Delaware | 74-2148293 |
(State of incorporation) | (I.R.S. Employer Identification No.) |
24955 Interstate 45 North | |
The Woodlands, Texas | 77380 |
(Address of principal executive offices) | (zip code) |
Large accelerated filer [ ] | Accelerated filer [ X ] |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [ ] |
Emerging growth company [ ] |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Product sales | $ | 107,687 | $ | 86,180 | $ | 183,066 | $ | 154,158 | |||||||
Services | 152,385 | 93,751 | 276,387 | 185,182 | |||||||||||
Total revenues | 260,072 | 179,931 | 459,453 | 339,340 | |||||||||||
Cost of revenues: | |||||||||||||||
Cost of product sales | 86,115 | 61,767 | 146,329 | 111,349 | |||||||||||
Cost of services | 97,177 | 62,845 | 181,920 | 126,494 | |||||||||||
Depreciation, amortization, and accretion | 28,979 | 25,784 | 55,420 | 52,308 | |||||||||||
Total cost of revenues | 212,271 | 150,396 | 383,669 | 290,151 | |||||||||||
Gross profit | 47,801 | 29,535 | 75,784 | 49,189 | |||||||||||
General and administrative expense | 33,617 | 29,460 | 64,420 | 56,211 | |||||||||||
Interest expense, net | 18,379 | 14,328 | 33,352 | 28,095 | |||||||||||
Warrants fair value adjustment (income) expense | 2,195 | (5,545 | ) | 201 | (11,521 | ) | |||||||||
CCLP Series A Preferred Units fair value adjustment (income) expense | (512 | ) | (4,834 | ) | 846 | (3,203 | ) | ||||||||
Litigation arbitration award income | — | — | — | (12,816 | ) | ||||||||||
Other expense, net | 3,808 | 775 | 6,584 | 1,236 | |||||||||||
Loss before taxes and discontinued operations | (9,686 | ) | (4,649 | ) | (29,619 | ) | (8,813 | ) | |||||||
Provision for income taxes | 2,446 | 3,317 | 3,570 | 3,398 | |||||||||||
Loss before discontinued operations | (12,132 | ) | (7,966 | ) | (33,189 | ) | (12,211 | ) | |||||||
Discontinued operations: | |||||||||||||||
Loss from discontinued operations (including 2018 loss on disposal of $33.8 million), net of taxes | (21 | ) | (6,653 | ) | (41,727 | ) | (13,660 | ) | |||||||
Net loss | (12,153 | ) | (14,619 | ) | (74,916 | ) | (25,871 | ) | |||||||
Loss attributable to noncontrolling interest | 6,188 | 3,628 | 15,303 | 12,417 | |||||||||||
Loss attributable to TETRA stockholders | $ | (5,965 | ) | $ | (10,991 | ) | $ | (59,613 | ) | $ | (13,454 | ) | |||
Basic net income (loss) per common share: | |||||||||||||||
Income (loss) before discontinued operations attributable to TETRA stockholders | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | 0.00 | ||||
Loss from discontinued operations attributable to TETRA stockholders | $ | 0.00 | $ | (0.06 | ) | $ | (0.33 | ) | $ | (0.12 | ) | ||||
Net loss attributable to TETRA stockholders | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.47 | ) | $ | (0.12 | ) | |||
Average shares outstanding | 122,474 | 114,534 | 125,553 | 114,375 | |||||||||||
Diluted net income (loss) per common share: | |||||||||||||||
Income (loss) before discontinued operations attributable to TETRA stockholders | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | 0.00 | ||||
Loss from discontinued operations attributable to TETRA stockholders | $ | 0.00 | $ | (0.06 | ) | $ | (0.33 | ) | $ | (0.12 | ) | ||||
Net loss attributable to TETRA stockholders | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.47 | ) | $ | (0.12 | ) | |||
Average diluted shares outstanding | 122,474 | 114,534 | 125,553 | 114,375 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net loss | $ | (12,153 | ) | $ | (14,619 | ) | $ | (74,916 | ) | $ | (25,871 | ) | |||
Foreign currency translation adjustment | (9,249 | ) | 2,968 | (7,966 | ) | 5,161 | |||||||||
Comprehensive loss | (21,402 | ) | (11,651 | ) | (82,882 | ) | (20,710 | ) | |||||||
Comprehensive loss attributable to noncontrolling interest | 7,942 | 3,303 | 17,442 | 12,233 | |||||||||||
Comprehensive loss attributable to TETRA stockholders | $ | (13,460 | ) | $ | (8,348 | ) | $ | (65,440 | ) | $ | (8,477 | ) |
June 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 70,157 | $ | 26,128 | |||
Restricted cash | 4,273 | 261 | |||||
Trade accounts receivable, net of allowances of $1,380 in 2018 and $1,286 in 2017 | 181,454 | 144,051 | |||||
Inventories | 133,367 | 115,438 | |||||
Assets of discontinued operations | 1,538 | 121,134 | |||||
Prepaid expenses and other current assets | 19,457 | 17,597 | |||||
Total current assets | 410,246 | 424,609 | |||||
Property, plant, and equipment: | |||||||
Land and building | 79,000 | 78,559 | |||||
Machinery and equipment | 1,207,766 | 1,167,680 | |||||
Automobiles and trucks | 36,502 | 34,744 | |||||
Chemical plants | 188,135 | 186,790 | |||||
Construction in progress | 44,590 | 31,566 | |||||
Total property, plant, and equipment | 1,555,993 | 1,499,339 | |||||
Less accumulated depreciation | (722,915 | ) | (689,907 | ) | |||
Net property, plant, and equipment | 833,078 | 809,432 | |||||
Other assets: | |||||||
Goodwill | 22,197 | 6,636 | |||||
Patents, trademarks and other intangible assets, net of accumulated amortization of $74,149 in 2018 and $71,114 in 2017 | 85,878 | 47,405 | |||||
Deferred tax assets, net | 10 | 10 | |||||
Notes receivable | 7,501 | 44 | |||||
Other assets | 20,709 | 20,478 | |||||
Total other assets | 136,295 | 74,573 | |||||
Total assets | $ | 1,379,619 | $ | 1,308,614 |
June 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 55,292 | $ | 70,847 | |||
Unearned income | 30,718 | 18,701 | |||||
Accrued liabilities | 72,829 | 58,478 | |||||
Liabilities of discontinued operations | 8,343 | 73,913 | |||||
Total current liabilities | 167,182 | 221,939 | |||||
Long-term debt, net | 810,739 | 629,855 | |||||
Deferred income taxes | 3,889 | 4,404 | |||||
Asset retirement obligations, net of current portion | 12,073 | 11,738 | |||||
CCLP Series A Preferred Units | 45,644 | 61,436 | |||||
Warrants liability | 13,403 | 13,202 | |||||
Other liabilities | 15,627 | 13,479 | |||||
Total long-term liabilities | 901,375 | 734,114 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
TETRA stockholders' equity: | |||||||
Common stock, par value $0.01 per share; 250,000,000 shares authorized at June 30, 2018 and December 31, 2017; 128,349,334 shares issued at June 30, 2018 and 118,515,797 shares issued at December 31, 2017 | 1,283 | 1,185 | |||||
Additional paid-in capital | 457,082 | 425,648 | |||||
Treasury stock, at cost; 2,015,775 shares held at June 30, 2018, and 2,638,093 shares held at December 31, 2017 | (18,865 | ) | (18,651 | ) | |||
Accumulated other comprehensive income (loss) | (49,594 | ) | (43,767 | ) | |||
Retained earnings (deficit) | (215,948 | ) | (156,335 | ) | |||
Total TETRA stockholders' equity | 173,958 | 208,080 | |||||
Noncontrolling interests | 137,104 | 144,481 | |||||
Total equity | 311,062 | 352,561 | |||||
Total liabilities and equity | $ | 1,379,619 | $ | 1,308,614 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Operating activities: | |||||||
Net loss | $ | (74,916 | ) | $ | (25,871 | ) | |
Reconciliation of net loss to cash used in operating activities: | |||||||
Depreciation, amortization, and accretion | 57,505 | 58,098 | |||||
Provision (benefit) for deferred income taxes | (280 | ) | (316 | ) | |||
Equity-based compensation expense | 3,422 | 5,444 | |||||
Provision for doubtful accounts | 665 | 1,244 | |||||
Non-cash loss on disposition of business | 32,369 | — | |||||
Amortization of deferred financing costs | 2,133 | 2,266 | |||||
CCLP Series A Preferred offering costs | — | 37 | |||||
CCLP Series A Preferred accrued paid in kind distributions | 2,838 | 3,797 | |||||
CCLP Series A Preferred fair value adjustment | 846 | (3,203 | ) | ||||
Warrants fair value adjustment | 201 | (11,521 | ) | ||||
Contingent consideration liability fair value adjustment | 4,300 | — | |||||
Expense for unamortized finance costs and other non-cash charges and credits | 3,616 | (335 | ) | ||||
Gain on sale of assets | (65 | ) | (533 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (46 | ) | (30,970 | ) | |||
Inventories | (18,398 | ) | (10,690 | ) | |||
Prepaid expenses and other current assets | (2,434 | ) | (1,983 | ) | |||
Trade accounts payable and accrued expenses | (23,246 | ) | 14,605 | ||||
Decommissioning liabilities | — | (497 | ) | ||||
Other | (637 | ) | (133 | ) | |||
Net cash used in operating activities | (12,127 | ) | (561 | ) | |||
Investing activities: | |||||||
Purchases of property, plant, and equipment, net | (67,441 | ) | (16,643 | ) | |||
Acquisition of businesses, net of cash acquired | (42,002 | ) | — | ||||
Proceeds from disposal of business | 3,121 | — | |||||
Proceeds on sale of property, plant, and equipment | 307 | 380 | |||||
Other investing activities | (332 | ) | 235 | ||||
Net cash used in investing activities | (106,347 | ) | (16,028 | ) | |||
Financing activities: | |||||||
Proceeds from long-term debt | 508,250 | 178,700 | |||||
Principal payments on long-term debt | (325,300 | ) | (156,550 | ) | |||
CCLP distributions | (8,982 | ) | (10,944 | ) | |||
Tax remittances on equity based compensation | (593 | ) | (407 | ) | |||
Debt issuance costs | (7,881 | ) | (1,291 | ) | |||
Net cash provided by financing activities | 165,494 | 9,508 | |||||
Effect of exchange rate changes on cash | 1,021 | 530 | |||||
Increase (decrease) in cash and cash equivalents | 48,041 | (6,551 | ) | ||||
Cash and cash equivalents and restricted cash at beginning of period | 26,389 | 36,531 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 74,430 | $ | 29,980 | |||
Supplemental cash flow information: | |||||||
Interest paid | $ | 18,610 | $ | 22,716 | |||
Income taxes paid | 3,314 | 4,416 |
June 30, 2018 | December 31, 2017 | ||||||
(In Thousands) | |||||||
Finished goods | $ | 60,011 | $ | 66,377 | |||
Raw materials | 3,934 | 4,027 | |||||
Parts and supplies | 44,585 | 33,632 | |||||
Work in progress | 24,837 | 11,402 | |||||
Total inventories | $ | 133,367 | $ | 115,438 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(In Thousands) | |||||||||||
Number of weighted average common shares outstanding | 122,474 | 114,534 | 125,553 | 114,375 | |||||||
Assumed exercise of equity awards and warrants | — | — | — | — | |||||||
Average diluted shares outstanding | 122,474 | 114,534 | 125,553 | 114,375 |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||
(In Thousands) | |||||||
Beginning balance for the period, as reported | $ | 11,929 | $ | 11,738 | |||
Activity in the period: | |||||||
Accretion of liability | 150 | 309 | |||||
Revisions in estimated cash flows | (6 | ) | 26 | ||||
Ending balance | $ | 12,073 | $ | 12,073 |
Fair Value Measurements Using | |||||||||||||||
Total as of | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Description | June 30, 2018 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(In Thousands) | |||||||||||||||
CCLP Series A Preferred Units | $ | (45,644 | ) | $ | — | $ | — | $ | (45,644 | ) | |||||
Warrants liability | (13,403 | ) | — | — | (13,403 | ) | |||||||||
Cash-settled stock appreciation rights | (287 | ) | — | — | (287 | ) | |||||||||
Asset for foreign currency derivative contracts | 180 | — | 180 | — | |||||||||||
Liability for foreign currency derivative contracts | (241 | ) | — | (241 | ) | — | |||||||||
Net liability | $ | (59,395 | ) |
Fair Value Measurements Using | |||||||||||||||
Total as of | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Description | December 31, 2017 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(In Thousands) | |||||||||||||||
CCLP Series A Preferred Units | $ | (61,436 | ) | $ | — | $ | — | $ | (61,436 | ) | |||||
Warrants liability | (13,202 | ) | — | — | (13,202 | ) | |||||||||
Cash-settled stock appreciation rights | (97 | ) | — | — | (97 | ) | |||||||||
Asset for foreign currency derivative contracts | 241 | — | 241 | — | |||||||||||
Liability for foreign currency derivative contracts | (378 | ) | — | (378 | ) | — | |||||||||
Net liability | $ | (74,872 | ) |
Current assets | $ | 16,880 | |
Property and equipment | 11,631 | ||
Intangible assets | 41,960 | ||
Goodwill | 15,560 | ||
Total assets acquired | 86,031 | ||
Current liabilities | 7,189 | ||
Total liabilities assumed | 7,189 | ||
Net assets acquired | $ | 78,842 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In Thousands) | |||||||||||||||
Revenues | $ | 260,072 | $ | 191,891 | $ | 473,603 | $ | 362,824 | |||||||
Depreciation, amortization, and accretion | $ | 28,979 | $ | 27,197 | $ | 56,397 | $ | 54,949 | |||||||
Gross profit | $ | 47,801 | $ | 33,115 | $ | 79,749 | $ | 57,668 | |||||||
Net income (loss) from continuing operations | $ | (12,132 | ) | $ | (6,594 | ) | $ | (30,988 | ) | $ | (9,285 | ) | |||
Net income (loss) attributable to TETRA stockholders | $ | (5,965 | ) | $ | (9,619 | ) | $ | (57,412 | ) | $ | (10,528 | ) | |||
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2017 | ||||||||||||||||||||||
Offshore Services | Maritech | Total | Offshore Services | Maritech | Total | ||||||||||||||||||
Major classes of line items constituting pretax loss from discontinued operations | |||||||||||||||||||||||
Revenue | $ | 10 | $ | — | $ | 10 | $ | 28,262 | $ | 175 | $ | 28,437 | |||||||||||
Cost of revenues | (235 | ) | (98 | ) | (333 | ) | 27,933 | 314 | 28,247 | ||||||||||||||
Depreciation, amortization, and accretion | — | — | — | 2,463 | 373 | 2,836 | |||||||||||||||||
General and administrative expense | 284 | — | 284 | 1,594 | 174 | 1,768 | |||||||||||||||||
Other (income) expense, net | 55 | — | 55 | 2,718 | (565 | ) | 2,153 | ||||||||||||||||
Pretax loss from discontinued operations | (94 | ) | 98 | 4 | (6,446 | ) | (121 | ) | (6,567 | ) | |||||||||||||
Pretax loss on disposal of discontinued operations | (25 | ) | — | ||||||||||||||||||||
Total pretax loss from discontinued operations | (21 | ) | (6,567 | ) | |||||||||||||||||||
Income tax expense | — | 86 | |||||||||||||||||||||
Total loss from discontinued operations | $ | (21 | ) | $ | (6,653 | ) |
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | ||||||||||||||||||||||
Offshore Services | Maritech | Total | Offshore Services | Maritech | Total | ||||||||||||||||||
Major classes of line items constituting pretax loss from discontinued operations | |||||||||||||||||||||||
Revenue | $ | 4,487 | $ | 187 | $ | 4,674 | $ | 36,623 | $ | 406 | $ | 37,029 | |||||||||||
Cost of revenues | 10,888 | 139 | 11,027 | 38,672 | 601 | 39,273 | |||||||||||||||||
Depreciation, amortization, and accretion | 1,873 | 212 | 2,085 | 5,046 | 743 | 5,789 | |||||||||||||||||
General and administrative expense | 1,537 | 187 | 1,724 | 3,063 | 411 | 3,474 | |||||||||||||||||
Other (income) expense, net | 78 | — | 78 | 2,623 | (565 | ) | 2,058 | ||||||||||||||||
Pretax loss from discontinued operations | (9,889 | ) | (351 | ) | (10,240 | ) | (12,781 | ) | (784 | ) | (13,565 | ) | |||||||||||
Pretax loss on disposal of discontinued operations | (33,813 | ) | — | ||||||||||||||||||||
Total pretax loss from discontinued operations | (44,053 | ) | (13,565 | ) | |||||||||||||||||||
Income tax (benefit) expense | (2,326 | ) | 95 | ||||||||||||||||||||
Total loss from discontinued operations | $ | (41,727 | ) | $ | (13,660 | ) |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Offshore Services | Maritech | Total | Offshore Services | Maritech | Total | ||||||||||||||||||
Carrying amounts of major classes of assets included as part of discontinued operations | |||||||||||||||||||||||
Trade receivables | $ | 161 | $ | 1,341 | $ | 1,502 | $ | 27,385 | $ | 1,542 | $ | 28,927 | |||||||||||
Inventories | — | — | — | 4,616 | — | 4,616 | |||||||||||||||||
Property, plant, and equipment | — | — | — | 85,873 | — | 85,873 | |||||||||||||||||
Other assets | 54 | (18 | ) | 36 | 1,674 | 44 | 1,718 | ||||||||||||||||
Total major classes of assets of the discontinued operations | $ | 215 | $ | 1,323 | $ | 1,538 | $ | 119,548 | $ | 1,586 | $ | 121,134 | |||||||||||
Carrying amounts of major classes of liabilities included as part of discontinued operations | |||||||||||||||||||||||
Trade payables | 1,676 | — | 1,676 | 13,942 | 87 | 14,029 | |||||||||||||||||
Accrued liabilities | 4,608 | 2,059 | 6,667 | 10,944 | 2,278 | 13,222 | |||||||||||||||||
Decommissioning and other asset retirement obligations | — | — | — | — | 46,662 | 46,662 | |||||||||||||||||
Total major classes of liabilities of the discontinued operations | $ | 6,284 | $ | 2,059 | $ | 8,343 | $ | 24,886 | $ | 49,027 | $ | 73,913 |
June 30, 2018 | December 31, 2017 | ||||||||
(In Thousands) | |||||||||
TETRA | Scheduled Maturity | ||||||||
Bank revolving line of credit facility (presented net of the unamortized deferred financing costs of $1.0 million as of June 30, 2018) | September 30, 2019 | $ | 59,906 | $ | — | ||||
11.0% Senior Note, Series 2015 (presented net of the unamortized discount of $3.6 million as of June 30, 2018 and $3.9 million as of December 31, 2017 and net of unamortized deferred financing costs of $3.1 million as of June 30, 2018 and $3.4 million as of December 31, 2017) | November 5, 2022 | 118,341 | 117,679 | ||||||
TETRA total debt | 178,247 | 117,679 | |||||||
Less current portion | — | — | |||||||
TETRA total long-term debt | $ | 178,247 | $ | 117,679 | |||||
