Note

- Goodwill and Other Intangible Assets

During the

first

quarter of

2016,

utilization and commodity price levels continued to fall towards unprecedented levels and the resulting negative impact on the Company’s results of operations, coupled with the sustained decrease in the Company’s stock price, were deemed triggering events that led to an interim period test for goodwill impairment. The Company chose to bypass a qualitative approach and instead opted to employ the detailed Step

impairment testing methodologies discussed below.

Income approach

The income approach impairment testing methodology is based on a discounted cash flow model, which utilizes present values of cash flows to estimate fair value. For the Completion Services and Well Support Services reporting units, the future cash flows were projected based on estimates of projected revenue growth, fleet and rig count, utilization, gross profit rates, SG&A rates, working capital fluctuations, and capital expenditures. For the Other Services reporting unit, the future cash flows were projected based primarily on estimates of future demand for manufactured and refurbished equipment as well as parts and service, gross profit rates, SG&A rates, working capital fluctuations, and capital expenditures. Forecasted cash flows for the

three

reporting units took into account known market conditions as of

March

31,

2016,

and management’s anticipated business outlook, both of which have been impacted by the sustained decline in commodity prices.

A terminal period was used to reflect an estimate of stable, perpetual growth. The terminal period reflects a terminal growth rate of

2.5%

for all

three

reporting units, including an estimated inflation factor.

The future cash flows were discounted using a market-participant risk-adjusted weighted average cost of capital (“WACC”) of

14.5%

for Completion Services,

14.0%

for Well Support Services, and

16.0%

for Other Services reporting units. These assumptions were derived from unobservable inputs and reflect management’s judgments and assumptions.

Market approach

The market approach impairment testing methodology is based upon the guideline public company method. The application of the guideline public company method was based upon selected public companies operating within the same industry as the Company. Based on this set of comparable competitor data, price-to-earnings multiples were derived and a range of price-to-earnings multiples was determined for each reporting unit. Selected market multiples were

10.6x

for Completion Services,

10.5x

for Well Support Services and

11.0x

for Other Services reporting units.

The fair value determined under the market approach is sensitive to these market multiples, and a decline in any of the multiples could reduce the estimated fair value of any of the

three

reporting units below their respective carrying values. Earnings estimates were derived from unobservable inputs that require significant estimates, judgments and assumptions as described in the income approach.

The estimated fair value determined under the income approach was consistent with the estimated fair value determined under the market approach. The concluded fair value for the Completion Services and Well Support Services reporting units consisted of a weighted average, with an

80.0%

weight under the income approach and a

20.0%

weight under the market approach. The concluded fair value for the Other Services reporting unit consisted of a weighted average with a

50.0%

weight under the income approach and a

50.0%

weight under the market approach.

The results of the Step

impairment testing indicated potential impairment in the Well Support Services reporting unit. The goodwill associated with both the Completion Services and Other Services reporting units was completely impaired during the

third

quarter of

2015.

As a way to validate the estimated reporting unit fair values, the total market capitalization of the Company was compared to the total estimated fair value of all reporting units, and an implied control premium was derived. Market data in support of the implied control premium was used in this reconciliation to corroborate the estimated reporting unit fair values.

Step

of the goodwill impairment testing for the Well Support Services reporting units was performed during the

first

quarter of

2016,

and the results concluded that there was no value remaining to be allocated to the goodwill associated with this reporting unit. As a result, the Company recognized impairment expense of

$314.3

million for the

three

months ended

March

31,

2016.

As of

March

31,

2017

and

2016,

there was

goodwill remaining to be allocated across the Company's reporting units.

Definite-Lived Intangible Assets

The Company reviews definite-lived intangible assets, along with PP&E, for impairment when a triggering event indicates that the asset

may

have a net book value in excess of recoverable value. During

2016,

management determined the sustained low commodity price levels coupled with the sustained decrease in the Company’s share price were deemed triggering events that provided indicators that its definite-lived intangible assets

may

be impaired. The Company performed a recoverability test on all of its definite-lived intangible assets and PP&E by comparing the estimated future net undiscounted cash flows expected to be generated from the use of these assets to the carrying amounts of the assets for recoverability. If the estimated undiscounted cash flows exceed the carrying amount of the assets, an impairment does not exist and a loss will not be recognized. If the undiscounted cash flows are less than the carrying amount of the assets, the assets are not recoverable and the amount of impairment must be determined by fair valuing the assets.

Recoverability testing through

March

31,

2016

resulted in the determination that certain intangible assets associated with the Company’s wireline and artificial lift lines of business were not recoverable. The fair value of the wireline and artificial lift assets was determined to be

$42.2

million and

$1.1

million, respectively, resulting in impairment expense of

$47.5

million and

$3.6

million, respectively.

The changes in the carrying amounts of other intangible assets for the

three

months ended

March

31,

2017

are as follows (in thousands):

					Predecessor						Successor
	Amortization Period (years)				December 31, 2016			Fresh Start Adjustments			On January 1, 2017		Amortization Expense			Divestiture			March 31, 2017
Customer relationships		8	-	15	$	80,826		$	(80,826	)	$	—	$	—		$	—		$	—
Trade name		10	-	15		29,994			26,506			56,500		—			—			56,500
Developed technology		5	-	15		21,516			(17,616	)		3,900		—			(3,900	)		—
Non-compete		4	-	5		2,600			(2,600	)		—		—			—			—
Patents			10			35			(35	)		—		—			—			—
						134,971			(74,571	)		60,400		—			(3,900	)		56,500
Less: accumulated amortization						(58,914	)		58,914			—		(942	)		—			(942	)
Intangible assets, net					$	76,057		$	(15,657	)	$	60,400	$	(942	)	$	(3,900	)	$	55,558