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Revenue
3 Months Ended
Mar. 31, 2020
Revenue  
Revenue

2. Revenue

 

Total revenue under contracts recognized under Topic 606 was $55.1 million and $68.3 million for the three months ended March 31, 2020 and 2019, respectively, while $16.6 million and $13.7 million was specialty rental income subject to the guidance of ASC 840 for the three months ended March 31, 2020 and 2019, respectively.

 

The following table disaggregates our revenue by our three reportable segments as well as the All Other category: Permian Basin, Bakken Basin, Government, and All Other for the dates indicated below:

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31,

 

 

 

2020

 

2019

 

Permian Basin

 

 

 

 

 

 

 

Services income

 

$

43,286

 

$

48,798

 

Total Permian Basin revenues

 

 

43,286

 

 

48,798

 

 

 

 

 

 

 

 

 

Bakken Basin

 

 

 

 

 

 

 

Services income

 

$

4,185

 

$

4,773

 

Total Bakken Basin revenues

 

 

4,185

 

 

4,773

 

 

 

 

 

 

 

 

 

Government

 

 

 

 

 

 

 

Services income

 

$

5,854

 

$

6,737

 

Total Government revenues

 

 

5,854

 

 

6,737

 

 

 

 

 

 

 

 

 

All Other

 

 

 

 

 

 

 

Services income

 

$

613

 

$

810

 

Construction fee income

 

 

1,134

 

 

7,134

 

Total All Other revenues

 

 

1,747

 

 

7,944

 

 

 

 

 

 

 

 

 

Total revenues

 

$

55,072

 

$

68,252

 

 

 

 

 

 

 

 

 

As a result of the current market environment discussed in Note 1 “Summary of Significant Accounting Policies - Recent Developments – COVID-19 and Disruption in Oil and Gas Industry”, the Company considered the increased risk of delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies. The Company routinely monitors the financial stability of our customers, which involves a high degree of judgment in assessing customers’ historical time to pay, financial condition and various customer-specific factors.

 

To date, there has been no significant deterioration in the collectability of our receivables, and we do not currently expect any, based on current known facts and circumstances. Thus, there has been no significant change in our allowance for doubtful accounts as of March 31, 2020. However, due to uncertainties around the continued impact of the COVID-19 global pandemic and decrease in demand for oil and natural gas as discussed in Note 1, our assessment could materially change in the future.

 

Contract Assets and Liabilities

 

We do not have any contract assets and we did not recognize any impairments of any contract assets or liabilities.

 

Contract liabilities under Topic 606 primarily consist of deferred revenue that represent room nights that the customer has not used and may use in the future.  Activity in the deferred revenue accounts as of the dates indicated below was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

For Three Months Ended March 31,

 

    

2020

 

2019

Balances at Beginning of the Period

 

$

26,199

 

$

37,376

Additions to deferred revenue

 

 

 —

 

 

2,082

Revenue recognized

 

 

(5,239)

 

 

(5,907)

Balances at End of the Period

 

$

20,960

 

$

33,551

 

As of March 31, 2020, for contracts greater than one year, the following table discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue, and only represents revenue expected to be recognized from contracts where the price and quantity of the product or service are fixed (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

    

2020

    

2021

    

2022

    

Thereafter

    

Total

Revenue expected to be recognized as of March 31, 2020

 

$

23,775

 

$

23,413

 

$

2,999

 

$

 -

 

$

50,187

 

The Company applied some of the practical expedients in Topic 606, including the “right to invoice” practical expedient in ASC 606-10-55-18, and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations.  Due to the application of these practical expedients, the table above represents only a portion of the Company’s expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues.