Reportable Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

          The Company has three operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), cementing and coiled tubing. In March 2020, the Company shut down its flowback operating segment and subsequently disposed of the assets for approximately $1.6 million. In September 2020, the Company disposed of all of its drilling rigs and ancillary assets for approximately $0.5 million. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources.

          In accordance with 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 expense (inclusive of our total income tax expense and interest expense) are included in the ‘‘all other’’ category in the table below. Total corporate administrative expense for the three and nine months ended September 30, 2020 was $7.0 million and $27.9 million, respectively. The corporate administrative expense for the three and nine months ended September 30, 2019 was $30.1 million and $87.3 million, respectively.

          Our hydraulic fracturing operating segment revenue approximated 95.2% and 94.0% of our pressure pumping revenue during the three and nine months ended September 30, 2020, respectively. During the three and nine months ended September 30, 2019, our hydraulic fracturing operating segment revenue approximated 95.7% and 95.7% of our pressure pumping revenue, respectively.

          Inter-segment revenues are not material and are 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 expense, income taxes, depreciation and amortization, stock-based compensation expense, severance, impairment expense, (gain)/loss on disposal of assets 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):

	Three Months Ended September 30, 2020
	Pressure Pumping		All Other		Total
Service revenue	$	131,321	$	2,389	$	133,710
Adjusted EBITDA	$	26,662	$	(9,308)	$	17,354
Depreciation and amortization	$	36,326	$	1,141	$	37,467
Capital expenditures	$	7,571	$	370	$	7,941
Total assets at September 30, 2020	$	1,055,698	$	40,439	$	1,096,137
	Three Months Ended September 30, 2019
	Pressure Pumping		All Other		Total
Service revenue	$	528,851	$	12,996	$	541,847
Adjusted EBITDA	$	134,789	$	(2,894)	$	131,895
Depreciation and amortization	$	36,110	$	1,543	$	37,653
Goodwill at December 31, 2019	$	9,425	$	—	$	9,425
Capital expenditures	$	83,770	$	3,189	$	86,959
Total assets at December 31, 2019	$	1,381,811	$	54,300	$	1,436,111

	Nine Months Ended September 30, 2020
	Pressure Pumping		All Other		Total
Service revenue	$	622,055	$	12,833	$	634,888
Adjusted EBITDA	$	139,359	$	(21,671)	$	117,688
Depreciation and amortization	$	114,205	$	3,639	$	117,844
Capital expenditures	$	56,873	$	3,042	$	59,915
Total assets at September 30, 2020	$	1,055,698	$	40,439	$	1,096,137
	Nine Months Ended September 30, 2019
	Pressure Pumping		All Other		Total
Service revenue	$	1,576,781	$	40,740	$	1,617,521
Adjusted EBITDA	$	417,017	$	(8,283)	$	408,734
Depreciation and amortization	$	101,916	$	4,336	$	106,252
Goodwill at December 31, 2019	$	9,425	$	—	$	9,425
Capital expenditures	$	322,347	$	11,978	$	334,325
Total assets at December 31, 2019	$	1,381,811	$	54,300	$	1,436,111

Reconciliation of net income (loss) to adjusted EBITDA ($ in thousands):

	Three Months Ended September 30, 2020
	Pressure Pumping		All Other		Total
Net loss	$	(20,920)	$	(8,264)	$	(29,184)
Depreciation and amortization	36,326		1,141		37,467
Interest expense	—		137		137
Income tax benefit	—		(7,717)		(7,717)
Loss on disposal of assets	11,256		30		11,286
Stock-based compensation	—		2,535		2,535
Other expense	—		312		312
Other general and administrative expense(1)	—		2,481		2,481
Severance expense	—		37		37
Adjusted EBITDA	$	26,662	$	(9,308)	$	17,354
	Three Months Ended September 30, 2019
	Pressure Pumping		All Other		Total
Net income (loss)	$	65,961	$	(31,564)	$	34,397
Depreciation and amortization	36,110		1,543		37,653
Interest expense	21		1,728		1,749
Income tax expense	—		12,340		12,340
Loss on disposal of assets	30,987		166		31,153
Stock-based compensation	—		577		577
Other expense	—		75		75
Other general and administrative expense(1)	—		10,786		10,786
Retention bonus and severance expense	1,710		1,455		3,165
Adjusted EBITDA	$	134,789	$	(2,894)	$	131,895

	Nine Months Ended September 30, 2020
	Pressure Pumping		All Other		Total
Net loss	$	(30,140)	$	(32,768)	$	(62,908)
Depreciation and amortization	114,205		3,639		117,844
Impairment expense	15,559		1,095		16,654
Interest expense	1		2,207		2,208
Income tax benefit	—		(15,087)		(15,087)
Loss on disposal of assets	39,659		216		39,875
Stock-based compensation	—		5,968		5,968
Other expense	—		583		583
Other general and administrative expense (1)	—		12,418		12,418
Retention bonus and severance expense	75		58		133
Adjusted EBITDA	$	139,359	$	(21,671)	$	117,688
	Nine Months Ended September 30, 2019
	Pressure Pumping		All Other		Total
Net income (loss)	$	228,285	$	(87,950)	$	140,335
Depreciation and amortization	101,916		4,336		106,252
Interest expense	43		5,635		5,678
Income tax expense	—		44,504		44,504
Loss on disposal of assets	81,110		468		81,578
Stock-based compensation	—		5,246		5,246
Other expense	—		539		539
Other general and administrative expense (1)	—		17,326		17,326
Deferred IPO, retention bonus and severance expense	5,663		1,613		7,276
Adjusted EBITDA	$	417,017	$	(8,283)	$	408,734

(1)Other general and administrative expense relates to nonrecurring professional fees paid to external consultants in connection with the Company's expanded audit committee review, SEC investigation and shareholder litigation. All nonrecurring professional fees incurred after the end of June 2020 are in connection with the pending SEC investigation and shareholder litigation.