Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | Patterson-UTI Energy, Inc. | ||
Trading Symbol | PTEN | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Entity Central Index Key | 0000889900 | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 215,265,785 | ||
Entity Public Float | $ 1.8 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
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 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Houston, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 117,524 | $ 224,915 |
Accounts receivable, net of allowance for credit losses of $8,493 and $10,842 at December 31, 2021 and 2020, respectively | 356,083 | 160,214 |
Federal and state income taxes receivable | 67 | 4,428 |
Inventory | 42,359 | 33,085 |
Other | 67,620 | 55,314 |
Total current assets | 583,653 | 477,956 |
Property and equipment, net | 2,331,755 | 2,761,041 |
Right of use asset | 19,024 | 16,850 |
Intangible assets | 7,537 | 30,087 |
Deposits on equipment purchases | 849 | 1,716 |
Other | 11,055 | 11,419 |
Deferred Tax Assets, Net | 3,975 | 0 |
Total assets | 2,957,848 | 3,299,069 |
Current liabilities: | ||
Accounts payable | 190,219 | 91,023 |
Federal and state income taxes payable | 232 | 0 |
Accrued liabilities | 238,511 | 175,603 |
Lease liability | 6,891 | 7,096 |
Total current liabilities | 435,853 | 273,722 |
Long-term lease liability | 18,108 | 19,118 |
Long-term debt, net of debt discount and issuance costs of $6,432 and $7,271 at December 31, 2021 and 2020, respectively | 852,323 | 901,484 |
Deferred tax liabilities, net | 29,234 | 77,676 |
Other | 12,843 | 11,010 |
Total liabilities | 1,348,361 | 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 299,268,967 and 271,028,688 issued and 215,139,972 and 187,626,366 outstanding at December 31, 2021 and 2020, respectively | 2,993 | 2,710 |
Additional paid-in capital | 3,171,536 | 2,902,236 |
Retained earnings | (198,316) | 472,014 |
Accumulated other comprehensive income | 5,915 | 5,412 |
Treasury stock, at cost, 84,128,995 shares and 83,402,322 shares at December 31, 2021 and 2020, respectively | (1,372,641) | (1,366,313) |
Total stockholders’ equity | 1,609,487 | 2,016,059 |
Total liabilities and stockholders’ equity | $ 2,957,848 | $ 3,299,069 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 8,493 | $ 10,842 |
Long-term debt, debt discount and issuance costs | $ 6,432 | $ 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 | 299,268,967 | 271,028,688 |
Common stock, outstanding | 215,139,972 | 187,626,366 |
Treasury stock, shares | 84,128,995 | 83,402,322 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenues: | |||
Total operating revenues | $ 1,357,081 | $ 1,124,249 | $ 2,470,685 |
Operating costs and expenses: | |||
Depreciation, depletion, amortization and impairment | 849,178 | 670,910 | 1,003,873 |
Impairment of goodwill | 0 | 395,060 | 17,800 |
Selling, general and administrative | 92,382 | 97,611 | 133,513 |
Credit loss expense | (1,500) | 5,606 | 5,683 |
Merger and integration expenses | 12,060 | 0 | 0 |
Restructuring expenses | 0 | 38,338 | 0 |
Other operating expenses (income), net | 763 | 7,059 | (2,305) |
Total operating costs and expenses | 2,034,831 | 2,016,507 | 2,932,261 |
Operating loss | (677,750) | (892,258) | (461,576) |
Other income (expense): | |||
Interest income | 222 | 1,254 | 6,013 |
Interest expense, net of amount capitalized | (41,978) | (40,770) | (75,204) |
Other income (expense) | (275) | 756 | 389 |
Total other expense | (42,031) | (38,760) | (68,802) |
Loss from continuing operations before income taxes | (719,781) | (931,018) | (530,378) |
Income tax benefit | (62,702) | (127,326) | (104,675) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent, Total | (657,079) | (803,692) | (425,703) |
Income from discontinued operations, net of tax | 2,534 | 0 | 0 |
Net loss | $ (654,545) | $ (803,692) | $ (425,703) |
Net loss per common share - basic: | |||
Continuing Operations | $ (3.37) | $ (4.27) | $ (2.10) |
Discontinued operations | 0.01 | ||
Basic net loss per common share | (3.36) | (4.27) | (2.10) |
Net loss per common share - diluted: | |||
Continuing Operations | (3.37) | (4.27) | (2.10) |
Discontinued operations | 0.01 | ||
Net loss - diluted | (3.36) | (4.27) | (2.10) |
Net loss per common share: | |||
Basic | (3.36) | (4.27) | (2.10) |
Diluted net loss per common share | $ (3.36) | $ (4.27) | $ (2.10) |
Weighted average number of common shares outstanding: | |||
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 195,021 | 188,013 | 203,039 |
Diluted | 195,021 | 188,013 | 203,039 |
Contract Drilling | |||
Operating revenues: | |||
Total operating revenues | $ 664,030 | $ 669,126 | $ 1,308,350 |
Operating costs and expenses: | |||
Operating costs and expenses | 463,456 | 380,822 | 785,355 |
Pressure Pumping | |||
Operating revenues: | |||
Total operating revenues | 523,756 | 336,111 | 868,694 |
Operating costs and expenses: | |||
Operating costs and expenses | 475,953 | 310,261 | 724,788 |
Directional Drilling | |||
Operating revenues: | |||
Total operating revenues | 111,481 | 73,356 | 188,786 |
Operating costs and expenses: | |||
Operating costs and expenses | 101,628 | 69,050 | 178,645 |
Other | |||
Operating revenues: | |||
Total operating revenues | 57,814 | 45,656 | 104,855 |
Operating costs and expenses: | |||
Operating costs and expenses | $ 40,911 | $ 41,790 | $ 84,909 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (654,545) | $ (803,692) | $ (425,703) |
Other comprehensive income (loss), net of taxes of $0 for 2021, $0 for 2020 and $0 for 2019: | |||
Foreign currency translation adjustment | 503 | (66) | 2,991 |
Total comprehensive income (loss) | $ (654,042) | $ (803,758) | $ (422,712) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Other Comprehensive Income Loss Tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2018 | $ 3,505,423 | $ 2,673 | $ 2,827,154 | $ 1,753,557 | $ 2,487 | $ (1,080,448) |
Beginning Balance (in shares) at Dec. 31, 2018 | 267,316 | |||||
Net loss | (425,703) | (425,703) | ||||
Foreign currency translation adjustment | 2,991 | (2,991) | ||||
Issuance of restricted stock | 0 | $ 2 | (2) | |||
Issuance of restricted stock (in shares) | 185 | |||||
Vesting of restricted stock units | 0 | $ 12 | (12) | |||
Vesting of restricted stock units (in shares) | 1,173 | |||||
Forfeitures of restricted stock | 0 | |||||
Forfeitures of restricted stock (in shares) | 2 | |||||
Exercise of stock options | 9,219 | $ 7 | 9,212 | |||
Exercised | 700 | |||||
Stock-based compensation | 39,328 | 39,328 | ||||
Payment of cash dividends | (32,428) | (32,428) | ||||
Dividend equivalents | (524) | (524) | ||||
Purchase of treasury stock | (264,686) | (264,686) | ||||
Ending Balance at Dec. 31, 2019 | 2,833,620 | $ 2,694 | 2,875,680 | 1,294,902 | 5,478 | (1,345,134) |
Ending Balance (in shares) at Dec. 31, 2019 | 269,372 | |||||
Net loss | (803,692) | (803,692) | ||||
Foreign currency translation adjustment | (66) | (66) | ||||
Issuance of restricted stock | $ 3 | (3) | ||||
Issuance of restricted stock (in shares) | 333 | |||||
Vesting of restricted stock units | $ 13 | (13) | ||||
Vesting of restricted stock units (in shares) | 1,324 | |||||
Stock-based compensation | 26,572 | 26,572 | ||||
Payment of cash dividends | (18,862) | (18,862) | ||||
Dividend equivalents | (334) | (334) | ||||
Purchase of treasury stock | (21,179) | (21,179) | ||||
Ending Balance at Dec. 31, 2020 | $ 2,016,059 | $ 2,710 | 2,902,236 | 472,014 | 5,412 | (1,366,313) |
Ending Balance (in shares) at Dec. 31, 2020 | 271,028,688 | 271,029 | ||||
Net loss | $ (654,545) | (654,545) | ||||
Foreign currency translation adjustment | 503 | 503 | ||||
Restricted stock issued for acquisition | 248,025 | $ 263 | 247,762 | |||
Restricted stock issued for acquisition (in shares) | 26,274 | |||||
Issuance of restricted stock | $ 6 | (6) | ||||
Issuance of restricted stock (in shares) | 621 | |||||
Vesting of restricted stock units | $ 0 | $ 14 | (14) | |||
Vesting of restricted stock units (in shares) | 1,345 | |||||
Exercised | 0 | |||||
Stock-based compensation | $ 21,558 | 21,558 | ||||
Payment of cash dividends | (15,605) | (15,605) | ||||
Dividend equivalents | (180) | (180) | ||||
Purchase of treasury stock | (6,328) | (6,328) | ||||
Ending Balance at Dec. 31, 2021 | $ 1,609,487 | $ 2,993 | $ 3,171,536 | $ (198,316) | $ 5,915 | $ (1,372,641) |
Ending Balance (in shares) at Dec. 31, 2021 | 299,268,967 | 299,269 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (654,545) | $ (803,692) | $ (425,703) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation, depletion, amortization and impairment | 849,178 | 670,910 | 1,003,873 |
Impairment of goodwill | 0 | 395,060 | 17,800 |
Dry holes and abandonments | 178 | 1,285 | 109 |
Deferred income tax benefit | (62,980) | (125,283) | (103,202) |
Stock-based compensation expense | 21,558 | 26,572 | 39,328 |
Net gain on asset disposals | (1,426) | (3,079) | (13,904) |
Net gain on insurance reimbursement | 0 | (4,172) | 0 |
Write-down of capacity reservation contract | 0 | 9,207 | 12,673 |
Credit loss expense | (1,500) | 5,606 | 5,683 |
Restructuring expenses, non-cash | 0 | 25,067 | |
(Gain) loss on early debt extinguishment | 0 | (3,596) | 24,023 |
Amortization of debt discount and issuance costs | 839 | 912 | 937 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (147,356) | 173,862 | 213,588 |
Income taxes receivable/payable | 4,516 | 1,635 | (3,353) |
Inventory and other assets | (5,850) | 27,192 | 29,394 |
Accounts payable | 50,941 | (46,576) | (77,281) |
Accrued liabilities | 50,271 | (61,266) | (18,623) |
Other liabilities | (7,812) | (10,786) | (9,139) |
Net cash used in operating activities of discontinued operations | (516) | ||
Net cash provided by operating activities | 95,496 | 278,858 | 696,203 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (29,358) | 0 | (13) |
Purchases of property and equipment | (166,320) | (145,481) | (347,512) |
Proceeds from disposal of assets and insurance claims | 23,339 | 20,929 | 45,761 |
Other | (522) | (424) | 0 |
Net cash provided by investing activities of discontinued operations | 41,267 | ||
Net cash used in investing activities | (131,594) | (124,976) | (301,764) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (6,328) | (21,179) | (255,467) |
Dividends paid | (15,605) | (18,862) | (32,428) |
Proceeds from long-term debt | 0 | 0 | 496,969 |
Repayment of long-term debt | (50,000) | (62,525) | (673,443) |
Debt issuance costs | 0 | (584) | (852) |
Net cash used in financing activities | (71,933) | (103,150) | (465,221) |
Effect of foreign exchange rate changes on cash | 640 | (2) | (62) |
Net increase (decrease) in cash and cash equivalents | (107,391) | 50,730 | (70,844) |
Cash and cash equivalents at beginning of year | 224,915 | 174,185 | 245,029 |
Cash and cash equivalents at end of year | 117,524 | 224,915 | 174,185 |
Net cash (paid) received during the year for: | |||
Interest, net of capitalized interest of $260 in 2021, $431 in 2020 and $732 in 2019 | (40,464) | (43,368) | (76,870) |
Income taxes | 4,196 | 3,709 | (1,452) |
Non-cash investing and financing activities: | |||
Net increase (decrease) in payables for purchases of property and equipment | 31,393 | 30,241 | 40,857 |
Issuance of common stock for business acquisitions | 248,025 | 0 | 0 |
Net decrease in deposits on equipment purchases | 867 | 6,350 | 3,974 |
Cashless exercise of stock options | $ 0 | $ 0 | $ 9,219 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Cash Flows [Abstract] | |||
Interest expense, capitalized interest | $ 260 | $ 431 | $ 732 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies A description of the business and basis of presentation follows: Description of business — Patterson-UTI Energy, Inc., through its wholly-owned subsidiaries (collectively referred to herein as “we,” “us,” “our,” “ours” and like terms), is a Houston, Texas-based oilfield services company that primarily owns and operates in the United States one of the largest fleets of land-based drilling rigs and a large fleet of pressure pumping equipment. Our contract drilling business operates in the continental United States and internationally in Colombia and, from time to time, we pursue contract drilling opportunities in other select markets. Our pressure pumping business operates primarily in Texas and the Appalachian region. We also provide a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States, and we provide services that improve the statistical accuracy of directional and horizontal wellbores. We have other operations through which we provide oilfield rental tools in select markets in the United States. We also service equipment for drilling contractors, and we provide electrical controls and automation to the energy, marine and mining industries, in North America and other select markets. In addition, we own and invest, as a non-operating, working interest owner, in oil and natural gas assets that are primarily located in Texas and New Mexico. In the fourth quarter of 2021, we completed the acquisition of Pioneer Energy Services Corp. (“Pioneer” ). Through the Pioneer acquisition, we acquired Pioneer’s 100 % pad-capable drilling rig fleet consisting of 17 AC-powered 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. The well servicing rigs and wireline services units, as discussed below, were subsequently divested. 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, see Note 2. On December 31, 2021, we completed the sale of the previously acquired well servicing rig business and wireline business (collectively, “ Pioneer Production Services”), to Clearwell Dynamics, LLC (“Clearwell”). The sale price was $ 43.0 million in cash consideration, subject to customary purchase price adjustments at closing for cash and working capital. The results of operations of these businesses have been presented as a discontinued operation in these consolidated financial statements, s ee Note 2. In the second quarter of 2020, we closed our Canadian drilling operations in response to our longer-term outlook for the western Canadian market. As a result of the closure, we recorded an impairment of $ 8.3 million. Basis of presentation — The consolidated financial statements include the accounts of Patterson-UTI and its wholly-owned subsidiaries. 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. Certain prior year amounts have been reclassified to conform to current year presentation. The U.S. dollar is the functional currency for all of our operations except for our Canadian operations, which used 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. A summary of the significant accounting policies follows: Management estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates . Revenue recognition — Revenues from our contract drilling, pressure pumping, directional drilling, oilfield rentals, equipment servicing and electrical control and automation activities are recognized as services are performed. All of the wells we drilled in 2021, 2020 and 2019 were drilled under daywork contracts. Revenue from sales of products are recognized upon customer acceptance. Revenue is presented net of any sales tax charged to the customer that we are required to remit to local or state governmental taxing authorities. 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. Leases — We have operating leases for operating locations, corporate offices and certain operating equipment. As of December 31, 2021, we did not have any finance leases. Accounts receivable — Trade accounts receivable are recorded at the invoiced amount. The allowance for credit losses represents our estimate of the amount of probable credit losses existing in our accounts receivable. We review the adequacy of our allowance for credit losses at least quarterly. Significant individual accounts receivable balances and balances which have been outstanding greater than 90 days are reviewed individually for collectability. Account balances, when determined to be uncollectible, are charged against the allowance. Inventories — Inventories consist primarily of sand and other products to be used in conjunction with our pressure pumping activities, materials used in our directional drilling and equipment servicing business and spare parts for our Colombia contract drilling business. Such inventories are stated at the lower of cost or net realizable value, with cost determined using the average cost method. Other current assets — Other current assets includes reimbursement from our workers compensation insurance carrier for claims in excess of our deductible in the amount of $ 29.9 million and $ 36.1 million at December 31, 2021 and 2020 , respectively. Property and equipment — Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives. The method of depreciation does not change whenever equipment becomes idle. The estimated useful lives, in years, are shown below: Useful Lives Equipment 1.25 - 15 Buildings 15 - 20 Other 3 - 12 Long-lived assets, including property and equipment, are evaluated for impairment when certain triggering events or changes in circumstances indicate that the carrying values may not be recoverable over their estimated remaining useful life. Maintenance and repairs — Maintenance and repairs are charged to expense when incurred. Renewals and betterments which extend the life or improve existing property and equipment are capitalized. Disposals — Upon disposition of property and equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statement of operations. Oil and natural gas properties — Working interests in oil and natural gas properties are accounted for using the successful efforts method of accounting. Under the successful efforts method of accounting, exploration costs which result in the discovery of oil and natural gas reserves and all development costs are capitalized to the appropriate well. Exploration costs which do not result in discovering oil and natural gas reserves are charged to expense when such determination is made. Costs of exploratory wells are initially capitalized to wells-in-progress until the outcome of the drilling is known. We review wells-in-progress quarterly to determine whether sufficient progress is being made in assessing the reserves and economic viability of the respective projects. If no progress has been made in assessing the reserves and economic viability of a project after one year following the completion of drilling, we consider the well costs to be impaired and recognize the costs as expense. Geological and geophysical costs, including seismic costs, and costs to carry and retain undeveloped properties are charged to expense when incurred. The capitalized costs of both developmental and successful exploratory type wells, consisting of lease and well equipment and intangible development costs, are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved developed oil and natural gas reserves for each respective field. Oil and natural gas leasehold acquisition costs are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved oil and natural gas reserves for each respective field. We review our proved oil and natural gas properties for impairment whenever a triggering event occurs, such as downward revisions in reserve estimates or decreases in expected future oil and natural gas prices. Proved properties are grouped by field and undiscounted cash flow estimates are prepared based on management’s expectation of future pricing over the lives of the respective fields. These cash flow estimates are reviewed by an independent petroleum engineer. If the net book value of a field exceeds our undiscounted cash flow estimate, impairment expense is measured and recognized as the difference between net book value and fair value. The fair value estimates used in measuring impairment are based on internally developed unobservable inputs including reserve volumes and future production, pricing and operating costs (Level 3 inputs in the fair value hierarchy of fair value accounting). We review unproved oil and natural gas properties quarterly to assess potential impairment. Our impairment assessment is made on a lease-by-lease basis and considers factors such as management’s intent to drill, lease terms and abandonment of an area. If an unproved property is determined to be impaired, the related property costs are expensed. Impairment expense related to oil and natural gas properties of approximately $ 1.3 million, $ 11.2 million and $ 2.2 million was recorded for the years ended December 31, 2021, 2020 and 2019, respectively. Income taxes — The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. If applicable, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. Our policy is to account for interest and penalties with respect to income taxes as operating expenses. Stock-based compensation — We recognize the cost of share-based payments under the fair-value-based method. Under this method, compensation cost related to share-based payments is measured based on the estimated fair value of the awards at the date of grant, net of estimated forfeitures. This expense is recognized over the expected life of the awards, see Note 12. As share-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Statement of cash flows — For purposes of reporting cash flows, cash and cash equivalents include cash on deposit and money market funds. 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 was 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 4. 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. The new standard was effective for fiscal years beginning after December 15, 2019, including all interim periods within those years. 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. The new standard was effective for fiscal years beginning after December 15, 2019, including all interim periods within those years. 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 were 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. In October 2 021, the FASB issued an accounting standards update , which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The amendments should be applied prospectively to acquisitions occurring on or after the effective date. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2022, with early adoption permitted. We plan to adopt this new guidance on January 1, 2023, and we do not expect this new guidance will have a material impact on our consolidated financial statements. During the third quarter of 2019, we identified and recorded out-of-period adjustments primarily related to the accounting for inventory in our directional drilling segment. We concluded that these adjustments were not material to the consolidated financial statements for any of the current or prior periods presented. The net adjustment is reflected as a $ 6.6 million increase to “Loss before income taxes” in the consolidated statements of operations for the year ended December 31, 2019. |
