Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2020 | Feb. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 1-8182 | |
Entity Registrant Name | PIONEER ENERGY SERVICES CORP. | |
Entity Incorporation State | DE | |
Entity Tax Identification Number | 74-2088619 | |
Entity Address, Address Line One | 1250 N.E. Loop 410, Suite 1000 | |
Entity Address, City or Town | San Antonio | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78209 | |
City Area Code | 855 | |
Local Phone Number | 884-0575 | |
Title of 12(g) Security | Common Stock, par value $0.001 per share | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 1,647,224 | |
Documents Incorporated by Reference | Portions of the proxy statement related to the registrant’s 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. | |
Entity Central Index Key | 0000320575 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
No Trading Symbol Flag | true | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 31,181 | $ 24,619 |
Restricted cash | 1,148 | 998 |
Receivables: | ||
Trade, net of allowance for doubtful accounts | 29,803 | 79,135 |
Unbilled receivables | 4,740 | 12,590 |
Insurance recoveries | 22,106 | 22,873 |
Other receivables | 2,716 | 8,928 |
Inventory | 12,641 | 22,453 |
Assets held for sale | 3,608 | 3,447 |
Prepaid expenses and other current assets | 5,190 | 7,869 |
Total current assets | 113,133 | 182,912 |
Property and equipment, at cost | 193,529 | 1,119,546 |
Less accumulated depreciation | 31,760 | 648,376 |
Net property and equipment | 161,769 | 471,170 |
Intangible assets, net of accumulated amortization | 8,942 | 0 |
Deferred income taxes | 12,746 | 11,540 |
Operating lease assets | 4,383 | 7,264 |
Other noncurrent assets | 13,457 | 1,068 |
Total assets | 314,430 | 673,954 |
Current liabilities: | ||
Accounts payable | 17,516 | 32,551 |
Current portion of long-term debt | 150 | 0 |
Deferred revenues | 1,019 | 1,339 |
Accrued expenses: | ||
Employee compensation and related costs | 7,325 | 13,781 |
Insurance claims and settlements | 22,106 | 22,873 |
Insurance premiums and deductibles | 3,928 | 5,940 |
Interest | 2,015 | 5,452 |
Other | 4,959 | 9,645 |
Total current liabilities | 59,018 | 91,581 |
Long-term debt, less unamortized discount and debt issuance costs | 147,167 | 467,699 |
Noncurrent operating lease liabilities | 3,622 | 5,700 |
Deferred income taxes | 947 | 4,417 |
Other noncurrent liabilities | 1,779 | 481 |
Total liabilities | 212,533 | 569,878 |
Shareholders' equity: | ||
Predecessor common stock $.10 par value; 200,000,000 shares authorized; 79,202,216 shares outstanding at December 31, 2019 | 0 | 8,008 |
Successor common stock, $0.001 par value; 25,000,000 shares authorized; 1,647,224 shares outstanding at December 31, 2020 | 2 | 0 |
Additional paid-in capital | 142,119 | 553,210 |
Predecessor treasury stock, at cost; 877,047 shares at December 31, 2019 | 0 | (5,090) |
Accumulated deficit | (40,224) | (452,052) |
Total shareholders' equity | 101,897 | 104,076 |
Total liabilities and stockholders' equity | $ 314,430 | $ 673,954 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.10 |
Common stock, shares authorized | 25,000,000 | 200,000,000 |
Common stock, shares outstanding | 1,647,224 | |
Predecessor Common Stock, shares outstanding | 79,202,216 | |
Treasury stock, shares | 877,047 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues | $ 142,370 | $ 103,874 | $ 575,792 |
Costs and expenses: | |||
Operating costs | 114,047 | 78,198 | 431,353 |
Depreciation and amortization | 35,647 | 33,613 | 90,884 |
General and administrative | 22,047 | 24,055 | 91,185 |
Prepetition restructuring charges | 16,822 | 0 | 0 |
Impairment | 17,853 | 742 | 2,667 |
Bad debt expense (recovery), net | 1,209 | (227) | (79) |
Gain on dispositions of property and equipment, net | (989) | (6,132) | (4,513) |
Total costs and expenses | 206,636 | 130,249 | 611,497 |
Loss from operations | (64,266) | (26,375) | (35,705) |
Other income (expense): | |||
Interest expense, net of interest capitalized | (12,294) | (14,831) | (39,835) |
Reorganization items, net | (21,903) | (4,263) | 0 |
Loss on extinguishment of debt | (4,215) | (188) | 0 |
Other income (expense), net | (3,333) | 2,617 | 2,307 |
Total other expense, net | (41,745) | (16,665) | (37,528) |
Loss before income taxes | (106,011) | (43,040) | (73,233) |
Income tax benefit | 1,786 | 2,816 | 9,329 |
Net income (loss) | $ (104,225) | $ (40,224) | $ (63,904) |
Loss per common share - Basic | $ (1.32) | $ (36.01) | $ (0.81) |
Loss per common share - Diluted | $ (1.32) | $ (36.01) | $ (0.81) |
Weighted average number of shares outstanding - Basic | 78,968 | 1,117 | 78,423 |
Weighted average number of shares outstanding - Diluted | 78,968 | 1,117 | 78,423 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | (790,000) | ||||
Common stock, shares, outstanding at Dec. 31, 2018 | 79,004,000 | ||||
Beginning Balance, value at Dec. 31, 2018 | $ 165,058 | $ 7,900 | $ (4,965) | $ 550,548 | $ (388,425) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net income (loss) | (63,904) | (63,904) | |||
Purchase of treasury stock, shares | (87,000) | ||||
Purchase of treasury stock, value | (125) | $ (125) | |||
Equity awards vested or exercised, shares | 1,075,000 | ||||
Equity awards vested, issued, or exercised, value | $ (108) | (108) | |||
Stock-based compensation expense | 2,770 | 2,770 | |||
Common stock, shares, outstanding at Dec. 31, 2019 | 80,079,000 | ||||
Ending Balance, value at Dec. 31, 2019 | 104,076 | $ 8,008 | $ (5,090) | 553,210 | (452,052) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | (877,000) | ||||
Cumulative-effect adjustment due to adoption of ASC Topic 842 | Accounting Standards Update 2016-02 [Member] | 277 | 277 | |||
Net income (loss) | (104,225) | (104,225) | |||
Purchase of treasury stock, shares | (265,000) | ||||
Purchase of treasury stock, value | (8) | $ (8) | |||
Equity awards vested or exercised, shares | 905,000 | ||||
Equity awards vested, issued, or exercised, value | $ (90) | (90) | |||
Stock-based compensation expense | 1,306 | 1,306 | |||
Equity awards vested in connection with the Plan, shares | 7,946,000 | ||||
Equity awards vested in connection with the Plan, value | $ 795 | (795) | |||
Common stock, shares, outstanding at May. 31, 2020 | 0 | ||||
Ending Balance, value at May. 31, 2020 | 0 | $ 0 | $ 0 | 0 | 0 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | 0 | ||||
Net income (loss) | (40,224) | (40,224) | |||
Purchase of treasury stock, shares | (1,000) | ||||
Purchase of treasury stock, value | $ 0 | ||||
Equity awards vested or exercised, shares | 599,000 | ||||
Equity awards vested, issued, or exercised, value | $ (1) | (1) | |||
Stock-based compensation expense | 1,249 | 1,249 | |||
Stock Issued During Period, Shares, New Issues | 1,050,000 | ||||
Stock Issued During Period, Value, New Issues | 18,084 | $ 1 | |||
Issuance of Successor common stock | 18,083 | ||||
Equity component of Convertible Notes, net of offering costs | 120,875 | 120,875 | |||
Payment of in-kind interest on Convertible Notes | $ 1,913 | 1,913 | |||
Common stock, shares, outstanding at Dec. 31, 2020 | 1,647,224 | 1,649,000 | |||
Ending Balance, value at Dec. 31, 2020 | $ 101,897 | $ 2 | $ 0 | $ 142,119 | $ (40,224) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | (1,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (104,225) | $ (40,224) | $ (63,904) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 35,647 | 33,613 | 90,884 |
Allowance for doubtful accounts, net of recoveries | 1,209 | (227) | (79) |
Write-off of obsolete inventory | 0 | 0 | 570 |
Gain on dispositions of property and equipment, net | (989) | (6,132) | (4,513) |
Reorganization items, net | 18,713 | 0 | 0 |
Stock-based compensation expense | 552 | 1,249 | 2,770 |
Phantom stock compensation expense | 0 | 0 | |
Amortization of debt issuance costs and discount | 1,084 | 5,665 | 3,147 |
Interest paid in-kind | 0 | 4,956 | 0 |
Loss on extinguishment of debt | 4,215 | 188 | 0 |
Impairment | 17,853 | 742 | 2,667 |
Deferred income taxes | (546) | (4,130) | (10,811) |
Change in other noncurrent assets | (800) | (792) | 3,122 |
Change in other noncurrent liabilities | 1,524 | 12 | (4,328) |
Changes in current assets and liabilities: | |||
Receivables | 44,041 | 11,726 | 7,062 |
Inventory | 1,441 | 631 | (4,088) |
Prepaid expenses and other current assets | 1,121 | 715 | (809) |
Accounts payable | (15,174) | 1,162 | 3,638 |
Deferred revenues | (1,219) | 899 | (383) |
Accrued expenses | (6,692) | (8,127) | (12,811) |
Net cash provided by (used in) operating activities | (2,245) | 1,926 | 12,022 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (10,848) | (4,791) | (50,046) |
Proceeds from sale of property and equipment | 1,665 | 10,923 | 7,733 |
Proceeds from insurance recoveries | 22 | 155 | 1,469 |
Net cash provided by (used in) investing activities | (9,161) | 6,287 | (40,844) |
Cash flows from financing activities: | |||
Debt repayments | (175,000) | (2,649) | 0 |
Proceeds from Issuance of Debt | 195,187 | 0 | 0 |
Proceeds from DIP Facility | 4,000 | 0 | 0 |
Repayment of DIP Facility | (4,000) | 0 | 0 |
Payments of debt issuance costs | (7,625) | 0 | 0 |
Purchase of treasury stock | (8) | 0 | (125) |
Net cash provided by (used in) financing activities | 12,554 | (2,649) | (125) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,148 | 5,564 | (28,947) |
Beginning cash, cash equivalents, and restricted cash | 25,617 | 26,765 | 54,564 |
Ending cash, cash equivalents, and restricted cash | 26,765 | 32,329 | 25,617 |
Supplementary disclosure: | |||
Interest Paid | 8,105 | 2,235 | 37,342 |
Income tax paid | 893 | 885 | 3,964 |
Reorganization items paid | 14,947 | 13,985 | 0 |
Noncash investing and financing activity: | |||
Change in capital expenditure accruals | $ (1,924) | $ 979 | $ (5,217) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Our stock-based award plan is administered by the Compensation Committee of our Board of Directors, which selects persons eligible to receive awards and determines the number, terms, conditions, and other provisions of the awards. We recognize compensation cost for our stock-based compensation awards based on the fair value estimated in accordance with ASC Topic 718, Compensation—Stock Compensation, and we recognize forfeitures when they occur. For awards with graded vesting, we recognize compensation expense on a straight-line basis over the service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. The following summarizes our stock-based compensation expense recognized, by award type, and the compensation expense (benefit) recognized for phantom stock unit awards (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Stock option awards $ — $ 9 $ 137 Restricted stock awards 1,249 202 504 Restricted stock unit awards — 341 2,129 $ 1,249 $ 552 $ 2,770 Phantom stock unit awards $ — $ — $ (112) Predecessor Awards Prior to the Effective Date, we had various outstanding stock option, restricted stock, and restricted stock unit (RSU) awards, as well as phantom stock unit awards which were classified as liability awards under ASC Topic 718, Compensation—Stock Compensation . Certain of these awards were subject to performance and market conditions, and as a result, their fair values were measured using either the Black-Scholes pricing model or the Monte Carlo simulation model with inputs that are defined as Level 3 inputs under ASC Topic 820, Fair Value Measurements and Disclosures . Upon our emergence from the Chapter 11 Cases in May 2020, all unvested equity-based incentive compensation awards vested in full and settled in shares of our new post-emergence common stock at the conversion rate of 0.0006849838 new shares for each existing share, resulting in $0.7 million of accelerated compensation expense which was included in reorganization costs in the Predecessor period, as described further in Note 2, Emergence from Voluntary Reorganization under Chapter 11 . Successor Awards Pursuant to the terms of the Plan, we adopted the Pioneer Energy Services Corp. 2020 Employee Incentive Plan (the “Employee Incentive Plan”) providing for the issuance from time to time, as approved by our new board of directors, of equity and equity-based awards with respect to the Common Stock in the aggregate and on a fully-diluted basis, of up to 1,198,074 shares of Common Stock, representing approximately 114% of the shares of Common Stock issued on the Effective Date, but representing 10% of the shares of Common Stock issued on the Effective Date on a fully-diluted basis. The shares of Common Stock issued under the Employee Incentive Plan in the future will dilute all of the shares of Common Stock issued on the Effective Date and all shares of Common Stock issued upon conversion of the Convertible Notes equally. In July 2020, we issued to our former Chief Executive Officer in connection with his resignation 90,000 shares of restricted stock, which vested immediately upon issuance and converted to shares of our common stock with an aggregate fair value of $1.0 million. In December 2020, we granted 509,039 restricted stock awards, which will vest over a three-year period. When restricted stock awards are granted, shares of our common stock are considered issued, but subject to certain restrictions. The weighted-average grant-date fair value per share of restricted stock awards granted during the Successor period was $10.81, based on the price of our common stock estimated by third-party specialists using a discounted cash flow model with inputs that are defined as Level 3 inputs under ASC Topic 820, Fair Value Measurements and Disclosures . As of December 31, 2020, the aggregate unrecognized compensation cost to be recognized for our outstanding awards is $5.2 million with a weighted-average period remaining of 1.9 years. At December 31, 2020, the total shares available for future grants to employees and directors under the Employee Incentive Plan were 599,035. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Business Pioneer Energy Services Corp. provides land-based drilling services and production services to a diverse group of oil and gas exploration and production companies in the United States and internationally in Colombia. Our drilling services business segments provide contract land drilling services through three domestic divisions which are located in the Marcellus/Utica, Permian Basin and Eagle Ford, and Bakken regions, and internationally in Colombia. We provide a comprehensive service offering which includes the drilling rig, crews, supplies, and most of the ancillary equipment needed to operate our drilling rigs. Our fleet is 100% pad-capable and offers the latest advancements in pad drilling. The following table summarizes our current rig fleet count and composition for each drilling services business segment: Multi-well, Pad-capable AC rigs SCR rigs Total Domestic drilling 17 — 17 International drilling — 8 8 25 Our production services business segments provide a range of services to producers primarily in Texas, North Dakota, the Rocky Mountain region, and Louisiana. As of December 31, 2020, the fleet counts for each of our production services business segments were as follows: 550 HP 600 HP Total Well servicing rigs, by horsepower (HP) rating 111 12 123 Wireline services units 76 Basis of Presentation The accompanying consolidated financial statements include the accounts of Pioneer Energy Services Corp. and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. As described below, as a result of the application of fresh start accounting and the effects of the implementation of our Plan of Reorganization (as defined below), the consolidated financial statements after the Effective Date (as defined below) are not comparable with the consolidated financial statements on or before that date. See Note 3, Fresh Start Accounting , for additional information. Periods Presented — We qualify for certain reduced disclosure requirements as permitted by the SEC for smaller reporting companies including, among other things, the presentation of the two most recent fiscal years’ statements of operations, stockholders’ equity, and cash flows. Chapter 11 Cases — On March 1, 2020 (the “Petition Date”), Pioneer and certain of our domestic subsidiaries (collectively, the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). On May 11, 2020, the Bankruptcy Court confirmed the plan of reorganization (the “Plan”) that was filed with the Bankruptcy Court on March 2, 2020, and on May 29, 2020 (the “Effective Date”), the conditions to effectiveness of the plan were satisfied and we emerged from Chapter 11. See Note 2, Emergence from Voluntary Reorganization under Chapter 11 , for more information. The accompanying consolidated financial statements have been prepared as if we are a going concern and in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 852, Reorganizations (ASC Topic 852). Upon our emergence from Chapter 11, we adopted fresh start accounting in accordance with ASC Topic 852 and became a new entity for financial reporting purposes. As a result, the consolidated financial statements after the Effective Date are not comparable with the consolidated financial statements on or before that date as indicated by the “black line” division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to our financial position and results of operations on or before the Effective Date. We evaluated the events between May 29, 2020 and May 31, 2020 and concluded that the use of an accounting convenience date of May 31, 2020 (the “Fresh Start Reporting Date”) would not have a material impact on our consolidated financial statements. As such, the application of fresh start accounting was reflected in our consolidated balance sheet as of May 31, 2020 and related fresh start accounting adjustments were included in our consolidated statement of operations for the five months ended May 31, 2020. See Note 3, Fresh Start Accounting , for additional information. Use of Estimates — In preparing the accompanying consolidated financial statements, we make various estimates and assumptions that affect the amounts of assets and liabilities we report as of the dates of the balance sheets and income and expenses we report for the periods shown in the income statements and statements of cash flows. Our actual results could differ significantly from those estimates. Material estimates affecting our financial results, including those that are particularly susceptible to significant changes in the near term, relate to our application of fresh start accounting, our estimates of certain variable revenues and amortization periods of certain deferred revenues and costs associated with drilling daywork contracts, our estimates of projected cash flows and fair values for impairment evaluations, our estimate of the valuation allowance for deferred tax assets, and our estimate of the liability relating to the self-insurance portion of our health and workers’ compensation insurance. For information about our use of estimates relating to fresh start accounting, see Note 3, Fresh Start Accounting . Subsequent Events — In preparing the accompanying consolidated financial statements, we have reviewed events that have occurred after December 31, 2020, through the filing of this Form 10-K, for inclusion as necessary. Recently Issued Accounting Standards and Securities and Exchange Commission Rules Changes to accounting principles generally accepted in the United States of America (“U.S. GAAP”) are established by the FASB in the form of Accounting Standards Updates (ASUs) to the FASB ASC. We consider the applicability and impact of all ASUs. Additionally, because we have securities registered under the Securities and Exchange Act of 1934, we consider the applicability and impact of releases issued by the Securities & Exchange Commission (the “SEC”). Other than the ASU and SEC release listed below, we have determined that there are currently no new or recently adopted ASUs or SEC releases which we believe will have a material impact on our consolidated financial position and results of operations. • Convertible Instruments and Contracts in an Entity’s Own Equity . In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and preferred stock. Additionally, this ASU improves the consistency of EPS calculations by requiring entities to apply one method, the if-converted method, to all convertible instruments in diluted earnings-per-share calculations. This ASU will be effective for us on January 1, 2022, however, early adoption is permitted on January 1, 2021. We are currently evaluating the effect that the ASU will have on our consolidated financial statements. • In March 2020, the SEC issued SEC Release No. 33-10762, effective January 4, 2021, which amends Rule 3-10 of Regulation S-X governing financial disclosure requirements for guarantors and issuers of guaranteed registered securities. Among other changes, the amendment simplifies the disclosure requirements, eliminating the requirement to disclose condensed consolidating financial statements within the financial statements for qualifying entities and allowing abbreviated disclosures of the guarantor/issuer relationship within Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations . We adopted the amendment effective December 31, 2020 and have included supplemental guarantor information in the Liquidity and Capital Resources section of Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations . Significant Accounting Policies and Detail of Account Balances Cash and Cash Equivalents — We had no cash equivalents at December 31, 2020. Cash equivalents at December 31, 2019 were $8.9 million, consisting of investments in highly-liquid money-market mutual funds. Restricted Cash — Our restricted cash b alance primarily reflects the portion of net proceeds from the issuance of our senior secured term loan held in a restricted account until the completion of certain administrative tasks related to providing access rights to certain of our real property, a condition which is still in effect under the terms of our post-emergence debt instruments, as well as $0.2 million of proceeds from asset sales at December 31, 2020 which were used to fund the redemption of Senior Secured Notes tendered in January 2021, as described further in Note 7, Debt . Revenue — Production services jobs are varied in nature but typically represent a single performance obligation, either for a particular job, a series of distinct jobs, or a period of time during which we stand ready to provide services as our client needs them. Revenue is recognized for these services over time, as the services are performed. Our drilling services business segments earn revenues by drilling oil and gas wells for our clients under daywork contracts. Daywork contracts are comprehensive agreements under which we provide a comprehensive service offering, including the drilling rig, crew, supplies, and most of the ancillary equipment necessary to operate the rig. We account for our services provided under daywork contracts as a single performance obligation comprised of a series of distinct time increments which are satisfied over time. Accordingly, dayrate revenues are recognized in the period during which the services are performed. All of our revenues are recognized net of sales taxes, when applicable. For more information, see Note 4, Revenue from Contracts with Customers . Trade and Unbilled Accounts Receivable — We record trade accounts receivable at the amount we invoice to our clients. These accounts do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our accounts receivable as of the balance sheet date. We determine the allowance based on the credit worthiness of our clients and general economic conditions. Consequently, an adverse change in those factors could affect our estimate of our allowance for doubtful accounts. Substantially all of our unbilled receivables represent revenues we have recognized in excess of amounts billed on drilling contracts. For more information, see Note 4, Revenue from Contracts with Customers . Other Receivables — Our other receivables primarily consist of recoverable taxes related to our international operations, as well as refundable payroll tax credit receivables associated with the CARES Act and vendor rebates. Inventories — Inventories primarily consist of drilling rig replacement parts and supplies held for use by our drilling operations in Colombia and job supplies held for use by our wireline operations (and previously our coiled tubing operations). Inventories are valued at the lower of cost (first in, first out or actual) or net realizable value. Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets include items such as insurance, rent deposits, software subscriptions, and other fees. We routinely expense these items in the normal course of business over the periods that we benefit from these expenses. Prepaid expenses and other current assets also include deferred mobilization costs for short-term drilling contracts and demobilization revenues recognized on drilling contracts expiring in the near term. Property and Equipment — Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided for our assets over the estimated useful lives of the assets using the straight-line method. We record the same depreciation expense whether our equipment is idle or working. We charge our expenses for maintenance and repairs to operating costs. We capitalize expenditures for renewals and betterments to the appropriate property and equipment accounts. For more information, see Note 5, Property and Equipment . Intangible Assets — Our intangible assets consist of trademark and tradename assets established in connection with the adoption of fresh start accounting which are being amortized using the straight-line method over the ten-year estimated useful life. Amortization expense is estimated to be approximately $0.9 million for each of the five succeeding years ending December 31, 2021 through 2025, although actual amortization amounts could differ as a result of future acquisitions, impairments, changes in amortization periods, or other factors. For more information, see Note 3, Fresh Start Accounting. Other Noncurrent Assets — Other noncurrent assets primarily consist of prepaid taxes in Colombia which are creditable against future income taxes, as well as the noncurrent portion of prepaid insurance premiums, unamortized debt issuance costs associated with our ABL Credit Facility, deferred mobilization costs on long-term drilling contracts, cash deposits related to the deductibles on our workers’ compensation insurance policies, and deferred compensation plan investments. Other Accrued Expenses — Our other accrued expenses include accruals for items such as sales taxes, property taxes and withholding tax liabilities related to our international operations and accruals for professional fees. We routinely expense these items in the normal course of business over the periods these expenses benefit. Our other accrued expenses also includes the current portion of the lease liability associated with our long-term operating leases. Other Noncurrent Liabilities — Our other noncurrent liabilities primarily relate to the noncurrent portion of payroll taxes deferred in connection with the CARES Act, as well as noncurrent deferred compensation and the noncurrent portion of deferred mobilization revenues. Insurance Recoveries, Accrued Insurance Claims and Settlements, and Accrued Premiums and Deductibles — We use a combination of self-insurance and third-party insurance for various types of coverage. Our accrued premiums and deductibles include the premiums and estimated liability for the self-insured portion of costs associated with our health, workers’ compensation, general liability and auto liability insurance. Our insurance recoveries receivables and our accrued liability for insurance claims and settlements represent our estimate of claims in excess of our deductible, which are covered and managed by our third-party insurance providers, some of which may ultimately be settled by the insurance provider in the long-term. These are presented in our consolidated balance sheets as current due to the uncertainty in the timing of reporting and payment of claims. For more information, see Note 12, Employee Benefit Plans and Insurance . Debt — Due to the application of fresh start accounting, our debt obligations were recognized at fair value on our consolidated balance sheet at the Fresh Start Reporting Date as described further in Note 3, Fresh Start Accounting . Additionally, because the Convertible Notes contain an embedded conversion option whereby they, or a portion of them, may be settled in cash, we have separately accounted for the liability and equity components of the Convertible Notes in accordance with the accounting requirements for convertible debt instruments set forth in ASC Topic 470-20, Debt with Conversion and Other Options . We treat the issuance of new Convertible Notes for the payment of in-kind interest as an issuance of a new instrument that retains the original economics associated with the conversion option at inception, and therefore, the Convertible Notes issued in payment of in-kind interest are accounted for with their separate equity and liability components that are proportionally the same as the original issuance. For more information, see Note 7, Debt. Leases — As a drilling and production services provider, we provide the drilling rigs and production services equipment which are necessary to fulfill our performance obligations and which are considered leases under ASU No. 2016-02, Leases, ( together with its amendments, herein referred to as “ASC Topic 842”). However, we elected to apply the practical expedient in ASU No. 2018-11, Leases: Targeted Improvements, which allows us to continue to recognize our revenues (both lease and service components) under ASC Topic 606, and present them as one revenue stream in our consolidated statements of operations. As a lessee, we recognize an operating lease asset and a corresponding operating lease liability for all our long-term leases for which we elected to combine, or not separate, the lease and non-lease components, and therefore, all fixed charges associated with non-lease components are included in the lease payments and the calculation of the operating lease asset and associated lease liability. Due to the nature of our business, any option to renew our short-term leases, and the options to extend certain of our long-term real estate leases, are generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease, and the lease payments during these periods are similarly excluded from the calculation of operating lease asset and lease liability balances. For more information, see Note 6, Leases . Treasury Stock — Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired common stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of treasury stock shares are credited or charged to additional paid in capital using the average cost method. Stock-based Compensation — We recognize compensation cost for our stock-based compensation awards based on the fair value estimated in accordance with ASC Topic 718, Compensation—Stock Compensation, and we recognize forfeitures when they occur. For our awards with graded vesting, we recognize compensation expense on a straight-line basis over the service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. For more information, see Note 11, Stock-Based Compensation Plans . Income Taxes — We follow the asset and liability method of accounting for income taxes, under which we recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure our deferred tax assets and liabilities by using the enacted tax rates we expect to apply to taxable income in the years in which we expect to recover or settle those temporary differences. The effect of a change in tax rates on deferred tax assets and liabilities is reflected in income in the period of enactment. For more information, see Note 8, Income Taxes . Foreign Currencies — Our functional currency for our foreign subsidiary in Colombia is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the period. Income statement accounts are translated at average rates for the period. Gains and losses from remeasurement of foreign currency financial statements into U.S. dollars and from foreign currency transactions are included in other income or expense. Related Party Transactions — We paid approximately $0.2 million for consulting services provided during 2020 by one of our directors, Matthew S. Porter, in connection with his appointment as Interim Chief Executive Officer in July 2020. On December 31, 2020, Mr. Porter was appointed by the Board of Directors to be the President and Chief Executive Officer, at which time his consulting agreement ended. Comprehensive Income — We have not reported comprehensive income due to the absence of items of other comprehensive income in the periods presented. |
Emergence from Voluntary Reorga
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Reorganizations [Abstract] | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | Emergence from Voluntary Reorganization under Chapter 11 Reorganization and Chapter 11 Proceedings On March 1, 2020 (the “Petition Date”), Pioneer Energy Services Corp. (“Pioneer”) and its affiliates Pioneer Coiled Tubing Services, LLC, Pioneer Drilling Services, Ltd., Pioneer Fishing & Rental Services, LLC, Pioneer Global Holdings, Inc., Pioneer Production Services, Inc., Pioneer Services Holdings, LLC, Pioneer Well Services, LLC, Pioneer Wireline Services Holdings, Inc., Pioneer Wireline Services, LLC (collectively with Pioneer, the “Pioneer RSA Parties”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Chapter 11 proceedings were being jointly administered under the caption In re Pioneer Energy Services Corp. et al (the “Chapter 11 Cases”). In connection with the Bankruptcy Petitions, the Pioneer RSA Parties entered into a restructuring support agreement (the “RSA”) with holders of approximately 99% in aggregate principal amount of our outstanding Term Loan (the “Consenting Term Lenders”) and holders of approximately 75% in aggregate principal amount of our Prepetition Senior Notes (the “Consenting Noteholders” and together with the Consenting Term Lenders, the “Consenting Creditors”). Pursuant to the RSA, the Consenting Creditors and the Pioneer RSA Parties made certain customary commitments to each other, including the Consenting Noteholders committing to vote for, and the Consenting Creditors committing to support, the restructuring transactions (the “Restructuring”) to be effectuated through a plan of reorganization that incorporates the economic terms included in the RSA (the “Plan”). The Pioneer RSA Parties filed the Plan with the Bankruptcy Court on March 2, 2020. After commencement of the Chapter 11 Cases, we continued to operate our businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On May 11, 2020, the Bankruptcy Court entered an order, Docket No. 331 (the “Confirmation Order”) confirming the Plan. On May 29, 2020 (the “Effective Date”) the conditions to effectiveness of the Plan were satisfied, and we emerged from Chapter 11. The commencement of the Chapter 11 Cases constituted an event of default that accelerated our obligations under our Prepetition Senior Notes, the Prepetition ABL Facility, and Term Loan. Under the Bankruptcy Code, holders of our Prepetition Senior Notes and the lenders under our Term Loan and the Prepetition ABL Facility were stayed from taking any action against us as a result of this event of default. On the Effective Date, all applicable agreements governing the obligations under the Term Loan, Prepetition Senior Notes and Prepetition ABL Facility were terminated. The Term Loan and Prepetition ABL Facility were paid in full and all outstanding obligations under the Prepetition Senior Notes were canceled in exchange for 94.25% of the pro forma common equity (subject to the dilution from the Convertible Notes and new management incentive plan). On the Effective Date, we entered into a $75 million senior secured asset-based revolving credit agreement which was later amended and reduced to $40 million in August 2020 (the “ABL Credit Facility”), and issued $129.8 million of aggregate principal amount of 5% convertible senior unsecured pay-in-kind notes due 2025 (the “Convertible Notes”) and $78.1 million of aggregate principal amount of floating rate senior secured notes due 2025 (the “Senior Secured Notes”), all of which are further described in Note 7, Debt . Also on the Effective Date, by operation of the Plan, all agreements, instruments, and other documents evidencing, relating to or connected with any equity interests of the Company, including the existing common stock, issued and outstanding immediately prior to the Effective Date, and any rights of any holder in respect thereof, were deemed canceled, discharged and of no force or effect. Pursuant to the Plan, we issued a total of 1,049,804 shares of our new common stock, with approximately 94.25% of such new common stock being issued to holders of the Prepetition Senior Notes outstanding immediately prior to the Effective Date. Holders of the existing common stock received an aggregate of 5.75% of the proforma common equity (subject to the dilution from the Convertible Notes and new management incentive plan), at a conversion rate of 0.0006849838 new shares for each existing share. As part of the transactions undertaken pursuant to the Plan, we converted from a Texas corporation to a Delaware corporation, filed the Certificate of Incorporation of the Company with the office of the Secretary of State of the State of Delaware, and adopted Amended and Restated Bylaws of the Company. Backstop Commitment Agreement Prior to filing the Plan, we entered into a separate backstop commitment agreement with the Consenting Noteholders and certain members of our senior management (the “Backstop Commitment Agreement”), pursuant to which the Consenting Noteholders and certain members of our senior management committed to backstop approximately $118 million and $1.8 million, respectively, of new convertible bonds to be issued in a rights offering. As consideration for this commitment, we committed to make an aggregate payment of $9.4 million and $0.1 million to the Consenting Noteholders and certain members of our senior management, respectively, in the form of additional new convertible bonds, or in cash if the Backstop Commitment Agreement was terminated under certain circumstances as forth therein. As a result, we incurred a liability and expense at the time we entered into the Backstop Commitment Agreement for the aggregate amount of $9.6 million (the “Commitment Premium”) which was recognized in our Predecessor condensed consolidated financial statements as of and for the three months ended March 31, 2020. The Commitment Premium was settled in conjunction with our emergence from Chapter 11 and the issuance of the Convertible Notes. Debtor-in-Possession Financing On February 28, 2020, we received commitments pursuant to the Commitment Letter from PNC Bank, N.A. for a $75 million asset-based revolving loan debtor-in-possession financing facility (the “DIP Facility”) and a $75 million asset-based revolving exit financing facility. On March 3, 2020, with the approval of the Bankruptcy Court, we entered into the DIP Facility and used the proceeds thereunder to refinance all outstanding letters of credit under the Prepetition ABL Facility in connection with the termination of the Prepetition ABL Facility and to pay fees and expenses in connection with the Chapter 11 proceedings and transaction and professional fees related thereto. The DIP Facility provided financing with a 5-month maturity, bearing interest at a rate of LIBOR plus 200 basis points per annum, and contained customary covenants and events of default. The DIP Facility was terminated upon our emergence from the Chapter 11 Cases on May 29, 2020. Chapter 11 Accounting Prepetition restructuring charges — All expenses and losses incurred prior to the Petition Date which were related to the Chapter 11 proceedings are presented as prepetition restructuring charges in our Predecessor consolidated statements of operations, including $9.6 million of expense incurred for the Commitment Premium pursuant to the Backstop Commitment Agreement. Reorganization items, net — Any expenses, gains, and losses incurred subsequent to the filing for Chapter 11 and directly related to such proceedings are presented as reorganization items in our consolidated statements of operations. Reorganization items consisted of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Gain on settlement of liabilities subject to compromise $ — $ (291,378) Fresh start valuation adjustments — 284,392 Legal and professional fees 3,860 26,038 Unamortized debt costs on liabilities subject to compromise — 2,003 Accelerated stock-based compensation — 713 Loss (gain) on rejected leases 403 (378) DIP facility costs — 513 $ 4,263 $ 21,903 Fresh Start Accounting In connection with our emergence from bankruptcy and in accordance with ASC Topic 852, we qualified for and adopted fresh start accounting on the Effective Date. We were required to adopt fresh start accounting because (i) the holders of existing voting shares of the Predecessor Company received less than 50% of the voting shares of the Successor Company, and (ii) the reorganization value of our assets immediately prior to confirmation of the Plan was less than the post-petition liabilities and allowed claims. In accordance with ASC Topic 852, with the application of fresh start accounting, we allocated the reorganization value to our individual assets and liabilities (except for deferred income taxes) based on their estimated fair values in conformity with ASC Topic 805, Business Combinations . The amount of deferred taxes was determined in accordance with ASC Topic 740, Income Taxes . The Effective Date fair values of our assets and liabilities differed materially from their recorded values as reflected on the historical balance sheets. Reorganization Value The reorganization value represents the fair value of the Successor Company’s total assets before considering liabilities and is intended to approximate the amount a willing buyer would pay for the Company’s assets immediately after restructuring. The reorganization value was derived from the enterprise value, which represents the estimated fair value of an entity’s long-term debt and equity. As set forth in the Plan, the enterprise value of the Successor Company was estimated to be in the range of $275 million to $335 million with a midpoint of $305 million. However, the third-party valuation advisor engaged to assist in determining the enterprise value subsequently revised this range to $249 million to $303 million, with a midpoint of $276 million, which was filed with the Bankruptcy Court in order to update the initial assumptions for current information. Based on the estimates and assumptions discussed below, we estimated the enterprise value to be the midpoint of the range of estimated enterprise value of $276 million. The following table reconciles the enterprise value to the estimated fair value of our Successor Common Stock as of the Fresh Start Reporting Date (dollars in thousands, except per share data): Enterprise value $ 276,000 Plus: cash and cash equivalents 10,592 Less: fair value of debt (145,420) Total implied equity (prior to debt issuance costs on equity component on Convertible Notes) 141,172 Less: equity portion of Convertible Notes (123,088) Fair value of Successor stockholders’ equity $ 18,084 Shares issued upon emergence 1,049,804 Per share value $ 17.23 The following table reconciles enterprise value to the reorganization value of our Successor’s assets to be allocated to our individual assets as of the Fresh Start Reporting Date (amounts in thousands): Enterprise value $ 276,000 Plus: cash and cash equivalents 10,592 Plus: current liabilities 65,799 Plus: non-current liabilities excluding long-term debt 6,626 Less: debt issuance costs on Successor debt (6,394) Reorganization value of Successor assets $ 352,623 With the assistance of our financial advisors, we determined the enterprise and corresponding equity value of the Successor using various valuation methods, including (i) discounted cash flow analysis, (ii) comparable company analysis and (iii) precedent transaction analysis. The use of each approach provides corroboration for the other approaches. In order to estimate the enterprise value using the discounted cash flow (DCF) analysis approach, management’s estimated future cash flow projections through 2024, plus a terminal value calculated assuming a perpetuity growth rate and applying a multiple to the terminal year’s projected earnings before interest, tax, depreciation and amortization (EBITDA), were discounted to an assumed present value using our estimated weighted average cost of capital (WACC), which represents the internal rate of return (IRR). The comparable company analysis provides an estimate of the company’s value relative to other publicly traded companies with similar operating and financial characteristics, by which a range of EBITDA multiples of the comparable companies was then applied to management’s projected EBITDA to derive an estimated enterprise value. Precedent transaction analysis provides an estimate of enterprise value based on recent sale transactions of similar companies, by deriving the implied EBITDA multiple of those transactions, based on sales prices, which was then applied to management’s projected EBITDA. Certain inputs and assumptions used to estimate the enterprise value are considered significant unobservable inputs which are classified as Level 3 inputs under ASC Topic 820, Fair Value Measurements and Disclosures , including management’s estimated future cash flow projections. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties beyond our control, and accordingly, our actual results could vary materially. Valuation Process T he fair values of our principal assets (including inventory, drilling and production services equipment, land and buildings, and intangible assets), and our liabilities were estimated with the assistance of third-party valuation advisors. The cost, income and market approaches were utilized in estimating these fair values. As more than one approach was used in our valuation analysis, the various approaches were reconciled to determine a final value conclusion. Further, economic obsolescence was considered in determining the fair value of our inventory and property and equipment. The fair value was allocated to our individual assets and liabilities as follows: Inventory — Inventory valued consisted of spare parts and consumables that support our international, coiled tubing and wireline operations. The fair value of the international spare parts and coiled tubing inventory was determined using the indirect method of the cost approach, with adjustments for economic obsolescence. For wireline inventory, the cost basis was adjusted to account for the changes in cost between the acquisition date and the valuation date. Property and Equipment — Property and equipment valued consisted of leasehold improvements, machinery and equipment, transportation equipment, office furniture, fixtures and equipment, computers and software, construction-in-progress and assets held for sale. The fair value of our property and equipment was estimated using the cost approach and market approach, while the income approach was considered in the context of the economic obsolescence analysis which was applied to certain assets. As a part of the valuation process, the third-party advisors performed site inspections and utilized internal data to identify and value assets. Land and Buildings — Land and buildings valued consisted of four facilities and the underlying land, for which the fair value was estimated using the cost approach and sales comparison (market) approach, with adjustments for economic obsolescence to certain assets. Intangible Assets — Intangible assets valued consisted of trademark and tradename, for which the fair value was estimated using the relief-from-royalty income approach. As a part of the valuation process, the third-party advisors considered overall revenue and cash flow projections and guidance on long-term growth rates. Additionally, above or below market leases and contracts and relationships were examined and determined to have no fair value. The value of our intangible assets will be amortized using the straight-line method over the economic useful life, which we estimated to be ten years. Senior Secured Notes — The fair value of the Senior Secured Notes was estimated by applying a stochastic interest rate model implemented within a binomial lattice framework that considers the call provisions associated with the notes and captures the decision of prepaying the notes or holding to maturity by evaluating the optimal decision at each time step constructed within the lattice model. Convertible Notes — The fair value of the Convertible Notes was estimated by applying a binomial lattice model and a recovery rate adjustment model, which provides a quantitative method for estimating the yield for a debt or debt-like security based on an observed market yield for a security of a different seniority. Certain inputs and assumptions used to derive the fair value of the Convertible Notes are considered significant unobservable inputs which are classified as Level 3 inputs under ASC Topic 820, Fair Value Measurements and Disclosures , including the company’s stock price, the volatility and the market yield related to the Convertible Notes. Consolidated Balance Sheet The adjustments set forth in the following consolidated balance sheet as of May 31, 2020 reflect the effects of the transactions contemplated by the Plan and executed on the fresh start reporting date (reflected in the column entitled “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column entitled “Fresh Start Accounting Adjustments”). As of May 31, 2020 (in thousands) Predecessor Reorganization Adjustments Fresh Start Accounting Adjustments Successor ASSETS Cash and cash equivalents $ 21,253 $ (10,661) (1) $ — $ 10,592 Restricted cash 4,452 11,721 (2) — 16,173 Receivables: Trade, net of allowance for doubtful accounts 33,537 — — 33,537 Unbilled receivables 9,163 — — 9,163 Insurance recoveries 23,636 — — 23,636 Other receivables 5,256 1,000 (3) — 6,256 Inventory 21,012 — (6,883) (18) 14,129 Assets held for sale 1,825 — 29 (19) 1,854 Prepaid expenses and other current assets 4,817 — 952 (20) 5,769 Total current assets 124,951 2,060 (5,902) 121,109 Property and equipment, at cost 1,082,704 — (886,733) (21) 195,971 Less accumulated depreciation 655,512 — (655,512) (21) — Net property and equipment 427,192 — (231,221) 195,971 Intangible assets, net of accumulated amortization — — 9,370 (22) 9,370 Deferred income taxes 10,897 — (2,157) (23) 8,740 Operating lease assets 5,234 — — 5,234 Other noncurrent assets 13,247 (5,023) (4) 3,975 (24) 12,199 Total assets $ 581,521 $ (2,963) $ (225,935) $ 352,623 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable $ 24,601 $ (9,478) (5) $ — $ 15,123 Deferred revenues 121 — — 121 Commitment premium 9,584 (9,584) (6) — — Debtor in possession financing 4,000 (4,000) (7) — — Accrued expenses: Employee compensation and related costs 4,970 — — 4,970 Insurance claims and settlements 23,517 — — 23,517 Insurance premiums and deductibles 5,269 — — 5,269 Interest 3,775 (3,731) (8) — 44 Other 12,436 4,329 (9) (10) 16,755 Total current liabilities 88,273 (22,464) (10) 65,799 Long-term debt, less unamortized discount and debt issuance costs 175,000 (53,831) (10) 20,070 (25) 141,239 Noncurrent operating lease liabilities 4,189 — — 4,189 Deferred income taxes 4,296 — (3,225) (26) 1,071 Other noncurrent liabilities 1,366 — — 1,366 Total liabilities not subject to compromise 273,124 (76,295) 16,835 213,664 Liabilities subject to compromise 308,422 (308,422) (11) — — Stockholders’ equity: Predecessor common stock 8,893 (8,893) (12) — — Successor common stock — 1 (13) — 1 Predecessor additional paid-in capital 553,631 (553,631) (14) — — Successor additional paid-in capital — 98,413 (15) 40,545 (27) 138,958 Predecessor treasury stock, at cost (5,098) 5,098 (16) — — Accumulated deficit (557,451) 840,766 (17) (283,315) (28) — Total stockholders’ equity (25) 381,754 (242,770) 138,959 Total liabilities and stockholders’ equity $ 581,521 $ (2,963) $ (225,935) $ 352,623 (1) Represents the following net change in cash and cash equivalents: Cash proceeds from Convertible Notes $ 120,187 Cash proceeds from Senior Secured Notes 75,000 Payment to fund claims reserve (950) Payment to escrow remaining professional fees (10,771) Payment of professional fees (9,468) Payment in full to extinguish DIP Facility (4,000) Payment of accrued interest on DIP Facility (55) Payment of DIP Facility fees (177) Payment in full to extinguish Prepetition Term Loan (175,000) Payment of accrued interest on Prepetition Term Loan (3,677) Payment of prepayment penalty on Prepetition Term Loan (1,750) $ (10,661) (2) Represents the following net change in restricted cash: Payment to fund rejected leases claims reserve $ 950 Payment to escrow remaining professional fees 10,771 $ 11,721 (3) Represents recognition of a receivable for a portion of the proceeds from the issuance of the Senior Secured Notes which was received in June 2020. (4) Represents the reclassification of previously paid debt issuance costs from deferred assets to offset the carrying amount of long-term debt. (5) Represents the payment of professional fees which were incurred prior to emergence. (6) Represents the settlement of the Backstop Commitment Premium upon issuance of the Convertible Notes. (7) Represents the payment to extinguish the DIP Facility. (8) Represents the payment of accrued interest on the Prepetition Term Loan and DIP Facility. (9) Represents the increase in accrued expenses for fees which were incurred upon our emergence from Chapter 11. (10) Represents the following changes in long-term debt, less unamortized discount and debt issuance costs: Payment in full to extinguish Prepetition Term Loan $ (175,000) Issuance of Senior Secured Notes at Par 78,125 Recognition of debt issuance costs on Senior Secured Notes (2,913) Recognition of liability component of Convertible Notes 47,225 Recognition of debt issuance costs on liability component of Convertible Notes (1,268) $ (53,831) Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . (11) Represents the settlement of liabilities subject to compromise in accordance with the Plan, for which the resulting gain is as follows: Prepetition Senior Notes $ 300,000 Accrued interest on Prepetition Senior Notes 8,422 Liabilities subject to compromise 308,422 Cash paid by holders of Prepetition Senior Notes 118,013 Issuance of equity to Prepetition Senior Notes creditors (17,044) Notes Received by Prepetition Senior Note holders (118,013) $ 291,378 (12) Represents the cancellation of Predecessor common stock. (13) Represents the issuance of Successor common stock to prior equity holders and to settle the Prepetition Senior Notes. (14) Represents the cancellation of Predecessor additional paid-in capital. (15) The changes in Successor additional paid-in capital were as follows: Recognition of equity component of Convertible Notes $ 82,546 Issuance of Successor common stock to Prepetition Senior Notes creditors and prior equity holders 18,083 Recognition of debt issuance costs on equity component of Convertible Notes (2,216) $ 98,413 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . (16) Represents the cancellation of Predecessor treasury stock. (17) Represents the cumulative impact to Predecessor retained earnings of the reorganization adjustments described above. (18) Represents the fair value adjustment to inventory, as described further in the previous section under the heading “ Valuation Process ”. (19) Represents the fair value adjustment to assets held for sale, as described further in the previous section under the heading “ Valuation Process ”. (20) Represents deferred compensation associated with the excess of fair value over the par value of Convertible Notes purchased by senior management, which is compensation to the Successor and therefore was expensed in June 2020. (21) Represents the following fair value adjustments to property and equipment: Predecessor Fair Value Successor Drilling rigs and equipment $ 1,010,612 $ (832,294) $ 178,318 Vehicles 41,283 (28,561) 12,722 Building and improvements 16,619 (13,742) 2,877 Office equipment 12,231 (11,743) 488 Land 1,959 (393) 1,566 $ 1,082,704 $ (886,733) $ 195,971 Less: Accumulated Depreciation (655,512) 655,512 — $ 427,192 $ (231,221) $ 195,971 (22) Represents the fair value adjustment to recognize the trademark and tradename of Pioneer Energy Services Corp. as an intangible, as described further in the above section under the heading “ Valuation Process ”. (23) Represents the recognition of the noncurrent deferred tax asset as a result of the cumulative tax impact of the fresh start adjustments herein. (24) Represents a prepaid tax asset established as part of the fresh start accounting adjustments. (25) Represents the following fair value adjustments to long-term debt less unamortized discount and debt issuance costs: Fair value adjustment to the liability component of the Convertible Notes $ 23,195 Discount on Senior Secured Notes (3,125) $ 20,070 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . (26) Represents the derecognition of the deferred tax liability as a result of the cumulative tax impact of the fresh start adjustments herein. (27) Represents the fair value adjustment to the equity component of the Convertible Notes. (28) Represents the cumulative impact of the fresh start accounting adjustments discussed above and the elimination of Predecessor accumulated earnings. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment The following table presents the estimated useful lives and costs of our assets by class as of December 31, 2020 (amounts in thousands, except useful lives): Successor Lives December 31, 2020 Drilling rigs and equipment 3 - 25 $ 136,982 Well servicing rigs and equipment 5 - 17 32,346 Wireline units and equipment 1 - 10 6,057 Vehicles 3 - 5 12,128 Buildings and improvements 2 - 40 2,702 Office equipment 3 - 5 478 Property and equipment not yet placed in service 0 1,207 Land 0 1,629 $ 193,529 Due to the application of fresh start accounting, the carrying value of our property and equipment was reduced to the estimated fair value and a new historical cost basis was established at the Fresh Start Reporting Date, as described further in Note 3, Fresh Start Accounting. Capital Expenditures — Capital additions during 2020 primarily related to routine expenditures that are necessary to maintain our fleets, while capital additions during 2019 also included the completion of construction on our 17 th AC drilling rig which we deployed in March 2019, and various vehicle and ancillary equipment purchases and upgrades. Assets Held for Sale — In April 2020, we closed our coiled tubing services business and placed all of our coiled tubing services assets as held for sale at June 30, 2020, which represents $3.3 million of our total assets held for sale at December 31, 2020. We have various other equipment designated as held for sale which is carried at fair value. When the net carryin g value of an asset designated as held for sale exceeds its estimated fair value, which we estimate based on expected sales prices, which are classified as Level 3 inputs as defined by ASC Topic 820, Fair Value Measurements and Disclosures , we recognize the difference as an impairment charge. Impairments — In accordance with ASC Topic 360, Property, Plant and Equipment , we monitor all indicators of potential impairments. We evaluate for potential impairment of long-lived assets when indicators of impairment are present, which may include, among other things, significant adverse changes in industry trends (including revenue rates, utilization rates, oil and natural gas market prices, and industry rig counts). In performing an impairment evaluation, we estimate the future undiscounted net cash flows from the use and eventual disposition of the assets grouped at the lowest level that independent cash flows can be identified. We perform an impairment evaluation and estimate future undiscounted cash flows for each of our asset groups separately, which are our domestic drilling services, international drilling services, well servicing and wireline services segments, and, prior to being placed as held for sale, our coiled tubing services segment. If the sum of the estimated future undiscounted net cash flows is less than the carrying amount of the asset group, then we determine the fair value of the asset group, and the amount of an impairment charge would be measured as the difference between the carrying amount and the fair value of the assets. Due to the significant decline in industry conditions, commodity prices, and projected utilization of equipment, as well as the COVID-19 pandemic’s impact on our industry, our projected cash flows declined during the first quarter of 2020, and we performed recoverability testing on all our reporting units. As a result of this analysis, we incurred impairment charges of $16.4 million to reduce the carrying values of our coiled tubing assets to their estimated fair values during the three months ended March 31, 2020. For all our other reporting units, excluding coiled tubing, we determined that the sum of the estimated future undiscounted net cash flows were in excess of the carrying amounts and that no impairment existed for these reporting units at March 31, 2020. We continued to monitor potential indicators of impairment through December 31, 2020 and concluded that none of our reporting units are currently at risk of impairment. The assumptions we use in the evaluation for impairment are inherently uncertain and require management judgment. Although we believe the assumptions and estimates used in our impairment analysis are reasonable, different assumptions and estimates could materially impact the analysis and resulting conclusions. The most significant inputs used in our impairment analysis include the projected utilization and pricing of our services, as well as the estimated proceeds upon any future sale or disposal of the assets, all of which are classified as Level 3 inputs as defined by ASC Topic 820, Fair Value Measurements and Disclosures |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases As a drilling and production services provider, we provide the drilling rigs and production services equipment which are necessary to fulfill our performance obligations and which are considered leases under ASU No. 2016-02, Leases, (together with its amendments, herein referred to as “ASC Topic 842”). However, ASU No. 2018-11, Leases: Targeted Improvements , allows lessors to (i) combine the lease and non-lease components of revenues when the revenue recognition pattern is the same and when the lease component, when accounted for separately, would be considered an operating lease, and (ii) account for the combined lease and non-lease components under ASC Topic 606, Revenue from Contracts with Customers , when the non-lease component is the predominant element of the combined component. We elected to apply this expedient and therefore recognize our revenues (both lease and service components) under ASC Topic 606, and present them as one revenue stream in our consolidated statements of operations. As a lessee, we lease our corporate office headquarters in San Antonio, Texas, and we conduct our business operations through 15 oth er regional offices located throu ghout the United States and internationally in Colombia. These operating locations typically include regional offices, storage and maintenance yards and employee housing sufficient to support our operations in the area. We lease most of these properties under non-cancelable term and month-to-month operating leases, many of which contain renewal options that can extend the lease term from one year to five years and some of which contain escalation clauses. We also lease supplemental equipment, typically under cancelable short-term and very short term (less than 30 days) leases. Due to the nature of our business, any option to renew these short-term leases, and the options to extend certain of our long-term real estate leases, are generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease, and the lease payments during these periods are similarly excluded from the calculation of operating lease asset and lease liability balances. In accordance with ASC Topic 842, we recognize an operating lease asset and a corresponding operating lease liability for all our long-term leases, which include real estate and office equipment leases, for which we elected to combine, or not separate, the lease and non-lease components, and therefore, all fixed charges associated with non-lease components are included in the lease payments and the calculation of the operating lease asset and associated lease liability. The operating lease asset and operating lease liability are discounted at the rate which represents our secured incremental borrowing rate, as our leases do not provide an implicit rate, and which we estimate based on the rate in effect under our asset-based lending facility. We recognize rent expense on a straight-line basis, except for certain variable expenses which are recognized when the variability is resolved, typically during the period in which they are paid. Variable lease payments typically include charges for property taxes and insurance, and some leases contain variable payments related to non-lease components, including common area maintenance and usage of office equipment (for example, copiers). The following table summarizes our lease expense recognized, excluding variable lease costs (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Long-term operating lease expense $ 853 $ 1,080 $ 3,699 Short-term operating lease expense 3,370 4,456 15,187 The following table summarizes the amount and timing of our obligations associated with our long-term operating leases (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Within 1 year $ 1,069 $ 2,496 In the second year 985 1,933 In the third year 921 1,447 In the fourth year 874 1,117 In the fifth year 895 912 Thereafter 299 811 Total undiscounted lease obligations $ 5,043 $ 8,716 Impact of discounting (532) (818) Discounted value of operating lease obligations $ 4,511 $ 7,898 Current operating lease liabilities $ 889 $ 2,198 Noncurrent operating lease liabilities 3,622 5,700 $ 4,511 $ 7,898 During 2020, leased assets obtained in exchange for new operating lease liabilities totaled approximately $2.1 million. The following table summarizes the weighted-average remaining lease term and discount rate associated with our long-term operating leases: Successor Predecessor December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years) 5.0 4.5 Weighted-average discount rate 4.5 % 4.5 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Debt At December 31, 2019, our debt consisted of the following (amounts in thousands): Predecessor December 31, 2019 Term Loan $ 175,000 Prepetition Senior Notes 300,000 475,000 Less unamortized discount (1,869) Less unamortized debt issuance costs (5,432) $ 467,699 The commencement of the Chapter 11 Cases constituted an event of default that accelerated our obligations under our Prepetition Senior Notes, the Prepetition ABL Facility, and Term Loan. Under the Bankruptcy Code, holders of our Prepetition Senior Notes and the lenders under our Term Loan and the Prepetition ABL Facility were stayed from taking any action against us as a result of this event of default. On the Effective Date, all applicable agreements governing the obligations under the Term Loan, Prepetition Senior Notes and Prepetition ABL Facility were terminated. The Term Loan and Prepetition ABL Facility were paid in full and all outstanding obligations under the Prepetition Senior Notes were canceled in exchange for 94.25% of the pro forma common equity. For additional information concerning our bankruptcy proceedings under Chapter 11, see Note 2, Emergence from Voluntary Reorganization under Chapter 11 . As of December 31, 2020, the principal amount of our outstanding debt obligations, including those issued in payment of in-kind interest, were as follows (amounts in thousands): Successor December 31, 2020 Convertible Notes 132,763 Senior Secured Notes 77,439 Due to the application of fresh start accounting, our debt obligations were recognized at fair value on our consolidated balance sheet at the Fresh Start Reporting Date, as described further in Note 3, Fresh Start Accounting . Additionally, a portion of the fair value of our Convertible Notes is classified as equity, as described further below. ABL Credit Facility On the Effective Date, pursuant to the terms of the Plan, we entered into a senior secured asset-based revolving credit agreement in an aggregate amount of $75 million (the “ABL Credit Facility”) among us and substantially all of our domestic subsidiaries as borrowers (the “Borrowers”), the lenders party thereto and PNC Bank, National Association as administrative agent, and on August 7, 2020, we entered into a First Amendment to the ABL Credit Facility (together, herein referred to as the “ABL Credit Facility”) which, among other things, reduced the maximum amount of the revolving credit agreement to $40 million. Among other things, proceeds of loans under the ABL Credit Facility may be used to finance ongoing working capital and general corporate needs. The maturity date of loans made under the ABL Credit Facility is the earliest of 90 days prior to maturity of the Senior Secured Notes or the Convertible Notes (both of which are described further below) and May 29, 2025. Borrowings under the ABL Credit Facility will bear interest at a rate of (i) the LIBOR rate (subject to a floor of 0%) plus an applicable margin of 375 basis points per annum or (ii) the base rate plus an applicable margin of 275 basis points per annum. The ABL Credit Facility is guaranteed by the Borrowers and is secured by a first lien on the Borrowers’ accounts receivable and inventory, and the cash proceeds thereof, and a second lien on substantially all of the other assets and properties of the Borrowers. The ABL Credit Facility limits our annual capital expenditures to 125% of the budget set forth in the projections for any fiscal year and provides that if our availability plus pledged cash of up to $3 million falls below $6 million (15% of the maximum revolver amount), we will be required to comply with a fixed charge coverage ratio of 1.0 to 1.0, all of which is defined in the ABL Credit Facility. As of December 31, 2020, we had no borrowings and approximately $7.3 million in outstanding letters of credit under the ABL Credit Facility and subject to the availability requirements in the ABL Credit Facility, based on eligible accounts receivable and inventory balances at December 31, 2020, availability under the ABL Credit Facility was $15.9 million, which our access to would be subject to (i) our requirement to maintain 15% available or comply with a fixed charge coverage ratio, as described above and (ii) the requirement to maintain availability of at least $4.0 million, which may include up to $2.0 million of pledged cash. Convertible Notes We entered into an indenture, dated as of the Effective Date, among the Company and Wilmington Trust, N.A., as trustee (the “Convertible Notes Indenture”), and issued $129.8 million aggregate principal amount of convertible senior unsecured pay-in-kind notes due 2025 thereunder (the “Convertible Notes”). We received net issuance proceeds of $120.2 million, which was net of the $9.6 million Backstop Commitment Premium. The Convertible Notes are general unsecured obligations which will mature on November 15, 2025, unless earlier accelerated, redeemed, converted or repurchased, and bear interest at a fixed rate of 5% per annum, which will be payable semi-annually on May 15 and November 15 in-kind in the form of an increase to the principal amount. The Convertible Notes are convertible at the option of the holders at any time into shares of our common stock and will convert mandatorily into our common stock at maturity; provided, however, that if the value of our common stock otherwise deliverable in connection with a mandatory conversion of a Convertible Note on the maturity date would be less than the principal amount of such Convertible Note plus accrued and unpaid interest, then the Convertible Note will instead convert into an amount of cash equal to the principal amount thereof plus accrued and unpaid interest. The initial conversion rate is 75 shares of common stock per $1,000 principal amount of the Convertible Notes, which in aggregate represents 9,732,825 shares of common stock and an initial conversion price of $13.33 per share. The conversion rate is subject to customary anti-dilution adjustments. If we undergo a “fundamental change” as defined in the Convertible Notes Indenture, subject to certain conditions, holders may require us to repurchase all or any portion of their Convertible Notes for cash at an amount equal to 100% of the principal amount of the Convertible Notes to be repurchased plus any accrued and unpaid interest. In the case of certain fundamental change events that constitute merger events (as defined in the Convertible Notes Indenture), we have a superseding right to cause the mandatory conversion of all or part of the Convertible Notes into a number of shares of common stock, per $1,000 principal amount of Convertible Notes, equal to the then-current conversion rate or the cash value of such number of shares of common stock (but not less than the principal amount). Holders of Convertible Notes are entitled to vote on all matters on which holders of our common stock generally are entitled to vote (or, if any, to take action by written consent of the holders of our common stock), voting together as a single class together with the shares of our common stock and not as a separate class, on an as-converted basis, at any annual or special meeting of holders of our common stock and each holder is entitled to such number of votes as such holder would receive on an as-converted basis on the record date for such vote. The Convertible Notes Indenture contains customary events of default and covenants that limit our ability and the ability of certain of our subsidiaries to incur, assume or guarantee additional indebtedness and create liens and enter into mergers or consolidations. Because the Convertible Notes contain an embedded conversion option whereby they, or a portion of them, may be settled in cash, we have separately accounted for the liability and equity components of the Convertible Notes in accordance with the accounting requirements for convertible debt instruments set forth in ASC Topic 470-20, Debt with Conversion and Other Options . The initial fair value of the Convertible Notes was estimated in accordance with the application of Fresh Start Accounting, as described further in Note 3, Fresh Start Accounting . In order to allocate the initial fair value, we first calculated the value of the liability component by estimating the fair value for the debt instrument as if it did not contain a conversion feature. The amount by which the initial fair value of the Convertible Notes exceeded the estimated fair value of the liability component represented the estimated fair value of the equity component. We also allocated the debt issuance costs incurred to the liability and equity components, for which the portion attributable to the equity component is netted with the respective equity component in additional paid-in capital. The below table summarizes the allocation of issuance proceeds, fair value and debt issuance costs to the liability and equity components of the Convertible Notes at the Fresh Start Reporting Date (in thousands): Successor Liability Component Equity Component Total Issuance proceeds, net of Backstop Commitment Premium $ 43,738 $ 76,449 $ 120,187 Face value 47,225 82,546 129,771 Issuance discount 23,195 40,542 63,737 Fair value $ 70,420 $ 123,088 $ 193,508 Debt issuance costs (1,268) (2,216) (3,484) Net carrying value at Fresh Start Reporting Date $ 69,152 $ 120,872 $ 190,024 We treat the issuance of new Convertible Notes for the payment of in-kind interest as an issuance of a new instrument that retains the original economics associated with the conversion option at inception, and therefore, the Convertible Notes issued in payment of in-kind interest are accounted for with their separate equity and liability components that are proportionally the same as the original issuance. Senior Secured Notes We entered into an indenture, dated as of the Effective Date, among the Company, the subsidiary guarantors party thereto and Wilmington Trust, N.A., as trustee (the “Senior Secured Notes Indenture”), and issued $78.1 million aggregate principal amount of floating rate senior secured notes due 2025 (the “Senior Secured Notes”) thereunder. The Senior Secured Notes are guaranteed on a senior secured basis by substantially all of our existing domestic subsidiaries, which also guarantee our obligations under the ABL Credit Facility, (the “Guarantors”) on a full and unconditional basis and are secured by a second lien on the accounts receivable and inventory and a first lien on substantially all of the other assets and properties (including the cash proceeds thereof) of the Company and the Guarantors. We received net issuance proceeds of $75 million, which was net of the original issue discount of $3.1 million. The Senior Secured Notes will mature on May 15, 2025 and interest will accrue at the rate of LIBOR plus 9.5% per annum, with a LIBOR rate floor of 1.5%, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, commencing on August 15, 2020. With respect to any interest payment due on or prior to May 29, 2021, 50% of the interest will be payable in cash and 50% of the interest will be paid in-kind in the form of an increase to the principal amount; however, a majority in interest of the holders of the Senior Secured Notes may elect to have 100% of the interest due on or prior to May 29, 2021 payable in-kind. For all interest periods commencing on or after May 15, 2024, the interest rate for the Senior Secured Notes will be a rate equal to LIBOR plus 10.50%, with a LIBOR rate floor of 1.5%. We may redeem all or part of the Senior Secured Notes on or after June 1, 2021 at redemption prices (expressed as percentages of the principal amount) equal to (i) 104% for the twelve-month period beginning on June 1, 2021; (ii) 102% for the twelve-month period beginning on June 1, 2022; (iii) 101% for the twelve-month period beginning on June 1, 2023 and (iv) 100% for the twelve-month period beginning June 1, 2024 and at any time thereafter, plus accrued and unpaid interest at the redemption date. Notwithstanding the foregoing, if a change of control (as defined in the Senior Secured Notes Indenture) occurs prior to June 1, 2022, we may elect to purchase all remaining outstanding Senior Secured Notes not tendered to us as described below at a redemption price equal to 103% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the applicable redemption date. If a change of control (as defined in the Senior Secured Notes Indenture) occurs, holders of the Senior Secured Notes will have the right to require us to repurchase all or any part of their Senior Secured Notes at a purchase price equal to 101% of the aggregate principal amount of the Senior Secured Notes repurchased, plus accrued and unpaid interest, if any, to the repurchase date. The Senior Secured Notes Indenture contains a minimum asset coverage ratio of 1.5 to 1.0 as of any June 30 or December 31, beginning December 31, 2020. The Senior Secured Notes Indenture provides for certain customary events of default and contains covenants that limit, among other things, our ability and the ability of certain of our subsidiaries, to incur, assume or guarantee additional indebtedness; pay dividends or distributions on capital stock or redeem or repurchase capital stock; make investments; repay junior debt; sell stock of our subsidiaries; transfer or sell assets; enter into sale and lease back transactions; create liens; enter into transactions with affiliates; and enter into mergers or consolidations. Having completed qualifying asset sales in the aggregate of $7.6 million, we commenced and completed offers to purchase $2.6 million in aggregate principal amount of the Senior Secured Notes in October and December 2020 in accordance with the Senior Secured Notes Indenture, at a purchase price equal to 100% of the principal amount, plus accrued and unpaid interest through, but not including, the purchase date. We recognized loss on extinguishment of debt associated with these repayments of $0.2 million. In December, we completed asset sales which required us to commence an offer to purchase another $0.2 million of Senior Secured Notes which is presented as a current liability in our consolidated balance sheet and for which the purchase will be funded through cash on hand, classified as “restricted cash” as of December 31, 2020. In January 2021, we completed additional qualifying asset sales totaling $0.5 million, and we completed an offer to purchase the aggregate $0.6 million principal amount of the Senior Secured Notes in February 2021, at a purchase price equal to 100% of the principal amount, plus accrued and unpaid interest. Successor Debt Issuance Costs and Discount Costs incurred in connection with the issuance of our Convertible Notes (which were allocated to the liability component, as described above) and Senior Secured Notes, as well as the issuance discounts, were capitalized and are being amortized using the effective interest method over the term of the related debt instrument. Costs incurred in connection with our ABL Credit Facility were capitalized and are being amortized using the straight-line method over the expected term of the agreement. Our unamortized debt issuance costs and discounts are presented below (amounts in thousands): Successor December 31, 2020 Unamortized discount on Convertible Notes (based on imputed interest rate of 20.9%) $ 56,438 Unamortized discount on Senior Secured Notes (based on imputed interest rate of 13.2%) 2,733 Unamortized debt issuance costs 3,714 Predecessor Senior Secured Term Loan Our senior secured term loan (the “Term Loan”) entered into in 2017 provided for one drawing in the amount of $175 million, net of a 2% original issue discount. Proceeds from the issuance of the Term Loan were used to repay the entire outstanding balance under our previous credit facility, plus fees and accrued and unpaid interest, as well as the fees and expenses associated with entering into the Term Loan and Prepetition ABL Facility. The remainder of the proceeds were used for other general corporate purposes. Interest on the principal amount accrued at the LIBOR rate or the base rate as defined in the agreement, at our option, plus an applicable margin of 7.75% and 6.75%, respectively. The Term Loan was set to mature on November 8, 2022, or earlier, subject to certain circumstances as described in the agreement. Our obligations under the Term Loan were guaranteed by our wholly-owned domestic subsidiaries, and secured by substantially all of our domestic assets, in each case, subject to certain exceptions and permitted liens, and were not subject to compromise as defined by ASC Topic 852, Reorganizations . Prepetition Asset-based Lending Facility At the same time as we entered into the Term Loan in 2017, we also entered into a senior secured revolving asset-based credit facility (the “Prepetition ABL Facility”) which provided for borrowings in the aggregate principal amount of up to $75 million, subject to a borrowing base and including a $30 million sub-limit for letters of credit. As a part of the Chapter 11 process, the Prepetition ABL Facility was terminated at the Petition Date and all remaining unamortized debt issuance costs were written off in March 2020. Predecessor Senior Notes In 2014, we issued $300 million of unregistered senior notes at face value, with a coupon interest rate of 6.125% that were due in 2022 (the “Senior Notes”). The Senior Notes were set to mature on March 15, 2022 with interest due semi-annually in arrears on March 15 and September 15 of each year. In accordance with a registration rights agreement with the holders of our Senior Notes, we filed an exchange offer registration statement on Form S-4 with the Securities and Exchange Commission that became effective on October 2, 2014. The exchange offer registration statement enabled the holders of our Senior Notes to exchange their senior notes for publicly registered notes with substantially identical terms. References to the “Senior Notes” herein include the senior notes issued in the exchange offer. The Senior Notes were fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by certain of our domestic subsidiaries. As a result of the Chapter 11 Cases, the Senior Notes ceased accruing interest as of the Petition Date, in accordance with the Plan, and were subsequently accounted for as liabilities subject to compromise in accordance with ASC Topic 852, Reorganizations |
Taxes (Notes)
Taxes (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The jurisdictional components of income (loss) before income taxes consist of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Domestic $ (36,216) $ (98,773) $ (85,133) Foreign (6,824) (7,238) 11,900 Loss before income taxes $ (43,040) $ (106,011) $ (73,233) The components of our income tax expense (benefit) consist of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Current: Federal $ (55) $ (67) $ (206) State 88 86 663 Foreign 309 189 654 342 208 1,111 Deferred: State (123) (3,347) 729 Foreign (3,035) 1,353 (11,169) (3,158) (1,994) (10,440) Income tax benefit $ (2,816) $ (1,786) $ (9,329) The difference between the income tax benefit and the amount computed by applying the federal statutory income tax rate to loss before income taxes consists of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Expected tax benefit $ (9,038) $ (22,262) $ (15,379) Valuation allowance: Valuation allowance 2,579 10,623 12,638 Reversal of valuation allowance on foreign operations — — (14,756) State income taxes (28) 73 614 Foreign currency translation loss (gain) (891) 1,579 742 Net tax benefits and nondeductible expenses in foreign jurisdictions (227) (537) 940 GILTI tax — — 1,579 Stock-based compensation — 1,449 595 Compensation expense nondeductible for tax purposes 784 — 1,684 Reorganization and restructuring costs 2,418 7,528 1,388 Convertible Notes interest and issuance costs 1,838 — — Other nondeductible expenses for tax purposes (4) 190 575 Other, net (247) (429) 51 Income tax benefit $ (2,816) $ (1,786) $ (9,329) Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. The components of our deferred income tax assets and liabilities were as follows (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Deferred tax assets: Net operating loss carryforward $ 82,901 $ 110,834 Intangibles 7,653 12,145 Interest expense deduction limitation carryforward 3,200 6,649 Employee stock-based compensation 63 3,124 Employee benefits and insurance claims accruals 866 2,422 Operating lease liabilities 1,027 1,832 Accounts receivable reserve 278 187 Inventory 918 202 Accrued expenses 451 233 Deferred revenue — 124 97,357 137,752 Valuation allowance (74,676) (59,842) Deferred tax liabilities: Property and equipment (9,816) (68,694) Operating lease assets (998) (1,686) Unbilled revenue (68) (407) Net deferred tax assets $ 11,799 $ 7,123 As described in Note 2 , Emergence from Voluntary Reorganization under Chapter 11 , in accordance with the Plan, our Prepetition Senior Notes were exchanged for shares of our new common stock. Absent an exception, a debtor recognizes cancellation of debt income (CODI) upon discharge of its outstanding indebtedness for an amount of consideration that is less than its adjusted issue price. The Internal Revenue Code (IRC) provides that a debtor in a Chapter 11 bankruptcy case may exclude CODI from taxable income but must reduce certain of its tax attributes by the amount of CODI realized as a result of the consummation of a plan of reorganization. The amount of CODI realized by a taxpayer is determined based on the fair market value of the consideration received by the creditors in settlement of outstanding indebtedness. As a result of the market value of equity upon emergence from Chapter 11 bankruptcy proceedings, the amount of CODI for federal income tax purposes is approximately $229 million, which reduced the value of our net operating losses by an equal amount. The reduction of net operating losses was fully offset by a corresponding decrease in the valuation allowance. Upon our emergence from Chapter 11, we underwent an ownership change, as defined in the IRC, which will result in future annual limitations on the usage of our remaining domestic net operating losses. The majority of our remaining domestic net operating losses will begin to expire in 2030, while losses generated after 2017 are carried forward indefinitely but are limited in usage to 80% of taxable income beginning in 2021. The majority of our foreign net operating losses are carried forward indefinitely, but losses generated after 2016 are carried forward for 12 years and will begin to expire in 2029. We provide a valuation allowance when it is more likely than not that some portion of our deferred tax assets will not be realized. We evaluated the impact of the reorganization, including the change in control, resulting from our bankruptcy emergence and determined it is more likely than not that we will not fully realize future income tax benefits related to our domestic net deferred tax assets based on the annual limitations that impact us, historical results, and expected market conditions known on the date of measurement. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act contains numerous corporate income tax provisions, some of which impact our calculation of income taxes, including providing for the carryback of certain net operating losses, modifications to the net interest deduction limitations, refundable payroll tax credits, and deferment of employer social security payments. However, the provisions did not have a material impact on our Predecessor or Successor financial statements. We have no unrecognized tax benefits relating to ASC Topic 740 and no unrecognized tax benefit activity during the year ended December 31, 2020. We record interest and penalty expense related to income taxes as interest and other expense, respectively. At December 31, 2020, no interest or penalties have been or are required to be accrued. Our open tax years are 2017 and forward for our federal and most state income tax returns in the United States and 2015 and forward for our income tax returns in Colombia. Net operating losses generated in years prior to our open years and carried forward are available for adjustment and subject to the statute of limitation provisions of such year when the net operating losses are utilized. International Tax Reform On December 28, 2018, the Colombian government enacted a new tax reform bill that decreases the general corporate tax rate from 33% to 30% by 2022, phases out the presumptive tax system by 2021, increases withholding tax rates on payments abroad for various services, and taxes indirect transfers of Colombian assets, among other things. Deferred tax assets and liabilities were adjusted to the new tax rates as of December 31, 2018; however, the adjustments to the valuation allowance fully offset the impact to tax expense in the year of enactment. On October 19, 2019, the Colombian Constitutional Court declared Colombia’s 2018 Tax Reform unconstitutional due to procedural flaws in the approval process. On December 27, 2019, Colombia re-enacted the tax reform effective January 1, 2020, mirroring most of the provisions contained in the 2018 Tax Reform that was ruled unconstitutional. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The FASB’s Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures , defines fair value and provides a hierarchical framework associated with the level of subjectivity used in measuring assets and liabilities at fair value. Currently, our financial instruments consist primarily of cash and cash equivalents, trade and other receivables, trade payables and long-term debt. The carrying value of cash and cash equivalents, trade and other receivables, and trade payables are considered to be representative of their respective fair values due to the short-term nature of these instruments. As a result of the application of fresh start accounting, and subsequent stability in the market for energy bonds, we estimate that the carrying value of our long-term debt approximates fair value. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (loss) Per Common Share | Earnings (Loss) Per Common Share Basic earnings (loss) per share (EPS) is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable from stock-based compensation awards and the Convertible Notes. Potentially dilutive common shares from outstanding stock-based compensation awards are determined using the average share price for each period under the treasury stock method. Potentially dilutive shares from the Convertible Notes are determined using the if-converted method, whereby the Convertible Notes are assumed to be converted and included in the denominator of the EPS calculation and the interest expense, net of tax, recorded in connection with the Convertible Notes is added back to net income (loss). The following presents a reconciliation of the numerators and denominators of the basic and diluted EPS computations (amounts in thousands, except per share data): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Numerator: Net loss (numerator for basic EPS) $ (40,224) $ (104,225) $ (63,904) Interest expense on Convertible Notes, net of tax — — — Numerator for diluted EPS, if-converted method (40,224) (104,225) (63,904) Denominator: Weighted-average shares (denominator for basic EPS) 1,117 78,968 78,423 Potentially dilutive shares issuable from Convertible Notes, if-converted method — — — Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method — — — Denominator for diluted EPS 1,117 78,968 78,423 Loss per common share - Basic $ (36.01) $ (1.32) $ (0.81) Loss per common share - Diluted $ (36.01) $ (1.32) $ (0.81) Potentially dilutive securities excluded as anti-dilutive 9,782 4,517 4,842 |
Employee Benefit Plans and Insu
Employee Benefit Plans and Insurance | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans and Insurance [Abstract] | |
Compensation, Employee Benefit Plans and Insurance [Text Block] | Employee Benefit Plans and Insurance We maintain a 401(k) retirement plan for our eligible employees. Under this plan, we may make a matching contribution, on a discretionary basis, equal to a percentage of each eligible employee’s annual contribution, which we determine annually. In response to the downturn in our industry, matching contributions were suspended from July 2020 to January 2021. Our matching contributions were as follows (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Matching contributions $ 114 $ 1,473 $ 5,277 We use a combination of self-insurance and third-party insurance for various types of coverage. We are self-insured for up to $500,000 per incident for all workers’ compensation claims submitted by employees for on-the-job injuries. We accrue our workers’ compensation claim cost estimates using an actuarial calculation that is based on industry and our company’s historical claim development data, and we accrue the cost of administrative services associated with claims processing. We maintain a self-insurance program for major medical and hospitalization coverage for employees and their dependents, which is partially funded by employee payroll deductions. We have a maximum health insurance liability of $225,000 per covered individual per year, while amounts in excess of this maximum are covered under a separate policy provided by an insurance company. We have provided for reported claims costs as well as incurred but not reported medical costs in the accompanying consolidated balance sheets. We have a deductible of $250,000 per occurrence under our auto liability insurance, and we have a $500,000 self-insured retention and an additional aggregate deductible of $500,000 under our general liability insurance as well as an annual aggregate deductible of $1,000,000 on the first layer of excess coverage. Accrued insurance premiums and deductibles related to our estimate of the self-insured portion of costs associated with our health, workers’ compensation, general liability and auto liability insurance are as follows (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Workers’ compensation $ 1,976 $ 3,269 Health insurance 646 1,282 General liability and auto liability 1,306 1,389 $ 3,928 $ 5,940 Based upon our past experience, management believes that we have adequately provided for potential losses. However, future multiple occurrences of serious injuries to employees could have a material adverse effect on our financial position and results of operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of December 31, 2020, we have four operating segments, comprised of two drilling services business segments (domestic and international drilling) and two production services business segments (well servicing and wireline services), which reflects the basis used by management in making decisions regarding our business for resource allocation and performance assessment, as required by ASC Topic 280, Segment Reporting . In April 2020, we closed our coiled tubing services business and placed all of our coiled tubing services assets as held for sale at June 30, 2020. Historical financial information for our coiled tubing services business, which had previously been presented as a separate operating segment, continues to be presented in the following tables as a component of continuing operations. Our domestic and international drilling services segments provide contract land drilling services to a diverse group of exploration and production companies through our three drilling divisions in the US and internationally in Colombia. We provide a comprehensive service offering which includes the drilling rig, crews, supplies, and most of the ancillary equipment needed to operate our drilling rigs. Our well servicing and wireline services segments provide a range of production services to producers primarily in Texas, North Dakota, the Rocky Mountain region, and Louisiana. Our former coiled tubing services segment also provided various production services primarily in Texas, Wyoming, and surrounding areas. The following tables set forth certain financial information for each of our segments and corporate (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Revenues: Domestic drilling $ 44,205 $ 53,341 $ 151,769 International drilling 12,220 15,928 88,932 Drilling services 56,425 69,269 240,701 Well servicing 30,739 31,947 115,715 Wireline services 16,710 35,543 172,931 Coiled tubing services — 5,611 46,445 Production services 47,449 73,101 335,091 Consolidated revenues $ 103,874 $ 142,370 $ 575,792 Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Operating costs: Domestic drilling $ 26,846 $ 33,101 $ 92,183 International drilling 9,529 13,676 65,007 Drilling services 36,375 46,777 157,190 Well servicing 24,325 26,877 83,461 Wireline services 17,090 31,836 151,145 Coiled tubing services 408 8,557 39,557 Production services 41,823 67,270 274,163 Consolidated operating costs $ 78,198 $ 114,047 $ 431,353 Gross margin: Domestic drilling $ 17,359 $ 20,240 $ 59,586 International drilling 2,691 2,252 23,925 Drilling services 20,050 22,492 83,511 Well servicing 6,414 5,070 32,254 Wireline services (380) 3,707 21,786 Coiled tubing services (408) (2,946) 6,888 Production services 5,626 5,831 60,928 Consolidated gross margin $ 25,676 $ 28,323 $ 144,439 Identifiable Assets: Domestic drilling (1) $ 145,916 $ 158,283 $ 347,036 International drilling (1) (2) 44,229 49,611 60,026 Drilling services 190,145 207,894 407,062 Well servicing 44,138 49,388 116,473 Wireline services 21,182 23,948 71,887 Coiled tubing services 3,491 6,336 30,834 Production services 68,811 79,672 219,194 Corporate 55,474 65,057 47,698 Consolidated identifiable assets $ 314,430 $ 352,623 $ 673,954 Depreciation and amortization: Domestic drilling $ 14,363 $ 18,058 $ 43,162 International drilling 7,575 2,144 5,665 Drilling services 21,938 20,202 48,827 Well servicing 8,023 7,820 19,894 Wireline services 3,320 5,088 14,772 Coiled tubing services — 2,164 6,447 Production services 11,343 15,072 41,113 Corporate 332 373 944 Consolidated depreciation $ 33,613 $ 35,647 $ 90,884 Capital Expenditures: Domestic drilling $ 4,327 $ 3,862 $ 17,889 International drilling 474 1,273 4,812 Drilling services 4,801 5,135 22,701 Well servicing 649 1,918 10,185 Wireline services 320 1,684 5,907 Coiled tubing services — 166 4,736 Production services 969 3,768 20,828 Corporate — 21 1,300 Consolidated capital expenditures $ 5,770 $ 8,924 $ 44,829 (1) Identifiable assets for our drilling segments include the impact of a $28.4 million and $36.1 million intercompany balance, as of December 31, 2020 and 2019, respectively, between our domestic drilling segment (intercompany receivable) and our international drilling segment (intercompany payable). (2) Identifiable assets for our international drilling segment include five drilling rigs that are owned by our Colombia subsidiary and three drilling rigs that are owned by one of our domestic subsidiaries and leased to our Colombia subsidiary. The following is a reconciliation of consolidated gross margin of our segments reported above to loss from operations as reported on the consolidated statements of operations (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Consolidated gross margin $ 25,676 $ 28,323 $ 144,439 Depreciation and amortization (33,613) (35,647) (90,884) General and administrative (24,055) (22,047) (91,185) Prepetition restructuring charges — (16,822) — Impairment (742) (17,853) (2,667) Bad debt (expense) recovery, net 227 (1,209) 79 Gain on dispositions of property and equipment, net 6,132 989 4,513 Loss from operations $ (26,375) $ (64,266) $ (35,705) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies In connection with our operations in Colombia, our foreign subsidiaries routinely obtain bonds for bidding on drilling contracts, performing under drilling contracts, and remitting customs and importation duties. Based on historical experience and information currently available, we believe the likelihood of demand for payment under these bonds and guarantees is remote. In February 2021, we received a $2.5 million assessment from the Colombian tax and customs authority related to an administrative delay in documentation provided for one of our drilling rigs. After evaluating the assessment with our customs advisors, we do not believe that it is probable that we will be required to pay the customs duty assessment. We are routinely subject to various states’ sales and use tax audits. As of December 31, 2020 and 2019, our accrued liability was $0.9 million and $2.0 million, respectively, based on our estimate of the indirect tax obligations. During 2020, we finalized a number of audits with the state of Texas and directly paid the amount of additional tax due, resulting in a reduction of our accrued liability. Due to the inherent uncertainty of the audit process, we believe that it is reasonably possible that we may incur additional tax assessments with respect to one or more potential audits in excess of the amount accrued. We believe that such an outcome would not have a material adverse effect on our results of operations or financial position, but because of the aforementioned uncertainty, an estimate of the possible loss or range of loss from adverse audit results cannot reasonably be made. Due to the nature of our business, we are, from time to time, involved in litigation or subject to disputes or claims related to our business activities, including workers’ compensation claims and employment-related disputes. Legal costs relating to these matters are expensed as incurred. In the opinion of our management, none of the pending litigation, disputes or claims against us will have a material adverse effect on our financial condition, results of operations or cash flow from operations. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Pioneer Energy Services Corp. and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. As described below, as a result of the application of fresh start accounting and the effects of the implementation of our Plan of Reorganization (as defined below), the consolidated financial statements after the Effective Date (as defined below) are not comparable with the consolidated financial statements on or before that date. See Note 3, Fresh Start Accounting , for additional information. Periods Presented — We qualify for certain reduced disclosure requirements as permitted by the SEC for smaller reporting companies including, among other things, the presentation of the two most recent fiscal years’ statements of operations, stockholders’ equity, and cash flows. |
Fresh Start Accounting | Chapter 11 Cases — On March 1, 2020 (the “Petition Date”), Pioneer and certain of our domestic subsidiaries (collectively, the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). On May 11, 2020, the Bankruptcy Court confirmed the plan of reorganization (the “Plan”) that was filed with the Bankruptcy Court on March 2, 2020, and on May 29, 2020 (the “Effective Date”), the conditions to effectiveness of the plan were satisfied and we emerged from Chapter 11. See Note 2, Emergence from Voluntary Reorganization under Chapter 11 , for more information. The accompanying consolidated financial statements have been prepared as if we are a going concern and in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 852, Reorganizations (ASC Topic 852). Upon our emergence from Chapter 11, we adopted fresh start accounting in accordance with ASC Topic 852 and became a new entity for financial reporting purposes. As a result, the consolidated financial statements after the Effective Date are not comparable with the consolidated financial statements on or before that date as indicated by the “black line” division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to our financial position and results of operations on or before the Effective Date. We evaluated the events between May 29, 2020 and May 31, 2020 and concluded that the use of an accounting convenience date of May 31, 2020 (the “Fresh Start Reporting Date”) would not have a material impact on our consolidated financial statements. As such, the application of fresh start accounting was reflected in our consolidated balance sheet as of May 31, 2020 and related fresh start accounting adjustments were included in our consolidated statement of operations for the five months ended May 31, 2020. See Note 3, Fresh Start Accounting , for additional information. |
Use of Estimates | Use of Estimates — In preparing the accompanying consolidated financial statements, we make various estimates and assumptions that affect the amounts of assets and liabilities we report as of the dates of the balance sheets and income and expenses we report for the periods shown in the income statements and statements of cash flows. Our actual results could differ significantly from those estimates. Material estimates affecting our financial results, including those that are particularly susceptible to significant changes in the near term, relate to our application of fresh start accounting, our estimates of certain variable revenues and amortization periods of certain deferred revenues and costs associated with drilling daywork contracts, our estimates of projected cash flows and fair values for impairment evaluations, our estimate of the valuation allowance for deferred tax assets, and our estimate of the liability relating to the self-insurance portion of our health and workers’ compensation insurance. For information about our use of estimates relating to fresh start accounting, see Note 3, Fresh Start Accounting . |
