Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 26, 2021 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Commission File Number | 001-33666 | |
Entity Registrant Name | Archrock, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-3204509 | |
Entity Street Address | 9807 Katy Freeway | |
Entity Suite Number | Suite 100 | |
Entity City | Houston | |
Entity State | TX | |
Entity Postal Zip Code | 77024 | |
City Area Code | 281 | |
Local Phone Number | 836-8000 | |
Title of each class | Common stock, $0.01 par value per share | |
Trading Symbol | AROC | |
Name of exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 154,049,828 | |
Entity Central Index Key | 0001389050 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 3,488 | $ 1,097 |
Accounts receivable, trade, net of allowance | 108,936 | 104,425 |
Inventory | 66,630 | 63,670 |
Other current assets | 7,652 | 12,819 |
Total current assets | 186,706 | 182,011 |
Property, plant and equipment, net | 2,252,226 | 2,389,674 |
Operating lease ROU assets | 18,256 | 19,236 |
Intangible assets, net | 50,815 | 61,531 |
Contract costs, net | 24,375 | 29,216 |
Deferred tax assets | 48,227 | 56,934 |
Other assets | 27,502 | 30,084 |
Noncurrent assets associated with discontinued operations | 10,117 | 11,036 |
Total assets | 2,618,224 | 2,779,722 |
Current liabilities: | ||
Accounts payable, trade | 44,685 | 30,819 |
Accrued liabilities | 104,753 | 76,993 |
Deferred revenue | 3,985 | 3,880 |
Total current liabilities | 153,423 | 111,692 |
Long-term debt | 1,516,135 | 1,688,867 |
Operating lease liabilities | 16,454 | 16,925 |
Deferred tax liabilities | 801 | 725 |
Other liabilities | 19,496 | 18,088 |
Noncurrent liabilities associated with discontinued operations | 7,868 | 7,868 |
Total liabilities | 1,714,177 | 1,844,165 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued | ||
Common stock: $0.01 par value per share, 250,000,000 shares authorized, 161,459,405 and 160,014,960 shares issued, respectively | 1,614 | 1,600 |
Additional paid-in capital | 3,437,298 | 3,424,624 |
Accumulated other comprehensive loss | (2,028) | (5,006) |
Accumulated deficit | (2,446,755) | (2,401,988) |
Treasury stock: 7,402,188 and 7,052,769 common shares, at cost, respectively | (86,082) | (83,673) |
Total equity | 904,047 | 935,557 |
Total liabilities and equity | $ 2,618,224 | $ 2,779,722 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3,057 | $ 3,370 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 161,459,405 | 160,014,960 |
Treasury stock, common shares (in shares) | 7,402,188 | 7,052,769 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | $ 195,166 | $ 205,631 | $ 586,212 | $ 675,644 |
Total cost of sales (excluding depreciation and amortization) | 91,932 | 86,153 | 267,957 | 291,871 |
Selling, general and administrative | 28,839 | 18,681 | 80,000 | 78,052 |
Depreciation and amortization | 45,280 | 47,279 | 135,185 | 145,950 |
Long-lived and other asset impairment | 5,121 | 10,727 | 15,154 | 72,132 |
Goodwill impairment | 99,830 | |||
Restructuring charges | 313 | 2,900 | 1,953 | 7,036 |
Interest expense | 25,508 | 25,221 | 82,711 | 80,664 |
Debt extinguishment loss | 3,971 | |||
Gain on sale of assets, net | (15,393) | (9,146) | (29,549) | (11,073) |
Other (income) expense, net | 337 | (324) | (1,634) | (1,317) |
Income (loss) before income taxes | 13,229 | 24,140 | 34,435 | (91,472) |
Provision for (benefit from) income taxes | 3,925 | 5,808 | 12,210 | (18,236) |
Net income (loss) | $ 9,304 | $ 18,332 | $ 22,225 | $ (73,236) |
Basic net income (loss) per common share (in dollars per share) | $ 0.06 | $ 0.12 | $ 0.14 | $ (0.49) |
Diluted net income (loss) per common share (in dollars per share) | $ 0.06 | $ 0.12 | $ 0.14 | $ (0.49) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 152,158 | 150,974 | 151,615 | 150,730 |
Diluted (in shares) | 152,297 | 151,038 | 151,769 | 150,730 |
Contract Operations | ||||
Revenues | $ 158,911 | $ 175,223 | $ 488,810 | $ 570,146 |
Total cost of sales (excluding depreciation and amortization) | 61,280 | 60,444 | 184,032 | 202,485 |
Aftermarket Services | ||||
Revenues | 36,255 | 30,408 | 97,402 | 105,498 |
Total cost of sales (excluding depreciation and amortization) | $ 30,652 | $ 25,709 | $ 83,925 | $ 89,386 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income | ||||
Net income (loss) | $ 9,304 | $ 18,332 | $ 22,225 | $ (73,236) |
Other comprehensive income (loss), net of tax: | ||||
Interest rate swap gain (loss), net of reclassifications to earnings | 585 | 935 | 2,547 | (4,586) |
Amortization of dedesignated interest rate swaps | 431 | 431 | ||
Total other comprehensive income (loss), net of tax | 1,016 | 935 | 2,978 | (4,586) |
Comprehensive income (loss) | $ 10,320 | $ 19,267 | $ 25,203 | $ (77,822) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | Treasury Stock | ATM Agreement | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning balance at Dec. 31, 2019 | $ 1,587 | $ 3,412,509 | $ (1,387) | $ 166 | $ (2,244,877) | $ (81,869) | $ 166 | $ 1,085,963 | |
Stockholders' Equity, Beginning, shares at Dec. 31, 2019 | 158,636,918 | (6,702,602) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Treasury stock purchased | $ (1,794) | (1,794) | |||||||
Treasury stock purchased, shares | (235,079) | ||||||||
Cash dividends | (66,655) | (66,655) | |||||||
Shares issued under ESPP | $ 1 | 521 | 522 | ||||||
Shares issued under ESPP (in shares) | 140,606 | ||||||||
Stock-based compensation, net of forfeitures | $ 11 | 8,616 | 8,627 | ||||||
Stock-based compensation, net of forfeitures, shares | 1,193,832 | (64,483) | |||||||
Contribution from Exterran Corporation | 678 | 678 | |||||||
Comprehensive income (loss) | |||||||||
Net income (loss) | (73,236) | (73,236) | |||||||
Interest rate swap gain (loss), net of reclassifications to earnings | (4,586) | (4,586) | |||||||
Ending balance at Sep. 30, 2020 | $ 1,599 | 3,422,324 | (5,973) | (2,384,602) | $ (83,663) | 949,685 | |||
Stockholders' Equity, Ending, shares at Sep. 30, 2020 | 159,971,356 | (7,002,164) | |||||||
Beginning balance at Jun. 30, 2020 | $ 1,598 | 3,419,512 | (6,908) | (2,380,626) | $ (82,703) | 950,873 | |||
Stockholders' Equity, Beginning, shares at Jun. 30, 2020 | 159,810,336 | (6,860,984) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Treasury stock purchased | $ (960) | (960) | |||||||
Treasury stock purchased, shares | (138,922) | ||||||||
Cash dividends | (22,308) | (22,308) | |||||||
Shares issued under ESPP | 155 | 155 | |||||||
Shares issued under ESPP (in shares) | 30,351 | ||||||||
Stock-based compensation, net of forfeitures | $ 1 | 2,657 | 2,658 | ||||||
Stock-based compensation, net of forfeitures, shares | 130,669 | (2,258) | |||||||
Comprehensive income (loss) | |||||||||
Net income (loss) | 18,332 | 18,332 | |||||||
Interest rate swap gain (loss), net of reclassifications to earnings | 935 | 935 | |||||||
Ending balance at Sep. 30, 2020 | $ 1,599 | 3,422,324 | (5,973) | (2,384,602) | $ (83,663) | 949,685 | |||
Stockholders' Equity, Ending, shares at Sep. 30, 2020 | 159,971,356 | (7,002,164) | |||||||
Beginning balance at Dec. 31, 2020 | $ 1,600 | 3,424,624 | (5,006) | (2,401,988) | $ (83,673) | 935,557 | |||
Stockholders' Equity, Beginning, shares at Dec. 31, 2020 | 160,014,960 | (7,052,769) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Treasury stock purchased | $ (2,409) | (2,409) | |||||||
Treasury stock purchased, shares | (277,316) | ||||||||
Cash dividends | (66,992) | (66,992) | |||||||
Shares issued under ESPP | 546 | 546 | |||||||
Shares issued under ESPP (in shares) | 66,541 | ||||||||
Stock-based compensation, net of forfeitures | $ 10 | 8,731 | 8,741 | ||||||
Stock-based compensation, net of forfeitures, shares | 1,020,756 | (72,103) | |||||||
Net proceeds from issuance of common stock | $ 4 | 3,397 | 3,401 | ||||||
Net proceeds from issuance of common stock (in shares) | 357,148 | 357,148 | |||||||
Comprehensive income (loss) | |||||||||
Net income (loss) | 22,225 | 22,225 | |||||||
Interest rate swap gain (loss), net of reclassifications to earnings | 2,547 | 2,547 | |||||||
Amortization of dedesignated interest rate swaps | 431 | 431 | |||||||
Ending balance at Sep. 30, 2021 | $ 1,614 | 3,437,298 | (2,028) | (2,446,755) | $ (86,082) | 904,047 | |||
Stockholders' Equity, Ending, shares at Sep. 30, 2021 | 161,459,405 | (7,402,188) | |||||||
Beginning balance at Jun. 30, 2021 | $ 1,613 | 3,434,224 | (3,044) | (2,433,553) | $ (85,419) | 913,821 | |||
Stockholders' Equity, Beginning, shares at Jun. 30, 2021 | 161,339,554 | (7,278,449) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Treasury stock purchased | $ (663) | (663) | |||||||
Treasury stock purchased, shares | (92,540) | ||||||||
Cash dividends | (22,506) | (22,506) | |||||||
Shares issued under ESPP | 175 | 175 | |||||||
Shares issued under ESPP (in shares) | 22,425 | ||||||||
Stock-based compensation, net of forfeitures | $ 1 | 2,899 | 2,900 | ||||||
Stock-based compensation, net of forfeitures, shares | 97,426 | (31,199) | |||||||
Comprehensive income (loss) | |||||||||
Net income (loss) | 9,304 | 9,304 | |||||||
Interest rate swap gain (loss), net of reclassifications to earnings | 585 | 585 | |||||||
Amortization of dedesignated interest rate swaps | 431 | 431 | |||||||
Ending balance at Sep. 30, 2021 | $ 1,614 | $ 3,437,298 | $ (2,028) | $ (2,446,755) | $ (86,082) | $ 904,047 | |||
Stockholders' Equity, Ending, shares at Sep. 30, 2021 | 161,459,405 | (7,402,188) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity | |||||||||
Dividend declared per common stock (in dollars per share) | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.435 | $ 0.435 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 22,225 | $ (73,236) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 135,185 | 145,950 |
Long-lived and other asset impairment | 15,154 | 72,132 |
Goodwill impairment | 99,830 | |
Inventory write-downs | 621 | 915 |
Amortization of operating lease ROU assets | 2,922 | 2,555 |
Amortization of deferred financing costs | 8,839 | 4,179 |
Amortization of debt discount | 187 | |
Amortization of debt premium | (1,504) | |
Amortization of dedesignated interest rate swaps | 431 | |
Debt extinguishment loss | 3,971 | |
Interest rate swaps | 2,866 | 2,094 |
Stock-based compensation expense | 8,741 | 8,423 |
Non-cash restructuring charges | 1,660 | |
Provision for credit losses | 151 | 2,235 |
(Gain) loss on sale of assets, net | (10,604) | 1,402 |
Gain on sale of business | (18,945) | (12,475) |
Deferred income tax provision (benefit) | 11,778 | (18,288) |
Amortization of contract costs | 15,523 | 20,286 |
Deferred revenue recognized in earnings | (8,081) | (17,183) |
Change in assets and liabilities, net of acquisition: | ||
Accounts receivable, trade | (2,133) | 31,134 |
Inventory | (5,994) | 3,244 |
Other assets | 1,326 | (23,539) |
Contract costs, net | (11,481) | (10,390) |
Accounts payable and other liabilities | 33,626 | 10,679 |
Deferred revenue | 8,167 | 10,696 |
Other | (88) | 373 |
Net cash provided by operating activities | 208,725 | 266,834 |
Cash flows from investing activities: | ||
Capital expenditures | (70,881) | (130,343) |
Proceeds from sale of business | 83,075 | 32,914 |
Proceeds from sale of property, plant and equipment and other assets | 24,683 | 14,043 |
Proceeds from insurance and other settlements | 977 | 1,391 |
Net cash provided by (used in) investing activities | 37,854 | (81,995) |
Cash flows from financing activities: | ||
Borrowings of long-term debt | 522,751 | 871,500 |
Repayments of long-term debt | (695,751) | (988,500) |
Payments for debt issuance costs | (2,451) | (943) |
Payments for settlement of interest rate swaps that include financing elements | (3,283) | (1,856) |
Dividends paid to stockholders | (66,992) | (66,655) |
Net proceeds from issuance of common stock | 3,401 | |
Proceeds from stock issued under ESPP | 546 | 522 |
Purchases of treasury stock | (2,409) | (1,794) |
Contribution from Exterran Corporation | 678 | |
Net cash used in financing activities | (244,188) | (187,048) |
Net increase (decrease) in cash and cash equivalents | 2,391 | (2,209) |
Cash and cash equivalents, beginning of period | 1,097 | 3,685 |
Cash and cash equivalents, end of period | $ 3,488 | 1,476 |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Non-cash consideration received in July 2020 Disposition | $ 6,500 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Description of Business and Basis of Presentation | |
Organization and Basis of Presentation | 1. Description of Business and Basis of Presentation We are an energy infrastructure company with a pure-play focus on midstream natural gas compression. We are the leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment in the U.S. We operate in two business segments: contract operations and aftermarket services. Our predominant segment, contract operations, primarily includes designing, sourcing, owning, installing, operating, servicing, repairing and maintaining our owned fleet of natural gas compression equipment to provide natural gas compression services to our customers. In our aftermarket services business, we sell parts and components and provide operations, maintenance, overhaul and reconfiguration services to customers who own compression equipment. The accompanying unaudited condensed consolidated financial statements included herein have been prepared in accordance with GAAP and the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished reflects all normal recurring adjustments necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements presented in our 2020 Form 10-K, which contains a more comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Developments
Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2021 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | 2. Recent Accounting Developments Accounting Standards Updates Implemented Reference Rate Reform On June 10, 2021, we prospectively adopted ASU 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. Entities may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. On June 10, 2021, we amended one of our interest rate swap agreements and determined that the modifications meet the criteria for the optional expedients and exceptions, which allow us to forego dedesignation of the hedging relationship and to subsequently assess effectiveness on a qualitative basis. The adoption of ASU 2020-04 did not have a material impact on our consolidated financial statements. In the first quarter, we evaluated Amendment No. 3 to our Credit Facility and determined that ASU 2020-04 was not applicable. We will continue to assess any modifications to our interest rate swap and Credit Facility agreements during the effective period of this update and will apply the amendments as applicable. |
Business Transactions
Business Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Business Transactions | |
Business Transactions | 3. Business Transactions July 2021 Dispositions In July 2021, we completed sales of certain contract operations customer service agreements and approximately 575 compressors, comprising approximately 100,000 horsepower, used to provide compression services under those agreements, as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets based on a ratio of the horsepower sold relative to the total horsepower of the asset group. We received cash consideration of $60.3 million for the sales and recorded gains on the sales of $13.0 million in gain on sale of assets, net in our condensed consolidated statements of operations during the three and nine months ended September 30, 2021. Remaining cash consideration from the sales of $1.3 million is expected to be received in the fourth quarter of 2021. February 2021 Disposition In February 2021, we completed the sale of certain contract operations customer service agreements and approximately 300 compressors, comprising approximately 40,000 horsepower, used to provide compression services under those agreements as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets based on a ratio of the horsepower sold relative to the total horsepower of the asset group. We recorded a gain on the sale of $6.0 million in gain on sale of assets, net in our condensed consolidated statements of operations during the nine months ended September 30, 2021. July 2020 Disposition In July 2020, we completed the sale of the turbocharger business included within our aftermarket services segment . In connection with the sale, we entered into a supply agreement to purchase a minimum amount of turbocharger goods and services over a two-year term. In addition to cash of $9.5 million received upon closing, an additional $3.0 million was received on the first anniversary of the closing date in July 2021, and $3.5 million is being received through the purchase of turbocharger goods and services under the supply agreement. We received $2.5 million during the nine months ended September 30, 2021 and a total of $3.2 million since sale completion under the supply agreement. We recognized a gain on the sale of $9.3 million in gain on sale of assets, net in our condensed consolidated statements of operations during the three and nine months ended September 30, 2020. March 2020 Disposition In March 2020, we completed the sale of certain contract operations customer service agreements and approximately 200 compressors, comprising approximately 35,000 horsepower, used to provide compression services under those agreements as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets and goodwill based on a ratio of the horsepower sold relative to the total horsepower of the asset group. We recognized a gain on the sale of $3.2 million in gain on sale of assets, net in our condensed consolidated statements of operations during the nine months ended September 30, 2020. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations In 2015 we completed the Spin-off. In order to effect the Spin-off and govern our relationship with Exterran Corporation after the Spin-off, we entered into several agreements with Exterran Corporation, including a tax matters agreement, which governs the respective rights, responsibilities and obligations of Exterran Corporation and us with respect to certain tax matters. As of both September 30, 2021 and December 31, 2020, we had $7.9 million of unrecognized tax benefits (including interest and penalties) related to Exterran Corporation operations prior to the Spin-off recorded to noncurrent liabilities associated with discontinued operations in our condensed consolidated balance sheets. We had an offsetting indemnification asset of $7.9 million related to these unrecognized tax benefits recorded to noncurrent assets associated with discontinued operations as of both September 30, 2021 and December 31, 2020. The following table presents the balance sheets for our discontinued operations: (in thousands) September 30, 2021 December 31, 2020 Other assets $ 7,868 $ 7,868 Deferred tax assets 2,249 3,168 Total assets associated with discontinued operations $ 10,117 $ 11,036 Deferred tax liabilities $ 7,868 $ 7,868 Total liabilities associated with discontinued operations $ 7,868 $ 7,868 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory (in thousands) September 30, 2021 December 31, 2020 Parts and supplies $ 59,478 $ 57,433 Work in progress 7,152 6,237 Inventory $ 66,630 $ 63,670 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | 6. Property, Plant and Equipment, net (in thousands) September 30, 2021 December 31, 2020 Compression equipment, facilities and other fleet assets $ 3,269,801 $ 3,439,432 Land and buildings 43,373 45,167 Transportation and shop equipment 95,210 106,868 Computer hardware and software 84,733 84,680 Other 24,496 14,457 Property, plant and equipment 3,517,613 3,690,604 Accumulated depreciation (1,265,387) (1,300,930) Property, plant and equipment, net $ 2,252,226 $ 2,389,674 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill | |
Goodwill | 7. Goodwill Our goodwill was recognized in connection with the Elite Acquisition and represents the excess of consideration transferred over the fair value of the assets and liabilities acquired. All of the goodwill was allocated to our contract operations reporting unit. We review the carrying amount of our goodwill in the fourth quarter of every year, or whenever indicators of potential impairment exist, to determine if the carrying amount of our contract operations reporting unit exceeds its fair value, including the goodwill. Beginning in the first quarter of 2020, the COVID-19 pandemic caused a significant deterioration in global macroeconomic conditions, including a collapse in the demand for oil coupled with an oversupply of oil, which commenced substantial spending cuts by our customers and a decline in production. This global response to the pandemic significantly impacted our market capitalization and estimates of future revenues and cash flows, which triggered the need to perform a quantitative test of the fair value of our contract operations reporting unit as of March 31, 2020. The quantitative test determined that the carrying amount of our contract operations reporting unit exceeded its fair value and we recorded a goodwill impairment loss of $99.8 million during the first quarter of 2020. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions, which have a significant impact on the fair value determined. We determined the fair value of our reporting unit using an equal weighting of both the expected present value of future cash flows and a market approach. The present value of future cash flows was estimated using our most recent forecast and the weighted average cost of capital. The market approach uses a market multiple on the earnings before interest expense, provision for income taxes and depreciation and amortization expense of comparable peer companies. Significant estimates for our reporting unit included in our impairment analysis were our cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples. |
Hosting Arrangements
Hosting Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Hosting Arrangements | 8. Hosting Arrangements In the fourth quarter of 2018 we began a process and technology transformation project that will, among other things, upgrade or replace our existing ERP, supply chain and inventory management systems and expand the remote monitoring capabilities of our compression fleet. Included in this project are hosting arrangements that are service contracts related to the cloud migration of our ERP system and cloud services for our new mobile workforce, telematics and inventory management tools. As of September 30, 2021 and December 31, 2020, we had $10.8 million and $7.7 million, respectively, of capitalized implementation costs related to our hosting arrangements that are service contracts included in other assets in our condensed consolidated balance sheets. Accumulated amortization was $0.6 million and $0.3 million at September 30, 2021 and December 31, 2020, respectively. We recorded $0.1 million of amortization expense to SG&A in our condensed consolidated statements of operations during each of the three months ended September 30, 2021 and 2020, and $0.3 million and $0.2 million during the nine months ended September 30, 2021 and 2020, respectively. During the three and nine months ended September 30, 2020, we impaired $1.6 million of capitalized implementation costs related to the hosting arrangements of the mobile workforce component of our project due to the termination of the agreement, which was included in long-lived and other asset impairment in our condensed consolidated statements of operations. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt (in thousands) September 30, 2021 December 31, 2020 Credit Facility $ 220,000 $ 393,000 2028 Notes Principal 800,000 800,000 Debt premium, net of amortization 13,037 14,541 Deferred financing costs, net of amortization (10,821) (11,766) 802,216 802,775 2027 Notes Principal 500,000 500,000 Deferred financing costs, net of amortization (6,081) (6,908) 493,919 493,092 Long-term debt $ 1,516,135 $ 1,688,867 Credit Facility As of September 30, 2021, there were $12.5 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.4%. The weighted average annual interest rate on the outstanding balance under the Credit Facility, excluding the effect of interest rate swaps, was 2.6% and 2.7% at September 30, 2021 and December 31, 2020, respectively. We incurred $0.5 million and $0.4 million in commitment fees on the daily unused amount of the Credit Facility during the three months ended September 30, 2021 and 2020, respectively, and $1.5 million during each of the nine months ended September 30, 2021 and 2020. We must maintain certain consolidated financial ratios, as defined in our Credit Facility agreement. As of September 30, 2021, the ratio requirements did not constrain our undrawn capacity and as such, $517.5 million was available for additional borrowings. As of September 30, 2021, we were in compliance with all covenants under the Credit Facility agreement. Amendment No. 3 On February 22, 2021, we amended our Credit Facility to, among other things: ● reduce the aggregate revolving commitment from $1.25 billion to $750.0 million, and ● adjust the maximum Senior Secured Debt to EBITDA and Total Debt to EBITDA ratios, as defined in the Credit Facility agreement, to the following: Senior Secured Debt to EBITDA 3.00 to 1.0 Total Debt to EBITDA Through fiscal year 2022 5.75 to 1.0 January 1, 2023 through September 30, 2023 5.50 to 1.0 Thereafter (1) 5.25 to 1.0 (1) Subject to a temporary increase to 5.50 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter. We incurred $1.8 million in transaction costs related to Amendment No. 3, which were included in other assets in our condensed consolidated balance sheets and are being amortized over the remaining term of the Credit Facility. In addition, we wrote off $4.9 million of unamortized deferred financing costs as a result of the amendment, which was recorded to interest expense in our condensed consolidated statements of operations during the nine months ended September 30, 2021. 