Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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(b) Security | ||
Trading Symbol | ||
Security Exchange Name | ||
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 1,822,670 | |
Entity Central Index Key | 0000320575 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 28,963 | $ 31,181 |
Restricted cash | 1,298 | 1,148 |
Receivables: | ||
Trade, net of allowance for doubtful accounts | 32,183 | 29,803 |
Unbilled receivables | 8,094 | 4,740 |
Insurance recoveries | 21,246 | 22,106 |
Other receivables | 2,676 | 2,716 |
Inventory | 12,384 | 12,641 |
Assets held for sale | 1,605 | 3,608 |
Prepaid expenses and other current assets | 3,827 | 5,190 |
Total current assets | 112,276 | 113,133 |
Property and equipment, at cost | 199,971 | 193,529 |
Less accumulated depreciation | 55,137 | 31,760 |
Net property and equipment | 144,834 | 161,769 |
Intangible assets, net of accumulated amortization | 8,473 | 8,942 |
Deferred income taxes | 12,908 | 12,746 |
Operating lease assets | 3,972 | 4,383 |
Other noncurrent assets | 12,348 | 13,457 |
Total assets | 294,811 | 314,430 |
Current liabilities: | ||
Accounts payable | 20,096 | 17,516 |
Current portion of long-term debt | 300 | 150 |
Deferred revenues | 955 | 1,019 |
Accrued expenses: | ||
Employee compensation and related costs | 8,879 | 7,325 |
Insurance claims and settlements | 21,246 | 22,106 |
Insurance premiums and deductibles | 3,671 | 3,928 |
Interest | 2,002 | 2,015 |
Other | 3,878 | 4,959 |
Total current liabilities | 61,027 | 59,018 |
Long-term debt, less unamortized discount and debt issuance costs | 151,709 | 147,167 |
Noncurrent operating lease liabilities | 3,210 | 3,622 |
Deferred income taxes | 1,739 | 947 |
Other noncurrent liabilities | 1,783 | 1,779 |
Total liabilities | $ 219,468 | $ 212,533 |
Shareholders' equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Successor common stock, $0.001 par value; 25,000,000 shares authorized; 1,840,641 and 1,647,224 shares outstanding at June 30, 2021 and December 31, 2020, respectively | $ 2 | $ 2 |
Additional paid-in capital | 147,126 | 142,119 |
Accumulated deficit | (71,785) | (40,224) |
Total shareholders' equity | 75,343 | 101,897 |
Total liabilities and stockholders' equity | $ 294,811 | $ 314,430 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares outstanding | 1,840,641 | 1,647,224 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended |
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2021 | May 31, 2020 | Jun. 30, 2021 | |
Revenues: | |||||
Revenues | $ 11,163 | $ 28,048 | $ 59,526 | $ 142,370 | $ 118,264 |
Costs and expenses: | |||||
Operating costs | 8,743 | 22,025 | 46,397 | 114,047 | 91,723 |
Depreciation and amortization | 5,236 | 13,663 | 11,944 | 35,647 | 25,309 |
General and administrative | 4,213 | 7,392 | 10,997 | 22,047 | 20,710 |
Prepetition restructuring charges | 0 | (252) | 0 | 16,822 | 0 |
Impairment | 388 | 0 | 0 | 17,853 | 0 |
Bad debt expense (recovery), net | (283) | 482 | (198) | 1,209 | (395) |
Gain on dispositions of property and equipment, net | (460) | (272) | (1,072) | (989) | (3,370) |
Total costs and expenses | 17,837 | 43,038 | 68,068 | 206,636 | 133,977 |
Loss from operations | (6,674) | (14,990) | (8,542) | (64,266) | (15,713) |
Other income (expense): | |||||
Interest expense, net of interest capitalized | (2,215) | (4,135) | (6,698) | (12,294) | (13,232) |
Reorganization items, net | (1,144) | (15,240) | 239 | (21,903) | 93 |
Loss on extinguishment of debt | 0 | (3,723) | (109) | (4,215) | (192) |
Other income (expense), net | (230) | 2,212 | (176) | (3,333) | (2,726) |
Total other expense, net | (3,589) | (20,886) | (6,744) | (41,745) | (16,057) |
Loss before income taxes | (10,263) | (35,876) | (15,286) | (106,011) | (31,770) |
Income tax benefit | 446 | 755 | 667 | 1,786 | 209 |
Net loss | $ (9,817) | $ (35,121) | $ (14,619) | $ (104,225) | $ (31,561) |
Loss per common share - Basic | $ (9.37) | $ (0.44) | $ (12.01) | $ (1.32) | $ (26.79) |
Loss per common share - Diluted | $ (9.37) | $ (0.44) | $ (12.01) | $ (1.32) | $ (26.79) |
Weighted average number of shares outstanding - Basic | 1,048 | 79,288 | 1,217 | 78,968 | 1,178 |
Weighted average number of shares outstanding - Diluted | 1,048 | 79,288 | 1,217 | 78,968 | 1,178 |
Condensed Consolidated Statem_2
Condensed 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 | (877,000) | ||||
Common stock, shares, outstanding at Dec. 31, 2019 | 80,079,000 | ||||
Beginning Balance, value at Dec. 31, 2019 | $ 104,076 | $ 8,008 | $ (5,090) | $ 553,210 | $ (452,052) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net loss | (69,104) | (69,104) | |||
Purchase of treasury stock, shares | (165,000) | ||||
Purchase of treasury stock, value | (7) | $ (7) | |||
Equity awards vested or exercised, shares | 542,000 | ||||
Equity awards vested, issued, or exercised, value | $ (54) | 54 | |||
Stock-based compensation expense | 328 | 328 | |||
Common stock, shares, outstanding at Mar. 31, 2020 | 80,621,000 | ||||
Ending Balance, value at Mar. 31, 2020 | 35,293 | $ 8,062 | (5,097) | 553,484 | (521,156) |
Common stock, shares, outstanding at Dec. 31, 2019 | 80,079,000 | ||||
Beginning Balance, value at Dec. 31, 2019 | 104,076 | $ 8,008 | (5,090) | 553,210 | (452,052) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net loss | (104,225) | ||||
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 | (1,042,000) | ||||
Common stock, shares, outstanding at Mar. 31, 2020 | 80,621,000 | ||||
Beginning Balance, value at Mar. 31, 2020 | 35,293 | $ 8,062 | $ (5,097) | 553,484 | (521,156) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net loss | (35,121) | (35,121) | |||
Purchase of treasury stock, shares | (100,000) | ||||
Purchase of treasury stock, value | (1) | $ (1) | |||
Equity awards vested or exercised, shares | 363,000 | ||||
Equity awards vested, issued, or exercised, value | $ (36) | 36 | |||
Stock-based compensation expense | 978 | 978 | |||
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 loss | (9,817) | (9,817) | |||
Purchase of treasury stock, shares | 1,000 | ||||
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 | |||
Common stock, shares, outstanding at Jun. 30, 2020 | 1,050,000 | ||||
Ending Balance, value at Jun. 30, 2020 | $ 129,142 | $ 1 | $ 0 | 138,958 | (9,817) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | (1,000) | ||||
Treasury Stock, Shares | (1,000) | ||||
Common stock, shares, outstanding at Dec. 31, 2020 | 1,647,224 | 1,649,000 | |||
Beginning Balance, value at Dec. 31, 2020 | $ 101,897 | $ 2 | $ 0 | 142,119 | (40,224) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net loss | (16,942) | (16,942) | |||
Stock-based compensation expense | 830 | 830 | |||
Common stock, shares, outstanding at Mar. 31, 2021 | 1,649,000 | ||||
Ending Balance, value at Mar. 31, 2021 | $ 85,785 | $ 2 | 0 | 142,949 | (57,166) |
Common stock, shares, outstanding at Dec. 31, 2020 | 1,647,224 | 1,649,000 | |||
Beginning Balance, value at Dec. 31, 2020 | $ 101,897 | $ 2 | 0 | 142,119 | (40,224) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net loss | $ (31,561) | ||||
Common stock, shares, outstanding at Jun. 30, 2021 | 1,840,641 | 1,842,000 | |||
Ending Balance, value at Jun. 30, 2021 | $ 75,343 | $ 2 | $ 0 | 147,126 | (71,785) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | (1,000) | ||||
Common stock, shares, outstanding at Mar. 31, 2021 | 1,649,000 | ||||
Beginning Balance, value at Mar. 31, 2021 | 85,785 | $ 2 | $ 0 | 142,949 | (57,166) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net loss | (14,619) | (14,619) | |||
Payment of in-kind interest on Convertible Notes | 2,124 | 2,124 | |||
Equity awards vested or exercised, shares | 193,000 | ||||
Stock-based compensation expense | $ 2,053 | 2,053 | |||
Common stock, shares, outstanding at Jun. 30, 2021 | 1,840,641 | 1,842,000 | |||
Ending Balance, value at Jun. 30, 2021 | $ 75,343 | $ 2 | $ 0 | $ 147,126 | $ (71,785) |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Treasury Stock, Shares | (1,000) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (9,817) | $ (104,225) | $ (31,561) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 5,236 | 35,647 | 25,309 |
Allowance for doubtful accounts, net of recoveries | (283) | 1,209 | (395) |
Gain on dispositions of property and equipment, net | (460) | (989) | (3,370) |
Reorganization items, net | 0 | 18,713 | 0 |
Stock-based compensation expense | 0 | 552 | 2,883 |
Amortization of debt issuance costs and discount | 766 | 1,084 | 5,323 |
Interest paid in-kind | 0 | 0 | 4,376 |
Loss on extinguishment of debt | 0 | 4,215 | 192 |
Impairment | 388 | 17,853 | 0 |
Deferred income taxes | (399) | (546) | 631 |
Change in other noncurrent assets | (36) | (800) | 252 |
Change in other noncurrent liabilities | 355 | 1,524 | (257) |
Changes in current assets and liabilities: | |||
Receivables | 7,395 | 44,041 | (4,503) |
Inventory | 240 | 1,441 | 278 |
Prepaid expenses and other current assets | 133 | 1,121 | 1,476 |
Accounts payable | 1,216 | (15,174) | 2,788 |
Deferred revenues | 522 | (1,219) | (65) |
Accrued expenses | (539) | (6,692) | 179 |
Net cash provided by (used in) operating activities | 4,717 | (2,245) | 3,536 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (900) | (10,848) | (8,662) |
Proceeds from sale of property and equipment | 752 | 1,665 | 6,058 |
Proceeds from insurance recoveries | 0 | 22 | 0 |
Net cash used in investing activities | (148) | (9,161) | (2,604) |
Cash flows from financing activities: | |||
Debt repayments | 0 | (175,000) | (3,000) |
Proceeds from Issuance of Debt | 0 | 195,187 | 0 |
Proceeds from DIP Facility | 0 | 4,000 | 0 |
Repayment of DIP Facility | 0 | (4,000) | 0 |
DIP Facility issuance costs | 0 | (7,625) | 0 |
Purchase of treasury stock | 0 | (8) | 0 |
Net cash provided by (used in) financing activities | 0 | 12,554 | (3,000) |
Net decrease in cash, cash equivalents and restricted cash | 4,569 | 1,148 | (2,068) |
Beginning cash, cash equivalents, and restricted cash | 26,765 | 25,617 | 32,329 |
Ending cash, cash equivalents, and restricted cash | 31,334 | 26,765 | 30,261 |
Supplementary disclosure: | |||
Interest Paid | 9 | 8,105 | 3,440 |
Income tax paid | 118 | 893 | 1,027 |
Reorganization items paid | 784 | 14,947 | 0 |
Noncash investing and financing activity: | |||
