Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PTEN | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Entity Registrant Name | Patterson-UTI Energy, Inc. | |
Entity Central Index Key | 0000889900 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 215,112,196 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-39270 | |
Entity Tax Identification Number | 75-2504748 | |
Entity Address, Address Line One | 10713 W. Sam Houston Pkwy N | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 77064 | |
City Area Code | 281 | |
Local Phone Number | 765-7100 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 191,284 | $ 224,915 |
Accounts receivable, net of allowance for credit losses of $10,838 and $10,842 at June 30, 2021 and December 31, 2020, respectively | 263,186 | 160,214 |
Federal and state income taxes receivable | 64 | 4,428 |
Inventory | 34,924 | 33,085 |
Other | 54,074 | 55,314 |
Total current assets | 543,532 | 477,956 |
Property and equipment, net | 2,424,725 | 2,761,041 |
Right of use asset | 15,376 | 16,850 |
Intangible assets | 21,052 | 30,087 |
Deposits on equipment purchases | 1,782 | 1,716 |
Other | 10,996 | 11,419 |
Total assets | 3,017,463 | 3,299,069 |
Current liabilities: | ||
Accounts payable | 165,779 | 91,622 |
Accrued liabilities | 167,128 | 175,004 |
Lease liability | 5,942 | 7,096 |
Total current liabilities | 338,849 | 273,722 |
Long-term lease liability | 15,798 | 19,118 |
Long-term debt, net of debt discount and issuance costs of $6,859 and $7,271 at June 30, 2021 and December 31, 2020, respectively | 902,104 | 901,484 |
Deferred tax liabilities, net | 22,922 | 77,676 |
Other | 12,145 | 11,010 |
Total liabilities | 1,291,818 | 1,283,010 |
Commitments and contingencies (see Note 10) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01; authorized 1,000,000 shares, no shares issued | ||
Common stock, par value $0.01; authorized 400,000,000 shares with 272,835,137 and 271,028,688 issued and 189,004,150 and 187,626,366 outstanding at June 30, 2021 and December 31, 2020, respectively | 2,729 | 2,710 |
Additional paid-in capital | 2,919,090 | 2,902,236 |
Retained earnings | 167,860 | 472,014 |
Accumulated other comprehensive income | 5,853 | 5,412 |
Treasury stock, at cost, 83,830,987 and 83,402,322 shares at June 30, 2021 and December 31, 2020, respectively | (1,369,887) | (1,366,313) |
Total stockholders' equity | 1,725,645 | 2,016,059 |
Total liabilities and stockholders' equity | $ 3,017,463 | $ 3,299,069 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 9,993 | $ 10,842 |
Long-term debt, debt discount and issuance costs | $ 6,651 | $ 7,271 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 272,885,704 | 271,028,688 |
Common stock, outstanding | 189,049,158 | 187,626,366 |
Treasury stock, shares | 83,836,546 | 83,402,322 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating revenues: | ||||
Total operating revenues | $ 357,885,000 | $ 207,141,000 | $ 890,588,000 | $ 903,448,000 |
Operating costs and expenses: | ||||
Depreciation, depletion, amortization and impairment | 141,065,000 | 157,319,000 | 437,984,000 | 517,201,000 |
Impairment of goodwill | 0 | 0 | 0 | 395,060,000 |
Selling, general and administrative | 22,063,000 | 22,355,000 | 68,176,000 | 76,692,000 |
Merger and integration expenses | 918,000 | 2,066,000 | ||
Credit loss expense | 0 | 0 | 0 | 5,606,000 |
Restructuring expenses | 38,338,000 | |||
Other operating (income) expenses, net | (1,219,000) | 776,000 | (3,743,000) | 5,980,000 |
Total operating costs and expenses | 447,894,000 | 321,707,000 | 1,207,534,000 | 1,671,508,000 |
Operating loss | (90,009,000) | (114,566,000) | (316,946,000) | (768,060,000) |
Other income (expense): | ||||
Interest income | 37,000 | 238,000 | 196,000 | 1,229,000 |
Interest expense, net of amount capitalized | (10,683,000) | (11,288,000) | (31,396,000) | (33,496,000) |
Other | 14,000 | 512,000 | 840,000 | 682,000 |
Total other expense | (10,632,000) | (10,538,000) | (30,360,000) | (31,585,000) |
Loss before income taxes | (100,641,000) | (125,104,000) | (347,306,000) | (799,645,000) |
Income tax benefit | (17,643,000) | (12,993,000) | (54,586,000) | (102,480,000) |
Net loss | $ (82,998,000) | $ (112,111,000) | $ (292,720,000) | $ (697,165,000) |
Net loss per common share: | ||||
Basic | $ (0.44) | $ (0.60) | $ (1.55) | $ (3.70) |
Diluted | $ (0.44) | $ (0.60) | $ (1.55) | $ (3.70) |
Weighted average number of common shares outstanding: | ||||
Basic | 188,965 | 187,280 | 188,355 | 188,193 |
Diluted | 188,965 | 187,280 | 188,355 | 188,193 |
Cash dividends per common share | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.08 |
Contract Drilling | ||||
Operating revenues: | ||||
Total operating revenues | $ 157,925,000 | $ 115,054,000 | $ 433,158,000 | $ 553,552,000 |
Operating costs and expenses: | ||||
Operating costs and expenses | 111,537,000 | 59,117,000 | 291,049,000 | 309,664,000 |
Pressure Pumping | ||||
Operating revenues: | ||||
Total operating revenues | 152,634,000 | 71,973,000 | 340,464,000 | 256,613,000 |
Operating costs and expenses: | ||||
Operating costs and expenses | 134,726,000 | 63,721,000 | 313,556,000 | 234,844,000 |
Directional Drilling | ||||
Operating revenues: | ||||
Total operating revenues | 31,728,000 | 10,271,000 | 76,267,000 | 56,498,000 |
Operating costs and expenses: | ||||
Operating costs and expenses | 28,360,000 | 9,754,000 | 67,367,000 | 54,348,000 |
Other | ||||
Operating revenues: | ||||
Total operating revenues | 15,598,000 | 9,843,000 | 40,699,000 | 36,785,000 |
Operating costs and expenses: | ||||
Operating costs and expenses | $ 10,444,000 | $ 8,665,000 | $ 31,079,000 | $ 33,775,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (82,998) | $ (112,111) | $ (292,720) | $ (697,165) |
Other comprehensive income (loss), net of taxes of $0 for all periods: | ||||
Foreign currency translation adjustment | (232) | 218 | 441 | (473) |
Total comprehensive loss | $ (83,230) | $ (111,893) | $ (292,279) | $ (697,638) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Other comprehensive income (loss), taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2019 | $ 2,833,620 | $ 2,694 | $ 2,875,680 | $ 1,294,902 | $ 5,478 | $ (1,345,134) |
Beginning Balance (in shares) at Dec. 31, 2019 | 269,372 | |||||
Net loss | (434,722) | (434,722) | ||||
Foreign currency translation adjustment | (1,386) | (1,386) | ||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Vesting of restricted stock units (in shares) | 151 | |||||
Stock-based compensation | 9,160 | 9,160 | ||||
Payment of cash dividends | (7,629) | (7,629) | ||||
Dividend equivalents | (125) | (125) | ||||
Purchase of treasury stock | (20,025) | (20,025) | ||||
Ending Balance at Mar. 31, 2020 | 2,378,893 | $ 2,695 | 2,884,839 | 852,426 | 4,092 | (1,365,159) |
Ending Balance (in shares) at Mar. 31, 2020 | 269,523 | |||||
Beginning Balance at Dec. 31, 2019 | 2,833,620 | $ 2,694 | 2,875,680 | 1,294,902 | 5,478 | (1,345,134) |
Beginning Balance (in shares) at Dec. 31, 2019 | 269,372 | |||||
Net loss | (697,165) | |||||
Foreign currency translation adjustment | (473) | |||||
Ending Balance at Sep. 30, 2020 | 2,119,563 | $ 2,708 | 2,895,753 | 582,360 | 5,005 | (1,366,263) |
Ending Balance (in shares) at Sep. 30, 2020 | 270,861 | |||||
Beginning Balance at Mar. 31, 2020 | 2,378,893 | $ 2,695 | 2,884,839 | 852,426 | 4,092 | (1,365,159) |
Beginning Balance (in shares) at Mar. 31, 2020 | 269,523 | |||||
Net loss | (150,332) | (150,332) | ||||
Foreign currency translation adjustment | 695 | 695 | ||||
Vesting of restricted stock units | $ 11 | (11) | ||||
Vesting of restricted stock units (in shares) | 1,046 | |||||
Stock-based compensation | 4,335 | 4,335 | ||||
Payment of cash dividends | (3,735) | (3,735) | ||||
Dividend equivalents | (73) | (73) | ||||
Purchase of treasury stock | (910) | (910) | ||||
Ending Balance at Jun. 30, 2020 | 2,228,873 | $ 2,706 | 2,889,163 | 698,286 | 4,787 | (1,366,069) |
Ending Balance (in shares) at Jun. 30, 2020 | 270,569 | |||||
Net loss | (112,111) | (112,111) | ||||
Foreign currency translation adjustment | 218 | 218 | ||||
Vesting of restricted stock units | $ 2 | (2) | ||||
Vesting of restricted stock units (in shares) | 292 | |||||
Stock-based compensation | 6,592 | 6,592 | ||||
Payment of cash dividends | (3,746) | (3,746) | ||||
Dividend equivalents | (69) | (69) | ||||
Purchase of treasury stock | (194) | (194) | ||||
Ending Balance at Sep. 30, 2020 | 2,119,563 | $ 2,708 | 2,895,753 | 582,360 | 5,005 | (1,366,263) |
Ending Balance (in shares) at Sep. 30, 2020 | 270,861 | |||||
Beginning Balance at Dec. 31, 2020 | $ 2,016,059 | $ 2,710 | 2,902,236 | 472,014 | 5,412 | (1,366,313) |
Beginning Balance (in shares) at Dec. 31, 2020 | 271,028,688 | 271,029,000 | ||||
Net loss | $ (106,413) | (106,413) | ||||
Foreign currency translation adjustment | 418 | 418 | ||||
Vesting of restricted stock units | $ 2 | (2) | ||||
Vesting of restricted stock units (in shares) | 163,000 | |||||
Stock-based compensation | 5,891 | 5,891 | ||||
Payment of cash dividends | (3,754) | (3,754) | ||||
Dividend equivalents | (55) | (55) | ||||
Ending Balance at Mar. 31, 2021 | 1,912,146 | $ 2,712 | 2,908,125 | 361,792 | 5,830 | (1,366,313) |
Ending Balance (in shares) at Mar. 31, 2021 | 271,192 | |||||
Beginning Balance at Dec. 31, 2020 | $ 2,016,059 | $ 2,710 | 2,902,236 | 472,014 | 5,412 | (1,366,313) |
Beginning Balance (in shares) at Dec. 31, 2020 | 271,028,688 | 271,029,000 | ||||
Net loss | $ (292,720) | |||||
Foreign currency translation adjustment | 441 | |||||
Ending Balance at Sep. 30, 2021 | $ 1,725,645 | $ 2,729 | 2,919,090 | 167,860 | 5,853 | (1,369,887) |
Ending Balance (in shares) at Sep. 30, 2021 | 272,885,704 | 272,886 | ||||
Beginning Balance at Mar. 31, 2021 | $ 1,912,146 | $ 2,712 | 2,908,125 | 361,792 | 5,830 | (1,366,313) |
Beginning Balance (in shares) at Mar. 31, 2021 | 271,192 | |||||
Net loss | (103,309) | (103,309) | ||||
Foreign currency translation adjustment | 255 | 255 | ||||
Vesting of restricted stock units | $ 16 | (16) | ||||
Vesting of restricted stock units (in shares) | 1,643 | |||||
Stock-based compensation | 5,934 | 5,934 | ||||
Payment of cash dividends | (3,769) | (3,769) | ||||
Dividend equivalents | (18) | (18) | ||||
Purchase of treasury stock | (3,522) | (3,522) | ||||
Ending Balance at Jun. 30, 2021 | 1,807,717 | $ 2,728 | 2,914,043 | 254,696 | 6,085 | (1,369,835) |
Ending Balance (in shares) at Jun. 30, 2021 | 272,835 | |||||
Net loss | (82,998) | (82,998) | ||||
Foreign currency translation adjustment | (232) | (232) | ||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Vesting of restricted stock units (in shares) | 51 | |||||
Stock-based compensation | 5,048 | 5,048 | ||||
Payment of cash dividends | (3,780) | (3,780) | ||||
Dividend equivalents | (58) | (58) | ||||
Purchase of treasury stock | (52) | (52) | ||||
Ending Balance at Sep. 30, 2021 | $ 1,725,645 | $ 2,729 | $ 2,919,090 | $ 167,860 | $ 5,853 | $ (1,369,887) |
Ending Balance (in shares) at Sep. 30, 2021 | 272,885,704 | 272,886 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||||
Common Stock Dividends Per Share Declared | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.04 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (292,720,000) | $ (697,165,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and impairment | 437,984,000 | 517,201,000 |
Impairment of goodwill | 0 | 395,060,000 |
Dry holes and abandonments | 177,000 | 1,256,000 |
Deferred income tax benefit | (54,754,000) | (100,212,000) |
Stock-based compensation expense | 16,873,000 | 20,087,000 |
Net gain on asset disposals | (5,595,000) | (3,357,000) |
Net gain on insurance reimbursement | 0 | (4,172,000) |
Writedown of capacity reservation contract | 0 | 9,207,000 |
Credit loss expense | 0 | 5,606,000 |
Restructuring expenses, non-cash | 0 | 24,068,000 |
Amortization of debt discount and issuance costs | 620,000 | 673,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (103,241,000) | 202,733,000 |
Income taxes receivable/payable | 4,378,000 | 1,285,000 |
Inventory and other assets | 1,486,000 | 22,250,000 |
Accounts payable | 59,357,000 | (57,788,000) |
Accrued liabilities | (8,009,000) | (44,607,000) |
Other liabilities | (4,958,000) | (8,840,000) |
Net cash provided by operating activities | 51,598,000 | 283,285,000 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (90,837,000) | (135,043,000) |
Proceeds from disposal of assets and insurance claims | 20,558,000 | 17,792,000 |
Other | (345,000) | (121,000) |
Net cash used in investing activities | (70,624,000) | (117,372,000) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (3,574,000) | (21,129,000) |
Dividends paid | (11,303,000) | (15,110,000) |
Debt issuance costs | 0 | 145,000 |
Net cash used in financing activities | (14,877,000) | (36,384,000) |
Effect of foreign exchange rate changes on cash | 272,000 | 27,000 |
Net increase (decrease) in cash and cash equivalents | (33,631,000) | 129,556,000 |
Cash and cash equivalents at beginning of period | 224,915,000 | 174,185,000 |
Cash and cash equivalents at end of period | 191,284,000 | 303,741,000 |
Net cash received (paid) during the period for: | ||
Interest, net of capitalized interest of $117 in 2021 and $425 in 2020 | (31,031,000) | (32,605,000) |
Income taxes | 4,196,000 | 3,550,000 |
Non-cash investing and financing activities: | ||
Net increase (decrease) in payables for purchases of property and equipment | 14,801,000 | (38,312,000) |
Net (increase) decrease in deposits on equipment purchases | $ (66,000) | $ 3,338,000 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Cash Flows [Abstract] | ||
Interest expense, capitalized interest | $ 117 | $ 425 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Basis of presentation — The unaudited interim condensed consolidated financial statements include the accounts of Patterson-UTI Energy, Inc. and its wholly-owned subsidiaries (collectively referred to herein as “we,” “us,” “our,” “ours” and like terms). All significant intercompany accounts and transactions have been eliminated. Except for wholly-owned subsidiaries, we have no controlling financial interests in any other entity which would require consolidation. As used in these notes, “we,” “us,” “our,” “ours” and like terms refer collectively to Patterson-UTI Energy, Inc. and its consolidated subsidiaries. Patterson-UTI Energy, Inc. conducts its business operations through its wholly-owned subsidiaries and has no employees or independent operations. The unaudited interim condensed consolidated financial statements have been prepared by us pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to such rules and regulations, although we believe the disclosures included either on the face of the financial statements or herein are sufficient to make the information presented not misleading. In the opinion of management, all recurring adjustments considered necessary for a fair statement of the information in conformity with U.S. GAAP have been included. The unaudited condensed consolidated balance sheet as of December 31, 2020, as presented herein, was derived from our audited consolidated balance sheet but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. The U.S. dollar is the functional currency for all of our operations except for our Canadian operations, which use the Canadian dollar as their functional currency. The effects of exchange rate changes are reflected in accumulated other comprehensive income, which is a separate component of stockholders’ equity. Recently Adopted Accounting Standards — In June 2016, the FASB issued an accounting standards update on measurement of credit losses on financial instruments. The new guidance requires us to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The new standard is effective for fiscal years beginning after December 15, 2019, including all interim periods within those years. We adopted ASU 2016-13 as of January 1, 2020. The adoption of this guidance and recognition of a loss allowance at an amount equal to expected credit losses for accounts receivable was not material and did not result in a transition adjustment to retained earnings. For more information regarding credit losses, see Note 3. In August 2018, the FASB issued an accounting standards update to align 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. We adopted this new guidance on January 1, 2020 prospectively with respect to all implementation costs incurred after the date of adoption. There was no material impact on our consolidated financial statements. In August 2018, the FASB issued an accounting standards update to eliminate certain disclosure requirements for fair value measurements for all entities, require public entities to disclose certain new information and modify certain disclosure requirements. The FASB developed the amendments to Topic 820 as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. We adopted this new guidance on January 1, 2020 and there was no material impact on our consolidated financial statements. In December 2019, the FASB issued an accounting standards update to simplify the accounting for income taxes. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted this new guidance on January 1, 2021, and there was no material impact on our consolidated financial statements. Recently Issued Accounting Standards — In March 2020, the FASB issued an accounting standards update to provide temporary optional expedients that simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The amendments in the update are effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications from the beginning of an interim period that includes or is subsequent to March 12, 2020. We plan to adopt this standard when LIBOR is discontinued, and we do not expect this new guidance will have a material impact on our consolidated financial statements. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisition | 2. Acquisition On October 1, 2021, we completed the acquisition of Pioneer Energy Services Corp. ("Pioneer"). Total consideration for the acquisition included the issuance of approximately 26.3 million shares of our common stock and payment of $ 30 million cash, which based on the closing price of $ 9.44 on October 1, 2021, valued the transaction at approximately $ 278 million, including the retirement of all Pioneer’s debt. In connection with the closing, Pioneer’s senior notes were repaid with cash and a portion of the shares of Patterson-UTI common stock issued in the acquisition. Pioneer shareholders received 1.8692 shares of Patterson-UTI common stock for each share of Pioneer common stock. Pioneer provided land-based contract drilling services and production services to a diverse group of oil and gas exploration and production companies in the United States and internationally in Colombia. Through the Pioneer acquisition, we acquired Pioneer’s 100 % pad-capable drilling rig fleet, with 17 AC rigs in the United States and eight SCR rigs in Colombia , and production services assets consisting of 123 well servicing rigs and 72 wireline services units. We believe the acquisition of Pioneer enhances our position as a leading provider of contract drilling services in the United States and expands our geographic footprint into Latin America. We are in the process of determining the fair values of the assets acquired and liabilities assumed, and the results of operations for these acquired businesses will be included in our consolidated results of operations beginning in the quarter ending December 31, 2021. |
Credit Losses
Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Credit Losses | 3. Credit Losses ASC Topic 326 Current Expected Credit Losses (CECL) On January 1, 2020, we adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments , which introduces a new model to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Our customers are primarily oil and natural gas exploration and production companies, which are collectively exposed to oil and natural gas commodity price risk. Our customers require services from us at various stages of the exploration and production process. Accordingly, we have aggregated our trade receivables by segment. Any customers that have experienced a deterioration in credit quality are removed from the pool and evaluated individually. We utilized an accounts receivable aging schedule and historical credit loss information to estimate expected credit losses. Due to the significant decline in crude oil prices during the quarter ended March 31, 2020 and its related impact to our customers, we increased our historical credit loss rates used to determine our March 31, 2020 allowance for credit losses in the first quarter of 2020. We continued to monitor and evaluate our expected credit losses using these increased credit loss rates for the three and nine months ended September 30, 2021. The adoption of the new accounting standard did not have a material impact on our consolidated financial statements and did not result in a transition adjustment to retained earnings. There was no credit loss expense during the three and nine months ended September 30, 2021 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 4. Revenues ASC Topic 606 Revenue from Contracts with Customers Our contracts with customers include both long-term and short-term contracts. Services that primarily generate our earned revenue include the operating business segments of contract drilling, pressure pumping and directional drilling, which comprise our reportable segments. We also derive revenues from our other operations, which include our operating business segments of oilfield rentals, equipment servicing, electrical controls and automation, and oil and natural gas working interests. For more information on our business segments, including disaggregated revenue recognized from contracts with customers, see Note 15. Charges for services are considered a series of distinct services. Since each distinct service in a series would be satisfied over time if it were accounted for separately, and the entity would measure its progress towards satisfaction using the same measure of progress for each distinct service in the series, we are able to account for these integrated services as a single performance obligation that is satisfied over time. The transaction price is the amount of consideration to which we expect to be entitled in exchange for transferring promised goods or services to a customer, based on terms of our contracts with our customers. The consideration promised in a contract with a customer may include fixed amounts and/or variable amounts. Payments received for services are considered variable consideration as the time in service will fluctuate as the services are provided. Topic 606 provides an allocation exception, which allows us to allocate variable consideration to one or more distinct services promised in a series of distinct services that form part of a single performance obligation as long as certain criteria are met. These criteria state that the variable payment must relate specifically to the entity’s efforts to satisfy the performance obligation or transfer the distinct good or service, and allocation of the variable consideration is consistent with the standards’ allocation objective. Since payments received for services meet both of these criteria requirements, we recognize revenue when the service is performed. An estimate of variable consideration should be constrained to the extent that it is not probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Payments received for other types of consideration are fully constrained as they are highly susceptible to factors outside the entity’s influence and therefore could be subject to a significant revenue reversal once resolved. As such, revenue received for these types of consideration is recognized when the service is performed. Estimates of variable consideration are subject to change as facts and circumstances evolve. As such, we will evaluate our estimates of variable consideration that are subject to constraints throughout the contract period and revise estimates, if necessary, at the end of each reporting period. We are a non-operating working interest owner of oil and natural gas properties primarily located in Texas and New Mexico. The ownership terms are outlined in joint operating agreements for each well between the operator of the well and the various interest owners, including us, who are considered non-operators of the well. We receive revenue each period for our working interest in the well during the period. The revenue received for the working interests from these oil and gas properties does not fall under the scope of the new revenue standard, and therefore, will continue to be reported under current guidance ASC 932-323 Extractive Activities – Oil and Gas, Investments – Equity Method and Joint Ventures. Reimbursement Revenue — Reimbursements for the purchase of supplies, equipment, personnel services, shipping and other services that are provided at the request of our customers are recorded as revenue when incurred. The related costs are recorded as operating expenses when incurred. Operating Lease Revenue — Lease income from equipment that we lease to others is recognized on a straight-line basis over the lease term. Accounts Receivable and Contract Liabilities Accounts receivable is our right to consideration once it becomes unconditional. Payment terms typically range from 30 to 60 days . Accounts receivable balances were $259 million and $ 158 million as of September 30, 2021 and December 31, 2020, respectively. These balances do not include amounts related to our oil and gas working interests as those contracts are excluded from Topic 606. Accounts receivable balances are included in “Accounts receivable” in the condensed consolidated balance sheets. We do not have any significant contract asset balances. Contract liabilities include prepayments received from customers prior to the requested services being completed. Once the services are complete and have been invoiced, the prepayment is applied against the customer’s account to offset the accounts receivable balance. Also included in contract liabilities are payments received from customers for the initial mobilization of newly constructed or upgraded rigs that were moved on location to the initial well site. These mobilization payments are allocated to the overall performance obligation and amortized over the initial term of the contract. During the nine months ended September 30, 2021 , no such payments were amortized and recorded in drilling revenue. During the nine months ended September 30, 2020, approximately $ 0.1 million was amortized and recorded in drilling revenue. Total contract liability balances were $ 0.9 million and $ 0.6 million as of September 30, 2021 and December 31, 2020, respectively. Contract liability balances are included in “Accounts payable” and “Accrued liabilities” in the condensed consolidated balance sheets. Contract Costs Costs incurred for newly constructed or rig upgrades based on a contract with a customer are considered capital improvements and are capitalized to drilling equipment and depreciated over the estimated useful life of the asset. Recognition of Revenue from Performance Obligations Satisfied in a Prior Period During the nine months ended September 30, 2021 , we recorded revenue of $ 2.3 million associated with early termination revenue to which we were contractually entitled from one of our customers. While the performance obligations were satisfied during 2020, we did not record the related revenue due to our doubts about the customer’s ability and intent to pay substantially all of the consideration to which we were entitled in accordance with ASC Topic 606. Those doubts were resolved during the three months ended March 31, 2021, when collectability became probable from the counterparty in connection with its emergence from bankruptcy. In April 2021, we received consideration from the counterparty, which validated the accuracy and collectability of the revenue recorded in the first quarter of 2021. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Finished goods $ 566 $ 600 Work-in-process 943 802 Raw materials and supplies 33,415 31,683 Inventory $ 34,924 $ 33,085 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Equipment $ 7,559,061 $ 7,647,451 Oil and natural gas properties 229,224 222,738 Buildings 182,113 193,503 Land 24,562 25,781 Total property and equipment 7,994,960 8,089,473 Less accumulated depreciation, depletion and impairment ( 5,570,235 ) ( 5,328,432 ) Property and equipment, net $ 2,424,725 $ 2,761,041 On a periodic basis, we evaluate our fleet of drilling rigs for marketability based on the condition of inactive rigs, expenditures that would be necessary to bring them to working condition and the expected demand for drilling services by rig type. The components comprising rigs that will no longer be marketed are evaluated, and those components with continuing utility to our other marketed rigs are transferred to other rigs or to our yards to be used as spare equipment. The remaining components of these rigs are retired. We had no impairment related to the marketability or condition of our drilling rigs during the three and nine months ended September 30, 2021. We review our long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amounts of certain assets may not be recovered over their estimated remaining useful lives (“triggering events”). In connection with this review, assets are grouped at the lowest level at which identifiable cash flows are largely independent of other asset groupings. We estimate future cash flows over the life of the respective assets or asset groupings in our assessment of impairment. These estimates of cash flows are based on historical cyclical trends in the industry as well as our expectations regarding the continuation of these trends in the future. Provisions for asset impairment are charged against income when estimated future cash flows, on an undiscounted basis, are less than the asset’s net book value. Any provision for impairment is measured at fair value. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill — As a result of a triggering event in the first quarter of 2020, we fully impaired our remaining goodwill balance, and as a result, we had no goodwill balance as of September 30, 2021. At times when we have a goodwill balance, we are required to evaluate goodwill at least annually as of December 31, or when circumstances require, to determine if the fair value of recorded goodwill has decreased below its carrying value. For impairment testing purposes, goodwill is evaluated at the reporting unit level. Our reporting units for impairment testing are our operating segments. We determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value after considering qualitative, market and other factors, and if this is the case, any necessary goodwill impairment is determined using a quantitative impairment test. From time to time, we may perform quantitative testing for goodwill impairment in lieu of performing the qualitative assessment. If the resulting fair value of goodwill is less than the carrying value of goodwill, an impairment loss would be recognized for the amount of the shortfall. Due to the decline in the market price of our common stock and commodity prices in the first quarter of 2020, we lowered our expectations with respect to future activity levels in our contract drilling reporting unit. We performed a quantitative impairment assessment of our goodwill as of March 31, 2020. In completing the assessment, the fair value of our contract drilling operating segment was estimated using the income approach. The estimate of fair value required the use of significant unobservable inputs, representative of a Level 3 fair value measurement. The assumptions included discount rates, revenue growth rates, operating expense growth rates, and terminal growth rates. Based on the results of the goodwill impairment test as of March 31, 2020, impairment was indicated in our contract drilling reporting unit. We recognized an impairment charge of $ 395 million in the quarter ended March 31, 2020 associated with the impairment of all of the goodwill in our contract drilling reporting unit. Intangible Assets — The following table presents the gross carrying amount and accumulated amortization of our intangible assets as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 1,800 $ ( 750 ) $ 1,050 $ 28,000 $ ( 26,757 ) $ 1,243 Developed technology 55,772 ( 36,613 ) 19,159 55,772 ( 27,515 ) 28,257 Internal use software 1,251 ( 408 ) 843 906 ( 319 ) 587 $ 58,823 $ ( 37,771 ) $ 21,052 $ 84,678 $ ( 54,591 ) $ 30,087 Amortization expense on intangible assets of approximately $ 3.1 million and $ 5.3 million was recorded in the three months ended September 30, 2021 and 2020, respectively. Amortization expense on intangible assets of approximately $ 9.4 million and $ 15.9 million was recorded in the nine months ended September 30, 2021 and 2020, respectively. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Salaries, wages, payroll taxes and benefits $ 38,046 $ 37,627 Workers' compensation liability 62,428 70,847 Property, sales, use and other taxes 19,572 10,666 Insurance, other than workers' compensation 7,686 8,462 Accrued interest payable 10,101 11,325 Accrued restructuring expenses 7,884 14,310 Other 21,411 21,767 Accrued liabilities $ 167,128 $ 175,004 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Term Loan Agreement (Maturing June 2022) (1) $ 50,000 $ 50,000 3.95 % Senior Notes 509,505 509,505 5.15 % Senior Notes 349,250 349,250 908,755 908,755 Less deferred financing costs and discounts ( 6,651 ) ( 7,271 ) Total $ 902,104 $ 901,484 (1) The borrowings outstanding under the Term Loan Agreement maturing in June 2022 are classified as long-term because we have the ability and intent to repay these obligations utilizing our revolving credit facility. Our revolving credit facility matures in two increments in 2024 and 2025. 2019 Term Loan Agreement — On August 22, 2019 , we entered into a term loan agreement (“Term Loan Agreement”) among us, as borrower, Wells Fargo Bank, National Association, as administrative agent and lender and the other lender party thereto. The Term Loan Agreement is a committed senior unsecured term loan facility that permitted a single borrowing of up to $ 150 million initially, which we drew in full on September 23, 2019. Subject to customary conditions, we may request that the lenders’ aggregate commitments be increased by up to $ 75 million, not to exceed total commitments of $ 225 million. We repaid $ 50 million of the borrowings under the Term Loan Agreement on December 16, 2019, and an additional $ 50 million on December 24, 2020. As of September 30, 2021 , we had $ 50 million in borrowings remaining outstanding under the Term Loan Agreement at a LIBOR-based interest rate of 1.46 % . The maturity date under the Term Loan Agreement is June 10, 2022 . The borrowings outstanding under the Term Loan Agreement maturing in June 2022 are classified as long-term because we have the ability and intent to repay these obligations utilizing our revolving credit facility. Our revolving credit facility matures in two increments in 2024 and 2025. Loans under the Term Loan Agreement bear interest by reference, at our election, to the LIBOR rate or base rate. The applicable margin on LIBOR rate loans varies from 1.00 % to 1.375 %, and the applicable margin on base rate loans varies from 0.00 % to 0.375 %, in each case determined based upon our credit rating. As of September 30, 2021, the applicable margin on LIBOR rate loans and base rate loans was 1.375 % and 0.375 % , respectively. The Term Loan Agreement contains representations, warranties, affirmative and negative covenants and events of default and associated remedies that we believe are customary for agreements of this nature, including certain restrictions on our ability and the ability of each of our subsidiaries to incur debt and grant liens. If our credit rating is below investment grade at both Moody’s and S&P, we will become subject to a restricted payment covenant, which would require us to have a Pro Forma Debt Service Coverage Ratio (as defined in the Term Loan Agreement) greater than or equal to 1.50 to 1.00 immediately before and immediately after making any restricted payment. Restricted payments include, among other things, dividend payments, repurchases of our common stock, distributions to holders of our common stock or any other payment or other distribution to third parties on account of our or our subsidiaries’ equity interests. Our credit rating is currently investment grade at one of the two ratings agencies. The Term Loan Agreement requires mandatory prepayment in an amount equal to 100 % of the net cash proceeds from the issuance of new senior indebtedness (other than certain permitted indebtedness) if our credit rating is below investment grade at both Moody’s and S&P. Our credit rating is currently investment grade at one of the two ratings agencies. The Term Loan Agreement also requires that our total debt to capitalization ratio, expressed as a percentage, not exceed 50 %. The Term Loan Agreement generally defines the total debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the end of the most recently ended fiscal quarter. We were in compliance with these covenants at September 30, 2021. Credit Agreement — On March 27, 2018 , we entered into an amended and restated credit agreement (the “Credit Agreement”) among us, as borrower, Wells Fargo Bank, National Association, as administrative agent, letter of credit issuer, swing line lender and lender, each of the other lenders and letter of credit issuers party thereto, The Bank of Nova Scotia and U.S. Bank National Association, as Co-Syndication Agents, Royal Bank of Canada, as Documentation Agent and Wells Fargo Securities, LLC, The Bank of Nova Scotia and U.S. Bank National Association, as Co-Lead Arrangers and Joint Book Runners. The Credit Agreement is a committed senior unsecured revolving credit facility that permits aggregate borrowings of up to $ 600 million, including a letter of credit facility that, at any time outstanding, is limited to $ 150 million and a swing line facility that, at any time outstanding, is limited to $ 20 million. Subject to customary conditions, we may request that the lenders’ aggregate commitments be increased by up to $ 300 million, not to exceed total commitments of $ 900 million. The original maturity date under the Credit Agreement was March 27, 2023 . On March 26, 2019, we entered into Amendment No. 1 to Amended and Restated Credit Agreement, which amended the Credit Agreement to, among other things, extend the maturity date under the Credit Agreement from March 27, 2023 to March 27, 2024. On March 27, 2020, we entered into Amendment No. 2 to Amended and Restated Credit Agreement (“Amendment No. 2”) to, among other things, extend the maturity date for $ 550 million of revolving credit commitments of certain lenders under the Credit Agreement from March 27, 2024 to March 27, 2025 . We have the option, subject to certain conditions, to exercise an additional one-year extension of the maturity date. Loans under the Credit Agreement bear interest by reference, at our election, to the LIBOR rate or base rate. The applicable margin on LIBOR rate loans varies from 1.00 % to 2.00 % and the applicable margin on base rate loans varies from 0.00 % to 1.00 %, in each case determined based upon our credit rating. As of September 30, 2021, the applicable margin on LIBOR rate loans was 1.75 % and the applicable margin on base rate loans was 0.75 % . A letter of credit fee is payable by us equal to the applicable margin for LIBOR rate loans times the daily amount available to be drawn under outstanding letters of credit. The commitment fee rate payable to the lenders varies from 0.10 % to 0.30 % based on our credit rating. None of our subsidiaries are currently required to be a guarantor under the Credit Agreement. However, if any subsidiary guarantees or incurs debt in excess of the Priority Debt Basket (as defined in the Credit Agreement), such subsidiary is required to become a guarantor under the Credit Agreement. The Credit Agreement contains representations, warranties, affirmative and negative covenants and events of default and associated remedies that we believe are customary for agreements of this nature, including certain restrictions on our ability and the ability of each of our subsidiaries to incur debt and grant liens. If our credit rating is below investment grade at both Moody’s and S&P, we will become subject to a restricted payment covenant, which would require us to have a Pro Forma Debt Service Coverage Ratio (as defined in the Credit Agreement) greater than or equal to 1.50 to 1.00 immediately before and immediately after making any restricted payment. Restricted payments include, among other things, dividend payments, repurchases of our common stock, distributions to holders of our common stock or any other payment or other distribution to third parties on account of our or our subsidiaries’ equity interests. Our credit rating is currently investment grade at one of the two ratings agencies. The Credit Agreement also requires that our total debt to capitalization ratio, expressed as a percentage, not exceed 50 %. The Credit Agreement generally defines the total debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the end of the most recently ended fiscal quarter. We were in compliance with these covenants at September 30, 2021. As of September 30, 2021 , we had no borrowings outstanding under our revolving credit facility. We had $ 0.1 million in letters of credit outstanding under the Credit Agreement at September 30, 2021 and, as a result, had available borrowing capacity of approximately $ 600 million at that date. 2015 Reimbursement Agreement — On March 16, 2015, we entered into a Reimbursement Agreement (the “Reimbursement Agreement”) with The Bank of Nova Scotia (“Scotiabank”), pursuant to which we may from time to time request that Scotiabank issue an unspecified amount of letters of credit. As of September 30, 2021 , we had $ 63.6 million in letters of credit outstanding under the Reimbursement Agreement. Under the terms of the Reimbursement Agreement, we will reimburse Scotiabank on demand for any amounts that Scotiabank has disbursed under any letters of credit. Fees, charges and other reasonable expenses for the issuance of letters of credit are payable by us at the time of issuance at such rates and amounts as are in accordance with Scotiabank’s prevailing practice. We are obligated to pay to Scotiabank interest on all amounts not paid by us on the date of demand or when otherwise due at the LIBOR rate plus 2.25 % per annum, calculated daily and payable monthly, in arrears, on the basis of a calendar year for the actual number of days elapsed, with interest on overdue interest at the same rate as on the reimbursement amounts. We have also agreed that if obligations under the Credit Agreement are secured by liens on any of our or our subsidiaries’ property, then our reimbursement obligations and (to the extent similar obligations would be secured under the Credit Agreement) other obligations under the Reimbursement Agreement and any letters of credit will be equally and ratably secured by all property subject to such liens securing the Credit Agreement. Pursuant to a Continuing Guaranty dated as of March 16, 2015, our payment obligations under the Reimbursement Agreement are jointly and severally guaranteed as to payment and not as to collection by our subsidiaries that from time to time guarantee payment under the Credit Agreement. None of our subsidiaries are currently required to guarantee payment under the Credit Agreement. 2028 Senior Notes and 2029 Senior Notes — On January 19, 2018, we completed an offering of $ 525 million in aggregate principal amount of our 3.95% Senior Notes due 2028 (the “2028 Notes”). The net proceeds before offering expenses were approximately $ 521 million, of which we used $ 239 million to repay amounts outstanding under our revolving credit facility. On November 15, 2019, we completed an offering of $ 350 million in aggregate principal amount of our 5.15% Senior Notes due 2029 (the “2029 Notes”). The net proceeds before offering expenses were approximately $ 347 million. We used a portion of the net proceeds from the offering to prepay our Series B Senior Notes. The remaining net proceeds and available cash on hand was used to repay $ 50 million of the borrowings under the Term Loan Agreement in 2019. During the fourth quarter of 2020, we elected to repurchase portions of our 2028 Notes and 2029 Notes in the open market. The principal amounts retired through these transactions totaled $ 15.5 million related to our 2028 Notes and $ 0.8 million related to our 2029 Notes, plus accrued interest. We pay interest on the 2028 Notes on February 1 and August 1 of each year. The 2028 Notes will mature on February 1, 2028 . The 2028 Notes bear interest at a rate of 3.95 % per annum. We pay interest on the 2029 Notes on May 15 and November 15 of each year. The 2029 Notes will mature on November 15, 2029 . The 2029 Notes bear interest at a rate of 5.15 % per annum. The 2028 Notes and 2029 Notes (together, the “Senior Notes”) are our senior unsecured obligations, which rank equally with all of our other existing and future senior unsecured debt and will rank senior in right of payment to all of our other future subordinated debt. The Senior Notes will be effectively subordinated to any of our future secured debt to the extent of the value of the assets securing such debt. In addition, the Senior Notes will be structurally subordinated to the liabilities (including trade payables) of our subsidiaries that do not guarantee the Senior Notes. None of our subsidiaries are currently required to be a guarantor under the Senior Notes. If our subsidiaries guarantee the Senior Notes in the future, such guarantees (the “Guarantees”) will rank equally in right of payment with all of the guarantors’ future unsecured senior debt and senior in right of payment to all of the guarantors’ future subordinated debt. The Guarantees will be effectively subordinated to any of the guarantors’ future secured debt to the extent of the value of the assets securing such debt. At our option, we may redeem the Senior Notes in whole or in part, at any time or from time to time at a redemption price equal to 100 % of the principal amount of such Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date, plus a “make-whole” premium. Additionally, commencing on November 1, 2027, in the case of the 2028 Notes, and on August 15, 2029, in the case of the 2029 Notes, at our option, we may redeem the respective Senior Notes in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date. The indentures pursuant to which the Senior Notes were issued include covenants that, among other things, limit our and our subsidiaries’ ability to incur certain liens, engage in sale and lease-back transactions or consolidate, merge, or transfer all or substantially all of their assets. These covenants are subject to important qualifications and limitations set forth in the indentures. Upon the occurrence of a change of control triggering event, as defined in the indentures, each holder of the Senior Notes may require us to purchase all or a portion of such holder’s Senior Notes at a price equal to 101 % of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indentures also provide for events of default which, if any of them occurs, would permit or require the principal of, premium, if any, and accrued interest, if any, on the Senior Notes to become or to be declared due and payable. Debt issuance costs — Debt issuance costs, except those related to line-of-credit arrangements, are presented in the balance sheet as a direct reduction of the carrying amount of the related debt. Debt issuance costs related to line-of-credit arrangements are included in “Other non-current assets” in the condensed consolidated balance sheets. Amortization of debt issuance costs is reported as interest expense. Interest expense related to the amortization of debt issuance costs was approximately $ 0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $ 0.8 million for the nine months ended September 30, 2021 and 2020, respectively. Presented below is a schedule of the principal repayment requirements of long-term debt as of September 30, 2021 (in thousands): Year ending December 31, 2021 $ — 2022 50,000 2023 — 2024 — 2025 — Thereafter 858,755 Total $ 908,755 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies As of September 30, 2021 , we maintained letters of credit in the aggregate amount of $ 63.7 million primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses which could become payable under the terms of the underlying insurance contracts. These letters of credit expire annually at various times during the year and are typically renewed. As of September 30, 2021 , no amounts had been drawn under the letters of credit. As of September 30, 2021 , we had commitments to purchase major equipment totaling approximately $ 58.3 million for our drilling, pressure pumping, directional drilling and oilfield rentals businesses. Our pressure pumping business has entered into agreements to purchase minimum quantities of proppants and chemicals from certain vendors. The agreements expire in years 2021 and 2022 . As of September 30, 2021 , the remaining minimum obligation under these agreements was approximately $ 9.0 million, of which approximately $ 7.3 million and $ 1.7 million relate to the remainder of 2021 and 2022, respectively. We are party to various legal proceedings arising in the normal course of our business. We do not believe that the outcome of these proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition, cash flows or results of operations. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Stockholder Rights Agreement — On April 22, 2020, our Board of Directors adopted a stockholder rights agreement and declared a dividend of one right (a “Right”) for each outstanding share of our common stock to stockholders of record at the close of business on May 8, 2020. Each Right entitled its holder, subject to the terms of the Rights Agreement (as defined below), to purchase from us one one-thousandth of a share of our Series A Junior Participating Preferred Stock, par value $ 0.01 per share, at an exercise price of $ 17.00 per Right, subject to adjustment. The description and terms of the Rights were set forth in a stockholder rights agreement, dated as of April 22, 2020 (the “Rights Agreement”), between us and Continental Stock Transfer & Trust Company, as rights agent (the “Rights Agent”). The Rights Agreement expired on April 21, 2021 . On October 27, 2021 , our Board of Directors approved a cash dividend on our common stock in the amount of $ 0.02 per share to be paid on December 16, 2021 to holders of record as of December 2, 2021 . The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors. Share Repurchase and Acquisitions — On September 6, 2013, our Board of Directors approved a stock buyback program that authorized purchases of up to $ 200 million of our common stock in open market or privately negotiated transactions. The authorized repurchases under this program were subsequently increased in July 2018 and February 2019, and on July 24, 2019, our Board of Directors approved another increase of the authorization under the stock buyback program to allow for $ 250 million of future share repurchases. All purchases executed to date have been through open market transactions. Purchases under the program are made at management’s discretion, at prevailing prices, subject to market conditions and other factors. Purchases may be made at any time without prior notice. There is no expiration date associated with the buyback program. As of September 30, 2021 , we had remaining authorization to purchase approximately $ 130 million of our outstanding common stock under the stock buyback program. Shares of stock purchased under the buyback program are held as treasury shares. Treasury stock acquisitions during the nine months ended September 30, 2021 were as follows (dollars in thousands): Shares Cost Treasury shares at beginning of period 83,402,322 $ 1,366,313 Acquisitions pursuant to long-term incentive plan 434,224 3,574 Treasury shares at end of period 83,836,546 $ 1,369,887 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 12. Stock-based Compensation We use share-based payments to compensate employees and non-employee directors. We recognize the cost of share-based payments under the fair-value-based method. Outstanding share-based awards include equity instruments in the form of stock options or restricted stock units that have included service conditions and, in certain cases, performance conditions. Our share-based awards also include share-settled performance unit awards. Share-settled performance unit awards are accounted for as equity awards. In 2020, we granted performance-based cash-settled phantom units, which are accounted for as a liability classified award. We issue shares of common stock when vested stock options are exercised, when restricted stock is granted and when restricted stock units and share-settled performance unit awards vest. On April 9, 2021, subject to the approval of our stockholders, our Board of Directors approved the Patterson-UTI Energy, Inc. 2021 Long-Term Incentive Plan (the “2021 Plan”). On June 3, 2021, our stockholders approved the 2021 Plan. The aggregate number of shares of Common Stock authorized for grant under the 2021 Plan is approximately 13.5 million, which includes approximately 4.9 million shares previously authorized under our Amended and Restated 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”). Stock Options — We estimate the grant date fair values of stock options using the Black-Scholes-Merton valuation model. Volatility assumptions are based on the historic volatility of our common stock over the most recent period equal to the expected term of the options as of the date such options are granted. The expected term assumptions are based on our experience with respect to employee stock option activity. Dividend yield assumptions are based on the expected dividends at the time the options are granted. The risk-free interest rate assumptions are determined by reference to United States Treasury yields. No options were granted during the nine months ended September 30, 2021 or 2020. Stock option activity from January 1, 2021 to September 30, 2021 follows: Weighted Average Underlying Exercise Price Shares Per Share Outstanding at January 1, 2021 4,026,150 $ 21.63 Exercised — $ — Expired ( 276,000 ) $ 31.20 Outstanding at September 30, 2021 3,750,150 $ 20.92 Exercisable at September 30, 2021 3,750,150 $ 20.92 Restricted Stock Units — For all restricted stock unit awards made to date, shares of common stock are not issued until the units vest. Restricted stock units are subject to forfeiture for failure to fulfill service conditions and, in certain cases, performance conditions. Forfeitable dividend equivalents are accrued on certain restricted stock units that will be paid upon vesting. We use the straight-line method to recognize periodic compensation cost over the vesting period. Restricted stock unit activity from January 1, 2021 to September 30, 2021 follows: Weighted Average Grant Time Performance Date Fair Value Based Based Per Share Non-vested restricted stock units outstanding at January 1, 2021 2,741,548 359,315 $ 9.52 Granted 1,797,875 — $ 8.32 Vested ( 1,235,616 ) — $ 10.44 Forfeited ( 109,399 ) — $ 10.88 Non-vested restricted stock units outstanding at September 30, 2021 3,194,408 359,315 $ 8.55 As of September 30, 2021, we had unrecognized compensation cost related to our unvested restricted stock units totaling $ 20.9 million. The weighted-average remaining vesting period for these unvested restricted stock units was 1.84 years. Performance Unit Awards — We have granted share-settled performance unit awards to certain employees (the “Performance Units”) on an annual basis since 2010. The Performance Units provide for the recipients to receive a grant of shares of common stock upon the achievement of certain performance goals during a specified period established by the Compensation Committee. The performance period for the Performance Units is usually the three-year period commencing on April 1 of the year of grant. The performance goals for the Performance Units are tied to our total shareholder return for the performance period as compared to total shareholder return for a peer group determined by the Compensation Committee. For the performance units granted in April 2021, the peer group also includes three market indices. These goals are considered to be market conditions under the relevant accounting standards and the market conditions were factored into the determination of the fair value of the respective Performance Units. Under the Performance Units granted beginning in April 2019, the recipients will receive the target number of shares if our total shareholder return during the performance period, when compared to the peer group, is at the 55 th percentile. If our total shareholder return during the performance period, when compared to the peer group, is at the 75 th percentile or higher, then the recipients will receive two times the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is at the 25 th percentile, then the recipients will only receive one-half of the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is between the 25 th and 55 th percentile, or the 55 th and 75 th percentile, then the shares to be received by the recipients will be determined using linear interpolation for levels of achievement between these points. Under the Performance Units granted beginning in April 2019, the payout shall not exceed the target number of shares if our total shareholder return is negative or zero. Additionally, the Performance Units granted in April 2020 will not pay out if our total shareholder return is not equal to or greater than the total stockholder return of the S&P 500 Index for the Performance Period. The total target number of shares with respect to the Performance Units for the awards granted in 2017-2021 is set forth below: 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 843,000 500,500 489,800 310,700 186,198 In April 2021, 621,400 shares were issued to settle the 2018 Performance Units. The Performance Units granted in 2019, 2020 and 2021 have not reached the end of their respective performance periods. Because the Performance Units are share-settled awards, they are accounted for as equity awards and measured at fair value on the date of grant using a Monte Carlo simulation model. The fair value of the Performance Units is set forth below (in thousands): 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Aggregate fair value at date of grant $ 7,225 $ 826 $ 9,958 $ 8,004 $ 5,780 These fair value amounts are charged to expense on a straight-line basis over the performance period. Compensation expense associated with the Performance Units is shown below (in thousands): 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Three months ended September 30, 2021 $ 602 $ 69 $ 830 NA NA Three months ended September 30, 2020 NA $ 69 $ 830 $ 667 NA Nine months ended September 30, 2021 $ 1,204 $ 206 $ 2,489 $ 667 NA Nine months ended September 30, 2020 NA $ 138 $ 2,489 $ 2,001 $ 642 As of September 30, 2021, we had unrecognized compensation cost related to our unvested Performance Units totaling $ 8.1 million. The weighted-average remaining vesting period for these unvested Performance Units was 1.70 years. Phantom Units — In May 2020, the Compensation Committee approved a grant of long-term performance-based phantom units to our Chief Executive Officer and President, William A. Hendricks, Jr (the “Phantom Units”). The Phantom Units were granted outside of the 2014 Plan. Pursuant to this phantom unit grant, Mr. Hendricks may earn from 0 % to 200 % of a target award of 298,500 phantom units based on our achievement of the same performance conditions over the same Performance Period that applies to the Performance Units granted in April 2020, as described above. Earned Phantom Units, if any, will be settled in 2023 , following completion of the three-year Performance Period, in a cash payment equal to the number of earned phantom units multiplied by our average trading price per share over the twenty consecutive trading days ending March 31, 2023. Because the Phantom Units are cash-settled awards, they are accounted for as a liability classified award. The grant date fair value of the Phantom Units was $ 1.2 million. Compensation expense is recognized on a straight-line basis over the performance period, with the amount recognized fluctuating as a result of the Phantom Units being remeasured to fair value at the end of each reporting period due to their liability-award classification. We recognized a $ 0.2 million decrease to compensation expense associated with the Phantom Units during the three months ended September 30, 2021 due to a decrease in fair value for the period, and minimal expense during the three months ended September 30, 2020. We recognized $ 1.3 million and $ 0.2 million for the nine months ended September 30, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Our effective income tax rate fluctuates from the U.S. statutory tax rate based on, among other factors, changes in pretax income in jurisdictions with varying statutory tax rates, the impact of U.S. state and local taxes, the realizability of deferred tax assets and other differences related to the recognition of income and expense between U.S. GAAP and tax accounting. Our effective income tax rate for the three months ended September 30, 2021 was 17.5 %, compared with 10.4 % for the three months ended September 30, 2020. The higher effective income tax rate for the three months ended September 30, 2021 was primarily attributable to the non-deductible portion of the goodwill impairment included in the 2020 estimated annual effective tax rate. This was partially offset by the valuation allowance included in the 2021 estimated annual effective tax rate. Our effective income tax rate for the nine months ended September 30, 2021 was 15.7 %, compared with 12.8 % for the nine months ended September 30, 2020. The higher effective income tax rate for the nine months ended September 30, 2021 was primarily attributable to the non-deductible portion of the goodwill impairment included in the 2020 estimated annual effective tax rate. This was partially offset by the valuation allowance included in the 2021 estimated annual effective tax rate, and also state rate changes enacted during 2021. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, and when necessary valuation allowances are provided. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We assess the realizability of our deferred tax assets quarterly and consider carryback availability, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. In the third quarter of 2021, the effective tax rate takes into consideration the estimated valuation allowance based on forecasted 2021 income. We continue to monitor income tax developments in the United States and other countries where we have legal entities. During the first quarter of 2021, the United States enacted the American Rescue Plan of 2021, which contains various tax provisions. As a result of this legislation, we have considered these tax provisions and do not expect any material impacts to our financial statements. We will incorporate into our future financial statements the impacts, if any, of future regulations and additional authoritative guidance when finalized. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. Earnings Per Share We provide a dual presentation of our net loss per common share in our unaudited condensed consolidated statements of operations: basic net loss per common share (“Basic EPS”) and diluted net loss per common share (“Diluted EPS”). Basic EPS excludes dilution and is computed by first allocating earnings between common stockholders and holders of non-vested shares of restricted stock. Basic EPS is then determined by dividing the earnings attributable to common stockholders by the weighted average number of common shares outstanding during the period, excluding non-vested shares of restricted stock. Diluted EPS is based on the weighted average number of common shares outstanding plus the dilutive effect of potential common shares, including stock options, non-vested shares of restricted stock, performance units and restricted stock units. The dilutive effect of stock options, performance units and non-vested restricted stock units is determined using the treasury stock method. The following table presents information necessary to calculate net loss per share for the three and nine months ended September 30, 2021 and 2020 as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 BASIC EPS: Net loss attributed to common stockholders ( 82,998 ) $ ( 112,111 ) ( 292,720 ) $ ( 697,165 ) Weighted average number of common shares outstanding, excluding 188,965 187,280 188,355 188,193 Basic net loss per common share $ ( 0.44 ) $ ( 0.60 ) $ ( 1.55 ) $ ( 3.70 ) DILUTED EPS: Net loss attributed to common stockholders ( 82,998 ) $ ( 112,111 ) ( 292,720 ) $ ( 697,165 ) Weighted average number of common shares outstanding, excluding 188,965 187,280 188,355 188,193 Add dilutive effect of potential common shares — — — — Weighted average number of diluted common shares outstanding 188,965 187,280 188,355 188,193 Diluted net loss per common share $ ( 0.44 ) $ ( 0.60 ) $ ( 1.55 ) $ ( 3.70 ) Potentially dilutive securities excluded as anti-dilutive 9,334 8,490 9,334 8,490 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | 15. Business Segments At September 30, 2021 , we had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business and has a separate management team that reports to our chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. The following tables summarize selected financial information relating to our business segments (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues: Contract drilling $ 158,154 $ 115,105 $ 434,080 $ 554,421 Pressure pumping 152,634 71,973 340,464 256,613 Directional drilling 31,728 10,271 76,267 56,498 Other operations (1) 20,744 11,756 53,561 46,061 Elimination of intercompany revenues - Contract drilling (2) ( 229 ) ( 51 ) ( 922 ) ( 869 ) Elimination of intercompany revenues - Other operations (2) ( 5,146 ) ( 1,913 ) ( 12,862 ) ( 9,276 ) Total revenues $ 357,885 $ 207,141 $ 890,588 $ 903,448 Income (loss) before income taxes: Contract drilling $ ( 51,830 ) $ ( 47,214 ) $ ( 158,680 ) $ ( 481,974 ) Pressure pumping ( 13,774 ) ( 30,856 ) ( 77,434 ) ( 134,896 ) Directional drilling ( 4,581 ) ( 9,912 ) ( 14,614 ) ( 34,892 ) Other operations ( 1,335 ) ( 6,421 ) ( 9,178 ) ( 35,547 ) Corporate ( 18,489 ) ( 20,163 ) ( 57,040 ) ( 75,145 ) Credit loss expense — — — ( 5,606 ) Interest income 37 238 196 1,229 Interest expense ( 10,683 ) ( 11,288 ) ( 31,396 ) ( 33,496 ) Other 14 512 840 682 Loss before income taxes $ ( 100,641 ) $ ( 125,104 ) $ ( 347,306 ) $ ( 799,645 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 97,160 $ 102,275 $ 297,426 $ 328,843 Pressure pumping 29,838 37,104 98,963 118,586 Directional drilling 6,772 9,600 19,863 29,698 Other operations 5,866 6,852 17,309 35,087 Corporate 1,429 1,488 4,423 4,987 Total depreciation, depletion, amortization and impairment $ 141,065 $ 157,319 $ 437,984 $ 517,201 Capital expenditures: Contract drilling $ 21,239 $ 9,502 $ 56,708 $ 101,448 Pressure pumping 6,468 1,653 19,457 17,880 Directional drilling 3,290 510 4,613 4,562 Other operations 2,833 1,704 9,006 9,776 Corporate 434 73 1,053 1,377 Total capital expenditures $ 34,264 $ 13,442 $ 90,837 $ 135,043 September 30, 2021 December 31, 2020 Identifiable assets: Contract drilling $ 2,099,859 $ 2,315,318 Pressure pumping 474,013 486,702 Directional drilling 105,368 107,807 Other operations 85,713 88,676 Corporate (3) 252,510 300,566 Total assets $ 3,017,463 $ 3,299,069 (1) Other operations includes our oilfi eld rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests. (2) I ntercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations . These revenues are generally based on estimated external selling prices and are eliminated during consolidation. (3) Corporate assets primarily include cash on hand and certain property and equipment. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 16. Fair Values of Financial Instruments The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The estimated fair value of our outstanding debt balances as of September 30, 2021 and December 31, 2020 is set forth below (in thousands): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Term Loan Agreement $ 50,000 $ 50,000 $ 50,000 $ 50,000 3.95% Senior Notes 509,505 513,367 509,505 471,019 5.15% Senior Notes 349,250 360,443 349,250 319,560 Total debt $ 908,755 $ 923,810 $ 908,755 $ 840,579 The fair values of the 3.95 % Senior Notes at September 30, 2021 and December 31, 2020 are based on discounted cash flows associated with the notes using the 3.81 % market rate of interest at September 30, 2021 and the 5.24 % market rate of interest at December 31, 2020. The fair values of the 5.15 % Senior Notes at September 30, 2021 and December 31, 2020 are based on discounted cash flows associated with the notes using the 4.67 % market rate of interest at September 30, 2021 and the 6.42 % market rate of interest at December 31, 2020. The fair value estimates of the 3.95% Senior Notes and the 5.15% Senior Notes are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The carrying values of the balance outstanding at September 30, 2021 under the Term Loan Agreement approximated its fair value as the instrument has a floating interest rate. |
Restructuring Expenses
