XML 70 R25.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Business Segments | 12 Months Ended
--- | ---
Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segments | 16. Business Segments At December 31, 2019, the Company had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business and has a separate management team that reports to the Company’s chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. Contract Drilling — The Company markets its contract drilling services to major and independent oil and natural gas operators. As of December 31, 2019, the Company had 216 marketed land-based drilling rigs in the continental United States and western Canada. For the years ended December 31, 2019, 2018 and, 2017, contract drilling revenue earned in Canada was $4.7 million, $9.3 million and $13.7 million, respectively. Additionally, long-lived assets within the contract drilling segment located in Canada totaled $20.1 million and $26.2 million as of December 31, 2019 and 2018, respectively. Pressure Pumping — The Company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Mid-Continent and Appalachian regions. Substantially all of the revenue in the pressure pumping segment is from well stimulation services (such as hydraulic fracturing) for the completion of new wells and remedial work on existing wells. Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well. The Company also provides wireline and cementing services through its pressure pumping segment. Cementing is the process of inserting material between the wall of the well bore and the casing to support and stabilize the casing. Directional Drilling — The Company provides a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States. Substantially all of the revenue in the directional drilling segment is from directional drilling, downhole performance motors and measurement-while-drilling services, which are sold as a bundle. Major Customer — During 2019, 2018 and 2017, no single customer accounted for more than 10% of the Company’s consolidated operating revenues. The following tables summarize selected financial information relating to the Company’s business segments (in thousands):
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 1,309,988 |  |  | $ | 1,432,012 |  |  | $ | 1,041,492 |
Pressure pumping |  |  | 868,694 |  |  |  | 1,573,396 |  |  |  | 1,200,311 |
Directional drilling |  |  | 188,786 |  |  |  | 209,275 |  |  |  | 45,580 |
Other operations (1) |  |  | 122,885 |  |  |  | 131,028 |  |  |  | 76,781 |
Elimination of intercompany revenues (2) |  |  | (19,668 | ) |  |  | (18,714 | ) |  |  | (7,480 | )
Total revenues |  | $ | 2,470,685 |  |  | $ | 3,326,997 |  |  | $ | 2,356,684 |
Income (loss) before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | (151,329 | ) |  | $ | (33,115 | ) |  | $ | (171,897 | )
Pressure pumping |  |  | (102,701 | ) |  |  | (77,328 | ) |  |  | 21,028 |
Directional drilling |  |  | (52,724 | ) |  |  | (117,497 | ) |  |  | (21 | )
Other operations |  |  | (54,725 | ) |  |  | (18,221 | ) |  |  | (20,813 | )
Corporate |  |  | (96,719 | ) |  |  | (93,585 | ) |  |  | (152,792 | )
Other operating income, net (3) |  |  | 2,305 |  |  |  | 17,569 |  |  |  | 31,957 |
Provision for bad debts |  |  | (5,683 | ) |  |  | — |  |  |  | — |
Interest income |  |  | 6,013 |  |  |  | 5,597 |  |  |  | 1,866 |
Interest expense |  |  | (75,204 | ) |  |  | (51,578 | ) |  |  | (37,472 | )
Other |  |  | 389 |  |  |  | 750 |  |  |  | 343 |
Loss before income taxes |  | $ | (530,378 | ) |  | $ | (367,408 | ) |  | $ | (327,801 | )
Depreciation, depletion, amortization and impairment: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 668,007 |  |  | $ | 571,607 |  |  | $ | 538,891 |
Pressure pumping |  |  | 233,952 |  |  |  | 250,010 |  |  |  | 198,006 |
Directional drilling |  |  | 52,223 |  |  |  | 45,317 |  |  |  | 9,347 |
Other operations |  |  | 42,803 |  |  |  | 41,512 |  |  |  | 29,402 |
Corporate |  |  | 6,888 |  |  |  | 7,872 |  |  |  | 7,695 |
Total depreciation, depletion, amortization and impairment |  | $ | 1,003,873 |  |  | $ | 916,318 |  |  | $ | 783,341 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 194,416 |  |  | $ | 394,595 |  |  | $ | 354,425 |
Pressure pumping |  |  | 105,803 |  |  |  | 173,848 |  |  |  | 171,436 |
Directional drilling |  |  | 15,549 |  |  |  | 35,929 |  |  |  | 7,795 |
Other operations |  |  | 27,132 |  |  |  | 34,660 |  |  |  | 31,547 |
Corporate |  |  | 4,612 |  |  |  | 2,426 |  |  |  | 1,884 |
Total capital expenditures |  | $ | 347,512 |  |  | $ | 641,458 |  |  | $ | 567,087 |
Identifiable assets: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 3,190,463 |  |  | $ | 3,817,638 |  |  | $ | 3,931,994 |
Pressure pumping |  |  | 695,570 |  |  |  | 921,237 |  |  |  | 1,209,424 |
Directional drilling |  |  | 164,273 |  |  |  | 239,341 |  |  |  | 301,275 |
Other operations |  |  | 128,290 |  |  |  | 177,374 |  |  |  | 172,094 |
Corporate (4) |  |  | 261,019 |  |  |  | 314,276 |  |  |  | 144,069 |
Total assets |  | $ | 4,439,615 |  |  | $ | 5,469,866 |  |  | $ | 5,758,856 |
(1) | Other operations includes the Company’s oilfield rentals business, drilling equipment service business, the electrical controls and automation business, the oil and natural gas working interests and Middle East organizational activities.
(2) | Intercompany revenues consists of contract drilling and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations.
(3) | Other operating income, net includes net gains associated with the disposal of assets related to corporate strategy decisions of the executive management group. Accordingly, the related gains have been excluded from the operating results of specific segments. This caption also includes certain legal-related expenses and settlements, net of insurance reimbursements and certain research and development expenses.
(4) | Corporate assets primarily include cash on hand and certain property and equipment.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration