QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Registrant’s telephone number, including area code) | (Zip Code) | ||||||||||||
Securities registered pursuant to Section 12(b) of The Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
☒ | Smaller reporting company | |||||||||||||||||||
Emerging growth company |
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The following is a glossary of certain oil and natural gas and natural sand proppant industry terms used in this Quarterly Report on Form 10-Q (this “report” or “Quarterly Report”): | |||||
Acidizing | To pump acid into a wellbore to improve a well’s productivity or injectivity. | ||||
Blowout | An uncontrolled flow of reservoir fluids into the wellbore, and sometimes catastrophically to the surface. A blowout may consist of salt water, oil, natural gas or a mixture of these. Blowouts can occur in all types of exploration and production operations, not just during drilling operations. If reservoir fluids flow into another formation and do not flow to the surface, the result is called an underground blowout. If the well experiencing a blowout has significant open-hole intervals, it is possible that the well will bridge over (or seal itself with rock fragments from collapsing formations) down-hole and intervention efforts will be averted. | ||||
Bottomhole assembly | The lower portion of the drillstring, consisting of (from the bottom up in a vertical well) the bit, bit sub, a mud motor (in certain cases), stabilizers, drill collar, heavy-weight drillpipe, jarring devices (“jars”) and crossovers for various threadforms. The bottomhole assembly must provide force for the bit to break the rock (weight on bit), survive a hostile mechanical environment and provide the driller with directional control of the well. Oftentimes the assembly includes a mud motor, directional drilling and measuring equipment, measurements-while-drilling tools, logging-while-drilling tools and other specialized devices. | ||||
Cementing | To prepare and pump cement into place in a wellbore. | ||||
Coiled tubing | A long, continuous length of pipe wound on a spool. The pipe is straightened prior to pushing into a wellbore and rewound to coil the pipe back onto the transport and storage spool. Depending on the pipe diameter (1 in. to 4 1/2 in.) and the spool size, coiled tubing can range from 2,000 ft. to 23,000 ft. (610 m to 6,096 m) or greater length. | ||||
Completion | A generic term used to describe the assembly of down-hole tubulars and equipment required to enable safe and efficient production from an oil or gas well. The point at which the completion process begins may depend on the type and design of the well. | ||||
Directional drilling | The intentional deviation of a wellbore from the path it would naturally take. This is accomplished through the use of whipstocks, bottomhole assembly (BHA) configurations, instruments to measure the path of the wellbore in three-dimensional space, data links to communicate measurements taken down-hole to the surface, mud motors and special BHA components and drill bits, including rotary steerable systems, and drill bits. The directional driller also exploits drilling parameters such as weight on bit and rotary speed to deflect the bit away from the axis of the existing wellbore. In some cases, such as drilling steeply dipping formations or unpredictable deviation in conventional drilling operations, directional-drilling techniques may be employed to ensure that the hole is drilled vertically. While many techniques can accomplish this, the general concept is simple: point the bit in the direction that one wants to drill. The most common way is through the use of a bend near the bit in a down-hole steerable mud motor. The bend points the bit in a direction different from the axis of the wellbore when the entire drillstring is not rotating. By pumping mud through the mud motor, the bit turns while the drillstring does not rotate, allowing the bit to drill in the direction it points. When a particular wellbore direction is achieved, that direction may be maintained by rotating the entire drillstring (including the bent section) so that the bit does not drill in a single direction off the wellbore axis, but instead sweeps around and its net direction coincides with the existing wellbore. Rotary steerable tools allow steering while rotating, usually with higher rates of penetration and ultimately smoother boreholes. | ||||
Down-hole | Pertaining to or in the wellbore (as opposed to being on the surface). | ||||
Down-hole motor | A drilling motor located in the drill string above the drilling bit powered by the flow of drilling mud. Down-hole motors are used to increase the speed and efficiency of the drill bit or can be used to steer the bit in directional drilling operations. Drilling motors have become very popular because of horizontal and directional drilling applications and the day rates for drilling rigs. | ||||
Drilling rig | The machine used to drill a wellbore. | ||||
Drillpipe or Drill pipe | Tubular steel conduit fitted with special threaded ends called tool joints. The drillpipe connects the rig surface equipment with the bottomhole assembly and the bit, both to pump drilling fluid to the bit and to be able to raise, lower and rotate the bottomhole assembly and bit. | ||||
Drillstring or Drill string | The combination of the drillpipe, the bottomhole assembly and any other tools used to make the drill bit turn at the bottom of the wellbore. | ||||
Flowback | The process of allowing fluids to flow from the well following a treatment, either in preparation for a subsequent phase of treatment or in preparation for cleanup and returning the well to production. | ||||
Horizontal drilling | A subset of the more general term “directional drilling,” used where the departure of the wellbore from vertical exceeds about 80 degrees. Note that some horizontal wells are designed such that after reaching true 90-degree horizontal, the wellbore may actually start drilling upward. In such cases, the angle past 90 degrees is continued, as in 95 degrees, rather than reporting it as deviation from vertical, which would then be 85 degrees. Because a horizontal well typically penetrates a greater length of the reservoir, it can offer significant production improvement over a vertical well. | ||||
Hydraulic fracturing | A stimulation treatment routinely performed on oil and gas wells in low permeability reservoirs. Specially engineered fluids are pumped at high pressure and rate into the reservoir interval to be treated, causing a vertical fracture to open. The wings of the fracture extend away from the wellbore in opposing directions according to the natural stresses within the formation. Proppant, such as grains of sand of a particular size, is mixed with the treatment fluid to keep the fracture open when the treatment is complete. Hydraulic fracturing creates high-conductivity communication with a large area of formation and bypasses any damage that may exist in the near-wellbore area. |
Hydrocarbon | A naturally occurring organic compound comprising hydrogen and carbon. Hydrocarbons can be as simple as methane, but many are highly complex molecules, and can occur as gases, liquids or solids. Petroleum is a complex mixture of hydrocarbons. The most common hydrocarbons are natural gas, oil and coal. | ||||
Mesh size | The size of the proppant that is determined by sieving the proppant through screens with uniform openings corresponding to the desired size of the proppant. Each type of proppant comes in various sizes, categorized as mesh sizes, and the various mesh sizes are used in different applications in the oil and natural gas industry. The mesh number system is a measure of the number of equally sized openings per square inch of screen through which the proppant is sieved. | ||||
Mud motors | A positive displacement drilling motor that uses hydraulic horsepower of the drilling fluid to drive the drill bit. Mud motors are used extensively in directional drilling operations. | ||||
Natural gas liquids | Components of natural gas that are liquid at surface in field facilities or in gas processing plants. Natural gas liquids can be classified according to their vapor pressures as low (condensate), intermediate (natural gasoline) and high (liquefied petroleum gas) vapor pressure. | ||||
Nitrogen pumping unit | A high-pressure pump or compressor unit capable of delivering high-purity nitrogen gas for use in oil or gas wells. Two basic types of units are commonly available: a nitrogen converter unit that pumps liquid nitrogen at high pressure through a heat exchanger or converter to deliver high-pressure gas at ambient temperature, and a nitrogen generator unit that compresses and separates air to provide a supply of high pressure nitrogen gas. | ||||
Plugging | The process of permanently closing oil and gas wells no longer capable of producing in economic quantities. Plugging work can be performed with a well servicing rig along with wireline and cementing equipment; however, this service is typically provided by companies that specialize in plugging work. | ||||
Plug | A down-hole packer assembly used in a well to seal off or isolate a particular formation for testing, acidizing, cementing, etc.; also a type of plug used to seal off a well temporarily while the wellhead is removed. | ||||
Pounds per square inch | A unit of pressure. It is the pressure resulting from a one pound force applied to an area of one square inch. | ||||
Pressure pumping | Services that include the pumping of liquids under pressure. | ||||
Producing formation | An underground rock formation from which oil, natural gas or water is produced. Any porous rock will contain fluids of some sort, and all rocks at considerable distance below the Earth’s surface will initially be under pressure, often related to the hydrostatic column of ground waters above the reservoir. To produce, rocks must also have permeability, or the capacity to permit fluids to flow through them. | ||||
Proppant | Sized particles mixed with fracturing fluid to hold fractures open after a hydraulic fracturing treatment. In addition to naturally occurring sand grains, man-made or specially engineered proppants, such as resin-coated sand or high-strength ceramic materials like sintered bauxite, may also be used. Proppant materials are carefully sorted for size and sphericity to provide an efficient conduit for production of fluid from the reservoir to the wellbore. | ||||
Resource play | Accumulation of hydrocarbons known to exist over a large area. | ||||
Shale | A fine-grained, fissile, sedimentary rock formed by consolidation of clay- and silt-sized particles into thin, relatively impermeable layers. | ||||
Tight oil | Conventional oil that is found within reservoirs with very low permeability. The oil contained within these reservoir rocks typically will not flow to the wellbore at economic rates without assistance from technologically advanced drilling and completion processes. Commonly, horizontal drilling coupled with multistage fracturing is used to access these difficult to produce reservoirs. | ||||
Tight sands | A type of unconventional tight reservoir. Tight reservoirs are those which have low permeability, often quantified as less than 0.1 millidarcies. | ||||
Tubulars | A generic term pertaining to any type of oilfield pipe, such as drill pipe, drill collars, pup joints, casing, production tubing and pipeline. | ||||
Unconventional resource/unconventional well | A term for the different manner by which resources are exploited as compared to the extraction of conventional resources. In unconventional drilling, the wellbore is generally drilled to specific objectives within narrow parameters, often across long, lateral intervals within narrow horizontal formations offering greater contact area with the producing formation. Typically, the well is then hydraulically fractured at multiple stages to optimize production. | ||||
Wellbore | The physical conduit from surface into the hydrocarbon reservoir. | ||||
Well stimulation | A treatment performed to restore or enhance the productivity of a well. Stimulation treatments fall into two main groups, hydraulic fracturing treatments and matrix treatments. Fracturing treatments are performed above the fracture pressure of the reservoir formation and create a highly conductive flow path between the reservoir and the wellbore. Matrix treatments are performed below the reservoir fracture pressure and generally are designed to restore the natural permeability of the reservoir following damage to the near wellbore area. Stimulation in shale gas reservoirs typically takes the form of hydraulic fracturing treatments. | ||||
Wireline | A general term used to describe well-intervention operations conducted using single-strand or multi-strand wire or cable for intervention in oil or gas wells. Although applied inconsistently, the term commonly is used in association with electric logging and cables incorporating electrical conductors. | ||||
Workover | The process of performing major maintenance or remedial treatments on an oil or gas well. In many cases, workover implies the removal and replacement of the production tubing string after the well has been killed and a workover rig has been placed on location. Through-tubing workover operations, using coiled tubing, snubbing or slickline equipment, are routinely conducted to complete treatments or well service activities that avoid a full workover where the tubing is removed. This operation saves considerable time and expense. |
The following is a glossary of certain electrical infrastructure industry terms used in this report: | |||||
Distribution | The distribution of electricity from the transmission system to individual customers. | ||||
Substation | A part of an electrical transmission and distribution system that transforms voltage from high to low, or the reverse. | ||||
Transmission | The movement of electrical energy from a generating site, such as a power plant, to an electric substation. |
ASSETS | September 30, | December 31, | ||||||||||||
2023 | 2022 | |||||||||||||
CURRENT ASSETS | (in thousands) | |||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Receivables from related parties, net | ||||||||||||||
Inventories | ||||||||||||||
Prepaid expenses | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
Sand reserves | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Intangible assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Other non-current assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
CURRENT LIABILITIES | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Current operating lease liability | ||||||||||||||
Current portion of long-term debt | ||||||||||||||
Income taxes payable | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt, net of current portion | ||||||||||||||
Deferred income tax liabilities | ||||||||||||||
Long-term operating lease liability | ||||||||||||||
Asset retirement obligations | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 19) | ||||||||||||||
EQUITY | ||||||||||||||
Equity: | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid in capital | ||||||||||||||
Accumulated deficit | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
REVENUE | (in thousands, except per share amounts) | ||||||||||||||||||||||
Services revenue | $ | $ | $ | $ | |||||||||||||||||||
Services revenue - related parties | |||||||||||||||||||||||
Product revenue | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
COST AND EXPENSES | |||||||||||||||||||||||
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $ | |||||||||||||||||||||||
Services cost of revenue - related parties | |||||||||||||||||||||||
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $ | |||||||||||||||||||||||
