Property and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

NOTE 5 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:


	Estimated Useful Life (in years)	June 30, 2022			December 31, 2021
Pressure pumping equipment (1)	1.5 to 25	$	227,521		$	186,826
Light duty vehicles (2)	5		1,667			5,524
Furniture and fixtures	5		67			67
IT equipment	3		1,033			1,033
Auxiliary equipment	2		14,160			12,218
Leasehold improvements	Term of lease		276			276
			244,724			205,944
Less: accumulated depreciation and amortization			(49,781	)		(43,280	)
Property and equipment, net		$	194,943		$	162,664

(1)

As of December 31, 2021, the Company had capitalized $0.6 million of pressure pumping equipment, related to capital leases and the accumulated depreciation was $0.3 million.

(2)

As of December 31, 2021, the Company had capitalized $3.9 million of light duty vehicles, related to capital leases and the accumulated depreciation was $0.5 million.

Depreciation and amortization expense related to property and equipment was $5.3 million and $9.6 million during the three months ended June 30, 2022 and 2021, respectively, and $10.5 million and $20.5 million during the six months ended June 30, 2022 and 2021, respectively.

Assets Sales

In May 2021, the Company announced its commitment to becoming an all-electric pressure pumping services provider and since then has sold most of its legacy, diesel-powered pressure pumping equipment. As of June 30, 2022, the Company did not have any assets classified as held for sale. As of December 31, 2021, the Company had classified $2.0 million in net book value of diesel pressure pumping equipment as assets held for sale on the condensed consolidated balance sheet.

During the six months ended June 30, 2022, the Company received $5.3 million in proceeds from the sale of property and equipment, of which $2.1 million was for assets classified as held for sale. The Company used the proceeds received from the asset sales to pay down the principal balance of its Senior Secured Term Loan.

The Company recognized a gain of $0.1 million and a loss of $3.0 million from disposal of assets during the three and six months ended June 30, 2022, respectively, and a gain of $0.5 million and a loss of $1.9 million during the three and six months ended June 30, 2021, respectively.