,286
Gain on EDC Sale		—			—		—			—
Total operating costs and expenses		87,691			1,189		11,281			100,161
(Loss) income from operations		(33,257	)		144		(11,281	)		(44,394	)
Other (expense) income
Interest income		—			—		110			110
Interest expense and financing charges		—			—		(17,021	)		(17,021	)
Other, net		—			—		(793	)		(793	)
Total other expense		—			—		(17,704	)		(17,704	)
(Loss) income before income taxes	$	(33,257	)	$	144	$	(28,985	)	$	(62,098	)
Reconciliation of (loss) income from operations to segment adjusted operating (loss) income:	Drilling Services			Managed Services
(Loss) income from operations	$	(33,257	)	$	144
Depreciation		27,467			—
Segment adjusted operating (loss) income	$	(5,790	)	$	144

Summary of Revenue by Country

Our revenue by country and segment was as follows for the periods indicated (revenue of less than 10% are included in “Other countries”):

		Three months ended June 30,				Six months ended June 30,
Country	Segment	2022		2021		2022		2021
(unaudited, in thousands)
UAE	Managed Services	$	19,778	$	—	$	27,966	$	—
Egypt	Drilling Services		9,738		—		26,859		—
India	Drilling Services and Managed Services		13,230		9,297		26,518		18,152
Qatar	Drilling Services		—		7,697		14,319		14,894
Indonesia	Drilling Services		—		—		—		—
Montenegro	Drilling Services		—		16,253		—		16,306
Other countries (1)	Drilling Services and Managed Services		30,492		2,354		35,907		6,415
Total revenues		$	73,238	$	35,601	$	131,569	$	55,767

(1) “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned.

Summary of Revenue by Customers

Revenue with customers that contributed 10% or more of revenue for the periods indicated were as follows:

		Three months ended June 30,						Six months ended June 30,
(unaudited)	Segment	2022			2021			2022			2021
Customer 1	Managed Services		30	%		0	%		23	%		0	%
Customer 2	Drilling Services and Managed Services		18	%		26	%		20	%		33	%
Customer 3	Drilling Services		13	%		0	%		20	%		0	%
Customer 4	Drilling Services		0	%		17	%		10	%		11	%
Customer 5	Drilling Services		0	%		46	%		0	%		29	%
Customer 6	Drilling Services		0	%		0	%		0	%		16	%

Schedule of Property and Equipment, Net by Country

Our property and equipment, net by country, was as follows as of the dates indicated (property and equipment of less than 10% are included in “Other countries”):

	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Cyprus	$	165,754	$	—
Egypt		—		173,187
India		88,895		96,583
Indonesia		60,953		63,581
Other countries (1)		42,388		46,253
Total property and equipment	$	357,990	$	379,604

(1) “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net.