Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37917 | |
Entity Registrant Name | Mammoth Energy Services, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0498321 | |
Entity Address, Address Line One | 14201 Caliber Drive, | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Oklahoma City, | |
Entity Address, State or Province | OK | |
City Area Code | (405) | |
Local Phone Number | 608-6007 | |
Entity Address, Postal Zip Code | 73134 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | TUSK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 47,184,065 | |
Entity Central Index Key | 0001679268 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,118 | $ 9,899 |
Short-term investment | 1,763 | 1,762 |
Accounts receivable, net | 411,931 | 407,550 |
Receivables from related parties, net | 313 | 88 |
Inventories | 10,358 | 8,366 |
Prepaid expenses | 9,086 | 12,381 |
Other current assets | 628 | 737 |
Total current assets | 442,197 | 440,783 |
Property, plant and equipment, net | 161,005 | 176,586 |
Sand reserves | 64,628 | 64,641 |
Operating lease right-of-use assets | 11,675 | 12,168 |
Intangible assets, net | 2,366 | 2,561 |
Goodwill | 11,717 | 11,717 |
Deferred income tax asset | 5,180 | 8,094 |
Other non-current assets | 3,679 | 4,342 |
Total assets | 702,447 | 720,892 |
CURRENT LIABILITIES | ||
Accounts payable | 38,780 | 37,560 |
Accrued expenses and other current liabilities | 55,750 | 62,516 |
Current operating lease liability | 5,710 | 5,942 |
Current portion of long-term debt | 1,486 | 1,468 |
Income taxes payable | 42,950 | 42,748 |
Total current liabilities | 144,676 | 150,234 |
Long-term debt, net of current portion | 87,458 | 85,240 |
Deferred income tax liabilities | 1,431 | 865 |
Long-term operating lease liability | 5,731 | 5,918 |
Asset retirement obligations | 3,943 | 3,720 |
Other long-term liabilities | 10,364 | 11,693 |
Total liabilities | 253,603 | 257,670 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 47,184,065 and 46,684,065 issued and outstanding at March 31, 2022 and December 31, 2021 | 472 | 467 |
Additional paid in capital | 538,457 | 538,221 |
Accumulated deficit | (87,352) | (72,535) |
Accumulated other comprehensive loss | (2,733) | (2,931) |
Total equity | 448,844 | 463,222 |
Total liabilities and equity | $ 702,447 | $ 720,892 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 47,184,065 | 46,684,065 |
Common stock, shares, outstanding (in shares) | 47,184,065 | 46,684,065 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
COST AND EXPENSES | ||
Selling, general and administrative | $ 8,668 | $ 17,831 |
Selling, general and administrative - related parties | 0 | 193 |
Depreciation, depletion, amortization and accretion | 17,167 | 21,146 |
Operating loss | (18,017) | (20,446) |
OTHER INCOME (EXPENSE) | ||
Interest expense, net | (2,349) | (1,225) |
Other income, net | 9,237 | 7,123 |
Other expense, net - related parties | 0 | (515) |
Total other income | 6,888 | 5,383 |
Loss before income taxes | (11,129) | (15,063) |
Provision (benefit) for income taxes | 3,688 | (2,623) |
Net loss | (14,817) | (12,440) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustment, net of tax of $0 and ($42), respectively, for the three months ended March 31, 2022 and 2021 | 198 | 168 |
Comprehensive loss | $ (14,619) | $ (12,272) |
Net (loss) income per share (basic) (in USD per share) | $ (0.32) | $ (0.27) |
Net (loss) income per share (diluted) (in USD per share) | $ (0.32) | $ (0.27) |
Weighted average number of shares outstanding (basic) (in shares) | 46,845 | 45,932 |
Weighted average number of shares outstanding (diluted) (in shares) | 46,845 | 45,932 |
Product And Service Including Related Party | ||
Revenues [Abstract] | ||
Revenue | $ 62,298 | $ 66,804 |
COST AND EXPENSES | ||
Total cost and expenses | 80,315 | 87,250 |
Services | ||
Revenues [Abstract] | ||
Revenue | 53,667 | 42,691 |
COST AND EXPENSES | ||
Cost of revenue | 46,567 | 42,062 |
Products | ||
Revenues [Abstract] | ||
Revenue | 8,357 | 6,982 |
COST AND EXPENSES | ||
Cost of revenue | 7,778 | 5,909 |
Related parties | ||
COST AND EXPENSES | ||
Selling, general and administrative - related parties | 0 | 193 |
Related parties | Services | ||
Revenues [Abstract] | ||
Revenue | 274 | 14,986 |
COST AND EXPENSES | ||
Cost of revenue | 135 | 109 |
Related parties | Products | ||
Revenues [Abstract] | ||
Revenue | $ 0 | $ 2,145 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Foreign currency translation adjustment, tax | $ 0 | $ (42) |
Services | ||
Cost of revenue, depreciation, depletion, amortization and accretion | 15,355 | 18,989 |
Products | ||
Cost of revenue, depreciation, depletion, amortization and accretion | 1,792 | 2,137 |
Related parties | Services | ||
Cost of revenue, depreciation, depletion, amortization and accretion | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retailed (Deficit) Earnings | Additional Paid-in Capital | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2020 | 45,769,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 563,327 | $ 458 | $ 28,895 | $ 537,039 | $ (3,065) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Stock based compensation (in shares) | 503,000 | ||||
Stock based compensation | 344 | $ 5 | 339 | ||
Net loss | (12,440) | (12,440) | |||
Other comprehensive income | 168 | 168 | |||
Ending balance (in shares) at Mar. 31, 2021 | 46,272,000 | ||||
Ending balance at Mar. 31, 2021 | $ 551,399 | $ 463 | 16,455 | 537,378 | (2,897) |
Beginning balance (in shares) at Dec. 31, 2021 | 46,684,065 | 46,684,000 | |||
Beginning balance at Dec. 31, 2021 | $ 463,222 | $ 467 | (72,535) | 538,221 | (2,931) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Stock based compensation (in shares) | 500,000 | ||||
Stock based compensation | 241 | $ 5 | 236 | ||
Net loss | (14,817) | (14,817) | |||
Other comprehensive income | $ 198 | 198 | |||
Ending balance (in shares) at Mar. 31, 2022 | 47,184,065 | 47,184,000 | |||
Ending balance at Mar. 31, 2022 | $ 448,844 | $ 472 | $ (87,352) | $ 538,457 | $ (2,733) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (14,817) | $ (12,440) | |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Stock based compensation | 241 | 344 | |
Depreciation, depletion, accretion and amortization | 17,167 | 21,146 | |
Amortization of debt origination costs | 186 | 142 | |
Bad debt (recoveries) expense | (99) | 10,125 | |
Gain on disposal of property and equipment | (593) | (615) | |
Deferred income taxes | 3,481 | (5,061) | |
Other | 535 | 558 | |
Changes in assets and liabilities: | |||
Accounts receivable, net | (3,898) | 23,437 | |
Receivables from related parties | (225) | (14,611) | |
Inventories | (1,992) | 664 | |
Prepaid expenses and other assets | 3,404 | 3,105 | |
Other current assets - related parties | 0 | (2,228) | |
Accounts payable | 1,041 | (4,285) | |
Accrued expenses and other liabilities | (7,013) | (8,516) | |
Income taxes payable | 201 | 2,469 | |
Net cash (used in) provided by operating activities | (2,381) | 14,234 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (1,182) | (1,148) | |
Proceeds from disposal of property and equipment | 1,038 | 1,457 | |
Net cash (used in) provided by investing activities | (144) | 309 | |
Cash flows from financing activities: | |||
Borrowings on long-term debt | 37,550 | 1,500 | |
Repayments of long-term debt | (35,317) | (15,617) | |
Payments on sale leaseback transaction | (868) | (330) | |
Principal payments on financing leases and equipment financing notes | (629) | (577) | |
Net cash provided by (used in) financing activities | 736 | (15,024) | |
Effect of foreign exchange rate on cash | 8 | 25 | |
Net change in cash and cash equivalents | (1,781) | (456) | |
Cash and cash equivalents at beginning of period | 9,899 | 14,822 | $ 14,822 |
Cash and cash equivalents at end of period | 8,118 | 14,366 | $ 9,899 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,754 | 1,093 | |
Cash paid for income taxes, net of refunds received | 6 | (32) | |
Supplemental disclosure of non-cash transactions: | |||
Purchases of property and equipment included in accounts payable and accrued expenses | $ 1,707 | $ 1,964 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Mammoth Energy Services, Inc. (“Mammoth Inc.”, “Mammoth” or the “Company”), together with its subsidiaries, is an integrated, growth-oriented company serving both the oil and gas and the electric utility industries in North America. Mammoth Inc.’s infrastructure division provides engineering, design, construction, upgrade, maintenance and repair services to various public and private owned utilities. Its oilfield services division provides a diversified set of services to the exploration and production industry including well completion, natural sand and proppant and drilling services. Additionally, the Company provides aviation services, equipment rentals, remote accommodation services and equipment manufacturing. The Company was incorporated in Delaware in June 2016. Operations The Company’s infrastructure services include engineering, design, construction, upgrade, maintenance and repair services to the electrical infrastructure industry as well as repair and restoration services in response to storms and other disasters. The Company’s well completion services include equipment and personnel used in connection with the completion and early production of oil and natural gas wells. The Company’s natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry. The Company’s drilling services provide drilling rigs and directional tools for both vertical and horizontal drilling of oil and natural gas wells. The Company also provides other services, including aviation, equipment rentals, remote accommodations and equipment manufacturing. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary. All material intercompany accounts and transactions have been eliminated. This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K. Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation. The Company adopted a new accounting policy related to the classification of certain legal expenses. For matters related to ongoing operations, the Company continues to present legal expense as selling, general and administrative. For matters determined to be unrelated to ongoing operations, the Company classifies the legal expenses according to the nature of the underlying matter. The Company believes that this new accounting policy will more accurately present legal expenses on its consolidated statement of comprehensive loss. The adoption of this policy resulted in the reclassification of approximately $2.8 million of legal expenses related to a certain legal settlement from Selling, general and administrative into Other, net on the unaudited condensed consolidated statement of comprehensive loss for the three months ended March 31, 2021. See Note 18 for additional information related to the Company’s legal matters. Accounts Receivable Accounts receivable include amounts due from customers for services performed or goods sold. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer’s risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Most areas in the continental United States in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. Interest on delinquent accounts receivable is recognized in other income when chargeable and collectability is reasonably assured. During the period October 2017 through March 2019, the Company provided infrastructure services in Puerto Rico under master services agreements entered into by Cobra Acquisitions LLC (“Cobra”), one of the Company’s subsidiaries, with the Puerto Rico Electric Power Authority (“PREPA”) to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria. During the three months ended March 31, 2022 and 2021, the Company charged interest on delinquent accounts receivable pursuant to the terms of its agreements with PREPA totaling $9.9 million and $8.7 million, respectively. These amounts are included in “other, net” on the unaudited condensed consolidated statement of comprehensive loss. Included in “accounts receivable, net” on the unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were interest charges of $120.7 million and $110.8 million, respectively. The Company regularly reviews receivables and provides for expected losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once a final determination is made regarding their collectability. Following is a roll forward of the allowance for doubtful accounts for the year ended December 31, 2021 and the three months ended March 31, 2022 (in thousands): Balance, January 1, 2021 $ 30,139 Additions charged to bad debt expense 41,873 Additions charged to revenue 27,071 Additions charged to other selling, general and administrative expense 273 Additions charged to other income (expense), net - related parties 515 Additions charged to other income (expense), net 1,474 Recoveries of receivables previously charged to bad debt expense (211) Deductions for uncollectible receivables written off (83,049) Balance, December 31, 2021 18,085 Additions charged to bad debt expense 50 Recoveries of receivables previously charged to bad debt expense (149) Deductions for uncollectible receivables written off (11,643) Balance, March 31, 2022 $ 6,343 The Company has made specific reserves consistent with Company policy which resulted in additions to allowance for doubtful accounts totaling a nominal amount and $0.7 million for the three months ended March 31, 2022 and year ended December 31, 2021, respectively. These additions were charged to bad debt expense based on the factors described above. Also, during the year ended December 31, 2021, the Company recorded additions to allowance for doubtful accounts of $0.3 million related to insurance claim receivables for its directors and officers liability policy. The Company will continue to pursue collection until such time as final determination is made consistent with Company policy. Gulfport The Company’s subsidiaries Stingray Pressure Pumping LLC (“Stingray Pressure Pumping”) and Muskie Proppant LLC (“Muskie”) were party to a pressure pumping contract and a sand supply contract, respectively, with Gulfport Energy Corporation (“Gulfport”). On November 13, 2020, Gulfport filed petitions for voluntary relief under chapter 11 of the Bankruptcy Code. See Notes 3 and 18 for additional information. Following is a roll forward of the allowance for doubtful accounts specifically related to Gulfport (in thousands): Balance, January 1, 2021 22,581 Additions charged to bad debt expense 41,196 Additions charged to revenue 27,070 Additions charged to other income (expense), net - related parties 1,842 Deductions for uncollectible receivables written off (80,975) Balance, December 31, 2021 $ 11,714 Recoveries of receivables previously charged to bad debt expense (147) Deductions for uncollectible receivables written off (11,567) Balance, March 31, 2022 $ — PREPA As of March 31, 2022, PREPA owed Cobra approximately $227.0 million for services performed, excluding $120.7 million of interest charged on these delinquent balances as of March 31, 2022. PREPA is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the U.S. District Court for the District of Puerto Rico. As a result, PREPA’s ability to meet its payment obligations is largely dependent upon funding from the Federal Emergency Management Agency (“FEMA”) or other sources. On September 30, 2019, Cobra filed a motion with the U.S. District Court for the District of Puerto Rico seeking recovery of the amounts owed to Cobra by PREPA, which motion was stayed by the Court. On March 25, 2020, Cobra filed an urgent motion to modify the stay order and allow the recovery of approximately $61.7 million in claims related to a tax gross-up provision contained in the emergency master service agreement, as amended, that was entered into with PREPA on October 19, 2017. This emergency motion was denied on June 3, 2020 and the Court extended the stay of our motion. On December 9, 2020, the Court again extended the stay of our motion and directed PREPA to file a status report by June 7, 2021. On April 6, 2021, Cobra filed a motion to lift the stay order. Following this filing, PREPA initiated discussion with Cobra, which resulted in PREPA and Cobra filing a joint motion to adjourn all deadlines relative to the April 6, 2021 motion until the June 16, 2021 omnibus hearing as a result of PREPA’s understanding that FEMA would be releasing a report in the near future relating to the emergency master service agreement between PREPA and Cobra that was executed on October 19, 2017. The joint motion was granted by the Court on April 14, 2021. On May 26, 2021, FEMA issued a Determination Memorandum related to the first contract between Cobra and PREPA in which, among other things, FEMA raised two contract compliance issues and, as a result, concluded that approximately $47 million in costs were not authorized costs under the contract. On June 14, 2021, the Court issued an order adjourning Cobra’s motion to lift the stay order to a hearing on August 4, 2021 and directing Cobra and PREPA to meet and confer in good faith concerning, among other things, (i) the May 26, 2021 Determination Memorandum issued by FEMA and (ii) whether and when a second determination memorandum is expected. The parties were further directed to file an additional status report, which was filed on July 20, 2021. On July 23, 2021, with the aid of Mammoth, PREPA filed an appeal of the entire $47 million that FEMA de-obligated in the May 26, 2021 Determination Memorandum. The appeal is currently pending. On August 4, 2021, the Court denied Cobra ’ s April 6, 2021 motion to lift the stay order, extended the stay of our motion seeking recovery of amounts owed to Cobra and directed the parties to file an additional joint status report, which was filed on January 22, 2022. On January 26, 2022, the Court extended the stay and directed the parties to file a further status report by July 25, 2022. The Company believes all amounts charged to PREPA, including interest charged on delinquent accounts receivable, were in accordance with the terms of the contracts. Further, there have been multiple reviews prepared by or on behalf of FEMA that have concluded that the amounts Cobra charged PREPA were reasonable, that PREPA adhered to Puerto Rican legal statutes regarding emergency situations, and that PREPA engaged in a reasonable procurement process. As noted above, in May 2021 FEMA raised two contract compliance issues and concluded that $47 million in costs were not eligible under the contract. PREPA, however, has filed an appeal of the entire $47 million, which is currently pending. The Company believes these receivables are collectible and no allowance was deemed necessary at March 31, 2022 or December 31, 2021. However, in the event PREPA (i) does not have or does not obtain the funds necessary to satisfy its obligations to Cobra under the contracts, (ii) obtains the necessary funds but refuses to pay the amounts owed to the Company or (iii) otherwise does not pay amounts owed to the Company for services performed, the receivable may not be collectible. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. Following is a summary of our significant customers based on percentages of total accounts receivable balances at March 31, 2022 and December 31, 2021 and percentages of total revenues derived for the three months ended March 31, 2022 and 2021: REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2022 2021 2022 2021 Customer A (a) — % — % 84 % 83 % Customer B (b) 25 % — % 2 % — % Customer C (c) 5 % 11 % 1 % 1 % Customer D (d) — % 10 % — % — % Customer E (e) — % 25 % — % — % a. Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company’s infrastructure services segment. Accounts receivable for Customer A also includes receivables due for interest charged on delinquent accounts receivable. b. Customer B is a third-party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company’s well completion services segment. c. Customer C is a third-party customer. Revenues and the related accounts receivable balances earned from Customer C were derived from the Company’s infrastructure services segment. d. Customer D is a third-party customer. Revenues and the related accounts receivable balances earned from Customer D were derived from the Company’s well completion services segment and equipment rental business. e. Customer E was a related-party customer until June 29, 2021. Revenues earned from this customer prior to June 29, 2021 are included in services revenue - related parties and product revenue - related parties on the unaudited condensed consolidated statements of comprehensive loss. Revenues and the related accounts receivable balances earned from Customer E were derived from the Company’s well completion services segment, natural sand proppant services segment and other businesses. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, trade payables, amounts receivable or payable to related parties and long-term debt. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. The fair value of long-term debt approximates its carrying value because the cost of borrowing fluctuates based upon market conditions. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s primary revenue streams include infrastructure services, well completion services, natural sand proppant services, drilling services and other services, which includes aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing. See Note 19 for the Company’s revenue disaggregated by type. Certain of the Company’s customer contracts include provisions entitling the Company to a termination penalty when the customer invokes its contractual right to terminate prior to the contract’s nominal end date. The termination penalties in the customer contracts vary, but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification in the period in which the customer invokes the termination provision. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. As of the modification date, the Company updates its estimate of the transaction price using the expected value method, subject to constraints, and recognizes the amount over the remaining performance period. Infrastructure Services Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work. Well Completion Services Well completion services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for well completion services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Generally, revenue is recognized over time upon the completion of each segment of work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location, consumable supplies and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods are consumed and services are performed. Pursuant to a contract with Gulfport, Stingray Pressure Pumping agreed to provide Gulfport with use of up to two pressure pumping fleets for the period covered by the contract. Under this agreement, performance obligations were satisfied as services were rendered based on the passage of time rather than the completion of each segment of work. Stingray Pressure Pumping had the right to receive consideration from this customer even if circumstances prevent us from performing work. All consideration owed to Stingray Pressure Pumping for services performed during the contractual period was fixed and the right to receive it was unconditional. On December 28, 2019, Gulfport filed a legal action in Delaware state court seeking the termination of this contract and monetary damages. Further, on November 13, 2020, Gulfport filed petitions for voluntary relief under chapter 11 of the Bankruptcy Code. On March 22, 2021, Gulfport listed the Stingray Pressure Pumping contract on its master rejection schedule filed with the bankruptcy court. The Company determined that these factors changed the scope of the contract, accelerated the duration of, and otherwise changed the rights and obligations of each party to the contract. As a result, the Company accounted for this as a contract modification during the three months ended March 31, 2021. Stingray Pressure Pumping used the expected value method to estimate unliquidated damages totaling $37.9 million, which resulted in the recognition of net revenue totaling $14.8 million and bad debt expense of $2.9 million on previously recognized revenue during the three months ended March 31, 2021. On September 21, 2021, the Company and Gulfport reached a settlement under which all litigation relating to the Stingray Pressure Pumping contract was terminated. Stingray Pressure Pumping released all claims against Gulfport and its subsidiaries with respect to Gulfport’s bankruptcy proceedings and each of the parties released all claims they had against the others with respect to the litigation matters discussed in Note 18. As a result of this settlement agreement, for the three months ended September 30, 2021, the Company wrote off its remaining receivable related to the Stingray Pressure Pumping claim resulting in bad debt expense and other expense of $31.0 million and $1.3 million, respectively. Gulfport was a related party until June 29, 2021. On June 29, 2021, pursuant to the terms of its plan of reorganization, all of the Company’s shares that Gulfport owned were transferred to a trust for the benefit of certain of Gulfport’s creditors. The revenue recognized related to this agreement is included in “services revenue - related parties” in the accompanying unaudited condensed consolidated statement of comprehensive loss. See Notes 11 and 18 below. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal. Certain of the Company’s sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. As of March 31, 2022, the Company had deferred revenue totaling $3.0 million related to shortfall payments. This amount is included in “accrued expenses and other current liabilities” on the unaudited condensed consolidated balance sheet. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer’s inability to take delivery of excess volumes. The Company recognized shortfall revenue totaling $4.9 million during the three months ended March 31, 2021. No shortfall revenue was recognized during the three months ended March 31, 2022. In certain of the Company’s sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities. Pursuant to its contract with Gulfport, Muskie agreed to sell and deliver specified amounts of sand to Gulfport. In September 2020, Muskie filed a lawsuit against Gulfport to recover delinquent payments due under this agreement. On November 13, 2020, Gulfport filed petitions for voluntary relief under chapter 11 of the Bankruptcy Code. On March 22, 2021, Gulfport listed the Muskie contract on its master rejection schedule filed with the bankruptcy court. The Company determined that these factors changed the scope of the contract, accelerated the duration of, and otherwise changed the rights and obligations of each party to the contract. As a result, the Company accounted for this as a contract modification during the three months ended March 31, 2021. Muskie used the expected value method to estimate unliquidated damages totaling $8.5 million, which resulted in the recognition of net revenue totaling $2.1 million and bad debt expense of $1.0 million on previously recognized revenue during the three months ended March 31, 2021. On September 21, 2021, the Company and Gulfport reached a settlement under which all litigation relating to the Muskie contract was terminated, each of the parties released all claims they had against the others with respect to the litigation matters discussed in Note 18 and Muskie’s contract claim against Gulfport would be allowed under Gulfport’s plan of reorganization in the amount of $3.1 million. As a result of this settlement agreement, Muskie recognized bad debt expense of $0.2 million during the third quarter of 2021. Gulfport was a related party until June 29, 2021. The revenue recognized related to this agreement is included in “product revenue - related parties” in the accompanying unaudited condensed consolidated statement of comprehensive loss and the related accounts receivable is included in “accounts receivable, net” in the unaudited condensed consolidated balance sheets as of December 31, 2021. See Notes 11 and 18 below. Drilling Services Contract drilling services were provided under daywork contracts. Directional drilling services, including motor rentals, are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs were recognized over the days of actual drilling. As a result of market conditions, the Company temporarily shut down its contract land drilling operations beginning in December 2019 and rig hauling operations beginning in April 2020. Other Services During the periods presented, the Company also provided aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing, which are reported under other services. As a result of market conditions, the Company temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019, its coil tubing, pressure control and full service transportation operations beginning in July 2020 and its crude oil hauling operations beginning in July 2021. The Company’s other services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation. Contract Balances Following is a rollforward of the Company’s contract liabilities (in thousands): Balance, December 31, 2020 $ 8,281 Deduction for recognition of revenue (12,329) Increase for deferral of shortfall payments 7,023 Increase for deferral of customer prepayments 275 Balance, December 31, 2021 3,250 Deduction for recognition of revenue (67) Deduction for rebate credit recognized (140) Increase for deferral of customer prepayments 126 Balance, March 31, 2022 $ 3,169 The Company did not have any contract assets as of March 31, 2022, December 31, 2021 or December 31, 2020. Performance Obligations |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or net realizable value on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage, future utility, obsolescence and other factors. A summary of the Company’s inventories is shown below (in thousands): March 31, December 31, 2022 2021 Supplies $ 8,216 $ 4,557 Raw materials 700 701 Work in process 1,069 2,435 Finished goods 373 673 Total inventories $ 10,358 $ 8,366 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment include the following (in thousands): March 31, December 31, Useful Life 2022 2021 Pressure pumping equipment 3-5 years $ 220,959 $ 220,414 Drilling rigs and related equipment 3-15 years 111,334 111,478 Machinery and equipment 7-20 years 166,483 166,873 Buildings (a) 15-39 years 46,286 46,006 Vehicles, trucks and trailers 5-10 years 103,630 103,982 Coil tubing equipment 4-10 years 7,592 7,592 Land N/A 13,377 13,417 Land improvements 15 years or life of lease 10,133 10,133 Rail improvements 10-20 years 13,793 13,793 Other property and equipment (b) 3-12 years 18,470 18,235 712,057 711,923 Deposits on equipment and equipment in process of assembly (c) 3,464 3,300 715,521 715,223 Less: accumulated depreciation (d) 554,516 538,637 Total property, plant and equipment, net $ 161,005 $ 176,586 a. Included in Buildings at each of March 31, 2022 and December 31, 2021 are costs of $7.6 million related to assets under operating leases. b. Included in Other property and equipment at each of March 31, 2022 and December 31, 2021 are costs of $6.0 million related to assets under operating leases. c. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service. d. Includes accumulated depreciation of $7.0 million and $6.6 million at March 31, 2022 and December 31, 2021, respectively, related to assets under operating leases. Disposals Proceeds from customers for horizontal and directional drilling services equipment damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the unaudited condensed consolidated statement of cash flows. For the three months ended March 31, 2022, proceeds and gains from the sale of equipment damaged or lost down-hole were $0.4 million and $0.4 million, respectively. The Company did not have any proceeds or gains from the sale of equipment damaged or lost down-hole during the three months ended March 31, 2021. Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “other income, net” on the unaudited condensed consolidated statement of comprehensive loss. For the three months ended March 31, 2022 and 2021, proceeds from the sale of equipment were $0.6 million and $1.5 million, respectively, and gains from the sale or disposal of equipment were $0.2 million and $0.6 million, respectively. Depreciation, depletion, amortization and accretion A summary of depreciation, depletion, amortization and accretion expense is below (in thousands): Three Months Ended March 31, 2022 2021 Depreciation expense $ 16,925 $ 20,856 Amortization expense 195 253 Accretion and depletion expense 47 37 Depreciation, depletion, amortization and accretion $ 17,167 $ 21,146 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Changes in the net carrying amount of goodwill by reporting segment (see Note 19) for the three months ended March 31, 2022 and year ended December 31, 2021 are presented below (in thousands): Infrastructure Well Completion Sand Other Total Balance as of January 1, 2021 Goodwill $ 891 $ 86,043 $ 2,684 $ 14,830 $ 104,448 Accumulated impairment losses — (76,829) (2,684) (12,327) (91,840) 891 9,214 — 2,503 12,608 Acquisitions — — — — — Impairment losses (891) — — — (891) Balance as of December 31, 2021 Goodwill 891 86,043 2,684 14,830 104,448 Accumulated impairment losses (891) (76,829) (2,684) (12,327) (92,731) — 9,214 — 2,503 11,717 Acquisitions — — — — — Impairment losses — — — — — Balance as of March 31, 2022 Goodwill 891 86,043 2,684 14,830 104,448 Accumulated impairment losses (891) (76,829) (2,684) (12,327) (92,731) $ — $ 9,214 $ — $ 2,503 $ 11,717 The Company performed the qualitative assessment described above during the fourth quarter of 2021. Based on this assessment, the Company concluded that it was more likely than not that the fair value of the Stingray Pressure Pumping, Silverback and Aviation reporting units was greater than their carrying value. Accordingly, no further testing was required on these units. Additionally, the Company concluded that the carrying value for its infrastructure reporting unit was greater than its fair value. To determine fair value of the infrastructure reporting unit at December 31, 2021, the Company used the income approach. The income approach estimates the fair value based on anticipated cash flows that are discounted using a weighted average cost of capital. As a result, the Company impaired goodwill associated with 5 Star and Higher Power, resulting in a $0.9 million impairment charge for 2021. The Company did not recognize any goodwill impairment during the three months ended March 31, 2022. Intangible Assets The Company had the following definite lived intangible assets recorded (in thousands): March 31, December 31, 2022 2021 Trade names 7,850 7,850 Less: accumulated amortization - trade names (5,484) (5,289) Intangible assets, net $ 2,366 $ 2,561 Amortization expense for intangible assets was $0.2 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively. The original life of trade names ranges from 10 to 20 years as of March 31, 2022 with a remaining average useful life of 3.8 years. Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands): Remainder of 2022 $ 584 2023 779 2024 711 2025 91 2026 91 Thereafter 110 $ 2,366 |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method InvestmentOn December 21, 2018, Cobra Aviation Services LLC (“Cobra Aviation”) and Wexford Partners Investment Co. LLC (“Wexford Investment”), a related party, formed a joint venture under the name of Brim Acquisitions LLC (“Brim Acquisitions”) to acquire all outstanding equity interest in Brim Equipment Leasing, Inc. (“Brim Equipment”) for a total purchase price of approximately $2.0 million. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Brim Acquisitions, through Brim Equipment, owns four commercial helicopters and leases five commercial helicopters for operations, which it uses to provide a variety of services, including short haul, aerial ignition, hoist operations, aerial photography, fire suppression, construction services, animal/capture/survey, search and rescue, airborne law enforcement, power line construction, precision long line operations, pipeline construction and survey, mineral and seismic exploration, and aerial seeding and fertilization.The Company uses the equity method of accounting to account for its investment in Brim Acquisitions, which had a carrying value of approximately $2.8 million and $3.4 million at March 31, 2022 and December 31, 2021, respectively. The investment is included in “other non-current assets” on the unaudited condensed consolidated balance sheets. The Company recorded equity method adjustments to its investment of ($0.5) million and ($0.6) million for the three months ended March 31, 2022 and 2021, respectively, which is included in “other income, net” on the unaudited condensed consolidated statements of comprehensive loss. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities | Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities Accrued expenses and other current liabilities and other long-term liabilities included the following (in thousands): March 31, December 31, 2022 2021 Accrued legal settlement (a) $ 19,334 $ 18,966 State and local taxes payable 12,879 13,772 Financed insurance premiums (b) 6,584 9,852 Deferred revenue 3,169 3,250 Sale-leaseback liability (c) 3,413 3,340 Accrued compensation and benefits 2,977 5,133 Payroll tax liability 2,052 2,810 Financing leases 1,851 1,834 Insurance reserves 1,237 1,413 Other 2,254 2,146 Total accrued expenses and other current liabilities $ 55,750 $ 62,516 Other Long-Term Liabilities Financing leases $ 3,906 $ 4,375 Sale-leaseback liability (c) 6,458 7,318 Total other long-term liabilities $ 10,364 $ 11,693 a. In June 2021, the Company reached an agreement to settle a certain legal matter. See Note 18 for additional detail. b. Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year. As of March 31, 2022 and December 31, 2021, the applicable interest rate associated with financed insurance premiums ranged from 1.95% to 2.45%. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt included the following (in thousands): March 31, December 31, 2022 2021 Revolving credit facility $ 85,967 $ 83,370 Aviation note 3,006 3,371 Unamortized debt issuance costs (29) (33) Total debt 88,944 86,708 Less: current portion 1,486 1,468 Total long-term debt $ 87,458 $ 85,240 Mammoth Credit Facility On October 19, 2018, Mammoth Inc. and certain of its direct and indirect subsidiaries, as borrowers, entered into an amended and restated revolving credit and security agreement with the lenders party thereto and PNC Bank, National Association, as a lender and as administrative agent for the lenders, as amended and restated (the “revolving credit facility”). The revolving credit facility matures on October 19, 2023. Borrowings under the revolving credit facility are secured by the assets of Mammoth Inc., inclusive of the subsidiary companies, and are subject to a borrowing base calculation prepared monthly. The revolving credit facility also contains various customary affirmative and restrictive covenants. At March 31, 2022, there were outstanding borrowings under the revolving credit facility of $86.0 million and $11.5 million of available borrowing capacity under the facility, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $7.5 million reserve out of the available borrowing capacity. At December 31, 2021, there were outstanding borrowings under the revolving credit facility of $83.4 million and $16.5 million of borrowing capacity under the facility, after giving effect to $9.0 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. As a result of the lack of payment from PREPA, the Company projected that it would likely breach the leverage ratio covenant contained in its revolving credit facility for the fiscal quarter ended September 30, 2021. On November 3, 2021, the Company entered into a third amendment to its revolving credit facility (the “Third Amendment”) to, among other things, (i) suspend the leverage ratio and fixed charges coverage ratio covenants for the quarters ending September 30, 2021 and December 31, 2021, (ii) permanently reduce the maximum revolving advance amount from $130 million to $120 million, (iii) add a minimum adjusted EBITDA financial covenant of $6.0 million for the quarter ending December 31, 2021, (iv) set the applicable margin on all loans at 3.50% during the limited covenant waiver period, (v) add a requirement to maintain revolver availability of not less than $10.0 million at all times during the limited covenant waiver period, (vi) permanently reduce the maximum revolving advance amount in an amount equal to fifty percent (50%) of any mandatory prepayments made with non-recurring proceeds that are received during the limited covenant waiver period, and (vii) eliminate the declaration of unrestricted subsidiaries during the limited covenant waiver period. The limited covenant waiver period commenced on the effective date of the Third Amendment and was scheduled to end on the earlier to occur of (i) May 15, 2022, (ii) the Company reporting compliance with both the leverage ratio and the fixed charge coverage ratio covenants for either its fiscal quarter ending September 30, 2021 or December 31, 2021, and (iii) the occurrence of any event of default after the effective date of the Third Amendment. Under the Third Amendment, the Company also agreed to engage an advisor during the limited covenant waiver period to advise the Company and its subsidiaries with regard to, among other things, efforts to achieve certain operation efficiencies, improvement in results of operations, and general business strategy, and provide assistance to the Company and its subsidiaries in the preparation of the supplemental reporting and information required by the Third Amendment. On February 28, 2022, the Company entered into a fourth amendment to the revolving credit facility (the “Fourth Amendment”) to, among other things, (i) amend the financial covenants as outlined below, (ii) provide for a conditional increase of the applicable interest margin, (iii) permit certain sale-leaseback transactions, (iv) provide for a reduction in the maximum revolving advance amount in an amount equal to 50% of the PREPA claims proceeds, subject to a floor equal to the sum of eligible billed and unbilled accounts receivables, and (v) classifies the payments pursuant to the Company ’ s settlement agreement with MasTec Renewables Puerto Rico, LLC (“MasTec”) as restricted payments and requires $20.0 million of availability both before and after making such payments. The financial covenants under our revolving credit facility were amended as follows: • the leverage ratio was eliminated; • the fixed charge coverage ratio was reduced to .85 to 1.0 for the six months ended June 30, 2022 and increases to 1.1 to 1.0 for the periods thereafter; • a minimum adjusted EBITDA covenant of $4.7 million, excluding interest on accounts receivable from PREPA, for the five months ending May 31, 2022 was added; and • the minimum excess availability covenant was reduced to $7.5 million through March 31, 2022, after which the minimum excess availability covenant increased to $10.0 million. The Fourth Amendment also permanently waived compliance by the borrowers with the leverage ratio and fixed charge coverage ratio covenants in the revolving credit facility for the fiscal quarters ended September 30, 2021 and December 31, 2021, respectively, ending the limited covenant waiver period under the Third Amendment. The Company was in compliance with the applicable financial covenants under the revolving credit facility as of March 31, 2022. As of May 5, 2022, there were outstanding borrowings under the revolving credit facility of $84.7 million and $10.3 million of available borrowing capacity, after giving effect to $7.5 million of outstanding letters of credit and the requirement to maintain a $10.0 million reserve out of the available borrowing capacity. If an event of default occurs under the revolving credit facility and remains uncured, it could have a material adverse effect on the Company’s business, financial condition, liquidity and results of operations. The lenders (i) would not be required to lend any additional amounts to the Company, (ii) could elect to increase the interest rate by 200 basis points, (iii) could elect to declare all outstanding borrowings, together with accrued and unpaid interest and fees, to be due and payable, (iv) may have the ability to require the Company to apply all of its available cash to repay outstanding borrowings, and (v) may foreclose on substantially all of the Company’s assets. Aviation Note On November 6, 2020, Leopard Aviation LLC (“Leopard”) and Cobra Aviation entered into a 39 month promissory note agreement with Bank7 (the “Aviation Note”) in an aggregate principal amount of $4.6 million and received net proceeds of $4.5 million. The Aviation Note bears interest at a rate based on the Wall Street Journal Prime Rate plus a margin of 1%. Principal and interest payments of $0.1 million are due monthly, with a final payment of $0.2 million due on February 1, 2024. The Aviation Note is collateralized by Leopard and Cobra Aviation’s assets, including a $1.8 million certificate of deposit. The Aviation Note contains various customary affirmative and restrictive covenants. As of March 31, 2022, the Company did not meet the minimum debt coverage ratio of 1.25 to 1.0 set forth in the Aviation Note. On May 4, 2022, Bank7 granted the Company a waiver of this event of default. The waiver extended the minimum cash requirement until September 30, 2022 and reduced the amount of the minimum cash requirement from $0.75 million to $0.6 million. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Dire Wolf Energy Services LLC (“Dire Wolf”) and Predator Aviation LLC (“Predator Aviation”), wholly owned subsidiaries of the Company, are party to Voting Trust Agreements with TVPX Aircraft Solutions Inc. (the “Voting Trustee”). Under the Voting Trust Agreements, Dire Wolf transferred 100% of its membership interest in Cobra Aviation and Predator Aviation transferred 100% of its membership interest in Leopard to the respective Voting Trustees in exchange for Voting Trust Certificates. Dire Wolf and Predator Aviation retained the obligation to absorb all expected returns or losses of Cobra Aviation and Leopard. Prior to the transfer of the membership interest to the Voting Trustee, Cobra Aviation was a wholly owned subsidiary of Dire Wolf and Leopard was a wholly owned subsidiary of Predator Aviation. Cobra Aviation owns two helicopters and support equipment, 100% of the equity interest in Air Rescue Systems Corporation (“ARS”) and 49% of the equity interest in Brim Acquisitions. Leopard owns one helicopter. Dire Wolf and Predator Aviation entered into the Voting Trust Agreements in order to meet certain registration requirements. Dire Wolf’s and Predator Aviation’s voting rights are not proportional to their respective obligations to absorb expected returns or losses of Cobra Aviation and Leopard, respectively, and all of Cobra Aviation’s and Leopard’s activities are conducted on behalf of Dire Wolf and Predator Aviation, which have disproportionately fewer voting rights; therefore, Cobra Aviation and Leopard meet the criteria of a VIE. Cobra Aviation and Leopard’s operational activities are directed |
Selling, General and Administra
Selling, General and Administrative Expense | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Selling, General and Administrative Expense | Selling, General and Administrative Expense Selling, general and administrative (“SG&A”) expense includes of the following (in thousands): Three Months Ended March 31, 2022 2021 Cash expenses: Compensation and benefits $ 2,983 $ 4,694 Professional services (a) 3,637 581 Other (b) 1,906 2,342 Total cash SG&A expense 8,526 7,617 Non-cash expenses: Bad debt provision (c) (99) 10,125 Stock based compensation 241 282 Total non-cash SG&A expense 142 10,407 Total SG&A expense $ 8,668 $ 18,024 a. Certain legal expenses totaling $2.8 million were reclassified to Other, net for the three months ended March 31, 2021. The increase in professional fees is primarily due to an increase in legal expenses for matters related to ongoing operations. b. Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $3.7 million for the three months ended March 31, 2022 compared to income tax benefit of $2.6 million for the three months ended March 31, 2021. The Company’s effective tax rates were 33% and 17% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rates for the three months ended March 31, 2022 and 2021 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico as well as changes in the valuation allowance. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessee Accounting The Company recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Lease expense consisted of the following for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Operating lease expense $ 1,747 $ 2,462 Short-term lease expense 36 238 Finance lease expense: Amortization of right-of-use assets 403 388 Interest on lease liabilities 49 51 Total lease expense $ 2,235 $ 3,139 Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 is as follows (in thousands): March 31, December 31, 2022 2021 Operating leases: Operating lease right-of-use assets $ 11,675 $ 12,168 Current operating lease liability 5,710 5,942 Long-term operating lease liability 5,731 5,918 Finance leases: Property, plant and equipment, net $ 5,663 $ 6,065 Accrued expenses and other current liabilities 1,851 1,834 Other liabilities 3,906 4,375 Other supplemental information related to leases for the three months ended March 31, 2022 and 2021 and as of March 31, 2022 and December 31, 2021 is as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,672 $ 2,489 Operating cash flows from finance leases 49 51 Financing cash flows from finance leases 452 406 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,383 $ 77 Finance leases — 72 March 31, December 31, 2022 2021 Weighted-average remaining lease term: Operating leases 3.1 years 3.1 years Finance leases 3.1 years 3.3 years Weighted-average discount rate: Operating leases 3.3 % 3.3 % Finance leases 3.3 % 3.3 % Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2022 $ 4,698 $ 1,503 2023 4,028 2,262 2024 2,042 965 2025 784 524 2026 146 795 Thereafter 407 — Total lease payments 12,105 6,049 Less: Present value discount 664 292 Present value of lease payments $ 11,441 $ 5,757 Lessor Accounting Certain of the Company’s agreements with its customers for drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. |
Leases | Leases Lessee Accounting The Company recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Lease expense consisted of the following for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Operating lease expense $ 1,747 $ 2,462 Short-term lease expense 36 238 Finance lease expense: Amortization of right-of-use assets 403 388 Interest on lease liabilities 49 51 Total lease expense $ 2,235 $ 3,139 Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 is as follows (in thousands): March 31, December 31, 2022 2021 Operating leases: Operating lease right-of-use assets $ 11,675 $ 12,168 Current operating lease liability 5,710 5,942 Long-term operating lease liability 5,731 5,918 Finance leases: Property, plant and equipment, net $ 5,663 $ 6,065 Accrued expenses and other current liabilities 1,851 1,834 Other liabilities 3,906 4,375 Other supplemental information related to leases for the three months ended March 31, 2022 and 2021 and as of March 31, 2022 and December 31, 2021 is as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,672 $ 2,489 Operating cash flows from finance leases 49 51 Financing cash flows from finance leases 452 406 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,383 $ 77 Finance leases — 72 March 31, December 31, 2022 2021 Weighted-average remaining lease term: Operating leases 3.1 years 3.1 years Finance leases 3.1 years 3.3 years Weighted-average discount rate: Operating leases 3.3 % 3.3 % Finance leases 3.3 % 3.3 % Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2022 $ 4,698 $ 1,503 2023 4,028 2,262 2024 2,042 965 2025 784 524 2026 146 795 Thereafter 407 — Total lease payments 12,105 6,049 Less: Present value discount 664 292 Present value of lease payments $ 11,441 $ 5,757 Lessor Accounting Certain of the Company’s agreements with its customers for drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. |
Leases | Leases Lessee Accounting The Company recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company’s operating leases are primarily for rail cars, real estate, and equipment and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of the Company’s leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component. The rate implicit in the Company’s leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Lease expense consisted of the following for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Operating lease expense $ 1,747 $ 2,462 Short-term lease expense 36 238 Finance lease expense: Amortization of right-of-use assets 403 388 Interest on lease liabilities 49 51 Total lease expense $ 2,235 $ 3,139 Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 is as follows (in thousands): March 31, December 31, 2022 2021 Operating leases: Operating lease right-of-use assets $ 11,675 $ 12,168 Current operating lease liability 5,710 5,942 Long-term operating lease liability 5,731 5,918 Finance leases: Property, plant and equipment, net $ 5,663 $ 6,065 Accrued expenses and other current liabilities 1,851 1,834 Other liabilities 3,906 4,375 Other supplemental information related to leases for the three months ended March 31, 2022 and 2021 and as of March 31, 2022 and December 31, 2021 is as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,672 $ 2,489 Operating cash flows from finance leases 49 51 Financing cash flows from finance leases 452 406 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,383 $ 77 Finance leases — 72 March 31, December 31, 2022 2021 Weighted-average remaining lease term: Operating leases 3.1 years 3.1 years Finance leases 3.1 years 3.3 years Weighted-average discount rate: Operating leases 3.3 % 3.3 % Finance leases 3.3 % 3.3 % Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2022 $ 4,698 $ 1,503 2023 4,028 2,262 2024 2,042 965 2025 784 524 2026 146 795 Thereafter 407 — Total lease payments 12,105 6,049 Less: Present value discount 664 292 Present value of lease payments $ 11,441 $ 5,757 Lessor Accounting Certain of the Company’s agreements with its customers for drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share Reconciliations of the components of basic and diluted net loss per common share are presented in the table below (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Basic loss per share: Allocation of loss: Net loss $ (14,817) $ (12,440) Weighted average common shares outstanding 46,845 45,932 Basic loss per share $ (0.32) $ (0.27) Diluted loss per share: Allocation of loss: Net loss $ (14,817) $ (12,440) Weighted average common shares, including dilutive effect (a) 46,845 45,932 Diluted loss per share $ (0.32) $ (0.27) |
Equity Based Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity Based Compensation | Equity Based Compensation Upon formation of certain operating entities by Wexford and Gulfport, specified members of management (the “Specified Members”) and certain non-employee members (the “Non-Employee Members”) were granted the right to receive distributions from the operating entities after the contribution member’s unreturned capital balance was recovered (referred to as “Payout” provision). On November 24, 2014, the awards were modified in conjunction with the contribution of the operating entities to Mammoth. These awards were not granted in limited or general partner units. The awards are for interests in the distributable earnings of the members of MEH Sub, Mammoth’s majority equity holder. On the closing date of Mammoth Inc.’s initial public offering (“IPO”), the unreturned capital balance of Mammoth’s majority equity holder was not fully recovered from its sale of common stock in the IPO. As a result, Payout did not occur and no compensation cost was recorded. Payout for the remaining awards is expected to occur as the contribution member’s unreturned capital balance is recovered from additional sales by MEH Sub of its shares of the Company’s common stock or from dividend distributions, which is not considered probable until the event occurs. For the Specified Member awards, the unrecognized amount, which represents the fair value of the award as of the modification dates or grant date, was $5.6 million. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation The 2016 Plan authorizes the Company’s Board of Directors or the compensation committee of the Company’s Board of Directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards. There are 4.5 million shares of common stock reserved for issuance under the 2016 Plan. Restricted Stock Units The fair value of restricted stock unit awards was determined based on the fair market value of the Company’s common stock on the date of the grant. This value is amortized over the vesting period. A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below. Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value Unvested shares as of January 1, 2021 1,914,782 $ 1.21 Granted 128,205 3.90 Vested (914,782) 1.52 Forfeited — — Unvested shares as of December 31, 2021 1,128,205 1.27 Granted — — Vested (500,000) 0.93 Forfeited — — Unvested shares as of March 31, 2022 628,205 $ 1.54 As of March 31, 2022, there was $0.5 million of total unrecognized compensation cost related to the unvested restricted stock. The cost is expected to be recognized over a weighted average period of approximately 0.8 years. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions between the subsidiaries of the Company, including Stingray Pressure Pumping, Muskie, Stingray Energy Services LLC (“SR Energy”), Panther Drilling Systems LLC (“Panther Drilling”), Anaconda Manufacturing LLC (“Anaconda”), Cobra Aviation, ARS and Leopard and the following companies are included in Related Party Transactions: Gulfport, Wexford, Grizzly Oil Sands ULC (“Grizzly”), El Toro Resources LLC (“El Toro”), Elk City Yard LLC (“Elk City Yard”), Double Barrel Downhole Technologies LLC (“DBDHT”), Caliber Investment Group LLC (“Caliber”) and Brim Equipment. Following is a summary of related party transactions (in thousands): Three Months Ended March 31, At March 31, At December 31, 2022 2021 2022 2021 REVENUES ACCOUNTS RECEIVABLE Stingray Pressure Pumping and Gulfport (a) $ — $ 14,812 $ — $ — Muskie and Gulfport (b) — 2,145 — — Cobra Aviation/ARS/Leopard and Brim Equipment (c) 60 43 95 85 Panther and El Toro (d) 214 131 214 — Other Relationships — — 4 3 $ 274 $ 17,131 $ 313 $ 88 OTHER ACCOUNTS RECEIVABLE Stingray Pressure Pumping and Gulfport (a) $ — $ (514) $ — $ — Muskie and Gulfport (b) — (1) — — $ — $ (515) $ — $ — $ 313 $ 88 a. Stingray Pressure Pumping provided pressure pumping, stimulation and related completion services to Gulfport. Other amount represents interest charged on delinquent accounts receivable related to these services. On June 29, 2021, Gulfport ceased to be a related party. See Note 3. b. Muskie agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. Other amount represents interest charged on delinquent accounts receivable related to this agreement. On June 29, 2021, Gulfport ceased to be a related party. See Note 3. c. Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. d. Panther provides directional drilling services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. Three Months Ended March 31, At March 31, At December 31, 2022 2021 2022 2021 COST OF REVENUE ACCOUNTS PAYABLE Cobra Aviation/ARS/Leopard and Brim Equipment (a) $ 19 $ 19 $ 4 $ 5 The Company and Caliber (b) 89 64 — — Other Relationships 27 26 — — $ 135 $ 109 $ 4 $ 5 SELLING, GENERAL AND ADMINISTRATIVE COSTS The Company and Caliber (b) $ — $ 185 $ — $ — Other — 8 2 — $ — $ 193 $ 2 $ — a. Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. b. Caliber, an entity controlled by Wexford, leases office space to the Company. On December 21, 2018, Cobra Aviation acquired all outstanding equity interest in ARS and purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment. Following these transactions, and also on December 21, 2018, Cobra Aviation formed a joint venture with Wexford Investments named Brim Acquisitions to acquire all outstanding equity interests in Brim Equipment. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions’ initial capital of $2.0 million. Wexford Investments is an entity controlled by Wexford, which owns approximately 48% of the Company’s outstanding common stock. ARS leases a helicopter to Brim Equipment and Cobra Aviation leases the two helicopters purchased as part of these transactions to Brim Equipment under the terms of aircraft lease and management agreements. See Note 7 for further discussion. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has entered into agreements with suppliers that contain minimum purchase obligations and agreements to purchase capital equipment. Aggregate future minimum payments under these obligations in effect at March 31, 2022 were approximately $2.8 million. Letters of Credit The Company has various letters of credit that were issued under the Company’s revolving credit agreement which is collateralized by substantially all of the assets of the Company. The letters of credit are categorized below (in thousands): March 31, December 31, 2022 2021 Environmental remediation $ 3,694 $ 3,694 Insurance programs 3,389 3,890 Rail car commitments 455 455 Bonding program — 1,000 Total letters of credit $ 7,538 $ 9,039 Insurance The Company has insurance coverage for physical partial loss to its assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. The Company has also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies. As of March 31, 2022 and December 31, 2021, the workers’ compensation and automobile liability policies require a deductible per occurrence of up to $0.3 million and $0.1 million, respectively. As of March 31, 2022 and December 31, 2021, the workers’ compensation and auto liability policies contained an aggregate stop loss of $5.4 million. The Company establishes liabilities for the unpaid deductible portion of claims incurred based on estimates. As of March 31, 2022 and December 31, 2021, accrued claims were $1.2 million and $1.4 million, respectively. The Company also has insurance coverage for directors and officers liability. As of March 31, 2022 and December 31, 2021, the directors and officers liability policy had a deductible per occurrence of $1.0 million and an aggregate deductible of $10.0 million. As of March 31, 2022 and December 31, 2021, the Company did not have any accrued claims for directors and officers liability. The Company also self-insures its employee health insurance. The Company has coverage on its self-insurance program in the form of a stop loss of $0.2 million per participant and an aggregate stop-loss of $5.8 million for the calendar year ending December 31, 2021. As of March 31, 2022 and December 31, 2021, accrued claims were $1.2 million and $1.6 million, respectively. These estimates may change in the near term as actual claims continue to develop. Warranty Guarantees Pursuant to certain customer contracts in our infrastructure services segment, the Company warrants equipment and labor performed under the contracts for a specified period following substantial completion of the work. Generally, the warranty is for one year or less. No liabilities were accrued as of March 31, 2022 and December 31, 2021 and no expense was recognized during the three months ended March 31, 2022 or 2021 related to warranty claims. However, if warranty claims occur, the Company could be required to repair or replace warrantied items, which in most cases are covered by warranties extended from the manufacturer of the equipment. In the event the manufacturer of equipment failed to perform on a warranty obligation or denied a warranty claim made by the Company, the Company could be required to pay for the cost of the repair or replacement. Bonds In the ordinary course of business, the Company is required to provide bid bonds to certain customers in the infrastructure services segment as part of the bidding process. These bonds provide a guarantee to the customer that the Company, if awarded the project, will perform under the terms of the contract. Bid bonds are typically provided for a percentage of the total contract value. Additionally, the Company may be required to provide performance and payment bonds for contractual commitments related to projects in process. These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for expenses or outlays it incurs. As of December 31, 2021, outstanding bid bonds totaled $0.6 million. There were no outstanding bid bonds as of March 31, 2022. As of March 31, 2022 and December 31, 2021, outstanding performance and payment bonds totaled $13.8 million and $20.3 million, respectively. The estimated cost to complete projects secured by the performance and payment bonds totaled $7.7 million as of March 31, 2022. Litigation As of March 31, 2022, PREPA owed the Company approximately $227.0 million for services performed, excluding $120.7 million of interest charged on these delinquent balances as of March 31, 2022. The Company believes these receivables are collectible. PREPA, however, is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the U.S. District Court for the District of Puerto Rico. As a result, PREPA’s ability to meet its payment obligations is largely dependent upon funding from FEMA or other sources. On September 30, 2019, Cobra filed a motion with the U.S. District Court for the District of Puerto Rico seeking recovery of the amounts owed to Cobra by PREPA, which motion was stayed by the Court. On March 25, 2020, Cobra filed an urgent motion to modify the stay order and allow the recovery of approximately $61.7 million in claims related to a tax gross-up provision contained in the emergency master service agreement, as amended, that was entered into with PREPA on October 19, 2017. This emergency motion was denied on June 3, 2020 and the Court extended the stay of our motion. On December 9, 2020, the Court again extended the stay of our motion and directed PREPA to file a status motion by June 7, 2021. On April 6, 2021, Cobra filed a motion to lift the stay order. Following this filing, PREPA initiated discussion, which resulted in PREPA and Cobra filing a joint motion to adjourn all deadlines relative to the April 6, 2021 motion until the June 16, 2021 omnibus hearing as a result of PREPA’s understanding that FEMA would release a report in the near future relating to the emergency master service agreement between PREPA and Cobra that was executed on October 19, 2017. The joint motion was granted by the Court on April 14, 2021. On May 26, 2021, FEMA issued a Determination Memorandum related to the first contract between Cobra and PREPA in which, among other things, FEMA raised two contract compliance issues and, as a result, concluded that approximately $47 million in costs were not authorized costs under the contract. On June 14, 2021, the Court issued an order adjourning Cobra’s motion to lift the stay order to a hearing on August 4, 2021 and directing Cobra and PREPA to meet and confer in good faith concerning, among other things, (i) the May 26, 2021 Determination Memorandum issued by FEMA and (ii) whether and when a second determination memorandum is expected. The parties were further directed to file an additional status report, which was filed on July 20, 2021. On July 23, 2021, with the aid of Mammoth, PREPA filed an appeal of the entire $47 million that FEMA de-obligated in the May 26, 2021 Determination Memorandum. On August 4, 2021, the Court extended the stay and directed that an additional status report be filed, which was done on January 22, 2022. On January 26, 2022, the Court extended the stay and directed the parties to file a further status report by July 25, 2022. In the event PREPA (i) does not have or does not obtain the funds necessary to satisfy its obligations to Cobra under the contracts, (ii) obtains the necessary funds but refuses to pay the amounts owed to the Company or (iii) otherwise does not pay amounts owed to the Company for services performed, the receivable may not be collectible. On December 28, 2019, Gulfport filed a lawsuit against Stingray Pressure Pumping in the Superior Court of the State of Delaware. Pursuant to the complaint, Gulfport seeks to terminate the October 1, 2014, Amended and Restated Master Services Agreement for Pressure Pumping Services between Gulfport and Stingray Pressure Pumping (“MSA”). In addition, Gulfport alleged breach of contract and sought damages for alleged overpayments and audit costs under the MSA and other fees and expenses associated with this lawsuit. On March 26, 2020, Stingray Pressure Pumping filed a counterclaim against Gulfport seeking to recover unpaid fees and expenses due to Stingray Pressure Pumping under the MSA. In September 2020, Muskie filed a lawsuit against Gulfport to recover delinquent payments due under a natural sand proppant supply contract. These matters were automatically stayed as a result of Gulfport’s bankruptcy filing. On November 13, 2020, Gulfport filed petitions for voluntary relief under chapter 11 of the Bankruptcy Code. Gulfport emerged from bankruptcy on May 17, 2021. As of November 13, 2020, Gulfport owed the Company approximately $46.9 million, which included interest charges of $3.3 million and $1.8 million in attorneys’ fees. FASB ASC 326 , Financial Instruments-Credit Losses, requires companies to reflect its current estimate of all expected credit losses. As a result, the Company recorded reserves on its pre-petition receivables due from Gulfport for products and services, interest and attorneys’ fees of $19.4 million, $1.4 million and $1.8 million, respectively, during the year ended December 31, 2020. On March 22, 2021, Gulfport listed the Stingray Pressure Pumping and Muskie contracts on its master rejection schedule filed with the bankruptcy court. During the first quarter of 2021, the Company recognized unliquidated damages of approximately $46.4 million and recorded reserves on these unliquidated damages as a reduction to revenue of $27.1 million and to bad debt expense of $3.8 million. Also during the first quarter of 2021, the Company recorded additional reserves on its pre-petition products and services and interest receivables of $6.1 million and $0.5 million, respectively. On September 21, 2021, the Company and Gulfport reached a settlement under which all litigation relating to the Stingray Pressure Pumping contract and the Muskie contract was terminated, Stingray Pressure Pumping released all claims against Gulfport and its subsidiaries with respect to Gulfport’s bankruptcy proceedings, each of the parties released all claims they had against the others with respect to the litigation matters discussed above and Muskie will have an allowed general unsecured claim against Gulfport of $3.1 million. As a result, during the three months ended September 31, 2021, the Company wrote off its remaining receivable related to the Stingray Pressure Pumping claim resulting in bad debt expense and other expense of $31.0 million and $1.3 million, respectively, and recorded additional bad debt expense related to the Muskie claim totaling $0.2 million. During the three months ended March 31, 2022, Muskie received $0.3 million from the Gulfport Distribution Trust. See Note 3. On January 21, 2020, MasTec Renewables Puerto Rico, LLC (“MasTec”) filed a lawsuit against Mammoth Inc. and Cobra, in the U.S. District Court for the Southern District of Florida. Pursuant to its complaint, MasTec asserts claims against the Company and Cobra for violations of the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), tortious interference and violations Puerto Rico law. MasTec alleged that it sustained injuries to its business and property in an unspecified amount because it lost the opportunity to perform work in connection with rebuilding the energy infrastructure in Puerto Rico after Hurricane Maria under a services contract with a maximum value of $500 million due to the Company’s and Cobra’s wrongful interference, payment of bribes, and other inducements to a FEMA official. On April 1, 2020, the defendants filed a motion to dismiss the complaint. On October 14, 2020, the court dismissed the RICO claims, and on November 18, 2020, dismissed the claims arising under the Puerto Rico statute and the cause of action for tortious interference with MasTec’s contract (but not its business relations), and dismissed Mammoth Inc. from the litigation. On August 2, 2021, in order to avoid the risks of further litigation, and with no admission of wrongdoing whatsoever, the Company reached an agreement to settle this matter. Under the terms of the agreement, Cobra paid $6.5 million to MasTec on August 2, 2021 and the Company guaranteed payment, by Cobra, of $9.25 million on both August 1, 2022 and December 1, 2022. The agreement bears interest at rates between 6% and 12% and includes an acceleration clause that requires Cobra to pay within ten days all unpaid amounts if Cobra collects $100 million or more of specified receivables. As of March 31, 2022, $19.3 million was included in “accrued expenses and other current liabilities” in the accompanying unaudited condensed consolidated balance sheet related to the settlement. On May 13, 2021, Foreman Electric Services, Inc. (“Foreman”) filed a petition against Mammoth Inc. and Cobra in the Oklahoma County District Court (Oklahoma State Court). The petition asserted claims against the Company and Cobra under federal RICO statutes and certain state-law causes of action. Foreman alleged that it sustained injuries to its business and property in the amount of $250 million due to the Company’s and Cobra’s wrongful interference, payment of bribes and other inducements to a FEMA official. On May 18, 2021, the Company removed this action to the United States District Court for the Western District of Oklahoma and filed a motion to dismiss on July 8, 2021. On July 29, 2021, Foreman voluntarily dismissed the action without prejudice. On December 14, 2021, Foreman re-filed its petition against Mammoth Inc. and Cobra in the Oklahoma Count District Court (Oklahoma State Court). On December 16, 2021, the Company again removed this action to the United States District Court for the Western District of Oklahoma. Foreman filed a motion to remand this action back to Oklahoma County District Court, which motion is under consideration by the federal court. The Company and Cobra filed a motion to dismiss on January 31, 2022, which is expected to be fully briefed by March 7, 2022. In a related matter, on January 12, 2022, a Derivative Complaint on behalf of nominal defendant Machine Learning Integration, LLC (“MLI”), which alleges it would have served as a sub-contractor to Foreman in Puerto Rico, was filed against the Company and Cobra in the U.S. District Court for the District of Puerto Rico arising from essentially the same facts as Foreman's action and asserting violations of federal RICO statutes and certain state law claims. MLI alleges it sustained injuries to its business and property in an unspecified amount because the Company’s and Cobra’s wrongful interference, payment of bribes and other inducements to a FEMA official prevented Foreman from obtaining work, and thereby prevented MLI, as Foreman’s subcontractor, from obtaining work. These matters are still in the early stages and at this time, the Company is not able to predict the outcome of these claims or whether they will have a material impact on the Company’s business, financial condition, results of operations or cash flows. The Company is routinely involved in state and local tax audits. During 2015, the State of Ohio assessed taxes on the purchase of equipment the Company believes is exempt under state law. The Company appealed the assessment and a hearing was held in 2017. As a result of the hearing, the Company received a decision from the State of Ohio, which the Company appealed. On February 25, 2022, the Company received an unfavorable decision on the appeal. The Company intends to appeal the decision and while it is not able to predict the outcome of the appeal, this matter is not expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. On June 19, 2018, Wendco of Puerto Rico Inc. filed a putative class action lawsuit in the Commonwealth of Puerto Rico styled Wendco of Puerto Rico Inc.; Multisystem Restaurant Inc.; Restaurant Operators Inc.; Apple Caribe, Inc.; on their own behalf and in representation of all businesses that conduct business in the Commonwealth of Puerto Rico vs. Mammoth Energy Services Inc.; Cobra Acquisitions LLC; D. Grimm Puerto Rico, LLC, et al. The plaintiffs allege that the defendants caused power outages in Puerto Rico while performing restoration work on Puerto Rico’s electrical network following Hurricanes Irma and Maria in 2017, thereby interrupting commercial activities and causing economic loss. The parties have agreed to a settlement and the case has been dismissed. Cobra has been served with ten lawsuits from municipalities in Puerto Rico alleging failure to pay construction excise and volume of business taxes. These matters are in various stages in the Court. At this time, the Company is not able to predict the outcome of these matters or whether they will have a material impact on the Company’s business, financial condition, results of operations or cash flows. On March 20, 2019, EJ LeJeune, a former employee of ESPADA Logistics and Security Group, LLC and ESPADA Caribbean LLC (together, “ESPADA”) filed a putative collective and class action complaint in LeJeune v. Mammoth Energy Services, Inc. d/b/a Cobra Energy & ESPADA Logistics and Security Group, LLC, Case No. 5:19-cv-00286-JKP-ESC, in the U.S. District Court for the Western District of Texas. On August 5, 2019, the Court granted the plaintiff’s motion for leave to amend his complaint, dismissing Mammoth Energy Services, Inc. as a defendant, adding Cobra Acquisitions LLC (“Cobra”) as a defendant, and adding ESPADA Caribbean LLC and two officers of ESPADA—James Jorrie and Jennifer Gay Jorrie—as defendants. The amended complaint alleged that the defendants jointly employed the plaintiff and all similarly situated workers and failed to pay them overtime as required by the Fair Labor Standards Act and Puerto Rico law. The complaint also alleged the following violations of Puerto Rico law: illegal deductions from workers’ wages, failure to timely pay all wages owed, failure to pay a required severance when terminating workers without just cause, failure to pay for all hours worked, failure to provide required meal periods, and failure to pay a statutorily required bonus to eligible workers. Mr. LeJeune sought to represent a class of workers allegedly employed by one or more defendants and paid a flat amount for each day worked regardless of how many hours were worked. The complaint seeks back wages, including overtime wages owed, liquidated damages equal to the overtime wages owed, attorneys’ fees, costs, and pre- and post-judgment interest. On June 16, 2020, Cobra answered Mr. LeJeune’s amended complaint, denying that it employed Mr. LeJeune and the putative class members and denying that they were entitled to relief from Cobra. All other defendants answered the amended complaint. The parties stipulated to conditional certification of a collective action, and on August 14, 2020, the Court ordered that notice be sent to all individuals engaged by ESPADA to provide services to Cobra in Puerto Rico on or after January 21, 2017 who were paid a day-rate. Notice was sent to putative class members on September 15, 2020, and the opt-in period closed on November 14, 2020. The parties informed the Court that that the plaintiff and the ESPADA defendants reached a settlement on November 5, 2021, and subsequently, that a settlement was reached between the plaintiffs and Cobra on December 6, 2021. A stipulation of dismissal as to all parties was filed with the Court and the case was dismissed on January 19, 2022. On April 16, 2019, Christopher Williams, a former employee of Higher Power Electrical, LLC, filed a putative class and collective action complaint titled Christopher Williams, individually and on behalf of all others similarly situated v. Higher Power Electrical, LLC, Cobra Acquisitions LLC, and Cobra Energy LLC in the U.S. District Court for the District of Puerto Rico. On June 24, 2019, the complaint was amended to replace Mr. Williams with Matthew Zeisset as the named plaintiff. The plaintiff alleges the defendant failed to pay overtime wages to a class of workers in compliance with the Fair Labor Standards Act and Puerto Rico law. On August 21, 2019, upon request of the parties, the Court stayed proceedings in the lawsuit and administratively closed the case pending completion of individual arbitration proceedings initiated by Mr. Zeisset and opt-in plaintiffs. The arbitrations remain pending. Other claimants have subsequently initiated additional individual arbitration proceedings asserting similar claims. All complainants and the respondents have paid the filing fees necessary to initiate the arbitrations. The parties are currently engaged in discovery. The Company believes these claims are without merit and is vigorously defending the arbitrations. However, at this time, the Company is not able to predict the outcomes of these proceedings or whether they will have a material impact on the Company’s business, financial condition, results of operations or cash flows. On September 10, 2019, the U.S. District Court for the District of Puerto Rico unsealed an indictment that charged the former president of Cobra Acquisitions LLC with conspiracy, wire fraud, false statements and disaster fraud. Two other individuals were also charged in the indictment. The indictment is focused on the interactions between a former FEMA official and the former president of Cobra. Neither the Company nor any of its subsidiaries were charged in the indictment. The Company is continuing to cooperate with the related investigation. On April 11, 2022, counsel for the former FEMA official and the former president of Cobra notified the Court that they had reached in principle a plea agreement pursuant to Federal of Criminal Procedures 11(c)(1)(C). On April 19, 2022, the two remaining defendants notified the court that a plea agreement had been finalized, although no details of the terms of the plea agreement were provided to the court. On April 29, 2022, the federal judge overseeing the case recused himself from any further consideration of the matter and the case was assigned to a new judge. The federal judge did not provide an explanation for his recusal. The plea hearing has been rescheduled for May 18, 2022. Given the uncertainty inherent in the criminal litigation, it is not possible at this time to determine the potential impacts that the plea agreements could have on the Company. PREPA has stated in Court filings that it may contend the alleged criminal activity affects Cobra’s entitlement to payment under its contracts with PREPA. It is unclear what PREPA’s position will be after the terms of the plea agreements become public. Subsequent to the indictment, the Company received (i) a preservation request letter from the United States Securities and Exchange Commission (“SEC”) related to documents relevant to an ongoing investigation it is conducting and (ii) a civil investigative demand (“CID”) from the United States Department of Justice (“DOJ”), which requests certain documents and answers to specific interrogatories relevant to an ongoing investigation it is conducting. Both the aforementioned SEC and DOJ investigations are in connection with the issues raised in the criminal matter. Following the resignation of Jonathan Yellen from the Company’s board of directors and the matters raised in the Company’s Form 8-K filed on May 14, 2020, the Company received an expanded preservation request from the SEC. The Company is cooperating with both the SEC and DOJ and is not able to predict the outcome of these investigations or if either will have a material impact on the Company’s business, financial condition, results of operations or cash flows. On September 12, 2019, AL Global Services, LLC (“Alpha Lobo”) filed a second amended third-party petition against the Company in an action styled Jim Jorrie v. Craig Charles, Julian Calderas, Jr., and AL Global Services, LLC v. Jim Jorrie v. Cobra Acquisitions LLC v. ESPADA Logistics & Security Group, LLC, ESPADA Caribbean LLC, Arty Straehla, Ken Kinsey, Jennifer Jorrie, and Mammoth Energy Services, Inc., in the 57th Judicial District in Bexar County, Texas. The petition alleges that the Company should be held vicariously liable under alter ego, agency and respondeat superior theories for Alpha Lobo’s alleged claims against Cobra and Arty Straehla for aiding and abetting, knowing participation in and conspiracy to breach fiduciary duty in connection with Cobra’s execution of an agreement with ESPADA Caribbean, LLC for security services related to Cobra’s work in Puerto Rico. The case is currently subject to a statutory stay pending a ruling on the appeal of anti-SLAPP motions to dismiss filed by certain defendants. The Company believes these claims are without merit and will vigorously defend the action. However, at this time, the Company is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s business, financial condition, results of operations or cash flows. Additionally, there is a parallel arbitration proceeding that has been initiated in which certain Defendants are seeking a declaratory judgment regarding Cobra’s rights to terminate the Alpha Lobo contract and enter into a new contract with a third-party. On June 24, 2021, the arbitration panel ruled in favor of Cobra. Subsequently, the trial Court in this action granted Cobra, the Company and Straehla’s motion to compel arbitration. On March 22, 2022, Alpha Lobo filed a Petition for Writ of Mandamus in the Fourth Court of Appeals, San Antonio, Texas, seeking to overturn the order compelling arbitration. The appellate court has not requested a response or ruled on the Mandamus. The Company is involved in various other legal proceedings in the ordinary course of business. Although the Company cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material impact on the Company’s business, financial condition, results of operations or cash flows. Defined Contribution Plan |
Reporting Segments
Reporting Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Reporting Segments | Reporting Segments As of March 31, 2022, the Company’s revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. The Company principally provides electric infrastructure services to private utilities, public investor-owned utilities and co-operative utilities and services in connection with on-shore drilling of oil and natural gas wells for small to large domestic independent oil and natural gas producers. The Company’s Chief Executive Officer and Chief Financial Officer comprise the Company’s Chief Operating Decision Maker function (“CODM”). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of operating loss less impairment expense, as well as a qualitative basis, such as nature of the product and service offerings and types of customers. As of March 31, 2022, the Company’s four reportable segments include infrastructure services (“Infrastructure”), well completion services (“Well Completion”), natural sand proppant services (“Sand”) and drilling services (“Drilling”). Prior to the year ended December 31, 2021, the Company included Aquawolf in its “All Other” reconciling column. Based on its assessment of FASB ASC 280, Segment Reporting , guidance at December 31, 2021, the Company changed its presentation in 2021 to move Aquawolf to the Infrastructure segment. The results for the three months ended March 31, 2021 have been retroactively adjusted to reflect this change. The Infrastructure segment provides electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in the northeastern, southwestern, midwestern and western portions of the United States. The Well Completion segment provides hydraulic fracturing and water transfer services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania and the mid-continent region. The Sand segment mines, processes and sells sand for use in hydraulic fracturing. The Sand segment primarily services the Utica Shale, Permian Basin, SCOOP, STACK and Montney Shale in British Columbia and Alberta, Canada. During certain of the periods presented, the Drilling segment provided contract land and directional drilling services primarily in the Permian Basin and mid-continent region. During certain of the periods presented, the Company also provided aviation services, coil tubing services, equipment rental services, crude oil hauling services, remote accommodation and equipment manufacturing. The businesses that provide these services are distinct operating segments, which the CODM reviews independently when making key operating and resource utilization decisions. None of these operating segments meet the quantitative thresholds of a reporting segment and do not meet the aggregation criteria set forth in ASC 280 Segment Reporting. Therefore, results for these operating segments are included in the column titled “All Other” in the tables below. Additionally, assets for corporate activities, which primarily include cash and cash equivalents, inter-segment accounts receivable, prepaid insurance and certain property and equipment, are included in the All Other column. Although Mammoth Energy Partners LLC, which holds these corporate assets, meets one of the quantitative thresholds of a reporting segment, it does not engage in business activities from which it may earn revenues and its results are not regularly reviewed by the Company’s CODM when making key operating and resource utilization decisions. Therefore, the Company does not include it as a reportable segment. Sales from one segment to another are generally priced at estimated equivalent commercial selling prices. Total revenue and total cost of revenue amounts included in the Eliminations column in the following tables include inter-segment transactions conducted between segments. Receivables due for sales from one segment to another and for corporate allocations to each segment are included in the Eliminations column for total assets in the following tables. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reporting segment are eliminated within each reporting segment. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands): Three months ended March 31, 2022 Infrastructure Well Completion Sand Drilling All Other Eliminations Total Revenue from external customers $ 23,009 $ 23,630 $ 8,347 $ 2,852 $ 4,460 $ — $ 62,298 Intersegment revenues — 244 832 3 272 (1,351) — Total revenue 23,009 23,874 9,179 2,855 4,732 (1,351) 62,298 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 18,887 21,839 7,788 2,372 3,594 — 54,480 Intersegment cost of revenues 16 1,031 — 160 70 (1,277) — Total cost of revenue 18,903 22,870 7,788 2,532 3,664 (1,277) 54,480 Selling, general and administrative 4,645 2,039 828 292 864 — 8,668 Depreciation, depletion, amortization and accretion 4,314 6,444 1,795 1,680 2,934 — 17,167 Operating loss (4,853) (7,479) (1,232) (1,649) (2,730) (74) (18,017) Interest expense, net 1,542 371 162 104 170 — 2,349 Other (income) expense, net (9,587) (49) (79) — 478 — (9,237) Income (loss) before income taxes $ 3,192 $ (7,801) $ (1,315) $ (1,753) $ (3,378) $ (74) $ (11,129) Three months ended March 31, 2021 Infrastructure Well Completion Sand Drilling All Other Eliminations Total Revenue from external customers $ 30,200 $ 22,901 $ 8,705 $ 919 $ 4,079 $ — $ 66,804 Intersegment revenues — 54 — 14 640 (708) — Total revenue 30,200 22,955 8,705 933 4,719 (708) 66,804 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 27,377 9,003 5,862 1,604 4,234 — 48,080 Intersegment cost of revenues 45 394 — — 269 (708) — Total cost of revenue 27,422 9,397 5,862 1,604 4,503 (708) 48,080 Selling, general and administrative 3,739 10,612 2,049 422 1,202 — 18,024 Depreciation, depletion, amortization and accretion 6,667 6,683 2,140 2,165 3,491 — 21,146 Operating income (loss) (7,628) (3,737) (1,346) (3,258) (4,477) — (20,446) Interest expense, net 669 254 93 63 146 — 1,225 Other (income) expense, net (6,486) 439 (794) (9) 242 — (6,608) Income (loss) before income taxes $ (1,811) $ (4,430) $ (645) $ (3,312) $ (4,865) $ — $ (15,063) Infrastructure Well Completion Sand Drilling All Other Eliminations Total As of March 31, 2022: Total assets $ 424,987 $ 53,000 $ 150,849 $ 27,316 $ 121,507 $ (75,212) $ 702,447 As of December 31, 2021: Total assets $ 427,626 $ 56,036 $ 156,519 $ 27,457 $ 129,202 $ (75,948) $ 720,892 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to March 31, 2022, the Company entered into a three-year lease agreement for its corporate headquarters with aggregate commitments of $1.8 million. Subsequent to March 31, 2022, the Company ordered additional equipment with aggregate commitments of $1.7 million, primarily for its well completion segment. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary. All material intercompany accounts and transactions have been eliminated. This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation. The Company adopted a new accounting policy related to the classification of certain legal expenses. For matters related to ongoing operations, the Company continues to present legal expense as selling, general and |
Accounts Receivable | Accounts Receivable Accounts receivable include amounts due from customers for services performed or goods sold. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer’s risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Most areas in the continental United States in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. Interest on delinquent accounts receivable is recognized in other income when chargeable and collectability is reasonably assured. During the period October 2017 through March 2019, the Company provided infrastructure services in Puerto Rico under master services agreements entered into by Cobra Acquisitions LLC (“Cobra”), one of the Company’s subsidiaries, with the Puerto Rico Electric Power Authority (“PREPA”) to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria. During the three months ended March 31, 2022 and 2021, the Company charged interest on delinquent accounts receivable pursuant to the terms of its agreements with PREPA totaling $9.9 million and $8.7 million, respectively. These amounts are included in “other, net” on the unaudited condensed consolidated statement of comprehensive loss. Included in “accounts receivable, net” on the unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 were interest charges of $120.7 million and $110.8 million, respectively. The Company regularly reviews receivables and provides for expected losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once a final determination is made regarding their collectability. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, trade payables, amounts receivable or payable to related parties and long-term debt. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. The fair value of long-term debt approximates its carrying value because the cost of borrowing fluctuates based upon market conditions. |
Revenue | Revenue The Company’s primary revenue streams include infrastructure services, well completion services, natural sand proppant services, drilling services and other services, which includes aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing. See Note 19 for the Company’s revenue disaggregated by type. Certain of the Company’s customer contracts include provisions entitling the Company to a termination penalty when the customer invokes its contractual right to terminate prior to the contract’s nominal end date. The termination penalties in the customer contracts vary, but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification in the period in which the customer invokes the termination provision. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. As of the modification date, the Company updates its estimate of the transaction price using the expected value method, subject to constraints, and recognizes the amount over the remaining performance period. Infrastructure Services Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work. Well Completion Services Well completion services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for well completion services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Generally, revenue is recognized over time upon the completion of each segment of work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location, consumable supplies and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods are consumed and services are performed. Pursuant to a contract with Gulfport, Stingray Pressure Pumping agreed to provide Gulfport with use of up to two pressure pumping fleets for the period covered by the contract. Under this agreement, performance obligations were satisfied as services were rendered based on the passage of time rather than the completion of each segment of work. Stingray Pressure Pumping had the right to receive consideration from this customer even if circumstances prevent us from performing work. All consideration owed to Stingray Pressure Pumping for services performed during the contractual period was fixed and the right to receive it was unconditional. On December 28, 2019, Gulfport filed a legal action in Delaware state court seeking the termination of this contract and monetary damages. Further, on November 13, 2020, Gulfport filed petitions for voluntary relief under chapter 11 of the Bankruptcy Code. On March 22, 2021, Gulfport listed the Stingray Pressure Pumping contract on its master rejection schedule filed with the bankruptcy court. The Company determined that these factors changed the scope of the contract, accelerated the duration of, and otherwise changed the rights and obligations of each party to the contract. As a result, the Company accounted for this as a contract modification during the three months ended March 31, 2021. Stingray Pressure Pumping used the expected value method to estimate unliquidated damages totaling $37.9 million, which resulted in the recognition of net revenue totaling $14.8 million and bad debt expense of $2.9 million on previously recognized revenue during the three months ended March 31, 2021. On September 21, 2021, the Company and Gulfport reached a settlement under which all litigation relating to the Stingray Pressure Pumping contract was terminated. Stingray Pressure Pumping released all claims against Gulfport and its subsidiaries with respect to Gulfport’s bankruptcy proceedings and each of the parties released all claims they had against the others with respect to the litigation matters discussed in Note 18. As a result of this settlement agreement, for the three months ended September 30, 2021, the Company wrote off its remaining receivable related to the Stingray Pressure Pumping claim resulting in bad debt expense and other expense of $31.0 million and $1.3 million, respectively. Gulfport was a related party until June 29, 2021. On June 29, 2021, pursuant to the terms of its plan of reorganization, all of the Company’s shares that Gulfport owned were transferred to a trust for the benefit of certain of Gulfport’s creditors. The revenue recognized related to this agreement is included in “services revenue - related parties” in the accompanying unaudited condensed consolidated statement of comprehensive loss. See Notes 11 and 18 below. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal. Certain of the Company’s sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management’s knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. As of March 31, 2022, the Company had deferred revenue totaling $3.0 million related to shortfall payments. This amount is included in “accrued expenses and other current liabilities” on the unaudited condensed consolidated balance sheet. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer’s inability to take delivery of excess volumes. The Company recognized shortfall revenue totaling $4.9 million during the three months ended March 31, 2021. No shortfall revenue was recognized during the three months ended March 31, 2022. In certain of the Company’s sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities. Pursuant to its contract with Gulfport, Muskie agreed to sell and deliver specified amounts of sand to Gulfport. In September 2020, Muskie filed a lawsuit against Gulfport to recover delinquent payments due under this agreement. On November 13, 2020, Gulfport filed petitions for voluntary relief under chapter 11 of the Bankruptcy Code. On March 22, 2021, Gulfport listed the Muskie contract on its master rejection schedule filed with the bankruptcy court. The Company determined that these factors changed the scope of the contract, accelerated the duration of, and otherwise changed the rights and obligations of each party to the contract. As a result, the Company accounted for this as a contract modification during the three months ended March 31, 2021. Muskie used the expected value method to estimate unliquidated damages totaling $8.5 million, which resulted in the recognition of net revenue totaling $2.1 million and bad debt expense of $1.0 million on previously recognized revenue during the three months ended March 31, 2021. On September 21, 2021, the Company and Gulfport reached a settlement under which all litigation relating to the Muskie contract was terminated, each of the parties released all claims they had against the others with respect to the litigation matters discussed in Note 18 and Muskie’s contract claim against Gulfport would be allowed under Gulfport’s plan of reorganization in the amount of $3.1 million. As a result of this settlement agreement, Muskie recognized bad debt expense of $0.2 million during the third quarter of 2021. Gulfport was a related party until June 29, 2021. The revenue recognized related to this agreement is included in “product revenue - related parties” in the accompanying unaudited condensed consolidated statement of comprehensive loss and the related accounts receivable is included in “accounts receivable, net” in the unaudited condensed consolidated balance sheets as of December 31, 2021. See Notes 11 and 18 below. Drilling Services Contract drilling services were provided under daywork contracts. Directional drilling services, including motor rentals, are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs were recognized over the days of actual drilling. As a result of market conditions, the Company temporarily shut down its contract land drilling operations beginning in December 2019 and rig hauling operations beginning in April 2020. Other Services During the periods presented, the Company also provided aviation, equipment rentals, crude oil hauling, remote accommodations and equipment manufacturing, which are reported under other services. As a result of market conditions, the Company temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019, its coil tubing, pressure control and full service transportation operations beginning in July 2020 and its crude oil hauling operations beginning in July 2021. The Company’s other services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation. |
Inventories | InventoriesInventories consist of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or net realizable value on an average cost basis. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts Receivable | Following is a roll forward of the allowance for doubtful accounts for the year ended December 31, 2021 and the three months ended March 31, 2022 (in thousands): Balance, January 1, 2021 $ 30,139 Additions charged to bad debt expense 41,873 Additions charged to revenue 27,071 Additions charged to other selling, general and administrative expense 273 Additions charged to other income (expense), net - related parties 515 Additions charged to other income (expense), net 1,474 Recoveries of receivables previously charged to bad debt expense (211) Deductions for uncollectible receivables written off (83,049) Balance, December 31, 2021 18,085 Additions charged to bad debt expense 50 Recoveries of receivables previously charged to bad debt expense (149) Deductions for uncollectible receivables written off (11,643) Balance, March 31, 2022 $ 6,343 Balance, January 1, 2021 22,581 Additions charged to bad debt expense 41,196 Additions charged to revenue 27,070 Additions charged to other income (expense), net - related parties 1,842 Deductions for uncollectible receivables written off (80,975) Balance, December 31, 2021 $ 11,714 Recoveries of receivables previously charged to bad debt expense (147) Deductions for uncollectible receivables written off (11,567) Balance, March 31, 2022 $ — |
Schedules of Concentration of Risk | Following is a summary of our significant customers based on percentages of total accounts receivable balances at March 31, 2022 and December 31, 2021 and percentages of total revenues derived for the three months ended March 31, 2022 and 2021: REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2022 2021 2022 2021 Customer A (a) — % — % 84 % 83 % Customer B (b) 25 % — % 2 % — % Customer C (c) 5 % 11 % 1 % 1 % Customer D (d) — % 10 % — % — % Customer E (e) — % 25 % — % — % a. Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company’s infrastructure services segment. Accounts receivable for Customer A also includes receivables due for interest charged on delinquent accounts receivable. b. Customer B is a third-party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company’s well completion services segment. c. Customer C is a third-party customer. Revenues and the related accounts receivable balances earned from Customer C were derived from the Company’s infrastructure services segment. d. Customer D is a third-party customer. Revenues and the related accounts receivable balances earned from Customer D were derived from the Company’s well completion services segment and equipment rental business. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Following is a rollforward of the Company’s contract liabilities (in thousands): Balance, December 31, 2020 $ 8,281 Deduction for recognition of revenue (12,329) Increase for deferral of shortfall payments 7,023 Increase for deferral of customer prepayments 275 Balance, December 31, 2021 3,250 Deduction for recognition of revenue (67) Deduction for rebate credit recognized (140) Increase for deferral of customer prepayments 126 Balance, March 31, 2022 $ 3,169 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of the Company’s inventories is shown below (in thousands): March 31, December 31, 2022 2021 Supplies $ 8,216 $ 4,557 Raw materials 700 701 Work in process 1,069 2,435 Finished goods 373 673 Total inventories $ 10,358 $ 8,366 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment include the following (in thousands): March 31, December 31, Useful Life 2022 2021 Pressure pumping equipment 3-5 years $ 220,959 $ 220,414 Drilling rigs and related equipment 3-15 years 111,334 111,478 Machinery and equipment 7-20 years 166,483 166,873 Buildings (a) 15-39 years 46,286 46,006 Vehicles, trucks and trailers 5-10 years 103,630 103,982 Coil tubing equipment 4-10 years 7,592 7,592 Land N/A 13,377 13,417 Land improvements 15 years or life of lease 10,133 10,133 Rail improvements 10-20 years 13,793 13,793 Other property and equipment (b) 3-12 years 18,470 18,235 712,057 711,923 Deposits on equipment and equipment in process of assembly (c) 3,464 3,300 715,521 715,223 Less: accumulated depreciation (d) 554,516 538,637 Total property, plant and equipment, net $ 161,005 $ 176,586 a. Included in Buildings at each of March 31, 2022 and December 31, 2021 are costs of $7.6 million related to assets under operating leases. b. Included in Other property and equipment at each of March 31, 2022 and December 31, 2021 are costs of $6.0 million related to assets under operating leases. c. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service. d. Includes accumulated depreciation of $7.0 million and $6.6 million at March 31, 2022 and December 31, 2021, respectively, related to assets under operating leases. |
Schedule of Depreciation, Depletion, Accretion and Amortization expense | A summary of depreciation, depletion, amortization and accretion expense is below (in thousands): Three Months Ended March 31, 2022 2021 Depreciation expense $ 16,925 $ 20,856 Amortization expense 195 253 Accretion and depletion expense 47 37 Depreciation, depletion, amortization and accretion $ 17,167 $ 21,146 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the net carrying amount of goodwill by reporting segment (see Note 19) for the three months ended March 31, 2022 and year ended December 31, 2021 are presented below (in thousands): Infrastructure Well Completion Sand Other Total Balance as of January 1, 2021 Goodwill $ 891 $ 86,043 $ 2,684 $ 14,830 $ 104,448 Accumulated impairment losses — (76,829) (2,684) (12,327) (91,840) 891 9,214 — 2,503 12,608 Acquisitions — — — — — Impairment losses (891) — — — (891) Balance as of December 31, 2021 Goodwill 891 86,043 2,684 14,830 104,448 Accumulated impairment losses (891) (76,829) (2,684) (12,327) (92,731) — 9,214 — 2,503 11,717 Acquisitions — — — — — Impairment losses — — — — — Balance as of March 31, 2022 Goodwill 891 86,043 2,684 14,830 104,448 Accumulated impairment losses (891) (76,829) (2,684) (12,327) (92,731) $ — $ 9,214 $ — $ 2,503 $ 11,717 |
Schedule of Finite-Lived Intangible Assets | The Company had the following definite lived intangible assets recorded (in thousands): March 31, December 31, 2022 2021 Trade names 7,850 7,850 Less: accumulated amortization - trade names (5,484) (5,289) Intangible assets, net $ 2,366 $ 2,561 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands): Remainder of 2022 $ 584 2023 779 2024 711 2025 91 2026 91 Thereafter 110 $ 2,366 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities | Accrued expenses and other current liabilities and other long-term liabilities included the following (in thousands): March 31, December 31, 2022 2021 Accrued legal settlement (a) $ 19,334 $ 18,966 State and local taxes payable 12,879 13,772 Financed insurance premiums (b) 6,584 9,852 Deferred revenue 3,169 3,250 Sale-leaseback liability (c) 3,413 3,340 Accrued compensation and benefits 2,977 5,133 Payroll tax liability 2,052 2,810 Financing leases 1,851 1,834 Insurance reserves 1,237 1,413 Other 2,254 2,146 Total accrued expenses and other current liabilities $ 55,750 $ 62,516 Other Long-Term Liabilities Financing leases $ 3,906 $ 4,375 Sale-leaseback liability (c) 6,458 7,318 Total other long-term liabilities $ 10,364 $ 11,693 a. In June 2021, the Company reached an agreement to settle a certain legal matter. See Note 18 for additional detail. b. Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year. As of March 31, 2022 and December 31, 2021, the applicable interest rate associated with financed insurance premiums ranged from 1.95% to 2.45%. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt included the following (in thousands): March 31, December 31, 2022 2021 Revolving credit facility $ 85,967 $ 83,370 Aviation note 3,006 3,371 Unamortized debt issuance costs (29) (33) Total debt 88,944 86,708 Less: current portion 1,486 1,468 Total long-term debt $ 87,458 $ 85,240 |
Selling, General and Administ_2
Selling, General and Administrative Expense (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Selling, General and Administrative Expense | Selling, general and administrative (“SG&A”) expense includes of the following (in thousands): Three Months Ended March 31, 2022 2021 Cash expenses: Compensation and benefits $ 2,983 $ 4,694 Professional services (a) 3,637 581 Other (b) 1,906 2,342 Total cash SG&A expense 8,526 7,617 Non-cash expenses: Bad debt provision (c) (99) 10,125 Stock based compensation 241 282 Total non-cash SG&A expense 142 10,407 Total SG&A expense $ 8,668 $ 18,024 a. Certain legal expenses totaling $2.8 million were reclassified to Other, net for the three months ended March 31, 2021. The increase in professional fees is primarily due to an increase in legal expenses for matters related to ongoing operations. b. Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Other Supplemental Information | Lease expense consisted of the following for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Operating lease expense $ 1,747 $ 2,462 Short-term lease expense 36 238 Finance lease expense: Amortization of right-of-use assets 403 388 Interest on lease liabilities 49 51 Total lease expense $ 2,235 $ 3,139 Other supplemental information related to leases for the three months ended March 31, 2022 and 2021 and as of March 31, 2022 and December 31, 2021 is as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,672 $ 2,489 Operating cash flows from finance leases 49 51 Financing cash flows from finance leases 452 406 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,383 $ 77 Finance leases — 72 March 31, December 31, 2022 2021 Weighted-average remaining lease term: Operating leases 3.1 years 3.1 years Finance leases 3.1 years 3.3 years Weighted-average discount rate: Operating leases 3.3 % 3.3 % Finance leases 3.3 % 3.3 % |
Schedule of Lease Assets and Liabilities | Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 is as follows (in thousands): March 31, December 31, 2022 2021 Operating leases: Operating lease right-of-use assets $ 11,675 $ 12,168 Current operating lease liability 5,710 5,942 Long-term operating lease liability 5,731 5,918 Finance leases: Property, plant and equipment, net $ 5,663 $ 6,065 Accrued expenses and other current liabilities 1,851 1,834 Other liabilities 3,906 4,375 |
Schedule of Maturities for Finance Leases Liabilities | Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2022 $ 4,698 $ 1,503 2023 4,028 2,262 2024 2,042 965 2025 784 524 2026 146 795 Thereafter 407 — Total lease payments 12,105 6,049 Less: Present value discount 664 292 Present value of lease payments $ 11,441 $ 5,757 |
Schedule of Maturities for Operating Leases Liabilities | Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands): Operating Leases Finance Leases Remainder of 2022 $ 4,698 $ 1,503 2023 4,028 2,262 2024 2,042 965 2025 784 524 2026 146 795 Thereafter 407 — Total lease payments 12,105 6,049 Less: Present value discount 664 292 Present value of lease payments $ 11,441 $ 5,757 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliations of the Components of Basic and Diluted Net Loss per Common Share | Reconciliations of the components of basic and diluted net loss per common share are presented in the table below (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Basic loss per share: Allocation of loss: Net loss $ (14,817) $ (12,440) Weighted average common shares outstanding 46,845 45,932 Basic loss per share $ (0.32) $ (0.27) Diluted loss per share: Allocation of loss: Net loss $ (14,817) $ (12,440) Weighted average common shares, including dilutive effect (a) 46,845 45,932 Diluted loss per share $ (0.32) $ (0.27) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below. Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value Unvested shares as of January 1, 2021 1,914,782 $ 1.21 Granted 128,205 3.90 Vested (914,782) 1.52 Forfeited — — Unvested shares as of December 31, 2021 1,128,205 1.27 Granted — — Vested (500,000) 0.93 Forfeited — — Unvested shares as of March 31, 2022 628,205 $ 1.54 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Following is a summary of related party transactions (in thousands): Three Months Ended March 31, At March 31, At December 31, 2022 2021 2022 2021 REVENUES ACCOUNTS RECEIVABLE Stingray Pressure Pumping and Gulfport (a) $ — $ 14,812 $ — $ — Muskie and Gulfport (b) — 2,145 — — Cobra Aviation/ARS/Leopard and Brim Equipment (c) 60 43 95 85 Panther and El Toro (d) 214 131 214 — Other Relationships — — 4 3 $ 274 $ 17,131 $ 313 $ 88 OTHER ACCOUNTS RECEIVABLE Stingray Pressure Pumping and Gulfport (a) $ — $ (514) $ — $ — Muskie and Gulfport (b) — (1) — — $ — $ (515) $ — $ — $ 313 $ 88 a. Stingray Pressure Pumping provided pressure pumping, stimulation and related completion services to Gulfport. Other amount represents interest charged on delinquent accounts receivable related to these services. On June 29, 2021, Gulfport ceased to be a related party. See Note 3. b. Muskie agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. Other amount represents interest charged on delinquent accounts receivable related to this agreement. On June 29, 2021, Gulfport ceased to be a related party. See Note 3. c. Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. d. Panther provides directional drilling services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. Three Months Ended March 31, At March 31, At December 31, 2022 2021 2022 2021 COST OF REVENUE ACCOUNTS PAYABLE Cobra Aviation/ARS/Leopard and Brim Equipment (a) $ 19 $ 19 $ 4 $ 5 The Company and Caliber (b) 89 64 — — Other Relationships 27 26 — — $ 135 $ 109 $ 4 $ 5 SELLING, GENERAL AND ADMINISTRATIVE COSTS The Company and Caliber (b) $ — $ 185 $ — $ — Other — 8 2 — $ — $ 193 $ 2 $ — a. Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements. b. Caliber, an entity controlled by Wexford, leases office space to the Company. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Letters of Credit | The letters of credit are categorized below (in thousands): March 31, December 31, 2022 2021 Environmental remediation $ 3,694 $ 3,694 Insurance programs 3,389 3,890 Rail car commitments 455 455 Bonding program — 1,000 Total letters of credit $ 7,538 $ 9,039 |
Reporting Segments (Tables)
Reporting Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands): Three months ended March 31, 2022 Infrastructure Well Completion Sand Drilling All Other Eliminations Total Revenue from external customers $ 23,009 $ 23,630 $ 8,347 $ 2,852 $ 4,460 $ — $ 62,298 Intersegment revenues — 244 832 3 272 (1,351) — Total revenue 23,009 23,874 9,179 2,855 4,732 (1,351) 62,298 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 18,887 21,839 7,788 2,372 3,594 — 54,480 Intersegment cost of revenues 16 1,031 — 160 70 (1,277) — Total cost of revenue 18,903 22,870 7,788 2,532 3,664 (1,277) 54,480 Selling, general and administrative 4,645 2,039 828 292 864 — 8,668 Depreciation, depletion, amortization and accretion 4,314 6,444 1,795 1,680 2,934 — 17,167 Operating loss (4,853) (7,479) (1,232) (1,649) (2,730) (74) (18,017) Interest expense, net 1,542 371 162 104 170 — 2,349 Other (income) expense, net (9,587) (49) (79) — 478 — (9,237) Income (loss) before income taxes $ 3,192 $ (7,801) $ (1,315) $ (1,753) $ (3,378) $ (74) $ (11,129) Three months ended March 31, 2021 Infrastructure Well Completion Sand Drilling All Other Eliminations Total Revenue from external customers $ 30,200 $ 22,901 $ 8,705 $ 919 $ 4,079 $ — $ 66,804 Intersegment revenues — 54 — 14 640 (708) — Total revenue 30,200 22,955 8,705 933 4,719 (708) 66,804 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 27,377 9,003 5,862 1,604 4,234 — 48,080 Intersegment cost of revenues 45 394 — — 269 (708) — Total cost of revenue 27,422 9,397 5,862 1,604 4,503 (708) 48,080 Selling, general and administrative 3,739 10,612 2,049 422 1,202 — 18,024 Depreciation, depletion, amortization and accretion 6,667 6,683 2,140 2,165 3,491 — 21,146 Operating income (loss) (7,628) (3,737) (1,346) (3,258) (4,477) — (20,446) Interest expense, net 669 254 93 63 146 — 1,225 Other (income) expense, net (6,486) 439 (794) (9) 242 — (6,608) Income (loss) before income taxes $ (1,811) $ (4,430) $ (645) $ (3,312) $ (4,865) $ — $ (15,063) Infrastructure Well Completion Sand Drilling All Other Eliminations Total As of March 31, 2022: Total assets $ 424,987 $ 53,000 $ 150,849 $ 27,316 $ 121,507 $ (75,212) $ 702,447 As of December 31, 2021: Total assets $ 427,626 $ 56,036 $ 156,519 $ 27,457 $ 129,202 $ (75,948) $ 720,892 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Thousands | Mar. 25, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | May 26, 2021USD ($)contractComplianceIssue |
Related Party Transaction [Line Items] | |||||
Bad debt (recoveries) expense | $ (99) | $ 10,125 | |||
Receivables from related parties, net | 313 | $ 88 | |||
Recovery amount in undisputed claims | $ 61,700 | ||||
Number of FEMA contract compliance issues raised | contractComplianceIssue | 2 | ||||
From Selling, General And Administrative Expense To Other, Net | |||||
Related Party Transaction [Line Items] | |||||
Legal expense | 2,800 | ||||
Insurance Claims | |||||
Related Party Transaction [Line Items] | |||||
Allowance for doubtful accounts, period increase | 300 | ||||
Oil And Natural Gas Industry | |||||
Related Party Transaction [Line Items] | |||||
Bad debt (recoveries) expense | 0 | 700 | |||
Gulfport | |||||
Related Party Transaction [Line Items] | |||||
Bad debt (recoveries) expense | 10,000 | ||||
Puerto Rico Electric Power Authority (PREPA) | |||||
Related Party Transaction [Line Items] | |||||
Interest income, other | 9,900 | $ 8,700 | |||
Interest charged on accounts receivable | 120,700 | $ 110,800 | |||
Accounts receivable from related parties | $ 227,000 | ||||
Accounts receivable, contract costs, amount expected to be authorized | $ 47,000 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 18,085 | $ 30,139 |
Additions charged to bad debt expense | 50 | 41,873 |
Additions charged to revenue | 27,071 | |
Additions charged to other selling, general and administrative expense | 273 | |
Additions charged to other income (expense), net - related parties | 515 | |
Additions charged to other income (expense), net | 1,474 | |
Recoveries of receivables previously charged to bad debt expense | (149) | (211) |
Deductions for uncollectible receivables written off | (11,643) | (83,049) |
Balance at end of period | 6,343 | 18,085 |
Gulfport | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 11,714 | 22,581 |
Additions charged to bad debt expense | 41,196 | |
Additions charged to revenue | 27,070 | |
Additions charged to other income (expense), net - related parties | 1,842 | |
Recoveries of receivables previously charged to bad debt expense | (147) | |
Deductions for uncollectible receivables written off | (11,567) | (80,975) |
Balance at end of period | $ 0 | $ 11,714 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Customer A | REVENUES | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 0.00% | |
Customer A | ACCOUNTS RECEIVABLE | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 84.00% | 83.00% | |
Customer B | REVENUES | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25.00% | 0.00% | |
Customer B | ACCOUNTS RECEIVABLE | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 2.00% | 0.00% | |
Customer C | REVENUES | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.00% | 11.00% | |
Customer C | ACCOUNTS RECEIVABLE | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 1.00% | 1.00% | |
Customer D | REVENUES | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 10.00% | |
Customer D | ACCOUNTS RECEIVABLE | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 0.00% | |
Customer E | REVENUES | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 25.00% | |
Customer E | ACCOUNTS RECEIVABLE | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 0.00% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 21, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Bad debt (recoveries) expense | $ (99,000) | $ 10,125,000 | ||||
Deferred revenue | 3,169,000 | $ 3,250,000 | $ 8,281,000 | |||
Contract assets | 0 | $ 0 | $ 0 | |||
Shortfall Payments | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue | 0 | 4,900,000 | ||||
Deferred revenue | $ 3,000,000 | |||||
Gulfport | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Bad debt (recoveries) expense | 10,000,000 | |||||
Stingray Pressure Pumping | Gulfport | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unliquidated damages | 37,900,000 | |||||
Revenue | 14,800,000 | |||||
Bad debt (recoveries) expense | $ 31,000,000 | 2,900,000 | ||||
Other expenses | 1,300,000 | |||||
Muskie Proppant LLC | Gulfport | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unliquidated damages | 8,500,000 | |||||
Revenue | 2,100,000 | |||||
Bad debt (recoveries) expense | $ 1,000,000 | |||||
Muskie and Gulfport | Gulfport | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Bad debt (recoveries) expense | $ 200,000 | |||||
General unsecured claim | $ 3,100,000 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Contract with Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 3,250 | $ 8,281 |
Deduction for recognition of revenue | (67) | (12,329) |
Deduction for rebate credit recognized | (140) | |
Increase for deferral of shortfall payments | 7,023 | |
Increase for deferral of customer prepayments | 126 | 275 |
Balance, end of period | $ 3,169 | $ 3,250 |
Revenue - Performance Obligatio
Revenue - Performance Obligations and Contract Balances (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 0 | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation | $ 800,000 | ||
Practical expedients | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue recognition period | one year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue recognition period | three months |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Supplies | $ 8,216 | $ 4,557 |
Raw materials | 700 | 701 |
Work in process | 1,069 | 2,435 |
Finished goods | 373 | 673 |
Total inventories | $ 10,358 | $ 8,366 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 712,057 | $ 711,923 |
Deposits on equipment and equipment in process of assembly | 3,464 | 3,300 |
Total property, plant and equipment, net | 161,005 | 176,586 |
Accumulated depreciation of assets under operating leases, lessor | 7,000 | 6,600 |
Pressure pumping equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 220,959 | 220,414 |
Pressure pumping equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Pressure pumping equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Drilling rigs and related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 111,334 | 111,478 |
Drilling rigs and related equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Drilling rigs and related equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 15 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 166,483 | 166,873 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 7 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 20 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 46,286 | 46,006 |
Assets under operating leases, lessor | $ 7,600 | 7,600 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 15 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 39 years | |
Vehicles, trucks and trailers | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 103,630 | 103,982 |
Vehicles, trucks and trailers | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Vehicles, trucks and trailers | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 10 years | |
Coil tubing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 7,592 | 7,592 |
Coil tubing equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 4 years | |
Coil tubing equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 10 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 13,377 | 13,417 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 15 years | |
Property, plant, and equipment | $ 10,133 | 10,133 |
Rail improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 13,793 | 13,793 |
Rail improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 10 years | |
Rail improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 20 years | |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 18,470 | 18,235 |
Assets under operating leases, lessor | $ 6,000 | 6,000 |
Other property and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Other property and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 12 years | |
Assets held and used | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 715,521 | 715,223 |
Less: accumulated depreciation | 554,516 | 538,637 |
Total property, plant and equipment, net | $ 161,005 | $ 176,586 |
Property, Plant, and Equipment
Property, Plant, and Equipment - Narratives (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Gain (loss) on disposal of property and equipment | $ 593,000 | $ 615,000 |
Proceeds from disposal of property and equipment | 1,038,000 | 1,457,000 |
Comprehensive Income | ||
Property, Plant and Equipment [Line Items] | ||
Gain (loss) on disposal of property and equipment | 200,000 | 600,000 |
Proceeds from disposal of property and equipment | 600,000 | 1,500,000 |
Drilling rigs and related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gain (loss) on disposal of property and equipment | $ 400,000 | |
Proceeds from disposal of property and equipment | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Depreciation, Amortization, Accretion, and Depletion (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 16,925 | $ 20,856 |
Amortization expense | 195 | 253 |
Accretion and depletion expense | 47 | 37 |
Depreciation, depletion, amortization and accretion | $ 17,167 | $ 21,146 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule Of Changes in Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||||
Goodwill, gross period start | $ 104,448,000 | $ 104,448,000 | $ 104,448,000 | |
Accumulated impairment losses | (92,731,000) | (92,731,000) | $ (91,840,000) | |
Goodwill, total | 11,717,000 | 11,717,000 | 12,608,000 | |
Acquisitions | 0 | 0 | ||
Impairment losses | 0 | (900,000) | (891,000) | |
Goodwill, gross period end | 104,448,000 | 104,448,000 | ||
Infrastructure | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross period start | 891,000 | 891,000 | 891,000 | |
Accumulated impairment losses | (891,000) | (891,000) | 0 | |
Goodwill, total | 0 | 0 | 891,000 | |
Acquisitions | 0 | 0 | ||
Impairment losses | 0 | (891,000) | ||
Goodwill, gross period end | 891,000 | 891,000 | ||
Well Completion | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross period start | 86,043,000 | 86,043,000 | 86,043,000 | |
Accumulated impairment losses | (76,829,000) | (76,829,000) | (76,829,000) | |
Goodwill, total | 9,214,000 | 9,214,000 | 9,214,000 | |
Acquisitions | 0 | 0 | ||
Impairment losses | 0 | 0 | ||
Goodwill, gross period end | 86,043,000 | 86,043,000 | ||
Sand | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross period start | 2,684,000 | 2,684,000 | 2,684,000 | |
Accumulated impairment losses | (2,684,000) | (2,684,000) | (2,684,000) | |
Goodwill, total | 0 | 0 | 0 | |
Acquisitions | 0 | 0 | ||
Impairment losses | 0 | 0 | ||
Goodwill, gross period end | 2,684,000 | 2,684,000 | ||
Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross period start | 14,830,000 | $ 14,830,000 | 14,830,000 | |
Accumulated impairment losses | (12,327,000) | (12,327,000) | (12,327,000) | |
Goodwill, total | 2,503,000 | 2,503,000 | $ 2,503,000 | |
Acquisitions | 0 | 0 | ||
Impairment losses | 0 | 0 | ||
Goodwill, gross period end | $ 14,830,000 | $ 14,830,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 900,000 | $ 891,000 |
Amortization of intangible assets | $ 195,000 | $ 253,000 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted useful life (in years) | 3 years 9 months 18 days | ||
Minimum | Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 10 years | ||
Maximum | Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 20 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Definite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 2,366 | $ 2,561 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 7,850 | 7,850 |
Less: accumulated amortization | $ (5,484) | $ (5,289) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Aggregated Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 584 | |
2023 | 779 | |
2024 | 711 | |
2025 | 91 | |
2026 | 91 | |
Thereafter | 110 | |
Intangible assets, net | $ 2,366 | $ 2,561 |
Equity Method Investment - Narr
Equity Method Investment - Narrative (Details) $ in Millions | Dec. 21, 2018USD ($)helicopter | Mar. 31, 2022USD ($)helicopter | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Cobra Aviation Services LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of helicopters | helicopter | 2 | |||
Brim Acquisitions LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of helicopters | helicopter | 4 | |||
Number of helicopters under lease | helicopter | 5 | |||
Brim Equipment Assets | Cobra Aviation Services LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cash paid to acquire a business | $ 2 | |||
Brim Acquisitions LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contributions to equity investee | $ 2 | |||
Difference between carrying amount and underlying equity | $ 2.8 | $ 3.4 | ||
Adjustment to equity investee | $ (0.5) | $ (0.6) | ||
Brim Acquisitions LLC | Cobra Aviation Services LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% | |||
Brim Acquisitions LLC | Wexford | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 51.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses and Other Current Liabilities | ||
Accrued legal settlement | $ 19,334 | $ 18,966 |
State and local taxes payable | 12,879 | 13,772 |
Financed insurance premiums | 6,584 | 9,852 |
Deferred revenue | 3,169 | 3,250 |
Sale leaseback liability | 3,413 | 3,340 |
Accrued compensation and benefits | 2,977 | 5,133 |
Payroll tax liability | 2,052 | 2,810 |
Financing leases | 1,851 | 1,834 |
Insurance reserves | 1,237 | 1,413 |
Other | 2,254 | 2,146 |
Total accrued expenses and other current liabilities | 55,750 | 62,516 |
Other Long-Term Liabilities | ||
Financing leases | 3,906 | 4,375 |
Sale leaseback liability | 6,458 | 7,318 |
Total other long-term liabilities | $ 10,364 | $ 11,693 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities - Footnote (Details) - USD ($) $ in Millions | Jun. 01, 2021 | Dec. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Other Operating Cost and Expense, by Component [Line Items] | ||||
Term of contract | 42 months | |||
First National Capital, LLC | ||||
Schedule of Other Operating Cost and Expense, by Component [Line Items] | ||||
Proceeds from sale of assets | $ 9.5 | $ 5 | ||
Term of contract | 36 months | |||
Monthly rental payment amount | $ 0.2 | $ 0.1 | ||
Minimum | ||||
Schedule of Other Operating Cost and Expense, by Component [Line Items] | ||||
Financed insurance premium interest rate | 1.95% | 1.95% | ||
Maximum | ||||
Schedule of Other Operating Cost and Expense, by Component [Line Items] | ||||
Financed insurance premium interest rate | 2.45% | 2.45% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 85,967 | $ 83,370 |
Aviation note | 3,006 | 3,371 |
Unamortized debt issuance costs | (29) | (33) |
Total debt | 88,944 | 86,708 |
Less: current portion | 1,486 | 1,468 |
Total long-term debt | $ 87,458 | $ 85,240 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | Feb. 01, 2024USD ($) | Jul. 01, 2022 | Nov. 03, 2021USD ($) | Nov. 06, 2020USD ($) | Mar. 31, 2022USD ($) | Jun. 30, 2022 | May 31, 2022USD ($) | May 05, 2022USD ($) | May 04, 2022USD ($) | May 03, 2022USD ($) | Apr. 01, 2022USD ($) | Feb. 28, 2022USD ($) | Dec. 31, 2021USD ($) | Nov. 02, 2021USD ($) |
Line of Credit Facility [Line Items] | ||||||||||||||
Outstanding borrowing under the credit facility | $ 85,967 | $ 83,370 | ||||||||||||
Debt instrument, debt covenant, percentage of minimum prepayments made with non-recurring proceeds | 50.00% | 50.00% | ||||||||||||
Aviation note | 3,006 | 3,371 | ||||||||||||
Aviation Note | Leopard Aviation LLC And Cobra Aviation Services LLC | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt term | 39 months | |||||||||||||
Aviation note | $ 4,600 | |||||||||||||
Proceeds from notes payable | 4,500 | |||||||||||||
Periodic monthly payments | 100 | |||||||||||||
Certificate of deposit | $ 1,800 | |||||||||||||
Aviation Note | Leopard Aviation LLC And Cobra Aviation Services LLC | Forecast | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Periodic monthly payments | $ 200 | |||||||||||||
Subsequent Event | Aviation Note | Leopard Aviation LLC And Cobra Aviation Services LLC | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt Covenant, Minimum Cash Requirement | $ 600 | $ 750 | ||||||||||||
Revolving Credit Facility | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Outstanding borrowing under the credit facility | 86,000 | 83,400 | ||||||||||||
Remaining borrowing capacity | $ 11,500 | 16,500 | ||||||||||||
Maximum borrowing capacity | $ 120,000 | $ 130,000 | ||||||||||||
Debt instrument, debt covenant, minimum adjusted EBITDA required | 6,000 | |||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||||
Debt instrument, debt covenant, minimum excess availability covenant | $ 10,000 | $ 7,500 | ||||||||||||
Revolving Credit Facility | Line of Credit | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Reserve amount required | 7,500 | 10,000 | ||||||||||||
Revolving Credit Facility | Subsequent Event | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Outstanding borrowing under the credit facility | $ 84,700 | |||||||||||||
Remaining borrowing capacity | 10,300 | |||||||||||||
Debt instrument, debt covenant, minimum adjusted EBITDA required | $ 4,700 | |||||||||||||
Debt instrument, debt covenant, minimum excess availability covenant | $ 10,000 | |||||||||||||
Revolving Credit Facility | Subsequent Event | Line of Credit | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Reserve amount required | 10,000 | |||||||||||||
Letter of Credit | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Remaining borrowing capacity | $ 7,500 | $ 9,000 | ||||||||||||
Debt instrument, debt covenant, minimum excess availability covenant for restricted payments | $ 20,000 | |||||||||||||
Letter of Credit | Subsequent Event | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Remaining borrowing capacity | $ 7,500 | |||||||||||||
Prime Rate | Aviation Note | Leopard Aviation LLC And Cobra Aviation Services LLC | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||||
Minimum | Aviation Note | Leopard Aviation LLC And Cobra Aviation Services LLC | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest coverage rate | 1.25 | |||||||||||||
Minimum | Revolving Credit Facility | Subsequent Event | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest coverage rate | 1.1 | 0.85 | ||||||||||||
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Basis spread on variable rate | 3.50% |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022helicopter | |
Leopard Aviation LLC | |
Variable Interest Entity [Line Items] | |
Number of helicopters owned | 1 |
Dire Wolf Energy Services LLC | Cobra Aviation Services LLC | |
Variable Interest Entity [Line Items] | |
Interest transferred | 100.00% |
Predator Aviation LLC | Leopard Aviation LLC | |
Variable Interest Entity [Line Items] | |
Interest transferred | 100.00% |
Cobra Aviation Services LLC | |
Variable Interest Entity [Line Items] | |
Number of helicopters | 2 |
ARS | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 100.00% |
Brim Acquisitions LLC | |
Variable Interest Entity [Line Items] | |
Percentage of ownership | 49.00% |
Selling, General and Administ_3
Selling, General and Administrative Expense - Schedule of Selling, General and Administrative Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Non-cash expenses: | ||
Bad debt (recoveries) expense | $ (99) | $ 10,125 |
Stock based compensation | 241 | 344 |
Total SG&A expense | 8,668 | 18,024 |
From Selling, General And Administrative Expense To Other, Net | ||
Non-cash expenses: | ||
Legal expense | 2,800 | |
Gulfport | ||
Non-cash expenses: | ||
Bad debt (recoveries) expense | 10,000 | |
Selling, General and Administrative Expenses | ||
Cash expenses: | ||
Compensation and benefits | 2,983 | 4,694 |
Professional services | 3,637 | 581 |
Other | 1,906 | 2,342 |
Total cash SG&A expense | 8,526 | 7,617 |
Non-cash expenses: | ||
Bad debt (recoveries) expense | (99) | 10,125 |
Stock based compensation | 241 | 282 |
Total non-cash SG&A expense | 142 | 10,407 |
Total SG&A expense | $ 8,668 | $ 18,024 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes | $ 3,688 | $ (2,623) |
Effective federal income tax rate | 33.00% | 17.00% |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,747 | $ 2,462 |
Short-term lease expense | 36 | 238 |
Amortization of right-of-use assets | 403 | 388 |
Interest on lease liabilities | 49 | 51 |
Total lease expense | $ 2,235 | $ 3,139 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating lease right-of-use assets | $ 11,675 | $ 12,168 |
Current operating lease liability | 5,710 | 5,942 |
Long-term operating lease liability | 5,731 | 5,918 |
Finance leases: | ||
Property, plant and equipment, net | 5,663 | 6,065 |
Financing leases | 1,851 | 1,834 |
Other liabilities | $ 3,906 | $ 4,375 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Leases - Other Supplemental Inf
Leases - Other Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 1,672 | $ 2,489 | |
Operating cash flows from finance leases | 49 | 51 | |
Financing cash flows from finance leases | 452 | 406 | |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 1,383 | 77 | |
Finance leases | $ 0 | $ 72 | |
Weighted-average remaining lease term: | |||
Operating leases | 3 years 1 month 6 days | 3 years 1 month 6 days | |
Finance leases | 3 years 1 month 6 days | 3 years 3 months 18 days | |
Weighted-average discount rate: | |||
Operating leases | 3.30% | 3.30% | |
Finance leases | 3.30% | 3.30% |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Maturity (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases | |
Remainder of 2022 | $ 4,698 |
2023 | 4,028 |
2024 | 2,042 |
2025 | 784 |
2026 | 146 |
Thereafter | 407 |
Total lease payments | 12,105 |
Less: Present value discount | 664 |
Present value of lease payments | 11,441 |
Finance Leases | |
Remainder of 2022 | 1,503 |
2023 | 2,262 |
2024 | 965 |
2025 | 524 |
2026 | 795 |
Thereafter | 0 |
Total lease payments | 6,049 |
Less: Present value discount | 292 |
Present value of lease payments | $ 5,757 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Lease revenue | $ 0.7 | $ 0.4 |
Loss Per Share - Schedule of Ea
Loss Per Share - Schedule of Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allocation of loss: | ||
Net loss | $ (14,817,000) | $ (12,440,000) |
Weighted average common shares outstanding (in shares) | 46,845 | 45,932 |
Basic loss per share (in USD per share) | $ (0.32) | $ (0.27) |
Diluted loss per share: | ||
Weighted average common shares, including dilutive effect (in shares) | 46,845 | 45,932 |
Diluted loss per share (in USD per share) | $ (0.32) | $ (0.27) |
Incremental shares of potentially diluted restricted stock awards (in shares) | $ 0 | $ 0 |
Equity Based Compensation - Nar
Equity Based Compensation - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Jan. 01, 2019 |
Specified Member Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the award as of the modification dates or grant date | $ 5.6 | |
Non-Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the award as of the modification dates or grant date | $ 18.9 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 4,500,000 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the award as of the modification dates or grant date | $ 0.5 | |
Unrecognized compensation cost | 9 months 18 days | |
Compensation expense | $ 0.2 | $ 0.3 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule Of Share-Based Compensation (Details) - Restricted Stock - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Unvested Restricted Shares | ||
Unvested shares beginning balance (in shares) | 1,128,205 | 1,914,782 |
Granted (in shares) | 0 | 128,205 |
Vested (in shares) | (500,000) | (914,782) |
Forfeited (in shares) | 0 | 0 |
Unvested shares ending balance (in shares) | 628,205 | 1,128,205 |
Weighted Average Grant-Date Fair Value | ||
Unvested shares at beginning of period (in USD per share) | $ 1.27 | $ 1.21 |
Granted (in USD per share) | 0 | 3.90 |
Vested (in USD per share) | 0.93 | 1.52 |
Forfeited (in USD per share) | 0 | 0 |
Unvested shares at end of period (in USD per share) | $ 1.54 | $ 1.27 |
Related Party Transactions - Re
Related Party Transactions - Revenues and Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Receivables from related parties | $ 313 | $ 88 | |
Related parties | |||
Related Party Transaction [Line Items] | |||
REVENUES | 274 | $ 17,131 | |
ACCOUNTS RECEIVABLE | 313 | 88 | |
OTHER | 0 | (515) | |
ACCOUNTS RECEIVABLE | 0 | 0 | |
Stingray Pressure Pumping and Gulfport | Related parties | |||
Related Party Transaction [Line Items] | |||
REVENUES | 0 | 14,812 | |
ACCOUNTS RECEIVABLE | 0 | 0 | |
OTHER | 0 | (514) | |
ACCOUNTS RECEIVABLE | 0 | 0 | |
Muskie and Gulfport | Related parties | |||
Related Party Transaction [Line Items] | |||
REVENUES | 0 | 2,145 | |
ACCOUNTS RECEIVABLE | 0 | 0 | |
OTHER | 0 | (1) | |
ACCOUNTS RECEIVABLE | 0 | 0 | |
Cobra Aviation/ARS/Leopard and Brim Equipment | Related parties | |||
Related Party Transaction [Line Items] | |||
REVENUES | 60 | 43 | |
ACCOUNTS RECEIVABLE | 95 | 85 | |
Panther and El Toro | Related parties | |||
Related Party Transaction [Line Items] | |||
REVENUES | 214 | 131 | |
ACCOUNTS RECEIVABLE | 214 | 0 | |
Other Relationships | Related parties | |||
Related Party Transaction [Line Items] | |||
REVENUES | 0 | $ 0 | |
ACCOUNTS RECEIVABLE | $ 4 | $ 3 |
Related Party Transactions - Co
Related Party Transactions - Cost of Revenues of Accounts Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | $ 0 | $ 193 | |
Related parties | |||
Related Party Transaction [Line Items] | |||
COST OF REVENUE | 135 | 109 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 0 | 193 | |
Cobra Aviation/ARS/Leopard and Brim Equipment | Related parties | |||
Related Party Transaction [Line Items] | |||
COST OF REVENUE | 19 | 19 | |
The Company and Caliber | Related parties | |||
Related Party Transaction [Line Items] | |||
COST OF REVENUE | 89 | 64 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 0 | 185 | |
Other Relationships | Related parties | |||
Related Party Transaction [Line Items] | |||
COST OF REVENUE | 27 | 26 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 0 | $ 8 | |
ACCOUNTS PAYABLE | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 4 | $ 5 | |
ACCOUNTS PAYABLE | Cobra Aviation/ARS/Leopard and Brim Equipment | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 4 | 5 | |
ACCOUNTS PAYABLE | The Company and Caliber | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 0 | 0 | |
ACCOUNTS PAYABLE | Other Relationships | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 0 | 0 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 2 | 0 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | The Company and Caliber | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | 0 | 0 | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Other Relationships | Related parties | |||
Related Party Transaction [Line Items] | |||
ACCOUNTS PAYABLE | $ 2 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | Dec. 21, 2018USD ($)helicopter | Mar. 31, 2022 |
Cobra Aviation Services LLC | ||
Related Party Transaction [Line Items] | ||
Number of assets purchased | helicopter | 2 | |
Brim Acquisitions LLC | ||
Related Party Transaction [Line Items] | ||
Initial capital of acquisition | $ | $ 2 | |
Brim Acquisitions LLC | Cobra Aviation Services LLC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Brim Acquisitions LLC | Wexford | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 51.00% | |
Wexford | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership | 48.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Dec. 01, 2022 | Aug. 01, 2022 | Aug. 02, 2021 | May 13, 2021 | Mar. 25, 2020 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 21, 2021 | May 26, 2021 | Dec. 31, 2020 | Nov. 13, 2020 | Jan. 21, 2020 |
Other Commitments [Line Items] | ||||||||||||||
Insurance deductible | $ 300,000 | $ 100,000 | ||||||||||||
Insurance aggregate stop loss | 5,400,000 | 5,400,000 | ||||||||||||
Workers' compensation liability, current | 1,200,000 | 1,400,000 | ||||||||||||
Workers compensation and auto claims insurance, directors and officers liability | 1,000,000 | 1,000,000 | ||||||||||||
Workers compensation and auto claims insurance, directors and officers liability aggregate limit | 10,000,000 | 10,000,000 | ||||||||||||
Workers compensation and auto claims insurance, aggregate stop loss per claim basis | 200,000 | |||||||||||||
Workers compensation and auto claims insurance, aggregate stop loss per calendar year | 5,800,000 | |||||||||||||
Insurance reserves | $ 1,200,000 | 1,600,000 | ||||||||||||
Warranty accrual, term | 1 year | |||||||||||||
Warranty accrual | $ 0 | 0 | ||||||||||||
Product warranty expense | 0 | $ 0 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Recovery amount in undisputed claims | $ 61,700,000 | |||||||||||||
Revenues | 62,298,000 | 66,804,000 | ||||||||||||
Bad debt (recoveries) expense | (99,000) | 10,125,000 | ||||||||||||
Receivables from related parties, net | 313,000 | 88,000 | ||||||||||||
Contract amount | $ 100,000,000 | |||||||||||||
Legal settlement, amount | $ 6,500,000 | |||||||||||||
Contracts receivable, claims and uncertain amounts, expected to be collected, term | 10 days | |||||||||||||
Accrued legal settlement | $ 19,334,000 | 18,966,000 | ||||||||||||
Maximum annual contributions per employee, percent | 92.00% | |||||||||||||
Employer matching contribution, percent of match | 3.00% | |||||||||||||
Employer discretionary contribution amount | $ 400,000 | 500,000 | ||||||||||||
Capital Addition Purchase Commitments | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Future minimum payments | 2,800,000 | |||||||||||||
Accounts Payable and Accrued Liabilities | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Accrued legal settlement | 19,300,000 | |||||||||||||
Forecast | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Legal settlement, amount | $ 9,250,000 | $ 9,250,000 | ||||||||||||
Minimum | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Litigation settlement, interest-bearing, interest rate | 6.00% | |||||||||||||
Maximum | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Litigation settlement, interest-bearing, interest rate | 12.00% | |||||||||||||
Outstanding Bid Bond | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Commitments and contingencies | 0 | 600,000 | ||||||||||||
Performance And Payment Bond | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Commitments and contingencies | 13,800,000 | 20,300,000 | ||||||||||||
Estimated cost to complete the project | 7,700,000 | |||||||||||||
Puerto Rico Electric Power Authority (PREPA) | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Accounts receivable from related parties | 227,000,000 | |||||||||||||
Interest charged on accounts receivable | 120,700,000 | $ 110,800,000 | ||||||||||||
Accounts receivable, contract costs, amount expected to be authorized | $ 47,000,000 | |||||||||||||
Mastec Renewables Puerto Rico, LLC | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Contract amount | $ 500,000,000 | |||||||||||||
Gulfport | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Bad debt (recoveries) expense | 10,000,000 | |||||||||||||
Gulfport | Gulfport | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Interest charged on accounts receivable | $ 1,400,000 | $ 3,300,000 | ||||||||||||
Due from related parties | 19,400,000 | 46,900,000 | ||||||||||||
Litigation liability | $ 1,800,000 | $ 1,800,000 | ||||||||||||
Unliquidated damages | 46,400,000 | |||||||||||||
Revenues | 27,100,000 | |||||||||||||
Bad debt (recoveries) expense | 3,800,000 | |||||||||||||
Gain from litigation settlement | $ 300,000 | |||||||||||||
Gulfport | Gulfport | Pre-Petition Products And Services | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Receivables from related parties, net | 6,100,000 | |||||||||||||
Gulfport | Gulfport | Pre-Petition Receivables | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Receivables from related parties, net | 500,000 | |||||||||||||
Gulfport | Stingray Pressure Pumping | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Unliquidated damages | 37,900,000 | |||||||||||||
Bad debt (recoveries) expense | $ 31,000,000 | $ 2,900,000 | ||||||||||||
Other expenses | 1,300,000 | |||||||||||||
Gulfport | Muskie and Gulfport | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Bad debt (recoveries) expense | $ 200,000 | |||||||||||||
General unsecured claim | $ 3,100,000 | |||||||||||||
Foreman Electric Services, Inc. | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Loss contingency, damages awarded, value | $ 250,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Letters of Credit (Details) - Letter of Credit - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Total letters of credit | $ 7,538 | $ 9,039 |
Environmental remediation | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | 3,694 | 3,694 |
Insurance programs | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | 3,389 | 3,890 |
Rail car commitments | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | 455 | 455 |
Bonding program | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | $ 0 | $ 1,000 |
Reporting Segments (Details)
Reporting Segments (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Revenues | $ 62,298 | $ 66,804 | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 54,480 | 48,080 | |
Intersegment cost of revenues | 0 | 0 | |
Total cost of revenue | 54,480 | 48,080 | |
Selling, general and administrative | 8,668 | 18,024 | |
Depreciation, depletion, amortization and accretion | 17,167 | 21,146 | |
Operating loss | (18,017) | (20,446) | |
Interest expense, net | 2,349 | 1,225 | |
Other (income) expense, net | (9,237) | (6,608) | |
Income (loss) before income taxes | (11,129) | (15,063) | |
Total assets | 702,447 | $ 720,892 | |
Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Revenues | 23,009 | 30,200 | |
Well Completion | |||
Segment Reporting Information [Line Items] | |||
Revenues | 23,630 | 22,901 | |
Sand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,347 | 8,705 | |
Drilling | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,852 | 919 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,460 | 4,079 | |
Intersegment revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Intersegment revenues | Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Intersegment revenues | Well Completion | |||
Segment Reporting Information [Line Items] | |||
Revenues | 244 | 54 | |
Intersegment revenues | Sand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 832 | 0 | |
Intersegment revenues | Drilling | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3 | 14 | |
Intersegment revenues | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 272 | 640 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (1,351) | (708) | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 0 | 0 | |
Intersegment cost of revenues | (1,277) | (708) | |
Total cost of revenue | (1,277) | (708) | |
Selling, general and administrative | 0 | 0 | |
Depreciation, depletion, amortization and accretion | 0 | 0 | |
Operating loss | (74) | 0 | |
Interest expense, net | 0 | 0 | |
Other (income) expense, net | 0 | 0 | |
Income (loss) before income taxes | (74) | 0 | |
Total assets | (75,212) | (75,948) | |
Operating Segments | Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Revenues | 23,009 | 30,200 | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 18,887 | 27,377 | |
Intersegment cost of revenues | 16 | 45 | |
Total cost of revenue | 18,903 | 27,422 | |
Selling, general and administrative | 4,645 | 3,739 | |
Depreciation, depletion, amortization and accretion | 4,314 | 6,667 | |
Operating loss | (4,853) | (7,628) | |
Interest expense, net | 1,542 | 669 | |
Other (income) expense, net | (9,587) | (6,486) | |
Income (loss) before income taxes | 3,192 | (1,811) | |
Total assets | 424,987 | 427,626 | |
Operating Segments | Well Completion | |||
Segment Reporting Information [Line Items] | |||
Revenues | 23,874 | 22,955 | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 21,839 | 9,003 | |
Intersegment cost of revenues | 1,031 | 394 | |
Total cost of revenue | 22,870 | 9,397 | |
Selling, general and administrative | 2,039 | 10,612 | |
Depreciation, depletion, amortization and accretion | 6,444 | 6,683 | |
Operating loss | (7,479) | (3,737) | |
Interest expense, net | 371 | 254 | |
Other (income) expense, net | (49) | 439 | |
Income (loss) before income taxes | (7,801) | (4,430) | |
Total assets | 53,000 | 56,036 | |
Operating Segments | Sand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,179 | 8,705 | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 7,788 | 5,862 | |
Intersegment cost of revenues | 0 | 0 | |
Total cost of revenue | 7,788 | 5,862 | |
Selling, general and administrative | 828 | 2,049 | |
Depreciation, depletion, amortization and accretion | 1,795 | 2,140 | |
Operating loss | (1,232) | (1,346) | |
Interest expense, net | 162 | 93 | |
Other (income) expense, net | (79) | (794) | |
Income (loss) before income taxes | (1,315) | (645) | |
Total assets | 150,849 | 156,519 | |
Operating Segments | Drilling | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,855 | 933 | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 2,372 | 1,604 | |
Intersegment cost of revenues | 160 | 0 | |
Total cost of revenue | 2,532 | 1,604 | |
Selling, general and administrative | 292 | 422 | |
Depreciation, depletion, amortization and accretion | 1,680 | 2,165 | |
Operating loss | (1,649) | (3,258) | |
Interest expense, net | 104 | 63 | |
Other (income) expense, net | 0 | (9) | |
Income (loss) before income taxes | (1,753) | (3,312) | |
Total assets | 27,316 | 27,457 | |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,732 | 4,719 | |
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 3,594 | 4,234 | |
Intersegment cost of revenues | 70 | 269 | |
Total cost of revenue | 3,664 | 4,503 | |
Selling, general and administrative | 864 | 1,202 | |
Depreciation, depletion, amortization and accretion | 2,934 | 3,491 | |
Operating loss | (2,730) | (4,477) | |
Interest expense, net | 170 | 146 | |
Other (income) expense, net | 478 | 242 | |
Income (loss) before income taxes | (3,378) | $ (4,865) | |
Total assets | $ 121,507 | $ 129,202 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Thousands | May 09, 2022 | Mar. 31, 2022 |
Subsequent Event [Line Items] | ||
Operating lease liability | $ 11,441 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Term of contract | 3 years | |
Operating lease liability | $ 1,800 | |
Equipment ordered aggregate commitments | 1,700 | |
Subsequent Event | Infrastructure | ||
Subsequent Event [Line Items] | ||
Issuance of performance and payment bond | $ 1,500 |