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) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
☒ | Accelerated Filer | ☐ | |||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
Emerging Growth Company |
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Trade and other accounts receivable, net | ||||||||||||||
Inventories, net | ||||||||||||||
Prepaid and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Finance lease right-of-use assets | ||||||||||||||
Property and equipment (net of accumulated depreciation of $ | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets (net of accumulated amortization of $ | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other noncurrent assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued expenses | ||||||||||||||
Customer contract liabilities | ||||||||||||||
Current maturities of long-term operating lease liabilities | ||||||||||||||
Current maturities of long-term finance lease liabilities | ||||||||||||||
Current maturities of long-term debt | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term operating lease liabilities, less current maturities | ||||||||||||||
Long-term finance lease liabilities, less current maturities | ||||||||||||||
Long-term debt, net of unamortized deferred financing costs and unamortized debt discount, less current maturities | ||||||||||||||
Other noncurrent liabilities | ||||||||||||||
Total noncurrent liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Stockholders' equity | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Paid-in capital in excess of par value | ||||||||||||||
Retained earnings (deficit) | ( | |||||||||||||
Accumulated other comprehensive income | ||||||||||||||
Total stockholders' equity | ||||||||||||||
Total liabilities and stockholders' equity | $ | $ | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||
Cost of services(1) | ||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Merger and integration | ||||||||||||||||||||||||||
Loss (gain) on disposal of assets | ( | ( | ||||||||||||||||||||||||
Total operating costs and expenses | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | ||||||||||||||||||||||
Total other income (expense) | ( | ( | ( | ( | ||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | |||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Hedging activities | ||||||||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ | ||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||
Basic net income per share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted net income per share | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average shares outstanding: basic | ||||||||||||||||||||||||||
Weighted-average shares outstanding: diluted | ||||||||||||||||||||||||||
Common stock | Paid-in capital in excess of par value | Retained earnings (deficit) | Accumulated other comprehensive income | Total | ||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Shares repurchased and retired related to stock-based compensation | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Shares repurchased and retired related to stock repurchase program | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | ( | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance as of March 31, 2023 | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Shares repurchased and retired related to stock-based compensation | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Shares repurchased and retired related to stock repurchase program | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Excise tax on share repurchases | — | ( | — | — | ( | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | $ |
Common stock | Paid-in capital in excess of par value | Retained deficit | Accumulated other comprehensive income (loss) | Total | ||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Shares repurchased and retired related to stock-based compensation | — | ( | — | — | ( | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance as of March 31, 2022 | ( | ( | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Shares repurchased and retired related to stock-based compensation | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | ( | $ | $ |
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Amortization of deferred financing fees | ||||||||||||||
Loss (gain) on disposal of assets | ( | |||||||||||||
Payments for contingent consideration | ( | ( | ||||||||||||
Gain on financial instrument and derivatives, net | ( | ( | ||||||||||||
Stock-based compensation | ||||||||||||||
Gain on insurance proceeds recognized in other income | ( | |||||||||||||
Deferred income tax benefit | ( | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Increase in trade and other accounts receivable, net | ( | ( | ||||||||||||
Increase in inventories | ( | ( | ||||||||||||
Decrease in prepaid and other current assets | ||||||||||||||
Decrease in other assets | ||||||||||||||
Increase in accounts payable | ||||||||||||||
(Decrease) increase in accrued expenses | ( | |||||||||||||
Decrease in customer contract liabilities | ( | |||||||||||||
Decrease in other liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchase of property and equipment | ( | ( | ||||||||||||
Advances of deposit on equipment | ( | ( | ||||||||||||
Implementation of software | ( | ( | ||||||||||||
Proceeds from disposal of assets | ||||||||||||||
Assets and business acquisition | ||||||||||||||
Proceeds from insurance recoveries | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Payments on the term loan facility and asset based revolver | ( | ( | ||||||||||||
Payments on finance leases | ( | ( | ||||||||||||
Payment of debt issuance costs | ( | |||||||||||||
Shares repurchased and retired related to share repurchase program | ( | |||||||||||||
Payments for financing liabilities | ( | ( | ||||||||||||
Payments for contingent consideration | ( | |||||||||||||
Shares repurchased and retired related to stock-based compensation | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Non-cash effect of foreign translation adjustments | ( | |||||||||||||
Net increase in cash, cash equivalents and restricted cash | ||||||||||||||
Cash and cash equivalents, beginning | ||||||||||||||
Cash and cash equivalents, ending | $ | $ | ||||||||||||
Supplemental disclosure of cash flow information: |
Cash paid during the period for: | ||||||||||||||
Interest expense, net | $ | $ | ||||||||||||
Income taxes | $ | $ | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Change in accrued capital expenditures | $ | ( | $ | ( | ||||||||||
Non-cash additions to finance right-of-use assets | ||||||||||||||
Non-cash additions to finance lease liabilities, including current maturities | ( | ( | ||||||||||||
Non-cash additions to operating right-of-use assets | ||||||||||||||
Non-cash additions to operating lease liabilities, including current maturities | $ | ( | $ | ( | ||||||||||
(Thousands of Dollars) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
Sand, including freight | $ | $ | ||||||||||||
Chemicals and consumables | ||||||||||||||
Materials and supplies | ||||||||||||||
Total inventory, net | $ | $ |
(Thousands of Dollars) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
2018 Term Loan Facility | $ | $ | ||||||||||||
2021 Equipment Loan | ||||||||||||||
Other long-term debt | ||||||||||||||
Less: Unamortized debt discount and debt issuance costs | ( | ( | ||||||||||||
Total debt, net of unamortized debt discount and debt issuance costs | ||||||||||||||
Less: Current portion | ( | ( | ||||||||||||
Long-term debt, net of unamortized debt discount and debt issuance costs | $ | $ |
(Thousands of Dollars) | ||||||||||||||||||||
2021 Equipment Loan | 2019 ABL Facility | 2018 Term Loan Facility | ||||||||||||||||||
Original facility size | $ | $ | $ | |||||||||||||||||
Outstanding balance | $ | $ | $ | |||||||||||||||||
Letters of credit issued | $ | $ | $ | |||||||||||||||||
Available borrowing base commitment | n/a | $ | n/a | |||||||||||||||||
Interest Rate(1) | % | SOFR or base rate plus applicable margin | SOFR or base rate plus applicable margin | |||||||||||||||||
Maturity Date | June 1, 2025 | October 31, 2024 | May 25, 2025 |
(Thousands of Dollars) | ||||||||
Year-end December 31, | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
$ |
(Thousands of Dollars) | |||||||||||||||||||||||||||||
Derivative designated as hedging instruments | Derivative not designated as hedging instruments | Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Balance Sheet(1) | Net Amounts Presented in the Balance Sheet(2) | |||||||||||||||||||||||||
As of June 30, 2023: | |||||||||||||||||||||||||||||
Other current asset | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other noncurrent asset | |||||||||||||||||||||||||||||
As of December 31, 2022: | |||||||||||||||||||||||||||||
Other current asset | |||||||||||||||||||||||||||||
Other noncurrent asset | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | Location | |||||||||||||||||||||||||
Amount of gain (loss) recognized in total other comprehensive income on derivative | $ | $ | $ | $ | OCI | ||||||||||||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings | $ | $ | ( | $ | $ | ( | Interest Expense | ||||||||||||||||||||||
Fair value measurements at reporting date using | ||||||||||||||||||||||||||
June 30, 2023 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Interest rate derivative | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value measurements at reporting date using | ||||||||||||||||||||||||||
December 31, 2022 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Interest rate derivative | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Liability-classified awards | ||||||||||||||||||||||||||
Cash-settled awards | $ | $ | $ | $ | ||||||||||||||||||||||
Equity-classified awards | ||||||||||||||||||||||||||
Restricted stock awards | ||||||||||||||||||||||||||
Restricted stock time-based unit awards | ||||||||||||||||||||||||||
Restricted stock performance-based unit awards | ||||||||||||||||||||||||||
Stock-based compensation cost | ||||||||||||||||||||||||||
Tax Benefit(1) | ( | ( | ( | ( | ||||||||||||||||||||||
Stock-based compensation cost, net of tax | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Basic weighted-average common shares outstanding | ||||||||||||||||||||||||||
Dilutive effect of restricted stock awards granted to Board of Directors | ||||||||||||||||||||||||||
Dilutive effect of time-based restricted stock awards granted under the Equity Plan | ||||||||||||||||||||||||||
Dilutive effect of performance-based restricted stock awards granted under the Equity Plan | ||||||||||||||||||||||||||
Diluted weighted-average common shares outstanding |
(Thousands of Dollars) | |||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
$ |
(Thousands of Dollars) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Operations by business segment | ||||||||||||||||||||||||||
Adjusted gross profit: | ||||||||||||||||||||||||||
Completion Services(1) | $ | $ | $ | $ | ||||||||||||||||||||||
WC&I(1) | ||||||||||||||||||||||||||
Total adjusted gross profit | $ | $ | $ | $ | ||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||
Completion Services | WC&I | Total | Completion Services | WC&I | Total | |||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Cost of Services | ||||||||||||||||||||||||||||||||||||||
Gross profit excluding depreciation and amortization | ||||||||||||||||||||||||||||||||||||||
Management adjustments associated with cost of services | ||||||||||||||||||||||||||||||||||||||
Adjusted gross profit | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||
Completion Services | WC&I | Total | Completion Services | WC&I | Total | |||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Cost of Services | ||||||||||||||||||||||||||||||||||||||
Gross profit excluding depreciation and amortization | ||||||||||||||||||||||||||||||||||||||
Management adjustments associated with cost of services | ||||||||||||||||||||||||||||||||||||||
Adjusted gross profit | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
Total assets by segment: | ||||||||||||||
Completion Services | $ | $ | ||||||||||||
WC&I | ||||||||||||||
Corporate and Other | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Goodwill by segment: | ||||||||||||||
Completion Services | $ | $ | ||||||||||||
WC&I | ||||||||||||||
Corporate and Other | ||||||||||||||
Total goodwill | $ | $ |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||
(Thousands of Dollars) | (Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||
Completion Services | WC&I | Total | Completion Services | WC&I | Total | |||||||||||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||||||||
Northeast | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Central | ||||||||||||||||||||||||||||||||||||||
West Texas | ||||||||||||||||||||||||||||||||||||||
West | ||||||||||||||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||
(Thousands of Dollars) | (Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||
Completion Services | WC&I | Total | Completion Services | WC&I | Total | |||||||||||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||||||||
Northeast | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Central | ||||||||||||||||||||||||||||||||||||||
West Texas | ||||||||||||||||||||||||||||||||||||||
West | ||||||||||||||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
(Thousands of Dollars) | As a % of Revenue | Variance | ||||||||||||||||||||||||||||||||||||
Description | 2023 | 2022 | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||
Completion Services | $ | 905,518 | $ | 801,049 | 96 | % | 95 | % | $ | 104,469 | 13 | % | ||||||||||||||||||||||||||
WC&I | 39,573 | 41,863 | 4 | % | 5 | % | (2,290) | (5 | %) | |||||||||||||||||||||||||||||
Revenue | 945,091 | 842,912 | 100 | % | 100 | % | 102,179 | 12 | % | |||||||||||||||||||||||||||||
Completion Services | 645,438 | 616,319 | 68 | % | 73 | % | 29,119 | 5 | % | |||||||||||||||||||||||||||||
WC&I | 30,861 | 33,547 | 3 | % | 4 | % | (2,686) | (8 | %) | |||||||||||||||||||||||||||||
Costs of services | 676,299 | 649,866 | 72 | % | 77 | % | 26,433 | 4 | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 63,502 | 58,794 | 7 | % | 7 | % | 4,708 | 8 | % | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 39,699 | 35,855 | 4 | % | 4 | % | 3,844 | 11 | % | |||||||||||||||||||||||||||||
Merger and integration | 5,275 | 23,682 | 1 | % | 3 | % | (18,407) | (78 | %) | |||||||||||||||||||||||||||||
Loss (gain) on disposal of assets | 5,772 | (866) | 1 | % | 0 | % | 6,638 | (767 | %) | |||||||||||||||||||||||||||||
Operating income | 154,544 | 75,581 | 16 | % | 9 | % | 78,963 | 104 | % | |||||||||||||||||||||||||||||
Other income, net | 2,927 | 1,461 | 0 | % | 0 | % | 1,466 | 100 | % | |||||||||||||||||||||||||||||
Interest expense | (7,307) | (7,344) | (1 | %) | (1 | %) | 37 | (1 | %) | |||||||||||||||||||||||||||||
Total other income (expense) | (4,380) | (5,883) | 0 | % | (1 | %) | 1,503 | (26 | %) | |||||||||||||||||||||||||||||
Income tax expense | (100) | (1,240) | 0 | % | 0 | % | 1,140 | (92 | %) | |||||||||||||||||||||||||||||
Net income | $ | 150,064 | $ | 68,458 | 16 | % | 8 | % | $ | 81,606 | 119 | % | ||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
(Thousands of Dollars) | As a % of Revenue | Variance | ||||||||||||||||||||||||||||||||||||
Description | 2023 | 2022 | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||
Completion Services | $ | 1,801,082 | $ | 1,403,669 | 96 | % | 95 | % | $ | 397,413 | 28 | % | ||||||||||||||||||||||||||
WC&I | 79,681 | 74,286 | 4 | % | 5 | % | 5,395 | 7 | % | |||||||||||||||||||||||||||||
Revenue | 1,880,763 | 1,477,955 | 100 | % | 100 | % | 402,808 | 27 | % | |||||||||||||||||||||||||||||
Completion Services | 1,288,367 | 1,112,605 | 69 | % | 75 | % | 175,762 | 16 | % | |||||||||||||||||||||||||||||
WC&I | 61,876 | 61,917 | 3 | % | 4 | % | (41) | 0 | % | |||||||||||||||||||||||||||||
Costs of services | 1,350,243 | 1,174,522 | 72 | % | 79 | % | 175,721 | 15 | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 122,147 | 113,957 | 6 | % | 8 | % | 8,190 | 7 | % | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 79,380 | 71,714 | 4 | % | 5 | % | 7,666 | 11 | % | |||||||||||||||||||||||||||||
Merger and integration | 5,436 | 32,914 | 0 | % | 2 | % | (27,478) | (83 | %) | |||||||||||||||||||||||||||||
Loss (gain) on disposal of assets | 9,542 | (1,689) | 1 | % | 0 | % | 11,231 | (665 | %) | |||||||||||||||||||||||||||||
Operating income | 314,015 | 86,537 | 17 | % | 6 | % | 227,478 | 263 | % | |||||||||||||||||||||||||||||
Other income, net | 2,647 | 6,831 | 0 | % | 0 | % | (4,184) | (61 | %) | |||||||||||||||||||||||||||||
Interest expense | (13,505) | (14,718) | (1 | %) | (1 | %) | 1,213 | (8 | %) | |||||||||||||||||||||||||||||
Total other income (expense) | (10,858) | (7,887) | (1 | %) | (1 | %) | (2,971) | 38 | % | |||||||||||||||||||||||||||||
Income tax benefit (expense) | 100,900 | (1,400) | 5 | % | 0 | % | 102,300 | (7,307 | %) | |||||||||||||||||||||||||||||
Net income | $ | 404,057 | $ | 77,250 | 21 | % | 5 | % | $ | 326,807 | 423 | % | ||||||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 310,166 | $ | 218,476 | ||||||||||
Total current assets, excluding cash and cash equivalents | 566,727 | 507,539 | ||||||||||||
Total current liabilities, excluding current maturities of long-term debt and leases | 563,465 | 513,396 | ||||||||||||
Current maturities of long-term debt | 14,176 | 14,004 | ||||||||||||
Long-term debt, net of deferred financing costs and debt discount, less current maturities | $ | 340,327 | $ | 347,425 |
(Thousands of Dollars) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 310,166 | $ | 218,476 | ||||||||||
Debt, net of unamortized deferred financing costs and unamortized debt discount | $ | 354,503 | $ | 361,429 |
