Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38035 | |
Entity Registrant Name | ProPetro Holding Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3685382 | |
Entity Address, Address Line One | 1706 South Midkiff, | |
Entity Address, City or Town | Midland | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79701 | |
City Area Code | 432 | |
Local Phone Number | 688-0012 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | PUMP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 112,772,097 | |
Entity Central Index Key | 0001680247 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash, cash equivalents and restricted cash | $ 62,113 | $ 88,862 |
Accounts receivable - net of allowance for credit losses of $202 and $419, respectively | 251,104 | 215,925 |
Inventories | 18,159 | 5,034 |
Prepaid expenses | 8,607 | 8,643 |
Short-term investment, net | 6,437 | 10,283 |
Other current assets | 704 | 38 |
Total current assets | 347,124 | 328,785 |
PROPERTY AND EQUIPMENT - net of accumulated depreciation | 1,001,109 | 922,735 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 5,672 | 3,147 |
OTHER NONCURRENT ASSETS: | ||
Goodwill | 23,624 | 23,624 |
Intangible assets - net of amortization | 53,480 | 56,345 |
Other noncurrent assets | 2,370 | 1,150 |
Total other noncurrent assets | 79,474 | 81,119 |
TOTAL ASSETS | 1,433,379 | 1,335,786 |
CURRENT LIABILITIES: | ||
Accounts payable | 218,147 | 234,299 |
Accrued and other current liabilities | 57,022 | 49,027 |
Operating lease liabilities | 1,125 | 854 |
Total current liabilities | 276,294 | 284,180 |
DEFERRED INCOME TAXES | 84,162 | 65,265 |
LONG-TERM DEBT | 60,000 | 30,000 |
NONCURRENT OPERATING LEASE LIABILITIES | 4,564 | 2,308 |
Total liabilities | 425,020 | 381,753 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $0.001 par value, 30,000,000 shares authorized, none issued, respectively | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized, 112,957,976 and 114,515,008 shares issued, respectively | 113 | 114 |
Additional paid-in capital | 956,856 | 970,519 |
Retained earnings (accumulated deficit) | 51,390 | (16,600) |
Total shareholders’ equity | 1,008,359 | 954,033 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,433,379 | $ 1,335,786 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 202 | $ 419 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 112,957,976 | 114,515,008 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] | ||
REVENUE - Service revenue | $ 435,249 | $ 315,083 | $ 858,819 | $ 597,763 |
COSTS AND EXPENSES | ||||
Cost of services (exclusive of depreciation and amortization) | 297,791 | 218,813 | 578,277 | 416,083 |
General and administrative expenses (inclusive of stock-based compensation) | 29,021 | 25,135 | 57,767 | 56,842 |
Depreciation and amortization | 52,889 | 40,969 | 103,687 | 78,973 |
Impairment expense | 0 | 57,454 | 0 | 57,454 |
Loss on disposal of assets | 3,065 | 12,978 | 25,145 | 22,947 |
Total costs and expenses | 382,766 | 355,349 | 764,876 | 632,299 |
OPERATING INCOME (LOSS) | 52,483 | (40,266) | 93,943 | (34,536) |
OTHER (EXPENSE) INCOME: | ||||
Interest expense | (1,180) | (669) | (1,847) | (803) |
Other income (expense) | 72 | 6 | (3,632) | 10,364 |
Total other (expense) income | (1,108) | (663) | (5,479) | 9,561 |
INCOME (LOSS) BEFORE INCOME TAXES | 51,375 | (40,929) | 88,464 | (24,975) |
INCOME TAX (EXPENSE) BENEFIT | (12,118) | 8,069 | (20,474) | 3,932 |
NET INCOME (LOSS) | $ 39,257 | $ (32,860) | $ 67,990 | $ (21,043) |
NET INCOME (LOSS) PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.34 | $ (0.32) | $ 0.59 | $ (0.20) |
Diluted (in dollars per share) | $ 0.34 | $ (0.32) | $ 0.59 | $ (0.20) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic (in shares) | 114,737 | 104,236 | 114,809 | 103,961 |
Diluted (in shares) | 114,796 | 104,236 | 115,102 | 103,961 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Defecit) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 103,437 | |||
Balance at beginning of period at Dec. 31, 2021 | $ 826,302 | $ 103 | $ 844,829 | $ (18,630) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation cost | 11,364 | 11,364 | ||
Issuance of equity awards, net (in shares) | 562 | |||
Issuance of equity awards, net | 420 | $ 1 | 419 | |
Tax withholdings paid for net settlement of equity awards | (2,691) | (2,691) | ||
Net income (loss) | 11,817 | 11,817 | ||
Balance at end of period (in shares) at Mar. 31, 2022 | 103,999 | |||
Balance at end of period at Mar. 31, 2022 | 847,212 | $ 104 | 853,921 | (6,813) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 103,437 | |||
Balance at beginning of period at Dec. 31, 2021 | 826,302 | $ 103 | 844,829 | (18,630) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (21,043) | |||
Balance at end of period (in shares) at Jun. 30, 2022 | 104,308 | |||
Balance at end of period at Jun. 30, 2022 | 817,036 | $ 104 | 856,605 | (39,673) |
Balance at beginning of period (in shares) at Mar. 31, 2022 | 103,999 | |||
Balance at beginning of period at Mar. 31, 2022 | 847,212 | $ 104 | 853,921 | (6,813) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation cost | 3,458 | 3,458 | ||
Issuance of equity awards, net (in shares) | 309 | |||
Issuance of equity awards, net | 321 | 321 | ||
Tax withholdings paid for net settlement of equity awards | (1,095) | (1,095) | ||
Net income (loss) | (32,860) | (32,860) | ||
Balance at end of period (in shares) at Jun. 30, 2022 | 104,308 | |||
Balance at end of period at Jun. 30, 2022 | 817,036 | $ 104 | 856,605 | (39,673) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 114,515 | |||
Balance at beginning of period at Dec. 31, 2022 | 954,033 | $ 114 | 970,519 | (16,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation cost | 3,536 | 3,536 | ||
Issuance of equity awards, net (in shares) | 656 | |||
Issuance of equity awards, net | 0 | $ 1 | (1) | |
Tax withholdings paid for net settlement of equity awards | (3,379) | (3,379) | ||
Net income (loss) | 28,733 | 28,733 | ||
Balance at end of period (in shares) at Mar. 31, 2023 | 115,171 | |||
Balance at end of period at Mar. 31, 2023 | 982,923 | $ 115 | 970,675 | 12,133 |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 114,515 | |||
Balance at beginning of period at Dec. 31, 2022 | 954,033 | $ 114 | 970,519 | (16,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 67,990 | |||
Balance at end of period (in shares) at Jun. 30, 2023 | 112,958 | |||
Balance at end of period at Jun. 30, 2023 | 1,008,359 | $ 113 | 956,856 | 51,390 |
Balance at beginning of period (in shares) at Mar. 31, 2023 | 115,171 | |||
Balance at beginning of period at Mar. 31, 2023 | 982,923 | $ 115 | 970,675 | 12,133 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation cost | 3,758 | 3,758 | ||
Issuance of equity awards, net (in shares) | 76 | |||
Issuance of equity awards, net | 0 | |||
Tax withholdings paid for net settlement of equity awards | (4) | (4) | ||
Share repurchases (in shares) | (2,289) | |||
Share repurchases | (17,470) | $ (2) | (17,468) | |
Excise tax on share repurchases | (105) | (105) | ||
Net income (loss) | 39,257 | 39,257 | ||
Balance at end of period (in shares) at Jun. 30, 2023 | 112,958 | |||
Balance at end of period at Jun. 30, 2023 | $ 1,008,359 | $ 113 | $ 956,856 | $ 51,390 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 67,990 | $ (21,043) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 103,687 | 78,973 |
Impairment expense | 0 | 57,454 |
Deferred income tax expense | 18,897 | (4,321) |
Amortization of deferred debt issuance costs | 140 | 655 |
Stock-based compensation | 7,294 | 14,822 |
Loss on disposal of assets | 25,145 | 22,947 |
Unrealized loss on short-term investment | 3,846 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (35,178) | (53,878) |
Other current assets | (983) | 561 |
Inventories | (6,792) | 457 |
Prepaid expenses | (144) | 3,343 |
Accounts payable | (3,160) | (426) |
Accrued and other current liabilities | 5,769 | 3,764 |
Increase (Decrease) in Interest Payable, Net | 503 | 0 |
Net cash provided by operating activities | 187,014 | 103,308 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (223,775) | (144,519) |
Proceeds from sale of assets | 2,044 | 2,951 |
Net cash used in investing activities | (221,731) | (141,568) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowings | 30,000 | 0 |
Payment of debt issuance costs | (1,179) | (824) |
Proceeds from exercise of equity awards | 0 | 741 |
Tax withholdings paid for net settlement of equity awards | (3,383) | (3,786) |
Share repurchases | (17,470) | 0 |
Net cash provided by (used in) financing activities | 7,968 | (3,869) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (26,749) | (42,129) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period | 88,862 | 111,918 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period | 62,113 | 69,789 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Capital expenditures included in accounts payable and accrued liabilities | 71,080 | 53,108 |
Summary of cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash | 49,890 | 69,789 |
Restricted cash | 12,223 | 0 |
Total cash, cash equivalents and restricted cash — End of period | $ 62,113 | $ 69,789 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of ProPetro Holding Corp. and its subsidiaries (the "Company," "we," "us" or "our") have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission ("SEC") for interim financial information and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. Those adjustments (which consisted of normal recurring accruals) that are, in the opinion of management, necessary for a fair presentation of the results of the interim periods have been made. Results of operations for such interim periods are not necessarily indicative of the results of operations for a full year due to changes in market conditions and other factors. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in our Form 10-K filed with the SEC (our "Form 10-K"). Revenue Recognition The Company’s services are sold based upon contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of the principal activities, aggregated into one reportable segment—"Completion Services," from which the Company generates its revenue and "All Other" category. Completion Services — Completion Services consists of downhole pumping services, which includes hydraulic fracturing, cementing and wireline operations. Hydraulic fracturing is an oil well completion technique, which is part of the overall well completion process. It is a well-stimulation technique intended to optimize hydrocarbon flow paths during the completion phase of shale wellbores. The process involves the injection of water, sand and chemicals under high pressure into shale formations. Our hydraulic fracturing contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed accurately depicts how our hydraulic fracturing services are transferred to our customers over time. In addition, certain of our hydraulic fracturing equipment may be entitled to reservation fee charges if a customer were to reserve committed hydraulic fracturing equipment. The Company recognizes revenue related to reservation fee charges on a daily basis as the performance obligations are met. Acidizing, which is part of our hydraulic fracturing operating segment, involves a well-stimulation technique where acid or similar chemicals are injected under pressure into formations to form or expand fissures. Our acidizing contracts have one performance obligatio n , s atisfied at a point-in-time, upon completion of the contracted service or sale of the acid or chemical when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize acidizing revenue at a point-in-time, upon completion of the performance obligation. Our cementing services use pressure pumping equipment to deliver a slurry of liquid cement that is pumped down a well between the casing and the borehole. Our cementing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize cementing revenue at a point-in-time, upon completion of the performance obligation. Wireline services (including pumpdown) are oil well completion techniques, which are part of the well completion process. Our wireline services utilize equipment with a drum of wireline to deploy perforating guns in the well to perforate the casing, cement, and formation. Once the well is perforated, the well can be fractured. Pumpdown utilizes pressure pumping equipment to pump water into the well to deploy perforating guns attached to wireline through the lateral section of a well. Our wireline contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed accurately depicts how our wireline services are transferred to our customers over time. In addition, certain of our wireline equipment is entitled to daily equipment charges while the equipment is on the customer’s locations. The Company recognizes revenue related to daily equipment charges on a daily basis as the performance obligations are met. The transaction price for each performance obligation for all our completion services is fixed per our contracts with our customers. All Other — All Other consisted of coiled tubing services, which are complementary downhole well completion/remedial services. The performance obligation for these services had a fixed transaction price which was satisfied at a point-in-time upon completion of the service when control was transferred to the customer. Accordingly, we recognized revenue at a point-in-time, upon completion of the service and transfer of control to the custome r. Effective September 1, 2022, we shut down our coiled tubing operations, and disposed of all our coiled tubing assets. Restricted Cash and Customer Cash Advances Our restricted cash relates to cash advances received from a customer in connection with our contract with the customer to provide electric hydraulic fracturing equipment and services. The restricted cash will be used to pay for contractually agreed upon expenditures. The cash advances from the customer will be credited towards the customer’s invoice as our revenue performance obligations are met over the contract period. Our restricted cash balances as of June 30, 2023 and December 31, 2022 , were $12.2 million and $10.0 million, respectively. The cash advances received represent contract liabilities in connection with the performance of certain completion services. The cash advance (contract liability) balances, which