2022 Notes Redemption In April 2020, the 2022 Notes were redeemed at 100% of their $350.0 million aggregate principal amount plus accrued and unpaid interest of $10.5 million with borrowings under the Credit Facility. A debt extinguishment loss of $4.0 million related to the redemption was recognized during the nine months ended September 30, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | 10. Accumulated Other Comprehensive Loss Components of comprehensive income (loss) are net income (loss) and all changes in equity during a period except those resulting from transactions with owners. Our accumulated other comprehensive loss consists of changes in the fair value of our interest rate swap derivative instruments, net of tax. Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Beginning accumulated other comprehensive loss $ (3,044) $ (6,908) $ (5,006) $ (1,387) Other comprehensive income (loss), net of tax: Loss recognized in other comprehensive income (loss), net of tax benefit of $123, $18, $141 and $1,764, respectively (458) (69) (529) (6,635) Loss reclassified from accumulated other comprehensive loss to interest expense, net of tax benefit of $393, $267, $933 and $545, respectively 1,474 1,004 3,507 2,049 Total other comprehensive income (loss) 1,016 935 2,978 (4,586) Ending accumulated other comprehensive loss $ (2,028) $ (5,973) $ (2,028) $ (5,973) See Note 17 (“Derivatives”) for further details on our interest rate swap derivative instruments. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | 11. Equity At-the-Market Continuous Equity Offering Program On February 23, 2021, we entered into the ATM Agreement, pursuant to which we may offer and sell shares of our common stock from time to time for an aggregate offering price of up to $50.0 million. We intend to use the net proceeds of these offerings, after deducting sales agent fees and offering expenses, for general corporate purposes. Offerings of common stock pursuant to the ATM Agreement will terminate upon the earlier of (i) the sale of all shares of common stock subject to the ATM Agreement or (ii) the termination of the ATM Agreement by us or by each of the sales agents. Any sales agent may also terminate the ATM Agreement but only with respect to itself During the nine months ended September 30, 2021, we sold 357,148 shares of common stock for net proceeds of $3.4 million pursuant to the ATM Agreement. Cash Dividends The following table summarizes our dividends declared and paid in each of the quarterly periods of 2021 and 2020: Declared Dividends Dividends Paid per Common Share (in thousands) 2021 Q3 $ 0.145 $ 22,506 Q2 0.145 22,331 Q1 0.145 22,155 2020 Q4 $ 0.145 $ 22,177 Q3 0.145 22,308 Q2 0.145 22,176 Q1 0.145 22,171 On October 28, 2021, our Board of Directors declared a quarterly dividend of $0.145 per share of common stock to be paid on November 16, 2021 to stockholders of record at the close of business on November 9, 2021. |
Revenue from Contract with Cust
Revenue from Contract with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 12. Revenue from Contracts with Customers The following table presents our revenue from contracts with customers by segment (see Note 22 (“Segments”)) and disaggregated by revenue source: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Contract operations: 0 ― 1,000 horsepower per unit $ 41,576 $ 51,409 $ 134,413 $ 175,877 1,001 ― 1,500 horsepower per unit 66,138 73,205 201,454 236,083 Over 1,500 horsepower per unit 51,018 50,142 152,360 156,351 Other (1) 179 467 583 1,835 Total contract operations revenue (2) 158,911 175,223 488,810 570,146 Aftermarket services: Services 19,249 17,961 53,149 62,492 OTC parts and components sales 17,006 12,447 44,253 43,006 Total aftermarket services revenue (3) 36,255 30,408 97,402 105,498 Total revenue $ 195,166 $ 205,631 $ 586,212 $ 675,644 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $0.7 million and $1.4 million for the three months ended September 30, 2021 and 2020, respectively, and $3.1 million and $4.5 million for the nine months ended September 30, 2021 and 2020, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time. (3) All services revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time. Performance Obligations As of September 30, 2021, we had $268.2 million of remaining performance obligations related to our contract operations segment, which will be recognized through 2026 as follows: (in thousands) 2021 2022 2023 2024 2025 2026 Total Remaining performance obligations $ 1,093 $ 95,890 $ 128,521 $ 32,787 $ 9,148 $ 759 $ 268,198 We do not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services as there are no contracts with customers with an original contract term that is greater than one year. Contract Assets and Liabilities Contract Assets As of September 30, 2021 and December 31, 2020, our receivables from contracts with customers, net of allowance for credit losses, were $95.3 million and $95.6 million, respectively. Allowance for Credit Losses Trade accounts receivable are due from companies of varying size engaged principally in oil and natural gas activities throughout the U.S. We review the financial condition of customers prior to extending credit and generally do not obtain collateral for trade receivables. Payment terms are on a short-term basis and in accordance with industry practice. We consider this credit risk to be limited due to these companies’ financial resources, the nature of the products and services we provide and the terms of our customer agreements. Due to the short-term nature of our trade receivables, we consider the amortized cost to be the same as the carrying amount of the receivable, excluding the allowance for credit losses. We recognize an allowance for credit losses when a receivable is recorded, even when the risk of loss is remote. We utilize an aging schedule to determine our allowance for credit losses and measure expected credit losses on a collective (pool) basis when similar risk characteristics exist. We rely primarily on ratings assigned by external rating agencies and credit monitoring services to assess credit risk and aggregate customers first by low, medium or high risk asset pools, and then by delinquency status. We also consider the internal risk associated with geographic location and the services we provide to the customer when determining asset pools. If a customer does not share similar risk characteristics with other customers, we evaluate the customer’s outstanding trade receivables for expected credit losses on an individual basis. Trade receivables evaluated individually are not included in our collective assessment. Each reporting period, we reassess our customers’ risk profiles and determine the appropriate asset pool classification, or perform individual assessments of expected credit losses, based on the customers’ risk characteristics at the reporting date. The contractual life of our trade receivables is primarily 30 days based on the payment terms specified in the contract. Contract operations services are generally billed monthly at the beginning of the month in which service is being provided. Aftermarket services billings typically occur when parts are delivered or service is completed. Loss rates are separately determined for each asset pool based on the length of time a trade receivable has been outstanding. We analyze two years of internal historical loss data, including the effects of prepayments, write-offs and subsequent recoveries, to determine our historical loss experience. Our historical loss information is a relevant data point for estimating credit losses, as the data closely aligns with trade receivables due from our customers. Ratings assigned by external rating agencies and credit monitoring services consider past performance and forecasts of future economic conditions in assessing credit risk. We routinely update our historical loss data to reflect our customers’ current risk profile, to ensure the historical data and loss rates are relevant to the pool of assets for which we are estimating expected credit losses. Our allowance for credit losses balance changed as follows during the nine months ended September 30, 2021: (in thousands) Balance at December 31, 2020 $ 3,370 Provision for credit losses 151 Write-offs charged against allowance (464) Balance at September 30, 2021 $ 3,057 Contract Liabilities Freight billings to customers for the transport of compression assets, customer-specified modifications of compression assets and milestone billings on aftermarket services often result in a contract liability. Our contract liabilities were $4.6 million as of both September 30, 2021 and December 31, 2020, and were included in deferred revenue and other liabilities in our condensed consolidated balance sheets. During the nine months ended September 30, 2021, we deferred revenue of $8.2 million and recognized $8.1 million as revenue. The revenue recognized and deferred during the period primarily related to freight billings and milestone billings on aftermarket services. |
Long-Lived and Other Asset Impa
Long-Lived and Other Asset Impairment | 9 Months Ended |
Sep. 30, 2021 | |
Long-Lived and Other Asset Impairment | |
Long-Lived and Other Asset Impairment | 13. Long-Lived and Other Asset Impairment We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressors from our active fleet, indicate that the carrying amount of an asset may not be recoverable. In the first quarter of 2020, we determined that the impairment of our contract operations reporting unit’s goodwill was an indicator of potential impairment of the carrying amount of our long-lived assets, including our compressor fleet and associated customer and contract-based intangible assets. Accordingly, we performed a quantitative impairment test of our long-lived assets, by which we determined that they were not also impaired. No similar impairment has been indicated subsequent to the first quarter of 2020. Compression Fleet We periodically review the future deployment of our idle compression assets for units that are not of the type, configuration, condition, make or model that are cost efficient to maintain and operate. Based on these reviews, we determine that certain idle compressors should be retired from the active fleet. The retirement of these units from the active fleet triggers a review of these assets for impairment and as a result of our review, we may record an asset impairment to reduce the book value of each unit to its estimated fair value. The fair value of each unit is estimated based on the expected net sale proceeds compared to other fleet units we recently sold, a review of other units recently offered for sale by third parties or the estimated component value of the equipment we plan to use. In connection with our review of our idle compression assets, we evaluate for impairment idle units that were culled from our fleet in prior years and are available for sale. Based on that review, we may reduce the expected proceeds from disposition and record additional impairment to reduce the book value of each unit to its estimated fair value. The following table presents the results of our compression fleet impairment review as recorded to our contract operations segment: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Idle compressors retired from the active fleet 60 105 175 640 Horsepower of idle compressors retired from the active fleet 24,000 28,000 61,000 235,000 Impairment recorded on idle compressors retired from the active fleet $ 5,120 $ 8,137 $ 14,964 $ 69,542 Other Impairment During the three and nine months ended September 30, 2020, $1.7 million of capitalized implementation and unamortized prepaid costs related to the mobile workforce component of our multi-year process and technology transformation project was impaired. See Note 8 (“Hosting Arrangements”) for further details. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges | |
Restructuring Charges | 14. Restructuring Charges During the first quarter of 2020, we completed restructuring activities to further streamline our organization and more fully align our teams to improve our customer service and profitability. We incurred severance costs of $1.7 million related to these activities during the first quarter of 2020. No additional costs will be incurred for this organizational restructuring. In response to the decreased activity level of our customers that resulted from the COVID-19 pandemic beginning in the second quarter of 2020, we incurred severance costs of $7.0 million to right-size our business. No additional costs will be incurred under this restructuring plan. During the third quarter of 2020, a plan to dispose of certain non-core properties was approved by management. We have incurred $1.5 million of restructuring costs as a result of these property disposals and do not expect to incur additional material property disposal costs under this restructuring plan. During the third quarter of 2021, management approved and initiated a plan to exit a facility no longer deemed economical for our business. Closing costs incurred during the third quarter were not material, however, we expect to incur approximately $0.8 million to complete the exit of this facility in the fourth quarter of 2021. The severance and property disposal costs incurred under the above restructuring plans were recorded to restructuring charges in our condensed consolidated statements of operations. The following table presents restructuring charges incurred by segment: Contract Aftermarket (in thousands) Operations Services Other (1) Total Three months ended September 30, 2021 Pandemic restructuring $ — $ — $ 224 $ 224 Property restructuring - other exit costs — — 19 19 Other restructuring — — 70 70 Total restructuring charges $ — $ — $ 313 $ 313 Three months ended September 30, 2020 Organizational restructuring $ (20) $ — $ (13) $ (33) Pandemic restructuring 546 644 245 1,435 Property restructuring Loss on sale — — 915 915 Impairment loss — — 583 583 Total property restructuring — — 1,498 1,498 Total restructuring charges $ 526 $ 644 $ 1,730 $ 2,900 Nine months ended September 30, 2021 Pandemic restructuring $ 616 $ 145 $ 956 $ 1,717 Property restructuring Impairment loss — — 9 9 Other exit costs — — 26 26 Total property restructuring — — 35 35 Other restructuring — — 201 201 Total restructuring charges $ 616 $ 145 $ 1,192 $ 1,953 Nine months ended September 30, 2020 Organizational restructuring $ 458 $ 625 $ 612 $ 1,695 Pandemic restructuring 1,932 931 980 3,843 Property restructuring Loss on sale — — 915 915 Impairment loss — — 583 583 Total property restructuring — — 1,498 1,498 Total restructuring charges $ 2,390 $ 1,556 $ 3,090 $ 7,036 (1) Represents expense incurred within our corporate function and not directly attributable to our segments. The following table presents restructuring charges incurred by cost type: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Severance costs Organizational restructuring $ — $ (33) $ — $ 1,695 Pandemic restructuring 224 1,435 1,717 3,843 Total severance costs 224 1,402 1,717 5,538 Property disposal costs Loss on sale — 915 — 915 Impairment loss — 583 9 583 Other exit costs 19 — 26 — Total property disposal costs 19 1,498 35 1,498 Other restructuring costs 70 — 201 — Total restructuring charges $ 313 $ 2,900 $ 1,953 $ 7,036 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 15. Income Taxes Valuation Allowance The amount of our deferred tax assets considered realizable could be adjusted if projections of future taxable income are reduced or objective negative evidence in the form of a three-year cumulative loss is present or both. Should we no longer have a level of sustained profitability, excluding nonrecurring charges, we will have to rely more on our future projections of taxable income to determine if we have an adequate source of taxable income for the realization of our deferred tax assets, namely net operating loss carryforwards and tax credit carryforwards. This may result in the need to record a valuation allowance against all or a portion of our deferred tax assets. Effective Tax Rate The year-to-date effective tax rate for the nine months ended September 30, 2021 differed significantly from our statutory rate primarily due to unrecognized tax benefits and the limitation on executive compensation. Unrecognized Tax Benefits As of September 30, 2021, we believe it is reasonably possible that $2.8 million of our unrecognized tax benefits, including penalties, interest and discontinued operations, will be reduced prior to September 30, 2022 due to the settlement of audits or the expiration of statutes of limitations or both. However, due to the uncertain and complex application of the tax regulations, it is possible that the ultimate resolution of these matters may result in liabilities that could materially differ from this estimate. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. Earnings per Share Basic net income (loss) per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) per common share is determined by dividing net income (loss), after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and stock-settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, only distributed earnings (dividends) are allocated to participating securities, as participating securities do not have a contractual obligation to participate in our undistributed losses. Diluted net income (loss) per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options, performance-based restricted stock units and stock to be issued pursuant to our ESPP unless their effect would be anti-dilutive. The following table shows the calculation for net income (loss) attributable to common stockholders, which is used in the calculation of basic and diluted net income (loss) per common share: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Net income (loss) $ 9,304 $ 18,332 $ 22,225 $ (73,236) Less: Earnings attributable to participating securities (456) (439) (909) (1,083) Net income (loss) attributable to common stockholders $ 8,848 $ 17,893 $ 21,316 $ (74,319) The following table shows the potential shares of common stock that were included in computing diluted net income (loss) per common share: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Weighted average common shares outstanding including participating securities 154,041 152,973 153,422 152,790 Less: Weighted average participating securities outstanding (1,883) (1,999) (1,807) (2,060) Weighted average common shares outstanding used in basic net income (loss) per common share 152,158 150,974 151,615 150,730 Net dilutive potential common shares issuable: On exercise of options and vesting of performance-based restricted stock units 138 57 152 — On settlement of ESPP shares 1 7 2 — Weighted average common shares outstanding used in diluted net income (loss) per common share 152,297 151,038 151,769 150,730 The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income (loss) per common share as their inclusion would have been anti-dilutive: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 On exercise of options where exercise price is greater than average market value for the period 15 85 27 102 On exercise of options and vesting of performance-based restricted stock units — — — 57 On settlement of ESPP shares — — — 19 Net dilutive potential common shares issuable 15 85 27 178 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 17. Derivatives We are exposed to market risks associated with changes in the variable interest rate of our Credit Facility. We use derivative instruments to manage our exposure to fluctuations in this variable interest rate and thereby minimize the risks and costs associated with financial activities. We do not use derivative instruments for trading or other speculative purposes. As of September 30, 2021, we had $300.0 million notional value of interest rate swaps outstanding, which expire in March 2022 and were entered into to offset changes in expected cash flows due to fluctuations in the associated variable interest rates. The counterparties to these derivative agreements are major financial institutions. We monitor the credit quality of these financial institutions and do not expect nonperformance by any counterparty, although such nonperformance could have an adverse effect on us. We have no collateral posted for our derivative instruments. During the three months ended September 30, 2021, we dedesignated $125.0 million notional value of our interest rate swaps. The fair value of this interest rate swap immediately prior to dedesignation was a liability of $1.6 million. The associated amount in accumulated other comprehensive loss related to this interest rate swap is being amortized into interest expense over the remaining term of the swap through March 2022. Future changes in the fair value of the dedesignated interest rate swap will be recorded in interest expense. The remaining $175.0 million notional value of our interest rate swaps continue to be designated as cash flow hedging instruments. Changes in the fair value of cash flow hedging instruments are recognized as a component of other comprehensive income (loss) until the hedged transaction affects earnings. At that time, amounts are reclassified into earnings to interest expense, the same statement of operations line item to which the earnings effect of the hedged item is recorded. Cash flows from derivatives designated as hedges are classified in our condensed consolidated statements of cash flows under the same category as the cash flows from the underlying assets, liabilities or anticipated transactions unless the derivative contract contains a significant financing element, in which case, the cash settlements for these derivatives are classified as cash flows from financing activities. We expect the hedging relationship to be highly effective as the interest rate swap terms substantially coincide with the hedged item and are expected to offset changes in expected cash flows due to fluctuations in the variable rate. We estimate that $2.6 million of the deferred pre-tax loss attributable to interest rate swaps included in accumulated other comprehensive loss at September 30, 2021 will be reclassified into earnings as interest expense at then-current values during the next 12 months as the underlying hedged transactions occur. As of September 30, 2021, the weighted average effective fixed interest rate of our interest rate swaps was 1.8%. The following table presents the effect of our derivative instruments on our condensed consolidated balance sheets: (in thousands) September 30, 2021 December 31, 2020 Interest rate swaps designated as cash flow hedging instruments Accrued liabilities $ 1,502 $ 4,810 Other liabilities — 1,527 Total derivatives designated as cash flow hedging instruments 1,502 6,337 Interest rate swaps not designated as hedging instruments Accrued liabilities 1,079 — Total derivative liabilities $ 2,581 $ 6,337 The following table presents the effect of our derivative instruments on our condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Total amount of interest expense in which the effects of cash flow hedges and undesignated interest rate swaps are recorded $ 25,508 $ 25,221 $ 82,711 $ 80,664 Interest rate swaps designated as cash flow hedging instruments Pre-tax loss recognized in other comprehensive income (loss) $ (581) $ (87) $ (670) $ (8,399) Pre-tax loss reclassified from accumulated other comprehensive loss into interest expense (1,867) (1,271) (4,440) (2,594) Interest rate swaps not designated as hedging instruments Gain recognized in interest expense $ 532 $ — $ 532 $ — See Note 10 (“Accumulated Other Comprehensive Loss”) and Note 18 (“Fair Value Measurements”) for further details on our derivative instruments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis On a quarterly basis, our interest rate swap derivative instruments are valued based on the income approach (discounted cash flow) using market observable inputs, including LIBOR forward curves. These fair value measurements are classified as Level 2. The following table presents our derivative position measured at fair value on a recurring basis, with pricing levels as of the date of valuation: (in thousands) September 30, 2021 December 31, 2020 Derivative liabilities $ 2,581 $ 6,337 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Goodwill In the first quarter of 2020, we determined that the significant deterioration in global macroeconomic conditions caused by the COVID-19 pandemic was an indicator of potential impairment of our goodwill, and we performed a quantitative impairment test as of March 31, 2020 that resulted in a $99.8 million impairment of our goodwill. Significant estimates used in our impairment analysis included cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples, which are Level 3 inputs. See Note 7 (“Goodwill”) for further details of the valuation methodology used in connection with the goodwill impairment. Compressors During the nine months ended September 30, 2021, we recorded nonrecurring fair value measurements related to our idle and previously-culled compressors. Our estimate of the compressors’ fair value was primarily based on the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. We discounted the expected proceeds, net of selling and other carrying costs, using a weighted average disposal period of four years. These fair value measurements are classified as Level 3. The following table presents the fair value of our compressors impaired during 2021 and 2020: (in thousands) September 30, 2021 December 31, 2020 Impaired compressors $ 3,896 $ 19,046 The significant unobservable inputs used to develop the above fair value measurements were weighted by the relative fair value of the compressors being measured. Additional quantitative information related to our significant unobservable inputs follows: Range Weighted Average (1) Estimated net sale proceeds: As of September 30, 2021 $0 - $621 per horsepower $31 per horsepower As of December 31, 2020 $0 - $289 per horsepower $20 per horsepower (1) Calculated based on an estimated discount for market liquidity of 68% and 81% as of September 30, 2021 and December 31, 2020, respectively. See Note 13 (“Long-Lived and Other Asset Impairment”) for further details. Other Financial Instruments The carrying amounts of our cash, receivables and payables approximate fair value due to the short-term nature of those instruments. The carrying amount of borrowings outstanding under our Credit Facility approximates fair value due to its variable interest rate. The fair value of these outstanding borrowings is a Level 3 measurement. The fair value of our fixed rate debt is estimated using yields observable in active markets, which are Level 2 inputs, and was as follows: (in thousands) September 30, 2021 December 31, 2020 Carrying amount of fixed rate debt (1) $ 1,296,135 $ 1,295,867 Fair value of fixed rate debt 1,352,000 1,371,000 (1) Carrying amounts are shown net of unamortized debt premium and unamortized deferred financing costs. See Note 9 (“Long-Term Debt”). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 19. Stock-Based Compensation Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Equity award expense $ 2,900 $ 2,645 $ 8,741 $ 8,423 Liability award expense 127 243 1,121 537 Total stock-based compensation expense $ 3,027 $ 2,888 $ 9,862 $ 8,960 The following table presents the activity of our stock-settled restricted stock awards, restricted stock units and performance-based restricted stock units and our cash-settled performance-based restricted stock units during the nine months ended September 30, 2021: Weighted Average Grant Date Fair Value (shares in thousands) Shares Per Share Non-vested, December 31, 2020 2,446 $ 9.69 Granted 1,287 11.20 Vested (1,023) 9.95 Canceled (72) 9.81 Non-vested, September 30, 2021 (1) 2,638 10.32 (1) Comprised of 523 cash-settled units and 2,115 stock-settled awards and units. As of September 30, 2021, we expect $16.2 million of unrecognized compensation cost related to our non-vested awards and units to be recognized over the weighted average period of 1.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Performance Bonds In the normal course of business we have issued performance bonds to various state authorities that ensure payment of certain obligations. We have also issued a bond to protect our 401(k) retirement plan against losses caused by acts of fraud or dishonesty. The bonds have expiration dates in 2021 through the fourth quarter of 2022, and maximum potential future payments of $1.5 million. As of September 30, 2021, we were in compliance with all obligations to which the performance bonds pertain. Tax Matters We are subject to a number of state and local taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of September 30, 2021 and December 31, 2020, we accrued $5.7 million and $5.6 million, respectively, for the outcomes of non-income-based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We believe the likelihood is remote that the impact of potential unasserted claims from non-income-based tax audits could be material to our consolidated financial position, but it is possible that the resolution of future audits could be material to our consolidated results of operations or cash flows. Subject to the provisions of the tax matters agreement between Exterran Corporation and us, both parties agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. The tax contingencies mentioned above relate to tax matters for which we are responsible in managing the audit. As of December 31, 2020, we had an indemnification liability (including penalties and interest), in addition to the tax contingency above, of $1.6 million for our share of non-income-based tax contingencies related to audits being managed by Exterran Corporation. During the nine months ended September 30, 2021, these audits were settled and our indemnification liability was reduced to zero. Insurance Matters Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability and commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business; however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. We are also self-insured for property damage to our offshore assets. Litigation and Claims In the ordinary course of business, we are involved in various pending or threatened legal actions. While we are unable to predict the ultimate outcome of these actions, we believe that any ultimate liability arising from any of these actions will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 21. Related Party Transactions In connection with the closing of the Elite Acquisition, we issued 21.7 million shares of our common stock to JDH Capital, an affiliate of our customer Hilcorp. As long as JDH Capital, together with affiliates of Hilcorp, owns at least 7.5% of our outstanding common stock, it will have the right to designate one director to our Board of Directors. As of September 30, 2021, JDH Capital owned 11.1% of our outstanding common stock. Jeffery D. Hildebrand, founder and executive chairman of Hilcorp, was appointed Director in August 2019 and served until his resignation on July 29, 2020, at which time Jason C. Rebrook, President of Hilcorp, was appointed Director to fill the resulting vacancy. Mr. Hildebrand did not receive compensation in his role as Director and Mr. Rebrook received no compensation in his role as Director in 2020. In December 2020, the Board of Directors voted to approve the payment of Director cash and equity compensation to Mr. Rebrook beginning in 2021. Revenue from Hilcorp and affiliates was $9.5 million and $9.8 million during the three months ended September 30, 2021 and 2020, respectively, and $28.6 million and $30.7 million during the nine months ended September 30, 2021 and 2020, respectively. Accounts receivable, net due from Hilcorp and affiliates was $3.5 million and $3.9 million as of September 30, 2021 and December 31, 2020, respectively. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | 22. Segments We manage our business segments primarily based on the type of product or service provided. We have two segments which we operate within the U.S.: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. We evaluate the performance of our segments based on gross margin for each segment. Revenue includes only sales to external customers. Contract Aftermarket (in thousands) Operations Services Total Three months ended September 30, 2021 Revenue $ 158,911 $ 36,255 $ 195,166 Gross margin 97,631 5,603 103,234 Three months ended September 30, 2020 Revenue $ 175,223 $ 30,408 $ 205,631 Gross margin 114,779 4,699 119,478 Nine months ended September 30, 2021 Revenue $ 488,810 $ 97,402 $ 586,212 Gross margin 304,778 13,477 318,255 Nine months ended September 30, 2020 Revenue $ 570,146 $ 105,498 $ 675,644 Gross margin 367,661 16,112 383,773 The following table reconciles total gross margin to income (loss) before income taxes: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Total gross margin $ 103,234 $ 119,478 $ 318,255 $ 383,773 Less: Selling, general and administrative 28,839 18,681 80,000 78,052 Depreciation and amortization 45,280 47,279 135,185 145,950 Long-lived and other asset impairment 5,121 10,727 15,154 72,132 Goodwill impairment — — — 99,830 Restructuring charges 313 2,900 1,953 7,036 Interest expense 25,508 25,221 82,711 80,664 Debt extinguishment loss — — — 3,971 Gain on sale of assets, net (15,393) (9,146) (29,549) (11,073) Other (income) expense, net 337 (324) (1,634) (1,317) Income (loss) before income taxes $ 13,229 $ 24,140 $ 34,435 $ (91,472) |
Impact of Hurricane
Impact of Hurricane | 9 Months Ended |
Sep. 30, 2021 | |
Impact of Hurricane | |
Impact of Hurricane | 23. Impact of Hurricane Hurricane Ida made landfall in Louisiana on August 29, 2021, causing operational disruptions, damage to compressors and a temporary shutdown of facilities in Louisiana that negatively impacted our financial performance in the quarter. During the three months ended September 30, 2021, we recorded $2.0 million in depreciation expense associated with the damaged assets. We have notified our insurance underwriters and filed a claim for damages caused by Hurricane Ida and are working with an adjuster. We are evaluating and documenting the damage caused including finalizing inspections of damaged compressors and other property. As of September 30, 2021, we are unable to estimate the expected amount to be recovered from insurance, which will be subject to a deductible currently estimated at $0.9 million. |
Recent Accounting Developments
Recent Accounting Developments (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Standards Updates Not Yet Implemented | Accounting Standards Updates Implemented Reference Rate Reform On June 10, 2021, we prospectively adopted ASU 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. Entities may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. On June 10, 2021, we amended one of our interest rate swap agreements and determined that the modifications meet the criteria for the optional expedients and exceptions, which allow us to forego dedesignation of the hedging relationship and to subsequently assess effectiveness on a qualitative basis. The adoption of ASU 2020-04 did not have a material impact on our consolidated financial statements. In the first quarter, we evaluated Amendment No. 3 to our Credit Facility and determined that ASU 2020-04 was not applicable. We will continue to assess any modifications to our interest rate swap and Credit Facility agreements during the effective period of this update and will apply the amendments as applicable. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of balance sheets and statements of operations for discontinued operations | (in thousands) September 30, 2021 December 31, 2020 Other assets $ 7,868 $ 7,868 Deferred tax assets 2,249 3,168 Total assets associated with discontinued operations $ 10,117 $ 11,036 Deferred tax liabilities $ 7,868 $ 7,868 Total liabilities associated with discontinued operations $ 7,868 $ 7,868 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, net of reserves | (in thousands) September 30, 2021 December 31, 2020 Parts and supplies $ 59,478 $ 57,433 Work in progress 7,152 6,237 Inventory $ 66,630 $ 63,670 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | (in thousands) September 30, 2021 December 31, 2020 Compression equipment, facilities and other fleet assets $ 3,269,801 $ 3,439,432 Land and buildings 43,373 45,167 Transportation and shop equipment 95,210 106,868 Computer hardware and software 84,733 84,680 Other 24,496 14,457 Property, plant and equipment 3,517,613 3,690,604 Accumulated depreciation (1,265,387) (1,300,930) Property, plant and equipment, net $ 2,252,226 $ 2,389,674 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (in thousands) September 30, 2021 December 31, 2020 Credit Facility $ 220,000 $ 393,000 2028 Notes Principal 800,000 800,000 Debt premium, net of amortization 13,037 14,541 Deferred financing costs, net of amortization (10,821) (11,766) 802,216 802,775 2027 Notes Principal 500,000 500,000 Deferred financing costs, net of amortization (6,081) (6,908) 493,919 493,092 Long-term debt $ 1,516,135 $ 1,688,867 |
Schedule of financial ratios to be maintained defined in Credit Facility agreement | Senior Secured Debt to EBITDA 3.00 to 1.0 Total Debt to EBITDA Through fiscal year 2022 5.75 to 1.0 January 1, 2023 through September 30, 2023 5.50 to 1.0 Thereafter (1) 5.25 to 1.0 (1) Subject to a temporary increase to 5.50 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss). | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Beginning accumulated other comprehensive loss $ (3,044) $ (6,908) $ (5,006) $ (1,387) Other comprehensive income (loss), net of tax: Loss recognized in other comprehensive income (loss), net of tax benefit of $123, $18, $141 and $1,764, respectively (458) (69) (529) (6,635) Loss reclassified from accumulated other comprehensive loss to interest expense, net of tax benefit of $393, $267, $933 and $545, respectively 1,474 1,004 3,507 2,049 Total other comprehensive income (loss) 1,016 935 2,978 (4,586) Ending accumulated other comprehensive loss $ (2,028) $ (5,973) $ (2,028) $ (5,973) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of entity's dividends per common share | Declared Dividends Dividends Paid per Common Share (in thousands) 2021 Q3 $ 0.145 $ 22,506 Q2 0.145 22,331 Q1 0.145 22,155 2020 Q4 $ 0.145 $ 22,177 Q3 0.145 22,308 Q2 0.145 22,176 Q1 0.145 22,171 |
Revenue from Contract with Cu_2
Revenue from Contract with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Contract operations: 0 ― 1,000 horsepower per unit $ 41,576 $ 51,409 $ 134,413 $ 175,877 1,001 ― 1,500 horsepower per unit 66,138 73,205 201,454 236,083 Over 1,500 horsepower per unit 51,018 50,142 152,360 156,351 Other (1) 179 467 583 1,835 Total contract operations revenue (2) 158,911 175,223 488,810 570,146 Aftermarket services: Services 19,249 17,961 53,149 62,492 OTC parts and components sales 17,006 12,447 44,253 43,006 Total aftermarket services revenue (3) 36,255 30,408 97,402 105,498 Total revenue $ 195,166 $ 205,631 $ 586,212 $ 675,644 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $0.7 million and $1.4 million for the three months ended September 30, 2021 and 2020, respectively, and $3.1 million and $4.5 million for the nine months ended September 30, 2021 and 2020, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time. (3) All services revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time. |
