Reportable Segment Information

6 Months Ended

Jun. 30, 2022

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. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources.

          In December 2021, the Company disposed of two turbine generators included in our pressure pumping reportable segment for total cash proceeds of approximately $36.0 million. The net book value of the two turbines prior to the disposal was approximately $39.5 million, resulting in loss on disposal of approximately $3.5 million.

          In accordance with the FASB Accounting Standards Codification ("ASC") 280—Segment Reporting, the Company has one reportable segment (pressure pumping) comprised of the hydraulic fracturing and cementing operating segments. The coiled tubing operating segment and corporate administrative expense (inclusive of our total income tax expense (benefit), other (income) and expense and interest expense) are included in the "all other" category in the table below. Total corporate administrative expense for the three and six months ended June 30, 2022 was $7.7 million and $25.0 million, respectively. Total corporate administrative expense for the three and six months ended June 30, 2021 was $6.5 million and $11.6 million, respectively.

          Our hydraulic fracturing operating segment revenue approximated 92.9% and 93.2% of our pressure pumping revenue during the three and six months ended June 30, 2022, respectively. During the three and six months ended June 30, 2021, our hydraulic fracturing operating segment revenue approximated 93.7% and 93.5% 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 and related expense, 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 June 30, 2022
	Pressure Pumping		All Other		Total
Service revenue	$	309,445	$	5,638	$	315,083
Adjusted EBITDA	$	86,291	$	(10,344)	$	75,947
Depreciation and amortization	$	30,528	$	934	$	31,462
Capital expenditures	$	83,170	$	5,911	$	89,081
Total assets at June 30, 2022	$	1,025,044	$	42,579	$	1,067,623

	Three Months Ended June 30, 2021
	Pressure Pumping		All Other		Total
Service revenue	$	213,461	$	3,426	$	216,887
Adjusted EBITDA	$	46,826	$	(11,133)	$	35,693
Depreciation and amortization	$	32,256	$	987	$	33,243
Capital expenditures	$	30,744	$	29	$	30,773
Total assets December 31, 2021	$	1,023,037	$	38,199	$	1,061,236

	Six Months Ended June 30, 2022
	Pressure Pumping		All Other		Total
Service revenue	$	586,557	$	11,206	$	597,763
Adjusted EBITDA	$	163,285	$	(20,805)	$	142,480
Depreciation and amortization	$	61,459	$	1,858	$	63,317
Capital expenditures	$	154,773	$	6,036	$	160,809
Total assets at June 30, 2022	$	1,025,044	$	42,579	$	1,067,623

	Six Months Ended June 30, 2021
	Pressure Pumping		All Other		Total
Service revenue	$	371,652	$	6,693	$	378,345
Adjusted EBITDA	$	78,697	$	(22,988)	$	55,709
Depreciation and amortization	$	64,770	$	1,951	$	66,721
Capital expenditures	$	60,766	$	2,334	$	63,100
Total assets December 31, 2021	$	1,023,037	$	38,199	$	1,061,236

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

	Three Months Ended June 30, 2022
	Pressure Pumping		All Other		Total
Net income (loss)	$	(24,392)	$	(8,468)	$	(32,860)
Depreciation and amortization	30,528		934		31,462
Impairment expense	57,454		—		57,454
Interest expense	—		669		669
Income tax benefit	—		(8,069)		(8,069)
Loss (gain) on disposal of assets	22,680		(195)		22,485
Stock-based compensation	—		3,458		3,458
Other income	—		(6)		(6)
Other general and administrative expense(1)	21		1,333		1,354
Adjusted EBITDA	$	86,291	$	(10,344)	$	75,947
	Three Months Ended June 30, 2021
	Pressure Pumping		All Other		Total
Net income (loss)	$	(809)	$	(7,702)	$	(8,511)
Depreciation and amortization	32,256		987		33,243
Interest expense	—		159		159
Income tax benefit	—		(3,697)		(3,697)
Loss (gain) on disposal of assets	15,379		(354)		15,025
Stock-based compensation	—		2,909		2,909
Other expense	—		302		302
Other general and administrative expense, (net)(1)	—		(3,737)		(3,737)
Adjusted EBITDA	$	46,826	$	(11,133)	$	35,693

	Six Months Ended June 30, 2022
	Pressure Pumping		All Other		Total
Net income (loss)	$	4,977	$	(26,020)	$	(21,043)
Depreciation and amortization	61,459		1,858		63,317
Impairment expense	57,454		—		57,454
Interest expense	—		803		803
Income tax benefit	—		(3,932)		(3,932)
Loss (gain) on disposal of assets	39,101		(498)		38,603
Stock-based compensation	—		14,822		14,822
Other income(2)	—		(10,364)		(10,364)
Other general and administrative expense (1)	294		2,526		2,820
Adjusted EBITDA	$	163,285	$	(20,805)	$	142,480
	Six Months Ended June 30, 2021
	Pressure Pumping		All Other		Total
Net income (loss)	$	(14,484)	$	(14,402)	$	(28,886)
Depreciation and amortization	64,770		1,951		66,721
Interest expense	—		335		335
Income tax benefit	—		(10,360)		(10,360)
Loss (gain) on disposal of assets	28,411		(335)		28,076
Stock-based compensation	—		5,396		5,396
Other income	—		(1,487)		(1,487)
Other general and administrative expense (1)	—		(4,698)		(4,698)
Retention bonus and severance expense	—		612		612
Adjusted EBITDA	$	78,697	$	(22,988)	$	55,709

(1)Other general and administrative expense, (net of reimbursement from insurance carriers) primarily relates to nonrecurring professional fees paid to external consultants in connection with our audit committee review, SEC investigation, shareholder litigation and other legal matters, net of insurance recoveries. During the three and six months ended June 30, 2022, we received reimbursement of approximately $2.4 million and $3.5 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. During the three and six months ended June 30, 2021, we received reimbursement of approximately $5.1 million and $6.7 million, respectively.

(2)Includes $10.7 million of net tax refund (net of advisory fees) received in March 2022 from the Texas Comptroller of Public Accounts in connection with limited sales, excise, and use tax beginning July 1, 2015 through December 31, 2018.