Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | KEY ENERGY SERVICES INC | |
Entity Central Index Key | 0000318996 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 20,414,509 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 29,284 | $ 50,311 |
Accounts receivable, net of allowance for doubtful accounts of $802 and $1,056, respectively | 71,570 | 74,253 |
Inventories | 14,791 | 15,861 |
Other current assets | 20,885 | 18,073 |
Total current assets | 136,530 | 158,498 |
Property and equipment | 442,129 | 439,043 |
Accumulated depreciation | (188,080) | (163,333) |
Property and equipment, net | 254,049 | 275,710 |
Intangible assets, net | 376 | 404 |
Other non-current assets | 12,560 | 8,562 |
TOTAL ASSETS | 403,515 | 443,174 |
Current liabilities: | ||
Accounts payable | 14,202 | 13,587 |
Current portion of long-term debt | 2,500 | 2,500 |
Other current liabilities | 82,151 | 87,377 |
Total current liabilities | 98,853 | 103,464 |
Long-term debt | 239,242 | 241,079 |
Workers’ compensation, vehicular and health insurance liabilities | 27,131 | 24,775 |
Other non-current liabilities | 32,287 | 28,336 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value; 10,000,000 authorized and one share issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized, 20,402,847 and 20,363,198 outstanding | 204 | 204 |
Additional paid-in capital | 267,171 | 264,945 |
Retained deficit | (261,373) | (219,629) |
Total equity | 6,002 | 45,520 |
TOTAL LIABILITIES AND EQUITY | $ 403,515 | $ 443,174 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 802 | $ 1,056 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 20,402,847 | 20,363,198 |
Common stock, shares outstanding | 20,402,847 | 20,363,198 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUES | $ 112,943 | $ 144,405 | $ 222,216 | $ 269,721 |
COSTS AND EXPENSES: | ||||
Direct operating expenses | 90,564 | 109,747 | 178,758 | 207,958 |
Depreciation and amortization expense | 14,262 | 20,717 | 28,558 | 41,073 |
General and administrative expenses | 22,544 | 22,854 | 44,639 | 47,428 |
Operating loss | (14,427) | (8,913) | (29,739) | (26,738) |
Interest expense, net of amounts capitalized | 8,520 | 8,573 | 17,753 | 16,717 |
Other income, net | (239) | (752) | (1,381) | (1,759) |
Loss before income taxes | (22,708) | (16,734) | (46,111) | (41,696) |
Income tax benefit (expense) | 4,405 | (161) | 4,367 | (162) |
NET LOSS | $ (18,303) | $ (16,895) | $ (41,744) | $ (41,858) |
Loss per share: | ||||
Basic and diluted (per share) | $ (0.90) | $ (0.84) | $ (2.05) | $ (2.07) |
Weighted average shares outstanding: | ||||
Basic and diluted | 20,387 | 20,231 | 20,375 | 20,224 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (41,744) | $ (41,858) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 28,558 | 41,073 |
Bad debt expense | 261 | 427 |
Accretion of asset retirement obligations | 82 | 80 |
Amortization of deferred financing costs | 241 | 238 |
Income on disposal of assets, net | (1,459) | (5,467) |
Share-based compensation | 2,230 | 2,902 |
Changes in working capital: | ||
Accounts receivable | 2,422 | (24,447) |
Other current assets | (1,741) | 5,850 |
Accounts payable, accrued interest and accrued expenses | (4,647) | (565) |
Share-based compensation liability awards | 34 | 799 |
Other assets and liabilities | 4,400 | 5,710 |
Net cash used in operating activities | (11,363) | (15,258) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (12,362) | (17,173) |
Proceeds from sale of assets | 4,780 | 8,875 |
Net cash used in investing activities | (7,582) | (8,298) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long-term debt | (1,250) | (1,250) |
Payment of deferred financing costs | 828 | 0 |
Repurchases of common stock | 4 | 0 |
Proceeds from exercise of warrants | 0 | 3 |
Net cash used in financing activities | (2,082) | (1,247) |
Net decrease in cash, cash equivalents and restricted cash | (21,027) | (24,803) |
Cash, cash equivalents, and restricted cash, beginning of period | 50,311 | 77,065 |
Cash, cash equivalents, and restricted cash, end of period | $ 29,284 | $ 52,262 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Key Energy Services, Inc., and its wholly owned subsidiaries (collectively, “Key,” the “Company,” “we,” “us,” “its,” and “our”) provide a full range of well services to major oil companies and independent oil and natural gas production companies. Our services include rig-based and coiled tubing-based well maintenance and workover services, well completion and recompletion services, fluid management services, fishing and rental services, and other ancillary oilfield services. Additionally, certain of our rigs are capable of specialty drilling applications. We operate in most major oil and natural gas producing regions of the continental United States. An important component of the Company’s growth strategy is to make acquisitions that will strengthen its core services or presence in selected markets, and the Company also makes strategic divestitures from time to time. The Company expects that the industry in which it operates will experience consolidation, and the Company expects to explore opportunities and engage in discussions regarding these opportunities, which could include mergers, consolidations or acquisitions or further dispositions or other transactions, although there can be no assurance that any such activities will be consummated. The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The condensed December 31, 2018 balance sheet was prepared from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”). Certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2018 Form 10-K. The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented herein. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results expected for the full year or any other interim period, due to fluctuations in demand for our services, timing of maintenance and other expenditures, and other factors. We have evaluated events occurring after the balance sheet date included in this Quarterly Report on Form 10-Q and through the date on which the unaudited condensed consolidated financial statements were issued, for possible disclosure of a subsequent event. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES The preparation of these unaudited condensed consolidated financial statements requires us to develop estimates and to make assumptions that affect our financial position, results of operations and cash flows. These estimates may also impact the nature and extent of our disclosure, if any, of our contingent liabilities. Among other things, we use estimates to (i) analyze assets for possible impairment, (ii) determine depreciable lives for our assets, (iii) assess future tax exposure and realization of deferred tax assets, (iv) determine amounts to accrue for contingencies, (v) value tangible and intangible assets, (vi) assess workers’ compensation, vehicular liability, self-insured risk accruals and other insurance reserves, (vii) provide allowances for our uncollectible accounts receivable, (viii) value our asset retirement obligations, and (ix) value our equity-based compensation. We review all significant estimates on a recurring basis and record the effect of any necessary adjustments prior to publication of our financial statements. Adjustments made with respect to the use of estimates relate to improved information not previously available. Because of the limitations inherent in this process, our actual results may differ materially from these estimates. We believe that the estimates used in the preparation of these interim financial statements are reasonable. There have been no material changes or developments in our evaluation of accounting estimates and underlying assumptions or methodologies that we believe to be a “Critical Accounting Policy or Estimate” as disclosed in our 2018 Form 10-K. Recent Accounting Developments ASU 2016-13. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments that will change how companies measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount. The amendments in this update will be effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018. The Company is evaluating the effect of this standard on our consolidated financial statements. ASU 2016-02 . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which replaced the existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Additional disclosure requirements include qualitative disclosures along with specific quantitative disclosures with the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for the Company for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. As part of our assessment we have created additional internal controls over financial reporting and made changes in business practices and processes related to the ASU. Key has elected the new prospective “Comparatives Under 840” transition method as defined in ASU 2018-11 and adopted the new standard as of January 1, 2019. As part of the adoption, the Company elected several practical expedients which, for contracts that existed at the time of the adoption, allowed the Company to not reassess whether existing contracts are or contained leases, classification of a lease (i.e., operating leases will remain operating leases), initial direct costs and land easement arrangements. As part of the adoption, the Company also made several accounting policy elections which allow the Company to not apply the standard to short term leases as well as to choose not to separate non-lease components from lease components and instead account for all components as a single lease component. The adoption of this standard did not have an impact on our consolidated statement of operations or consolidated statement of cash flows and had an immaterial impact on our consolidated balance sheet. Right of use assets obtained in exchange for operating leases liabilities was $4.1 million at the time of the adoption of the standard. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2019 | |
ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