(Thousands of Dollars) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net cash provided by operating activities | $ | 399,207 | $ | 146,500 | ||||||||||
Net cash used in investing activities | (195,357) | (76,972) | ||||||||||||
Net cash used in financing activities | $ | (111,838) | $ | (22,340) |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Settlement Period | (a) Total Number of Shares Purchased(1),(2) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2).(3) | (d) Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs(2) | ||||||||||||||||||||||
April 1, 2023 through April 30, 2023 | 1,087 | $ | 8.15 | — | $ | 83,643,454 | ||||||||||||||||||||
May 1, 2023 through May 31, 2023 | 2,325,905 | 7.68 | 2,323,896 | 65,785,934 | ||||||||||||||||||||||
June 1, 2023 through June 30, 2023 | 798 | 8.82 | — | 65,785,934 | ||||||||||||||||||||||
Total | 2,327,790 | $ | 7.69 | 2,323,896 | $ | 65,785,934 | ||||||||||||||||||||
Exhibit Number | Exhibit Description | |||||||
Agreement and Plan of Merger, dated as of June 14, 2023, by and among Patterson-UTI Energy, Inc., Pecos Merger Sub Inc., Pecos Second Merger Sub LLC and NexTier Oilfield Solutions, Inc. (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on June 15, 2023). | ||||||||
Amended and Restated Bylaws, dated April 18, 2023 (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on April 24, 2023). | ||||||||
Amendment No. 1, dated June 8, 2023, to the Term Loan Agreement, dated as of May 25, 2018, by and among NexTier Oilfield Solutions Inc. (f/k/a Keane Group, Inc.), as parent guarantor, Keane Group Holdings LLC, as lead borrower, certain other subsidiaries of the Company as additional borrowers and guarantor parties thereto, the lender parties thereto and Barclays Bank PLC, as administrative and collateral agent (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on June 14, 2023). | ||||||||
Amendment No. 1, dated June 8, 2023, to the Second Amended and Restated Asset-Based Revolving Credit Agreement, dated as of October 31, 2019, among NexTier Oilfield Solutions Inc. (f/k/a Keane Group, Inc.), as parent guarantor, Keane Group Holdings LLC, as lead borrower, certain other subsidiaries of the Company as additional borrowers and guarantor parties thereto, the lender parties thereto and Bank of America, N.A., as administrative and collateral agent (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on June 14, 2023). | ||||||||
NexTier Oilfield Solutions Inc. Equity and Incentive Award Plan, as amended (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on June 14, 2023). | ||||||||
31.1* | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
31.2* | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
32.1** | Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
101.INS* | XBRL Instance Document - The Instance Document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
NexTier Oilfield Solutions Inc. (Registrant) | ||||||||
By: | /s/ Dipo Iluyomade | |||||||
Dipo Iluyomade | ||||||||
Chief Accounting Officer and Duly Authorized Officer | ||||||||
Date: July 26, 2023 | By: | /s/ Robert W. Drummond | ||||||||||||
Robert W. Drummond | ||||||||||||||
Chief Executive Officer and Director | ||||||||||||||
(Principal Executive Officer) |
Date: July 26, 2023 | By: | /s/ Kenneth Pucheu | ||||||||||||
Kenneth Pucheu | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
Date: July 26, 2023 | By: | /s/ Robert W. Drummond | ||||||||||||
Robert W. Drummond | ||||||||||||||
Chief Executive Officer and Director | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: July 26, 2023 | By: | /s/ Kenneth Pucheu | ||||||||||||
Kenneth Pucheu | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 1,034,693 | $ 1,002,684 |
Intangible assets, accumulated amortization | $ 90,873 | $ 82,043 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 228,549,000 | 233,995,000 |
Common stock outstanding (in shares) | 228,549,000 | 233,995,000 |
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenue | $ 945,091 | $ 842,912 | $ 1,880,763 | $ 1,477,955 |
Operating costs and expenses: | ||||
Cost of services | 676,299 | 649,866 | 1,350,243 | 1,174,522 |
Depreciation and amortization | 63,502 | 58,794 | 122,147 | 113,957 |
Selling, general and administrative expenses | 39,699 | 35,855 | 79,380 | 71,714 |
Merger and integration | 5,275 | 23,682 | 5,436 | 32,914 |
Loss (gain) on disposal of assets | 5,772 | (866) | 9,542 | (1,689) |
Total operating costs and expenses | 790,547 | 767,331 | 1,566,748 | 1,391,418 |
Operating income | 154,544 | 75,581 | 314,015 | 86,537 |
Other income (expense): | ||||
Other income, net | 2,927 | 1,461 | 2,647 | 6,831 |
Interest expense, net | (7,307) | (7,344) | (13,505) | (14,718) |
Total other income (expense) | (4,380) | (5,883) | (10,858) | (7,887) |
Income before income taxes | 150,164 | 69,698 | 303,157 | 78,650 |
Income tax benefit (expense) | (100) | (1,240) | 100,900 | (1,400) |
Net income | 150,064 | 68,458 | 404,057 | 77,250 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (318) | 538 | (322) | 253 |
Hedging activities | 2,624 | 1,565 | 2,066 | 7,177 |
Total comprehensive income | $ 152,370 | $ 70,561 | $ 405,801 | $ 84,680 |
Net income per share: | ||||
Basic net income per share (in dollars per share) | $ 0.66 | $ 0.28 | $ 1.75 | $ 0.32 |
Diluted net income per share (in dollars per share) | $ 0.64 | $ 0.27 | $ 1.72 | $ 0.31 |
Weighted-average shares outstanding: basic (in shares) | 229,033 | 243,969 | 231,084 | 243,621 |
Weighted-average shares outstanding: diluted (in shares) | 233,222 | 250,775 | 235,202 | 249,462 |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Statement [Abstract] | ||||
Depreciation | $ 60.3 | $ 54.3 | $ 115.9 | $ 105.2 |
Basis of Presentation and Nature of Operations |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations The accompanying unaudited condensed consolidated financial statements were prepared using United States Generally Accepted Accounting Principles ("GAAP") and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by GAAP for annual financial statements and should be read together with the Company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 16, 2023.Management believes the unaudited condensed consolidated financial statements included herein contain all adjustments necessary to present fairly the Company's financial position as of June 30, 2023 and the results of its operations and cash flows for the three and six months ended June 30, 2023 and 2022. Such adjustments are of a normal recurring nature. All intercompany transactions and balances have been eliminated. |
Summary of Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Please refer to Note (2) Summary of Significant Accounting Policies of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022 for the discussion on the Company's significant accounting policies. |
Acquisitions |
6 Months Ended |
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Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions (a) Alamo Acquisition On August 31, 2021 (the “Alamo Acquisition Date”), the Company completed its acquisition of Alamo in accordance with the terms of the Purchase Agreement, dated as of August 4, 2021 (the “Purchase Agreement”), by and among the Company, NexTier Completion Solutions Inc., Alamo Frac Holdings, LLC, Alamo and the “owner group” identified therein (the "Alamo Acquisition"). The Company acquired 100% of Alamo. The Alamo Acquisition was completed for cash consideration of $100.0 million, equity consideration of 26 million shares of the Company’s common stock valued at $82.3 million, post-closing services valued at $30.0 million, an estimated $15.9 million of contingent consideration, $7.4 million of non-contingent consideration, and a net working capital settlement of $0.5 million that was finalized in the fourth quarter of 2021 and was paid to the Company in the first quarter of 2022. The contingent consideration includes a Tier II upgrade payment and earnout payments, which were contingent upon the achievement of certain performance targets, as described in the Purchase Agreement. The earnout period ended in the fourth quarter of 2022, the performance targets were achieved, and the Company agreed with Alamo Frac Holdings, LLC and the group to cumulative earnout payments of $73.8 million, which were fully paid as of June 30, 2023. Merger and integration related costs were recognized separately from the acquisition of assets and assumptions of liabilities in the Alamo Acquisition. Merger costs consist of legal and professional fees and pre-merger notification fees. Integration costs consist of expenses incurred to integrate Alamo’s operations, aligning accounting processes and procedures, integrating its enterprise resource planning system with those of the Company, and any earnout payments. All of these costs are recorded within merger and integration costs on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income. For additional information regarding the Alamo Acquisition, refer to Note (3) Acquisitions of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022. (b) Asset Acquisition from Continental Intermodal Group LP On August 3, 2022 the Company entered into and closed a definitive agreement to purchase substantially all assets (and assume certain lease liabilities) of the sand hauling, wellsite storage and last mile logistics businesses of Continental Intermodal Group LP (“CIG”) and its subsidiaries (the “CIG Acquisition”) from CIG, Continental Intermodal Group – Trucking, LLC (“Trucking”) and CIG Logistics LLC (together with Trucking and CIG, “CIG Sellers”). The CIG Acquisition was completed for a purchase price of $31.3 million. At the time of close, the Company paid a total of $32.1 million, which included: (i) approximately $27.9 million in cash paid at closing to the CIG Sellers plus (ii) 500,000 shares of common stock. The $32.1 million transferred to CIG at the time of close included a deposit of $0.8 million for a transition services agreement for costs of services to be provided during the transition period. Accordingly, the purchase price of $31.3 million does not include the deposit of $0.8 million. The Company accounted for this acquisition as an asset acquisition pursuant to ASC 805. The purchase price of the acquisition was allocated amongst the acquired assets as the fair value of the acquired machinery and equipment assets represented substantially all of the fair value of the gross assets acquired. Additionally, the Company established a right of use asset and an operating lease liability of $0.9 million for the assumed lease liability. (c) Merger with Patterson-UTI Energy, Inc. On June 14, 2023, NexTier Oilfield Solutions Inc. entered into an Agreement and Plan of Merger (the "Merger Agreement") with Patterson-UTI Energy, Inc. ("Patterson-UTI"), Pecos Merger Sub Inc. ("Merger Sub Inc.") a wholly owned subsidiary of Patterson-UTI, and Pecos Second Merger Sub LLC ("Merger Sub LLC") a wholly owned subsidiary of Patterson-UTI providing that, among other things and subject to the terms and conditions of the Merger Agreement, at the Effective Time (as defined in the Merger Agreement): •Merger Sub Inc. will merge with and into NexTier, with NexTier continuing as the surviving entity (the “Surviving Corporation”) (the “First Company Merger”) and immediately following the First Company Merger, the Surviving Corporation will merge with and into Merger Sub LLC, with Merger Sub LLC continuing as the surviving entity (the “Second Company Merger” and, together with the First Company Merger, the “Mergers”); •Each share of common stock, par value $0.01 per share, of NexTier (“NexTier Common Stock”) then issued and outstanding immediately prior to the Effective Time (including each NexTier restricted stock award) will be converted into the right to receive 0.7520 shares of common stock, par value $0.01 per share, of Patterson-UTI (“Patterson-UTI Common Stock”); •Each share NexTier Common Stock held in treasury by NexTier or owned directly or indirectly by Patterson-UTI, Merger Sub Inc. or Merger Sub LLC will be automatically cancelled and will cease to exist, and no consideration will be issued therefor; and •Upon consummation of the Mergers and the other transactions contemplated by the Merger Agreement (the “Transactions”), NexTier will be a wholly owned subsidiary of Patterson-UTI. The consummation of the Merger Agreement is subject to the satisfaction or waiver of certain conditions, including, among others: •The adoption of the Merger Agreement by holders of at least a majority of the outstanding shares of NexTier Common Stock; •the approval of the Share Issuance by the holders of shares of Patterson-UTI Common Stock representing a majority of votes cast on the Share Issuance; and •The expiration or earlier termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). NexTier has agreed to operate its business in the ordinary course during the period between the execution of the Merger Agreement and the Effective Time, subject to specific exceptions set forth in the Merger Agreement, and have agreed to certain other customary restrictions on operations, as set forth in the Merger Agreement.
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Inventories, net |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, net | Inventories, net Inventories, net, consisted of the following as of June 30, 2023 and December 31, 2022:
Inventories are reported net of obsolescence reserves of $3.5 million and $3.4 million as of June 30, 2023 and December 31, 2022, respectively. The Company released $0.2 million of its obsolescence reserve and recognized $0.1 million of obsolescence expense, during the three and six months ended June 30, 2023, respectively.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt at June 30, 2023 and December 31, 2022 consisted of the following:
Below is a summary of the Company’s credit facilities outstanding as of June 30, 2023:
(1) Secured Overnight Financing Rate (“SOFR”) is subject to a 1.00% floor. In accordance with Reference Rate Reform (Topic 848) as described further in Note (16) New Accounting Pronouncements herein, on June 8, 2023 the Company amended both the 2019 ABL Facility and 2018 Term Loan Facility agreements to replace the use of the London Interbank Offered Rate ("LIBOR") with the Secured Overnight Financing Rate ("SOFR") in the calculation of each facility's respective interest rate plus an applicable margin. Maturities of the 2018 Term Loan Facility, 2021 Equipment Loan (each as defined herein), and Other long-term debt for the next five years are presented below:
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Significant Risks and Uncertainties |
6 Months Ended |
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Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Significant Risks and Uncertainties The Company operates in two reportable segments: Completion Services and WC&I, with significant concentration in the Completion Services segment. During the three months ended June 30, 2023 and 2022, sales to Completion Services customers represented 96% and 95% of the Company's consolidated revenue, respectively. During the six months ended June 30, 2023 and 2022, sales to Completion Services customers represented 96% and 95% of the Company's consolidated revenue, respectively. The Company depends on its customers' willingness to make operating and capital expenditures to explore for, develop and produce oil and natural gas onshore in the U.S. This activity is driven by many factors, including current and expected crude oil and natural gas prices. From the end of the fourth quarter of 2019 through mid-August 2020, the U.S. active rig count decreased by 70%, from 805 to 244 rigs before recovering to 351 rigs by the end of 2020. In 2021, the U.S. active rig count recovery continued, increasing 67% from 351 rigs at the end of 2020 to 586 rigs by the end of 2021. The activity growth since the end of 2021 continued to improve through the first quarter of 2023, closing at 755 active rigs. However, active rig count has since decreased slightly through the second quarter of 2023, closing at 674 active rigs as of June 30, 2023, though still up 15% from the end of 2021. Significant customers are those that individually account for 10% or more of the Company's consolidated revenue or total accounts receivable. For the three months ended June 30, 2023, the Company had one customer in the completions services segment that individually represented 12%, or $111.2 million, of the Company's consolidated revenue. For the three months ended June 30, 2022, there were no customers considered significant. For the six months ended June 30, 2023 and 2022, the Company had one significant customer in the Completions Services segment that individually represented 10% or $183.6 million and 10% or $142.1 million of the Company's consolidated revenue, respectively. For the three and six months ended June 30, 2023 and 2022, there were no suppliers that individually represented more than 5% of the Company's overall purchases.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives The Company uses an interest-rate-related derivative instrument to manage its variability of cash flows associated with changes in interest rates on its variable-rate debt. On June 8, 2023, the Company entered into Amendment No. 1 (the “TL Amendment”) to the Term Loan Agreement (the "TL Agreement"), dated May 25, 2018, by and among the Company, as parent guarantor, Keane Group Holdings LLC, as lead borrower, certain other subsidiaries of the Company as additional borrowers and guarantor parties thereto, the lender parties thereto and Barclays Bank PLC, as administrative agent and collateral agent. The TL Agreement governs the 2018 Term Loan Facility as otherwise described herein. The TL Amendment to the TL Agreement provides, among other things, for replacement of LIBOR with the term SOFR (as defined in the TL Amendment), plus a credit spread adjustment of 11.48 basis points as the reference rate for purposes of calculating interest under the TL Agreement and updates certain other provisions of the TL Agreement to reflect the transition from LIBOR to term SOFR. The TL Agreement had an initial aggregate principal amount of $350.0 million and, as made effective by the TL Amendment, has a variable interest rate based on SOFR, subject to a 1.0% floor. In June 2023, the Company terminated its existing interest rate swap executed June 22, 2018, and executed a new interest rate swap effective through March 31, 2025, to hedge its expected variable cash flows indexed to SOFR. The new interest rate swap is indexed to 1-month SOFR subject to a 1% floor to match the amended TL Agreement. The termination of the pre-existing interest swap and execution of a new interest rate swap qualifies as a contract modification within the scope of ASC 848, Reference Rate Reform, as the updated terms exclusively pertain to the reference rate. The Company is applying the following optional expedients as provided by ASC 848: (i) option to not de-designate a hedging relationship due to a change in a critical term, and (ii) option to apply certain expedients for the application of subsequent assessment methods for cash flow hedges. The following tables present the fair value of the Company's derivative instrument on a gross and net basis as of the periods shown below:
(1) Agreements are in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. (2) There are no amounts subject to an enforceable master netting arrangement that are not netted in these amounts. There are no amounts of related financial collateral received or pledged. The following table presents gains and losses for the Company's interest rate derivative designated as cash flow hedges (in thousands of dollars):
The gain (loss) recognized in other comprehensive income for the derivative instrument is presented within hedging activities in the Condensed Consolidated Statements of Operations and Comprehensive Income. There were no gains or losses recognized in earnings as a result of excluding amounts from the assessment of hedge effectiveness. Based on recorded values as of June 30, 2023, $4.0 million of net gains will be reclassified from accumulated other comprehensive income into earnings within the next 12 months. See Note (8) Fair Value Measurements and Financial Information for discussion on fair value measurements related to the Company's derivative instrument.
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Fair Value Measurements and Financial Information |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Financial Information | Fair Value Measurements and Financial Information The Company discloses the required fair values of financial instruments in its assets and liabilities under the hierarchy guidelines, in accordance with GAAP. As of June 30, 2023, the Company's financial instruments consisted of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, derivative instruments, and long-term debt. As of June 30, 2023 and December 31, 2022, the carrying values of the Company's financial instruments, included in its Condensed Consolidated Balance Sheets, approximated or equaled their fair values. Recurring Fair Value Measurement As of June 30, 2023 and December 31, 2022, the Company had one financial instrument measured at fair value on a recurring basis, which is its interest rate derivative (see Note (7) Derivatives above). During the year ended December 31, 2022, the Company also measured the fair value of the earnout payments originating from the Alamo Acquisition on a recurring basis. The earnout period ended in the fourth quarter of 2022, the performance targets were achieved, and the Company has agreed with Alamo Frac Holdings, LLC and the owner group to cumulative earnout payments of $73.8 million, which were fully paid as of June 30, 2023. Additionally, during the year ended December 31, 2022, the Company held an equity security investment composed primarily of common equity shares and warrants in a publicly traded company, in addition to an immaterial balance related to contingent value rights ("CVRs"). As of December 31, 2022, the Company sold all of its common equity shares and warrants and its investment in the CVRs has matured and no longer holds any value. The financial instruments are presented in the Condensed Consolidated Balance Sheets as follows: the interest rate derivative is presented within other current assets and other noncurrent assets, the earnout payments are presented within accrued expenses, and the equity security investment was presented within other current assets. The fair market value of the derivative financial instrument reflected on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 was determined using industry-standard models that consider various assumptions, including current market and contractual rates for the underlying instrument, time value, implied volatilities, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace through the full term of the instrument and can be supported by observable data. The fair value of the earnout payments was measured at the end of each reporting period through the end of the earnout period, which occurred in the fourth quarter of 2022. Gains and losses recognized in relation to the change in fair value of the earnout payments were recognized within merger and integration in the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note (3) Acquisitions for further discussion. The fair value of the equity security investment was measured at the end of each reporting period. Gains and losses recognized in relation to the change in fair value of the equity security investment were recognized within other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income. The following tables present the placement in the fair value hierarchy of assets and liabilities that were measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (in thousands of dollars):
Credit Risk The Company's financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, the derivative contract and trade receivables. The Company's cash balances on deposit with financial institutions totaled $310.2 million and $218.5 million as of June 30, 2023 and December 31, 2022, respectively, which exceeded Federal Deposit Insurance Corporation insured limits. The Company regularly monitors these institutions' financial condition. The credit risk from the derivative contract derives from the potential failure of the counterparty to perform under the terms of the derivative contract. The Company minimizes counterparty credit risk in the derivative instrument by entering into the transaction with a high-quality counterparty, whose Standard & Poor's credit rating is higher than BBB. The derivative instrument entered into by the Company does not contain credit-risk-related contingent features. The majority of the Company's trade receivables have payment terms of 30 to 60 days. Significant customers are those that individually account for 10% or more of the Company's consolidated revenue or total accounts receivable. As of June 30, 2023, there were two customers considered significant each representing 12% or $42.0 million and $40.2 million, respectively, of the Company's total trade receivables. As of December 31, 2022, trade receivables from two customers individually represented 11% and 10% or $30.9 million and $29.8 million, respectively, of the Company’s total accounts receivable. The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. The Company has a process in place to collect substantially all receivables within 30 to 60 days of aging. As of June 30, 2023 and December 31, 2022, the Company had $1.2 million and $1.4 million in allowance for credit losses, respectively. During the three and six months ended June 30, 2023, the Company did not recognize any bad debt expense.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation As of June 30, 2023, the Company has five types of stock-based compensation outstanding under its Equity Award Plans: (i) restricted stock awards issued to independent directors, (ii) restricted stock units issued to executive officers and key management employees, (iii) non-qualified stock options issued to executive officers, (iv) performance-based restricted stock awards issued to executive officers and key management employees, (v) and cash-settled performance unit awards issued to executive officers and key management employees. The following table summarizes stock-based compensation costs for the three and six months ended June 30, 2023 and 2022 (in thousands of dollars):
(1) Any tax benefit for stock-based compensation during the six months ended June 30, 2023 will be offset by the change in valuation allowance. The Company was in a valuation allowance position during the six months ended June 30, 2023. For additional information regarding stock-based compensation, refer to Note (12) Stock-Based Compensation of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022.
