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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
    Reporting Segments

We are comprised of three reportable segments: Tubular Running Services (“TRS”) segment, Tubulars segment and Cementing Equipment (“CE”) segment.

The TRS segment provides tubular running services globally. Internationally, the TRS segment operates in the majority of the offshore oil and gas markets and also in several onshore regions with operations in approximately 40 countries on six continents. In the U.S., the TRS segment provides services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, and in the U.S. Gulf of Mexico. Our customers are primarily large exploration and production companies, including international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies.

The Tubulars segment designs, manufactures and distributes connectors and casing attachments for large outside diameter (“OD”) heavy wall pipe. Additionally, the Tubulars segment sells large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provides specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specializes in the development, manufacture
and supply of proprietary drilling tool solutions that focus on improving drilling productivity through eliminating or mitigating traditional drilling operational risks.

The CE segment provides specialty equipment to enhance the safety and efficiency of rig operations. It provides specialized equipment, services and products utilized in the construction, completion and abandonment of the wellbore in both onshore and offshore environments. The product portfolio includes casing accessories that serve to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. Abandonment solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore, hydraulic fracturing and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite.

    Revenue

We disaggregate our revenue from contracts with customers by geography for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Intersegment revenue is immaterial.

The following tables presents our revenue disaggregated by geography, based on the location where our services were provided and products sold (in thousands):
Year Ended December 31, 2020
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$84,192 $34,318 $36,731 $155,241 
International185,519 19,350 30,248 235,117 
Total Revenue$269,711 $53,668 $66,979 $390,358 
Year Ended December 31, 2019
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$147,547 $63,087 $82,538 $293,172 
International252,780 11,600 22,368 286,748 
Total Revenue$400,327 $74,687 $104,906 $579,920 
Year Ended December 31, 2018
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$142,262 $66,017 $72,316 $280,595 
International218,783 6,286 16,829 241,898 
Total Revenue$361,045 $72,303 $89,145 $522,493 
    
Revenue by geographic area was as follows (in thousands):
Year Ended
December 31,
202020192018
United States$155,241 $293,172 $280,595 
Europe/Middle East/Africa101,693 155,278 127,968 
Latin America87,517 72,720 46,553 
Asia Pacific34,094 35,909 35,327 
Other countries11,813 22,841 32,050 
Total Revenue$390,358 $579,920 $522,493 

    We are a Netherlands based company and we derive our revenue from services and product sales to clients primarily in the oil and gas industry. One customer accounted for 13% of our revenue for the year ended December 31, 2020. All three of our segments generated revenue from this customer. No single customer accounted for more than 10% of our revenue for the years ended December 31, 2019 and 2018.

    The revenue generated in the Netherlands was immaterial for the years ended December 31, 2020, 2019 and 2018. Other than the United States, no individual country represented more than 10% of our revenue for the years ended December 31, 2020, 2019 and 2018.

    Adjusted EBITDA

    We define Adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, unrealized and realized gain or loss, the effects of the TRA, other non-cash adjustments and other charges or credits. We review Adjusted EBITDA on both a consolidated basis and on a segment basis. We use Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP.

    Our chief operating decision maker (“CODM”) uses Adjusted EBITDA as the primary measure of segment reporting performance.
    The following table presents a reconciliation of Segment Adjusted EBITDA to net loss (in thousands):
Year Ended December 31,
202020192018
Segment Adjusted EBITDA:
Tubular Running Services$22,171 $85,601 $62,515 
Tubulars7,765 11,575 11,246 
Cementing Equipment10,780 14,089 8,617 
Corporate (1)
(31,720)(53,744)(49,146)
Total8,996 57,521 33,232 
Goodwill impairment(57,146)(111,108)— 
Severance and other (charges) credits, net
(33,023)(50,430)310 
Interest income, net712 2,265 4,243 
Income tax benefit (expense)4,081 (23,794)2,950 
Depreciation and amortization
(70,169)(92,800)(111,292)
Gain (loss) on disposal of assets1,424 (1,037)1,309 
Foreign currency loss(211)(2,233)(5,675)
TRA related adjustments (2)
— 220 (1,359)
Charges and credits (3)
(10,884)(13,933)(14,451)
Net loss$(156,220)$(235,329)$(90,733)
(1)    Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.
(2)    Please see Note 11—Related Party Transactions for further discussion.
(3)    Comprised of Equity-based compensation expense (2020: $11,010; 2019: $11,280; 2018: $10,621), Mergers and acquisition expense (2020: none; 2019: none; 2018: $58), Unrealized and realized gains (2020: $1,378; 2019: $228; 2018: $1,682), Investigation-related matters (2020: $1,868; 2019: $3,838; 2018: $5,454) and Other adjustments (2020: $616; 2019: $957; 2018: none).
    The following table sets forth certain financial information with respect to our reportable segments (in thousands):
Tubular Running ServicesTubularsCementing EquipmentCorporateTotal
Year Ended December 31, 2020
Revenue from external customers
$269,711 $53,668 $66,979 $— $390,358 
Operating income (loss)(39,470)3,223 (76,591)(50,054)(162,892)
Adjusted EBITDA22,171 7,765 10,780 (31,720)*
Depreciation and amortization51,528 3,526 9,011 6,104 70,169 
Purchases of property, plant and equipment and intangibles16,049 3,132 6,327 2,965 28,473 
Year Ended December 31, 2019
Revenue from external customers
$400,327 $74,687 $104,906 $— $579,920 
Operating income (loss)(3,900)7,344 (124,597)(91,737)(212,890)
Adjusted EBITDA85,601 11,575 14,089 (53,744)*
Depreciation and amortization61,036 2,903 16,130 12,731 92,800 
Purchases of property, plant and equipment and intangibles16,086 2,859 16,374 1,623 36,942 
Year Ended December 31, 2018
Revenue from external customers
$361,045 $72,303 $89,145 $— $522,493 
Operating loss(16,886)7,616 (9,313)(74,298)(92,881)
Adjusted EBITDA62,515 11,246 8,617 (49,146)*
Depreciation and amortization80,009 3,371 16,324 11,588 111,292 
Purchases of property, plant and equipment and intangibles7,824 1,838 7,583 39,226 56,471 
    * Non-GAAP financial measure not disclosed.    

    The CODM does not review total assets by segment as part of their review of segment results. The following table presents property, plant and equipment (“PP&E”) by segment.
December 31,
20202019
Long-Lived Assets (PP&E)
Tubular Running Services$90,955 $132,626 
Tubulars14,782 15,162 
Cementing Equipment23,441 34,184 
Corporate and shared assets143,529 146,460 
Total$272,707 $328,432 
December 31,
20202019
Long-Lived Assets (PP&E)
United States$162,032 $207,227 
International110,675 121,205 
$272,707 $328,432 
    Based on the unique nature of our operating structure, revenue generating assets are interchangeable between two categories: (i) offshore and (ii) onshore. In addition, some of the U.S. land onshore assets cannot be deployed into offshore markets, based upon certification. Such equipment does have application in certain international land markets. Long-lived assets in the Netherlands were insignificant in each of the years presented.