CCLP | |||||||||
CCLP Bank Credit Facility (presented net of the unamortized deferred financing costs of $4.0 million as of December 31, 2017), terminated March 22, 2018 | August 4, 2019 | — | 223,985 | ||||||
CCLP New Credit Agreement | June 29, 2023 | — | — | ||||||
CCLP 7.25% Senior Notes (presented net of the unamortized discount of $2.5 million as of June 30, 2018 and $2.8 million as of December 31, 2017 and net of unamortized deferred financing costs of $4.4 million as of June 30, 2018 and $5.0 million as of December 31, 2017) | August 15, 2022 | 288,989 | 288,191 | ||||||
CCLP 7.50% Senior Secured Notes (presented net of unamortized deferred financing costs of $6.5 million as of June 30, 2018) | April 1, 2025 | 343,503 | — | ||||||
CCLP total debt | 632,492 | 512,176 | |||||||
Less current portion | — | — | |||||||
Consolidated total long-term debt | $ | 810,739 | $ | 629,855 |
Date | Price | ||
2021 | 105.625 | % | |
2022 | 103.750 | % | |
2023 | 101.875 | % | |
2024 | 100.000 | % |
Derivative Contracts | US Dollar Notional Amount | Traded Exchange Rate | Settlement Date | |||||
(In Thousands) | ||||||||
Forward purchase Euro | $ | 464 | 1.16 | 7/19/2018 | ||||
Forward sale pounds sterling | 2,521 | 1.33 | 7/19/2018 | |||||
Forward sale Canadian dollar | 5,941 | 1.31 | 7/19/2018 | |||||
Forward purchase Mexican peso | 1,692 | 20.68 | 7/19/2018 | |||||
Forward purchase Norwegian krone | 985 | 8.12 | 7/19/2018 | |||||
Forward sale Mexican peso | 6,083 | 20.71 | 7/19/2018 |
Derivative Contracts | Swedish Krona Notional Amount | Traded Exchange Rate | Settlement Date | ||||
(In Thousands) | |||||||
Forward purchase Euro | 27,437 | 10.16 | 7/19/2018 |
Foreign currency derivative instruments | Balance Sheet Location | Fair Value at June 30, 2018 | Fair Value at December 31, 2017 | |||||||
(In Thousands) | ||||||||||
Forward purchase contracts | Current assets | $ | 158 | $ | 111 | |||||
Forward sale contracts | Current assets | 22 | 130 | |||||||
Forward sale contracts | Current liabilities | (241 | ) | (255 | ) | |||||
Forward purchase contracts | Current liabilities | — | (113 | ) | ||||||
Net asset (liability) | $ | (61 | ) | $ | (127 | ) |
Three Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
TETRA | Non- controlling Interest | Total | TETRA | Non- controlling Interest | Total | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Beginning balance for the period | $ | 185,425 | $ | 140,036 | $ | 325,461 | $ | 234,578 | $ | 154,349 | $ | 388,927 | |||||||||||
Net income (loss) | (5,965 | ) | (6,188 | ) | (12,153 | ) | (10,991 | ) | (3,628 | ) | (14,619 | ) | |||||||||||
Foreign currency translation adjustment | (7,495 | ) | (1,754 | ) | (9,249 | ) | 3,293 | (325 | ) | 2,968 | |||||||||||||
Comprehensive Income (loss) | (13,460 | ) | (7,942 | ) | (21,402 | ) | (7,698 | ) | (3,953 | ) | (11,651 | ) | |||||||||||
Issuance of common stock, net | 2 | — | 2 | (5 | ) | — | (5 | ) | |||||||||||||||
Conversions of CCLP Series A Preferred | — | 9,272 | 9,272 | — | 7,632 | 7,632 | |||||||||||||||||
Distributions to CCLP public unitholders | — | (4,624 | ) | (4,624 | ) | — | (3,696 | ) | (3,696 | ) | |||||||||||||
Equity-based compensation | 1,905 | 358 | 2,263 | 2,039 | 783 | 2,822 | |||||||||||||||||
Treasury stock and other | 86 | 4 | 90 | (241 | ) | (61 | ) | (302 | ) | ||||||||||||||
Ending balance as of June 30 | $ | 173,958 | $ | 137,104 | $ | 311,062 | $ | 228,673 | $ | 155,054 | $ | 383,727 | |||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
TETRA | Non- controlling Interest | Total | TETRA | Non- controlling Interest | Total | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Beginning balance for the period | $ | 208,080 | $ | 144,481 | $ | 352,561 | $ | 233,523 | $ | 166,943 | $ | 400,466 | |||||||||||
Net income (loss) | (59,613 | ) | (15,303 | ) | (74,916 | ) | (13,454 | ) | (12,417 | ) | (25,871 | ) | |||||||||||
Foreign currency translation adjustment | (5,827 | ) | (2,139 | ) | (7,966 | ) | 5,345 | (184 | ) | 5,161 | |||||||||||||
Comprehensive Income (loss) | (65,440 | ) | (17,442 | ) | (82,882 | ) | (8,109 | ) | (12,601 | ) | (20,710 | ) | |||||||||||
Issuance of stock for business combination and other | 28,117 | — | 28,117 | (16 | ) | — | (16 | ) | |||||||||||||||
Conversions of CCLP Series A Preferred | — | 19,375 | 19,375 | — | 10,020 | 10,020 | |||||||||||||||||
Distributions to CCLP public unitholders | — | (8,982 | ) | (8,982 | ) | — | (10,944 | ) | (10,944 | ) | |||||||||||||
Equity-based compensation | 3,339 | (297 | ) | 3,042 | 3,552 | 1,739 | 5,291 | ||||||||||||||||
Treasury stock and other | (138 | ) | (31 | ) | (169 | ) | (277 | ) | (103 | ) | (380 | ) | |||||||||||
Ending balance as of June 30 | $ | 173,958 | $ | 137,104 | $ | 311,062 | $ | 228,673 | $ | 155,054 | $ | 383,727 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In Thousands) | |||||||||||||||
Revenues from external customers | |||||||||||||||
Product sales | |||||||||||||||
Completion Fluids & Products Division | $ | 72,287 | $ | 67,308 | $ | 123,344 | $ | 119,519 | |||||||
Water & Flowback Services Division | — | 145 | 676 | 6,258 | |||||||||||
Compression Division | 35,400 | 18,727 | 59,046 | 28,381 | |||||||||||
Consolidated | $ | 107,687 | $ | 86,180 | $ | 183,066 | $ | 154,158 | |||||||
Services | |||||||||||||||
Completion Fluids & Products Division | $ | 4,268 | $ | 6,687 | $ | 6,317 | $ | 10,703 | |||||||
Water & Flowback Services Division | 83,593 | 30,479 | 143,770 | 61,989 | |||||||||||
Compression Division | 64,524 | 56,585 | 126,300 | 112,490 | |||||||||||
Consolidated | $ | 152,385 | $ | 93,751 | $ | 276,387 | $ | 185,182 | |||||||
Interdivision revenues | |||||||||||||||
Completion Fluids & Products Division | $ | 1 | $ | — | $ | (1 | ) | $ | 1 | ||||||
Water & Flowback Services Division | 53 | 462 | 275 | 1,018 | |||||||||||
Compression Division | — | — | — | ||||||||||||
Interdivision eliminations | (54 | ) | (462 | ) | (274 | ) | (1,019 | ) | |||||||
Consolidated | $ | — | $ | — | $ | — | $ | — | |||||||
Total revenues | |||||||||||||||
Completion Fluids & Products Division | $ | 76,556 | $ | 73,995 | $ | 129,660 | $ | 130,223 | |||||||
Water & Flowback Services Division | 83,646 | 31,086 | 144,721 | 69,265 | |||||||||||
Compression Division | 99,924 | 75,312 | 185,346 | 140,871 | |||||||||||
Interdivision eliminations | (54 | ) | (462 | ) | (274 | ) | (1,019 | ) | |||||||
Consolidated | $ | 260,072 | $ | 179,931 | $ | 459,453 | $ | 339,340 | |||||||
Income (loss) before taxes | |||||||||||||||
Completion Fluids & Products Division | $ | 9,981 | $ | 16,616 | $ | 12,430 | $ | 36,088 | |||||||
Water & Flowback Services Division | 8,311 | (3,920 | ) | 14,859 | (5,186 | ) | |||||||||
Compression Division | (8,655 | ) | (6,180 | ) | (22,673 | ) | (20,513 | ) | |||||||
Interdivision eliminations | 4 | 4 | 4 | (161 | ) | ||||||||||
Corporate Overhead(1) | (19,327 | ) | (11,169 | ) | (34,239 | ) | (19,041 | ) | |||||||
Consolidated | $ | (9,686 | ) | $ | (4,649 | ) | $ | (29,619 | ) | $ | (8,813 | ) |
June 30, 2018 | December 31, 2017 | ||||||
(In Thousands) | |||||||
Total assets | |||||||
Completion Fluids & Products Division | $ | 303,396 | $ | 293,507 | |||
Water & Flowback Services Division | 228,368 | 139,771 | |||||
Compression Division | 880,385 | 784,745 | |||||
Corporate Overhead and eliminations | (34,068 | ) | (30,543 | ) | |||
Assets of discontinued operations | 1,538 | 121,134 | |||||
Consolidated | $ | 1,379,619 | $ | 1,308,614 |
(1) | Amounts reflected include the following general corporate expenses: |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In Thousands) | |||||||||||||||
General and administrative expense | $ | 11,871 | $ | 12,051 | $ | 24,469 | $ | 21,606 | |||||||
Depreciation and amortization | 164 | 118 | 315 | 209 | |||||||||||
Interest expense | 4,877 | 4,240 | 8,884 | 8,014 | |||||||||||
Warrants fair value adjustment (income)/expense | 2,195 | (5,545 | ) | 201 | (11,521 | ) | |||||||||
Other general corporate (income) expense, net | 220 | 305 | 370 | 733 | |||||||||||
Total | $ | 19,327 | $ | 11,169 | $ | 34,239 | $ | 19,041 |
2018 | 2019 | 2020 | 2021 | 2022 | Total | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Compression service contracts remaining performance obligations | $ | 1,791 | $ | 3,209 | $ | 1,027 | $ | 253 | $ | 77 | $ | 6,357 |
June 30, 2018 | |||
(In Thousands) | |||
Unearned Income, beginning of period | $ | 17,050 | |
Additional unearned income | 59,360 | ||
Revenue recognized | (47,276 | ) | |
Unearned income, end of period | $ | 29,134 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(In Thousands) | |||||||||||
Completion Fluids & Products | |||||||||||
U.S. | 34,112 | 40,870 | 62,020 | 81,672 | |||||||
International | 42,444 | 33,125 | 67,640 | 48,551 | |||||||
76,556 | 73,995 | 129,660 | 130,223 | ||||||||
Water & Flowback Services | |||||||||||
U.S. | 70,838 | 24,277 | 117,877 | 48,417 | |||||||
International | 12,808 | 6,809 | 26,844 | 20,848 | |||||||
83,646 | 31,086 | 144,721 | 69,265 | ||||||||
Compression | |||||||||||
U.S. | 90,927 | 68,887 | 167,907 | 126,856 | |||||||
International | 8,997 | 6,425 | 17,439 | 14,015 | |||||||
99,924 | 75,312 | 185,346 | 140,871 | ||||||||
Interdivision eliminations | |||||||||||
U.S. | — | — | 1 | (1 | ) | ||||||
International | (54 | ) | (462 | ) | (275 | ) | (1,018 | ) | |||
(54 | ) | (462 | ) | (274 | ) | (1,019 | ) | ||||
Total Revenue | |||||||||||
U.S. | 195,877 | 134,034 | 347,805 | 256,944 | |||||||
International | 64,195 | 45,897 | 111,648 | 82,396 | |||||||
260,072 | 179,931 | 459,453 | 339,340 |
June 30, 2018 | |||||||||||||||
Condensed Consolidating Balance Sheet | TETRA | CCLP | Eliminations | Consolidated | |||||||||||
(In Thousands) | |||||||||||||||
Cash, excluding restricted cash | $ | 18,787 | $ | 51,370 | $ | — | $ | 70,157 | |||||||
Affiliate receivables | 2,670 | — | (2,670 | ) | — | ||||||||||
Other current assets | 205,992 | 134,097 | — | 340,089 | |||||||||||
Property, plant and equipment, net | 213,417 | 619,661 | — | 833,078 | |||||||||||
Other assets, including investment in CCLP | 44,468 | 34,385 | 57,442 | 136,295 | |||||||||||
Total assets | $ | 485,334 | $ | 839,513 | $ | 54,772 | $ | 1,379,619 | |||||||
Affiliate payables | $ | — | $ | 2,670 | $ | (2,670 | ) | $ | — | ||||||
Other current liabilities | 89,613 | 77,569 | — | 167,182 | |||||||||||
Long-term debt, net | 178,247 | 632,492 | — | 810,739 | |||||||||||
CCLP Series A Preferred Units | — | 52,200 | (6,556 | ) | 45,644 | ||||||||||
Warrants liability | 13,403 | — | — | 13,403 | |||||||||||
Other non-current liabilities | 30,113 | 1,476 | — | 31,589 | |||||||||||
Total equity | 173,958 | 73,106 | 63,998 | 311,062 | |||||||||||
Total liabilities and equity | $ | 485,334 | $ | 839,513 | $ | 54,772 | $ | 1,379,619 |
Three Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 260,072 | $ | 179,931 | $ | 80,141 | 44.5 | % | ||||||
Gross profit | 47,801 | 29,535 | 18,266 | 61.8 | % | |||||||||
Gross profit as a percentage of revenue | 18.4 | % | 16.4 | % | ||||||||||
General and administrative expense | 33,617 | 29,460 | 4,157 | 14.1 | % | |||||||||
General and administrative expense as a percentage of revenue | 12.9 | % | 16.4 | % | ||||||||||
Interest expense, net | 18,379 | 14,328 | 4,051 | 28.3 | % | |||||||||
Warrants fair value adjustment (income) expense | 2,195 | (5,545 | ) | 7,740 | ||||||||||
CCLP Series A Preferred Units fair value adjustment (income) expense | (512 | ) | (4,834 | ) | 4,322 | |||||||||
Other (income) expense, net | 3,808 | 775 | 3,033 | |||||||||||
Loss before taxes and discontinued operations | (9,686 | ) | (4,649 | ) | (5,037 | ) | (108.3 | )% | ||||||
Loss before taxes and discontinued operations as a percentage of revenue | (3.7 | )% | (2.6 | )% | ||||||||||
Provision for income taxes | 2,446 | 3,317 | (871 | ) | ||||||||||
Loss before discontinued operations | (12,132 | ) | (7,966 | ) | (4,166 | ) | ||||||||
Discontinued operations: | ||||||||||||||
Loss from discontinued operations, net of taxes | (21 | ) | (6,653 | ) | 6,632 | |||||||||
Net loss | (12,153 | ) | (14,619 | ) | 2,466 | |||||||||
Loss attributable to noncontrolling interest | 6,188 | 3,628 | 2,560 | |||||||||||
Net loss attributable to TETRA stockholders | $ | (5,965 | ) | $ | (10,991 | ) | $ | 5,026 |
Three Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 76,556 | $ | 73,995 | $ | 2,561 | 3.5 | % | ||||||
Gross profit | 14,396 | 22,358 | (7,962 | ) | (35.6 | )% | ||||||||
Gross profit as a percentage of revenue | 18.8 | % | 30.2 | % | ||||||||||
General and administrative expense | 4,462 | 5,247 | (785 | ) | (15.0 | )% | ||||||||
General and administrative expense as a percentage of revenue | 5.8 | % | 7.1 | % | ||||||||||
Interest (income) expense, net | (131 | ) | 27 | (158 | ) | |||||||||
Other (income) expense, net | 84 | 468 | (384 | ) | ||||||||||
Income before taxes | $ | 9,981 | $ | 16,616 | $ | (6,635 | ) | (39.9 | )% | |||||
Income before taxes as a percentage of revenue | 13.0 | % | 22.5 | % |
Three Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 83,646 | $ | 31,086 | $ | 52,560 | 169.1 | % | ||||||
Gross profit (loss) | 18,631 | (245 | ) | 18,876 | ||||||||||
Gross profit as a percentage of revenue | 22.3 | % | (0.8 | )% | ||||||||||
General and administrative expense | 6,444 | 3,941 | 2,503 | 63.5 | % | |||||||||
General and administrative expense as a percentage of revenue | 7.7 | % | 12.7 | % | ||||||||||
Interest (income) expense, net | (1 | ) | (125 | ) | 124 | |||||||||
Other (income) expense, net | 3,877 | (141 | ) | 4,018 | ||||||||||
Income (loss) before taxes | $ | 8,311 | $ | (3,920 | ) | $ | 12,231 | |||||||
Income (loss) before taxes as a percentage of revenue | 9.9 | % | (12.6 | )% |
Three Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 99,924 | $ | 75,312 | $ | 24,612 | 32.7 | % | ||||||
Gross profit | 14,933 | 7,533 | 7,400 | 98.2 | % | |||||||||
Gross profit as a percentage of revenue | 14.9 | % | 10.0 | % | ||||||||||
General and administrative expense | 10,841 | 8,222 | 2,619 | 31.9 | % | |||||||||
General and administrative expense as a percentage of revenue | 10.8 | % | 10.9 | % | ||||||||||
Interest expense, net | 13,634 | 10,184 | 3,450 | |||||||||||
CCLP Series A Preferred fair value adjustment income | (512 | ) | (4,834 | ) | 4,322 | |||||||||
Other (income) expense, net | (375 | ) | 141 | (516 | ) | |||||||||
Loss before taxes | $ | (8,655 | ) | $ | (6,180 | ) | $ | (2,475 | ) | (40.0 | )% | |||
Loss before taxes as a percentage of revenue | (8.7 | )% | (8.2 | )% |
Three Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Gross profit (loss) (depreciation expense) | $ | (164 | ) | $ | (118 | ) | $ | (46 | ) | (39.0 | )% | |||
General and administrative expense | 11,871 | 12,051 | (180 | ) | (1.5 | )% | ||||||||
Interest (income) expense, net | 4,877 | 4,240 | 637 | |||||||||||
Warrants fair value adjustment (income)/expense | 2,195 | (5,545 | ) | 7,740 | ||||||||||
Other (income) expense, net | 220 | 305 | (85 | ) | ||||||||||
Loss before taxes | $ | (19,327 | ) | $ | (11,169 | ) | $ | (8,158 | ) | (73.0 | )% |
Six Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 459,453 | $ | 339,340 | $ | 120,113 | 35.4 | % | ||||||
Gross profit | 75,784 | 49,189 | 26,595 | 54.1 | % | |||||||||
Gross profit as a percentage of revenue | 16.5 | % | 14.5 | % | ||||||||||
General and administrative expense | 64,420 | 56,211 | 8,209 | 14.6 | % | |||||||||
General and administrative expense as a percentage of revenue | 14.0 | % | 16.6 | % | ||||||||||
Interest expense, net | 33,352 | 28,095 | 5,257 | 18.7 | % | |||||||||
Warrants fair value adjustment (income) expense | 201 | (11,521 | ) | 11,722 | ||||||||||
CCLP Series A Preferred Units fair value adjustment (income) expense | 846 | (3,203 | ) | 4,049 | ||||||||||
Litigation arbitration award income | — | (12,816 | ) | 12,816 | ||||||||||
Other (income) expense, net | 6,584 | 1,236 | 5,348 | |||||||||||
Loss before taxes and discontinued operations | (29,619 | ) | (8,813 | ) | (20,806 | ) | (236.1 | )% | ||||||
Loss before taxes and discontinued operations as a percentage of revenue | (6.4 | )% | (2.6 | )% | ||||||||||
Provision for income taxes | 3,570 | 3,398 | 172 | |||||||||||
Loss before discontinued operations | (33,189 | ) | (12,211 | ) | (20,978 | ) | ||||||||
Discontinued operations: | ||||||||||||||
Loss from discontinued operations (including 2018 loss on disposal of $33.8 million), net of taxes | (41,727 | ) | (13,660 | ) | (28,067 | ) | ||||||||
Net loss | (74,916 | ) | (25,871 | ) | (49,045 | ) | ||||||||
Loss attributable to noncontrolling interest | 15,303 | 12,417 | 2,886 | |||||||||||
Net loss attributable to TETRA stockholders | $ | (59,613 | ) | $ | (13,454 | ) | $ | (46,159 | ) |
Six Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 129,660 | $ | 130,223 | $ | (563 | ) | (0.4 | )% | |||||
Gross profit | 21,082 | 33,688 | (12,606 | ) | (37.4 | )% | ||||||||
Gross profit as a percentage of revenue | 16.3 | % | 25.9 | % | ||||||||||
General and administrative expense | 9,102 | 9,931 | (829 | ) | (8.3 | )% | ||||||||