Subsequent Events | Subsequent Events — In preparing the accompanying consolidated financial statements, we have reviewed events that have occurred after December 31, 2020, through the filing of this Form 10-K, for inclusion as necessary. |
Recently Issued Accounting Standards and Securities and Exchange Commission Rules | Recently Issued Accounting Standards and Securities and Exchange Commission Rules Changes to accounting principles generally accepted in the United States of America (“U.S. GAAP”) are established by the FASB in the form of Accounting Standards Updates (ASUs) to the FASB ASC. We consider the applicability and impact of all ASUs. Additionally, because we have securities registered under the Securities and Exchange Act of 1934, we consider the applicability and impact of releases issued by the Securities & Exchange Commission (the “SEC”). Other than the ASU and SEC release listed below, we have determined that there are currently no new or recently adopted ASUs or SEC releases which we believe will have a material impact on our consolidated financial position and results of operations. • Convertible Instruments and Contracts in an Entity’s Own Equity . In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and preferred stock. Additionally, this ASU improves the consistency of EPS calculations by requiring entities to apply one method, the if-converted method, to all convertible instruments in diluted earnings-per-share calculations. This ASU will be effective for us on January 1, 2022, however, early adoption is permitted on January 1, 2021. We are currently evaluating the effect that the ASU will have on our consolidated financial statements. • In March 2020, the SEC issued SEC Release No. 33-10762, effective January 4, 2021, which amends Rule 3-10 of Regulation S-X governing financial disclosure requirements for guarantors and issuers of guaranteed registered securities. Among other changes, the amendment simplifies the disclosure requirements, eliminating the requirement to disclose condensed consolidating financial statements within the financial statements for qualifying entities and allowing abbreviated disclosures of the guarantor/issuer relationship within Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations . We adopted the amendment effective December 31, 2020 and have included supplemental guarantor information in the Liquidity and Capital Resources section of Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations . |
Cash Equivalents and Restricted Cash | Cash and Cash Equivalents — We had no cash equivalents at December 31, 2020. Cash equivalents at December 31, 2019 were $8.9 million, consisting of investments in highly-liquid money-market mutual funds. Restricted Cash — Our restricted cash b alance primarily reflects the portion of net proceeds from the issuance of our senior secured term loan held in a restricted account until the completion of certain administrative tasks related to providing access rights to certain of our real property, a condition which is still in effect under the terms of our post-emergence debt instruments, as well as $0.2 million of proceeds from asset sales at December 31, 2020 which were used to fund the redemption of Senior Secured Notes tendered in January 2021, as described further in Note 7, Debt . |
Revenue | Revenue — Production services jobs are varied in nature but typically represent a single performance obligation, either for a particular job, a series of distinct jobs, or a period of time during which we stand ready to provide services as our client needs them. Revenue is recognized for these services over time, as the services are performed. Our drilling services business segments earn revenues by drilling oil and gas wells for our clients under daywork contracts. Daywork contracts are comprehensive agreements under which we provide a comprehensive service offering, including the drilling rig, crew, supplies, and most of the ancillary equipment necessary to operate the rig. We account for our services provided under daywork contracts as a single performance obligation comprised of a series of distinct time increments which are satisfied over time. Accordingly, dayrate revenues are recognized in the period during which the services are performed. All of our revenues are recognized net of sales taxes, when applicable. For more information, see Note 4, Revenue from Contracts with Customers . |
Trade Accounts Receivable | Trade and Unbilled Accounts Receivable — We record trade accounts receivable at the amount we invoice to our clients. These accounts do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our accounts receivable as of the balance sheet date. We determine the allowance based on the credit worthiness of our clients and general economic conditions. Consequently, an adverse change in those factors could affect our estimate of our allowance for doubtful accounts. |
Unbilled Accounts Receivable | Substantially all of our unbilled receivables represent revenues we have recognized in excess of amounts billed on drilling contracts. For more information, see Note 4, Revenue from Contracts with Customers . |
Inventories | Inventories — Inventories primarily consist of drilling rig replacement parts and supplies held for use by our drilling operations in Colombia and job supplies held for use by our wireline operations (and previously our coiled tubing operations). Inventories are valued at the lower of cost (first in, first out or actual) or net realizable value. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets include items such as insurance, rent deposits, software subscriptions, and other fees. We routinely expense these items in the normal course of business over the periods that we benefit from these expenses. Prepaid expenses and other current assets also include deferred mobilization costs for short-term drilling contracts and demobilization revenues recognized on drilling contracts expiring in the near term. |
Property and Equipment | Property and Equipment — Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided for our assets over the estimated useful lives of the assets using the straight-line method. We record the same depreciation expense whether our equipment is idle or working. We charge our expenses for maintenance and repairs to operating costs. We capitalize expenditures for renewals and betterments to the appropriate property and equipment accounts. For more information, see Note 5, Property and Equipment . |
Intangible Assets | Intangible Assets — Our intangible assets consist of trademark and tradename assets established in connection with the adoption of fresh start accounting which are being amortized using the straight-line method over the ten-year estimated useful life. Amortization expense is estimated to be approximately $0.9 million for each of the five succeeding years ending December 31, 2021 through 2025, although actual amortization amounts could differ as a result of future acquisitions, impairments, changes in amortization periods, or other factors. For more information, see Note 3, |
Insurance Recoveries, Accrued Insurance Claims and Settlements, and Accrued Premiums and Deductibles | Insurance Recoveries, Accrued Insurance Claims and Settlements, and Accrued Premiums and Deductibles — We use a combination of self-insurance and third-party insurance for various types of coverage. Our accrued premiums and deductibles include the premiums and estimated liability for the self-insured portion of costs associated with our health, workers’ compensation, general liability and auto liability insurance. Our insurance recoveries receivables and our accrued liability for insurance claims and settlements represent our estimate of claims in excess of our deductible, which are covered and managed by our third-party insurance providers, some of which may ultimately be settled by the insurance provider in the long-term. These are presented in our consolidated balance sheets as current due to the uncertainty in the timing of reporting and payment of claims. For more information, see Note 12, Employee Benefit Plans and Insurance . |
Debt | Debt — Due to the application of fresh start accounting, our debt obligations were recognized at fair value on our consolidated balance sheet at the Fresh Start Reporting Date as described further in Note 3, Fresh Start Accounting . Additionally, because the Convertible Notes contain an embedded conversion option whereby they, or a portion of them, may be settled in cash, we have separately accounted for the liability and equity components of the Convertible Notes in accordance with the accounting requirements for convertible debt instruments set forth in ASC Topic 470-20, Debt with Conversion and Other Options . We treat the issuance of new Convertible Notes for the payment of in-kind interest as an issuance of a new instrument that retains the original economics associated with the conversion option at inception, and therefore, the Convertible Notes issued in payment of in-kind interest are accounted for with their separate equity and liability components that are proportionally the same as the original issuance. For more information, see Note 7, Debt. |
Lessor, Leases | Leases — As a drilling and production services provider, we provide the drilling rigs and production services equipment which are necessary to fulfill our performance obligations and which are considered leases under ASU No. 2016-02, Leases, ( together with its amendments, herein referred to as “ASC Topic 842”). However, we elected to apply the practical expedient in ASU No. 2018-11, Leases: Targeted Improvements, |
Lessee, Leases | As a lessee, we recognize an operating lease asset and a corresponding operating lease liability for all our long-term leases for which we elected to combine, or not separate, the lease and non-lease components, and therefore, all fixed charges associated with non-lease components are included in the lease payments and the calculation of the operating lease asset and associated lease liability. Due to the nature of our business, any option to renew our short-term leases, and the options to extend certain of our long-term real estate leases, are generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease, and the lease payments during these periods are similarly excluded from the calculation of operating lease asset and lease liability balances. For more information, see Note 6, Leases . |
Treasury Stock | Treasury Stock — Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired common stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of treasury stock shares are credited or charged to additional paid in capital using the average cost method. |
Stock-based Compensation | Stock-based Compensation — We recognize compensation cost for our stock-based compensation awards based on the fair value estimated in accordance with ASC Topic 718, Compensation—Stock Compensation, and we recognize forfeitures when they occur. For our awards with graded vesting, we recognize compensation expense on a straight-line basis over the service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. For more information, see Note 11, Stock-Based Compensation Plans . |
Income Taxes | Income Taxes — We follow the asset and liability method of accounting for income taxes, under which we recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure our deferred tax assets and liabilities by using the enacted tax rates we expect to apply to taxable income in the years in which we expect to recover or settle those temporary differences. The effect of a change in tax rates on deferred tax assets and liabilities is reflected in income in the period of enactment. For more information, see Note 8, Income Taxes . |
Foreign Currencies | Foreign Currencies — Our functional currency for our foreign subsidiary in Colombia is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the period. Income statement accounts are translated at average rates for the period. Gains and losses from remeasurement of foreign currency financial statements into U.S. dollars and from foreign currency transactions are included in other income or expense. |
Comprehensive Income | Comprehensive Income — We have not reported comprehensive income due to the absence of items of other comprehensive income in the periods presented. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | Revenue from Contracts with Customers Our production services business segments earn revenues for well servicing and wireline services pursuant to master services agreements based on purchase orders or other contractual arrangements with the client. Production services jobs are generally short-term (ranging in duration from several hours to less than 30 days) and are charged at current market rates for the labor, equipment and materials necessary to complete the job. Production services jobs are varied in nature but typically represent a single performance obligation, either for a particular job, a series of distinct jobs, or a period of time during which we stand ready to provide services as our client needs them. Revenue is recognized for these services over time, as the services are performed. Our drilling services business segments earn revenues by drilling oil and gas wells for our clients under daywork contracts. Daywork contracts are comprehensive agreements under which we provide a comprehensive service offering, including the drilling rig, crew, supplies, and most of the ancillary equipment necessary to operate the rig. Contract modifications that extend the term of a dayrate contract are generally accounted for prospectively as a separate dayrate contract. We account for our services provided under daywork contracts as a single performance obligation comprised of a series of distinct time increments which are satisfied over time. Accordingly, dayrate revenues are recognized in the period during which the services are performed. With most drilling contracts, we also receive payments contractually designated for the mobilization and demobilization of drilling rigs and other equipment to and from the client’s drill site. Revenues associated with the mobilization and demobilization of our drilling rigs to and from the client’s drill site do not relate to a distinct good or service and are recognized ratably over the related contract term. The amount of demobilization revenue that we ultimately collect is dependent upon the specific contractual terms, most of which include provisions for reduced (or no) payment for demobilization when, among other things, the contract is renewed or extended with the same client, or when the rig is subsequently contracted with another client prior to the termination of the current contract. Since revenues associated with demobilization activity are typically variable, at each period end, they are estimated at the most likely amount, and constrained when the likelihood of a significant reversal is probable. Any change in the expected amount of demobilization revenue is accounted for with the net cumulative impact of the change in estimate recognized in the period during which the revenue estimate is revised. The upfront costs that we incur to mobilize the drilling rig to our client’s initial drilling site are capitalized and recognized ratably over the term of the related contract, including any contracted renewal or extension periods, which is our estimate of the period during which we expect to benefit from the cost of mobilizing the rig. Costs associated with the final demobilization at the end of the contract term are expensed when incurred, when the demobilization activity is performed. From time to time, we may receive fees from our clients for capital improvements to our rigs to meet our client’s requirements. Such revenues are not considered to be distinct within the terms of the contract and are therefore allocated to the overall performance obligation, satisfied over the term of the contract. We record deferred revenue for such payments and recognize them ratably as revenue over the initial term of the related drilling contract. We also act as a principal for certain reimbursable services and auxiliary equipment provided by us to our clients, for which we incur costs and earn revenues, many of which are variable, or dependent upon the activity that is actually performed each day under the related contract. Accordingly, reimbursements that we receive for out-of-pocket expenses are recorded as revenues and the out-of-pocket expenses for which they relate are recorded as operating costs during the period to which they relate within the series of distinct time increments. |
Property and Equipment (Impairm
Property and Equipment (Impairments) (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairments — In accordance with ASC Topic 360, Property, Plant and Equipment , we monitor all indicators of potential impairments. We evaluate for potential impairment of long-lived assets when indicators of impairment are present, which may include, among other things, significant adverse changes in industry trends (including revenue rates, utilization rates, oil and natural gas market prices, and industry rig counts). In performing an impairment evaluation, we estimate the future undiscounted net cash flows from the use and eventual disposition of the assets grouped at the lowest level that independent cash flows can be identified. We perform an impairment evaluation and estimate future undiscounted cash flows for each of our asset groups separately, which are our domestic drilling services, international drilling services, well servicing and wireline services segments, and, prior to being placed as held for sale, our coiled tubing services segment. If the sum of the estimated future undiscounted net cash flows is less than the carrying amount of the asset group, then we determine the fair value of the asset group, and the amount of an impairment charge would be measured as the difference between the carrying amount and the fair value of the assets. Due to the significant decline in industry conditions, commodity prices, and projected utilization of equipment, as well as the COVID-19 pandemic’s impact on our industry, our projected cash flows declined during the first quarter of 2020, and we performed recoverability testing on all our reporting units. As a result of this analysis, we incurred impairment charges of $16.4 million to reduce the carrying values of our coiled tubing assets to their estimated fair values during the three months ended March 31, 2020. For all our other reporting units, excluding coiled tubing, we determined that the sum of the estimated future undiscounted net cash flows were in excess of the carrying amounts and that no impairment existed for these reporting units at March 31, 2020. We continued to monitor potential indicators of impairment through December 31, 2020 and concluded that none of our reporting units are currently at risk of impairment. The assumptions we use in the evaluation for impairment are inherently uncertain and require management judgment. Although we believe the assumptions and estimates used in our impairment analysis are reasonable, different assumptions and estimates could materially impact the analysis and resulting conclusions. The most significant inputs used in our impairment analysis include the projected utilization and pricing of our services, as well as the estimated proceeds upon any future sale or disposal of the assets, all of which are classified as Level 3 inputs as defined by ASC Topic 820, Fair Value Measurements and Disclosures |
Leases (Leases) (Policies)
Leases (Leases) (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessor, Operating Leases [Text Block] | As a drilling and production services provider, we provide the drilling rigs and production services equipment which are necessary to fulfill our performance obligations and which are considered leases under ASU No. 2016-02, Leases, (together with its amendments, herein referred to as “ASC Topic 842”). However, ASU No. 2018-11, Leases: Targeted Improvements , allows lessors to (i) combine the lease and non-lease components of revenues when the revenue recognition pattern is the same and when the lease component, when accounted for separately, would be considered an operating lease, and (ii) account for the combined lease and non-lease components under ASC Topic 606, Revenue from Contracts with Customers |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Drilling Long-Lived Assets, by Type | The following table summarizes our current rig fleet count and composition for each drilling services business segment: Multi-well, Pad-capable AC rigs SCR rigs Total Domestic drilling 17 — 17 International drilling — 8 8 25 |
Schedule of Production Services Long-Lived Assets, by Type | As of December 31, 2020, the fleet counts for each of our production services business segments were as follows: 550 HP 600 HP Total Well servicing rigs, by horsepower (HP) rating 111 12 123 Wireline services units 76 |
Emergence from Voluntary Reor_2
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting (Tables) | 12 Months Ended | |
Dec. 31, 2020 | ||
Emergence from Voluntary Reorganization under Chapter 11 [Abstract] | ||
Schedule of Reorganization Items [Table Text Block] | Reorganization items consisted of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Gain on settlement of liabilities subject to compromise $ — $ (291,378) Fresh start valuation adjustments — 284,392 Legal and professional fees 3,860 26,038 Unamortized debt costs on liabilities subject to compromise — 2,003 Accelerated stock-based compensation — 713 Loss (gain) on rejected leases 403 (378) DIP facility costs — 513 $ 4,263 $ 21,903 | |
Schedule of Enterprise Value to Estimated Fair Value of Successor Common Stock [Table Text Block] | The following table reconciles the enterprise value to the estimated fair value of our Successor Common Stock as of the Fresh Start Reporting Date (dollars in thousands, except per share data): Enterprise value $ 276,000 Plus: cash and cash equivalents 10,592 Less: fair value of debt (145,420) Total implied equity (prior to debt issuance costs on equity component on Convertible Notes) 141,172 Less: equity portion of Convertible Notes (123,088) Fair value of Successor stockholders’ equity $ 18,084 Shares issued upon emergence 1,049,804 Per share value $ 17.23 | |
Reconciliation of Enterprise Value to the Reorganization Value of Successor's Assets to be Allocated [Table Text Block] | The following table reconciles enterprise value to the reorganization value of our Successor’s assets to be allocated to our individual assets as of the Fresh Start Reporting Date (amounts in thousands): Enterprise value $ 276,000 Plus: cash and cash equivalents 10,592 Plus: current liabilities 65,799 Plus: non-current liabilities excluding long-term debt 6,626 Less: debt issuance costs on Successor debt (6,394) Reorganization value of Successor assets $ 352,623 | |