Restructuring Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Expenses | 17. Restructuring Expenses During the second quarter of 2020, we implemented a restructuring plan to improve operating margins, achieve operational efficiencies and reduce indirect support costs. The restructuring included workforce reductions, changes to management structure and facility consolidations and closures. We recorded $ 38.3 million of charges associated with this plan in the second quarter of 2020 . We completed the restructuring plan during the third quarter of 2020 and did not incur additional expenses related to the plan. Contract termination costs related primarily to agreements to purchase minimum quantities of proppants (sand) from certain vendors. These costs were primarily comprised of a $ 5.3 million negotiated settlement and termination of a contract to purchase minimum quantities of sand and $ 14.0 million of contractual future payments under two contracts to purchase minimum quantities of sand without future economic benefit to us. We will not receive any sand under these contracts. Other exit costs related primarily to facility closure costs and moving expenses. The right of use (“ROU”) asset abandonments related to facility and equipment ROU assets abandoned as a result of restructuring. The following table presents restructuring expenses by reportable segment for the nine months ended September 30, 2020 (in thousands): Contract Drilling Pressure Pumping Directional Drilling Other Operations Corporate Total Severance costs $ 1,821 $ 3,460 $ 503 $ 501 $ 215 $ 6,500 Contract termination costs — 20,373 — — — 20,373 Other exit costs 523 194 827 — — 1,544 ROU asset abandonments 86 7,304 1,845 — 686 9,921 Total $ 2,430 $ 31,331 $ 3,175 $ 501 $ 901 $ 38,338 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards — In June 2016, the FASB issued an accounting standards update on measurement of credit losses on financial instruments. The new guidance requires us to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The new standard is effective for fiscal years beginning after December 15, 2019, including all interim periods within those years. We adopted ASU 2016-13 as of January 1, 2020. The adoption of this guidance and recognition of a loss allowance at an amount equal to expected credit losses for accounts receivable was not material and did not result in a transition adjustment to retained earnings. For more information regarding credit losses, see Note 3. In August 2018, the FASB issued an accounting standards update to align 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. We adopted this new guidance on January 1, 2020 prospectively with respect to all implementation costs incurred after the date of adoption. There was no material impact on our consolidated financial statements. In August 2018, the FASB issued an accounting standards update to eliminate certain disclosure requirements for fair value measurements for all entities, require public entities to disclose certain new information and modify certain disclosure requirements. The FASB developed the amendments to Topic 820 as part of its broader disclosure framework project, which aims to improve the effectiveness of disclosures in the notes to financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. We adopted this new guidance on January 1, 2020 and there was no material impact on our consolidated financial statements. In December 2019, the FASB issued an accounting standards update to simplify the accounting for income taxes. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted this new guidance on January 1, 2021, and there was no material impact on our consolidated financial statements. Recently Issued Accounting Standards — In March 2020, the FASB issued an accounting standards update to provide temporary optional expedients that simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The amendments in the update are effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications from the beginning of an interim period that includes or is subsequent to March 12, 2020. We plan to adopt this standard when LIBOR is discontinued, and we do not expect this new guidance will have a material impact on our consolidated financial statements. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Finished goods $ 566 $ 600 Work-in-process 943 802 Raw materials and supplies 33,415 31,683 Inventory $ 34,924 $ 33,085 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Equipment $ 7,559,061 $ 7,647,451 Oil and natural gas properties 229,224 222,738 Buildings 182,113 193,503 Land 24,562 25,781 Total property and equipment 7,994,960 8,089,473 Less accumulated depreciation, depletion and impairment ( 5,570,235 ) ( 5,328,432 ) Property and equipment, net $ 2,424,725 $ 2,761,041 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | Intangible Assets — The following table presents the gross carrying amount and accumulated amortization of our intangible assets as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 1,800 $ ( 750 ) $ 1,050 $ 28,000 $ ( 26,757 ) $ 1,243 Developed technology 55,772 ( 36,613 ) 19,159 55,772 ( 27,515 ) 28,257 Internal use software 1,251 ( 408 ) 843 906 ( 319 ) 587 $ 58,823 $ ( 37,771 ) $ 21,052 $ 84,678 $ ( 54,591 ) $ 30,087 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Salaries, wages, payroll taxes and benefits $ 38,046 $ 37,627 Workers' compensation liability 62,428 70,847 Property, sales, use and other taxes 19,572 10,666 Insurance, other than workers' compensation 7,686 8,462 Accrued interest payable 10,101 11,325 Accrued restructuring expenses 7,884 14,310 Other 21,411 21,767 Accrued liabilities $ 167,128 $ 175,004 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt consisted of the following at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Term Loan Agreement (Maturing June 2022) (1) $ 50,000 $ 50,000 3.95 % Senior Notes 509,505 509,505 5.15 % Senior Notes 349,250 349,250 908,755 908,755 Less deferred financing costs and discounts ( 6,651 ) ( 7,271 ) Total $ 902,104 $ 901,484 (1) The borrowings outstanding under the Term Loan Agreement maturing in June 2022 are classified as long-term because we have the ability and intent to repay these obligations utilizing our revolving credit facility. Our revolving credit facility matures in two increments in 2024 and 2025. |
Schedule of Principal Repayment Requirements of Long Term Debt | Presented below is a schedule of the principal repayment requirements of long-term debt as of September 30, 2021 (in thousands): Year ending December 31, 2021 $ — 2022 50,000 2023 — 2024 — 2025 — Thereafter 858,755 Total $ 908,755 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Treasury Stock Acquisition | Treasury stock acquisitions during the nine months ended September 30, 2021 were as follows (dollars in thousands): Shares Cost Treasury shares at beginning of period 83,402,322 $ 1,366,313 Acquisitions pursuant to long-term incentive plan 434,224 3,574 Treasury shares at end of period 83,836,546 $ 1,369,887 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | Stock option activity from January 1, 2021 to September 30, 2021 follows: Weighted Average Underlying Exercise Price Shares Per Share Outstanding at January 1, 2021 4,026,150 $ 21.63 Exercised — $ — Expired ( 276,000 ) $ 31.20 Outstanding at September 30, 2021 3,750,150 $ 20.92 Exercisable at September 30, 2021 3,750,150 $ 20.92 |
Restricted Stock Unit Activity | Restricted stock unit activity from January 1, 2021 to September 30, 2021 follows: Weighted Average Grant Time Performance Date Fair Value Based Based Per Share Non-vested restricted stock units outstanding at January 1, 2021 2,741,548 359,315 $ 9.52 Granted 1,797,875 — $ 8.32 Vested ( 1,235,616 ) — $ 10.44 Forfeited ( 109,399 ) — $ 10.88 Non-vested restricted stock units outstanding at September 30, 2021 3,194,408 359,315 $ 8.55 |
Performance Units | The total target number of shares with respect to the Performance Units for the awards granted in 2017-2021 is set forth below: 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 843,000 500,500 489,800 310,700 186,198 |
Fair Value of Performance Units | The fair value of the Performance Units is set forth below (in thousands): 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Aggregate fair value at date of grant $ 7,225 $ 826 $ 9,958 $ 8,004 $ 5,780 |
Compensation Expense Associated with Performance Units | Compensation expense associated with the Performance Units is shown below (in thousands): 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Three months ended September 30, 2021 $ 602 $ 69 $ 830 NA NA Three months ended September 30, 2020 NA $ 69 $ 830 $ 667 NA Nine months ended September 30, 2021 $ 1,204 $ 206 $ 2,489 $ 667 NA Nine months ended September 30, 2020 NA $ 138 $ 2,489 $ 2,001 $ 642 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss per Share | The following table presents information necessary to calculate net loss per share for the three and nine months ended September 30, 2021 and 2020 as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 BASIC EPS: Net loss attributed to common stockholders ( 82,998 ) $ ( 112,111 ) ( 292,720 ) $ ( 697,165 ) Weighted average number of common shares outstanding, excluding 188,965 187,280 188,355 188,193 Basic net loss per common share $ ( 0.44 ) $ ( 0.60 ) $ ( 1.55 ) $ ( 3.70 ) DILUTED EPS: Net loss attributed to common stockholders ( 82,998 ) $ ( 112,111 ) ( 292,720 ) $ ( 697,165 ) Weighted average number of common shares outstanding, excluding 188,965 187,280 188,355 188,193 Add dilutive effect of potential common shares — — — — Weighted average number of diluted common shares outstanding 188,965 187,280 188,355 188,193 Diluted net loss per common share $ ( 0.44 ) $ ( 0.60 ) $ ( 1.55 ) $ ( 3.70 ) Potentially dilutive securities excluded as anti-dilutive 9,334 8,490 9,334 8,490 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments - Financial Information | The following tables summarize selected financial information relating to our business segments (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues: Contract drilling $ 158,154 $ 115,105 $ 434,080 $ 554,421 Pressure pumping 152,634 71,973 340,464 256,613 Directional drilling 31,728 10,271 76,267 56,498 Other operations (1) 20,744 11,756 53,561 46,061 Elimination of intercompany revenues - Contract drilling (2) ( 229 ) ( 51 ) ( 922 ) ( 869 ) Elimination of intercompany revenues - Other operations (2) ( 5,146 ) ( 1,913 ) ( 12,862 ) ( 9,276 ) Total revenues $ 357,885 $ 207,141 $ 890,588 $ 903,448 Income (loss) before income taxes: Contract drilling $ ( 51,830 ) $ ( 47,214 ) $ ( 158,680 ) $ ( 481,974 ) Pressure pumping ( 13,774 ) ( 30,856 ) ( 77,434 ) ( 134,896 ) Directional drilling ( 4,581 ) ( 9,912 ) ( 14,614 ) ( 34,892 ) Other operations ( 1,335 ) ( 6,421 ) ( 9,178 ) ( 35,547 ) Corporate ( 18,489 ) ( 20,163 ) ( 57,040 ) ( 75,145 ) Credit loss expense — — — ( 5,606 ) Interest income 37 238 196 1,229 Interest expense ( 10,683 ) ( 11,288 ) ( 31,396 ) ( 33,496 ) Other 14 512 840 682 Loss before income taxes $ ( 100,641 ) $ ( 125,104 ) $ ( 347,306 ) $ ( 799,645 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 97,160 $ 102,275 $ 297,426 $ 328,843 Pressure pumping 29,838 37,104 98,963 118,586 Directional drilling 6,772 9,600 19,863 29,698 Other operations 5,866 6,852 17,309 35,087 Corporate 1,429 1,488 4,423 4,987 Total depreciation, depletion, amortization and impairment $ 141,065 $ 157,319 $ 437,984 $ 517,201 Capital expenditures: Contract drilling $ 21,239 $ 9,502 $ 56,708 $ 101,448 Pressure pumping 6,468 1,653 19,457 17,880 Directional drilling 3,290 510 4,613 4,562 Other operations 2,833 1,704 9,006 9,776 Corporate 434 73 1,053 1,377 Total capital expenditures $ 34,264 $ 13,442 $ 90,837 $ 135,043 September 30, 2021 December 31, 2020 Identifiable assets: Contract drilling $ 2,099,859 $ 2,315,318 Pressure pumping 474,013 486,702 Directional drilling 105,368 107,807 Other operations 85,713 88,676 Corporate (3) 252,510 300,566 Total assets $ 3,017,463 $ 3,299,069 (1) Other operations includes our oilfi eld rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests. (2) I ntercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations . These revenues are generally based on estimated external selling prices and are eliminated during consolidation. (3) Corporate assets primarily include cash on hand and certain property and equipment. |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Outstanding Debt Balances | The estimated fair value of our outstanding debt balances as of September 30, 2021 and December 31, 2020 is set forth below (in thousands): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Term Loan Agreement $ 50,000 $ 50,000 $ 50,000 $ 50,000 3.95% Senior Notes 509,505 513,367 509,505 471,019 5.15% Senior Notes 349,250 360,443 349,250 319,560 Total debt $ 908,755 $ 923,810 $ 908,755 $ 840,579 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Expenses by Reportable Segment | The following table presents restructuring expenses by reportable segment for the nine months ended September 30, 2020 (in thousands): Contract Drilling Pressure Pumping Directional Drilling Other Operations Corporate Total Severance costs $ 1,821 $ 3,460 $ 503 $ 501 $ 215 $ 6,500 Contract termination costs — 20,373 — — — 20,373 Other exit costs 523 194 827 — — 1,544 ROU asset abandonments 86 7,304 1,845 — 686 9,921 Total $ 2,430 $ 31,331 $ 3,175 $ 501 $ 901 $ 38,338 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - Pioneer Energy Services Corp. - Subsequent Event $ / shares in Units, $ in Millions | Oct. 01, 2021USD ($)Rigs$ / sharesshares |
Business Acquisition [Line Items] | |
Aggregate consideration of common stock | shares | 26,300,000 |
Consideration paid in cash | $ | $ 30 |
Closing price | $ / shares | $ 9.44 |
Business Combination, Consideration Transferred | $ | $ 278 |
Proportion of common stock shares received | shares | 1.8692 |
Oil and Gas, Exploration and Production | Drilling Rig | |
Business Acquisition [Line Items] | |
Percentage of acquired pad-capable drilling rig fleet | 100.00% |
Oil and Gas, Exploration and Production | Well Servicing Rigs | |
Business Acquisition [Line Items] | |
Number of services assets units acquired | 123 |
Oil and Gas, Exploration and Production | Wireline Service Unit | |
Business Acquisition [Line Items] | |
Number of services assets units acquired | 72 |
Oil and Gas, Exploration and Production | COLOMBIA | SCR Rigs | |
Business Acquisition [Line Items] | |
Number of units acquired | 8 |
Oil and Gas, Exploration and Production | UNITED STATES | AC Rigs | |
Business Acquisition [Line Items] | |
Number of units acquired | 17 |
Credit Losses - Additional Info
Credit Losses - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Credit Loss [Abstract] | ||||
Credit loss expense | $ 0 | $ 0 | $ 0 | $ 5,606,000 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable balances | $ 263,186,000 | $ 263,186,000 | $ 160,214,000 | ||
Total revenues | 357,885,000 | $ 207,141,000 | 890,588,000 | $ 903,448,000 | |
ASC Topic 606 Revenue from Contracts with Customers | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable balances | 158,000,000 | ||||
Total revenues | 2,300,000 | 0 | |||
ASC Topic 606 Revenue from Contracts with Customers | Accounts Payable | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total contract liability | $ 900,000 | 900,000 | $ 600,000 | ||
ASC Topic 606 Revenue from Contracts with Customers | Contract Drilling | |||||
Disaggregation Of Revenue [Line Items] | |||||
Amortized revenue | $ 0 | $ 100,000 | |||
Maximum | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable payment terms | 60 days | ||||
Minimum | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable payment terms | 30 days |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Net [Abstract] | ||
Finished goods | $ 566 | $ 600 |
Work-in-process | 943 | 802 |
Raw materials and supplies | 33,415 | 31,683 |
Inventory | $ 34,924 | $ 33,085 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,994,960 | $ 8,089,473 |
Less accumulated depreciation, depletion and impairment | (5,570,235) | (5,328,432) |
Property and equipment, net | 2,424,725 | 2,761,041 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,559,061 | 7,647,451 |