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Stockholders' Equity |
6 Months Ended |
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Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity (a) Vesting of Stock Awards During the three and six months ended June 30, 2023, 377,418 and 2,779,891 shares were issued, net of share settlements for payment of payroll taxes, upon the vesting of stock-based compensation awards. Shares withheld during the period were immediately retired by the Company. (b) Share Repurchase Program On October 25, 2022, the Company announced the board of directors approved a new share repurchase program for up to $250.0 million through December 31, 2023. The share repurchase program may be executed from time to time in open market transactions, through block trades, in privately negotiated transactions, through derivative transactions, through 10b5-1 plans, or by other means. The amount, timing and terms of any share repurchases will be determined based on prevailing market conditions and other factors, including applicable black-out periods. The share repurchase program does not obligate NexTier to purchase any shares of common stock during any period and the program may be modified or suspended at any time at NexTier’s discretion. During the three and six months ended June 30, 2023, the Company repurchased 2,323,896 and 8,225,834 shares of its common stock for $17.9 million and $71.3 million at an average price of $7.68 and $8.67, respectively. As of June 30, 2023, the Company has settled a total of 19,697,425 share repurchases since the announcement of the program for $184.2 million at an average price of $9.35. Given the pending merger agreement with Patterson-UTI, the Company has suspended the share repurchase plan. The combined company remains committed to return 50% of its free cash flow to shareholders on an annual basis. The Company accounts for the purchase price of repurchased common shares in excess of par value as a reduction of additional paid-in capital, and will continue to do so until additional paid-in capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction to retained earnings. As enacted by the Inflation Reduction Act of 2022 ("IRA"), the Company accrued stock repurchase excise tax of $0.5 million for the three and six months ended June 30, 2023.
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic income per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect, such as stock awards from the Equity Awards Plan, had been issued. Anti-dilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income per share as their impact would be anti-dilutive. A reconciliation of the numerators and denominators used for the basic and diluted net income per share computations is as follows (in thousands of dollars):
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Income Taxes |
6 Months Ended |
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Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three and six months ended June 30, 2023, the Company recognized an income tax benefit of approximately $5.5 million and $112.9 million, respectively, due to partial releases of the valuation allowance on our deferred tax assets. These releases were primarily due to entering into a three-year cumulative pre-tax book income position and reflects our increased expectation to utilize these deferred tax assets going forward based on improved operating results and market conditions. Income tax expense for the three and six months ended June 30, 2023 prior to the release of the valuation allowance of $5.5 million and $112.9 million, respectively, was $5.6 million and $12.0 million, respectively, which resulted in net income tax expense of $0.1 million and net income tax benefit of $100.9 million, respectively. For additional information regarding income taxes, refer to Note (17) Income Taxes of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies As of June 30, 2023 and December 31, 2022, the Company had $16.2 million and $4.9 million of deposits on equipment, respectively. Outstanding purchase commitments on equipment were $142.6 million and $225.5 million, as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, the Company had a letter of credit of $19.7 million under the 2019 ABL Facility (as defined herein). Aggregate minimum commitments under long-term raw material supply contracts for the next five years as of June 30, 2023 are listed below:
Litigation From time to time, the Company is subject to legal and administrative proceedings, settlements, investigations, claims and actions, as is typical of the industry. These claims include, but are not limited to, contract claims, environmental claims, employment related claims, claims alleging injury or claims related to operational issues and motor vehicle accidents. The Company's assessment of the likely outcome of litigation matters is based on its judgment of a number of factors, including experience with similar matters, past history, precedents, relevant financial information and other evidence and facts specific to the matter. In accordance with GAAP, the Company accrues for contingencies where the occurrence of a material loss is probable and can be reasonably estimated, based on the Company's best estimate of the expected liability and the Company may record an offsetting receivable to the extent such liability is recoverable from insurance. The Company may increase or decrease its legal accruals in the future, on a matter-by-matter basis, to account for developments in such matters. Notwithstanding the uncertainty as to the final outcome and based upon the information currently available to it, the Company does not currently believe these matters in aggregate will have a material adverse effect on its financial position, results of operations or liquidity. Environmental The Company is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for protection of the environment. The Company cannot predict the future impact of such standards and requirements, which are subject to change and can have retroactive effectiveness. The Company continues to monitor the status of these laws and regulations. Currently, the Company has not been fined, cited or notified of any environmental violations that would have a material adverse effect upon its financial position, liquidity or capital resources. However, management does recognize that by the very nature of the Company's business, material costs could be incurred in the near term to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions which may be required, the determination of the Company's liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or through indemnification. Regulatory Audits The Company is subject to routine audits by taxing authorities. As of June 30, 2023, the Company had recorded estimates of potential assessments, the majority of which is related to an estimate of $14.8 million of potential assessment and exposures for all taxing jurisdictions related to the Alamo Acquisition. As of June 30, 2023, the Company also has an offsetting indemnification receivable of $14.8 million from the Owner Group, recorded pursuant to the Purchase Agreement, in Prepaid and other current assets in the Condensed Consolidated Balance Sheet. Both the estimated liability and indemnification receivable were recorded in the purchase price allocation at the time of the Alamo Acquisition in 2021. During the year ended December 31, 2022, the Company obtained additional information that resulted in a reduction of the Company's accrual and offsetting indemnification receivable related to this audit by $2.9 million. There were no material changes to the accrual and the offsetting indemnification receivable during the quarter ended June 30, 2023.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Cerberus Operations and Advisory Company, Cerberus Capital Management, L.P., and Cerberus Technology Solutions LLC, affiliates of the Company's principal equity holder, provide certain consulting services to the Company. The Company paid less than $0.1 million and $0.2 million during the three months ended June 30, 2023 and 2022, respectively, for these services. The Company paid less than $0.1 million and $0.4 million during the six months ended June 30, 2023 and 2022, respectively, for these services.As part of the Purchase Agreement, the Company agreed to provide certain post-closing services to Alamo Frac Holdings, LLC valued at $30.0 million in the aggregate. During the three and six months ended June 30, 2023, the Company did not provide any services to Alamo Frac Holdings, LLC as part of the Purchase Agreement. The Company has a remaining customer contract liability related to these services of $19.4 million as of June 30, 2023. |
Business Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments In accordance with ASC 280, "Segment Reporting", the Company routinely evaluates whether its separate segments have changed. This determination is made based on the following factors: (i) the Company’s chief operating decision maker (“CODM”) is currently managing each operating segment as a separate business and evaluating the performance of each segment and making resource allocation decisions distinctly and expects to do so for the foreseeable future, and (ii) discrete financial information for each operating segment is available. The following is a description of each reportable segment: Completion Services The Company’s Completion Services segment consists of the following businesses and service lines: (i) fracturing services; (ii) wireline and pumping services; and (iii) completion support services, which includes our Power Solutions natural gas fueling business, our proppant last mile logistics and storage business, and our research and technology department. Well Construction and Intervention Services Following the sale of the Company's coiled tubing assets, the Company’s WC&I Services segment consists of cementing services. On August 1, 2022, the Company sold its coiled tubing assets to Gladiator for a cash purchase price of $21.6 million, which resulted in a gain on sale of assets of $11.6 million. The divestiture of non-core assets is consistent with the Company’s strategy to repurpose capital towards the highest return projects that fit the Company’s strategy around wellsite integration, while also strengthening liquidity. 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.
(1) Adjusted gross profit 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 is defined as revenue less cost of services excluding depreciation and amortization, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance.
