Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 18, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34037 | |
Entity Registrant Name | SUPERIOR ENERGY SERVICES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2379388 | |
Entity Address, Address Line One | 1001 Louisiana Street | |
Entity Address, Address Line Two | Suite 2900 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 654-2200 | |
Title of 12(b) Security | Common Stock, $.001 par value | |
Trading Symbol | SPN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,826,507 | |
Entity Central Index Key | 0000886835 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 252,221 | $ 272,624 |
Accounts receivable, net of allowance for doubtful accounts of $11,891 and $12,156 at March 31, 2020 and December 31, 2019, respectively | 310,902 | 332,047 |
Income taxes receivable | 29,914 | 740 |
Prepaid expenses | 38,902 | 49,132 |
Inventory and other current assets | 125,718 | 117,629 |
Assets held for sale | 121,080 | 216,197 |
Total current assets | 878,737 | 988,369 |
Property, plant and equipment, net of accumulated depreciation and depletion of $2,193,111 and $2,214,116 at March 31, 2020 and December 31, 2019, respectively | 620,017 | 664,949 |
Operating lease right-of-use assets | 76,533 | 80,906 |
Goodwill | 136,155 | 137,695 |
Notes receivable | 69,245 | 68,092 |
Restricted cash | 2,773 | 2,764 |
Intangible and other long-term assets, net of accumulated amortization of $23,459 and $23,199 at March 31, 2020 and December 31, 2019, respectively | 47,431 | 50,455 |
Total assets | 1,830,891 | 1,993,230 |
Current liabilities: | ||
Accounts payable | 73,144 | 92,966 |
Accrued expenses | 164,883 | 182,934 |
Current portion of decommissioning liabilities | 3,677 | 3,649 |
Liabilities held for sale | 8,226 | 44,938 |
Total current liabilities | 249,930 | 324,487 |
Long-term debt, net | 1,284,008 | 1,286,629 |
Decommissioning liabilities | 134,031 | 132,632 |
Operating lease liabilities | 57,948 | 62,354 |
Deferred income taxes | 7,129 | 3,247 |
Other long-term liabilities | 129,955 | 134,308 |
Stockholders’ equity (deficit): | ||
Preferred stock of $0.01 par value. Authorized - 5,000,000 shares; none issued | ||
Common stock of $0.001 par value, Authorized - 25,000,000, Issued - 15,798,428, Outstanding - 14,826,016 at March 31, 2020, Authorized - 25,000,000, Issued - 15,689,463, Outstanding - 14,717,051 at December 31, 2019 | 16 | 16 |
Additional paid-in capital | 2,755,178 | 2,752,859 |
Treasury stock at cost, 972,412 shares at March 31, 2020 and December 31, 2019, respectively | (4,290) | (4,290) |
Accumulated other comprehensive loss, net | (76,465) | (71,927) |
Accumulated deficit | (2,706,549) | (2,627,085) |
Total stockholders’ equity (deficit) | (32,110) | 49,573 |
Total liabilities and stockholders’ equity (deficit) | $ 1,830,891 | $ 1,993,230 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ 11,891 | $ 12,156 |
Accumulated depreciation and depletion on Property, plant and equipment | 2,193,111 | 2,214,116 |
Accumulated amortization of Intangible and other long-term assets | $ 23,459 | $ 23,199 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 15,798,428 | 15,689,463 |
Common stock, shares outstanding | 14,826,016 | 14,717,051 |
Treasury Stock, Shares | 972,412 | 972,412 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 321,497 | $ 365,274 |
Costs and expenses: | ||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) | 211,686 | 240,053 |
Depreciation, depletion, amortization and accretion | 41,355 | 56,343 |
General and administrative expenses | 65,157 | 71,112 |
Reduction in value of assets | 16,522 | |
Loss from operations | (13,223) | (2,234) |
Other expense: | ||
Interest expense, net | (25,134) | (25,121) |
Other expense | (4,232) | (1,612) |
Loss from continuing operations before income taxes | (42,589) | (28,967) |
Income taxes | (10,254) | 3,677 |
Net loss from continuing operations | (32,335) | (32,644) |
Loss from discontinued operations, net of income tax | (47,129) | (15,061) |
Net loss | $ (79,464) | $ (47,705) |
Basic and diluted loss per share: | ||
Net loss from continuing operations | $ (2.18) | $ (2.10) |
Loss from discontinued operations | (3.18) | (0.97) |
Net loss | $ (5.36) | $ (3.07) |
Weighted average shares outstanding | 14,809 | 15,578 |
Services [Member] | ||
Revenues: | ||
Total revenues | $ 180,236 | $ 239,274 |
Costs and expenses: | ||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) | 140,199 | 178,725 |
Depreciation, depletion, amortization and accretion | 23,159 | 36,622 |
Rentals [Member] | ||
Revenues: | ||
Total revenues | 100,105 | 91,036 |
Costs and expenses: | ||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) | 40,043 | 41,687 |
Depreciation, depletion, amortization and accretion | 12,820 | 15,663 |
Product Sales [Member] | ||
Revenues: | ||
Total revenues | 41,156 | 34,964 |
Costs and expenses: | ||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) | 31,444 | 19,641 |
Depreciation, depletion, amortization and accretion | $ 5,376 | $ 4,058 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidated Statements of Comprehensive Loss [Abstract] | ||
Net loss | $ (79,464) | $ (47,705) |
Change in cumulative translation adjustment, net of tax | (4,538) | 1,073 |
Comprehensive loss | $ (84,002) | $ (46,632) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (79,464) | $ (47,705) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation, depletion, amortization and accretion | 41,355 | 82,439 | |
Deferred income taxes | 3,882 | ||
Reduction in value of assets | 16,522 | ||
Reduction in value of assets held for sale | 46,358 | ||
Right-of-use assets amortization | 4,373 | 5,741 | |
Stock-based compensation expense | 3,584 | 8,453 | |
Other reconciling items, net | 1,776 | (9,727) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,448) | 26,590 | |
Prepaid expenses | 4,129 | (7,333) | |
Inventory and other current assets | (2,077) | 1,392 | |
Accounts payable | (17,086) | (8,172) | |
Accrued expenses | (20,540) | (17,709) | |
Income taxes | (28,479) | ||
Other, net | (3,125) | (6,590) | |
Net cash provided by (used in) operating activities | (32,240) | 27,379 | |
Cash flows from investing activities: | |||
Payments for capital expenditures | (18,563) | (41,160) | |
Proceeds from sales of assets | 33,045 | 5,066 | |
Net cash provided by (used in) investing activities | 14,482 | (36,094) | |
Cash flows from financing activities: | |||
Tax withholdings for vested restricted stock units | (208) | (1,667) | |
Net cash used in financing activities | (208) | (1,667) | |
Effect of exchange rate changes on cash | (2,428) | 924 | |
Net change in cash, cash equivalents, and restricted cash | (20,394) | (9,458) | |
Cash, cash equivalents, and restricted cash at beginning of period | 275,388 | 163,748 | $ 163,748 |
Cash, cash equivalents, and restricted cash at end of period | $ 254,994 | $ 154,290 | $ 275,388 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Accumulated Deficit [Member] | Total |
Balances at Dec. 31, 2018 | $ 155 | $ 2,735,125 | $ (73,177) | $ (2,371,364) | $ 290,739 | |
Beginning balance, shares at Dec. 31, 2018 | 15,488,542 | |||||
Net loss | (47,705) | (47,705) | ||||
Foreign currency translation adjustment | 1,073 | 1,073 | ||||
Stock-based compensation expense, net of forfeitures | 5,625 | 5,625 | ||||
Transactions under stock plans, value | $ 1 | (1,667) | (1,666) | |||
Transactions under stock plans, shares | 107,118 | |||||
Balances at Mar. 31, 2019 | $ 156 | 2,739,083 | (72,104) | (2,419,069) | 248,066 | |
Ending balance, shares at Mar. 31, 2019 | 15,595,660 | |||||
Balances at Dec. 31, 2018 | $ 155 | 2,735,125 | (73,177) | (2,371,364) | 290,739 | |
Beginning balance, shares at Dec. 31, 2018 | 15,488,542 | |||||
Balances at Dec. 31, 2019 | $ 16 | 2,752,859 | $ (4,290) | (71,927) | (2,627,085) | 49,573 |
Ending balance, shares at Dec. 31, 2019 | 15,689,463 | |||||
Net loss | (79,464) | (79,464) | ||||
Foreign currency translation adjustment | (4,538) | (4,538) | ||||
Stock-based compensation expense, net of forfeitures | 2,527 | 2,527 | ||||
Transactions under stock plans, value | (208) | (208) | ||||
Transactions under stock plans, shares | 108,965 | |||||
Balances at Mar. 31, 2020 | $ 16 | $ 2,755,178 | $ (4,290) | $ (76,465) | $ (2,706,549) | $ (32,110) |
Ending balance, shares at Mar. 31, 2020 | 15,798,428 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Certain information and footnote disclosures normally in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC); however, management believes the disclosures that are made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Superior Energy Services, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019, and Management’s Discussion and Analysis of Financial Condition and Results of Operations herein. The financial information of Superior Energy Services, Inc. and its subsidiaries (the Company) for the three months ended March 31, 2020 and 2019 has not been audited. However, in the opinion of management, all adjustments necessary to present fairly the results of operations for the periods presented have been included therein. Certain previously reported amounts have been reclassified to conform to the 2020 presentation. The results of operations for the first three months of the year are not necessarily indicative of the results of operations that might be expected for the entire year. On December 18, 2019, the Company amended its articles of incorporation to effect a reverse stock split of the issued and outstanding shares of its common stock pursuant to which each 10 shares of the Company’s issued and outstanding common stock were combined into one share of the Company’s common stock, and the authorized number of the Company’s common stock was proportionally reduced to 25 million shares. Fractional shares of common stock resulting from the reverse stock split were settled in