Schedule of Fresh-Start Adjustments [Table Text Block] | The adjustments set forth in the following consolidated balance sheet as of May 31, 2020 reflect the effects of the transactions contemplated by the Plan and executed on the fresh start reporting date (reflected in the column entitled “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of Fresh Start Accounting (reflected in the column entitled “Fresh Start Accounting Adjustments”). As of May 31, 2020 (in thousands) Predecessor Reorganization Adjustments Fresh Start Accounting Adjustments Successor ASSETS Cash and cash equivalents $ 21,253 $ (10,661) (1) $ — $ 10,592 Restricted cash 4,452 11,721 (2) — 16,173 Receivables: Trade, net of allowance for doubtful accounts 33,537 — — 33,537 Unbilled receivables 9,163 — — 9,163 Insurance recoveries 23,636 — — 23,636 Other receivables 5,256 1,000 (3) — 6,256 Inventory 21,012 — (6,883) (18) 14,129 Assets held for sale 1,825 — 29 (19) 1,854 Prepaid expenses and other current assets 4,817 — 952 (20) 5,769 Total current assets 124,951 2,060 (5,902) 121,109 Property and equipment, at cost 1,082,704 — (886,733) (21) 195,971 Less accumulated depreciation 655,512 — (655,512) (21) — Net property and equipment 427,192 — (231,221) 195,971 Intangible assets, net of accumulated amortization — — 9,370 (22) 9,370 Deferred income taxes 10,897 — (2,157) (23) 8,740 Operating lease assets 5,234 — — 5,234 Other noncurrent assets 13,247 (5,023) (4) 3,975 (24) 12,199 Total assets $ 581,521 $ (2,963) $ (225,935) $ 352,623 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable $ 24,601 $ (9,478) (5) $ — $ 15,123 Deferred revenues 121 — — 121 Commitment premium 9,584 (9,584) (6) — — Debtor in possession financing 4,000 (4,000) (7) — — Accrued expenses: Employee compensation and related costs 4,970 — — 4,970 Insurance claims and settlements 23,517 — — 23,517 Insurance premiums and deductibles 5,269 — — 5,269 Interest 3,775 (3,731) (8) — 44 Other 12,436 4,329 (9) (10) 16,755 Total current liabilities 88,273 (22,464) (10) 65,799 Long-term debt, less unamortized discount and debt issuance costs 175,000 (53,831) (10) 20,070 (25) 141,239 Noncurrent operating lease liabilities 4,189 — — 4,189 Deferred income taxes 4,296 — (3,225) (26) 1,071 Other noncurrent liabilities 1,366 — — 1,366 Total liabilities not subject to compromise 273,124 (76,295) 16,835 213,664 Liabilities subject to compromise 308,422 (308,422) (11) — — Stockholders’ equity: Predecessor common stock 8,893 (8,893) (12) — — Successor common stock — 1 (13) — 1 Predecessor additional paid-in capital 553,631 (553,631) (14) — — Successor additional paid-in capital — 98,413 (15) 40,545 (27) 138,958 Predecessor treasury stock, at cost (5,098) 5,098 (16) — — Accumulated deficit (557,451) 840,766 (17) (283,315) (28) — Total stockholders’ equity (25) 381,754 (242,770) 138,959 Total liabilities and stockholders’ equity $ 581,521 $ (2,963) $ (225,935) $ 352,623 (1) Represents the following net change in cash and cash equivalents: Cash proceeds from Convertible Notes $ 120,187 Cash proceeds from Senior Secured Notes 75,000 Payment to fund claims reserve (950) Payment to escrow remaining professional fees (10,771) Payment of professional fees (9,468) Payment in full to extinguish DIP Facility (4,000) Payment of accrued interest on DIP Facility (55) Payment of DIP Facility fees (177) Payment in full to extinguish Prepetition Term Loan (175,000) Payment of accrued interest on Prepetition Term Loan (3,677) Payment of prepayment penalty on Prepetition Term Loan (1,750) $ (10,661) (2) Represents the following net change in restricted cash: Payment to fund rejected leases claims reserve $ 950 Payment to escrow remaining professional fees 10,771 $ 11,721 (3) Represents recognition of a receivable for a portion of the proceeds from the issuance of the Senior Secured Notes which was received in June 2020. (4) Represents the reclassification of previously paid debt issuance costs from deferred assets to offset the carrying amount of long-term debt. (5) Represents the payment of professional fees which were incurred prior to emergence. (6) Represents the settlement of the Backstop Commitment Premium upon issuance of the Convertible Notes. (7) Represents the payment to extinguish the DIP Facility. (8) Represents the payment of accrued interest on the Prepetition Term Loan and DIP Facility. (9) Represents the increase in accrued expenses for fees which were incurred upon our emergence from Chapter 11. (10) Represents the following changes in long-term debt, less unamortized discount and debt issuance costs: Payment in full to extinguish Prepetition Term Loan $ (175,000) Issuance of Senior Secured Notes at Par 78,125 Recognition of debt issuance costs on Senior Secured Notes (2,913) Recognition of liability component of Convertible Notes 47,225 Recognition of debt issuance costs on liability component of Convertible Notes (1,268) $ (53,831) Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . (11) Represents the settlement of liabilities subject to compromise in accordance with the Plan, for which the resulting gain is as follows: Prepetition Senior Notes $ 300,000 Accrued interest on Prepetition Senior Notes 8,422 Liabilities subject to compromise 308,422 Cash paid by holders of Prepetition Senior Notes 118,013 Issuance of equity to Prepetition Senior Notes creditors (17,044) Notes Received by Prepetition Senior Note holders (118,013) $ 291,378 (12) Represents the cancellation of Predecessor common stock. (13) Represents the issuance of Successor common stock to prior equity holders and to settle the Prepetition Senior Notes. (14) Represents the cancellation of Predecessor additional paid-in capital. (15) The changes in Successor additional paid-in capital were as follows: Recognition of equity component of Convertible Notes $ 82,546 Issuance of Successor common stock to Prepetition Senior Notes creditors and prior equity holders 18,083 Recognition of debt issuance costs on equity component of Convertible Notes (2,216) $ 98,413 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . (16) Represents the cancellation of Predecessor treasury stock. (17) Represents the cumulative impact to Predecessor retained earnings of the reorganization adjustments described above. (18) Represents the fair value adjustment to inventory, as described further in the previous section under the heading “ Valuation Process ”. (19) Represents the fair value adjustment to assets held for sale, as described further in the previous section under the heading “ Valuation Process ”. (20) Represents deferred compensation associated with the excess of fair value over the par value of Convertible Notes purchased by senior management, which is compensation to the Successor and therefore was expensed in June 2020. (21) Represents the following fair value adjustments to property and equipment: Predecessor Fair Value Successor Drilling rigs and equipment $ 1,010,612 $ (832,294) $ 178,318 Vehicles 41,283 (28,561) 12,722 Building and improvements 16,619 (13,742) 2,877 Office equipment 12,231 (11,743) 488 Land 1,959 (393) 1,566 $ 1,082,704 $ (886,733) $ 195,971 Less: Accumulated Depreciation (655,512) 655,512 — $ 427,192 $ (231,221) $ 195,971 (22) Represents the fair value adjustment to recognize the trademark and tradename of Pioneer Energy Services Corp. as an intangible, as described further in the above section under the heading “ Valuation Process ”. (23) Represents the recognition of the noncurrent deferred tax asset as a result of the cumulative tax impact of the fresh start adjustments herein. (24) Represents a prepaid tax asset established as part of the fresh start accounting adjustments. (25) Represents the following fair value adjustments to long-term debt less unamortized discount and debt issuance costs: Fair value adjustment to the liability component of the Convertible Notes $ 23,195 Discount on Senior Secured Notes (3,125) $ 20,070 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . (26) Represents the derecognition of the deferred tax liability as a result of the cumulative tax impact of the fresh start adjustments herein. (27) Represents the fair value adjustment to the equity component of the Convertible Notes. (28) Represents the cumulative impact of the fresh start accounting adjustments discussed above and the elimination of Predecessor accumulated earnings. | [1] |
[1] | Represents the cancellation of Predecessor common stock. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contracts with Customer [Abstract] | |
Schedule of Allowance for Doubtful Accounts [Table Text Block] | The changes in our allowance for doubtful accounts consist of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Balance at beginning of period $ 1,988 $ 824 $ 1,423 Increase (decrease) in allowance charged to expense (587) 1,164 (167) Accounts charged against the allowance (237) — (432) Balance at end of period $ 1,164 $ 1,988 $ 824 |
Schedule of Deferred Revenues and Costs [Table Text Block] | Our current and noncurrent deferred revenues, contract assets and deferred costs as of December 31, 2020 and 2019 were as follows (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Current deferred revenues $ 1,019 $ 1,339 Current deferred costs 361 1,071 Current contract assets 300 — Noncurrent deferred revenues — 57 Noncurrent deferred costs 194 267 |
Schedule of Amortization of Deferred Revenue and Costs [Table Text Block] | Amortization of deferred revenues and costs were as follows (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Amortization of deferred revenues $ 1,024 $ 2,705 $ 6,203 Amortization of deferred costs 659 1,876 4,786 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following table presents the estimated useful lives and costs of our assets by class as of December 31, 2020 (amounts in thousands, except useful lives): Successor Lives December 31, 2020 Drilling rigs and equipment 3 - 25 $ 136,982 Well servicing rigs and equipment 5 - 17 32,346 Wireline units and equipment 1 - 10 6,057 Vehicles 3 - 5 12,128 Buildings and improvements 2 - 40 2,702 Office equipment 3 - 5 478 Property and equipment not yet placed in service 0 1,207 Land 0 1,629 $ 193,529 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table summarizes our lease expense recognized, excluding variable lease costs (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Long-term operating lease expense $ 853 $ 1,080 $ 3,699 Short-term operating lease expense 3,370 4,456 15,187 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the amount and timing of our obligations associated with our long-term operating leases (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Within 1 year $ 1,069 $ 2,496 In the second year 985 1,933 In the third year 921 1,447 In the fourth year 874 1,117 In the fifth year 895 912 Thereafter 299 811 Total undiscounted lease obligations $ 5,043 $ 8,716 Impact of discounting (532) (818) Discounted value of operating lease obligations $ 4,511 $ 7,898 Current operating lease liabilities $ 889 $ 2,198 Noncurrent operating lease liabilities 3,622 5,700 $ 4,511 $ 7,898 |
Lessee, Supplemental Disclosure [Table Text Block] | The following table summarizes the weighted-average remaining lease term and discount rate associated with our long-term operating leases: Successor Predecessor December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years) 5.0 4.5 Weighted-average discount rate 4.5 % 4.5 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Schedule of Long-term Debt Instruments | At December 31, 2019, our debt consisted of the following (amounts in thousands): Predecessor December 31, 2019 Term Loan $ 175,000 Prepetition Senior Notes 300,000 475,000 Less unamortized discount (1,869) Less unamortized debt issuance costs (5,432) $ 467,699 | |
Schedule of Principal Amount of Outstanding Long-Debt Obligations | As of December 31, 2020, the principal amount of our outstanding debt obligations, including those issued in payment of in-kind interest, were as follows (amounts in thousands): Successor December 31, 2020 Convertible Notes 132,763 Senior Secured Notes 77,439 | |
Convertible Debt [Table Text Block] | The below table summarizes the allocation of issuance proceeds, fair value and debt issuance costs to the liability and equity components of the Convertible Notes at the Fresh Start Reporting Date (in thousands): Successor Liability Component Equity Component Total Issuance proceeds, net of Backstop Commitment Premium $ 43,738 $ 76,449 $ 120,187 Face value 47,225 82,546 129,771 Issuance discount 23,195 40,542 63,737 Fair value $ 70,420 $ 123,088 $ 193,508 Debt issuance costs (1,268) (2,216) (3,484) Net carrying value at Fresh Start Reporting Date $ 69,152 $ 120,872 $ 190,024 | |
Schedule of Unamortized Debt Issuance Costs and Discounts [Table Text Block] | Our unamortized debt issuance costs and discounts are presented below (amounts in thousands): Successor December 31, 2020 Unamortized discount on Convertible Notes (based on imputed interest rate of 20.9%) $ 56,438 Unamortized discount on Senior Secured Notes (based on imputed interest rate of 13.2%) 2,733 Unamortized debt issuance costs 3,714 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Income Tax, Domestic and Foreign [Table Text Block] | The jurisdictional components of income (loss) before income taxes consist of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Domestic $ (36,216) $ (98,773) $ (85,133) Foreign (6,824) (7,238) 11,900 Loss before income taxes $ (43,040) $ (106,011) $ (73,233) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of our income tax expense (benefit) consist of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Current: Federal $ (55) $ (67) $ (206) State 88 86 663 Foreign 309 189 654 342 208 1,111 Deferred: State (123) (3,347) 729 Foreign (3,035) 1,353 (11,169) (3,158) (1,994) (10,440) Income tax benefit $ (2,816) $ (1,786) $ (9,329) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The difference between the income tax benefit and the amount computed by applying the federal statutory income tax rate to loss before income taxes consists of the following (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Expected tax benefit $ (9,038) $ (22,262) $ (15,379) Valuation allowance: Valuation allowance 2,579 10,623 12,638 Reversal of valuation allowance on foreign operations — — (14,756) State income taxes (28) 73 614 Foreign currency translation loss (gain) (891) 1,579 742 Net tax benefits and nondeductible expenses in foreign jurisdictions (227) (537) 940 GILTI tax — — 1,579 Stock-based compensation — 1,449 595 Compensation expense nondeductible for tax purposes 784 — 1,684 Reorganization and restructuring costs 2,418 7,528 1,388 Convertible Notes interest and issuance costs 1,838 — — Other nondeductible expenses for tax purposes (4) 190 575 Other, net (247) (429) 51 Income tax benefit $ (2,816) $ (1,786) $ (9,329) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of our deferred income tax assets and liabilities were as follows (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Deferred tax assets: Net operating loss carryforward $ 82,901 $ 110,834 Intangibles 7,653 12,145 Interest expense deduction limitation carryforward 3,200 6,649 Employee stock-based compensation 63 3,124 Employee benefits and insurance claims accruals 866 2,422 Operating lease liabilities 1,027 1,832 Accounts receivable reserve 278 187 Inventory 918 202 Accrued expenses 451 233 Deferred revenue — 124 97,357 137,752 Valuation allowance (74,676) (59,842) Deferred tax liabilities: Property and equipment (9,816) (68,694) Operating lease assets (998) (1,686) Unbilled revenue (68) (407) Net deferred tax assets $ 11,799 $ 7,123 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following presents a reconciliation of the numerators and denominators of the basic and diluted EPS computations (amounts in thousands, except per share data): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Numerator: Net loss (numerator for basic EPS) $ (40,224) $ (104,225) $ (63,904) Interest expense on Convertible Notes, net of tax — — — Numerator for diluted EPS, if-converted method (40,224) (104,225) (63,904) Denominator: Weighted-average shares (denominator for basic EPS) 1,117 78,968 78,423 Potentially dilutive shares issuable from Convertible Notes, if-converted method — — — Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method — — — Denominator for diluted EPS 1,117 78,968 78,423 Loss per common share - Basic $ (36.01) $ (1.32) $ (0.81) Loss per common share - Diluted $ (36.01) $ (1.32) $ (0.81) Potentially dilutive securities excluded as anti-dilutive 9,782 4,517 4,842 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following summarizes our stock-based compensation expense recognized, by award type, and the compensation expense (benefit) recognized for phantom stock unit awards (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Stock option awards $ — $ 9 $ 137 Restricted stock awards 1,249 202 504 Restricted stock unit awards — 341 2,129 $ 1,249 $ 552 $ 2,770 Phantom stock unit awards $ — $ — $ (112) |
Employee Benefit Plans and In_2
Employee Benefit Plans and Insurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans and Insurance [Abstract] | |
Defined Contribution Plan Disclosures | Our matching contributions were as follows (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Matching contributions $ 114 $ 1,473 $ 5,277 |
Schedule of Accrued Liabilities [Table Text Block] | Accrued insurance premiums and deductibles related to our estimate of the self-insured portion of costs associated with our health, workers’ compensation, general liability and auto liability insurance are as follows (amounts in thousands): Successor Predecessor December 31, 2020 December 31, 2019 Workers’ compensation $ 1,976 $ 3,269 Health insurance 646 1,282 General liability and auto liability 1,306 1,389 $ 3,928 $ 5,940 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth certain financial information for each of our segments and corporate (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Revenues: Domestic drilling $ 44,205 $ 53,341 $ 151,769 International drilling 12,220 15,928 88,932 Drilling services 56,425 69,269 240,701 Well servicing 30,739 31,947 115,715 Wireline services 16,710 35,543 172,931 Coiled tubing services — 5,611 46,445 Production services 47,449 73,101 335,091 Consolidated revenues $ 103,874 $ 142,370 $ 575,792 Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Operating costs: Domestic drilling $ 26,846 $ 33,101 $ 92,183 International drilling 9,529 13,676 65,007 Drilling services 36,375 46,777 157,190 Well servicing 24,325 26,877 83,461 Wireline services 17,090 31,836 151,145 Coiled tubing services 408 8,557 39,557 Production services 41,823 67,270 274,163 Consolidated operating costs $ 78,198 $ 114,047 $ 431,353 Gross margin: Domestic drilling $ 17,359 $ 20,240 $ 59,586 International drilling 2,691 2,252 23,925 Drilling services 20,050 22,492 83,511 Well servicing 6,414 5,070 32,254 Wireline services (380) 3,707 21,786 Coiled tubing services (408) (2,946) 6,888 Production services 5,626 5,831 60,928 Consolidated gross margin $ 25,676 $ 28,323 $ 144,439 Identifiable Assets: Domestic drilling (1) $ 145,916 $ 158,283 $ 347,036 International drilling (1) (2) 44,229 49,611 60,026 Drilling services 190,145 207,894 407,062 Well servicing 44,138 49,388 116,473 Wireline services 21,182 23,948 71,887 Coiled tubing services 3,491 6,336 30,834 Production services 68,811 79,672 219,194 Corporate 55,474 65,057 47,698 Consolidated identifiable assets $ 314,430 $ 352,623 $ 673,954 Depreciation and amortization: Domestic drilling $ 14,363 $ 18,058 $ 43,162 International drilling 7,575 2,144 5,665 Drilling services 21,938 20,202 48,827 Well servicing 8,023 7,820 19,894 Wireline services 3,320 5,088 14,772 Coiled tubing services — 2,164 6,447 Production services 11,343 15,072 41,113 Corporate 332 373 944 Consolidated depreciation $ 33,613 $ 35,647 $ 90,884 Capital Expenditures: Domestic drilling $ 4,327 $ 3,862 $ 17,889 International drilling 474 1,273 4,812 Drilling services 4,801 5,135 22,701 Well servicing 649 1,918 10,185 Wireline services 320 1,684 5,907 Coiled tubing services — 166 4,736 Production services 969 3,768 20,828 Corporate — 21 1,300 Consolidated capital expenditures $ 5,770 $ 8,924 $ 44,829 (1) Identifiable assets for our drilling segments include the impact of a $28.4 million and $36.1 million intercompany balance, as of December 31, 2020 and 2019, respectively, between our domestic drilling segment (intercompany receivable) and our |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated Gross Margin | The following is a reconciliation of consolidated gross margin of our segments reported above to loss from operations as reported on the consolidated statements of operations (amounts in thousands): Successor Predecessor Seven Months Ended December 31, 2020 Five Months Ended May 31, 2020 Year Ended December 31, 2019 Consolidated gross margin $ 25,676 $ 28,323 $ 144,439 Depreciation and amortization (33,613) (35,647) (90,884) General and administrative (24,055) (22,047) (91,185) Prepetition restructuring charges — (16,822) — Impairment (742) (17,853) (2,667) Bad debt (expense) recovery, net 227 (1,209) 79 Gain on dispositions of property and equipment, net 6,132 989 4,513 Loss from operations $ (26,375) $ (64,266) $ (35,705) |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)well_service_rigsdrilling_rigswireline_tubing_units | Dec. 31, 2019USD ($) | |
Cash and Cash Equivalents | ||
Cash Equivalents, at Carrying Value | $ 0 | $ 8,900,000 |
Restricted Cash from Proceeds of Qualifying Sales of Property & Equipment | 200,000 | |
Restricted cash | 1,148,000 | $ 998,000 |
Intangible Assets Future Amortization | ||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 900,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 900,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 900,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 900,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 900,000 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 200,000 | |
Drilling Services [Member] | ||
Business - Drilling | ||
Drilling Rigs | drilling_rigs | 25 | |
Drilling Services [Member] | Pad-Capable [Member] | ||
Business - Drilling | ||
Percentage of Drilling Fleet | 100.00% | |
Domestic Drilling [Member] | Drilling Services [Member] | United States [Member] | ||
Business - Drilling | ||
Drilling Divisions | 3 | |
Drilling Rigs | drilling_rigs | 17 | |
Domestic Drilling [Member] | Drilling Services [Member] | United States [Member] | AC [Member] | ||
Business - Drilling | ||
Drilling Rigs | drilling_rigs | 17 | |
Domestic Drilling [Member] | Drilling Services [Member] | United States [Member] | SCR Drilling Rigs [Member] | ||
Business - Drilling | ||
Drilling Rigs | drilling_rigs | 0 | |
International Drilling [Member] | Drilling Services [Member] | Colombia [Member] | ||
Business - Drilling | ||
Drilling Rigs | drilling_rigs | 8 | |
International Drilling [Member] | Drilling Services [Member] | Colombia [Member] | AC [Member] | ||
Business - Drilling | ||
Drilling Rigs | drilling_rigs | 0 | |
International Drilling [Member] | Drilling Services [Member] | Colombia [Member] | SCR Drilling Rigs [Member] | ||
Business - Drilling | ||
Drilling Rigs | drilling_rigs | 8 | |
Well Servicing [Member] | 550 Horsepower [Member] | ||
Business - Production Services | ||
Well Servicing Rigs | well_service_rigs | 111 | |
Well Servicing [Member] | 600 Horsepower [Member] | ||
Business - Production Services | ||
Well Servicing Rigs | well_service_rigs | 12 | |
Well Servicing [Member] | Production Services [Member] | ||
Business - Production Services | ||
Well Servicing Rigs | well_service_rigs | 123 | |
Wireline Services [Member] | Production Services [Member] | ||
Business - Production Services | ||
Wireline Units | wireline_tubing_units | 76 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Drilling Services Business) (Details) - Drilling Services [Member] | Dec. 31, 2020drilling_rigs |
Accounting Policies [Line Items] | |
Drilling Rigs | 25 |
Pad-Capable [Member] | |
Accounting Policies [Line Items] | |
Percentage of Drilling Fleet | 100.00% |
United States [Member] | Domestic Drilling [Member] | |
Accounting Policies [Line Items] | |
Drilling Divisions | 3 |
Drilling Rigs | 17 |
United States [Member] | AC [Member] | Domestic Drilling [Member] | |
Accounting Policies [Line Items] | |
Drilling Rigs | 17 |
United States [Member] | SCR Drilling Rigs [Member] | Domestic Drilling [Member] | |
Accounting Policies [Line Items] | |
Drilling Rigs | 0 |
Colombia [Member] | International Drilling [Member] | |
Accounting Policies [Line Items] | |
Drilling Rigs | 8 |
Colombia [Member] | AC [Member] | International Drilling [Member] | |
Accounting Policies [Line Items] | |
Drilling Rigs | 0 |
Colombia [Member] | SCR Drilling Rigs [Member] | International Drilling [Member] | |
Accounting Policies [Line Items] | |
Drilling Rigs | 8 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies (Production Services Business) (Details) | Dec. 31, 2020well_service_rigswireline_tubing_units |
Well Servicing [Member] | Production Services [Member] | |
Accounting Policies [Line Items] | |
Well Servicing Rigs | 123 |
Well Servicing [Member] | 550 Horsepower [Member] | |
Accounting Policies [Line Items] | |
Well Servicing Rigs | 111 |
Well Servicing [Member] | 600 Horsepower [Member] | |
Accounting Policies [Line Items] | |
Well Servicing Rigs | 12 |
Wireline Services [Member] | Production Services [Member] | |
Accounting Policies [Line Items] | |
Wireline Units | wireline_tubing_units | 76 |
Emergence from Voluntary Reor_3
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting (Details) $ / shares in Units, $ in Thousands | May 31, 2020USD ($)$ / sharesshares | May 29, 2020USD ($)shares | Feb. 28, 2020USD ($) | Mar. 31, 2020USD ($) | May 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 07, 2020USD ($) | Mar. 01, 2020 | Nov. 08, 2017USD ($) | Mar. 18, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||
Percent of ordinary shares exchanged for cancelled notes | 94.25% | ||||||||||
Percent of ordinary shares issued to common holders | 5.75% | ||||||||||
Common Stock, Issued, Conversion Ratio | 0.0006849838 | ||||||||||
Prepetition restructuring charges | $ 16,822 | $ 0 | $ 0 | ||||||||
Fair value of Successor stockholders' equity | $ 18,084 | $ 18,084 | |||||||||
Postconfirmation Common Stock Per Share Value | $ / shares | $ 17.23 | ||||||||||
Convertible Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Rights offering commitment amount | $ 9,600 | $ 9,600 | |||||||||
Debt Instrument, Face Amount | $ 129,771 | 132,763 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 175,000 | ||||||||||
Prepetition Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||||||
Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 78,100 | $ 77,439 | |||||||||
Common Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Common Stock, Shares, Issued | shares | 1,049,804 | 1,049,804 | 1,049,804 | ||||||||
Restructuring Support Agreement [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Holders percentage under settlement agreement | 99.00% | ||||||||||
Restructuring Support Agreement [Member] | Prepetition Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Holders percentage under settlement agreement | 75.00% | ||||||||||
Backstop Commitment Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Prepetition restructuring charges | $ 9,600 | ||||||||||
Debtor-in-Possession Facility [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debtor-in-Possession Financing, Amount Arranged | $ 75,000 | ||||||||||
Debtor-in-Possession Financing, Term | 5 months | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Debtor-in-Possession Facility [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debtor-in-Possession Financing, Basis Spread on Borrowings Outstanding | 200 | ||||||||||
Maximum [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 75,000 | $ 40,000 | |||||||||
Maximum [Member] | Post-emergence revolving asset-based lending facility [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||||
Prepetition Senior Notes [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Accrued interest on Prepetition Senior Notes | $ 7,600 | ||||||||||
Interest Expense on Prepetition Liabilities Recognized in Statement of Operations | $ 3,100 | ||||||||||
Consenting Noteholders [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Rights offering commitment amount | 118,000 | ||||||||||
Commitment premium | 9,400 | ||||||||||
Senior Management [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Rights offering commitment amount | 1,800 | ||||||||||
Commitment premium | $ 100 |
Emergence from Voluntary Reor_4
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Schedule of Reorganization Items (Details) - USD ($) $ in Thousands | May 30, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Gain on settlement of liabilities subject to compromise | $ (291,378) | $ 0 | ||
Fresh start valuation adjustments | 284,392 | 0 | ||
Legal and professional fees | $ 9,468 | 26,038 | 3,860 | |
Write-off of unamortized debt issuance costs on liabilities subject to compromise | 2,003 | 0 | ||
Accelerated stock-based compensation | 713 | 0 | ||
Loss (gain) on rejected leases | (378) | 403 | ||
DIP Facility costs | $ (177) | 513 | 0 | |
Reorganization Items, net | $ 21,903 | $ 4,263 | $ 0 |
Emergence from Voluntary Reor_5
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Fresh Start Accounting (Details) $ in Thousands | May 31, 2020USD ($) |
Minimum [Member] | |
Fresh-Start Adjustment [Line Items] | |
Enterprise Value, Original Estimate | $ 275,000 |
Enterprise Value, Revised Estimate | 249,000 |
Maximum [Member] | |
Fresh-Start Adjustment [Line Items] | |
Enterprise Value, Original Estimate | 335,000 |
Enterprise Value, Revised Estimate | 303,000 |
Median [Member] | |
Fresh-Start Adjustment [Line Items] | |
Enterprise Value, Original Estimate | 305,000 |
Enterprise Value, Revised Estimate | $ 276,000 |
Emergence from Voluntary Reor_6
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reconciliation of Enterprise Value to Estimated Fair Vale of Successor Company (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2020 | May 30, 2020 | May 29, 2020 |
Debt Instrument [Line Items] | |||
Plus: Cash and cash equivalents | $ 10,592 | $ 21,253 | |
Less: fair value of debt | (145,420) | ||
Total implied equity | 141,172 | ||
Fair value of Successor stockholders' equity | $ 18,084 | ||
Postconfirmation Common Stock Per Share Value | $ 17.23 | ||
Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Less: equity portion of Convertible Notes | $ (193,508) | ||
Common Stock [Member] | |||
Debt Instrument [Line Items] | |||
Shares issued upon emergence | 1,049,804 | 1,049,804 | |
Median [Member] | |||
Debt Instrument [Line Items] | |||
Enterprise Value | $ 276,000 | ||