Selling, general and administrative (Note 12) | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Gains on disposal of assets, net | ( | ( | ( | ( | |||||||||||||||||||
Impairment of goodwill | |||||||||||||||||||||||
Total cost and expenses | |||||||||||||||||||||||
Operating (loss) income | ( | ( | ( | ||||||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Total other income, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ( | |||||||||||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of $ | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive (loss) income | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Net (loss) income per share (basic) (Note 15) | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Net (loss) income per share (diluted) (Note 15) | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Weighted average number of shares outstanding (basic) (Note 15) | |||||||||||||||||||||||
Weighted average number of shares outstanding (diluted) (Note 15) | |||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Accumulated | Paid-In | Comprehensive | |||||||||||||||||
Shares | Amount | Deficit | Capital | Loss | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | ( | $ | $ | ( | ||||||||||||||
Stock based compensation | — | — | — | — | ||||||||||||||||
Net loss | — | — | ( | — | — | ( | ||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance at September 30, 2023 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Accumulated | Paid-In | Comprehensive | |||||||||||||||||
Shares | Amount | Deficit | Capital | Loss | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||
Stock based compensation | — | — | — | — | ||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance at September 30, 2022 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Accumulated | Paid-In | Comprehensive | |||||||||||||||||
Shares | Amount | Deficit | Capital | Loss | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||
Stock based compensation | — | — | ||||||||||||||||||
Shares repurchased | ( | ( | — | ( | — | ( | ||||||||||||||
Net income | — | — | — | — | ||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance at September 30, 2023 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Accumulated | Paid-In | Comprehensive | |||||||||||||||||
Shares | Amount | Deficit | Capital | Loss | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||
Stock based compensation | — | — | ||||||||||||||||||
Net loss | — | — | ( | — | — | ( | ||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance at September 30, 2022 | $ | $ | ( | $ | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||||||||||
Stock based compensation | |||||||||||
Depreciation, depletion, accretion and amortization | |||||||||||
Amortization of debt origination costs | |||||||||||
Change in provision for expected credit losses | ( | ( | |||||||||
Gains on disposal of assets | ( | ( | |||||||||
Gains from sales of equipment damaged or lost down-hole | ( | ( | |||||||||
Impairment of goodwill | |||||||||||
Gain on sale of business | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Other | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Receivables from related parties, net | ( | ( | |||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | |||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Income taxes payable | |||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Business divestitures, net of cash transferred | |||||||||||
Proceeds from disposal of property and equipment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings on long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Proceeds from sale leaseback transaction | |||||||||||
Payments on sale leaseback transaction | ( | ( | |||||||||
Principal payments on financing leases and equipment financing notes | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Effect of foreign exchange rate on cash | ( | ( | |||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes, net of refunds received | $ | $ | |||||||||
Supplemental disclosure of non-cash transactions: | |||||||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | $ | |||||||||
Right-of-use assets obtained for financing lease liabilities | $ | $ |
Balance, January 1, 2022 | $ | |||||||
Change in provision for expected credit losses | ||||||||
Recoveries of receivables previously charged to credit loss expense | ( | |||||||
Write-offs charged against the provision | ( | |||||||
Balance, December 31, 2022 | ||||||||
Change in provision for expected credit losses | ( | |||||||
Recoveries of receivables previously charged to credit loss expense | ( | |||||||
Write-offs charged against the provision | ( | |||||||
Balance, September 30, 2023 | $ |
REVENUES | ACCOUNTS RECEIVABLE | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | At September 30, | At December 31, | |||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
Customer A(a) | % | % | % | % | % | % | ||||||||||||||||||||
Customer B(b) | % | % | % | % | % | % | ||||||||||||||||||||
Balance, December 31, 2021 | $ | |||||||
Deduction for recognition of revenue | ( | |||||||
Deduction for rebate credit recognized | ( | |||||||
Increase for deferral of customer prepayments | ||||||||
Balance, December 31, 2022 | ||||||||
Deduction for recognition of revenue | ( | |||||||
Deduction for rebate credit recognized | ( | |||||||
Increase for deferral of customer prepayments | ||||||||
Balance, September 30, 2023 | $ |
September 30, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Supplies | $ | $ | ||||||||||||
Raw materials | ||||||||||||||
Work in process | ||||||||||||||
Finished goods | ||||||||||||||
Total inventories | $ | $ |
September 30, | December 31, | ||||||||||||||||
Useful Life | 2023 | 2022 | |||||||||||||||
Pressure pumping equipment | $ | $ | |||||||||||||||
Drilling rigs and related equipment | |||||||||||||||||
Machinery and equipment | |||||||||||||||||
Buildings(a) | |||||||||||||||||
Vehicles, trucks and trailers | |||||||||||||||||
Coil tubing equipment | |||||||||||||||||
Land | N/A | ||||||||||||||||
Land improvements | |||||||||||||||||
Rail improvements | |||||||||||||||||
Other property and equipment(b) | |||||||||||||||||
Deposits on equipment and equipment in process of assembly(c) | |||||||||||||||||
Less: accumulated depreciation(d) | |||||||||||||||||
Total property, plant and equipment, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
Amortization expense | |||||||||||||||||||||||
Accretion and depletion expense | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | $ | $ | $ | $ |
Well Completions | Other | Total | |||||||||||||||
Balance as of January 1, 2022 | |||||||||||||||||
Goodwill | $ | $ | $ | ||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||
Acquisitions | |||||||||||||||||
Impairment losses | |||||||||||||||||
Balance as of December 31, 2022 | |||||||||||||||||
Goodwill | |||||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||
Acquisitions | |||||||||||||||||
Impairment losses | ( | ( | |||||||||||||||
Dispositions | ( | ( | |||||||||||||||
Balance as of September 30, 2023 | |||||||||||||||||
Goodwill | |||||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||
$ | $ | $ |
September 30, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
Trade names | |||||||||||
Less: accumulated amortization - trade names | ( | ( | |||||||||
Intangible assets, net | $ | $ |
Remainder of 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
$ |
September 30, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
State and local taxes payable | $ | $ | ||||||||||||
Sale-leaseback liability(a) | ||||||||||||||
Accrued compensation and benefits | ||||||||||||||
Equipment financing note | ||||||||||||||
Financing leases | ||||||||||||||
Insurance reserves | ||||||||||||||
Deferred revenue | ||||||||||||||
Financed insurance premiums(b) | ||||||||||||||
Other | ||||||||||||||
Total accrued expenses and other current liabilities | $ | $ | ||||||||||||
Other Long-Term Liabilities | ||||||||||||||
Equipment financing note(c) | $ | $ | ||||||||||||
Sale-leaseback liability(a) | ||||||||||||||
Financing leases | ||||||||||||||
Total other long-term liabilities | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash expenses: | |||||||||||||||||||||||
Compensation and benefits | $ | $ | $ | $ | |||||||||||||||||||
Professional services | |||||||||||||||||||||||
Other(a) | |||||||||||||||||||||||
Total cash SG&A expense | |||||||||||||||||||||||
Non-cash expenses: | |||||||||||||||||||||||
Change in provision for expected credit losses | ( | ( | |||||||||||||||||||||
Stock based compensation | |||||||||||||||||||||||
Total non-cash SG&A expense | |||||||||||||||||||||||
Total SG&A expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease expense | |||||||||||||||||||||||
Finance lease expense: | |||||||||||||||||||||||
Amortization of right-of-use assets | |||||||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total lease expense | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
Operating leases: | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Current operating lease liability | |||||||||||
Long-term operating lease liability | |||||||||||
Finance leases: | |||||||||||
$ | $ | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
Operating cash flows from operating leases | $ | $ | $ | $ | |||||||||||||||||||
Operating cash flows from finance leases | |||||||||||||||||||||||
Financing cash flows from finance leases | |||||||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||||||||
Operating leases | $ | $ | $ | $ | |||||||||||||||||||
Finance leases |
September 30, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
Weighted-average remaining lease term: | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Operating Leases | Finance Leases | ||||||||||
Remainder of 2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: Present value discount | |||||||||||
Present value of lease payments | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Basic (loss) earnings per share: | |||||||||||||||||||||||
Allocation of (loss) earnings: | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic (loss) earnings per share | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Diluted (loss) earnings per share: | |||||||||||||||||||||||
Allocation of (loss) earnings: | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Weighted average common shares, including dilutive effect(a) | |||||||||||||||||||||||
Diluted (loss) earnings per share | $ | ( | $ | $ | $ | ( |
Number of Unvested Restricted Shares | Weighted Average Grant-Date Fair Value | |||||||||||||
Unvested shares as of January 1, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ||||||||||||||
Unvested shares as of December 31, 2022 | ||||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ||||||||||||||
Unvested shares as of September 30, 2023 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | At September 30, | At December 31, | ||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
REVENUES | ACCOUNTS RECEIVABLE | ||||||||||||||||||||||||||||
Cobra Aviation/ARS/Leopard and Brim Equipment | (a) | $ | $ | $ | $ | ||||||||||||||||||||||||
Panther and El Toro | (b) | ||||||||||||||||||||||||||||
Other Relationships | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | At September 30, | At December 31, | ||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
COST OF REVENUE | ACCOUNTS PAYABLE | ||||||||||||||||||||||||||||
Cobra Aviation/ARS/Leopard and Brim Equipment | (a) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
The Company and Caliber | (b) | ||||||||||||||||||||||||||||
Other Relationships | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Environmental remediation | $ | $ | ||||||||||||
Insurance programs | ||||||||||||||
Total letters of credit | $ | $ |
Three Months Ended September 30, 2023 | Well Completion | Infrastructure | Sand | Drilling | All Other | Eliminations | Total | ||||||||||||||||
Revenue from external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Intersegment cost of revenues | ( | ||||||||||||||||||||||
Total cost of revenue | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
(Gains) losses on disposal of assets, net | ( | ( | ( | ( | |||||||||||||||||||
Impairment of goodwill | |||||||||||||||||||||||
Operating loss | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
(Loss) income before income taxes | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | $ |
Three Months Ended September 30, 2022 | Well Completion | Infrastructure | Sand | Drilling | All Other | Eliminations | Total | ||||||||||||||||
Revenue from external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Intersegment cost of revenues | ( | ||||||||||||||||||||||
Total cost of revenue | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
(Gains) losses on disposal of assets, net | ( | ( | ( | ( | |||||||||||||||||||
Operating income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | ( | ||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, 2023 | Well Completion | Infrastructure | Sand | Drilling | All Other | Eliminations | Total | ||||||||||||||||
Revenue from external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Intersegment cost of revenues | ( | ||||||||||||||||||||||
Total cost of revenue | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Gains on disposal of assets, net | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Impairment of goodwill | |||||||||||||||||||||||
Operating income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other expense (income), net | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, 2022 | Well Completion | Infrastructure | Sand | Drilling | All Other | Eliminations | Total | ||||||||||||||||
Revenue from external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Intersegment revenues | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Intersegment cost of revenues | ( | ||||||||||||||||||||||
Total cost of revenue | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | |||||||||||||||||||||||
Gains on disposal of assets, net | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Operating income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Well Completion | Infrastructure | Sand | Drilling | All Other | Eliminations | Total | |||||||||||||||||
As of September 30, 2023: | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||
As of December 31, 2022: | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended | |||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Revenue: | |||||||||||
Well completion services | $ | 20,327 | $ | 51,532 | |||||||
Infrastructure services | 26,712 | 33,296 | |||||||||
Natural sand proppant services | 10,633 | 12,910 | |||||||||
Drilling services | 2,822 | 3,118 | |||||||||
Other services | 5,537 | 6,968 | |||||||||
Eliminations | (1,072) | (622) | |||||||||
Total revenue | 64,959 | 107,202 | |||||||||
Cost of revenue: | |||||||||||
Well completion services (exclusive of depreciation and amortization of $3,970 and $4,767, respectively, for the three months ended September 30, 2023 and 2022) | 17,853 | 35,817 | |||||||||
Infrastructure services (exclusive of depreciation and amortization of $1,555 and $3,966, respectively, for the three months ended September 30, 2023 and 2022) | 22,052 | 26,512 | |||||||||
Natural sand proppant services (exclusive of depreciation, depletion and accretion of $2,836 and $2,863, respectively, for the three months ended September 30, 2023 and 2022) | 6,977 | 9,206 | |||||||||
Drilling services (exclusive of depreciation and amortization of $1,222 and $1,597, respectively, for the three months ended September 30, 2023 and 2022) | 2,708 | 2,804 | |||||||||
Other services (exclusive of depreciation and amortization of $1,647 and $2,638, respectively, for the three months ended September 30, 2023 and 2022) | 4,299 | 4,739 | |||||||||
Eliminations | (1,072) | (622) | |||||||||