Acquisitions and Discontinued O
Acquisitions and Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions And Discontinued Operations [Abstract] | |
Acquisitions and Discontinued Operations | 2. Acquisitions and Discontinued Operations Pioneer Energy Services Corp. On October 1, 2021, we completed the acquisition of Pioneer by acquiring 100 % of its equity interests . 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 our common stock of $ 9.44 on October 1, 2021, valued the transaction at approximately $ 278 million. 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. The acquisition has been accounted for as a business combination using the acquisition method. Under the acquisition method of accounting, the fair value of the consideration transferred is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date. The total fair value of the consideration transferred was determined as follows (in thousands, except stock price): Shares of our common stock issued to Pioneer shareholders 26,274 Our common stock price on October 1, 2021 $ 9.44 Fair value of common stock issued $ 248,025 Plus cash consideration $ 30,007 Total fair value of consideration transferred $ 278,032 A discounted cash flow model was used by a third-party specialist in determining the fair value of the property and equipment and intangible assets. We applied significant judgement in estimating the fair value of assets acquired and liabilities assumed, which involved the use of significant estimates and assumptions with respect to market day rates, direct operating costs, rig utilization percentages, expectations regarding the amount of future capital and operating costs, and discount rates. Certain data necessary to complete the purchase price allocation is not yet available, including final tax returns that provide the underlying tax basis of Pioneer's assets and liabilities. We expect to complete the purchase price allocation during the 12-month period following the acquisition date. Identifiable assets acquired Cash and cash equivalents $ 649 Accounts receivable 44,832 Inventory 8,513 Held for sale assets 73,649 Other current assets 5,272 Property and equipment 217,536 Other long-term assets 9,698 Intangible assets 907 Total identifiable assets acquired 361,056 Liabilities assumed Accounts payable and accrued liabilities 30,391 Held for sale liabilities 32,160 Deferred income taxes 15,543 Other long-term liabilities 4,930 Total liabilities assumed 83,024 Total net assets acquired $ 278,032 Approximately $ 41.5 million of revenues and $ 30.5 million of direct operating expenses attributed to the Pioneer acquisition are included in the consolidated statements of operations for the period from the closing date on October 1, 2021 through December 31, 2021, excluding the acquired well servicing rig business and the wireline businesses that have been presented as a discontinued operation in the consolidated statements of operations. Revenues and direct operating expenses for our discontinued operations are presented below. A portion of the fair value consideration transferred has been provisionally assigned to identifiable intangible assets as follows: Fair Value Weighted Average Useful Life (in thousands) (in years) Assets Trade name $ 907 5.00 Pro Forma The results of Pioneer’s operations since the Pioneer merger date of October 1, 2021 are included in our consolidated statements of operations. The following pro forma condensed combined financial information was derived from our and Pioneer's historical financial statements, excluding the well servicing rig business and wireline business that were disposed on December 31, 2021, and gives effect to the acquisition as if it had occurred on January 1, 2020. The below information reflects pro forma adjustments based on available information and certain assumptions we believe are reasonable, including (i) adjustments related to the depreciation and amortization of the fair value of acquired intangibles and fixed assets, (ii) removal of the historical interest expense, loss on debt extinguishment and reorganization expenses of the acquired entities and (iv) the tax benefit of the aforementioned pro forma adjustments. The pro forma results of operations do not include any cost savings or other synergies that may result from the Pioneer acquisition. The pro forma results of operations also do not include any estimated costs that have been or will be incurred to integrate Pioneer operations. The pro forma results of operations include our merger and integration-related costs of $ 12.1 million and Pioneer's merger related costs of $ 4.6 million for the year ended December 31, 2021. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Pioneer acquisition taken place on January 1, 2020; furthermore, the financial information is not intended to be a projection of future results. The following table summarizes our selected financial information on a pro forma basis (in thousands, except per share data): 2021 2020 (Unaudited) Revenues $ 1,464,351 $ 1,255,554 Net loss $ ( 666,032 ) $ ( 809,996 ) During 2021, we incurred costs related to the Pioneer acquisition totaling $ 12.1 million, which are included in our consolidated statements of operations as “Merger and integration expenses.” Discontinued Operations On December 31, 2021, we completed the sale of the previously acquired well servicing rig business and wireline business (collectively, “ Pioneer Production Services ” ), to Clearwell. The sale price was $ 43.0 million in cash consideration, subject to customary purchase price adjustments at closing for cash and working capital. The results of operations of these businesses have been presented as a discontinued operation in these consolidated financial statements. Summarized operating results from discontinued operations that are included in our consolidated statements of operations for the year ended December 31, 2021 are shown below (in thousands): 2021 Operating revenues: Wireline revenue $ 9,868 Well servicing revenue 19,652 Total operating revenues 29,520 Operating costs and expenses: Wireline 10,465 Well servicing 16,585 Total operating costs and expenses 27,050 Operating income 2,470 Total other income (expense) 64 Income from discontinued operations before income taxes 2,534 Income tax benefit — Income from discontinued operations, net of tax $ 2,534 In connection with the sale of our Pioneer Production Services business, we entered into a transition services agreement with Clearwell, pursuant to which we agreed to provide each other certain administrative and operational services on an interim, transitional basis through June 30, 2022. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 3. 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, see Note 17. 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 our 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 ASC Topic 606, and therefore, is reported under 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. Lease income recognized during the years ended December 31, 2021, 2020 and 2019 was not material. Our disaggregated revenue recognized from contracts with customers is included in Note 17. 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 $ 352 million and $ 158 million as of December 31, 2021 and 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 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 year ended December 31, 2021 , no such payments were amortized and recorded in drilling revenue. During the year ended December 31, 2020, approximately $ 0.1 million was amortized and recorded in drilling revenue. Total contract liability balances were $ 60.3 million and $ 0.6 million as of December 31, 2021 and December 31, 2020, respectively. During the year ended December 31, 2021, contract liabilities in creased by $ 59.7 million primarily due to customer payments. The majority of the contract liabilities balance is expected to be recognized in 2022. The increase in contract liability balances are included in “Accrued liabilities” in the consolidated balance sheets. Contract Costs Costs incurred for newly constructed rigs 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. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Credit Losses | 4. 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 introduced 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 utilize 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 throughout the remainder of 2020 and in 2021. During 2021, we reversed $ 1.5 million of our credit loss provision related to certain customers who had previously experienced a deterioration in credit quality. Since initially recording loss provisions for these receivables, we have collected portions of the accounts that were deemed uncollectible. 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. The allowance for credit losses related to accounts receivable as of December 31, 2020 and 2021, and changes for the periods ended December 31, 2020 and 2021 are as follows (in thousands): Balance at January 1, 2020 $ 6,516 Provision for expected credit losses 5,606 Write-offs ( 1,280 ) Balance at December 31, 2020 10,842 Provision for expected credit losses ( 1,500 ) Write-offs ( 849 ) Balance at December 31, 2021 $ 8,493 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory consisted of the following at December 31, 2021 and 2020 (in thousands): 2021 2020 Finished goods $ 515 $ 600 Work-in-process 882 802 Raw materials and supplies 40,962 31,683 Inventory $ 42,359 $ 33,085 We maintain certain surplus quantities of spare parts that serve as backup components and maintenance materials for our directional drilling and Colombia contract drilling operations. In 2021, advances in technologies rendered certain directional drilling equipment, and spare parts used to service that equipment, obsolete. Based on our assessment of limited alternative uses or active markets to recapture costs, we recorded a write-down of $ 4.0 million. The write-down is recorded in "Operating costs and expenses - Directional drilling" in the consolidated statements of operations. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following at December 31, 2021 and 2020 (in thousands): 2021 2020 Equipment $ 7,742,101 $ 7,647,451 Oil and natural gas properties 229,403 222,738 Buildings 182,280 193,503 Land 24,562 25,781 Total property and equipment 8,178,346 8,089,473 Less accumulated depreciation, depletion, amortization and impairment ( 5,846,591 ) ( 5,328,432 ) Property and equipment, net $ 2,331,755 $ 2,761,041 Depreciation, depletion, amortization and impairment — The following table summarizes depreciation, depletion, amortization and impairment expense related to property and equipment, intangible assets and liabilities for 2021, 2020 and 2019 (in thousands): 2021 2020 2019 Depreciation and impairment expense $ 818,999 $ 644,943 $ 974,206 Amortization expense 24,606 19,281 17,722 Depletion expense 5,573 6,686 11,945 Total $ 849,178 $ 670,910 $ 1,003,873 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 inactive rigs 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 abandoned. In the fourth quarter of 2021, we identified 43 legacy non-super-spec rigs and equipment to be abandoned. Based on the strong customer preference across the industry for super-spec drilling rigs, we believed the 43 rigs that were abandoned had limited commercial opportunity. We recorded a $ 220 million charge related to this abandonment in the fourth quarter of 2021 . In the second quarter of 2020, we recorded an impairment of $ 8.3 million related to the closing of our Canadian drilling operations. In 2019, we identified 36 legacy non-APEX ® rigs and related equipment that were abandoned. Based on the strong customer preference across the industry for super-spec drilling rigs, we believed the 36 rigs that were abandoned had limited commercial opportunity. We recorded a $ 173 million charge related to this abandonment. We also periodically evaluate our pressure pumping assets for marketability based on the condition of inactive equipment, expenditures that would be necessary to bring the equipment to working condition and the expected demand for such equipment. The components of equipment that will no longer be marketed are evaluated, and those components with continuing utility will be used as parts to support active equipment. The remaining components of this equipment are abandoned. In the fourth quarter of 2021, we recorded a charge of $ 32.2 million related to the abandonment of approximately 0.2 million horsepower within our pressure pumping fleet. The majority of these units were frac pumps but also included pump down units. These units were abandoned due to changes in customer preferences for dual fuel, advancements in technology, and prohibitive reactivation costs . In 2019, we recorded a charge of $ 20.5 million for the write-down of pressure pumping equipment. There was no similar charge in 2020. We also periodically evaluate our directional drilling assets. In the fourth quarter of 2021, we abandoned certain directional drilling equipment totaling $ 2.5 million and recorded a charge on our developed technology intangible asset of $ 11.4 million due to advances in technology that rendered those assets, and their related spare parts inventory, obsolete. During 2019, we recorded a charge of $ 8.4 million for the write-down of directional drilling equipment. There was no similar charge in 2020. 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. 2021 Triggering Event Assessment Based on current commodity prices, our results of operations for the year ended December 31, 2021 and management’s expectations of operating results in future periods, we concluded that no triggering events occurred during the year ended December 31, 2021 with respect to our asset groups within our operating segments. Our expectations of future operating results were based on the assumption that activity levels in all of our reporting segments and our other operations will remain relatively stable or improve in response to relatively stable or increasing oil prices. 2020 Triggering Event Assessment 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 certain of our operating segments. We deemed it necessary to assess the recoverability of our contract drilling, pressure pumping, directional drilling and oilfield rentals asset groups as of March 31, 2020. We performed an analysis as required by ASC 360-10-35 to assess the recoverability of the asset groups within our contract drilling, pressure pumping, directional drilling and oilfield rentals operating segments as of March 31, 2020. With respect to these asset groups, future cash flows were estimated over the expected remaining life of the assets, and we determined that, on an undiscounted basis, expected cash flows exceeded the carrying value of the asset groups, and no impairment was indicated. Expected cash flows, on an undiscounted basis, exceeded the carrying values of the asset groups within the contract drilling, pressure pumping, directional drilling and oilfield rentals operating segments by approximately 15 %, 22 %, 3 % and 9 %, respectively. For the assessment performed in the first quarter of 2020, the expected cash flows for our asset groups i ncluded revenue and operating expense growth rates. Also, the expected cash flows for the contract drilling, pressure pumping, directional drilling and oilfield rentals asset groups were based on the assumption that activity levels in all four segments would generally be lower than levels experienced in the second half of 2019 and the first quarter of 2020 and would begin to recover in 2022 in response to improved oil prices. After the assessment we performed in the first quarter of 2020, we concluded that no triggering events occurred during the periods thereafter through December 31, 2020 with respect to our asset groups based on the recent results of operations leading up to that date, management’s expectations of operating results in future periods and the prevailing commodity prices at the time. 2019 Triggering Event Assessment Due to the decline in the market price of our common stock and commodity prices, our results of operations for the quarter ended September 30, 2019 and management’s expectations of operating results in future periods, we lowered our expectations with respect to future activity levels in certain of our operating segments. We deemed it necessary to assess the recoverability of our contract drilling, pressure pumping, directional drilling and oilfield rentals asset groups as of September 30, 2019. We performed an analysis as required by ASC 360-10-35 to assess the recoverability of the asset groups within our contract drilling, pressure pumping, directional drilling and oilfield rentals operating segments as of September 30, 2019. With respect to these asset groups, future cash flows were estimated over the expected remaining life of the assets, and we determined that, on an undiscounted basis, expected cash flows exceeded the carrying value of the asset groups, and no impairment was indicated. Expected cash flows, on an undiscounted basis, exceeded the carrying values of the asset groups within the contract drilling, pressure pumping, directional drilling and oilfield rentals operating segments by approximately 35 %, 54 %, 23 % and 7 %, respectively. For the assessment performed in 2019, the expected cash flows for our asset groups i ncluded revenue and operating expense growth rates . Also, the expected cash flows for the contract drilling, pressure pumping, directional drilling and oilfield rentals asset groups were based on the assumption that activity levels in all four segments would generally be lower than levels experienced in 2019 and would begin to recover in late 2020 or 2021 in response to improved oil prices. We concluded that no triggering events occurred during the quarter ended December 31, 2019 with respect to our asset groups based on the recent results of operations leading up to that date, management’s expectations of operating results in future periods and the prevailing commodity prices at the time. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 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 December 31, 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. 2020 Triggering Event Assessment 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. We had no remaining goodwill balance as of December 31, 2020. 2019 Triggering Event Assessment Due to the decline in the market price of our common stock and commodity prices leading up to September 30, 2021, our results of operations for the quarter ended September 30, 2019 and our expectations of operating results in future periods, we lowered our expectations with respect to future activity levels in certain of our operating segments. We performed a quantitative impairment assessment of our goodwill as of September 30, 2019. In completing the assessment, the fair value of each reporting unit was estimated using the income approach. The estimate of fair value for each reporting unit 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 September 30, 2019, the fair value of the contract drilling reporting unit exceeded its carrying value by approximately 13 % and we concluded that no impairment was indicated in our contract drilling reporting unit; however, impairment was indicated in our oilfield rentals and electrical controls and automation reporting units included in the other operations segment. We recognized an impairment charge of $ 17.8 million in 2019 associated with the impairment of all of the goodwill in our oilfield rentals and electrical controls and automation reporting units. In connection with our annual goodwill impairment assessment as of December 31, 2019, we determined based on an assessment of qualitative factors that it was more likely than not that the fair values of our reporting units were greater than the respective carrying amount. In making this determination, we considered the current and expected levels of commodity prices for oil and natural gas, which influence the overall level of business activity in our reporting units, as well as our 2019 operating results and forecasted operating results for the succeeding year. We also considered our overall market capitalization at December 31, 2019. Intangible Assets — In 2021, an intangible asset was recorded in our contract drilling operating segment with the acquisition of Pioneer. See Note 2 for additional information. Our intangible assets were recorded at fair value on the date of acquisition and are amortized on a straight-line basis. The following table identifies the segment and weighted average useful life of each of our intangible assets: Weighted Average Segment Useful Life (in years) Customer relationships Other operations 7.00 Developed technology Directional drilling 10.00 Internal use software Directional drilling 5.00 Trade name Contract drilling 5.00 During 2021, we achieved certain internal advancements in our directional drilling technology that have rendered obsolete certain technology acquired as part of the MS Directional acquisition. Accordingly, we recorded a charge of $ 11.4 million to abandon these developed technology intangibles and certain related internal use software. 