Equity Component [Member] | Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Less: equity portion of Convertible Notes | $ (123,088) | $ (123,088) |
Emergence from Voluntary Reor_7
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reconciliation of Enterprise Value to the Reorganization Value of Successor's Assets to be Allocated (Details) - USD ($) $ in Thousands | May 31, 2020 | May 30, 2020 |
Fresh-Start Adjustment [Line Items] | ||
Plus: Cash and cash equivalents | $ 10,592 | $ 21,253 |
Plus: current liabilities | 65,799 | $ 88,273 |
Plus: non-current liabilities excluding long-term debt | 6,626 | |
Less: debt issuance costs on Successor debt | (6,394) | |
Reorganization value of Successor assets | 352,623 | |
Median [Member] | ||
Fresh-Start Adjustment [Line Items] | ||
Enterprise Value | $ 276,000 |
Emergence from Voluntary Reor_8
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Schedule of Fresh-Start Adjustments (Details) - USD ($) $ in Thousands | May 31, 2020 | May 30, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 10,592 | $ 21,253 | |
Restricted cash | 16,173 | 4,452 | |
Receivables | |||
Trade, net of allowance for doubtful accounts | 33,537 | 33,537 | |
Unbilled receivables | 9,163 | 9,163 | |
Insurance recoveries | 23,636 | 23,636 | |
Other receivables | 6,256 | 5,256 | |
Inventory | 14,129 | 21,012 | |
Assets held for sale | 1,854 | 1,825 | |
Prepaid expenses and other current assets | 5,769 | 4,817 | |
Total current assets | 121,109 | 124,951 | |
Property and equipment, at cost | 195,971 | 1,082,704 | |
Less accumulated depreciation | 0 | 655,512 | |
Net property and equipment | 195,971 | 427,192 | |
Intangible assets, net of accumulated amortization | 9,370 | 0 | |
Deferred income taxes | 8,740 | 10,897 | |
Operating lease assets | 5,234 | 5,234 | |
Other noncurrent assets | 12,199 | 13,247 | |
Total assets | 352,623 | 581,521 | |
Current liabilities: | |||
Accounts payable | 15,123 | 24,601 | |
Deferred revenues | 121 | 121 | |
Commitment Premium | 0 | 9,584 | |
Debtor in possession financing | 0 | 4,000 | |
Accrued expenses: | |||
Employee compensation and related costs | 4,970 | 4,970 | |
Insurance claims and settlements | 23,517 | 23,517 | |
Insurance premiums and deductibles | 5,269 | 5,269 | |
Interest | 44 | 3,775 | |
Other | 16,755 | 12,436 | |
Total current liabilities | 65,799 | 88,273 | |
Long-term debt, less unamortized discount and debt issuance costs | 141,239 | 175,000 | |
Noncurrent operating lease liabilities | 4,189 | 4,189 | |
Deferred income taxes | 1,071 | 4,296 | |
Other noncurrent liabilities | 1,366 | 1,366 | |
Total liabilities not subject to compromise | 213,664 | 273,124 | |
Liabilities subject to compromise | 0 | 308,422 | |
Shareholders' equity: | |||
Predecessor common stock | 0 | 8,893 | |
Successor common stock | 1 | 0 | |
Predecessor additional paid-in capital | 0 | 553,631 | |
Successor additional paid-in capital | 138,958 | 0 | |
Predecessor treasury stock | 0 | (5,098) | |
Accumulated deficit | 0 | (557,451) | |
Total stockholders' equity | 138,959 | (25) | |
Total liabilities and stockholders' equity | $ 352,623 | 581,521 | |
Reorganization Adjustments [Member] | |||
Current assets: | |||
Cash and cash equivalents | [1] | (10,661) | |
Restricted cash | [2] | 11,721 | |
Receivables | |||
Trade, net of allowance for doubtful accounts | 0 | ||
Unbilled receivables | 0 | ||
Insurance recoveries | 0 | ||
Other receivables | [3] | 1,000 | |
Inventory | 0 | ||
Assets held for sale | 0 | ||
Prepaid expenses and other current assets | 0 | ||
Total current assets | 2,060 | ||
Property and equipment, at cost | 0 | ||
Less accumulated depreciation | 0 | ||
Net property and equipment | 0 | ||
Intangible assets, net of accumulated amortization | 0 | ||
Deferred income taxes | 0 | ||
Operating lease assets | 0 | ||
Other noncurrent assets | [4] | (5,023) | |
Total assets | (2,963) | ||
Current liabilities: | |||
Accounts payable | [5] | (9,478) | |
Deferred revenues | 0 | ||
Commitment Premium | [6] | (9,584) | |
Debtor in possession financing | [7] | (4,000) | |
Accrued expenses: | |||
Employee compensation and related costs | 0 | ||
Insurance claims and settlements | 0 | ||
Insurance premiums and deductibles | 0 | ||
Interest | [8] | (3,731) | |
Other | [9] | 4,329 | |
Total current liabilities | (22,464) | ||
Long-term debt, less unamortized discount and debt issuance costs | [10] | (53,831) | |
Noncurrent operating lease liabilities | 0 | ||
Deferred income taxes | 0 | ||
Other noncurrent liabilities | 0 | ||
Total liabilities not subject to compromise | (76,295) | ||
Liabilities subject to compromise | [11] | (308,422) | |
Shareholders' equity: | |||
Predecessor common stock | [12] | (8,893) | |
Successor common stock | [13] | 1 | |
Predecessor additional paid-in capital | [14] | (553,631) | |
Successor additional paid-in capital | [15] | 98,413 | |
Predecessor treasury stock | [16] | 5,098 | |
Accumulated deficit | [17] | 840,766 | |
Total stockholders' equity | 381,754 | ||
Total liabilities and stockholders' equity | (2,963) | ||
Fresh Start Accounting Adjustments [Member] | |||
Current assets: | |||
Cash and cash equivalents | 0 | ||
Restricted cash | 0 | ||
Receivables | |||
Trade, net of allowance for doubtful accounts | 0 | ||
Unbilled receivables | 0 | ||
Insurance recoveries | 0 | ||
Other receivables | 0 | ||
Inventory | [18] | (6,883) | |
Assets held for sale | [19] | 29 | |
Prepaid expenses and other current assets | [20] | 952 | |
Total current assets | (5,902) | ||
Property and equipment, at cost | [21] | (886,733) | |
Less accumulated depreciation | [21] | (655,512) | |
Net property and equipment | (231,221) | ||
Intangible assets, net of accumulated amortization | [22] | 9,370 | |
Deferred income taxes | [23] | (2,157) | |
Operating lease assets | 0 | ||
Other noncurrent assets | [24] | 3,975 | |
Total assets | (225,935) | ||
Current liabilities: | |||
Accounts payable | 0 | ||
Deferred revenues | 0 | ||
Commitment Premium | 0 | ||
Debtor in possession financing | 0 | ||
Accrued expenses: | |||
Employee compensation and related costs | 0 | ||
Insurance claims and settlements | 0 | ||
Insurance premiums and deductibles | 0 | ||
Interest | 0 | ||
Other | (10) | ||
Total current liabilities | (10) | ||
Long-term debt, less unamortized discount and debt issuance costs | [25] | 20,070 | |
Noncurrent operating lease liabilities | 0 | ||
Deferred income taxes | [26] | (3,225) | |
Other noncurrent liabilities | 0 | ||
Total liabilities not subject to compromise | 16,835 | ||
Liabilities subject to compromise | 0 | ||
Shareholders' equity: | |||
Predecessor common stock | 0 | ||
Successor common stock | 0 | ||
Predecessor additional paid-in capital | 0 | ||
Successor additional paid-in capital | [27] | 40,545 | |
Predecessor treasury stock | 0 | ||
Accumulated deficit | [28] | (283,315) | |
Total stockholders' equity | (242,770) | ||
Total liabilities and stockholders' equity | $ (225,935) | ||
[1] | Represents the following net change in cash and cash equivalents: Cash proceeds from Convertible Notes $ 120,187 Cash proceeds from Senior Secured Notes 75,000 Payment to fund claims reserve (950) Payment to escrow remaining professional fees (10,771) Payment of professional fees (9,468) Payment in full to extinguish DIP Facility (4,000) Payment of accrued interest on DIP Facility (55) Payment of DIP Facility fees (177) Payment in full to extinguish Prepetition Term Loan (175,000) Payment of accrued interest on Prepetition Term Loan (3,677) Payment of prepayment penalty on Prepetition Term Loan (1,750) $ (10,661) | ||
[2] | Represents the following net change in restricted cash: Payment to fund rejected leases claims reserve $ 950 Payment to escrow remaining professional fees 10,771 $ 11,721 | ||
[3] | Represents recognition of a receivable for a portion of the proceeds from the issuance of the Senior Secured Notes which was received in June 2020. | ||
[4] | Represents the reclassification of previously paid debt issuance costs from deferred assets to offset the carrying amount of long-term debt. | ||
[5] | Represents the payment of professional fees which were incurred prior to emergence. | ||
[6] | Represents the settlement of the Backstop Commitment Premium upon issuance of the Convertible Notes. | ||
[7] | Represents the payment to extinguish the DIP Facility. | ||
[8] | Represents the payment of accrued interest on the Prepetition Term Loan and DIP Facility. | ||
[9] | Represents the increase in accrued expenses for fees which were incurred upon our emergence from Chapter 11. | ||
[10] | Represents the following changes in long-term debt, less unamortized discount and debt issuance costs: Payment in full to extinguish Prepetition Term Loan $ (175,000) Issuance of Senior Secured Notes at Par 78,125 Recognition of debt issuance costs on Senior Secured Notes (2,913) Recognition of liability component of Convertible Notes 47,225 Recognition of debt issuance costs on liability component of Convertible Notes (1,268) $ (53,831) Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . | ||
[11] | Represents the settlement of liabilities subject to compromise in accordance with the Plan, for which the resulting gain is as follows: Prepetition Senior Notes $ 300,000 Accrued interest on Prepetition Senior Notes 8,422 Liabilities subject to compromise 308,422 Cash paid by holders of Prepetition Senior Notes 118,013 Issuance of equity to Prepetition Senior Notes creditors (17,044) Notes Received by Prepetition Senior Note holders (118,013) $ 291,378 | ||
[12] | Represents the cancellation of Predecessor common stock. | ||
[13] | Represents the issuance of Successor common stock to prior equity holders and to settle the Prepetition Senior Notes. | ||
[14] | Represents the cancellation of Predecessor additional paid-in capital. | ||
[15] | The changes in Successor additional paid-in capital were as follows: Recognition of equity component of Convertible Notes $ 82,546 Issuance of Successor common stock to Prepetition Senior Notes creditors and prior equity holders 18,083 Recognition of debt issuance costs on equity component of Convertible Notes (2,216) $ 98,413 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . | ||
[16] | Represents the cancellation of Predecessor treasury stock. | ||
[17] | Represents the cumulative impact to Predecessor retained earnings of the reorganization adjustments described above. | ||
[18] | Represents the fair value adjustment to inventory, as described further in the previous section under the heading “ Valuation Process | ||
[19] | Represents the fair value adjustment to assets held for sale, as described further in the previous section under the heading “ Valuation Process | ||
[20] | Represents deferred compensation associated with the excess of fair value over the par value of Convertible Notes purchased by senior management, which is compensation to the Successor and therefore was expensed in June 2020. | ||
[21] | Represents the following fair value adjustments to property and equipment: Predecessor Fair Value Successor Drilling rigs and equipment $ 1,010,612 $ (832,294) $ 178,318 Vehicles 41,283 (28,561) 12,722 Building and improvements 16,619 (13,742) 2,877 Office equipment 12,231 (11,743) 488 Land 1,959 (393) 1,566 $ 1,082,704 $ (886,733) $ 195,971 Less: Accumulated Depreciation (655,512) 655,512 — $ 427,192 $ (231,221) $ 195,971 | ||
[22] | Represents the fair value adjustment to recognize the trademark and tradename of Pioneer Energy Services Corp. as an intangible, as described further in the above section under the heading “ Valuation Process | ||
[23] | Represents the recognition of the noncurrent deferred tax asset as a result of the cumulative tax impact of the fresh start adjustments herein. | ||
[24] | Represents a prepaid tax asset established as part of the fresh start accounting adjustments. | ||
[25] | Represents the following fair value adjustments to long-term debt less unamortized discount and debt issuance costs: Fair value adjustment to the liability component of the Convertible Notes $ 23,195 Discount on Senior Secured Notes (3,125) $ 20,070 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . | ||
[26] | Represents the derecognition of the deferred tax liability as a result of the cumulative tax impact of the fresh start adjustments herein. | ||
[27] | Represents the fair value adjustment to the equity component of the Convertible Notes. | ||
[28] | Represents the cumulative impact of the fresh start accounting adjustments discussed above and the elimination of Predecessor accumulated earnings. |
Emergence from Voluntary Reor_9
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reorganization Adjustments - Sources and Uses of Cash (Details) - USD ($) $ in Thousands | May 30, 2020 | May 31, 2020 | Dec. 31, 2020 |
Reorganization Adjustments - Sources and Uses of Cash [Abstract] | |||
Cash Proceeds from Convertible Notes | $ 120,187 | ||
Cash Proceeds from Senior Secured Notes | 75,000 | ||
Payment to fund claims reserve | (950) | ||
Payment to escrow remaining professional fees | (10,771) | ||
Payment of legal and professional fees | (9,468) | $ (26,038) | $ (3,860) |
Payment in full to extinguish DIP facility | (4,000) | ||
Payment of accrued interest on DIP Facility | (55) | ||
Payment of DIP Facility fees | (177) | $ 513 | $ 0 |
Payment in full to extinguish PrePetition Term Loan | (175,000) | ||
Payment of accrued interest on PrePetition Term Loan | (3,677) | ||
Payment of prepayment premium on PrePetition Term Loan | (1,750) | ||
Net change in cash and cash equivalents, net | $ (10,661) |
Emergence from Voluntary Reo_10
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reorganization Adjustments - Change in Restricted Cash (Details) $ in Thousands | May 30, 2020USD ($) |
Fresh-Start Adjustment [Line Items] | |
Payment to fund rejected leases claims reserve | $ 950 |
Payment to escrow remaining professional fees | 10,771 |
Net change in restricted cash, net | $ 11,721 |
Emergence from Voluntary Reo_11
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reorganization Adjustments - Changes in Long-Term Debt, Net (Details) $ in Thousands | May 30, 2020USD ($) |
Fresh-Start Adjustment [Line Items] | |
Payment in full to extinguish PrePetition Term Loan | $ (175,000) |
Issuance of Senior Secured Notes | 78,125 |
Recognition of debt issue costs on Senior Secured Notes | (2,913) |
Net change in Long Term Debt, net | (53,831) |
Convertible Debt [Member] | Liability Component [Member] | |
Fresh-Start Adjustment [Line Items] | |
Recognition of liability component of Convertible Notes issuance | 47,225 |
Recognition of debt issuance costs on liability component of Convertible Notes | $ (1,268) |
Emergence from Voluntary Reo_12
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reorganization Adjustments - Liabilities Subject to Compromise (Details) $ in Thousands | May 30, 2020USD ($) |
Fresh-Start Adjustment [Line Items] | |
Cash paid by Holders of Prepetition Senior Notes | $ 118,013 |
Issuance of equity to Prepetition Senior Notes creditors | (17,044) |
Notes Received by Prepetition Senior Note holders | (118,013) |
Settlement of liabilities subject to compromise, net | 291,378 |
Reorganization Adjustments [Member] | |
Fresh-Start Adjustment [Line Items] | |
Prepetition Senior Notes | 308,422 |
Prepetition Senior Notes [Member] | Reorganization Adjustments [Member] | |
Fresh-Start Adjustment [Line Items] | |
Liabilities Subject to Compromise, Debt | 300,000 |
Accrued interest on Prepetition Senior Notes | $ 8,422 |
Emergence from Voluntary Reo_13
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Reorganization Adjustments - Successor Additional Paid-in Capital (Details) - USD ($) $ in Thousands | May 30, 2020 | May 31, 2020 | |
Fresh-Start Adjustment [Line Items] | |||
Increase (decrease) Additional Paid in Capital, Successor | $ 0 | $ 138,958 | |
Reorganization Adjustments [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Increase (decrease) Additional Paid in Capital, Successor | [1] | 98,413 | |
Convertible Debt [Member] | Equity Component [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Recognition of equity component of Convertible Notes | 82,546 | ||
Recognition of debt issuance costs of Convertible Notes equity component | $ (2,216) | ||
[1] | The changes in Successor additional paid-in capital were as follows: Recognition of equity component of Convertible Notes $ 82,546 Issuance of Successor common stock to Prepetition Senior Notes creditors and prior equity holders 18,083 Recognition of debt issuance costs on equity component of Convertible Notes (2,216) $ 98,413 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . |
Emergence from Voluntary Reo_14
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Fresh Start Accounting Adjustments - Fair Value Adjustment - Property and Equipment (Details) - USD ($) $ in Thousands | May 31, 2020 | May 30, 2020 | |
Fresh-Start Adjustment [Line Items] | |||
Drilling and equipment | $ 178,318 | $ 1,010,612 | |
Vehicles | 12,722 | 41,283 | |
Buildings and improvements | 2,877 | 16,619 | |
Office equipment | 488 | 12,231 | |
Land | 1,566 | 1,959 | |
Property and equipment, at cost | 195,971 | 1,082,704 | |
Less accumulated depreciation | 0 | (655,512) | |
Net property and equipment | $ 195,971 | 427,192 | |
Fresh Start Accounting Adjustments [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Drilling and equipment | (832,294) | ||
Vehicles | (28,561) | ||
Buildings and improvements | (13,742) | ||
Office equipment | (11,743) | ||
Land | (393) | ||
Property and equipment, at cost | [1] | (886,733) | |
Less accumulated depreciation | [1] | 655,512 | |
Net property and equipment | $ (231,221) | ||
[1] | Represents the following fair value adjustments to property and equipment: Predecessor Fair Value Successor Drilling rigs and equipment $ 1,010,612 $ (832,294) $ 178,318 Vehicles 41,283 (28,561) 12,722 Building and improvements 16,619 (13,742) 2,877 Office equipment 12,231 (11,743) 488 Land 1,959 (393) 1,566 $ 1,082,704 $ (886,733) $ 195,971 Less: Accumulated Depreciation (655,512) 655,512 — $ 427,192 $ (231,221) $ 195,971 |
Emergence from Voluntary Reo_15
Emergence from Voluntary Reorganization under Chapter 11 / Fresh Start Accounting Fresh Start Accounting Adjustments - Fair Value Adjustment - Long Term Debt (Details) - USD ($) $ in Thousands | May 30, 2020 | May 31, 2020 | |
Fresh-Start Adjustment [Line Items] | |||
Discount on Senior Secured Notes | $ (3,125) | ||
Fresh-Start Adjustment, Increase (Decrease), Long-term Debt | 175,000 | $ 141,239 | |
Fresh Start Accounting Adjustments [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Fresh-Start Adjustment, Increase (Decrease), Long-term Debt | [1] | 20,070 | |
Liability Component [Member] | Convertible Debt [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Fair value adjustment to the liability component of the Convertible Notes | $ 23,195 | ||
[1] | Represents the following fair value adjustments to long-term debt less unamortized discount and debt issuance costs: Fair value adjustment to the liability component of the Convertible Notes $ 23,195 Discount on Senior Secured Notes (3,125) $ 20,070 Due to the Convertible Notes’ embedded conversion option, the liability and equity components were reported separately, as described further in Note 7, Debt . |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) | 5 Months Ended | 12 Months Ended | ||
May 31, 2020USD ($)drilling_rigs | Dec. 31, 2020USD ($)drilling_rigs | Dec. 31, 2019 | Mar. 31, 2020drilling_rigs | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Accounts Receivable Age Individually Reviewed For Collectibility | 90 days | |||
Concentration Risk, Percentage | 19.00% | 18.00% | ||
Drilling Services [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Payment Term In Days For Services Invoiced Average | 30 days | |||
Drilling Rigs | 25 | |||
Drilling Services [Member] | Earning Under Contract [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 16 | |||
Drilling Services [Member] | Daywork Drilling Contract [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Billing interval for daywork contracts | 15 days | |||
Drilling Services [Member] | Deployed under new contract during current period [Member] | Daywork Drilling Contract [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 7 | |||
Drilling Services [Member] | Domestic Drilling [Member] | Earning But Not Working [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Gain (Loss) on Contract Termination | $ | $ 1,600,000 | |||
Drilling Services [Member] | Domestic Drilling [Member] | Earning But Not Working [Member] | Currently Under Drilling Contract [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 3 | |||
Drilling Services [Member] | Domestic Drilling [Member] | Earning But Not Working [Member] | Not Under Drilling Contract [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 1 | |||
Drilling Services [Member] | Domestic Drilling [Member] | Term Contract [Member] | Earning Under Contract [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 6 | |||
Drilling Services [Member] | Domestic Drilling [Member] | Term Contract [Member] | Earning But Not Working [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 1 | |||
Drilling Services [Member] | International Drilling [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Contract assets, number of contracts | $ | 1 | |||
Drilling Services [Member] | International Drilling [Member] | Term Contract [Member] | Earning But Not Working [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Drilling Rigs | 2 | |||
Production Services [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Payment Term In Days For Services Invoiced Average | 30 days | |||
Minimum [Member] | Drilling Services [Member] | International Drilling [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Notice Period to Cancel Contract | 15 days | |||
Maximum [Member] | Drilling Services [Member] | International Drilling [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Notice Period to Cancel Contract | 30 days | |||
Maximum [Member] | Production Services [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Typical Revenue Contract Duration | 30 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 1,988 | $ 1,164 | $ 824 | $ 1,423 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 1,164 | (587) | (167) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ 0 | $ 237 | $ 432 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Deferred Revenues and Costs (Details) - Drilling Services [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenues and Costs, Classified | ||
Current deferred revenues | $ 1,019 | $ 1,339 |
Current deferred costs | 361 | 1,071 |
Current contract assets | 300 | 0 |
Noncurrent deferred revenues | 0 | 57 |
Noncurrent deferred costs | $ 194 | $ 267 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Amortization of Deferred Revenues and Costs (Details) - Drilling Services [Member] - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Revenue Arrangement [Line Items] | |||
Amortization of deferred revenues | $ 2,705 | $ 1,024 | $ 6,203 |
Amortization of deferred costs | $ 1,876 | $ 659 | $ 4,786 |
Property and Equipment (Schedul
Property and Equipment (Schedule of estimated useful lives and costs of asset classes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 193,529 | $ 1,119,546 |
Drilling rigs and equipment | Drilling Services [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 136,982 | |
Drilling rigs and equipment | Drilling Services [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Drilling rigs and equipment | Drilling Services [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Well servicing rigs and equipment | Production Services [Member] | Well Servicing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 32,346 | |
Well servicing rigs and equipment | Production Services [Member] | Well Servicing [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Well servicing rigs and equipment | Production Services [Member] | Well Servicing [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 17 years | |
Wireline units and equipment | Production Services [Member] | Wireline Services [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,057 | |
Wireline units and equipment | Production Services [Member] | Wireline Services [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Wireline units and equipment | Production Services [Member] | Wireline Services [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,128 | |
Vehicles | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Vehicles | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,702 | |
Building and improvements | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Building and improvements | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 478 | |
Office equipment | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Office equipment | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Property and equipment not yet placed in service | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 0 years | |
Property, Plant and Equipment, Gross | $ 1,207 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 0 years | |
Property, Plant and Equipment, Gross | $ 1,629 |
Property and Equipment (Details
Property and Equipment (Details) $ in Thousands | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2020USD ($)drilling_rigswireline_tubing_units | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Assets held for sale | $ 3,608 | $ 3,447 | ||
Asset Impairment Charges | $ 17,853 | 742 | 2,667 | |
Capital Expenditures | 8,924 | 5,770 | 44,829 | |
Gain (Loss) on Disposition of Property Plant Equipment | 989 | 6,132 | 4,513 | |
Production Services [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital Expenditures | 3,768 | 969 | 20,828 | |
Production Services [Member] | Wireline Services [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital Expenditures | 1,684 | $ 320 | 5,907 | |
Wireline Units | wireline_tubing_units | 76 | |||
Production Services [Member] | Coiled Tubing Services [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Assets held for sale | $ 3,300 | |||
Asset Impairment Charges | $ 16,400 | |||
Capital Expenditures | 166 | 0 | 4,736 | |
Drilling Services [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital Expenditures | 5,135 | $ 4,801 | 22,701 | |
Drilling Rigs | drilling_rigs | 25 | |||
Drilling Services [Member] | Domestic Drilling [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital Expenditures | 3,862 | $ 4,327 | 17,889 | |
Drilling Services [Member] | International Drilling [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capital Expenditures | $ 1,273 | $ 474 | $ 4,812 |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Regional Offices | 15 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 2.1 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating Lease Renewal Term Options | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating Lease Renewal Term Options | 5 years |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | |||
Long-term operating lease expense | $ 1,080 | $ 853 | $ 3,699 |
Short-term operating lease expense | $ 4,456 | $ 3,370 | $ 15,187 |