Total cost of revenue | 52,817 | 78,456 | |||||||||
Selling, general and administrative expenses | 10,411 | 9,685 | |||||||||
Depreciation, depletion, amortization and accretion | 11,233 | 15,842 | |||||||||
Gains on disposal of assets, net | (2,450) | (599) | |||||||||
Impairment of goodwill | 1,810 | — | |||||||||
Operating (loss) income | (8,862) | 3,818 | |||||||||
Interest expense, net | (2,876) | (3,262) | |||||||||
Other income, net | 14,088 | 10,989 | |||||||||
Income before income taxes | 2,350 | 11,545 | |||||||||
Provision for income taxes | 3,438 | 3,819 | |||||||||
Net (loss) income | $ | (1,088) | $ | 7,726 |
Three Months Ended | |||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||
Cash expenses: | |||||||||||
Compensation and benefits | $ | 3,392 | $ | 3,676 | |||||||
Professional services | 4,684 | 3,706 | |||||||||
Other(a) | 2,105 | 2,059 | |||||||||
Total cash SG&A expense | 10,181 | 9,441 | |||||||||
Non-cash expenses: | |||||||||||
Change in provision for expected credit losses | 11 | 3 | |||||||||
Stock based compensation | 219 | 241 | |||||||||
Total non-cash SG&A expense | 230 | 244 | |||||||||
Total SG&A expense | $ | 10,411 | $ | 9,685 |
Nine Months Ended | |||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Revenue: | |||||||||||
Well completion services | $ | 115,210 | $ | 119,223 | |||||||
Infrastructure services | 83,308 | 81,892 | |||||||||
Natural sand proppant services | 34,668 | 37,548 | |||||||||
Drilling services | 7,981 | 7,944 | |||||||||
Other services | 17,687 | 16,730 | |||||||||
Eliminations | (2,144) | (4,159) | |||||||||
Total revenue | 256,710 | 259,178 | |||||||||
Cost of revenue: | |||||||||||
Well completion services (exclusive of depreciation and amortization of $13,281 and $17,944, respectively, for the nine months ended September 30, 2023 and 2022) | 94,187 | 92,159 | |||||||||
Infrastructure services (exclusive of depreciation and amortization of $7,359 and $12,477, respectively, for the nine months ended September 30, 2023 and 2022) | 67,839 | 67,239 | |||||||||
Natural sand proppant services (exclusive of depreciation, depletion and accretion of $6,395 and $6,711, respectively, for the nine months ended September 30, 2023 and 2022) | 21,905 | 26,701 | |||||||||
Drilling services (exclusive of depreciation of $3,873 and $4,928, respectively, for the nine months ended September 30, 2023 and 2022) | 7,572 | 7,530 | |||||||||
Other services (exclusive of depreciation and amortization of $5,913 and $8,378, respectively, for the nine months ended September 30, 2023 and 2022) | 12,702 | 12,256 | |||||||||
Eliminations | (2,144) | (4,163) | |||||||||
Total cost of revenue | 202,061 | 201,722 | |||||||||
Selling, general and administrative expenses | 29,151 | 26,560 | |||||||||
Depreciation, depletion, amortization and accretion | 36,839 | 50,485 | |||||||||
Gains on disposal of assets, net | (3,284) | (3,738) | |||||||||
Impairment of goodwill | 1,810 | — | |||||||||
Operating loss | (9,867) | (15,851) | |||||||||
Interest expense, net | (9,385) | (8,270) | |||||||||
Other income, net | 31,051 | 30,175 | |||||||||
Income before income taxes | 11,799 | 6,054 | |||||||||
Provision for income taxes | 9,006 | 11,442 | |||||||||
Net income (loss) | $ | 2,793 | $ | (5,388) |
Nine Months Ended | |||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||
Cash expenses: | |||||||||||
Compensation and benefits | $ | 11,665 | $ | 9,796 | |||||||
Professional services | 10,889 | 10,067 | |||||||||
Other(a) | 5,884 | 6,127 | |||||||||
Total cash SG&A expenses | 28,438 | 25,990 | |||||||||
Non-cash expenses: | |||||||||||
Change in provision for expected credit losses | (414) | (112) | |||||||||
Stock based compensation | 1,127 | 682 | |||||||||
Total non-cash SG&A expenses | 713 | 570 | |||||||||
Total SG&A expenses | $ | 29,151 | $ | 26,560 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net (loss) income | $ | (1,088) | $ | 7,726 | $ | 2,793 | $ | (5,388) | |||||||||||||||
Depreciation, depletion, amortization and accretion expense | 11,233 | 15,842 | 36,839 | 50,485 | |||||||||||||||||||
Gains on disposal of assets, net | (2,450) | (599) | (3,284) | (3,738) | |||||||||||||||||||
Impairment of goodwill | 1,810 | — | 1,810 | — | |||||||||||||||||||
Stock based compensation | 219 | 241 | 1,127 | 682 | |||||||||||||||||||
Interest expense, net | 2,876 | 3,262 | 9,385 | 8,270 | |||||||||||||||||||
Other income, net | (14,088) | (10,989) | (31,051) | (30,174) | |||||||||||||||||||
Provision for income taxes | 3,438 | 3,819 | 9,006 | 11,442 | |||||||||||||||||||
Interest on trade accounts receivable | 11,443 | 10,468 | 33,897 | 30,490 | |||||||||||||||||||
Adjusted EBITDA | $ | 13,393 | $ | 29,770 | $ | 60,522 | $ | 62,069 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net (loss) income | $ | (1,834) | $ | 8,706 | $ | 1,376 | $ | 2,357 | |||||||||||||||
Depreciation and amortization expense | 3,971 | 4,772 | 13,288 | 17,963 | |||||||||||||||||||
Gains on disposal of assets, net | (2,016) | (339) | (2,016) | (547) | |||||||||||||||||||
Stock based compensation | 64 | 104 | 451 | 275 | |||||||||||||||||||
Interest expense | 774 | 531 | 2,527 | 1,324 | |||||||||||||||||||
Other (income) expense, net | — | (345) | 1 | (345) | |||||||||||||||||||
Adjusted EBITDA | $ | 959 | $ | 13,429 | $ | 15,627 | $ | 21,027 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
Reconciliation of net income to Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | 3,239 | $ | 2,630 | $ | 6,392 | $ | 3,323 | |||||||||||||||
Depreciation and amortization expense | 1,557 | 3,969 | 7,366 | 12,495 | |||||||||||||||||||
(Gains) losses on disposal of assets | (311) | 73 | (439) | (795) | |||||||||||||||||||
Stock based compensation | 99 | 89 | 436 | 261 | |||||||||||||||||||
Interest expense | 1,647 | 2,047 | 5,361 | 5,345 | |||||||||||||||||||
Other income, net | (11,348) | (10,304) | (28,713) | (29,948) | |||||||||||||||||||
Provision for income taxes | 3,381 | 3,402 | 8,411 | 10,178 | |||||||||||||||||||
Interest on trade accounts receivable | 11,443 | 10,468 | 33,897 | 30,490 | |||||||||||||||||||
Adjusted EBITDA | $ | 9,707 | $ | 12,374 | $ | 32,711 | $ | 31,349 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
Reconciliation of net (loss) income to Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net (loss) income | $ | (515) | $ | (446) | $ | 3,290 | $ | 904 | |||||||||||||||
Depreciation, depletion, amortization and accretion expense | 2,836 | 2,865 | 6,397 | 6,717 | |||||||||||||||||||
Gains on disposal of assets | — | — | (16) | (90) | |||||||||||||||||||
Stock based compensation | 37 | 30 | 149 | 90 | |||||||||||||||||||
Interest expense | 117 | 212 | 422 | 552 | |||||||||||||||||||
Other income, net | (6) | (3) | (12) | (10) | |||||||||||||||||||
Adjusted EBITDA | $ | 2,469 | $ | 2,658 | $ | 10,230 | $ | 8,163 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
Reconciliation of net loss to Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net loss | $ | (1,510) | $ | (1,457) | $ | (4,846) | $ | (5,482) | |||||||||||||||
Depreciation expense | 1,222 | 1,598 | 3,873 | 4,929 | |||||||||||||||||||
Gains on disposal of assets | (138) | (286) | (138) | (286) | |||||||||||||||||||
Stock based compensation | 6 | 4 | 25 | 13 | |||||||||||||||||||
Interest expense | 151 | 154 | 481 | 379 | |||||||||||||||||||
Adjusted EBITDA | $ | (269) | $ | 13 | $ | (605) | $ | (447) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
Reconciliation of net loss to Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net loss | $ | (468) | $ | (1,707) | $ | (3,419) | $ | (6,492) | |||||||||||||||
Depreciation, amortization and accretion expense | 1,647 | 2,638 | 5,915 | 8,381 | |||||||||||||||||||
Losses (gains) on disposal of assets, net | 15 | (47) | (675) | (2,020) | |||||||||||||||||||
Impairment of goodwill | 1,810 | — | 1,810 | — | |||||||||||||||||||
Stock based compensation | 13 | 14 | 66 | 43 | |||||||||||||||||||
Interest expense, net | 187 | 318 | 594 | 670 | |||||||||||||||||||
Other (income) expense, net | (2,734) | (337) | (2,327) | 128 | |||||||||||||||||||
Provision for income taxes | 57 | 417 | 595 | 1,264 | |||||||||||||||||||
Adjusted EBITDA | $ | 527 | $ | 1,296 | $ | 2,559 | $ | 1,974 |
September 30, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
Cash and cash equivalents | $ | 10,527 | $ | 17,282 | |||||||
Revolving credit facility borrowing base | 96,430 | 119,756 | |||||||||
Less current and long-term debt | (69,029) | (83,520) | |||||||||
Less available borrowing capacity reserve | (10,000) | (10,000) | |||||||||
Less letter of credit facilities (insurance programs) | (2,800) | (2,800) | |||||||||
Less letter of credit facilities (environmental remediation) | (3,569) | (3,694) | |||||||||
Net working capital (less cash and current portion of long-term debt)(a) | 339,328 | 325,719 | |||||||||
Total | $ | 360,887 | $ | 362,743 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (7,657) | $ | (5,430) | $ | 24,951 | $ | (6,066) | |||||||||||||||
Net cash provided by (used in) investing activities | 2,048 | (3,918) | (7,685) | (440) | |||||||||||||||||||
Net cash provided by (used in) financing activities | 7,330 | 7,331 | (23,993) | 7,388 | |||||||||||||||||||
Effect of foreign exchange rate on cash | (44) | (96) | (28) | (164) | |||||||||||||||||||
Net change in cash | $ | 1,677 | $ | (2,113) | $ | (6,755) | $ | 718 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Well completion services(a) | $ | 4,651 | $ | 4,747 | 14,762 | 8,048 | |||||||||||||||||
Infrastructure services(b) | 69 | 225 | $ | 344 | $ | 823 | |||||||||||||||||
Natural sand proppant services(c) | — | 34 | — | 34 | |||||||||||||||||||
Drilling services(c) | 105 | 33 | 111 | 47 | |||||||||||||||||||
Other(d) | 65 | 53 | 68 | 275 | |||||||||||||||||||
Eliminations | (165) | 38 | (20) | (128) | |||||||||||||||||||
Total capital expenditures | $ | 4,725 | $ | 5,130 | $ | 15,265 | $ | 9,099 |
Incorporated By Reference | |||||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Commission File No. | Filing Date | Exhibit No. | Filed Herewith | Furnished Herewith | ||||||||||||||||||||||||||||||||||
8-K | 001-37917 | 11/15/2016 | 3.1 | ||||||||||||||||||||||||||||||||||||||
8-K | 001-37917 | 11/15/2016 | 3.2 | ||||||||||||||||||||||||||||||||||||||
8-K | 001-37917 | 6/9/2020 | 3.1 | ||||||||||||||||||||||||||||||||||||||
S-1/A | 333-213504 | 10/3/2016 | 4.1 | ||||||||||||||||||||||||||||||||||||||
8-K | 001-37917 | 11/15/2016 | 4.1 | ||||||||||||||||||||||||||||||||||||||
8-K | 001-37917 | 10/19/2023 | 10.1 | ||||||||||||||||||||||||||||||||||||||
8-K | 001-37917 | 10/19/2023 | 10.2 | ||||||||||||||||||||||||||||||||||||||
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104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X |
MAMMOTH ENERGY SERVICES, INC. | |||||||||||||||||
Date: | November 9, 2023 | By: | /s/ Arty Straehla | ||||||||||||||
Arty Straehla | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||
Date: | November 9, 2023 | By: | /s/ Mark Layton | ||||||||||||||
Mark Layton | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
MAMMOTH ENERGY SERVICES, INC. | |||||||||||
By: | /s/ Arty Straehla | ||||||||||
Arty Straehla | |||||||||||
Chief Executive Officer | |||||||||||
November 9, 2023 | |||||||||||
MAMMOTH ENERGY SERVICES, INC. | |||||||||||
By: | /s/ Mark Layton | ||||||||||
Mark Layton | |||||||||||
Chief Financial Officer | |||||||||||
November 9, 2023 | |||||||||||
MAMMOTH ENERGY SERVICES, INC. | |||||||||||
By: | /s/ Arty Straehla | ||||||||||
Arty Straehla | |||||||||||
Chief Executive Officer | |||||||||||
November 9, 2023 | |||||||||||
MAMMOTH ENERGY SERVICES, INC. | |||||||||||
By: | /s/ Mark Layton | ||||||||||
Mark Layton | |||||||||||
Chief Financial Officer | |||||||||||
November 9, 2023 | |||||||||||
Mine(a) | Section 104 S&S Citations(#) | Section104(b)Orders (#) | Section104(d)Citations and Orders(#) | Section 110(b)(2) Violations(#) | Section107(a)Orders (#) | Proposed Assessments(b)($, amounts in dollars) | Mining Related Fatalities (#) | ||||||||||||||||
Taylor, WI | — | — | — | — | — | $ | — | — | |||||||||||||||
Menomonie, WI | — | — | — | — | — | $ | — | — | |||||||||||||||
New Auburn, WI | — | — | — | — | — | $ | — | — |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 47,941,652 | 47,312,270 |
Common stock, shares, outstanding (in shares) | 47,941,652 | 47,312,270 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Foreign currency translation adjustment, tax | $ 0 | $ (215) | $ 0 | $ (215) |
Products | ||||
Cost of revenue, depreciation, depletion, amortization and accretion | 2,836 | 2,863 | 6,395 | 6,711 |
Nonrelated Party | Services | ||||
Cost of revenue, depreciation, depletion, amortization and accretion | $ 8,394 | $ 12,968 | $ 30,426 | $ 43,727 |
Organization and Nature of Business |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Mammoth Energy Services, Inc. (“Mammoth Inc.”, “Mammoth” or the “Company”), together with its subsidiaries, is an integrated, growth-oriented company serving both the oil and gas and the electric utility industries in North America and US territories. Mammoth Inc.’s infrastructure division provides engineering, design, construction, upgrade, maintenance and repair services to various public and private owned utilities. Its oilfield services division provides a diversified set of services to the exploration and production industry including well completion, natural sand and proppant and drilling services. Additionally, the Company provides aviation services, equipment rentals, remote accommodation services and equipment manufacturing. The Company was incorporated in Delaware in June 2016. Operations The Company’s well completion services include equipment and personnel used in connection with the completion and early production of oil and natural gas wells. The Company’s infrastructure services include engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry as well as repair and restoration services in response to storms and other disasters. The Company’s natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry. The Company’s drilling services provide drilling rigs and directional tools for both vertical and horizontal drilling of oil and natural gas wells. The Company also provides other services, including aviation, equipment rentals, remote accommodations and equipment manufacturing. The Company’s operations are concentrated in North America. The Company operates its oil and natural gas businesses in the Permian Basin, the Utica Shale, the Eagle Ford Shale, the Marcellus Shale, the Granite Wash, the SCOOP, the STACK, the Cana-Woodford Shale, the Cleveland Sand and the oil sands located in Northern Alberta, Canada. The Company’s oil and natural gas business depends in large part on the conditions in the oil and natural gas industry and, specifically, on the amount of capital spending by its customers. Any prolonged increase or decrease in oil and natural gas prices affects the levels of exploration, development and production activity, as well as the entire health of the oil and natural gas industry. Decreases in the commodity prices for oil and natural gas would have a material adverse effect on the Company’s results of operations and financial condition. During the periods presented in this report, the Company provided its infrastructure services primarily in the northeastern, southwestern, midwestern and western portions of the United States. The Company’s infrastructure business depends on infrastructure spending on maintenance, upgrade, expansion and repair and restoration. Any prolonged decrease in spending by electric utility companies, delays or reductions in government appropriations or the failure of customers to pay their receivables could have a material adverse effect on the Company’s results of operations and financial condition.