2021 Triggering Event Assessment Based on current commodity prices, our results of operations for the year ended December 31, 2021 and management’s expectations of operating results in future periods, we concluded that no triggering events occurred during the year ended December 31, 2021. Our expectations of future operating results were based on the assumption that activity levels in all segments and our other operations will remain relatively stable or improve in response to relatively stable or increasing oil prices. 2020 Triggering Event Assessment 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 certain of our operating segments. We deemed it necessary to assess the recoverability of our contract drilling, pressure pumping, directional drilling and oilfield rentals asset groups as of March 31, 2020. The assessments of recoverability of the asset groups included the respective intangible assets, and no impairment was indicated. See Note 6 for additional information. After the assessment we performed in the first quarter of 2020, we concluded that no triggering events necessitating an impairment assessment of the intangible assets occurred throughout the remainder of 2020 . 2019 Triggering Event Assessment Due to the decline in the market price of our common stock and commodity prices in 2019, our results of operations for the quarter ended September 30, 2019 and our expectations of operating results in future periods, we lowered our expectations with respect to future activity levels in certain of our operating segments. We deemed it necessary to assess the recoverability of our contract drilling, pressure pumping, directional drilling and oilfield rentals asset groups as of September 30, 2019. The assessments of recoverability of the asset groups included the respective intangible assets, and no impairment was indicated. See Note 6 for additional information. We concluded that no triggering events necessitating an impairment assessment of the intangible assets had occurred during the quarter ended December 31, 2019. The gross carrying amount and accumulated amortization of intangible assets as of December 31, 2021 and 2020 are as follows (in thousands): 2021 2020 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 1,800 $ ( 814 ) $ 986 $ 28,000 $ ( 26,757 ) $ 1,243 Developed technology 55,772 ( 50,996 ) 4,776 55,772 ( 27,515 ) 28,257 Internal use software 1,428 ( 515 ) 913 906 ( 319 ) 587 Trade name 907 ( 45 ) 862 — — — $ 59,907 $ ( 52,370 ) $ 7,537 $ 84,678 $ ( 54,591 ) $ 30,087 Amortization and impairment expense on intangible assets of approximately $ 24.0 million, $ 19.3 million and $ 17.9 million was recorded for the years ended December 31, 2021, 2020 and 2019 , respectively, which included an $ 11.4 million impairment in 2021. The remaining amortization expense associated with finite-lived intangible assets is expected to be as follows (in thousands): Year ending December 31, 2022 $ 1,405 2023 1,405 2024 1,405 2025 1,354 2026 1,078 Thereafter 890 Total $ 7,537 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued expenses consisted of the following at December 31, 2021 and 2020 (in thousands): 2021 2020 Salaries, wages, payroll taxes and benefits $ 52,252 $ 37,627 Workers’ compensation liability 67,921 70,847 Property, sales, use and other taxes 9,673 10,666 Insurance, other than workers’ compensation 6,494 8,462 Accrued interest payable 11,226 11,325 Accrued restructuring expenses 7,884 14,310 Customer prepayment 60,282 599 Other 22,779 21,767 Accrued liabilities $ 238,511 $ 175,603 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following at December 31, 2021 and 2020 (in thousands): Effective Interest Rate December 31, 2021 December 31, 2020 Term Loan Agreement (1) $ — $ 50,000 3.95 % Senior Notes 4.03 % 509,505 509,505 5.15 % Senior Notes 5.26 % 349,250 349,250 858,755 908,755 Less deferred financing costs and discounts ( 6,432 ) ( 7,271 ) Total $ 852,323 $ 901,484 (1) The borrowings outstanding under the Term Loan Agreement maturing in June 2022 were previously classified as long-term because we had the ability and intent to repay these obligations utilizing our revolving credit facility. 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 was 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. We repaid $ 50 million of these borrowings in each of 2019 and 2020, and o n December 30, 2021, we repaid the final $ 50 million of borrowings under the Term Loan Agreement, and as a result had no remaining borrowings under the Term Loan Agreement as of December 31, 2021. Credit Agreement — On March 27, 2018 , we entered into an amended and restated credit agreement (the “Cred it 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 December 31, 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 December 31, 2021. As of December 31, 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 December 31, 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. On October 7, 2021, an additional $ 7.3 million of letters of credit were issued by Scotiabank in connection with the closing of the Pioneer acquisition. As of December 31, 2021 , we had $ 71.4 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. Series A Senior Notes and Series B Senior Notes — On October 5, 2010 , we completed the issuance and sale of $ 300 million in aggregate principal amount of our 4.97 % Series A Senior Notes due October 5, 2020 (the “Series A Notes”) in a private placement. The Series A Notes bore interest at a rate of 4.97% per annum. On September 25, 2019, we fully prepaid the Series A Notes. The total amount of the prepayment, including the applicable “make-whole” premium, was approximately $ 308 million, which represents 100 % of the principal and the “make-whole” premium to the prepayment date. On June 14, 2012 , we completed the issuance and sale of $ 300 million in aggregate principal amount of our 4.27% Series B Senior Notes due June 14, 2022 (the “Series B Notes”) in a private placement. The Series B Notes bore interest at a rate of 4.27 % per annum. On December 16, 2019, we fully prepaid the Series B Notes. The total amount of the prepayment, including the applicable “make-whole” premium, was approximately $ 315 million, which represents 100 % of the principal and the “make-whole” premium to the prepayment date. Primarily as a result of the “make-whole” premiums, we incurred an $ 8.2 million loss on early extinguishment of the Series A Notes in the three months ended September 30, 2019, and a $ 15.8 million loss on early extinguishment of the Series B Notes in the three months ended December 31, 2019, which were included in “Interest expense , net of amount capitalized” in the consolidated statements of operations. 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 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 recorded corresponding gains on the extinguishment of these amounts totaling $ 3.4 million and $ 0.2 million, respectively, net of the proportional write-off of associated deferred financing costs and original issuance discounts. These gains are included in “Interest expense, net of amount capitalized” in the consolidated statements of operations. 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 — We incurred approximately $ 0.2 million in debt issuance costs in connection with the Term Loan Agreement. We incurred approximately $ 4.6 million in debt issuance costs in connection with the Credit Agreement. We also incurred an additional $ 0.4 million in debt issuance costs in connection with our entry into Amendment No. 2. We incurred approximately $ 1.9 million in debt issuance costs in connection with the Series A Notes and approximately $ 1.6 million in debt issuance costs in connection with the Series B Notes. We incurred approximately $ 1.6 million in debt issuance costs in connection with the 2028 Notes and approximately $ 1.0 million in debt issuance costs in connection with the 2029 Notes. These costs were deferred and are being recognized as interest expense over the term of the underlying debt. 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 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 $ 1.0 million, $ 1.1 million and $ 2.0 million for the years ended December 31, 2021, 2020 and 2019 , respectively. Amortization of debt issuance costs for the year ended December 31, 2021 includes minimal debt issuance costs that were expensed as a result of the complete prepayment of our borrowings under our Term Loan Agreement. Amortization of debt issuance costs for the year ended December 31, 2020 includes $ 0.1 million of debt issuance costs that were expensed as a result of the early redemption of a portion of our 2028 Notes and our 2029 Notes as well as the partial repayment of our borrowings under our Term Loan Agreement. Amortization of debt issuance costs for the year ended December 31, 2019 includes $ 0.2 million of debt issuance costs that were expensed as a result of the Series A Notes prepayment, $ 0.4 million of debt issuance costs that were expensed as a result of the Series B Notes prepayment and approximately $ 0.1 million of debt issuance costs that were expensed as a result of the Term Loan Agreement partial repayment. Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of December 31, 2021 (in thousands): Year ending December 31, 2022 $ — 2023 — 2024 — 2025 — 2026 — Thereafter 858,755 Total $ 858,755 |
Commitments, Contingencies and
Commitments, Contingencies and Other Matters | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Matters | 10. Commitments, Contingencies and Other Matters Commitments – As of December 31, 2021 , we maintained letters of credit in the aggregate amount of $ 71.5 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 December 31, 2021 , no amounts had been drawn under the letters of credit. As of December 31, 2021 , we had commitments to purchase major equipment totaling approximately $ 99.0 million for our contract 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 remaining terms of the agreements are less than one year . I n the event the required minimum quantities are not purchased during any contract year, we could be required to make a liquidated damages payment to the respective vendor for any shortfall. In 2017, we entered into a capacity reservation agreement that required a cash deposit to increase our access to finer grades of sand for our pressure pumping business. As market prices for sand substantially decreased since 2017, we purchased lower cost sand outside of this capacity reservation contract and recorded a charge of $ 9.2 million and $ 12.7 million in the second quarters of 2020 and 2019, respectively, to revalue the deposit to its expected realizable value. There is no value assigned to the capacity reservation contract subsequent to the charge recorded in the second quarter of 2020. Contingencies – Our operations are subject to many hazards inherent in the businesses in which it operates, including inclement weather, blowouts, explosions, fires, loss of well control, motor vehicle accidents, equipment failure, pollution, exposure and reservoir damage. These hazards could cause personal injury or death, work stoppage, and serious damage to equipment and other property, as well as significant environmental and reservoir damages. These risks could expose us to substantial liability for personal injury, wrongful death, property damage, loss of oil and natural gas production, pollution and other environmental damages. An accident or other event resulting in significant environmental or property damage, or injuries or fatalities involving our employees or other persons could also trigger investigations by federal, state or local authorities. Such an accident or other event could cause us to incur substantial expenses in connection with the investigation, remediation and resolution, as well as cause lasting damage to our reputation, loss of customers and an inability to obtain insurance. We have indemnification agreements with many of our customers, and also maintain liability and other forms of insurance. In general, our contracts typically contain provisions requiring our customers to indemnify us for, among other things, reservoir and certain pollution damage. Our right to indemnification may, however, be unenforceable or limited due to negligent or willful acts or omissions by us, our subcontractors and/or suppliers. In addition, certain states, including Louisiana, New Mexico, Texas and Wyoming, have enacted statutes generally referred to as “oilfield anti-indemnity acts” expressly prohibiting certain indemnity agreements contained in or related to oilfield services agreements. Such oilfield anti-indemnity acts may restrict or void a party’s indemnification of us. Our customers and other third parties may dispute, or be unable to meet, their indemnification obligations to us due to financial, legal or other reasons. Accordingly, we may be unable to transfer these risks to our customers and other third parties by contract or indemnification agreements. Incurring a liability for which we are not fully indemnified or insured could have a material adverse effect on our business, financial condition, cash flows and results of operations. We maintain insurance coverage of types and amounts that we believe to be customary in the industry, but are not fully insured against all risks, either because insurance is not available or because of the high premium costs. The insurance coverage that we maintain includes insurance for fire, windstorm and other risks of physical loss to our equipment and certain other assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. We cannot assure, however, that any insurance obtained will be adequate to cover any losses or liabilities, or that this insurance will continue to be available, or available on terms that are acceptable to us. While we carry insurance to cover physical damage to, or loss of, a substantial portion of our equipment and certain other assets, such insurance does not cover the full replacement cost of such equipment or other assets. We have also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies. For example, in the United States we generally maintain a $ 1.5 million per occurrence deductible on our workers’ compensation insurance coverage, a $ 1.0 million per occurrence deductible on our equipment insurance coverage, a $ 10.0 million per occurrence deductible on our general liability coverage, a $ 2.0 million per occurrence deductible on our primary automobile liability insurance coverage, and a $ 5.0 million per occurrence deductible on our excess automobile liability insurance coverage. We also self-insure a number of other risks, including loss of earnings and business interruption and most cybersecurity risks, and do not carry a significant amount of insurance to cover risks of underground reservoir damage. 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. Other Matters — We have a Change in Control Agreement with one of our Executive Vice Presidents (the “Specified Employee”). The Change in Control Agreement generally has an initial term with automatic twelve-month renewals unless we notify the Specified Employee at least ninety days before the end of such renewal period that the term will not be extended. If a change in control occurs during the term of the agreement and the Specified Employee’s employment is terminated (i) by us other than for cause or other than automatically as a result of death, disability or retirement, or (ii) by the Specified Employee for good reason (as those terms are defined in the Change in Control Agreement), then the Specified Employee shall generally be entitled to, among other things: • a bonus payment equal to the highest bonus paid after the Change in Control Agreement was entered into (such bonus payment prorated for the portion of the fiscal year preceding the termination date); • a payment equal to 2 times the sum of (i) the highest annual salary in effect for such Specified Employee and (ii) the average of the three annual bonuses earned by the Specified Employee for the three fiscal years preceding the termination date and • continued coverage under our welfare plans for up to two years . The Change in Control Agreement provides the Specified Employee with a full gross-up payment for any excise taxes imposed on payments and benefits received under the Change in Control Agreements or otherwise, including other taxes that may be imposed as a result of the gross-up payment. We have Employment Agreements with our Chief Executive Officer, Chief Financial Officer, General Counsel and the President of our subsidiary, Patterson-UTI Drilling Company LLC (“Patterson-UTI Drilling”). Each Employment Agreement generally has an initial three-year term, subject to automatic annual renewal. The executive may terminate his employment under his Employment Agreement by providing written notice of such termination at least 30 days before the effective date of such termination. Under specified circumstances, we may terminate the executive’s employment under his Employment Agreement for Cause (as defined in the Employment Agreement) by either (i) providing written notice 10 days before the effective date of such termination and by granting at least 10 days to cure the cause for such termination or (ii) by providing written notice of such termination at least 30 days before the effective date of such termination and by granting at least 20 days to cure the cause for such termination, provided that if the matter is reasonably determined by us to not be capable of being cured, the executive may be terminated for cause on the date the written notice is delivered. The Employment Agreement also provides for, among other things, severance payments and the continuation of certain benefits following our decision to terminate the executive other than for Cause, or termination by the executive for Good Reason (as defined in each Employment Agreement). Under these provisions, if the executive’s employment is terminated by us without Cause, or the executive terminates his employment for Good Reason: • the executive will have the right to receive a lump-sum payment consisting of 3 times (in the case of the Chief Executive Officer) or 2.5 times (in the case of the Chief Financial Officer, General Counsel and President of Patterson-UTI Drilling) the sum of (i) his base salary and (ii) the average annual cash bonus received by him for the three years prior to the date of termination; • the executive will have the right to receive a pro-rated lump-sum payment equal to his annual cash bonus based on actual results for the year, payable at the same time as annual cash bonuses are paid to active employees, • we will accelerate vesting of all options and restricted stock awards on the 60th day following the executive’s termination , and • we will pay the executive certain accrued obligations and certain obligations pursuant to the terms of employee benefit plans. If our decision to terminate other than for Cause or by the executive for Good Reason occurs following a Change in Control (as defined in his Employment Agreement, which for the President of Patterson-UTI Drilling includes a change in control of us or, in certain circumstances, of Patterson-UTI Drilling), the executive will generally be entitled to the same severance payments and benefits described above except that the pro-rated lump-sum payment for annual cash bonuses will be based on his highest annual cash bonus for the last three years , and the executive will be entitled to 36 months (in the case of the Chief Executive Officer) or 30 months (in the case of the Chief Financial Officer, General Counsel and President of Patterson-UTI Drilling) of subsidized benefits continuation coverage. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | 11. Stockholders’ Equity Cash Dividend — On February 9, 2022 , our Board of Directors approved a cash dividend on our common stock in the amount of $ 0.04 per share to be paid on March 17, 2022 to holders of record as of March 3, 2022 . 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. Our Board of Directors may, without advance notice, reduce or suspend our dividend in order to improve our financial flexibility and best position our company for long-term success. There can be no assurance that we will pay a dividend in the future. Share Repurchases 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 December 31, 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. We acquired shares of stock from employees during 2021, 2020 and 2019 that are accounted for as treasury stock. Certain of these shares were acquired to satisfy the exercise price and employees’ tax withholding obligations upon the exercise of stock options. The remainder of these shares were acquired to satisfy payroll withholding obligations upon the settlement of performance unit awards and the vesting of restricted stock units. These shares were acquired at fair market value. These acquisitions were made pursuant to the terms of the Patterson-UTI Energy, Inc. Amended and Restated 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”) and the Patterson-UTI Energy, Inc. 2021 Long-Term Incentive Plan (the “2021 Plan”), and not pursuant to the stock buyback program. Upon the issuance of shares for the Pioneer acquisition in October 2021, we withheld shares with respect to Pioneer employees’ tax withholding obligations. Treasury stock acquisitions during the years ended December 31, 2021, 2020 and 2019 were as follows (dollars in thousands): 2021 2020 2019 Shares Cost Shares Cost Shares Cost Treasury shares at beginning of period 83,402,322 $ 1,366,313 77,336,387 $ 1,345,134 53,701,096 $ 1,080,448 Purchases pursuant to stock buyback program — — 5,826,266 20,000 22,566,331 250,109 Acquisitions pursuant to long-term incentive plan 451,196 3,727 239,669 1,179 1,037,947 14,205 Purchases in connection with Pioneer acquisition 275,477 2,601 — — — — Other — — — — 31,013 372 Treasury shares at end of period 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 77,336,387 $ 1,345,134 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 . |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 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. Share-based awards include equity instruments in the form of stock options, restricted stock 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 June 3, 2021, our stockholders approved the 2021 Plan. No additional awards will be granted under any of our previously existing plans. 