cash. All shares of common stock and per share data presented in the condensed consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented. The Company evaluates events that occur after the balance sheet date but before the financial statements are issued for potential recognition or disclosure. Based on the evaluation, the Company determined that there were no material subsequent events, other than as described below, that required disclosure or recognition in these condensed consolidated financial statements. Recent Developments Combination On December 18, 2019, the Company entered into a definitive merger agreement (as amended on February 20, 2020, the Merger Agreement) to divest its U.S. service rig, coiled tubing, wireline, pressure control, flowback, fluid management and accommodations service lines (the Superior Energy U.S. Business) and combine them with Forbes Energy Services Ltd. (Forbes) to create a new consolidation platform for U.S. completion, production and water solutions (the Combination). While the Company and Forbes have worked diligently to complete the Combination, the significant reduction in crude oil prices caused primarily by the COVID-19 pandemic has resulted in a significant decline in demand for services provided by the Superior Energy U.S. Business and Forbes. While management continues to believe that the Company should be separated into two distinct companies as contemplated by the Combination, the COVID-19 pandemic and oil price decline have made it impractical to complete the Combination on the terms originally contemplated. As a result, the Company expects the Merger Agreement will be terminated in accordance with its terms on May 31, 2020. Related Financing Transactions As a condition of the Combination, SESI, L.L.C. (SESI), the Company’s wholly owned subsidiary, consummated an offer to exchange (the Exchange Offer) up to $ 635.0 million of SESI’s previously outstanding $ 800.0 million aggregate principal amount of 7.125 % Senior Notes due 2021 (the Original Notes) for up to $ 635.0 million aggregate principal amount of SESI’s 7.125 % Senior Notes due 2021 (the New Notes) and conducted a concurrent consent solicitation (the Consent Solicitation) to amend the liens covenant in the indenture (the Proposed Amendment) governing the Original Notes (the Original Notes Indenture) to permit the issuance of the 8.750 % Senior Second Lien Secured Notes due 2026 (the Superior Secured Notes) to be issued by SESI upon the terms and subject to the conditions set forth in SESI’s offering memorandum and consent solicitation statement, dated as of January 6, 2020 (as amended by the press releases dated January 16, 2020, January 22, 2020, January 31, 2020, February 19, 2020 and February 20, 2020 issued by the Company and Supplement No. 1 to the Offering Memorandum and Consent Solicitation, dated as of January 31, 2020 (the Offering Memorandum)). A supplemental indenture by and among SESI, the guarantors party thereto and the Bank of New York Mellon Trust Company, N.A., as trustee, related to the Proposed Amendment was executed on February 14, 2020. The Exchange Offer expired at 5:00 p.m., New York City time, on February 21, 2020. If the Combination is not consummated by May 31, 2020 or is earlier terminated or abandoned, the New Notes issued in the Exchange Offer will be automatically exchanged for an equal principal amount of Original Notes to be issued as “Additional Notes” under the Original Notes Indenture, which notes shall accrue interest from the Termination Exchange Date at a rate of 7.125 % per year (the “Termination Exchange”). Accordingly, if the Termination Exchange occurs, (i) the 9.750 % Senior Second Lien Secured Notes due 2025 will no t be issued by Arita Energy, Inc., the 8.750 % Senior Second Lien Secured Notes due 2026 will no t be issued by SESI, the $ 6.35 million in cash constituting the total consent payment will no t be made and the Proposed Amendment will not become operative and (ii) eligible holders of New Notes that were issued in exchange for Original Notes in the Exchange Offer will receive, pursuant to the Termination Exchange, an aggregate principal amount of Original Notes equal to the Exchange Consideration (as defined in the Offering Memorandum). COVID-19 Pandemic and Market Conditions The Company’s operations were disrupted due to the circumstances surrounding the COVID-19 pandemic including, but not limited to, suggested and mandated social distancing and stay at home orders, resulting in the Company having to modify its business practices. The Company experienced delays in the preparation of its financial statements as a result of the COVID-19 pandemic and availed itself of the SEC’s order (Release No. 34-88318) under Section 36 of the Securities Exchange Act of 1934, as amended (the Exchange Act), granting exemptions from specified provisions of the Exchange Act and certain rules thereunder, as amended by Release No. 34-88465 issued on March 25, 2020 to extend the original deadline of May 11, 2020 for the filing of this Quarterly Report. Management of the Company believes it has proactively addressed many of the known operational impacts of the COVID-19 pandemic to the extent possible and will strive to continue to do so, but there can be no guarantee the measures will be fully effective. Furthermore, the oil and gas industry has experienced unprecedented price disruptions during 2020, due in part to significantly decreased demand as a result of the COVID-19 pandemic and the announcement by Saudi Arabia of a significant increase in its maximum crude oil production capacity as well as the announcement by Russia that previously agreed upon oil production cuts between members of the Organization of the Petroleum Exporting Countries and its broader partners (OPEC+) would expire on April 1, 2020. On April 12, 2020, members of OPEC+ agreed to certain production cuts; however, these cuts are not expected to be enough to offset near-term demand loss attributable to the COVID-19 pandemic. Activity declined in the face of depressed crude oil pricing, with the average U.S. land rig count dropping 25 % in the first quarter of 2020 as compared to the first quarter of 2019. The global rig count has continued to decline during the beginning of the second quarter of 2020 as well. These market conditions have significantly impacted the Company’s business, with a more severe impact to the North American business in the first quarter of 2020. As customers continue to revise their capital budgets in order to adjust spending levels in response to lower commodity prices, the Company has experienced significant pricing pressure for its products and services. The Company expects such pricing pressure to continue during the remainder of 2020 if the economic climate in the United States and abroad continues to deteriorate. Ransomware Attack On March 31, 2020, the Company detected a ransomware attack on its network that temporarily disrupted access to some systems. The Company immediately took steps to isolate affected systems and contain disruption to the Company’s information technology infrastructure. The Company also implemented measures to prevent additional systems from being affected, including taking systems offline as a precaution. The Company engaged third party information technology experts to restore and recover those affected systems to full functionality as quickly as possible. The Company believes there has not been any material impact to its operating activities or its controls over financial reporting. The Company does not believe that this incident will have a long-term material adverse impact on its business, results of operations or financial condition. The Company has implemented enhanced security features and monitoring procedures to mitigate the likelihood of similar future events. New York Stock Exchange Notice On March 30, 2020, the Company received a written notice from the New York Stock Exchange (the NYSE) notifying the Company that it was not in compliance with the continued listing standards set forth in Section 802.01B of the NYSE Listed Company Manual because the average global market capitalization of the Company’s common stock over a consecutive 30 trading-day period was less than $50 million and, at the same time, its stockholders’ equity was less than $50 million (the $50 Million Standard). In response to the significant volatility in the financial markets caused by the COVID-19 pandemic, on April 21, 2020, the SEC approved, with immediate effectiveness, the NYSE’s proposal to permit a longer cure period for NYSE-listed companies to regain compliance with the $50 Million Standard by tolling their respective compliance periods through June 30, 2020 (the Tolling Order). Under the NYSE rules, the Company would normally have 18 months to cure the noncompliance (the 18-Month Cure Period). However, in accordance with the Tolling Order, the Company’s 18-Month Cure Period will be paused through June 30, 2020, and will resume on July 1, 2020. On May 14, 2020, the Company submitted its plan (the Plan) to cure the deficiency and regain compliance with the $50 Million Standard. If the NYSE accepts the Company’s Plan, the Company’s common stock will continue to be traded on the NYSE during the 18-Month Cure Period, as extended by the Tolling Order, subject to the Company’s compliance with the Plan and other continued listing requirements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Revenue | (2) Revenue Revenue Recognition Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered, rentals provided and products sold. Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in the Company’s financial statements. Performance Obligations A performance obligation arises under contracts with customers to render services, provide rentals or sell products, and is the unit of account under Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) . The Company accounts for services rendered and rentals provided separately if they are distinct and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. A contract’s standalone selling prices are determined based on the prices that the Company charges for its services rendered, rentals provided, and products sold. The majority of the Company’s performance obligations are satisfied over time, which is generally represented by a period of 30 days or less. The Company’s payment terms vary by the type of products or services offered. The term between invoicing and when the payment is due is typically 30 days. Services Revenue: primarily represents amounts charged to customers for the completion of services rendered, including labor, products and supplies necessary to perform the service. Rates for these services vary depending on the type of services provided and can be based on a per job, per hour or per day basis. Rentals Revenue: primarily priced on a per day, per man hour or similar basis and consists of fees charged to customers for use of the Company’s rental equipment over the term of the rental period, which is generally less than twelve months. Product Sales Revenue: products are generally sold based upon purchase orders or contracts with the Company’s customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. The Company recognizes revenue from product sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured and delivery occurs as directed by the customer. The Company expenses sales commissions when incurred because the amortization period would have been one year or less. Disaggregation of revenue The following table presents the Company’s revenues by segment disaggregated by geography (in thousands): Three Months Ended March 31, 2020 2019 U.S. land Drilling Products and Services $ 36,656 $ 48,217 Onshore Completion and Workover Services 61,218 103,136 Production Services 30,667 40,666 Technical Solutions 6,137 11,920 Total U.S. land $ 134,678 $ 203,939 U.S. offshore Drilling Products and Services $ 37,224 $ 29,067 Onshore Completion and Workover Services - - Production Services 11,299 19,272 Technical Solutions 31,533 20,933 Total U.S. offshore $ 80,056 $ 69,272 International Drilling Products and Services $ 30,113 $ 23,795 Onshore Completion and Workover Services - - Production Services 59,538 43,512 Technical Solutions 17,112 24,756 Total International $ 106,763 $ 92,063 Total Revenues $ 321,497 $ 365,274 The following table presents the Company’s revenues by segment disaggregated by type (in thousands): Three Months Ended March 31, 2020 2019 Services Drilling Products and Services $ 14,576 $ 18,959 Onshore Completion and Workover Services 54,104 92,516 Production Services 82,794 87,994 Technical Solutions 28,762 39,805 Total services $ 180,236 $ 239,274 Rentals Drilling Products and Services $ 77,829 $ 69,958 Onshore Completion and Workover Services 7,114 10,620 Production Services 8,788 8,602 Technical Solutions 6,374 1,856 Total rentals $ 100,105 $ 91,036 Product Sales Drilling Products and Services $ 11,588 $ 12,162 Onshore Completion and Workover Services - - Production Services 9,922 6,854 Technical Solutions 19,646 15,948 Total product sales $ 41,156 $ 34,964 Total Revenues $ 321,497 $ 365,274 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory [Abstract] | |
Inventory | (3) Inventory Inventories are stated at the lower of cost or net realizable value. The Company applies net realizable value and obsolescence to the gross value of the inventory. Cost is determined using the first-in, first-out or weighted-average cost methods for finished goods and work-in-process. Supplies and consumables primarily consist of products used in our services provided to customers. The components of the inventory balances are as follows (in thousands): March 31, 2020 December 31, 2019 Finished goods $ 50,224 $ 45,127 Raw materials 16,151 16,130 Work-in-process 9,542 9,360 Supplies and consumables 35,038 33,322 Total $ 110,955 $ 103,939 |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Notes Receivable [Abstract] | |
Notes Receivable | (4) Notes Receivable Notes receivable consist of a commitment from the seller of an oil and gas property acquired by the Company related to costs associated with the abandonment of the acquired property. Pursuant to an agreement with the seller, the Company will invoice the seller an agreed upon amount at the completion of certain decommissioning activities. The gross amount of this obligation totals $ 115.0 million and is recorded at present value using an effective interest rate of 6.58 %. The related discount is amortized to interest income based on the expected timing of completion of the decommissioning activities. The Company recorded interest income related to notes receivable of $ 1.2 million and $ 1.0 million for the three months ended March 31, 2020 and 2019, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt [Abstract] | |
Debt | (5) Debt The Company’s outstanding debt is as follows (in thousands): March 31, 2020 December 31, 2019 Stated Interest Rate (%) Long-term Senior unsecured notes due September 2024 7.750 $ 500,000 $ 500,000 New senior unsecured notes due December 2021 7.125 617,888 - Original senior unsecured notes due December 2021 7.125 182,112 800,000 Total debt, gross 1,300,000 1,300,000 Unamortized debt issuance costs ( 15,992 ) ( 13,371 ) Total debt, net $ 1,284,008 $ 1,286,629 Credit Facility The Company has an asset-based revolving credit facility which matures in October 2022. The borrowing base under the credit facility is calculated based on a formula referencing the borrower’s and the subsidiary guarantors’ eligible accounts receivable, eligible inventory and eligible premium rental drill pipe less reserves. Availability under the credit facility is the lesser of (i) the commitments, (ii) the borrowing base and (iii) the highest principal amount permitted to be secured under the indenture governing the 7.125 % senior unsecured notes due 2021. On March 2, 2020, the Company amended its credit facility to increase the capacity for foreign letters of credit from $ 25.0 million to $ 40.0 million. At March 31, 2020, the borrowing base was $ 201.2 million and the Company had $ 103.4 million of letters of credit outstanding that reduced its borrowing availability under the revolving credit facility. The credit agreement contains various covenants, including, but not limited to, limitations on the incurrence of indebtedness, permitted investments, liens on assets, making distributions, transactions with affiliates, merger, consolidations, dispositions of assets and other provisions customary in similar types of agreements. Senior Unsecured Notes In connection with the Exchange Offer, $ 617.9 million aggregate principal amount of outstanding Original Notes were validly tendered for exchange and not withdrawn, representing 77.24 % of the aggregate principal amount of Original Notes outstanding upon commencement of the Exchange Offer. SESI accepted all validly tendered Original Notes and issued $ 617.9 million aggregate principal amount of New Notes pursuant to the New Notes Indenture. As a result of the Exchange Offer, as of March 31, 2020, the Company has outstanding $ 182.1 million of Original Notes and $ 617.9 million of New Notes due December 2021. The Original Notes Indenture requires semi-annual interest payments on June 15 and December 15 of each year through the maturity date of December 15, 2021.The New Notes Indenture requires semi-annual interest payments on June 15 and December 15 of each year through the maturity date of December 15, 2021. The Company also has outstanding $ 500 million of senior unsecured notes due September 2024. The indenture governing the 7.75 % senior unsecured notes due 2024 requires semi-annual interest payments on March 15 and September 15 of each year through the maturity date of September 15, 2024. |
Decommissioning Liabilities
Decommissioning Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Decommissioning Liabilities [Abstract] | |
Decommissioning Liabilities | (6) Decommissioning Liabilities The Company’s decommissioning liabilities associated with an oil and gas property and its related assets include liabilities related to the plugging of wells, removal of the related platform and equipment, and site restoration. The Company reviews the adequacy of its decommissioning liabilities whenever indicators suggest that the estimated cash flows and/or relating timing needed to satisfy the liability have changed materially. The Company had decommissioning liabilities of $ 137.7 million and $ 136.3 million at March 31, 2020 and December 31, 2019, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | (7) Leases Accounting Policy for Leases The Company determines if an arrangement is a lease at inception. All of the Company’s leases are operating leases and are included in right-of-use (ROU) assets, accounts payable and operating lease liabilities in the condensed consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease. Overview The Company’s operating leases are primarily for real estate, machinery and equipment, and vehicles. The terms and conditions for these leases vary by the type of underlying asset. Total operating lease expense was as follows (in thousands): Three Months Ended March 31, 2020 2019 Long-term fixed lease expense $ 7,473 $ 8,105 Long-term variable lease expense 124 87 Short-term lease expense 4,423 5,278 Total operating lease expense $ 12,020 $ 13,470 Supplemental Balance Sheet and Cash Flows Information Operating leases were as follows (in thousands): March 31, 2020 December 31, 2019 Operating lease ROU assets $ 76,533 $ 80,906 Accrued expenses $ 20,509 $ 21,072 Operating lease liabilities 57,948 62,354 Total operating lease liabilities $ 78,457 $ 83,426 Weighted average remaining lease term 9 years 9 years Weighted average discount rate 6.75 % 6.75 % Three Months Ended March 31, 2020 2019 Cash paid for operating leases $ 7,757 $ 8,742 ROU assets obtained in exchange for lease obligations $ 1,465 $ 6,877 Maturities of operating lease liabilities at March 31, 2020 are as follows (in thousands): Remainder of 2020 $ 20,996 2021 21,966 2022 14,603 2023 10,996 2024 8,024 Thereafter 46,002 Total lease payments 122,587 Less imputed interest 44,130 Total $ 78,457 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair value hierarchy are as follows. Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 : Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in inactive markets; or model-derived valuations or other inputs that can be corroborated by observable market data. Level 3 : Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The following tables provide a summary of the financial assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value at March 31, 2020 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ - $ 13,144 $ - $ 13,144 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 2,156 $ - $ 2,156 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 18,266 $ - $ 18,266 Total debt $ 393,531 $ - $ - $ 393,531 Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ - $ 15,499 $ - $ 15,499 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 1,372 $ - $ 1,372 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 23,466 $ - $ 23,466 Total debt $ 1,021,300 $ - $ - $ 1,021,300 The Company’s non-qualified deferred compensation plans allow officers, certain highly compensated employees and non-employee directors to defer receipt of a portion of their compensation and contribute such amounts to one or more hypothetical investment funds. These investments are reported at fair value based on unadjusted quoted prices in active markets for identifiable assets and observable inputs for similar assets and liabilities, which represent Levels 1 and 2, respectively, in the fair value hierarchy. The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued expenses, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities. The fair value of the debt instruments is determined by reference to the market value of such instruments as quoted in an over-the-counter market, which represents Level 1 in the fair value hierarchy. The following table reflects the fair value measurements used in testing the impairment of long-lived assets (in thousands): March 31, 2020 Impairment Fair Value Property, plant and equipment, net $ 16,522 $ 13,593 Fair value is measured as of impairment date using Level 3 inputs. See Note 10 for a discussion of the reduction in value of assets recorded during the three months ended March 31, 2020. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | (9) Segment Information Business Segments The Drilling Products and Services segment rents and sells premium drill pipe, bottom hole assemblies, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. It also provides on-site accommodations and machining services. The Onshore Completion and Workover Services segment provides fluid handling services and workover and maintenance services. The Production Services segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services. The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well containment systems, stimulation and sand control services and the production and sale of oil and gas. The Company evaluates the performance of its reportable segments based on income or loss from operations excluding corporate expenses. The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets. The Company uses this segment measure to evaluate its reportable segments because it is the measure that is most consistent with how the Company organizes and manages its business operations. Corporate and other costs primarily include expenses related to support functions, salaries and benefits for corporate employees and stock-based compensation expense. Summarized financial information for the Company’s segments is as follows (in thousands): Three Months Ended March 31, 2020 Onshore Drilling Completion Products and and Workover Production Technical Corporate and Consolidated Services Services Services Solutions Other Total Revenues $ 103,993 $ 61,218 $ 101,504 $ 54,782 $ - $ 321,497 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion 34,963 52,589 82,612 41,522 - 211,686 Depreciation, depletion, amortization and accretion 17,790 6,313 10,838 5,345 1,069 41,355 General and administrative expenses 14,513 5,314 7,855 13,991 23,484 65,157 Reduction in value of assets - - 4,096 12,426 - 16,522 Income (loss) from operations 36,727 ( 2,998 ) ( 3,897 ) ( 18,502 ) ( 24,553 ) ( 13,223 ) Interest income (expense), net - - - 1,173 ( 26,307 ) ( 25,134 ) Other expense - - - - ( 4,232 ) ( 4,232 ) Income (loss) from continuing operations before income taxes $ 36,727 $ ( 2,998 ) $ ( 3,897 ) $ ( 17,329 ) $ ( 55,092 ) $ ( 42,589 ) Three Months Ended March 31, 2019 Onshore Drilling Completion Products and and Workover Production Technical Corporate and Consolidated Services Services Services Solutions Other Total Revenues $ 101,079 $ 103,136 $ 103,450 $ 57,609 $ - $ 365,274 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion 42,205 81,689 79,881 36,278 - 240,053 Depreciation, depletion, amortization and accretion 23,026 11,647 14,140 6,310 1,220 56,343 General and administrative expenses 14,569 7,842 7,812 15,937 24,952 71,112 Income (loss) from operations 21,279 1,958 1,617 ( 916 ) ( 26,172 ) ( 2,234 ) Interest income (expense), net - - - 1,018 ( 26,139 ) ( 25,121 ) Other expense - - - - ( 1,612 ) ( 1,612 ) Income (loss) from continuing operations before income taxes $ 21,279 $ 1,958 $ 1,617 $ 102 $ ( 53,923 ) $ ( 28,967 ) Identifiable Assets Onshore Drilling Completion Products and and Workover Production Technical Corporate and Consolidated Services Services Services Solutions Other Total March 31, 2020 $ 681,004 $ 353,331 $ 422,673 $ 309,719 $ 64,164 $ 1,830,891 December 31, 2019 $ 659,621 467,697 $ 421,848 $ 377,627 $ 66,437 $ 1,993,230 Geographic Segments The Company attributes revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or rented. Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period. The Company’s revenue attributed to the U.S. and to other countries and the value of its long-lived assets by those locations are as follows (in thousands): Revenues Three Months Ended March 31, 2020 2019 United States $ 214,734 $ 273,211 Other countries 106,763 92,063 Total $ 321,497 $ 365,274 Long-Lived Assets March 31, 2020 December 31, 2019 United States $ 447,308 $ 489,189 Other countries 172,709 175,760 Total $ 620,017 $ 664,949 |
Reduction in Value of Assets
Reduction in Value of Assets | 3 Months Ended |
Mar. 31, 2020 | |
Reduction in Value of Assets [Abstract] | |
Reduction in Value of Assets | (10) Reduction in Value of Assets During the first quarter of 2020, in line with the rapidly changing market conditions, the Company’s market capitalization also deteriorated. The Company determined that the recent events constituted a triggering event that required the Company to review the recoverability of its long-lived assets and to perform an interim goodwill impairment as of March 31, 2020. Reduction in Value of Long-Lived Assets Long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of such assets to their fair value calculated, in part, by the estimated undiscounted future cash flows expected to be generated by the assets. Cash flow estimates are based upon, among other things, historical results adjusted to reflect the best estimate of future market rates, utilization levels, and operating performance. Estimates of cash flows may differ from actual cash flows due to, among other things, changes in economic conditions or changes in an asset’s operating performance. The Company’s assets are grouped by line of business or division for the impairment testing, which represents the lowest level of identifiable cash flows. If the asset grouping’s fair value is less than the carrying amount of the asset grouping, impairment losses are recorded in the amount by which the carrying amount of asset grouping exceeds the fair value. The estimate of fair value represents the Company’s best estimate based on industry trends and reference to market transactions and is subject to variability. During the three months ended March 31, 2020, the Company recorded $ 16.5 million in connection with the reduction in the value of its long-lived assets. The reduction in value of assets was comprised of $ 4.1 million and $ 12.4 million related to property, plant and equipment in the Production Services segment and the Technical Solutions segment, respectively. Goodwill The Company performs the goodwill impairment test on an annual basis as of October 1 or more often if events or circumstances indicate there may be an impairment. Goodwill impairment testing is performed at the reporting unit level, which is consistent with the reporting segments. The Company assesses whether any indicators of impairment exist, which requires a significant amount of judgment. Such indicators may include a sustained decrease in the Company’s stock price and market capitalization, a decline in the expected future cash flows, overall weakness in the industry, and slower growth rates. Goodwill impairment exists when the estimated fair value of the reporting unit is below the carrying value. In estimating the fair value of the reporting units, the Company uses a combination of an income approach and a market-based approach. Income approach – The Company discounts the expected cash flows of each reporting unit. The discount rate used represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in the Company’s operations and cash flows and the rate of return an outside investor would expect to earn. Market-based approach – The Company uses the guideline public company method, which focuses on comparing the Company’s risk profile and growth prospects to select reasonably similar publicly traded companies. The Company weighs the income approach 80 % and the market-based approach 20 % due to differences between the Company’s reporting units and the peer companies’ size, profitability and diversity of operations. In order to validate the reasonableness of the estimated fair values obtained for the reporting units, a reconciliation of fair value to market capitalization is performed for each unit on a standalone basis. A control premium, derived from market transaction data, is used in this reconciliation to ensure that fair values are reasonably stated in conjunction with the Company’s capitalization. The Company uses all available information to estimate fair value of the reporting units, including discounted cash flows. A significant amount of judgment is involved in performing these evaluations given that the results are based on estimated future events. The result of the goodwill impairment assessment indicated that the fair value of the Drilling Products and Services segment exceeded its net book value and, therefore, no goodwill impairment was recorded. The Company will continue to evaluate the Drilling Products and Services segment for potential goodwill impairment in the second quarter of 2020 as market conditions evolve. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | (11) Stock-Based Compensation Plans The Company maintains various stock incentive plans that provide long-term incentives to the Company’s key employees, including officers, directors, consultants and advisors (the Eligible Participants). Under the stock incentive plans, the Company may grant incentive stock options, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards or any combination thereof to Eligible Participants. The Company’s total compensation expense related to these plans was approximately $ 3.6 million and $ 8.0 million for the three months ended March 31, 2020 and 2019, respectively, which is reflected in general and administrative expenses. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | (12) Income Taxes On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a substantial tax relief and spending package intended to provide economic stimulus to address the impact of the COVID-19 pandemic. The CARES Act allows corporations with net operating losses generated in 2018, 2019 and 2020 to elect to carryback those losses for a period of five years and relaxes the limitation for business interest deductions for 2019 and 2020. Under the provisions of the CARES Act, the Company anticipates receiving a refund of approximately $ 30.0 million during the second half of 2020. The Company had $ 13.2 million of unrecorded tax benefits as of each of March 31, 2020 and December 31, 2019, all of which would impact the Company’s effective tax rate if recognized. It is the Company’s policy to recognize interest and applicable penalties, if any, related to uncertain tax positions in income tax expense. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (13) Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional shares of common stock that could have been outstanding assuming the exercise of stock options and the conversion of restricted stock units. The Company incurred a loss from continuing operations for the three months ended March 31, 2020 and 2019; therefore the impact of any incremental shares would be anti-dilutive. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Contingencies [Abstract] | |
Contingencies | (14) Contingencies Due to the nature of the Company’s business, the Company is involved, from time to time, in routine litigation or subject to disputes or claims regarding its business activities. Legal costs related to these matters are expensed as incurred. In management’s opinion, none of the pending litigation, disputes or claims is expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. A subsidiary of the Company is involved in legal proceedings with two employees regarding the payment of royalties for a patentable product developed by them. On April 2, 2018, the employees filed a lawsuit in the Harris County District Court alleging that the royalty payments they had received since 2010 should have been higher. In May 2019, the jury issued a verdict in favor of the plaintiffs. On October 25, 2019, the court issued a final judgment against the Company. The Company strongly disagrees with the verdict and believes the district court committed several legal errors that should result in a reversal or remand of the case by the Court of Appeals. The ultimate resolution of this matter could result in a loss of up to $ 7.4 million in excess of amounts accrued. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | (15) Supplemental Guarantor Information SESI, L.L.C. (the Issuer), a 100 % owned subsidiary of Superior Energy Services, Inc. (the Parent), has $ 500 million of 7.75 % senior unsecured notes due 2024 (the SESI 2024 notes). The Parent, along with certain of its direct and indirect 100% owned domestic subsidiaries (the subsidiary guarantors, and together with the Parent, the guarantors), have entered into guarantees of the outstanding SESI 2024 notes (the guarantees). All guarantees provided by the guarantors are full and unconditional, joint and several, except that the guarantee of any subsidiary guarantor may be released under certain customary circumstances, including (i) in connection with a sale or other disposition of all or substantially all of the assets of the applicable subsidiary guarantor (including by way of merger or consolidation) to a person that is not the Issuer, Parent or a subsidiary of the Issuer; (ii) in connection with a sale or other disposition of all of the capital stock of such subsidiary guarantor to a person that is not the Parent or Issuer or their respective subsidiaries; and (iii) upon legal defeasance or satisfaction and discharge of the indenture governing the SESI 2024 notes. The Parent will be released from its guarantee only in connection with any legal defeasance or satisfaction and discharge of the indenture. With respect to each guarantor, each guarantee is a general unsecured senior obligation of such guarantor and ranks equally in right of payment with all existing and future senior unsecured indebtedness of such guarantor; is senior in right of payment to any future subordinated obligations of such guarantor; and is effectively subordinated to existing and future secured indebtedness of such guarantor to the extent of the value of the assets securing that indebtedness. The guarantee obligations of the Parent and each subsidiary guarantor is limited as necessary to prevent the guarantee from constituting a fraudulent conveyance under applicable law. If a guarantee were rendered voidable, it could be subordinated by a court to all other indebtedness (including guarantees and other contingent liabilities) of the applicable guarantor, and, depending on the amount of such indebtedness, such guarantor’s liability on its guarantee could be reduced to zero. The SESI 2024 notes and the guarantees are structurally subordinated to all indebtedness and other obligations of any of the subsidiary guarantors that do not guarantee the SESI 2024 notes (the non-guarantor subsidiaries). Such non-guarantor subsidiaries have no obligation, contingent or otherwise, to pay amounts due under the SESI 2024 notes or to make funds available to pay those amounts, whether by dividends, distributions, loans or other payments. The following summarized financial information presents the financial information of the Parent, Issuer and the subsidiary guarantors (collectively, the Obligor Group), on a combined basis, after elimination of (i) intercompany transactions and balances among the Parent, Issuer and the subsidiary guarantors and (ii) equity in earnings from and investments in any subsidiary of the Parent that is not the Issuer or a subsidiary guarantor. OBLIGOR GROUP Summarized Balance Sheets Information (in thousands) (unaudited) March 31, 2020 December 31, 2019 Current assets $ 693,625 $ 789,562 Noncurrent assets 1,087,934 1,134,238 Total assets $ 1,781,559 $ 1,923,800 Current liabilities $ 191,968 $ 261,743 Noncurrent liabilities 2,044,725 2,039,138 Total liabilities $ 2,236,693 $ 2,300,881 OBLIGOR GROUP Summarized Statements of Operations Information (in thousands) (unaudited) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Total revenues $ 245,797 $ 1,126,456 Cost of revenues 160,926 723,451 Loss from operations before income taxes ( 37,265 ) ( 92,731 ) Income taxes ( 12,325 ) 6,102 Net loss from continuing operations ( 24,940 ) ( 98,833 ) Loss from discontinued operations, net of tax ( 47,129 ) ( 177,968 ) Net loss attributable to the obligor group $ ( 72,069 ) $ ( 276,801 ) The same accounting policies as described in Note 1 to the consolidated financial statements included in this Quarterly Report are used by the Parent and each of its subsidiaries in connection with the summarized financial information presented above. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | (16) Discontinued Operations On December 10, 2019, the Company’s indirect, wholly owned subsidiary, Pumpco Energy Services, Inc. (Pumpco), completed its existing hydraulic fracturing field operations and determined to discontinue, wind down and exit its hydraulic fracturing operations. The Company intends to maintain an adequate number of employees to efficiently wind down Pumpco’s business. The financial results of Pumpco’s operations have historically been included in the Company’s Onshore Completions and Workover Services segment. The Company intends to sell Pumpco’s fixed assets over time during the next twelve months. The following table summarizes the components of loss from discontinued operations, net of tax for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Revenues $ 254 $ 101,902 Cost of services 5,459 90,110 Loss from discontinued operations before tax ( 59,651 ) ( 17,037 ) Loss from discontinued operations, net of income tax 47,129 ( 15,061 ) For the three months ended March 31, 2020, loss from discontinued operations included $ 46.4 million in the reduction in value of assets relating to the impairment of property, plant and equipment. The following summarizes the assets and liabilities related to the Pumpco business reported as discontinued operations (in thousands): March 31, 2020 December 31, 2019 Current assets: Accounts receivable, net $ - $ 25,106 Other current assets 4,894 6,215 Total current assets $ 4,894 $ 31,321 Property, plant and equipment, net 115,363 179,144 Operating lease ROU assets 823 5,732 Total assets $ 121,080 $ 216,197 Current liabilities: Accounts payable $ 495 $ 14,370 Accrued expenses 4,335 24,751 Total current liabilities 4,830 39,121 Operating lease liabilities 2,994 5,415 Other long-term liabilities 402 402 Total liabilities $ 8,226 $ 44,938 Significant operating non-cash items of Pumpco and cash flows from investing activities were as follows (in thousands): Three Months Ended March 31, 2020 2019 Cash flows from discontinued operating activities: Depreciation and amortization $ - $ 26,096 Reduction in value of assets 46,358 - Cash flows from discontinued investing activities: Payments for capital expenditures $ - $ ( 14,931 ) Proceeds from sales of assets 8,449 - |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | (17) New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (the FASB) issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This update improves financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope by using the Current Expected Credit Losses model (the CECL). The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses on financial instruments at the time the asset is originated or acquired. This update will apply to receivables arising from revenue transactions. The new standard is effective for the Company beginning on January 1, 2023. The Company is evaluating the effect ASU 2016-13 will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs of a hosting arrangement that is a service contract will be expensed over the term of the hosting arrangement. The Company adopted the new standard on January 1, 2020 on a prospective basis with respect to all implementation costs incurred after the date of adoption. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new standard is effective for the Company beginning on January 1, 2021. The Company is evaluating the effect ASU 2019-12 will have on its consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Disaggregation Of Revenues | The following table presents the Company’s revenues by segment disaggregated by geography (in thousands): Three Months Ended March 31, 2020 2019 U.S. land Drilling Products and Services $ 36,656 $ 48,217 Onshore Completion and Workover Services 61,218 103,136 Production Services 30,667 40,666 Technical Solutions 6,137 11,920 Total U.S. land $ 134,678 $ 203,939 U.S. offshore Drilling Products and Services $ 37,224 $ 29,067 Onshore Completion and Workover Services - - Production Services 11,299 19,272 Technical Solutions 31,533 20,933 Total U.S. offshore $ 80,056 $ 69,272 International Drilling Products and Services $ 30,113 $ 23,795 Onshore Completion and Workover Services - - Production Services 59,538 43,512 Technical Solutions 17,112 24,756 Total International $ 106,763 $ 92,063 Total Revenues $ 321,497 $ 365,274 The following table presents the Company’s revenues by segment disaggregated by type (in thousands): Three Months Ended March 31, 2020 2019 Services Drilling Products and Services $ 14,576 $ 18,959 Onshore Completion and Workover Services 54,104 92,516 Production Services 82,794 87,994 Technical Solutions 28,762 39,805 Total services $ 180,236 $ 239,274 Rentals Drilling Products and Services $ 77,829 $ 69,958 Onshore Completion and Workover Services 7,114 10,620 Production Services 8,788 8,602 Technical Solutions 6,374 1,856 Total rentals $ 100,105 $ 91,036 Product Sales Drilling Products and Services $ 11,588 $ 12,162 Onshore Completion and Workover Services - - Production Services 9,922 6,854 Technical Solutions 19,646 15,948 Total product sales $ 41,156 $ 34,964 Total Revenues $ 321,497 $ 365,274 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory [Abstract] | |
Components Of Inventory | March 31, 2020 December 31, 2019 Finished goods $ 50,224 $ 45,127 Raw materials 16,151 16,130 Work-in-process 9,542 9,360 Supplies and consumables 35,038 33,322 Total $ 110,955 $ 103,939 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt [Abstract] | |
Schedule Of Long Term Debt | March 31, 2020 December 31, 2019 Stated Interest Rate (%) Long-term Senior unsecured notes due September 2024 7.750 $ 500,000 $ 500,000 New senior unsecured notes due December 2021 7.125 617,888 - Original senior unsecured notes due December 2021 7.125 182,112 800,000 Total debt, gross 1,300,000 1,300,000 Unamortized debt issuance costs ( 15,992 ) ( 13,371 ) Total debt, net $ 1,284,008 $ 1,286,629 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Operating Lease Expense | Three Months Ended March 31, 2020 2019 Long-term fixed lease expense $ 7,473 $ 8,105 Long-term variable lease expense 124 87 Short-term lease expense 4,423 5,278 Total operating lease expense $ 12,020 $ 13,470 |
Supplemental Balance Sheet Information | March 31, 2020 December 31, 2019 Operating lease ROU assets $ 76,533 $ 80,906 Accrued expenses $ 20,509 $ 21,072 Operating lease liabilities 57,948 62,354 Total operating lease liabilities $ 78,457 $ 83,426 Weighted average remaining lease term 9 years 9 years Weighted average discount rate 6.75 % 6.75 % Three Months Ended March 31, 2020 2019 Cash paid for operating leases $ 7,757 $ 8,742 ROU assets obtained in exchange for lease obligations $ 1,465 $ 6,877 |
Maturities Of Operating Lease Liabilities | Remainder of 2020 $ 20,996 2021 21,966 2022 14,603 2023 10,996 2024 8,024 Thereafter 46,002 Total lease payments 122,587 Less imputed interest 44,130 Total $ 78,457 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value at March 31, 2020 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ - $ 13,144 $ - $ 13,144 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 2,156 $ - $ 2,156 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 18,266 $ - $ 18,266 Total debt $ 393,531 $ - $ - $ 393,531 Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ - $ 15,499 $ - $ 15,499 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 1,372 $ - $ 1,372 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 23,466 $ - $ 23,466 Total debt $ 1,021,300 $ - $ - $ 1,021,300 |
Fair Value Measurements Used In Testing | March 31, 2020 Impairment Fair Value Property, plant and equipment, net $ 16,522 $ 13,593 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Schedule Of Segment Reporting Information | Three Months Ended March 31, 2020 Onshore Drilling Completion Products and and Workover Production Technical Corporate and Consolidated Services Services Services Solutions Other Total Revenues $ 103,993 $ 61,218 $ 101,504 $ 54,782 $ - $ 321,497 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion 34,963 52,589 82,612 41,522 - 211,686 Depreciation, depletion, amortization and accretion 17,790 6,313 10,838 5,345 1,069 41,355 General and administrative expenses 14,513 5,314 7,855 13,991 23,484 65,157 Reduction in value of assets - - 4,096 12,426 - 16,522 Income (loss) from operations 36,727 ( 2,998 ) ( 3,897 ) ( 18,502 ) ( 24,553 ) ( 13,223 ) Interest income (expense), net - - - 1,173 ( 26,307 ) ( 25,134 ) Other expense - - - - ( 4,232 ) ( 4,232 ) Income (loss) from continuing operations before income taxes $ 36,727 $ ( 2,998 ) $ ( 3,897 ) $ ( 17,329 ) $ ( 55,092 ) $ ( 42,589 ) Three Months Ended March 31, 2019 Onshore Drilling Completion Products and and Workover Production Technical Corporate and Consolidated Services Services Services Solutions Other Total Revenues $ 101,079 $ 103,136 $ 103,450 $ 57,609 $ - $ 365,274 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion 42,205 81,689 79,881 36,278 - 240,053 Depreciation, depletion, amortization and accretion 23,026 11,647 14,140 6,310 1,220 56,343 General and administrative expenses 14,569 7,842 7,812 15,937 24,952 71,112 Income (loss) from operations 21,279 1,958 1,617 ( 916 ) ( 26,172 ) ( 2,234 ) Interest income (expense), net - - - 1,018 ( 26,139 ) ( 25,121 ) Other expense - - - - ( 1,612 ) ( 1,612 ) Income (loss) from continuing operations before income taxes $ 21,279 $ 1,958 $ 1,617 $ 102 $ ( 53,923 ) $ ( 28,967 ) |
Schedule Of Identifiable Assets | Identifiable Assets Onshore Drilling Completion Products and and Workover Production Technical Corporate and Consolidated Services Services Services Solutions Other Total March 31, 2020 $ 681,004 $ 353,331 $ 422,673 $ 309,719 $ 64,164 $ 1,830,891 December 31, 2019 $ 659,621 467,697 $ 421,848 $ 377,627 $ 66,437 $ 1,993,230 |
Revenue By Geographic Area | Revenues Three Months Ended March 31, 2020 2019 United States $ 214,734 $ 273,211 Other countries 106,763 92,063 Total $ 321,497 $ 365,274 Long-Lived Assets March 31, 2020 December 31, 2019 United States $ 447,308 $ 489,189 Other countries 172,709 175,760 Total $ 620,017 $ 664,949 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Summarized Balance Sheets Information | OBLIGOR GROUP Summarized Balance Sheets Information (in thousands) (unaudited) March 31, 2020 December 31, 2019 Current assets $ 693,625 $ 789,562 Noncurrent assets 1,087,934 1,134,238 Total assets $ 1,781,559 $ 1,923,800 Current liabilities $ 191,968 $ 261,743 Noncurrent liabilities 2,044,725 2,039,138 Total liabilities $ 2,236,693 $ 2,300,881 |