Change in capital expenditure accruals | $ (188) | $ (1,924) | $ (290) |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 ā 17 International drilling ā 8 8 25 Our production services business segments provide a range of services to producers primarily in Texas, North Dakota and the Rocky Mountain region. As of June 30, 2021, 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 72 Basis of Presentation Subsequent Events ā In preparing the accompanying unaudited condensed consolidated financial statements, we have reviewed events that have occurred after June 30, 2021, through the filing of this Form 10-Q, for inclusion as necessary. On July 5, 2021, we entered into an Agreement and Plan of Merger (the āMerger Agreementā) with Patterson-UTI Energy, Inc., a Delaware corporation (āPattersonā), Crescent Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Patterson (āMerger Sub Inc.ā), and Crescent Ranch Second Merger Sub LLC, a Delaware limited liability company and wholly owned subsidiary of Patterson (āMerger Sub LLCā), pursuant to which, upon the terms and subject to the conditions set forth therein, (i) Merger Sub Inc. will merge with and into Pioneer Energy Services Corp. (āPioneerā), with Pioneer continuing as the surviving entity (the āSurviving Corporationā) (the āFirst Company Mergerā) and (ii) immediately following the First Company Merger, the Surviving Corporation will merge with and into Merger Sub LLC, with Merger Sub LLC continuing as the surviving entity (the āSurviving Companyā) (the āSecond Company Mergerā and, together with the First Company Merger, the āMergersā), which is described in more detail in Note 2, Subsequent Events . Basis of Presentation ā The accompanying unaudited condensed 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 unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of our management, all adjustments (consisting of normal, recurring accruals) necessary for a fair presentation have been included. We suggest that you read these unaudited condensed consolidated financial statements together with the consolidated financial statements and the related notes included in our annual report on Form 10-K for the year ended December 31, 2020. As described in Note 2, Emergence from Voluntary Reorganization under Chapter 11 , and Note 3, Fresh Start Accounting , to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2020, on March 1, 2020 (the āPetition Dateā), Pioneer and certain of our domestic subsidiaries (collectively, the āDebtorsā) filed voluntary petitions (the āBankruptcy Petitionsā) for reorganization under title 11 of the United States Code (the āBankruptcy Codeā) in the United States Bankruptcy Court for the Southern District of Texas (the āBankruptcy Courtā). On May 11, 2020, the Bankruptcy Court confirmed the plan of reorganization (the āPlanā) that was filed with the Bankruptcy Court on March 2, 2020, and on May 29, 2020 (the āEffective Dateā), the conditions to effectiveness of the plan were satisfied and we emerged from Chapter 11. Upon our emergence from Chapter 11, we adopted fresh start accounting in accordance with Accounting Standards Codification (ASC) Topic 852 and became a new entity for financial reporting purposes. As a result, the condensed consolidated financial statements after the Effective Date are not comparable with the consolidated financial statements on or before that date as indicated by the āblack lineā division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. References to āSuccessorā relate to our financial position and results of operations after the Effective Date. References to āPredecessorā refer to our financial position and results of operations on or before the Effective Date. Use of Estimates ā In preparing the accompanying unaudited condensed 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 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 workersā compensation insurance. Recently Issued Accounting Standards Changes to accounting principles generally accepted in the United States of America (āU.S. GAAPā) are established by the Financial Accounting Standards Board (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 āSECā). Other than those 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. ā¢ Convertible Instruments and Contracts in an Entityās Own Equity . In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entityās 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. ā¢ Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting and disclosure requirements for income taxes by, among other changes, removing certain exceptions and by clarifying certain aspects of the current accounting guidance. We adopted this ASU on January 1, 2021, and it did not have a material impact on our condensed consolidated financial statements. Additional Detail of Account Balances Restricted Cash ā 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 $0.3 million and $0.2 million of proceeds from asset sales received at June 30, 2021 and December 31, 2020, respectively, which were used to fund the redemption of Senior Secured Notes tendered in January and July 2021, respectively, as further described in Note 6, Debt . Other Receivables ā Our other receivables primarily consist of recoverable taxes related to our international operations, and, for December 31, 2020, refundable payroll tax credit receivables associated with the CARES Act. Prepaid Expenses and Other Current Assets ā 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. Other Noncurrent Assets ā Other noncurrent assets primarily consist of prepaid taxes in Colombia which are creditable against future income taxes, but also includes 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 workersā compensation insurance policies, and deferred compensation plan investments. Other Accrued Expenses ā 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Merger Agreement with Patterson-UTI On July 5, 2021, Pioneer entered into the Merger Agreement with Patterson, and Pattersonās wholly owned subsidiaries, Merger Sub Inc., and Merger Sub LLC, pursuant to which, upon the terms and subject to the conditions set forth therein, Merger Sub Inc. will merge with and into Pioneer, with Pioneer continuing as the surviving entity, which will then merge with and into Merger Sub LLC, which will continue as the surviving entity. Upon consummation of the merger transactions, Pioneer will be a wholly owned subsidiary of Patterson and will no longer be a registrant under the rules of the SEC. Under the terms of the Merger Agreement and as more fully described below, Pioneer will receive from Patterson aggregate consideration of up to 26,275,000 shares of common stock, par value $0.01 per share, of Patterson (āPatterson common stockā) and $30 million of cash. As more fully described in the Merger Agreement, all of Pioneerās debt is being retired in connection with the Mergers with a portion of such shares and cash with Pioneerās cash on hand determined in accordance with the Merger Agreement prior to closing (the āCompany Cashā). Pursuant to the Merger Agreement and subject to certain exceptions, holders of Common stock and holders of Convertible Notes will be issued shares of Patterson common stock according to an exchange ratio (the āExchange Ratioā) to be determined at the closing of the Mergers and the other transactions contemplated by the Merger Agreement (collectively, the āTransactionsā). The Exchange Ratio will equal the quotient obtained by dividing (i) 26,275,000 (subject to a downward adjustment as specified in the Merger Agreement if the average of the volume weighted average prices of the Patterson common stock during the 10 consecutive trading days ending with the last complete trading day prior to the closing date (āPatterson VWAPā) is greater than $11.00) less the shares of Patterson common stock to be delivered to the holders of the Senior Secured Floating Rate Notes due 2025 of Pioneer (the āSenior Notesā) as described below, by (ii) the aggregate number of shares of Common stock issued and outstanding immediately prior to the effective time of the First Company Merger (the āEffective Timeā) plus the number of shares of Common stock into which the Convertible Notes are convertible immediately prior to the Effective Time. The shares of common stock to be delivered to holders of common stock and Convertible Notes in the Transactions are referred to as the āMerger Consideration.ā Pursuant to the Merger Agreement, immediately prior to the Effective Time, subject to certain exceptions, each share of Common stock issued and outstanding will be converted into the right to receive a number of shares of Patterson common stock equal to the Exchange Ratio. Each share of Common stock held in treasury by Pioneer or owned directly or indirectly by Patterson or Merger Sub Inc. will be automatically cancelled and will cease to exist, and no consideration will be issued therefor. Additionally, the Convertible Notes will convert into shares of Common stock in accordance with their terms in connection with the closing of the Transactions and the holders will receive shares of Patterson common stock on the same basis as if such notes had been converted pursuant to physical settlement prior to the closing of the Transactions. Additionally, each award of restricted common stock granted under Pioneerās 2020 Employee Incentive Plan that is outstanding immediately prior to the merger transactions will become fully vested and treated as shares of Common stock. In connection with the closing under the Merger Agreement, the Senior Notes will be redeemed at a redemption price equal to 103% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to, but excluding, the closing date. In accordance with the Merger Agreement and the Third Supplemental Indenture to that certain Indenture, dated as of May 29, 2020, between the Company and Wilmington Trust, National Association, as trustee and security agent, as amended and supplemented by that certain First Supplemental Indenture, dated as of March 3, 2021, as further amended and supplemented by that certain Second Supplemental Indenture, dated as of May 11, 2021 (the āIndentureā), to be entered into in connection with the Transactions (the āThird Supplemental Indentureā), the redemption price will be paid in a combination of cash and shares of Patterson common stock, which will reduce the number of shares to be delivered to holders of Common stock and Convertible Notes. The amount of cash to be paid upon such redemption will not exceed an amount equal to $30 million plus Company Cash less the expenses to be paid by Pioneer in connection with the Transactions (the āCompany Expensesā) less amounts required to repay in full and retire any indebtedness outstanding under the ABL Credit Facility (and such payoff amount the āCompany ABL Payoff Amountā) and less the amount of accrued interest on the Convertible Notes (āAccrued Interestā). The number of shares of Patterson common stock to be delivered in such redemption will equal (i) the redemption price (including accrued interest) less $30 million less Company Cash, plus the Company Expenses, plus the Company ABL