REVENUES ADOPTION OF ASC 606 | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by revenue source (in thousands). Sales taxes are excluded from revenues. Six Months Ended June 30, 2019 2018 Rig Services $ 132,910 $ 150,760 Fishing and Rental Services 29,399 30,324 Coiled Tubing Services 22,420 42,293 Fluid Management Services 37,487 46,344 Total $ 222,216 $ 269,721 Disaggregation of Revenue We have disaggregated our revenues by our reportable segments including Rig Services, Fishing & Rental Services, Coiled Tubing Services and Fluid Management Services. Rig Services Our Rig Services include the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells at the end of their useful lives. We also provide specialty drilling services to oil and natural gas producers with certain of our larger rigs that are capable of providing conventional and horizontal drilling services. Our rigs encompass various sizes and capabilities, allowing us to service all types of oil and gas wells. We recognize revenue within the Rig Services segment by measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. The control over services is transferred as the services are rendered to the customer. Specifically, we recognize revenue as the services are provided, typically daily, as we have the right to invoice the customer for the services performed. Rig Services are billed monthly, and payment terms are usually 30 days from invoice receipt. Fishing and Rental Services We offer a full line of services and rental equipment designed for use in providing drilling and workover services. Fishing services involve recovering lost or stuck equipment in the wellbore utilizing a broad array of “fishing tools.” Our rental tool inventory consists of drill pipe, tubulars, handling tools (including our patented Hydra-Walk® pipe-handling units and services), pressure-control equipment, pumps, power swivels, reversing units, foam air units. We recognize revenue within the Fishing and Rental Services segment by measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. The control over services is transferred as the services are rendered to the customer. Specifically, we recognize revenue as the services are provided, typically daily, as we have the right to invoice the customer for the services performed. Fishing and Rental Services are billed and paid monthly. Payment terms for Fishing and Rental Services are usually 30 days from invoice receipt. Coiled Tubing Services Coiled Tubing Services involve the use of a continuous metal pipe spooled onto a large reel, which is then deployed into oil and natural gas wells to perform various applications, such as wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations utilizing acid and chemical treatments. Coiled tubing is also used for a number of horizontal well applications such as milling temporary isolation plugs that separate frac zones, and various other pre- and post-hydraulic fracturing well preparation services. We recognize revenue within the Coiled Tubing Services segment by measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. The control over services is transferred as the services are rendered to the customer. Specifically, we recognize revenue, typically daily, as the services are provided as we have the right to invoice the customer for the services performed. Coiled Tubing Services are billed and paid monthly. Payment terms for Coiled Tubing Services are usually 30 days from invoice receipt. Fluid Management Services We provide transportation and well-site storage services for various fluids utilized in connection with drilling, completions, workover and maintenance activities. We also provide disposal services for fluids produced subsequent to well completion. These fluids are removed from the well site and transported for disposal in saltwater disposal wells owned by us or a third party. We recognize revenue within the Fluid Management Services segment by measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. The control over services is transferred as the services are rendered to the customer. Specifically, we recognize revenue as the services are provided, typically daily, as we have the right to invoice the customer for the services performed. Fluid Management Services are billed and paid monthly. Payment terms for Fluid Management Services are usually 30 days from invoice receipt. Arrangements with Multiple Performance Obligations While not typical for our business, our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost-plus margin. For combined products and services within a contract, we account for individual products and services separately if they are distinct- i.e. if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate products and services within a contract based on the prices at which we separately sell our services. For items that are not sold separately, we estimate the standalone selling prices using the expected cost-plus margin approach. Contract Balances Under our revenue contracts, we invoice customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our revenue contracts do not give rise to contract assets or liabilities under ASC 606. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within general and administrative expenses. The majority of our services are short-term in nature, with a contract term of one year or less. For those contracts, we have utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Additionally, our payment terms are short-term in nature with settlements of one year or less. We have, therefore, utilized the practical expedient in ASC 606-10-32-18 exempting the Company from adjusting the promised amount of consideration for the effects of a significant financing component given that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Further, in many of our service contracts we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (for example, a service contract in which an entity bills a fixed amount for each hour of service provided). For those contracts, we have utilized the practical expedient in ASC 606-10-55-18 exempting the Company from disclosure of the recognition of revenue in the amount that the Company has a right to invoice. Accordingly, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
EQUITY | EQUITY A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2019 is as follows (in thousands): COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Retained Deficit Total Number of Shares Amount at Par Balance at December 31, 2018 20,363 $ 204 $ 264,945 $ (219,629 ) $ 45,520 Common stock purchases (1 ) — (4 ) — (4 ) Share-based compensation 46 — 2,230 — 2,230 Net loss — — — (41,744 ) (41,744 ) Balance at June 30, 2019 20,408 $ 204 $ 267,171 $ (261,373 ) $ 6,002 A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2018 is as follows (in thousands): COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Retained Deficit Total Number of Shares Amount at Par Balance at December 31, 2017 20,217 $ 202 $ 259,314 $ (130,833 ) $ 128,683 Exercise of warrants — — 3 — 3 Share-based compensation 28 — 2,902 — 2,902 Net loss — — — (41,858 ) (41,858 ) Balance at June 30, 2018 20,245 $ 202 $ 262,219 $ (172,691 ) $ 89,730 |
OTHER BALANCE SHEET INFORMATION
OTHER BALANCE SHEET INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
OTHER BALANCE SHEET INFORMATION | OTHER BALANCE SHEET INFORMATION The table below presents comparative detailed information about other current assets at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other current assets: Prepaid current assets $ 6,096 $ 11,207 Reinsurance receivable 7,270 6,365 Operating lease right-of-use assets 2,606 — Other 4,913 501 Total $ 20,885 $ 18,073 The table below presents comparative detailed information about other non-current assets at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other non-current assets: Reinsurance receivable $ 7,600 $ 6,743 Deposits 1,117 1,309 Operating lease right-of-use assets 3,456 — Other 387 510 Total $ 12,560 $ 8,562 The table below presents comparative detailed information about other current liabilities at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other current liabilities: Accrued payroll, taxes and employee benefits $ 20,206 $ 19,346 Accrued operating expenditures 14,041 15,861 Income, sales, use and other taxes 4,781 8,911 Self-insurance reserve 26,991 25,358 Accrued interest 6,769 7,105 Accrued insurance premiums 1,730 5,651 Unsettled legal claims 2,645 4,356 Accrued severance — 83 Operating leases 2,359 — Other 2,629 706 Total $ 82,151 $ 87,377 The table below presents comparative detailed information about other non-current liabilities at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other non-current liabilities: Asset retirement obligations $ 9,099 $ 9,018 Environmental liabilities 2,301 2,227 Accrued sales, use and other taxes 17,005 17,024 Operating leases 3,803 — Other 79 67 Total $ 32,287 $ 28,336 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | INTANGIBLE ASSETS The components of our other intangible assets as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, 2019 December 31, 2018 Trademark: Gross carrying value $ 520 $ 520 Accumulated amortization (144 ) (116 ) Net carrying value $ 376 $ 404 The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows: Weighted average remaining amortization period (years) Expected amortization expense (in thousands) Remainder 2020 2021 2022 2023 Trademarks 6.5 $ 29 $ 58 $ 58 $ 58 $ 58 Amortization expense for our intangible assets was less than $0.1 million for the three and six months ended June 30, 2019 and 2018 . |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | DEBT As of June 30, 2019 and December 31, 2018 , the components of our debt were as follows (in thousands): June 30, 2019 December 31, 2018 Term Loan Facility due 2021 $ 243,750 $ 245,000 Unamortized debt issuance costs (2,008 ) (1,421 ) Total 241,742 243,579 Less current portion (2,500 ) (2,500 ) Long-term debt $ 239,242 $ 241,079 ABL Facility The Company and Key Energy Services, LLC, are borrowers (the “ABL Borrowers”) under an ABL Facility with the financial institutions party thereto from time to time as lenders (the “ABL Lenders”), Bank of America, N.A., as administrative agent for the lenders (the “Administrative Agent”) and Bank of America, N.A., as sole collateral agent for the lenders. The ABL Facility provides for aggregate commitments from the ABL Lenders of $100 million , and matures on the earlier of (a) April 5, 2024 and (b) 6 months