Note 13 — Segment Reporting

The Company’s operations are all located in the United States and organized into three reportable segments: High Specification Rigs, Completion and Other Services and Processing Solutions. The reportable segments comprise the structure used by the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance during the years presented in the accompanying condensed consolidated financial statements. The CODM evaluates the segments’ operating performance based on multiple measures including Operating income, Adjusted EBITDA, rig hours and rig utilization. The tables below present the operating income measurement, as the Company believes this is most consistent with the principals used in measuring the condensed consolidated financial statements.

The following is a description of each operating segment:

High Specification Rigs. The Company’s High Specification Rigs facilitate operations throughout the lifecycle of a well, including (i) completion, (ii) workover, (iii) well maintenance and (iv) decommissioning. The Company provides these advanced well services to E&P companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services. The Company’s high-spec rigs are designed to support growing U.S. horizontal well demands. In addition to the core well service rig operations, the Company offers a suite of complementary services.

Completion and Other Services. The Completion and Other Services segment provides wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with the high-spec rig services to enhance the production of a well.

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.

Other. The Company incurs costs, indicated as Other, that are not allocable to any of the operating segments or lines of business and include corporate general and administrative expenses as well as depreciation of office furniture and fixtures and other corporate assets.

Segment information as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 is as follows (in millions):



	Three months ended March 31, 2020
	High Specification Rigs			Completion and Other Services		Processing Solutions		Other			Total
Revenues	$	34.9		$	43.3	$	2.8	$	—		$	81.0
Cost of services	29.9			31.7		1.5		—			63.1
Depreciation and amortization	5.3			2.7		0.6		0.3			8.9
Operating income	(0.3		)	8.9		0.7		(5.3		)	4.0
Interest expense, net	—			—		—		1.1			1.1
Net income	(0.3		)	8.9		0.7		(6.5		)	2.8
Capital expenditures	$	4.6		$	1.2	$	0.2	$	—		$	6.0
	As of March 31, 2020
Property and equipment, net	$	132.8		$	38.1	$	40.0	$	5.2		$	216.1
Total assets	$	191.6		$	55.1	$	42.0	$	7.6		$	296.3



	Three Months Ended March 31, 2019
	High Specification Rigs			Completion and Other Services		Processing Solutions		Other			Total
Revenues	$	31.7		$	51.6	$	5.0	$	—		$	88.3
Cost of services	27.4			37.9		2.2		—			67.5
Depreciation and amortization	4.8			2.8		0.5		0.3			8.4
Operating income	(0.5		)	10.9		2.3		(7.5		)	5.2
Interest expense, net	—			—		—		1.3			1.3
Net income	(0.5		)	10.9		2.3		(9.1		)	3.6
Capital expenditures	$	2.8		$	1.8	$	4.1	$	0.5		$	9.2
	As of December 31, 2019
Property and equipment, net	$	132.2		$	40.8	$	40.5	$	5.4		$	218.9
Total assets	$	186.1		$	57.4	$	42.6	$	7.4		$	293.5