XML 38 R27.htm IDEA: XBRL DOCUMENT v3.24.0.1
Business Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments

17. Business Segments

 

Effective as of the third quarter of 2023, we revised our reportable segments to align with certain changes in how our CODM manages and allocates resources to our business as a result of the Ulterra acquisition and NexTier merger. Accordingly, we now have the following reportable business segments: (i) drilling services, (ii) completion services, and (iii) drilling products. As a result of the revised reportable segment structure, we have restated the corresponding items of segment information for all periods presented.

 

Drilling Services — represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses.

 

Completion Services — represents the combination of our well completion business, which includes hydraulic fracturing, wireline and pumping, completion support, cementing and our legacy pressure pumping business.

 

Drilling Products — represents our manufacturing and distribution of drill bits business, which was acquired with our acquisition of Ulterra on August 14, 2023.

Property and equipment, net and revenue for our domestic and international operations for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):

 

 

Year Ended December 31,

 

 

2023

 

 

2022

 

 

2021

 

Property and equipment, net:

 

 

 

 

 

 

 

 

 

United States

 

$

3,257,937

 

 

$

2,213,242

 

 

$

2,292,448

 

Colombia

 

 

48,434

 

 

 

47,334

 

 

 

39,307

 

International (Excluding Colombia)

 

 

34,041

 

 

 

—

 

 

 

—

 

Property and equipment, net

 

$

3,340,412

 

 

$

2,260,576

 

 

$

2,331,755

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

United States

 

$

4,057,212

 

 

$

2,577,471

 

 

$

1,341,330

 

Colombia

 

 

50,692

 

 

 

70,121

 

 

 

15,751

 

International (Excluding Colombia)

 

 

38,552

 

 

 

—

 

 

 

—

 

Total revenues

 

$

4,146,456

 

 

$

2,647,592

 

 

$

1,357,081

 

Major Customer — During 2023, one customer accounted for approximately $588 million or 14% of our consolidated operating revenues. These revenues were earned in the drilling services, completion services, and drilling products businesses. During 2022, one customer accounted for approximately $476 million or 18% of our consolidated operating revenues. These revenues were earned in both drilling services and completion services businesses. During 2021, one customer accounted for approximately $216 million or 16% of our consolidated operating revenues. These revenues were earned in both drilling services and completion services businesses.

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

 

 

Year Ended December 31,

 

 

2023

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

Drilling Services

 

$

1,976,401

 

 

$

1,581,380

 

 

$

805,295

 

Completion Services

 

 

2,017,440

 

 

 

1,022,413

 

 

 

523,756

 

Drilling Products

 

 

134,679

 

 

 

—

 

 

 

—

 

Other (1)

 

 

79,058

 

 

 

81,966

 

 

 

49,703

 

Elimination of intercompany revenues - Drilling Services (2)

 

 

(56,642

)

 

 

(36,560

)

 

 

(21,077

)

Elimination of intercompany revenues - Other (2)

 

 

(4,480

)

 

 

(1,607

)

 

 

(596

)

Total revenues

 

$

4,146,456

 

 

$

2,647,592

 

 

$

1,357,081

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss) (3) and reconciliation to income (loss) before income taxes:

 

Drilling Services

 

$

422,002

 

 

$

149,807

 

 

$

(465,053

)

Completion Services

 

 

140,220

 

 

 

134,103

 

 

 

(118,863

)

Drilling Products

 

 

(6,501

)

 

 

—

 

 

 

—

 

Total segment operating income (loss) (3)

 

 

555,721

 

 

 

283,910

 

 

 

(583,916

)

Other

 

 

2,829

 

 

 

13,776

 

 

 

(3,182

)

Corporate

 

 

(205,754

)

 

 

(86,655

)

 

 

(92,152

)

Credit loss expense

 

 

(842

)

 

 

—

 

 

 

1,500

 

Interest income

 

 

6,122

 

 

 

360

 

 

 

222

 

Interest expense

 

 

(52,870

)

 

 

(40,256

)

 

 

(41,978

)

Other

 

 

1,898

 

 

 

(3,273

)

 

 

(275

)

Income (loss) before income taxes

 

$

307,104

 

 

$

167,862

 

 

$

(719,781

)

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and impairment:

 

 

 

 

 

 

 

 

 

Drilling Services

 

$

364,312

 

 

$

354,116

 

 

$

660,402

 

Completion Services

 

 

283,230

 

 

 

98,162

 

 

 

159,305

 

Drilling Products

 

 

48,467

 

 

 

—

 

 

 

—

 

Other

 

 

28,237

 

 

 

26,496

 

 

 

23,612

 

Corporate

 

 

7,170

 

 

 

5,171

 

 

 

5,859

 

Total depreciation, depletion, amortization and impairment

 

$

731,416

 

 

$

483,945

 

 

$

849,178

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

Drilling Services

 

$

334,780

 

 

$

272,521

 

 

$

118,496

 

Completion Services

 

 

214,746

 

 

 

137,935

 

 

 

34,676

 

Drilling Products

 

 

24,572

 

 

 

—

 

 

 

—

 

Other

 

 

24,645

 

 

 

25,215

 

 

 

11,627

 

Corporate

 

 

16,947

 

 

 

1,126

 

 

 

1,521

 

Total capital expenditures

 

$

615,690

 

 

$

436,797

 

 

$

166,320

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

Drilling Services

 

$

2,368,604

 

 

$

2,348,177

 

 

$

2,279,952

 

Completion Services

 

 

3,835,699

 

 

 

541,975

 

 

 

458,202

 

Drilling Products

 

 

1,011,870

 

 

 

—

 

 

 

—

 

Other

 

 

59,221

 

 

 

64,018

 

 

 

62,766

 

Corporate (4)

 

 

144,637

 

 

 

189,653

 

 

 

156,928

 

Total assets

 

$

7,420,031

 

 

$

3,143,823

 

 

$

2,957,848

 

(1)
Other includes our oilfield rentals business and oil and natural gas working interests.
(2)
Intercompany revenues consist of revenues from drilling services provided to our other operations, and revenues from other operations for services provided to drilling services, completion services and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation.
(3)
Segment operating income (loss) is our measure of segment profitability. It is defined as revenue less operating expenses, selling, general and administrative expenses, depreciation, amortization and impairment expenses and other operating income (loss).
(4)
Corporate assets primarily include cash on hand and certain property and equipment.