prior to the maturity date of the Term Loan Facility (as defined below) and other material debts, if any, as identified under the ABL Facility. On April 5, 2019, the ABL Borrowers, as borrowers, the financial institutions party thereto as lenders and Bank of America, N.A. (the “ABL Agent”), as administrative agent for the lenders, entered into Amendment No. 1 (“Amendment No. 1”) to the ABL Facility, among the ABL Borrowers, the financial institutions party thereto from time to time as lenders, the ABL Agent and the co-collateral agents for the lenders, Bank of America, N.A. and Wells Fargo Bank, National Association. The amendment makes changes to, among other things, lower (i) the applicable margin for borrowings to (x) from between 2.50% and 4.50% to between 2.00% and 2.50% for LIBOR borrowings and (y) from 1.50% and 3.50% to between 1.00% and 1.50% for base rate borrowings, in each case depending on the ABL Borrowers’ fixed charge coverage ratio at such time, (ii) appoint the Bank of America, N.A. as sole collateral agent under the ABL Facility, (iii) extend the maturity of the credit facility from June 15, 2021 to the earlier of (x) April 5, 2024 and (y) 6 months prior to the maturity date of the ABL Borrowers’ term loan credit agreement and other material debts, as identified under the ABL Facility, (iv) increase the maximum amount of revolving loan commitment increases from $30 million to $50 million and (v) revise certain triggers applicable to the covenants under the ABL Facility. The ABL Facility provides the ABL Borrowers with the ability to borrow up to an aggregate principal amount equal to the lesser of (i) the aggregate revolving commitments then in effect and (ii) the sum of (a) 85% of the value of eligible accounts receivable plus (b) 80% of the value of eligible unbilled accounts receivable, subject to a limit equal to the greater of (x) $35 million and (y) 25% of the commitments. The amount that may be borrowed under the ABL Facility is subject to increase or reduction based on certain segregated cash or reserves provided for by the ABL Facility. In addition, the percentages of accounts receivable and unbilled accounts receivable included in the calculation described above is subject to reduction to the extent of certain bad debt write-downs and other dilutive items provided in the ABL Facility. Borrowings under the ABL Facility will bear interest, at the ABL Borrowers’ option, at a per annum rate equal to (i) LIBOR for 30, 60, 90, 180, or, with the consent of the ABL Lenders, 360 days, plus an applicable margin that varies from 2.0% to 2.5% depending on the Borrowers’ fixed charge coverage ratio at such time or (ii) a base rate equal to the sum of (a) the greatest of (x) the prime rate, (y) the federal funds rate, plus 0.50% or (z) 30-day LIBOR, plus 1.0% plus (b) an applicable margin that varies from 1.0% to 1.5% depending on the Borrowers’ fixed charge coverage ratio at such time. In addition, the ABL Facility provides for unused line fees of 1.00% to 1.25% per year, depending on utilization, letter of credit fees and certain other factors. The ABL Facility may in the future be guaranteed by certain of the Company’s existing and future subsidiaries (the “ABL Guarantors,” and together with the ABL Borrowers, the “ABL Loan Parties”). To secure their obligations under the ABL Facility, each of the ABL Loan Parties has granted or will grant, as applicable, to the Administrative Agent a first-priority security interest for the benefit of the ABL Lenders in its present and future accounts receivable, inventory and related assets and proceeds of the foregoing (the “ABL Priority Collateral”). In addition, the obligations of the ABL Loan Parties under the ABL Facility are secured by second-priority liens on the Term Priority Collateral (as described below under “Term Loan Facility”). The revolving loans under the ABL Facility may be voluntarily prepaid, in whole or in part, without premium or penalty, subject to breakage or similar costs. The ABL Facility contains certain affirmative and negative covenants, including covenants that restrict the ability of the ABL Loan Parties to take certain actions including, among other things and subject to certain significant exceptions, the incurrence of debt, the granting of liens, the making of investments, entering into transactions with affiliates, the payment of dividends and the sale of assets. The ABL Facility also contains a requirement that the ABL Borrowers comply, during certain periods, with a fixed charge coverage ratio of 1.00 to 1.00. As of June 30, 2019 , we have no borrowings outstanding and $34.6 million of letters of credit outstanding with borrowing capacity of $21.1 million available subject to covenant constraints under our ABL Facility. Term Loan Facility On December 15, 2016, the Company entered into the Term Loan Facility among the Company, as borrower, certain subsidiaries of the Company named as guarantors therein, the financial institutions party thereto from time to time as Lenders (collectively, the “Term Loan Lenders”) and Cortland Capital Market Services LLC and Cortland Products Corp., as agent for the Lenders. The Term Loan Facility had an initial outstanding principal amount of $250 million . The Term Loan Facility will mature on December 15, 2021 , although such maturity date may, at the Company’s request, be extended by one or more of the Term Loan Lenders pursuant to the terms of the Term Loan Facility. Borrowings under the Term Loan Facility will bear interest, at the Company’s option, at a per annum rate equal to (i) LIBOR for one, two, three, six, or, with the consent of the Term Loan Lenders, 12 months, plus 10.25% or (ii) a base rate equal to the sum of (a) the greatest of (x) the prime rate, (y) the Federal Funds rate, plus 0.50% and (z) 30-day LIBOR, plus 1.0% plus (b) 9.25% . The Term Loan Facility is guaranteed by certain of the Company’s existing and future subsidiaries (the “Term Loan Guarantors,” and together with the Company, the “Term Loan Parties”). To secure their obligations under the Term Loan Facility, each of the Term Loan Parties has granted or will grant, as applicable, to the agent a first-priority security interest for the benefit of the Term Loan Lenders in substantially all of each Term Loan Party’s assets other than certain excluded assets and the ABL Priority Collateral (the “Term Priority Collateral”). In addition, the obligations of the Term Loan Parties under the Term Loan Facility are secured by second-priority liens on the ABL Priority Collateral (as described above under “ABL Facility”). The loans under the Term Loan Facility may be prepaid at the Company’s option, subject to the payment of a prepayment premium in certain circumstances as provided in the Term Loan Facility. A prepayment prior to the first anniversary of the loan would have been required to have been made with a make-whole amount with the calculation of the make-whole amount as specified in the Term Loan Facility. If a prepayment is made after the first anniversary of the loan but prior to the second anniversary, such prepayment must be made at 106% of the principle amount, if a prepayment is made after the second anniversary but prior to the third anniversary, such prepayment must be made at 103% of the principle amount. After the third anniversary, if a prepayment is made, no prepayment premium is due. The Company is required to make principal payments in the amount of $625,000 per quarter. In addition, pursuant to the Term Loan Facility, the Company must prepay or offer to prepay, as applicable, term loans with the net cash proceeds of certain debt incurrences and asset sales, excess cash flow, and upon certain change of control transactions, subject in each case to certain exceptions. The Term Loan Facility contains certain affirmative and negative covenants, including covenants that restrict the ability of the Term Loan Parties to take certain actions including, among other things and subject to certain significant exceptions, the incurrence of debt, the granting of liens, the making of investments, entering into transactions with affiliates, the payment of dividends and the sale of assets. The Term Loan Facility also contains financial covenants requiring that the Company maintain an asset coverage ratio of at least 1.35 to 1.0 and that Liquidity (as defined in the Term Loan Facility) must not be less than $37.5 million (of which at least $20.0 million must be in cash or cash equivalents held in deposit accounts) as of the last day of any fiscal quarter, subject to certain exceptions and cure rights. The weighted average interest rates on the outstanding borrowings under the Term Loan Facility for the three and six month periods ended June 30, 2019 were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Term Loan Facility 12.89 % 12.93 % Debt Compliance At June 30, 2019 , we were in compliance with all the financial covenants under our ABL Facility and the Term Loan Facility. Based on management’s current projections, we expect to be in compliance with all the covenants under our ABL Facility and Term Loan Facility for the next twelve months. A breach of any of these covenants, ratios or tests could result in a default under our indebtedness. |
OTHER INCOME, NET
