Property and Equipment, Net

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Note 3 — Property and Equipment, Net

Property and equipment, net include the following (in millions):



	Estimated Useful Life (years)	March 31, 2020			December 31, 2019
High specification rigs	20	$	127.6		$	127.2
High specification rigs machinery and equipment	5 - 10	39.1			38.3
Completions and other services machinery and equipment	5 - 10	56.0			55.8
Processing solutions machinery and equipment	3 - 30	40.8			40.8
Vehicles	3 - 15	26.1			25.9
Other property and equipment	5 - 25	10.2			10.1
Property and equipment		299.8			298.1
Less: accumulated depreciation		(93.4		)	(85.5		)
Construction in progress		9.7			6.3
Property and equipment, net		$	216.1		$	218.9

Depreciation expense was $8.7 million and $8.3 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, the Company noted a decline in stock price due to the reduced demand and oversupply of oil and natural gas, which was an indication that the fair value of the Company’s long-lived assets could have fallen below their carrying values. As a result, an impairment analysis was performed and it was determined that no impairment existed. Please see “Note 1 — Organization and Business Operations—Recent Events” for additional information regarding reduced demand and oversupply of oil and “Part I, Item 8. Financial Statements and Supplementary Data — Note 2 — Summary of Significant Accounting Policies — Significant Accounting Policies — Long-Lived Asset Impairment” of the Annual Report for the policy of testing long-lived assets for impairment.