Oil and natural gas properties | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 229,224 | 222,738 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 182,113 | 193,503 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 24,562 | $ 25,781 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Rigs and Spare Rig Components That Would No Longer Be Marketed | ||
Property Plant And Equipment [Line Items] | ||
Impairment charge of drilling equipment | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Goodwill | $ 0 | $ 0 | |||
Goodwill impairment charge | 0 | $ 0 | 0 | $ 395,060,000 | |
Amortization expense on intangible assets | $ 3,100,000 | $ 5,300,000 | $ 9,400,000 | $ 15,900,000 | |
Contract Drilling | |||||
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Goodwill impairment charge | $ 395,000,000 |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 58,823 | $ 84,678 |
Accumulated Amortization | (37,771) | (54,591) |
Net Carrying Amount | 21,052 | 30,087 |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,800 | 28,000 |
Accumulated Amortization | (750) | (26,757) |
Net Carrying Amount | 1,050 | 1,243 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 55,772 | 55,772 |
Accumulated Amortization | (36,613) | (27,515) |
Net Carrying Amount | 19,159 | 28,257 |
Internal Use Software | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,251 | 906 |
Accumulated Amortization | (408) | (319) |
Net Carrying Amount | $ 843 | $ 587 |
Summary of Accrued Liabilities
Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Salaries, wages, payroll taxes and benefits | $ 38,046 | $ 37,627 |
Workers' compensation liability | 62,428 | 70,847 |
Property, sales, use and other taxes | 19,572 | 10,666 |
Insurance, other than workers' compensation | 7,686 | 8,462 |
Accrued interest payable | 10,101 | 11,325 |
Accrued restructuring expenses | 7,884 | 14,310 |
Other | 21,411 | 21,767 |
Accrued liabilities | $ 167,128 | $ 175,004 |
Summary of Long Term Debt (Deta
Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 908,755 | $ 908,755 | |
Less deferred financing costs and discounts | (6,651) | (7,271) | |
Total | 902,104 | 901,484 | |
Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt | [1] | 50,000 | 50,000 |
3.95% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 509,505 | 509,505 | |
5.15% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 349,250 | $ 349,250 | |
[1] | The borrowings outstanding under the Term Loan Agreement maturing in June 2022 are classified as long-term because we have the ability and intent to repay these obligations utilizing our revolving credit facility. Our revolving credit facility matures in two increments in 2024 and 2025. |
Summary of Long Term Debt (Pare
Summary of Long Term Debt (Parenthetical ) (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
3.95% Senior Notes | |
Debt Instrument [Line Items] | |
Debt interest rate | 3.95% |
5.15% Senior Notes | |
Debt Instrument [Line Items] | |
Debt interest rate | 5.15% |
Term Loan Agreement | |
Debt Instrument [Line Items] | |
Maturity date | 2022-06 |
Term Loan Agreement | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Revolving credit facility description | Our revolving credit facility matures in two increments in 2024 and 2025. |
Long-Term Debt - Term Loan Agre
Long-Term Debt - Term Loan Agreement - Additional Information (Detail) - Term Loan Agreement - USD ($) | Dec. 24, 2020 | Dec. 16, 2019 | Aug. 22, 2019 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||||
Credit agreement date | Aug. 22, 2019 | |||
Credit facility, maximum borrowing capacity | $ 150,000,000 | |||
Debt maturity date | Jun. 10, 2022 | |||
Maturity date | 2022-06 | |||
Percentage of net cash proceeds from issuance of new senior indebtedness | 100.00% | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt service coverage ratio | 150.00% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt to capitalization ratio, percentage the Company must not exceed at any time | 50.00% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility description | Our revolving credit facility matures in two increments in 2024 and 2025. | |||
London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.375% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.375% | |||
Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.375% | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.00% | |||
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.375% | |||
Subject To Customary Conditions | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 225,000,000 | |||
Credit facility, additional borrowing capacity | $ 75,000,000 | |||
Repayments of borrowings | $ 50,000,000 | $ 50,000,000 | ||
Term Loan, amount outstanding | $ 50,000,000 | |||
Subject To Customary Conditions | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
LIBOR-based interest rate | 1.46% |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities - Additional Information (Detail) | Mar. 27, 2020USD ($) | Mar. 27, 2018USD ($)Option | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 63,700,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | 0 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | 0 | ||
Line of credit, available borrowing capacity | $ 600,000,000 | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit agreement date | Mar. 27, 2018 | ||
Credit agreement, financial covenant description | our total debt to capitalization ratio, expressed as a percentage, not exceed 50%. The Credit Agreement generally defines the total debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the end of the most recently ended fiscal quarter. | ||
Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee rate payable to lenders based on credit rating | 0.10% | ||
Debt service coverage ratio | 1.50% | ||
Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee rate payable to lenders based on credit rating | 0.30% | ||
Debt to capitalization ratio, percentage the Company must not exceed at any time | 50.00% | ||
Credit Agreement | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% | ||
Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.00% | ||
Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.00% | ||
Credit Agreement | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% | ||
Credit Agreement | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | ||
Credit Agreement | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.00% | ||
Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 550,000,000 | $ 600,000,000 | |
Original maturity date | Mar. 27, 2023 | ||
Extend maturity date range, Start | Mar. 27, 2024 | ||
Extend maturity date range, End | Mar. 27, 2025 | ||
Debt instrument, number of optional extensions to initial maturity date | Option | 1 | ||
Optional extension period of initial maturity date | 1 year | ||
Letters of credit outstanding | $ 100,000 | ||
Credit Agreement | Revolving Credit Facility | Subject To Customary Conditions | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 900,000,000 | ||
Credit facility, additional borrowing capacity | 300,000,000 | ||
Credit Agreement | Revolving Credit Facility | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 150,000,000 | ||
Credit Agreement | Revolving Credit Facility | Swing Line Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 20,000,000 | ||
Reimbursement Agreement | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 63,600,000 | ||
Reimbursement Agreement | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.25% |
Long-Term Debt - Senior Notes -
Long-Term Debt - Senior Notes - Additional Information (Detail) - USD ($) $ in Millions | Nov. 15, 2019 | Jan. 19, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Interest expense related to amortization of debt issuance costs | $ 0.3 | $ 0.3 | $ 0.8 | $ 0.8 | |||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of borrowings | $ 239 | ||||||
3.95% Senior Notes Due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, aggregate principal amount | 525 | ||||||
Proceeds from borrowings, before offering expenses | $ 521 | ||||||
Debt payment term | We pay interest on the 2028 Notes on February 1 and August 1 of each year. | ||||||
Debt maturity date | Feb. 1, 2028 | ||||||
Debt interest rate | 3.95% | 3.95% | 3.95% | 3.95% | |||
Debt instrument redemption description | At our option, we may redeem the Senior Notes in whole or in part, at any time or from time to time at a redemption price equal to 100% of the principal amount of such Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date, plus a “make-whole” premium. Additionally, commencing on November 1, 2027, in the case of the 2028 Notes, and on August 15, 2029, in the case of the 2029 Notes, at our option, we may redeem the respective Senior Notes in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date. | ||||||
Debt instrument, redemption percentage | 100.00% | ||||||
Debt instrument redemption upon the occurrence of change of control, description | Upon the occurrence of a change of control triggering event, as defined in the indentures, each holder of the Senior Notes may require us to purchase all or a portion of such holder’s Senior Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. | ||||||
Redemption price percentage of principal amount of debt instrument on change of control | 101.00% | ||||||
5.15% Senior Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, aggregate principal amount | $ 350 | ||||||
Proceeds from borrowings, before offering expenses | $ 347 | ||||||
Debt payment term | We pay interest on the 2029 Notes on May 15 and November 15 of each year. | ||||||
Debt maturity date | Nov. 15, 2029 | ||||||
Debt interest rate | 5.15% | 5.15% | 5.15% | 5.15% | |||
Debt instrument redemption description | At our option, we may redeem the Senior Notes in whole or in part, at any time or from time to time at a redemption price equal to 100% of the principal amount of such Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date, plus a “make-whole” premium. Additionally, commencing on November 1, 2027, in the case of the 2028 Notes, and on August 15, 2029, in the case of the 2029 Notes, at our option, we may redeem the respective Senior Notes in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date. | ||||||
Debt instrument, redemption percentage | 100.00% | ||||||
Term Loan Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of borrowings | $ 50 | ||||||
2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, repurchase amount | $ 15.5 | ||||||
2029 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, repurchase amount | $ 0.8 |
Schedule of Principal Repayment
Schedule of Principal Repayment Requirements of Long-Term Debt (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 50,000 |
Thereafter | 858,755 |
Total | $ 908,755 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |
Letters of credit, collateral for retrospective premiums and retained losses | $ 63,700,000 |
Commitments to purchase major equipment | $ 58,300,000 |
Agreement expire description | The agreements expire in years 2021 and 2022 |
Purchase obligations for remainder of 2021 | $ 7,300,000 |
Purchase obligations for 2022 | 1,700,000 |
Current obligation | 9,000,000 |
Letter of Credit | |
Commitments and Contingencies Disclosure [Line Items] | |
Amount drawn under letters of credit | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Oct. 27, 2021 | Apr. 22, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Jul. 24, 2019 | Sep. 06, 2013 |
Class Of Stock [Line Items] | |||||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||||||||
Expire period of Right agreement | Apr. 21, 2021 | ||||||||||
Dividend per share, declared | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.04 | |||||
2013 program | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Increase of the authorization under the stock buyback program | $ 250,000,000 | ||||||||||
Remaining amount approved for repurchases under stock buyback program | $ 130,000,000 | ||||||||||
2013 program | Maximum | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Amount approved for repurchases under stock buyback program | $ 200,000,000 | ||||||||||
Subsequent Event | Dividend Declared | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Dividend declaration date | Oct. 27, 2021 | ||||||||||
Dividend per share, declared | $ 0.02 | ||||||||||
Dividend payment date | Dec. 16, 2021 | ||||||||||
Dividend record date | Dec. 2, 2021 | ||||||||||
Series A Junior Participating Preferred Stock | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Preferred stock, par value | $ 0.01 | ||||||||||
Preferred stock, exercise price per right | $ 17 |
Treasury Stock Acquisition (Det
Treasury Stock Acquisition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | |
Schedule of Treasury Stock [Line Items] | ||||||
Treasury shares at beginning of period | 83,402,322 | |||||
Treasury shares at end of period | 83,836,546 | 83,836,546 | ||||
Treasury shares at beginning of period | $ 1,366,313 | |||||
Acquisitions pursuant to long-term incentive plan, cost | $ 52 | $ 3,522 | $ 194 | $ 910 | $ 20,025 | |
Treasury shares at end of period | $ 1,369,887 | $ 1,369,887 | ||||
Long Term Incentive Plan | ||||||
Schedule of Treasury Stock [Line Items] | ||||||
Acquisitions pursuant to long-term incentive plan, shares | 434,224 | |||||
Acquisitions pursuant to long-term incentive plan, cost | $ 3,574 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | May 31, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock option granted | 0 | 0 | |||
Performance Units Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Unrecognized compensation cost | $ 8.1 | $ 8.1 | |||
Weighted-average remaining vesting period | 1 year 8 months 12 days | ||||
Performance Units Awards | 2018 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued | 621,400 | ||||