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Basis of Presentation and Significant Accounting Policies |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary. See Note 11. Variable Interest Entity to our unaudited condensed consolidated financial statements included elsewhere in this report for additional information regarding these entities. All material intercompany accounts and transactions have been eliminated. This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K. Accounts Receivable Accounts receivable include amounts due from customers for services performed or goods sold. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer’s risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Most areas in the continental United States in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. Interest on delinquent accounts receivable is recognized in other income when chargeable and collectability is reasonably assured. During the period October 2017 through March 2019, the Company provided infrastructure services in Puerto Rico under master services agreements entered into by Cobra Acquisitions LLC (“Cobra”), one of the Company’s subsidiaries, with the Puerto Rico Electric Power Authority (“PREPA”) to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria. During the three and nine months ended September 30, 2023 and the three and nine months ended September 30, 2022, the Company charged interest on delinquent accounts receivable pursuant to the terms of its agreements with PREPA totaling $11.4 million, $33.9 million, $10.5 million and $30.5 million, respectively. These amounts are included in “other income, net” on the unaudited condensed consolidated statements of comprehensive (loss) income. Included in “accounts receivable, net” on the unaudited condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022 were interest charges of $186.0 million and $152.0 million, respectively. The Company regularly reviews receivables and provides for expected losses through an allowance for expected credit losses. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for expected credit losses may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for expected credit losses once a final determination is made regarding their collectability. Following is a roll forward of the changes in our allowance for expected credit losses for the year ended December 31, 2022 and the nine months ended September 30, 2023 (in thousands):
During the nine months ended September 30, 2023 and 2022, the Company has made specific reserves consistent with Company policy which resulted in nominal additions to allowance for expected credit losses. These additions were charged to credit loss expense based on the factors described above. PREPA As of September 30, 2023, PREPA owed Cobra approximately $213.4 million for services performed, excluding $186.0 million of interest charged on these delinquent balances. PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the U.S. District Court for the District of Puerto Rico. As a result, PREPA’s ability to meet its payment obligations is largely dependent upon funding from the Federal Emergency Management Agency (“FEMA”) or other sources. On September 30, 2019, Cobra filed a motion with the U.S. District Court for the District of Puerto Rico seeking recovery of the amounts owed to Cobra by PREPA, which motion was stayed by the Court. On March 25, 2020, Cobra filed an urgent motion to modify the stay order and allow the recovery of approximately $61.7 million in claims related to a tax gross-up provision contained in the emergency master service agreement, as amended, that was entered into with PREPA on October 19, 2017. This emergency motion was denied on June 3, 2020 and the Court extended the stay of our motion. On December 9, 2020, the Court again extended the stay of our motion and directed PREPA to file a status report by June 7, 2021. On April 6, 2021, Cobra filed a motion to lift the stay order. Following this filing, PREPA initiated discussion with Cobra, which resulted in PREPA and Cobra filing a joint motion to adjourn all deadlines relative to the April 6, 2021 motion until the June 16, 2021 omnibus hearing as a result of PREPA’s understanding that FEMA would be releasing a report in the near future relating to the emergency master service agreement between PREPA and Cobra that was executed on October 19, 2017. The joint motion was granted by the Court on April 14, 2021. On May 26, 2021, FEMA issued a Determination Memorandum related to the first contract between Cobra and PREPA in which, among other things, FEMA raised two contract compliance issues and, as a result, concluded that approximately $47 million in costs were not authorized costs under the contract. On June 14, 2021, the Court issued an order adjourning Cobra’s motion to lift the stay order to a hearing on August 4, 2021 and directing Cobra and PREPA to meet and confer in good faith concerning, among other things, (i) the May 26, 2021 Determination Memorandum issued by FEMA and (ii) whether and when a second determination memorandum is expected. The parties were further directed to file an additional status report, which was filed on July 20, 2021. On July 23, 2021, with the aid of Mammoth, PREPA filed an appeal of the entire $47 million that FEMA de-obligated in the May 26, 2021 Determination Memorandum. FEMA approved the appeal in part and denied the appeal in part. FEMA found that staffing costs of $24.4 million are eligible for funding. On August 4, 2021, the Court denied Cobra’s April 6, 2021 motion to lift the stay order, extended the stay of our motion seeking recovery of amounts owed to Cobra and directed the parties to file an additional joint status report, which was filed on January 22, 2022. On January 26, 2022, the Court extended the stay and directed the parties to file a further status report by July 25, 2022. On June 7, 2022, Cobra filed a motion to lift the stay order. On June 29, 2022 the Court denied Cobra’s motion and extended the stay to January 2023. On November 21, 2022, FEMA issued a Determination Memorandum related to the 100% federal funded portion of the second contract between Cobra and PREPA in which FEMA concluded that approximately $5.6 million in costs were not authorized costs under the contract. On December 21, 2022, FEMA issued a Determination Memorandum related to the 90% federal cost share portion of the second contract between Cobra and PREPA in which FEMA concluded that approximately $68.1 million in costs were not authorized costs under the contract. PREPA has filed first-level administrative appeals of the November 21, 2022 and December 21, 2022 Determination Memorandums. On January 7, 2023, Cobra and PREPA filed a joint status report with the Court, in which PREPA requested that the Court continue the stay through July 31, 2023 and Cobra requested that the stay be lifted. On January 18, 2023, the Court entered an order extending the stay and directing the parties to file a further status report addressing (i) the status of any administrative appeals in connection with the November and December determination memorandums regarding the second contract, (ii) the status of the criminal case against the former Cobra president and the FEMA official that concluded in December 2022, and (iii) a summary of the outstanding and unpaid amounts arising from the first and second contracts and whether PREPA disputes Cobra’s entitlement to these amounts with the Court by July 31, 2023. On January 20, 2023, Cobra submitted a certified claim for approximately $379 million to FEMA pursuant to the federal Contract Disputes Act. On February 1, 2023, FEMA notified Cobra that it had reviewed the claim and determined that no contract, expressed or implied, exists between FEMA and Cobra. On March 29, 2023, Cobra filed a notice of appeal with the Civilian Board of Contract Appeals related to the certified claim submitted in January 2023. On April 25, 2023, FEMA filed a motion to dismiss Cobra’s appeal alleging lack of jurisdiction. On March 27, 2023, Cobra was notified that FEMA had approved $233 million in Cobra invoices related to the December 21, 2022 Determination Memorandum. The 90% federal cost share of this approved amount was $210 million, which was obligated and made available for draw down on March 27, 2023. Of this $210 million, approximately $99 million has been represented by both PREPA and FEMA as intended to pay Cobra for outstanding invoices and the remaining $111 million is a reimbursement to PREPA for payments already made on Cobra invoices. On May 16, 2023, Cobra filed a motion to lift the stay order. In a June 8, 2023 hearing, the Court ordered PREPA to provide Cobra a detailed report on the status of their review of the invoices that make up the aforementioned $99 million. On June 14, 2023, PREPA paid Cobra approximately $10.8 million, all of which was used to reduce outstanding borrowings under the Company's then existing revolving credit facility, as required under the terms thereof. Additionally, on June 14, 2023, PREPA filed a report noting a portion of the approved, but unpaid invoices would be submitted to COR3 within two weeks of the filing and the remainder of the invoices would be submitted to COR3 within four weeks of the filing. Following the passage of the two-week and four-week periods contained in the June 14, 2023 report, Cobra filed an informative motion with the Court regarding the passage of the respective periods and PREPA’s failure to meet the deadlines. The Court ordered PREPA to respond to Cobra’s informative motion, which PREPA did on July 21, 2023. In this Court ordered response, PREPA informed the Court that an additional $8.4 million of invoices had been submitted for payment and that $72 million in FEMA approved costs were awaiting engineer certification. On August 2, 2023, following submission of a joint status report by Cobra and FEMA on July 31, 2023, in which, among other things, PREPA requested the stay be continued and Cobra requested the stay be lifted, the Court entered an order continuing the stay until October 31, 2023 and requiring another joint status report be filed on October 16, 2023. On August 22, 2023, PREPA paid Cobra approximately $2.0 million, all of which was used to reduce outstanding borrowings under the Company's then existing revolving credit facility. On August 30, 2023, Cobra filed an informative motion with the Court regarding the status of the approved, but unpaid invoices. The Court ordered PREPA to respond to Cobra’s informative motion, which PREPA did on September 18, 2023. In this Court ordered response, PREPA informed the Court that the approved, but unpaid invoices were in the process of being entered into PREPA’s system for payment. On September 22, 2023 and October 10, 2023, PREPA made payments to Cobra of approximately $0.8 million and $5.7 million, respectively, all of which was used to reduce outstanding borrowings under the Company’s then existing revolving credit facility, which the Company refinanced on October 16, 2023. See Note 10. Debt—New Revolving Credit Facility and New Term Credit Facility. On October 16, 2023 and October 25, 2023, PREPA made additional payments to Cobra of approximately $1.7 million and $1.2 million. Also on October 16, 2023, pursuant to Court’s prior order, the parties submitted a further joint status report. In the joint status report, PREPA informed the Court that, among other things, it intended to process and submit to COR3 for reimbursement the remaining approximately $81 million in approved, but unpaid invoices. In addition, the parties informed the Court that the parties were engaged in mediation to resolve open disputes with respect to other unpaid invoices. On October 19, 2023, the Court entered an order continuing the stay through the earlier of January 31, 2024, and the termination of the mediation, directing the parties to file a further status report (i) addressing the status of each approved, but unpaid invoice that has not been submitted to COR3 and the reason(s) for the delay in submission of such invoices, (ii) providing any available information concerning the projected timing of payments of the approved, but unpaid invoices and (iii) proposing any litigation schedule that the parties believe to be necessary with respect to the approved, but unpaid invoices with the Court by December 1, 2023, and if the disputes have not been resolved through payment or mediation by January 15, 2024, directed the parties to file a status report addressing (i) the status of any administrative appeals in connection with the November 2022 and December 2022 Determination Memorandums, (ii) a summary of the outstanding unpaid amounts and (iii) whether the parties are actively engaged in mediation to resolve the outstanding issues by January 16, 2024. The Company believes all amounts charged to PREPA, including interest charged on delinquent accounts receivable, were in accordance with the terms of the contracts. Further, there have been multiple reviews prepared by or on behalf of FEMA that have concluded that the amounts Cobra charged PREPA were reasonable, that PREPA adhered to Puerto Rican legal statutes regarding emergency situations, and that PREPA engaged in a reasonable procurement process. The Company believes these receivables are collectible and no allowance was deemed necessary at September 30, 2023 or December 31, 2022. However, in the event PREPA (i) does not have or does not obtain the funds necessary to satisfy its obligations to Cobra under the contracts, (ii) obtains the necessary funds but refuses to pay the remaining amounts owed to the Company or (iii) otherwise does not pay amounts owed to the Company, the receivable may not be collectible. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. Following is a summary of our significant customers based on percentages of total accounts receivable balances at September 30, 2023 and December 31, 2022 and percentages of total revenues derived for the three and nine months ended September 30, 2023 and 2022:
a.Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company’s infrastructure services segment. Accounts receivable for Customer A also includes receivables due for interest charged on delinquent accounts receivable. b.Customer B is a third-party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company’s well completion services segment. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, trade payables, amounts receivable or payable to related parties and debt. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. The fair value of debt approximates its carrying value because the cost of borrowing fluctuates based upon market conditions.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue The Company’s primary revenue streams include infrastructure services, well completion services, natural sand proppant services, drilling services and other services, which includes aviation, equipment rentals, remote accommodations and equipment manufacturing. See Note 20 for the Company’s revenue disaggregated by type. Certain of the Company’s customer contracts include provisions entitling the Company to a termination penalty when the customer invokes its contractual right to terminate prior to the contract’s nominal end date. The termination penalties in the customer contracts vary, but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification in the period in which the customer invokes the termination provision. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. As of the modification date, the Company updates its estimate of the transaction price using the expected value method, subject to constraints, and recognizes the amount over the remaining performance period. Well Completion Services Well completion services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for well completion services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Generally, revenue is recognized over time upon the completion of each segment of work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods and services are consumed. Infrastructure Services Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal. Certain of the Company’s sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer’s inability to take delivery of excess volumes. The Company did not recognize any shortfall revenue during the three and nine months ended September 30, 2023 and did not have any deferred revenue related to shortfall payments. The Company recognized shortfall revenue totaling $0.5 million and $3.1 million during the three and nine months ended September 30, 2022, respectively. In certain of the Company’s sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities. Drilling Services Contract drilling services were provided under daywork contracts. Directional drilling services, including motor rentals, are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs were recognized over the days of actual drilling. As a result of market conditions, the Company temporarily shut down its contract land drilling operations beginning in December 2019 and rig hauling operations beginning in April 2020. Other Services The Company also provided aviation, equipment rentals, remote accommodations and equipment manufacturing, which are reported under other services. The Company’s other services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation. Contract Balances Following is a rollforward of the Company’s contract liabilities (in thousands):
The Company did not have any contract assets as of September 30, 2023 or December 31, 2022. Performance Obligations Revenue recognized in the current period from performance obligations satisfied in previous periods was a nominal amount for the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023, the Company had unsatisfied performance obligations totaling $13.4 million, which will be recognized over the next 16 months.
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Divestitures |
9 Months Ended |
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Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On July 13, 2023, the Company sold all of the equity interest in its subsidiary Air Rescue Systems Corporation ("ARS") for $3.3 million in cash plus $0.3 million to be paid one year after closing if certain conditions are met. The Company recognized a gain of $2.1 million on the sale, which is included in “other income, net” on the unaudited condensed consolidated statements of comprehensive (loss) income. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | InventoriesInventories consist of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or net realizable value on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage, future utility, obsolescence and other factors. A summary of the Company’s inventories is shown below (in thousands):
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment include the following (in thousands):
a. Included in Buildings at each of September 30, 2023 and December 31, 2022 are costs of $7.6 million related to assets under operating leases. b. Included in Other property and equipment are costs of $4.4 million and $6.0 million at September 30, 2023 and December 31, 2022, respectively, related to assets under operating leases. c. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service. d. Includes accumulated depreciation of $7.8 million and $8.0 million at September 30, 2023 and December 31, 2022, respectively, related to assets under operating leases. Disposals Proceeds from customers for horizontal and directional drilling services equipment damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the unaudited condensed consolidated statements of cash flows. For the three and nine months ended September 30, 2023 and 2022, proceeds from the sale of equipment damaged or lost down-hole were $0.4 million, $0.4 million, a nominal amount, and $0.6 million, respectively, and gains from the sale of equipment damaged or lost down-hole were $0.3 million, $0.3 million, $0.1 million, and $0.6 million, respectively. Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “gains on disposal of assets, net” on the unaudited condensed consolidated statements of comprehensive (loss) income. For the three and nine months ended September 30, 2023 and 2022, proceeds from the sale of equipment were $3.1 million, $4.0 million, $0.8 million and $8.0 million, respectively, and gains from the sale or disposal of equipment were $2.4 million, $3.3 million, $0.6 million and $3.7 million, respectively. Depreciation, depletion, amortization and accretion A summary of depreciation, depletion, amortization and accretion expense is below (in thousands):
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Changes in the net carrying amount of goodwill by reporting segment (see Note 20) for the nine months ended September 30, 2023 and year ended December 31, 2022 are presented below (in thousands):
Impairment of Goodwill As a result of the ARS sale, we performed an impairment assessment of our goodwill as of September 30, 2023. Under GAAP, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of one or more of its reporting units is greater than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, there is no need to perform any further testing. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded based on that difference. Based on the qualitative assessment, the Company concluded that it was more likely than not that the carrying value of the Aviation reporting unit was greater than its fair value at September 30, 2023. To determine fair value of the Aviation reporting unit at September 30, 2023, the Company used the income approach. The income approach estimates the fair value based on anticipated cash flows that are discounted using a weighted average cost of capital. As a result, the Company impaired goodwill associated with Cobra Aviation, resulting in a $1.8 million impairment charge for the three and nine months ended September 30, 2023. Intangible Assets The Company had the following finite lived intangible assets recorded (in thousands):
Amortization expense for intangible assets was $0.2 million and $0.6 million for each of the three and nine months ended September 30, 2023 and 2022, respectively. The original life of trade names is 10 years as of September 30, 2023 with a remaining average useful life of 1.9 years. Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):
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Equity Method Investment |
9 Months Ended |
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Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method InvestmentOn December 21, 2018, Cobra Aviation Services LLC (“Cobra Aviation”) and Wexford Partners Investment Co. LLC (“Wexford Investment”), a related party, formed a joint venture under the name of Brim Acquisitions LLC (“Brim Acquisitions”) to acquire all outstanding equity interest in Brim Equipment Leasing, Inc. (“Brim Equipment”) for a total purchase price of approximately $2.0 million. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Brim Acquisitions, through Brim Equipment, owns three commercial helicopters and leases five commercial helicopters for operations, which it uses to provide a variety of services, including short haul, aerial ignition, hoist operations, aerial photography, fire suppression, construction services, animal/capture/survey, search and rescue, airborne law enforcement, power line construction, precision long line operations, pipeline construction and survey, mineral and seismic exploration, and aerial seeding and fertilization.The Company uses the equity method of accounting to account for its investment in Brim Acquisitions, which had a carrying value of approximately $3.8 million and $3.5 million at September 30, 2023 and December 31, 2022, respectively. The investment is included in “other non-current assets” on the unaudited condensed consolidated balance sheets. The Company recorded equity method adjustments to its investment of $0.7 million and $0.3 million for the three and nine months ended September 30, 2023, respectively, and $0.3 million and ($0.1) million for the three and nine months ended September 30, 2022, respectively, which is included in “other income, net” on the unaudited condensed consolidated statements of comprehensive (loss) income. |
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities |
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Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities | Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities Accrued expenses and other current liabilities and other long-term liabilities included the following (in thousands):
a.On December 30, 2020, the Company entered into an agreement with First National Capital, LLC (“FNC”) whereby the Company agreed to sell certain assets from its infrastructure segment to FNC for aggregate proceeds of $5.0 million. Concurrent with the sale of assets, the Company entered into a 36 month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.1 million. On June 1, 2021, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $9.5 million and entered into a 42-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.2 million. On June 1, 2022, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $4.6 million and entered into a 42-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.1 million. Under the agreements, the Company has the option to purchase the assets at the end of the lease terms. The Company recorded liabilities for the proceeds received and will continue to depreciate the assets. The Company has imputed an interest rate so that the carrying amount of the financial liabilities will be the expected repurchase price at the end of the initial lease terms. b.Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year. As of September 30, 2023, the applicable interest rates associated with financed insurance premiums ranged from 5.13% to 6.75%. As of December 31, 2022, the applicable interest rates associated with financed insurance premiums ranged from 1.95% to 5.13%. c.In December 2022, the Company entered into a 42 month financing arrangement with FNC for the purchase of seven new pressure pumping units for an aggregate value of $9.7 million. Under this arrangement, the Company has agreed to make monthly principal and interest payments totaling $0.3 million over the term of the agreement. This note is secured by the seven pressure pumping units and bears interest at an imputed rate of approximately 15.0%.