OTHER INCOME, NET | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INOME, NET | OTHER INCOME The table below presents comparative detailed information about our other income and expense, shown on the condensed consolidated statements of operations as “ other income, net ” for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest income $ (195 ) $ (194 ) $ (517 ) $ (378 ) Other (44 ) (558 ) (864 ) (1,381 ) Total $ (239 ) $ (752 ) $ (1,381 ) $ (1,759 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted on December 22, 2017. The 2017 Tax Act is comprehensive tax reform legislation that contains significant changes to corporate taxation. Provisions on the enacted law include a permanent reduction of the corporate income tax rate from 35% to 21%, imposing a mandatory one-time tax on un-repatriated accumulated earnings of foreign subsidiaries, a partial limitation on the deductibility of business interest expense, a limitation on net operating losses to 80% of taxable income each year, a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a partial territorial system (along with rules that create a new U.S. minimum tax on earnings of foreign subsidiaries), and other related provisions to maintain the U.S. tax base. We recognized the income tax effects of the 2017 Tax Act in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”) during 2017. SAB 118 provided SEC staff guidance for the application of ASC Topic 740, Income Taxes, and allowed for a measurement period of up to one year after the enactment date to finalize the recording of the related tax impacts. As such, our 2017 financial results reflected the provisional income tax effects of the 2017 Tax Act for which the accounting under ASC Topic 740 was incomplete but a reasonable estimate could be determined. We did not identify any items for which the income tax effects of the 2017 Tax Act could not be reasonably estimated as of December 31, 2017. Additional clarifying guidance and law corrections were issued by the U.S. government during 2018 related to the 2017 Tax Act, which provided further insight into properly accounting for the impacts of U.S. tax reform. During 2018, we finalized our accounting for this matter and concluded that no adjustments were required from our provisionally recorded amounts from 2017. We no longer have any provisionally recorded items related to the enactment of the 2017 Tax Act as of December 31, 2018. In addition, there were no material 2017 Tax Act changes or clarifications that affected our accounting for the six -month period ended June 30, 2019 . We are subject to U.S. federal income tax as well as income taxes in multiple state and foreign jurisdictions. Our effective tax rates for the three months ended June 30, 2019 and 2018 were 19.4% and (1.0)% , respectively, and 9.5% and (0.4)% for the six months ended June 30, 2019 and 2018 , respectively. The variance between our effective rate and the U.S. statutory rate is due to the impact of permanent differences, and other tax adjustments, such as valuation allowances against deferred tax assets, and tax expense or benefit recognized for uncertain tax positions. We continued recording income taxes using a year-to-date effective tax rate method for the three and six months ended June 30, 2019 and 2018 . The use of this method was based on our expectations that a small change in our estimated ordinary income could result in a large change in the estimated annual effective tax rate. We will re-evaluate our use of this method each quarter until such time as a return to the annualized effective tax rate method is deemed appropriate. The Company assesses the realizability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. Due to the history of losses in recent years and the continued challenges affecting the oil and gas industry, management continues to believe it is more likely than not that we will not be able to realize our net deferred tax assets. No release of our deferred tax asset valuation allowance was made during the six months ended June 30, 2019 . As of June 30, 2019, we had no unrecognized tax benefits, net of federal tax benefit. All remaining unrecognized tax positions were recognized as of December 31, 2018 as a result of the statute of limitations lapse, and there are no unrecognized tax positions as of June 30, 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Various suits and claims arising in the ordinary course of business are pending against us. We conduct business throughout the continental United States and may be subject to jury verdicts or arbitrations that result in outcomes in favor of the plaintiffs. We are also exposed to various claims abroad. We continually assess our contingent liabilities, including potential litigation liabilities, as well as the adequacy of our accruals and our need for the disclosure of these items, if any. We establish a provision for a contingent liability when it is probable that a liability has been incurred and the amount is reasonably estimable. We have $2.6 million of other liabilities related to litigation that is deemed probable and reasonably estimable as of June 30, 2019 . We do not believe that the disposition of any of these matters will result in an additional loss materially in excess of amounts that have been recorded. Self-Insurance Reserves We maintain reserves for workers’ compensation and vehicle liability on our balance sheet based on our judgment and estimates using an actuarial method based on claims incurred. We estimate general liability claims on a case-by-case basis. We maintain insurance policies for workers’ compensation, vehicle liability and general liability claims. These insurance policies carry self-insured retention limits or deductibles on a per occurrence basis. The retention limits or deductibles are accounted for in our accrual process for all workers’ compensation, vehicular liability and general liability claims. The deductibles have a $5 million maximum per vehicular liability claim, and a $2 million maximum per general liability claim and a $1 million maximum per workers’ compensation claim. As of June 30, 2019 and December 31, 2018 , we have recorded $54.1 million and $50.1 million , respectively, of self-insurance reserves related to workers’ compensation, vehicular liabilities and general liability claims. Partially offsetting these liabilities, we had $14.9 million and $ 13.1 million of insurance receivables as of June 30, 2019 and December 31, 2018 , respectively. We believe that the liabilities we have recorded are appropriate based on the known facts and circumstances and do not expect further losses materially in excess of the amounts already accrued for existing claims. Environmental Remediation Liabilities For environmental reserve matters, including remediation efforts for current locations and those relating to previously disposed properties, we record liabilities when our remediation efforts are probable and the costs to conduct such remediation efforts can be reasonably estimated. As of each of June 30, 2019 and December 31, 2018 , we have recorded $2.3 million and $2.2 million , respectively, for our environmental remediation liabilities. We believe that the liabilities we have recorded are appropriate based on the known facts and circumstances and do not expect further losses materially in excess of the amounts already accrued. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | LOSS PER SHARE Basic loss per share is determined by dividing net loss attributable to Key by the weighted average number of common shares actually outstanding during the period. Diluted loss per common share is based on the increased number of shares that would be outstanding assuming conversion of potentially dilutive outstanding securities using the treasury stock and “as if converted” methods. The components of our loss per share are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Basic and Diluted EPS Calculation: Numerator Net loss $ (18,303 ) $ (16,895 ) $ (41,744 ) $ (41,858 ) Denominator Weighted average shares outstanding 20,387 20,231 20,375 20,224 Basic and diluted loss per share $ (0.90 ) $ (0.84 ) $ (2.05 ) $ (2.07 ) Restricted stock units (“RSUs”), stock options, and warrants are included in the computation of diluted earnings per share using the treasury stock method. Restricted stock awards are legally considered issued and outstanding when granted and are included in basic weighted average shares outstanding. The company has issued potentially dilutive instruments such as RSUs, stock options, and warrants . However, the company did not include these instruments in its calculation of diluted loss per share during the periods presented, because to include them would be anti-dilutive. The following table shows potentially dilutive instruments (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 RSUs 1,980 1,115 2,071 1,121 Stock options 71 163 74 163 Warrants 1,838 1,838 1,838 1,838 Total 3,889 3,116 3,983 3,122 No events occurred after June 30, 2019 that would materially affect the number of weighted average shares outstanding. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Common Stock Awards We recognized employee share-based compensation expense of $1.4 million and $0.3 million during the three months ended June 30, 2019 and 2018 , respectively. We recognized employee share-based compensation expense of $2.1 million and $2.4 million during the six months ended June 30, 2019 and 2018 , respectively. Our employee share-based awards, including common stock awards, stock option awards and phantom shares, vest in equal installments over a three-year period or which vest in a 40%-60% split respectively over a two-year period. Additionally, we recognized share-based compensation expense related to our outside directors of $0.1 million and $0.2 million during the three months ended June 30, 2019 and 2018 , respectively. We recognized share-based compensation expense related to our outside directors of $0.2 million and $0.5 million during the six months ended June 30, 2019 and 2018 , respectively. The unrecognized compensation cost related to our unvested share-based awards as of June 30, 2019 is estimated to be $5.4 million and is expected to be recognized over a weighted-average period of 1.3 years. Stock Option Awards As of June 30, 2019 , all outstanding stock options are vested and there are no unrecognized costs related to our stock options. Phantom Share Plan We recognized compensation expense related to our phantom shares of negative $0.1 million and $0.5 million during the three months ended June 30, 2019 and 2018 , respectively. We recognized compensation expense related to our phantom shares of less than $0.1 million and $0.8 million during the six months ended June 30, 2019 and 2018 , respectively. The unrecognized compensation cost related to our unvested phantom shares as of June 30, 2019 is estimated to be $0.1 million and is expected to be recognized over a weighted-average period of 1.0 years. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES The Company has purchased or sold equipment or services from a few affiliates of certain directors. Additionally, the Company has a corporate advisory services agreement between with Platinum Equity Advisors, LLC (“Platinum”) pursuant to which Platinum provides certain business advisory services to the Company. The dollar amounts related to these related party activities are not material to the Company’s condensed consolidated financial statements. |