General and administrative expense as a percentage of revenue | 7.0 | % | 7.6 | % | ||||||||||
Interest (income) expense, net | (365 | ) | 40 | (405 | ) | |||||||||
Litigation arbitration award income | — | (12,816 | ) | 12,816 | ||||||||||
Other (income) expense, net | (85 | ) | 445 | (530 | ) | |||||||||
Income before taxes | $ | 12,430 | $ | 36,088 | $ | (23,658 | ) | (65.6 | )% | |||||
Income before taxes as a percentage of revenue | 9.6 | % | 27.7 | % |
Six Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 144,721 | $ | 69,265 | $ | 75,456 | 108.9 | % | ||||||
Gross profit | 30,035 | 2,003 | 28,032 | |||||||||||
Gross profit as a percentage of revenue | 20.8 | % | 2.9 | % | ||||||||||
General and administrative expense | 11,722 | 7,682 | 4,040 | 52.6 | % | |||||||||
General and administrative expense as a percentage of revenue | 8.1 | % | 11.1 | % | ||||||||||
Interest (income) expense, net | (16 | ) | (246 | ) | 230 | |||||||||
Other (income) expense, net | 3,470 | (247 | ) | 3,717 | ||||||||||
Income (loss) before taxes | $ | 14,859 | $ | (5,186 | ) | $ | 20,045 | 386.5 | % | |||||
Income (loss) before taxes as a percentage of revenue | 10.3 | % | (7.5 | )% |
Six Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Revenues | $ | 185,346 | $ | 140,871 | $ | 44,475 | 31.6 | % | ||||||
Gross profit | 24,973 | 13,698 | 11,275 | 82.3 | % | |||||||||
Gross profit as a percentage of revenue | 13.5 | % | 9.7 | % | ||||||||||
General and administrative expense | 19,127 | 16,991 | 2,136 | 12.6 | % | |||||||||
General and administrative expense as a percentage of revenue | 10.3 | % | 12.1 | % | ||||||||||
Interest expense, net | 24,848 | 20,287 | 4,561 | |||||||||||
CCLP Series A Preferred fair value adjustment | 846 | (3,201 | ) | 4,047 | ||||||||||
Other (income) expense, net | 2,825 | 134 | 2,691 | |||||||||||
Income (loss) before taxes | $ | (22,673 | ) | $ | (20,513 | ) | $ | (2,160 | ) | (10.5 | )% | |||
Income (loss) before taxes as a percentage of revenue | (12.2 | )% | (14.6 | )% |
Six Months Ended June 30, | Period to Period Change | |||||||||||||
2018 | 2017 | 2018 vs 2017 | % Change | |||||||||||
(In Thousands, Except Percentages) | ||||||||||||||
Gross profit (loss) (depreciation expense) | $ | (315 | ) | $ | (209 | ) | $ | (106 | ) | (50.7 | )% | |||
General and administrative expense | 24,469 | 21,606 | 2,863 | 13.3 | % | |||||||||
Interest expense, net | 8,884 | 8,014 | 870 | |||||||||||
Warrants fair value adjustment (income)/expense | 201 | (11,521 | ) | 11,722 | ||||||||||
Other (income) expense, net | 370 | 733 | (363 | ) | ||||||||||
Loss before taxes | $ | (34,239 | ) | $ | (19,041 | ) | $ | (15,198 | ) | (79.8 | )% |
Six months ended June 30, | |||||||
2018 | 2017 | ||||||
(In Thousands) | |||||||
Operating activities | $ | (12,127 | ) | $ | (561 | ) | |
Investing activities | (106,347 | ) | (16,028 | ) | |||
Financing activities | 165,494 | 9,508 |
Date | Price | |
2021 | 105.625% | |
2022 | 103.750% | |
2023 | 101.875% | |
2024 | 100.000% |
Payments Due | ||||||||||||||||||||||||||||
Total | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Long-term debt - TETRA | $ | 185,950 | $ | — | $ | 60,950 | $ | — | $ | — | $ | 125,000 | $ | — | ||||||||||||||
Long-term debt - CCLP | 645,930 | — | — | — | — | 295,930 | 350,000 | |||||||||||||||||||||
Interest on debt - TETRA | 62,437 | 8,056 | 15,423 | 13,357 | 13,357 | 12,244 | — | |||||||||||||||||||||
Interest on debt - CCLP | 265,821 | 23,761 | 47,522 | 47,522 | 47,522 | 40,431 | 59,063 | |||||||||||||||||||||
Purchase obligations | 108,689 | 4,739 | 9,450 | 9,450 | 9,450 | 9,450 | 66,150 | |||||||||||||||||||||
Decommissioning and other asset retirement obligations | 12,073 | — | — | — | — | — | 12,073 | |||||||||||||||||||||
Operating and capital leases | 82,642 | 8,404 | 12,022 | 10,548 | 8,517 | 6,358 | 36,793 | |||||||||||||||||||||
Total contractual cash obligations(1) | $ | 1,363,542 | $ | 44,960 | $ | 145,367 | $ | 80,877 | $ | 78,846 | $ | 489,413 | $ | 524,079 |
(1) | Amounts exclude other long-term liabilities reflected in our Consolidated Balance Sheet that do not have known payment streams. These excluded amounts include approximately $1.2 million of liabilities under FASB Codification Topic 740, “Accounting for Uncertainty in Income Taxes,” as we are unable to reasonably estimate the ultimate amount or timing of tax settlements. These excluded amounts also include approximately $45.6 million of liabilities related to the CCLP Series A Convertible Preferred Units. The preferred units are expected to be serviced and satisfied with non-cash paid-in-kind distributions and conversions to CCLP common units. See "Note E – CCLP Series A Convertible Preferred Units," in the Notes to Consolidated Financial Statements for further discussion. |
• | economic and operating conditions that are outside of our control, including the supply, demand, and prices of crude oil and natural gas; |
• | the levels of competition we encounter; |
• | the activity levels of our customers; |
• | our operational performance; |
• | the availability of raw materials and labor at reasonable prices; |
• | risks related to acquisitions and our growth strategy; |
• | our ability to comply with the financial covenants in our debt agreements and the consequences of any failure to comply with such financial covenants; |
• | the availability of adequate sources of capital to us; |
• | the effect and results of litigation, regulatory matters, settlements, audits, assessments, and contingencies; |
• | risks related to our foreign operations; |
• | information technology risks including the risk from cyberattack, and |
• | other risks and uncertainties under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, those set forth in Item 1A "Risk Factors" in Part II of this Quarterly Report on Form 10-Q, and as included in our other filings with the U.S. Securities and Exchange Commission (“SEC”), which are available free of charge on the SEC website at www.sec.gov. |
Expected Maturity Date | Fair Market Value | |||||||||||||||||||||||||||||||
($ amounts in thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | |||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||
Variable rate | ||||||||||||||||||||||||||||||||
Long-term debt: | $ | — | $ | 60,950 | $ | — | $ | — | $ | — | $ | — | $ | 60,950 | $ | 60,950 | ||||||||||||||||
U.S. dollar fixed rate - TETRA | $ | — | $ | — | $ | — | $ | — | $125,000 | $ | — | $ | 125,000 | $ | 128,200 | |||||||||||||||||
U.S. dollar fixed rate - CCLP | $ | — | $ | — | $ | — | $ | — | $295,930 | $ | 350,000 | $ | 645,930 | $ | 623,300 | |||||||||||||||||
Weighted average interest rate (fixed) | — | — | — | — | 8.36 | % | 7.50 | % | — |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Publicly Announced Plans or Programs(1) | |||||||||
April 1 – April 30, 2018 | 421 | (2) | $ | 3.75 | — | $ | 14,327,000 | ||||||
May 1 – May 31, 2018 | 13,545 | (2) | 4.19 | — | 14,327,000 | ||||||||
June 1 – June 30, 2018 | 464 | (2) | 4.51 | — | 14,327,000 | ||||||||
Total | 14,430 | — | $ | 14,327,000 |
(1) | In January 2004, our Board of Directors authorized the repurchase of up to $20 million of our common stock. Purchases will be made from time to time in open market transactions at prevailing market prices. The repurchase program may continue until the authorized limit is reached, at which time the Board of Directors may review the option of increasing the authorized limit. |
(2) | Shares we received in connection with the exercise of certain employee stock options or the vesting of certain shares of employee restricted stock. These shares were not acquired pursuant to the stock repurchase program. |
10.1 | |
10.2 | |
10.3 | |
10.4 | |
10.5 | |
10.6 | |
31.1* | |
31.2* | |
32.1*** | |
32.2*** | |
101.INS+ | XBRL Instance Document. |
101.SCH+ | XBRL Taxonomy Extension Schema Document. |
101.CAL+ | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.LAB+ | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE+ | XBRL Taxonomy Extension Presentation Linkbase Document. |
101.DEF+ | XBRL Taxonomy Extension Definition Linkbase Document. |
* | Filed with this report. |
** | Filed with this report. The schedules and exhibits to this agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish supplementary any omitted schedules and exhibits to the Securities Exchange Commission upon request. |
*** | Furnished with this report. |
+ | Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Operations for the three and six month periods ended June 30, 2018 and 2017; (ii) Consolidated Statements of Comprehensive Income for the three and six month periods ended June 30, 2018 and 2017; (iii) Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017; (iv) Consolidated Statements of Cash Flows for the six month periods ended June 30, 2018 and 2017; and (v) Notes to Consolidated Financial Statements for the six months ended June 30, 2018. |
TETRA Technologies, Inc. | |||
Date: | August 9, 2018 | By: | /s/Stuart M. Brightman |
Stuart M. Brightman | |||
Chief Executive Officer | |||
Date: | August 9, 2018 | By: | /s/Elijio V. Serrano |
Elijio V. Serrano | |||
Senior Vice President | |||
Chief Financial Officer | |||
Date: | August 9, 2018 | By: | /s/Ben C. Chambers |
Ben C. Chambers | |||
Vice President – Accounting | |||
Principal Accounting Officer |
1. | I have reviewed this report on Form 10-Q for the fiscal quarter ended June 30, 2018, of TETRA Technologies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
Date: | August 9, 2018 | /s/Stuart M. Brightman |
Stuart M. Brightman | ||
Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q for the fiscal quarter ended June 30, 2018, of TETRA Technologies, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
Date: | August 9, 2018 | /s/Elijio V. Serrano |
Elijio V. Serrano | ||
Senior Vice President and | ||
Chief Financial Officer |
Dated: | August 9, 2018 | /s/Stuart M. Brightman |
Stuart M. Brightman | ||
Chief Executive Officer | ||
TETRA Technologies, Inc. |
Dated: | August 9, 2018 | /s/Elijio V. Serrano |
Elijio V. Serrano | ||
Senior Vice President and | ||
Chief Financial Officer | ||
TETRA Technologies, Inc. |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 09, 2018 |
|
Document Information [Line Items] | ||
Entity Registrant Name | TETRA TECHNOLOGIES INC | |
Entity Central Index Key | 0000844965 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 125,679,432 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (12,153) | $ (14,619) | $ (74,916) | $ (25,871) |
Foreign currency translation adjustment, including taxes of $0 and $0 in 2015 and $1,198 and $1,644 in 2014 | (9,249) | 2,968 | (7,966) | 5,161 |
Comprehensive income | (21,402) | (11,651) | (82,882) | (20,710) |
Comprehensive (income) loss attributable to noncontrolling interest | 7,942 | 3,303 | 17,442 | 12,233 |
Comprehensive income (loss) attributable to TETRA stockholders | $ (13,460) | $ (8,348) | $ (65,440) | $ (8,477) |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Current assets: | ||
Trade accounts receivable, allowances for doubtful accounts | $ 1,380 | $ 1,286 |
Other assets: | ||
Patents, trademarks, and other intangible assets, accumulated amortization | $ 74,149 | $ 71,114 |
Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 128,349,334 | 118,515,797 |
Treasury stock, shares held | 2,015,775 | 2,638,093 |
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies (Notes) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES We are a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water management, frac flowback, production well testing and offshore rig cooling services, and compression services and equipment. We were incorporated in Delaware in 1981. Following the acquisition and disposition transactions that closed during the three month period ended March 31, 2018, we reorganized our reporting segments and are now composed of three divisions – Completion Fluids & Products, Water & Flowback Services, and Compression. Unless the context requires otherwise, when we refer to “we,” “us,” and “our,” we are describing TETRA Technologies, Inc. and its consolidated subsidiaries on a consolidated basis. Our consolidated financial statements include the accounts of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The information furnished reflects all normal recurring adjustments, which are, in the opinion of management, necessary to provide a fair statement of the results for the interim periods. Operating results for the period ended June 30, 2018 are not necessarily indicative of results that may be expected for the twelve months ended December 31, 2018. We consolidate the financial statements of CSI Compressco LP and its subsidiaries ("CCLP") as part of our Compression Division, as we determined that CCLP is a variable interest entity and we are the primary beneficiary. We control the financial interests of CCLP and have the ability to direct the activities of CCLP that most significantly impact its economic performance through our ownership of its general partner. The share of CCLP net assets and earnings that is not owned by us is presented as noncontrolling interest in our consolidated financial statements. Our cash flows from our investment in CCLP are limited to the quarterly distributions we receive on our CCLP common units and general partner interest (including incentive distribution rights) and the amounts collected for services we perform on behalf of CCLP, as TETRA's capital structure and CCLP's capital structure are separate, and do not include cross default provisions, cross collateralization provisions, or cross guarantees. The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission ("SEC") and do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in connection with the financial statements for the year ended December 31, 2017, and notes thereto included in our Annual Report on Form 10-K, which we filed with the SEC on March 5, 2018. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and impairments during the reporting period. Actual results could differ from those estimates, and such differences could be material. Reclassifications Certain previously reported financial information has been reclassified to conform to the current period’s presentation. For a discussion of the reclassification of the financial presentation of our Offshore Division as discontinued operations, see Note C - "Discontinued Operations." Cash Equivalents We consider all highly liquid cash investments with a maturity of three months or less when purchased to be cash equivalents. Restricted Cash Restricted cash is classified as a current asset when it is expected to be repaid or settled in the next twelve month period. Restricted cash as of June 30, 2018 consists of cash used to secure outstanding letters of credit of our Compression Division. Inventories Inventories are stated at the lower of cost or net realizable value. Except for work in progress inventory discussed below, cost is determined using the weighted average method. Components of inventories as of June 30, 2018 and December 31, 2017 are as follows:
Finished goods inventories include newly manufactured clear brine fluids as well as used brines that are repurchased from certain customers for recycling. Recycled brines are recorded at cost, using the weighted average method. Work in progress inventory consists primarily of new compressor packages located in the CCLP fabrication facility in Midland, Texas. The cost of work in progress is determined using the specific identification method. We write down the value of inventory by an amount equal to the difference between its cost and its estimated net realizable value. Net Income (Loss) per Share The following is a reconciliation of the weighted average number of common shares outstanding with the number of shares used in the computations of net income (loss) per common and common equivalent share:
For the three and six month periods ended June 30, 2018 and June 30, 2017, the average diluted shares outstanding excludes the impact of all outstanding equity awards and warrants, as the inclusion of these shares would have been anti-dilutive due to the net losses recorded during the periods. In addition, for the three and six month periods ended June 30, 2018 and June 30, 2017, the calculation of diluted earnings per common share excludes the impact of the CCLP Preferred Units, as the inclusion of the impact from conversion of the CCLP Preferred Units into CCLP common units would have been anti-dilutive. Foreign Currency Translation We have designated the euro, the British pound, the Norwegian krone, the Canadian dollar, the Brazilian real, the Argentine peso, and the Mexican peso, as the functional currencies for our operations in Finland and Sweden, the United Kingdom, Norway, Canada, Brazil, Argentina, and certain of our operations in Mexico, respectively. The U.S. dollar is the designated functional currency for all of our other foreign operations. The cumulative translation effects of translating the applicable accounts from the functional currencies into the U.S. dollar at current exchange rates are included as a separate component of equity. Foreign currency exchange (gains) and losses are included in other (income) expense, net and totaled $0.6 million and $(0.3) million during the three and six month periods ended June 30, 2018 and $0.6 million and $1.2 million during the three and six month periods ended June 30, 2017, respectively. On June 30, 2018, we determined the economy in Argentina to be highly inflationary. As a result of this determination, beginning July 1, 2018, our reporting of our operations in Argentina will reflect the remeasurement of the functional currency from the Argentine peso to the U.S. dollar. Income Taxes Our consolidated provision for income taxes during the first six months of 2017 and 2018 is primarily attributable to taxes in certain foreign jurisdictions and Texas gross margin taxes. Our consolidated effective tax rate for the six month period ended June 30, 2018 of negative 12.1% was primarily the result of losses generated in entities for which no related tax benefit has been recorded. The losses generated by these entities do not result in tax benefits due to offsetting valuation allowances being recorded against the related net deferred tax assets. We establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in our deferred tax assets are net operating loss carryforwards and tax credits that are available to offset future income tax liabilities in the U.S. as well as in certain foreign jurisdictions. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. At June 30, 2018 and December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, we made reasonable estimates of the effects and recorded provisional amounts. We will continue to make and refine our calculations as additional analysis is completed. The accounting for the tax effects of the Act will be completed in 2018 as provided by the U.S. Securities and Exchange Commission’s SAB No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. We recognized an income tax expense of $54.1 million in the fourth quarter of 2017 associated with the impact of the Act, which was fully offset by a decrease in the valuation allowance previously recorded on our net deferred tax assets. As such, the Act resulted in no net tax expense in the fourth quarter of 2017. We have considered in our estimated annual effective tax rate for 2018, the impact of the statutory changes enacted by the Act, including reasonable estimates of those provisions effective for the 2018 tax year. Our estimate on Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion and Anti-Abuse Tax (“BEAT”), and IRC Section 163(j) interest limitation do not impact our effective tax rate for the three and six month periods ended June 30, 2018. Asset Retirement Obligations We operate facilities in various U.S. and foreign locations that are used in the manufacture, storage, and sale of our products, inventories, and equipment. These facilities are a combination of owned and leased assets. We are required to take certain actions in connection with the retirement of these assets. The values of our asset retirement obligations for these properties were $12.1 million and $11.7 million as of June 30, 2018 and December 31, 2017, respectively. Asset retirement obligations are recorded in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 410, "Asset Retirement and Environmental Obligations," whereby the estimated fair value of a liability for asset retirement obligations is recognized in the period in which it is incurred and in which a reasonable estimate can be made. Such estimates are based on relevant assumptions that we believe are reasonable. We have reviewed our obligations in this regard in detail and estimated the cost of these actions. The associated asset retirement costs are capitalized as part of the carrying amount of these long-lived assets and are depreciated on a straight-line basis over the life of the assets. The changes in the values of our asset retirement obligations during the three and six month period ended June 30, 2018, are as follows:
We review the adequacy of our asset retirement obligation liabilities whenever indicators suggest that the estimated cash flows underlying the liabilities have changed. Fair Value Measurements Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that may differ from the transaction price or market price of the asset or liability. Under U.S. generally accepted accounting principles ("GAAP"), the fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value. Fair value measurements should maximize the use of observable inputs and minimize the use of unobservable inputs, where possible. Observable inputs are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs may be needed to measure fair value in situations where there is little or no market activity for the asset or liability at the measurement date and are developed based on the best information available in the circumstances, which could include the reporting entity’s own judgments about the assumptions market participants would utilize in pricing the asset or liability. We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements are utilized on a recurring basis in the determination of the carrying values of the liabilities for the warrants to purchase 11.2 million shares of our common stock (the "Warrants") and the CCLP Preferred Units (as herein defined). We also utilize fair value measurements on a recurring basis in the accounting for our foreign currency derivative contracts. For these fair value measurements, we utilize the quoted value as determined by our counterparty financial institution (a level 2 fair value measurement). Fair value measurements are also utilized on a nonrecurring basis in certain circumstances, such as in the allocation of purchase consideration for acquisition transactions to the assets and liabilities acquired, including intangible assets and goodwill (a level 3 fair value measurement), the initial recording of our asset retirement obligations, and for the impairment of long-lived assets, including goodwill (a level 3 fair value measurement). The fair values of certain of our financial instruments, which include cash, restricted cash, accounts receivable, accounts payable, short-term borrowings, and long-term debt pursuant to our bank credit agreement, approximate their carrying amounts. The aggregate fair values of our long-term 11% Senior Note at June 30, 2018 and December 31, 2017, were approximately $128.2 million and $130.8 million, respectively, based on current interest rates on those dates, which were different from the stated interest rate on the 11% Senior Note. Those fair values compare to the face amount of the 11% Senior Note of $125.0 million both at June 30, 2018 and December 31, 2017. The fair values of the publicly traded CCLP 7.25% Senior Notes (as herein defined) at June 30, 2018 and December 31, 2017, were approximately $271.5 million and $279.7 million, respectively. Those fair values compare to the face amount of $295.9 million both at June 30, 2018 and December 31, 2017. The fair value of the publicly traded CCLP 7.50% Senior Secured Notes at June 30, 2018 was approximately $351.8 million. This fair value compares to aggregate principal amount of such notes at June 30, 2018 of $350.0 million. We calculated the fair values of our 11% Senior Note as of June 30, 2018 and December 31, 2017 internally, using current market conditions and average cost of debt (a level 2 fair value measurement). We based the fair values of the CCLP 7.25% Senior Notes and the CCLP 7.50% Senior Secured Notes as of June 30, 2018 on recent trades for these notes (a level 1 fair value measurement). See Note D - "Long-Term Debt and Other Borrowings," for further discussion. The CCLP Preferred Units are valued using a lattice modeling technique that, among a number of lattice structures, includes significant unobservable items (a Level 3 fair value measurement). These unobservable items include (i) the volatility of the trading price of CCLP's common units compared to a volatility analysis of equity prices of CCLP's comparable peer companies, (ii) a yield analysis that utilizes market information related to the debt yields of comparable peer companies, and (iii) a future conversion price analysis. The fair valuation of the CCLP Preferred Units liability is increased by, among other factors, projected increases in CCLP's common unit price and by increases in the volatility and decreases in the debt yields of CCLP's comparable peer companies. Increases (or decreases) in the fair value of CCLP Preferred Units will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the three and six month periods ended June 30, 2018, the changes in the fair value of the CCLP Preferred Units resulted in $0.5 million being credited to earnings and $0.8 million charged to earnings, respectively, in the consolidated statement of operations. The Warrants are valued either by using their traded market prices (a level 1 fair value measurement) or, for periods when market prices are not available, by using the Black Scholes option valuation model that includes estimates of the volatility of the Warrants implied by their trading prices (a level 3 fair value measurement). As of June 30, 2018 and December 31, 2017, the fair valuation methodology utilized for the Warrants was a level 3 fair value measurement, as there were no available traded market prices to value the Warrants. The fair valuation of the Warrants liability is increased by, among other factors, increases in our common stock price, and by increases in the volatility of our common stock price. Increases (or decreases) in the fair value of the Warrants will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the three and six month periods ended June 30, 2018, the changes in the fair value of the Warrants liability resulted in $2.2 million being charged to earnings and $0.2 million being charged to earnings, respectively, in the consolidated statement of operations. During the third quarter of 2017 and the first quarter of 2018, we issued stand-alone, cash-settled stock appreciation rights awards to an executive officer. These awards are valued by using the Black Scholes option valuation model and such fair value is recognized based on the portion of the requisite service period satisfied as of each valuation date. The fair valuation of the stock appreciation rights liability is increased by, among other factors, increases in our common stock price, and by increases in the volatility of our common stock price. These stock appreciation rights awards are reflected as an accrued liability in our consolidated balance sheet. Increases (or decreases) in the fair value of the stock appreciation rights awards will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the six months ended June 30, 2018, the fair value of the stock appreciation rights increased $0.2 million, which was charged to earnings in the consolidated statement of operations. A summary of these fair value measurements as of June 30, 2018 and December 31, 2017, is as follows:
New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, "Revenue Recognition," and most industry-specific guidance. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those years, under either full or modified retrospective adoption. On January 1, 2018, we adopted ASU 2014-09 and all related amendments ("ASU 2014-09"). We utilized the modified retrospective method of adoption. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also provides a five-step model for determining revenue recognition for arrangements that are within the scope of the standard: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, once the contract is determined to be within the scope of ASU 2014-09, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. For a complete discussion of accounting for revenues, see Note J - Revenue from Contracts with Customers. The impact from the adoption of ASU 2014-09 to our January 1, 2018 consolidated balance sheet, our June 30, 2018 consolidated balance sheet, and our consolidated results of operations for the three and six month periods ended June 30, 2018 was immaterial. The adoption of ASU 2014-09 had no impact to cash provided by operating, financing, or investing activities in our consolidated statement of cash flows. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. In February 2016, the FASB issued ASU 2016-02, "Leases" (Topic 842) to increase comparability and transparency among different organizations. Organizations are required to recognize right-of-use lease assets and lease liabilities on the balance sheet related to the right to use the underlying asset for the lease term. In addition, through improved disclosure requirements, the ASU will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. We are currently assessing the potential effects of these changes to our consolidated financial statements. Our current operating lease portfolio consists primarily of real estate, vehicles, and equipment leases. Based on our preliminary assessment, upon adoption of the ASU, we will record significant right-to-use assets and lease obligations pursuant to the new requirements. We are evaluating our portfolio of existing leases for consideration of the accounting impact of each lease. We are also evaluating and are developing internal policies to address the requirements under this ASU. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. ASU 2016-13, which has an effective date of the first quarter of fiscal 2022, also applies to employee benefit plan accounting. We are currently assessing the potential effects of these changes to our consolidated financial statements and employee benefit plan accounting. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" to reduce diversity in practice in classification of certain transactions in the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted, under a retrospective transition adoption. We adopted this ASU during the three month period ended March 31, 2018, with no material impact to our consolidated financial statements. In November 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" which requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. We adopted this ASU during the three month period ended March 31, 2018. The adoption of this standard did not have a material impact to our consolidated financial statements due to a previously recorded valuation allowance on our net deferred tax assets. Additionally, in November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. We adopted this ASU during the three month period ended March 31, 2018, resulting in restricted cash being classified with cash and cash equivalents in our consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for annual periods beginning after December 15, 2020, and interim periods within those annual periods, with early adoption permitted, under a prospective adoption. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. We adopted this ASU during the three month period ended March 31, 2018, with no material impact to our consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception" to consider “down round” features when determining whether certain equity-linked financial instruments or embedded features are indexed to an entity’s own stock. Entities that present EPS under ASC 260 will recognize the effect of a down round feature in a freestanding equity-classified financial instrument only when it is triggered. The effect of triggering such a feature will be recognized as a dividend and a reduction to income available to common shareholders in basic EPS. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are currently assessing the potential effects of these changes to our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" to change how companies account for and disclose hedges. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are currently assessing the potential effects of these changes to our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” to align the measurement and classification guidance for share-based payments to nonemployees with the guidance currently applied to employees, with certain exceptions. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. We are currently assessing the potential effects of these changes to our consolidated financial statements. |
Discontinued Operations (Notes) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS As discussed in Note B - "Acquisitions and Dispositions," on March 1, 2018, we closed a series of related transactions that resulted in the disposition of our Offshore Division. As a result, we have accounted for our Offshore Division, consisting of our Offshore Services and Maritech segments, as discontinued operations and have revised prior period financial statements to exclude these businesses from continuing operations. A summary of financial information related to our discontinued operations is as follows: Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations (in thousands)
Reconciliation of Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Statement of Financial Position (in thousands)