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Debt |
9 Months Ended |
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Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt PNC Revolving Credit Facility On October 19, 2018, Mammoth Inc. and certain of its direct and indirect subsidiaries, as borrowers, entered into an amended and restated revolving credit and security agreement with the lenders party thereto and PNC Bank, National Association, as a lender and as administrative agent for the lenders, as subsequently further amended (the “existing revolving credit facility”). As of September 30, 2023, the applicable financial covenants under the existing revolving credit facility were as follows: • the fixed charge coverage ratio was 1.1 to 1.0; and • the minimum excess availability covenant was $10.0 million. The Company was in compliance with the applicable financial covenants under its revolving credit facility in effect as of September 30, 2023 and December 31, 2022. At September 30, 2023, there were outstanding borrowings under the existing revolving credit facility of $69.0 million, the borrowing base was $96.4 million and there was $11.0 million of available borrowing capacity under the facility, after giving effect to $6.4 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. At December 31, 2022, there were outstanding borrowings under the existing revolving credit facility of $83.5 million, the borrowing base was $119.8 million and there was $19.7 million of borrowing capacity under the facility, after giving effect to $6.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. New Revolving Credit Facility and New Term Credit Facility On October 16, 2023, the Company entered into the new revolving credit facility and the new term credit facility (each as defined below), which refinanced in full the Company’s indebtedness outstanding under the existing revolving credit facility. On October 16, 2023, the Company, as borrower, and certain of its direct and indirect subsidiaries, as guarantors, entered into a revolving credit agreement with the lenders party thereto and Fifth Third Bank, National Association, as a lender and as administrative agent for the lenders (“Fifth Third”), as may be subsequently amended (the “new revolving credit facility”). The new revolving credit facility provides for revolving commitments in an aggregate amount of up to $75 million. Borrowings under the new revolving credit facility are secured by the Company's assets, inclusive of the subsidiary companies, and are subject to a borrowing base calculation prepared monthly which includes a requirement to maintain certain reserves as specified in the new revolving credit facility. The new revolving credit facility also contains various affirmative and restrictive covenants. Interest under the new revolving credit facility equals the Tranche Rate (as defined in the new revolving credit facility) plus (i) 1.75%, if the Average Excess Availability Percentage (as defined in the new revolving credit facility) is greater than 66 2/3%, (ii) 2.00% if the Average Excess Availability Percentage is greater than 33 1/3% and less than or equal to 66 2/3%, and (iii) 2.25% if the Average Excess Availability Percentage is less than or equal to 33 1/3%. As of October 16, 2023, the financial covenant under the new revolving credit facility was the fixed coverage ratio of 1.0 to 1.0 which applies only during a Financial Covenant Period (as defined in the new revolving credit facility). On October 16, 2023, the Company, as borrower, and certain of its direct and indirect subsidiaries, as guarantors, also entered into a loan and security agreement with the lenders party thereto and Wexford Capital LP, an affiliate of the Company, as administrative agent for the lenders (“Wexford”), as may be subsequently amended (the “new term credit facility”). The new term credit was approved by the audit committee of the Company’s board of directors, consisting entirely of independent directors, as a transaction with a related party. The new term credit facility provides for term commitments in an aggregate amount equal to $45 million. Borrowings under the new term credit facility are secured by the Company’s assets, inclusive of the subsidiary companies. The new term credit facility also contains various affirmative and restrictive covenants. Interest under the new term credit facility equals the SOFR Interest Rate (as defined in the new term credit facility) plus 7.50%, as such margin may be increased pursuant to the terms of the new term credit facility; provided that the Company may elect to pay all or a portion of the accrued interest due with respect to any Interest Period (as defined in the new term credit facility) ending on or before April 16, 2025, in kind by adding such accrued interest to the principal amount of the outstanding loans thereunder. In particular, under the new term credit facility, the Company is required, among other things, to mandatorily remit to Wexford up to 50% of all amounts that constitute PREPA Claim Proceeds, as such term is defined in the new term credit facility, which will be used to reduce outstanding borrowings under the new term credit facility, as required under the terms thereof. At October 16, 2023, there were outstanding borrowings under (i) the new revolving credit facility of approximately $28.1 million and the borrowing base was approximately $35.1 million, leaving $7.0 million for future borrowings (after giving effect to the requirement to maintain the reserves specified in the new revolving credit facility out of the available borrowing capacity) and (ii) the new term credit facility of $45 million. If an event of default occurs under the new revolving credit facility or the new term credit facility, as applicable, and remains uncured, it could have a material adverse effect on the Company’s business, financial condition, liquidity and results of operations. The lenders, as applicable, (i) would not be required to lend any additional amounts to the Company, (ii) could elect to increase the interest rate by (x) 200 basis points in connection with an event of default under the new revolving credit facility or (y) 300 basis points with respect to an event of default under the new term credit facility, (iii) could elect to declare all outstanding borrowings, together with accrued and unpaid interest and fees, to be due and payable, (iv) may have the ability to require the Company to apply all of its available cash to repay outstanding borrowings, and (v) may foreclose on substantially all of the Company’s assets. The new revolving credit facility is currently scheduled to mature on the earlier of (x) July 17, 2028, unless the indebtedness under the new term credit facility is refinanced in accordance with terms of the intercreditor agreement, and (y) October 16, 2028. The new term credit facility is currently scheduled to mature on October 16, 2028. Aviation Note On November 6, 2020, Leopard and Cobra Aviation entered into a 39 month promissory note agreement with Bank7 (the “Aviation Note”) in an aggregate principal amount of $4.6 million and received net proceeds of $4.5 million. The Aviation Note bore interest at a rate based on the Wall Street Journal Prime Rate plus a margin of 1%. The Aviation Note was paid off on September 30, 2022.
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Variable Interest Entities |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Dire Wolf Energy Services LLC (“Dire Wolf”) and Predator Aviation LLC (“Predator Aviation”), wholly owned subsidiaries of the Company, are party to Voting Trust Agreements with TVPX Aircraft Solutions Inc. (the “Voting Trustee”). Under the Voting Trust Agreements, Dire Wolf transferred 100% of its membership interest in Cobra Aviation and Predator Aviation transferred 100% of its membership interest in Leopard to the respective Voting Trustees in exchange for Voting Trust Certificates. Dire Wolf and Predator Aviation retained the obligation to absorb all expected returns or losses of Cobra Aviation and Leopard. Prior to the transfer of the membership interest to the Voting Trustee, Cobra Aviation was a wholly owned subsidiary of Dire Wolf and Leopard was a wholly owned subsidiary of Predator Aviation. Cobra Aviation owns two helicopters and support equipment and 49% of the equity interest in Brim Acquisitions. Leopard owns one helicopter. Dire Wolf and Predator Aviation entered into the Voting Trust Agreements in order to meet certain registration requirements. Dire Wolf’s and Predator Aviation’s voting rights are not proportional to their respective obligations to absorb expected returns or losses of Cobra Aviation and Leopard, respectively, and all of Cobra Aviation’s and Leopard’s activities are conducted on behalf of Dire Wolf and Predator Aviation, which have disproportionately fewer voting rights; therefore, Cobra Aviation and Leopard meet the criteria of a VIE. Cobra Aviation and Leopard’s operational activities are directed by Dire Wolf’s and Predator Aviation’s officers and Dire Wolf and Predator Aviation have the option to terminate the Voting Trust Agreements at any time. Therefore, the Company, through Dire Wolf and Predator Aviation, is considered the primary beneficiary of the VIEs and consolidates Cobra Aviation and Leopard at September 30, 2023. |
Selling, General and Administrative Expense |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative Expense | Selling, General and Administrative Expense Selling, general and administrative (“SG&A”) expense includes of the following (in thousands):
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Income Taxes |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $9.0 million for the nine months ended September 30, 2023 compared to income tax expense of $11.4 million for the nine months ended September 30, 2022. The Company’s effective tax rates were 76% and 189% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rates for the nine months ended September 30, 2023 and 2022 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico, changes in the valuation allowance and interest and penalties.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessee Accounting The Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Lease expense consisted of the following for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Supplemental balance sheet information related to leases as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
Other supplemental information related to leases for the three and nine months ended September 30, 2023 and 2022 and as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):
Lessor Accounting Certain of the Company’s agreements with its customers for drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. |
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Leases | Leases Lessee Accounting The Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Lease expense consisted of the following for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Supplemental balance sheet information related to leases as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
Other supplemental information related to leases for the three and nine months ended September 30, 2023 and 2022 and as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):
Lessor Accounting Certain of the Company’s agreements with its customers for drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. |
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Leases | Leases Lessee Accounting The Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination of certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Lease expense consisted of the following for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Supplemental balance sheet information related to leases as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
Other supplemental information related to leases for the three and nine months ended September 30, 2023 and 2022 and as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):
Lessor Accounting Certain of the Company’s agreements with its customers for drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. |
(Loss) Earnings Per Share |
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(Loss) Earnings Per Share | (Loss) Earnings Per Share Reconciliations of the components of basic and diluted net (loss) earnings per common share are presented in the table below (in thousands, except per share data):
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Equity Based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Based Compensation | Equity Based Compensation Upon formation of certain operating entities by Wexford and Gulfport Energy Corporation, specified members of management (the “Specified Members”) and certain non-employee members (the “Non-Employee Members”) were granted the right to receive distributions from the operating entities after the contribution member’s unreturned capital balance was recovered (referred to as “Payout” provision). On November 24, 2014, the awards were modified in conjunction with the contribution of the operating entities to Mammoth. These awards were not granted in limited or general partner units. The awards are for interests in the distributable earnings of the members of MEH Sub, Mammoth’s majority equity holder. On the closing date of Mammoth Inc.’s initial public offering (“IPO”), the unreturned capital balance of Mammoth’s majority equity holder was not fully recovered from its sale of common stock in the IPO. As a result, Payout did not occur and no compensation cost was recorded. Payout for the remaining awards is expected to occur as the contributing member’s unreturned capital balance is recovered from additional sales by MEH Sub of its shares of the Company’s common stock or from dividend distributions, which is not considered probable until the event occurs. For the Specified Member awards, the unrecognized amount, which represents the fair value of the award as of the modification dates or grant date, was $5.6 million. For the Company’s Non-Employee Member awards, the unrecognized amount, which represents the fair value of the awards as of the date of adoption of ASU 2018-07 was $18.9 million.Stock Based Compensation The Mammoth Energy Services, Inc. 2016 Incentive Plan, as amended (the “2016 Plan”), authorizes the Company’s Board of Directors or the compensation committee of the Company’s Board of Directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards. There was a maximum of 4.5 million shares of common stock reserved for issuance under the 2016 Plan, of which 0.6 million shares of common stock remain available for future grants under the 2016 Plan as of September 30, 2023.Restricted Stock Units The fair value of restricted stock unit awards was determined based on the fair market value of the Company’s common stock on the date of the grant. This value is amortized over the vesting period. A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below.
As of September 30, 2023, there was $1.1 million of total unrecognized compensation cost related to the unvested restricted stock. The cost is expected to be recognized over a weighted average period of approximately 1.8 years. Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $0.2 million and $1.1 million for the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively.
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Stock Based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Equity Based Compensation Upon formation of certain operating entities by Wexford and Gulfport Energy Corporation, specified members of management (the “Specified Members”) and certain non-employee members (the “Non-Employee Members”) were granted the right to receive distributions from the operating entities after the contribution member’s unreturned capital balance was recovered (referred to as “Payout” provision). On November 24, 2014, the awards were modified in conjunction with the contribution of the operating entities to Mammoth. These awards were not granted in limited or general partner units. The awards are for interests in the distributable earnings of the members of MEH Sub, Mammoth’s majority equity holder. On the closing date of Mammoth Inc.’s initial public offering (“IPO”), the unreturned capital balance of Mammoth’s majority equity holder was not fully recovered from its sale of common stock in the IPO. As a result, Payout did not occur and no compensation cost was recorded. Payout for the remaining awards is expected to occur as the contributing member’s unreturned capital balance is recovered from additional sales by MEH Sub of its shares of the Company’s common stock or from dividend distributions, which is not considered probable until the event occurs. For the Specified Member awards, the unrecognized amount, which represents the fair value of the award as of the modification dates or grant date, was $5.6 million. For the Company’s Non-Employee Member awards, the unrecognized amount, which represents the fair value of the awards as of the date of adoption of ASU 2018-07 was $18.9 million.Stock Based Compensation The Mammoth Energy Services, Inc. 2016 Incentive Plan, as amended (the “2016 Plan”), authorizes the Company’s Board of Directors or the compensation committee of the Company’s Board of Directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards. There was a maximum of 4.5 million shares of common stock reserved for issuance under the 2016 Plan, of which 0.6 million shares of common stock remain available for future grants under the 2016 Plan as of September 30, 2023.Restricted Stock Units The fair value of restricted stock unit awards was determined based on the fair market value of the Company’s common stock on the date of the grant. This value is amortized over the vesting period. A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below.
As of September 30, 2023, there was $1.1 million of total unrecognized compensation cost related to the unvested restricted stock. The cost is expected to be recognized over a weighted average period of approximately 1.8 years. Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $0.2 million and $1.1 million for the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively.
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Transactions between the subsidiaries of the Company, including Panther Drilling Systems LLC (“Panther Drilling”), Cobra Aviation, ARS and Leopard and the following companies are included in Related Party Transactions: Wexford, El Toro Resources LLC (“El Toro”), Elk City Yard LLC (“Elk City Yard”), Double Barrel Downhole Technologies LLC (“DBDHT”), Caliber Investment Group LLC (“Caliber”) and Brim Equipment. Following is a summary of related party transactions (in thousands):
a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. b.Panther provides directional drilling services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement.