ESTIMATED FAIR VALUE OF FINANCI
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS Cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. These carrying amounts approximate fair value because of the short maturity of the instruments or because the carrying value is equal to the fair value of those instruments on the balance sheet date. Term Loan Facility due 2021 . Because the variable interest rates of these loans approximate current market rates, the fair values of the loans borrowed under this facility approximate their carrying values. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | We have operating leases for certain corporate offices and operating locations. We determine if a contract is a lease or contains an embedded lease at the inception of the contract. Operating lease right-of-use (“ROU”) assets are included in other current and other non-current assets, operating lease liabilities are included in other current and other non-current liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our risk adjusted incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may include options to extend or terminate the lease. Our leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Lease expense for lease payments is recognized on a straight-line basis over the non-cancelable term of the lease. We recognized $0.7 million and $1.4 million of costs related to our operating leases during the three and six months ended June 30, 2019 , respectively. As of June 30, 2019 , our leases have a weighted average remaining lease term of 2.9 years and a weighted average discount rate of 7.3% . The maturities of our operating lease liabilities as of June 30, 2019 are as follows (in thousands): June 30, 2019 Remainder of 2019 $ 1,338 2020 2,676 2021 1,508 2022 493 2023 493 Thereafter 188 Total lease payments 6,696 Less imputed interest (534 ) Total $ 6,162 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable business segments are Rig Services, Fishing and Rental Services, Coiled Tubing Services and Fluid Management Services. We also have a “Functional Support” segment associated with overhead and other costs in support of our reportable segments. We evaluate the performance of our segments based on gross margin measures. All inter-segment sales pricing is based on current market conditions. Rig Services Our Rig Services include the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells at the end of their useful lives. We also provide specialty drilling services to oil and natural gas producers with certain of our larger rigs that are capable of providing conventional and horizontal drilling services. Our rigs encompass various sizes and capabilities, allowing us to service all types of wells. Many of our rigs are outfitted with our proprietary KeyView® technology, which captures and reports well site operating data and provides safety control systems. We believe that this technology allows our customers and our crews to better monitor well site operations, improves efficiency and safety, and adds value to the services that we offer. The completion and recompletion services provided by our rigs prepare wells for production, whether newly drilled, or recently extended through a workover operation. The completion process may involve selectively perforating the well casing to access production zones, stimulating and testing these zones, and installing tubular and downhole equipment. We typically provide a well service rig and may also provide other equipment to assist in the completion process. Completion services vary by well and our work may take a few days to several weeks to perform, depending on the nature of the completion. The workover services that we provide are designed to enhance the production of existing wells and generally are more complex and time consuming than normal maintenance services. Workover services can include deepening or extending wellbores into new formations by drilling horizontal or lateral wellbores, sealing off depleted production zones and accessing previously bypassed production zones, converting former production wells into injection wells for enhanced recovery operations and conducting major subsurface repairs due to equipment failures. Workover services may last from a few days to several weeks, depending on the complexity of the workover. Maintenance services provided with our rig fleet are generally required throughout the life cycle of an oil or natural gas well. Examples of these maintenance services include routine mechanical repairs to the pumps, tubing and other equipment, removing debris and formation material from wellbores, and pulling rods and other downhole equipment from wellbores to identify and resolve production problems. Maintenance services are generally less complicated than completion and workover related services and require less time to perform. Our rig fleet is also used in the process of permanently shutting-in oil or natural gas wells that are at the end of their productive lives. These plugging and abandonment services generally require auxiliary equipment in addition to a well servicing rig. The demand for plugging and abandonment services is not significantly impacted by the demand for oil and natural gas because well operators are required by state regulations to plug wells that are no longer productive. Fishing and Rental Services We offer a full line of fishing services and rental equipment designed for use in providing drilling and workover services. Fishing services involve recovering lost or stuck equipment in the wellbore utilizing a broad array of “fishing tools.” Our rental tool inventory consists of drill pipe, tubulars, handling tools (including our patented Hydra-Walk ® pipe-handling units and services), pressure-control equipment, pumps, power swivels, reversing units and foam air units. We sold our well testing assets and our frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids in the second quarter of 2017. Demand for our fishing and rental services is closely related to capital spending by oil and natural gas producers, which is generally a function of oil and natural gas prices. Coiled Tubing Services Coiled Tubing Services involve the use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications, such as wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations utilizing acid and chemical treatments. Coiled tubing is also used for a number of horizontal well applications such as milling temporary isolation plugs that separate frac zones, and various other pre- and post-hydraulic fracturing well preparation services. Fluid Management Services We provide transportation and well-site storage services for various fluids utilized in connection with drilling, completions, workover and maintenance activities. We also provide disposal services for fluids produced subsequent to well completion. These fluids are removed from the well site and transported for disposal in saltwater disposal wells owned by us or a third party. In addition, we operate a fleet of hot oilers capable of pumping heated fluids used to clear soluble restrictions in a wellbore. Demand and pricing for these services generally correspond to demand for our well service rigs. Functional Support Our Functional Support segment includes unallocated overhead costs associated with administrative support for our reporting segments. Financial Summary The following tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2019 and 2018 (in thousands): As of and for the three months ended June 30, 2019 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 67,884 $ 14,812 $ 11,747 $ 18,500 $ — $ — $ 112,943 Intersegment revenues 166 287 — 32 — (485 ) — Depreciation and amortization 6,141 4,204 1,270 2,182 465 — 14,262 Other operating expenses 55,861 12,430 11,926 16,119 16,772 — 113,108 Operating income (loss) 5,882 (1,822 ) (1,449 ) 199 (17,237 ) — (14,427 ) Interest expense, net of amounts capitalized 26 6 14 10 8,464 — 8,520 Income (loss) before income taxes 5,867 (1,823 ) (1,461 ) 185 (25,476 ) — (22,708 ) Long-lived assets(1) 128,945 45,616 17,340 51,175 23,909 — 266,985 Total assets 178,747 59,541 27,949 63,880 58,610 14,788 403,515 Capital expenditures 983 — 1,151 1,898 3,290 — 7,322 As of and for the three months ended June 30, 2018 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 80,456 $ 16,489 $ 23,870 $ 23,590 $ — $ — $ 144,405 Intersegment revenues 191 556 10 346 — (1,103 ) — Depreciation and amortization 7,870 5,891 1,312 5,140 504 — 20,717 Other operating expenses 64,532 12,739 19,405 20,056 15,869 — 132,601 Operating income (loss) 8,054 (2,141 ) 3,153 (1,606 ) (16,373 ) — (8,913 ) Interest expense, net of amounts capitalized — — — — 8,573 — 8,573 Income (loss) before income taxes 8,090 (2,135 ) 3,156 (1,577 ) (24,268 ) — (16,734 ) Long-lived assets(1) 150,617 53,170 19,114 65,935 86,921 (66,425 ) 309,332 Total assets 212,059 68,716 37,649 82,620 146,398 (57,939 ) 489,503 Capital expenditures 4,282 414 841 653 1,539 — 7,729 As of and for the six months ended June 30, 2019 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 132,910 $ 29,399 $ 22,420 $ 37,487 $ — $ — $ 222,216 Intersegment revenues 254 1,195 — 75 — (1,524 ) — Depreciation and amortization 12,130 8,354 2,526 4,623 925 — 28,558 Other operating expenses 110,442 23,990 23,481 32,556 32,928 — 223,397 Operating income (loss) 10,338 (2,945 ) (3,587 ) 308 (33,853 ) — (29,739 ) Interest expense, net of amounts capitalized 36 13 30 21 17,653 — 17,753 Income (loss) before income taxes 10,336 (2,947 ) (3,614 ) 291 (50,177 ) — (46,111 ) Long-lived assets(1) 128,945 45,616 17,340 51,175 23,909 — 266,985 Total assets 178,747 59,541 27,949 63,880 58,610 14,788 403,515 Capital expenditures 2,813 2,073 1,917 2,055 3,504 — 12,362 As of and for the six months ended June 30, 2018 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 150,760 $ 30,324 $ 42,293 $ 46,344 $ — $ — $ 269,721 Intersegment revenues 256 1,071 19 697 — (2,043 ) — Depreciation and amortization 15,657 11,645 2,484 10,319 968 — 41,073 Other operating expenses 124,099 24,772 32,724 40,695 33,096 — 255,386 Operating income (loss) 11,004 (6,093 ) 7,085 (4,670 ) (34,064 ) — (26,738 ) Interest expense, net of amounts capitalized — — — — 16,717 — 16,717 Income (loss) before income taxes 11,096 (6,080 ) 7,088 (4,605 ) (49,195 ) — (41,696 ) Long-lived assets(1) 150,617 53,170 19,114 65,935 86,921 (66,425 ) 309,332 Total assets 212,059 68,716 37,649 82,620 146,398 (57,939 ) 489,503 Capital expenditures 7,748 780 3,898 2,136 2,611 — 17,173 (1) Long-lived assets include fixed assets, intangibles and other non-current assets. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Accounting Standards Not Yet Adopted in this Report | Recent Accounting Developments ASU 2016-13. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments that will change how companies measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount. The amendments in this update will be effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018. The Company is evaluating the effect of this standard on our consolidated financial statements. ASU 2016-02 . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which replaced the existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Additional disclosure requirements include qualitative disclosures along with specific quantitative disclosures with the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for the Company for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. As part of our assessment we have created additional internal controls over financial reporting and made changes in business practices and processes related to the ASU. Key has elected the new prospective “Comparatives Under 840” transition method as defined in ASU 2018-11 and adopted the new standard as of January 1, 2019. As part of the adoption, the Company elected several practical expedients which, for contracts that existed at the time of the adoption, allowed the Company to not reassess whether existing contracts are or contained leases, classification of a lease (i.e., operating leases will remain operating leases), initial direct costs and land easement arrangements. As part of the adoption, the Company also made several accounting policy elections which allow the Company to not apply the standard to short term leases as well as to choose not to separate non-lease components from lease components and instead account for all components as a single lease component. The adoption of this standard did not have an impact on our consolidated statement of operations or consolidated statement of cash flows and had an immaterial impact on our consolidated balance sheet. Right of use assets obtained in exchange for operating leases liabilities was $4.1 million at the time of the adoption of the standard. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
REVENUES ADOPTION OF ASC 606 [Table Text Block] | Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by revenue source (in thousands). Sales taxes are excluded from revenues. Six Months Ended June 30, 2019 2018 Rig Services $ 132,910 $ 150,760 Fishing and Rental Services 29,399 30,324 Coiled Tubing Services 22,420 42,293 Fluid Management Services 37,487 46,344 Total $ 222,216 $ 269,721 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2019 is as follows (in thousands): COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Retained Deficit Total Number of Shares Amount at Par Balance at December 31, 2018 20,363 $ 204 $ 264,945 $ (219,629 ) $ 45,520 Common stock purchases (1 ) — (4 ) — (4 ) Share-based compensation 46 — 2,230 — 2,230 Net loss — — — (41,744 ) (41,744 ) Balance at June 30, 2019 20,408 $ 204 $ 267,171 $ (261,373 ) $ 6,002 A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2018 is as follows (in thousands): COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Retained Deficit Total Number of Shares Amount at Par Balance at December 31, 2017 20,217 $ 202 $ 259,314 $ (130,833 ) $ 128,683 Exercise of warrants — — 3 — 3 Share-based compensation 28 — 2,902 — 2,902 Net loss — — — (41,858 ) (41,858 ) Balance at June 30, 2018 20,245 $ 202 $ 262,219 $ (172,691 ) $ 89,730 |
OTHER BALANCE SHEET INFORMATI_2
OTHER BALANCE SHEET INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Other Current Assets | The table below presents comparative detailed information about other current assets at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other current assets: Prepaid current assets $ 6,096 $ 11,207 Reinsurance receivable 7,270 6,365 Operating lease right-of-use assets 2,606 — Other 4,913 501 Total $ 20,885 $ 18,073 |
Other Noncurrent Assets | The table below presents comparative detailed information about other non-current assets at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other non-current assets: Reinsurance receivable $ 7,600 $ 6,743 Deposits 1,117 1,309 Operating lease right-of-use assets 3,456 — Other 387 510 Total $ 12,560 $ 8,562 |
Other Current Liabilities | The table below presents comparative detailed information about other current liabilities at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other current liabilities: Accrued payroll, taxes and employee benefits $ 20,206 $ 19,346 Accrued operating expenditures 14,041 15,861 Income, sales, use and other taxes 4,781 8,911 Self-insurance reserve 26,991 25,358 Accrued interest 6,769 7,105 Accrued insurance premiums 1,730 5,651 Unsettled legal claims 2,645 4,356 Accrued severance — 83 Operating leases 2,359 — Other 2,629 706 Total $ 82,151 $ 87,377 |
Other Noncurrent Liabilities | The table below presents comparative detailed information about other non-current liabilities at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Other non-current liabilities: Asset retirement obligations $ 9,099 $ 9,018 Environmental liabilities 2,301 2,227 Accrued sales, use and other taxes 17,005 17,024 Operating leases 3,803 — Other 79 67 Total $ 32,287 $ 28,336 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | The components of our other intangible assets as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, 2019 December 31, 2018 Trademark: Gross carrying value $ 520 $ 520 Accumulated amortization (144 ) (116 ) Net carrying value $ 376 $ 404 |
Weighted Average Remaining Amortization Periods and Expected Amortization Expense for the Next Five Years for Intangible | The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows: Weighted average remaining amortization period (years) Expected amortization expense (in thousands) Remainder 2020 2021 2022 2023 Trademarks 6.5 $ 29 $ 58 $ 58 $ 58 $ 58 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | As of June 30, 2019 and December 31, 2018 , the components of our debt were as follows (in thousands): June 30, 2019 December 31, 2018 Term Loan Facility due 2021 $ 243,750 $ 245,000 Unamortized debt issuance costs (2,008 ) (1,421 ) Total 241,742 243,579 Less current portion (2,500 ) (2,500 ) Long-term debt $ 239,242 $ 241,079 |
Weighted Average Interest Rates | The weighted average interest rates on the outstanding borrowings under the Term Loan Facility for the three and six month periods ended June 30, 2019 were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Term Loan Facility 12.89 % 12.93 % |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Expense | The table below presents comparative detailed information about our other income and expense, shown on the condensed consolidated statements of operations as “ other income, net ” for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest income $ (195 ) $ (194 ) $ (517 ) $ (378 ) Other (44 ) (558 ) (864 ) (1,381 ) Total $ (239 ) $ (752 ) $ (1,381 ) $ (1,759 ) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of our loss per share are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Basic and Diluted EPS Calculation: Numerator Net loss $ (18,303 ) $ (16,895 ) $ (41,744 ) $ (41,858 ) Denominator Weighted average shares outstanding 20,387 20,231 20,375 20,224 Basic and diluted loss per share $ (0.90 ) $ (0.84 ) $ (2.05 ) $ (2.07 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 RSUs 1,980 1,115 2,071 1,121 Stock options 71 163 74 163 Warrants 1,838 1,838 1,838 1,838 Total 3,889 3,116 3,983 3,122 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The maturities of our operating lease liabilities as of June 30, 2019 are as follows (in thousands): June 30, 2019 Remainder of 2019 $ 1,338 2020 2,676 2021 1,508 2022 493 2023 493 Thereafter 188 Total lease payments 6,696 Less imputed interest (534 ) Total $ 6,162 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2019 and 2018 (in thousands): As of and for the three months ended June 30, 2019 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 67,884 $ 14,812 $ 11,747 $ 18,500 $ — $ — $ 112,943 Intersegment revenues 166 287 — 32 — (485 ) — Depreciation and amortization 6,141 4,204 1,270 2,182 465 — 14,262 Other operating expenses 55,861 12,430 11,926 16,119 16,772 — 113,108 Operating income (loss) 5,882 (1,822 ) (1,449 ) 199 (17,237 ) — (14,427 ) Interest expense, net of amounts capitalized 26 6 14 10 8,464 — 8,520 Income (loss) before income taxes 5,867 (1,823 ) (1,461 ) 185 (25,476 ) — (22,708 ) Long-lived assets(1) 128,945 45,616 17,340 51,175 23,909 — 266,985 Total assets 178,747 59,541 27,949 63,880 58,610 14,788 403,515 Capital expenditures 983 — 1,151 1,898 3,290 — 7,322 As of and for the three months ended June 30, 2018 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 80,456 $ 16,489 $ 23,870 $ 23,590 $ — $ — $ 144,405 Intersegment revenues 191 556 10 346 — (1,103 ) — Depreciation and amortization 7,870 5,891 1,312 5,140 504 — 20,717 Other operating expenses 64,532 12,739 19,405 20,056 15,869 — 132,601 Operating income (loss) 8,054 (2,141 ) 3,153 (1,606 ) (16,373 ) — (8,913 ) Interest expense, net of amounts capitalized — — — — 8,573 — 8,573 Income (loss) before income taxes 8,090 (2,135 ) 3,156 (1,577 ) (24,268 ) — (16,734 ) Long-lived assets(1) 150,617 53,170 19,114 65,935 86,921 (66,425 ) 309,332 Total assets 212,059 68,716 37,649 82,620 146,398 (57,939 ) 489,503 Capital expenditures 4,282 414 841 653 1,539 — 7,729 As of and for the six months ended June 30, 2019 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 132,910 $ 29,399 $ 22,420 $ 37,487 $ — $ — $ 222,216 Intersegment revenues 254 1,195 — 75 — (1,524 ) — Depreciation and amortization 12,130 8,354 2,526 4,623 925 — 28,558 Other operating expenses 110,442 23,990 23,481 32,556 32,928 — 223,397 Operating income (loss) 10,338 (2,945 ) (3,587 ) 308 (33,853 ) — (29,739 ) Interest expense, net of amounts capitalized 36 13 30 21 17,653 — 17,753 Income (loss) before income taxes 10,336 (2,947 ) (3,614 ) 291 (50,177 ) — (46,111 ) Long-lived assets(1) 128,945 45,616 17,340 51,175 23,909 — 266,985 Total assets 178,747 59,541 27,949 63,880 58,610 14,788 403,515 Capital expenditures 2,813 2,073 1,917 2,055 3,504 — 12,362 As of and for the six months ended June 30, 2018 Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Reconciling Eliminations Total Revenues from external customers $ 150,760 $ 30,324 $ 42,293 $ 46,344 $ — $ — $ 269,721 Intersegment revenues 256 1,071 19 697 — (2,043 ) — Depreciation and amortization 15,657 11,645 2,484 10,319 968 — 41,073 Other operating expenses 124,099 24,772 32,724 40,695 33,096 — 255,386 Operating income (loss) 11,004 (6,093 ) 7,085 (4,670 ) (34,064 ) — (26,738 ) Interest expense, net of amounts capitalized — — — — 16,717 — 16,717 Income (loss) before income taxes 11,096 (6,080 ) 7,088 (4,605 ) (49,195 ) — (41,696 ) Long-lived assets(1) 150,617 53,170 19,114 65,935 86,921 (66,425 ) 309,332 Total assets 212,059 68,716 37,649 82,620 146,398 (57,939 ) 489,503 Capital expenditures 7,748 780 3,898 2,136 2,611 — 17,173 (1) Long-lived assets include fixed assets, intangibles and other non-current assets. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES [Abstract] | |