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Long-Term Debt and Other Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Other Borrowings | LONG-TERM DEBT AND OTHER BORROWINGS We believe TETRA's capital structure and CCLP's capital structure should be considered separately, as there are no cross default provisions, cross collateralization provisions, or cross guarantees between CCLP's debt and TETRA's debt. Consolidated long-term debt as of June 30, 2018 and December 31, 2017, consists of the following:
As of June 30, 2018, TETRA (excluding CCLP) had a $61.0 million outstanding balance and $6.8 million in letters of credit against its Credit Agreement, leaving a net availability of $132.2 million. There was no balance outstanding under the CCLP New Credit Agreement (as defined below) as of June 30, 2018. As described below, we and CCLP are in compliance with all covenants of our respective debt and senior note agreements as of June 30, 2018. Our Long-Term Debt Our Credit Agreement. At June 30, 2018, our consolidated leverage ratio was 2.18 to 1 (compared to a 4.75 to 1 maximum allowed under the Credit Agreement) and our fixed charge coverage ratio was 2.87 to 1 (compared to a 1.25 to 1 minimum required under the Credit Agreement). CCLP Long-Term Debt CCLP Senior Secured Notes. On March 8, 2018, CCLP, and its wholly owned subsidiary, CSI Compressco Finance Inc. (together with CCLP, the "CCLP Issuers") entered into the Purchase Agreement (the “Purchase Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated as representative of the initial purchasers listed in Schedule A thereto (collectively, the “Initial Purchasers”), pursuant to which the CCLP Issuers agreed to issue and sell to the Initial Purchasers $350 million aggregate principal amount of the CCLP Issuers’ 7.50% Senior Secured First Lien Notes due 2025 (the "CCLP Senior Secured Notes") (the "CCLP Offering") pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The CCLP Issuers closed the Offering on March 22, 2018. The CCLP Senior Secured Notes were issued at par for net proceeds of approximately $343.8 million, after deducting certain financing costs. CCLP used a portion of the net proceeds to repay in full and terminate its existing bank Credit Agreement and plans to use the remainder for general partnership purposes, including the expansion of its compression fleet. The CCLP Senior Secured Notes are jointly and severally, and fully and unconditionally, guaranteed (the "Guarantees" and, together with the CCLP Senior Secured Notes, the "CCLP Senior Secured Note Securities") on a senior secured basis initially by each of CCLP's domestic restricted subsidiaries (other than CSI Compressco Finance Inc., certain immaterial subsidiaries and certain other excluded domestic subsidiaries) and are secured by a first-priority security interest in substantially all of the CCLP Issuers' and the Guarantors' assets (other than certain excluded assets) (the "Collateral") as collateral security for their obligations under the CCLP Senior Secured Notes, subject to certain permitted encumbrances and exceptions. On the closing date, CCLP entered into an indenture (the "Indenture") by and among the Obligors and U.S. Bank National Association, as trustee with respect to the Securities. The CCLP Senior Secured Notes accrue interest at a rate of 7.50% per annum. Interest on the CCLP Senior Secured Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2018. The CCLP Senior Secured Notes are scheduled to mature on April 1, 2025. During the six months ended June 30, 2018, CCLP incurred total financing costs of $6.7 million related to the CCLP Senior Secured Notes. These costs are deferred, netting against the carrying value of the amount outstanding. On and after April 1, 2021, CCLP may redeem all or a part of the CCLP Senior Secured Notes, from time to time, at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest thereon to, but not including, the applicable redemption date, subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on April 1 of the years indicated below:
In addition, at any time and from time to time before April 1, 2021, CCLP may, at its option, redeem all or a portion of the CCLP Senior Secured Notes at a redemption price equal to 100% of the principal amount thereof plus the Applicable Premium (as defined in the Indenture) with respect to the CCLP Senior Secured Notes plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date, subject to the rights of holders of the CCLP Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date. Prior to April 1, 2021, CCLP may on one or more occasions redeem up to 35% of the principal amount of the CCLP Senior Secured Notes with an amount of cash not greater than the amount of the net cash proceeds from one or more equity offerings at a redemption price equal to 107.500% of the principal amount of the CCLP Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption, subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date, provided that (a) at least 65% of the aggregate principal amount of the CCLP Senior Secured Notes originally issued on the issue date (excluding notes held by CCLP and its subsidiaries) remains outstanding after each such redemption; and (b) the redemption occurs within 180 days after the date of the closing of the equity offering. If CCLP experiences certain kinds of changes of control, each holder of the CCLP Senior Secured Notes will be entitled to require CCLP to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess of $2,000) of that holder’s CCLP Senior Secured Notes pursuant to an offer on the terms set forth in the Indenture. CCLP will offer to make a cash payment equal to 101% of the aggregate principal amount of the CCLP Senior Secured Notes repurchased plus accrued and unpaid interest, if any, on the CCLP Senior Secured Notes repurchased to the date of repurchase, subject to the rights of holders of the CCLP Senior Secured Notes on the relevant record date to receive interest due on the relevant interest payment date. The Indenture contains customary covenants restricting CCLP's ability and the ability of CCLP restricted subsidiaries to: (i) pay distributions on, purchase or redeem CCLP common units or purchase or redeem any CCLP subordinated debt; (ii) incur or guarantee additional indebtedness or issue certain kinds of preferred equity securities; (iii) create or incur certain liens securing indebtedness; (iv) sell assets, including dispositions of the Collateral; (v) consolidate, merge or transfer all or substantially all of its assets; (vi) enter into transactions with affiliates; and (vii) enter into agreements that restrict distributions or other payments from its restricted subsidiaries to CCLP. These covenants are subject to a number of important limitations and exceptions, including certain provisions permitting CCLP, subject to the satisfaction of certain conditions, to transfer assets to certain of CCLP's unrestricted subsidiaries. Moreover, if the CCLP Senior Secured Notes receive an investment grade rating from at least two rating agencies and no default has occurred and is continuing under the Indenture, many of the restrictive covenants in the Indenture will be terminated. The Indenture also contains customary events of default and acceleration provisions relating to such events of default, which provide that upon an event of default under the Indenture, the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding CCLP Senior Secured Notes may declare all of the CCLP Senior Secured Notes to be due and payable immediately. On March 22, 2018, CCLP, the grantors named therein, the Trustee and U.S. Bank National Association, as the collateral trustee (the “Collateral Trustee”), entered into a collateral trust agreement (the “Collateral Trust Agreement”) pursuant to which the Collateral Trustee will receive, hold, administer, maintain, enforce and distribute the proceeds of all of its liens upon the collateral for the benefit of the current and future holders of the CCLP Senior Secured Notes and any future priority lien obligations, if any. CCLP Bank Credit Facilities. On March 22, 2018, in connection with the closing of the CCLP Offering, CCLP repaid all outstanding borrowings and obligations under its existing CCLP Credit Agreement with a portion of the net proceeds from the CCLP Offering, and terminated the CCLP Credit Agreement. As a result of the termination of the CCLP Credit Agreement, associated unamortized deferred financing costs of $3.5 million were charged to other (income) expense, net, during the three month period ended March 31, 2018. On June 29, 2018, CCLP and two of its wholly owned subsidiaries (collectively the "CCLP Borrowers"), and certain of its wholly owned subsidiaries named therein as guarantors (the "CCLP New Credit Agreement Guarantors"), entered into a Loan and Security Agreement (the "CCLP New Credit Agreement") with the lenders thereto (the "Lenders"), and Bank of America, N.A., in its capacity as administrative agent, collateral agent, letter of credit issuer, and swing line lender. All of the CCLP Borrowers' obligations under the CCLP New Credit Agreement are guaranteed by certain of their existing and future domestic subsidiaries. The CCLP New Credit Agreement includes a maximum credit commitment of $50.0 million available for loans, letters of credit (with a sublimit of $25.0 million) and swingline loans (with a sublimit of $5.0 million). Such maximum credit commitment may be increased by $25.0 million in accordance with the terms and conditions of the CCLP New Credit Agreement. The CCLP Borrowers may borrow funds under the CCLP New Credit Agreement to pay fees and expenses related to the CCLP New Credit Agreement and for the Borrower's ongoing working capital needs and for general business purposes. The revolving loans under the CCLP New Credit Agreement may be voluntarily prepaid, in whole or in part, without premium or penalty, subject to breakage or similar costs. The maturity date of the CCLP New Credit Agreement is June 29, 2023. As of June 30, 2018, no balance was outstanding under the CCLP New Credit Agreement. Because there was no outstanding balance on the CCLP New Credit Agreement, associated deferred financing costs of $1.3 million as of June 30, 2018, were classified as other assets on the accompanying consolidated balance sheet. Borrowings under the CCLP New Credit Agreement will bear interest at a rate per annum equal to, at the option of the CCLP Borrowers, either (i) London InterBank Offered Rate (“LIBOR”) (adjusted to reflect any required bank reserves) for an interest period equal to 30, 60, 90, 180 or 360 days (as selected by the CCLP Borrowers, subject to availability and with the consent of the Lenders for 360 days) plus a margin based on average daily excess availability or (ii) a base rate plus a margin based on average daily excess availability; such base rate shall be determined by reference to the highest of (a) the prime rate of interest announced from time to time by Bank of America, N.A., (b) the Federal Funds Rate (as defined in the CCLP New Credit Agreement) rate plus 0.5% per annum and (c) LIBOR (adjusted to reflect any required bank reserves) for a 30-day interest period on such day plus 1.0% per annum. Initially, from June 29, 2018 until the delivery of the financial statements for the fiscal quarter ending December 31, 2018, LIBOR-based loans will have an applicable margin of 2.00% per annum and base-rate loans will have an applicable margin of 1.00% per annum; thereafter, the applicable margin will range between 1.75% and 2.25% per annum for LIBOR-based loans and 0.75% and 1.25% per annum for base-rate loans, according to average daily excess availability when financial statements are delivered. In addition to paying interest on outstanding principal under the CCLP New Credit Agreement, the CCLP Borrowers will be required to pay a commitment fee in respect of the unutilized commitments thereunder, initially at the rate of 0.375% per annum until the delivery of the financial statements for the fiscal quarter ending September 30, 2018 and thereafter at the applicable rate ranging from 0.250% to 0.375% per annum, paid quarterly in arrears based on utilization of the commitments under the CCLP New Credit Agreement. The CCLP Borrowers will also be required to pay a customary letter of credit fee equal to the applicable margin on revolving credit LIBOR loans and fronting fees. The CCLP New Credit Agreement contains certain affirmative and negative covenants, including covenants that restrict the ability of the CCLP Borrowers, the CCLP New Credit Agreement Guarantors and certain of their subsidiaries to take certain actions including, among other things and subject to certain significant exceptions, the incurrence of debt, the granting of liens, the making of investments, entering into transactions with affiliates, the payment of dividends and the sale of assets. The CCLP New Credit Agreement also contains a requirement that the CCLP Borrowers comply, during certain periods, with a fixed charge coverage ratio of 1.0 to 1.0. All obligations under the CCLP New Credit Agreement and the guarantees of those obligations are secured, subject to certain exceptions, by a first priority security interest for the benefit of the Lenders in the CCLP Borrowers’ and the CCLP New Credit Agreement Guarantors’ present and future accounts receivable, inventory and related assets and proceeds of the foregoing (the “CCLP ABL Collateral”). |
CCLP Series A Preferred Units CCLP Series A Preferred Units |
6 Months Ended |
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Jun. 30, 2018 | |
Series A Preferred Units [Abstract] | |
CCLP Series A Preferred Units | CCLP SERIES A CONVERTIBLE PREFERRED UNITS During 2016, CCLP entered into Series A Preferred Unit Purchase Agreements (the “CCLP Unit Purchase Agreements”) with certain purchasers to issue and sell in two private placements (the "Initial Private Placement" and "Subsequent Private Placement," respectively) an aggregate of 6,999,126 of CSI Compressco LP Series A Convertible Preferred Units representing limited partner interests in CCLP (the “CCLP Preferred Units”) for a cash purchase price of $11.43 per CCLP Preferred Unit (the “Issue Price”), resulting in total 2016 net proceeds to CCLP, after deducting certain offering expenses, of $77.3 million. We purchased 874,891 of the CCLP Preferred Units in the Initial Private Placement at the aggregate Issue Price of $10.0 million. We and the other holders of CCLP Preferred Units (each, a “CCLP Preferred Unitholder”) receive quarterly distributions, which are paid in kind in additional CCLP Preferred Units, equal to an annual rate of 11.00% of the Issue Price ($1.2573 per unit annualized), subject to certain adjustments. The rights of the CCLP Preferred Units include certain anti-dilution adjustments, including adjustments for economic dilution resulting from the issuance of CCLP common units in the future below a set price. A ratable portion of the CCLP Preferred Units has been, and will continue to be, converted into CCLP common units on the eighth day of each month over a period of thirty months that began in March 2017 (each, a “Conversion Date”), subject to certain provisions of the Second Amended and Restated CCLP Partnership Agreement that may delay or accelerate all or a portion of such monthly conversions. On each Conversion Date, a portion of the CCLP Preferred Units will convert into CCLP common units representing limited partner interests in CCLP in an amount equal to, with respect to each CCLP Preferred Unitholder, the number of CCLP Preferred Units held by such CCLP Preferred Unitholder divided by the number of Conversion Dates remaining, subject to adjustment described in the Second Amended and Restated CCLP Partnership Agreement, with the conversion price (the "Conversion Price") determined by the trading prices of the common units over the prior month, among other factors, and as otherwise impacted by the existence of certain conditions related to the CCLP common units. Based on the number of CCLP Preferred Units outstanding as of June 30, 2018, the maximum aggregate number of CCLP common units that could be required to be issued pursuant to the conversion provisions of the CCLP Preferred Units is approximately 25.5 million CCLP common units; however, CCLP may, at its option, pay cash, or a combination of cash and common units, to the CCLP Preferred Unitholders instead of issuing common units on any Conversion Date, subject to certain restrictions as described in the Second Amended and Restated CCLP Partnership Agreement. The total number of CCLP Preferred Units outstanding as of June 30, 2018 was 4,458,803, of which we held 559,975. Because the CCLP Preferred Units may be settled using a variable number of CCLP common units, the fair value of the CCLP Preferred Units, net of the units we purchased, is classified as long-term liabilities on our consolidated balance sheet in accordance with ASC 480 "Distinguishing Liabilities and Equity." The fair value of the CCLP Preferred Units as of June 30, 2018 was $45.6 million. During the three and six month period ended June 30, 2018, changes in the fair value during each period, resulted in $0.5 million being credited to earnings and $0.8 million being charged to earnings, respectively, in the accompanying consolidated statements of operations. During the three and six month period ended June 30, 2017, changes in the fair value resulted in $4.8 million being credited to earnings and $3.2 million being credited to earnings, respectively, in the accompanying consolidated statements of operations. Based on the conversion provisions of the CCLP Preferred Units, and using the Conversion Price calculated as of June 30, 2018, the theoretical number of CCLP common units that would be issued if all of the outstanding CCLP Preferred Units were converted on June 30, 2018 on the same basis as the monthly conversions would be approximately 9.9 million CCLP common units, with an aggregate market value of $55.2 million. A $1 decrease in the Conversion Price would result in the issuance of 2.4 million additional CCLP common units pursuant to these conversion provisions. |