a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. b.Caliber, an entity controlled by Wexford, leases office space to the Company. On December 21, 2018, Cobra Aviation acquired all outstanding equity interest in ARS and purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment. Following these transactions, and also on December 21, 2018, Cobra Aviation formed a joint venture with Wexford Investments named Brim Acquisitions to acquire all outstanding equity interests in Brim Equipment. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Wexford Investments is an entity controlled by Wexford, which owns approximately 47% of the Company’s outstanding common stock. Leopard leases a helicopter to Brim Equipment and Cobra Aviation leases the two helicopters purchased as part of these transactions to Brim Equipment under the terms of aircraft lease and management agreements. ARS was subsequently sold to a third party in July 2023. See Note 4 for further discussion.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Commitments From time to time, the Company may enter into agreements with suppliers that contain minimum purchase obligations and agreements to purchase capital equipment. The Company did not have any unconditional purchase obligations as of September 30, 2023. Letters of Credit The Company has various letters of credit that were issued under the Company’s revolving credit agreement which is collateralized by substantially all of the assets of the Company. The letters of credit are categorized below (in thousands):
Insurance The Company has insurance coverage for physical partial loss to its assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. The Company has also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies. At each of September 30, 2023 and December 31, 2022, the workers’ compensation and automobile liability policies require a deductible per occurrence of up to $0.3 million and $0.1 million, respectively. As of September 30, 2023 and December 31, 2022, the workers’ compensation and auto liability policies contained an aggregate stop loss of $5.4 million. The Company establishes liabilities for the unpaid deductible portion of claims incurred based on estimates. As of of September 30, 2023 and December 31, 2022, accrued claims were $1.4 million and $1.5 million, respectively. The Company also has insurance coverage for directors and officers liability. As of September 30, 2023 and December 31, 2022, the directors and officers liability policy had a deductible per occurrence of $1.0 million and an aggregate deductible of $10.0 million. As of September 30, 2023 and December 31, 2022, the Company did not have any accrued claims for directors and officers liability. The Company also self-insures its employee health insurance. The Company has coverage on its self-insurance program in the form of a stop loss of $0.2 million per participant and an aggregate stop-loss of $5.8 million for the calendar year ending December 31, 2022. As of September 30, 2023 and December 31, 2022, accrued claims were $1.4 million and $1.5 million, respectively. These estimates may change in the near term as actual claims continue to develop. Warranty Guarantees Pursuant to certain customer contracts in our infrastructure services segment, the Company warrants equipment and labor performed under the contracts for a specified period following substantial completion of the work. Generally, the warranty is for one year or less. No liabilities were accrued as of September 30, 2023 and December 31, 2022 and no expense was recognized during the nine months ended September 30, 2023 or 2022 related to warranty claims. However, if warranty claims occur, the Company could be required to repair or replace warrantied items, which in most cases are covered by warranties extended from the manufacturer of the equipment. In the event the manufacturer of equipment failed to perform on a warranty obligation or denied a warranty claim made by the Company, the Company could be required to pay for the cost of the repair or replacement. Bonds In the ordinary course of business, the Company is required to provide bid bonds to certain customers in the infrastructure services segment as part of the bidding process. These bonds provide a guarantee to the customer that the Company, if awarded the project, will perform under the terms of the contract. Bid bonds are typically provided for a percentage of the total contract value. Additionally, the Company may be required to provide performance and payment bonds for contractual commitments related to projects in process. These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for expenses or outlays it incurs. As of September 30, 2023 and December 31, 2022, outstanding performance and payment bonds totaled $11.2 million and $8.6 million, respectively. The estimated cost to complete projects secured by the performance and payment bonds totaled $1.7 million as of September 30, 2023. There were $0.6 million in outstanding bid bonds as of September 30, 2023 and no outstanding bid bonds as of December 31, 2022. Litigation As of September 30, 2023, PREPA owed the Company approximately $213.4 million for services performed, excluding $186.0 million of interest charged on these delinquent balances as of September 30, 2023. The Company believes these receivables are collectible. PREPA, however, is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the U.S. District Court for the District of Puerto Rico. As a result, PREPA’s ability to meet its payment obligations is largely dependent upon funding from FEMA or other sources. On September 30, 2019, Cobra filed a motion with the U.S. District Court for the District of Puerto Rico seeking recovery of the amounts owed to Cobra by PREPA, which motion was stayed by the Court. On March 25, 2020, Cobra filed an urgent motion to modify the stay order and allow the recovery of approximately $61.7 million in claims related to a tax gross-up provision contained in the emergency master service agreement, as amended, that was entered into with PREPA on October 19, 2017. This emergency motion was denied on June 3, 2020 and the Court extended the stay of our motion. On December 9, 2020, the Court again extended the stay of our motion and directed PREPA to file a status motion by June 7, 2021. On April 6, 2021, Cobra filed a motion to lift the stay order. Following this filing, PREPA initiated discussion, which resulted in PREPA and Cobra filing a joint motion to adjourn all deadlines relative to the April 6, 2021 motion until the June 16, 2021 omnibus hearing as a result of PREPA’s understanding that FEMA would release a report in the near future relating to the emergency master service agreement between PREPA and Cobra that was executed on October 19, 2017. The joint motion was granted by the Court on April 14, 2021. On May 26, 2021, FEMA issued a Determination Memorandum related to the first contract between Cobra and PREPA in which, among other things, FEMA raised two contract compliance issues and, as a result, concluded that approximately $47 million in costs were not authorized costs under the contract. On June 14, 2021, the Court issued an order adjourning Cobra’s motion to lift the stay order to a hearing on August 4, 2021 and directing Cobra and PREPA to meet and confer in good faith concerning, among other things, (i) the May 26, 2021 Determination Memorandum issued by FEMA and (ii) whether and when a second determination memorandum is expected. The parties were further directed to file an additional status report, which was filed on July 20, 2021. On July 23, 2021, with the aid of Mammoth, PREPA filed an appeal of the entire $47 million that FEMA de-obligated in the May 26, 2021 Determination Memorandum. FEMA approved the appeal in part and denied the appeal in part. FEMA found that staffing costs of $24.4 million are eligible for funding. On August 4, 2021, the Court extended the stay and directed that an additional status report be filed, which was done on January 22, 2022. On January 26, 2022, the Court extended the stay and directed the parties to file a further status report by July 25, 2022. On June 7, 2022, Cobra filed a motion to lift the stay order. On June 29, 2022 the Court denied Cobra’s motion and extended the stay to January 2023. On November 21, 2022, FEMA issued a Determination Memorandum related to the 100% federal funded portion of the second contract between Cobra and PREPA in which FEMA concluded that approximately $5.6 million in costs were not authorized costs under the contract. On December 21, 2022, FEMA issued a Determination Memorandum related to the 90% federal cost share portion of the second contract between Cobra and PREPA in which FEMA concluded that approximately $68.1 million in costs were not authorized costs under the contract. PREPA has filed first-level administrative appeals of the November 21, 2022 and December 21, 2022 Determination Memorandums. On January 7, 2023, Cobra and PREPA filed a joint status report with the Court, in which PREPA requested that the Court continue the stay through July 31, 2023 and Cobra requested that the stay be lifted. On January 18, 2023, the Court entered an order extending the stay and directing the parties to file a further status report addressing (i) the status of any administrative appeals in connection with the November and December determination memorandums regarding the second contract, (ii) the status of the criminal case against the former Cobra president and the FEMA official that concluded in December 2022, and (iii) a summary of the outstanding and unpaid amounts arising from the first and second contracts and whether PREPA disputes Cobra’s entitlement to these amounts with the Court by July 31, 2023. On January 20, 2023, Cobra submitted a certified claim for approximately $379 million to FEMA pursuant to the federal Contract Disputes Act. On February 1, 2023, FEMA notified Cobra that it had reviewed the claim and determined that no contract, expressed or implied, exists between FEMA and Cobra. On March 29, 2023, Cobra filed a notice of appeal with the Civilian Board of Contract Appeals related to the certified claim submitted in January 2023. On April 25, 2023, FEMA filed a motion to dismiss Cobra’s appeal alleging lack of jurisdiction. In the event PREPA (i) does not have or does not obtain the funds necessary to satisfy its obligations to Cobra under the contracts, (ii) obtains the necessary funds but refuses to pay the amounts owed to the Company or (iii) otherwise does not pay amounts owed to the Company, the receivable may not be collectible. On March 27, 2023, Cobra was notified that FEMA had approved $233 million in Cobra invoices related to the December 21, 2022 Determination Memorandum. The 90% federal cost share of this approved amount was $210 million, which was obligated and made available for draw down on March 27, 2023. Of this $210 million, approximately $99 million has been represented by both PREPA and FEMA as intended to pay Cobra for outstanding invoices and the remaining $111 million is a reimbursement to PREPA for payments already made on Cobra invoices. On May 16, 2023, Cobra filed a motion to lift the stay order. In a June 8, 2023 hearing, the Court ordered PREPA to provide Cobra a detailed report on the status of their review of the invoices that make up the aforementioned $99 million. On June 14, 2023, PREPA paid Cobra approximately $10.8 million, all of which was used to reduce outstanding borrowings under the Company's then existing revolving credit facility, as required under the terms thereof. Additionally, on June 14, 2023, PREPA filed a report noting a portion of the approved, but unpaid invoices would be submitted to COR3 within two weeks of the filing and the remainder of the invoices would be submitted to COR3 within four weeks of the filing. Following the passage of the two-week and four-week periods contained in the June 14, 2023 report, Cobra filed an informative motion with the Court regarding the passage of the respective periods and PREPA’s failure to meet the deadlines. The Court ordered PREPA to respond to Cobra’s informative motion, which PREPA did on July 21, 2023. In this Court ordered response, PREPA informed the Court that an additional $8.4 million of invoices had been submitted for payment and that $72 million in FEMA approved costs were awaiting engineer certification. On August 2, 2023, following submission of a joint status report by Cobra and FEMA on July 31, 2023, in which, among other things, PREPA requested the stay be continued and Cobra requested the stay be lifted, the Court entered an order continuing the stay until October 31, 2023 and requiring another joint status report be filed on October 16, 2023. On August 22, 2023, PREPA paid Cobra approximately $2.0 million, all of which was used to reduce outstanding borrowings under the Company's then existing revolving credit facility. On August 30, 2023, Cobra filed an informative motion with the Court regard the status of the approved, but unpaid invoices. The Court ordered PREPA to respond to Cobra’s informative motion, which PREPA did on September 18, 2023. In this Court ordered response, PREPA informed the Court that the approved, but unpaid invoices were in the process of being entered into PREPA’s system for payment. On September 22, 2023 and October 10, 2023, PREPA made payments to Cobra of approximately $0.8 million and $5.7 million, respectively, all of which was used to reduce outstanding borrowings under the Company’s then existing revolving credit facility, which the Company refinanced on October 16, 2023. See Note 10. Debt—New Revolving Credit Facility and New Term Credit Facility. On October 16, 2023 and October 25, 2023, PREPA made additional payments to Cobra of approximately $1.7 million and $1.2 million. Also on October 16, 2023, pursuant to Court’s prior order, the parties submitted a further join status report. In the joint status report, PREPA informed the Court that, among other things, it intended to process and submit to COR3 for reimbursement the remaining approximately $81 million in approved, but unpaid invoices. In addition, the parties informed the Court that the parties were engaged in mediation to resolve open disputes with respect to other unpaid invoices. On October 19, 2023, the Court entered an order continuing the stay through the earlier of January 31, 2024, and the termination of the mediation, directing the parties to file a further status report (i) addressing the status of each approved, but unpaid invoice that has not been submitted to COR3 and the reason(s) for the delay in submission of such invoices, (ii) providing any available information concerning the projected timing of payments of the approved, but unpaid invoices and (iii) proposing any litigation schedule that the parties believe to be necessary with respect to the approved, but unpaid invoices with the Court by December 1, 2023, and if the disputes have not been resolved through payment or mediation by January 15, 2024, directed the parties to file a status report addressing (i) the status of any administrative appeals in connection with the November 2022 and December 2022 Determination Memorandums, (ii) a summary of the outstanding unpaid amounts and (iii) whether the parties are actively engaged in mediation to resolve the outstanding issues by January 16, 2024. On May 13, 2021, Foreman Electric Services, Inc. (“Foreman”) filed a petition against Mammoth Inc. and Cobra in the Oklahoma County District Court (Oklahoma State Court). The petition asserted claims against the Company and Cobra under federal Racketeer Influenced and Corrupt Organizations Act (“RICO”) statutes and certain state-law causes of action. Foreman alleged that it sustained injuries to its business and property in the amount of $250 million due to the Company’s and Cobra’s alleged wrongful interference by means of inducements to a FEMA official. On May 18, 2021, the Company removed this action to the United States District Court for the Western District of Oklahoma and filed a motion to dismiss on July 8, 2021. On July 29, 2021, Foreman voluntarily dismissed the action without prejudice. On December 14, 2021, Foreman re-filed its petition against Mammoth Inc. and Cobra in the Oklahoma County District Court (Oklahoma State Court). On December 16, 2021, the Company again removed this action to the United States District Court for the Western District of Oklahoma. Foreman filed a motion to remand this action back to Oklahoma County District Court, which was granted on May 5, 2022. On September 28, 2023, the Company moved to dismiss the petition and a hearing is scheduled for January 2024. Additionally, on February 6, 2023, Foreman moved to amend a complaint against the former president of Cobra filed in Florida State Court arising from facts similar to those in the pending Oklahoma action to add, as defendants, Arty Straehla and Mark Layton. On September 15, 2023, Streahla and Layton moved to dismiss the complaint, which is currently pending. In a related matter, on January 12, 2022, a Derivative Complaint on behalf of nominal defendant Machine Learning Integration, LLC (“MLI”), which alleges it would have served as a sub-contractor to Foreman in Puerto Rico, was filed against the Company and Cobra in the U.S. District Court for the District of Puerto Rico alleging essentially the same facts as Foreman’s action and asserting violations of federal RICO statutes and certain non-federal claims. MLI alleges it sustained injuries to its business and property in an unspecified amount because the Company’s and Cobra’s wrongful interference by means of inducements to a FEMA official prevented Foreman from obtaining work, and thereby prevented MLI, as Foreman’s subcontractor, from obtaining work. These matters are still in the early stages and at this time, the Company is not able to predict the outcome of these claims or whether they will have a material impact on the Company’s business, financial condition, results of operations or cash flows. The Company is routinely involved in state and local tax audits. During 2015, the State of Ohio assessed taxes on the purchase of equipment the Company believes is exempt under state law. The Company appealed the assessment and a hearing was held in 2017. As a result of the hearing, the Company received a decision from the State of Ohio, which the Company appealed. On February 25, 2022, the Company received an unfavorable decision on the appeal. The Company appealed the decision. On August 2, 2023, the Ohio Supreme court affirmed the ruling in part and reversed the ruling in part. The Company is currently awaiting the final assessment. It is not expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Cobra has been served with ten lawsuits from municipalities in Puerto Rico alleging failure to pay construction excise and volume of business taxes. On November 14, 2022, the Court entered judgment against Cobra in connection with one of the lawsuits ordering payment of approximately $9.0 million. On January 9, 2023, Cobra appealed the judgment and, on March 20, 2023, the Court confirmed the imposition of approximately $8.5 million related to construction excise taxes. On April 10, 2023, Cobra appealed this judgment, which was denied on May 5, 2023. Cobra filed a motion for reconsideration on May 15, 2023, which was denied. Cobra filed a second motion for reconsideration on June 22, 2023 and is currently awaiting a decision. To the extent Cobra receives an unfavorable judgment, the Company believes that any such taxes in the judgment that relate to the Emergency Master Service Agreement with PREPA executed on October 19, 2017, would be reimbursable to Cobra. At this time, the Company is not able to predict the outcome of these matters or whether they will have a material impact on the Company’s business, financial condition, results of operations or cash flows. On April 16, 2019, Christopher Williams, a former employee of Higher Power Electrical, LLC, filed a putative class and collective action complaint titled Christopher Williams, individually and on behalf of all others similarly situated v. Higher Power Electrical, LLC, Cobra Acquisitions LLC, and Cobra Energy LLC in the U.S. District Court for the District of Puerto Rico. On June 24, 2019, the complaint was amended to replace Mr. Williams with Matthew Zeisset as the named plaintiff. The plaintiff alleges the defendant failed to pay overtime wages to a class of workers in compliance with the Fair Labor Standards Act and Puerto Rico law. On August 21, 2019, upon request of the parties, the Court stayed proceedings in the lawsuit and administratively closed the case pending completion of individual arbitration proceedings initiated by Mr. Zeisset and opt-in plaintiffs. Other claimants have subsequently initiated additional individual arbitration proceedings asserting similar claims. During the nine months ended September 30, 2023, the Company agreed to settlements in principle with a portion of the claimants. Arbitrations remain pending for the remaining claimants. The Company will continue to vigorously defend the arbitrations. During the nine months ended September 30, 2023, the Company recognized an estimated liability related to these complaints, which is included in “Accounts payable” in the unaudited condensed consolidated balance sheet at September 30, 2023. The amount required to resolve these matters may ultimately increase or decrease from our estimated amount as the matters progress. On September 10, 2019, the U.S. District Court for the District of Puerto Rico unsealed an indictment that charged the former president of Cobra Acquisitions LLC with conspiracy, wire fraud, false statements and disaster fraud. Two other individuals were also charged in the indictment. The indictment was focused on the interactions between a former FEMA official and the former president of Cobra. Neither the Company nor any of its subsidiaries were charged in the indictment. On May 18, 2022, the former FEMA official and the former president of Cobra each pled guilty to one-count information charging gratuities related to a project that Cobra never bid upon and was never awarded or received any monies for. On December 13, 2022, the Court sentenced the former Cobra president to custody of the Bureau of Prisons for six months and one day, a term of supervised release of six months and one day and a fine of $25,000. The Court sentenced the FEMA official to custody of the Bureau of Prisons for six months and one day, a term of supervised release of six months and a fine of $15,000. The Court also dismissed the indictment against the two defendants. The Company does not expect any additional activity in the criminal proceeding. Given the uncertainty inherent in criminal litigation, however, it is not possible at this time to determine the potential impacts that the sentencings could have on the Company. PREPA has stated in Court filings that it may contend the alleged criminal activity affects Cobra’s entitlement to payment under its contracts with PREPA. It is unclear what PREPA’s position will be going forward. Subsequent to the indictment, Cobra received a civil investigative demand (“CID”) from the United States Department of Justice (“DOJ”), which requests certain documents and answers to specific interrogatories relevant to an ongoing investigation it is conducting. The aforementioned DOJ investigation is in connection with the issues raised in the criminal matter. Cobra is cooperating with the DOJ and is not able to predict the outcome of this investigation or if it will have a material impact on Cobra’s or the Company’s business, financial condition, results of operations or cash flows. With regard to the previously disclosed SEC investigation, on July 6, 2022, the SEC sent a letter saying that it had concluded its investigation as to the Company and that based on information the SEC has as of this date, it does not intend to recommend an enforcement action against the Company. On September 12, 2019, AL Global Services, LLC (“Alpha Lobo”) filed a second amended third-party petition against the Company in an action styled Jim Jorrie v. Craig Charles, Julian Calderas, Jr., and AL Global Services, LLC v. Jim Jorrie v. Cobra Acquisitions LLC v. ESPADA Logistics & Security Group, LLC, ESPADA Caribbean LLC, Arty Straehla, Ken Kinsey, Jennifer Jorrie, and Mammoth Energy Services, Inc., in the 57th Judicial District in Bexar County, Texas. The petition alleges that the Company should be held vicariously liable under alter ego, agency and respondeat superior theories for Alpha Lobo’s alleged claims against Cobra and Arty Straehla for aiding and abetting, knowing participation in and conspiracy to breach fiduciary duty in connection with Cobra’s execution of an agreement with ESPADA Caribbean, LLC for security services related to Cobra’s work in Puerto Rico. The trial court granted Cobra, Mammoth and Straehla’s motion to compel Alpha Lobo’s claims against them to arbitration. However, Alpha Lobo has not yet brought its claims in arbitration. Instead, on March 22, 2022, Alpha Lobo filed a Petition for Writ of Mandamus in the Fourth Court of Appeals, San Antonio, Texas, seeking to overturn the order compelling arbitration. The appellate court denied the Mandamus on May 4, 2022, without requesting a response. On June 28, 2022, Alpha Lobo filed a Petition for Writ of Mandamus in the Texas Supreme Court, seeking to overturn the order compelling arbitration. The Texas Supreme Court denied the Mandamus on August 5, 2022, without requesting a response. The Company believes these claims are without merit and will vigorously defend the action. However, at this time, the Company is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s business, financial condition, results of operations or cash flows. Additionally, there was a parallel arbitration proceeding in which certain Defendants were seeking a declaratory judgment regarding Cobra’s rights to terminate the Alpha Lobo contract and enter into a new contract with a third-party. On June 24, 2021, the arbitration panel ruled in favor of Cobra. The Company is involved in various other legal proceedings in the ordinary course of business. Although the Company cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material impact on the Company’s business, financial condition, results of operations or cash flows. Defined Contribution PlanThe Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at their date of hire. The plan allows eligible employees to contribute up to 92% of their annual compensation, not to exceed annual limits established by the federal government. The Company makes discretionary matching contributions of up to 3% of an employee’s compensation and may make additional discretionary contributions for eligible employees. For the nine months ended September 30, 2023 and 2022, the Company paid $1.5 million and $1.4 million, respectively, in contributions to the plan.