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 2014 Plan. Our share-based compensation plans at December 31, 2021 are as follows: Shares Shares Underlying Shares Authorized Awards Available Plan Name for Grant Outstanding for Grant 2021 Plan 13,467,480 2,483,250 8,288,582 2014 Plan — 4,986,734 — Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended — 1,487,500 — A summary of the 2021 Plan follows: • The Compensation Committee of the Board of Directors administers the Plan other than the awards to directors. • All employees, officers and directors are eligible for awards. • The Compensation Committee determines the vesting schedule for awards. Awards typically vest over one year for non-employee directors and three years for employees. • The Compensation Committee sets the term of awards and no option term can exceed 10 years. • The Plan provides that the total compensation paid to each non-employee director for their service as such, whether in cash or in equity awards under the 2021 Plan (based on the grant date fair value of any such awards) during a single fiscal year may not exceed $ 750,000 ; however, the foregoing limit will instead be $ 1,000,000 for any fiscal year in which the non-employee director is first appointed to the Board of Directors or any fiscal year in which the non-employee director serves as chairman or lead director. • All options granted under the 2021 Plan are granted with an exercise price equal to or greater than fair market value of our common stock at the time the option is granted. • The Plan provides for awards of incentive and non-incentive stock options, stock appreciation rights (“SARs”), restricted stock awards, other stock unit awards, performance share awards, performance unit awards and dividend equivalent rights. Options granted under the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan and 2014 Plan typically vested over one year for non-employee directors and three years for employees. All options were granted with an exercise price equal to the fair market value of the related common stock at the time of grant. 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 years ended December 31, 2021, 2020 and 2019. Stock option activity for the year ended December 31, 2021 follows: Weighted Average Shares Exercise Price Per Share Outstanding at beginning of year 4,026,150 $ 21.63 Exercised — $ — Expired ( 306,000 ) $ 30.10 Outstanding at end of year 3,720,150 $ 20.93 Exercisable at end of year 3,720,150 $ 20.93 Options outstanding and exercisable at December 31, 2021 have no intrinsic value and a weighted-average remaining contractual term of 2.45 years. Additional information with respect to options granted, vested and exercised during the years ended December 31, 2021, 2020 and 2019 follows (in thousands, except per share data): 2021 2020 2019 Weighted-average grant date fair value of stock options granted (per share) NA NA NA Aggregate grant date fair value of stock options vested during the year $ 89 $ 89 $ 543 Aggregate intrinsic value of stock options exercised $ — $ — $ — As of December 31, 2021 , no options to purchase shares were outstanding and not vested. 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 for the year ended December 31, 2021 follows: Weighted Average Time Performance Grant Date Fair Based Based Value Per Share Non-vested restricted stock units outstanding at beginning of year 2,741,548 359,315 $ 9.52 Granted 1,797,875 — $ 8.32 Vested ( 1,345,034 ) — $ 10.89 Forfeited ( 149,670 ) — $ 10.33 Non-vested restricted stock units outstanding at end of year 3,044,719 359,315 $ 8.31 As of December 31, 2021 , approximately 3.3 million non-vested restricted stock units outstanding are expected to vest. Additional information as of December 31, 2021 with respect to these non-vested restricted stock units follows (dollars in thousands): Aggregate intrinsic value $ 27,977 Weighted-average remaining vesting period 1.66 years Unrecognized compensation cost $ 17,290 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 generally 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 years 2016-2021 is set forth below: 2021 2020 2019 2018 2017 2016 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 843,000 500,500 489,800 310,700 186,198 185,000 In April 2019, 185,000 shares were issued to settle the 2016 Performance Units. In May 2020, 332,773 shares were issued to settle the 2017 Performance Units. 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 2016 Performance Performance Performance Performance Performance Performance Unit Awards 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 $ 3,854 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 set forth below (in thousands): 2021 2020 2019 2018 2017 2016 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Year ended December 31, 2021 $ 1,806 $ 275 $ 3,319 $ 667 NA NA Year ended December 31, 2020 NA $ 206 $ 3,319 $ 2,668 $ 642 NA Year ended December 31, 2019 NA NA $ 2,489 $ 2,668 $ 1,927 $ 321 As of December 31, 2021, we had unrecognized compensation cost of $ 6.6 million related to our unvested Performance Units. The weighted-average remaining vesting period for these unvested Performance Units was 1.44 years as of December 31, 2021. Dividends on Equity Awards – Non-forfeitable cash dividends are paid on restricted stock awards and dividend equivalents are paid or accrued on certain restricted stock units. These dividends are recognized as follows: • Dividends are recognized as reductions of retained earnings for the portion of restricted stock awards expected to vest. • Dividends are recognized as additional compensation cost for the portion of restricted stock awards that are not expected to vest or that ultimately do not vest. • Dividend equivalents are recognized as reductions of retained earnings for the portion of restricted stock units expected to vest. • Dividend equivalents are recognized as additional compensation cost for the portion of restricted stock units that are not expected to vest or that ultimately do not vest. 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 p erformance p eriod 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 p erformance p eriod, 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 $ 1.8 million and $ 0.6 million compensation expense associated with the Phantom Units in 2021 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 13. Leases ASC Topic 842 Leases On January 1, 2019, we adopted the new lease guidance under Topic 842, Leases , using the modified retrospective approach to each lease that existed at the date of initial application as well as leases entered into after that date. We have elected to report all leases at the beginning of the period of adoption and not restate our comparative periods. This standard does not apply to leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources, including the intangible right to explore for those natural resources and rights to use the land in which those natural resources are contained. We have entered into operating leases for operating locations, corporate offices and certain operating equipment. These leases have remaining lease terms of five months to seven years as of December 31, 2021 . Currently, we do not have any finance leases. Renewal options are included in the right-of-use asset and lease liability if it is reasonably certain that we will exercise the option, and termination options are included in the right-of-use asset and lease liability if it is not reasonably certain we will exercise the option. We have elected the short-term lease recognition practical expedient whereby right-of-use assets and lease liabilities are not recognized for leasing arrangements with an initial term of one year or less. Topic 842 requires that lessees and lessors discount lease payments at the lease commencement date using the rate implicit in the lease, if available, or the lessee’s incremental borrowing rate. We use the implicit rate when readily determinable. If the implicit rate is not readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in the determination of the present value of future lease payments. In the fourth quarter of 2019, we had entered into a sale-leaseback transaction that qualified as a sale. We sold a facility for proceeds of $ 10.2 million and concurrently entered into an operating lease agreement with the unrelated third-party for certain floors of the building for a 58 -month term. The associated gain on sale of approximately $ 0.8 million was included in “Other operating expenses (income), net” in the consolidated statements of operations. For the year ended December 31, 2020, we entered into two new facility leases and recorded an increase to the operating lease right-of-use assets and corresponding operating lease liabilities of approximately $ 1.5 million. We also extended two facilities leases and recorded an increase to the operating lease right-of-use assets and corresponding operating lease liabilities of approximately $ 0.2 million. We terminated four facility leases and three operating equipment leases and recorded a decrease to the operating lease right-of-use assets of approximately $ 0.4 million and corresponding lease liabilities of approximately $ 2.2 million. The right-of-use assets that were formally terminated were partially impaired in the second quarter of 2020 in conjunction with our restructuring plan. See Note 20 for additional information on our restructuring expenses. For the year ended December 31, 2021, we entered into one new facility lease and recorded an increase to the operating lease right-of-use asset and corresponding operating lease liability of approximately $ 0.7 million. We also acquired five facility leases as part of the Pioneer acquisition in the fourth quarter of 2021, and recorded an increase to the operating lease right-of-use assets of approximately $ 4.1 million and corresponding operating lease liabilities of approximately $ 4.3 million. We transferred one of these facility leases as part of the Clearwell sale in the fourth quarter of 2021, and recorded a decrease to the operating lease right-of-use asset and corresponding lease liability of approximately $ 0.2 million. We extended three facilities leases and recorded an increase to the operating lease right-of-use assets and corresponding lease liabilities of approximately $ 1.6 million. We terminated two facility leases and recorded a decrease to the operating lease liabilities of approximately $ 0.5 million. The right-of-use assets that were formally terminated were previously impaired in 2020 and 2019. Practical Expedients Adopted with Topic 842 We have elected to adopt the following practical expedients upon the transition date to Topic 842 on January 1, 2019: • Transitional practical expedients package: An entity may elect to apply the listed practical expedients as a package to all the leases that commenced before the effective date. The practical expedients are: a. The entity need not reassess whether any expired or existing contracts are or contain leases; b. The entity need not reassess the lease classification for expired or existing contracts; c. The entity need not reassess initial direct costs for any existing leases. • Use of portfolio approach: An entity can apply this guidance to a portfolio of leases with similar characteristics if the entity reasonably expects that the application of the leases model to the portfolio would not differ materially from the application of the lease model to the individual leases in that portfolio. This approach can also be applied to other aspects of the leases guidance for which lessees/lessors need to make judgments and estimates, such as determining the discount rate and determining and reassessing the lease term. • Lease and non-lease components: As a practical expedient, lease and non-lease components may be combined where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. Our contract drilling, pressure pumping and directional drilling contracts contain a lease component related to the underlying equipment utilized, in addition to the service component provided by our crews and expertise to operate the related equipment. We have concluded that the non-lease service of operating our equipment and providing expertise in the services provided to customers is predominant in our drilling, pressure pumping and directional drilling contracts. With the election of this practical expedient, we will continue to present a single performance obligation for these contracts under the revenue guidance in ASC 606. Lease expense consisted of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands): Year Ended Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Operating lease cost $ 4,984 $ 6,911 $ 10,944 Short-term lease expense (1) 41 2 440 Total lease expense $ 5,025 $ 6,913 $ 11,384 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. Supplemental cash flow information related to leases for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,323 $ 11,576 $ 10,033 Right of use assets obtained in exchange for lease obligations: Operating leases $ 6,413 $ 1,763 $ 10,870 Supplemental balance sheet information related to leases as of December 31, 2021 and 2020 is as follows: December 31, 2021 December 31, 2020 Weighted Average Remaining Lease Term: Operating leases 4.8 years 5.2 years Weighted Average Discount Rate: Operating leases 3.8 % 4.1 % Maturities of operating lease liabilities as of December 31, 2021 are as follows (in thousands): Year ending December 31, 2022 $ 7,662 2023 5,670 2024 4,390 2025 3,354 2026 2,691 Thereafter 3,508 Total lease payments 27,275 Less imputed interest ( 2,276 ) Total $ 24,999 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Loss before income taxes for the U.S. for years ended December 31, 2021, 2020 and 2019 are $ 721 million, $ 917 million, and $ 500 million, respectively. Income before income taxes for non-U.S. jurisdictions for the year ended December 31, 2021 is $ 0.9 million. Loss before income taxes for non-U.S. jurisdictions for years ended December 31, 2020 and 2019 are $ 14.2 million and $ 30.5 million, respectively. Components of the income tax provision applicable to federal, state and foreign income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands): 2021 2020 2019 Federal income tax benefit: Current $ — $ ( 1,977 ) $ ( 1,976 ) Deferred ( 86,878 ) ( 107,334 ) ( 90,441 ) ( 86,878 ) ( 109,311 ) ( 92,417 ) State income tax expense (benefit): Current 144 225 851 Deferred 23,028 ( 17,949 ) ( 11,593 ) 23,172 ( 17,724 ) ( 10,742 ) Foreign income tax expense (benefit): Current 134 ( 291 ) ( 348 ) Deferred 870 — ( 1,168 ) 1,004 ( 291 ) ( 1,516 ) Total income tax benefit: Current 278 ( 2,043 ) ( 1,473 ) Deferred ( 62,980 ) ( 125,283 ) ( 103,202 ) Total income tax benefit: $ ( 62,702 ) $ ( 127,326 ) $ ( 104,675 ) The difference between the statutory U.S. federal income tax rate and the effective income tax rate for the years ended December 31, 2021, 2020 and 2019 is summarized as follows: 2021 2020 2019 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of the federal income tax benefit 3.0 1.7 1.4 Goodwill impairment — ( 8.2 ) ( 0.7 ) Permanent differences ( 0.8 ) ( 0.6 ) ( 1.2 ) Valuation allowance ( 13.3 ) ( 0.2 ) ( 0.8 ) State deferred tax remeasurement ( 0.8 ) — ( 1.1 ) Other differences, net ( 0.4 ) — 1.1 Effective tax rate 8.7 % 13.7 % 19.7 % The effective tax rate decreased by approximately 5.0 % to 8.7 % for 2021 compared to 13.7 % for 2020. The difference was primarily due to nondeductible goodwill impairment charges in 2020 impacting the effective tax rate and changes in valuation allowance positions between 2020 and 2021. The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows (in thousands): 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 457,362 $ 370,875 Tax credits 4,453 4,918 Expense associated with stock-based compensation 9,364 11,252 Workers' compensation allowance 14,833 17,177 Other deferred tax asset 26,483 24,735 512,495 428,957 Less: Valuation allowance ( 189,737 ) ( 19,133 ) Total deferred tax assets 322,758 409,824 Deferred tax liabilities: Property and equipment basis difference ( 335,980 ) ( 475,025 ) Other ( 12,037 ) ( 12,475 ) Total deferred tax liabilities ( 348,017 ) ( 487,500 ) Net deferred tax liability $ ( 25,259 ) $ ( 77,676 ) 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 2021, we recorded an additional $ 170.6 million of valuation allowances against our net deferred tax assets. This primarily related to U.S. federal and state deferred tax assets, as well as valuation allowances that were recorded through the acquisition of Pioneer. For income tax purposes, we have approximately $ 1.7 billion of gross federal net operating losses, approximately $ 52.4 million of gross Canadian net operating losses, approximately $ 25.2 million of gross Colombian net operating losses and approximately $ 1.1 billion of post-apportionment state net operating losses as of December 31, 2021, before valuation allowances. The majority of federal net operating losses will expire in varying amounts, if unused, between 2031 and 2037 . Federal net operating losses generated after 2017 can be carried forward indefinitely. Canadian net operating losses will expire in varying amounts, if unused, between 2036 and 2041 . Colombian net operating losses will expire in varying amounts, if unused, between 2028 and 2033 . State net operating losses will expire in varying amounts, if unused, between 2022 and 2041 . As of December 31, 2021, we had no unrecognized tax benefits. We have established a policy to account for interest and penalties related to uncertain income tax positions as operating expenses. As of December 31, 2021, the tax years ended December 31, 2014 through December 31, 2020 are open for examination by U.S. taxing authorities. As of December 31, 2021, the tax years ended December 31, 2014 through December 31, 2020 are open for examination by Canadian taxing authorities. As of December 31, 2021, the tax years ended December 31, 2015 through December 31, 2020 are open for examination by Colombian taxing authorities. We continue to monitor income tax developments in the United States and other countries where we have legal entities. We will incorporate into our future financial statements the impacts, if any, of future regulations and additional authoritative guidance when finalized. We continue to elect permanent reinvestment of unremitted earnings in foreign jurisdictions and we intend to do so for the foreseeable future. If we were to repatriate earnings, in the form of dividends or otherwise, we may be subject to certain income and/or withholding taxes (subject to an adjustment for foreign tax credits). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share We provide a dual presentation of our net loss per common share in our 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 determined by dividing the earnings attributable to common stockholders by the weighted average number of common shares outstanding during the period. 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 restricted stock units is determined using the treasury stock method. The following table presents information necessary to calculate net loss per share for the years ended December 31, 2021, 2020 and 2019, 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): 2021 2020 2019 BASIC EPS: Net loss from continuing operations attributed to common stockholders $ ( 657,079 ) $ ( 803,692 ) $ ( 425,703 ) Net income from discontinued operations attributed to common stockholders $ 2,534 $ — $ — Net loss attributed to common stockholders $ ( 654,545 ) $ ( 803,692 ) $ ( 425,703 ) Weighted average number of common shares outstanding, excluding 195,021 188,013 203,039 Basic loss from continuing operations per common share $ ( 3.37 ) $ ( 4.27 ) $ ( 2.10 ) Basic income from discontinued operations per common share $ 0.01 $ — $ — Basic net loss per common share $ ( 3.36 ) $ ( 4.27 ) $ ( 2.10 ) DILUTED EPS: Net loss from continuing operations attributed to common stockholders $ ( 657,079 ) $ ( 803,692 ) $ ( 425,703 ) Net income from discontinued operations attributed to common stockholders $ 2,534 $ — $ — Net loss attributed to common stockholders $ ( 654,545 ) $ ( 803,692 ) $ ( 425,703 ) Weighted average number of common shares outstanding, excluding 195,021 188,013 203,039 Diluted loss from continuing operations per common share $ ( 3.37 ) $ ( 4.27 ) $ ( 2.10 ) Diluted income from discontinued operations per common share $ 0.01 $ — $ — Diluted net loss per common share $ ( 3.36 ) $ ( 4.27 ) $ ( 2.10 ) Potentially dilutive securities excluded as anti-dilutive 9,551 8,747 9,195 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 16. Employee Benefits We maintain a 401(k) plan for all eligible employees. Our operating results include expenses of approximately $ 7.6 million in 2021 , $ 7.7 million in 2020 and $ 13.2 million in 2019 for our contributions to the plan. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | 17. Business Segments At December 31, 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. We also disclose our identifiable assets for these segments, which are primarily comprised of long-lived assets. Contract Drilling — We market our contract drilling services to major and independent oil and natural gas operators. As of December 31, 2021 , we had 184 marketed land-based drilling rigs in the continental United States and eight in Colombia. Our acquisition of Pioneer in 2021 expanded our geographic footprint into Latin America with the addition of eight SCR drilling rigs in Colombia. Our revenues and direct operating costs for our Colombian operations are included as part of our contract drilling segment. For the year ended December 31, 2021, contract drilling revenue earned in Colombia was $ 15.8 million. Additionally, long-lived assets for the contract drilling segment recorded as part of our Colombian operations totaled $ 39.3 million as of December 31, 2021. Pressure Pumping — We provide pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian region. Substantially all of the revenue in the pressure pumping segment is from well stimulation services (such as hydraulic fracturing) for the completion of new wells and remedial work on existing wells. Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well. We also provide cementing services through our pressure pumping segment. Cementing is the process of inserting material between the wall of the well bore and the casing to support and stabilize the casing. Directional Drilling — We provide a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States. Substantially all of the revenue in the directional drilling segment is from directional drilling, downhole performance motors and measurement-while-drilling services, which are sold as a bundle. Major Customer — During 2021 , one customer accounted for approximately $ 216 million or 16 % of our consolidated operating revenues. These revenues in 2021 were earned in both our contract drilling and pressure pumping businesses. During 2020 and 2019 no single customer accounted for more than 10% of our consolidated operating revenues. The following tables summarize selected financial information relating to our business segments (in thousands): Year Ended December 31, 2021 2020 2019 Revenues: Contract drilling $ 667,918 $ 670,357 $ 1,309,988 Pressure pumping 523,756 336,111 868,694 Directional drilling 111,481 73,356 188,786 Other operations (1) 75,505 57,962 122,885 Elimination of intercompany revenues - Contract drilling (2) ( 3,888 ) ( 1,231 ) ( 1,638 ) Elimination of intercompany revenues - Other operations (2) ( 17,691 ) ( 12,306 ) ( 18,030 ) Total revenues $ 1,357,081 $ 1,124,249 $ 2,470,685 Income (loss) before income taxes: Contract drilling $ ( 423,029 ) $ ( 543,438 ) $ ( 151,329 ) Pressure pumping ( 118,863 ) ( 166,666 ) ( 102,701 ) Directional drilling ( 35,301 ) ( 40,612 ) ( 52,724 ) Other operations ( 9,905 ) ( 41,685 ) ( 54,725 ) Corporate ( 92,152 ) ( 94,251 ) ( 94,414 ) Credit loss expense 1,500 ( 5,606 ) ( 5,683 ) Interest income 222 1,254 6,013 Interest expense ( 41,978 ) ( 40,770 ) ( 75,204 ) Other ( 275 ) 756 389 Loss before income taxes $ ( 719,781 ) $ ( 931,018 ) $ ( 530,378 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 618,879 $ 433,771 $ 668,007 Pressure pumping 159,305 152,630 233,952 Directional drilling 40,270 36,504 52,223 Other operations 24,865 41,511 42,803 Corporate 5,859 6,494 6,888 Total depreciation, depletion, amortization and impairment $ 849,178 $ 670,910 $ 1,003,873 Capital expenditures: Contract drilling $ 109,894 $ 105,037 $ 194,416 Pressure pumping 34,676 21,678 105,803 Directional drilling 8,591 4,681 15,549 Other operations 11,638 12,378 27,132 Corporate 1,521 1,707 4,612 Total capital expenditures $ 166,320 $ 145,481 $ 347,512 Identifiable assets: Contract drilling $ 2,169,501 $ 2,315,318 $ 3,190,463 Pressure pumping 458,202 486,702 695,570 Directional drilling 87,285 107,807 164,273 Other operations 85,932 88,676 128,290 Corporate (3) 156,928 300,566 261,019 Total assets $ 2,957,848 $ 3,299,069 $ 4,439,615 (1) Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests . (2) Intercompany 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 . |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit Risk | 18. Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist primarily of demand deposits, temporary cash investments and trade receivables. We believe we have placed our demand deposits and temporary cash investments with high credit-quality financial institutions. At December 31, 2021 and 2020, our demand deposits and temporary cash investments consisted of the following (in thousands): 2021 2020 Deposits in FDIC and SIPC-insured institutions under insurance limits $ 2,043 $ 1,000 Deposits in FDIC and SIPC-insured institutions over insurance limits 125,405 227,961 Deposits in foreign banks 9,342 1,966 136,790 230,927 Less outstanding checks and other reconciling items ( 19,266 ) ( 6,012 ) Cash and cash equivalents $ 117,524 $ 224,915 Concentrations of credit risk with respect to trade receivables are primarily focused on companies involved in the exploration and development of oil and natural gas properties. The concentration is somewhat mitigated by the diversification of customers for which we provide services. As is general industry practice, we typically do not require customers to provide collateral. A $ 5.6 million provision for credit loss was recognized in 2020 in relation to accounts receivable balances that were estimated to be uncollectible . |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 19. 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 December 31, 2021 and 2020 is set forth below (in thousands): December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes $ 509,505 $ 511,652 $ 509,505 $ 471,019 5.15% Senior Notes 349,250 359,142 349,250 319,560 Term Loan Agreement — — 50,000 50,000 Total debt $ 858,755 $ 870,794 $ 908,755 $ 840,579 The fair values of the 3.95 % Senior Notes and the 5.15 % Senior Notes at December 31, 2021 and December 31, 2020 are based on quoted market prices, which are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The fair values of the 3.95% Senior Notes implied a 3.87 % market rate of interest at December 31, 2021 and the 5.24 % market rate of interest at December 31, 2020, based on their quoted market prices. The fair values of the 5.15 % Senior Notes implied a 4.72 % market rate of interest at December 31, 2021 and the 6.42 % market rate of interest at December 31, 2020, based on their quoted market prices. T he carrying value of the balance outstanding at December 31, 2020 under the Term Loan Agreement approximated its fair value as the instrument had a floating interest rate. |
Restructuring Expenses
Restructuring Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Expenses | 20. 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. T here were no restructuring charges in the comparable periods of 2021 or 2019. 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 asset abandonments related to facility and equipment right-of-use assets abandoned as a result of restructuring. The following table presents restructuring expenses by reportable segment f or the year ended December 31 , 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 Right-of-use asset abandonments 86 7,304 1,845 — 686 9,921 Total $ 2,430 $ 31,331 $ 3,175 $ 501 $ 901 $ 38,338 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | S CHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Charged to Beginning Costs and Ending Description Balance Expenses Deductions (1) Balance (In thousands) Year Ended December 31, 2021 Deducted from asset accounts: Allowance for credit losses $ 10,842 $ ( 1,500 ) $ ( 849 ) $ 8,493 Year Ended December 31, 2020 Deducted from asset accounts: Allowance for credit losses $ 6,516 $ 5,606 $ ( 1,280 ) $ 10,842 Year Ended December 31, 2019 Deducted from asset accounts: Allowance for credit losses $ 2,312 $ 5,683 $ ( 1,479 ) $ 6,516 Consists of uncollectible accounts written-off. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Management Estimates | Management estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates |
Revenue Recognition | Revenue recognition — Revenues from our contract drilling, pressure pumping, directional drilling, oilfield rentals, equipment servicing and electrical control and automation activities are recognized as services are performed. All of the wells we drilled in 2021, 2020 and 2019 were drilled under daywork contracts. Revenue from sales of products are recognized upon customer acceptance. Revenue is presented net of any sales tax charged to the customer that we are required to remit to local or state governmental taxing authorities. 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. |
Leases | Leases — We have operating leases for operating locations, corporate offices and certain operating equipment. As of December 31, 2021, we did not have any finance leases. |
Accounts Receivable | Accounts receivable — Trade accounts receivable are recorded at the invoiced amount. The allowance for credit losses represents our estimate of the amount of probable credit losses existing in our accounts receivable. We review the adequacy of our allowance for credit losses at least quarterly. Significant individual accounts receivable balances and balances which have been outstanding greater than 90 days are reviewed individually for collectability. Account balances, when determined to be uncollectible, are charged against the allowance. |
Inventories | Inventories — Inventories consist primarily of sand and other products to be used in conjunction with our pressure pumping activities, materials used in our directional drilling and equipment servicing business and spare parts for our Colombia contract drilling business. Such inventories are stated at the lower of cost or net realizable value, with cost determined using the average cost method. |
Other Current Assets | Other current assets — Other current assets includes reimbursement from our workers compensation insurance carrier for claims in excess of our deductible in the amount of $ 29.9 million and $ 36.1 million at December 31, 2021 and 2020 , respectively. |
Property and Equipment | Property and equipment — Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives. The method of depreciation does not change whenever equipment becomes idle. The estimated useful lives, in years, are shown below: Useful Lives Equipment 1.25 - 15 Buildings 15 - 20 Other 3 - 12 Long-lived assets, including property and equipment, are evaluated for impairment when certain triggering events or changes in circumstances indicate that the carrying values may not be recoverable over their estimated remaining useful life. |
Maintenance and Repairs | Maintenance and repairs — Maintenance and repairs are charged to expense when incurred. Renewals and betterments which extend the life or improve existing property and equipment are capitalized. |
Disposals | Disposals — Upon disposition of property and equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statement of operations. |
Oil and Natural Gas Properties | Oil and natural gas properties — Working interests in oil and natural gas properties are accounted for using the successful efforts method of accounting. Under the successful efforts method of accounting, exploration costs which result in the discovery of oil and natural gas reserves and all development costs are capitalized to the appropriate well. Exploration costs which do not result in discovering oil and natural gas reserves are charged to expense when such determination is made. Costs of exploratory wells are initially capitalized to wells-in-progress until the outcome of the drilling is known. We review wells-in-progress quarterly to determine whether sufficient progress is being made in assessing the reserves and economic viability of the respective projects. If no progress has been made in assessing the reserves and economic viability of a project after one year following the completion of drilling, we consider the well costs to be impaired and recognize the costs as expense. Geological and geophysical costs, including seismic costs, and costs to carry and retain undeveloped properties are charged to expense when incurred. The capitalized costs of both developmental and successful exploratory type wells, consisting of lease and well equipment and intangible development costs, are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved developed oil and natural gas reserves for each respective field. Oil and natural gas leasehold acquisition costs are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved oil and natural gas reserves for each respective field. We review our proved oil and natural gas properties for impairment whenever a triggering event occurs, such as downward revisions in reserve estimates or decreases in expected future oil and natural gas prices. Proved properties are grouped by field and undiscounted cash flow estimates are prepared based on management’s expectation of future pricing over the lives of the respective fields. These cash flow estimates are reviewed by an independent petroleum engineer. If the net book value of a field exceeds our undiscounted cash flow estimate, impairment expense is measured and recognized as the difference between net book value and fair value. The fair value estimates used in measuring impairment are based on internally developed unobservable inputs including reserve volumes and future production, pricing and operating costs (Level 3 inputs in the fair value hierarchy of fair value accounting). We review unproved oil and natural gas properties quarterly to assess potential impairment. Our impairment assessment is made on a lease-by-lease basis and considers factors such as management’s intent to drill, lease terms and abandonment of an area. If an unproved property is determined to be impaired, the related property costs are expensed. Impairment expense related to oil and natural gas properties of approximately $ 1.3 million, $ 11.2 million and $ 2.2 million was recorded for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes | Income taxes — The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. If applicable, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. Our policy is to account for interest and penalties with respect to income taxes as operating expenses. |
Stock-based Compensation | Stock-based compensation — We recognize the cost of share-based payments under the fair-value-based method. Under this method, compensation cost related to share-based payments is measured based on the estimated fair value of the awards at the date of grant, net of estimated forfeitures. This expense is recognized over the expected life of the awards, see Note 12. As share-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. |
Statement of Cash Flows | Statement of cash flows — For purposes of reporting cash flows, cash and cash equivalents include cash on deposit and money market funds. |
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 was 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 4. 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. The new standard was effective for fiscal years beginning after December 15, 2019, including all interim periods within those years. 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. The new standard was effective for fiscal years beginning after December 15, 2019, including all interim periods within those years. 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 were 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. In October 2 021, the FASB issued an accounting standards update , which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The amendments should be applied prospectively to acquisitions occurring on or after the effective date. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2022, with early adoption permitted. We plan to adopt this new guidance on January 1, 2023, and we do not expect this new guidance will have a material impact on our consolidated financial statements. During the third quarter of 2019, we identified and recorded out-of-period adjustments primarily related to the accounting for inventory in our directional drilling segment. We concluded that these adjustments were not material to the consolidated financial statements for any of the current or prior periods presented. The net adjustment is reflected as a $ 6.6 million increase to “Loss before income taxes” in the consolidated statements of operations for the year ended December 31, 2019. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives, in years, are shown below: Useful Lives Equipment 1.25 - 15 Buildings 15 - 20 Other 3 - 12 |
Acquisitions and Discontinued_2
Acquisitions and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions And Discontinued Operations [Abstract] | |
Schedule of Fair Value of Consideration Transferred | The total fair value of the consideration transferred was determined as follows (in thousands, except stock price): Shares of our common stock issued to Pioneer shareholders 26,274 Our common stock price on October 1, 2021 $ 9.44 Fair value of common stock issued $ 248,025 Plus cash consideration $ 30,007 Total fair value of consideration transferred $ 278,032 |
Schedule of Total Purchase Price of Assets Acquired and Liabilities Assumed Based on Fair Value | the purchase price allocation during the 12-month period following the acquisition date. Identifiable assets acquired Cash and cash equivalents $ 649 Accounts receivable 44,832 Inventory 8,513 Held for sale assets 73,649 Other current assets 5,272 Property and equipment 217,536 Other long-term assets 9,698 Intangible assets 907 Total identifiable assets acquired 361,056 Liabilities assumed Accounts payable and accrued liabilities 30,391 Held for sale liabilities 32,160 Deferred income taxes 15,543 Other long-term liabilities 4,930 Total liabilities assumed 83,024 Total net assets acquired $ 278,032 |
Summary of Fair Value Consideration Transferred Has Been Provisionally Assigned to Identifiable Intangible Assets | A portion of the fair value consideration transferred has been provisionally assigned to identifiable intangible assets as follows: Fair Value Weighted Average Useful Life (in thousands) (in years) Assets Trade name $ 907 5.00 |
Schedule of Pro Forma Information | The following table summarizes our selected financial information on a pro forma basis (in thousands, except per share data): 2021 2020 (Unaudited) Revenues $ 1,464,351 $ 1,255,554 Net loss $ ( 666,032 ) $ ( 809,996 ) |
Schedule of Operating Results from Discontinued Operations | Summarized operating results from discontinued operations that are included in our consolidated statements of operations for the year ended December 31, 2021 are shown below (in thousands): 2021 Operating revenues: Wireline revenue $ 9,868 Well servicing revenue 19,652 Total operating revenues 29,520 Operating costs and expenses: Wireline 10,465 Well servicing 16,585 Total operating costs and expenses 27,050 Operating income 2,470 Total other income (expense) 64 Income from discontinued operations before income taxes 2,534 Income tax benefit — Income from discontinued operations, net of tax $ 2,534 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Loss to Accounts Receivable | The allowance for credit losses related to accounts receivable as of December 31, 2020 and 2021, and changes for the periods ended December 31, 2020 and 2021 are as follows (in thousands): Balance at January 1, 2020 $ 6,516 Provision for expected credit losses 5,606 Write-offs ( 1,280 ) Balance at December 31, 2020 10,842 Provision for expected credit losses ( 1,500 ) Write-offs ( 849 ) Balance at December 31, 2021 $ 8,493 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at December 31, 2021 and 2020 (in thousands): 2021 2020 Finished goods $ 515 $ 600 Work-in-process 882 802 Raw materials and supplies 40,962 31,683 Inventory $ 42,359 $ 33,085 We maintain certain surplus quantities of spare parts that serve as backup components and maintenance materials for our directional drilling and Colombia contract drilling operations. In 2021, advances in technologies rendered certain directional drilling equipment, and spare parts used to service that equipment, obsolete. Based on our assessment of limited alternative uses or active markets to recapture costs, we recorded a write-down of $ 4.0 million. The write-down is recorded in "Operating costs and expenses - Directional drilling" in the consolidated statements of operations. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at December 31, 2021 and 2020 (in thousands): 2021 2020 Equipment $ 7,742,101 $ 7,647,451 Oil and natural gas properties 229,403 222,738 Buildings 182,280 193,503 Land 24,562 25,781 Total property and equipment 8,178,346 8,089,473 Less accumulated depreciation, depletion, amortization and impairment ( 5,846,591 ) ( 5,328,432 ) Property and equipment, net $ 2,331,755 $ 2,761,041 |
Summary of Depreciation, Depletion, Amortization and Impairment Expense related to Property and Equipment and Intangible Assets and Liabilities | Depreciation, depletion, amortization and impairment — The following table summarizes depreciation, depletion, amortization and impairment expense related to property and equipment, intangible assets and liabilities for 2021, 2020 and 2019 (in thousands): 2021 2020 2019 Depreciation and impairment expense $ 818,999 $ 644,943 $ 974,206 Amortization expense 24,606 19,281 17,722 Depletion expense 5,573 6,686 11,945 Total $ 849,178 $ 670,910 $ 1,003,873 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Segment and Weighted Average Useful Life of Intangible Assets | The following table identifies the segment and weighted average useful life of each of our intangible assets: Weighted Average Segment Useful Life (in years) Customer relationships Other operations 7.00 Developed technology Directional drilling 10.00 Internal use software Directional drilling 5.00 Trade name Contract drilling 5.00 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets as of December 31, 2021 and 2020 are as follows (in thousands): 2021 2020 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 1,800 $ ( 814 ) $ 986 $ 28,000 $ ( 26,757 ) $ 1,243 Developed technology 55,772 ( 50,996 ) 4,776 55,772 ( 27,515 ) 28,257 Internal use software 1,428 ( 515 ) 913 906 ( 319 ) 587 Trade name 907 ( 45 ) 862 — — — $ 59,907 $ ( 52,370 ) $ 7,537 $ 84,678 $ ( 54,591 ) $ 30,087 |