Schedule of remaining Performance Obligation | (in thousands) 2021 2022 2023 2024 2025 2026 Total Remaining performance obligations $ 1,093 $ 95,890 $ 128,521 $ 32,787 $ 9,148 $ 759 $ 268,198 |
Summary of changes in the allowance for credit losses balance | (in thousands) Balance at December 31, 2020 $ 3,370 Provision for credit losses 151 Write-offs charged against allowance (464) Balance at September 30, 2021 $ 3,057 |
Long-Lived and Other Asset Im_2
Long-Lived and Other Asset Impairment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long-Lived and Other Asset Impairment | |
Schedule of impairment of long-lived assets | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2021 2020 2021 2020 Idle compressors retired from the active fleet 60 105 175 640 Horsepower of idle compressors retired from the active fleet 24,000 28,000 61,000 235,000 Impairment recorded on idle compressors retired from the active fleet $ 5,120 $ 8,137 $ 14,964 $ 69,542 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges | |
Schedule of restructuring charges by segment | Contract Aftermarket (in thousands) Operations Services Other (1) Total Three months ended September 30, 2021 Pandemic restructuring $ — $ — $ 224 $ 224 Property restructuring - other exit costs — — 19 19 Other restructuring — — 70 70 Total restructuring charges $ — $ — $ 313 $ 313 Three months ended September 30, 2020 Organizational restructuring $ (20) $ — $ (13) $ (33) Pandemic restructuring 546 644 245 1,435 Property restructuring Loss on sale — — 915 915 Impairment loss — — 583 583 Total property restructuring — — 1,498 1,498 Total restructuring charges $ 526 $ 644 $ 1,730 $ 2,900 Nine months ended September 30, 2021 Pandemic restructuring $ 616 $ 145 $ 956 $ 1,717 Property restructuring Impairment loss — — 9 9 Other exit costs — — 26 26 Total property restructuring — — 35 35 Other restructuring — — 201 201 Total restructuring charges $ 616 $ 145 $ 1,192 $ 1,953 Nine months ended September 30, 2020 Organizational restructuring $ 458 $ 625 $ 612 $ 1,695 Pandemic restructuring 1,932 931 980 3,843 Property restructuring Loss on sale — — 915 915 Impairment loss — — 583 583 Total property restructuring — — 1,498 1,498 Total restructuring charges $ 2,390 $ 1,556 $ 3,090 $ 7,036 (1) Represents expense incurred within our corporate function and not directly attributable to our segments. |
Schedule of restructuring charges by type | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Severance costs Organizational restructuring $ — $ (33) $ — $ 1,695 Pandemic restructuring 224 1,435 1,717 3,843 Total severance costs 224 1,402 1,717 5,538 Property disposal costs Loss on sale — 915 — 915 Impairment loss — 583 9 583 Other exit costs 19 — 26 — Total property disposal costs 19 1,498 35 1,498 Other restructuring costs 70 — 201 — Total restructuring charges $ 313 $ 2,900 $ 1,953 $ 7,036 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted income (loss) per common share | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Net income (loss) $ 9,304 $ 18,332 $ 22,225 $ (73,236) Less: Earnings attributable to participating securities (456) (439) (909) (1,083) Net income (loss) attributable to common stockholders $ 8,848 $ 17,893 $ 21,316 $ (74,319) |
Schedule of potential shares of common stock that were included in computing diluted income (loss) attributable to Archrock common stockholders per common share | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Weighted average common shares outstanding including participating securities 154,041 152,973 153,422 152,790 Less: Weighted average participating securities outstanding (1,883) (1,999) (1,807) (2,060) Weighted average common shares outstanding used in basic net income (loss) per common share 152,158 150,974 151,615 150,730 Net dilutive potential common shares issuable: On exercise of options and vesting of performance-based restricted stock units 138 57 152 — On settlement of ESPP shares 1 7 2 — Weighted average common shares outstanding used in diluted net income (loss) per common share 152,297 151,038 151,769 150,730 |
Schedule of potential shares of common stock issuable, excluded from computation of diluted income (loss), attributable to Archrock common stockholders per common share | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 On exercise of options where exercise price is greater than average market value for the period 15 85 27 102 On exercise of options and vesting of performance-based restricted stock units — — — 57 On settlement of ESPP shares — — — 19 Net dilutive potential common shares issuable 15 85 27 178 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of effect of derivative instruments on consolidated financial position | (in thousands) September 30, 2021 December 31, 2020 Interest rate swaps designated as cash flow hedging instruments Accrued liabilities $ 1,502 $ 4,810 Other liabilities — 1,527 Total derivatives designated as cash flow hedging instruments 1,502 6,337 Interest rate swaps not designated as hedging instruments Accrued liabilities 1,079 — Total derivative liabilities $ 2,581 $ 6,337 |
Schedule of effect of derivative instruments on results of operations | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Total amount of interest expense in which the effects of cash flow hedges and undesignated interest rate swaps are recorded $ 25,508 $ 25,221 $ 82,711 $ 80,664 Interest rate swaps designated as cash flow hedging instruments Pre-tax loss recognized in other comprehensive income (loss) $ (581) $ (87) $ (670) $ (8,399) Pre-tax loss reclassified from accumulated other comprehensive loss into interest expense (1,867) (1,271) (4,440) (2,594) Interest rate swaps not designated as hedging instruments Gain recognized in interest expense $ 532 $ — $ 532 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair value | |
Summary of assets and liabilities measured at fair value on recurring basis | (in thousands) September 30, 2021 December 31, 2020 Derivative liabilities $ 2,581 $ 6,337 |
Compressors | |
Fair value | |
Schedule of non-recurring fair value assets | (in thousands) September 30, 2021 December 31, 2020 Impaired compressors $ 3,896 $ 19,046 |
Schedule of significant unobservable inputs | Range Weighted Average (1) Estimated net sale proceeds: As of September 30, 2021 $0 - $621 per horsepower $31 per horsepower As of December 31, 2020 $0 - $289 per horsepower $20 per horsepower (1) Calculated based on an estimated discount for market liquidity of 68% and 81% as of September 30, 2021 and December 31, 2020, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of allocated stock-based compensation | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Equity award expense $ 2,900 $ 2,645 $ 8,741 $ 8,423 Liability award expense 127 243 1,121 537 Total stock-based compensation expense $ 3,027 $ 2,888 $ 9,862 $ 8,960 |
Schedule of restricted stock, restricted stock unit, performance unit, cash settled restricted stock unit and cash settled performance unit activity | Weighted Average Grant Date Fair Value (shares in thousands) Shares Per Share Non-vested, December 31, 2020 2,446 $ 9.69 Granted 1,287 11.20 Vested (1,023) 9.95 Canceled (72) 9.81 Non-vested, September 30, 2021 (1) 2,638 10.32 (1) Comprised of 523 cash-settled units and 2,115 stock-settled awards and units. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of revenue and other financial information by reportable segment | Contract Aftermarket (in thousands) Operations Services Total Three months ended September 30, 2021 Revenue $ 158,911 $ 36,255 $ 195,166 Gross margin 97,631 5,603 103,234 Three months ended September 30, 2020 Revenue $ 175,223 $ 30,408 $ 205,631 Gross margin 114,779 4,699 119,478 Nine months ended September 30, 2021 Revenue $ 488,810 $ 97,402 $ 586,212 Gross margin 304,778 13,477 318,255 Nine months ended September 30, 2020 Revenue $ 570,146 $ 105,498 $ 675,644 Gross margin 367,661 16,112 383,773 |
Reconciliation of net income (loss) to gross margin | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Total gross margin $ 103,234 $ 119,478 $ 318,255 $ 383,773 Less: Selling, general and administrative 28,839 18,681 80,000 78,052 Depreciation and amortization 45,280 47,279 135,185 145,950 Long-lived and other asset impairment 5,121 10,727 15,154 72,132 Goodwill impairment — — — 99,830 Restructuring charges 313 2,900 1,953 7,036 Interest expense 25,508 25,221 82,711 80,664 Debt extinguishment loss — — — 3,971 Gain on sale of assets, net (15,393) (9,146) (29,549) (11,073) Other (income) expense, net 337 (324) (1,634) (1,317) Income (loss) before income taxes $ 13,229 $ 24,140 $ 34,435 $ (91,472) |
Description of Business and Bas
Description of Business and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Description of Business and Basis of Presentation | |
Number of reportable segments | 2 |
Business Transactions (Details)
Business Transactions (Details) hp in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||||||
Jul. 31, 2021USD ($)CompressorUnit | Jul. 30, 2021USD ($) | Feb. 28, 2021hpCompressorUnit | Jul. 31, 2020USD ($) | Mar. 31, 2020CompressorUnithp | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | |
Transactions | ||||||||||
Gain on disposition | $ 18,945 | $ 12,475 | ||||||||
Proceeds from sale | 24,683 | 14,043 | ||||||||
Disposed of by Sale | July 2021 Dispositions | ||||||||||
Transactions | ||||||||||
Number of compressors | CompressorUnit | 575 | |||||||||
Compressor units horsepower (horsepower) | 100 | |||||||||
Cash consideration received | $ 60,300 | 60,300 | ||||||||
Gain on disposition | $ 13,000 | 13,000 | ||||||||
Consideration receivable | $ 1,300 | |||||||||
Disposed of by Sale | February 2021 Disposition | ||||||||||
Transactions | ||||||||||
Number of compressors | CompressorUnit | 300 | |||||||||
Compressor units horsepower (horsepower) | hp | 40 | |||||||||
Gain on disposition | 6,000 | |||||||||
Disposed of by Sale | July 2020 Disposition | ||||||||||
Transactions | ||||||||||
Disposal Group, Not Discontinued Operation, Name of Segment | Aftermarket Services | |||||||||
Cash consideration received | $ 9,500 | |||||||||
Cash consideration received on first anniversary of closing | $ 3,000 | |||||||||
Amount of consideration receivable as credit for purchases | $ 3,500 | |||||||||
Cash received under supply agreement | $ 2,500 | $ 3,200 | ||||||||
Gain on disposition | $ 9,300 | 9,300 | ||||||||
Disposed of by Sale | March 2020 Disposition | ||||||||||
Transactions | ||||||||||
Number of compressors | CompressorUnit | 200 | |||||||||
Compressor units horsepower (horsepower) | hp | 35 | |||||||||
Gain on disposition | $ 3,200 | |||||||||
Turbocharger goods and services | July 2020 Disposition | ||||||||||
Transactions | ||||||||||
Term of supply agreement | 2 years |
Discontinued Operations - Descr
Discontinued Operations - Description (Details) - Exterran Corporation - Spinoff - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Discontinued Operations | ||
Deferred tax liabilities | $ 7,868 | $ 7,868 |
Indemnification asset | $ 7,868 | $ 7,868 |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet Data for Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Summary of balance sheet data for discontinued operations | ||
Total assets associated with discontinued operations | $ 10,117 | $ 11,036 |
Total liabilities associated with discontinued operations | 7,868 | 7,868 |
Spinoff | Exterran Corporation | ||
Summary of balance sheet data for discontinued operations | ||
Other assets | 7,868 | 7,868 |
Deferred tax assets | 2,249 | 3,168 |
Total assets associated with discontinued operations | 10,117 | 11,036 |
Deferred tax liabilities | 7,868 | 7,868 |
Total liabilities associated with discontinued operations | $ 7,868 | $ 7,868 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Composition of Inventory net of reserves | ||
Parts and supplies | $ 59,478 | $ 57,433 |
Work in progress | 7,152 | 6,237 |
Inventory | $ 66,630 | $ 63,670 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 3,517,613 | $ 3,690,604 |
Accumulated depreciation | (1,265,387) | (1,300,930) |
Property, plant and equipment, net | 2,252,226 | 2,389,674 |
Compression equipment, facilities and other fleet assets | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 3,269,801 | 3,439,432 |
Land and buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 43,373 | 45,167 |
Transportation and shop equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 95,210 | 106,868 |
Computer hardware and software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 84,733 | 84,680 |
Other property, plant and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 24,496 | $ 14,457 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | |
Change in the carrying value of goodwill | ||
Goodwill impairment | $ 99,800 | $ 99,830 |
Hosting Arrangements (Details)
Hosting Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Hosting arrangements, Capitalized costs | $ 10.8 | $ 10.8 | $ 7.7 | ||
