Property and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment consist of the following:

	Estimated useful lives (in years)	September 30,		December 31,
($ in thousands)		2020		2019
Land	N/A	$	5,400	$	5,400
Field services equipment	2-7	1,040,325		978,418
Vehicles	4-7	59,402		60,290
Buildings and facilities	5-30	31,881		29,930
Office equipment, furniture, and software	2-7	6,640		6,623
		1,143,648		1,080,661
Less accumulated depreciation and amortization		(581,220)		(455,687)
		562,428		624,974
Construction in-progress	N/A	20,437		26,729
		$	582,865	$	651,703

Depreciation expense for the three months ended September 30, 2020 and 2019 was $42.4 million and $39.3 million, respectively. During the nine months ended September 30, 2020 and 2019, the Company recognized depreciation expense of $126.3 million and $112.4 million, respectively.

During the nine months ended September 30, 2020, as a result of negative market indicators including the COVID-19 pandemic, the increased supply of low-priced oil, and customer cancellations, the Company concluded these triggering events could indicate possible impairment of property and equipment. The Company performed a quantitative and qualitative impairment analysis and determined that no impairment had occurred as of March 31, 2020. As of September 30, 2020 the Company concluded that no additional triggering events occurred and the conclusion reached at March 31, 2020 is still appropriate. Such analysis required management to make estimates and assumptions based on historical data and consideration of future market conditions. Given the uncertainty inherent in any projection, heightened by the possibility of unforeseen additional effects of COVID-19, actual results may differ from the estimates and assumptions used, or conditions may change, which could result in impairment charges in the future.