Performance Units Awards | Condition One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award description | The performance goals for the Performance Units are tied to our total shareholder return for the performance period as compared to total shareholder return for a peer group determined by the Compensation Committee. For the performance units granted in April 2021, the peer group also includes three market indices. These goals are considered to be market conditions under the relevant accounting standards and the market conditions were factored into the determination of the fair value of the respective Performance Units. Under the Performance Units granted beginning in April 2019, the recipients will receive the target number of shares if our total shareholder return during the performance period, when compared to the peer group, is at the 55th percentile. If our total shareholder return during the performance period, when compared to the peer group, is at the 75th percentile or higher, then the recipients will receive two times the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is at the 25th percentile, then the recipients will only receive one-half of the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is between the 25th and 55th percentile, or the 55th and 75th percentile, then the shares to be received by the recipients will be determined using linear interpolation for levels of achievement between these points. Under the Performance Units granted beginning in April 2019, the payout shall not exceed the target number of shares if our total shareholder return is negative or zero. Additionally, the Performance Units granted in April 2020 will not pay out if our total shareholder return is not equal to or greater than the total stockholder return of the S&P 500 Index for the Performance Period. | ||||
Phantom Share Units (PSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award description | Mr. Hendricks may earn from 0% to 200% of a target award of 298,500 phantom units based on our achievement of the same performance conditions over the same Performance Period that applies to the Performance Units granted in April 2020, as described above. Earned Phantom Units, if any, will be settled in 2023, following completion of the three-year Performance Period, in a cash payment equal to the number of earned phantom units multiplied by our average trading price per share over the twenty consecutive trading days ending March 31, 2023. | ||||
Performance completion year | 2023 | ||||
Performance Period | 3 years | ||||
Grant date fair value | $ 1.2 | ||||
Expense recognized | 0.2 | $ 1.3 | $ 0.2 | ||
Phantom Share Units (PSUs) | Chief Executive Officer and President | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of units awardable based on performance conditions | 298,500 | ||||
Phantom Share Units (PSUs) | Chief Executive Officer and President | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of target award vesting rights | 0.00% | ||||
Phantom Share Units (PSUs) | Chief Executive Officer and President | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of target award vesting rights | 200.00% | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 20.9 | $ 20.9 | |||
Weighted-average remaining vesting period | 1 year 10 months 2 days | ||||
Two Thousand Twenty One Long Term Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares authorized for grant | 13,500,000 | 13,500,000 | |||
Amended and Restated Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares authorized for grant | 4,900,000 | 4,900,000 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares | |
Outstanding at beginning of period | shares | 4,026,150 |
Expired | shares | (276,000) |
Outstanding at end of period | shares | 3,750,150 |
Exercisable at end of year | shares | 3,750,150 |
Weighted Average Exercise Price Per Share | |
Outstanding at beginning of period | $ / shares | $ 21.63 |
Expired | $ / shares | 31.20 |
Outstanding at end of period | $ / shares | 20.92 |
Exercisable at end of year | $ / shares | $ 20.92 |
Restricted Stock Unit Activity
Restricted Stock Unit Activity (Detail) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Time Based Restricted Stock Units | |
Shares | |
Outstanding at beginning of period | 2,741,548 |
Granted | 1,797,875 |
Vested | (1,235,616) |
Forfeited | (109,399) |
Outstanding at end of period | 3,194,408 |
Performance Based Restricted Stock Units | |
Shares | |
Outstanding at beginning of period | 359,315 |
Outstanding at end of period | 359,315 |
Restricted Stock Units (RSUs) | |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding at beginning of period | $ / shares | $ 9.52 |
Granted | $ / shares | 8.32 |
Vested | $ / shares | 10.44 |
Forfeited | $ / shares | 10.88 |
Outstanding at end of period | $ / shares | $ 8.55 |
Performance Units (Detail)
Performance Units (Detail) | 9 Months Ended |
Sep. 30, 2021shares | |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 843,000 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 500,500 |
2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 489,800 |
2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 310,700 |
2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 186,198 |
Fair Value of Performance Units
Fair Value of Performance Units (Detail) - Performance Units Awards | 9 Months Ended |
Sep. 30, 2021USD ($) | |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 7,225,000 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 826,000 |
2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 9,958,000 |
2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 8,004,000 |
2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 5,780,000 |
Compensation Expense Associated
Compensation Expense Associated with Performance Units (Detail) - Performance Units Awards - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
2021 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 602 | $ 1,204 | ||
2020 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | 69 | $ 69 | 206 | $ 138 |
2019 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 830 | 830 | 2,489 | 2,489 |
2018 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 667 | $ 667 | 2,001 | |
2017 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 642 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 17.50% | 10.40% | 15.70% | 12.80% |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
BASIC EPS: | ||||
Net loss attributed to common stockholders | $ (82,998) | $ (112,111) | $ (292,720) | $ (697,165) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 188,965,000 | 187,280,000 | 188,355,000 | 188,193,000 |
Basic net loss per common share | $ (0.44) | $ (0.60) | $ (1.55) | $ (3.70) |
DILUTED EPS: | ||||
Net loss attributed to common stockholders | $ (82,998) | $ (112,111) | $ (292,720) | $ (697,165) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 188,965,000 | 187,280,000 | 188,355,000 | 188,193,000 |
Add dilutive effect of potential common shares | 0 | 0 | 0 | 0 |
Weighted average number of diluted common shares outstanding | 188,965,000 | 187,280,000 | 188,355,000 | 188,193,000 |
Diluted net loss per common share | $ (0.44) | $ (0.60) | $ (1.55) | $ (3.70) |
Potentially dilutive securities excluded as anti-dilutive | 9,334,000 | 8,490,000 | 9,334,000 | 8,490,000 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 3 |
Business Segments - Revenues (D
Business Segments - Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | $ 357,885 | $ 207,141 | $ 890,588 | $ 903,448 | |
Contract Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 157,925 | 115,054 | 433,158 | 553,552 | |
Pressure Pumping | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 152,634 | 71,973 | 340,464 | 256,613 | |
Directional Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 31,728 | 10,271 | 76,267 | 56,498 | |
Operating Segments | Contract Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 158,154 | 115,105 | 434,080 | 554,421 | |
Operating Segments | Pressure Pumping | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 152,634 | 71,973 | 340,464 | 256,613 | |
Operating Segments | Directional Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 31,728 | 10,271 | 76,267 | 56,498 | |
Other Operations | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | [1] | 20,744 | 11,756 | 53,561 | 46,061 |
Intersegment Elimination | Contract Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | [2] | (229) | (51) | (922) | (869) |
Intersegment Elimination | Other Operations | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | [2] | $ (5,146) | $ (1,913) | $ (12,862) | $ (9,276) |
[1] | Other operations includes our oilfi eld rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests. | ||||
[2] | I ntercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations . These revenues are generally based on estimated external selling prices and are eliminated during consolidation. |
Business Segments - Income (Los
Business Segments - Income (Loss) Before Income Taxes (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | $ (90,009,000) | $ (114,566,000) | $ (316,946,000) | $ (768,060,000) |
Credit loss expense | 0 | 0 | 0 | (5,606,000) |
Interest income | 37,000 | 238,000 | 196,000 | 1,229,000 |
Interest expense | (10,683,000) | (11,288,000) | (31,396,000) | (33,496,000) |
Other | 14,000 | 512,000 | 840,000 | 682,000 |
Loss before income taxes | (100,641,000) | (125,104,000) | (347,306,000) | (799,645,000) |
Corporate | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | (18,489,000) | (20,163,000) | (57,040,000) | (75,145,000) |
Operating Segments | Contract Drilling | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | (51,830,000) | (47,214,000) | (158,680,000) | (481,974,000) |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | (13,774,000) | (30,856,000) | (77,434,000) | (134,896,000) |
Operating Segments | Directional Drilling | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | (4,581,000) | (9,912,000) | (14,614,000) | (34,892,000) |
Other Operations | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | $ (1,335,000) | $ (6,421,000) | $ (9,178,000) | $ (35,547,000) |
Business Segments - Depreciatio
Business Segments - Depreciation, Depletion, Amortization and Impairment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | $ 141,065 | $ 157,319 | $ 437,984 | $ 517,201 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | 1,429 | 1,488 | 4,423 | 4,987 |
Operating Segments | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, amortization and impairment | 97,160 | 102,275 | 297,426 | 328,843 |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, amortization and impairment | 29,838 | 37,104 | 98,963 | 118,586 |
Operating Segments | Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 6,772 | 9,600 | 19,863 | 29,698 |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | $ 5,866 | $ 6,852 | $ 17,309 | $ 35,087 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 34,264 | $ 13,442 | $ 90,837 | $ 135,043 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 434 | 73 | 1,053 | 1,377 |
Operating Segments | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 21,239 | 9,502 | 56,708 | 101,448 |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 6,468 | 1,653 | 19,457 | 17,880 |
Operating Segments | Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 3,290 | 510 | 4,613 | 4,562 |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 2,833 | $ 1,704 | $ 9,006 | $ 9,776 |
Business Segments - Identifiabl
Business Segments - Identifiable Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | $ 3,017,463 | $ 3,299,069 | |
Corporate | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | [1] | 252,510 | 300,566 |
Operating Segments | Contract Drilling | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 2,099,859 | 2,315,318 | |
Operating Segments | Pressure Pumping | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 474,013 | 486,702 | |
Operating Segments | Directional Drilling | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 105,368 | 107,807 | |
Other Operations | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | $ 85,713 | $ 88,676 | |
[1] | Corporate assets primarily include cash on hand and certain property and equipment. |
Estimated Fair Value of Outstan
Estimated Fair Value of Outstanding Debt Balances (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 908,755 | $ 908,755 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 923,810 | 840,579 |
Term Loan Agreement | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 50,000 | 50,000 |
Term Loan Agreement | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 50,000 | 50,000 |
3.95% Senior Notes Due 2028 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 509,505 | 509,505 |
3.95% Senior Notes Due 2028 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 513,367 | 471,019 |
5.15% Senior Notes Due 2029 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 349,250 | 349,250 |
5.15% Senior Notes Due 2029 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 360,443 | $ 319,560 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Nov. 15, 2019 | Jan. 19, 2018 | |
3.95% Senior Notes Due 2028 | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt interest rate | 3.95% | 3.95% | 3.95% | |
Current market rates used in measuring fair value | 3.81% | 5.24% | ||
5.15% Senior Notes Due 2029 | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt interest rate | 5.15% | 5.15% | 5.15% | |
Current market rates used in measuring fair value | 4.67% | 6.42% |
Restructuring Expenses - Additi
Restructuring Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | $ 38,300 | $ 38,338 | |||
Contract Termination | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring and related cost incurred | 5,300 | ||||
Restructuring of contractual future payments | $ 14,000 | $ 14,000 |
Restructuring Expenses - Restru
Restructuring Expenses - Restructuring Expenses by Reportable Segment (Detail) - Operating Segments $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | $ 6,500 |
Contract termination costs | 20,373 |
Other exit costs | 1,544 |
ROU asset abandonments | 9,921 |
Total | 38,338 |
Contract Drilling | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 1,821 |
Other exit costs | 523 |
ROU asset abandonments | 86 |
Total | 2,430 |
Pressure Pumping | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 3,460 |
Contract termination costs | 20,373 |
Other exit costs | 194 |
ROU asset abandonments | 7,304 |
Total | 31,331 |
Directional Drilling | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 503 |
Other exit costs | 827 |
ROU asset abandonments | 1,845 |
Total | 3,175 |
Other Operations | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 501 |
Total | 501 |
Corporate | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 215 |
ROU asset abandonments | 686 |
Total | $ 901 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - Pioneer Energy Services Corp. shares in Millions, $ in Millions | Oct. 01, 2021USD ($)shares |
Subsequent Event [Line Items] | |
Aggregate consideration of common stock | shares | 26.3 |
Payments To Acquire Businesses Gross | $ | $ 30 |