Business Segments (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of segment reporting information by segment

The following tables present financial information with respect to the Company’s segments. Corporate and Other represents costs not directly associated with a segment, such as interest expense, income taxes and corporate overhead. Corporate assets include cash, deferred financing costs, derivatives and entity-level machinery equipment.


	(Thousands of Dollars)
		Three Months Ended June 30,						Six Months Ended June 30,
		2020		2019		2020		2019
Operations by business segment
Revenue:
Completion Services		$	178,977	$	420,363	$	691,848	$	832,338
WC&I		17,250		7,370		74,075		17,049
Well Support Services		—		—		57,929		—
Total revenue		$	196,227	$	427,733	$	823,852	$	849,387
Adjusted gross profit (loss):
Completion Services⁽¹⁾		$	31,655	$	102,131	$	129,531	$	187,435
WC&I⁽¹⁾		812		1,099		9,596		(197)
Well Support Services⁽¹⁾		—		—		12,338		—
Total adjusted gross profit		$	32,467	$	103,230	$	151,465	$	187,238
Operating income (loss):
Completion Services		$	(46,918)	$	36,857	$	(60,020)	$	54,824
WC&I		(6,230)		468		(3,219)		(1,702)
Well Support Services		—		—		10,940		—
Corporate and Other		(55,755)		(36,222)		(122,457)		(67,904)
Total operating income (loss)		$	(108,903)	$	1,103	$	(174,756)	$	(14,782)
Depreciation and amortization:
Completion Services		$	65,888	$	65,672	$	141,428	$	132,419
WC&I		4,818		631		9,091		1,504
Well Support Services		—		—		1,527		—
Corporate and Other		4,554		3,583		9,035		7,439
Total depreciation and amortization		$	75,260	$	69,886	$	161,081	$	141,362
Net income (loss):
Completion Services		$	(46,918)	$	36,856	$	(60,020)	$	54,823
WC&I		(6,230)		468		(3,219)		(1,702)
Well Support Services		—		—		10,940		—
Corporate and Other		(59,340)		(42,305)		(131,945)		(79,908)
Total net income (loss)		$	(112,488)	$	(4,981)	$	(184,244)	$	(26,787)

⁽¹⁾ Adjusted gross profit (loss) at the segment level is not considered to be a non-GAAP financial measure as it is the Company's segment measure of profitability and is required to be disclosed under GAAP pursuant to ASC 280. Adjusted gross profit (loss) is defined as revenue less cost of services, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance.


	Three Months Ended June 30, 2020														Six Months Ended June 30, 2020
	Completion Services		WC&I		Well Support Services		Total		Completion Services		WC&I		Well Support Services		Total
Revenue	$	178,977	$	17,250	$	—	$	196,227	$	691,848	$	74,075	$	57,929	$	823,852
Cost of Services	159,149		19,622		—		178,771		576,531		68,875		45,591		690,997
Gross profit excluding depreciation and amortization	19,828		(2,372)		—		17,456		115,317		5,200		12,338		132,855
Management adjustments associated with cost of services⁽¹⁾	11,827		3,184		—		15,011		14,214		4,396		—		18,610
Adjusted gross profit	$	31,655	$	812	$	—	$	32,467	$	129,531	$	9,596	$	12,338	$	151,465

⁽¹⁾ Adjustments relate to market-driven severance and restructuring costs incurred as a result of significant declines in crude oil prices resulting from demand destruction from the COVID-19 pandemic and global oversupply.


	Three Months Ended June 30, 2019														Six Months Ended June 30, 2019
	Completion Services		WC&I		Well Support Services		Total		Completion Services		WC&I		Well Support Services		Total
Revenue	$	420,363	$	7,370	$	—	$	427,733	$	832,338	$	17,049	$	—	$	849,387
Cost of Services	318,232		6,271		—		324,503		644,903		17,246		—		662,149
Gross profit excluding depreciation and amortization	102,131		1,099		—		103,230		187,435		(197)		—		187,238
Management adjustments associated with cost of services	—		—		—		—		—		—		—		—
Adjusted gross profit	$	102,131	$	1,099	$	—	$	103,230	$	187,435	$	(197)	$	—	$	187,238


	(Thousands of Dollars)
	June 30, 2020		December 31, 2019
Total assets by segment:
Completion Services	$	760,660	$	1,091,965
WC&I	74,160		106,493
Well Support Services	—		109,792
Corporate and Other	474,766		356,657
Total assets	$	1,309,586	$	1,664,907
Goodwill by segment:
Completion Services	$	104,198	$	136,425
WC&I	—		372
Well Support Services	—		661
Corporate and Other	—		—
Total goodwill	$	104,198	$	137,458