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Reporting Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Segments | Reporting Segments As of September 30, 2023, the Company’s revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. The Company’s Chief Executive Officer and Chief Financial Officer comprise the Company’s Chief Operating Decision Maker function (“CODM”). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of operating loss less impairment expense, as well as a qualitative basis, such as nature of the product and service offerings and types of customers. As of September 30, 2023, the Company’s four reportable segments include well completion services (“Well Completion”), infrastructure services (“Infrastructure”), natural sand proppant services (“Sand”) and drilling services (“Drilling”). The Well Completion segment provides hydraulic fracturing and water transfer services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania and the mid-continent region. The Infrastructure segment provides electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in the northeastern, southwestern, midwestern and western portions of the United States. The Sand segment mines, processes and sells sand for use in hydraulic fracturing. The Sand segment primarily services the Utica Shale, Permian Basin, SCOOP, STACK and Montney Shale in British Columbia and Alberta, Canada. During certain of the periods presented, the Drilling segment provided contract land and directional drilling services primarily in the Permian Basin and mid-continent region. The Company also provided aviation services, equipment rental services, crude oil hauling services, remote accommodation and equipment manufacturing. The businesses that provide these services are distinct operating segments, which the CODM reviews independently when making key operating and resource utilization decisions. None of these operating segments meet the quantitative thresholds of a reporting segment and do not meet the aggregation criteria set forth in ASC 280 Segment Reporting. Therefore, results for these operating segments are included in the column titled “All Other” in the tables below. Additionally, assets for corporate activities, which primarily include cash and cash equivalents, inter-segment accounts receivable, prepaid insurance and certain property and equipment, are included in the All Other column. Although Mammoth Energy Partners LLC, which holds these corporate assets, meets one of the quantitative thresholds of a reporting segment, it does not engage in business activities from which it may earn revenues and its results are not regularly reviewed by the Company’s CODM when making key operating and resource utilization decisions. Therefore, the Company does not include it as a reportable segment. Sales from one segment to another are generally priced at estimated equivalent commercial selling prices. Total revenue and total cost of revenue amounts included in the Eliminations column in the following tables include inter-segment transactions conducted between segments. Receivables due for sales from one segment to another and for corporate allocations to each segment are included in the Eliminations column for total assets in the following tables. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reporting segment are eliminated within each reporting segment. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to September 30, 2023, the Company issued an additional performance and payment bond totaling $2.7 million related to its infrastructure segment. On October 16, 2023, the Company entered into the new revolving credit facility and the new term credit facility, which refinanced in full its indebtedness outstanding under the existing credit facility and terminated such existing credit facility. See Note 10—Debt—New Revolving Credit Facility and New Term Credit Facility for additional information regarding the new revolving credit facility and the new term loan.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net (income) loss | $ (1,088) | $ 7,726 | $ 2,793 | $ (5,388) |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary. See Note 11. Variable Interest Entity to our unaudited condensed consolidated financial statements included elsewhere in this report for additional information regarding these entities. All material intercompany accounts and transactions have been eliminated. This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K.
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Accounts Receivable | Accounts ReceivableAccounts receivable include amounts due from customers for services performed or goods sold. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer’s risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Most areas in the continental United States in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. Interest on delinquent accounts receivable is recognized in other income when chargeable and collectability is reasonably assured.The Company regularly reviews receivables and provides for expected losses through an allowance for expected credit losses. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for expected credit losses may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for expected credit losses once a final determination is made regarding their collectability. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, trade payables, amounts receivable or payable to related parties and debt. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. The fair value of debt approximates its carrying value because the cost of borrowing fluctuates based upon market conditions.
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Revenue | Revenue The Company’s primary revenue streams include infrastructure services, well completion services, natural sand proppant services, drilling services and other services, which includes aviation, equipment rentals, remote accommodations and equipment manufacturing. See Note 20 for the Company’s revenue disaggregated by type. Certain of the Company’s customer contracts include provisions entitling the Company to a termination penalty when the customer invokes its contractual right to terminate prior to the contract’s nominal end date. The termination penalties in the customer contracts vary, but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification in the period in which the customer invokes the termination provision. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. As of the modification date, the Company updates its estimate of the transaction price using the expected value method, subject to constraints, and recognizes the amount over the remaining performance period. Well Completion Services Well completion services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for well completion services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Generally, revenue is recognized over time upon the completion of each segment of work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods and services are consumed. Infrastructure Services Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal. Certain of the Company’s sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer’s inability to take delivery of excess volumes. The Company did not recognize any shortfall revenue during the three and nine months ended September 30, 2023 and did not have any deferred revenue related to shortfall payments. The Company recognized shortfall revenue totaling $0.5 million and $3.1 million during the three and nine months ended September 30, 2022, respectively. In certain of the Company’s sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities. Drilling Services Contract drilling services were provided under daywork contracts. Directional drilling services, including motor rentals, are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs were recognized over the days of actual drilling. As a result of market conditions, the Company temporarily shut down its contract land drilling operations beginning in December 2019 and rig hauling operations beginning in April 2020. Other Services The Company also provided aviation, equipment rentals, remote accommodations and equipment manufacturing, which are reported under other services. The Company’s other services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation.
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Inventories | InventoriesInventories consist of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or net realizable value on an average cost basis. |
Basis of Presentation and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Doubtful Accounts Receivable | Following is a roll forward of the changes in our allowance for expected credit losses for the year ended December 31, 2022 and the nine months ended September 30, 2023 (in thousands):
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Schedule of Concentration of Credit Risk and Significant Customers | Following is a summary of our significant customers based on percentages of total accounts receivable balances at September 30, 2023 and December 31, 2022 and percentages of total revenues derived for the three and nine months ended September 30, 2023 and 2022:
a.Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company’s infrastructure services segment. Accounts receivable for Customer A also includes receivables due for interest charged on delinquent accounts receivable. b.Customer B is a third-party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company’s well completion services segment.
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Revenue (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract Liabilities | Following is a rollforward of the Company’s contract liabilities (in thousands):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | A summary of the Company’s inventories is shown below (in thousands):
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment include the following (in thousands):
a. Included in Buildings at each of September 30, 2023 and December 31, 2022 are costs of $7.6 million related to assets under operating leases. b. Included in Other property and equipment are costs of $4.4 million and $6.0 million at September 30, 2023 and December 31, 2022, respectively, related to assets under operating leases. c. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service. d. Includes accumulated depreciation of $7.8 million and $8.0 million at September 30, 2023 and December 31, 2022, respectively, related to assets under operating leases.
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Schedule of Depreciation, Depletion, Accretion and Amortization Expense | A summary of depreciation, depletion, amortization and accretion expense is below (in thousands):
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the net carrying amount of goodwill by reporting segment (see Note 20) for the nine months ended September 30, 2023 and year ended December 31, 2022 are presented below (in thousands):
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Schedule of Definite Lived Intangible Assets | The Company had the following finite lived intangible assets recorded (in thousands):
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Schedule of Aggregated Expected Amortization Expense | Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):
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Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities (Tables) |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities | Accrued expenses and other current liabilities and other long-term liabilities included the following (in thousands):
a.On December 30, 2020, the Company entered into an agreement with First National Capital, LLC (“FNC”) whereby the Company agreed to sell certain assets from its infrastructure segment to FNC for aggregate proceeds of $5.0 million. Concurrent with the sale of assets, the Company entered into a 36 month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.1 million. On June 1, 2021, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $9.5 million and entered into a 42-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.2 million. On June 1, 2022, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $4.6 million and entered into a 42-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.1 million. Under the agreements, the Company has the option to purchase the assets at the end of the lease terms. The Company recorded liabilities for the proceeds received and will continue to depreciate the assets. The Company has imputed an interest rate so that the carrying amount of the financial liabilities will be the expected repurchase price at the end of the initial lease terms. b.Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year. As of September 30, 2023, the applicable interest rates associated with financed insurance premiums ranged from 5.13% to 6.75%. As of December 31, 2022, the applicable interest rates associated with financed insurance premiums ranged from 1.95% to 5.13%. c.In December 2022, the Company entered into a 42 month financing arrangement with FNC for the purchase of seven new pressure pumping units for an aggregate value of $9.7 million. Under this arrangement, the Company has agreed to make monthly principal and interest payments totaling $0.3 million over the term of the agreement. This note is secured by the seven pressure pumping units and bears interest at an imputed rate of approximately 15.0%.
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Selling, General and Administrative Expense (Tables) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Selling, General and Administrative Expense | Selling, general and administrative (“SG&A”) expense includes of the following (in thousands):
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Expense and Other Supplemental Information | Lease expense consisted of the following for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Other supplemental information related to leases for the three and nine months ended September 30, 2023 and 2022 and as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
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Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of September 30, 2023 and December 31, 2022 is as follows (in thousands):
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Schedule of Finance Lease Liabilities | Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):
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Schedule of Operating Lease Liabilities | Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):
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(Loss) Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliations of the Components of Basic and Diluted Net (Loss) Earnings per Common Share | Reconciliations of the components of basic and diluted net (loss) earnings per common share are presented in the table below (in thousands, except per share data):
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Stock Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation | A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below.
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Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Following is a summary of related party transactions (in thousands):
a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. b.Panther provides directional drilling services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement.
a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. b.Caliber, an entity controlled by Wexford, leases office space to the Company.