are included in accrued and other current liabilities in our condensed consolidated balance sheets, were $20.3 million and $10.0 million as of June 30, 2023 and December 31, 2022 , respectively. During the six months ended June 30, 2023, we recognized revenue of $2.7 million from the cash advance amount outstanding at the beginning of the period. Accounts Receivable Accounts receivables are stated at the amount billed and billable to customers. At June 30, 2023 and December 31, 2022, accrued revenue (unbilled receivable) included as part of our accounts receivable was $54.2 million and $51.9 million , respectively. At June 30, 2023, the transaction price allocated to the remaining performance obligation for our partially completed hydraulic fracturing and wireline operations was $83.5 million , which is expected to be completed and recognized as revenue within one month following the current period balance sheet date. Allowance for Credit Losses As of June 30, 2023, the Company had $0.2 million allowance for credit losses. Our allowance for credit losses is based on the evaluation of both our historic collection experience and the economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and also considered separately customers with receivable balances that may be negatively impacted by current or future economic developments and market conditions. While the Company has not experienced significant credit losses in the past and has not yet seen material adverse changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of depressed economic activities, including the potential impact of periodically adjusted borrowing base limits, level of hedged production, or unforeseen well shut-downs may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses. The table below shows a summary of allowance for credit losses during the six months ended June 30, 2023: (in thousands) Balance - January 1, 2023 $ 419 Provision for credit losses during the period — Write-off during the period (217) Balance - June 30, 2023 $ 202 Reclassification of Prior Period Presentation Certain reclassifications have been made to prior period amounts to conform to the current period presentation. These reclassifications had no effect on our balance sheet, operating and net income (loss) or cash flows from operating, investing and financing activities. Change in Accounting Estimates Current trends in hydraulic fracturing equipment operating conditions such as larger pads, changes to job design and increased pumping hours per day have resulted in shorter useful lives for certain critical components that are included in our property and equipment assets. These recent trends necessitated a review of useful lives of our critical components like fluid ends, power ends, hydraulic fracturing units and other components in the first quarter of 2023. We determined that the estimated useful life of fluid ends is now less than one year, resulting in our determination that costs associated with the replacement of these components will no longer be capitalized, but instead recorded in inventories and amortized to cost of services over their estimated useful life. We have also shortened the estimated useful lives of power ends to two years from five years and hydraulic fracturing units to ten years from fifteen years. This change in accounting estimates was made effective January 1, 2023 and accounted for prospectively. The net effect of this change for the three and six months ended June 30, 2023 was a $3.9 million and $7.3 million decrease in net income, or $0.03 and $0.06 per basic and diluted share, respectively. Additionally, in connection with the review of our power ends estimated useful life, effective January 1, 2023, we are accelerating the depreciation of the remaining book value of power ends that prematurely fail. In 2022, we wrote off the remaining book value of prematurely failed and disposed of power ends to loss on disposal of assets. The amounts included in depreciation in connection with premature failure of power ends and other components during the three and six months ended June 30, 2023 were $11.8 million and $24.3 million, respectively. Furthermore, to conform to current period presentation, we have reclassified the amounts relating to premature failure of power ends previously included in loss on disposal of assets to depreciation expense for prior periods. The amounts reclassified were $9.5 million and $15.7 million, which relate to the three and six months ended June 30, 2022, respectively. Depreciation and Amortization Depreciation and amortization comprised of the following: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation and amortization related to cost of services $ 51,390 $ 40,873 $ 100,664 $ 78,794 Depreciation and amortization related to general and administrative expenses 1,499 96 3,023 179 Total depreciation and amortization $ 52,889 $ 40,969 $ 103,687 $ 78,973 Share Repurchases |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting StandardsThere were no recently issued Accounting Standards Updates ("ASU") by the Financial Accounting Standards Board ("FASB") that are expected to have a material impact on our condensed consolidated financial statements. |
Silvertip Acquisition
Silvertip Acquisition | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Silvertip Acquisition | Silvertip Acquisition On November 1, 2022 (the "Silvertip Acquisition Date"), the Company entered into a purchase and sale agreement with New Silvertip Holdco, LLC, pursuant to which the Company acquired 100% of the outstanding limited liability company interests of Silvertip Completion Services Operating, LLC ("Silvertip"), a wireline services company in the Permian Basin, in exchange for total consideration of $148.1 million (the "Silvertip Purchase Price") consisting of 10.1 million shares of our common stock valued at $106.7 million , $30.0 million of cash, the payoff of $7.2 million of assumed debt, and the payment of $4.1 million of certain closing and transaction costs (the "Silvertip Acquisition"). The Silvertip Acquisition positions the Company as a more integrated completions-focused oilfield services provider headquartered in the Permian Basin. The Company accounted for the Silvertip Acquisition using the acquisition method of accounting. The Silvertip Purchase Price was allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair value at the Silvertip Acquisition Date. The estimated fair values of certain assets and liabilities, including accounts receivable, require significant judgments and estimates. The measurements of assets acquired and liabilities assumed, are based on inputs that are not observable in the market and thus represent Level 3 inputs. The following table summarizes the fair value of the consideration transferred in the Silvertip Acquisition and the Silvertip Purchase Price to the fair value of the assets acquired and liabilities assumed (which are included within the accompanying condensed consolidated balance sheets) as of the Silvertip Acquisition Date: (in thousands) Total Purchase Consideration: Cash consideration $ 30,000 Equity consideration 106,736 Debt payments and closing costs 11,320 Total consideration $ 148,056 Cash and cash equivalents $ 2,681 Accounts receivable and unbilled revenue 21,079 Inventories 1,209 Prepaid expenses 2,476 Other current assets 1,059 Property and equipment (1) 52,478 Intangible assets: Trademark/trade name (2) 10,800 Customer relationships (2) 46,500 Goodwill 23,624 Operating lease right-of-use asset 2,783 Total identifiable assets acquired 164,689 Accounts payable 7,659 Accrued and other current liabilities 6,178 Operating lease liability 2,796 Total liabilities assumed 16,633 Total purchase consideration $ 148,056 (1) Remaining useful lives ranging from less than one (2) Definite lived intangibles with amortization period of 10 years. The goodwill arising from the Silvertip Acquisition is attributable to the expected operational synergies resulting from our integrated service offerings. The goodwill arising from the Silvertip Acquisition has been allocated to our wireline operations and is included in our wireline operating segment. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value ("FV") is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used, when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions other market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair values of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued and other current liabilities, and long-term debt are estimated to be approximately equivalent to carrying amounts as of June 30, 2023 and December 31, 2022 and have been excluded from the table below. Assets measured at fair value on a recurring basis are set forth below: (in thousands) Estimated fair value measurements Balance Quoted prices in active market Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) Total gains June 30, 2023: Short-term investment $ 6,437 $ 6,437 $ — $ — $ (3,846) December 31, 2022: Short-term investment $ 10,283 $ 10,283 $ — $ — $ (1,570) Short-term investment — On September 1, 2022, the Company received 2.6 million common shares of STEP Energy Services Ltd. ("STEP") with an estimated fair value of $11.8 million as part of the consideration for the sale of our coiled tubing assets to STEP. The shares were treated as an investment in equity securities measured at fair value using Level 1 inputs based on observable prices on the Toronto Stock Exchange and are shown under current assets in our condensed consolidated balance sheets. As of June 30, 2023, the fair value of the short-term investment was estimated at $6.4 million. The unrealized loss resulting from the fluctuation in stock price was $0.1 million and $3.9 million during the three and six months ended June 30, 2023, respectively. Included in the unrealized loss was a gain of $0.1 million resulting from non-cash foreign currency translation during the three and six months ended June 30, 2023. The unrealized loss resulting from stock price fluctuation and the unrealized gain resulting from non-cash foreign currency translation are included in other income (expense) in our condensed consolidated statements of operations. Assets Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These items are not measured at fair value on an ongoing basis but may be subject to fair value adjustments in certain circumstances. These assets and liabilities include those acquired through the Silvertip Acquisition, which are required to be measured at fair value on the acquisition date according to the FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations. Whenever events or circumstances indicate that the carrying value of long-lived assets may not be recoverable, the Company reviews the carrying value of long‑lived assets, such as property and equipment and other assets to determine if they are recoverable. If any long‑lived assets are determined to be unrecoverable, an impairment expense is recorded in the period. No impairment of property and equipment was recorded during the six months ended June 30, 2023. We recorded impairment expense of approximately $57.5 million during the six months ended June 30, 2022. As of June 30, 2023 and December 31, 2022, our goodwill carrying value was $23.6 million and $23.6 million, respectively. There were no additions to goodwill during the three and six months ended June 30, 2023 and 2022. The wireline operating segment is the only segment with goodwill at June 30, 2023 and December 31, 2022. There were no goodwill impairment losses during the three and six months ended June 30, 2023 and 2022. We conducted our annual impairment test of goodwill in accordance with ASC 850, Intangibles—Goodwill and Other, as of December 31, 2022 and determined that no impairment to the carrying value of goodwill for our reporting unit (wireline operating segment) was required. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of customer relationships and trademark/trade name. Intangible assets are amortized on a straight‑line basis with a useful life of ten years. Amortization expense included in net income for the three and six months ended June 30, 2023 was $1.4 million and $2.9 million, respectively. There was no amortization expense during the three and six months ended June 30, 2022 . The Company’s intangible assets subject to amortization consisted of the following: (in thousands) June 30, 2023 December 31, 2022 Intangible assets acquired: Trademark/trade name $ 10,800 $ 10,800 Customer relationships 46,500 46,500 Total intangible assets acquired 57,300 57,300 Accumulated amortization: Trademark/trade name (720) (180) Customer relationships (3,100) (775) Total accumulated amortization (3,820) (955) Intangible assets — net $ 53,480 $ 56,345 The average amortization period for our remaining intangible assets is approximately 9.3 years. Estimated remaining amortization expense for each of the subsequent fiscal years is expected to be as follows: (in thousands) Year Estimated future amortization expense 2023 $ 2,865 2024 5,730 2025 5,730 2026 5,730 2027 and beyond 33,425 Total $ 53,480 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 - Long-Term Debt Asset-Based Loan ("ABL") Credit Facility Our revolving credit facility, as amended and restated in April 2022, prior to giving effect to the amendment to the revolving credit facility in June 2023, had a total borrowing capacity of $150.0 million. The revolving credit facility had a borrowing base of 85% to 90%, depending on the credit ratings of our accounts receivable counterparties, of monthly eligible accounts receivable less customary reserves. The revolving credit facility included a springing fixed charge coverage ratio to apply when excess availability was less than the greater of (i) 10% of the lesser of the facility size or the borrowing base or (ii) $10.0 million. Under the revolving credit facility we were required to comply, subject to certain exceptions and materiality qualifiers, with certain customary affirmative and negative covenants, including, but not limited to, covenants pertaining to our ability to incur liens, indebtedness, changes in the nature of our business, mergers and other fundamental changes, disposal of assets, investments and restricted payments, amendments to our organizational documents or accounting policies, prepayments of certain