Leases Operating Lease Maturiti
Leases Operating Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Within 1 year | $ 1,069 | $ 2,496 |
In the second year | 985 | 1,933 |
In the third year | 921 | 1,447 |
In the fourth year | 874 | 1,117 |
In the fifth year | 895 | 912 |
Thereafter | 299 | 811 |
Total undiscounted lease obligations | 5,043 | 8,716 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (532) | (818) |
Discounted value of operating lease obligations | 4,511 | 7,898 |
Noncurrent operating lease liabilities | 3,622 | 5,700 |
Other Current Liabilities [Member] | ||
Current operating lease liabilities | $ 889 | $ 2,198 |
Leases Supplemental Lease Infor
Leases Supplemental Lease Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Lease Information [Abstract] | ||
Weighted-average remaining lease term (in years) | 5 years | 4 years 6 months |
Weighted-average discount rate | 4.50% | 4.50% |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 475,000 |
Debt Instrument, Unamortized Discount | (1,869) |
Debt Issuance Costs, Net | (5,432) |
Long-term Debt | 467,699 |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | 175,000 |
Prepetition Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 300,000 |
Debt (Schedule of Principal Amo
Debt (Schedule of Principal Amount of Outstanding Long-Term Debt Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | May 29, 2020 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 132,763 | $ 129,771 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 77,439 | $ 78,100 |
Debt (Schedule of Convertible D
Debt (Schedule of Convertible Debt) (Details) - Convertible Debt [Member] - USD ($) $ in Thousands | May 29, 2020 | Dec. 31, 2020 | May 31, 2020 |
Debt Instrument [Line Items] | |||
Issuance proceeds, net of Backstop Commitment Premium | $ 120,187 | ||
Face Amount | 129,771 | $ 132,763 | |
Issuer discount | 63,737 | ||
Fair value | 193,508 | ||
Debt issuance costs | (3,484) | ||
Net carrying value at Fresh Start Reporting Date | 190,024 | ||
Liability Component [Member] | |||
Debt Instrument [Line Items] | |||
Issuance proceeds, net of Backstop Commitment Premium | 43,738 | ||
Face Amount | 47,225 | ||
Issuer discount | 23,195 | ||
Fair value | 70,420 | ||
Debt issuance costs | (1,268) | ||
Net carrying value at Fresh Start Reporting Date | 69,152 | ||
Equity Component [Member] | |||
Debt Instrument [Line Items] | |||
Issuance proceeds, net of Backstop Commitment Premium | 76,449 | ||
Face Amount | 82,546 | ||
Issuer discount | 40,542 | ||
Fair value | 123,088 | $ 123,088 | |
Debt issuance costs | (2,216) | ||
Net carrying value at Fresh Start Reporting Date | $ 120,872 |
Debt (Schedule of Unamortized D
Debt (Schedule of Unamortized Debt Issuance Costs and Discount) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | May 29, 2020 | Dec. 31, 2019 |
Schedule of Unamortized Debt Issuance Costs and Discount [Line Items] | |||
Unamortized discount | $ 1,869 | ||
Unamortized Debt Issuance Costs | $ 3,714 | ||
Convertible Debt [Member] | |||
Schedule of Unamortized Debt Issuance Costs and Discount [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 20.90% | ||
Unamortized discount | 56,438 | ||
Senior Notes [Member] | |||
Schedule of Unamortized Debt Issuance Costs and Discount [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 13.20% | ||
Unamortized discount | $ 2,733 |
Debt (Details)
Debt (Details) | May 29, 2020USD ($)shares$ / shares | Nov. 08, 2017USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 07, 2020USD ($) | Mar. 18, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||
Percent of ordinary shares exchanged for cancelled notes | 94.25% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Proceeds from Issuance of Debt | $ 195,187,000 | $ 0 | $ 0 | ||||||||
Current portion of long-term debt | $ 150,000 | $ 150,000 | 150,000 | $ 0 | |||||||
Convertible Debt [Member] | |||||||||||
Convertible Notes Payable [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 129,771,000 | 132,763,000 | 132,763,000 | 132,763,000 | |||||||
Proceeds from debt issuance | 120,187,000 | ||||||||||
Rights offering commitment amount | $ 9,600,000 | $ 9,600,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Debt Instrument, Convertible, Conversion Ratio | 75 | ||||||||||
Debt Instrument, Convertible, Number of Equity Instruments | shares | 9,732,825 | ||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 13.33 | ||||||||||
Debt Instrument, Required Repurchase Due to Change in Control, Redemption Price, Percentage | 100.00% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 129,771,000 | 132,763,000 | 132,763,000 | 132,763,000 | |||||||
Debt Instrument, Original Issue Discount | $ (63,737,000) | ||||||||||
Debt Instrument, Required Repurchase Due to Change in Control, Redemption Price, Percentage | 100.00% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 129,771,000 | 132,763,000 | 132,763,000 | 132,763,000 | |||||||
Predecessor Senior Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 129,771,000 | 132,763,000 | 132,763,000 | 132,763,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Line of credit facility, outstanding borrowings | 0 | 0 | 0 | ||||||||
Letters of Credit Outstanding, Amount | 7,300,000 | 7,300,000 | 7,300,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 15,900,000 | 15,900,000 | 15,900,000 | ||||||||
Line of Credit [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 40,000,000 | |||||||||
Debt Instrument, Covenant Compliance, Capital Expenditure Limitation, Percentage of Annual Budget | 125.00% | ||||||||||
Line of Credit, Maximum Amount of Pledged Cash included in Minimum Availability to Require Additional Fixed Charge Coverage Ratio Compliance | $ 3,000,000 | ||||||||||
Line of credit, Maximum Amount of Pledged Cash included in Minimum Line Availability | 2,000,000 | ||||||||||
Prepetition Asset-based Lending Facility [Abstract] | |||||||||||
Maximum borrowing capacity | 75,000,000 | $ 40,000,000 | |||||||||
Line of Credit [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Line of Credit, Minimum Availability to Require Additional Fixed Charge Coverage Ratio Compliance | $ 6,000,000 | ||||||||||
Line of Credit, Minimum Availability (as % of Maximum) to Require Additional Fixed Charge Coverage Ratio Compliance | 15.00% | ||||||||||
Debt Instrument, Covenant Compliance, Fixed Charge Coverage Ratio, Required Minimum | 1 | ||||||||||
Line of Credit, Minimum Availability Requirement | $ 4,000,000 | ||||||||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt instrument, reference rate, minimum | 0.00% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt instrument, reference rate, minimum | 0.00% | ||||||||||
Line of Credit [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||
Senior Notes [Member] | |||||||||||
Convertible Notes Payable [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 78,100,000 | 77,439,000 | 77,439,000 | 77,439,000 | |||||||
Debt Instrument, Required Repurchase Due to Change in Control, Redemption Price, Percentage | 101.00% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 78,100,000 | 77,439,000 | 77,439,000 | 77,439,000 | |||||||
Proceeds from Issuance of Debt | 75,000,000 | ||||||||||
Debt Instrument, Original Issue Discount | $ 3,100,000 | ||||||||||
Debt Instrument, Issuer's Optional Repurchase Due to Change in Control Prior to June 1, 2022, Redemption Price, Percentage | 103.00% | ||||||||||
Debt Instrument, Required Repurchase Due to Change in Control, Redemption Price, Percentage | 101.00% | ||||||||||
Proceeds from Qualifying Sales of Property and Equipment | 7,600,000 | ||||||||||
Debt Instrument, Offer to Purchase | 200,000 | 2,600,000 | |||||||||
Write off of Deferred Debt Issuance Cost | 200,000 | ||||||||||
Current portion of long-term debt | 200,000 | 200,000 | 200,000 | ||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 78,100,000 | 77,439,000 | 77,439,000 | 77,439,000 | |||||||
Predecessor Senior Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 78,100,000 | $ 77,439,000 | $ 77,439,000 | $ 77,439,000 | |||||||
Senior Notes [Member] | Minimum [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Covenant Compliance, Asset Coverage Ratio, Required Minimum | 1.5 | ||||||||||
Term Loan [Member] | |||||||||||
Convertible Notes Payable [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 175,000,000 | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | 175,000,000 | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 175,000,000 | ||||||||||
Debt Instrument, Original issue discount Rate, Percentage | 2.00% | ||||||||||
Predecessor Senior Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 175,000,000 | ||||||||||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.75% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.75% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.75% | ||||||||||
Term Loan [Member] | Base Rate [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.75% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.75% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.75% | ||||||||||
Prepetition Asset-Based Lending Facility | Maximum [Member] | Line of Credit [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Maximum borrowing capacity | $ 75,000,000 | ||||||||||
Prepetition Asset-based Lending Facility [Abstract] | |||||||||||
Maximum borrowing capacity | 75,000,000 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity, Letters of Credit Sub-Limit | $ 30,000,000 | ||||||||||
Prepetition Senior Notes [Member] | |||||||||||
Convertible Notes Payable [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Face Amount | 300,000,000 | ||||||||||
Predecessor Senior Notes [Abstract] | |||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||||||
Subsequent Event [Member] | Senior Notes [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Proceeds from Qualifying Sales of Property and Equipment | $ 500,000 | ||||||||||
Debt Instrument, Offer to Purchase | $ 600,000 | ||||||||||
Commencing up to May 15, 2024 [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 9.50% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 9.50% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 9.50% | ||||||||||
Commencing up to May 15, 2024 [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt instrument, reference rate, minimum | 1.50% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt instrument, reference rate, minimum | 1.50% | ||||||||||
Due on or prior to May 29, 2021 [Member] | Senior Notes [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Portion of Interest due in Cash, Percentage | 50.00% | ||||||||||
Debt Instrument, Portion of Interest due In-Kind, Percentage | 50.00% | ||||||||||
Debt Instrument, Portion of Interest due in-Kind at Majority Noteholder's Election, Percentage | 100.00% | ||||||||||
Commencing on or after May 15, 2024 [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 10.50% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 10.50% | ||||||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 10.50% | ||||||||||
Commencing on or after May 15, 2024 [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||
ABL Credit Facility [Abstract] | |||||||||||
Debt instrument, reference rate, minimum | 1.50% | ||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt instrument, reference rate, minimum | 1.50% | ||||||||||
Debt Instrument, Redemption, twelve-month period beginning June 1, 2021 [Member] | Senior Notes [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 104.00% | ||||||||||
Debt Instrument, Redemption, twelve-month period beginning June 1, 2022 [Member] | Senior Notes [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 102.00% | ||||||||||
Debt Instrument, Redemption, twelve-month period beginning June 1, 2023 [Member] | Senior Notes [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||||||||
Debt Instrument, Redemption, twelve-month period beginning June 1, 2024 [Member] | Senior Notes [Member] | |||||||||||
Senior Secured Notes [Abstract] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | May 31, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debtor Reorganization Items, Cancellation of Debt Income | $ 229,000 | ||||||
Foreign general corporate tax rate, previously in effect | 33.00% | ||||||
Foreign general corporate tax rate, as amended | 30.00% | ||||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 82,901 | $ 82,901 | $ 110,834 | ||||
Deferred Tax Assets, Valuation Allowance | (74,676) | $ (74,676) | (59,842) | ||||
Foreign Tax Authority [Member] | |||||||
Reversal of valuation allowance on foreign operations | $ 0 | $ 0 | $ (14,756) | ||||
Minimum [Member] | Foreign Tax Authority [Member] | |||||||
Open Tax Year | 2015 | ||||||
Minimum [Member] | Domestic Tax Authority [Member] | |||||||
Open Tax Year | 2017 | ||||||
Loss Generated After 2017 [Member] | Domestic Tax Authority [Member] | |||||||
Net Operating Loss Limit of Taxable Income, Tax Reform Act, Provisions in Effect | 80.00% | ||||||
Loss Generated After 2016 [Member] | Foreign Tax Authority [Member] | |||||||
Operating Loss Carryforwards, Statutory Carryforward Period | 12 years |
Taxes Schedule of Income before
Taxes Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (98,773) | $ (36,216) | $ (85,133) |
Foreign | (7,238) | (6,824) | 11,900 |
Income (loss) before income taxes | $ (106,011) | $ (43,040) | $ (73,233) |
Taxes Schedule of Components of
Taxes Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax: | |||
Federal | $ (67) | $ (55) | $ (206) |
State | 86 | 88 | 663 |
Foreign | 189 | 309 | 654 |
Current Income Tax Expense (Benefit) | 208 | 342 | 1,111 |
Deferred taxes: | |||
State | (3,347) | (123) | 729 |
Foreign | 1,353 | (3,035) | (11,169) |
Deferred Income Tax Expense (Benefit) | (1,994) | (3,158) | (10,440) |
Income tax benefit | $ (1,786) | $ (2,816) | $ (9,329) |
Taxes Schedule of Effective Inc
Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Expected tax expense (benefit) | $ (22,262) | $ (9,038) | $ (15,379) |
Valuation allowance | 10,623 | 2,579 | 12,638 |
State income taxes | 73 | (28) | 614 |
GILTI tax | 0 | 0 | 1,579 |
Stock-based compensation | 1,449 | 0 | 595 |
Compensation expense nondeductible for tax purposes | 0 | 784 | 1,684 |
Reorganization and restructuring costs | 7,528 | 2,418 | 1,388 |
Convertible Notes interest and issuance costs | 0 | 1,838 | 0 |
Other nondeductible expenses for tax purposes | 190 | (4) | 575 |
Other, net | (429) | (247) | 51 |
Income tax benefit | (1,786) | (2,816) | (9,329) |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Reversal of valuation allowance on foreign operations | 0 | 0 | (14,756) |
Foreign currency translation loss (gain) | 1,579 | (891) | 742 |
Net tax benefits and nondeductible expenses in foreign jurisdictions | $ (537) | $ (227) | $ 940 |
Taxes Schedule of Deferred Tax
Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Components of Deferred Tax Assets [Abstract] | ||
Net operating loss carryforward | $ 82,901 | $ 110,834 |
Intangibles | 7,653 | 12,145 |
Interest expense deduction limitation carryforward | 3,200 | 6,649 |
Employee stock-based compensation | 63 | 3,124 |
Employee benefits and insurance claims accruals | 866 | 2,422 |
Operating lease liabilities | 1,027 | 1,832 |
Accounts receivable reserve | 278 | 187 |
Inventory | 918 | 202 |
Accrued expenses | 451 | 233 |
Deferred revenue | 0 | 124 |
Deferred Tax Assets, Gross | 97,357 | 137,752 |
Valuation allowance | (74,676) | (59,842) |
Components of Deferred Tax Liabilities [Abstract] | ||
Property and equipment | (9,816) | (68,694) |
Operating lease assets | (998) | (1,686) |
Unbilled revenue | (68) | (407) |
Deferred Tax Assets, Net | $ 11,799 | $ 7,123 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Reconciliation of Earnings (loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss (numerator for basic EPS) | $ (104,225) | $ (40,224) | $ (63,904) |
Interest on Convertible Notes, net of tax | 0 | 0 | 0 |
Numerator for diluted EPS, if-converted method | $ (104,225) | $ (40,224) | $ (63,904) |
Denominator: | |||
Weighted-average shares (denominator for basic EPS) | 78,968 | 1,117 | 78,423 |
Potentially dilutive shares issuable from Convertible Notes, if-converted method | 0 | 0 | 0 |
Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method | 0 | 0 | 0 |
Denominator for diluted EPS | 78,968 | 1,117 | 78,423 |
Loss per common share - Basic | $ (1.32) | $ (36.01) | $ (0.81) |
Loss per common share - Diluted | $ (1.32) | $ (36.01) | $ (0.81) |
Potentially dilutive securities excluded as anti-dilutive | 4,517 | 9,782 | 4,842 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Schedule of Allocation of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 552 | $ 1,249 | $ 2,770 |
Phantom stock compensation expense | 0 | 0 | |
Stock Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 9 | 0 | 137 |
Restricted Stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 202 | 1,249 | 504 |
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 341 | 0 | 2,129 |
Phantom Share Units (PSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Phantom stock compensation expense | $ 0 | $ 0 | $ (112) |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2020USD ($)shares | Jul. 31, 2020USD ($)shares | May 29, 2020shares | May 31, 2020USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common Stock, Issued, Conversion Ratio | 0.0006849838 | |||||
Accelerated stock-based compensation | $ | $ 713 | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized for Issuance under Incentive Plan | shares | 1,198,074 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Available for Grant as a Percentage of Shares Issued at Effective Date, Percentage | 114.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Available for Grant as a Percentage of Shares Fully Diluted, Percentage | 10.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 1,000 | |||||
Number of Shares Available for Grant | shares | 599,035 | 599,035 | 599,035 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 509,039 | 90,000 | ||||
Award Vesting Period | 3 years | |||||
Weighted average grant date awards granted, fair value | $ / shares | $ 10.81 | |||||
Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 5,200 | $ 5,200 | $ 5,200 | |||
Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days |
Employee Benefit Plans and In_3
Employee Benefit Plans and Insurance (Details) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)$ / employees | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Self Insurance Program, Workers' Compensation Coverage per Incident, Maximum | $ / employees | 500,000 | |||
Self Insurance Program, Major Medical and Hospitialization, Liability per Employee or Dependent per Year, Maximum | $ / employees | 225,000 | |||
Self Insurance Program, Auto Liability Insurance, Deductible per Occurrence | $ / employees | 250,000 | |||
Self Insurance Program, General Liability Insurance, Self-Insured Retention | $ 500,000 | |||
Self Insurance Program, General Liability Insurance, Additional Aggregate Deductible | 500,000 | |||
Self Insurance Program, General Liability Insurance, Annual Aggregate Deductible | $ 1,000,000 | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,473,000 | $ 114,000 | $ 5,277,000 |
Employee Benefit Plans and In_4
Employee Benefit Plans and Insurance Schedule of Defined Contributions (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,473 | $ 114 | $ 5,277 |
Employee Benefit Plans and In_5
Employee Benefit Plans and Insurance Schedule of Accrued Insurance Liabilities, Self-Insurance Program (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Insurance Liabilities, Self-Insurance Program [Line Items] | ||
Accrued Insurance, Current | $ 3,928 | $ 5,940 |
Workers' compensation [Member] | ||
Accrued Insurance Liabilities, Self-Insurance Program [Line Items] | ||
Accrued Insurance, Current | 1,976 | 3,269 |
Health insurance [Member] | ||
Accrued Insurance Liabilities, Self-Insurance Program [Line Items] | ||
Accrued Insurance, Current | 646 | 1,282 |
General liability and auto liability [Member] | ||
Accrued Insurance Liabilities, Self-Insurance Program [Line Items] | ||
Accrued Insurance, Current | $ 1,306 | $ 1,389 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020segments | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 4 |
Drilling Services [Member] | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 2 |
Drilling Services [Member] | United States [Member] | Domestic Drilling [Member] | |
Segment Reporting Information [Line Items] | |
Drilling Divisions | 3 |
Production Services [Member] | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 2 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information) (Details) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2020USD ($) | Dec. 31, 2020USD ($)drilling_rigs | Dec. 31, 2019USD ($)drilling_rigs | ||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 142,370 | $ 103,874 | $ 575,792 | |||
Operating costs | 114,047 | 78,198 | 431,353 | |||
Gross margin | 28,323 | 25,676 | 144,439 | |||
Identifiable assets | 352,623 | 314,430 | 673,954 | |||
Depreciation and amortization | 35,647 | 33,613 | 90,884 | |||
Capital Expenditures | 8,924 | 5,770 | 44,829 | |||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Identifiable assets | 65,057 | 55,474 | 47,698 | |||
Depreciation and amortization | 373 | 332 | 944 | |||
Capital Expenditures | 21 | 0 | 1,300 | |||
Drilling Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 69,269 | 56,425 | 240,701 | |||
Operating costs | 46,777 | 36,375 | 157,190 | |||
Gross margin | 22,492 | 20,050 | 83,511 | |||
Identifiable assets | 207,894 | 190,145 | 407,062 | |||
Depreciation and amortization | 20,202 | 21,938 | 48,827 | |||
Capital Expenditures | 5,135 | $ 4,801 | 22,701 | |||
Drilling Rigs | drilling_rigs | 25 | |||||
Drilling Services [Member] | Domestic Drilling [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 53,341 | $ 44,205 | 151,769 | |||
Operating costs | 33,101 | 26,846 | 92,183 | |||
Gross margin | 20,240 | 17,359 | 59,586 | |||
Identifiable assets | 158,283 | 145,916 | [1] | 347,036 | [1] | |
Depreciation and amortization | 18,058 | 14,363 | 43,162 | |||
Capital Expenditures | 3,862 | 4,327 | 17,889 | |||
Intercompany receivable (payable) | 28,400 | 36,100 | ||||
Drilling Services [Member] | International Drilling [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 15,928 | 12,220 | 88,932 | |||
Operating costs | 13,676 | 9,529 | 65,007 | |||
Gross margin | 2,252 | 2,691 | 23,925 | |||
Identifiable assets | [2] | 49,611 | 44,229 | [1] | 60,026 | [1] |
Depreciation and amortization | 2,144 | 7,575 | 5,665 | |||
Capital Expenditures | 1,273 | 474 | 4,812 | |||
Intercompany receivable (payable) | $ (28,400) | $ (36,100) | ||||
Drilling Services [Member] | Drilling Rigs | International Drilling [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Drilling Rigs | drilling_rigs | 5 | 5 | ||||
Drilling Services [Member] | Assets Leased From Others [Member] | International Drilling [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Drilling Rigs | drilling_rigs | 3 | 3 | ||||
Production Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 73,101 | $ 47,449 | $ 335,091 | |||
Operating costs | 67,270 | 41,823 | 274,163 | |||
Gross margin | 5,831 | 5,626 | 60,928 | |||
Identifiable assets | 79,672 | 68,811 | 219,194 | |||
Depreciation and amortization | 15,072 | 11,343 | 41,113 | |||
Capital Expenditures | 3,768 | 969 | 20,828 | |||
Production Services [Member] | Well Servicing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 31,947 | 30,739 | 115,715 | |||
Operating costs | 26,877 | 24,325 | 83,461 | |||
Gross margin | 5,070 | 6,414 | 32,254 | |||
Identifiable assets | 49,388 | 44,138 | 116,473 | |||
Depreciation and amortization | 7,820 | 8,023 | 19,894 | |||
Capital Expenditures | 1,918 | 649 | 10,185 | |||
Production Services [Member] | Wireline Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 35,543 | 16,710 | 172,931 | |||
Operating costs | 31,836 | 17,090 | 151,145 | |||
Gross margin | 3,707 | (380) | 21,786 | |||
Identifiable assets | 23,948 | 21,182 | 71,887 | |||
Depreciation and amortization | 5,088 | 3,320 | 14,772 | |||
Capital Expenditures | 1,684 | 320 | 5,907 | |||
Production Services [Member] | Coiled Tubing Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 5,611 | 0 | 46,445 | |||
Operating costs | 8,557 | 408 | 39,557 | |||
Gross margin | (2,946) | (408) | 6,888 | |||
Identifiable assets | 6,336 | 3,491 | 30,834 | |||
Depreciation and amortization | 2,164 | 0 | 6,447 | |||
Capital Expenditures | $ 166 | $ 0 | $ 4,736 | |||
[1] | Identifiable assets for our drilling segments include the impact of a $28.4 million and $36.1 million intercompany balance, as of December 31, 2020 and 2019, respectively, between our domestic drilling segment (intercompany receivable) and our international drilling segment (intercompany payable). | |||||
[2] | Identifiable assets for our international drilling segment include five drilling rigs that are owned by our Colombia subsidiary and three drilling rigs that are owned by one of our domestic subsidiaries and leased to our Colombia subsidiary. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | |||
Consolidated Gross Margin | $ 28,323 | $ 25,676 | $ 144,439 |
Depreciation and amortization | (35,647) | (33,613) | (90,884) |
General and administrative | (22,047) | (24,055) | (91,185) |
Prepetition restructuring charges | (16,822) | 0 | 0 |
Impairment | (17,853) | (742) | (2,667) |
Bad debt (expense) recovery, net | (1,209) | 227 | 79 |
Gain on dispositions of property and equipment, net | (989) | (6,132) | (4,513) |
Loss from operations | $ (64,266) | $ (26,375) | $ (35,705) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Sales and Use Tax [Member] | ||
Commitments and Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 0.9 | $ 2 |
International Customs Duty | Not probable | ||
Commitments and Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 2.5 |
Uncategorized Items - pes-20201
Label | Element | Value |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ 1,149,000 |
Treasury Stock [Member] | ||
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | (5,098,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (5,098,000) |
Treasury Stock, Common, Shares | us-gaap_TreasuryStockCommonShares | 1,142,000 |
Stockholders Equity Shares Elimination as Part of Reorganization | pes_StockholdersEquitySharesEliminationasPartofReorganization | (1,142,000) |
Retained Earnings [Member] | ||
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ (556,277,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (556,277,000) |
Common Stock [Member] | ||
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ 8,893,000 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 88,930,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 8,893,000 |
Stockholders Equity Shares Elimination as Part of Reorganization | pes_StockholdersEquitySharesEliminationasPartofReorganization | (88,930,000) |
Additional Paid-in Capital [Member] | ||
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ 553,631,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 553,631,000 |