Remaining Amortization Expense Associated with Finite-Lived Intangible Assets | The remaining amortization expense associated with finite-lived intangible assets is expected to be as follows (in thousands): Year ending December 31, 2022 $ 1,405 2023 1,405 2024 1,405 2025 1,354 2026 1,078 Thereafter 890 Total $ 7,537 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses consisted of the following at December 31, 2021 and 2020 (in thousands): 2021 2020 Salaries, wages, payroll taxes and benefits $ 52,252 $ 37,627 Workers’ compensation liability 67,921 70,847 Property, sales, use and other taxes 9,673 10,666 Insurance, other than workers’ compensation 6,494 8,462 Accrued interest payable 11,226 11,325 Accrued restructuring expenses 7,884 14,310 Customer prepayment 60,282 599 Other 22,779 21,767 Accrued liabilities $ 238,511 $ 175,603 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt consisted of the following at December 31, 2021 and 2020 (in thousands): Effective Interest Rate December 31, 2021 December 31, 2020 Term Loan Agreement (1) $ — $ 50,000 3.95 % Senior Notes 4.03 % 509,505 509,505 5.15 % Senior Notes 5.26 % 349,250 349,250 858,755 908,755 Less deferred financing costs and discounts ( 6,432 ) ( 7,271 ) Total $ 852,323 $ 901,484 (1) The borrowings outstanding under the Term Loan Agreement maturing in June 2022 were previously classified as long-term because we had the ability and intent to repay these obligations utilizing our revolving credit facility. |
Schedule of Principal Repayment Requirements of Long Term Debt | Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of December 31, 2021 (in thousands): Year ending December 31, 2022 $ — 2023 — 2024 — 2025 — 2026 — Thereafter 858,755 Total $ 858,755 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Treasury Stock Acquisition | Treasury stock acquisitions during the years ended December 31, 2021, 2020 and 2019 were as follows (dollars in thousands): 2021 2020 2019 Shares Cost Shares Cost Shares Cost Treasury shares at beginning of period 83,402,322 $ 1,366,313 77,336,387 $ 1,345,134 53,701,096 $ 1,080,448 Purchases pursuant to stock buyback program — — 5,826,266 20,000 22,566,331 250,109 Acquisitions pursuant to long-term incentive plan 451,196 3,727 239,669 1,179 1,037,947 14,205 Purchases in connection with Pioneer acquisition 275,477 2,601 — — — — Other — — — — 31,013 372 Treasury shares at end of period 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 77,336,387 $ 1,345,134 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Plans | Our share-based compensation plans at December 31, 2021 are as follows: Shares Shares Underlying Shares Authorized Awards Available Plan Name for Grant Outstanding for Grant 2021 Plan 13,467,480 2,483,250 8,288,582 2014 Plan — 4,986,734 — Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended — 1,487,500 — |
Stock Option Activity | Stock option activity for the year ended December 31, 2021 follows: Weighted Average Shares Exercise Price Per Share Outstanding at beginning of year 4,026,150 $ 21.63 Exercised — $ — Expired ( 306,000 ) $ 30.10 Outstanding at end of year 3,720,150 $ 20.93 Exercisable at end of year 3,720,150 $ 20.93 |
Additional Information with Respect to Non-vested Options | Additional information with respect to options granted, vested and exercised during the years ended December 31, 2021, 2020 and 2019 follows (in thousands, except per share data): 2021 2020 2019 Weighted-average grant date fair value of stock options granted (per share) NA NA NA Aggregate grant date fair value of stock options vested during the year $ 89 $ 89 $ 543 Aggregate intrinsic value of stock options exercised $ — $ — $ — |
Restricted Stock Activity | Restricted stock unit activity for the year ended December 31, 2021 follows: Weighted Average Time Performance Grant Date Fair Based Based Value Per Share Non-vested restricted stock units outstanding at beginning of year 2,741,548 359,315 $ 9.52 Granted 1,797,875 — $ 8.32 Vested ( 1,345,034 ) — $ 10.89 Forfeited ( 149,670 ) — $ 10.33 Non-vested restricted stock units outstanding at end of year 3,044,719 359,315 $ 8.31 |
Restricted Stock Unit Activity | Additional information as of December 31, 2021 with respect to these non-vested restricted stock units follows (dollars in thousands): Aggregate intrinsic value $ 27,977 Weighted-average remaining vesting period 1.66 years Unrecognized compensation cost $ 17,290 |
Performance Units | The total target number of shares with respect to the Performance Units for the years 2016-2021 is set forth below: 2021 2020 2019 2018 2017 2016 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 843,000 500,500 489,800 310,700 186,198 185,000 |
Fair Value of Performance Units | The fair value of the Performance Units is set forth below (in thousands): 2021 2020 2019 2018 2017 2016 Performance Performance Performance Performance Performance Performance Unit Awards 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 $ 3,854 |
Compensation Expense Associated with Performance Units | Compensation expense associated with the Performance Units is set forth below (in thousands): 2021 2020 2019 2018 2017 2016 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Year ended December 31, 2021 $ 1,806 $ 275 $ 3,319 $ 667 NA NA Year ended December 31, 2020 NA $ 206 $ 3,319 $ 2,668 $ 642 NA Year ended December 31, 2019 NA NA $ 2,489 $ 2,668 $ 1,927 $ 321 As of December 31, 2021, we had unrecognized compensation cost of $ 6.6 million related to our unvested Performance Units. The weighted-average remaining vesting period for these unvested Performance Units was 1.44 years as of December 31, 2021. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Expenses | Lease expense consisted of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands): Year Ended Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Operating lease cost $ 4,984 $ 6,911 $ 10,944 Short-term lease expense (1) 41 2 440 Total lease expense $ 5,025 $ 6,913 $ 11,384 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,323 $ 11,576 $ 10,033 Right of use assets obtained in exchange for lease obligations: Operating leases $ 6,413 $ 1,763 $ 10,870 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases as of December 31, 2021 and 2020 is as follows: December 31, 2021 December 31, 2020 Weighted Average Remaining Lease Term: Operating leases 4.8 years 5.2 years Weighted Average Discount Rate: Operating leases 3.8 % 4.1 % |
Summary of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2021 are as follows (in thousands): Year ending December 31, 2022 $ 7,662 2023 5,670 2024 4,390 2025 3,354 2026 2,691 Thereafter 3,508 Total lease payments 27,275 Less imputed interest ( 2,276 ) Total $ 24,999 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Components of the income tax provision applicable to federal, state and foreign income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands): 2021 2020 2019 Federal income tax benefit: Current $ — $ ( 1,977 ) $ ( 1,976 ) Deferred ( 86,878 ) ( 107,334 ) ( 90,441 ) ( 86,878 ) ( 109,311 ) ( 92,417 ) State income tax expense (benefit): Current 144 225 851 Deferred 23,028 ( 17,949 ) ( 11,593 ) 23,172 ( 17,724 ) ( 10,742 ) Foreign income tax expense (benefit): Current 134 ( 291 ) ( 348 ) Deferred 870 — ( 1,168 ) 1,004 ( 291 ) ( 1,516 ) Total income tax benefit: Current 278 ( 2,043 ) ( 1,473 ) Deferred ( 62,980 ) ( 125,283 ) ( 103,202 ) Total income tax benefit: $ ( 62,702 ) $ ( 127,326 ) $ ( 104,675 ) |
Difference Between Statutory Federal Income Tax Rate and Effective Income Tax Rate | The difference between the statutory U.S. federal income tax rate and the effective income tax rate for the years ended December 31, 2021, 2020 and 2019 is summarized as follows: 2021 2020 2019 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of the federal income tax benefit 3.0 1.7 1.4 Goodwill impairment — ( 8.2 ) ( 0.7 ) Permanent differences ( 0.8 ) ( 0.6 ) ( 1.2 ) Valuation allowance ( 13.3 ) ( 0.2 ) ( 0.8 ) State deferred tax remeasurement ( 0.8 ) — ( 1.1 ) Other differences, net ( 0.4 ) — 1.1 Effective tax rate 8.7 % 13.7 % 19.7 % |
Tax Effect of Temporary Differences and Tax Attributes Representing Deferred Tax Assets and Liabilities | The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows (in thousands): 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 457,362 $ 370,875 Tax credits 4,453 4,918 Expense associated with stock-based compensation 9,364 11,252 Workers' compensation allowance 14,833 17,177 Other deferred tax asset 26,483 24,735 512,495 428,957 Less: Valuation allowance ( 189,737 ) ( 19,133 ) Total deferred tax assets 322,758 409,824 Deferred tax liabilities: Property and equipment basis difference ( 335,980 ) ( 475,025 ) Other ( 12,037 ) ( 12,475 ) Total deferred tax liabilities ( 348,017 ) ( 487,500 ) Net deferred tax liability $ ( 25,259 ) $ ( 77,676 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2021, 2020 and 2019, 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): 2021 2020 2019 BASIC EPS: Net loss from continuing operations attributed to common stockholders $ ( 657,079 ) $ ( 803,692 ) $ ( 425,703 ) Net income from discontinued operations attributed to common stockholders $ 2,534 $ — $ — Net loss attributed to common stockholders $ ( 654,545 ) $ ( 803,692 ) $ ( 425,703 ) Weighted average number of common shares outstanding, excluding 195,021 188,013 203,039 Basic loss from continuing operations per common share $ ( 3.37 ) $ ( 4.27 ) $ ( 2.10 ) Basic income from discontinued operations per common share $ 0.01 $ — $ — Basic net loss per common share $ ( 3.36 ) $ ( 4.27 ) $ ( 2.10 ) DILUTED EPS: Net loss from continuing operations attributed to common stockholders $ ( 657,079 ) $ ( 803,692 ) $ ( 425,703 ) Net income from discontinued operations attributed to common stockholders $ 2,534 $ — $ — Net loss attributed to common stockholders $ ( 654,545 ) $ ( 803,692 ) $ ( 425,703 ) Weighted average number of common shares outstanding, excluding 195,021 188,013 203,039 Diluted loss from continuing operations per common share $ ( 3.37 ) $ ( 4.27 ) $ ( 2.10 ) Diluted income from discontinued operations per common share $ 0.01 $ — $ — Diluted net loss per common share $ ( 3.36 ) $ ( 4.27 ) $ ( 2.10 ) Potentially dilutive securities excluded as anti-dilutive 9,551 8,747 9,195 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments - Financial Information | The following tables summarize selected financial information relating to our business segments (in thousands): Year Ended December 31, 2021 2020 2019 Revenues: Contract drilling $ 667,918 $ 670,357 $ 1,309,988 Pressure pumping 523,756 336,111 868,694 Directional drilling 111,481 73,356 188,786 Other operations (1) 75,505 57,962 122,885 Elimination of intercompany revenues - Contract drilling (2) ( 3,888 ) ( 1,231 ) ( 1,638 ) Elimination of intercompany revenues - Other operations (2) ( 17,691 ) ( 12,306 ) ( 18,030 ) Total revenues $ 1,357,081 $ 1,124,249 $ 2,470,685 Income (loss) before income taxes: Contract drilling $ ( 423,029 ) $ ( 543,438 ) $ ( 151,329 ) Pressure pumping ( 118,863 ) ( 166,666 ) ( 102,701 ) Directional drilling ( 35,301 ) ( 40,612 ) ( 52,724 ) Other operations ( 9,905 ) ( 41,685 ) ( 54,725 ) Corporate ( 92,152 ) ( 94,251 ) ( 94,414 ) Credit loss expense 1,500 ( 5,606 ) ( 5,683 ) Interest income 222 1,254 6,013 Interest expense ( 41,978 ) ( 40,770 ) ( 75,204 ) Other ( 275 ) 756 389 Loss before income taxes $ ( 719,781 ) $ ( 931,018 ) $ ( 530,378 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 618,879 $ 433,771 $ 668,007 Pressure pumping 159,305 152,630 233,952 Directional drilling 40,270 36,504 52,223 Other operations 24,865 41,511 42,803 Corporate 5,859 6,494 6,888 Total depreciation, depletion, amortization and impairment $ 849,178 $ 670,910 $ 1,003,873 Capital expenditures: Contract drilling $ 109,894 $ 105,037 $ 194,416 Pressure pumping 34,676 21,678 105,803 Directional drilling 8,591 4,681 15,549 Other operations 11,638 12,378 27,132 Corporate 1,521 1,707 4,612 Total capital expenditures $ 166,320 $ 145,481 $ 347,512 Identifiable assets: Contract drilling $ 2,169,501 $ 2,315,318 $ 3,190,463 Pressure pumping 458,202 486,702 695,570 Directional drilling 87,285 107,807 164,273 Other operations 85,932 88,676 128,290 Corporate (3) 156,928 300,566 261,019 Total assets $ 2,957,848 $ 3,299,069 $ 4,439,615 (1) Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests . (2) Intercompany 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 . |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks And Uncertainties [Abstract] | |
Company's Demand Deposits and Temporary Cash Investments | At December 31, 2021 and 2020, our demand deposits and temporary cash investments consisted of the following (in thousands): 2021 2020 Deposits in FDIC and SIPC-insured institutions under insurance limits $ 2,043 $ 1,000 Deposits in FDIC and SIPC-insured institutions over insurance limits 125,405 227,961 Deposits in foreign banks 9,342 1,966 136,790 230,927 Less outstanding checks and other reconciling items ( 19,266 ) ( 6,012 ) Cash and cash equivalents $ 117,524 $ 224,915 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Outstanding Debt Balances | The estimated fair value of our outstanding debt balances as of December 31, 2021 and 2020 is set forth below (in thousands): December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes $ 509,505 $ 511,652 $ 509,505 $ 471,019 5.15% Senior Notes 349,250 359,142 349,250 319,560 Term Loan Agreement — — 50,000 50,000 Total debt $ 858,755 $ 870,794 $ 908,755 $ 840,579 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Expenses by Reportable Segment | The following table presents restructuring expenses by reportable segment f or the year ended December 31 , 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 Right-of-use asset abandonments 86 7,304 1,845 — 686 9,921 Total $ 2,430 $ 31,331 $ 3,175 $ 501 $ 901 $ 38,338 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)Rigs | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Basis Of Consolidation And Presentation [Line Items] | ||||
Impairment charge of drilling equipment | $ 8,300 | |||
Reimbursement of workers compensation insurance claims included in other current assets | $ 29,900 | $ 36,100 | ||
Impairment expense related to oil and natural gas properties | 1,300 | 11,200 | $ 2,200 | |
Proceeds From Sales Of Business Affiliate And Productive Assets | 43,000 | |||
Right of use asset | 19,024 | 16,850 | ||
Operating lease liabilities | 24,999 | |||
Adjustment of loss before income tax | (719,781) | $ (931,018) | (530,378) | |
Contract Drilling | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Adjustment of loss before income tax | $ 6,600 | |||
Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Proceeds From Sales Of Business Affiliate And Productive Assets | $ 43,000 | |||
Oil and Gas, Exploration and Production | Drilling Rights | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Oil and Gas, Exploration and Production | Wells and Related Equipment and Facilities | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 123 | |||
Oil and Gas, Exploration and Production | Ac Rigs | UNITED STATES | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 17 | |||
Oil and Gas, Exploration and Production | Scr Rigs | COLOMBIA | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 8 | |||
Oil and Gas, Exploration and Production | Wireline Service Unit | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 72 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year 3 months |
Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Buildings | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Buildings | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Other | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Acquisitions and Discontinued_3
Acquisitions and Discontinued Operations - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | Oct. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Cash consideration received | $ 43,000,000 | ||||
Merger and integration related costs | 12,060,000 | $ 0 | $ 0 | ||
US | |||||
Business Acquisition [Line Items] | |||||
Merger and integration related costs | 4,600,000 | ||||
Pioneer Energy Services Corp [Member] | |||||
Business Acquisition [Line Items] | |||||
Aggregate consideration of common stock | 26,274 | ||||
Percentage of acquired equity interests | 100.00% | ||||
Consideration paid in cash | $ 30,007,000 | ||||
Cash consideration received | 43,000,000 | ||||
Revenues | $ 41,500,000 | ||||
Direct operating expenses attributed | $ 30,500,000 | ||||
Merger and integration related costs | $ 12.1 | ||||
Closing price | $ 9.44 | ||||
Business Combination, Consideration Transferred | $ 278,032,000 | ||||
Percentage of acquired pad-capable drilling rig fleet | 100.00% |
Acquisitions and Discontinued_4
Acquisitions and Discontinued Operations - Schedule of Fair Value of Consideration Transferred (Detail) - Pioneer Energy Services Corp [Member] $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 01, 2021USD ($)$ / sharesshares |
Acquisitions And Discontinued Operations [Line Items] | |
Aggregate consideration of common stock | shares | 26,274 |
Closing price | $ / shares | $ 9.44 |
Fair value of common stock issued | $ 248,025 |
Consideration paid in cash | 30,007 |
Total fair value of consideration transferred | $ 278,032 |
Acquisitions and Discontinued_5
Acquisitions and Discontinued Operations - Schedule of Assets Acquired and Liabilities Assumed on Fair Value (Detail) - Pioneer Energy Services Corp [Member] $ in Thousands | Oct. 01, 2021USD ($) |
Identifiable assets acquired | |
Cash and cash equivalents | $ 649 |
Accounts receivable | 44,832 |
Inventory | 8,513 |
Held for sale asset | 73,649 |
Other current assets | 5,272 |
Property and equipment | 217,536 |
Other long-term assets | 9,698 |
Intangible assets | 907 |
Total identifiable assets acquired | 361,056 |
Liabilities assumed | |
Accounts payable and accrued liabilities | 30,391 |
Held for sale liabilities | 32,160 |
Deferred income taxes | 15,543 |
Other long-term liabilities | 4,930 |
Total liabilities assumed | 83,024 |
Total net assets acquired | $ 278,032 |
Acquisitions and Discontinued_6
Acquisitions and Discontinued Operations - Summary of Fair Value Consideration Transferred Has Been Provisionally Assigned to Identifiable Intangible Assets (Details) - Pioneer Energy Services Corp [Member] $ in Thousands | Oct. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Fair Value, Assets, Portion of the fair value consideration transferred | $ 907 |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Fair Value, Assets, Portion of the fair value consideration transferred | $ 907 |
Weighted Average Useful Life, Identifiable intangible assets | 5 years |
Acquisitions and Discontinued_7
Acquisitions and Discontinued Operations - Schedule of Pro Forma Information (Detail) - Pioneer Energy Services Corp [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions And Discontinued Operations [Line Items] | ||
Revenues | $ 1,464,351 | $ 1,255,554 |
Net income (loss) | $ (666,032) | $ (809,996) |
Acquisitions and Discontinued_8
Acquisitions and Discontinued Operations - Schedule of Operating Results from Discontinued Operations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Acquisitions And Discontinued Operations [Line Items] | |
Operating revenues from discontinued operations | $ 29,520 |
Operating costs and expenses | 27,050 |
Operating income (loss) | 2,470 |
Total other income (expense) | 64 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total | 2,534 |
Income tax benefit | 0 |
Income from discontinued operations, net of tax | 2,534 |
Wireline | |
Acquisitions And Discontinued Operations [Line Items] | |
Operating revenues from discontinued operations | 9,868 |
Operating costs and expenses | 10,465 |
Well Servicing | |
Acquisitions And Discontinued Operations [Line Items] | |
Operating revenues from discontinued operations | 19,652 |
Operating costs and expenses | $ 16,585 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable, net of allowance for credit losses of $8,493 and $10,842 at December 31, 2021 and 2020, respectively | $ 356,083,000 | $ 160,214,000 | |
Increased contract liabilities due to customer payments | 59,700,000 | ||
Total revenues | 1,357,081,000 | 1,124,249,000 | $ 2,470,685,000 |
Accounts Payable | |||
Disaggregation Of Revenue [Line Items] | |||
Total contract liability | 60,300,000 | 600,000 | |
Contract Drilling | |||
Disaggregation Of Revenue [Line Items] | |||
Amortized revenue | 0 | 100,000 | |
ASC Topic 606 Revenue from Contracts with Customers | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable, net of allowance for credit losses of $8,493 and $10,842 at December 31, 2021 and 2020, respectively | $ 352,000,000 | $ 158,000,000 | |
Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable payment terms | 30 days | ||
Maximum | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable payment terms | 60 days |
Credit Losses - Additional Info
Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Loss [Abstract] | |||
Credit loss expense | $ 1,500 | $ (5,606) | $ (5,683) |
Credit Losses - Schedule of all
Credit Losses - Schedule of allowance for credit losses related to accounts receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Beginning Balance | $ 10,842 | $ 6,516 | |
Credit loss expense | (1,500) | 5,606 | $ 5,683 |
Write-Offs | (849) | (1,280) | |
Ending Balance | $ 8,493 | $ 10,842 | $ 6,516 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Net [Abstract] | ||
Finished goods | $ 515 | $ 600 |
Work-in-process | 882 | 802 |
Raw materials and supplies | 40,962 | 31,683 |
Inventory | $ 42,359 | $ 33,085 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Inventory Disclosure [Abstract] | |
Write-down of Inventory | $ 4 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 8,178,346 | $ 8,089,473 |
Less accumulated depreciation, depletion, amortization and impairment | (5,846,591) | (5,328,432) |
Property and equipment, net | 2,331,755 | 2,761,041 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,742,101 | 7,647,451 |