Summarized Statements of Operations Information | OBLIGOR GROUP Summarized Statements of Operations Information (in thousands) (unaudited) Three Months Ended March 31, 2020 Year Ended December 31, 2019 Total revenues $ 245,797 $ 1,126,456 Cost of revenues 160,926 723,451 Loss from operations before income taxes ( 37,265 ) ( 92,731 ) Income taxes ( 12,325 ) 6,102 Net loss from continuing operations ( 24,940 ) ( 98,833 ) Loss from discontinued operations, net of tax ( 47,129 ) ( 177,968 ) Net loss attributable to the obligor group $ ( 72,069 ) $ ( 276,801 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations [Abstract] | |
Components Of Income (Loss) From Discontinued Operations | Three Months Ended March 31, 2020 2019 Revenues $ 254 $ 101,902 Cost of services 5,459 90,110 Loss from discontinued operations before tax ( 59,651 ) ( 17,037 ) Loss from discontinued operations, net of income tax 47,129 ( 15,061 ) |
Assets And Liabilities Of Discontinued Operation | March 31, 2020 December 31, 2019 Current assets: Accounts receivable, net $ - $ 25,106 Other current assets 4,894 6,215 Total current assets $ 4,894 $ 31,321 Property, plant and equipment, net 115,363 179,144 Operating lease ROU assets 823 5,732 Total assets $ 121,080 $ 216,197 Current liabilities: Accounts payable $ 495 $ 14,370 Accrued expenses 4,335 24,751 Total current liabilities 4,830 39,121 Operating lease liabilities 2,994 5,415 Other long-term liabilities 402 402 Total liabilities $ 8,226 $ 44,938 |
Schedule Of Cash Flows From Discontinued Operations | Three Months Ended March 31, 2020 2019 Cash flows from discontinued operating activities: Depreciation and amortization $ - $ 26,096 Reduction in value of assets 46,358 - Cash flows from discontinued investing activities: Payments for capital expenditures $ - $ ( 14,931 ) Proceeds from sales of assets 8,449 - |
Basis Of Presentation (Details)
Basis Of Presentation (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Basis Of Presentation [Line Items] | ||
Stock split, conversion ratio | 0.10 | |
Common stock, shares authorized | shares | 25,000,000 | 25,000,000 |
Reduction in average land righ count, percent | 25.00% | |
Arita Energy, Inc. [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt consent payment | $ 6,350,000 | |
Arita Energy, Inc. [Member] | Results If Business Combination Is Not Conusmated [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt consent payment | 0 | |
Original Senior Unsecured Notes Due 2021 [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt issuance | 617,900,000 | |
Senior notes | $ 182,100,000 | $ 800,000,000 |
Stated interest rate | 7.125% | 7.125% |
New Senior Unsecured Notes Due 2021 [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt issuance | $ 617,900,000 | |
Senior notes | $ 617,900,000 | |
Stated interest rate | 7.125% | 7.125% |
Debt instrument, new notes as a percentage of original notes | 77.24% | |
New Senior Unsecured Notes Due 2021 [Member] | Maximum [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt issuance | $ 635,000,000 | |
Arita Secured Notes [Member] | Arita Energy, Inc. [Member] | Results If Business Combination Is Not Conusmated [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt issuance | $ 0 | |
Stated interest rate | 9.75% | |
Superior Secured Notes [Member] | Arita Energy, Inc. [Member] | ||
Basis Of Presentation [Line Items] | ||
Stated interest rate | 8.75% | |
Superior Secured Notes [Member] | Arita Energy, Inc. [Member] | Results If Business Combination Is Not Conusmated [Member] | ||
Basis Of Presentation [Line Items] | ||
Debt issuance | $ 0 | |
Stated interest rate | 8.75% | |
Termination Exchange [Member] | Arita Energy, Inc. [Member] | Results If Business Combination Is Not Conusmated [Member] | ||
Basis Of Presentation [Line Items] | ||
Stated interest rate | 7.125% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Payment term | 30 days |
Maximum [Member] | |
Performance obligation satisfaction period | 30 days |
Revenue (Disaggregation Of Reve
Revenue (Disaggregation Of Revenues, By Geography) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 321,497 | $ 365,274 |
Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 103,993 | 101,079 |
Onshore Completion and Workover Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 61,218 | 103,136 |
Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 101,504 | 103,450 |
Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 54,782 | 57,609 |
U.S. Land [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 134,678 | 203,939 |
U.S. Land [Member] | Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 36,656 | 48,217 |
U.S. Land [Member] | Onshore Completion and Workover Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 61,218 | 103,136 |
U.S. Land [Member] | Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 30,667 | 40,666 |
U.S. Land [Member] | Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6,137 | 11,920 |
U.S. Offshore [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 80,056 | 69,272 |
U.S. Offshore [Member] | Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 37,224 | 29,067 |
U.S. Offshore [Member] | Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 11,299 | 19,272 |
U.S. Offshore [Member] | Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 31,533 | 20,933 |
International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 106,763 | 92,063 |
International [Member] | Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 30,113 | 23,795 |
International [Member] | Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 59,538 | 43,512 |
International [Member] | Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 17,112 | $ 24,756 |
Revenue (Disaggregation Of Re_2
Revenue (Disaggregation Of Revenues, By Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 321,497 | $ 365,274 |
Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 103,993 | 101,079 |
Onshore Completion and Workover Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 61,218 | 103,136 |
Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 101,504 | 103,450 |
Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 54,782 | 57,609 |
Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 180,236 | 239,274 |
Services [Member] | Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 14,576 | 18,959 |
Services [Member] | Onshore Completion and Workover Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 54,104 | 92,516 |
Services [Member] | Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 82,794 | 87,994 |
Services [Member] | Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 28,762 | 39,805 |
Rentals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 100,105 | 91,036 |
Rentals [Member] | Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 77,829 | 69,958 |
Rentals [Member] | Onshore Completion and Workover Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7,114 | 10,620 |
Rentals [Member] | Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 8,788 | 8,602 |
Rentals [Member] | Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6,374 | 1,856 |
Product Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 41,156 | 34,964 |
Product Sales [Member] | Drilling Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 11,588 | 12,162 |
Product Sales [Member] | Production Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9,922 | 6,854 |
Product Sales [Member] | Technical Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 19,646 | $ 15,948 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Abstract] | ||
Finished goods | $ 50,224 | $ 45,127 |
Raw materials | 16,151 | 16,130 |
Work-in-process | 9,542 | 9,360 |
Supplies and consumables | 35,038 | 33,322 |
Total | $ 110,955 | $ 103,939 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Notes Receivable [Abstract] | ||
Amount of notes receivable | $ 115 | |
Interest rate percentage to record present value of notes receivable | 6.58% | |
Company recorded interest income | $ 1.2 | $ 1 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 201,200,000 | |
Letters of Credit Outstanding, Amount | 103,400,000 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 40,000,000 | $ 25,000,000 |
Original Senior Unsecured Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance | 617,900,000 | |
Senior Notes | $ 182,100,000 | $ 800,000,000 |
Stated interest rate on unsecured senior notes | 7.125% | 7.125% |
New Senior Unsecured Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance | $ 617,900,000 | |
Debt instrument, new notes as a percentage of original notes | 77.24% | |
Senior Notes | $ 617,900,000 | |
Stated interest rate on unsecured senior notes | 7.125% | 7.125% |
Senior Unsecured Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance | $ 500,000,000 | |
Stated interest rate on unsecured senior notes | 7.75% |
Debt (Schedule Of Long Term Deb
Debt (Schedule Of Long Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt, gross | $ 1,300,000 | $ 1,300,000 |
Unamortized debt issuance costs | (15,992) | (13,371) |
Total debt, net | 1,284,008 | 1,286,629 |
Senior Unsecured Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 500,000 | $ 500,000 |
Stated interest rate | 7.75% | |
New Senior Unsecured Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 617,888 | |
Stated interest rate | 7.125% | 7.125% |
Original Senior Unsecured Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 182,112 | $ 800,000 |
Stated interest rate | 7.125% | 7.125% |
Decommissioning Liabilities (De
Decommissioning Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Summary of the activity for the Company's decommissioning liabilities | ||
Decommissioning liabilities | $ 137.7 | $ 136.3 |
Leases (Operating Lease Expense
Leases (Operating Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Long-term fixed lease expense | $ 7,473 | $ 8,105 |
Long-term variable lease expense | 124 | 87 |
Short-term lease expense | 4,423 | 5,278 |
Total operating lease expense | $ 12,020 | $ 13,470 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease ROU assets | $ 76,533 | $ 80,906 | |