Disaggregation of Revenue Revenue activities during the three and six months ended June 30, 2023 and 2022 were as follows:
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New Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements (a) Recently Adopted Accounting Standards In July 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-05 "Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). ASU 2021-05 allows a lessor to classify and account for a lease with variable lease payments that doesn't depend on an index or rate as an operating lease if both: a) The lease would have been classified as a sales-type lease or a direct-financing lease in accordance with the lease classification guidance in Topic 842; and b) The lessor would’ve otherwise recognized a day-one loss. This standard was effective for fiscal years beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)” (“ASU 2020-06”). ASU 2020-06 simplifies the guidance on the issuer's accounting for convertible debt instruments and convertible preferred stock. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. In October 2021, the FASB issued ASU 2021-08 “Business Combinations (Topic 805) Accounting for Contract Assets and Contact Liabilities from Contracts with Customers” ("ASU 2021-08"). ASU 2021-08 requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The Company adopted this standard on January 1, 2023, and there was no material impact on the financial statements. In December 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-06 “Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848". ASU 2022-06 provides optional expedients that permit an entity to not apply otherwise applicable US GAAP to contracts or transactions that are modified or otherwise affected due to reference rate reform. The ASU defers the sunset date of ASC 848 from December 31, 2022, which was previously addressed in ASU 2020-04 and ASU 2021-01, to December 31, 2024. Entities that apply ASC 848 can continue to do so until December 31, 2024. The Company adopted this standard during the second quarter of 2023, and there was no material impact on the financial statements. (b) Recently Issued Accounting Standards There are no recently issued Accounting Standards that have not been adopted that are expected to impact the Company.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||||
Net income | $ 150,064 | $ 253,993 | $ 68,458 | $ 8,792 | $ 404,057 | $ 77,250 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 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 |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements were prepared using United States Generally Accepted Accounting Principles ("GAAP") and the instructions to Form 10-Q and Regulation S-X. |
New Accounting Pronouncements | (a) Recently Adopted Accounting Standards In July 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-05 "Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). ASU 2021-05 allows a lessor to classify and account for a lease with variable lease payments that doesn't depend on an index or rate as an operating lease if both: a) The lease would have been classified as a sales-type lease or a direct-financing lease in accordance with the lease classification guidance in Topic 842; and b) The lessor would’ve otherwise recognized a day-one loss. This standard was effective for fiscal years beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)” (“ASU 2020-06”). ASU 2020-06 simplifies the guidance on the issuer's accounting for convertible debt instruments and convertible preferred stock. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. In October 2021, the FASB issued ASU 2021-08 “Business Combinations (Topic 805) Accounting for Contract Assets and Contact Liabilities from Contracts with Customers” ("ASU 2021-08"). ASU 2021-08 requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The Company adopted this standard on January 1, 2023, and there was no material impact on the financial statements. In December 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-06 “Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848". ASU 2022-06 provides optional expedients that permit an entity to not apply otherwise applicable US GAAP to contracts or transactions that are modified or otherwise affected due to reference rate reform. The ASU defers the sunset date of ASC 848 from December 31, 2022, which was previously addressed in ASU 2020-04 and ASU 2021-01, to December 31, 2024. Entities that apply ASC 848 can continue to do so until December 31, 2024. The Company adopted this standard during the second quarter of 2023, and there was no material impact on the financial statements. (b) Recently Issued Accounting Standards There are no recently issued Accounting Standards that have not been adopted that are expected to impact the Company.
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Inventories, net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories, net | Inventories, net, consisted of the following as of June 30, 2023 and December 31, 2022:
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Long-Term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Long-term debt at June 30, 2023 and December 31, 2022 consisted of the following:
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Schedule of line of credit facilities | Below is a summary of the Company’s credit facilities outstanding as of June 30, 2023:
(1) Secured Overnight Financing Rate (“SOFR”) is subject to a 1.00% floor.
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Schedule of maturities of long-term debt | Maturities of the 2018 Term Loan Facility, 2021 Equipment Loan (each as defined herein), and Other long-term debt for the next five years are presented below:
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Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of offsetting assets | The following tables present the fair value of the Company's derivative instrument on a gross and net basis as of the periods shown below:
(1) Agreements are in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. (2) There are no amounts subject to an enforceable master netting arrangement that are not netted in these amounts. There are no amounts of related financial collateral received or pledged.
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Schedule of offsetting liabilities | The following tables present the fair value of the Company's derivative instrument on a gross and net basis as of the periods shown below:
(1) Agreements are in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. (2) There are no amounts subject to an enforceable master netting arrangement that are not netted in these amounts. There are no amounts of related financial collateral received or pledged.
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Schedule of cash flow hedges included in AOCI | The following table presents gains and losses for the Company's interest rate derivative designated as cash flow hedges (in thousands of dollars):
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Fair Value Measurements and Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of assets and liabilities measured on recurring basis | The following tables present the placement in the fair value hierarchy of assets and liabilities that were measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (in thousands of dollars):
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Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock based compensation cost | The following table summarizes stock-based compensation costs for the three and six months ended June 30, 2023 and 2022 (in thousands of dollars):
|
Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share | A reconciliation of the numerators and denominators used for the basic and diluted net income per share computations is as follows (in thousands of dollars):
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of aggregate minimum commitments | Aggregate minimum commitments under long-term raw material supply contracts for the next five years as of June 30, 2023 are listed below:
|
Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
(1) Adjusted gross profit 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 is defined as revenue less cost of services excluding depreciation and amortization, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance.
Revenue activities during the three and six months ended June 30, 2023 and 2022 were as follows:
|
Inventories, net - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory [Line Items] | ||
Total inventory, net | $ 73,415 | $ 66,395 |
Sand, including freight | ||
Inventory [Line Items] | ||
Total inventory, net | 12,773 | 15,901 |
Chemicals and consumables | ||
Inventory [Line Items] | ||
Total inventory, net | 6,481 | 6,854 |
Materials and supplies | ||
Inventory [Line Items] | ||
Total inventory, net | $ 54,161 | $ 43,640 |
Inventories, net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Inventory Disclosure [Abstract] | |||
Inventory valuation reserves | $ (3.5) | $ (3.5) | $ (3.4) |
Inventory write-down | $ 0.2 | $ 0.1 |
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Other long-term debt | $ 138 | $ 273 |
Total debt, net of unamortized debt discount and debt issuance costs | 354,503 | 361,429 |
Less: Current portion | (14,176) | (14,004) |
Long-term debt, net of unamortized debt discount and debt issuance costs | 340,327 | 347,425 |
2021 Equipment Loan | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 24,589 | 30,342 |
Line of Credit | Revolving Credit Facility | 2018 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 332,500 | 334,250 |
