Segment Reporting

9 Months Ended

Sep. 30, 2017

Segment Reporting

Segment Reporting

NOTE 17. SEGMENT REPORTING

The Company’s operations are all located in the United States and organized into two reportable segments: Well Services and Processing Solutions. Our reportable segments comprise the structure used by our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance during the years presented in the accompanying condensed consolidated financial statements. Our CODM evaluates the segments’ operating performance based on multiple measures including Adjusted EBITDA, rig hours and rig utilization. The following is a description of the segments:

Well Services.  The Company’s well service rigs facilitate operations throughout the lifecycle of a well, including (i) well completion support; (ii) workover; (iii) well maintenance; and (iv) decommissioning. We provide these advanced well services to Exploration & Production (“E&P”) companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services. Our well service rigs are designed to support growing U.S. horizontal well demands. In addition to our core well service rig operations, we offer a suite of complementary services, including wireline, snubbing, fluid management and well service-related equipment rentals.

Processing Solutions.  The Company provides a range of proprietary, modular equipment for the processing of rich natural gas streams at the wellhead or central gathering points in basins where drilling and completion activity has outpaced the development of permanent processing infrastructure.

Segment information as of September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016 is as follows (in millions):

			Processing
	Well Services		Solutions		Total
	Three months ended September 30, 2017
Revenues	$	39.0	$	2.1	$	41.1
Operating income (loss)		(5.2)		0.4		(4.8)
Interest expense, net		(4.3)		—		(4.3)
	Nine months ended September 30, 2017
Revenues	$	97.9	$	5.9	$	103.8
Operating income (loss)		(16.0)		0.8		(15.2)
Interest expense, net		(5.8)		(0.1)		(5.9)
	As of September 30, 2017
Total assets	$	229.3	$	27.7	$	257.0

			Processing
	Well Services		Solutions		Total
	Three months ended September 30, 2016
Revenues	$	14.2	$	1.9	$	16.1
Operating income		0.1		0.2		0.3
Interest expense, net		(0.1)		-		(0.1)
	Nine months ended September 30, 2016
Revenues	$	22.0	$	4.5	$	26.5
Operating loss		(1.0)		(0.6)		(1.6)
Interest expense, net		(0.2)		(0.1)		(0.3)
	As of December 31, 2016
Total assets	$	107.9	$	27.8	$	135.7