Oil and Gas Properties | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 229,403 | 222,738 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 182,280 | 193,503 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 24,562 | $ 25,781 |
Depreciation, Depletion, Amorti
Depreciation, Depletion, Amortization and Impairment Expense Related to Property and Equipment and Intangible Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and impairment expense | $ 818,999 | $ 644,943 | $ 974,206 |
Amortization expense | 24,606 | 19,281 | 17,722 |
Depletion expense | 5,573 | 6,686 | 11,945 |
Total | $ 849,178 | $ 670,910 | $ 1,003,873 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($)hpRigs | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)Rigs | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Rigs | Mar. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 8,300 | |||||
Dry holes and abandonments | $ 178 | $ 1,285 | $ 109 | |||
Pressure Pumping | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 32,200 | 0 | $ 20,500 | |||
Power of an asset | hp | 200,000 | |||||
Percentage of excepted cash flows on undiscounted basis exceeding the carrying values of asset groups | 54.00% | 22.00% | ||||
Directional Drilling | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 2,500 | $ 0 | $ 8,400 | |||
Impairment Charges Developed Technology Intangible Asset | 11,400 | |||||
Percentage of excepted cash flows on undiscounted basis exceeding the carrying values of asset groups | 23.00% | 3.00% | ||||
Contract Drilling | ||||||
Property Plant And Equipment [Line Items] | ||||||
Percentage of excepted cash flows on undiscounted basis exceeding the carrying values of asset groups | 35.00% | 15.00% | ||||
Oilfield Rentals | ||||||
Property Plant And Equipment [Line Items] | ||||||
Percentage of excepted cash flows on undiscounted basis exceeding the carrying values of asset groups | 7.00% | 9.00% | ||||
Rigs and Spare Rig Components That Would No Longer Be Marketed | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 220,000 | $ 8,300 | $ 173,000 | |||
Number of rigs | Rigs | 43 | 43 | 36 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Goodwill | $ 0 | |||
Goodwill impairment charge | 0 | $ 395,060,000 | $ 17,800,000 | |
Impairment on intangible assets | 11,400,000 | 0 | 0 | |
Amortization expense on intangible assets | 24,000,000 | $ 19,300,000 | $ 17,900,000 | |
Impairment Charges to abandon obsolete intangible technology | $ 11,400,000 | |||
Contract Drilling | ||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Goodwill impairment charge | $ 395,000,000 | |||
Percentage fair value exceeds carrying values | 13.00% | |||
Oilfield Rentals and Electrical Controls and Automation Reporting Unit | ||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Goodwill impairment charge | $ 17,800,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Segment and Weighted Average Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Customer Relationships | Other Operations | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 7 years |
Developed Technology | Directional Drilling | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 10 years |
Internal Use Software | Directional Drilling | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 5 years |
Trade Name [Member] | Contract Drilling | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 5 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 59,907 | $ 84,678 |
Accumulated Amortization | (52,370) | (54,591) |
Net Carrying Amount | 7,537 | 30,087 |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,800 | 28,000 |
Accumulated Amortization | (814) | (26,757) |
Net Carrying Amount | 986 | 1,243 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 55,772 | 55,772 |
Accumulated Amortization | (50,996) | (27,515) |
Net Carrying Amount | 4,776 | 28,257 |
Internal Use Software | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,428 | 906 |
Accumulated Amortization | (515) | (319) |
Net Carrying Amount | 913 | $ 587 |
Trade Name [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 907 | |
Accumulated Amortization | (45) | |
Net Carrying Amount | $ 862 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Remaining Amortization Expense Associated with Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 1,405 | |
2023 | 1,405 | |
2024 | 1,405 | |
2025 | 1,354 | |
2026 | 1,078 | |
Thereafter | 890 | |
Net Carrying Amount | $ 7,537 | $ 30,087 |
Summary of Accrued Expenses (De
Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Salaries, wages, payroll taxes and benefits | $ 52,252 | $ 37,627 |
Workers’ compensation liability | 67,921 | 70,847 |
Property, sales, use and other taxes | 9,673 | 10,666 |
Insurance, other than workers’ compensation | 6,494 | 8,462 |
Accrued interest payable | 11,226 | 11,325 |
Accrued restructuring expenses | 7,884 | 14,310 |
Customer prepayment | 60,282 | 599 |
Other | 22,779 | 21,767 |
Accrued liabilities | $ 238,511 | $ 175,603 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 858,755 | $ 908,755 | |
Less deferred financing costs and discounts | (6,432) | (7,271) | |
Total | 852,323 | 901,484 | |
Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt | [1] | 0 | 50,000 |
3.95% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 509,505 | 509,505 | |
Effective Interest Rate | 4.03% | ||
5.15% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 349,250 | $ 349,250 | |
Effective Interest Rate | 5.26% | ||
[1] | The borrowings outstanding under the Term Loan Agreement maturing in June 2022 were previously classified as long-term because we had the ability and intent to repay these obligations utilizing our revolving credit facility. |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Nov. 15, 2019 | Jan. 19, 2018 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43 | |||
Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 2022-06 | |||
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% | |||
3.95% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | Feb. 1, 2028 | |||
Debt interest rate | 3.95% | 3.95% | 5.15% | |
5.15% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | Nov. 15, 2029 | |||
Debt interest rate | 5.15% | 5.15% | 5.15% |
Long-Term Debt - Term Loan Agre
Long-Term Debt - Term Loan Agreement - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 22, 2019 | |
Debt Instrument [Line Items] | ||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43,000,000 | |||
Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit agreement date | Aug. 22, 2019 | |||
Credit facility, maximum borrowing capacity | $ 150,000,000 | |||
Maturity date | 2022-06 | |||
Term Loan Agreement | Subject To Customary Conditions | ||||
Debt Instrument [Line Items] | ||||
Repayments of borrowings | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | |
Term Loan, amount outstanding | $ 0 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities - Additional Information (Detail) | Oct. 07, 2021USD ($) | Mar. 27, 2020USD ($) | Mar. 27, 2018USD ($)Option | Dec. 31, 2021USD ($) | Aug. 22, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | $ 71,500,000 | ||||
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 | |||
Debt 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 [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | $ 71,400,000 | ||||
Letters of credit Additional Issuance | $ 7,300,000 | ||||
Reimbursement Agreement [Member] | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.25% | ||||
Term Loan Agreement | |||||
Debt Instrument [Line Items] | |||||
Credit agreement date | Aug. 22, 2019 | ||||
Credit facility, maximum borrowing capacity | $ 150,000,000 |
Long-Term Debt - Senior Notes -
Long-Term Debt - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 16, 2019 | Nov. 15, 2019 | Sep. 25, 2019 | Mar. 27, 2018 | Jan. 19, 2018 | Jun. 14, 2012 | Oct. 05, 2010 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||||||||||
Gain loss on early extinguishment | $ 0 | $ 3,596 | $ (24,023) | ||||||||||
Interest expense related to amortization of debt issuance costs | $ 1,000 | $ 1,100 | 2,000 | ||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of borrowings | $ 239,000 | ||||||||||||
4.97% Series A Senior Notes, Due October 5th 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Notes issuance date | Oct. 5, 2010 | ||||||||||||
Long-term debt, aggregate principal amount | $ 300,000 | ||||||||||||
Debt interest rate | 4.97% | ||||||||||||
Debt Instrument principle including make-whole premium | $ 308,000 | ||||||||||||
Debt instrument, redemption percentage | 100.00% | ||||||||||||
Gain loss on early extinguishment | $ (8,200) | ||||||||||||
Debt issuance costs | $ 1,900 | ||||||||||||
Interest expense related to amortization of debt issuance costs | 200 | ||||||||||||
Series B Senior Notes Four Point Two Seven Percent Due June Fourteen Twenty Twenty Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Notes issuance date | Jun. 14, 2012 | ||||||||||||
Long-term debt, aggregate principal amount | $ 300,000 | ||||||||||||
Debt interest rate | 4.27% | ||||||||||||
Debt Instrument principle including make-whole premium | $ 315,000 | ||||||||||||
Debt instrument, redemption percentage | 100.00% | ||||||||||||
Gain loss on early extinguishment | $ (15,800) | ||||||||||||
Debt maturity date | Jun. 14, 2022 | ||||||||||||
Debt issuance costs | $ 1,600 | ||||||||||||
Interest expense related to amortization of debt issuance costs | 400 | ||||||||||||
3.95% Senior Notes Due 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt, aggregate principal amount | $ 525,000 | ||||||||||||
Debt interest rate | 3.95% | 3.95% | 5.15% | ||||||||||
Debt instrument, redemption percentage | 100.00% | ||||||||||||
Proceeds from borrowings under revolving credit facility | $ 521,000 | ||||||||||||
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 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 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% | ||||||||||||
Debt issuance costs | $ 1,600 | ||||||||||||
5.15% Senior Notes Due 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt, aggregate principal amount | $ 350,000 | ||||||||||||
Debt interest rate | 5.15% | 5.15% | 5.15% | ||||||||||
Debt instrument, redemption percentage | 100.00% | ||||||||||||
Proceeds from borrowings under revolving credit facility | $ 347,000 | ||||||||||||
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 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 issuance costs | $ 1,000 | ||||||||||||
Term Loan Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of borrowings | $ 50,000 | ||||||||||||
Debt issuance costs | $ 200 | 200 | |||||||||||
Interest expense related to amortization of debt issuance costs | $ 100 | ||||||||||||
Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 4,600 | ||||||||||||
Credit Agreement | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt maturity date | Mar. 27, 2023 | ||||||||||||
Amendment No. 2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 400 | ||||||||||||
2028 Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Gain loss on early extinguishment | 3,400 | ||||||||||||
Debt instrument, repurchase amount | 15,500 | ||||||||||||
2029 Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Gain loss on early extinguishment | 200 | ||||||||||||
Debt instrument, repurchase amount | 800 | ||||||||||||
Early Redemption Of2028 Notes And2029 Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense related to amortization of debt issuance costs | $ 100 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Repayment Requirements of Long-Term Debt (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 858,755 |
Total | $ 858,755 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other Matters - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Letters of credit, collateral for retrospective premiums and retained losses | $ 71,500,000 | ||
Purchase Commitment Remaining Minimum Amount Committed | 99,000,000 | ||
Deposit Revaluation Charge | $ 9,200,000 | $ 12,700,000 | |
Capacity reservation contract | $ 0 | ||
Deductible Per Occurrence For Workers Compensation Insurance Policy | 1,500,000 | ||
Deductible Per Occurrence For Equipment Insurance Policy | 1,000,000 | ||
Deductible Per Occurrence For General Liability Insurance Policy | 10,000,000 | ||
Deductible Per Occurrence For Primary Automobile Liability Insurance Policy | 2,000,000 | ||
Deductible Per Occurrence For Excess Automobile Liability Insurance Policy | 5,000,000 | ||
Letter of Credit | |||
Other Commitments [Line Items] | |||
Amount drawn under letters of credit | $ 0 | ||
Change in Control Agreements | |||
Other Commitments [Line Items] | |||
Employee Entitlement Ratio On Sum Of Highest Salary And Average Bonus | 2.00% | ||
Continued Coverage Entitlement Of Welfare Plan Period | 2 years | ||
Change in Control Agreements | Specified Employees | |||
Other Commitments [Line Items] | |||
Agreement Extension Period | 12 months | ||
Agreement New Term Notification Period | 90 days | ||
Employment Agreements | |||
Other Commitments [Line Items] | |||
Initial Agreement Term | 3 years | ||
Agreement Termination Description | Under specified circumstances, we may terminate the executive’s employment under his Employment Agreement for Cause (as defined in the Employment Agreement) by either (i) providing written notice 10 days before the effective date of such termination and by granting at least 10 days to cure the cause for such termination or (ii) by providing written notice of such termination at least 30 days before the effective date of such termination and by granting at least 20 days to cure the cause for such termination, provided that if the matter is reasonably determined by us to not be capable of being cured, the executive may be terminated for cause on the date the written notice is delivered. | ||
Accelerated Vesting Period Description | we will accelerate vesting of all options and restricted stock awards on the 60th day following the executive’s termination | ||
Period Considered For Calculating Annual Cash Bonus Payment | 3 years | ||
Description Of Postemployment Benefits | If our decision to terminate other than for Cause or by the executive for Good Reason occurs following a Change in Control (as defined in his Employment Agreement, which for the President of Patterson-UTI Drilling includes a change in control of us or, in certain circumstances, of Patterson-UTI Drilling), the executive will generally be entitled to the same severance payments and benefits described above except that the pro-rated lump-sum payment for annual cash bonuses will be based on his highest annual cash bonus for the last three years, and the executive will be entitled to 36 months (in the case of the Chief Executive Officer) or 30 months (in the case of the Chief Financial Officer, General Counsel and President of Patterson-UTI Drilling) of subsidized benefits continuation coverage. | ||
Employment Agreements | Minimum | |||
Other Commitments [Line Items] | |||
Agreement Termination Notice Period | 30 days | ||
Employment Agreements | Chief Executive Officer | |||
Other Commitments [Line Items] | |||
Employee Entitlement Ratio On Sum Of Base Salary And Average Cash Bonus | 3.00% | ||
Period For Subsidized Benefit Continuation Coverage | 36 months | ||
Employment Agreements | Chief Financial Officer, General Counsel and President | |||
Other Commitments [Line Items] | |||
Employee Entitlement Ratio On Sum Of Base Salary And Average Cash Bonus | 2.50% | ||
Period For Subsidized Benefit Continuation Coverage | 30 months |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 09, 2022 | Apr. 22, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 24, 2019 | Sep. 06, 2013 |
Equity Class Of Treasury Stock [Line Items] | ||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||
Expire period of Right agreement | Apr. 21, 2021 | |||||
Subsequent Event | Dividend Declared | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Dividend per share, declared | $ 0.04 | |||||
Dividend declaration date | Feb. 9, 2022 | |||||
Dividend payment date | Mar. 17, 2022 | |||||
Dividend record date | Mar. 3, 2022 | |||||
2013 program | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Increase of the authorization under the stock buyback program | $ 250 | |||||
Remaining amount approved for repurchases under stock buyback program | $ 130 | |||||
2013 program | Maximum | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Amount approved for repurchases under stock buyback program | $ 200 | |||||
Series A Junior Participating Preferred Stock | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Preferred stock, par value | $ 0.01 | |||||
Preferred stock, exercise price per right | $ 17 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock Acquisition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | |||
Treasury shares at beginning of period | 83,402,322 | 77,336,387 | 53,701,096 |
Other | 31,013 | ||
Treasury shares at end of period | 84,128,995 | 83,402,322 | 77,336,387 |
Treasury shares at beginning of period | $ 1,366,313 | $ 1,345,134 | $ 1,080,448 |
Treasury stock acquired, cost | 6,328 | 21,179 | 264,686 |
Other | 372 | ||
Treasury shares at end of period | $ 1,372,641 | $ 1,366,313 | $ 1,345,134 |
Pioneer acquisition [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 275,477 | ||
Treasury stock acquired, cost | $ 2,601 | ||
Long Term Incentive Plan | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 451,196 | 239,669 | 1,037,947 |
Treasury stock acquired, cost | $ 3,727 | $ 1,179 | $ 14,205 |
2013 program | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 5,826,266 | 22,566,331 | |
Treasury stock acquired, cost | $ 20,000 | $ 250,109 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021 | May 31, 2020 | Apr. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 03, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | $ 750,000 | ||||||
Compensation expense foregoing limit | $ 1,000,000 | ||||||
Number of stock option granted | 0 | 0 | 0 | ||||
Outstanding non-vested restricted stock | 3,300,000 | ||||||
Options outstanding | 3,720,150 | 4,026,150 | |||||
Employee Stock Option [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options outstanding, aggregate intrinsic value | $ 0 | ||||||
weighted-average remaining contractual term | 2 years 5 months 12 days | ||||||
Performance Shares [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted-average remaining vesting period for unvested performance units | 1 year 5 months 8 days | ||||||
Performance period | 3 years | ||||||
Unrecognized compensation cost | $ 6,600,000 | ||||||
Performance Shares [Member] | Year Twenty Sixteen [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | $ 321,000 | ||||||
Shares issued | 185,000 | ||||||
Performance Shares [Member] | Year Twenty Seventeen [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | $ 642,000 | 1,927,000 | |||||
Shares issued | 332,773 | ||||||
Performance Shares [Member] | Year Twenty Eighteen [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Compensation expense | 667,000 | 2,668,000 | $ 2,668,000 | ||||
Shares issued | 621,400 | ||||||
Phantom Share Units P S Us [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 3 years | ||||||
Performance completion year | 2023 | ||||||
Grant date fair value | $ 1,200,000 | ||||||
Expense recognized | $ 1,800,000 | $ 600,000 | |||||
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. | ||||||
Option to Purchase [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options outstanding | 0 | ||||||
Chief Executive Officer And President [Member] | Phantom Share Units P S Us [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Non-vested restricted stock units outstanding at beginning of year | 298,500 | ||||||
Chief Executive Officer And President [Member] | Maximum [Member] | Phantom Share Units P S Us [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of target award vesting righ | 200.00% | ||||||
Chief Executive Officer And President [Member] | Minimum [Member] | Phantom Share Units P S Us [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of target award vesting righ | 0.00% | ||||||
Two Thousand fourteen Long Term Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares available for grant | 0 | ||||||
Shares authorized for grant | 0 | 4,900,000 | |||||
Two Thousand fourteen Long Term Incentive Plan | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Option term | 10 years | ||||||
Two Thousand fourteen Long Term Incentive Plan | Non Employee Director [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 1 year | ||||||
Two Thousand fourteen Long Term Incentive Plan | Employee [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 3 years | ||||||
Two Thousand Twenty One Long Term Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares available for grant | 8,288,582 | ||||||
Shares authorized for grant | 13,467,480 | 13,500,000 | |||||
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares available for grant | 0 | ||||||
Shares authorized for grant | 0 | ||||||
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | Non Employee Director [Member] | Employee Stock Option [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 1 year | ||||||
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | Employee [Member] | Employee Stock Option [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 3 years |
Stock-based Compensation - Shar
Stock-based Compensation - Share-Based Compensation Plans (Detail) - shares | Dec. 31, 2021 | Jun. 03, 2021 |
Two Thousand Twenty One Long Term Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 13,467,480 | 13,500,000 |
Shares Underlying Awards Outstanding | 2,483,250 | |
Shares available for grant | 8,288,582 | |
Two Thousand fourteen Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 0 | 4,900,000 |
Shares Underlying Awards Outstanding | 4,986,734 | |
Shares available for grant | 0 | |
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 0 | |
Shares Underlying Awards Outstanding | 1,487,500 | |
Shares available for grant | 0 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares | |
Outstanding at beginning of year | shares | 4,026,150 |
Exercised | shares | 0 |