Payoff Amount and plus the Accrued Interest, divided by (ii) the product of (x) the average of the Patterson VWAP for the three consecutive trading days ending on the second trading day immediately preceding the closing date and (y) 0.8575. Each of Pioneer and Patterson makes representations and warranties in the Merger Agreement and is subject to interim operating covenants relating to the conduct of its respective business during the interim period between the execution of the Merger Agreement and the closing of the Transactions. The parties are required to use their reasonable best efforts to cause the Transactions to be consummated as promptly as reasonably practicable and to obtain any required regulatory approvals, subject to certain exceptions. The closing of the Transactions is subject to the satisfaction or waiver of certain closing conditions, including, among others, (i) the approval of the holders of at least sixty percent of the total voting power of all outstanding securities of Pioneer generally entitled to vote at a meeting of Pioneerās stockholders (including the Convertible Notes) (the āPioneer Stockholder Approvalā) pursuant to the terms of the Merger Agreement, (ii) the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act shall have expired or been terminated, (iii) there being no law, injunction or order by a governmental body prohibiting the consummation of the Mergers, (iv) the approval for listing of the Patterson common stock to be issued in connection with the First Company Merger on the NASDAQ, (v) the registration statement on Form S-4, to be filed with the SEC by Patterson, having been declared effective by the SEC, (vi) subject to specified materiality standards, the accuracy of the representations and warranties of the other party, (vii) compliance by each other party in all material respects with their respective covenants, (viii) the absence of a Company Material Adverse Effect or a Parent Material Adverse Effect (each as defined in the Merger Agreement), as applicable, (ix) execution and delivery of the Third Supplemental Indenture, and (x) the requirement that not more than 6% of the shares of Common stock outstanding immediately prior to the Mergers have validly exercised appraisal rights pursuant to Delaware law. The Merger Agreement contains termination rights for each of the Company and Patterson, including, among others, a termination right for each party if the consummation of the Mergers does not occur on or before January 3, 2022 (the āOutside Dateā), subject to certain exceptions; provided that the right to terminate the Merger Agreement for failure to consummate the Mergers by the Outside Date will not be available to any party to the Merger Agreement whose failure to fulfill in any material respect any of its obligations under the Merger Agreement is the primary cause of, or the primary factor that resulted in, the failure of the Mergers being consummated by such Outside Date. Additionally, either party may terminate the Merger Agreement if (i) any court of competent jurisdiction or governmental entity takes action that prohibits the Transactions, (ii) if the Pioneer Stockholder Approval is not obtained or (iii) if the other party breaches the Merger Agreement and cannot cure such breach within the applicable time period. Additionally, Pioneer may elect to terminate the Merger Agreement to accept a Superior Proposal (as defined in the Merger Agreement) or if the Patterson VWAP drops below $5.60 for the 10 consecutive trading days prior to the closing of the Transactions. Patterson may elect to terminate the Merger Agreement if the Pioneer board changes its recommendation to approve the Merger Agreement. Moreover, pursuant to the Merger Agreement, Pioneer is subject to customary limitations prohibiting any solicitations or negotiations of alternative proposals between the execution of the Merger Agreement and the closings of the Transactions. As more fully described in the Merger Agreement, in the event that the Merger Agreement is terminated (i) by Pioneer to accept a Superior Proposal prior to obtaining the Pioneer Stockholder Approval or (ii) by Patterson due to the Pioneer boardās change of recommendation with respect to the Transactions, then Pioneer will be obligated to pay to Patterson a break-up fee of $9.5 million (the āBreak-Up Feeā) pursuant to the terms of the Merger Agreement. Pioneer will also be obligated to pay the Break-Up Fee if (i) an acquisition proposal of Pioneer is made by a third party, (ii) Pioneer or Patterson then terminates the Merger Agreement for failure to consummate the Mergers by the Outside Date or for failure to obtain the Pioneer Stockholder Approval, or if Patterson terminates the Merger Agreement due to Pioneerās breach thereof and failure to cure such breach within the specified time, and (iii) within 12 months thereafter Pioneer enters into an alternative transaction. In connection with the Merger Agreement, certain holders of Common stock and Convertible Notes holding approximately 88% of the voting power of Pioneer and 100% of the Senior Notes (collectively, the āSupporting Holdersā) have entered into voting and support agreements with Patterson pursuant to which, among other things, the Supporting Holders have agreed, subject to certain limitations and exceptions, not to transfer any of their Common stock or Convertible Notes (collectively, the āCovered Securitiesā) until the earlier of the date the Merger Agreement is terminated by the Effective Time, to vote such Covered Securities in a manner to facilitate the consummation of the Mergers and to consent to and approve the Third Supplemental Indenture. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer [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 clientās drill site. Revenues associated with the mobilization and demobilization of our drilling rigs to and from the clientās 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 clientās 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 clientās 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. Contract Asset and Liability Balances and Contract Cost Assets Contract asset and contract liability balances relate to demobilization and mobilization revenues, respectively. Demobilization revenue that we expect to receive is recognized ratably over the related contract term, but invoiced upon completion of the demobilization activity. Mobilization revenue, which is typically collected upon the completion of the initial mobilization activity, is deferred and recognized ratably over the related contract term. Contract asset and liability balances are netted at the contract level, with the net current and noncurrent portions separately classified in our condensed consolidated balance sheets, and the resulting contract liabilities are referred to herein as ādeferred revenues.ā When demobilization revenues are recognized prior to the activity being performed, they are not yet billable, and the resulting contract assets are included in our other current assets in our unaudited condensed consolidated financial statements. Contract cost assets represent the costs associated with the initial mobilization required in order to fulfill the contract, which are deferred and recognized ratably over the period during which we expect to benefit from the mobilization, or the period during which we expect to satisfy the performance obligations of the related contract. Contract cost assets are presented as either current or noncurrent, according to the duration of the original contract to which it relates, and referred to herein as ādeferred costs.ā Our current and noncurrent deferred revenues, contract assets and deferred costs as of June 30, 2021 and December 31, 2020 were as follows (amounts in thousands): Successor June 30, 2021 December 31, 2020 Current deferred revenues $ 955 $ 1,019 Current deferred costs 410 361 Current contract assets ā 300 Noncurrent deferred costs 204 194 The changes in contract balances and contract assets during 2021 are primarily related to the amortization of deferred revenues and costs and the impact of demobilization performed in January for which the revenue was earned over the contract period in 2020. These decreases were partially offset by increases related to three rigs deployed under new contracts in 2021. Amortization of deferred revenues and costs were as follows (amounts in thousands): Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Amortization of deferred revenues $ 889 $ 46 $ 2,705 Amortization of deferred costs 541 39 1,876 As of June 30, 2021, 15 of our 25 rigs are earning under daywork contracts, of which 9 are under domestic term contracts, and 4 additional rigs are contracted but pending operations. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Assets Held for Sale ā 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 $1.3 million of our total assets held for sale at June 30, 2021. 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 ā 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 pandemicās 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 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 āASC Topic 842ā). 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 unaudited condensed consolidated statements of operations. As a lessee, we lease our corporate office headquarters in San Antonio, Texas, and we conduct our business operations through 14 other regional offices located throughout 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 various items of 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. The following table summarizes our lease expense recognized, excluding variable lease costs (amounts in thousands): Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Long-term operating lease expense $ 615 $ 151 $ 1,080 Short-term operating lease expense 4,539 456 4,456 The following table summarizes the amount and timing of our obligations associated with our long-term operating leases (amounts in thousands): Successor June 30, 2021 December 31, 2020 Within 1 year $ 1,074 $ 1,069 In the second year 992 985 In the third year 864 921 In the fourth year 885 874 In the fifth year 585 895 Thereafter 161 299 Total undiscounted lease obligations $ 4,561 $ 5,043 Impact of discounting (438) (532) Discounted value of operating lease obligations $ 4,123 $ 4,511 Current operating lease liabilities $ 913 $ 889 Noncurrent operating lease liabilities 3,210 3,622 $ 4,123 $ 4,511 |