Right of use assets obtained at adoption of new accounting standard | $ 4.1 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES ADOPTION OF ASC 606 [Line Items] | ||||
REVENUES | $ 112,943 | $ 144,405 | $ 222,216 | $ 269,721 |
Rig Services | ||||
REVENUES ADOPTION OF ASC 606 [Line Items] | ||||
REVENUES | 67,884 | 80,456 | 132,910 | 150,760 |
Fluid Management Services | ||||
REVENUES ADOPTION OF ASC 606 [Line Items] | ||||
REVENUES | 14,812 | 16,489 | 29,399 | 30,324 |
Coiled Tubing Services | ||||
REVENUES ADOPTION OF ASC 606 [Line Items] | ||||
REVENUES | 11,747 | 23,870 | 22,420 | 42,293 |
Fishing and Rental Services | ||||
REVENUES ADOPTION OF ASC 606 [Line Items] | ||||
REVENUES | $ 18,500 | $ 23,590 | $ 37,487 | $ 46,344 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 20,363,198 | |||
Balance at end of period (in shares) | 20,402,847 | 20,402,847 | ||
Balance at beginning of period | $ 45,520 | $ 128,683 | ||
Common stock purchases | (4) | |||
Proceeds from exercise of warrants | 0 | 3 | ||
Share-based compensation | 2,230 | 2,902 | ||
Net loss | $ (18,303) | $ (16,895) | (41,744) | (41,858) |
Balance at end of period | $ 6,002 | $ 89,730 | $ 6,002 | $ 89,730 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 20,363,000 | 20,217,000 | ||
Common stock purchases (in shares) | (1,000) | |||
Share-based compensation (in shares) | 46,000 | 28,000 | ||
Balance at end of period (in shares) | 20,408,000 | 20,245,000 | 20,408,000 | 20,245,000 |
Balance at beginning of period | $ 204 | $ 202 | ||
Common stock purchases | 0 | |||
Share-based compensation | 0 | 0 | ||
Balance at end of period | $ 204 | $ 202 | 204 | 202 |
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 264,945 | 259,314 | ||
Common stock purchases | (4) | |||
Proceeds from exercise of warrants | 3 | |||
Share-based compensation | 2,230 | 2,902 | ||
Balance at end of period | 267,171 | 262,219 | 267,171 | 262,219 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (219,629) | (130,833) | ||
Net loss | (41,744) | (41,858) | ||
Balance at end of period | $ (261,373) | $ (172,691) | $ (261,373) | $ (172,691) |
OTHER BALANCE SHEET INFORMATI_3
OTHER BALANCE SHEET INFORMATION - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other current assets: | ||
Prepaid current assets | $ 6,096 | $ 11,207 |
Reinsurance receivable | 7,270 | 6,365 |
Operating lease right-of-use assets | 2,606 | 0 |
Other | 4,913 | 501 |
Total | $ 20,885 | $ 18,073 |
OTHER BALANCE SHEET INFORMATI_4
OTHER BALANCE SHEET INFORMATION - Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other non-current assets: | ||
Reinsurance receivable | $ 7,600 | $ 6,743 |
Deposits | 1,117 | 1,309 |
Operating lease right-of-use assets | 3,456 | 0 |
Other | 387 | 510 |
Total | $ 12,560 | $ 8,562 |
OTHER BALANCE SHEET INFORMATI_5
OTHER BALANCE SHEET INFORMATION - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other current liabilities: | ||
Accrued payroll, taxes and employee benefits | $ 20,206 | $ 19,346 |
Accrued operating expenditures | 14,041 | 15,861 |
Income, sales, use and other taxes | 4,781 | 8,911 |
Self-insurance reserve | 26,991 | 25,358 |
Accrued interest | 6,769 | 7,105 |
Accrued insurance premiums | 1,730 | 5,651 |
Unsettled legal claims | 2,645 | 4,356 |
Accrued severance | 0 | 83 |
Operating leases | 2,359 | 0 |
Other | 2,629 | 706 |
Total | $ 82,151 | $ 87,377 |
OTHER BALANCE SHEET INFORMATI_6
OTHER BALANCE SHEET INFORMATION - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other non-current liabilities: | ||
Asset retirement obligations | $ 9,099 | $ 9,018 |
Environmental liabilities | 2,301 | 2,227 |
Accrued sales, use and other taxes | 17,005 | 17,024 |
Operating leases | 3,803 | 0 |
Other | 79 | 67 |
Total | $ 32,287 | $ 28,336 |
INTANGIBLE ASSETS - Intangible
INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 100 | $ 100 | $ 100 | $ 100 | |
Patents, trademarks and tradename | |||||
Intangible Assets [Line Items] | |||||
Gross carrying value | 520 | 520 | $ 520 | ||
Accumulated amortization | 144 | 144 | 116 | ||
Net carrying value | $ 376 | $ 376 | $ 404 |
INTANGIBLE ASSETS - Weighted Av
INTANGIBLE ASSETS - Weighted Average Remaining Amortization Periods and Expected Amortization Expense for Next Five Years for Intangible Assets (Details) - Patents, trademarks and tradename $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 6 years 6 months |
Expected Amortization Expense-Remainder of 2019 | $ 29 |
Expected Amortization Expense-2020 | 58 |
Expected Amortization Expense-2021 | 58 |
Expected Amortization Expense-2022 | 58 |
Expected Amortization Expense-2023 | $ 58 |
LONG-TERM DEBT - Schedule of De
LONG-TERM DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Term Loan Facility due 2021 | $ 243,750 | $ 245,000 |
Unamortized debt issuance costs | (2,008) | (1,421) |
Total debt | 241,742 | 243,579 |
Current portion of long-term debt | 2,500 | 2,500 |
Long-term debt | $ 239,242 | $ 241,079 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - ABL Facility (Details) - ABL Facility [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 100 |
Eligible Accounts Receivable for ABL Facility Borrowings | 85.00% |
Eligible Unbilled Accounts Receivable For ABL Facility Borrowings | 80.00% |
Maximum Eligible Unbilled Accounts Receivable For ABL Facility Borrowings | $ 35 |
Maximum Percent Of Commitment For ABL Facility Borrowings | 25.00% |
Line of Credit Facility, Borrowing Capacity, Description | The ABL Facility provides the ABL Borrowers with the ability to borrow up to an aggregate principal amount equal to the lesser of (i) the aggregate revolving commitments then in effect and (ii) the sum of 85% of the value of eligible accounts receivable plus (b) 80% of the value of eligible unbilled accounts receivable, subject to a limit equal to the greater of (x) $35 million and (y) 25% of the Commitments. |
Line of Credit Facility, Remaining Borrowing Capacity | $ 21.1 |
Credit Facility revolving loans, carrying value | 0 |
Letters of Credit Outstanding, Amount | $ 34.6 |
Debt Instrument, Description of Variable Rate Basis | Borrowings under the ABL Facility will bear interest, at the ABL Borrowers’ option, at a per annum rate equal to (i) LIBOR for 30, 60, 90, 180, or, with the consent of the ABL Lenders, 360 days, plus an applicable margin that varies from 2.0% to 2.5% depending on the Borrowers’ fixed charge coverage ratio at such time or (ii) a base rate equal to the sum of (a) the greatest of (x) the prime rate, (y) the federal funds rate, plus 0.50% or (z) 30-day LIBOR, plus 1.0% plus (b) an applicable margin that varies from 1.0% to 1.5% depending on the Borrowers’ fixed charge coverage ratio at such time. In addition, the ABL Facility provides for unused line fees of 1.00% to 1.25% per year, depending on utilization, letter of credit fees and certain other factors. |
Amendment Description | On April 5, 2019, the ABL Borrowers, as borrowers, the financial institutions party thereto as lenders and Bank of America, N.A. (the “ABL Agent”), as administrative agent for the lenders, entered into Amendment No. 1 (“Amendment No. 1”) to the ABL Facility, among the ABL Borrowers, the financial institutions party thereto from time to time as lenders, the ABL Agent and the co-collateral agents for the lenders, Bank of America, N.A. and Wells Fargo Bank, National Association. The amendment makes changes to, among other things, lower (i) the applicable margin for borrowings to (x) from between 2.50% and 4.50% to between 2.00% and 2.50% for LIBOR borrowings and (y) from 1.50% and 3.50% to between 1.00% and 1.50% for base rate borrowings, in each case depending on the ABL Borrowers’ fixed charge coverage ratio at such time, (ii) appoint the Bank of America, N.A. as sole collateral agent under the ABL Facility, (iii) extend the maturity of the credit facility from June 15, 2021 to the earlier of (x) April 5, 2024 and (y) 6 months prior to the maturity date of the ABL Borrowers’ term loan credit agreement and other material debts, as identified under the ABL Facility, (iv) increase the maximum amount of revolving loan commitment increases from $30 million to $50 million and (v) revise certain triggers applicable to the covenants under the ABL Facility. |
Federal Funds Purchased [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
30-day LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment Fee Minimum | 1.25% |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Maximum [Member] | Prime Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Maximum [Member] | Federal Funds rate, plus 0.50% [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Maximum [Member] | 30-day LIBOR, plus 1.0% [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment Fee Minimum | 1.00% |