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Letters of Credit | The letters of credit are categorized below (in thousands):
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Reporting Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands):
|
Basis of Presentation and Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 3,587 | $ 18,085 |
Change in provision for expected credit losses | (377) | 3,550 |
Recoveries of receivables previously charged to credit loss expense | (37) | (161) |
Write-offs charged against the provision | (3,018) | (17,887) |
Balance at end of period | $ 155 | $ 3,587 |
Basis of Presentation and Significant Accounting Policies - Schedule of Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Customer A | REVENUES | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 0.00% | 0.00% | 0.00% | 0.00% | |
Customer A | ACCOUNTS RECEIVABLE | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 88.00% | 83.00% | |||
Customer B | REVENUES | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 8.00% | 9.00% | 11.00% | 12.00% | |
Customer B | ACCOUNTS RECEIVABLE | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 0.00% | 0.00% |
Revenue - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue recognized | $ 0 | $ 0 | $ 0 | $ 0 | ||
Deferred revenue | 750,000 | 750,000 | $ 7,550,000 | $ 3,250,000 | ||
Contract assets | 0 | 0 | $ 0 | |||
Shortfall Payments | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue recognized | 0 | $ 500,000 | 0 | $ 3,100,000 | ||
Deferred revenue | $ 0 | $ 0 | ||||
Practical Expedients | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue recognition period | one year |
Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Contract with Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 7,550 | $ 3,250 |
Deduction for recognition of revenue | (7,042) | (3,207) |
Deduction for rebate credit recognized | (375) | (140) |
Increase for deferral of customer prepayments | 617 | 7,647 |
Balance, end of period | $ 750 | $ 7,550 |
Revenue - Performance Obligations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue recognized | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 13.4 | $ 13.4 | ||
Performance obligation expected recognition period | 16 months | 16 months |
Divestitures (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jul. 13, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Business Acquisition [Line Items] | |||
Gain on sale of business | $ 2,080 | $ 0 | |
Discontinued Operations, Disposed of by Sale | Air Rescue Systems Corporation | |||
Business Acquisition [Line Items] | |||
Proceeds from sale of subsidiary | $ 3,300 | ||
Sale of subsidiary contingent consideration | 300 | ||
Gain on sale of business | $ 2,100 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Supplies | $ 5,945 | $ 5,167 |
Raw materials | 1,004 | 974 |
Work in process | 3,748 | 2,221 |
Finished goods | 1,082 | 521 |
Total inventories | $ 11,779 | $ 8,883 |
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Property, Plant and Equipment [Line Items] | ||||
Proceeds from disposal of property and equipment | $ 4,304 | $ 8,659 | ||
Gains from sales of equipment damaged or lost down-hole | 335 | 607 | ||
Comprehensive Income | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from disposal of property and equipment | $ 3,100 | $ 800 | 4,000 | 8,000 |
Gains from sales of equipment damaged or lost down-hole | 2,400 | 600 | 3,300 | 3,700 |
Drilling rigs and related equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from disposal of property and equipment | 400 | 0 | 400 | 600 |
Gains from sales of equipment damaged or lost down-hole | $ 300 | $ 100 | $ 300 | $ 600 |
Property, Plant and Equipment - Schedule of Depreciation, Amortization, Accretion, and Depletion (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 9,240 | $ 14,031 | $ 33,097 | $ 47,716 |
Amortization expense | 193 | 195 | 583 | 584 |
Accretion and depletion expense | 1,800 | 1,616 | 3,159 | 2,185 |
Depreciation, depletion, amortization and accretion | $ 11,233 | $ 15,842 | $ 36,839 | $ 50,485 |
Goodwill and Intangible Assets - Schedule Of Changes in Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Goodwill [Roll Forward] | ||||||
Goodwill, period start | $ 100,873 | $ 100,873 | $ 100,873 | |||
Accumulated impairment losses | $ (90,966) | (90,966) | (89,156) | $ (89,156) | ||
Goodwill, total | 9,214 | 9,214 | 11,717 | 11,717 | ||
Acquisitions | 0 | 0 | ||||
Impairment losses | (1,810) | $ 0 | (1,810) | 0 | 0 | |
Dispositions | (693) | |||||
Goodwill, period end | 100,180 | 100,180 | 100,873 | |||
Well Completions | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, period start | 86,043 | 86,043 | 86,043 | |||
Accumulated impairment losses | (76,829) | (76,829) | (76,829) | (76,829) | ||
Goodwill, total | 9,214 | 9,214 | 9,214 | 9,214 | ||
Acquisitions | 0 | 0 | ||||
Impairment losses | 0 | 0 | ||||
Dispositions | 0 | |||||
Goodwill, period end | 86,043 | 86,043 | 86,043 | |||
Other | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, period start | 14,830 | $ 14,830 | 14,830 | |||
Accumulated impairment losses | (14,137) | (14,137) | (12,327) | (12,327) | ||
Goodwill, total | 0 | 0 | 2,503 | $ 2,503 | ||
Acquisitions | 0 | 0 | ||||
Impairment losses | (1,810) | 0 | ||||
Dispositions | (693) | |||||
Goodwill, period end | $ 14,137 | $ 14,137 | $ 14,830 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of goodwill | $ 1,810 | $ 0 | $ 1,810 | $ 0 | $ 0 |
Amortization of intangible assets | $ 193 | $ 195 | $ 583 | $ 584 | |
Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted useful life (in years) | 1 year 10 months 24 days | ||||
Minimum | Trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 10 years | 10 years | |||
Cobra Aviation Services LLC | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of goodwill | $ 1,800 | $ 1,800 |
Goodwill and Intangible Assets - Schedule of Definite Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 1,106 | $ 1,782 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trade names | 7,730 | 7,850 |
Less: accumulated amortization - trade names | (6,624) | (6,068) |
Intangible assets, net | $ 1,106 | $ 1,782 |
Goodwill and Intangible Assets - Schedule of Aggregated Expected Amortization Expense (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 193 | |
2024 | 704 | |
2025 | 85 | |
2026 | 85 | |
2027 | 39 | |
Thereafter | 0 | |
Intangible assets, net | $ 1,106 | $ 1,782 |
Equity Method Investment (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 21, 2018
USD ($)
helicopter
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Brim Acquisitions LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Contributions to equity investee | $ 2.0 | |||||
Number of helicopters owned | helicopter | 3 | |||||
Number of helicopters leased | helicopter | 5 | |||||
Difference between carrying amount and underlying equity | $ 3.8 | $ 3.8 | $ 3.5 | |||
Adjustment to equity investee | $ 0.7 | $ 0.3 | $ 0.3 | $ (0.1) | ||
Brim Acquisitions LLC | Cobra Aviation Services LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 49.00% | |||||
Brim Acquisitions LLC | Wexford | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 51.00% | |||||
BRIM Equipment | Cobra Aviation Services LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash paid to acquire a business | $ 2.0 |
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accrued Expenses and Other Current Liabilities | ||
State and local taxes payable | $ 13,289 | $ 13,336 |
Sale leaseback liability | 4,401 | 4,501 |
Accrued compensation and benefits | 3,889 | 6,743 |
Equipment financing note | 2,506 | 2,329 |
Financing leases | 1,863 | 4,003 |
Insurance reserves | 1,357 | 1,509 |
Deferred revenue | 750 | 7,550 |
Financed insurance premiums | 402 | 10,136 |
Other | 2,051 | 2,190 |
Total accrued expenses and other current liabilities | 30,508 | 52,297 |
Other Long-Term Liabilities | ||
Equipment financing note | 4,239 | 6,047 |
Sale-leaseback liability | 3,352 | 6,836 |
Financing leases | 1,989 | 2,602 |
Total other long-term liabilities | $ 9,580 | $ 15,485 |
Debt - PNC Revolving Credit Facility Narrative (Details) - Line of Credit $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Fixed charges coverage ratio | 1.1 | |
Debt instrument, debt covenant, minimum excess availability covenant | $ 10.0 | $ 10.0 |
Outstanding borrowing under the credit facility | 69.0 | 83.5 |
Borrowing base | 96.4 | 119.8 |
Remaining borrowing capacity | 11.0 | 19.7 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Remaining borrowing capacity | $ 6.4 | $ 6.5 |
Debt - Aviation Note Narrative (Details) - Aviation Note - Leopard Aviation LLC And Cobra Aviation Services LLC $ in Millions |
Nov. 06, 2020
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Debt term | 39 months |
Aggregate principal amount | $ 4.6 |
Proceeds from notes payable | $ 4.5 |
Prime Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.00% |
Variable Interest Entities (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
helicopter
| |
Leopard Aviation LLC | |
Variable Interest Entity [Line Items] | |
Number of helicopters owned | 1 |
Brim Acquisitions LLC | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 49.00% |
Dire Wolf Energy Services LLC | Cobra Aviation Services LLC | |
Variable Interest Entity [Line Items] | |
Interest transferred | 100.00% |
Predator Aviation LLC | Leopard Aviation LLC | |
Variable Interest Entity [Line Items] | |
Interest transferred | 100.00% |
Cobra Aviation Services LLC | |
Variable Interest Entity [Line Items] | |
Number of helicopters | 2 |
Selling, General and Administrative Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Non-cash expenses: | |||||
Change in provision for expected credit losses | $ (377) | $ 3,550 | |||
Stock based compensation | 1,127 | $ 682 | |||
Total SG&A expense | $ 10,411 | $ 9,685 | 29,151 | 26,560 | |
Selling, General and Administrative Expenses | |||||
Cash expenses: | |||||
Compensation and benefits | 3,392 | 3,676 | 11,665 | 9,796 | |
Professional services | 4,684 | 3,706 | 10,889 | 10,067 | |
Other | 2,105 | 2,059 | 5,884 | 6,127 | |
Total cash SG&A expense | 10,181 | 9,441 | 28,438 | 25,990 | |
Non-cash expenses: | |||||
Change in provision for expected credit losses | 11 | 3 | (414) | (112) | |
Stock based compensation | 219 | 241 | 1,127 | 682 | |
Total non-cash SG&A expense | 230 | 244 | 713 | 570 | |
Total SG&A expense | $ 10,411 | $ 9,685 | $ 29,151 | $ 26,560 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,438 | $ 3,819 | $ 9,006 | $ 11,442 |
Effective federal income tax rate | 76.00% | 189.00% |
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Operating lease expense | $ 1,928 | $ 1,668 | $ 5,568 | $ 5,189 |
Short-term lease expense | 37 | 14 | 476 | 72 |
Finance lease expense: | ||||
Amortization of right-of-use assets | 445 | 447 | 1,579 | 1,252 |
Interest on lease liabilities | 38 | 44 | 135 | 138 |
Total lease expense | $ 2,448 | $ 2,173 | $ 7,758 | $ 6,651 |
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating leases: | ||
Operating lease right-of-use assets | $ 11,147 | $ 10,656 |
Current operating lease liability | 6,081 | 5,447 |
Long-term operating lease liability | 4,912 | 4,913 |
Finance leases: | ||
Property, plant and equipment, net | 4,133 | 7,267 |
Accrued expenses and other current liabilities | 1,863 | 4,003 |
Other liabilities | $ 1,989 | $ 2,602 |
Finance lease, liability, statement of financial position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Leases - Schedule of Other Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ 1,826 | $ 1,416 | $ 5,419 | $ 5,011 | |
Operating cash flows from finance leases | 38 | 44 | 135 | 138 | |
Financing cash flows from finance leases | 869 | 456 | 3,547 | 1,365 | |
Right-of-use assets obtained in exchange for lease obligations: | |||||
Operating leases | 1,338 | 339 | 5,554 | 3,158 | |
Finance leases | $ 201 | $ 0 | $ 507 | $ 0 | |
Weighted-average remaining lease term: | |||||
Operating leases | 2 years 6 months | 2 years 6 months | 2 years 10 months 24 days | ||
Finance leases | 2 years 4 months 24 days | 2 years 4 months 24 days | 2 years | ||
Weighted-average discount rate: | |||||
Operating leases | 8.20% | 8.20% | 4.10% | ||
Finance leases | 4.60% | 4.60% | 4.30% |
Leases - Schedule of Lease Liability Maturity (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Operating Leases | |
Remainder of 2023 | $ 1,986 |
2024 | 6,185 |
2025 | 2,725 |
2026 | 725 |
2027 | 174 |
Thereafter | 450 |
Total lease payments | 12,245 |
Less: Present value discount | 1,252 |
Present value of lease payments | 10,993 |
Finance Leases | |
Remainder of 2023 | 880 |
2024 | 1,316 |
2025 | 809 |
2026 | 1,067 |
2027 | 0 |
Thereafter | 0 |
Total lease payments | 4,072 |
Less: Present value discount | 220 |
Present value of lease payments | $ 3,852 |
Leases - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Lease revenue | $ 0.8 | $ 0.7 | $ 2.4 | $ 2.4 |
Operating lease, lease income, statement of income or comprehensive income [Extensible Enumeration] | Revenue | Revenue | Revenue | Revenue |
(Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Basic (loss) earnings per share: | ||||
Net (loss) income | $ (1,088) | $ 7,726 | $ 2,793 | $ (5,388) |
Weighted average common shares outstanding (in shares) | 47,942,000 | 47,312,000 | 47,721,000 | 47,129,000 |
Basic (loss) earnings per share (in USD per share) | $ (0.02) | $ 0.16 | $ 0.06 | $ (0.11) |
Diluted (loss) earnings per share: | ||||
Net (loss) income | $ (1,088) | $ 7,726 | $ 2,793 | $ (5,388) |
Weighted average common shares, including dilutive effect (in shares) | 47,942,000 | 47,843,000 | 47,973,000 | 47,129,000 |
Diluted (loss) earnings per share (in USD per share) | $ (0.02) | $ 0.16 | $ 0.06 | $ (0.11) |
Restricted Stock | ||||
Diluted (loss) earnings per share: | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | 0 |
Equity Based Compensation (Details) - USD ($) $ in Millions |
Jan. 01, 2019 |
Nov. 24, 2014 |
---|---|---|
Specified Member Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the award as of the modification dates or grant date | $ 5.6 | |
Non-Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the award as of the modification dates or grant date | $ 18.9 |
Stock Based Compensation - Narrative (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 4.5 | 4.5 | ||
Number of shares available for future grants (in shares) | 0.6 | 0.6 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of the award as of the modification dates or grant date | $ 1.1 | $ 1.1 | ||
Unrecognized compensation cost | 1 year 9 months 18 days | |||
Compensation expense | $ 0.2 | $ 0.2 | $ 1.1 | $ 0.7 |
Stock Based Compensation - Schedule Of Share-Based Compensation (Details) - Restricted Stock - $ / shares |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Number of Unvested Restricted Shares | ||
Unvested shares beginning balance (in shares) | 728,310 | 1,128,205 |
Granted (in shares) | 369,050 | 228,310 |
Vested (in shares) | (794,977) | (628,205) |
Forfeited (in shares) | 0 | 0 |
Unvested shares ending balance (in shares) | 302,383 | 728,310 |
Weighted Average Grant-Date Fair Value | ||
Unvested shares at beginning of period (in USD per share) | $ 1.32 | $ 1.27 |
Granted (in USD per share) | 5.17 | 2.19 |
Vested (in USD per share) | 1.69 | 1.54 |
Forfeited (in USD per share) | 0 | 0 |
Unvested shares at end of period (in USD per share) | $ 5.06 | $ 1.32 |
Related Party Transactions - Schedule of Revenues and Accounts Receivable (Details) - Related Parties - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Related Party Transaction [Line Items] | |||||
REVENUES | $ 252 | $ 355 | $ 841 | $ 1,024 | |
ACCOUNTS RECEIVABLE | 266 | 266 | $ 223 | ||
Cobra Aviation/ARS/Leopard and Brim Equipment | |||||
Related Party Transaction [Line Items] | |||||
REVENUES | 93 | 81 | 391 | 234 | |
ACCOUNTS RECEIVABLE | 101 | 101 | 217 | ||
Panther and El Toro | |||||
Related Party Transaction [Line Items] | |||||
REVENUES | 159 | 274 | 450 | 790 | |
ACCOUNTS RECEIVABLE | 159 | 159 | 0 | ||
Other Relationships | |||||
Related Party Transaction [Line Items] | |||||
REVENUES | 0 | $ 0 | 0 | $ 0 | |
ACCOUNTS RECEIVABLE | $ 6 | $ 6 | $ 6 |
Commitments and Contingencies - Schedule of Letters of Credit (Details) - Letter of Credit - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Total letters of credit | $ 6,369 | $ 6,494 |
Environmental remediation | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | 3,569 | 3,694 |
Insurance programs | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | $ 2,800 | $ 2,800 |
Commitments and Contingencies - Defined Contribution Plan (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Defined contribution plan, maximum annual contributions per employee, percent | 92.00% | |
Defined benefit plan, employer matching contribution, percent of match (up to) | 3.00% | |
Defined benefit plan, contributions by employer | $ 1.5 | $ 1.4 |
Subsequent Events (Details) - USD ($) $ in Millions |
Nov. 09, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Subsequent Event [Line Items] | |||
Commitments and contingencies | |||
Performance and Payment Bond | |||
Subsequent Event [Line Items] | |||
Commitments and contingencies | $ 11.2 | $ 8.6 | |
Subsequent Event | Performance and Payment Bond | |||
Subsequent Event [Line Items] | |||
Commitments and contingencies | $ 2.7 |
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