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 āASC Topic 842ā). 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 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Debt The principal amount of our outstanding debt obligations, including those issued in payment of in-kind interest, were as follows (amounts in thousands): Successor June 30, 2021 December 31, 2020 Convertible Notes $ 136,082 $ 132,763 Senior Secured Notes 75,496 77,439 Upon our emergence from Chapter 11, our debt obligations were recognized at fair value on our consolidated balance sheet due to the application of fresh start accounting, and a portion of the fair value of our Convertible Notes is classified as equity, as described further below. As described further in Note 2, Subsequent Events , upon consummation of the Mergers with Patterson, all our outstanding debt obligations will be retired. ABL Credit Facility Upon our emergence from Chapter 11, 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 āABL Credit Facilityā) among us and substantially all of our domestic subsidiaries as borrowers (the āBorrowersā), 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 āABL Credit Facilityā) 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 Borrowersā 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 June 30, 2021, 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 June 30, 2021, availability under the ABL Credit Facility was $17.2 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 May 29, 2020 among the Company and Wilmington Trust, N.A., as trustee, as supplemented by the First Supplemental Indenture to the Convertible Notes Indenture dated May 11, 2021, (the āConvertible Notes Indentureā), and issued $129.8 million aggregate principal amount of convertible senior unsecured pay-in-kind notes due 2025 thereunder (the āConvertible Notesā). We received net issuance proceeds of $120.2 million, which was net of the $9.6 million Backstop Commitment Premium, which is described further below. 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 āfundamental changeā 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. 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 and allocated, along with related debt issuance costs, to the liability and equity components in accordance with the application of Fresh Start Accounting and the requirements of ASC Topic 470. 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. Backstop Commitment Agreement Prior to filing the Plan, we entered into a separate backstop commitment agreement with some of our previous creditors as well as certain members of our senior management (the āBackstop Commitment Agreementā), pursuant to which these parties committed to backstop the issuance of new Convertible Notes upon our emergence from Chapter 11. As consideration for this commitment, we committed to make an aggregate payment of $9.6 million 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 āCommitment Premiumā) 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. Senior Secured Notes We entered into an indenture dated May 29, 2020 among the Company, the subsidiary guarantors party thereto and Wilmington Trust, N.A., as trustee, as supplemented by the First Supplemental Indenture dated March 3, 2021, and the Second Supplemental Indenture dated May 11, 2021 (the āSenior Secured Notes Indentureā), and issued $78.1 million aggregate principal amount of floating rate senior secured notes due 2025 (the āSenior Secured Notesā) 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 āGuarantorsā) 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 accrue interest at the rate of LIBOR plus 9.5% per annum until May 15, 2024, after which the rate will be LIBOR plus 10.50% per annum, and in both cases with a LIBOR rate floor of 1.5% and payable quarterly in arrears on the 15th of each February, May, August and November of each year. The interest payments which were due prior to May 2021 were paid 50% in cash and 50% of the interest was paid in-kind in the form of an increase to the principal amount. We may redeem all or part of the Senior Secured Notes 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 aggregate qualifying asset sales in excess of $5 million, in accordance with the Senior Notes Indenture, we commenced and completed offers to purchase $2.6 million in aggregate principal amount of the Senior Secured Notes during the year ended December 31, 2020 at a purchase price equal to 100% of the principal amount, plus accrued and unpaid interest through, but not including, the respective purchase dates. During the six months ended June 30, 2021, we completed additional qualifying asset sales and associated offers to purchase an aggregate $3.0 million in principal amount of the Senior Secured Notes and recognized $0.2 million of loss on extinguishment of debt associated with these repayments. When we have completed qualifying asset sales before a reporting period end which require us to commence an offer to purchase Senior Secured Notes in the subsequent period, the related amount of Senior Secured Notes is presented as a current liability, and the cash on hand which will fund the purchase is classified as ārestricted cashā in our consolidated balance sheet. 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 June 30, 2021 December 31, 2020 Unamortized discount on Convertible Notes (based on imputed interest rate of 20.9%) $ 53,910 $ 56,438 Unamortized discount on Senior Secured Notes (based on imputed interest rate of 13.2%) 2,214 2,733 Unamortized debt issuance costs 3,445 3,714 |
Taxes (Notes)
Taxes (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Taxes Upon emergence from Chapter 11, our Prepetition Senior Notes were exchanged for shares of our new common stock. As a result of the market value of equity upon emergence from Chapter 11 bankruptcy proceedings, the estimated amount of cancellation of debt income (CODI) for federal income tax purposes is approximately $229 million, which reduces 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 valuation allowance. 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. Our deferred tax assets related to net operating losses available to reduce future taxable income, and our valuation allowance that offset a portion of our domestic net deferred tax assets, consist of the following (amounts in thousands): Successor June 30, 2021 December 31, 2020 Net operating loss carryforward deferred tax asset $ 85,944 $ 82,901 Valuation allowance (77,786) (74,676) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The FASBās 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. We estimate that the carrying value of our long-term debt approximates fair value. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
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 (if dilutive) and the interest expense, net of tax, recorded in connection with the Convertible Notes is added back to net income (if dilutive). 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 Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Numerator: Net loss (numerator for basic EPS) $ (14,619) $ (9,817) $ (35,121) Interest expense on Convertible Notes, net of tax ā ā ā Numerator for diluted EPS, if-converted method (14,619) (9,817) (35,121) Denominator: Weighted-average shares (denominator for basic EPS) 1,217 1,048 79,288 Potentially dilutive shares issuable from Convertible Notes, if-converted method ā ā ā Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method ā ā ā Denominator for diluted EPS 1,217 1,048 79,288 Loss per common share - Basic $ (12.01) $ (9.37) $ (0.44) Loss per common share - Diluted $ (12.01) $ (9.37) $ (0.44) Potentially dilutive securities excluded as anti-dilutive 10,204 9,733 4,103 Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Numerator: Net loss (numerator for basic EPS) $ (31,561) $ (9,817) $ (104,225) Interest expense on Convertible Notes, net of tax ā ā ā Numerator for diluted EPS, if-converted method (31,561) (9,817) (104,225) Denominator: Weighted-average shares (denominator for basic EPS) 1,178 1,048 78,968 Potentially dilutive shares issuable from Convertible Notes, if-converted method ā ā ā Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method ā ā ā Denominator for diluted EPS 1,178 1,048 78,968 Loss per common share - Basic $ (26.79) $ (9.37) $ (1.32) Loss per common share - Diluted $ (26.79) $ (9.37) $ (1.32) Potentially dilutive securities excluded as anti-dilutive 10,113 9,733 4,517 In April 2021, we granted 110,417 shares of restricted stock to our non-employee directors which vested immediately and 83,000 shares of restricted stock to certain employees which will vest in either two or three equal annual installments, all of which had a grant date fair value of $9.69 per share, which was 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 described in Note 2, Subsequent Events , upon the consummation of the Mergers, all outstanding restricted stock awards will vest in full, all Convertible Notes will convert to shares of common stock, and all holders of outstanding shares of common stock will be entitled to receive Patterson common stock according to the Exchange Ratio as specified in the Merger |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of June 30, 2021, 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 and the Rocky Mountain region. 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 Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Revenues: Domestic drilling $ 23,414 $ 5,866 $ 17,450 International drilling 9,685 828 1,473 Drilling services 33,099 6,694 18,923 Well servicing 18,033 3,756 6,331 Wireline services 8,394 713 2,410 Coiled tubing services ā ā 384 Production services 26,427 4,469 9,125 Consolidated revenues $ 59,526 $ 11,163 $ 28,048 Operating costs: Domestic drilling $ 17,405 $ 3,646 $ 9,236 International drilling 7,760 1,063 1,538 Drilling services 25,165 4,709 10,774 Well servicing 13,445 2,810 5,926 Wireline services 7,754 1,085 3,552 Coiled tubing services 33 139 1,773 Production services 21,232 4,034 11,251 Consolidated operating costs $ 46,397 $ 8,743 $ 22,025 Gross margin: Domestic drilling $ 6,009 $ 2,220 $ 8,214 International drilling 1,925 (235) (65) Drilling services 7,934 1,985 8,149 Well servicing 4,588 946 405 Wireline services 640 (372) (1,142) Coiled tubing services (33) (139) (1,389) Production services 5,195 435 (2,126) Consolidated gross margin $ 13,129 $ 2,420 $ 6,023 Successor Predecessor Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Identifiable Assets: Domestic drilling (1) $ 138,473 $ 150,897 $ 158,283 International drilling (1) (2) 40,680 47,541 49,611 Drilling services 179,153 198,438 207,894 Well servicing 41,284 47,832 49,388 Wireline services 17,998 22,623 23,948 Coiled tubing services 1,339 5,941 6,336 Production services 60,621 76,396 79,672 Corporate 55,037 68,966 65,057 Consolidated identifiable assets (3) $ 294,811 $ 343,800 $ 352,623 Depreciation and amortization: Domestic drilling $ 5,975 $ 2,012 $ 7,153 