Accrued expenses | 20,509 | 21,072 | |
Operating lease liabilities | 57,948 | 62,354 | |
Total operating lease liabilities | $ 78,457 | $ 83,426 | |
Weighted average remaining lease term | 9 years | 9 years | |
Weighted average discount rate | 6.75% | 6.75% | |
Cash paid for operating leases | $ 7,757 | $ 8,742 | |
ROU assets obtained in exchange for lease obligations | $ 1,465 | $ 6,877 |
Leases (Maturities Of Operating
Leases (Maturities Of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 20,996 | |
2021 | 21,966 | |
2022 | 14,603 | |
2023 | 10,996 | |
2024 | 8,024 | |
Thereafter | 46,002 | |
Total lease payments | 122,587 | |
Less imputed interest | 44,130 | |
Total | $ 78,457 | $ 83,426 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 393,531 | $ 1,021,300 |
Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets, net | 13,144 | 15,499 |
Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | 2,156 | 1,372 |
Other long-term liabilities | 18,266 | 23,466 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 393,531 | 1,021,300 |
Level 2 [Member] | Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets, net | 13,144 | 15,499 |
Level 2 [Member] | Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | 2,156 | 1,372 |
Other long-term liabilities | $ 18,266 | $ 23,466 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements Used In Testing) (Details) - Fair Value, Nonrecurring [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value Measurements Used In Testing [Line Items] | |
Impairment, Property, plant and equipment, net | $ 16,522 |
Fair Value, Property, plant and equipment, net | $ 13,593 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 321,497 | $ 365,274 |
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 211,686 | 240,053 |
Depreciation, depletion, amortization and accretion | 41,355 | 56,343 |
General and administrative expenses | 65,157 | 71,112 |
Reduction in value of assets | 16,522 | |
Loss from operations | (13,223) | (2,234) |
Interest income (expense), net | (25,134) | (25,121) |
Other expense | (4,232) | (1,612) |
Loss from continuing operations before income taxes | (42,589) | (28,967) |
Drilling Products and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 103,993 | 101,079 |
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 34,963 | 42,205 |
Depreciation, depletion, amortization and accretion | 17,790 | 23,026 |
General and administrative expenses | 14,513 | 14,569 |
Loss from operations | 36,727 | 21,279 |
Loss from continuing operations before income taxes | 36,727 | 21,279 |
Onshore Completion and Workover Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 61,218 | 103,136 |
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 52,589 | 81,689 |
Depreciation, depletion, amortization and accretion | 6,313 | 11,647 |
General and administrative expenses | 5,314 | 7,842 |
Loss from operations | (2,998) | 1,958 |
Loss from continuing operations before income taxes | (2,998) | 1,958 |
Production Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 101,504 | 103,450 |
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 82,612 | 79,881 |
Depreciation, depletion, amortization and accretion | 10,838 | 14,140 |
General and administrative expenses | 7,855 | 7,812 |
Reduction in value of assets | 4,096 | |
Loss from operations | (3,897) | 1,617 |
Loss from continuing operations before income taxes | (3,897) | 1,617 |
Technical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 54,782 | 57,609 |
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 41,522 | 36,278 |
Depreciation, depletion, amortization and accretion | 5,345 | 6,310 |
General and administrative expenses | 13,991 | 15,937 |
Reduction in value of assets | 12,426 | |
Loss from operations | (18,502) | (916) |
Interest income (expense), net | 1,173 | 1,018 |
Loss from continuing operations before income taxes | (17,329) | 102 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion, amortization and accretion | 1,069 | 1,220 |
General and administrative expenses | 23,484 | 24,952 |
Loss from operations | (24,553) | (26,172) |
Interest income (expense), net | (26,307) | (26,139) |
Other expense | (4,232) | (1,612) |
Loss from continuing operations before income taxes | $ (55,092) | $ (53,923) |
Segment Information (Schedule_2
Segment Information (Schedule Of Identifiable Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 1,830,891 | $ 1,993,230 |
Drilling Products and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 681,004 | 659,621 |
Onshore Completion and Workover Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 353,331 | 467,697 |
Production Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 422,673 | 421,848 |
Technical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 309,719 | 377,627 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 64,164 | $ 66,437 |
Segment Information (Revenue By
Segment Information (Revenue By Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 321,497 | $ 365,274 | |
Long-lived assets | 620,017 | $ 664,949 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 214,734 | 273,211 | |
Long-lived assets | 447,308 | 489,189 | |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 106,763 | $ 92,063 | |
Long-lived assets | $ 172,709 | $ 175,760 |
Reduction in Value of Assets (D
Reduction in Value of Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Reduction in value of long-lived assets | $ 16,522 |
Valuation, Income Approach [Member] | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Goodwill impairment, Weight of valuation approach | 80.00% |
Valuation, Market Approach [Member] | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Goodwill impairment, Weight of valuation approach | 20.00% |
Production Services [Member] | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Reduction in value of long-lived assets | $ 4,096 |
Technical Solutions [Member] | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Reduction in value of long-lived assets | $ 12,426 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Awards, Excluding ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 3.6 | $ 8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
CARES Act, Expected refund | $ 30 | |
Unrecorded tax benefits | $ 13.2 | $ 13.2 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)plaintiff | |
Number of people involved in lawsuit | plaintiff | 2 |
Maximum [Member] | |
Potential loss in lawsuit | $ | $ 7.4 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Unsecured Senior Notes Due 2024 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Unsecured senior notes | $ 500,000,000 |
Stated interest rate on unsecured senior notes | 7.75% |
SESI LLC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary ownership | 100.00% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Summarized Balance Sheets Information) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||
Current assets | $ 878,737 | $ 988,369 |
Total assets | 1,830,891 | 1,993,230 |
Current liabilities | 249,930 | 324,487 |
Obligor Group [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Current assets | 693,625 | 789,562 |
Noncurrent assets | 1,087,934 | 1,134,238 |
Total assets | 1,781,559 | 1,923,800 |
Current liabilities | 191,968 | 261,743 |
Noncurrent liabilities | 2,044,725 | 2,039,138 |
Total liabilities | $ 2,236,693 | $ 2,300,881 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Summarized Statements of Operations Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total revenues | $ 321,497 | $ 365,274 | |
Cost of revenues | 211,686 | 240,053 | |
Loss from operations before income taxes | (42,589) | (28,967) | |
Income taxes | (10,254) | 3,677 | |
Net loss from continuing operations | (32,335) | (32,644) | |
Loss from discontinued operations, net of tax | (47,129) | (15,061) | |
Net loss | (79,464) | $ (47,705) | |
Obligor Group [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Total revenues | 245,797 | $ 1,126,456 | |
Cost of revenues | 160,926 | 723,451 | |
Loss from operations before income taxes | (37,265) | (92,731) | |
Income taxes | (12,325) | 6,102 | |
Net loss from continuing operations | (24,940) | (98,833) | |
Loss from discontinued operations, net of tax | (47,129) | (177,968) | |
Net loss | $ (72,069) | $ (276,801) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Discontinued Operations [Abstract] | |
Reduction in value of assets held for sale | $ 46,358 |
Discontinued Operations (Compon
Discontinued Operations (Components Of Income (Loss) From Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of income tax | $ (47,129) | $ (15,061) |
Pumpco [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 254 | 101,902 |
Cost of services | 5,459 | 90,110 |
Loss from discontinued operations before tax | (59,651) | (17,037) |
Loss from discontinued operations, net of income tax | $ 47,129 | $ (15,061) |
Discontinued Operations (Assets
Discontinued Operations (Assets And Liabilities Of Discontinued Operation) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets | $ 121,080 | $ 216,197 |
Total liabilities | 8,226 | 44,938 |
Pumpco [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 25,106 | |
Other current assets | 4,894 | 6,215 |
Total current assets | 4,894 | 31,321 |
Property, plant and equipment, net | 115,363 | 179,144 |
Operating lease ROU assets | 823 | 5,732 |
Total assets | 121,080 | 216,197 |
Accounts payable | 495 | 14,370 |
Accrued expenses | 4,335 | 24,751 |
Total current liabilities | 4,830 | 39,121 |
Operating lease liabilities | 2,994 | 5,415 |
Other long-term liabilities | 402 | 402 |
Total liabilities | $ 8,226 | $ 44,938 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Cash Flows From Discontinued Operations) (Details) - Pumpco [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 26,096 | |
Reduction in value of assets | $ 46,358 | |
Payments for capital expenditures | $ (14,931) | |
Proceeds from sales of assets | $ 8,449 |