Hosting arrangements, Accumulated amortization | 0.6 | 0.6 | $ 0.3 | ||
Hosting arrangements, Amortization | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.2 | |
Impairment of capitalized implementation costs | $ 1.6 | $ 1.6 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instruments | ||
Long-term debt | $ 1,516,135 | $ 1,688,867 |
Credit Facility | ||
Debt Instruments | ||
Long-term debt | 220,000 | 393,000 |
2028 Notes | ||
Debt Instruments | ||
Long term debt gross | 800,000 | 800,000 |
Debt premium, net of amortization | 13,037 | 14,541 |
Deferred financing costs, net of amortization | (10,821) | (11,766) |
Long-term debt | 802,216 | 802,775 |
2027 Notes | ||
Debt Instruments | ||
Long term debt gross | 500,000 | 500,000 |
Deferred financing costs, net of amortization | (6,081) | (6,908) |
Long-term debt | $ 493,919 | $ 493,092 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 13 Months Ended | 22 Months Ended | 45 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2023 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Nov. 08, 2024 | Dec. 31, 2022 | Nov. 08, 2024 | Feb. 22, 2021USD ($) | Dec. 31, 2020USD ($) | |
Credit Facility | ||||||||||
Line of Credit Facility | ||||||||||
Letter of credit outstanding | $ 12.5 | $ 12.5 | ||||||||
Debt instrument, variable rate (percentage) | 2.40% | |||||||||
Debt instrument weighted average interest rate (percent) | 2.60% | 2.60% | 2.70% | |||||||
Commitment fee amount | $ 0.5 | $ 0.4 | $ 1.5 | $ 1.5 | ||||||
Undrawn capacity under revolving credit facility | $ 517.5 | 517.5 | ||||||||
Maximum borrowing capacity | $ 750 | $ 1,250 | ||||||||
Credit Facility, Amendment 3 | ||||||||||
Line of Credit Facility | ||||||||||
Transaction costs | $ 1.8 | |||||||||
Debt issuance cost written off | $ 4.9 | |||||||||
Forecasted | Credit Facility | ||||||||||
Line of Credit Facility | ||||||||||
Senior Secured Debt to EBITDA | 3 | |||||||||
Total Debt to EBITDA ratio | 5.50 | 5.25 | 5.75 | |||||||
Total debt to EBITDA ratio in period which an acquisition is completed and for two quarters following such quarter | 5.50 |
Long-Term Debt - 2022 Notes Red
Long-Term Debt - 2022 Notes Redemption (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instruments | |||
Repayments of long-term debt | $ 695,751 | $ 988,500 | |
Debt extinguishment loss | 3,971 | ||
2022 Notes | |||
Debt Instruments | |||
Redemption rate (as a percent) | 100.00% | ||
Repayments of long-term debt | $ 350,000 | ||
Interest paid | $ 10,500 | ||
Debt extinguishment loss | $ 4,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance | $ 913,821 | $ 950,873 | $ 935,557 | $ 1,085,963 |
Other comprehensive income (loss), net of tax: | ||||
Total other comprehensive income (loss), net of tax | 1,016 | 935 | 2,978 | (4,586) |
Ending balance | 904,047 | 949,685 | 904,047 | 949,685 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning balance | (3,044) | (6,908) | (5,006) | (1,387) |
Other comprehensive income (loss), net of tax: | ||||
Gain (loss) recognized in other comprehensive income (loss), net of tax expense (benefit) | (458) | (69) | (529) | (6,635) |
(Gain) loss reclassified from accumulated other comprehensive loss to interest expense, net of tax (expense) benefit | 1,474 | 1,004 | 3,507 | 2,049 |
Total other comprehensive income (loss), net of tax | 1,016 | 935 | 2,978 | (4,586) |
Ending balance | (2,028) | (5,973) | (2,028) | (5,973) |
Gain (loss) recognized in other comprehensive income, tax expense (benefit) | (123) | (18) | (141) | (1,764) |
(Gain) loss reclassified from accumulated other comprehensive loss, tax (expense) benefit | $ 393 | $ 267 | $ 933 | $ 545 |
Equity - Equity Offering (Detai
Equity - Equity Offering (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Feb. 23, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||
Net proceeds from issuance of common stock | $ 3,401 | |
ATM Agreement | ||
Subsidiary, Sale of Stock [Line Items] | ||
Maximum amount of shares to be issued | $ 50,000 | |
Stock issued (in shares) | 357,148 | |
Net proceeds from issuance of common stock | $ 3,400 |
Equity - Cash Dividends (Detail
Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Distributions | ||||||||||
Declared Dividends per Common Share (in dollars per share) | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.145 | $ 0.435 | $ 0.435 | |
Dividends Paid | $ 22,506 | $ 22,331 | $ 22,155 | $ 22,177 | $ 22,308 | $ 22,176 | $ 22,171 | $ 66,992 | $ 66,655 | |
Subsequent Event | ||||||||||
Distributions | ||||||||||
Declared Dividends per Common Share (in dollars per share) | $ 0.145 |
Revenue from Contract with Cu_3
Revenue from Contract with Customers - Disaggregate Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)hp | Sep. 30, 2020USD ($)hp | Sep. 30, 2021USD ($)hp | Sep. 30, 2020USD ($)hp | |
Disaggregation of Revenue | ||||
Revenue | $ 195,166 | $ 205,631 | $ 586,212 | $ 675,644 |
Contract Operations | ||||
Disaggregation of Revenue | ||||
Revenue | 158,911 | 175,223 | 488,810 | 570,146 |
Contract Operations | Transferred at Point in Time | ||||
Disaggregation of Revenue | ||||
Revenue | 700 | 1,400 | 3,100 | 4,500 |
Contract Operations | 0 - 1,000 horsepower per unit | ||||
Disaggregation of Revenue | ||||
Revenue | $ 41,576 | $ 51,409 | $ 134,413 | $ 175,877 |
Contract Operations | 0 - 1,000 horsepower per unit | Minimum | ||||
Disaggregation of Revenue | ||||
Compressor units horsepower (horsepower) | hp | 0 | 0 | 0 | 0 |
Contract Operations | 0 - 1,000 horsepower per unit | Maximum | ||||
Disaggregation of Revenue | ||||
Compressor units horsepower (horsepower) | hp | 1,000 | 1,000 | 1,000 | 1,000 |
Contract Operations | 1,001 - 1,500 horsepower per unit | ||||
Disaggregation of Revenue | ||||
Revenue | $ 66,138 | $ 73,205 | $ 201,454 | $ 236,083 |
Contract Operations | 1,001 - 1,500 horsepower per unit | Minimum | ||||
Disaggregation of Revenue | ||||
Compressor units horsepower (horsepower) | hp | 1,001 | 1,001 | 1,001 | 1,001 |
Contract Operations | 1,001 - 1,500 horsepower per unit | Maximum | ||||
Disaggregation of Revenue | ||||
Compressor units horsepower (horsepower) | hp | 1,500 | 1,500 | 1,500 | 1,500 |
Contract Operations | Over 1,500 horsepower per unit | ||||
Disaggregation of Revenue | ||||
Revenue | $ 51,018 | $ 50,142 | $ 152,360 | $ 156,351 |
Contract Operations | Over 1,500 horsepower per unit | Minimum | ||||
Disaggregation of Revenue | ||||
Compressor units horsepower (horsepower) | hp | 1,500 | 1,500 | 1,500 | 1,500 |
Contract Operations | Other, including fees | ||||
Disaggregation of Revenue | ||||
Revenue | $ 179 | $ 467 | $ 583 | $ 1,835 |
Aftermarket Services | ||||
Disaggregation of Revenue | ||||
Revenue | 36,255 | 30,408 | 97,402 | 105,498 |
Aftermarket Services | Services | ||||
Disaggregation of Revenue | ||||
Revenue | 19,249 | 17,961 | 53,149 | 62,492 |
Aftermarket Services | OTC parts and components sales | ||||
Disaggregation of Revenue | ||||
Revenue | $ 17,006 | $ 12,447 | $ 44,253 | $ 43,006 |
Revenue from Contract with Cu_4
Revenue from Contract with Customers - Performance Obligations (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 268,198 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,093 |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 95,890 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 128,521 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 32,787 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 9,148 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 759 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue from Contract with Cu_5
Revenue from Contract with Customers - Contract Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue | ||
Accounts receivable, trade, net of allowance | $ 108,936 | $ 104,425 |
Contract with Customers | ||
Disaggregation of Revenue | ||
Accounts receivable, trade, net of allowance | $ 95,300 | $ 95,600 |
Revenue from Contract with Cu_6
Revenue from Contract with Customers - Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contractual life of accounts receivable | 30 days | |
Period for analyzing historical loss data to determine loss experience | 2 years | |
Changes in the allowance for credit losses balance | ||
Balance at beginning of period | $ 3,370 | |
Provision for credit losses | 151 | $ 2,235 |
Write-offs charged against the allowance | (464) | |
Balance at end of period | $ 3,057 |
Revenue from Contract with Cu_7
Revenue from Contract with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liability with customer | $ 4,600 | |
Deferred revenue | 8,167 | $ 10,696 |
Deferred revenue recognized in earnings | $ 8,081 | $ 17,183 |
Long-Lived Asset Impairment (De
Long-Lived Asset Impairment (Details) hp in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)CompressorUnithp | Sep. 30, 2020USD ($)CompressorUnithp | Sep. 30, 2021USD ($)CompressorUnithp | Sep. 30, 2020USD ($)CompressorUnithp | |
Impaired Long-Lived Assets Held and Used | ||||
Other asset impairment | $ 1,700 | $ 1,700 | ||
Idle Compressor Units | ||||
Impaired Long-Lived Assets Held and Used | ||||
Idle compressors retired from the active fleet | CompressorUnit | 60 | 105 | 175 | 640 |
Horsepower of idle compressors retired from the active fleet | hp | 24 | 28 | 61 | 235 |
Impairment recorded on idle compressors retired from the active fleet | $ 5,120 | $ 8,137 | $ 14,964 | $ 69,542 |
Restructuring Charges - General
Restructuring Charges - General (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring charges | |||||
Restructuring charges | $ 313 | $ 2,900 | $ 1,953 | $ 7,036 | |
Severance costs | |||||
Restructuring charges | |||||
Restructuring charges | 224 | 1,402 | 1,717 | 5,538 | |
Organizational Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | (33) | 1,695 | |||
Estimated additional charges | 0 | 0 | |||
Organizational Restructuring | Severance costs | |||||
Restructuring charges | |||||
Restructuring charges | (33) | $ 1,700 | 1,695 | ||
Pandemic Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | 224 | 1,435 | 1,717 | 3,843 | |
Estimated additional charges | 0 | 0 | |||
Pandemic Restructuring | Severance costs | |||||
Restructuring charges | |||||
Restructuring charges | 224 | 1,435 | 1,717 | 3,843 | |
Restructuring charges incurred to date | 7,000 | 7,000 | |||
Property Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | 19 | $ 1,498 | 35 | $ 1,498 | |
Restructuring charges incurred to date | 1,500 | 1,500 | |||
Facility Exit Plan | |||||
Restructuring charges | |||||
Estimated additional charges | $ 800 | $ 800 |
Restructuring Charges - By segm
Restructuring Charges - By segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring charges | ||||
Restructuring charges | $ 313 | $ 2,900 | $ 1,953 | $ 7,036 |
Organizational Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | (33) | 1,695 | ||
Pandemic Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | 224 | 1,435 | 1,717 | 3,843 |
Property Restructuring | ||||
Restructuring charges | ||||
Loss on sale | 915 | 915 | ||
Impairment loss | 583 | 9 | 583 | |
Other exit costs | 26 | |||
Restructuring charges | 19 | 1,498 | 35 | 1,498 |
Other Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | 70 | 201 | ||
Corporate | ||||
Restructuring charges | ||||
Restructuring charges | 313 | 1,730 | 1,192 | 3,090 |
Corporate | Organizational Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | (13) | 612 | ||
Corporate | Pandemic Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | 224 | 245 | 956 | 980 |
Corporate | Property Restructuring | ||||
Restructuring charges | ||||
Loss on sale | 915 | 915 | ||
Impairment loss | 583 | 9 | 583 | |
Other exit costs | 26 | |||
Restructuring charges | 19 | 1,498 | 35 | 1,498 |
Corporate | Other Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | $ 70 | 201 | ||
Contract Operations | Operating | ||||
Restructuring charges | ||||
Restructuring charges | 526 | 616 | 2,390 | |
Contract Operations | Operating | Organizational Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | (20) | 458 | ||
Contract Operations | Operating | Pandemic Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | 546 | 616 | 1,932 | |
Aftermarket Services | Operating | ||||
Restructuring charges | ||||
Restructuring charges | 644 | 145 | 1,556 | |
Aftermarket Services | Operating | Organizational Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | 625 | |||
Aftermarket Services | Operating | Pandemic Restructuring | ||||
Restructuring charges | ||||
Restructuring charges | $ 644 | $ 145 | $ 931 |
Restructuring Charges - By type
Restructuring Charges - By type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring charges | |||||
Restructuring charges | $ 313 | $ 2,900 | $ 1,953 | $ 7,036 | |
Organizational Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | (33) | 1,695 | |||
Pandemic Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | 224 | 1,435 | 1,717 | 3,843 | |
Property Restructuring | |||||
Restructuring charges | |||||
Loss on sale | 915 | 915 | |||
Impairment loss | 583 | 9 | 583 | ||
Other exit costs | 26 | ||||
Restructuring charges | 19 | 1,498 | 35 | 1,498 | |
Other Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | 70 | 201 | |||
Severance costs | |||||