International drilling 2,514 1,076 843 Drilling services 8,489 3,088 7,996 Well servicing 2,555 1,261 3,039 Wireline services 807 763 2,011 Coiled tubing services ā ā 471 Production services 3,362 2,024 5,521 Corporate 93 124 146 Consolidated depreciation $ 11,944 $ 5,236 $ 13,663 Capital Expenditures: Domestic drilling $ 2,231 $ 484 $ 621 International drilling 1,405 138 106 Drilling services 3,636 622 727 Well servicing 564 30 201 Wireline services 307 60 112 Coiled tubing services ā ā 3 Production services 871 90 316 Corporate 51 ā 20 Consolidated capital expenditures $ 4,558 $ 712 $ 1,063 Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Revenues: Domestic drilling $ 45,897 $ 5,866 $ 53,341 International drilling 20,748 828 15,928 Drilling services 66,645 6,694 69,269 Well servicing 32,890 3,756 31,947 Wireline services 18,729 713 35,543 Coiled tubing services ā ā 5,611 Production services 51,619 4,469 73,101 Consolidated revenues $ 118,264 $ 11,163 $ 142,370 Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Operating costs: Domestic drilling $ 32,864 $ 3,646 $ 33,101 International drilling 15,835 1,063 13,676 Drilling services 48,699 4,709 46,777 Well servicing 25,333 2,810 26,877 Wireline services 17,632 1,085 31,836 Coiled tubing services 59 139 8,557 Production services 43,024 4,034 67,270 Consolidated operating costs $ 91,723 $ 8,743 $ 114,047 Gross margin: Domestic drilling $ 13,033 $ 2,220 $ 20,240 International drilling 4,913 (235) 2,252 Drilling services 17,946 1,985 22,492 Well servicing 7,557 946 5,070 Wireline services 1,097 (372) 3,707 Coiled tubing services (59) (139) (2,946) Production services 8,595 435 5,831 Consolidated gross margin $ 26,541 $ 2,420 $ 28,323 Identifiable Assets: Domestic drilling (1) $ 138,473 $ 150,897 $ 158,283 International drilling (1) (2) 40,680 47,541 49,611 Drilling services 179,153 198,438 207,894 Well servicing 41,284 47,832 49,388 Wireline services 17,998 22,623 23,948 Coiled tubing services 1,339 5,941 6,336 Production services 60,621 76,396 79,672 Corporate 55,037 68,966 65,057 Consolidated identifiable assets (3) $ 294,811 $ 343,800 $ 352,623 Depreciation and amortization: Domestic drilling $ 12,265 $ 2,012 $ 18,058 International drilling 5,662 1,076 2,144 Drilling services 17,927 3,088 20,202 Well servicing 5,491 1,261 7,820 Wireline services 1,697 763 5,088 Coiled tubing services ā ā 2,164 Production services 7,188 2,024 15,072 Corporate 194 124 373 Consolidated depreciation $ 25,309 $ 5,236 $ 35,647 Capital Expenditures: Domestic drilling $ 4,616 $ 484 $ 3,862 International drilling 1,970 138 1,273 Drilling services 6,586 622 5,135 Well servicing 899 30 1,918 Wireline services 799 60 1,684 Coiled tubing services ā ā 166 Production services 1,698 90 3,768 Corporate 88 ā 21 Consolidated capital expenditures $ 8,372 $ 712 $ 8,924 (1) Identifiable assets for our drilling segments include the impact of a $28.7 million and $28.3 million intercompany balance, as of June 30, 2021 and 2020, 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. (3) Upon our emergence from Chapter 11, due to the application of fresh start accounting, the carrying value of our identifiable assets was reduced to the estimated fair value and a new historical cost basis was established for all our property and equipment. The following is a reconciliation of consolidated gross margin of our segments reported above to loss from operations as reported on the condensed consolidated statements of operations (amounts in thousands): Successor Predecessor Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Consolidated gross margin $ 13,129 $ 2,420 $ 6,023 Depreciation and amortization (11,944) (5,236) (13,663) General and administrative (10,997) (4,213) (7,392) Prepetition restructuring charges ā ā 252 Impairment ā (388) ā Bad debt (expense) recovery, net 198 283 (482) Gain on dispositions of property and equipment, net 1,072 460 272 Loss from operations $ (8,542) $ (6,674) $ (14,990) Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Consolidated gross margin $ 26,541 $ 2,420 $ 28,323 Depreciation and amortization (25,309) (5,236) (35,647) General and administrative (20,710) (4,213) (22,047) Prepetition restructuring charges ā ā (16,822) Impairment ā (388) (17,853) Bad debt (expense) recovery, net 395 283 (1,209) Gain on dispositions of property and equipment, net 3,370 460 989 Loss from operations $ (15,713) $ (6,674) $ (64,266) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments, Contingencies and Insurance Claim Liabilities 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 statesā sales and use tax audits. As of June 30, 2021 and December 31, 2020, our accrued liability was $1.0 million and $0.9 million, respectively, based on our estimate of the indirect tax obligations. 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 workersā 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. Additionally, if the Mergers are consummated as described in Note 2, Subsequent Events , Pioneer will be required to pay certain fees which are associated with the transactions, including approximately $3.3 million in fees to our advisors which are currently contingent upon closing the transactions, certain fees associated with legal counsel, certain bonuses to employees and a portion of other fees associated with the filing of any necessary SEC documents. Insurance Claim Liabilities We use a combination of self-insurance and third-party insurance for various types of coverage. At June 30, 2021, our accrued insurance premiums and deductibles include approximately $0.6 million of accruals for costs incurred under the self-insurance portion of our health insurance and approximately $1.8 million of accruals for costs associated with our workersā compensation insurance. We accrue for these costs as claims are incurred using an actuarial calculation that is based on industry and our companyās historical claim development data, and we accrue the cost of administrative services associated with claims processing. 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. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Subsequent Events | Subsequent Events ā In preparing the accompanying unaudited condensed consolidated financial statements, we have reviewed events that have occurred after June 30, 2021, through the filing of this Form 10-Q, for inclusion as necessary. On July 5, 2021, we entered into an Agreement and Plan of Merger (the āMerger Agreementā) with Patterson-UTI Energy, Inc., a Delaware corporation (āPattersonā), Crescent Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Patterson (āMerger Sub Inc.ā), and Crescent Ranch Second Merger Sub LLC, a Delaware limited liability company and wholly owned subsidiary of Patterson (āMerger Sub LLCā), pursuant to which, upon the terms and subject to the conditions set forth therein, (i) Merger Sub Inc. will merge with and into Pioneer Energy Services Corp. (āPioneerā), with Pioneer continuing as the surviving entity (the āSurviving Corporationā) (the āFirst Company Mergerā) and (ii) immediately following the First Company Merger, the Surviving Corporation will merge with and into Merger Sub LLC, with Merger Sub LLC continuing as the surviving entity (the āSurviving Companyā) (the āSecond Company Mergerā and, together with the First Company Merger, the āMergersā), which is described in more detail in Note 2, Subsequent Events |
Basis of Presentation | Basis of Presentation ā The accompanying unaudited condensed 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 unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of our management, all adjustments (consisting of normal, recurring accruals) necessary for a fair presentation have been included. We suggest that you read these unaudited condensed consolidated financial statements together with the consolidated financial statements and the related notes included in our annual report on Form 10-K for the year ended DecemberĀ 31, 2020. |
Fresh Start Accounting | As described in Note 2, Emergence from Voluntary Reorganization under Chapter 11 , and Note 3, Fresh Start Accounting , to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2020, on March 1, 2020 (the āPetition Dateā), Pioneer and certain of our domestic subsidiaries (collectively, the āDebtorsā) filed |
Use of Estimates | Use of Estimates ā In preparing the accompanying unaudited condensed 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 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 workersā compensation insurance. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Changes to accounting principles generally accepted in the United States of America (āU.S. GAAPā) are established by the Financial Accounting Standards Board (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 āSECā). Other than those 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. ā¢ Convertible Instruments and Contracts in an Entityās Own Equity . In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entityās 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. ā¢ Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting and disclosure requirements for income taxes by, among other changes, removing certain exceptions and by clarifying certain aspects of the current accounting guidance. We adopted this ASU on January 1, 2021, and it did not have a material impact on our condensed consolidated financial statements. |
Restricted Cash | Restricted Cash ā 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 $0.3 million and $0.2 million of proceeds from asset sales received at June 30, 2021 and December 31, 2020, respectively, which were used to fund the redemption of Senior Secured Notes tendered in January and July 2021, respectively, as further described in Note 6, Debt . |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 clientās drill site. Revenues associated with the mobilization and demobilization of our drilling rigs to and from the clientās 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 clientās 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 clientās 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. Contract Asset and Liability Balances and Contract Cost Assets Contract asset and contract liability balances relate to demobilization and mobilization revenues, respectively. Demobilization revenue that we expect to receive is recognized ratably over the related contract term, but invoiced upon completion of the demobilization activity. Mobilization revenue, which is typically collected upon the completion of the initial mobilization activity, is deferred and recognized ratably over the related contract term. Contract asset and liability balances are netted at |
Property and Equipment (Impairm