Less: Unamortized debt discount and debt issuance costs | (2,724) | $ (3,436) |
Notes Payable | 2021 Equipment Loan | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 24,589 |
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt, net of unamortized debt discount and debt issuance costs | $ 354,503 | $ 361,429 |
Term Loan | 2018 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
2023 | 7,791 | |
2024 | 15,790 | |
2025 | 333,646 | |
2026 | 0 | |
2027 | 0 | |
Total debt, net of unamortized debt discount and debt issuance costs | $ 357,227 |
Significant Risks and Uncertainties (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
segment
|
Mar. 31, 2023
rig
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2019
rig
|
Jun. 30, 2023
USD ($)
rig
|
Jun. 30, 2022
USD ($)
|
Aug. 15, 2020
rig
|
Dec. 31, 2021
rig
|
Dec. 31, 2020
rig
|
|
Concentration Risk [Line Items] | |||||||||
Number of reportable segments | segment | 2 | ||||||||
Number of rigs in trough | rig | 755 | 805 | 674 | 244 | 586 | 351 | |||
Concentration risk percentage, oil rig, (decrease) increase, compared to prior period (as a percent) | (70.00%) | 15.00% | 67.00% | ||||||
Revenue | $ 945,091 | $ 842,912 | $ 1,880,763 | $ 1,477,955 | |||||
Customer Concentration Risk | Revenue | Customer 1 | |||||||||
Concentration Risk [Line Items] | |||||||||
Concentration risk (as a percent) | 12.00% | 10.00% | 10.00% | ||||||
Revenue | $ 111,200 | $ 183,600 | $ 142,100 | ||||||
Completion Services | |||||||||
Concentration Risk [Line Items] | |||||||||
Revenue | $ 905,518 | $ 801,049 | $ 1,801,082 | $ 1,403,669 | |||||
Completion Services | Customer Concentration Risk | Revenue | |||||||||
Concentration Risk [Line Items] | |||||||||
Concentration risk (as a percent) | 96.00% | 95.00% | 96.00% | 95.00% |
Derivatives - Narrative (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
May 25, 2018 |
Jun. 30, 2023 |
Jun. 30, 2018 |
|
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative (ineffective portion) | $ 0 | ||
Net gain (loss) expected to be reclassified from AOCI into earnings in the next 12 months | 4,000,000 | ||
London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
Variable rate floor (as a percent) | 1.00% | ||
2018 Term Loan Facility | Term Loan | London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
Derivative, basis spread on variable rate | 0.1148% | ||
Floor interest rate (as a percent) | 1.00% | ||
Revolving Credit Facility | 2018 Term Loan Facility | Line of Credit | |||
Derivative [Line Items] | |||
Original facility size | $ 350,000,000 | $ 350,000,000 |
Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in total other comprehensive income on derivative | $ 2,624 | |||
Derivative designated as hedging instruments | Interest rate derivative | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in total other comprehensive income on derivative | $ 1,565 | $ 2,066 | $ 7,177 | |
Derivative designated as hedging instruments | Interest rate derivative | Interest Expense | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings | $ 827 | $ (691) | $ 1,485 | $ (1,378) |
Fair Value Measurements and Financial Information - Measured on Recurring Basis (Details) - Recurring - Interest rate derivative - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets: | ||
Interest rate derivative | $ 6,912 | $ 6,686,000 |
Level 1 | ||
Assets: | ||
Interest rate derivative | 0 | 0 |
Level 2 | ||
Assets: | ||
Interest rate derivative | 6,912 | 6,686,000 |
Level 3 | ||
Assets: | ||
Interest rate derivative | $ 0 | $ 0 |
Stock-Based Compensation - Narrative (Details) |
Jun. 30, 2023
plan
|
---|---|
Share-Based Payment Arrangement [Abstract] | |
Number of types of equity-based compensation | 5 |
Stockholders' Equity - Vesting Of Stock Awards (Details) - shares |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Equity [Abstract] | ||
Shares issued, net of share settlements for payroll taxes (in shares) | 377,418 | 2,779,891 |
Stockholders' Equity - Stock Repurchase (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Oct. 25, 2022 |
|
Class of Stock [Line Items] | |||
Percentage of free cash flow to return to shareholders on an annual basis | 50.00% | ||
Excise tax on share repurchases | $ 497,000 | $ 500,000 | |
Common stock | |||
Class of Stock [Line Items] | |||
Share repurchase program, authorized amount | $ 250,000,000 | ||
Stock repurchased (in shares) | 2,323,896 | 8,225,834 | |
Total share repurchases | $ 17,900,000 | $ 71,300,000 | |
Stock repurchased (in dollars per share) | $ 7.68 | $ 8.67 | |
Stock repurchased settled during period, shares (in shares) | 19,697,425 | ||
Stock repurchased settled during period, value | $ 184,200,000 | ||
Stock repurchased settled during period, price per share (in dollars per share) | $ 9.35 |
Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Numerator: | ||||||
Net income | $ 150,064 | $ 253,993 | $ 68,458 | $ 8,792 | $ 404,057 | $ 77,250 |
Denominator: | ||||||
Basic weighted-average common shares outstanding (in shares) | 229,033 | 243,969 | 231,084 | 243,621 | ||
Diluted weighted-average common shares outstanding (in shares) | 233,222 | 250,775 | 235,202 | 249,462 | ||
Restricted stock awards | ||||||
Denominator: | ||||||
Dilutive effect of awards granted (in shares) | 83 | 195 | 76 | 180 | ||
Restricted stock units | ||||||
Denominator: | ||||||
Dilutive effect of awards granted (in shares) | 2,565 | 5,223 | 2,546 | 4,628 | ||
Restricted stock performance-based unit awards | ||||||
Denominator: | ||||||
Dilutive effect of awards granted (in shares) | 1,541 | 1,388 | 1,496 | 1,033 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Deferred income tax benefit (expense) | $ 5,500 | $ 112,926 | $ 0 | |
Valuation allowance, deferred tax asset, , amount | 5,500 | (112,900) | ||
Income tax expense amount recognized on valuation allowance, amount | 5,600 | 12,000 | ||
Income tax benefit (expense) | $ (100) | $ (1,240) | $ 100,900 | $ (1,400) |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Alamo | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Tax estimate | $ 14,800 | |
Indemnification asset, amount | 14,800 | |
Indemnification receivable | $ 2,900 | |
Revolving Credit Facility | 2019 ABL Facility | Line of Credit | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Letters of credit issued | 19,650 | |
Capital Addition Purchase Commitments | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Deposits on equipment | 16,200 | 4,900 |
Purchase commitments | $ 142,600 | $ 225,500 |
Commitments and Contingencies - Schedule of Aggregate Minimum Commitments (Details) - Inventories $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | $ 21,439 |
2024 | 18,464 |
2025 | 3,960 |
2026 | 0 |
2027 | 0 |
Total | $ 43,863 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Related Party Transaction [Line Items] | ||||
Costs and Expenses | $ 790,547 | $ 767,331 | $ 1,566,748 | $ 1,391,418 |
Affiliated Entity | Consulting Services | ||||
Related Party Transaction [Line Items] | ||||
Costs and Expenses | 100 | $ 200 | 100 | $ 400 |
Affiliated Entity | Alamo | ||||
Related Party Transaction [Line Items] | ||||
Post close services | 30,000 | |||
Remaining customer contract liability | $ 19,400 | $ 19,400 |
Business Segments - Narratives (Details) - Disposal Group, Disposed of by Sale - Coiled Tubing Assets $ in Millions |
Aug. 01, 2022
USD ($)
|
---|---|
Segment Reporting Information [Line Items] | |
Proceeds from sales of assets | $ 21.6 |
Gain on sale of assets | $ 11.6 |
Business Segments - Adjusted Gross Profit (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Total adjusted gross profit | $ 268,792 | $ 193,046 | $ 530,520 | $ 303,433 |
Completion Services | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted gross profit | 260,080 | 184,730 | 512,715 | 291,064 |
WC&I | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted gross profit | $ 8,712 | $ 8,316 | $ 17,805 | $ 12,369 |
Business Segments - Gross Profit by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 945,091 | $ 842,912 | $ 1,880,763 | $ 1,477,955 |
Cost of Services | 676,299 | 649,866 | 1,350,243 | 1,174,522 |
Gross profit excluding depreciation and amortization | 268,792 | 193,046 | 530,520 | 303,433 |
Management adjustments associated with cost of services | 0 | 0 | 0 | 0 |
Adjusted gross profit | 268,792 | 193,046 | 530,520 | 303,433 |
Completion Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 905,518 | 801,049 | 1,801,082 | 1,403,669 |
Cost of Services | 645,438 | 616,319 | 1,288,367 | 1,112,605 |
Gross profit excluding depreciation and amortization | 260,080 | 184,730 | 512,715 | 291,064 |
Management adjustments associated with cost of services | 0 | 0 | 0 | 0 |
Adjusted gross profit | 260,080 | 184,730 | 512,715 | 291,064 |
WC&I | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 39,573 | 41,863 | 79,681 | 74,286 |
Cost of Services | 30,861 | 33,547 | 61,876 | 61,917 |
Gross profit excluding depreciation and amortization | 8,712 | 8,316 | 17,805 | 12,369 |
Management adjustments associated with cost of services | 0 | 0 | 0 | 0 |
Adjusted gross profit | $ 8,712 | $ 8,316 | $ 17,805 | $ 12,369 |
Business Segments - Schedule of Assets and Goodwill by Segment (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 2,163,566 | $ 1,727,168 |
Goodwill | 192,780 | 192,780 |
Operating Segments | Completion Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,629,596 | 1,404,557 |
Goodwill | 192,780 | 192,780 |
Operating Segments | WC&I | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 40,394 | 38,150 |
Goodwill | 0 | 0 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 493,576 | 284,461 |
Goodwill | $ 0 | $ 0 |
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