Restructuring charges | |||||
Restructuring charges | 224 | 1,402 | 1,717 | 5,538 | |
Severance costs | Organizational Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | (33) | $ 1,700 | 1,695 | ||
Severance costs | Pandemic Restructuring | |||||
Restructuring charges | |||||
Restructuring charges | 224 | 1,435 | 1,717 | 3,843 | |
Property disposal costs | Property Restructuring | |||||
Restructuring charges | |||||
Loss on sale | 915 | 915 | |||
Impairment loss | 583 | 9 | 583 | ||
Other exit costs | 19 | 26 | |||
Restructuring charges | 19 | $ 1,498 | 35 | $ 1,498 | |
Other restructuring costs | |||||
Restructuring charges | |||||
Restructuring charges | $ 70 | $ 201 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Sep. 30, 2021USD ($) |
Income Taxes | |
Potential decrease in unrecognized tax benefit | $ 2.8 |
Earnings Per Share - Net Income
Earnings Per Share - Net Income Attributable to Common Stockholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of net income attributable to Archrock common stockholders used in the calculation of basic and diluted income per common share | ||||
Net income (loss) | $ 9,304 | $ 18,332 | $ 22,225 | $ (73,236) |
Less: Earnings attributable to participating securities | (456) | (439) | (909) | (1,083) |
Net income (loss) attributable to common stockholders, basic | 8,848 | 17,893 | 21,316 | (74,319) |
Net income (loss) attributable to common stockholders, diluted | $ 8,848 | $ 17,893 | $ 21,316 | $ (74,319) |
Potential shares of common stock included in computing diluted income (loss) attributable to Archrock common stockholders | ||||
Weighted average common shares outstanding including participating securities | 154,041 | 152,973 | 153,422 | 152,790 |
Less: Weighted average participating securities outstanding | (1,883) | (1,999) | (1,807) | (2,060) |
Weighted average common shares outstanding used in basic net income (loss) per common share (in shares) | 152,158 | 150,974 | 151,615 | 150,730 |
Weighted average common shares outstanding used in diluted net income (loss) per common share (in shares) | 152,297 | 151,038 | 151,769 | 150,730 |
On exercise of options and vesting of performance-based restricted stock units | ||||
Potential shares of common stock included in computing diluted income (loss) attributable to Archrock common stockholders | ||||
Net dilutive potential common shares issuable (in shares) | 138 | 57 | 152 | |
On settlement of ESPP shares | ||||
Potential shares of common stock included in computing diluted income (loss) attributable to Archrock common stockholders | ||||
Net dilutive potential common shares issuable (in shares) | 1 | 7 | 2 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable | ||||
Net dilutive potential common shares issuable (shares) | 15 | 85 | 27 | 178 |
On exercise of options where exercise price is greater than average market value for the period | ||||
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable | ||||
Net dilutive potential common shares issuable (shares) | 15 | 85 | 27 | 102 |
On exercise of options and vesting of performance-based restricted stock units | ||||
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable | ||||
Net dilutive potential common shares issuable (shares) | 57 | |||
On settlement of ESPP shares | ||||
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable | ||||
Net dilutive potential common shares issuable (shares) | 19 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps (Details) - Interest Rate Swaps $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Notional Disclosures | |
Notional amount of interest rate swaps | $ 300 |
Notional value dedesignated | 125 |
Fair value of derivative prior to dedesignation | 1.6 |
Derivatives Designated as Hedging Instruments | |
Notional Disclosures | |
Notional amount of interest rate swaps | 175 |
Deferred pre-tax losses to be reclassified during next 12 months | $ 2.6 |
Weighted average effective fixed interest rate on interest rate swaps (as a percent) | 1.80% |
Derivatives - Effect of Derivat
Derivatives - Effect of Derivative Instruments on Balance Sheets (Details) - Interest Rate Swaps - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives | ||
Derivative liabilities | $ 2,581 | $ 6,337 |
Derivatives Designated as Hedging Instruments | ||
Derivatives | ||
Derivative liabilities | 1,502 | 6,337 |
Derivatives Designated as Hedging Instruments | Accrued liabilities | ||
Derivatives | ||
Derivative liabilities | 1,502 | 4,810 |
Derivatives Designated as Hedging Instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | $ 1,527 | |
Derivatives Not Designated as Hedging Instruments | Accrued liabilities | ||
Derivatives | ||
Derivative liabilities | $ 1,079 |
Derivatives - Effect of Deriv_2
Derivatives - Effect of Derivative Instruments on Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effect of derivative instruments on results of operations | ||||
Total amount of interest expense in which the effects of cash flow hedges are recorded | $ 25,508 | $ 25,221 | $ 82,711 | $ 80,664 |
Derivatives Designated as Hedging Instruments | Interest Rate Swaps | ||||
Effect of derivative instruments on results of operations | ||||
Pre-tax gain (loss) recognized in other comprehensive income (loss) | (581) | (87) | (670) | (8,399) |
Derivatives Designated as Hedging Instruments | Interest Rate Swaps | Interest expense | ||||
Effect of derivative instruments on results of operations | ||||
Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense | (1,867) | $ (1,271) | (4,440) | $ (2,594) |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swaps | Interest expense | ||||
Effect of derivative instruments on results of operations | ||||
Gain recognized in interest expense | $ 532 | $ 532 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Recurring Basis | Level 2 | ||
Fair value measurement of assets and liabilities | ||
Derivative liabilities | $ 2,581 | $ 6,337 |
Fair Value Measurements - Mea_2
Fair Value Measurements - Measured on Nonrecurring Basis (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Y$ / hp | Dec. 31, 2020USD ($)$ / hp | |
Fair value | ||||
Goodwill impairment | $ | $ 99,800 | $ 99,830 | ||
Impaired Long-Lived Assets | Compressors | Measurement Input, Sale proceeds | Minimum | ||||
Fair value | ||||
Measurement input | 0 | 0 | ||
Impaired Long-Lived Assets | Compressors | Measurement Input, Sale proceeds | Maximum | ||||
Fair value | ||||
Measurement input | 621 | 289 | ||
Impaired Long-Lived Assets | Compressors | Measurement Input, Sale proceeds | Weighted average | ||||
Fair value | ||||
Measurement input | 31 | 20 | ||
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Weighted average disposal period | ||||
Fair value | ||||
Measurement input | Y | 4 | |||
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Discount for market liquidity | ||||
Fair value | ||||
Measurement input | 0.68 | 0.81 | ||
Nonrecurring Basis | Level 3 | Impaired Long-Lived Assets | Compressors | ||||
Fair value | ||||
Impaired assets | $ | $ 3,896 | $ 19,046 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Debt (Details) - Fixed Rate Debt - Level 2 - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, fair value | $ 1,352,000 | $ 1,371,000 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, fair value | $ 1,296,135 | $ 1,295,867 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Total stock-based compensation expense | $ 3,027 | $ 2,888 | $ 9,862 | $ 8,960 |
Equity awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Total stock-based compensation expense | 2,900 | 2,645 | 8,741 | 8,423 |
Liability awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Total stock-based compensation expense | $ 127 | $ 243 | $ 1,121 | $ 537 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Restricted Stock, Restricted Stock Units, Performance Units, Cash Settled Restricted Stock Units and Cash Settled Performance Units | |
Shares | |
Non-vested awards at beginning of period (in shares) | 2,446 |
Granted (in shares) | 1,287 |
Vested (in shares) | (1,023) |
Canceled (in shares) | (72) |
Non-vested awards at end of period (in shares) | 2,638 |
Weighted Average Grant Date Fair Value Per Share | |
Non-vested awards at beginning of period (in dollars per share) | $ / shares | $ 9.69 |
Granted (in dollars per share) | $ / shares | 11.20 |
Vested (in dollars per share) | $ / shares | 9.95 |
Canceled (in dollars per share) | $ / shares | 9.81 |
Non-vested awards at end of period (in dollars per share) | $ / shares | $ 10.32 |
Cash-settled units | |
Shares | |
Non-vested awards at end of period (in shares) | 523 |
Stock-settled awards and units | |
Shares | |
Non-vested awards at end of period (in shares) | 2,115 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Expense (Details) - Restricted Stock, Restricted Stock Units, Performance Units, Cash Settled Restricted Stock Units and Cash Settled Performance Units $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Unrecognized compensation | |
Unrecognized compensation cost related to unvested awards (in dollars) | $ 16.2 |
Weighted-average period over which the expected unrecognized compensation cost related to unvested stock options will be recognized | 1 year 10 months 24 days |
Commitments and Contingencies -
Commitments and Contingencies - Performance Bonds (Details) $ in Millions | Sep. 30, 2021USD ($) |
Performance Bonds | |
Commitments and contingencies | |
Maximum potential undiscounted payments | $ 1.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Tax Matters - Loss contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Non-income based tax audits | ||
Loss Contingencies [Line Items] | ||
Accrued liability for the outcomes of non-income based tax audits | $ 5.7 | $ 5.6 |
Non-income based tax audits being managed by Exterran Corporation | ||
Loss Contingencies [Line Items] | ||
Accrued liability for the outcomes of non-income based tax audits | $ 0 | $ 1.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity shares in Millions, $ in Millions | Aug. 01, 2019directorshares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
JDH Capital | Archrock, Inc. | ||||||
Related Party Transaction | ||||||
Ownership interest (percent) | 11.10% | 11.10% | ||||
JDH Capital and affiliates of Hilcorp | ||||||
Related Party Transaction | ||||||
Number of directors shareholders have right to designate | director | 1 | |||||
JDH Capital | Elite Acquisition | Common Stock | ||||||
Related Party Transaction | ||||||
Minimum ownership interest of outstanding shares required to elect a board of director (percent) | 7.50% | |||||
Jeffery D. Hildebrand | Director | ||||||
Related Party Transaction | ||||||
Compensation paid by entity to individual in role as Director | $ 0 | |||||
Jason C. Rebrook | Director | ||||||
Related Party Transaction | ||||||
Compensation paid by entity to individual in role as Director | 0 | |||||
Hilcorp and affiliates | ||||||
Related Party Transaction | ||||||
Revenue from related party transactions | $ 9.5 | $ 9.8 | $ 28.6 | $ 30.7 | ||
Due from related party | $ 3.5 | $ 3.5 | $ 3.9 | |||
Elite Acquisition | JDH Capital | Common Stock | ||||||
Related Party Transaction | ||||||
Shares issued as compensation for asset acquisition (shares) | shares | 21.7 |
Segments - Number (Details)
Segments - Number (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Revenue and Gross Ma
Segments - Revenue and Gross Margin by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue and other financial information by reportable segment | ||||
Revenue | $ 195,166 | $ 205,631 | $ 586,212 | $ 675,644 |
Gross margin | 103,234 | 119,478 | 318,255 | 383,773 |
Contract Operations | ||||
Revenue and other financial information by reportable segment | ||||
Revenue | 158,911 | 175,223 | 488,810 | 570,146 |
Gross margin | 97,631 | 114,779 | 304,778 | 367,661 |
Aftermarket Services | ||||
Revenue and other financial information by reportable segment | ||||
Revenue | 36,255 | 30,408 | 97,402 | 105,498 |
Gross margin | $ 5,603 | $ 4,699 | $ 13,477 | $ 16,112 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Income to Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation Net Income (Loss) to Gross Margin | |||||
Total gross margin | $ 103,234 | $ 119,478 | $ 318,255 | $ 383,773 | |
Less: | |||||
Selling, general and administrative | 28,839 | 18,681 | 80,000 | 78,052 | |
Depreciation and amortization | 45,280 | 47,279 | 135,185 | 145,950 | |
Long-lived and other asset impairment | 5,121 | 10,727 | 15,154 | 72,132 | |
Goodwill impairment | $ 99,800 | 99,830 | |||
Restructuring charges | 313 | 2,900 | 1,953 | 7,036 | |
Interest expense | 25,508 | 25,221 | 82,711 | 80,664 | |
Debt extinguishment loss | 3,971 | ||||
(Gain) loss on sale of assets, net | (15,393) | (9,146) | (29,549) | (11,073) | |
Other (income) expense, net | 337 | (324) | (1,634) | (1,317) | |
Income (loss) before income taxes | $ 13,229 | $ 24,140 | $ 34,435 | $ (91,472) |
Impact of Hurricane (Details)
Impact of Hurricane (Details) - Hurricane Ida $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Impact of hurricane | |
Depreciation expense | $ 2 |
Estimate of insurance deductible | $ 0.9 |