XML 24 R13.htm IDEA: XBRL DOCUMENT v3.24.3
Reportable Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Reportable Segment Information Reportable Segment Information
The Company currently has three operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), wireline and cementing. These operating segments represent how the CODM evaluates performance and allocates resources.
Prior to the fourth quarter of fiscal year 2023, our operating segments met the aggregation criteria in accordance with ASC 280—Segment Reporting and were aggregated into the “Completion Services” reportable segment. Effective as of the fourth quarter of fiscal year 2023, we revised our segment reporting as we determined that our three operating segments no longer met the criteria to be aggregated. Our Hydraulic Fracturing and Wireline operating segments meet the criteria of a reportable segment. Our cementing segment does not meet the reportable segment criteria and is included within the “All Other” category. Additionally, our corporate administrative activities do not involve business activities from which it may earn revenues and its results are not regularly reviewed by the Company’s CODM when making key operating and resource decisions. As a result, corporate administrative expenses and inter-segment revenue have been included under “Reconciling Items.” Prior period segment information has been revised to conform to our current presentation.
The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense, other income or expense, gain or loss on disposal of assets and other unusual or nonrecurring expenses or income such as impairment charges, retention bonuses, severance, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements).
The following tables set forth certain financial information with respect to the Company’s reportable segments; inter-segment revenues are shown under "Reconciling Items" (in thousands):
Three Months Ended September 30, 2024
Hydraulic FracturingWirelineAll OtherReconciling ItemsTotal
Service revenue$274,138 $47,958 $38,920 $(148)$360,868 
Adjusted EBITDA for reportable segments$66,166 $9,194 $8,989 $— $84,349 
Depreciation and amortization$46,752 $5,260 $2,264 $23 $54,299 
Impairment expense (1)
$188,601 $— $— $— $188,601 
Capital expenditures incurred$33,465 $1,757 $1,575 $38 $36,835 
Goodwill$3,130 $23,624 $— $— $26,754 
Total assets September 30, 2024$953,914 $197,599 $75,259 $53,438 $1,280,210 
Three Months Ended September 30, 2023
Hydraulic FracturingWirelineAll OtherReconciling ItemsTotal
Service revenue$340,089 $52,775 $30,940 $— $423,804 
Adjusted EBITDA for reportable segments$99,586 $14,011 $6,375 $— $119,972 
Depreciation and amortization (2)
$39,098 $4,860 $1,363 $40 $45,361 
Capital expenditures incurred$52,713 $5,488 $880 $— $59,081 
Goodwill$— $23,624 $— $— $23,624 
Total assets at December 31, 2023$1,189,526 $198,957 $78,475 $13,354 $1,480,312 
Nine Months Ended September 30, 2024
Hydraulic FracturingWirelineAll OtherReconciling ItemsTotal
Service revenue$855,066 $157,966 $110,935 $(235)$1,123,732 
Adjusted EBITDA for reportable segments$215,995 $36,687 $20,433 $— $273,115 
Depreciation and amortization$141,828 $15,304 $6,813 $82 $164,027 
Impairment expense (1)
$188,601 $— $— $— $188,601 
Capital expenditures incurred$95,084 $6,086 $7,417 $38 $108,625 
Goodwill$3,130 $23,624 $— $— $26,754 
Total assets at September 30, 2024$953,914 $197,599 $75,259 $53,438 $1,280,210 
Nine Months Ended September 30, 2023
Hydraulic FracturingWirelineAll OtherReconciling ItemsTotal
Service revenue$1,018,074 $179,182 $85,367 $— $1,282,623 
Adjusted EBITDA for reportable segments$308,448 $50,667 $16,861 $— $375,976 
Depreciation and amortization (2)
$106,587 $13,862 $4,104 $196 $124,749 
Capital expenditures incurred$256,350 $10,887 $4,247 $— $271,484 
Goodwill$— $23,624 $— $— $23,624 
Total assets at December 31, 2023$1,189,526 $198,957 $78,475 $13,354 $1,480,312 
(1)Represents noncash impairment expense on our Tier II Units.
(2)The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amounts of $8.4 million and $32.7 million from depreciation to loss on disposal of assets for the three and nine months ended September 30, 2023, respectively.
A reconciliation from reportable segment level financial information to the condensed consolidated statement of operations is provided in the table below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Service Revenue
Hydraulic Fracturing$274,138 $340,089 $855,066 $1,018,074 
Wireline47,958 52,775 157,966 179,182 
All Other38,920 30,940 110,935 85,367 
Total service revenue for reportable segments361,016 423,804 1,123,967 1,282,623 
Elimination of inter-segment service revenue(148)— (235)— 
Total consolidated service revenue$360,868 $423,804 $1,123,732 $1,282,623 
Adjusted EBITDA
Hydraulic Fracturing$66,166 $99,586 $215,995 $308,448 
Wireline9,194 14,011 36,687 50,667 
All Other8,989 6,375 20,433 16,861 
Total Adjusted EBITDA for reportable segments84,349 119,972 273,115 375,976 
Unallocated corporate administrative expenses(13,219)(12,258)(42,529)(36,284)
Depreciation and amortization (1)
(54,299)(45,361)(164,027)(124,749)
Impairment expense (2)
(188,601)— (188,601)— 
Interest expense(1,939)(1,169)(5,933)(3,016)
Income tax benefit (expense)41,365 (10,644)28,041 (31,118)
Loss on disposal of assets (1)
(2,149)(12,673)(11,884)(62,117)
Stock-based compensation(4,615)(3,310)(12,975)(10,604)
Other income (expense), net (3)
3,599 1,883 7,408 (1,749)
Other general and administrative expense, net(346)(450)(1,517)(1,659)
Retention bonus and severance expense(1,212)(1,237)(1,895)(1,937)
Net (loss) income$(137,067)$34,753 $(120,797)$102,743 
(1)The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amounts of $8.4 million and $32.7 million from depreciation to loss on disposal of assets for the three and nine months ended September 30, 2023, respectively.
(2)Represents noncash impairment expense on our Tier II Units.
(3)Other income for the three months ended September 30, 2024 is primarily comprised of tax refunds totaling $1.8 million and a $1.8 million decrease in the estimated fair value of the contingent consideration payable on our acquisition of AquaProp. Other income for the nine months ended September 30, 2024 is primarily comprised of tax refunds totaling $3.6 million, insurance reimbursements of $2.0 million and a $1.8 million decrease in the estimated fair value of the contingent consideration payable on our acquisition of AquaProp. Other income for the three months ended September 30, 2023 is primarily comprised of a $1.8 million unrealized gain on short-term investment. Other expense for the nine months ended September 30, 2023 is primarily comprised of a $2.1 million unrealized loss on short-term investment.