Expired | shares | 306,000 |
Outstanding at end of year | shares | 3,720,150 |
Exercisable at end of year | shares | 3,720,150 |
Weighted Average Exercise Price Per Share | |
Outstanding at beginning of year | $ / shares | $ 21.63 |
Exercised | $ / shares | 0 |
Expired | $ / shares | 30.10 |
Outstanding at end of year | $ / shares | 20.93 |
Exercisable at the end of the year | $ / shares | $ 20.93 |
Stock-based Compensation - Ad_2
Stock-based Compensation - Additional Information with Respect to Options Granted, Vested and Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Aggregate grant date fair value of stock options vested during the year | $ 89 | $ 89 | $ 543 |
Aggregate intrinsic value of stock options exercised | $ 0 | $ 0 | $ 0 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activity (Detail) - Restricted Stock Units R S U [Member] | 12 Months Ended |
Dec. 31, 2021$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | $ 9.52 |
Vested | 10.89 |
Granted | 8.32 |
Forfeited | 10.33 |
Non-vested restricted stock outstanding at end of year | $ 8.31 |
Stock-based Compensation - Re_2
Stock-based Compensation - Restricted Stock Unit Activity (Detail) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Time Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | 2,741,548 |
Granted | 1,797,875 |
Vested | 1,345,034 |
Forfeited | 149,670 |
Non-vested restricted stock outstanding at end of year | 3,044,719 |
Performance Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | 359,315 |
Granted | 0 |
Vested | 0 |
Forfeited | |
Non-vested restricted stock outstanding at end of year | 359,315 |
Restricted Stock Units R S U [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | $ / shares | $ 9.52 |
Granted | $ / shares | 8.32 |
Vested | $ / shares | 10.89 |
Forfeited | $ / shares | 10.33 |
Non-vested restricted stock outstanding at end of year | $ / shares | $ 8.31 |
Stock-based Compensation - Ad_3
Stock-based Compensation - Additional Information on Non-vested Restricted Stock Unit (Detail) - Restricted Stock Units R S U [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate intrinsic value | $ 27,977 |
Weighted-average remaining vesting period | 1 year 7 months 28 days |
Unrecognized compensation cost | $ 17,290 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Units (Detail) | 12 Months Ended |
Dec. 31, 2021shares | |
Year Twenty Twenty One [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 843,000 |
Year Twenty Twenty [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 500,500 |
Year Twenty Nineteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 489,800 |
Year Twenty Eighteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 310,700 |
Year Twenty Seventeen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 186,198 |
Year Twenty Sixteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 185,000 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value of Performance Units (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Year Twenty Twenty One [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 7,225 |
Year Twenty Twenty [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 826 |
Year Twenty Nineteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 9,958 |
Year Twenty Eighteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 8,004 |
Year Twenty Seventeen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 5,780 |
Year Twenty Sixteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 3,854 |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense Associated with Performance Units (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 750,000 | ||
Performance Shares [Member] | Year Twenty Twenty One [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 1,806,000 | ||
Performance Shares [Member] | Year Twenty Twenty [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 275,000 | $ 206,000 | |
Performance Shares [Member] | Year Twenty Nineteen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 3,319,000 | 3,319,000 | $ 2,489,000 |
Performance Shares [Member] | Year Twenty Eighteen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 667,000 | 2,668,000 | 2,668,000 |
Performance Shares [Member] | Year Twenty Seventeen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 642,000 | 1,927,000 | |
Performance Shares [Member] | Year Twenty Sixteen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 321,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)Facility | Dec. 31, 2020USD ($)FacilityOperatingequipment | Dec. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | ||||
Operating leasing arrangements initial term | 58 months | 58 months | ||
Proceeds from sale of facility | $ 10,200 | |||
Gain on sale of facility | $ 1,426 | $ 3,079 | $ 13,904 | |
Operating lease liabilities | 24,999 | |||
Right of use asset | $ 19,024 | $ 16,850 | ||
Acquired Leases | ||||
Lessee Lease Description [Line Items] | ||||
Number of facility leases | Facility | 5 | |||
Operating lease liabilities | $ 4,300 | |||
Right of use asset | $ 4,100 | |||
New Facility Lease | ||||
Lessee Lease Description [Line Items] | ||||
Number of facility leases | Facility | 1 | 2 | ||
Operating lease liabilities | $ 700 | $ 1,500 | ||
Right of use asset | $ 700 | $ 1,500 | ||
Extended Facility Lease | ||||
Lessee Lease Description [Line Items] | ||||
Number of facility leases | Facility | 3 | 2 | ||
Operating lease liabilities | $ 1,600 | $ 200 | ||
Right of use asset | $ 1,600 | $ 200 | ||
Terminated Lease | ||||
Lessee Lease Description [Line Items] | ||||
Number of facility leases | Facility | 2 | 4 | ||
Operating lease liabilities | $ 500 | $ 2,200 | ||
Number of facility leases | Operatingequipment | 3 | |||
Right of use asset | $ 400 | |||
Transferred Leases | ||||
Lessee Lease Description [Line Items] | ||||
Number of facility leases | Facility | 1 | |||
Operating lease liabilities | $ 200 | |||
Right of use asset | $ 200 | |||
Other Operating Income Expense | ||||
Lessee Lease Description [Line Items] | ||||
Gain on sale of facility | $ 800 | |||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Leases remaining lease terms | 5 months | |||
Operating leasing arrangements initial term | 1 year | |||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Leases remaining lease terms | 7 years |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | ||||
Operating lease cost | $ 4,984 | $ 6,911 | $ 10,944 | |
Short-term lease expense | 41 | 2 | [1] | 440 |
Total lease expense | $ 5,025 | $ 6,913 | $ 11,384 | |
[1] | Short-term lease expense represents expense related to leases with a contract term of one year or less. |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cashflow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 7,323 | $ 11,576 | $ 10,033 |
Right of use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 6,413 | $ 1,763 | $ 10,870 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted Average Remaining Lease Term: | ||
Operating leases | 4 years 9 months 18 days | 5 years 2 months 12 days |
Weighted Average Discount Rate: | ||
Operating leases | 3.80% | 4.10% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 7,662 |
2023 | 5,670 |
2024 | 4,390 |
2025 | 3,354 |
2026 | 2,691 |
Thereafter | 3,508 |
Total lease payments | 27,275 |
Less imputed interest | 2,276 |
Operating lease liabilities | $ 24,999 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Loss before income taxes for the U.S. jurisdictions | $ 721,000 | $ 917,000 | $ 500,000 |
Loss before income taxes for non-U.S. jurisdictions | $ 900 | $ 14,200 | $ 30,500 |
Decrease in effective tax rate due to goodwill impairment charges | 5.00% | ||
Effective tax rate | 8.70% | 13.70% | 19.70% |
Decrease in effective tax rate of goodwill impairment | 0.00% | 8.20% | 0.70% |
Valuation allowances against net deferred tax assets | $ 189,737 | $ 19,133 | |
Gross federal net operating losses | 1,700,000 | ||
Gross Canadian net operating losses | 52,400 | ||
Gross Canadian net operating losses | 1,700,000 | ||
Post-apportionment state net operating losses | 25,200 | ||
Post-apportionment state net operating losses | 457,362 | $ 370,875 | |
Unrecognized tax benefits | 0 | ||
Colombia | |||
Income Taxes [Line Items] | |||
Post-apportionment state net operating losses | $ 1,100 | ||
Net operating loss carryforwards expiration, beginning year | 2028 | ||
Net operating loss carryforwards expiration, ending year | 2033 | ||
Tax periods open for examination | the tax years ended December 31, 2015 through December 31, 2020 | ||
Earliest Tax Year | Colombia | |||
Income Taxes [Line Items] | |||
Tax period open for examination | 2015 | ||
Latest Tax Year | Colombia | |||
Income Taxes [Line Items] | |||
Tax period open for examination | 2020 | ||
Canada | |||
Income Taxes [Line Items] | |||
Valuation allowances against net deferred tax assets | $ 170,600 | ||
Net operating loss carryforwards expiration, beginning year | 2036 | ||
Net operating loss carryforwards expiration, ending year | 2041 | ||
Tax periods open for examination | tax years ended December 31, 2014 through December 31, 2020 | ||
Canada | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Tax period open for examination | 2014 | ||
Canada | Latest Tax Year | |||
Income Taxes [Line Items] | |||
Tax period open for examination | 2020 | ||
State Jurisdictions | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards expiration, beginning year | 2022 | ||
Net operating loss carryforwards expiration, ending year | 2041 | ||
U.S. | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards expiration, beginning year | 2031 | ||
Net operating loss carryforwards expiration, ending year | 2037 | ||
Tax periods open for examination | the tax years ended December 31, 2014 through December 31, 2020 | ||
U.S. | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Tax period open for examination | 2014 | ||
U.S. | Latest Tax Year | |||
Income Taxes [Line Items] | |||
Tax period open for examination | 2020 |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal income tax benefit: | |||
Current | $ 0 | $ (1,977) | $ (1,976) |
Deferred | (86,878) | (107,334) | (90,441) |
Federal income tax benefit, Total | (86,878) | (109,311) | (92,417) |
State income tax expense (benefit): | |||
Current | 144 | 225 | 851 |
Deferred | 23,028 | (17,949) | (11,593) |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 23,172 | (17,724) | (10,742) |
Foreign income tax expense (benefit): | |||
Current | 134 | (291) | (348) |
Deferred | 870 | 0 | (1,168) |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | 1,004 | (291) | (1,516) |
Total income tax benefit: | |||
Current | 278 | (2,043) | (1,473) |
Deferred income tax benefit | (62,980) | (125,283) | (103,202) |
Total income tax benefit: | $ (62,702) | $ (127,326) | $ (104,675) |
Difference Between Statutory Fe
Difference Between Statutory Federal Income Tax Rate and Effective Income Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 21.00% |
State income taxes - net of the federal income tax benefit | 3.00% | 1.70% | 1.40% |
Goodwill impairment | 0.00% | (8.20%) | (0.70%) |
Permanent differences | (0.80%) | (0.60%) | (1.20%) |
Valuation allowance | (13.30%) | (0.20%) | (0.80%) |
State deferred tax remeasurement | (0.80%) | (1.10%) | |
Other differences, net | (0.40%) | 1.10% | |
Effective tax rate | 8.70% | 13.70% | 19.70% |
Tax Effect of Temporary Differe
Tax Effect of Temporary Differences and Tax Attributes Representing Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 457,362 | $ 370,875 |
Tax credits | 4,453 | 4,918 |
Expense associated with stock-based compensation | 9,364 | 11,252 |
Workers' compensation allowance | 14,833 | 17,177 |
Other deferred tax asset | 26,483 | 24,735 |
Total deferred tax assets, gross | 512,495 | 428,957 |
Valuation allowance | (189,737) | (19,133) |
Total deferred tax assets, net | 322,758 | 409,824 |
Deferred tax liabilities: | ||
Property and equipment basis difference | (335,980) | (475,025) |
Other | (12,037) | (12,475) |
Total deferred tax liabilities | (348,017) | (487,500) |
Net deferred tax liability | $ (25,259) | $ (77,676) |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
BASIC EPS: | |||
Net loss from continuing operations attributed to common stockholders | $ (657,079) | $ (803,692) | $ (425,703) |
Net income from discontinued operations attributed to common stockholders | 2,534 | ||
Net Income (Loss) Available to Common Stockholders, Basic, Total | $ (654,545) | $ (803,692) | $ (425,703) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 195,021 | 188,013 | 203,039 |
Basic loss from continuing operations per common share | $ (3.37) | $ (4.27) | $ (2.10) |
Basic income from discontinued operations per common share | 0.01 | ||
Basic net loss per common share | $ (3.36) | $ (4.27) | $ (2.10) |
DILUTED EPS: | |||
Net loss from continuing operations attributed to common stockholders | $ (657,079) | $ (803,692) | $ (425,703) |
Net income from discontinued operations attributed to common stockholders | 2,534 | ||
Net Income (Loss) Available to Common Stockholders, Diluted, Total | $ (654,545) | $ (803,692) | $ (425,703) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 195,021 | 188,013 | 203,039 |
Diluted loss from continuing operations per common share | $ (3.37) | $ (4.27) | $ (2.10) |
Diluted income from discontinued operations per common share | $ 0.01 | ||
Weighted average number of diluted common shares outstanding | 195,021 | 188,013 | 203,039 |
Diluted net loss per common share | $ (3.36) | $ (4.27) | $ (2.10) |
Potentially dilutive securities excluded as anti-dilutive | 9,551 | 8,747 | 9,195 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |||
Cash contributions to 401(K) plan | $ 7.6 | $ 7.7 | $ 13.2 |
Business Segments - Additional
Business Segments - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)Rigs | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)RigsSegment | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | |
Segment Reporting Information [Line Items] | |||||
Number of reportable business segments | Segment | 3 | ||||
Impairment charge of drilling equipment | $ 8,300 | ||||
Total operating revenues | $ 1,357,081 | $ 1,124,249 | $ 2,470,685 | ||
Long-lived assets | $ 2,331,755 | 2,331,755 | $ 2,761,041 | ||
Major Customer | |||||
Segment Reporting Information [Line Items] | |||||
Number of customers accounted for 10% or more of consolidated revenues | Customer | 0 | 0 | |||
One customer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | $ 216,000 | ||||
Consolidated Revenue, Percentage | 16.00% | ||||
COLOMBIA | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | 39,300 | $ 39,300 | |||
Rigs and Spare Rig Components That Would No Longer Be Marketed | |||||
Segment Reporting Information [Line Items] | |||||
Impairment charge of drilling equipment | $ 220,000 | $ 8,300 | $ 173,000 | ||
Contract Drilling | |||||
Segment Reporting Information [Line Items] | |||||
Marketable land-based drilling rigs | Rigs | 184 | 184 | |||
Total operating revenues | $ 664,030 | $ 669,126 | $ 1,308,350 | ||
Contract Drilling | COLOMBIA | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | $ 15,800 |
Business Segments - Revenues (D
Business Segments - Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,357,081 | $ 1,124,249 | $ 2,470,685 | |
Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 664,030 | 669,126 | 1,308,350 | |
Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 523,756 | 336,111 | 868,694 | |
Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 111,481 | 73,356 | 188,786 | |
Operating Segments | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 667,918 | 670,357 | 1,309,988 | |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 523,756 | 336,111 | 868,694 | |
Operating Segments | Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 111,481 | 73,356 | 188,786 | |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [1] | 75,505 | 57,962 | 122,885 |
Intersegment Eliminations | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [2] | (3,888) | (1,231) | (1,638) |
Intersegment Eliminations | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [2] | $ (17,691) | $ (12,306) | $ (18,030) |
[1] | Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests | |||
[2] | Intercompany 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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (677,750) | $ (892,258) | $ (461,576) |
Credit loss expense | 1,500 | (5,606) | (5,683) |
Interest income | 222 | 1,254 | 6,013 |
Interest expense | 41,978 | 40,770 | 75,204 |
Other income (expense) | (275) | 756 | 389 |
Loss before income taxes | (719,781) | (931,018) | (530,378) |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 9,905 | (41,685) | (54,725) |
Contract Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 423,029 | (543,438) | (151,329) |
Pressure Pumping | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 118,863 | (166,666) | (102,701) |
Directional Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 35,301 | (40,612) | (52,724) |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (92,152) | $ (94,251) | $ (94,414) |
Business Segments - Depreciatio
Business Segments - Depreciation, Depletion, Amortization and Impairment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | $ 849,178 | $ 670,910 | $ 1,003,873 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 24,865 | 41,511 | 42,803 |
Contract Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 618,879 | 433,771 | 668,007 |
Pressure Pumping | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 159,305 | 152,630 | 233,952 |
Directional Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 40,270 | 36,504 | 52,223 |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | $ 5,859 | $ 6,494 | $ 6,888 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 166,320 | $ 145,481 | $ 347,512 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 11,638 | 12,378 | 27,132 |
Contract Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 109,894 | 105,037 | 194,416 |
Pressure Pumping | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 34,676 | 21,678 | 105,803 |
Directional Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 8,591 | 4,681 | 15,549 |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 1,521 | $ 1,707 | $ 4,612 |
Business Segments - Identifiabl
Business Segments - Identifiable Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 2,957,848 | $ 3,299,069 | $ 4,439,615 | |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 85,932 | 88,676 | 128,290 | |
Contract Drilling | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,169,501 | 2,315,318 | 3,190,463 | |
Pressure Pumping | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 458,202 | 486,702 | 695,570 | |
Directional Drilling | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 87,285 | 107,807 | 164,273 | |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | $ 156,928 | $ 300,566 | $ 261,019 |
[1] | Corporate assets primarily include cash on hand and certain property and equipment |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Company's Demand Deposits and Temporary Cash Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||||
Deposits in FDIC and SIPC-insured institutions under insurance limits | $ 2,043 | $ 1,000 | ||
Deposits in FDIC and SIPC-insured institutions over insurance limits | 125,405 | 227,961 | ||
Deposits in foreign banks | 9,342 | 1,966 | ||
Total cash and cash equivalents | 136,790 | 230,927 | ||
Less outstanding checks and other reconciling items | (19,266) | (6,012) | ||
Cash and cash equivalents | $ 117,524 | $ 224,915 | $ 174,185 | $ 245,029 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |||
Credit loss expense | $ 1,500 | $ (5,606) | $ (5,683) |
Estimated Fair Value of Outstan
Estimated Fair Value of Outstanding Debt Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 858,755 | $ 908,755 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 870,794 | 840,579 |
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 | 511,652 | 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 | 359,142 | 319,560 |
Term Loan Agreement | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 0 | 50,000 |
Term Loan Agreement | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 0 | $ 50,000 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 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% | 5.15% | 3.95% | |
Current market rates used in measuring fair value | 3.87% | 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 | 4.72% | 6.42% |
Restructuring Expenses - Additi
Restructuring Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 38,300 | $ 0 | $ 38,338 | $ 0 |
Contract Termination | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and related cost incurred | 5,300 | |||
Restructuring of contractual future payments | $ 14,000 |
Restructuring Expenses - Restru
Restructuring Expenses - Restructuring Expenses by Reportable Segment (Detail) - Operating Segments $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | $ 6,500 |
Contract termination costs | 20,373 |
Other exit costs | 1,544 |
Right-of-use asset abandonments | 9,921 |
Total | 38,338 |
Contract Drilling | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 1,821 |
Other exit costs | 523 |
Right-of-use 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 |
Right-of-use asset abandonments | 7,304 |
Total | 31,331 |
Directional Drilling | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 503 |
Other exit costs | 827 |
Right-of-use asset abandonments | 1,845 |
Total | 3,175 |
Other Operation | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 501 |
Total | 501 |
Corporate Segment | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 215 |
Right-of-use asset abandonments | 686 |
Total | $ 901 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - Allowance For Credit Losses - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | $ 10,842 | $ 6,516 | $ 2,312 | |
Charged to Costs and Expenses | (1,500) | 5,606 | 5,683 | |
Deductions | [1] | (849) | (1,280) | (1,479) |
Ending Balance | $ 8,493 | $ 10,842 | $ 6,516 | |
[1] | Consists of uncollectible accounts written-off. |