Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
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 | 408,192,236 | ||
Entity Public Float | $ 2.4 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
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 2024 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, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 192,680 | $ 137,553 |
Accounts receivable, net of allowance for credit losses of $3,490 and $2,875 at December 31, 2023 and 2022, respectively | 971,091 | 565,520 |
Inventory | 180,805 | 65,377 |
Other current assets | 141,122 | 60,969 |
Total current assets | 1,485,698 | 829,419 |
Property and equipment, net | 3,340,412 | 2,260,576 |
Operating lease right of use asset | 47,599 | 20,841 |
Finance lease right of use asset | 63,228 | 0 |
Goodwill | 1,379,741 | 0 |
Intangible assets, net | 1,051,697 | 5,845 |
Deposits on equipment purchases | 28,305 | 13,051 |
Other assets | 19,424 | 10,881 |
Deferred tax assets, net | 3,927 | 3,210 |
Total assets | 7,420,031 | 3,143,823 |
Current liabilities: | ||
Accounts payable | 534,420 | 237,056 |
Accrued liabilities | 446,268 | 308,787 |
Operating lease liability | 13,541 | 5,123 |
Finance lease liability | 43,980 | 0 |
Current maturities of long-term debt | 12,226 | 0 |
Total current liabilities | 1,050,435 | 550,966 |
Long-term operating lease liability | 37,848 | 19,594 |
Long-term finance lease liability | 12,953 | 0 |
Long-term debt, net of debt discount and issuance costs of $8,918 and $5,468 at December 31, 2023 and 2022, respectively | 1,224,941 | 830,937 |
Deferred tax liabilities, net | 248,107 | 28,738 |
Other liabilities | 25,066 | 48,065 |
Total liabilities | 2,599,350 | 1,478,300 |
Commitments and contingencies (see Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01; authorized 1,000,000 shares, no shares issued | 0 | 0 |
Common stock, par value $0.01; authorized 800,000,000 and 400,000,000 shares with 516,775,313 and 302,325,853 issued and 411,195,302 and 213,567,131 outstanding at December 31, 2023 and 2022, respectively | 5,166 | 3,023 |
Additional paid-in capital | 6,407,294 | 3,202,973 |
Retained earning (deficit) | 57,035 | (87,394) |
Accumulated other comprehensive loss | 472 | 0 |
Treasury stock, at cost, 105,580,011 shares and 88,758,722 shares at December 31, 2023 and 2022, respectively | (1,657,675) | (1,453,079) |
Total stockholders' equity attributable to controlling interests | 4,812,292 | 1,665,523 |
Noncontrolling interest | 8,389 | 0 |
Total equity | 4,820,681 | 1,665,523 |
Total liabilities and stockholders’ equity | $ 7,420,031 | $ 3,143,823 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,490 | $ 2,875 |
Long-term debt, debt discount and issuance costs | $ 8,919 | $ 5,468 |
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 | 800,000,000 | 400,000,000 |
Common stock, issued | 516,775,313 | 302,325,853 |
Common stock, outstanding | 411,195,302 | 213,567,131 |
Treasury stock, shares | 105,580,011 | 88,758,722 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating revenues: | |||
Total operating revenues | $ 4,146,456 | $ 2,647,592 | $ 1,357,081 |
Operating costs and expenses: | |||
Depreciation, depletion, amortization and impairment | 731,416 | 483,945 | 849,178 |
Selling, general and administrative | 169,962 | 116,589 | 92,382 |
Credit loss expense | 842 | 0 | (1,500) |
Merger and integration expenses | 98,077 | 2,069 | 12,060 |
Other operating (income) expenses, net | (17,114) | (12,592) | 763 |
Total operating costs and expenses | 3,794,502 | 2,436,561 | 2,034,831 |
Operating income (loss) | 351,954 | 211,031 | (677,750) |
Other income (expense): | |||
Interest income | 6,122 | 360 | 222 |
Interest expense, net of amount capitalized | (52,870) | (40,256) | (41,978) |
Other | 1,898 | (3,273) | (275) |
Total other expense | (44,850) | (43,169) | (42,031) |
Income (loss) from continuing operations before income taxes | 307,104 | 167,862 | (719,781) |
Total income tax expense (benefit) | 61,152 | 13,204 | (62,702) |
Income (loss) from continuing operations | 245,952 | 154,658 | (657,079) |
Income from discontinued operations, net of tax | 0 | 0 | 2,534 |
Net income (loss) | 245,952 | 154,658 | (654,545) |
Net loss attributable to noncontrolling interest | (340) | 0 | 0 |
Net income (loss) attributable to common stockholders | $ 246,292 | $ 154,658 | $ (654,545) |
Net income (loss) per common share - basic: | |||
Continuing Operations | $ 0.88 | $ 0.72 | $ (3.37) |
Discontinued operations | 0 | 0 | 0.01 |
Net income (loss) - basic | 0.88 | 0.72 | (3.36) |
Net income (loss) per common share - diluted: | |||
Continuing Operations | 0.88 | 0.7 | (3.37) |
Discontinued operations | 0 | 0 | 0.01 |
Net income (loss) - diluted | $ 0.88 | $ 0.7 | $ (3.36) |
Weighted average number of common shares outstanding: | |||
Basic | 279,501 | 215,935 | 195,021 |
Diluted | 280,061 | 219,496 | 195,021 |
Drilling Services | |||
Operating revenues: | |||
Total operating revenues | $ 1,919,759 | $ 1,544,820 | $ 784,218 |
Operating costs and expenses: | |||
Operating costs and expenses | 1,119,200 | 1,025,904 | 577,983 |
Other | |||
Operating revenues: | |||
Total operating revenues | 74,578 | 80,359 | 49,107 |
Operating costs and expenses: | |||
Operating costs and expenses | 42,624 | 39,261 | 28,012 |
Completion Services | |||
Operating revenues: | |||
Total operating revenues | 2,017,440 | 1,022,413 | 523,756 |
Operating costs and expenses: | |||
Operating costs and expenses | 1,567,940 | 781,385 | 475,953 |
Drilling Products | |||
Operating revenues: | |||
Total operating revenues | 134,679 | 0 | 0 |
Operating costs and expenses: | |||
Operating costs and expenses | $ 81,555 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 245,952 | $ 154,658 | $ (654,545) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment, net of taxes of $0 for all periods | 472 | 1,793 | 503 |
Release of cumulative translation adjustment, net of taxes of $0 for 2023, $3,770 for 2022 and $0 for 2021 | 0 | (7,708) | 0 |
Comprehensive income (loss) | 246,424 | 148,743 | (654,042) |
Less: comprehensive loss attributable to noncontrolling interest | (340) | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | $ 246,764 | $ 148,743 | $ (654,042) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, net of taxes of $0 for all periods | $ 0 | $ 0 | $ 0 |
Release of cumulative translation adjustment, net of taxes of $0 for 2023 $3,770 for 2022 and $0 for 2021 | $ 0 | $ 3,770 | $ 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 | Treasury Stock | Noncontrolling Interest |
Beginning Balance at Dec. 31, 2020 | $ 2,016,059 | $ 2,710 | $ 2,902,236 | $ 472,014 | $ 5,412 | $ (1,366,313) | |
Beginning Balance (in shares) at Dec. 31, 2020 | 271,029 | ||||||
Net income (loss) | (654,545) | (654,545) | |||||
Foreign currency translation adjustment | 503 | 503 | |||||
Release of cumulative translation adjustment | 0 | ||||||
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 | $ 14 | (14) | |||||
Vesting of restricted stock units (in shares) | 1,345 | ||||||
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 | 299,269 | ||||||
Net income (loss) | 154,658 | 154,658 | |||||
Foreign currency translation adjustment | 1,793 | 1,793 | |||||
Release of cumulative translation adjustment | (7,708) | (7,708) | |||||
Issuance of restricted stock | $ 10 | (10) | |||||
Issuance of restricted stock (in shares) | 980 | ||||||
Vesting of restricted stock units | $ 14 | (14) | |||||
Vesting of restricted stock units (in shares) | 1,437 | ||||||
Exercise of stock options | 10,368 | $ 6 | 10,362 | ||||
Exercise of stock options (in shares) | 640 | ||||||
Stock-based compensation | 21,099 | 21,099 | |||||
Payment of cash dividends | (43,096) | (43,096) | |||||
Dividend equivalents | (640) | (640) | |||||
Purchase of treasury stock | (80,438) | (80,438) | |||||
Ending Balance at Dec. 31, 2022 | $ 1,665,523 | $ 3,023 | 3,202,973 | (87,394) | (1,453,079) | ||
Ending Balance (in shares) at Dec. 31, 2022 | 302,325,853 | 302,326 | |||||
Net income (loss) | $ 245,952 | 246,292 | $ (340) | ||||
Net income (loss) attribuable to noncontrolling interest | 8,729 | 8,729 | |||||
Foreign currency translation adjustment | 472 | 472 | |||||
Issuance of common stock - Ulterra acquisition | 521,406 | $ 349 | 521,057 | ||||
Issuance of common stock - Ulterra acquisition, Share | 34,900 | ||||||
Issuance of common stock - NexTier merger | 2,565,895 | $ 1,720 | 2,564,175 | ||||
Issuance of common stock - NexTier merger, Share | 172,092 | ||||||
Issuance of replacement awards related to NexTier merger | 72,413 | 72,413 | |||||
Release of cumulative translation adjustment | $ 0 | ||||||
Issuance of restricted stock | $ 10 | (10) | |||||
Issuance of restricted stock (in shares) | 1,077 | ||||||
Vesting of restricted stock units | $ 64 | (64) | |||||
Vesting of restricted stock units (in shares) | 6,380 | ||||||
Exercise of stock options (in shares) | 0 | ||||||
Stock-based compensation | $ 46,750 | 46,750 | |||||
Payment of cash dividends | (100,034) | (100,034) | |||||
Dividend equivalents | (1,829) | (1,829) | |||||
Purchase of treasury stock | (204,596) | (204,596) | |||||
Ending Balance at Dec. 31, 2023 | $ 4,820,681 | $ 5,166 | $ 6,407,294 | $ 57,035 | $ 472 | $ (1,657,675) | $ 8,389 |
Ending Balance (in shares) at Dec. 31, 2023 | 516,775,313 | 516,775 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend paid per share | $ 0.32 | $ 0.2 | $ 0.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 245,952 | $ 154,658 | $ (654,545) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, depletion, amortization and impairment | 731,416 | 483,945 | 849,178 |
Deferred income tax expense (benefit) | 51,866 | 6,998 | (62,980) |
Stock-based compensation expense | 46,750 | 21,099 | 21,558 |
Net gain on asset disposals | (1,798) | (12,075) | (1,426) |
Gain on early debt extinguishment | (1,112) | (2,461) | 0 |
Other | 59 | 954 | (483) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 84,544 | (209,226) | (147,356) |
Inventory | (30,793) | (23,154) | (2,609) |
Other current assets | (10,360) | (1,975) | (4,126) |
Other assets | 24,686 | 10,643 | 5,260 |
Accounts payable | (69,729) | 38,986 | 50,941 |
Accrued liabilities | (23,484) | 67,380 | 48,540 |
Other liabilities | (42,083) | 30,416 | (5,940) |
Net cash used in operating activities of discontinued operations | 0 | 0 | (516) |
Net cash provided by operating activities | 1,005,914 | 566,188 | 95,496 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired - Pioneer | 0 | 0 | (29,358) |
Acquisitions, net of cash acquired - NexTier | (65,185) | 0 | 0 |
Acquisitions, net of cash acquired - Ulterra | (357,314) | 0 | 0 |
Purchases of property and equipment | (615,690) | (436,797) | (166,320) |
Proceeds from disposal of assets and insurance claims | 26,494 | 26,074 | 23,339 |
Other | (5,895) | (2,504) | (522) |
Net cash provided by investing activities of discontinued operations | 0 | 0 | 41,267 |
Net cash used in investing activities | (1,017,590) | (413,227) | (131,594) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (200,710) | (70,070) | (6,328) |
Dividends paid | (100,034) | (43,096) | (15,605) |
Proceeds from borrowings under revolving credit facility | 420,000 | 150,000 | 0 |
Repayment of borrowings under revolving credit facility | (420,000) | (150,000) | 0 |
Proceeds from issuance of senior notes | 396,412 | 0 | 0 |
Repayment of senior notes | (7,837) | (19,760) | 0 |
Repayment of term loan | 0 | 0 | (50,000) |
Payments on finance leases | (15,915) | 0 | 0 |
Debt issuance costs | (2,395) | (455) | 0 |
Other | (3,954) | 0 | 0 |
Net cash used in financing activities | 65,567 | (133,381) | (71,933) |
Effect of foreign exchange rate changes on cash | 1,236 | 449 | 640 |
Net increase (decrease) in cash and cash equivalents | 55,127 | 20,029 | (107,391) |
Cash and cash equivalents at beginning of year | 137,553 | 117,524 | 224,915 |
Cash and cash equivalents at end of year | 192,680 | 137,553 | 117,524 |
Net cash (paid) received during the year for: | |||
Interest, net of capitalized interest of $1,692 in 2023, $976 in 2022, and $260 in 2021 | (39,607) | (39,855) | (40,464) |
Income taxes | (27,169) | (1,526) | 4,196 |
Non-cash investing and financing activities: | |||
Net increase (decrease) in payables for purchases of property and equipment | (15,111) | 7,953 | 31,393 |
Net (increase) decrease in deposits on equipment purchases | 7,876 | (12,202) | 867 |
Issuance of common stock for business acquisitions | 3,159,714 | 0 | 248,025 |
Cashless exercise of stock options | 0 | 10,368 | 0 |
Purchases of property and equipment through exchange of lease right of use asset | 3,241 | 0 | 0 |
Derecognition of right of use asset | $ (3,241) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Interest expense, capitalized interest | $ 1,692 | $ 976 | $ 260 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 and consolidating interest of a joint venture (collectively referred to herein as “we,” “us,” “our,” “ours” and like terms), is a Houston, Texas-based leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized drill bit solutions in the United States, Middle East and many other regions around the world. We operate under three reportable business segments: (i) drilling services, (ii) completion services, and (iii) drilling products. We have other operations through which we provide oilfield rental tools in select markets in the United States. 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. On August 14, 2023, we completed our acquisition (the “Ulterra acquisition”) of Ulterra Drilling Technologies, L.P. (“Ulterra”). Ulterra is a global provider of specialized drill bit solutions. On September 1, 2023, we completed our merger (the “NexTier merger”) with NexTier Oilfield Solutions Inc. (“NexTier”). NexTier is a predominately U.S. land-focused oilfield service provider, with a diverse set of well completion and production services across a variety of active basins. See Note 2 for additional details on the acquisition and merger. In the fourth quarter of 2021, we completed the acquisition of Pioneer Energy Services Corp. (“Pioneer”). Pioneer provided land-based contract drilling services and production services to a diverse group of oil and natural gas exploration and production companies in the United States and internationally in Colombia. The purchase price allocation was finalized in 2022. The measurement period adjustments did not have a material impact on our consolidated financial statements. On December 31, 2021, we completed the sale of the acquired Pioneer well servicing rig business and wireline business to Clearwell Dynamics, LLC. 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 were presented as a discontinued operation during the fourth quarter of 2021. Basis of presentation — The consolidated financial statements include the accounts of Patterson-UTI, its wholly-owned subsidiaries and the consolidating interest of a joint venture. All significant intercompany accounts and transactions have been eliminated. Except for wholly-owned subsidiaries and our interest in a joint venture, 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. These reclassifications include the change in our reportable segments in 2023. Effective as of the third quarter of 2023, we revised our reportable segments to align with certain changes in how our Chief Operating Decision Maker (“CODM”) manages and allocates resources to our business as a result of the Ulterra acquisition and NexTier merger. We now have the following reportable business segments: (i) drilling services, (ii) completion services, and (iii) drilling products. Accordingly, we recast our results of operations for all years presented to align with our revised reportable segments. These reclassifications had no effect on our previously reported operating and net income (loss) within our consolidated statements of operations or cash flows from operating, investing and financing activities within our consolidated statements of cash flows. The U.S. dollar is the reporting currency and functional currency for most of our operations except certain of our foreign subsidiaries, which use their local currencies as their functional currency. Assets and liabilities of these foreign subsidiaries are translated into U.S. dollars using the exchange rates in effect as of the balance sheet date. The effects of these translation adjustments are reflected in accumulated other comprehensive income, which is a separate component of stockholders’ equity. The consolidated financial statements include the results of Ulterra from August 14, 2023 to December 31, 2023, and the results of NexTier from September 1, 2023 to December 31, 2023. 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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates . Cash and cash equivalents — Cash equivalents are highly liquid, short-term investments with original maturities of three months or less from their date of purchase. Restricted cash — Restricted cash includes amounts restricted as cash collateral for the issuance of standby letters of credit. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheet that sum to the total of such amounts shown in the statement of cash flows for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Cash and cash equivalents $ 190,108 $ 137,553 Restricted cash 2,572 — Total cash, cash equivalents and restricted cash $ 192,680 $ 137,553 Revenue recognition — Revenues from our drilling services, completion services, drilling products, and other activities are recognized as services are performed. All of the wells we drilled in 2023, 2022 and 2021 were drilled under daywork contracts. 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. As a result of the Ulterra acquisition, our revenues now include a significant amount of rental revenue included within the new “Drilling products” segment. See Note 3 for details . 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. 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 completion services activities, materials used in our equipment servicing business, spare parts for drilling services and raw materials for drilling products. Such inventories are stated at the lower of cost or net realizable value. As inventory is consumed, expense is recorded in direct operating cost in the consolidated statements of operations using the weighted average cost method for non-manufacturing inventory and standard cost method for manufacturing inventory. We periodically review the nature and quantities of inventory on hand and evaluate the net realizable value of items based on historical usage patterns, known changes to equipment or processes and customer demand for specific products. Provision for excess or obsolete inventories is determined based on historical usage of inventory on-hand, volume on-hand versus anticipated usage, technological advances and consideration of current market conditions. Inventories that have not turned over for more than a year are subject to slow-moving reserve provisions. In addition, inventories that have become obsolete due to technological advances, excess volume on-hand or are no longer configured to operate with our equipment are written off. Other current assets — Other current assets include reimbursement from our workers compensation insurance carrier for claims in excess of our deductible in the amount of $ 31.0 million and $ 34.6 million at December 31, 2023 and 2022, respectively. We also maintain prepayments for items such as insurance, rent and inventory. Long-lived assets with definite lives — Property and equipment and definite-lived intangible assets are carried at cost less accumulated depreciation, amortization, depletion and impairment. Depreciation and amortization is recorded on the straight-line method over the estimated useful lives. The method of depreciation does not change whenever property and equipment become idle. The estimated useful lives are shown below: Useful Lives Equipment 1 - 25 years Rental equipment 4 - 8 runs Buildings and leasehold improvements 1 - 30 years Other 3 - 20 years Amortization of definite-lived intangible assets is calculated on the straight-lined method over the estimated useful lives of the assets, which range from 3 to 15 years. Long-lived assets with definite lives, including property and equipment and certain intangible assets, are evaluated 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”). Assets are grouped at the lowest level at which identifiable cash flows are largely independent of other asset groupings for impairment assessment. If there is a triggering event, we estimate future cash flows over the life of the respective assets or asset groupings in our assessment of its recoverability. 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. If estimated undiscounted cash flows expected to result from the use and eventual disposition of an asset or asset group is less than its respective carrying amount, an impairment loss is recognized in the amount by which the carrying amount exceeds its estimated fair value. 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 our consolidated statements 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 $ 7.0 million, $ 4.5 million and $ 1.3 million was recorded for the years ended December 31, 2023, 2022 and 2021 , respectively. Goodwill — As a result of both the Ulterra acquisition and the NexTier merger, we have recognized goodwill. Goodwill from acquisitions is recorded as the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. Goodwill is considered to have an indefinite useful economic life and is not amortized. We assess impairment of goodwill at least annually, as of July 31, or on an interim basis if events or circumstances indicate that the fair value of goodwill may have decreased below its carrying value. If the carrying value of a reporting unit exceeds its fair value, we would recognize an impairment in an amount equal to the excess, limited to the total amount of goodwill allocated to the reporting unit. See Note 7 for details. Leases — We have operating leases for operating locations, corporate offices and certain operating equipment. We determine if a contract contains a lease at inception or as a result of an acquisition. A right-of-use asset and corresponding lease liability are recognized on our consolidated balance sheet at commencement at an amount based on the present value of the remaining lease payments over the lease term. 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. By our policy election, right-of-use assets and lease liabilities with an initial term of one year or less are not recognized for leasing arrangements, and non-lease and lease components are treated as a single lease component instead of bifurcating those components. Lease expense is recognized on a straight-line basis. If available, we use the rate implicit in the lease at commencement date to discount the lease payments. 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 third quarter of 2023, as part of the Ulterra acquisition and the NexTier merger, we acquired operating and finance leases. We inherited NexTier’s and Ulterra’s lease classifications as of the time of each respective acquisition. We have elected as an accounting policy election by class of underlying assets to not recognize assets or liabilities at the acquisition date for leases that had a remaining lease term of twelve months or less. See Notes 2 and 13 for details. For finance leases, we amortize the right-of-use asset on a straight-line basis over the earlier of the useful life of the right-of-use asset or the end of the lease term and record this amortization in depreciation and amortization expense in the consolidated statements of operations. If available, we use the rate implicit in the lease at commencement date to discount the lease payments. If the implicit rate is not available, 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. We include the term of any renewal option for the right-of-use asset and lease liability if it is reasonably certain that we will exercise the option. We also include the term of any termination option for the right-of-use asset and lease liability if it is not reasonably certain we will exercise the option. By our policy election, right-of-use assets and lease liabilities with an initial term of one year or less are not recognized for leasing arrangements, and non-lease and lease components are treated as a single lease component instead of bifurcating those components. For finance leases where we have determined we are reasonably certain to exercise a purchase option to acquire the underlying asset, we amortize the right-of-use asset over the lease term and record this amortization in “Depreciation, depletion, amortization and impairment” in the consolidated statements of operations. We adjust the lease liability to reflect lease payments made during the period and interest incurred on the lease liability using the effective interest method. The incurred interest expense is recorded in “Interest expense” in the consolidated statements of operations. 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, as described in Note 12. Concentration of Credit Risk — Our assets that are potentially subject to concentrations of credit risk are cash, cash equivalents and restricted cash and trade accounts receivable. Cash balances are maintained in financial institutions, which at times exceed federally insured limits. We monitor the financial condition of the financial institutions in which accounts are maintained and has not experienced any losses in such accounts. We maintain an allowance for credit losses based upon several factors, including historical collection experience, current aging status of the customer accounts and financial condition of our customers. There were no material changes in the allowance for credit losses in 2023 and 2022. Change in Accounting Estimate — In the third quarter of 2023, we changed the estimated useful lives of certain property and equipment within our completion services segment. The change in the estimated useful lives was necessitated by recent trends in increased intensity and pumping hours per day of certain components used in servicing larger jobs. We determined the estimated useful life of fluid ends is now less than one year, which results in these components no longer being capitalized to property and equipment but instead recorded to inventory and expensed as direct operating costs as they are consumed. Additionally, we shortened the estimated useful lives of certain other completion components that remain in property and equipment, which resulted in a decrease in the weighted average estimated useful lives of these assets from nine years to seven years. The effect of our change in estimated useful lives of these assets was a decrease in operating income of $ 30.7 million and a decrease in net income of $ 24.3 million for the year ended December 31, 2023, which resulted in a decrease in basic and diluted earnings per share of $ 0.09 and $ 0.09 per share, respectively. Recently Adopted Accounting Standards — In October 2021, 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 adopted this new guidance on January 1, 2023, 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. In December 2022, the FASB issued an update, which deferred the sunset date to December 31, 2024. We do not expect this new guidance will have a material impact on our consolidated financial statements. In November 2023, the FASB issued an accounting standards update to improve reportable segment disclosure requirements and enhance disclosures about significant segment expenses. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. We are currently evaluating the effect of this pronouncement on our disclosures. In December 2023, the FASB issued an accounting standards update to improve income tax disclosure requirements. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2024 and should be applied prospectively. We are currently evaluating the effect of this pronouncement on our disclosures. |
Acquisitions and Discontinued O
Acquisitions and Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
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 natural 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 Approximately $ 41.5 million of revenues and $ 30.5 million of direct operating expenses attributed to the Pioneer acquisition are included in our 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 our consolidated statements of operations. Revenues and direct operating expenses for our discontinued operations are presented below. 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.” 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 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 (Unaudited) Revenues $ 1,464,351 Net loss $ ( 666,032 ) Discontinued Operations On December 31, 2021, we completed the sale of the acquired well servicing rig business and wireline business to Clearwell Dynamics, LLC. 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 were presented as a discontinued operation in the consolidated financial statements during the fourth quarter of 2021. 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 Ulterra Drilling Technologies, L.P. On August 14, 2023, we completed the Ulterra acquisition. Total consideration for the acquisition included the issuance of 34.9 million shares of our common stock and payment of approximately $ 376 million of cash, which based on the closing price of our common stock of $ 14.94 on August 14, 2023, valued the transaction at closing at approximately $ 897 million. The total fair value of the consideration transferred was determined as follows (in thousands, except stock price): Shares of our common stock issued to Ulterra 34,900 Our common stock price on August 14, 2023 $ 14.94 Common stock equity consideration $ 521,406 Plus net cash consideration (1) 375,740 Total consideration transferred $ 897,146 (1) Net cash consideration inclu ded $ 370 million cas h consideration as adjusted for customary purchase price adjustments set forth in the Ulterra merger agreement relating to cash, net working capital, indebtedness and transaction expenses of Ulterra as of the closing. The adjustment is subject to a post-closing target net working capital adjustment in accordance with the Ulterra merger agreement. 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 aggregate purchase price noted above was allocated to the major categories of assets acquired and liabilities assumed based on preliminary estimated fair values as of the date of the business combination. We applied significant judgment in estimating the fair value of assets acquired and liabilities assumed, which involved the use of significant estimates and assumptions with respect to future rig counts, cash flow projections, estimated economic useful lives, operating and capital cost estimates, customer attrition rates, contributory asset charges, royalty rates and discount rate ( 10.5 %). The carrying amounts of cash and cash equivalents, accounts receivable, other assets, accounts payable and accrued liabilities approximate their fair values due to their nature or the short-term maturity of instruments. The remaining assets acquired and liabilities assumed are based on inputs that are not observable in the market and thus represent Level 3 inputs. The fair value of inventory and rental equipment was determined using a replacement cost approach. Intangible assets primarily consist of customer relationships and developed technology, the fair values of which were determined using an income approach. Property and equipment was valued using a combination of indirect cost and a market approach. The fair value was estimated by using a multi-period excess earnings method for customer relationships and a relief from royalty method for trade name and developed technology. Certain data necessary to complete the purchase price allocation is not yet available, including final tax returns that provide the underlying tax basis of Ulterra’s assets and liabilities. The measurement period adjustments in the fourth quarter of 2023 did not have a material impact on our consolidated financial statements. We will complete the purchase price allocation during the 12-month period following the acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets acquired: Cash and cash equivalents $ 18,426 Accounts receivable 68,467 Inventory (1) 36,313 Rental equipment (2) 109,055 Property and equipment 27,583 Intangible assets 313,000 Operating lease right of use asset 7,513 Finance lease right of use asset 5,228 Other assets 14,274 Total assets acquired 599,859 Liabilities assumed: Accounts payable 23,258 Accrued liabilities 31,608 Operating lease liability 7,513 Finance lease liability 5,228 Deferred tax liabilities 83,993 Total liabilities assumed 151,600 Less: noncontrolling interest ( 8,729 ) Net assets acquired 439,530 Goodwill 457,616 Total consideration transferred $ 897,146 (1) We recorded an adjustmen t of $ 5.5 million to write-up acquired drill bits classified as inventory to estimated fair value. This adjustment will be recorded as direct operating expense as acquired drill bits are sold. (2) We recorded an adjustment of $ 74.4 millio n to write-up acquired drill bits classified as long-lived assets to estimated fair value. This adjustment will be depreciated as acquired drill bits are rented over a weighted-average estimated useful lif e of 7.5 run s. The goodwill recognized in the acquisition represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired and liabilities assumed. Goodwill represents the potential for new growth opportunities internationally with the acquisition of Ulterra as well as the recognition of deferred taxes for the difference between the fair value of the assets acquired and liabilities assumed and the respective carry-over tax basis. Goodwill is not deductible for tax purposes. All of the goodwill was assigned to our Drilling Products segment. See Note 7. Approximately $ 135 million of revenues and $ 3.4 million of net loss attributed to the Ulterra acquisition are included in the consolidated statements of operations for the period from the closing date on August 14, 2023 through December 31, 2023 . During the twelve months ended December 31, 2023 , we incurred costs related to the Ulterra acquisition totaling $ 5.6 million, which are included in our consolidated statements of operations as “Merger and integration expense.” 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) Customer relationships $ 245,000 15 Trade name 16,000 11 Developed technology 52,000 5 Intangible assets $ 313,000 Pro Forma The following pro forma condensed combined financial information was derived from our and Ulterra’s historical financial statements and gives effect to the acquisition as if it had occurred on January 1, 2022. 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 step up to fair value of $ 77.6 million for acquired intangibles, $ 74.4 million for acquired drill bits classified as long-lived assets, and $ 5.5 million for acquired drill bits classified as inventory, (ii) removal of $ 12.8 million in 2023 and $ 28.1 million in 2022 of historical interest expense of the acquired entity and (iii) $ 17.4 million in 2023 and $ 11.3 million in 2022 of tax benefit relating to the aforementioned pro forma adjustments. The pro forma results of operations do not include any anticipated cost savings or other synergies that may result from the Ulterra acquisition nor do they include any estimated costs that will be incurred to integrate Ulterra operations. The pro forma results of operations include our merger and integration expense of $ 5.6 million as if they had been incurred in the first quarter of 2022. 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 Ulterra acquisition taken place on January 1, 2022. 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): 2023 2022 (Unaudited) Revenues $ 4,369,596 $ 3,017,778 Net income $ 190,136 $ 141,458 NexTier Oilfield Solutions Inc. On September 1, 2023, we completed the NexTier merger. Under the terms of the merger agreement, NexTier became our wholly-owned subsidiary. Each share of NexTier common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 0.752 shares of our common stock. Additionally, certain equity awards that were granted and outstanding under NexTier long-term incentive plans were assumed by us, and such equity awards were converted into equity awards in respect of our common stock in accordance with the merger agreement. NexTier is a predominately U.S. land-focused oilfield service provider, with a diverse set of well completion and production services across a variety of active basins. The total fair value of the consideration transferred was determined as follows (in thousands, except exchange ratio and stock price): Number of shares of NexTier common stock outstanding as of September 1, 2023 228,846 Multiplied by the exchange ratio 0.752 Number of shares of Patterson-UTI Energy, Inc. common stock issued in connection with the merger 172,092 Patterson-UTI Energy, Inc. common stock price on September 1, 2023 $ 14.91 Common stock equity consideration 2,565,895 Acceleration of RSU awards 1,997 Fair value of replacement equity awards (1) 70,416 NexTier long-term debt repaid by Patterson-UTI Energy, Inc. 161,000 Consideration transferred $ 2,799,308 (1) In connection with the merger, each of the share-based awards held by legacy NexTier employees were replaced with our share-based awards on the merger date. The fair value of the replacement awards has been allocated between each employee’s pre-combination and post-combination services. Amounts allocated to pre-combination services have been included as consideration transferred as part of the merger. See Note 12 for replacement awards details. The transaction has been accounted for as a business combination using the acquisition method with Patterson-UTI Energy, Inc. determined to be the acquirer. 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 aggregate purchase price noted above was allocated to the major categories of assets acquired and liabilities assumed based on preliminary estimated fair values as of the date of the business combination. We applied significant judgment in estimating the fair value of assets acquired and liabilities assumed, which involved the use of significant estimates and assumptions with respect to future rig counts, cash flow projections, estimated economic useful lives, operating and capital cost estimates, customer attrition rates, contributory asset charges, royalty rates and discount rate ( 14.0 %). The carrying amounts of cash and cash equivalents, accounts receivable, inventory, other assets, accounts payable, accrued liabilities, and other liabilities approximate their fair values due to their nature or the short-term maturity of instruments. The remaining assets acquired and liabilities assumed are based on inputs that are not observable in the market and thus represent Level 3 inputs. The fair value of property and equipment was determined using a combination of replacement cost and indirect cost. Intangible assets were valued using an income approach. The fair value was estimated by using multi-period excess earnings method for customer relationships and a relief from royalty method for trade name and developed technology. Certain data necessary to complete the purchase price allocation is not yet available, including final tax returns that provide the underlying tax basis of NexTier’s assets and liabilities. The measurement period adjustments in the fourth quarter of 2023 did not have a material impact on our consolidated financial statements. We will complete the purchase price allocation during the 12-month period following the acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the merger: Assets acquired: Cash and cash equivalents $ 95,815 Accounts receivable 420,200 Inventory 71,930 Property and equipment (1) 1,045,610 Intangible assets 768,000 Operating lease right of use asset 19,091 Finance lease right of use asset 50,733 Other assets 84,677 Total assets acquired 2,556,056 Liabilities assumed: Accounts payable 358,873 Accrued liabilities 129,535 Operating lease liability 19,091 Finance lease liability 50,733 Deferred tax liabilities 86,293 Long-term debt 22,533 Other liabilities 11,815 Total liabilities assumed 678,873 Net assets acquired 1,877,183 Goodwill 922,125 Total consideration transferred $ 2,799,308 (1) We recorded an adjustment of $ 262.7 million to write-up acquired property and equipment to estimated fair value. This adjustment will be depreciated on a straight-line basis over a weighted average period of six years. The goodwill recognized in the merger represents the excess of the gross consideration transferred over the fair value of the underlying net tangible and identifiable intangible assets acquired and liabilities assumed. Goodwill largely consisted of the expected synergies and economies of scale from the combined operations of Patterson-UTI Energy, Inc. and NexTier as well as the recognition of deferred taxes for the difference between the fair value of the assets acquired and liabilities assumed and the respective carry-over tax basis. The goodwill is not deductible for tax purposes. All of the goodwill was assigned to our completion services segment. See Note 7. Approximately $ 1.1 billion of revenues and $ 12.5 million of net income attributed to the NexTier merger are included in the consolidated statements of operations for the period from the closing date on September 1, 2023 through December 31, 2023 . During the twelve months ended December 31, 2023 , we incurred costs related to the NexTier merger totaling $ 92.5 million, which are included in our consolidated statements of operations as “Merger and integration expense.” 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) Customer relationships $ 540,000 10 Trade name 85,000 10 Developed technology 143,000 5 Intangible assets $ 768,000 Pro Forma The following pro forma condensed combined financial information was derived from our and NexTier's historical financial statements and gives effect to the acquisition as if it had occurred on January 1, 2022. 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 step up to fair value o f $ 720.7 million for acquired intangibles and $ 262.7 million for acquired property and equipment, (ii) removal of $ 17.7 million in 2023 and $ 30.0 million in 2022 of historical interest expense of the acquired entity and (iii) $ 15.1 million in 2023 and $ 72.7 million of tax benefit in 2022 relating to the aforementioned pro forma adjustments. The pro forma results of operations do not include any anticipated cost savings or other synergies that may result from the NexTier merger nor do they include any estimated costs that will be incurred to integrate NexTier operations. The pro forma results of operations include our merger and integration expense of $ 92.5 million as if they had been incurred in the first quarter of 2022. 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 NexTier merger taken place on January 1, 2022. 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): 2023 2022 (Unaudited) Revenues $ 6,604,824 $ 5,892,414 Net income $ 598,709 $ 196,220 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 3. Revenues ASC Topic 606 Revenue from Contracts with Customers Drilling Services and Completion Services — revenue is recognized based on our customers’ ability to benefit from our services in an amount that reflects the consideration we expect to receive in exchange for those services. This typically happens when the service is performed. The services we provide represent a series of distinct services, generally provided daily, that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period, generally measured in days, and our efforts in providing services are incurred relatively evenly over the period of performance, revenue is recognized as we provide services to the customer. ASC Topic 842 Revenue from Equipment Rentals Drilling Products Revenue — revenues are primarily generated from the rental of drilling equipment, comprised of drill bits and downhole tools. These arrangements provide the customer with the right to control the use of identified asset. Generally, the lease terms in such arrangements are for periods of two to three days and do not provide customers with options to purchase the underlying asset. Other — we are a non-operating working interest owner of oil and natural gas assets 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. 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 $ 900 million and $ 561 million as of December 31, 2023 and 2022, respectively. These balances do not include amounts related to our oil and natural gas working interests nor do they include amounts related to our lease revenues under Topic 842 as those contracts are excluded from Topic 606. Accounts receivable balances are included in “Accounts receivable” in our 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 reactivation or initial mobilization of newly constructed or upgraded rigs that were moved on location to the initial well site. These payments are allocated to the overall performance obligation and amortized over the initial term of the contract. Total contract liability balances were $ 103 million and $ 148 million as of December 31, 2023 and December 31, 2022, respectively. In 2023, we recognized $ 136 million of revenue that was included in the contract liability balance at the beginning of the period, of which the recognition of $ 28.9 million was due to deferred revenue from a customer prepayment, which became recognizable after the customer changed its drilling schedule. In 2022, we recognized $ 59.7 million of revenue that was included in the contract liability balance at the beginning of the period. Revenue related to our contract liabilities balance is expected to be recognized through 2026. The $ 98.9 million current portion of our contract liability balance is included in “Accrued liabilities” and $ 4.1 million noncurrent portion of our contract liability balance is included in “Other liabilities” in our 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. Remaining Performance Obligations We maintain a backlog of commitments for contract drilling services under term contracts, which we define as contracts with a duration of six months or more. Our contract drilling backlog in the United States as of December 31, 2023 was approximately $ 700 million. Approximately 16 % of our total contract drilling backlog in the United States at December 31, 2023 is reasonably expected to remain at December 31, 2024 . We generally calculate our backlog by multiplying the dayrate under our term drilling contracts by the number of days remaining under the contract. The calculation does not include any revenues related to fees for other services such as for mobilization, other than initial mobilization, demobilization and customer reimbursables, nor does it include potential reductions in rates for unscheduled standby or during periods in which the rig is moving or incurring maintenance and repair time in excess of what is permitted under the drilling contract. For contracts that contain variable dayrate pricing, our backlog calculation uses the dayrate in effect for periods where the dayrate is fixed, and, for periods that remain subject to variable pricing, uses commodity pricing or other related indices in effect at December 31, 2023 . In addition, our term drilling contracts are generally subject to termination by the customer on short notice and provide for an early termination payment to us in the event that the contract is terminated by the customer. For contracts on which we have received notice for the rig to be placed on standby, our backlog calculation uses the standby rate for the period over which we expect to receive the standby rate. For contracts on which we have received an early termination notice, our backlog calculation includes the early termination rate, instead of the dayrate, for the period over which we expect to receive the lower rate. Please see “Our current backlog of contract drilling revenue may decline and may not ultimately be realized, as fixed-term contracts may in certain instances be terminated without an early termination payment” included in Item 1A of this Report. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | . Inventory Inventory consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Raw materials and supplies $ 141,311 $ 63,008 Work-in-process 7,437 2,341 Finished goods 32,057 28 Inventory $ 180,805 $ 65,377 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Other Current Assets | 5. Other Current Assets Other current assets consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Federal and state income taxes receivable $ 26,949 $ 11,313 Workers’ compensation receivable 31,006 34,632 Prepaid expenses 46,394 11,960 Other 36,773 3,064 Other current assets $ 141,122 $ 60,969 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Equipment $ 8,506,727 $ 7,551,099 Oil and natural gas properties 238,337 236,156 Buildings 248,693 175,212 Rental equipment 119,653 — Land 38,811 23,610 Total property and equipment 9,152,221 7,986,077 Less accumulated depreciation, depletion, amortization and impairment ( 5,811,809 ) ( 5,725,501 ) Property and equipment, net $ 3,340,412 $ 2,260,576 Depreciation, depletion, amortization and impairment — The following table summarizes depreciation, depletion, amortization and impairment expense related to property and equipment and intangible assets for 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Depreciation and impairment expense $ 682,672 $ 472,969 $ 818,999 Amortization expense 41,521 2,891 24,606 Depletion expense 7,223 8,085 5,573 Total $ 731,416 $ 483,945 $ 849,178 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. There were no impairments in 2022 or 2023 . 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. We also periodically evaluate our other drilling service 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. There were no similar charges in 2022 or 2023. We also periodically evaluate our completion services 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 completion services 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. There were no similar charges in 2022 or 2023. We also periodically evaluate our drilling products 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. There have been no impairment charges recorded since the acquisition of these assets as part of the Ulterra acquisition in the third quarter of 2023. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill — We had no goodwill balance as of December 31, 2022. As a result of both the Ulterra acquisition and the NexTier merger in 2023, we recognized goodwill. Goodwill is evaluated at least annually on July 31, or more frequently when events and circumstances occur indicating recorded goodwill may be impaired. Goodwill is tested at the reporting unit level, which is at or one level below 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 that is the case, any necessary goodwill impairment is determined using a quantitative impairment test. 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. We determined our drilling products operating segment consists of a single reporting unit and, accordingly, goodwill acquired from the Ulterra acquisition was allocated to that reporting unit. We determined our completion services operating segment consists of two reporting units; completion services, which is primarily comprised of our hydraulic fracturing operations and other integrated service offerings, and cementing services. Goodwill Impairment Assessment During the fourth quarter of 2023, our share price experienced a sustained decline which resulted in a decrease to our market capitalization. This decline in share price was deemed a triggering event that warranted a quantitative assessment for goodwill impairment for all three of our reporting units. We estimated the fair value of the drilling products and the completion services reporting units using the income approach. Under this approach, we used a discounted cash flow model, which utilizes present values of cash flows to estimate fair value. Forecasted cash flows considered known market conditions as of December 31, 2023, and management's anticipated business outlook for each reporting unit. Future cash flows were projected based on estimates of revenue, gross profit, selling, general and administrative expense, changes in working capital, and capital expenditures. The terminal period used within the discounted cash flow model for each reporting unit consisted of a 1 % growth estimate. The future cash flows were discounted using a market-participant, risk-adjusted weighted average cost of capital of 10 % for the drilling products reporting unit and 12 % for the completion services reporting unit. We estimated the fair value of the cementing services reporting unit using a market approach. The market approach was based on trading multiples of companies comparable to the cementing services reporting unit. The forecast for the drilling products reporting unit assumes continued growth in international markets. Geopolitical instability in regions in which we expect to maintain and grow market share, a global decrease in the demand of drilling products, or other unforeseen macroeconomic considerations could negatively impact the key assumptions used in our goodwill assessment for our drilling products reporting unit. The forecast for the completion services reporting unit assumes activity in 2024 consistent with 2023 exit levels and moderate increases in activity of 3 % to 5 % beginning in 2025 and holding flat until the terminal period, which was consistent with rig count forecasts as of December 31, 2023. A sustained decrease in oil prices and rig count could negatively affect the key assumptions used in our goodwill assessment for completion services. Based on the results of the goodwill impairment tests, the fair values of the drilling products, completion services, and cementing services reporting units exceeded their carrying values by approximately 4 %, 11 %, and 80 %, respectively. Accordingly, no impairment was recorded for any of the reporting units. Goodwill by operating segment as of December 31, 2022 and 2023 and changes for the years then ended are as follows (in thousands): Completion Drilling Services Products Total Balance, December 31, 2022 $ — $ — $ — Goodwill acquired 921,656 451,341 1,372,997 Measurement period adjustment 469 6,275 6,744 Balance, December 31, 2023 $ 922,125 $ 457,616 $ 1,379,741 Intangible Assets — 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 Drilling Services, Completion Services and Drilling Products 11.1 Developed technology Drilling Services, Completion Services and Drilling Products 4.6 Trade name Completion Services and Drilling Products 9.7 Other Drilling Services and Completion Services 1.8 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. The gross carrying amount and accumulated amortization of intangible assets as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 786,715 $ ( 25,563 ) $ 761,152 $ 1,800 $ ( 1,071 ) $ 729 Developed technology 202,772 ( 16,435 ) 186,337 7,772 ( 3,773 ) 3,999 Trade name 101,000 ( 3,406 ) 97,594 — — — Other 7,345 ( 731 ) 6,614 1,450 ( 333 ) 1,117 Intangible assets, net $ 1,097,832 $ ( 46,135 ) $ 1,051,697 $ 11,022 $ ( 5,177 ) $ 5,845 Amortization and impairment expense on intangible assets of approximately $ 41.5 million, $ 1.3 million, and $ 24.0 million was recorded for the years ended December 31, 2023, 2022 and 2021 , respectively, which included an $ 11.4 million impairment in 2021. The remaining amortization expense associated with finite-lived intangible assets, excluding in-process software, is ex pected to be as follows (in thousands): Year ending December 31, 2024 $ 121,307 2025 121,039 2026 120,702 2027 120,674 2028 105,481 Thereafter 456,608 Total $ 1,045,811 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Salaries, wages, payroll taxes and benefits $ 129,982 $ 73,308 Workers’ compensation liability 67,396 67,853 Property, sales, use and other taxes 62,194 10,119 Insurance, other than workers’ compensation 11,524 3,644 Accrued interest payable 19,172 10,522 Deferred revenue 98,914 110,215 Federal and state income taxes payable 3,437 4,644 Accrued merger and integration expense 15,113 — Other 38,536 28,482 Accrued liabilities $ 446,268 $ 308,787 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following at December 31, 2023 and 2022 (in thousands): Effective Interest Rate December 31, 2023 December 31, 2022 3.95 % Senior Notes Due 2028 4.03 % 482,505 $ 488,505 5.15 % Senior Notes Due 2029 5.26 % 344,895 347,900 7.15 % Senior Notes Due 2033 7.28 % 400,000 — Equipment Loans Due 2025 5.25 % 18,686 — 1,246,086 836,405 Less deferred financing costs and discounts ( 8,919 ) ( 5,468 ) Less current portion ( 12,226 ) — Total 1,224,941 $ 830,937 Credit Agreement — On August 29, 2023, we entered into Amendment No. 4 to Amended and Restated Credit Agreement (the “Credit Agreement Amendment”), which amended our Amended and Restated Credit Agreement, dated as of March 27, 2018 (as amended, the “Credit Agreement”), by and among us, as borrower, Wells Fargo Bank, National Association, as administrative agent, letter of credit issuer, swing line lender and lender and each of the other letter of credit issuers and lenders party thereto. The Credit Agreement Amendment, among other things, (i) deemed certain outstanding letters of credit issued for the account of BEP Diamond Holdings Corp. (the entity we acquired in the Ulterra acquisition) with a face amount of $ 2.5 million to have been issued under the Credit Agreement and (ii) extended the maturity date for $ 85 million of revolving credit commitments of certain lenders under the Credit Agreement from March 27, 2025 to March 27, 2026 . As a result, of the $ 600 million of revolving credit commitments under the Credit Agreement, the maturity date for $ 501.7 million of such commitments is March 27, 2026 ; the maturity date for $ 48.3 million of such commitments is March 27, 2025 ; and the maturity date for the remaining $ 50 million of such commitments is March 27, 2024 . 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 $ 100 million and a swing line facility that, at any time outstanding, is limited to the lesser of $ 50 million and the amount of the swing line provider’s unused commitment. 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. Loans under the Credit Agreement bear interest by reference, at our election, to the SOFR rate (subject to a 0.10 % per annum adjustment) or base rate, in each case subject to a 0 % floor. The applicable margin on SOFR 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 on our credit rating. As of December 31, 2023, the applicable margin on SOFR 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 SOFR 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, which does not qualify for certain limited exceptions and is otherwise, in the aggregate with all other similar debt, in excess of Priority Debt (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 grant liens and on the ability of each of our non-guarantor subsidiaries to incur debt. 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 generally 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 both credit rating agencies. The Credit Agreement also requires that our total debt to capitalization ratio, expressed as a percentage, not exceed 50 % as of the last day of each fiscal quarter. 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, 2023. As of December 31, 2023, we had no borrowings outstanding under our revolving credit facility. We had $ 2.6 million in letters of credit outstanding under the Credit Agreement at December 31, 2023 and, as a result, had available borrowing capacity of approximately $ 597 million at that date. 2015 Reimbursement Agreement — On March 16, 2015, we entered into a Reimbursement Agreement (the “Reimbursement Agreement”) with The Bank of Nova Scotia (“Scotiabank”), pursuant to which we may from time to time request that Scotiabank issue an unspecified amount of letters of credit. As of December 31, 2023 , we had $ 87.7 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 of our letters of credit issued thereunder. 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 amou nts. A letter of credit fee is payable by us equal to 1.50 % times the amount of outstanding letters of credit. We have also agreed that if obligations under the Credit Agreement are secured by liens on any of our or our subsidiaries’ property, then our reimbursement obligations and (to the extent similar obligations would be secured under the Credit Agreement) other obligations under the Reimbursement Agreement and any letters of credit will be equally and ratably secured by all property subject to such liens securing the Credit Agreement. Pursuant to a Continuing Guaranty dated as of March 16, 2015, our payment obligations under the Reimbursement Agreement are jointly and severally guaranteed as to payment and not as to collection by our subsidiaries that from time to time guarantee payment under the Credit Agreement. None of our subsidiaries are currently required to guarantee payment under the Credit Agreement. 2028 Senior Notes, 2029 Senior Notes and 2033 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”). 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”). On September 13, 2023, we completed an offering of $ 400 million in aggregate principal amount of our 7.15 % Senior Notes due 2033 (the “2033 Notes”). The net proceeds before offering expenses from the offering of the 2033 Notes were approximately $ 396 million, which we used to repay amounts outstanding under our revolving credit facility. We pay interest on the 2028 Notes on February 1 and August 1 of each yea r. 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. We pay interest on the 2033 Notes on April 1 and October 1 of each year . The 2033 Notes will mature on October 1, 2033 . The 2033 Notes bear interest at a rate of 7.15 % per annum. The 2028 Notes, 2029 Notes and 2033 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, on August 15, 2029, in the case of the 2029 Notes, and on July 1, 2033, in the case of the 2033 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 applicable 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 applicable 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. Equipment Loans — As part of the NexTier merger, we assumed the obligations of NexTier Completions Solutions Inc. (“NCS”) under a Master Loan and Security Agreement (as amended, the “Master Agreement”) with Caterpillar Financial Services Corporation. The Master Agreement allows NCS to enter into secured equipment financing term loans from time to time (the “Equipment Loans”). The Equipment Loans may be drawn in multiple tranches, with each loan evidenced by a separate promissory note. The Master Agreement and the Equipment Loans contain customary affirmative and negative covenants, including limitations on further encumbrance of the collateral other than the applicable loans under the Master Agreement. We were in compliance with these covenants at December 31, 2023 . The Equipment Loans bear interest at a rate of 5.25 % per annum, and we pay interest on the 1 st of each month. The Equipment Loans will mature on June 1, 2025 . Drilling Products Letters of Credit — As part of the Ulterra merger, we assumed letters of credit of $ 2.5 million outstanding with financial institutions providing for short-term borrowing capacity, overdraft protection and bonding requirements. We maintain these letters of credit primarily for compliance with contractual obligations. These letters of credit expire annually at various times during the year and are typically renewed. As of December 31, 2023, no amounts had been drawn under the letters of credit. Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of December 31, 2023 (in thousands): Year ending December 31, 2024 $ 12,290 2025 6,396 2026 — 2027 — 2028 482,505 2029 344,895 Thereafter 400,000 Total $ 1,246,086 |
Commitments, Contingencies and
Commitments, Contingencies and Other Matters | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Matters | 10. Commitments, Contingencies and Other Matters Commitments – As of December 31, 2023 , we maintained letters of credit in the aggregate amount of $ 92.4 million primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses that could become payable under the terms of the underlying insurance contracts and compliance with contractual obligations. These letters of credit expire annually at various times during the year and are typically renewed. As of December 31, 2023, no amounts had been drawn under the letters of credit. As of December 31, 2023 , we had commitments to purchase major equipment totaling approximately $ 153 million. Our completion services segment has entered into agreements to purchase minimum quantities of proppants from certain vendors. We purchased $ 135 million, $ 93.0 million and $ 66.9 million of proppants under take-or-pay or similar agreements during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 , the remaining minimum obligation under these agreements was approximately $ 39.7 million, of which approximately $ 33.7 million, $ 4.0 million and $ 2.0 million relate to the remainder of 2024, 2025 and 2026, respectively. Contingencies – Our operations are subject to many hazards inherent in the businesses in which we operate, including inclement weather, blowouts, explosions, fires, loss of well control, motor vehicle accidents, equipment failure, unplanned power outages and surges, computer system disruptions or cybersecurity incidents, 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 we 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. In addition, we maintain insurance coverage of the types and in the amounts we believe to be customary in the industry, but we do not insure against all risks, either because insurance is not available or because it is not commercially justifiable. The insurances that we maintain include coverage 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 as well as insurance for other specific risks. We cannot assure that any insurance obtained by us will be adequate to cover any losses or liabilities nor can we assure that any insurance obtained by us will continue to be made available for purchase or made available on acceptable terms. 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 retain 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, and, for our automobile insurance coverage, a per occurrence deductible ranging from $ 2.0 million to $ 10.0 million. We also self-insure a number of risks, including loss of earnings and business interruption and most cybersecurity risks, and we 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, Chief Business Officer and General Counsel. 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 providing written notice 10 - 30 days, depending on the nature of the cause trigger, before the effective date of such termination and granting at least 10 - 20 days, depending on the nature of the cause trigger, 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, Chief Business Officer and General Counsel) 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 time-based equity, phantom equity and long-term cash incentive awards on the 60th day following the executive’s termination and will cause all performance-based equity, phantom equity and long-term cash incentive awards to continue in effect through the end of the applicable performance period and vest based on actual results as if the executive had remained employed through the end of the applicable performance period; 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, 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, Chief Business Officer and General Counsel) of subsidized benefits continuation coverage. Additionally, our Chief Business Officer is party to a letter agreement with us, which was entered into in connection with the closing of the NexTier merger. The letter agreement provides that, following the one-year anniversary of the closing of the NexTier merger, our Chief Business Officer will not have Good Reason (as defined in his Employment Agreement) to terminate his employment with us due to the transition of his role in connection with the NexTier merger and any resulting changes in his authority, duties or responsibilities. The letter agreement also provides a $ 2 million cash retention bonus, payable in eight quarterly installments following the closing of the NexTier merger, subject to our Chief Business Officer’s continued employment in good standing with us on each applicable payment date. Any unpaid portions of the retention bonus will become payable if our Chief Business Officer’s employment is terminated by us without cause or by our Chief Business Officer for Good Reason (unless, within six months of the closing of the NexTier merger, our Chief Business Officer resigns for Good Reason as a result of the transition of his role, in which case the full amount of the retention bonus will be forfeited with any previously paid portions offset against any severance amounts payable to our Chief Business Officer). |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | 11. Stockholders’ Equity Cash Dividend — On February 14, 2024 , our Board of Directors approved a cash dividend on our common stock in the amount of $ 0.08 per share to be paid on March 15, 2024 to holders of record as of March 1, 2024 . 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 to improve our financial flexibility and 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 — In September 2013, our Board of Directors approved a stock buyback program. In April 2023, our Board of Directors approved an increase of the authorization under the stock buyback program to allow for an aggregate of $ 300 million of future share repurchases. All purchases executed to date have been through open market transactions. Purchases under the buyback 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, 2023 , we had remaining authorization to purchase approximately $ 206 million of our outstanding common stock under the stock buyback program. In February 2024, our Board of Directors approved an increase of the authorization under the stock buyback program to allow for an aggregate of $ 1 billion of future share repurchases. Shares of stock purchased under the buyback program are held as treasury shares. We acquired shares of stock from employees during 2023, 2022 and 2021 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”), the NexTier Oilfield Solutions Inc. Equity and Incentive Award Plan and the NexTier Oilfield Solutions Inc. (Former C&J Energy) Management Incentive Plan, and not pursuant to the stock buyback program. Treasury stock acquisitions during the years ended December 31, 2023, 2022 and 2021 were as follows (dollars in thousands): 2023 2022 2021 Shares Cost Shares Cost Shares Cost Treasury shares at beginning of period 88,758,722 $ 1,453,079 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 Purchases pursuant to stock buyback program 14,086,229 168,631 3,254,599 57,173 — — Acquisitions pursuant to long-term incentive plan 2,735,060 35,965 1,372,101 23,237 451,196 3,727 Purchases in connection with Pioneer acquisition — — — — 275,477 2,601 Other — — 3,027 28 — — Treasury shares at end of period 105,580,011 $ 1,657,675 88,758,722 $ 1,453,079 84,128,995 $ 1,372,641 Release of Cumulative Translation Adjustment — In April 2022, we sold certain assets to substantially complete our exit from our Canadian operations. We used the Canadian dollar as our functional currency for our Canadian operations. Prior to the substantial completion of our exit, the effects of exchange rate changes were reflected in accumulated other comprehensive income, which is a separate component of stockholders’ equity. Upon substantial completion of our exit, we released the $ 7.7 million cumulative translation adjustment, net of tax of $ 3.8 million, from accumulated other comprehensive income into net income (loss) in the second quarter of 2022. The release resulted in an $ 11.5 million pre-tax gain, which was recorded in other operating income, net. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [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 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. We issue shares of common stock when vested stock options are exercised and after restricted stock units and share-settled performance unit awards vest. The 2021 Plan was originally approved by our stockholders on June 3, 2021. Subject to stockholder approval, our Board of Directors approved an amendment to the 2021 Plan to increase the number of shares available for issuance under the 2021 Plan by 5.445 million shares (the “First Amendment”). On June 8, 2023, our stockholders approved the First Amendment. On September 1, 2023, in connection with the NexTier merger, our Board of Directors approved a second amendment to the 2021 Plan (the “Second Amendment,” and together with the First Amendment, the “2021 Plan Amendments”) to assume approximately 10 million shares previously reserved for issuance under the NexTier Oilfield Solutions Inc. Equity and Incentive Award Plan (the “NexTier Plan”). Following the 2021 Plan Amendments, the aggregate number of shares of Common Stock authorized for grant under the 2021 Plan is approximately 29.0 million. On September 1, 2023, the Board of Directors also approved amendments to the NexTier Plan and the NexTier Oilfield Solutions Inc. (Former C&J Energy) Management Incentive Plan (the “Former C&J Energy Plan” and, together with the NexTier Plan, the “Assumed Plans”) to assume awards that were previously granted under the Assumed Plans (consisting of stock options, time- and performance-based restricted stock units and cash-settled performance unit awards), which, in connection with the NexTier merger, were converted into equity awards in respect of shares of Patterson-UTI Energy, Inc. common stock. The aggregate number of shares of Common Stock authorized for grant under the 2021 Plan is approximately 29.0 million, which includes approximately 4.9 million shares previously authorized for issuance under our 2014 Plan and approximately 10 million shares assumed from the NexTier merger. Our share-based compensation plans at December 31, 2023 are as follows: Shares Shares Underlying Shares Authorized Awards Available Plan Name for Grant Outstanding for Grant 2021 Plan 28,963,412 5,004,289 13,910,294 NexTier Plan — 2,660,633 — Former C&J Energy Plan — 789,337 — 2014 Plan — 2,571,965 — A summary of the 2021 Plan follows: • The Compensation Committee of the Board of Directors administers the 2021 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 2021 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 2021 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 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, 2023, 2022 and 2021. Stock option activity for the year ended December 31, 2023 follows: Weighted Average Shares Exercise Price Per Share Outstanding at beginning of year 2,905,150 $ 22.19 Assumed (1) 652,573 $ 27.97 Exercised — $ — Expired ( 692,500 ) $ 22.82 Outstanding at end of year 2,865,223 $ 23.36 Exercisable at end of year 2,865,223 $ 23.36 (1) Awards assumed in connection with the NexTier merger. All of these assumed awards had been previously granted by NexTier under the NexTier Plan or the Former C&J Energy Plan, in periods prior to the NexTier merger. Options outstanding and exercisable at December 31, 2023 have no intrinsic value and a weighted-average remaining contractual term of 1.69 years. Additional information with respect to options granted, vested and exercised during the years ended December 31, 2023, 2022 and 2021 follows (in thousands, except per share data): 2023 2022 2021 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 Aggregate intrinsic value of stock options exercised $ — $ 410 $ — As of December 31, 2023 , no options to purchase shares were outstanding and unvested. Restricted Stock Units (Equity Based) — 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, 2023 follows: Weighted Average Time Performance Grant Date Fair Based Based Value Per Share Non-vested restricted stock units outstanding at beginning of year 3,090,846 359,315 $ 12.71 Granted 1,840,861 165,276 $ 11.60 Assumed (1) 7,438,031 — $ 5.62 Vested ( 6,379,970 ) — $ 5.95 Forfeited ( 162,100 ) ( 3,058 ) $ 13.78 Non-vested restricted stock units outstanding at end of year 5,827,668 521,533 $ 10.60 (1) Awards assumed in connection with the NexTier merger. All of these assumed awards had been previously granted by NexTier under the NexTier Plan or the Former C&J Energy Plan, in periods prior to the NexTier merger. As of December 31, 2023 , approximately 6.1 million non-vested restricted stock units outstanding are expected to vest. Additional information as of December 31, 2023 with respect to these non-vested restricted stock units follows (dollars in thousands): Aggregate intrinsic value $ 65,937 Weighted-average remaining vesting period 1.63 years Unrecognized compensation cost $ 51,434 Restricted Stock Units (Liability Based) — We converted NexTier’s cash-settled performance based units into our cash-settled restricted stock units in connection with the NexTier merger. These awards are accounted for as liability classified awards and remeasured at fair value at each reporting period. Compensation expense is recorded over the vesting period and is initially based on the fair value at the award conversion date. Compensation expense is subsequently remeasured at each reporting date during the vesting period based on the change in our stock price. Dividend cash equivalents are not paid on cash-settled units. As of December 31, 2023, $ 2.4 and $ 6.2 million are included in “Accrued Liabilities” and “Other Liabilities” in our consolidated balance sheets, respectively. We recognized $ 5.0 million of compensation expense for these awards during the year ended December 31, 2023. 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 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 and April 2022, the peer group includes three market indices and one market index, respectively. The performance 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. The recipients will receive the target number of shares if our total shareholder return during the performance period, when compared to the peer group, is at the 55th percentile. If our total shareholder return during the performance period, when compared to the peer group, is at the 75th percentile or higher, then the recipients will receive two times the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is at the 25th percentile, then the recipients will only receive one-half of the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is between the 25th and 55th percentile, or the 55th and 75th percentile, then the shares to be received by the recipients will be determined using linear interpolation for levels of achievement between these points. The payout under the Performance Units may not exceed the target number of shares if our absolute total shareholder return is negative or zero. The total target number of shares granted with respect to the Performance Units for the years 2018-2023 is set forth below: 2023 2022 2021 2020 2019 2018 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 631,700 414,000 843,000 500,500 489,800 310,700 In April 2021, 621,400 shares were issued to settle the 2018 Performance Units. In April 2022, 979,600 shares were issued to settle the 2019 Performance Units. In May 2023, 1,001,000 shares were issued to settle the 2020 Performance Units. The Performance Units granted in 2021, 2022 and 2023 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): 2023 2022 2021 2020 2019 2018 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 $ 8,440 $ 10,743 $ 7,225 $ 826 $ 9,958 $ 8,004 The weighted-average fair value calculations for performance units granted during the years ended December 31, 2023, 2022 and 2021 were based on the following weighted-average assumptions set forth below: 2023 2022 2021 Risk-free interest rate (1) 3.6 % 2.9 % 0.4 % Expected stock volatility (2) 72.1 % 86.5 % 83.2 % Expected dividend yield (3) 3.0 % 1.0 % 1.3 % Expected term (in years) 3 3 3 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a three-year period . (3) Expected dividend yield is based on the annualized dividend in effect on the measurement date and the stock price on the grant date. 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): 2023 2022 2021 2020 2019 2018 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Year ended December 31, 2023 $ 2,248 $ 3,749 $ 2,426 $ 69 NA NA Year ended December 31, 2022 NA $ 2,686 $ 2,408 $ 275 $ 830 NA Year ended December 31, 2021 NA NA $ 1,806 $ 275 $ 3,319 $ 667 As of December 31, 2023 , we had unrecognized compensation cost of $ 11.1 million related to our unvested Performance Units. The weighted-average remaining vesting period for these unvested Performance Units was 1.13 years as of December 31, 2023. Dividends on Equity Awards – Dividend equivalents are paid or accrued on certain restricted stock units. These dividends are recognized as reductions of retained earnings for the portion of restricted stock units expected to 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 could 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 applied to the Performance Units granted in April 2020. The Phantom Units settled in May 2023, with a cash payment of $ 7.4 million. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 13. Leases ASC Topic 842 Leases We acquired $ 7.5 million and $ 19.1 million of operating leases for operating locations, corporate offices, certain operating equipment and light duty vehicles primarily related to the Ulterra acquisition and NexTier merger, respectively. We acquired $ 5.2 million and $ 50.7 million of finance leases for light duty vehicles and certain operating equipment related to the Ulterra acquisition and NexTier merger, respectively. Operating leases have remaining lease terms of approximately one month to ten years as of December 31, 2023, and finance leases have remaining lease terms of approximately one month to six years as of December 31, 2023. Lease expense consisted of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 10,073 $ 5,664 $ 4,984 Finance lease cost: Amortization of right-of-use assets 6,360 — — Interest on lease liabilities 1,395 — — Total finance lease cost 7,755 — — Short-term lease expense (1) 2,278 — 41 Total lease expense (2) $ 20,106 $ 5,664 $ 5,025 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. (2) Total lease expense is recorded in operating costs for the respective segments and within “ selling, general and administrative ” in our consolidated statements of operations. Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,935 $ 6,858 $ 7,323 Operating cash flows from finance leases 1,380 — — Financing cash flows from finance leases 15,915 — — Right of use assets obtained in exchange for lease obligations: Operating leases (1) $ 34,802 $ 6,530 $ 6,413 Finance leases (1) 73,245 — — (1) Includes right of use assets acquired in business combinations. Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows: December 31, 2023 December 31, 2022 Weighted Average Remaining Lease Term: Operating leases 5.0 years 6.1 years Finance leases 1.5 years N/A Weighted Average Discount Rate: Operating leases 6.1 % 4.1 % Finance leases 7.3 % N/A Maturities of operating and finance lease liabilities as of December 31, 2023 are as follows (in thousands): Year ending December 31, Operating Finance 2024 $ 16,435 $ 46,297 2025 12,975 4,842 2026 9,387 4,850 2027 7,130 1,485 2028 4,975 1,485 Thereafter 9,354 2,080 Total lease payments 60,256 61,039 Less imputed interest ( 8,867 ) ( 4,106 ) Total $ 51,389 $ 56,933 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Income before income taxes for the United States for the year ended December 31, 2023 was $ 315 million. Income before income taxes for the United States for the year ended December 31, 2022 was $ 166 million. Loss before income taxes for the United States for the year ended December 31, 2021 was $ 721 million. Loss before income taxes for non-U.S. jurisdictions for the year ended December 31, 2023 was $ 8.8 million. Income before income taxes for non-U.S. jurisdictions for the years ended December 31, 2022 and 2021 was $ 2 million and $ 0.9 million, respectively. Components of the income tax provision applicable to federal, state and foreign income taxes for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands): 2023 2022 2021 Federal income tax expense (benefit): Current $ — $ 480 $ — Deferred 44,369 11,820 ( 86,878 ) 44,369 12,300 ( 86,878 ) State income tax expense (benefit): Current 7,002 2,647 144 Deferred 11,279 ( 4,896 ) 23,028 18,281 ( 2,249 ) 23,172 Foreign income tax expense (benefit): Current 1,578 2,750 134 Deferred ( 3,076 ) 403 870 ( 1,498 ) 3,153 1,004 Total income tax expense (benefit): Current 8,580 5,877 278 Deferred 52,572 7,327 ( 62,980 ) Total income tax expense (benefit) $ 61,152 $ 13,204 $ ( 62,702 ) The difference between the statutory U.S. federal income tax rate and the effective income tax rate for the years ended December 31, 2023, 2022 and 2021 is summarized as follows: 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of the federal income tax benefit 3.2 3.0 3.0 State deferred tax remeasurement ( 0.3 ) 9.4 ( 0.8 ) Valuation allowance ( 9.2 ) ( 33.4 ) ( 13.3 ) U.S. impact of foreign operations — 1.3 — Acquisition related costs 1.1 — — Effect of foreign taxes 0.1 1.6 ( 0.1 ) Non-deductible compensation 1.8 4.3 ( 0.3 ) Share-based compensation 1.6 ( 1.9 ) ( 0.3 ) Non-deductible expenses 0.7 1.2 ( 0.2 ) Other differences, net ( 0.1 ) 1.4 ( 0.3 ) Effective tax rate 19.9 % 7.9 % 8.7 % Our effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, changes in valuation allowances, and the impacts of various other permanent adjustments. The ability to recognize a portion of our U.S. federal and state net operating losses resulted in a significant impact, through changes in valuation allowances, in our effective tax rate for the year ended December 31, 2023. This benefit was partly offset by state and local income taxes and various other permanent adjustments. The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 498,948 $ 382,936 Tax credits 13,488 4,222 Expense associated with stock options and restricted stock 10,892 8,178 Workers’ compensation allowance 7,024 15,770 Other deferred tax asset 69,480 25,020 599,832 436,126 Less: Allowance to reduce deferred tax asset to expected realizable value ( 75,250 ) ( 91,685 ) Total deferred tax assets 524,582 344,441 Deferred tax liabilities: Property and equipment basis difference ( 729,376 ) ( 355,129 ) Other ( 39,386 ) ( 14,840 ) Total deferred tax liabilities ( 768,762 ) ( 369,969 ) Net deferred tax liability $ ( 244,180 ) $ ( 25,528 ) 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. During 2023, we reduced the valuation allowance against our net deferred tax assets by $ 16.4 million, which primarily related to U.S. federal and state activity. For income tax purposes, we had approximately $ 1.9 billion of gross U.S. federal net operating losses, approximately $ 62.3 million of gross Canadian net operating losses, approximately $ 22.6 million of gross Colombian net operating losses and approximately $ 1.1 billion of post-apportionment U.S. state net operating losses as of December 31, 2023, before valuation allowances. The majority of U.S. federal net operating losses will expire in varying amounts, if unused, between 2030 and 2037 . U.S. 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 2043 . Colombian net operating losses will expire in varying amounts, if unused, between 2028 and 2032 . U.S. state net operating losses will expire in varying amounts, if unused, between 2024 and 2043 . As of December 31, 2023, we have not recognized any liabilities associated with 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, 2023, the tax years ended December 31, 2010 through December 31, 2022 are open for examination by U.S. taxing authorities. As of December 31, 2023, the tax years ended December 31, 2015 through December 31, 2022 are open for examination by Canadian taxing authorities. As of December 31, 2023, the tax years ended December 31, 2017 through December 31, 2022 are open for examination by Colombian taxing authorities. We continue to monitor income tax developments, including OECD Pillar 2 legislation, 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share We provide a dual presentation of our net income (loss) per common share in our consolidated statements of operations: basic net income (loss) per common share (“Basic EPS”) and diluted net income (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 and non-vested performance units and restricted stock units. The dilutive effect of stock options, non-vested performance units and non-vested restricted stock units is determined using the treasury stock method. The following table presents information necessary to calculate net income (loss) per share for the years ended December 31, 2023, 2022 and 2021, 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): 2023 2022 2021 BASIC EPS: Net income (loss) from continuing operations attributed to common stockholders $ 246,292 $ 154,658 $ ( 657,079 ) Net income from discontinued operations attributed to common stockholders $ — $ — $ 2,534 Net income (loss) attributed to common stockholders $ 246,292 $ 154,658 $ ( 654,545 ) Weighted average number of common shares outstanding, excluding 279,501 215,935 195,021 Basic income (loss) from continuing operations per common share $ 0.88 $ 0.72 $ ( 3.37 ) Basic income from discontinued operations per common share $ — $ — $ 0.01 Basic net income (loss) per common share $ 0.88 $ 0.72 $ ( 3.36 ) DILUTED EPS: Net income (loss) from continuing operations attributed to common stockholders $ 246,292 $ 154,658 $ ( 657,079 ) Net income from discontinued operations attributed to common stockholders $ — $ — $ 2,534 Net income (loss) attributed to common stockholders $ 246,292 $ 154,658 $ ( 654,545 ) Weighted average number of common shares outstanding, excluding 280,061 219,496 195,021 Diluted income (loss) from continuing operations per common share $ 0.88 $ 0.70 $ ( 3.37 ) Diluted income from discontinued operations per common share $ — $ — $ 0.01 Diluted net income (loss) per common share $ 0.88 $ 0.70 $ ( 3.36 ) Potentially dilutive securities excluded as anti-dilutive 9,214 3,541 9,551 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 16. Employee Benefits We maintain a 401(k) plan for all eligible employees. Our operating results include expenses of approximately $ 18.7 million in 2023 , $ 11.0 million in 2022 and $ 7.6 million in 2021 for our contributions to the plan. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | 17. Business Segments Effective as of the third quarter of 2023, we revised our reportable segments to align with certain changes in how our CODM manages and allocates resources to our business as a result of the Ulterra acquisition and NexTier merger. Accordingly, we now have the following reportable business segments: (i) drilling services, (ii) completion services, and (iii) drilling products. As a result of the revised reportable segment structure, we have restated the corresponding items of segment information for all periods presented. Drilling Services — represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses. Completion Services — represents the combination of our well completion business, which includes hydraulic fracturing, wireline and pumping, completion support, cementing and our legacy pressure pumping business. Drilling Products — represents our manufacturing and distribution of drill bits business, which was acquired with our acquisition of Ulterra on August 14, 2023. Property and equipment, net and revenue for our domestic and international operations for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Property and equipment, net: United States $ 3,257,937 $ 2,213,242 $ 2,292,448 Colombia 48,434 47,334 39,307 International (Excluding Colombia) 34,041 — — Property and equipment, net $ 3,340,412 $ 2,260,576 $ 2,331,755 Revenue: United States $ 4,057,212 $ 2,577,471 $ 1,341,330 Colombia 50,692 70,121 15,751 International (Excluding Colombia) 38,552 — — Total revenues $ 4,146,456 $ 2,647,592 $ 1,357,081 Major Customer — During 2023 , one customer accounted for approximately $ 588 million or 14 % of our consolidated operating revenues. These revenues were earned in the drilling services, completion services, and drilling products businesses. During 2022, one customer accounted for approximately $ 476 million or 18 % of our consolidated operating revenues. These revenues were earned in both drilling services and completion services businesses. During 2021, one customer accounted for approximately $ 216 million or 16 % of our consolidated operating revenues. These revenues were earned in both drilling services and completion services businesses. The following tables summarize selected financial information relating to our business segments (in thousands): Year Ended December 31, 2023 2022 2021 Revenues: Drilling Services $ 1,976,401 $ 1,581,380 $ 805,295 Completion Services 2,017,440 1,022,413 523,756 Drilling Products 134,679 — — Other (1) 79,058 81,966 49,703 Elimination of intercompany revenues - Drilling Services (2) ( 56,642 ) ( 36,560 ) ( 21,077 ) Elimination of intercompany revenues - Other (2) ( 4,480 ) ( 1,607 ) ( 596 ) Total revenues $ 4,146,456 $ 2,647,592 $ 1,357,081 Segment operating income (loss) (3) and reconciliation to income (loss) before income taxes: Drilling Services $ 422,002 $ 149,807 $ ( 465,053 ) Completion Services 140,220 134,103 ( 118,863 ) Drilling Products ( 6,501 ) — — Total segment operating income (loss) (3) 555,721 283,910 ( 583,916 ) Other 2,829 13,776 ( 3,182 ) Corporate ( 205,754 ) ( 86,655 ) ( 92,152 ) Credit loss expense ( 842 ) — 1,500 Interest income 6,122 360 222 Interest expense ( 52,870 ) ( 40,256 ) ( 41,978 ) Other 1,898 ( 3,273 ) ( 275 ) Income (loss) before income taxes $ 307,104 $ 167,862 $ ( 719,781 ) Depreciation, depletion, amortization and impairment: Drilling Services $ 364,312 $ 354,116 $ 660,402 Completion Services 283,230 98,162 159,305 Drilling Products 48,467 — — Other 28,237 26,496 23,612 Corporate 7,170 5,171 5,859 Total depreciation, depletion, amortization and impairment $ 731,416 $ 483,945 $ 849,178 Capital expenditures: Drilling Services $ 334,780 $ 272,521 $ 118,496 Completion Services 214,746 137,935 34,676 Drilling Products 24,572 — — Other 24,645 25,215 11,627 Corporate 16,947 1,126 1,521 Total capital expenditures $ 615,690 $ 436,797 $ 166,320 Identifiable assets: Drilling Services $ 2,368,604 $ 2,348,177 $ 2,279,952 Completion Services 3,835,699 541,975 458,202 Drilling Products 1,011,870 — — Other 59,221 64,018 62,766 Corporate (4) 144,637 189,653 156,928 Total assets $ 7,420,031 $ 3,143,823 $ 2,957,848 (1) Other includes our oilfield rentals business and oil and natural gas working interests . (2) Intercompany revenues consist of revenues from drilling services provided to our other operations, and revenues from other operations for services provided to drilling services, completion services and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation . (3) Segment operating income (loss) is our measure of segment profitability. It is defined as revenue less operating expenses, selling, general and administrative e xpenses, depreciation, amortization and impairment expenses and other operating income (loss). (4) Corporate assets primarily include cash on hand and certain property and equipment . |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 18. 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, 2023 and 2022 is set forth below (in thousands): December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes Due 2028 $ 482,505 $ 450,540 $ 488,505 $ 431,556 5.15% Senior Notes Due 2029 344,895 329,032 347,900 313,164 7.15% Senior Notes Due 2033 400,000 424,946 — — Equipment Loans Due 2025 18,686 18,766 — — Total debt $ 1,246,086 $ 1,223,284 $ 836,405 $ 744,720 The fair values of the 2028 Notes, the 2029 Notes and the 2033 Notes at December 31, 2023 and December 31, 2022 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 value of the Equipment Loans is based on 5.25 %, which is considered Level 2 fair value estimates in the fair value hierarchy of fair value accounting. The fair values of the 2028 Notes implied a 5.79 % market rate of interest at December 31, 2023 and a 6.69 % market rate of interest at December 31, 2022, based on their quoted market prices. The fair values of the 2029 Notes implied a 6.10 % market rate of interest at December 31, 2023 and a 7.01 % market rate of interest at December 31, 2022, based on their quoted market prices. The fair values of the 2033 Notes implied a 6.28 % market rate of interest at December 31, 2023, based on their quoted market price. The fair value of the Equipment Loans implied a 5.36 % market rate of interest at December 31, 2023, based on their benchmark yield. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | S CHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Additions and adjustments Beginning Charged to Costs Charged to Ending Description Balance and Expenses Other Accounts Deductions Balance (In thousands) Year Ended December 31, 2023 Allowance for credit losses $ 2,875 $ 842 $ 43 $ ( 270 ) (1) $ 3,490 Deferred tax valuation allowance 91,685 — 13,677 ( 30,112 ) 75,250 Year Ended December 31, 2022 Allowance for credit losses $ 8,493 $ — $ — $ ( 5,618 ) (1) $ 2,875 Deferred tax valuation allowance 189,737 — — ( 98,052 ) 91,685 Year Ended December 31, 2021 Allowance for credit losses $ 10,842 $ ( 1,500 ) $ — $ ( 849 ) (1) $ 8,493 Deferred tax valuation allowance 19,133 95,732 95,393 ( 20,521 ) 189,737 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, 2023 | |
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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates |
Cash and cash equivalents | Cash and cash equivalents — Cash equivalents are highly liquid, short-term investments with original maturities of three months or less from their date of purchase. |
Restricted cash | Restricted cash — Restricted cash includes amounts restricted as cash collateral for the issuance of standby letters of credit. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheet that sum to the total of such amounts shown in the statement of cash flows for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Cash and cash equivalents $ 190,108 $ 137,553 Restricted cash 2,572 — Total cash, cash equivalents and restricted cash $ 192,680 $ 137,553 |
Revenue Recognition | Revenue recognition — Revenues from our drilling services, completion services, drilling products, and other activities are recognized as services are performed. All of the wells we drilled in 2023, 2022 and 2021 were drilled under daywork contracts. 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. As a result of the Ulterra acquisition, our revenues now include a significant amount of rental revenue included within the new “Drilling products” segment. See Note 3 for details |
Goodwill | Goodwill — As a result of both the Ulterra acquisition and the NexTier merger, we have recognized goodwill. Goodwill from acquisitions is recorded as the excess of the consideration transferred plus the fair value of any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. Goodwill is considered to have an indefinite useful economic life and is not amortized. We assess impairment of goodwill at least annually, as of July 31, or on an interim basis if events or circumstances indicate that the fair value of goodwill may have decreased below its carrying value. If the carrying value of a reporting unit exceeds its fair value, we would recognize an impairment in an amount equal to the excess, limited to the total amount of goodwill allocated to the reporting unit. See Note 7 for details. |
Leases | Leases — We have operating leases for operating locations, corporate offices and certain operating equipment. We determine if a contract contains a lease at inception or as a result of an acquisition. A right-of-use asset and corresponding lease liability are recognized on our consolidated balance sheet at commencement at an amount based on the present value of the remaining lease payments over the lease term. 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. By our policy election, right-of-use assets and lease liabilities with an initial term of one year or less are not recognized for leasing arrangements, and non-lease and lease components are treated as a single lease component instead of bifurcating those components. Lease expense is recognized on a straight-line basis. If available, we use the rate implicit in the lease at commencement date to discount the lease payments. 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 third quarter of 2023, as part of the Ulterra acquisition and the NexTier merger, we acquired operating and finance leases. We inherited NexTier’s and Ulterra’s lease classifications as of the time of each respective acquisition. We have elected as an accounting policy election by class of underlying assets to not recognize assets or liabilities at the acquisition date for leases that had a remaining lease term of twelve months or less. See Notes 2 and 13 for details. For finance leases, we amortize the right-of-use asset on a straight-line basis over the earlier of the useful life of the right-of-use asset or the end of the lease term and record this amortization in depreciation and amortization expense in the consolidated statements of operations. If available, we use the rate implicit in the lease at commencement date to discount the lease payments. If the implicit rate is not available, 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. We include the term of any renewal option for the right-of-use asset and lease liability if it is reasonably certain that we will exercise the option. We also include the term of any termination option for the right-of-use asset and lease liability if it is not reasonably certain we will exercise the option. By our policy election, right-of-use assets and lease liabilities with an initial term of one year or less are not recognized for leasing arrangements, and non-lease and lease components are treated as a single lease component instead of bifurcating those components. For finance leases where we have determined we are reasonably certain to exercise a purchase option to acquire the underlying asset, we amortize the right-of-use asset over the lease term and record this amortization in “Depreciation, depletion, amortization and impairment” in the consolidated statements of operations. We adjust the lease liability to reflect lease payments made during the period and interest incurred on the lease liability using the effective interest method. The incurred interest expense is recorded in “Interest expense” in the consolidated statements of operations. |
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. 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 completion services activities, materials used in our equipment servicing business, spare parts for drilling services and raw materials for drilling products. Such inventories are stated at the lower of cost or net realizable value. As inventory is consumed, expense is recorded in direct operating cost in the consolidated statements of operations using the weighted average cost method for non-manufacturing inventory and standard cost method for manufacturing inventory. We periodically review the nature and quantities of inventory on hand and evaluate the net realizable value of items based on historical usage patterns, known changes to equipment or processes and customer demand for specific products. Provision for excess or obsolete inventories is determined based on historical usage of inventory on-hand, volume on-hand versus anticipated usage, technological advances and consideration of current market conditions. Inventories that have not turned over for more than a year are subject to slow-moving reserve provisions. In addition, inventories that have become obsolete due to technological advances, excess volume on-hand or are no longer configured to operate with our equipment are written off. |
Other Current Assets | Other current assets — Other current assets include reimbursement from our workers compensation insurance carrier for claims in excess of our deductible in the amount of $ 31.0 million and $ 34.6 million at December 31, 2023 and 2022, respectively. We also maintain prepayments for items such as insurance, rent and inventory. |
Long-lived assets with definite lives | Long-lived assets with definite lives — Property and equipment and definite-lived intangible assets are carried at cost less accumulated depreciation, amortization, depletion and impairment. Depreciation and amortization is recorded on the straight-line method over the estimated useful lives. The method of depreciation does not change whenever property and equipment become idle. The estimated useful lives are shown below: Useful Lives Equipment 1 - 25 years Rental equipment 4 - 8 runs Buildings and leasehold improvements 1 - 30 years Other 3 - 20 years Amortization of definite-lived intangible assets is calculated on the straight-lined method over the estimated useful lives of the assets, which range from 3 to 15 years. Long-lived assets with definite lives, including property and equipment and certain intangible assets, are evaluated 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”). Assets are grouped at the lowest level at which identifiable cash flows are largely independent of other asset groupings for impairment assessment. If there is a triggering event, we estimate future cash flows over the life of the respective assets or asset groupings in our assessment of its recoverability. 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. If estimated undiscounted cash flows expected to result from the use and eventual disposition of an asset or asset group is less than its respective carrying amount, an impairment loss is recognized in the amount by which the carrying amount exceeds its estimated fair value. |
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 our consolidated statements 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 $ 7.0 million, $ 4.5 million and $ 1.3 million was recorded for the years ended December 31, 2023, 2022 and 2021 , 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, as described in Note 12. |
Concentration of Credit Risk | Concentration of Credit Risk — Our assets that are potentially subject to concentrations of credit risk are cash, cash equivalents and restricted cash and trade accounts receivable. Cash balances are maintained in financial institutions, which at times exceed federally insured limits. We monitor the financial condition of the financial institutions in which accounts are maintained and has not experienced any losses in such accounts. We maintain an allowance for credit losses based upon several factors, including historical collection experience, current aging status of the customer accounts and financial condition of our customers. There were no material changes in the allowance for credit losses in 2023 and 2022. |
Change in Accounting Estimate | Change in Accounting Estimate — In the third quarter of 2023, we changed the estimated useful lives of certain property and equipment within our completion services segment. The change in the estimated useful lives was necessitated by recent trends in increased intensity and pumping hours per day of certain components used in servicing larger jobs. We determined the estimated useful life of fluid ends is now less than one year, which results in these components no longer being capitalized to property and equipment but instead recorded to inventory and expensed as direct operating costs as they are consumed. Additionally, we shortened the estimated useful lives of certain other completion components that remain in property and equipment, which resulted in a decrease in the weighted average estimated useful lives of these assets from nine years to seven years. The effect of our change in estimated useful lives of these assets was a decrease in operating income of $ 30.7 million and a decrease in net income of $ 24.3 million for the year ended December 31, 2023, which resulted in a decrease in basic and diluted earnings per share of $ 0.09 and $ 0.09 per share, respectively. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards — In October 2021, 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 adopted this new guidance on January 1, 2023, 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. In December 2022, the FASB issued an update, which deferred the sunset date to December 31, 2024. We do not expect this new guidance will have a material impact on our consolidated financial statements. In November 2023, the FASB issued an accounting standards update to improve reportable segment disclosure requirements and enhance disclosures about significant segment expenses. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. We are currently evaluating the effect of this pronouncement on our disclosures. In December 2023, the FASB issued an accounting standards update to improve income tax disclosure requirements. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2024 and should be applied prospectively. We are currently evaluating the effect of this pronouncement on our disclosures. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Restricted cash | The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheet that sum to the total of such amounts shown in the statement of cash flows for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 2022 Cash and cash equivalents $ 190,108 $ 137,553 Restricted cash 2,572 — Total cash, cash equivalents and restricted cash $ 192,680 $ 137,553 |
Estimated Useful Lives of Property and Equipment | The method of depreciation does not change whenever property and equipment become idle. The estimated useful lives are shown below: Useful Lives Equipment 1 - 25 years Rental equipment 4 - 8 runs Buildings and leasehold improvements 1 - 30 years Other 3 - 20 years |
Acquisitions and Discontinued_2
Acquisitions and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions And Discontinued Operations [Line Items] | |
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 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 |
Pioneer Energy Services Corp [Member] | |
Acquisitions And Discontinued Operations [Line Items] | |
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 (Unaudited) Revenues $ 1,464,351 Net loss $ ( 666,032 ) |
Ulterra Drilling Technologies, L.P. [Member] | |
Acquisitions And Discontinued Operations [Line Items] | |
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 Ulterra 34,900 Our common stock price on August 14, 2023 $ 14.94 Common stock equity consideration $ 521,406 Plus net cash consideration (1) 375,740 Total consideration transferred $ 897,146 Net cash consideration inclu ded $ 370 million cas h consideration as adjusted for customary purchase price adjustments set forth in the Ulterra merger agreement relating to cash, net working capital, indebtedness and transaction expenses of Ulterra as of the closing. The adjustment is subject to a post-closing target net working capital adjustment in accordance with the Ulterra merger agreement. |
Schedule of Total Purchase Price of Assets Acquired and Liabilities Assumed Based on Fair Value | Assets acquired: Cash and cash equivalents $ 18,426 Accounts receivable 68,467 Inventory (1) 36,313 Rental equipment (2) 109,055 Property and equipment 27,583 Intangible assets 313,000 Operating lease right of use asset 7,513 Finance lease right of use asset 5,228 Other assets 14,274 Total assets acquired 599,859 Liabilities assumed: Accounts payable 23,258 Accrued liabilities 31,608 Operating lease liability 7,513 Finance lease liability 5,228 Deferred tax liabilities 83,993 Total liabilities assumed 151,600 Less: noncontrolling interest ( 8,729 ) Net assets acquired 439,530 Goodwill 457,616 Total consideration transferred $ 897,146 (1) We recorded an adjustmen t of $ 5.5 million to write-up acquired drill bits classified as inventory to estimated fair value. This adjustment will be recorded as direct operating expense as acquired drill bits are sold. We recorded an adjustment of $ 74.4 millio n to write-up acquired drill bits classified as long-lived assets to estimated fair value. This adjustment will be depreciated as acquired drill bits are rented over a weighted-average estimated useful lif e of 7.5 run s. |
Schedule of Fair Value Consideration Transferred 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) Customer relationships $ 245,000 15 Trade name 16,000 11 Developed technology 52,000 5 Intangible assets $ 313,000 |
Schedule of Pro Forma Information | The following table summarizes our selected financial information on a pro forma basis (in thousands, except per share data): 2023 2022 (Unaudited) Revenues $ 4,369,596 $ 3,017,778 Net income $ 190,136 $ 141,458 |
NexTier Oilfield Solutions Inc. [Member] | |
Acquisitions And Discontinued Operations [Line Items] | |
Schedule of Fair Value of Consideration Transferred | The total fair value of the consideration transferred was determined as follows (in thousands, except exchange ratio and stock price): Number of shares of NexTier common stock outstanding as of September 1, 2023 228,846 Multiplied by the exchange ratio 0.752 Number of shares of Patterson-UTI Energy, Inc. common stock issued in connection with the merger 172,092 Patterson-UTI Energy, Inc. common stock price on September 1, 2023 $ 14.91 Common stock equity consideration 2,565,895 Acceleration of RSU awards 1,997 Fair value of replacement equity awards (1) 70,416 NexTier long-term debt repaid by Patterson-UTI Energy, Inc. 161,000 Consideration transferred $ 2,799,308 (1) In connection with the merger, each of the share-based awards held by legacy NexTier employees were replaced with our share-based awards on the merger date. The fair value of the replacement awards has been allocated between each employee’s pre-combination and post-combination services. Amounts allocated to pre-combination services have been included as consideration transferred as part of the merger. See Note 12 for replacement awards details. |