Market Risks and Derivative Hedge Contracts |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge Contracts | MARKET RISKS AND DERIVATIVE CONTRACTS We are exposed to financial and market risks that affect our businesses. We have concentrations of credit risk as a result of trade receivables owed to us by companies in the energy industry. We have currency exchange rate risk exposure related to transactions denominated in foreign currencies as well as to investments in certain of our international operations. As a result of our variable rate bank credit facility, we face market risk exposure related to changes in applicable interest rates. Our financial risk management activities may at times involve, among other measures, the use of derivative financial instruments, such as swap and collar agreements, to hedge the impact of market price risk exposures. Derivative Contracts Foreign Currency Derivative Contracts. We and CCLP each enter into 30-day foreign currency forward derivative contracts with third parties as part of a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries. As of June 30, 2018, we and CCLP had the following foreign currency derivative contracts outstanding relating to portions of our foreign operations:
Under this program, we and CCLP may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period. The fair values of foreign currency derivative instruments are based on quoted market values as reported to us by our counterparty (a level 2 fair value measurement). The fair values of our and CCLP's foreign currency derivative instruments as of June 30, 2018 and December 31, 2017, are as follows:
None of the foreign currency derivative contracts contain credit risk related contingent features that would require us to post assets or collateral for contracts that are classified as liabilities. During the three and six month periods ended June 30, 2018, we recognized $0.7 million and $0.8 million of net gains (losses), respectively, reflected in other (income) expense, net, associated with our foreign currency derivative program. During the three and six month periods ended June 30, 2017, we recognized $0.4 million and $1.1 million of net gains (losses), respectively, reflected in other (income) expense, net, associated with our foreign currency derivative program. |
Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY Changes in equity for the three and six month periods ended June 30, 2018 and 2017 are as follows:
Activity within the foreign currency translation adjustment account during the periods includes no reclassifications to net income (loss). |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are named defendants in several lawsuits and respondents in certain governmental proceedings arising in the ordinary course of business. While the outcome of lawsuits or other proceedings against us cannot be predicted with certainty, management does not consider it reasonably possible that a loss resulting from such lawsuits or other proceedings in excess of any amounts accrued has been incurred that is expected to have a material adverse impact on our financial condition, results of operations, or liquidity. On March 18, 2011, we filed a lawsuit in the Circuit Court of Union County, Arkansas, asserting claims of professional negligence, breach of contract and other claims against the engineering firm we hired for engineering design, equipment, procurement, advisory, testing and startup services for our El Dorado, Arkansas chemical production facility. The engineering firm disputed our claims and promptly filed a motion to compel the matter to arbitration. After a lengthy procedural dispute in Arkansas state court, arbitration proceedings were initiated on November 15, 2013. Ultimately, on December 16, 2016, the arbitration panel ruled in our favor, declared us as the prevailing party, and awarded us a total net amount of $12.8 million. We received full payment of the $12.8 million final award on January 5, 2017, and this amount was credited to earnings in the accompanying consolidated statement of operations for the six months ended June 30, 2017. Other Contingencies During 2011, in connection with the sale of a significant majority of Maritech's oil and gas producing properties, the buyers of the properties assumed the associated decommissioning liabilities pursuant to the purchase and sale agreements. In March 2018, we closed the Maritech Asset Purchase Agreement with Orinoco that provided for the purchase by Orinoco of the Maritech Properties. Also in March 2018, we finalized the Maritech Equity Purchase Agreement with Orinoco that provided for the purchase by Orinoco of the Maritech Equity Interests. As a result of these transactions, we have effectively exited the businesses of our Offshore Services and Maritech segments and Orinoco has assumed all of Maritech's remaining abandonment and decommissioning obligations. For further discussion of the sale of the Maritech Properties, see Note B - "Acquisitions and Dispositions." |
Industry Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segments | INDUSTRY SEGMENTS Following the transactions closed during the three month period ended March 31, 2018, we reorganized our reporting segments and now manage our operations through three Divisions: Completion Fluids & Products, Water & Flowback Services, and Compression. Our Completion Fluids & Products Division was previously reported as our Fluids Division, and included our water management services operations. Following the acquisition of SwiftWater in February 2018, our expanded water management operations are now included with our production testing operations as part of our Water & Flowback Services Division. The operations of our previous Offshore Division, consisting of our previous Offshore Services and Maritech segments, are now reported as discontinued operations following their disposal in March 2018. Our Completion Fluids & Products Division manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States and in certain countries in Latin America, Europe, Asia, the Middle East, and Africa. The division also markets liquid and dry calcium chloride products manufactured at its production facilities or purchased from third-party suppliers to a variety of markets outside the energy industry. Our Water & Flowback Services Division provides domestic onshore oil and gas operators with comprehensive water management services. The division also provides frac flowback, production well testing, offshore rig cooling, and other associated services in many of the major oil and gas producing regions in the United States, Mexico, and Canada, as well as in basins in certain regions in South America, Africa, Europe, the Middle East, and Australia. The Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. The Compression Division's equipment sales business includes the fabrication and sale of standard compressor packages, custom-designed compressor packages, and oilfield pump systems designed and fabricated at the division's facilities. The Compression Division's aftermarket services business provides compressor package reconfiguration and maintenance services as well as providing compressor package parts and components manufactured by third-party suppliers. The Compression Division provides its services and equipment to a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States as well as in a number of foreign countries, including Mexico, Canada, and Argentina. We generally evaluate the performance of and allocate resources to our segments based on profit or loss from their operations before income taxes and nonrecurring charges, return on investment, and other criteria. Transfers between segments and geographic areas are priced at the estimated fair value of the products or services as negotiated between the operating units. “Corporate overhead” includes corporate general and administrative expenses, corporate depreciation and amortization, interest income and expense, and other income and expense. Summarized financial information concerning the business segments is as follows:
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Revenue from Contracts with Customers (Notes) |
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Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Performance Obligations. Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Generally this occurs with the transfer of control of our products or services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services to our customers. For a general discussion of the nature of the goods and services that we provide, see Note I - "Industry Segments." Product Sales. Product sales revenues are recognized at a point in time when we transfer control of our product offerings to our customers, generally when we ship products from our facility to our customer. The product sales for our Completion Fluid & Products Division consist primarily of clear brine fluids, additives, and associated manufactured products. Product sales for our Water & Flowback Services Division are typically attributed to specific performance obligations within certain production testing service arrangements. Parts and equipment sales comprise the product sales for the Compression Division. Services. Service revenues represent revenue recognized over time, as our customer arrangements typically provide agreed upon day-rates (monthly service rates for compression services) and we recognize service revenue based upon the number of days services have been performed. Service revenue recognized over time is associated with a majority of our Water & Flowback Services Division arrangements, compression service and aftermarket service contracts within our Compression Division, and a small portion of Completion Fluids & Products Division revenue that is associated with completion fluid service arrangements. With the exception of the initial terms of the compression services contracts for medium- and high-horsepower compressor packages of our Compression Division, our customer contracts are generally for terms of one year or less. The majority of the service arrangements in the Water & Flowback Services Division are for a period of 90 days or less. Within our Compression Division service revenue, most aftermarket service revenues are recognized at a point in time when we transfer control of our products and complete the delivery of services to our customers. We receive cash equal to the invoice price for most product sales and services and payment terms typically range from 30 to 60 days from the date we invoice our customer. Since the period between when we deliver products or services and when the customer pays for products or services are not expected to exceed one year, we have elected not to calculate or disclose a financing component for our customer contracts. Depending on the terms of the arrangement, we may also defer the recognition of revenue for a portion of the consideration received because we have to satisfy a future performance obligation. For example, consideration received from customers during the fabrication of new compressor packages is typically deferred until control of the compressor package is transferred to our customer. For any arrangements with multiple performance obligations, we use management's estimated selling price to determine the stand-alone selling price for separate performance obligations. For revenue associated with mobilization of service equipment as part of a service contract arrangement, such revenue, if significant, is deferred and amortized over the estimated service period. As of June 30, 2018, we had $6.4 million of remaining performance obligations related to our compression service contracts. As a practical expedient, this amount does not reflect revenue for compression service contracts whose original expected duration is less than 12 months and does not consider the effects of the time value of money. The remaining performance obligations are expected to be recognized through 2022 as follows (in thousands):
Sales taxes, value added taxes, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We have elected to recognize the cost for freight and shipping costs as part of cost of product sales when control over our products (i.e. delivery) has transferred to the customer. Use of Estimates. Contracts where the amount of revenue that will ultimately be realized is subject to uncertainties not fully known as of the time revenue is recognized are known as variable consideration arrangements. In recognizing revenue for these arrangements, the amount of variable consideration recognized is limited so that it is probable that significant amounts of revenues will not be reversed in future periods when the uncertainty is resolved. For products returned by the customer, we estimate the expected returns based on an analysis of historical experience. For volume discounts earned by the customer, we estimate the discount (if any) based on our estimate of the total expected volume of products sold or services to be provided to the customer during the discount period. In certain contracts for the sale of clear brine fluids, we may agree to issue credits for the repurchase of reclaimable used fluids from certain customers at an agreed price that is based on the condition of the fluids. For sales of clear brine fluids, we adjust the revenue recognized in the period of shipment by the estimated amount of the credit expected to be issued to the customer, and this estimate is based on historical experience. As of June 30, 2018, the amount of remaining credits expected to be issued for the repurchase of reclaimable used fluids was $1.1 million that were recorded in inventory (right of return asset) and accounts payable. There were no material differences between amounts recognized during the three month period ended June 30, 2018, compared to estimates made in a prior period from these variable consideration arrangements. Contract Assets and Liabilities. Contract assets arise when we transfer products or perform services in fulfillment of a contract obligation but must perform other performance obligations before being entitled to payment. Generally, once we have transferred products or performed services for the customer pursuant to a contract, we recognize revenue and trade accounts receivable, as we are entitled to payment that is unconditional. Any contract assets, along with billed and unbilled accounts receivable, are included in Trade Accounts Receivable in our consolidated balance sheets. Contract liabilities arise when we receive consideration, or consideration is unconditionally due, from a customer prior to transferring products or services to the customer under the terms of a sales contract. We classify contract liabilities as Unearned Income in our consolidated balance sheets. Such deferred revenue typically results from advance payments received on sales of compressor equipment prior to when it is completed and transferred to the customer in accordance with the customer contract. As of June 30, 2018 and December 31, 2017, contract assets were immaterial. The following table reflects the changes in our contract liabilities during the six month period ended June 30, 2018:
Bad debt expense on accounts receivables and contract assets was $0.1 million and $0.3 million during the three and six month periods ended June 30, 2018, respectively, and $0.3 million and $0.9 million during the three and six month periods ended June 30, 2017, respectively. During the three month period ended June 30, 2018, contract liabilities increased due to unearned income for consideration received on new compressor equipment being fabricated. During the six month period ended June 30, 2018, $47.3 million of unearned income was recognized as product sales revenue, primarily associated with deliveries of compression equipment. Contract Costs. When costs are incurred to obtain contracts, such as professional fees and sales bonuses, such costs are deferred and amortized over the expected period of benefit. Costs of mobilizing service equipment necessary to perform under service contracts, if significant, are deferred and amortized over the estimated service period, which is generally a few weeks. As of June 30, 2018, such contract costs were immaterial. Where applicable, we establish provisions for estimated obligations pursuant to product warranties by accruing for estimated future product warranty cost in the period of the product sale. Such estimates are based on historical warranty loss experience. Major components of fabricated compressor packages have manufacturer warranties that we pass through to the customer. Disaggregation of Revenue. We disaggregate revenue from contracts with customers into Product Sales and Services within each segment, as noted in our three reportable segments in Note I. In addition, we disaggregate revenue from contracts with customers by geography based on the following table below.
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Basis of Presentation and Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Policy Text Block] | Asset Retirement Obligations We operate facilities in various U.S. and foreign locations that are used in the manufacture, storage, and sale of our products, inventories, and equipment. These facilities are a combination of owned and leased assets. We are required to take certain actions in connection with the retirement of these assets. The values of our asset retirement obligations for these properties were $12.1 million and $11.7 million as of June 30, 2018 and December 31, 2017, respectively. Asset retirement obligations are recorded in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 410, "Asset Retirement and Environmental Obligations," whereby the estimated fair value of a liability for asset retirement obligations is recognized in the period in which it is incurred and in which a reasonable estimate can be made. Such estimates are based on relevant assumptions that we believe are reasonable. We have reviewed our obligations in this regard in detail and estimated the cost of these actions. The associated asset retirement costs are capitalized as part of the carrying amount of these long-lived assets and are depreciated on a straight-line basis over the life of the assets. The changes in the values of our asset retirement obligations during the three and six month period ended June 30, 2018, are as follows:
We review the adequacy of our asset retirement obligation liabilities whenever indicators suggest that the estimated cash flows underlying the liabilities have changed. |
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Principles of consolidation policy | Our consolidated financial statements include the accounts of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The information furnished reflects all normal recurring adjustments, which are, in the opinion of management, necessary to provide a fair statement of the results for the interim periods. Operating results for the period ended June 30, 2018 are not necessarily indicative of results that may be expected for the twelve months ended December 31, 2018. We consolidate the financial statements of CSI Compressco LP and its subsidiaries ("CCLP") as part of our Compression Division, as we determined that CCLP is a variable interest entity and we are the primary beneficiary. We control the financial interests of CCLP and have the ability to direct the activities of CCLP that most significantly impact its economic performance through our ownership of its general partner. The share of CCLP net assets and earnings that is not owned by us is presented as noncontrolling interest in our consolidated financial statements. Our cash flows from our investment in CCLP are limited to the quarterly distributions we receive on our CCLP common units and general partner interest (including incentive distribution rights) and the amounts collected for services we perform on behalf of CCLP, as TETRA's capital structure and CCLP's capital structure are separate, and do not include cross default provisions, cross collateralization provisions, or cross guarantees. The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission ("SEC") and do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in connection with the financial statements for the year ended December 31, 2017, and notes thereto included in our Annual Report on Form 10-K, which we filed with the SEC on March 5, 2018. |
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Reclassifications policy | Reclassifications Certain previously reported financial information has been reclassified to conform to the current period’s presentation. For a discussion of the reclassification of the financial presentation of our Offshore Division as discontinued operations, see Note C - "Discontinued Operations." |
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Use of estimates policy | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and impairments during the reporting period. Actual results could differ from those estimates, and such differences could be material. |
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Reclassification, Policy [Policy Text Block] | Reclassifications Certain previously reported financial information has been reclassified to conform to the current period’s presentation. |
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Cash and cash equivalents policy | Cash Equivalents We consider all highly liquid cash investments with a maturity of three months or less when purchased to be cash equivalents. |
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Restricted cash policy | Restricted Cash Restricted cash is classified as a current asset when it is expected to be repaid or settled in the next twelve month period. |
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Inventories policy | Inventories Inventories are stated at the lower of cost or net realizable value. Except for work in progress inventory discussed below, cost is determined using the weighted average method. Components of inventories as of June 30, 2018 and December 31, 2017 are as follows:
Finished goods inventories include newly manufactured clear brine fluids as well as used brines that are repurchased from certain customers for recycling. Recycled brines are recorded at cost, using the weighted average method. Work in progress inventory consists primarily of new compressor packages located in the CCLP fabrication facility in Midland, Texas. The cost of work in progress is determined using the specific identification method. We write down the value of inventory by an amount equal to the difference between its cost and its estimated net realizable value. |
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Weighted Average Shares Outstanding Table | The following is a reconciliation of the weighted average number of common shares outstanding with the number of shares used in the computations of net income (loss) per common and common equivalent share:
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Foreign currency translation policy | Foreign Currency Translation We have designated the euro, the British pound, the Norwegian krone, the Canadian dollar, the Brazilian real, the Argentine peso, and the Mexican peso, as the functional currencies for our operations in Finland and Sweden, the United Kingdom, Norway, Canada, Brazil, Argentina, and certain of our operations in Mexico, respectively. The U.S. dollar is the designated functional currency for all of our other foreign operations. The cumulative translation effects of translating the applicable accounts from the functional currencies into the U.S. dollar at current exchange rates are included as a separate component of equity. Foreign currency exchange (gains) and losses are included in other (income) expense, net and totaled $0.6 million and $(0.3) million during the three and six month periods ended June 30, 2018 and $0.6 million and $1.2 million during the three and six month periods ended June 30, 2017, respectively. On June 30, 2018, we determined the economy in Argentina to be highly inflationary. As a result of this determination, beginning July 1, 2018, our reporting of our operations in Argentina will reflect the remeasurement of the functional currency from the Argentine peso to the U.S. dollar. |
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Income taxes policy | Income Taxes Our consolidated provision for income taxes during the first six months of 2017 and 2018 is primarily attributable to taxes in certain foreign jurisdictions and Texas gross margin taxes. Our consolidated effective tax rate for the six month period ended June 30, 2018 of negative 12.1% was primarily the result of losses generated in entities for which no related tax benefit has been recorded. The losses generated by these entities do not result in tax benefits due to offsetting valuation allowances being recorded against the related net deferred tax assets. We establish a valuation allowance to reduce the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in our deferred tax assets are net operating loss carryforwards and tax credits that are available to offset future income tax liabilities in the U.S. as well as in certain foreign jurisdictions. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. At June 30, 2018 and December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, we made reasonable estimates of the effects and recorded provisional amounts. We will continue to make and refine our calculations as additional analysis is completed. The accounting for the tax effects of the Act will be completed in 2018 as provided by the U.S. Securities and Exchange Commission’s SAB No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. We recognized an income tax expense of $54.1 million in the fourth quarter of 2017 associated with the impact of the Act, which was fully offset by a decrease in the valuation allowance previously recorded on our net deferred tax assets. As such, the Act resulted in no net tax expense in the fourth quarter of 2017. We have considered in our estimated annual effective tax rate for 2018, the impact of the statutory changes enacted by the Act, including reasonable estimates of those provisions effective for the 2018 tax year. Our estimate on Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion and Anti-Abuse Tax (“BEAT”), and IRC Section 163(j) interest limitation do not impact our effective tax rate for the three and six month periods ended June 30, 2018. |
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Fair value measurements policy | Fair Value Measurements Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that may differ from the transaction price or market price of the asset or liability. Under U.S. generally accepted accounting principles ("GAAP"), the fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value. Fair value measurements should maximize the use of observable inputs and minimize the use of unobservable inputs, where possible. Observable inputs are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs may be needed to measure fair value in situations where there is little or no market activity for the asset or liability at the measurement date and are developed based on the best information available in the circumstances, which could include the reporting entity’s own judgments about the assumptions market participants would utilize in pricing the asset or liability. We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements are utilized on a recurring basis in the determination of the carrying values of the liabilities for the warrants to purchase 11.2 million shares of our common stock (the "Warrants") and the CCLP Preferred Units (as herein defined). We also utilize fair value measurements on a recurring basis in the accounting for our foreign currency derivative contracts. For these fair value measurements, we utilize the quoted value as determined by our counterparty financial institution (a level 2 fair value measurement). Fair value measurements are also utilized on a nonrecurring basis in certain circumstances, such as in the allocation of purchase consideration for acquisition transactions to the assets and liabilities acquired, including intangible assets and goodwill (a level 3 fair value measurement), the initial recording of our asset retirement obligations, and for the impairment of long-lived assets, including goodwill (a level 3 fair value measurement). The fair values of certain of our financial instruments, which include cash, restricted cash, accounts receivable, accounts payable, short-term borrowings, and long-term debt pursuant to our bank credit agreement, approximate their carrying amounts. The aggregate fair values of our long-term 11% Senior Note at June 30, 2018 and December 31, 2017, were approximately $128.2 million and $130.8 million, respectively, based on current interest rates on those dates, which were different from the stated interest rate on the 11% Senior Note. Those fair values compare to the face amount of the 11% Senior Note of $125.0 million both at June 30, 2018 and December 31, 2017. The fair values of the publicly traded CCLP 7.25% Senior Notes (as herein defined) at June 30, 2018 and December 31, 2017, were approximately $271.5 million and $279.7 million, respectively. Those fair values compare to the face amount of $295.9 million both at June 30, 2018 and December 31, 2017. The fair value of the publicly traded CCLP 7.50% Senior Secured Notes at June 30, 2018 was approximately $351.8 million. This fair value compares to aggregate principal amount of such notes at June 30, 2018 of $350.0 million. We calculated the fair values of our 11% Senior Note as of June 30, 2018 and December 31, 2017 internally, using current market conditions and average cost of debt (a level 2 fair value measurement). We based the fair values of the CCLP 7.25% Senior Notes and the CCLP 7.50% Senior Secured Notes as of June 30, 2018 on recent trades for these notes (a level 1 fair value measurement). See Note D - "Long-Term Debt and Other Borrowings," for further discussion. The CCLP Preferred Units are valued using a lattice modeling technique that, among a number of lattice structures, includes significant unobservable items (a Level 3 fair value measurement). These unobservable items include (i) the volatility of the trading price of CCLP's common units compared to a volatility analysis of equity prices of CCLP's comparable peer companies, (ii) a yield analysis that utilizes market information related to the debt yields of comparable peer companies, and (iii) a future conversion price analysis. The fair valuation of the CCLP Preferred Units liability is increased by, among other factors, projected increases in CCLP's common unit price and by increases in the volatility and decreases in the debt yields of CCLP's comparable peer companies. Increases (or decreases) in the fair value of CCLP Preferred Units will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the three and six month periods ended June 30, 2018, the changes in the fair value of the CCLP Preferred Units resulted in $0.5 million being credited to earnings and $0.8 million charged to earnings, respectively, in the consolidated statement of operations. The Warrants are valued either by using their traded market prices (a level 1 fair value measurement) or, for periods when market prices are not available, by using the Black Scholes option valuation model that includes estimates of the volatility of the Warrants implied by their trading prices (a level 3 fair value measurement). As of June 30, 2018 and December 31, 2017, the fair valuation methodology utilized for the Warrants was a level 3 fair value measurement, as there were no available traded market prices to value the Warrants. The fair valuation of the Warrants liability is increased by, among other factors, increases in our common stock price, and by increases in the volatility of our common stock price. Increases (or decreases) in the fair value of the Warrants will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the three and six month periods ended June 30, 2018, the changes in the fair value of the Warrants liability resulted in $2.2 million being charged to earnings and $0.2 million being charged to earnings, respectively, in the consolidated statement of operations. During the third quarter of 2017 and the first quarter of 2018, we issued stand-alone, cash-settled stock appreciation rights awards to an executive officer. These awards are valued by using the Black Scholes option valuation model and such fair value is recognized based on the portion of the requisite service period satisfied as of each valuation date. The fair valuation of the stock appreciation rights liability is increased by, among other factors, increases in our common stock price, and by increases in the volatility of our common stock price. These stock appreciation rights awards are reflected as an accrued liability in our consolidated balance sheet. Increases (or decreases) in the fair value of the stock appreciation rights awards will increase (decrease) the associated liability and result in future adjustments to earnings for the associated valuation losses (gains). During the six months ended June 30, 2018, the fair value of the stock appreciation rights increased $0.2 million, which was charged to earnings in the consolidated statement of operations. A summary of these fair value measurements as of June 30, 2018 and December 31, 2017, is as follows:
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New Accounting Pronouncements policy | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." This ASU supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, "Revenue Recognition," and most industry-specific guidance. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those years, under either full or modified retrospective adoption. On January 1, 2018, we adopted ASU 2014-09 and all related amendments ("ASU 2014-09"). We utilized the modified retrospective method of adoption. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also provides a five-step model for determining revenue recognition for arrangements that are within the scope of the standard: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, once the contract is determined to be within the scope of ASU 2014-09, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. For a complete discussion of accounting for revenues, see Note J - Revenue from Contracts with Customers. The impact from the adoption of ASU 2014-09 to our January 1, 2018 consolidated balance sheet, our June 30, 2018 consolidated balance sheet, and our consolidated results of operations for the three and six month periods ended June 30, 2018 was immaterial. The adoption of ASU 2014-09 had no impact to cash provided by operating, financing, or investing activities in our consolidated statement of cash flows. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. In February 2016, the FASB issued ASU 2016-02, "Leases" (Topic 842) to increase comparability and transparency among different organizations. Organizations are required to recognize right-of-use lease assets and lease liabilities on the balance sheet related to the right to use the underlying asset for the lease term. In addition, through improved disclosure requirements, the ASU will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. We are currently assessing the potential effects of these changes to our consolidated financial statements. Our current operating lease portfolio consists primarily of real estate, vehicles, and equipment leases. Based on our preliminary assessment, upon adoption of the ASU, we will record significant right-to-use assets and lease obligations pursuant to the new requirements. We are evaluating our portfolio of existing leases for consideration of the accounting impact of each lease. We are also evaluating and are developing internal policies to address the requirements under this ASU. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. ASU 2016-13, which has an effective date of the first quarter of fiscal 2022, also applies to employee benefit plan accounting. We are currently assessing the potential effects of these changes to our consolidated financial statements and employee benefit plan accounting. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" to reduce diversity in practice in classification of certain transactions in the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted, under a retrospective transition adoption. We adopted this ASU during the three month period ended March 31, 2018, with no material impact to our consolidated financial statements. In November 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" which requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. We adopted this ASU during the three month period ended March 31, 2018. The adoption of this standard did not have a material impact to our consolidated financial statements due to a previously recorded valuation allowance on our net deferred tax assets. Additionally, in November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. We adopted this ASU during the three month period ended March 31, 2018, resulting in restricted cash being classified with cash and cash equivalents in our consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for annual periods beginning after December 15, 2020, and interim periods within those annual periods, with early adoption permitted, under a prospective adoption. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. We adopted this ASU during the three month period ended March 31, 2018, with no material impact to our consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception" to consider “down round” features when determining whether certain equity-linked financial instruments or embedded features are indexed to an entity’s own stock. Entities that present EPS under ASC 260 will recognize the effect of a down round feature in a freestanding equity-classified financial instrument only when it is triggered. The effect of triggering such a feature will be recognized as a dividend and a reduction to income available to common shareholders in basic EPS. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are currently assessing the potential effects of these changes to our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" to change how companies account for and disclose hedges. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are currently assessing the potential effects of these changes to our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” to align the measurement and classification guidance for share-based payments to nonemployees with the guidance currently applied to employees, with certain exceptions. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. We are currently assessing the potential effects of these changes to our consolidated financial statements. |
Basis of Presentation and Significant Accounting Policies (Tables) - USD ($) shares in Thousands, $ in Thousands |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories Table |
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Inventories Detail [Table] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finished goods | $ 60,011 | $ 60,011 | $ 66,377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Raw materials | 3,934 | 3,934 | 4,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parts and supplies | 44,585 | 44,585 | 33,632 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Work in progress | 24,837 | 24,837 | 11,402 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | $ 133,367 | $ 133,367 | 115,438 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per share policy | Net Income (Loss) per Share The following is a reconciliation of the weighted average number of common shares outstanding with the number of shares used in the computations of net income (loss) per common and common equivalent share:
For the three and six month periods ended June 30, 2018 and June 30, 2017, the average diluted shares outstanding excludes the impact of all outstanding equity awards and warrants, as the inclusion of these shares would have been anti-dilutive due to the net losses recorded during the periods. |
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Weighted Average Shares Outstanding [Table] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of weighted average common shares outstanding | 122,474 | 114,534 | 125,553 | 114,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumed exercise of stock options | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average diluted shares outstanding | 122,474 | 114,534 | 125,553 | 114,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements on a Recurring Basis Table |
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Settled Stock Appreciation Rights SARS | $ (287) | $ (287) | (97) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Fair Value Disclosure, Recurring | (45,644) | (45,644) | (61,436) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Fair Value Disclosure, Recurring | (45,644) | (45,644) | (61,436) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty, Fair Value Disclosure, Recurring | (13,403) | (13,403) | 13,202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset for foreign currency derivative contracts | 180 | 180 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for foreign currency derivative contracts | (241) | (241) | (368) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | (59,395) | (59,395) | (74,862) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty, Fair Value Disclosure, Recurring | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Settled Stock Appreciation Rights SARS | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset for foreign currency derivative contracts | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for foreign currency derivative contracts | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty, Fair Value Disclosure, Recurring | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Settled Stock Appreciation Rights SARS | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset for foreign currency derivative contracts | 180 | 180 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for foreign currency derivative contracts | (241) | (241) | (378) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty, Fair Value Disclosure, Recurring | (13,403) | (13,403) | 13,202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Settled Stock Appreciation Rights SARS | (287) | (287) | (97) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset for foreign currency derivative contracts | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for foreign currency derivative contracts | $ 0 | $ 0 | $ 0 |
Long-Term Debt and Other Borrowings Long-Term Debt and Other Borrowings (TABLE) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 810,739 | $ 629,855 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Current Maturities | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Excluding Current Maturities | $ 810,739 | 629,855 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt Table |
|
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CSI Compressco [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 632,492 | 512,176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CSI Compressco [Member] | Line of Credit [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Aug. 04, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 0 | 223,985 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CSI Compressco [Member] | New Credit Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CSI Compressco [Member] | Compressco Partners Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Aug. 15, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 288,989 | 288,191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CSI Compressco [Member] | Compressco Partners Senior Notes 7.50% [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 343,503 | $ 0 |
Market Risks and Derivative Hedge Contracts Market Risks and Derivative Hedge Contracts (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions Table |
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Derivatives Designated as Hedging Instruments Table |
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Equity (Tables) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Equity Table |
Industry Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Table |
|
Industry Segments - Revenue, Income from Operations, and Assets by Reporting Segment - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Industry Segments Details [Line Items] | |||||
Product sales | $ 107,687 | $ 86,180 | $ 183,066 | $ 154,158 | |
Services and rentals | 152,385 | 93,751 | 276,387 | 185,182 | |
Intersegment revenues | 0 | 0 | 0 | 0 | |
Revenue, Net | 260,072 | 179,931 | 459,453 | 339,340 | |
Income (loss) before taxes | (12,132) | (7,966) | (33,189) | (12,211) | |
Assets | (1,379,619) | (1,308,614) | (1,379,619) | (1,308,614) | $ (1,308,614) |
Disposal Group, Including Discontinued Operation, Assets | 1,538 | 121,134 | 1,538 | 121,134 | $ 121,134 |
Completion Fluids & Products Division [Member] | |||||
Industry Segments Details [Line Items] | |||||
Product sales | 72,287 | 67,308 | 123,344 | 119,519 | |
Services and rentals | 4,268 | 6,687 | 6,317 | 10,703 | |
Intersegment revenues | 1 | 0 | (1) | 1 | |
Revenue, Net | 76,556 | 73,995 | 129,660 | 130,223 | |
Income (loss) before taxes | 36,088 | ||||
Assets | (303,396) | (293,507) | (303,396) | (293,507) | |
Water & Flowback Services [Member] | |||||
Industry Segments Details [Line Items] | |||||
Product sales | 0 | 145 | 676 | 6,258 | |
Services and rentals | 83,593 | 30,479 | 143,770 | 61,989 | |
Intersegment revenues | 53 | 462 | 275 | 1,018 | |
Revenue, Net | 83,646 | 31,086 | 144,721 | 69,265 | |
Income (loss) before taxes | (5,186) | ||||
Assets | (228,368) | (139,771) | (228,368) | (139,771) | |
Compression Division [Member] | |||||
Industry Segments Details [Line Items] | |||||
Product sales | 35,400 | 18,727 | 59,046 | 28,381 | |
Services and rentals | 64,524 | 56,585 | 126,300 | 112,490 | |
Intersegment revenues | 0 | 0 | 0 | ||
Revenue, Net | 99,924 | 75,312 | 185,346 | 140,871 | |
Income (loss) before taxes | (20,513) | ||||
Assets | (880,385) | (784,745) | (880,385) | (784,745) | |
Interdivision Eliminations [Member] | |||||
Industry Segments Details [Line Items] | |||||
Intersegment revenues | (54) | (462) | |||
Revenue, Net | (54) | (462) | (274) | (1,019) | |
Income (loss) before taxes | (161) | ||||
Corporate Overhead [Member] | |||||
Industry Segments Details [Line Items] | |||||
Income (loss) before taxes | (19,327) | (11,169) | (34,239) | (19,041) | |
Assets | $ (34,068) | $ (30,543) | $ (34,068) | $ (30,543) |
Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] |
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Revenue from Contracts with Customers Contract Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||
Deferred Revenue Disclosure [Text Block] |
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Revenue from Contracts with Customers Disaggregation of Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] |
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Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Goodwill and Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 22,197 | $ 6,636 |
Basis of Presentation and Significant Accounting Policies Asset Retirement Obligations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset Retirement Obligation | $ 12,073 | $ 12,073 | $ 11,929 | $ 11,738 |
Asset Retirement Obligation, Accretion Expense | 150 | 309 | ||
Asset Retirement Obligation, Revision of Estimate | $ (6) | $ 26 |
Basis of Presentation and Significant Accounting Policies Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Accounting Policies [Abstract] | |||||
Effective Income Tax Rate Reconciliation, Percent | (12.10%) | ||||
Provision (benefit) for income taxes | $ 2,446 | $ 54,100 | $ 3,317 | $ 3,570 | $ 3,398 |
Market Risks and Derivative Hedge Contracts Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net gains associated with foreign currency derivatives | $ 0.7 | $ 0.4 | $ 0.8 | $ 1.1 |
Commitments and Contingencies Commitment and Contingencies (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation Settlement, Amount Awarded from Other Party | $ 12.8 |
Revenue from Contracts with Customers Contract Assets and Liabilities - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Revenue from Contract with Customer [Abstract] | |||||
Trade accounts receivable, net of allowances | $ 181,454 | $ 181,454 | $ 144,051 | ||
Deferred Revenue | 29,134 | 29,134 | $ 17,050 | ||
Deferred Revenue, Additions | 59,360 | ||||
Contract with Customer, Liability, Revenue Recognized | (47,276) | ||||
Allowance for Doubtful Accounts Receivable, Write-offs | $ 300 | $ 300 | 100 | $ 900 | |
Contract with Customer, Liability, Revenue Recognized | $ 47,300 |
Acquisitions and Dispositions Disposition (Details) - USD ($) |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Mar. 02, 2018 |
Dec. 31, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Goodwill, Acquired During Period | $ 15,560,000 | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 3,100,000 | |||
Notes Receivable, Related Parties | 7,500,000 | |||
Loans Receivable with Fixed Rates of Interest | 0.0152 | |||
Asset Retirement Obligation | 12,073,000 | $ 11,929,000 | 11,738,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 47,000,000 | |||
Gain (Loss) on Disposition of Business | (33,813,000) | |||
Business Exit Costs | $ 1,400,000 | |||
Maritech [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset Retirement Obligation | $ 46,800,000 |
Label | Element | Value |
---|---|---|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 36,531,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 26,389,000 |
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