Property and Equipment (Impairments) (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairments ā 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 pandemicās 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 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) | 6 Months Ended |
Jun. 30, 2021 | |
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 āASC Topic 842ā). 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) | 6 Months Ended |
Jun. 30, 2021 | |
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 ā 17 International drilling ā 8 8 25 |
Schedule of Production Services Long-Lived Assets, by Type | As of June 30, 2021, 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 72 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contracts with Customer [Abstract] | |
Schedule of Deferred Revenues and Costs [Table Text Block] | Our current and noncurrent deferred revenues, contract assets and deferred costs as of June 30, 2021 and December 31, 2020 were as follows (amounts in thousands): Successor June 30, 2021 December 31, 2020 Current deferred revenues $ 955 $ 1,019 Current deferred costs 410 361 Current contract assets ā 300 Noncurrent deferred costs 204 194 |
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 Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Amortization of deferred revenues $ 889 $ 46 $ 2,705 Amortization of deferred costs 541 39 1,876 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table summarizes our lease expense recognized, excluding variable lease costs (amounts in thousands): Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Long-term operating lease expense $ 615 $ 151 $ 1,080 Short-term operating lease expense 4,539 456 4,456 |
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 June 30, 2021 December 31, 2020 Within 1 year $ 1,074 $ 1,069 In the second year 992 985 In the third year 864 921 In the fourth year 885 874 In the fifth year 585 895 Thereafter 161 299 Total undiscounted lease obligations $ 4,561 $ 5,043 Impact of discounting (438) (532) Discounted value of operating lease obligations $ 4,123 $ 4,511 Current operating lease liabilities $ 913 $ 889 Noncurrent operating lease liabilities 3,210 3,622 $ 4,123 $ 4,511 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Principal Amount of Outstanding Long-Debt Obligations | The principal amount of our outstanding debt obligations, including those issued in payment of in-kind interest, were as follows (amounts in thousands): Successor June 30, 2021 December 31, 2020 Convertible Notes $ 136,082 $ 132,763 Senior Secured Notes 75,496 77,439 |
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 June 30, 2021 December 31, 2020 Unamortized discount on Convertible Notes (based on imputed interest rate of 20.9%) $ 53,910 $ 56,438 Unamortized discount on Senior Secured Notes (based on imputed interest rate of 13.2%) 2,214 2,733 Unamortized debt issuance costs 3,445 3,714 |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Operating Loss Carryforwards | Our deferred tax assets related to net operating losses available to reduce future taxable income, and our valuation allowance that offset a portion of our domestic net deferred tax assets, consist of the following (amounts in thousands): Successor June 30, 2021 December 31, 2020 Net operating loss carryforward deferred tax asset $ 85,944 $ 82,901 Valuation allowance (77,786) (74,676) |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Numerator: Net loss (numerator for basic EPS) $ (14,619) $ (9,817) $ (35,121) Interest expense on Convertible Notes, net of tax ā ā ā Numerator for diluted EPS, if-converted method (14,619) (9,817) (35,121) Denominator: Weighted-average shares (denominator for basic EPS) 1,217 1,048 79,288 Potentially dilutive shares issuable from Convertible Notes, if-converted method ā ā ā Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method ā ā ā Denominator for diluted EPS 1,217 1,048 79,288 Loss per common share - Basic $ (12.01) $ (9.37) $ (0.44) Loss per common share - Diluted $ (12.01) $ (9.37) $ (0.44) Potentially dilutive securities excluded as anti-dilutive 10,204 9,733 4,103 Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Numerator: Net loss (numerator for basic EPS) $ (31,561) $ (9,817) $ (104,225) Interest expense on Convertible Notes, net of tax ā ā ā Numerator for diluted EPS, if-converted method (31,561) (9,817) (104,225) Denominator: Weighted-average shares (denominator for basic EPS) 1,178 1,048 78,968 Potentially dilutive shares issuable from Convertible Notes, if-converted method ā ā ā Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method ā ā ā Denominator for diluted EPS 1,178 1,048 78,968 Loss per common share - Basic $ (26.79) $ (9.37) $ (1.32) Loss per common share - Diluted $ (26.79) $ (9.37) $ (1.32) Potentially dilutive securities excluded as anti-dilutive 10,113 9,733 4,517 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Revenues: Domestic drilling $ 23,414 $ 5,866 $ 17,450 International drilling 9,685 828 1,473 Drilling services 33,099 6,694 18,923 Well servicing 18,033 3,756 6,331 Wireline services 8,394 713 2,410 Coiled tubing services ā ā 384 Production services 26,427 4,469 9,125 Consolidated revenues $ 59,526 $ 11,163 $ 28,048 Operating costs: Domestic drilling $ 17,405 $ 3,646 $ 9,236 International drilling 7,760 1,063 1,538 Drilling services 25,165 4,709 10,774 Well servicing 13,445 2,810 5,926 Wireline services 7,754 1,085 3,552 Coiled tubing services 33 139 1,773 Production services 21,232 4,034 11,251 Consolidated operating costs $ 46,397 $ 8,743 $ 22,025 Gross margin: Domestic drilling $ 6,009 $ 2,220 $ 8,214 International drilling 1,925 (235) (65) Drilling services 7,934 1,985 8,149 Well servicing 4,588 946 405 Wireline services 640 (372) (1,142) Coiled tubing services (33) (139) (1,389) Production services 5,195 435 (2,126) Consolidated gross margin $ 13,129 $ 2,420 $ 6,023 Successor Predecessor Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Identifiable Assets: Domestic drilling (1) $ 138,473 $ 150,897 $ 158,283 International drilling (1) (2) 40,680 47,541 49,611 Drilling services 179,153 198,438 207,894 Well servicing 41,284 47,832 49,388 Wireline services 17,998 22,623 23,948 Coiled tubing services 1,339 5,941 6,336 Production services 60,621 76,396 79,672 Corporate 55,037 68,966 65,057 Consolidated identifiable assets (3) $ 294,811 $ 343,800 $ 352,623 Depreciation and amortization: Domestic drilling $ 5,975 $ 2,012 $ 7,153 International drilling 2,514 1,076 843 Drilling services 8,489 3,088 7,996 Well servicing 2,555 1,261 3,039 Wireline services 807 763 2,011 Coiled tubing services ā ā 471 Production services 3,362 2,024 5,521 Corporate 93 124 146 Consolidated depreciation $ 11,944 $ 5,236 $ 13,663 Capital Expenditures: Domestic drilling $ 2,231 $ 484 $ 621 International drilling 1,405 138 106 Drilling services 3,636 622 727 Well servicing 564 30 201 Wireline services 307 60 112 Coiled tubing services ā ā 3 Production services 871 90 316 Corporate 51 ā 20 Consolidated capital expenditures $ 4,558 $ 712 $ 1,063 Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Revenues: Domestic drilling $ 45,897 $ 5,866 $ 53,341 International drilling 20,748 828 15,928 Drilling services 66,645 6,694 69,269 Well servicing 32,890 3,756 31,947 Wireline services 18,729 713 35,543 Coiled tubing services ā ā 5,611 Production services 51,619 4,469 73,101 Consolidated revenues $ 118,264 $ 11,163 $ 142,370 Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Operating costs: Domestic drilling $ 32,864 $ 3,646 $ 33,101 International drilling 15,835 1,063 13,676 Drilling services 48,699 4,709 46,777 Well servicing 25,333 2,810 26,877 Wireline services 17,632 1,085 31,836 Coiled tubing services 59 139 8,557 Production services 43,024 4,034 67,270 Consolidated operating costs $ 91,723 $ 8,743 $ 114,047 Gross margin: Domestic drilling $ 13,033 $ 2,220 $ 20,240 International drilling 4,913 (235) 2,252 Drilling services 17,946 1,985 22,492 Well servicing 7,557 946 5,070 Wireline services 1,097 (372) 3,707 Coiled tubing services (59) (139) (2,946) Production services 8,595 435 5,831 Consolidated gross margin $ 26,541 $ 2,420 $ 28,323 Identifiable Assets: Domestic drilling (1) $ 138,473 $ 150,897 $ 158,283 International drilling (1) (2) 40,680 47,541 49,611 Drilling services 179,153 198,438 207,894 Well servicing 41,284 47,832 49,388 Wireline services 17,998 22,623 23,948 Coiled tubing services 1,339 5,941 6,336 Production services 60,621 76,396 79,672 Corporate 55,037 68,966 65,057 Consolidated identifiable assets (3) $ 294,811 $ 343,800 $ 352,623 Depreciation and amortization: Domestic drilling $ 12,265 $ 2,012 $ 18,058 International drilling 5,662 1,076 2,144 Drilling services 17,927 3,088 20,202 Well servicing 5,491 1,261 7,820 Wireline services 1,697 763 5,088 Coiled tubing services ā ā 2,164 Production services 7,188 2,024 15,072 Corporate 194 124 373 Consolidated depreciation $ 25,309 $ 5,236 $ 35,647 Capital Expenditures: Domestic drilling $ 4,616 $ 484 $ 3,862 International drilling 1,970 138 1,273 Drilling services 6,586 622 5,135 Well servicing 899 30 1,918 Wireline services 799 60 1,684 Coiled tubing services ā ā 166 Production services 1,698 90 3,768 Corporate 88 ā 21 Consolidated capital expenditures $ 8,372 $ 712 $ 8,924 (1) Identifiable assets for our drilling segments include the impact of a $28.7 million and $28.3 million intercompany balance, as of June 30, 2021 and 2020, respectively, between our domestic drilling segment (intercompany receivable) and our international drilling segment (intercompany payable). |
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 condensed consolidated statements of operations (amounts in thousands): Successor Predecessor Three months ended June 30, 2021 One Month Ended June 30, 2020 Two Months Ended May 31, 2020 Consolidated gross margin $ 13,129 $ 2,420 $ 6,023 Depreciation and amortization (11,944) (5,236) (13,663) General and administrative (10,997) (4,213) (7,392) Prepetition restructuring charges ā ā 252 Impairment ā (388) ā Bad debt (expense) recovery, net 198 283 (482) Gain on dispositions of property and equipment, net 1,072 460 272 Loss from operations $ (8,542) $ (6,674) $ (14,990) Successor Predecessor Six Months Ended June 30, 2021 One Month Ended June 30, 2020 Five Months Ended May 31, 2020 Consolidated gross margin $ 26,541 $ 2,420 $ 28,323 Depreciation and amortization (25,309) (5,236) (35,647) General and administrative (20,710) (4,213) (22,047) Prepetition restructuring charges ā ā (16,822) Impairment ā (388) (17,853) Bad debt (expense) recovery, net 395 283 (1,209) Gain on dispositions of property and equipment, net 3,370 460 989 Loss from operations $ (15,713) $ (6,674) $ (64,266) |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | Jun. 30, 2021USD ($)drilling_rigswell_service_rigswireline_tubing_units | Dec. 31, 2020USD ($) |