Schedule of Total Purchase Price of Assets Acquired and Liabilities Assumed Based on Fair Value | Assets acquired: Cash and cash equivalents $ 95,815 Accounts receivable 420,200 Inventory 71,930 Property and equipment (1) 1,045,610 Intangible assets 768,000 Operating lease right of use asset 19,091 Finance lease right of use asset 50,733 Other assets 84,677 Total assets acquired 2,556,056 Liabilities assumed: Accounts payable 358,873 Accrued liabilities 129,535 Operating lease liability 19,091 Finance lease liability 50,733 Deferred tax liabilities 86,293 Long-term debt 22,533 Other liabilities 11,815 Total liabilities assumed 678,873 Net assets acquired 1,877,183 Goodwill 922,125 Total consideration transferred $ 2,799,308 We recorded an adjustment of $ 262.7 million to write-up acquired property and equipment to estimated fair value. This adjustment will be depreciated on a straight-line basis over a weighted average period of six years. |
Schedule of Fair Value Consideration Transferred 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) Customer relationships $ 540,000 10 Trade name 85,000 10 Developed technology 143,000 5 Intangible assets $ 768,000 |
Schedule of Pro Forma Information | The following table summarizes our selected financial information on a pro forma basis (in thousands, except per share data): 2023 2022 (Unaudited) Revenues $ 6,604,824 $ 5,892,414 Net income $ 598,709 $ 196,220 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Raw materials and supplies $ 141,311 $ 63,008 Work-in-process 7,437 2,341 Finished goods 32,057 28 Inventory $ 180,805 $ 65,377 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Federal and state income taxes receivable $ 26,949 $ 11,313 Workers’ compensation receivable 31,006 34,632 Prepaid expenses 46,394 11,960 Other 36,773 3,064 Other current assets $ 141,122 $ 60,969 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Equipment $ 8,506,727 $ 7,551,099 Oil and natural gas properties 238,337 236,156 Buildings 248,693 175,212 Rental equipment 119,653 — Land 38,811 23,610 Total property and equipment 9,152,221 7,986,077 Less accumulated depreciation, depletion, amortization and impairment ( 5,811,809 ) ( 5,725,501 ) Property and equipment, net $ 3,340,412 $ 2,260,576 |
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 and intangible assets for 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Depreciation and impairment expense $ 682,672 $ 472,969 $ 818,999 Amortization expense 41,521 2,891 24,606 Depletion expense 7,223 8,085 5,573 Total $ 731,416 $ 483,945 $ 849,178 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Operating Segment | Goodwill by operating segment as of December 31, 2022 and 2023 and changes for the years then ended are as follows (in thousands): Completion Drilling Services Products Total Balance, December 31, 2022 $ — $ — $ — Goodwill acquired 921,656 451,341 1,372,997 Measurement period adjustment 469 6,275 6,744 Balance, December 31, 2023 $ 922,125 $ 457,616 $ 1,379,741 |
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 Drilling Services, Completion Services and Drilling Products 11.1 Developed technology Drilling Services, Completion Services and Drilling Products 4.6 Trade name Completion Services and Drilling Products 9.7 Other Drilling Services and Completion Services 1.8 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets as of December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 786,715 $ ( 25,563 ) $ 761,152 $ 1,800 $ ( 1,071 ) $ 729 Developed technology 202,772 ( 16,435 ) 186,337 7,772 ( 3,773 ) 3,999 Trade name 101,000 ( 3,406 ) 97,594 — — — Other 7,345 ( 731 ) 6,614 1,450 ( 333 ) 1,117 Intangible assets, net $ 1,097,832 $ ( 46,135 ) $ 1,051,697 $ 11,022 $ ( 5,177 ) $ 5,845 |
Remaining Amortization Expense Associated with Finite-Lived Intangible Assets | The remaining amortization expense associated with finite-lived intangible assets, excluding in-process software, is ex pected to be as follows (in thousands): Year ending December 31, 2024 $ 121,307 2025 121,039 2026 120,702 2027 120,674 2028 105,481 Thereafter 456,608 Total $ 1,045,811 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued liabilities consisted of the following at December 31, 2023 and 2022 (in thousands): 2023 2022 Salaries, wages, payroll taxes and benefits $ 129,982 $ 73,308 Workers’ compensation liability 67,396 67,853 Property, sales, use and other taxes 62,194 10,119 Insurance, other than workers’ compensation 11,524 3,644 Accrued interest payable 19,172 10,522 Deferred revenue 98,914 110,215 Federal and state income taxes payable 3,437 4,644 Accrued merger and integration expense 15,113 — Other 38,536 28,482 Accrued liabilities $ 446,268 $ 308,787 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt consisted of the following at December 31, 2023 and 2022 (in thousands): Effective Interest Rate December 31, 2023 December 31, 2022 3.95 % Senior Notes Due 2028 4.03 % 482,505 $ 488,505 5.15 % Senior Notes Due 2029 5.26 % 344,895 347,900 7.15 % Senior Notes Due 2033 7.28 % 400,000 — Equipment Loans Due 2025 5.25 % 18,686 — 1,246,086 836,405 Less deferred financing costs and discounts ( 8,919 ) ( 5,468 ) Less current portion ( 12,226 ) — Total 1,224,941 $ 830,937 |
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, 2023 (in thousands): Year ending December 31, 2024 $ 12,290 2025 6,396 2026 — 2027 — 2028 482,505 2029 344,895 Thereafter 400,000 Total $ 1,246,086 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Treasury Stock Acquisition | Treasury stock acquisitions during the years ended December 31, 2023, 2022 and 2021 were as follows (dollars in thousands): 2023 2022 2021 Shares Cost Shares Cost Shares Cost Treasury shares at beginning of period 88,758,722 $ 1,453,079 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 Purchases pursuant to stock buyback program 14,086,229 168,631 3,254,599 57,173 — — Acquisitions pursuant to long-term incentive plan 2,735,060 35,965 1,372,101 23,237 451,196 3,727 Purchases in connection with Pioneer acquisition — — — — 275,477 2,601 Other — — 3,027 28 — — Treasury shares at end of period 105,580,011 $ 1,657,675 88,758,722 $ 1,453,079 84,128,995 $ 1,372,641 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Plans | Our share-based compensation plans at December 31, 2023 are as follows: Shares Shares Underlying Shares Authorized Awards Available Plan Name for Grant Outstanding for Grant 2021 Plan 28,963,412 5,004,289 13,910,294 NexTier Plan — 2,660,633 — Former C&J Energy Plan — 789,337 — 2014 Plan — 2,571,965 — |
Stock Option Activity | Stock option activity for the year ended December 31, 2023 follows: Weighted Average Shares Exercise Price Per Share Outstanding at beginning of year 2,905,150 $ 22.19 Assumed (1) 652,573 $ 27.97 Exercised — $ — Expired ( 692,500 ) $ 22.82 Outstanding at end of year 2,865,223 $ 23.36 Exercisable at end of year 2,865,223 $ 23.36 (1) Awards assumed in connection with the NexTier merger. All of these assumed awards had been previously granted by NexTier under the NexTier Plan or the Former C&J Energy Plan, in periods prior to the NexTier merger. |
Additional Information with Respect to Non-vested Options | Additional information with respect to options granted, vested and exercised during the years ended December 31, 2023, 2022 and 2021 follows (in thousands, except per share data): 2023 2022 2021 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 Aggregate intrinsic value of stock options exercised $ — $ 410 $ — |
Restricted Stock Activity | Restricted stock unit activity for the year ended December 31, 2023 follows: Weighted Average Time Performance Grant Date Fair Based Based Value Per Share Non-vested restricted stock units outstanding at beginning of year 3,090,846 359,315 $ 12.71 Granted 1,840,861 165,276 $ 11.60 Assumed (1) 7,438,031 — $ 5.62 Vested ( 6,379,970 ) — $ 5.95 Forfeited ( 162,100 ) ( 3,058 ) $ 13.78 Non-vested restricted stock units outstanding at end of year 5,827,668 521,533 $ 10.60 (1) Awards assumed in connection with the NexTier merger. All of these assumed awards had been previously granted by NexTier under the NexTier Plan or the Former C&J Energy Plan, in periods prior to the NexTier merger. |
Restricted Stock Unit Activity | Additional information as of December 31, 2023 with respect to these non-vested restricted stock units follows (dollars in thousands): Aggregate intrinsic value $ 65,937 Weighted-average remaining vesting period 1.63 years Unrecognized compensation cost $ 51,434 |
Performance Units | The total target number of shares granted with respect to the Performance Units for the years 2018-2023 is set forth below: 2023 2022 2021 2020 2019 2018 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 631,700 414,000 843,000 500,500 489,800 310,700 |
Fair Value of Performance Units | The fair value of the Performance Units is set forth below (in thousands): 2023 2022 2021 2020 2019 2018 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 $ 8,440 $ 10,743 $ 7,225 $ 826 $ 9,958 $ 8,004 |
Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Options | The weighted-average fair value calculations for performance units granted during the years ended December 31, 2023, 2022 and 2021 were based on the following weighted-average assumptions set forth below: 2023 2022 2021 Risk-free interest rate (1) 3.6 % 2.9 % 0.4 % Expected stock volatility (2) 72.1 % 86.5 % 83.2 % Expected dividend yield (3) 3.0 % 1.0 % 1.3 % Expected term (in years) 3 3 3 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a three-year period . (3) Expected dividend yield is based on the annualized dividend in effect on the measurement date and the stock price on the grant date. |
Compensation Expense Associated with Performance Units | Compensation expense associated with the Performance Units is set forth below (in thousands): 2023 2022 2021 2020 2019 2018 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Year ended December 31, 2023 $ 2,248 $ 3,749 $ 2,426 $ 69 NA NA Year ended December 31, 2022 NA $ 2,686 $ 2,408 $ 275 $ 830 NA Year ended December 31, 2021 NA NA $ 1,806 $ 275 $ 3,319 $ 667 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Lease Expenses | Lease expense consisted of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 10,073 $ 5,664 $ 4,984 Finance lease cost: Amortization of right-of-use assets 6,360 — — Interest on lease liabilities 1,395 — — Total finance lease cost 7,755 — — Short-term lease expense (1) 2,278 — 41 Total lease expense (2) $ 20,106 $ 5,664 $ 5,025 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. (2) Total lease expense is recorded in operating costs for the respective segments and within “ selling, general and administrative ” in our consolidated statements of operations. |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,935 $ 6,858 $ 7,323 Operating cash flows from finance leases 1,380 — — Financing cash flows from finance leases 15,915 — — Right of use assets obtained in exchange for lease obligations: Operating leases (1) $ 34,802 $ 6,530 $ 6,413 Finance leases (1) 73,245 — — (1) Includes right of use assets acquired in business combinations. |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows: December 31, 2023 December 31, 2022 Weighted Average Remaining Lease Term: Operating leases 5.0 years 6.1 years Finance leases 1.5 years N/A Weighted Average Discount Rate: Operating leases 6.1 % 4.1 % Finance leases 7.3 % N/A |
Summary of Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities as of December 31, 2023 are as follows (in thousands): Year ending December 31, Operating Finance 2024 $ 16,435 $ 46,297 2025 12,975 4,842 2026 9,387 4,850 2027 7,130 1,485 2028 4,975 1,485 Thereafter 9,354 2,080 Total lease payments 60,256 61,039 Less imputed interest ( 8,867 ) ( 4,106 ) Total $ 51,389 $ 56,933 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 are as follows (in thousands): 2023 2022 2021 Federal income tax expense (benefit): Current $ — $ 480 $ — Deferred 44,369 11,820 ( 86,878 ) 44,369 12,300 ( 86,878 ) State income tax expense (benefit): Current 7,002 2,647 144 Deferred 11,279 ( 4,896 ) 23,028 18,281 ( 2,249 ) 23,172 Foreign income tax expense (benefit): Current 1,578 2,750 134 Deferred ( 3,076 ) 403 870 ( 1,498 ) 3,153 1,004 Total income tax expense (benefit): Current 8,580 5,877 278 Deferred 52,572 7,327 ( 62,980 ) Total income tax expense (benefit) $ 61,152 $ 13,204 $ ( 62,702 ) |
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, 2023, 2022 and 2021 is summarized as follows: 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of the federal income tax benefit 3.2 3.0 3.0 State deferred tax remeasurement ( 0.3 ) 9.4 ( 0.8 ) Valuation allowance ( 9.2 ) ( 33.4 ) ( 13.3 ) U.S. impact of foreign operations — 1.3 — Acquisition related costs 1.1 — — Effect of foreign taxes 0.1 1.6 ( 0.1 ) Non-deductible compensation 1.8 4.3 ( 0.3 ) Share-based compensation 1.6 ( 1.9 ) ( 0.3 ) Non-deductible expenses 0.7 1.2 ( 0.2 ) Other differences, net ( 0.1 ) 1.4 ( 0.3 ) Effective tax rate 19.9 % 7.9 % 8.7 % |
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, 2023 and 2022 are as follows (in thousands): 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 498,948 $ 382,936 Tax credits 13,488 4,222 Expense associated with stock options and restricted stock 10,892 8,178 Workers’ compensation allowance 7,024 15,770 Other deferred tax asset 69,480 25,020 599,832 436,126 Less: Allowance to reduce deferred tax asset to expected realizable value ( 75,250 ) ( 91,685 ) Total deferred tax assets 524,582 344,441 Deferred tax liabilities: Property and equipment basis difference ( 729,376 ) ( 355,129 ) Other ( 39,386 ) ( 14,840 ) Total deferred tax liabilities ( 768,762 ) ( 369,969 ) Net deferred tax liability $ ( 244,180 ) $ ( 25,528 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss per Share | The following table presents information necessary to calculate net income (loss) per share for the years ended December 31, 2023, 2022 and 2021, 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): 2023 2022 2021 BASIC EPS: Net income (loss) from continuing operations attributed to common stockholders $ 246,292 $ 154,658 $ ( 657,079 ) Net income from discontinued operations attributed to common stockholders $ — $ — $ 2,534 Net income (loss) attributed to common stockholders $ 246,292 $ 154,658 $ ( 654,545 ) Weighted average number of common shares outstanding, excluding 279,501 215,935 195,021 Basic income (loss) from continuing operations per common share $ 0.88 $ 0.72 $ ( 3.37 ) Basic income from discontinued operations per common share $ — $ — $ 0.01 Basic net income (loss) per common share $ 0.88 $ 0.72 $ ( 3.36 ) DILUTED EPS: Net income (loss) from continuing operations attributed to common stockholders $ 246,292 $ 154,658 $ ( 657,079 ) Net income from discontinued operations attributed to common stockholders $ — $ — $ 2,534 Net income (loss) attributed to common stockholders $ 246,292 $ 154,658 $ ( 654,545 ) Weighted average number of common shares outstanding, excluding 280,061 219,496 195,021 Diluted income (loss) from continuing operations per common share $ 0.88 $ 0.70 $ ( 3.37 ) Diluted income from discontinued operations per common share $ — $ — $ 0.01 Diluted net income (loss) per common share $ 0.88 $ 0.70 $ ( 3.36 ) Potentially dilutive securities excluded as anti-dilutive 9,214 3,541 9,551 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Property and equipment, net and revenue for our domestic and international operations | Property and equipment, net and revenue for our domestic and international operations for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Property and equipment, net: United States $ 3,257,937 $ 2,213,242 $ 2,292,448 Colombia 48,434 47,334 39,307 International (Excluding Colombia) 34,041 — — Property and equipment, net $ 3,340,412 $ 2,260,576 $ 2,331,755 Revenue: United States $ 4,057,212 $ 2,577,471 $ 1,341,330 Colombia 50,692 70,121 15,751 International (Excluding Colombia) 38,552 — — Total revenues $ 4,146,456 $ 2,647,592 $ 1,357,081 |
Business Segments - Financial Information | Year Ended December 31, 2023 2022 2021 Revenues: Drilling Services $ 1,976,401 $ 1,581,380 $ 805,295 Completion Services 2,017,440 1,022,413 523,756 Drilling Products 134,679 — — Other (1) 79,058 81,966 49,703 Elimination of intercompany revenues - Drilling Services (2) ( 56,642 ) ( 36,560 ) ( 21,077 ) Elimination of intercompany revenues - Other (2) ( 4,480 ) ( 1,607 ) ( 596 ) Total revenues $ 4,146,456 $ 2,647,592 $ 1,357,081 Segment operating income (loss) (3) and reconciliation to income (loss) before income taxes: Drilling Services $ 422,002 $ 149,807 $ ( 465,053 ) Completion Services 140,220 134,103 ( 118,863 ) Drilling Products ( 6,501 ) — — Total segment operating income (loss) (3) 555,721 283,910 ( 583,916 ) Other 2,829 13,776 ( 3,182 ) Corporate ( 205,754 ) ( 86,655 ) ( 92,152 ) Credit loss expense ( 842 ) — 1,500 Interest income 6,122 360 222 Interest expense ( 52,870 ) ( 40,256 ) ( 41,978 ) Other 1,898 ( 3,273 ) ( 275 ) Income (loss) before income taxes $ 307,104 $ 167,862 $ ( 719,781 ) Depreciation, depletion, amortization and impairment: Drilling Services $ 364,312 $ 354,116 $ 660,402 Completion Services 283,230 98,162 159,305 Drilling Products 48,467 — — Other 28,237 26,496 23,612 Corporate 7,170 5,171 5,859 Total depreciation, depletion, amortization and impairment $ 731,416 $ 483,945 $ 849,178 Capital expenditures: Drilling Services $ 334,780 $ 272,521 $ 118,496 Completion Services 214,746 137,935 34,676 Drilling Products 24,572 — — Other 24,645 25,215 11,627 Corporate 16,947 1,126 1,521 Total capital expenditures $ 615,690 $ 436,797 $ 166,320 Identifiable assets: Drilling Services $ 2,368,604 $ 2,348,177 $ 2,279,952 Completion Services 3,835,699 541,975 458,202 Drilling Products 1,011,870 — — Other 59,221 64,018 62,766 Corporate (4) 144,637 189,653 156,928 Total assets $ 7,420,031 $ 3,143,823 $ 2,957,848 (1) Other includes our oilfield rentals business and oil and natural gas working interests . (2) Intercompany revenues consist of revenues from drilling services provided to our other operations, and revenues from other operations for services provided to drilling services, completion services and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation . (3) Segment operating income (loss) is our measure of segment profitability. It is defined as revenue less operating expenses, selling, general and administrative e xpenses, depreciation, amortization and impairment expenses and other operating income (loss). (4) Corporate assets primarily include cash on hand and certain property and equipment . |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Outstanding Debt Balances | The estimated fair value of our outstanding debt balances as of December 31, 2023 and 2022 is set forth below (in thousands): December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes Due 2028 $ 482,505 $ 450,540 $ 488,505 $ 431,556 5.15% Senior Notes Due 2029 344,895 329,032 347,900 313,164 7.15% Senior Notes Due 2033 400,000 424,946 — — Equipment Loans Due 2025 18,686 18,766 — — Total debt $ 1,246,086 $ 1,223,284 $ 836,405 $ 744,720 |
Summary of Significant Accounti
Summary of Significant Accounting Policies - Basis of Presentation - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 190,108 | $ 137,553 |
Restricted cash | 2,572 | 0 |
Total cash, cash equivalents and restricted cash | $ 192,680 | $ 137,553 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | Dec. 31, 2023 |
Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Rental equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Rental equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 8 years |
Buildings and leasehold improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Buildings and leasehold improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 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 | 20 years |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basis Of Consolidation And Presentation [Line Items] | |||
Reimbursement of workers compensation insurance claims included in other current assets | $ 31,000 | $ 34,600 | |
Impairment expense related to oil and natural gas properties | 7,000 | 4,500 | $ 1,300 |
Proceeds from Sales of Business, Affiliate and Productive Assets | 43,000 | ||
Right of use asset | 47,599 | 20,841 | |
Operating lease liabilities | 51,389 | ||
Adjustment of loss before income tax | 307,104 | 167,862 | (719,781) |
Release of Cumulative Translation Adjustment, Net Income (loss) | 0 | 3,770 | 0 |
Tax Impact, Changes In Deferred Tax Liabilities | 3,800 | ||
Release of cumulative translation adjustment | 0 | 7,708 | 0 |
Release of Cumulative Translation Adjustment, Pre-tax Gain | $ 11,500 | ||
Decrease in operating income | 30,700 | ||
Decrease in net income | $ 24,300 | ||
Decrease in diluted earnings | $ 0.09 | ||
Decrease in basic earnings | $ 0.09 | ||
Pioneer Energy Services Corp [Member] | |||
Basis Of Consolidation And Presentation [Line Items] | |||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43,000 | ||
Maximum | |||
Basis Of Consolidation And Presentation [Line Items] | |||
Amortization of definite-lived intangible assets useful lives | 15 years | ||
Minimum | |||
Basis Of Consolidation And Presentation [Line Items] | |||
Amortization of definite-lived intangible assets useful lives | 3 years |
Acquisitions and Discontinued_3
Acquisitions and Discontinued Operations - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 01, 2023 | Aug. 14, 2023 | Oct. 01, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Acquisitions And Discontinued Operations [Line Items] | |||||||||
Cash consideration received | $ 43,000 | ||||||||
Net Income (loss) | $ 246,292 | $ 154,658 | (654,545) | ||||||
Merger and integration expenses | 98,077 | 2,069 | 12,060 | ||||||
Goodwill | 1,379,741 | 0 | |||||||
U.S | |||||||||
Acquisitions And Discontinued Operations [Line Items] | |||||||||
Merger and integration expenses | 4,600 | ||||||||
Pioneer Energy Services Corp [Member] | |||||||||
Acquisitions And Discontinued Operations [Line Items] | |||||||||
Business combination, shares issued | 26,274,000 | ||||||||
Percentage of acquired equity interests | 100% | ||||||||
Business combinations, consideration paid in cash | $ 30,007 | ||||||||
Cash consideration received | 43,000 | ||||||||
Revenues | $ 41,500 | ||||||||
Direct operating expenses attributed | $ 30,500 | ||||||||
Merger and integration expenses | $ 12,100 | ||||||||
Business combination, closing price | $ 9.44 | ||||||||
Business Combination, Consideration Transferred | $ 278,032 | ||||||||
Ulterra Drilling Technologies, L.P. [Member] | |||||||||
Acquisitions And Discontinued Operations [Line Items] | |||||||||
Business combination, shares issued | 34,900,000 | ||||||||
Business combinations, consideration paid in cash | [1] | $ 375,740 | |||||||
Revenues | 135,000 | ||||||||
Net Income (loss) | 3,400 | ||||||||
Merger and integration expenses | 5,600 | ||||||||
Business combination, closing price | $ 14.94 | ||||||||
Business Combination, Consideration Transferred | $ 897,146 | $ 897,146 | |||||||
Discount Rate Estimated Of Fair Values | 10.50% | ||||||||
Goodwill | $ 457,616 | ||||||||
Acquired intangibles | 77,600 | ||||||||
Long-lived assets | 74,400 | ||||||||
Inventory | 5,500 | ||||||||
Interest expense of the acquired entity | 12,800 | 28,100 | |||||||
Tax Expense (Benefit) | (17,400) | (11,300) | |||||||
NexTier Oilfield Solutions Inc. [Member] | |||||||||
Acquisitions And Discontinued Operations [Line Items] | |||||||||
Business combination, shares issued | 172,092,000 | ||||||||
Revenues | 1,100,000 | ||||||||
Net Income (loss) | 12,500,000 | ||||||||
Merger and integration expenses | $ 92,500 | 92,500 | |||||||
Business combination, closing price | $ 14.91 | ||||||||
Business Combination, Consideration Transferred | $ 2,799,308 | $ 2,799,308 | |||||||
Discount Rate Estimated Of Fair Values | 14% | ||||||||
Goodwill | $ 922,125 | ||||||||
Acquired intangibles | 720,700 | ||||||||
Acquired property and equipment | 262,700 | ||||||||
Interest expense of the acquired entity | 17,700 | 30,000 | |||||||
Tax Expense (Benefit) | $ 15,100 | $ 72,700 | |||||||
Common stock consideration, shares issued | 0.752 | ||||||||
[1] Net cash consideration inclu ded $ 370 million cas h consideration as adjusted for customary purchase price adjustments set forth in the Ulterra merger agreement relating to cash, net working capital, indebtedness and transaction expenses of Ulterra as of the closing. The adjustment is subject to a post-closing target net working capital adjustment in accordance with the Ulterra merger agreement. |
Acquisitions and Discontinued_4
Acquisitions and Discontinued Operations - Schedule of Fair Value of Consideration Transferred (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Sep. 01, 2023 USD ($) $ / shares shares | Aug. 14, 2023 USD ($) $ / shares shares | Oct. 01, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 shares | ||
Acquisitions And Discontinued Operations [Line Items] | ||||||
Number of shares common stock outstanding | shares | 411,195,302 | 213,567,131 | ||||
Pioneer Energy Services Corp [Member] | ||||||
Acquisitions And Discontinued Operations [Line Items] | ||||||
Shares of our common stock issued | shares | 26,274,000 | |||||
Common stock price | $ / shares | $ 9.44 | |||||
Common stock equity consideration | $ 248,025 | |||||
Plus net cash consideration | 30,007 | |||||
Total consideration transferred | $ 278,032 | |||||
Ulterra Drilling Technologies, L.P. [Member] | ||||||
Acquisitions And Discontinued Operations [Line Items] | ||||||
Shares of our common stock issued | shares | 34,900,000 | |||||
Common stock price | $ / shares | $ 14.94 | |||||
Common stock equity consideration | $ 521,406 | |||||
Plus net cash consideration | [1] | 375,740 | ||||
Total consideration transferred | $ 897,146 | $ 897,146 | ||||
NexTier Oilfield Solutions Inc. [Member] | ||||||
Acquisitions And Discontinued Operations [Line Items] | ||||||
Number of shares common stock outstanding | shares | 228,846,000 | |||||
Multiplied by the exchange ratio | 0.752 | |||||
Shares of our common stock issued | shares | 172,092,000 | |||||
Common stock price | $ / shares | $ 14.91 | |||||
Common stock equity consideration | $ 2,565,895 | |||||
Acceleration of RSU awards | 1,997 | |||||
Fair value of replacement equity awards | [2] | 70,416 | ||||
NexTier long-term debt repaid by Patterson-UTI Energy, Inc. | 161,000 | |||||
Total consideration transferred | $ 2,799,308 | $ 2,799,308 | ||||
[1] Net cash consideration inclu ded $ 370 million cas h consideration as adjusted for customary purchase price adjustments set forth in the Ulterra merger agreement relating to cash, net working capital, indebtedness and transaction expenses of Ulterra as of the closing. The adjustment is subject to a post-closing target net working capital adjustment in accordance with the Ulterra merger agreement. In connection with the merger, each of the share-based awards held by legacy NexTier employees were replaced with our share-based awards on the merger date. The fair value of the replacement awards has been allocated between each employee’s pre-combination and post-combination services. Amounts allocated to pre-combination services have been included as consideration transferred as part of the merger. See Note 12 for replacement awards details. |
Acquisitions and Discontinued_5
Acquisitions and Discontinued Operations - Schedule of Fair Value of Consideration Transferred (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 14, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquisitions And Discontinued Operations [Line Items] | ||||
Net cash consideration | $ 0 | $ 0 | $ 29,358 | |
Ulterra Drilling Technologies, L.P. [Member] | ||||
Acquisitions And Discontinued Operations [Line Items] | ||||
Net cash consideration | $ 370,000 |
Acquisitions and Discontinued_6
Acquisitions and Discontinued Operations - Schedule of Assets Acquired and Liabilities Assumed on Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 01, 2023 | Aug. 14, 2023 | Oct. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Liabilities assumed | ||||||
Goodwill | $ 1,379,741 | $ 0 | ||||
Pioneer Energy Services Corp [Member] | ||||||
Liabilities assumed | ||||||
Total consideration transferred | $ 278,032 | |||||
Ulterra Drilling Technologies, L.P. [Member] | ||||||
Assets acquired | ||||||
Cash and cash equivalents | 18,426 | |||||
Accounts receivable | 68,467 | |||||
Inventory | [1] | 36,313 | ||||
Rental equipment | [2] | 109,055 | ||||
Property and equipment | 27,583 | |||||
Other assets | 14,274 | |||||
Intangible assets | 313,000 | |||||
Operating lease right of use asset | 7,513 | |||||
Finance lease right of use asset | 5,228 | |||||
Total assets acquired | 599,859 | |||||
Liabilities assumed | ||||||
Accounts payable | 23,258 | |||||
Accrued liabilities | 31,608 | |||||
Operating lease liability | 7,513 | |||||
Finance lease liability | 5,228 | |||||
Deferred tax liabilities | 83,993 | |||||
Total liabilities assumed | 151,600 | |||||
Less: noncontrolling interest | (8,729) | |||||
Total net assets acquired | 439,530 | |||||
Goodwill | 457,616 | |||||
Total consideration transferred | $ 897,146 | 897,146 | ||||
NexTier Oilfield Solutions Inc. [Member] | ||||||
Assets acquired | ||||||
Cash and cash equivalents | 95,815 | |||||
Accounts receivable | 420,200 | |||||
Inventory | 71,930 | |||||
Property and equipment | [3] | 1,045,610 | ||||
Other assets | 84,677 | |||||
Intangible assets | 768,000 | |||||
Operating lease right of use asset | 19,091 | |||||
Finance lease right of use asset | 50,733 | |||||
Total assets acquired | 2,556,056 | |||||
Liabilities assumed | ||||||
Accounts payable | 358,873 | |||||
Accrued liabilities | 129,535 | |||||
Operating lease liability | 19,091 | |||||
Finance lease liability | 50,733 | |||||
Deferred tax liabilities | 86,293 | |||||
Long-term debt | 22,533 | |||||
Other liabilities | 11,815 | |||||
Total liabilities assumed | 678,873 | |||||
Total net assets acquired | 1,877,183 | |||||
Goodwill | 922,125 | |||||
Total consideration transferred | $ 2,799,308 | $ 2,799,308 | ||||
[1] We recorded an adjustmen t of $ 5.5 million to write-up acquired drill bits classified as inventory to estimated fair value. This adjustment will be recorded as direct operating expense as acquired drill bits are sold. We recorded an adjustment of $ 74.4 millio n to write-up acquired drill bits classified as long-lived assets to estimated fair value. This adjustment will be depreciated as acquired drill bits are rented over a weighted-average estimated useful lif e of 7.5 run s. We recorded an adjustment of $ 262.7 million to write-up acquired property and equipment to estimated fair value. This adjustment will be depreciated on a straight-line basis over a weighted average period of six years. |
Acquisitions and Discontinued_7
Acquisitions and Discontinued Operations - Schedule of Assets Acquired and Liabilities Assumed on Fair Value (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 01, 2023 | Aug. 14, 2023 |
Ulterra Drilling Technologies, L.P. [Member] | Inventory [Member] | ||
Acquisitions And Discontinued Operations [Line Items] | ||
Business combination, adjustment to write-up | $ 5.5 | |
Ulterra Drilling Technologies, L.P. [Member] | Property Plant And Equipment [Member] | ||
Acquisitions And Discontinued Operations [Line Items] | ||
Business combination, adjustment to write-up | $ 74.4 | |
Intangible assets, weighted average useful life | 7 years 6 months | |
NexTier Oilfield Solutions Inc. [Member] | ||
Acquisitions And Discontinued Operations [Line Items] | ||
Business combination, adjustment to write-up | $ 262.7 |
Acquisitions and Discontinued_8
Acquisitions and Discontinued Operations - Schedule of Fair Value Consideration Transferred Assigned to Identifiable Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Ulterra Drilling Technologies, L.P. [Member] | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 313,000 |
Ulterra Drilling Technologies, L.P. [Member] | Customer Relationships | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 245,000 |
Intangible assets, weighted average useful life | 15 years |
Ulterra Drilling Technologies, L.P. [Member] | Trade Name | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 16,000 |
Intangible assets, weighted average useful life | 11 years |
Ulterra Drilling Technologies, L.P. [Member] | Developed Technology | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 52,000 |
Intangible assets, weighted average useful life | 5 years |
NexTier Oilfield Solutions Inc. [Member] | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 768,000 |
NexTier Oilfield Solutions Inc. [Member] | Customer Relationships | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 540,000 |
Intangible assets, weighted average useful life | 10 years |
NexTier Oilfield Solutions Inc. [Member] | Trade Name | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 85,000 |
Intangible assets, weighted average useful life | 10 years |
NexTier Oilfield Solutions Inc. [Member] | Developed Technology | |
Acquisitions And Discontinued Operations [Line Items] | |
Intangible assets | $ 143,000 |
Intangible assets, weighted average useful life | 5 years |
Acquisitions and Discontinued_9
Acquisitions and Discontinued Operations - Schedule of Pro Forma Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pioneer Energy Services Corp [Member] | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Revenues | $ 1,464,351 | ||
Net income (loss) | $ (666,032) | ||
Ulterra Drilling Technologies, L.P. [Member] | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Revenues | $ 4,369,596 | $ 3,017,778 | |
Net income (loss) | 190,136 | 141,458 | |
NexTier Oilfield Solutions Inc. [Member] | |||
Acquisitions And Discontinued Operations [Line Items] | |||
Revenues | 6,604,824 | 5,892,414 | |
Net income (loss) | $ 598,709 | $ 196,220 |
Acquisitions and Discontinue_10
Acquisitions and Discontinued Operations - Schedule of Operating Results from Discontinued Operations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Acquisitions And Discontinued Operations [Line Items] | |
Operating revenues | $ 29,520 |
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 | $ 0 |
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income from discontinued operations, net of tax |
Income from discontinued operations, net of tax | $ 2,534 |
Wireline | |
Acquisitions And Discontinued Operations [Line Items] | |
Operating revenues | 9,868 |
Operating costs and expenses | 10,465 |
Well Servicing | |
Acquisitions And Discontinued Operations [Line Items] | |
Operating revenues | 19,652 |
Operating costs and expenses | $ 16,585 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Accounts receivable balances | $ 971,091 | $ 565,520 |
Total contract liability | 28,900 | |
revenue | 136,000 | 59,700 |
Revenue, Remaining Performance Obligation, Amount | $ 700,000 | |
Revenue, Remaining Performance Obligation, Percentage | 16% | |
Accrued Liabilities | ||
Disaggregation Of Revenue [Line Items] | ||
Total contract liability | $ 103,000 | 148,000 |
Contract Drilling | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Dec. 31, 2024 | |
ASC Topic 606 Revenue from Contracts with Customers | ||
Disaggregation Of Revenue [Line Items] | ||
Accounts receivable balances | $ 900,000 | $ 561,000 |
Total contract liability | 98,900 | |
Contract with Customer, Liability, Noncurrent | $ 4,100 | |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Loss [Abstract] | |||
Provision for expected credit losses | $ 842 | $ 0 | $ (1,500) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Beginning Balance | $ 2,875 | ||
Provision for expected credit losses | 842 | $ 0 | $ (1,500) |
Ending Balance | $ 3,490 | $ 2,875 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 141,311 | $ 63,008 |
Work-in-process | 7,437 | 2,341 |
Finished goods | 32,057 | 28 |
Inventory | $ 180,805 | $ 65,377 |
Other Current Assets - Other Cu
Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Federal and state income taxes receivable | $ 26,949 | $ 11,313 |
Workers compensation receivable | 31,006 | 34,632 |
Prepaid expenses | 46,394 | 11,960 |
Other | 36,773 | 3,064 |
Other current assets | $ 141,122 | $ 60,969 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | |||
Total property and equipment | $ 9,152,221 | $ 7,986,077 | |
Less accumulated depreciation, depletion, amortization and impairment | (5,811,809) | (5,725,501) | |
Property and equipment, net | 3,340,412 | 2,260,576 | $ 2,331,755 |
Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 8,506,727 | 7,551,099 | |
Oil and Natural Gas Properties | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 238,337 | 236,156 | |
Buildings and leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 248,693 | 175,212 | |
Rental equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 119,653 | 0 | |
Land | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | $ 38,811 | $ 23,610 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and impairment expense | $ 682,672 | $ 472,969 | $ 818,999 |
Amortization expense | 41,521 | 2,891 | 24,606 |
Depletion expense | 7,223 | 8,085 | 5,573 |
Total | $ 731,416 | $ 483,945 | $ 849,178 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 USD ($) Rigs hp | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Rigs | |
Property Plant And Equipment [Line Items] | ||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Depreciation Depletion Amortization And Impairment | |||
Impairment balance | $ 0 | $ 0 | ||
Pressure Pumping | ||||
Property Plant And Equipment [Line Items] | ||||
Impairment charge of drilling equipment | 0 | 0 | $ 32,200,000 | |
Power of an asset | hp | 200,000 | |||
Directional Drilling | ||||
Property Plant And Equipment [Line Items] | ||||
Impairment charge of drilling equipment | $ 0 | $ 0 | 2,500 | |
ImpairmentOfIntangibleAssetsFinitelived | $ 11,400 | |||
Rigs and Spare Rig Components That Would No Longer Be Marketed | ||||
Property Plant And Equipment [Line Items] | ||||
Impairment charge of drilling equipment | $ 220,000,000 | |||
Number of rigs | Rigs | 43 | 43 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 1,379,741 | $ 0 | |
Goodwill acquired | $ 1,372,997 | ||
Number of Reporting Units | Segment | 3 | ||
Rate of Fair Value of Reporting Unit | 1% | ||
Impairment on intangible assets | $ 11,400 | ||
Amortization expense on intangible assets | $ 41,500 | $ 1,300 | 24,000 |
Percentage of Weighted Average Cost of Capital | 10% | ||
Percentage Of Completion Services Reporting Unit | 12% | ||
Impairment Charges to abandon obsolete intangible technology | $ 11,400 | ||
Minimum | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Percentage Of Completion Services Reporting Unit | 3% | ||
Maximum | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Percentage Of Completion Services Reporting Unit | 5% | ||
Drilling Products Reporting Unit [Member] | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Percentage fair value exceeds carrying values | 4% | ||
Completion Services Reporting Unit [Member] | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Percentage fair value exceeds carrying values | 11% | ||
Cementing Reporting Unit [Member] | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Percentage fair value exceeds carrying values | 80% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill by Operating Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 0 |
Goodwill acquired | 1,372,997 |
Measurement period adjustment | 6,744 |
Goodwill, Ending Balance | 1,379,741 |
Completion Services | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 0 |
Goodwill acquired | 921,656 |
Measurement period adjustment | 469 |
Goodwill, Ending Balance | 922,125 |
Drilling Products | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 0 |
Goodwill acquired | 451,341 |
Measurement period adjustment | 6,275 |
Goodwill, Ending Balance | $ 457,616 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Segment and Weighted Average Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Customer Relationships | Drilling Services, Completion Services and Drilling Products [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 11 years 1 month 6 days |
Developed Technology | Drilling Services, Completion Services and Drilling Products [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 4 years 7 months 6 days |
Trade Name | Completion Services and Drilling Products [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 9 years 8 months 12 days |
Other | Drilling Services and Completion Services [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 1 year 9 months 18 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,097,832 | $ 11,022 |
Accumulated Amortization | (46,135) | (5,177) |
Total | 1,051,697 | 5,845 |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 786,715 | 1,800 |
Accumulated Amortization | (25,563) | (1,071) |
Total | 761,152 | 729 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 202,772 | 7,772 |
Accumulated Amortization | (16,435) | (3,773) |
Total | 186,337 | 3,999 |
Trade Name | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 101,000 | 0 |
Accumulated Amortization | (3,406) | 0 |
Total | 97,594 | 0 |
Other | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,345 | 1,450 |
Accumulated Amortization | (731) | (333) |
Total | $ 6,614 | $ 1,117 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Remaining Amortization Expense Associated with Finite-Lived Intangible Assets (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 121,307 |
2025 | 121,039 |
2026 | 120,702 |
2027 | 120,674 |
2028 | 105,481 |
Thereafter | 456,608 |
Total | $ 1,045,811 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Salaries, wages, payroll taxes and benefits | $ 129,982 | $ 73,308 |
Workers’ compensation liability | 67,396 | 67,853 |
Property, sales, use and other taxes | 62,194 | 10,119 |
Insurance, other than workers’ compensation | 11,524 | 3,644 |
Accrued interest payable | 19,172 | 10,522 |
Deferred revenue | 98,914 | 110,215 |
Federal and state income taxes payable | 3,437 | 4,644 |
Accrued restructuring expenses | 15,113 | 0 |
Other | 38,536 | 28,482 |
Accrued liabilities | $ 446,268 | $ 308,787 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,246,086 | $ 836,405 |
Less deferred financing costs and discounts | (8,919) | (5,468) |
Less current portion | (12,226) | 0 |
Total | 1,224,941 | 830,937 |
3.95% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 482,505 | $ 488,505 |
Effective Interest Rate | 4.03% | 4.03% |
5.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 344,895 | $ 347,900 |
Effective Interest Rate | 5.26% | 5.26% |
7.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 400,000 | $ 0 |
Effective Interest Rate | 7.28% | 7.28% |
Equipment Loans Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 18,686 | $ 0 |
Effective Interest Rate | 5.25% | 5.25% |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Nov. 15, 2019 | Jan. 19, 2018 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43 | ||||
3.95% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt interest rate | 3.95% | 3.95% | |||
5.15% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt interest rate | 5.15% | 5.15% | |||
7.15% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt interest rate | 7.15% | 7.15% | |||
3.95% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt maturity date | Feb. 01, 2028 | ||||
Debt interest rate | 3.95% | ||||
5.15% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt maturity date | Nov. 15, 2029 | ||||
Debt interest rate | 5.15% | 5.15% |
Long-Term Debt - Term Loan Agre
Long-Term Debt - Term Loan Agreement - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 27, 2018 | Dec. 31, 2021 | Aug. 29, 2023 | |
Debt Instrument [Line Items] | |||
Credit agreement date | Mar. 27, 2018 | ||
Credit facility, maximum borrowing capacity | $ 50 | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 501.7 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 29, 2023 | Mar. 27, 2018 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Credit agreement date | Mar. 27, 2018 | ||
Credit facility, maximum borrowing capacity | $ 50,000 | ||
Letters of credit outstanding | $ 92,400 | ||
Line of credit, borrowings outstanding percentage | 1.50% | ||
Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | $ 0 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 501,700 | ||
Line of credit, available borrowing capacity | 597,000 | ||
Amount outstanding for debt instrument | $ 0 | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.10% | ||
Credit agreement, financial covenant description | our total debt to capitalization ratio, expressed as a percentage, not exceed 50% as of the last day of each fiscal quarter. 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. | ||
Letters of credit outstanding | 2,500 | $ 2,600 | |
Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee rate payable to lenders based on credit rating | 0.10% | ||
Debt service coverage ratio | 1% | ||
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% | ||
Debt service coverage ratio | 1.50% | ||
Credit Agreement | Ulterra Merger | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | $ 2,500 | ||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% | ||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2% | ||
Credit Agreement | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0% | ||
Credit Agreement | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0% | ||
Credit Agreement | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 600,000 | ||
Credit Agreement | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 600,000 | ||
Credit Agreement | Revolving Credit Facility | Subject To Customary Conditions | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 900,000 | ||
Credit facility, additional borrowing capacity | 300,000 | ||
Credit Agreement | Revolving Credit Facility | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 100,000 | ||
Reimbursement Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.25% | ||
Letters of credit outstanding | $ 87,700 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 85,000 | ||
Line of credit, maturity date | Mar. 27, 2026 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Line of credit, maturity date | Mar. 27, 2025 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Line of credit, maturity date | Mar. 27, 2026 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility One | |||
