XML 40 R26.htm IDEA: XBRL DOCUMENT v3.20.4
Business Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segments

17. Business Segments

At December 31, 2020, we 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 our 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 — We market our contract drilling services to major and independent oil and natural gas operators. As of December 31, 2020, we had 210 marketed land-based drilling rigs in the continental United States.

Given our longer-term outlook for the western Canadian market, we elected to close our Canadian drilling operations during the second quarter of 2020. As a result, we recognized an impairment charge of $8.3 million related to the closure. For the years ended December 31, 2020, 2019 and, 2018, contract drilling revenue earned in Canada was $1.0 million, $4.7 million and $9.3 million, respectively. Additionally, long-lived assets within the contract drilling segment located in Canada totaled $8.2 million and $20.1 million as of December 31, 2020 and 2019, respectively.

Pressure Pumping — We provide pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian region. 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. We also provide cementing services through our 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 — We provide 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 2020, 2019 and 2018, no single customer accounted for more than 10% of our consolidated operating revenues.

 

The following tables summarize selected financial information relating to our business segments (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

670,357

 

 

$

1,309,988

 

 

$

1,432,012

 

Pressure pumping

 

 

336,111

 

 

 

868,694

 

 

 

1,573,396

 

Directional drilling

 

 

73,356

 

 

 

188,786

 

 

 

209,275

 

Other operations (1)

 

 

57,962

 

 

 

122,885

 

 

 

131,028

 

Elimination of intercompany revenues - Contract drilling (2)

 

 

(1,231

)

 

 

(1,638

)

 

 

(1,520

)

Elimination of intercompany revenues - Other operations (2)

 

 

(12,306

)

 

 

(18,030

)

 

 

(17,194

)

Total revenues

 

$

1,124,249

 

 

$

2,470,685

 

 

$

3,326,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

(543,438

)

 

$

(151,329

)

 

$

(33,115

)

Pressure pumping

 

 

(166,666

)

 

 

(102,701

)

 

 

(77,328

)

Directional drilling

 

 

(40,612

)

 

 

(52,724

)

 

 

(117,497

)

Other operations

 

 

(41,685

)

 

 

(54,725

)

 

 

(18,221

)

Corporate

 

 

(94,251

)

 

 

(94,414

)

 

 

(76,016

)

Credit loss expense

 

 

(5,606

)

 

 

(5,683

)

 

 

—

 

Interest income

 

 

1,254

 

 

 

6,013

 

 

 

5,597

 

Interest expense

 

 

(40,770

)

 

 

(75,204

)

 

 

(51,578

)

Other

 

 

756

 

 

 

389

 

 

 

750

 

Loss before income taxes

 

$

(931,018

)

 

$

(530,378

)

 

$

(367,408

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and impairment:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

433,771

 

 

$

668,007

 

 

$

571,607

 

Pressure pumping

 

 

152,630

 

 

 

233,952

 

 

 

250,010

 

Directional drilling

 

 

36,504

 

 

 

52,223

 

 

 

45,317

 

Other operations

 

 

41,511

 

 

 

42,803

 

 

 

41,512

 

Corporate

 

 

6,494

 

 

 

6,888

 

 

 

7,872

 

Total depreciation, depletion, amortization and impairment

 

$

670,910

 

 

$

1,003,873

 

 

$

916,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

105,037

 

 

$

194,416

 

 

$

394,595

 

Pressure pumping

 

 

21,678

 

 

 

105,803

 

 

 

173,848

 

Directional drilling

 

 

4,681

 

 

 

15,549

 

 

 

35,929

 

Other operations

 

 

12,378

 

 

 

27,132

 

 

 

34,660

 

Corporate

 

 

1,707

 

 

 

4,612

 

 

 

2,426

 

Total capital expenditures

 

$

145,481

 

 

$

347,512

 

 

$

641,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

2,315,318

 

 

$

3,190,463

 

 

$

3,817,638

 

Pressure pumping

 

 

486,702

 

 

 

695,570

 

 

 

921,237

 

Directional drilling

 

 

107,807

 

 

 

164,273

 

 

 

239,341

 

Other operations

 

 

88,676

 

 

 

128,290

 

 

 

177,374

 

Corporate (3)

 

 

300,566

 

 

 

261,019

 

 

 

314,276

 

Total assets

 

$

3,299,069

 

 

$

4,439,615

 

 

$

5,469,866

 

 

(1)

Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests.

(2)

Intercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation.

(3)

Corporate assets primarily include cash on hand and certain property and equipment.