debt, dividends, transactions with affiliates, and certain other activities. Effective June 2, 2023, the Company entered into an amendment to its amended and restated revolving credit facility (the revolving credit facility, as amended and restated in April 2022, as amended in June 2023 and as may be amended further, "AB L Credit Facility"). The amendment increased the borrowing capacity under the ABL Credit Facility to $225.0 million (subject to the Borrowing Base (as defined below) limit), and extended the maturity date to June 2, 2028. The ABL Credit Facility has a borrowing base of the sum of 85% to 90% of monthly eligible accounts receivable and 80% of eligible unbilled accounts (up to a maximum of 25% of the Borrowing Base) less customary reserves (the "Borrowing Base"), in each case, depending on the credit ratings of our accounts receivable counterparties, as redetermined monthly. The Borrowing Base as of June 30, 2023, was approximately $173.5 million. The ABL Credit Facility includes a springing fixed charge coverage ratio to apply when excess availability is less than the greater of (i) 10% of the lesser of the facility size or the Borrowing Base or (ii) $15.0 million. Under the ABL Credit Facility we are required to comply, subject to certain exceptions and materiality qualifiers, with certain customary affirmative and negative covenants, including, but not limited to, covenants pertaining to our ability to incur liens or indebtedness, changes in the nature of our business, mergers and other fundamental changes, disposal of assets, investments and restricted payments, amendments to our organizational documents or accounting policies, prepayments of certain debt, dividends, transactions with affiliates, and certain other activities. Borrowings under the ABL Credit Facility are secured by a first priority lien and security interest in substantially all assets of the Company. Borrowings under the ABL Credit Facility accrue interest based on a three-tier pricing grid tied to availability, and we may elect for loans to be based on either the Secured Overnight Financing Rate ("SOFR") or the base rate, plus the applicable margin, which ranges from 1.75% to 2.25% for SOFR loans and 0.75% to 1.25% for base rate loans. For the six months ended June 30, 2023, t he weighted average interest rate on our outstanding borrowings under the ABL Credit Facility was 6.21%. The loan origination costs relating to the ABL Credit Facility are classified as an asset in the condensed consolidated balance sheets. As of June 30, 2023 and December 31, 2022, we had borrowings outstanding under our ABL Credit F acility of $60.0 million a |
Reportable Segment Information
Reportable Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Segment Information The Company currently has three operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), cementing and wireline. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources. On September 1, 2022, the Company shut down its coiled tubing operations and disposed of its coiled tubing assets to STEP as part of a strategic repositioning, and recorded a loss on disposal of $13.8 million. The divestiture of our coiled tubing assets did not qualify for presentation and disclosure as discontinued operations, and accordingly, we have recorded the resulting loss from the disposal of assets in our condensed consolidated statement of operations. Following the divestiture of our coiled tubing operations, which were historically included in the "All Other" category, and the Silvertip Acquisition, which resulted in our new wireline operations in 2022, we have three operating segments. All three remaining operating segments are now aggregated into Completion Services, which is our only reportable segment. In accordance with ASC 280— Segment Reporting , the Company has one reportable segment (Completion Services) comprised of the hydraulic fracturing, cementing and wireline operating segments. The Silvertip Acquisition which resulted in the addition of a new wireline operating segment, and the disposal of our coiled tubing operations (previously included in the "All Other" category), collectively resulted in a change to the structure and composition of our reportable segment and "All Other" category. Our previous Pressure Pumping reportable segment is now renamed "Completion Services" because of the inclusion of the new wireline completion services. In addition, we have reclassified all our corporate overhead costs (inclusive of income taxes and interest expense) previously included in the "All Other" category to the Completion Services reportable segment. As a result of the change in the structure and composition of our reportable segment, we have reclassified the presentation of our segment disclosure for the three and six months ended June 30, 2022 to include corporate costs in our Completion Services reportable segment to make this period comparable to the three and six months ended June 30, 2023 . Total corporate administrative expense for the three and six months ended June 30, 2023 was $26.9 million and $52.2 million, respectively. Total corporate administrative expense for the three and six months ended June 30, 2022 was $7.7 million and $25.0 million, respectively. A breakout of our Completion Services revenue by operating segment for the three and six months ended June 30, 2023 and 2022 is presented below: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Hydraulic fracturing revenue 78.9 % 92.9 % 78.9 % 93.2 % Cementing revenue 6.4 % 7.1 % 6.4 % 6.8 % Wireline revenue 14.7 % — % 14.7 % — % Total Completion Services revenue 100.0 % 100.0 % 100.0 % 100.0 % Inter-segment revenues are not material and are not shown separately in the table below. The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before other income (expense), interest expense, income taxes, depreciation and amortization, stock-based compensation expense, retention bonuses, severance and related expense, impairment expense, (gain)/loss on disposal of assets and other unusual or nonrecurring expenses or (income)). A reconciliation from segment level financial information to the consolidated statements of operations is provided in the table below (in thousands): Three Months Ended June 30, 2023 Completion Services All Other Total Service revenue $ 435,249 $ — $ 435,249 Adjusted EBITDA $ 112,813 $ — $ 112,813 Depreciation and amortization $ 52,889 $ — $ 52,889 Capital expenditures $ 115,233 $ — $ 115,233 Goodwill at June 30, 2023 $ 23,624 $ — $ 23,624 Total assets at June 30, 2023 $ 1,433,379 $ — $ 1,433,379 Three Months Ended June 30, 2022 Completion Services All Other Total Service revenue $ 309,445 $ 5,638 $ 315,083 Adjusted EBITDA $ 75,842 $ 105 $ 75,947 Depreciation and amortization $ 40,131 $ 838 $ 40,969 Capital expenditures $ 88,842 $ 239 $ 89,081 Total assets December 31, 2022 $ 1,335,501 $ 285 $ 1,335,786 Six Months Ended June 30, 2023 Completion Services All Other Total Service revenue $ 858,819 $ — $ 858,819 Adjusted EBITDA $ 231,978 $ — $ 231,978 Depreciation and amortization $ 103,687 $ — $ 103,687 Capital expenditures $ 212,403 $ — $ 212,403 Goodwill at June 30, 2023 $ 23,624 $ — $ 23,624 Total assets June 30, 2023 $ 1,433,379 $ — $ 1,433,379 Six Months Ended June 30, 2022 Completion Services All Other Total Service revenue $ 586,557 $ 11,206 $ 597,763 Adjusted EBITDA $ 141,814 $ 666 $ 142,480 Depreciation and amortization $ 77,293 $ 1,680 $ 78,973 Capital expenditures $ 160,444 $ 365 $ 160,809 Total assets December 31, 2022 $ 1,335,501 $ 285 $ 1,335,786 Reconciliation of net income (loss) to adjusted EBITDA (in thousands): Three Months Ended June 30, 2023 Completion Services All Other Total Net income $ 39,257 $ — $ 39,257 Depreciation and amortization 52,889 — 52,889 Interest expense 1,180 — 1,180 Income tax expense 12,118 — 12,118 Loss on disposal of assets 3,065 — 3,065 Stock-based compensation 3,758 — 3,758 Other income (1) (72) — (72) Other general and administrative expense, (net) (2) 263 — 263 Retention bonus and severance expense 355 — 355 Adjusted EBITDA $ 112,813 $ — $ 112,813 Three Months Ended June 30, 2022 Completion Services All Other Total Net loss $ (32,119) $ (741) $ (32,860) Depreciation and amortization 40,131 838 40,969 Impairment expense 57,454 — 57,454 Interest expense 669 — 669 Income tax benefit (8,069) — (8,069) Loss on disposal of assets 12,970 8 12,978 Stock-based compensation 3,458 — 3,458 Other income (6) — (6) Other general and administrative expense, (net) (2) 1,345 — 1,345 Severance expense 9 — 9 Adjusted EBITDA $ 75,842 $ 105 $ 75,947 Six Months Ended June 30, 2023 Completion Services All Other Total Net income $ 67,990 $ — $ 67,990 Depreciation and amortization 103,687 — 103,687 Interest expense 1,847 — 1,847 Income tax expense 20,474 — 20,474 Loss on disposal of assets 25,145 — 25,145 Stock-based compensation 7,294 — 7,294 Other expense (1) 3,632 — 3,632 Other general and administrative expense, (net) (2) 1,209 — 1,209 Severance expense 700 — 700 Adjusted EBITDA $ 231,978 $ — $ 231,978 Six Months Ended June 30, 2022 Completion Services All Other Total Net loss $ (20,036) $ (1,007) $ (21,043) Depreciation and amortization 77,293 1,680 78,973 Impairment expense 57,454 — 57,454 Interest expense 803 — 803 Income tax benefit (3,932) — (3,932) Loss (gain) on disposal of assets 22,954 (7) 22,947 Stock-based compensation 14,822 — 14,822 Other income (3) (10,364) — (10,364) Other general and administrative expense, (net) (2) 2,791 — 2,791 Severance expense 29 — 29 Adjusted EBITDA $ 141,814 $ 666 $ 142,480 (1) Includes unrealized loss on short-term investment of $0.1 million and $3.9 million for the three and six months ended June 30, 2023, respectively . (2) Other general and administrative expense, (net of reimbursement from insurance carriers) primarily relates to nonrecurring professional fees paid to external consultants in connection with our audit committee review, SEC investigation, shareholder litigation, legal settlement to a vendor and other legal matters, net of insurance recoveries. During the three and six months ended June 30, 2023 , we received reimbursement of approximately $0 and $0.3 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. During the three and six months ended June 30, 2022 , we received reimbursement of approximately $2.4 million and $3.5 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. See "Note 13 - Commitments and Contingencies—Contingent Liabilities—Legal Matters" for further information. (3) Includes a $10.7 million net tax refund (net of advisory fees) received in March 2022 from the Texas Comptroller of Public Accounts in connection with limited sales, excise and use tax audit of the period July 1, 2015 through December 31, 2018. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing the net income (loss) relevant to the common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share uses the same net income divided by the sum of the weighted average number of shares of common stock outstanding during the period, plus dilutive effects of options, performance and restricted stock units outstanding during the period calculated using the treasury method and the potential dilutive effects of preferred stocks (if any) calculated using the if-converted method. The table below shows the calculations for the three and six months ended June 30, 2023 and 2022 (in thousands, except for per share data): Three Months Ended June 30, 2023 2022 Numerator (both basic and diluted) Net income (loss) relevant to common stockholders $ 39,257 $ (32,860) Denominator Denominator for basic income per share 114,737 104,236 Dilutive effect of stock options — — Dilutive effect of performance share units — — Dilutive effect of restricted stock units 59 — Denominator for diluted income per share 114,796 104,236 Basic income (loss) per common share $ 0.34 $ (0.32) Diluted income (loss) per common share $ 0.34 $ (0.32) Six Months Ended June 30, 2023 2022 Numerator (both basic and diluted) Net income (loss) relevant to common stockholders $ 67,990 $ (21,043) Denominator Denominator for basic income per share 114,809 103,961 Dilutive effect of stock options — — Dilutive effect of performance share units 84 — Dilutive effect of restricted stock units 209 — Denominator for diluted income per share 115,102 103,961 Basic income (loss) per common share $ 0.59 $ (0.20) Diluted income (loss) per common share $ 0.59 $ (0.20) As shown in the table below, the f ollowing stock options, restricted stock units and performance stock units have not been included in the calculation of diluted income per common share for the three and six months ended June 30, 2023 and 2022 because they will be anti-dilutive to the calculation of diluted net income per common share: (in thousands) Three Months Ended June 30, 2023 2022 Stock options 341 587 Restricted stock units 2,007 1,207 Performance stock units — 1,788 Total 2,348 3,582 (in thousands) Six Months Ended June 30, 2023 2022 Stock options 383 587 Restricted stock units 1,317 1,207 Performance stock units — 1,788 Total 1,700 3,582 |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program On May 17, 2023, the Company's board of directors (the "Board") authorized and the Company announced a share repurchase program that allows the Company to repurchase up to $100 million of the Company's common stock beginning immediately and continuing through and including May 31, 2024. The shares may be repurchased from time to time in open market transactions, block trades, accelerated share repurchases, privately negotiated transactions, derivative transactions or otherwise, certain of which may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act, in compliance with applicable state and federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including management's assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company's debt and other agreements, applicable legal requirements, and other considerations. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases using cash on hand and expected free cash flow to be generated through May 2024. The Inflation Reduction Act of 2022 (the "IRA 2022") provides for, among other things, the imposition of a new 1% U.S. federal excise tax on certain repurchases of stock by publicly traded U.S. corporations such as us after December 31, 2022. Accordingly, the excise tax will apply to our share repurchase program in 2023 and in subsequent taxable years. All shares of common stock repurchased under the share repurchase program are canceled and retired upon repurchase. The Company accounts for the purchase price of repurchased shares of common stock in excess of par value ($0.001 per share of common stock) as a reduction of additional-paid-in capital, and will continue to do so until additional paid-in-capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction to retained earnings. During the three months ended June 30, 2023, the Company paid an aggregate of $17.5 million, an average price per share of $7.63 including commissions, for share repurchases under the share repurchase program. The Company has accrued $0.1 million in respect of the IRA 2022 repurchase excise tax as of June 30, 2023. As of June 30, 2023, $82.5 million remained authorized for future repurchases of common stock under the repurchase program. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options There were no new stock option grants during the six months ended June 30, 2023. As of June 30, 2023, t here was no aggregate intrinsic value for our outst anding or exercisable stock options because the closing stock price as of June 30, 2023 was below the cost to exercise these options. No stock options were exercised during the six months ended June 30, 2023. The weighted average remaining contractual term for the outstanding and exercisable stock options as of June 30, 2023 w as approximately 2.9 years . A summary of the stock option activity for the six months ended June 30, 2023 is presented below (in thousands, except for weighted average price): Number of Shares Weighted Outstanding at January 1, 2023 488 $ 14.00 Granted — $ — Exercised — $ — Forfeited — $ — Expired (246) $ 14.00 Outstanding at June 30, 2023 242 $ 14.00 Exercisable at June 30, 2023 242 $ 14.00 Restricted Stock Units During the six months ended June 30, 2023, we granted 1,072,575 restricted stock units ("RSUs") to employees, officers and directors pursuant to the ProPetro Holding Corp. 2020 Long Term Incentive Plan (the "2020 Incentive Plan"), which generally vest ratably over a three-year vesting period, in the case of awards to employees and officers, and generally vest in full after one year, in the case of awards to directors. RSUs are subject to restrictions on transfer and are generally subject to a risk of forfeiture if the award recipient ceases to be an employee or director of the Company prior to vesting of the award. Each RSU represents the right to receive one share of common stock. The grant date fair value of the RSUs is based on the closing share price of our common stock on the date of grant. As of June 30, 2023, the total unrecognized compensation expense for all RSUs was approximately $14.4 million , and is expected to be recognized over a weighted average period of approximately 2.0 years . The following table summarizes RSUs activity during the six months ended June 30, 2023 (in thousands, except for fair value): Number of Weighted Outstanding at January 1, 2023 1,268 $ 10.91 Granted 1,073 $ 9.32 Vested (511) $ 10.88 Forfeited (55) $ 10.49 Canceled — $ — Outstanding at June 30, 2023 1,775 $ 9.97 Performance Share Units During the six months ended June 30, 2023, we granted 454,788 performance share units ("PSUs") to certain key employees and officers as new awards under the 2020 Incentive Plan. Each PSU earned represents the right to receive either one share of common stock or, as determined by the 2020 Incentive Plan administrator in its sole discretion, a cash amount equal to fair market value of one share of common stock or amount of cash on the day immediately preceding the settlement date. The actual number of shares of common stock that may be issued under the PSUs ranges from 0% up to a maximum of 200% of the target number of PSUs granted to the participant, based on our total shareholder return ("TSR") relative to a designated peer group, generally at the end of a three year period. In addition to the TSR conditions, vesting of the PSUs is generally subject to the recipient’s continued employment through the end of the applicable performance period. Compensation expense is recorded ratably over the corresponding requisite service period. The grant date fair value of PSUs is determined using a Monte Carlo probability model. Grant recipients do not have any shareholder rights until performance relative to the peer group has been determined following the completion of the performance period and shares have been issued. The following table summarizes information about PSUs activity during the six months ended June 30, 2023 (in thousands, except for weighted average fair value): Period Target Shares Outstanding at January 1, 2023 Target Target Shares Vested Target Target Shares Outstanding at June 30, 2023 2020 809 — (493) (315) — 2021 632 — — — 632 2022 316 — — — 316 2023 — 455 — — 455 Total 1,757 455 (493) (315) 1,403 Weighted Average FV Per Share $ 12.72 $ 14.40 $ 8.30 $ 8.30 $ 15.81 The total stock-based compensation expense for the six months ended June 30, 2023 and 2022 for all stock awards was $7.3 million and $14.8 million, respectively, and the associated tax benefit related thereto was $1.5 million and $3.1 million, respectively. The total unrecognized stock-based compensation expense as of June 30, 2023 was approximately $24.5 million , an |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Operations and Maintenance Yards The Company rents five yards from an entity in which a director of the Company has an equity interest, and the total annual rent expense for each of the five yards was approximately $0.03 million, $0.03 million, $0.1 million, $0.1 million and $0.2 million, respectively. Pioneer On December 31, 2018, we consummated the purchase of certain pressure pumping assets and real property from Pioneer Natural Resources USA, Inc. ("Pioneer") and Pioneer Pumping Services (the "Pioneer Pressure Pumping Acquisition"). In connection with the Pioneer Pressure Pumping Acquisition, Pioneer received 16.6 million shares of our common stock and approximately $110.0 million in cash. On March 31, 2022, we entered into an amended and restated pressure pumping services agreement (the "A&R Pressure Pumping Services Agreement"), which was initially entered into in connection with the Pioneer Pressure Pumping Acquisition. The A&R Pressure Pumping Services Agreement was effective January 1, 2022 through December 31, 2022. The A&R Pressure Pumping Services Agreement reduced the number of contracted fleets from eight fleets to six fleets, modified the pressure pumping scope of work and pricing mechanism for contracted fleets, and replaced the idle fees arrangement with equipment reservation fees (the "Reservation fees"). As part of the Reservation fees arrangement, the Company was entitled to receive compensation for all eligible contracted fleets that were made available to Pioneer at the beginning of every quarter in 2022 through the term of the A&R Pressure Pumping Services Agreement. The A&R Pressure Pumping Services Agreement expired at the conclusion of its term and was replaced by the Fleet One Agreement and Fleet Two Agreement described below. On October 31, 2022, we entered into two pressure pumping services agreements (the "Fleet One Agreement" and "Fleet Two Agreement") with Pioneer, pursuant to which we will provide hydraulic fracturing services with two committed fleets, subject to certain termination and release rights. The Fleet One Agreement was effective as of January 1, 2023 and will terminate on August 31, 2023. The Fleet Two Agreement was effective as of January 1, 2023 and was terminated on May 12, 2023. Revenue from services provided to Pioneer (including Reservation fees) accounted for approximate ly $45.4 million and $115.2 million of our total revenue during the three months ended June 30, 2023 and 2022, respectively. Revenue from services provided to Pioneer (including Reservation fees) accounted for approximate ly $99.7 million and $238.7 million of our total revenue during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the total accounts receivable due from Pioneer, including estimated unbilled receivable for services we provided, amounted to approxim ately $16.6 million and the amount due to Pioneer was $0. As of December 31, 2022, the balance due from Pioneer for services we provided amounted to approximately $46.2 million a nd the amount due to Pioneer was $0 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Operating Leases Description of Lease In March 2013, we entered into a ten-year real estate lease contract (the "Real Estate One Lease") with a commencement date of April 1, 2013, as part of the expansion of our equipment yard. During the six months ended June 30, 2023 and 2022, the Company made lease payments of approximate ly $0.1 million a nd $0.2 million , respectively. The assets and liabilities under this contract are included in our Completion Services reportable segment. In addition to the contractual lease period, the contract included an optional renewal of up to ten years, however, the Company terminated the Real Estate One Lease at the end of the term, March 1, 2023. We accounted for our Real Estate One Lease as an operating lease. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the Real Estate One Lease because we concluded that the accounting effe ct was insignificant. As part of our expansion of our hydraulic fracturing equipment maintenance program, we entered into a two year maintenance facility real estate lease contract (the "Maintenance Facility Lease") with a commencement date of March 14, 2022. During the six months ended June 30, 2023 and 2022 , the Company made lease payments of approximately $0.2 million a nd $0.1 million, respectively. In addition to the contractual lease period, the contract includes an optional renewal for three additional periods of one year each, and in management's judgment the exercise of the renewal option is not reasonably assured. The contract does not include a residual value guarantee, covenants or financial restrictions. Further, the Maintenance Facility Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for our Maintenance Facility Lease as an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the Maintenance Facility Lease because we concluded that the accounting effect was insignificant. As of June 30, 2023, the weighted average discount rate and remaining lease term was approximately 3.4% and 0.7 years, respectively. In August 2022 and December 2022, we entered into three three In October 2022, we entered into a real estate lease contract for 5.3 years (the "Real Estate Two Lease"), with a commencement date of March 1, 2023. During the six months ended June 30, 2023, the Company made lease payments of approxim ately $0.1 million. The assets and liabilities under this contract are included in our Completion Services reportable segment. In addition to the contractual lease period, the contract includes two optional renewals of one year each, and in management's judgment the exercise of the renewal option is not reasonably assured. The contract does not include a residual value guarantee, covenants or financial restrictions. Further, the Real Estate Two Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for our Real Estate Two Lease as an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the Real Estate Two Lease because we concluded that the accounting effect was insignificant. As of June 30, 2023, the weighted average discount rate and remaining lease term was approximately 6.3% and 4.8 years, respectively. As part of the Silvertip Acquisition, we assumed two real estate leases (the "Silvertip One Lease" and "Silvertip Two Lease," and collectively the "Silvertip Leases") with remaining terms of 4.8 years and 6.1 years, respectively, from the Silvertip Acquisition Date. During the six months ended June 30, 2023, we extended the Silvertip One Lease for an additional 1.3 years. During the six months ended June 30, 2023, the Company made lease payments of approximately $0.1 million and $0.2 million on the Silvertip One Lease and S ilvertip Two Lease, respectively. The assets and liabilities under these contracts are recorded in our wireline operating segment within our Completion Services reportable segment. T he Silvertip Leases do not have any renewal options, residual value guarantees, covenants or financial restrictions. Further, the Silvertip Leases do not contain variability in payments resulting from either an index change or rate change. We accounted for the Silvertip One Lease and the Silvertip Two Lease as operating leases. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the Silvertip Leases because we concluded that the accounting effect was insignificant. As of June 30, 2023, the weighted average discount rate and remaining lease term for the Silvertip One Lease was approximately 6.3% and 5.4 years, respectively. As of June 30, 2023, the weighted average discount rate and remaining lease term for the Silvertip Two Lease was approximately 2.1% and 5.4 years, respectively. In January 2023, we entered into a three year equipment lease (the "Power Equipment Lease") for certain power generation equipment. The Power Equipment Lease has not yet commenced. We currently do not control the assets under the lease and have not taken possession of the assets. Therefore, the Company has not accounted for the right of use and lease obligation in its balance sheet as of June 30, 2023. In March 2023, we entered into a real estate lease contract for 5.7 years (the "Silvertip Three Lease"), with a commencement date of April 1, 20 23. During the six months ended June 30, 2023, the Company made lease payments of approximately $0.03 million on the Silvertip Three Lease. The assets and liabilities under this contract are recorded in our wireline operating segment within our Completion Services reportable segment. The cont ract does not include a residual value guarantee, covenants or financial restrictions. Further, the Silvertip Three Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for the Silvertip Three Lease as an operating lease. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the Silvertip Three Lease because we concluded that the accounting effect was insignificant. As of June 30, 2023, the weighted average discount rate and remaining lease term was approximately 6.3% and 5.4 years, respectively. In June 2023, we entered into an office space lease contract for 5.0 years (the "Silvertip Office Lease"), with a commencement date of June 1, 2023. During the six months ended June 30, 2023, the Company made lease payments of approximately $0.01 million on the Silvertip Office Lease. The assets and liabilities under this contract are recorded in our wireline operating segment within our Completion Services reportable segment. The cont ract does not include a residual value guarantee, covenants or financial restrictions. Further, the Silvertip Office Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for the Silvertip Office Lease as an operating lease. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term. As of June 30, 2023, the weighted average discount rate and remaining lease term was approximately 6.5% and 4.9 years , respectively. As of June 30, 2023, the total operating lease right-of-use asset cost was approximat ely $7.8 million, and accumulated amortization was approximately $2.1 million. As of December 31, 2022, our total operating lease right-of-use asset cost was approximately $4.6 million, and accumulat ed amortization was approximately $1.5 million. For the six months ended June 30, 2023 and 2022, we recorded operating lease cost of approximatel y $0.7 million and $0.3 million, respectively, in our statements of operations. Maturity Analysis of Lease Liabilities The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for our operating lease as of June 30, 2023 are as follows: (in thousands) Totals 2023 $ 737 2024 1,232 2025 1,195 2026 1,209 2027 1,225 2028 821 Total undiscounted future lease payments 6,419 Less: amount representing interest (730) Present value of future lease payments (lease obligation) $ 5,689 The total cash paid for amounts included in the measurement of our operating lease liability during the six months ended June 30, 2023 was approximatel y $0.7 million. During the six months ended June 30, 2023, we recorded a non-cash lease obligation totaling approximately $3.1 million as a result of our execution of the Real Estate Two Lease, the Silvertip Three Lease and the Silvertip Office Lease and our extension of the Silvertip One Lease. During the six months ended June 30, 2022 , total cash paid for amounts included in the measurement of our operating lease liability was approximately $0.3 million . During the six months ended June 30, 2022, we recorded a non-cash lease obligation of approximately $0.6 million as a result of our execution of the Maintenance Facility Lease . Short-Term Leases We elected the practical expedient, consistent with ASC 842, to exclude leases with an initial term of twelve months or less ("short-term lease") from our balance sheet and continue to record short-term leases as a period expense. For the six months ended June 30, 2023 and 2022 our short-term lease expense was approximatel y $0.5 million and $0.4 million |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments We entered into certain commitments for fixed assets, consumables and services incidental to the ordinary conduct of our business, generally for quantities required for our operations and at competitive market prices. These commitments are designed to assure sources of supply and are not expected to be in excess of normal requirements. We entered into contractual arrangements with our equipment manufacturers to purchase and convert Tier IV DGB equipment, with total cost of approximately $16.4 million for the remainder of 2023. We also entered into the Electric Fleet Leases, which contain options to extend the leases or purchase the equipment at the end of each lease. The lease payments are expected to commence when the Company takes possession of the electric hydraulic fracturing fleets. We currently expect to take delivery of most of the electric hydraulic fracturing fleets in the second half of 2023 . The total estimated contractual commitment in connection with the Electric Fleet Leases is approximately $96.4 million, which excludes the cost associated with the option to purchase the equipment at the end of each lease. We also entered into the Power Equipment Lease. The total estimated contractual commitment in connection with the Power Equipment Lease is approximately $59.6 million. The Company enters into purchase agreements with its sand suppliers (the "Sand Suppliers") to secure supply of sand as part of its normal course of business. The agreements with the Sand Suppliers require that the Company purchase a minimum volume of sand, based primarily on a certain percentage of our sand requirements from our customers or in certain situations based on predetermined fixed minimum volumes, otherwise certain penalties (shortfall fees) may be charged. The shortfall fee represents liquidated damages and is either a fixed percentage of the purchase price for the minimum volumes or a fixed price per ton of unpurchased volumes. Our agreements with the Sand Suppliers expire at different times prior to December 31, 2025. Our sand agreement with one of our Sand Suppliers that will expire on December 31, 2024 has a remaining take-or-pay commitment o f $29.2 million . During the six months ended June 30, 2023 and 2022, no shortfall fee was recorded. As of June 30, 2023, the Company had issued letters of credit of appro ximately $6.0 million under the ABL Credit Facility in connection with the Company’s casualty insurance policy. Contingent Liabilities Legal Matters In September 2019, a complaint, captioned Richard Logan, Individually and On Behalf of All Others Similarly Situated, Plaintiff v. ProPetro Holding Corp., et al., (the "Logan Lawsuit"), was filed against the Company and certain of its then current and former officers and directors in the U.S. District Court for the Western District of Texas. As amended by later complaints, the Logan Lawsuit asserted claims on behalf of a putative class of shareholders who purchased the Company’s common stock between March 17, 2017 and March 13, 2020 or purchased the Company's common stock pursuant to the Company's initial public offering in March 2017. Plaintiffs alleged violations of Sections 10(b) and 20(a) of the Exchange Act and Rule l0b-5 promulgated thereunder, and Sections 11 and 15 of the Securities Act of 1933 against the Company, certain former officers and current and former directors, alleging that the defendants made allegedly inaccurate or misleading statements or omissions about the Company's business, operations and prospects. On August 11, 2022, the Company entered into a settlement of the Logan Lawsuit, pursuant to which the Company's insurers have paid a cash sum into a settlement fund to be distributed to members of the putative class. On May 11, 2023, the settlement was granted final court approval. Environmental and Equipment Insurance The Company is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for protection of the environment. The Company cannot predict the future impact of such standards and requirements, which are subject to change and can have retroactive effectiveness. The Company continues to monitor the status of these laws and regulations. Currently, the Company has not been fined, cited or notified of any environmental violations that would have a material adverse effect upon its financial position, liquidity or capital resources. However, management does recognize that by the very nature of the Company's business, material costs could be incurred in the near term to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions which may be required, the determination of the Company's liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification. The Company is self-insured up to $10 million per occurrence for certain losses arising from or attributable to fire and/or explosion at the wellsites. No accrual was recorded in our financial statements in connection with this self-insurance strategy because the occurrence of fire and/or explosion cannot be reasonably estimated. Regulatory Audits In 2020, the Texas Comptroller of Public Accounts (the "Comptroller") commenced a routine audit of the Company's motor vehicle and other related fuel taxes for the periods of July 2015 through December 2020. As of June 30, 2023, the audit is still ongoing and the final outcome cannot be reasonably estimated. In May 2022, the Company received a notification from the Comptroller that it will commence a routine audit of the Company's gross receipt taxes, which typically covers up to a four-year period. As of June 30, 2023, the audit is still ongoing and the final outcome cannot be reasonably estimated. In June 2023, the Company received confirmation from the Comptroller that it will commence a routine audit of the Company's direct payment sales tax in August 2023 for the period February 1, 2020 to December 31, 2022. As of June 30, 2023, the audit is yet to commence, and as such, the final outcome cannot be reasonably estimated. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event As part of our real estate consolidation strategy, on July 14, 2023 we entered into an agreement to sell our corporate office building and the associated real property, which were included in our Completion Services segment. We expect to receive estimated cash proceeds of $5.0 million, subject to customary closing requirements . We plan to lease office space in connection with the relocation of our corporate office. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ 39,257 | $ 28,733 | $ (32,860) | $ 11,817 | $ 67,990 | $ (21,043) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying condensed consolidated financial statements of ProPetro Holding Corp. and its subsidiaries (the "Company," "we," "us" or "our") have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission ("SEC") for interim financial information and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. Those adjustments (which consisted of normal recurring accruals) that are, in the opinion of management, necessary for a fair presentation of the results of the interim periods have been made. Results of operations for such interim periods are not necessarily indicative of the results of operations for a full year due to changes in market conditions and other factors. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022, included in our Form 10-K filed with the SEC (our "Form 10-K"). |
Revenue Recognition | Revenue Recognition The Company’s services are sold based upon contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of the principal activities, aggregated into one reportable segment—"Completion Services," from which the Company generates its revenue and "All Other" category. Completion Services — Completion Services consists of downhole pumping services, which includes hydraulic fracturing, cementing and wireline operations. Hydraulic fracturing is an oil well completion technique, which is part of the overall well completion process. It is a well-stimulation technique intended to optimize hydrocarbon flow paths during the completion phase of shale wellbores. The process involves the injection of water, sand and chemicals under high pressure into shale formations. Our hydraulic fracturing contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed accurately depicts how our hydraulic fracturing services are transferred to our customers over time. In addition, certain of our hydraulic fracturing equipment may be entitled to reservation fee charges if a customer were to reserve committed hydraulic fracturing equipment. The Company recognizes revenue related to reservation fee charges on a daily basis as the performance obligations are met. Acidizing, which is part of our hydraulic fracturing operating segment, involves a well-stimulation technique where acid or similar chemicals are injected under pressure into formations to form or expand fissures. Our acidizing contracts have one performance obligatio n , s atisfied at a point-in-time, upon completion of the contracted service or sale of the acid or chemical when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize acidizing revenue at a point-in-time, upon completion of the performance obligation. Our cementing services use pressure pumping equipment to deliver a slurry of liquid cement that is pumped down a well between the casing and the borehole. Our cementing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize cementing revenue at a point-in-time, upon completion of the performance obligation. Wireline services (including pumpdown) are oil well completion techniques, which are part of the well completion process. Our wireline services utilize equipment with a drum of wireline to deploy perforating guns in the well to perforate the casing, cement, and formation. Once the well is perforated, the well can be fractured. Pumpdown utilizes pressure pumping equipment to pump water into the well to deploy perforating guns attached to wireline through the lateral section of a well. Our wireline contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed accurately depicts how our wireline services are transferred to our customers over time. In addition, certain of our wireline equipment is entitled to daily equipment charges while the equipment is on the customer’s locations. The Company recognizes revenue related to daily equipment charges on a daily basis as the performance obligations are met. The transaction price for each performance obligation for all our completion services is fixed per our contracts with our customers. All Other — All Other consisted of coiled tubing services, which are complementary downhole well completion/remedial services. The performance obligation for these services had a fixed transaction price which was satisfied at a point-in-time upon completion of the service when control was transferred to the customer. Accordingly, we recognized revenue at a point-in-time, upon completion of the service and transfer of control to the custome r. Effective September 1, 2022, we shut down our coiled tubing operations, and disposed of all our coiled tubing assets. |
