Segment Information

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Segment Information

(9) Segment Information

Business Segments
 

The products and service offerings of our Rentals segment are comprised of value-added engineering and design services, rental of premium drill strings, tubing, landing strings, completion tubulars and handling accessories, manufacturing and rental of bottom hole assemblies, and rentals of accommodation units.
 

The products and service offerings of our Well Services segment are comprised of risk management, well control and training solutions, hydraulic workover and snubbing services, engineering and manufacturing of premium sand control tools, and onshore international production services. The Well Services segment also includes the operations of our offshore oil and gas property.
 

We evaluate the performance of our reportable segments based on income or loss from operations. The segment measure is calculated as segment revenues less segment operating expenses, including general and administrative expenses, depreciation, depletion, amortization and accretion expense, restructuring expenses and other gains and losses. We use this segment measure to evaluate our reportable segments as it is the measure that is most consistent with how we organize and manage our business operations. Corporate and other costs primarily include expenses related to support functions, including salaries and benefits for corporate employees.
 

Summarized financial information for our segments is as follows (in thousands):

For the three months ended March 31, 2022 (Successor)				Well			Corporate and			Consolidated
	Rentals			Services			Other			Total
Revenues	$	88,756		$	109,174		$	-		$	197,930
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		31,752			80,628			-			112,380
Depreciation, depletion, amortization and accretion		20,989			11,728			1,368			34,085
General and administrative expenses		7,365			11,401			13,252			32,018
Restructuring expenses		-			-			1,555			1,555
Other (gains) and losses, net		(135	)		1,282			-			1,147
Income (loss) from operations	$	28,785		$	4,135		$	(16,175	)	$	16,745
For the Period February 3, 2021 through March 31, 2021 (Successor)				Well			Corporate and			Consolidated
	Rentals			Services			Other			Total
Revenues	$	42,448		$	63,395		$	-		$	105,843
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		15,486			52,551			-			68,037
Depreciation, depletion, amortization and accretion		28,058			11,163			809			40,030
General and administrative expenses		3,451			8,461			6,526			18,438
Restructuring expenses		-			-			8,383			8,383
Other (gains) and losses, net		(165	)		(4	)		-			(169	)
Income (loss) from operations	$	(4,382	)	$	(8,776	)	$	(15,718	)	$	(28,876	)
For the Period January 1, 2021 through February 2, 2021 (Predecessor)				Well			Corporate and			Consolidated
	Rentals			Services			Other			Total
Revenues	$	18,339		$	27,589		$	-		$	45,928
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		7,839			21,934			-			29,773
Depreciation, depletion, amortization and accretion		4,271			3,666			421			8,358
General and administrative expenses		2,027			4,111			4,914			11,052
Restructuring expenses		-			-			1,270			1,270
Income (loss) from operations	$	4,202		$	(2,122	)	$	(6,605	)	$	(4,525	)

Identifiable Assets

			Well		Corporate		Consolidated
	Rentals		Services		and Other		Total
March 31, 2022	$	421,865	$	628,863	$	173,631	$	1,224,359
December 31, 2021		379,453		636,256		183,799		1,199,508

Geographic Segments

We operate in the U.S. and in various other countries throughout the world. Our international operations are primarily focused in Latin America, Asia-Pacific and the Middle East and North Africa regions. We attribute revenue to various countries based on the location where services are performed or the destination of the drilling products or equipment sold or rented. Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period.

Our revenue attributed to the U.S. and to other countries and the value of our long-lived assets by those locations are as follows (in thousands):

Revenues

	Successor				Predecessor
	For the Three Months Ended March 31, 2022		For the Period February 3, 2021 through March 31, 2021		For the Period January 1, 2021 through February 2, 2021
United States	$	99,584	$	53,059	$	23,863
Other countries		98,346		52,784		22,065
Total	$	197,930	$	105,843	$	45,928

Long-Lived Assets

	March 31, 2022		December 31, 2021
United States	$	230,292	$	231,388
Other countries		101,207		124,886
Total	$	331,499	$	356,274