REPORTABLE SEGMENT INFORMATION

The Company has six operating segments for which discreet financial information is readily available: hydraulic fracturing, cementing, coil tubing, flowback, surface drilling, and drilling. During the fourth quarter of 2017, our acidizing operation was consolidated into our hydraulic fracturing operating segment, and we no longer maintain discreet financial information for acidizing, resulting in a reduction in the number of our operating segments from seven previously reported in 2016 to six operating segments. The change in the number of our operating segments did not impact our reportable segment information reported during the years ended December 31, 2017, 2016 and 2015. Our operating segments represent how the chief operating decision maker (CODM) evaluates performance and allocate resources.

In accordance with Accounting Standards Codification (ASC) 280 — Segment Reporting, the Company has one reportable segment (pressure pumping) comprised of the hydraulic fracturing and cementing operating segments. All other operating segments and corporate administrative expenses are included in the “all other” category in the table below. Inter‑segment revenues are not material and were not shown separately in the table below.

The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before other income (expense), interest, taxes, depreciation & amortization, stock-based compensation expense, impairment expense, (gain)/loss on disposal of assets, gain on extinguishment of debt and other unusual or nonrecurring expenses or income). A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below.



($ in thousands)
	Pressure Pumping		All Other			Total
Year ended December 31, 2017
Service revenue	$	945,040	$	36,825		$	981,865
Adjusted EBITDA	$	145,122	$	(7,679	)	$	137,443
Depreciation and amortization	$	51,155	$	4,473		$	55,628
Capital expenditures	$	300,406	$	4,893		$	305,299
Goodwill	$	9,425	$	—		$	9,425
Total assets	$	688,279	$	30,753		$	719,032

	Pressure Pumping		All Other			Total
Year ended December 31, 2016
Service revenue	$	409,014	$	27,906		$	436,920
Adjusted EBITDA	$	15,656	$	(7,840	)	$	7,816
Depreciation and amortization	$	37,282	$	6,260		$	43,542
Property and equipment impairment expense	$	—	$	6,305		$	6,305
Goodwill impairment expense	$	—	$	1,177		$	1,177
Capital expenditures	$	45,473	$	535		$	46,008
Goodwill	$	9,425	$	—		$	9,425
Total assets	$	501,906	$	39,516		$	541,422

	Pressure Pumping		All Other			Total
Year ended December 31, 2015
Service revenue	$	510,198	$	59,420		$	569,618
Adjusted EBITDA	$	62,540	$	(2,391	)	$	60,149
Depreciation and amortization	$	38,369	$	11,765		$	50,134
Property and equipment impairment expense	$	7,980	$	28,629		$	36,609
Capital expenditures	$	69,029	$	2,647		$	71,676
Goodwill	$	9,425	$	1,177		$	10,602
Total assets	$	398,449	$	48,005		$	446,454

Reconciliation of net income (loss) to adjusted EBITDA:



($ in thousands)	Pressure Pumping			All Other			Total
Year ended December 31, 2017
Net income (loss)	$	50,417		$	(37,804	)	$	12,613
Depreciation and amortization	51,155			4,473			55,628
Interest expense	—			7,347			7,347
Income tax expense	—			3,128			3,128
Loss on disposal of assets	38,059			1,027			39,086
Stock‑based compensation	—			9,489			9,489
Other expense	—			1,025			1,025
Other general and administrative expense ⁽¹⁾	—			722			722
Deferred IPO Bonus	5,491			2,914			8,405
Adjusted EBITDA	$	145,122		$	(7,679	)	$	137,443

Year ended December 31, 2016	Pressure Pumping			All Other			Total
Net loss	$	(45,316	)	$	(7,831	)	$	(53,147	)
Depreciation and amortization	37,282			6,260			43,542
Interest expense	—			20,387			20,387
Income tax benefit	—			(27,972		)	(27,972		)
Loss on disposal of assets	23,690			(1,161		)	22,529
Property and equipment impairment expense	—			6,305			6,305
Goodwill impairment expense	—			1,177			1,177
Gain on extinguishment of debt	—			(6,975		)	(6,975		)
Stock‑based compensation	—			1,649			1,649
Other expense	—			321			321
Adjusted EBITDA	$	15,656		$	(7,840	)	$	7,816

	Pressure Pumping			All Other			Total
Year ended December 31, 2015
Net loss	$	(5,022	)	$	(40,831	)	$	(45,853	)
Depreciation and amortization	38,369			11,765			50,134
Interest expense	—			21,641			21,641
Income tax benefit	—			(25,388		)	(25,388		)
Loss on disposal of assets	21,213			55			21,268
Property and equipment impairment expense	7,980			28,629			36,609
Stock‑based compensation	—			1,239			1,239
Other expense	—			499			499
Adjusted EBITDA	$	62,540		$	(2,391	)	$	60,149

(1) Other general and administrative expense relates to legal settlement expense.

Major Customers

For the years ended December 31, 2017, 2016 and 2015, the Company had revenue from the following significant customers that accounted for the following percentages of the Company’s total revenue:



	2017		2016		2015
Customer A	15.0	%	18.0	%	12.5	%
Customer B	13.8	%	12.5	%	8.8	%
Customer C	12.7	%	8.7	%	14.2	%
Customer D	12.6	%	7.0	%	11.1	%
Customer E	11.8	%	—	%	—	%

For the year ended December 31, 2017, pressure pumping made up 99.9% of Customer A, 99.2% of Customer B, 99.9% of Customer C, 99.8% of Customer D and 95.5% of customer E. For the year ended December 31, 2016, pressure pumping made up 96% of Customer A, 99% of Customer B, 100% of Customer C and 99% of Customer D. For the year ended December 31, 2015, pressure pumping made up 99% of Customer A, 100% of Customer B, 88% of Customer C and 99% of Customer D.