Restricted Cash and Customer Cash Advances | Restricted Cash and Customer Cash Advances Our restricted cash relates to cash advances received from a customer in connection with our contract with the customer to provide electric hydraulic fracturing equipment and services. The restricted cash will be used to pay for contractually agreed upon expenditures. The cash advances from the customer will be credited towards the customer’s invoice as our revenue performance obligations are met over the contract period. Our restricted cash balances as of June 30, 2023 and December 31, 2022 , were $12.2 million and $10.0 million, respectively. The cash advances received represent contract liabilities in connection with the performance of certain completion services. The cash advance (contract liability) balances, which are included in accrued and other current liabilities in our condensed consolidated balance sheets, were $20.3 million and $10.0 million as of June 30, 2023 and December 31, 2022 , respectively. During the six months ended June 30, 2023, we recognized revenue of $2.7 million from the cash advance amount outstanding at the beginning of the period. |
Accounts Receivable | Accounts Receivable Accounts receivables are stated at the amount billed and billable to customers. At June 30, 2023 and December 31, 2022, accrued revenue (unbilled receivable) included as part of our accounts receivable was $54.2 million and $51.9 million , respectively. At June 30, 2023, the transaction price allocated to the remaining performance obligation for our partially completed hydraulic fracturing and wireline operations was $83.5 million , which is expected to be completed and recognized as revenue within one month following the current period balance sheet date. |
Allowance for Credit Losses | Allowance for Credit Losses As of June 30, 2023, the Company had $0.2 million allowance for credit losses. Our allowance for credit losses is based on the evaluation of both our historic collection experience and the economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and also considered separately customers with receivable balances that may be negatively impacted by current or future economic developments and market conditions. While the Company has not experienced significant credit losses in the past and has not yet seen material adverse changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of depressed economic activities, including the potential impact of periodically adjusted borrowing base limits, level of hedged production, or unforeseen well shut-downs may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses. |
Reclassification of Prior Period Presentation | Reclassification of Prior Period PresentationCertain reclassifications have been made to prior period amounts to conform to the current period presentation. These reclassifications had no effect on our balance sheet, operating and net income (loss) or cash flows from operating, investing and financing activities. |
Change in Accounting Estimates | Change in Accounting Estimates Current trends in hydraulic fracturing equipment operating conditions such as larger pads, changes to job design and increased pumping hours per day have resulted in shorter useful lives for certain critical components that are included in our property and equipment assets. These recent trends necessitated a review of useful lives of our critical components like fluid ends, power ends, hydraulic fracturing units and other components in the first quarter of 2023. We determined that the estimated useful life of fluid ends is now less than one year, resulting in our determination that costs associated with the replacement of these components will no longer be capitalized, but instead recorded in inventories and amortized to cost of services over their estimated useful life. We have also shortened the estimated useful lives of power ends to two years from five years and hydraulic fracturing units to ten years from fifteen years. This change in accounting estimates was made effective January 1, 2023 and accounted for prospectively. The net effect of this change for the three and six months ended June 30, 2023 was a $3.9 million and $7.3 million decrease in net income, or $0.03 and $0.06 per basic and diluted share, respectively. Additionally, in connection with the review of our power ends estimated useful life, effective January 1, 2023, we are accelerating the depreciation of the remaining book value of power ends that prematurely fail. In 2022, we wrote off the remaining book value of prematurely failed and disposed of power ends to loss on disposal of assets. The amounts included in depreciation in connection with premature failure of power ends and other components during the three and six months ended June 30, 2023 were $11.8 million and $24.3 million, respectively. Furthermore, to conform to current period presentation, we have reclassified the amounts relating to premature failure of power ends previously included in loss on disposal of assets to depreciation expense for prior periods. The amounts reclassified were $9.5 million and $15.7 million, which relate to the three and six months ended June 30, 2022, respectively. |
Share Repurchases | Share RepurchasesAll shares of common stock repurchased through the Company's share repurchase program are retired upon repurchase. The Company accounts for the purchase price of repurchased common stock in excess of par value ($0.001 per share of common stock) as a reduction of additional paid-in capital, and will continue to do so until additional paid-in capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction to retained earnings. |
Recently Issued Accounting Standards | Recently Issued Accounting StandardsThere were no recently issued Accounting Standards Updates ("ASU") by the Financial Accounting Standards Board ("FASB") that are expected to have a material impact on our condensed consolidated financial statements. |
Fair Value Measurement | Fair value ("FV") is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used, when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions other market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Allowance for Credit Losses | The table below shows a summary of allowance for credit losses during the six months ended June 30, 2023: (in thousands) Balance - January 1, 2023 $ 419 Provision for credit losses during the period — Write-off during the period (217) Balance - June 30, 2023 $ 202 |
Schedule Of Depreciation and Amortization Costs | Depreciation and amortization comprised of the following: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation and amortization related to cost of services $ 51,390 $ 40,873 $ 100,664 $ 78,794 Depreciation and amortization related to general and administrative expenses 1,499 96 3,023 179 Total depreciation and amortization $ 52,889 $ 40,969 $ 103,687 $ 78,973 |
Silvertip Acquisition (Tables)
Silvertip Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Asset Acquisition | The following table summarizes the fair value of the consideration transferred in the Silvertip Acquisition and the Silvertip Purchase Price to the fair value of the assets acquired and liabilities assumed (which are included within the accompanying condensed consolidated balance sheets) as of the Silvertip Acquisition Date: (in thousands) Total Purchase Consideration: Cash consideration $ 30,000 Equity consideration 106,736 Debt payments and closing costs 11,320 Total consideration $ 148,056 Cash and cash equivalents $ 2,681 Accounts receivable and unbilled revenue 21,079 Inventories 1,209 Prepaid expenses 2,476 Other current assets 1,059 Property and equipment (1) 52,478 Intangible assets: Trademark/trade name (2) 10,800 Customer relationships (2) 46,500 Goodwill 23,624 Operating lease right-of-use asset 2,783 Total identifiable assets acquired 164,689 Accounts payable 7,659 Accrued and other current liabilities 6,178 Operating lease liability 2,796 Total liabilities assumed 16,633 Total purchase consideration $ 148,056 (1) Remaining useful lives ranging from less than one (2) Definite lived intangibles with amortization period of 10 years. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Held at Fair Value | Assets measured at fair value on a recurring basis are set forth below: (in thousands) Estimated fair value measurements Balance Quoted prices in active market Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) Total gains June 30, 2023: Short-term investment $ 6,437 $ 6,437 $ — $ — $ (3,846) December 31, 2022: Short-term investment $ 10,283 $ 10,283 $ — $ — $ (1,570) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The Company’s intangible assets subject to amortization consisted of the following: (in thousands) June 30, 2023 December 31, 2022 Intangible assets acquired: Trademark/trade name $ 10,800 $ 10,800 Customer relationships 46,500 46,500 Total intangible assets acquired 57,300 57,300 Accumulated amortization: Trademark/trade name (720) (180) Customer relationships (3,100) (775) Total accumulated amortization (3,820) (955) Intangible assets — net $ 53,480 $ 56,345 |
Schedule of Estimated Remaining Amortization Expense | Estimated remaining amortization expense for each of the subsequent fiscal years is expected to be as follows: (in thousands) Year Estimated future amortization expense 2023 $ 2,865 2024 5,730 2025 5,730 2026 5,730 2027 and beyond 33,425 Total $ 53,480 |
Reportable Segment Information
Reportable Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | A breakout of our Completion Services revenue by operating segment for the three and six months ended June 30, 2023 and 2022 is presented below: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Hydraulic fracturing revenue 78.9 % 92.9 % 78.9 % 93.2 % Cementing revenue 6.4 % 7.1 % 6.4 % 6.8 % Wireline revenue 14.7 % — % 14.7 % — % Total Completion Services revenue 100.0 % 100.0 % 100.0 % 100.0 % |
Reconciliation of Segment Information | A reconciliation from segment level financial information to the consolidated statements of operations is provided in the table below (in thousands): Three Months Ended June 30, 2023 Completion Services All Other Total Service revenue $ 435,249 $ — $ 435,249 Adjusted EBITDA $ 112,813 $ — $ 112,813 Depreciation and amortization $ 52,889 $ — $ 52,889 Capital expenditures $ 115,233 $ — $ 115,233 Goodwill at June 30, 2023 $ 23,624 $ — $ 23,624 Total assets at June 30, 2023 $ 1,433,379 $ — $ 1,433,379 Three Months Ended June 30, 2022 Completion Services All Other Total Service revenue $ 309,445 $ 5,638 $ 315,083 Adjusted EBITDA $ 75,842 $ 105 $ 75,947 Depreciation and amortization $ 40,131 $ 838 $ 40,969 Capital expenditures $ 88,842 $ 239 $ 89,081 Total assets December 31, 2022 $ 1,335,501 $ 285 $ 1,335,786 Six Months Ended June 30, 2023 Completion Services All Other Total Service revenue $ 858,819 $ — $ 858,819 Adjusted EBITDA $ 231,978 $ — $ 231,978 Depreciation and amortization $ 103,687 $ — $ 103,687 Capital expenditures $ 212,403 $ — $ 212,403 Goodwill at June 30, 2023 $ 23,624 $ — $ 23,624 Total assets June 30, 2023 $ 1,433,379 $ — $ 1,433,379 Six Months Ended June 30, 2022 Completion Services All Other Total Service revenue $ 586,557 $ 11,206 $ 597,763 Adjusted EBITDA $ 141,814 $ 666 $ 142,480 Depreciation and amortization $ 77,293 $ 1,680 $ 78,973 Capital expenditures $ 160,444 $ 365 $ 160,809 Total assets December 31, 2022 $ 1,335,501 $ 285 $ 1,335,786 Reconciliation of net income (loss) to adjusted EBITDA (in thousands): Three Months Ended June 30, 2023 Completion Services All Other Total Net income $ 39,257 $ — $ 39,257 Depreciation and amortization 52,889 — 52,889 Interest expense 1,180 — 1,180 Income tax expense 12,118 — 12,118 Loss on disposal of assets 3,065 — 3,065 Stock-based compensation 3,758 — 3,758 Other income (1) (72) — (72) Other general and administrative expense, (net) (2) 263 — 263 Retention bonus and severance expense 355 — 355 Adjusted EBITDA $ 112,813 $ — $ 112,813 Three Months Ended June 30, 2022 Completion Services All Other Total Net loss $ (32,119) $ (741) $ (32,860) Depreciation and amortization 40,131 838 40,969 Impairment expense 57,454 — 57,454 Interest expense 669 — 669 Income tax benefit (8,069) — (8,069) Loss on disposal of assets 12,970 8 12,978 Stock-based compensation 3,458 — 3,458 Other income (6) — (6) Other general and administrative expense, (net) (2) 1,345 — 1,345 Severance expense 9 — 9 Adjusted EBITDA $ 75,842 $ 105 $ 75,947 Six Months Ended June 30, 2023 Completion Services All Other Total Net income $ 67,990 $ — $ 67,990 Depreciation and amortization 103,687 — 103,687 Interest expense 1,847 — 1,847 Income tax expense 20,474 — 20,474 Loss on disposal of assets 25,145 — 25,145 Stock-based compensation 7,294 — 7,294 Other expense (1) 3,632 — 3,632 Other general and administrative expense, (net) (2) 1,209 — 1,209 Severance expense 700 — 700 Adjusted EBITDA $ 231,978 $ — $ 231,978 Six Months Ended June 30, 2022 Completion Services All Other Total Net loss $ (20,036) $ (1,007) $ (21,043) Depreciation and amortization 77,293 1,680 78,973 Impairment expense 57,454 — 57,454 Interest expense 803 — 803 Income tax benefit (3,932) — (3,932) Loss (gain) on disposal of assets 22,954 (7) 22,947 Stock-based compensation 14,822 — 14,822 Other income (3) (10,364) — (10,364) Other general and administrative expense, (net) (2) 2,791 — 2,791 Severance expense 29 — 29 Adjusted EBITDA $ 141,814 $ 666 $ 142,480 (1) Includes unrealized loss on short-term investment of $0.1 million and $3.9 million for the three and six months ended June 30, 2023, respectively . (2) Other general and administrative expense, (net of reimbursement from insurance carriers) primarily relates to nonrecurring professional fees paid to external consultants in connection with our audit committee review, SEC investigation, shareholder litigation, legal settlement to a vendor and other legal matters, net of insurance recoveries. During the three and six months ended June 30, 2023 , we received reimbursement of approximately $0 and $0.3 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. During the three and six months ended June 30, 2022 , we received reimbursement of approximately $2.4 million and $3.5 million, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. See "Note 13 - Commitments and Contingencies—Contingent Liabilities—Legal Matters" for further information. (3) Includes a $10.7 million net tax refund (net of advisory fees) received in March 2022 from the Texas Comptroller of Public Accounts in connection with limited sales, excise and use tax audit of the period July 1, 2015 through December 31, 2018. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculations of Net Loss Per Share | The table below shows the calculations for the three and six months ended June 30, 2023 and 2022 (in thousands, except for per share data): Three Months Ended June 30, 2023 2022 Numerator (both basic and diluted) Net income (loss) relevant to common stockholders $ 39,257 $ (32,860) Denominator Denominator for basic income per share 114,737 104,236 Dilutive effect of stock options — — Dilutive effect of performance share units — — Dilutive effect of restricted stock units 59 — Denominator for diluted income per share 114,796 104,236 Basic income (loss) per common share $ 0.34 $ (0.32) Diluted income (loss) per common share $ 0.34 $ (0.32) Six Months Ended June 30, 2023 2022 Numerator (both basic and diluted) Net income (loss) relevant to common stockholders $ 67,990 $ (21,043) Denominator Denominator for basic income per share 114,809 103,961 Dilutive effect of stock options — — Dilutive effect of performance share units 84 — Dilutive effect of restricted stock units 209 — Denominator for diluted income per share 115,102 103,961 Basic income (loss) per common share $ 0.59 $ (0.20) Diluted income (loss) per common share $ 0.59 $ (0.20) |