Cash and Cash Equivalents | ||
Restricted Cash from Proceeds of Qualifying Sales of Property & Equipment | $ | $ 300 | $ 200 |
Restricted cash | $ | $ 1,298 | $ 1,148 |
Drilling Services [Member] | ||
Business - Drilling | ||
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 | 17 | |
Domestic Drilling [Member] | Drilling Services [Member] | United States [Member] | AC [Member] | ||
Business - Drilling | ||
Drilling Rigs | 17 | |
Domestic Drilling [Member] | Drilling Services [Member] | United States [Member] | SCR Drilling Rigs [Member] | ||
Business - Drilling | ||
Drilling Rigs | 0 | |
International Drilling [Member] | Drilling Services [Member] | Colombia [Member] | ||
Business - Drilling | ||
Drilling Rigs | 8 | |
International Drilling [Member] | Drilling Services [Member] | Colombia [Member] | AC [Member] | ||
Business - Drilling | ||
Drilling Rigs | 0 | |
International Drilling [Member] | Drilling Services [Member] | Colombia [Member] | SCR Drilling Rigs [Member] | ||
Business - Drilling | ||
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 | 72 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Drilling Services Business) (Details) - Drilling Services [Member] | Jun. 30, 2021drilling_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) | Jun. 30, 2021well_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 | 72 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 05, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, par value | $ 0.01 | ||
Proceeds from Sale of Business, Gross [Line Items] | $ 30 | ||
Business acquisition, amount payable by acquiree if agreement is terminated | $ 9.5 | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | Common Stock and Convertible Notes | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Business acquisition, percentage of voting power held by acquiree | 8800.00% | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | Senior Notes [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Business Acquisition, Supporting Holders, Percentage Ownership | 10000.00% | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | Senior Notes [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 103.00% | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | Maximum [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 26,275,000 | ||
Weighted average common stock trading price over 10 consecutive trading days | $ 11 | ||
Business acquisition, closing condition, common shares, holders requesting valid appraisal rights, percentage | 6.00% | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | Maximum [Member] | Senior Notes [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Amount of cash to be paid upon debt redemption, maximum | $ 30 | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | Minimum [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Business acquisition, termination condition, volume weighted-average share price | $ 5.60 | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) | 6 Months Ended |
Jun. 30, 2021drilling_rigs | |
Drilling Services [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Drilling Rigs | 25 |
Drilling Services [Member] | Earning Under Contract [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Drilling Rigs | 15 |
Drilling Services [Member] | Deployed under new contract during current period [Member] | Daywork Drilling Contract [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Drilling Rigs | 3 |
Drilling Services [Member] | Contracted, pending operations | Term Contract [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Drilling Rigs | 4 |
Drilling Services [Member] | Domestic Drilling [Member] | Term Contract [Member] | Earning Under Contract [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Drilling Rigs | 9 |
Maximum [Member] | Production Services [Member] | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Typical Revenue Contract Duration | 30 days |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Deferred Revenues and Costs (Details) - Drilling Services [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Revenues and Costs, Classified | ||
Current deferred revenues | $ 955 | $ 1,019 |
Current deferred costs | 410 | 361 |
Current contract assets | 0 | 300 |
Deferred Costs, Noncurrent | $ 204 | $ 194 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Amortization of Deferred Revenues and Costs (Details) - Drilling Services [Member] - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2021 | |
Deferred Revenue Arrangement [Line Items] | |||
Amortization of deferred revenues | $ 46 | $ 2,705 | $ 889 |
Amortization of deferred costs | $ 39 | $ 1,876 | $ 541 |
Property and Equipment (Details
Property and Equipment (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | May 31, 2020USD ($) | Jun. 30, 2021USD ($)drilling_rigswireline_tubing_units | Mar. 31, 2020USD ($) | May 31, 2020USD ($) | Jun. 30, 2021USD ($)drilling_rigswireline_tubing_units | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Assets held for sale | $ 1,605 | $ 1,605 | $ 3,608 | ||||
Asset Impairment Charges | $ 388 | $ 0 | 0 | $ 17,853 | 0 | ||
Capital Expenditures | 712 | 1,063 | 4,558 | 8,924 | 8,372 | ||
Gain (Loss) on Disposition of Property Plant Equipment | 460 | 272 | 1,072 | 989 | 3,370 | ||
Production Services [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capital Expenditures | 90 | 316 | 871 | 3,768 | 1,698 | ||
Production Services [Member] | Wireline Services [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capital Expenditures | 60 | 112 | $ 307 | 1,684 | $ 799 | ||
Wireline Units | wireline_tubing_units | 72 | 72 | |||||
Production Services [Member] | Coiled Tubing Services [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Assets held for sale | $ 1,300 | $ 1,300 | |||||
Asset Impairment Charges | $ 16,400 | ||||||
Capital Expenditures | 0 | 3 | 0 | 166 | 0 | ||
Drilling Services [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capital Expenditures | 622 | 727 | $ 3,636 | 5,135 | $ 6,586 | ||
Drilling Rigs | drilling_rigs | 25 | 25 | |||||
Drilling Services [Member] | Domestic Drilling [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capital Expenditures | 484 | 621 | $ 2,231 | 3,862 | $ 4,616 | ||
Drilling Services [Member] | International Drilling [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capital Expenditures | $ 138 | $ 106 | $ 1,405 | $ 1,273 | $ 1,970 |
Leases (Details)
Leases (Details) | Jun. 30, 2021 |
Lessee, Lease, Description [Line Items] | |
Regional Offices | 14 |
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 | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2021 | |
Lease, Cost [Abstract] | |||
Long-term operating lease expense | $ 151 | $ 1,080 | $ 615 |
Short-term operating lease expense | $ 456 | $ 4,456 | $ 4,539 |
Leases Operating Lease Maturiti
Leases Operating Lease Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Within 1 year | $ 1,074 | $ 1,069 |
In the second year | 992 | 985 |
In the third year | 864 | 921 |
In the fourth year | 885 | 874 |
In the fifth year | 585 | 895 |
Thereafter | 161 | 299 |
Total undiscounted lease obligations | 4,561 | 5,043 |
Impact of discounting | (438) | (532) |
Discounted value of operating lease obligations | 4,123 | 4,511 |
Noncurrent operating lease liabilities | 3,210 | 3,622 |
Other Current Liabilities [Member] | ||
Current operating lease liabilities | $ 913 | $ 889 |
Debt (Schedule of Principal Amo
Debt (Schedule of Principal Amount of Outstanding Long-Term Debt Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | May 29, 2020 |
Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 136,082 | $ 132,763 | $ 129,800 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 75,496 | $ 77,439 | $ 78,100 |
Debt (Schedule of Unamortized D
Debt (Schedule of Unamortized Debt Issuance Costs and Discount) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | May 29, 2020 |
Schedule of Unamortized Debt Issuance Costs and Discount [Line Items] | |||
Unamortized Debt Issuance Costs | $ 3,445 | $ 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 | 53,910 | 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 | $ 2,214 | $ 2,733 |
Debt (Details)
Debt (Details) | Aug. 07, 2020USD ($) | May 29, 2020USD ($)shares$ / shares | Feb. 28, 2020USD ($) | Jun. 30, 2020USD ($) | May 31, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Senior Secured Notes [Abstract] | |||||||
Proceeds from Issuance of Debt | $ 0 | $ 195,187,000 | $ 0 | ||||
Current portion of long-term debt | 300,000 | $ 150,000 | |||||
Convertible Debt [Member] | |||||||
Convertible Notes Payable [Abstract] | |||||||
Debt Instrument, Face Amount | $ 129,800,000 | 136,082,000 | 132,763,000 | ||||
Proceeds from debt issuance | 120,200,000 | ||||||
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% | ||||||
Commitment premium | $ 9,600,000 | ||||||
Senior Secured Notes [Abstract] | |||||||
Debt Instrument, Face Amount | $ 129,800,000 | 136,082,000 | 132,763,000 | ||||
Debt Instrument, Required Repurchase Due to Change in Control, Redemption Price, Percentage | 100.00% | ||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||
Debt Instrument, Face Amount | $ 129,800,000 | 136,082,000 | 132,763,000 | ||||
Predecessor Senior Notes [Abstract] | |||||||
Debt Instrument, Face Amount | $ 129,800,000 | 136,082,000 | 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 | ||||||
Letters of Credit Outstanding, Amount | 7,300,000 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 17,200,000 | ||||||
Line of Credit [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||
ABL Credit Facility [Abstract] | |||||||
Maximum borrowing capacity | $ 40,000,000 | $ 75,000,000 | |||||
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 | 40,000,000 | 75,000,000 | |||||
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 | 75,496,000 | 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 | 75,496,000 | 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% | ||||||
Debt Instrument, Offer to Purchase | 3,000,000 | 2,600,000 | |||||
Write off of Deferred Debt Issuance Cost | 200,000 | ||||||
Predecessor Senior Secured Term Loan [Abstract] | |||||||
Debt Instrument, Face Amount | $ 78,100,000 | 75,496,000 | 77,439,000 | ||||
Predecessor Senior Notes [Abstract] | |||||||
Debt Instrument, Face Amount | $ 78,100,000 | $ 75,496,000 | 77,439,000 | ||||
Senior Notes [Member] | Minimum [Member] | |||||||
Senior Secured Notes [Abstract] | |||||||
Debt Instrument, Covenant Compliance, Asset Coverage Ratio, Required Minimum | 1.5 | ||||||
Proceeds from Qualifying Sales of Property and Equipment | $ 5,000,000 | ||||||
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% | ||||||
