Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Selected Financial Information of the Company on a Pro Forma Basis

The following table summarizes selected financial information of the Company on a pro forma basis (in thousands, except per share data):

	2017		2016
	(Unaudited)
Revenues	$	2,738,579	$	1,567,141
Net income (loss)	$	29,584	$	(505,413	)
Net income (loss) per share
Basic	$	0.13	$	(2.30	)
Diluted	$	0.13	$	(2.30	)

Seventy Seven Energy Inc.

Total Fair Value of Consideration Transferred

The total fair value of the consideration transferred was determined as follows (in thousands, except stock price):

Shares of Company common stock issued to SSE shareholders		46,298
Company common stock price on April 20, 2017	$	22.45
Fair value of common stock issued	$	1,039,396
Plus SSE long-term debt repaid by Company	$	472,000
Total fair value of consideration transferred	$	1,511,396

Schedule of Total Purchase Price of Assets Acquired and Liabilities Assumed Based on Fair Value

The following table represents the final allocation of the total purchase price of SSE to the assets acquired and the liabilities assumed based on the fair value at the merger date, with the excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill (in thousands):

Identifiable assets acquired
Cash and cash equivalents	$	37,806
Accounts receivable		149,659
Inventory		8,518
Other current assets		19,038
Property and equipment		984,433
Other long-term assets		20,918
Intangible assets		22,500
Total identifiable assets acquired		1,242,872
Liabilities assumed
Accounts payable and accrued liabilities		133,415
Deferred income taxes		32,881
Other long-term liabilities		1,734
Total liabilities assumed		168,030
Net identifiable assets acquired		1,074,842
Goodwill		436,554
Total net assets acquired	$	1,511,396

Portion of Fair Value Consideration Transferred Assigned to Identifiable Intangible Assets

A portion of the fair value consideration transferred has been assigned to identifiable intangible assets as follows:

	Fair Value		Weighted Average Useful Life
	(in thousands)		(in years)
Assets
Favorable drilling contracts	$	22,500		0.83

MS Directional

Total Fair Value of Consideration Transferred

The total fair value of the consideration transferred was determined as follows (in thousands, except stock price):

Shares of Company common stock issued to MS Directional shareholders		8,798
Company common stock price on October 11, 2017	$	21.31
Fair value of common stock issued	$	187,494
Plus MS Directional long-term debt repaid by Company	$	63,000
Plus cash to sellers	$	6,781
Total fair value of consideration transferred	$	257,275

Schedule of Total Purchase Price of Assets Acquired and Liabilities Assumed Based on Fair Value

The following table represents the final allocation of the total purchase price of MS Directional to the assets acquired and the liabilities assumed based on the fair value at the merger date, with the excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill (in thousands):

Identifiable assets acquired
Cash and cash equivalents	$	2,021
Accounts receivable		42,782
Inventory		28,060
Other current assets		155
Property and equipment		63,998
Other long-term assets		318
Intangible assets		74,682
Total identifiable assets acquired		212,016
Liabilities assumed
Accounts payable and accrued liabilities		44,099
Other long-term liabilities		327
Total liabilities assumed		44,426
Net identifiable assets acquired		167,590
Goodwill		89,685
Total net assets acquired	$	257,275

Portion of Fair Value Consideration Transferred Assigned to Identifiable Intangible Assets

A portion of the fair value consideration transferred has been assigned to identifiable intangible assets as follows:

	Fair Value		Weighted Average Useful Life
	(in thousands)		(in years)
Assets
Developed technology	$	48,000		10.00
Customer relationships		26,200		3.00
Internal use software		482		5.00
	$	74,682		7.51