Schedule of Antidilutive Securities | As shown in the table below, the f ollowing stock options, restricted stock units and performance stock units have not been included in the calculation of diluted income per common share for the three and six months ended June 30, 2023 and 2022 because they will be anti-dilutive to the calculation of diluted net income per common share: (in thousands) Three Months Ended June 30, 2023 2022 Stock options 341 587 Restricted stock units 2,007 1,207 Performance stock units — 1,788 Total 2,348 3,582 (in thousands) Six Months Ended June 30, 2023 2022 Stock options 383 587 Restricted stock units 1,317 1,207 Performance stock units — 1,788 Total 1,700 3,582 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options Activity | A summary of the stock option activity for the six months ended June 30, 2023 is presented below (in thousands, except for weighted average price): Number of Shares Weighted Outstanding at January 1, 2023 488 $ 14.00 Granted — $ — Exercised — $ — Forfeited — $ — Expired (246) $ 14.00 Outstanding at June 30, 2023 242 $ 14.00 Exercisable at June 30, 2023 242 $ 14.00 |
Summary of RSUs Activity | The following table summarizes RSUs activity during the six months ended June 30, 2023 (in thousands, except for fair value): Number of Weighted Outstanding at January 1, 2023 1,268 $ 10.91 Granted 1,073 $ 9.32 Vested (511) $ 10.88 Forfeited (55) $ 10.49 Canceled — $ — Outstanding at June 30, 2023 1,775 $ 9.97 |
Summary of Performance Shares Activity | The following table summarizes information about PSUs activity during the six months ended June 30, 2023 (in thousands, except for weighted average fair value): Period Target Shares Outstanding at January 1, 2023 Target Target Shares Vested Target Target Shares Outstanding at June 30, 2023 2020 809 — (493) (315) — 2021 632 — — — 632 2022 316 — — — 316 2023 — 455 — — 455 Total 1,757 455 (493) (315) 1,403 Weighted Average FV Per Share $ 12.72 $ 14.40 $ 8.30 $ 8.30 $ 15.81 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Operating Lease Maturity | The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for our operating lease as of June 30, 2023 are as follows: (in thousands) Totals 2023 $ 737 2024 1,232 2025 1,195 2026 1,209 2027 1,225 2028 821 Total undiscounted future lease payments 6,419 Less: amount representing interest (730) Present value of future lease payments (lease obligation) $ 5,689 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) segment $ / shares | Jun. 30, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
Restricted cash | $ 12,200 | $ 12,200 | $ 10,000 | ||||
Contract with customer, liability, current | 20,300 | 20,300 | 10,000 | ||||
Contract with customer, liability, revenue recognized | 2,700 | ||||||
Contract with customer, asset, net | 54,200 | 54,200 | 51,900 | ||||
Allowance for credit losses during the period | 202 | 202 | $ 419 | ||||
Net income (loss) | $ (39,257) | $ (28,733) | $ 32,860 | $ (11,817) | $ (67,990) | $ 21,043 | |
Basic (in dollars per share) | $ / shares | $ (0.34) | $ 0.32 | $ (0.59) | $ 0.20 | |||
Diluted (in dollars per share) | $ / shares | $ (0.34) | $ 0.32 | $ (0.59) | $ 0.20 | |||
Impairment expense | $ 0 | $ 57,454 | $ 0 | $ 57,454 | |||
Depreciation | $ 11,800 | $ 24,300 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Discontinued Operations, Disposed of by Means Other than Sale | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Impairment expense | 9,500 | $ 15,700 | |||||
Retained Earnings (Accumulated Defecit) | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Net income (loss) | $ (39,257) | $ (28,733) | $ 32,860 | $ (11,817) | |||
Service Life | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Net income (loss) | $ 3,900 | $ 7,300 | |||||
Service Life | Retained Earnings (Accumulated Defecit) | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Basic (in dollars per share) | $ / shares | $ 0.03 | $ 0.06 | |||||
Diluted (in dollars per share) | $ / shares | $ 0.03 | $ 0.06 | |||||
Power Ends | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Estimated useful lives | 2 years | 2 years | 5 years | ||||
Hydraulic Fracturing Units | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Estimated useful lives | 10 years | 10 years | 15 years | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Revenue, remaining performance obligation | $ 83,500 | $ 83,500 | |||||
Revenue, remaining performance obligation, expected timing of satisfaction | 1 month | 1 month |
Basis of Presentation - Allowan
Basis of Presentation - Allowance for Credit Losses (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 419 |
Provision for credit losses during the period | 0 |
Write-off during the period | (217) |
Ending balance | $ 202 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | ||||
Depreciation and amortization | $ 52,889 | $ 40,969 | $ 103,687 | $ 78,973 |
Depreciation and amortization related to cost of services | ||||
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | ||||
Depreciation and amortization | 51,390 | 40,873 | 100,664 | 78,794 |
Depreciation and amortization related to general and administrative expenses | ||||
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | ||||
Depreciation and amortization | $ 1,499 | $ 96 | $ 3,023 | $ 179 |
Silvertip Acquisition - Narrati
Silvertip Acquisition - Narrative (Details) - Silvertip Completion Services Operating, LLC $ in Thousands, shares in Millions | Nov. 01, 2022 USD ($) shares |
Business Acquisition, Contingent Consideration [Line Items] | |
Percentage of interest acquired | 100% |
Total consideration | $ 148,056 |
Equity interest issued or issuable, number of shares (in shares) | shares | 10.1 |
Equity consideration | $ 106,736 |
Cash consideration | 30,000 |
Payoff of assumed debt | 7,200 |
Transaction costs | $ 4,100 |
Silvertip Acquisition - Summary
Silvertip Acquisition - Summary of Fair Value of Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 01, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition, Contingent Consideration [Line Items] | |||||
Property and equipment | $ 115,233 | $ 89,081 | $ 212,403 | $ 160,809 | |
Silvertip Completion Services Operating, LLC | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Cash consideration | $ 30,000 | ||||
Equity consideration | 106,736 | ||||
Debt payments and closing costs | 11,320 | ||||
Total consideration | 148,056 | ||||
Cash and cash equivalents | 2,681 | ||||
Accounts receivable and unbilled revenue | 21,079 | ||||
Inventories | 1,209 | ||||
Prepaid expenses | 2,476 | ||||
Other current assets | 1,059 | ||||
Property and equipment | 52,478 | ||||
Goodwill | 23,624 | ||||
Operating lease right-of-use asset | 2,783 | ||||
Total identifiable assets acquired | 164,689 | ||||
Accounts payable | 7,659 | ||||
Accrued and other current liabilities | 6,178 | ||||
Operating lease liability | 2,796 | ||||
Total liabilities assumed | 16,633 | ||||
Total purchase consideration | 148,056 | ||||
Amortization period | 10 years | ||||
Minimum | Silvertip Completion Services Operating, LLC | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Estimated useful lives | 1 year | 1 year | |||
Maximum | Silvertip Completion Services Operating, LLC | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Estimated useful lives | 22 years | 22 years | |||
Trademark/trade name | Silvertip Completion Services Operating, LLC | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Intangible assets | 10,800 | ||||
Customer relationships | Silvertip Completion Services Operating, LLC | |||||
Business Acquisition, Contingent Consideration [Line Items] | |||||
Intangible assets | $ 46,500 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | $ 6,400 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | 6,437 | $ 10,283 |
Total gains (losses) | (3,846) | (1,570) |
Quoted prices in active market (Level 1) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | 6,437 | 10,283 |
Significant other observable inputs (Level 2) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | 0 | 0 |
Significant other unobservable inputs (Level 3) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Sep. 01, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term investment | $ 6,400,000 | $ 6,400,000 | ||||
Unrealized loss from fluctuation of stock price | 100,000 | 3,900,000 | ||||
Foreign currency transaction gain (loss), unrealized | 100,000 | 100,000 | ||||
Tangible asset impairment charges | 0 | $ 57,500,000 | ||||
Goodwill | 23,624,000 | 23,624,000 | $ 23,624,000 | |||
Goodwill, acquired during period | 0 | $ 0 | 0 | 0 | ||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 | ||
Step Energy Services | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Shares received (in shares) | 2.6 | |||||
Short-term investment | $ 11,800,000 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Useful life | 10 years | 10 years | ||
Amortization expense | $ 1.4 | $ 0 | $ 2.9 | $ 0 |
Finite-lived intangible assets, remaining amortization period | 9 years 3 months 18 days | 9 years 3 months 18 days |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired: | $ 57,300 | $ 57,300 |
Accumulated amortization: | (3,820) | (955) |
Intangible assets - net | 53,480 | 56,345 |
Trademark/trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired: | 10,800 | 10,800 |
Accumulated amortization: | (720) | (180) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired: | 46,500 | 46,500 |
Accumulated amortization: | $ (3,100) | $ (775) |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 2,865 | |
2024 | 5,730 | |
2025 | 5,730 | |
2026 | 5,730 | |
2027 and beyond | 33,425 | |
Intangible assets - net | $ 53,480 | $ 56,345 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jun. 02, 2023 | Apr. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Borrowing base, eligible unbilled percentage | 80% | |||
ABL CreditFacility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 60 | $ 30 | ||
ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 225 | $ 150 | ||
Coverage ratio establishing threshold, option one, percentage of facility size and borrowing base | 10% | 10% | ||
Coverage ratio establishing threshold, option two, amount | $ 10 | $ 15 | ||
Borrowing base | $ 173.5 | |||
Interest rate | 6.21% | |||
Minimum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing base, accounts receivable percentage | 85% | |||
Maximum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing base, accounts receivable percentage | 90% | 90% | ||
Maximum percentage of borrowing base | 25% | |||
Base Rate Loans | Minimum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Base Rate Loans | Maximum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
SOFR Loans | Minimum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
SOFR Loans | Maximum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% |
Reportable Segment Informatio_2
Reportable Segment Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 3 | ||||
Gain (loss) on disposal of assets | $ | $ (3,065) | $ (12,978) | $ (25,145) | $ (22,947) | |
Number of reportable segments | segment | 1 | ||||
Administrative fees expense | $ | $ 26,900 | $ 7,700 | $ 52,200 | $ 25,000 | |
Discontinued Operations, Disposed of by Sale, Not Discontinued Operations | Coiled Tubing Assets Divestiture | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 3 | ||||
Gain (loss) on disposal of assets | $ | $ (13,800) |
Reportable Segment Informatio_3
Reportable Segment Information - Schedule of Completion Services by Operating Revenue (Details) - Revenue from Contract with Customer, Product and Service Benchmark - Service Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue, Major Customer [Line Items] | ||||
Concentration risk | 100% | 100% | 100% | 100% |
Hydraulic fracturing revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk | 78.90% | 92.90% | 78.90% | 93.20% |
Cementing revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk | 6.40% | 7.10% | 6.40% | 6.80% |
Wireline revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk | 14.70% | 0% | 14.70% | 0% |
Reportable Segment Informatio_4
Reportable Segment Information - Reconciliation of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Service revenue | $ 435,249 | $ 315,083 | $ 858,819 | $ 597,763 | |
Adjusted EBITDA | 112,813 | 75,947 | 231,978 | 142,480 | |
Depreciation and amortization | 52,889 | 40,969 | 103,687 | 78,973 | |
Capital expenditures | 115,233 | 89,081 | 212,403 | 160,809 | |
Goodwill | 23,624 | 23,624 | $ 23,624 | ||
Total assets | 1,433,379 | 1,335,786 | 1,433,379 | 1,335,786 | $ 1,335,786 |
Completion Services | |||||
Segment Reporting Information [Line Items] | |||||
Service revenue | 435,249 | 309,445 | 858,819 | 586,557 | |
Adjusted EBITDA | 112,813 | 75,842 | 231,978 | 141,814 | |
Depreciation and amortization | 52,889 | 40,131 | 103,687 | 77,293 | |
Capital expenditures | 115,233 | 88,842 | 212,403 | 160,444 | |
Goodwill | 23,624 | 23,624 | |||
Total assets | 1,433,379 | 1,335,501 | 1,433,379 | 1,335,501 | |
All Other | |||||
Segment Reporting Information [Line Items] | |||||
Service revenue | 0 | 5,638 | 0 | 11,206 | |
Adjusted EBITDA | 0 | 105 | 0 | 666 | |
Depreciation and amortization | 0 | 838 | 0 | 1,680 | |
Capital expenditures | 0 | 239 | 0 | 365 | |