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% | ||||||
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 Schedule of Operating Los
Taxes Schedule of Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward deferred tax asset | $ 85,944 | $ 82,901 |
Valuation Allowance | $ 77,786 | $ 74,676 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | May 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | |||
Debtor Reorganization Items, Cancellation of Debt Income | $ 229,000 | ||
Valuation allowance | $ (77,786) | $ (74,676) | |
Deferred Tax Assets, Operating Loss Carryforwards | $ 85,944 | $ 82,901 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Reconciliation of Earnings (loss) Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | May 31, 2020 | Jun. 30, 2021 | |
Numerator: | |||||||
Net loss (numerator for basic EPS) | $ (9,817) | $ (35,121) | $ (14,619) | $ (16,942) | $ (69,104) | $ (104,225) | $ (31,561) |
Interest on Convertible Notes, net of tax | 0 | 0 | 0 | 0 | 0 | ||
Numerator for diluted EPS, if-converted method | $ (9,817) | $ (35,121) | $ (14,619) | $ (104,225) | $ (31,561) | ||
Denominator: | |||||||
Weighted-average shares (denominator for basic EPS) | 1,048,000 | 79,288,000 | 1,217,000 | 78,968,000 | 1,178,000 | ||
Potentially dilutive shares issuable from Convertible Notes, if-converted method | 0 | 0 | 0 | 0 | 0 | ||
Potentially dilutive shares issuable from outstanding stock-based compensation awards, treasury stock method | 0 | 0 | 0 | 0 | 0 | ||
Denominator for diluted EPS | 1,048,000 | 79,288,000 | 1,217,000 | 78,968,000 | 1,178,000 | ||
Loss per common share - Basic | $ (9.37) | $ (0.44) | $ (12.01) | $ (1.32) | $ (26.79) | ||
Loss per common share - Diluted | $ (9.37) | $ (0.44) | $ (12.01) | $ (1.32) | $ (26.79) | ||
Potentially dilutive securities excluded as anti-dilutive | 9,733,000 | 4,103,000 | 10,204,000 | 4,517,000 | 10,113,000 | ||
Restricted Stock [Member] | |||||||
Denominator: | |||||||
Nonvested Options, Vested in Period, Weighted Average Grant Date Price | $ 9.69 | ||||||
Restricted Stock [Member] | Director | |||||||
Denominator: | |||||||
Awards granted | 110,417 | ||||||
Restricted Stock [Member] | Employee | |||||||
Denominator: | |||||||
Awards granted | 83,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021segments | |
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 | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)drilling_rigs | May 31, 2020USD ($) | Jun. 30, 2021USD ($)drilling_rigs | May 31, 2020USD ($) | Jun. 30, 2021USD ($)drilling_rigs | Dec. 31, 2020USD ($) | ||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 11,163 | $ 28,048 | $ 59,526 | $ 142,370 | $ 118,264 | ||||
Operating costs | 8,743 | 22,025 | 46,397 | 114,047 | 91,723 | ||||
Gross margin | 2,420 | 6,023 | 13,129 | 28,323 | 26,541 | ||||
Identifiable assets | 343,800 | 352,623 | 294,811 | 352,623 | 294,811 | $ 314,430 | |||
Depreciation and amortization | 5,236 | 13,663 | 11,944 | 35,647 | 25,309 | ||||
Capital Expenditures | 712 | 1,063 | 4,558 | 8,924 | 8,372 | ||||
Corporate, Non-Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Identifiable assets | 68,966 | 65,057 | 55,037 | 65,057 | 55,037 | ||||
Depreciation and amortization | 124 | 146 | 93 | 373 | 194 | ||||
Capital Expenditures | 0 | 20 | 51 | 21 | 88 | ||||
Drilling Services [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 6,694 | 18,923 | 33,099 | 69,269 | 66,645 | ||||
Operating costs | 4,709 | 10,774 | 25,165 | 46,777 | 48,699 | ||||
Gross margin | 1,985 | 8,149 | 7,934 | 22,492 | 17,946 | ||||
Identifiable assets | 198,438 | 207,894 | 179,153 | 207,894 | 179,153 | ||||
Depreciation and amortization | 3,088 | 7,996 | 8,489 | 20,202 | 17,927 | ||||
Capital Expenditures | 622 | 727 | $ 3,636 | 5,135 | $ 6,586 | ||||
Drilling Rigs | drilling_rigs | 25 | 25 | |||||||
Drilling Services [Member] | Domestic Drilling [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 5,866 | 17,450 | $ 23,414 | 53,341 | $ 45,897 | ||||
Operating costs | 3,646 | 9,236 | 17,405 | 33,101 | 32,864 | ||||
Gross margin | 2,220 | 8,214 | 6,009 | 20,240 | 13,033 | ||||
Identifiable assets | 150,897 | [1] | 158,283 | 138,473 | 158,283 | 138,473 | |||
Depreciation and amortization | 2,012 | 7,153 | 5,975 | 18,058 | 12,265 | ||||
Capital Expenditures | 484 | 621 | 2,231 | 3,862 | 4,616 | ||||
Intercompany receivable (payable) | 28,300 | 28,700 | 28,700 | ||||||
Drilling Services [Member] | International Drilling [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 828 | 1,473 | 9,685 | 15,928 | 20,748 | ||||
Operating costs | 1,063 | 1,538 | 7,760 | 13,676 | 15,835 | ||||
Gross margin | (235) | (65) | 1,925 | 2,252 | 4,913 | ||||
Identifiable assets | 47,541 | [1],[2] | 49,611 | [2] | 40,680 | 49,611 | [2] | 40,680 | |
Depreciation and amortization | 1,076 | 843 | 2,514 | 2,144 | 5,662 | ||||
Capital Expenditures | 138 | 106 | 1,405 | 1,273 | 1,970 | ||||
Intercompany receivable (payable) | $ (28,300) | $ (28,700) | $ (28,700) | ||||||
Drilling Services [Member] | Drilling Rigs | International Drilling [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Drilling Rigs | drilling_rigs | 5 | 5 | 5 | ||||||
Drilling Services [Member] | Assets Leased From Others [Member] | International Drilling [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Drilling Rigs | drilling_rigs | 3 | 3 | 3 | ||||||
Production Services [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 4,469 | 9,125 | $ 26,427 | 73,101 | $ 51,619 | ||||
Operating costs | 4,034 | 11,251 | 21,232 | 67,270 | 43,024 | ||||
Gross margin | 435 | (2,126) | 5,195 | 5,831 | 8,595 | ||||
Identifiable assets | 76,396 | 79,672 | 60,621 | 79,672 | 60,621 | ||||
Depreciation and amortization | 2,024 | 5,521 | 3,362 | 15,072 | 7,188 | ||||
Capital Expenditures | 90 | 316 | 871 | 3,768 | 1,698 | ||||
Production Services [Member] | Well Servicing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 3,756 | 6,331 | 18,033 | 31,947 | 32,890 | ||||
Operating costs | 2,810 | 5,926 | 13,445 | 26,877 | 25,333 | ||||
Gross margin | 946 | 405 | 4,588 | 5,070 | 7,557 | ||||
Identifiable assets | 47,832 | 49,388 | 41,284 | 49,388 | 41,284 | ||||
Depreciation and amortization | 1,261 | 3,039 | 2,555 | 7,820 | 5,491 | ||||
Capital Expenditures | 30 | 201 | 564 | 1,918 | 899 | ||||
Production Services [Member] | Wireline Services [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 713 | 2,410 | 8,394 | 35,543 | 18,729 | ||||
Operating costs | 1,085 | 3,552 | 7,754 | 31,836 | 17,632 | ||||
Gross margin | (372) | (1,142) | 640 | 3,707 | 1,097 | ||||
Identifiable assets | 22,623 | 23,948 | 17,998 | 23,948 | 17,998 | ||||
Depreciation and amortization | 763 | 2,011 | 807 | 5,088 | 1,697 | ||||
Capital Expenditures | 60 | 112 | 307 | 1,684 | 799 | ||||
Production Services [Member] | Coiled Tubing Services [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 0 | 384 | 0 | 5,611 | 0 | ||||
Operating costs | 139 | 1,773 | 33 | 8,557 | 59 | ||||
Gross margin | (139) | (1,389) | (33) | (2,946) | (59) | ||||
Identifiable assets | 5,941 | 6,336 | 1,339 | 6,336 | 1,339 | ||||
Depreciation and amortization | 0 | 471 | 0 | 2,164 | 0 | ||||
Capital Expenditures | $ 0 | $ 3 | $ 0 | $ 166 | $ 0 | ||||
[1] | Identifiable assets for our drilling segments include the impact of a $28.7 million and $28.3 million intercompany balance, as of JuneĀ 30, 2021 and 2020, respectively, between our domestic drilling segment (intercompany receivable) and our international drilling segment (intercompany payable). | ||||||||
[2] | Identifiable assets for our international drilling segment include five drilling rigs that are owned by our Colombia subsidiary and three drilling rigs that are owned by one of our domestic subsidiaries and leased to our Colombia subsidiary. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended |
Jun. 30, 2020 | May 31, 2020 | Jun. 30, 2021 | May 31, 2020 | Jun. 30, 2021 | |
Segment Reporting [Abstract] | |||||
Consolidated Gross Margin | $ 2,420 | $ 6,023 | $ 13,129 | $ 28,323 | $ 26,541 |
Depreciation and amortization | (5,236) | (13,663) | (11,944) | (35,647) | (25,309) |
General and administrative | (4,213) | (7,392) | (10,997) | (22,047) | (20,710) |
Prepetition restructuring charges | 0 | 252 | 0 | (16,822) | 0 |
Impairment | (388) | 0 | 0 | (17,853) | 0 |
Bad debt (expense) recovery, net | 283 | (482) | 198 | (1,209) | 395 |
Gain (loss) on dispositions of property and equipment, net | 460 | 272 | 1,072 | 989 | 3,370 |
Loss from operations | $ (6,674) | $ (14,990) | $ (8,542) | $ (64,266) | $ (15,713) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Jul. 05, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies [Line Items] | |||
Insurance premiums and deductibles | $ 3,671,000 | $ 3,928,000 | |
Subsequent Event [Member] | |||
Commitments and Contingencies [Line Items] | |||
Business Acquisition, Fees Contingent Upon Transaction Closing | $ 3,300,000 | ||
Patterson-UTI Energy, Inc. | Subsequent Event [Member] | |||
Commitments and Contingencies [Line Items] | |||
Business acquisition, amount payable by acquiree if agreement is terminated | $ 9,500,000 | ||
Health insurance [Member] | |||
Commitments and Contingencies [Line Items] | |||
Insurance premiums and deductibles | 600,000 | ||
Workers' compensation [Member] | |||
Commitments and Contingencies [Line Items] | |||
Insurance premiums and deductibles | 1,800,000 | ||
International Customs Duty | Not probable | |||
Commitments and Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 2,500,000 | ||
Sales and Use Tax [Member] | |||
Commitments and Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 1,000,000 | $ 900,000 |
Uncategorized Items - pes-20210
Label | Element | Value |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ 1,149,000 |
Common Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 8,893,000 |
Stockholders Equity Shares Elimination as Part of Reorganization | pes_StockholdersEquitySharesEliminationasPartofReorganization | (88,930,000) |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ 8,893,000 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 88,930,000 |
Treasury Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (5,098,000) |
Stockholders Equity Shares Elimination as Part of Reorganization | pes_StockholdersEquitySharesEliminationasPartofReorganization | 1,142,000 |
Treasury Stock, Common, Shares | us-gaap_TreasuryStockCommonShares | 1,142,000 |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ (5,098,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 553,631,000 |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | 553,631,000 |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (556,277,000) |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | $ (556,277,000) |