Fixed charge coverage ratio | 1 |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Minimum [Member] | Prime Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Minimum [Member] | Federal Funds rate, plus 0.50% [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Minimum [Member] | 30-day LIBOR, plus 1.0% [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
LONG-TERM DEBT LONG-TERM DEBT_2
LONG-TERM DEBT LONG-TERM DEBT - Term Loan Facility (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 15, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Term Loan Facility due 2021 | $ 243,750,000 | $ 243,750,000 | $ 245,000,000 | |
Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Term Loan Facility due 2021 | $ 250,000,000 | |||
Senior notes, maturity date | Dec. 15, 2021 | |||
Debt Instrument, Description of Variable Rate Basis | Borrowings under the Term Loan Facility will bear interest, at the Company’s option, at a per annum rate equal to (i) LIBOR for one, two, three, six, or, with the consent of the Term Loan Lenders, 12 months, plus 10.25% or (ii) a base rate equal to the sum of (a) the greatest of (x) the prime rate, (y) the Federal Funds rate, plus 0.50% and (z) 30-day LIBOR, plus 1.0% plus (b) 9.25%. | |||
Debt Instrument, Periodic Payment, Principal | $ 625,000 | |||
Minimum liquidity requirement | 37,500,000 | 37,500,000 | ||
Minimum Liquidity Requirement - Cash | $ 20,000,000 | $ 20,000,000 | ||
Loan Facility Weighted Average Interest Rate During Period | 12.89% | 12.93% | ||
Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 10.25% | |||
Term Loan Facility [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 9.25% | |||
Term Loan Facility [Member] | Federal Funds Purchased [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Term Loan Facility [Member] | Federal Funds rate, plus 0.50% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 9.25% | |||
Term Loan Facility [Member] | 30-day LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Term Loan Facility [Member] | 30-day LIBOR, plus 1.0% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 9.25% | |||
Minimum [Member] | Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Asset Coverage Ratio | 1.35 | 1.35 | ||
First Prepayment Period [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percent of principal amount | 106.00% | 106.00% | ||
Second Prepayment Period [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price percent of principal amount | 103.00% | 103.00% |
OTHER INCOME, NET (Detail)
OTHER INCOME, NET (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ (195) | $ (194) | $ (517) | $ (378) |
Other | (44) | (558) | (864) | (1,381) |
Total | $ 239 | $ 752 | $ 1,381 | $ 1,759 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 19.40% | (1.00%) | 9.50% | (0.40%) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Unsettled legal claims | $ 2,645 | $ 4,356 |
Maximum Vehicular Liability Claim Deductible | 5,000 | |
Maximum General Liability Claim Deductible | 2,000 | |
Maximum Workers Compensation Claim Deductible | 1,000 | |
Self-insurance liabilities related to workers' compensation, vehicular liabilities, and general liability claims recorded | 54,100 | 50,100 |
Insurance receivables which partially offset self-insurance liabilities | 14,900 | 13,100 |
Environmental remediation liabilities recorded | $ 2,300 | $ 2,200 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,889 | 3,116 | 3,983 | 3,122 |
Numerator | ||||
Net loss | $ (18,303) | $ (16,895) | $ (41,744) | $ (41,858) |
Denominator | ||||
Basic and diluted | 20,387 | 20,231 | 20,375 | 20,224 |
Basic and diluted (per share) | $ (0.90) | $ (0.84) | $ (2.05) | $ (2.07) |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,980 | 1,115 | 2,071 | 1,121 |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 71 | 163 | 74 | 163 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,838 | 1,838 | 1,838 | 1,838 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense recognized | $ 1.4 | $ 0.3 | $ 2.1 | $ 2.4 |
Compensation expense expected to be recognized | 5.4 | $ 5.4 | ||
Compensation expense expected to be recognized, weighted average remaining vesting period | 1 year 3 months 18 days | |||
Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense recognized | 0.1 | 0.5 | $ 0.1 | 0.8 |
Compensation expense expected to be recognized | 0.1 | $ 0.1 | ||
Compensation expense expected to be recognized, weighted average remaining vesting period | 1 year | |||
Outside directors | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense recognized | $ 0.1 | $ 0.2 | $ 0.2 | $ 0.5 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Operating Lease, Cost | $ 700 | $ 1,400 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 10 months 24 days | 2 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.30% | 7.30% |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 1,338 | $ 1,338 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 2,676 | 2,676 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 1,508 | 1,508 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 493 | 493 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 493 | 493 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 188 | 188 |
Lessee, Operating Lease, Liability, Payments, Due | 6,696 | 6,696 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (534) | (534) |
Operating Lease, Liability | $ 6,162 | $ 6,162 |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years |
Lessee, Operating Lease, Renewal Term | 5 years | 5 years |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year |
Lessee, Operating Lease, Renewal Term | 1 year | 1 year |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | $ 112,943 | $ 144,405 | $ 222,216 | $ 269,721 | ||
Intersegment revenues | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 14,262 | 20,717 | 28,558 | 41,073 | ||
Other operating expenses | 113,108 | 132,601 | 223,397 | 255,386 | ||
Operating income (loss) | (14,427) | (8,913) | (29,739) | (26,738) | ||
Interest expense, net of amounts capitalized | 8,520 | 8,573 | 17,753 | 16,717 | ||
Income (loss) before income taxes | (22,708) | (16,734) | (46,111) | (41,696) | ||
Long-lived assets | [1] | 266,985 | 309,332 | 266,985 | 309,332 | |
Total assets | 403,515 | 489,503 | 403,515 | 489,503 | $ 443,174 | |
Capital expenditures | 7,322 | 7,729 | 12,362 | 17,173 | ||
Rig Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 67,884 | 80,456 | 132,910 | 150,760 | ||
Intersegment revenues | 166 | 191 | 254 | 256 | ||
Depreciation and amortization | 6,141 | 7,870 | 12,130 | 15,657 | ||
Other operating expenses | 55,861 | 64,532 | 110,442 | 124,099 | ||
Operating income (loss) | 5,882 | 8,054 | 10,338 | 11,004 | ||
Interest expense, net of amounts capitalized | 26 | 0 | 36 | 0 | ||
Income (loss) before income taxes | 5,867 | 8,090 | 10,336 | 11,096 | ||
Long-lived assets | [1] | 128,945 | 150,617 | 128,945 | 150,617 | |
Total assets | 178,747 | 212,059 | 178,747 | 212,059 | ||
Capital expenditures | 983 | 4,282 | 2,813 | 7,748 | ||
Fluid Management Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 14,812 | 16,489 | 29,399 | 30,324 | ||
Intersegment revenues | 287 | 556 | 1,195 | 1,071 | ||
Depreciation and amortization | 4,204 | 5,891 | 8,354 | 11,645 | ||
Other operating expenses | 12,430 | 12,739 | 23,990 | 24,772 | ||
Operating income (loss) | (1,822) | (2,141) | (2,945) | (6,093) | ||
Interest expense, net of amounts capitalized | 6 | 0 | 13 | 0 | ||
Income (loss) before income taxes | (1,823) | (2,135) | (2,947) | (6,080) | ||
Long-lived assets | [1] | 45,616 | 53,170 | 45,616 | 53,170 | |
Total assets | 59,541 | 68,716 | 59,541 | 68,716 | ||
Capital expenditures | 0 | 414 | 2,073 | 780 | ||
Coiled Tubing Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 11,747 | 23,870 | 22,420 | 42,293 | ||
Intersegment revenues | 0 | 10 | 0 | 19 | ||
Depreciation and amortization | 1,270 | 1,312 | 2,526 | 2,484 | ||
Other operating expenses | 11,926 | 19,405 | 23,481 | 32,724 | ||
Operating income (loss) | (1,449) | 3,153 | (3,587) | 7,085 | ||
Interest expense, net of amounts capitalized | 14 | 0 | 30 | 0 | ||
Income (loss) before income taxes | (1,461) | 3,156 | (3,614) | 7,088 | ||
Long-lived assets | [1] | 17,340 | 19,114 | 17,340 | 19,114 | |
Total assets | 27,949 | 37,649 | 27,949 | 37,649 | ||
Capital expenditures | 1,151 | 841 | 1,917 | 3,898 | ||
Fishing and Rental Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 18,500 | 23,590 | 37,487 | 46,344 | ||
Intersegment revenues | 32 | 346 | 75 | 697 | ||
Depreciation and amortization | 2,182 | 5,140 | 4,623 | 10,319 | ||
Other operating expenses | 16,119 | 20,056 | 32,556 | 40,695 | ||
Operating income (loss) | 199 | (1,606) | 308 | (4,670) | ||
Interest expense, net of amounts capitalized | 10 | 0 | 21 | 0 | ||
Income (loss) before income taxes | 185 | (1,577) | 291 | (4,605) | ||
Long-lived assets | [1] | 51,175 | 65,935 | 51,175 | 65,935 | |
Total assets | 63,880 | 82,620 | 63,880 | 82,620 | ||
Capital expenditures | 1,898 | 653 | 2,055 | 2,136 | ||
Functional Support | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 0 | 0 | 0 | 0 | ||
Intersegment revenues | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 465 | 504 | 925 | 968 | ||
Other operating expenses | 16,772 | 15,869 | 32,928 | 33,096 | ||
Operating income (loss) | (17,237) | (16,373) | (33,853) | (34,064) | ||
Interest expense, net of amounts capitalized | 8,464 | 8,573 | 17,653 | 16,717 | ||
Income (loss) before income taxes | (25,476) | (24,268) | (50,177) | (49,195) | ||
Long-lived assets | [1] | 23,909 | 86,921 | 23,909 | 86,921 | |
Total assets | 58,610 | 146,398 | 58,610 | 146,398 | ||
Capital expenditures | 3,290 | 1,539 | 3,504 | 2,611 | ||
Reconciling Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from external customers | 0 | 0 | 0 | 0 | ||
Intersegment revenues | (485) | (1,103) | (1,524) | (2,043) | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Other operating expenses | 0 | 0 | 0 | 0 | ||
Operating income (loss) | 0 | 0 | 0 | 0 | ||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||
Long-lived assets | [1] | 0 | (66,425) | 0 | (66,425) | |
Total assets | 14,788 | (57,939) | 14,788 | (57,939) | ||
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | Long-lived assets include fixed assets, intangibles and other non-current assets |