Property and Equipment

3 Months Ended

Mar. 31, 2016

Property Plant And Equipment [Abstract]

3. Property and Equipment

Property and equipment consisted of the following at March 31, 2016 and December 31, 2015 (in thousands):

	March 31,			December 31,
	2016			2015
Equipment	$	6,937,451		$	6,963,148
Oil and natural gas properties		199,166			200,923
Buildings		96,765			96,470
Land		22,370			22,370
		7,255,752			7,282,911
Less accumulated depreciation, depletion and impairment		(3,468,917	)		(3,362,203	)
Property and equipment, net	$	3,786,835		$	3,920,708

The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable (a “triggering event”). Based on recent commodity prices, results of operations for the period ended March 31, 2016 and management’s expectations of results of operations in future periods, the Company concluded that no triggering event occurred during the first quarter of 2016 with respect to its contract drilling segment or its pressure pumping segment. Management’s expectations of results of operations in future periods were based on the assumption that activity levels in both segments will begin to recover by early 2017 in response to improved future oil prices.

With respect to the long-lived assets in the Company’s oil and natural gas exploration and production segment, the Company assesses the recoverability of long-lived assets each quarter due to revisions in oil and natural gas reserve estimates and expectations about future commodity prices. The Company’s analysis indicated that the carrying amounts of certain oil and natural gas properties were not recoverable at March 31, 2016. The Company’s estimates of expected future net cash flows from impaired properties are used in measuring the fair value of such properties. The Company recorded impairment charges of $2.2 million during the first quarter of 2016 related to its oil and natural gas properties.