Goodwill | 0 | 0 | |||
Total assets | $ 0 | $ 285 | $ 0 | $ 285 |
Reportable Segment Informatio_5
Reportable Segment Information - Reconciliation of Segment Information EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Net income | $ 39,257 | $ 28,733 | $ (32,860) | $ 11,817 | $ 67,990 | $ (21,043) |
Depreciation and amortization | 52,889 | 40,969 | 103,687 | 78,973 | ||
Impairment expense | 0 | 57,454 | 0 | 57,454 | ||
Interest expense | 1,180 | 669 | 1,847 | 803 | ||
Income tax expense | 12,118 | (8,069) | 20,474 | (3,932) | ||
Loss on disposal of assets | 3,065 | 12,978 | 25,145 | 22,947 | ||
Stock-based compensation | 3,758 | 3,458 | 7,294 | 14,822 | ||
Other (income) expense | (72) | (6) | 3,632 | (10,364) | ||
Other general and administrative expense, (net) | 263 | 1,345 | 1,209 | 2,791 | ||
Retention bonus and severance expense | 355 | 9 | 700 | 29 | ||
Adjusted EBITDA | 112,813 | 75,947 | 231,978 | 142,480 | ||
Insurance recoveries | 0 | 2,400 | 300 | 3,500 | ||
Net tax refund received | 10,700 | |||||
Unrealized loss on short-term investment | 100 | 3,900 | ||||
Completion Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income | 39,257 | (32,119) | 67,990 | (20,036) | ||
Depreciation and amortization | 52,889 | 40,131 | 103,687 | 77,293 | ||
Impairment expense | 57,454 | 57,454 | ||||
Interest expense | 1,180 | 669 | 1,847 | 803 | ||
Income tax expense | 12,118 | (8,069) | 20,474 | (3,932) | ||
Loss on disposal of assets | 3,065 | 12,970 | 25,145 | 22,954 | ||
Stock-based compensation | 3,758 | 3,458 | 7,294 | 14,822 | ||
Other (income) expense | (72) | (6) | 3,632 | (10,364) | ||
Other general and administrative expense, (net) | 263 | 1,345 | 1,209 | 2,791 | ||
Retention bonus and severance expense | 355 | 9 | 700 | 29 | ||
Adjusted EBITDA | 112,813 | 75,842 | 231,978 | 141,814 | ||
All Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income | 0 | (741) | 0 | (1,007) | ||
Depreciation and amortization | 0 | 838 | 0 | 1,680 | ||
Impairment expense | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||
Income tax expense | 0 | 0 | 0 | 0 | ||
Loss on disposal of assets | 0 | 8 | 0 | (7) | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Other (income) expense | 0 | 0 | 0 | 0 | ||
Other general and administrative expense, (net) | 0 | 0 | 0 | 0 | ||
Retention bonus and severance expense | 0 | 0 | 0 | 0 | ||
Adjusted EBITDA | $ 0 | $ 105 | $ 0 | $ 666 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator (both basic and diluted) | ||||||
Net income (loss) relevant to common stockholders | $ 39,257 | $ 28,733 | $ (32,860) | $ 11,817 | $ 67,990 | $ (21,043) |
Denominator | ||||||
Denominator for basic income (loss) per share (in shares) | 114,737 | 104,236 | 114,809 | 103,961 | ||
Denominator for diluted income (loss) per share (in shares) | 114,796 | 104,236 | 115,102 | 103,961 | ||
Basic income (loss) per share (in dollars per share) | $ 0.34 | $ (0.32) | $ 0.59 | $ (0.20) | ||
Diluted income (loss) per share (in dollars per share) | $ 0.34 | $ (0.32) | $ 0.59 | $ (0.20) | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,348 | 3,582 | 1,700 | 3,582 | ||
Stock options | ||||||
Denominator | ||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 341 | 587 | 383 | 587 | ||
Restricted stock units | ||||||
Denominator | ||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,007 | 1,207 | 1,317 | 1,207 | ||
Performance stock units | ||||||
Denominator | ||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 1,788 | 0 | 1,788 | ||
Stock options | ||||||
Denominator | ||||||
Dilutive effect of share based payment (in shares) | 0 | 0 | 0 | 0 | ||
Performance stock units | ||||||
Denominator | ||||||
Dilutive effect of share based payment (in shares) | 0 | 0 | 84 | 0 | ||
Restricted stock units | ||||||
Denominator | ||||||
Dilutive effect of share based payment (in shares) | 59 | 0 | 209 | 0 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Jun. 30, 2023 | May 17, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 100 | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Treasury stock, value, acquired | $ 17.5 | ||
Shares acquired, average cost per share (in dollars per share) | $ 7.63 | ||
Stock repurchase, excise tax | $ 0.1 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 82.5 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Options, exercised, intrinsic value | $ 0 | |
Term for exercisable stock | 2 years 10 months 24 days | |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 454,788 | |
Vesting period | 3 years | |
Actual number of shares that may be issued, percent, minimum | 0% | |
Actual number of shares that may be issued, percent, maximum | 200% | |
Incentive Award Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation not yet recognized, stock options | $ 24,500,000 | |
Compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | |
Share-based payment arrangement, expense | $ 7,300,000 | $ 14,800,000 |
Tax benefit from compensation expense | $ 1,500,000 | $ 3,100,000 |
Incentive Award Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,072,575 | |
Restricted stock units, conversion of stock, conversion rights (in shares) | 1 | |
Compensation not yet recognized, stock options | $ 14,400,000 | |
Compensation cost not yet recognized, period for recognition | 2 years | |
Incentive Award Plan | Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares upon conversion (in shares) | 1 | |
Employees and Officers | Incentive Award Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Director | Incentive Award Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 488,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | (246,000) |
Outstanding ending balance (in shares) | shares | 242,000 |
Exercisable ending balance (in shares) | shares | 242,000 |
Weighted Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 14 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 14 |
Outstanding ending balance (in dollars per share) | $ / shares | 14 |
Exercisable ending balance (in dollars per share) | $ / shares | $ 14 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted stock units shares in Thousands | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 1,268 |
Vested (in shares) | shares | (511) |
Forfeited (in shares) | shares | (55) |
Canceled (in shares) | shares | 0 |
Outstanding ending balance (in shares) | shares | 1,775 |
Weighted Average Grant Date Fair Value | |
Outstanding beginning balance (in dollars per share) | $ 10.91 |
Granted (in dollars per share) | 9.32 |
Vested (in dollars per share) | 10.88 |
Forfeited (in dollars per share) | 10.49 |
Canceled (in dollars per share) | 0 |
Outstanding ending balance (in dollars per share) | $ 9.97 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Shares Activity (Details) - Performance stock units | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 1,757,000 |
Target Shares Granted (in shares) | 454,788 |
Target Shares Vested (in shares) | (493,000) |
Target Shares Forfeited (in shares) | (315,000) |
Outstanding ending balance (in shares) | 1,403,000 |
Weighted Average FV Per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 12.72 |
Granted (in dollars per share) | $ / shares | 14.40 |
Vested (in dollars per share) | $ / shares | 8.30 |
Forfeited (in dollars per share) | $ / shares | 8.30 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 15.81 |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 809,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | (493,000) |
Target Shares Forfeited (in shares) | (315,000) |
Outstanding ending balance (in shares) | 0 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 632,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 632,000 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 316,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 316,000 |
2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 0 |
Target Shares Granted (in shares) | 455,000 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 455,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2018 USD ($) | Jun. 30, 2023 USD ($) property fleet | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) property fleet | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 31, 2022 fleet agreement | Mar. 30, 2022 fleet | |
Related Party Transaction [Line Items] | ||||||||
Rent expense | $ 700,000 | $ 300,000 | ||||||
Service revenue | $ 435,249,000 | $ 315,083,000 | 858,819,000 | 597,763,000 | ||||
Accounts receivable, related party | 251,104,000 | 251,104,000 | $ 215,925,000 | |||||
Accounts payable, related party | 218,147,000 | 218,147,000 | 234,299,000 | |||||
Pioneer and Pioneer Pumping Services | ||||||||
Related Party Transaction [Line Items] | ||||||||
Accounts payable, related party | 0 | |||||||
Pioneer and Pioneer Pumping Services | Asset acquisition | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity consideration | $ 16,600,000 | |||||||
Cash received from acquisition | $ 110,000,000 | |||||||
Number of contracted fleets | fleet | 2 | |||||||
Number of service agreements | agreement | 2 | |||||||
Service revenue | 45,400,000 | $ 115,200,000 | 99,700,000 | $ 238,700,000 | ||||
Accounts receivable, related party | 16,600,000 | 16,600,000 | $ 46,200,000 | |||||
Accounts payable, related party | $ 0 | $ 0 | ||||||
A&R Pressure Pumping Services Agreement | Asset acquisition | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of contracted fleets | fleet | 6 | 6 | 8 | |||||
Director | Related party leasing | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of properties adjacent to corporate office subject to leases | property | 5 | 5 | ||||||
Director | Property 1 | Related party leasing | ||||||||
Related Party Transaction [Line Items] | ||||||||
Rent expense | $ 30,000 | |||||||
Director | Property 2 | Related party leasing | ||||||||
Related Party Transaction [Line Items] | ||||||||
Rent expense | 30,000 | |||||||
Director | Property 3 | Related party leasing | ||||||||
Related Party Transaction [Line Items] | ||||||||
Rent expense | 100,000 | |||||||
Director | Property 4 | Related party leasing | ||||||||
Related Party Transaction [Line Items] | ||||||||
Rent expense | 100,000 | |||||||
Director | Property 5 | Related party leasing | ||||||||
Related Party Transaction [Line Items] | ||||||||
Rent expense | $ 200,000 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 6 Months Ended | ||||||||
Jun. 30, 2023 USD ($) lease period | Jun. 30, 2022 USD ($) | Mar. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 USD ($) fleet hp | Nov. 01, 2022 | Oct. 31, 2022 leaseRenewalOption | Aug. 31, 2022 | Mar. 31, 2013 | |
Operating Leases | |||||||||
Hydraulic horsepower | hp | 60,000 | ||||||||
Number of real estate leases | lease | 2 | ||||||||
Right-of-use asset, before accumulated amortization | $ 4,600 | ||||||||
Accumulated amortization | $ 2,100 | $ 1,500 | |||||||
Lease expense | 700 | $ 300 | |||||||
Payments included in measurement of operating lease liabilities | 700 | 300 | |||||||
Non-cash lease obligation | 5,689 | ||||||||
Short-Term Leases | |||||||||
Asset lease | 500 | 400 | |||||||
ROU asset | 7,800 | ||||||||
Real Estate Lease | |||||||||
Operating Leases | |||||||||
Term of contract | 10 years | ||||||||
Cash paid for operating lease | 100 | 200 | |||||||
Renewal term (up to) | 10 years | ||||||||
Real Estate Two Lease | |||||||||
Operating Leases | |||||||||
Cash paid for operating lease | 100 | ||||||||
Renewal term (up to) | 1 year | ||||||||
Option to extend, number of options | leaseRenewalOption | 2 | ||||||||
Lessee, operating lease, remaining lease term | 6 years 1 month 6 days | 5 years 3 months 18 days | |||||||
Silvertip Lease One | |||||||||
Operating Leases | |||||||||
Cash paid for operating lease | $ 100 | ||||||||
Discount rate | 6.30% | ||||||||
Lease term | 5 years 4 months 24 days | ||||||||
Lessee, operating lease, remaining lease term | 4 years 9 months 18 days | ||||||||
Lessee, Operating Lease, Remaining Lease Term Extension | 1 year 3 months 18 days | ||||||||
Silvertip Lease Two | |||||||||
Operating Leases | |||||||||
Cash paid for operating lease | $ 200 | ||||||||
Discount rate | 2.10% | ||||||||
Lease term | 5 years 4 months 24 days | ||||||||
Silvertip Lease Three | |||||||||
Operating Leases | |||||||||
Cash paid for operating lease | $ 30 | ||||||||
Discount rate | 6.30% | ||||||||
Lease term | 5 years 4 months 24 days | ||||||||
Lessee, operating lease, remaining lease term | 5 years 8 months 12 days | ||||||||
Silvertip Office Lease | |||||||||
Operating Leases | |||||||||
Term of contract | 5 years | ||||||||
Cash paid for operating lease | $ 10 | ||||||||
Discount rate | 6.50% | ||||||||
Lease term | 4 years 10 months 24 days | ||||||||
Maintenance Facility Lease | |||||||||
Operating Leases | |||||||||
Term of contract | 2 years | ||||||||
Cash paid for operating lease | $ 200 | 100 | |||||||
Renewal term (up to) | 1 year | ||||||||
Discount rate | 3.40% | ||||||||
Lease term | 8 months 12 days | ||||||||
Equipment lease term | period | 3 | ||||||||
Non-cash lease obligation | $ 3,100 | $ 600 | |||||||
Electric Fleet Lease | |||||||||
Operating Leases | |||||||||
Term of contract | 3 years | 3 years | |||||||
Number of contracted fleets | fleet | 4 | ||||||||
Power Equipment Lease | |||||||||
Operating Leases | |||||||||
Term of contract | 3 years | ||||||||
Real Estate Two Lease | |||||||||
Operating Leases | |||||||||
Discount rate | 6.30% | ||||||||
Lease term | 4 years 9 months 18 days |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 737 |
2024 | 1,232 |
2025 | 1,195 |
2026 | 1,209 |
2027 | 1,225 |
2028 | 821 |
Total undiscounted future lease payments | 6,419 |
Less: amount representing interest | (730) |
Present value of future lease payments (lease obligation) | $ 5,689 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Contractual commitment | $ 16.4 |
Commitment agreement | 29.2 |
Self insurance for losses (up to) | 10 |
ABL CreditFacility | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Notes Issued | 6 |
Electric Fleet Lease | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Contractual commitment, not yet commenced | 96.4 |
Power Equipment Lease | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Contractual commitment, not yet commenced | $ 59.6 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Jul. 14, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Proceeds from sale of real estate | $ 5 |