Debt Instrument [Line Items] | |||
Line of credit, maturity date | Mar. 27, 2025 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility One | Minimum | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 48,300 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility Two | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 50,000 | ||
Line of credit, maturity date | Mar. 27, 2024 |
Long-Term Debt - Senior Notes -
Long-Term Debt - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 13, 2023 | Nov. 15, 2019 | Jan. 19, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Gain on early debt extinguishment | $ 1,112 | $ 2,461 | $ 0 | |||
Repayment of borrowings | 420,000 | 150,000 | 0 | |||
Proceeds from borrowings under revolving credit facility | $ 420,000 | $ 150,000 | $ 0 | |||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 350,000 | |||||
3.95% Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 525,000 | |||||
Debt interest rate | 3.95% | |||||
Debt instrument, redemption percentage | 100% | |||||
Debt payment term | We pay interest on the 2028 Notes on February 1 and August 1 of each yea | |||||
Debt maturity date | Feb. 01, 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, on August 15, 2029, in the case of the 2029 Notes, and on July 1, 2033, in the case of the 2033 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 applicable 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 applicable repurchase date. | |||||
5.15% Senior Notes Due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 5.15% | 5.15% | ||||
Debt instrument, redemption percentage | 100% | |||||
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, on August 15, 2029, in the case of the 2029 Notes, and on July 1, 2033, in the case of the 2033 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 applicable 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 applicable repurchase date. | |||||
7.15% Senior Notes due 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 400,000 | |||||
Debt interest rate | 7.15% | |||||
Debt instrument, redemption percentage | 100% | |||||
Debt payment term | We pay interest on the 2033 Notes on April 1 and October 1 of each year | |||||
Debt maturity date | Oct. 01, 2033 | |||||
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, on August 15, 2029, in the case of the 2029 Notes, and on July 1, 2033, in the case of the 2033 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 applicable 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 applicable repurchase date. | |||||
Redemption price percentage of principal amount of debt instrument on change of control | 101% | |||||
2033 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 396,000 | |||||
Equipment Loans | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 5.25% | |||||
Debt maturity date | Jun. 01, 2025 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Repayment Requirements of Long-Term Debt (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 12,290 |
2025 | 6,396 |
2026 | 0 |
2027 | 0 |
2028 | 482,505 |
2029 | 344,895 |
Thereafter | 400,000 |
Total | $ 1,246,086 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other Matters - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Letters of credit, collateral for retrospective premiums and retained losses | $ 92,400 | ||
Purchase Commitment Remaining Minimum Amount Committed | 153,000 | ||
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 39,700 | ||
Purchase obligations for 2024 | 4,000 | ||
UnrecordedUnconditionalPurchaseObligationBalanceOnNexttwelvemonth | 33,700 | ||
Purchase obligations for 2026 | 2,000 | ||
Deductible Per Occurrence For Workers Compensation Insurance Policy | 1,500 | ||
Deductible Per Occurrence For Equipment Insurance Policy | 10,000 | ||
Deductible Per Occurrence For General Liability Insurance Policy | 2,000 | ||
Deductible Per Occurrence For Primary Automobile Liability Insurance Policy | 1,000 | ||
Deductible Per Occurrence For Excess Automobile Liability Insurance Policy | 10,000 | ||
Letter of Credit | |||
Other Commitments [Line Items] | |||
Amount drawn under letters of credit | 0 | ||
Purchase Commitment [Member] | |||
Other Commitments [Line Items] | |||
Purchase Commitment Remaining Minimum Amount Committed | $ 135,000 | $ 93,000 | $ 66,900 |
Change in Control Agreements | |||
Other Commitments [Line Items] | |||
Employee Entitlement Ratio On Sum Of Highest Salary And Average Bonus | 2% | ||
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 providing written notice 10 - 30 days, depending on the nature of the cause trigger, before the effective date of such termination and granting at least 10 - 20 days, depending on the nature of the cause trigger, 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 time-based equity, phantom equity and long-term cash incentive 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, 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, Chief Business Officer and General Counsel) of subsidized benefits continuation coverage. | ||
Employment Agreements | Deferred Bonus [Member] | |||
Other Commitments [Line Items] | |||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 2,000 | ||
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% | ||
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 Thousands | 12 Months Ended | |||||
Feb. 14, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 29, 2024 | Apr. 30, 2023 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||
Release of cumulative translation adjustment | $ 0 | $ 7,708 | $ 0 | |||
Tax Impact, Changes In Deferred Tax Liabilities | 3,800 | |||||
Release of Cumulative Translation Adjustment, Pre-tax Gain | 11,500 | |||||
Subsequent Event | Dividend Declared | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Dividend per share, declared | $ 0.08 | |||||
Dividend declaration date | Feb. 14, 2024 | |||||
Dividend payment date | Mar. 15, 2024 | |||||
Dividend record date | Mar. 01, 2024 | |||||
2013 program | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Amount approved for repurchases under stock buyback program | $ 300,000 | |||||
Remaining amount approved for repurchases under stock buyback program | $ 206,000 | |||||
2013 program | Subsequent Event | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Amount approved for repurchases under stock buyback program | $ 1,000,000 | |||||
Release of Cumulative Translation Adjustment [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Release of cumulative translation adjustment | $ 7,700 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock Acquisition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Class Of Treasury Stock [Line Items] | |||
Treasury shares, shares at beginning of period | 88,758,722 | 84,128,995 | 83,402,322 |
Other | 3,027 | ||
Treasury shares, at end of period | 105,580,011 | 88,758,722 | 84,128,995 |
Treasury shares, cost at beginning of period | $ 1,453,079 | $ 1,372,641 | $ 1,366,313 |
Treasury stock acquired, cost | 204,596 | 80,438 | 6,328 |
Other | 28 | ||
Treasury shares, cost at end of period | $ 1,657,675 | $ 1,453,079 | $ 1,372,641 |
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 | 2,735,060 | 1,372,101 | 451,196 |
Treasury stock acquired, cost | $ 35,965 | $ 23,237 | $ 3,727 |
2013 program | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 14,086,229 | 3,254,599 | |
Treasury stock acquired, cost | $ 168,631 | $ 57,173 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jun. 08, 2023 | May 31, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | May 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 01, 2023 | |
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 | 6,100,000 | ||||||||
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 and April 2022, | 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 and April 2022, the peer group includes three market indices and one market index, respectively. The performance 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. The recipients will receive the target number of shares if our total shareholder return during the performance period, when compared to the peer group, is at the 55th percentile. If our total shareholder return during the performance period, when compared to the peer group, is at the 75th percentile or higher, then the recipients will receive two times the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is at the 25th percentile, then the recipients will only receive one-half of the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is between the 25th and 55th percentile, or the 55th and 75th percentile, then the shares to be received by the recipients will be determined using linear interpolation for levels of achievement between these points. | ||||||||
Options outstanding | 2,865,223 | 2,905,150 | |||||||
Other Liabilities | $ 6,200 | ||||||||
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 | 1 year 8 months 8 days | ||||||||
Performance Shares [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Performance period | 3 years | ||||||||
Unrecognized compensation cost | $ 11,100 | ||||||||
Weighted-average remaining vesting period | 1 year 1 month 17 days | ||||||||
Performance Shares [Member] | 2018 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Compensation expense | $ 667 | ||||||||
Shares issued | 621,400 | ||||||||
Performance Shares [Member] | 2019 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Compensation expense | $ 830 | 3,319 | |||||||
Shares issued | 979,600 | ||||||||
Performance Shares [Member] | 2020 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Compensation expense | $ 69 | $ 275 | $ 275 | ||||||
Shares issued | 1,001,000 | ||||||||
Phantom Share Units (PSUs) [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
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 and April 2022, | 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 could 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 applied to the Performance Units granted in April 2020. The Phantom Units settled in May 2023, with a cash payment of $7.4 million. | ||||||||
Grant date fair value | $ 7,400 | ||||||||
Option to Purchase [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Options outstanding | 0 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Accrued liabilities | $ 2,400 | ||||||||
Share-Based Payment Arrangement, Accelerated Cost | 5,000 | ||||||||
Unrecognized compensation cost | $ 51,434 | ||||||||
Weighted-average remaining vesting period | 1 year 7 months 17 days | ||||||||
Maximum [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Option term | 10 years | ||||||||
Chief Executive Officer And President [Member] | Phantom Share Units (PSUs) [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of units awardable based on performance conditions | 298,500 | ||||||||
Chief Executive Officer And President [Member] | Maximum [Member] | Phantom Share Units (PSUs) [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 200% | ||||||||
Chief Executive Officer And President [Member] | Minimum [Member] | Phantom Share Units (PSUs) [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 0% | ||||||||
Two Thousand fourteen Long Term Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares authorized for grant | 4,900,000 | ||||||||
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] | |||||||||
Increase in number of shares available for issuance | 5,445,000 | ||||||||
Shares authorized for grant | 28,963,412 | 10,000,000 | |||||||
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 | ||||||||
NexTier Merger [Member] | Two Thousand fourteen Long Term Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares authorized for grant | 10,000,000 |
Stock-based Compensation - Shar
Stock-based Compensation - Share-Based Compensation Plans (Detail) - shares | Dec. 31, 2023 | Sep. 01, 2023 |
Two Thousand Twenty One Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 28,963,412 | 10,000,000 |
Shares Underlying Awards Outstanding | 5,004,289 | |
Shares available for grant | 13,910,294 | |
Two Thousand fourteen Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 4,900,000 | |
Shares Underlying Awards Outstanding | 2,571,965 | |
NexTier Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Underlying Awards Outstanding | 2,660,633 | |
Former C&J Energy Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Underlying Awards Outstanding | 789,337 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Detail) | 12 Months Ended | |
Dec. 31, 2023 $ / shares shares | ||
Shares | ||
Outstanding at beginning of year | 2,905,150 | |
Assumed | 652,573 | [1] |
Exercised | 0 | |
Expired | (692,500) | |
Outstanding at end of year | 2,865,223 | |
Exercisable at end of year | 2,865,223 | |
Weighted Average Exercise Price Per Share | ||
Outstanding at beginning of year | $ / shares | $ 22.19 | |
Assumed | 27.97 | [1] |
Exercised | $ / shares | $ 0 | |
Expired | $ / shares | 22.82 | |
Outstanding at end of year | $ / shares | 23.36 | |
Exercisable at the end of the year | $ / shares | $ 23.36 | |
[1] Awards assumed in connection with the NexTier merger. All of these assumed awards had been previously granted by NexTier under the NexTier Plan or the Former C&J Energy Plan, in periods prior to the NexTier merger. |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Aggregate grant date fair value of stock options vested during the year | $ 0 | $ 0 | $ 89 |
Aggregate intrinsic value of stock options exercised | $ 0 | $ 410 | $ 0 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Unit Activity (Detail) | 12 Months Ended | |
Dec. 31, 2023 $ / shares shares | ||
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 | 3,090,846 | |
Granted | 1,840,861 | |
Assumed | 7,438,031 | [1] |
Vested | (6,379,970) | |
Forfeited | (162,100) | |
Non-vested restricted stock outstanding at end of year | 5,827,668 | |
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 | 165,276 | |
Assumed | 0 | [1] |
Vested | 0 | |
Forfeited | (3,058) | |
Non-vested restricted stock outstanding at end of year | 521,533 | |
Restricted Stock Units (RSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested restricted stock outstanding at beginning of year | $ / shares | $ 12.71 | |
Granted | $ / shares | 11.6 | |
Assumed | $ / shares | 5.62 | [1] |
Vested | $ / shares | 5.95 | |
Forfeited | $ / shares | 13.78 | |
Non-vested restricted stock outstanding at end of year | $ / shares | $ 10.6 | |
[1] Awards assumed in connection with the NexTier merger. All of these assumed awards had been previously granted by NexTier under the NexTier Plan or the Former C&J Energy Plan, in periods prior to the NexTier merger. |
Stock-based Compensation - Ad_3
Stock-based Compensation - Additional Information on Non-vested Restricted Stock Unit (Detail) - Restricted Stock Units (RSUs) [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate intrinsic value | $ 65,937 |
Weighted-average remaining vesting period | 1 year 7 months 17 days |
Unrecognized compensation cost | $ 51,434 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Units (Detail) | 12 Months Ended |
Dec. 31, 2023 shares | |
2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 631,700 |
2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 414,000 |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 843,000 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 500,500 |
2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 489,800 |
2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 310,700 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value of Performance Units (Detail) - Performance Shares [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 8,440 |
2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 10,743 |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 7,225 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 826 |
2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 9,958 |
2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 8,004 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Options (Details) - Performance Shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Risk-free rate | [1] | 3.60% | 2.90% | 0.40% |
Expected stock volatility | [2] | 72.10% | 86.50% | 83.20% |
Expected dividend yield | [3] | 3% | 1% | 1.30% |
Expected term (in years) | 3 years | 3 years | 3 years | |
[1] The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. Expected volatilities are based on the daily closing price of our stock based upon historical experience over a three-year period Expected dividend yield is based on the annualized dividend in effect on the measurement date and the stock price on the grant date. |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense Associated with Performance Units (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 750,000 | ||
Performance Shares [Member] | 2023 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 2,248 | ||
Performance Shares [Member] | 2022 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 3,749 | $ 2,686 | |
Performance Shares [Member] | 2021 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 2,426 | 2,408 | 1,806 |
Performance Shares [Member] | 2020 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 69 | 275 | 275 |
Performance Shares [Member] | 2019 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 830 | 3,319 | |
Performance Shares [Member] | 2018 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 667 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessee Lease Description [Line Items] | |
Operating lease acquired | $ 51,389 |
Finance lease acquired | 56,933 |
Ulterra Acquisition [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease acquired | 7,500 |
Finance lease acquired | 5,200 |
NexTier Merger [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease acquired | 19,100 |
Finance lease acquired | $ 50,700 |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating leases remaining lease terms | 1 month |
Finance lease remaining lease term | 1 month |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating leases remaining lease terms | 10 years |
Finance lease remaining lease term | 6 years |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Leases [Abstract] | ||||
Operating lease cost | $ 10,073 | $ 5,664 | $ 4,984 | |
Amortization of right-of-use assets | 6,360 | 0 | 0 | |
Interest on lease liabilities | 1,395 | 0 | 0 | |
Total finance lease cost | 7,755 | 0 | 0 | |
Short-term lease expense | [1] | 2,278 | 0 | 41 |
Total lease expense | [2] | $ 20,106 | $ 5,664 | $ 5,025 |
[1] Short-term lease expense represents expense related to leases with a contract term of one year or less. Total lease expense is recorded in operating costs for the respective segments and within “ selling, general and administrative ” in our consolidated statements of operations. |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cashflow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 8,935 | $ 6,858 | $ 7,323 | |
Operating cash flows from finance leases | 1,380 | 0 | 0 | |
Financing cash flows from finance leases | 15,915 | 0 | 0 | |
Right of use assets obtained in exchange for lease obligations: | ||||
Operating leases | [1] | 34,802 | 6,530 | 6,413 |
Finance leases | [1] | $ 73,245 | $ 0 | $ 0 |
[1] Includes right of use assets acquired in business combinations. |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted Average Remaining Lease Term: | ||
Operating leases | 5 years | 6 years 1 month 6 days |
Finance leases | 1 year 6 months | |
Weighted Average Discount Rate: | ||
Operating leases | 6.10% | 4.10% |
Finance leases | 7.30% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 16,435 |
2025 | 12,975 |
2026 | 9,387 |
2027 | 7,130 |
2028 | 4,975 |
Thereafter | 9,354 |
Total lease payments | 60,256 |
Less imputed interest | (8,867) |
Total | 51,389 |
Finance Lease | |
2024 | 46,297 |
2025 | 4,842 |
2026 | 4,850 |
2027 | 1,485 |
2028 | 1,485 |
Thereafter | 2,080 |
Total lease payments | 61,039 |
Less imputed interest | (4,106) |
Total | $ 56,933 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||
Loss before income taxes for the U.S. jurisdictions | $ 315,000 | $ 166,000 | $ 721,000 |
Loss before income taxes for non-U.S. jurisdictions | $ 8,800 | $ 2,000 | $ 900 |
Effective tax rate | 19.90% | 7.90% | 8.70% |
Valuation allowances against net deferred tax assets | $ 75,250 | $ 91,685 | |
Gross U.S. federal net operating losses | 1,900,000 | ||
Gross Canadian net operating losses | 62,300 | ||
Gross Canadian net operating losses | 1,900,000 | ||
Post-apportionment U.S. state net operating losses | 22,600 | ||
Post-apportionment state net operating losses | 498,948 | $ 382,936 | |
Colombia | |||
Income Taxes [Line Items] | |||
Post-apportionment U.S. state net operating losses | $ 1,100,000 | ||
Net operating loss carryforwards expiration, beginning year | 2028 | ||
Net operating loss carryforwards expiration, ending year | 2032 | ||
Tax periods open for examination | the tax years ended December 31, 2017 through December 31, 2022 | ||
Canada | |||
Income Taxes [Line Items] | |||
Valuation allowances against net deferred tax assets | $ 16,400 | ||
Net operating loss carryforwards expiration, beginning year | 2036 | ||
Net operating loss carryforwards expiration, ending year | 2043 | ||
Tax periods open for examination | the tax years ended December 31, 2015 through December 31, 2022 | ||
State Jurisdictions | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards expiration, beginning year | 2024 | ||
Net operating loss carryforwards expiration, ending year | 2043 | ||
U.S. | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards expiration, beginning year | 2030 | ||
Net operating loss carryforwards expiration, ending year | 2037 | ||
Tax periods open for examination | the tax years ended December 31, 2010 through December 31, 2022 |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal income tax expense (benefit): | |||
Current | $ 0 | $ 480 | $ 0 |
Deferred | 44,369 | 11,820 | (86,878) |
Federal income tax benefit, Total | 44,369 | 12,300 | (86,878) |
State income tax expense (benefit): | |||
Current | 7,002 | 2,647 | 144 |
Deferred | 11,279 | (4,896) | 23,028 |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 18,281 | (2,249) | 23,172 |
Foreign income tax expense (benefit): | |||
Current | 1,578 | 2,750 | 134 |
Deferred | (3,076) | 403 | 870 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | (1,498) | 3,153 | 1,004 |
Total income tax expense (benefit): | |||
Current | 8,580 | 5,877 | 278 |
Deferred | 52,572 | 7,327 | (62,980) |
Total income tax expense (benefit) | $ 61,152 | $ 13,204 | $ (62,702) |
Difference Between Statutory Fe
Difference Between Statutory Federal Income Tax Rate and Effective Income Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
State income taxes - net of the federal income tax benefit | 3.20% | 3% | 3% |
State deferred tax remeasurement | (0.30%) | 9.40% | (0.80%) |
Valuation allowance | (9.20%) | (33.40%) | (13.30%) |
U.S. impact of foreign operations | 0% | 1.30% | 0% |
Acquisition related costs | 1.10% | 0% | 0% |
Effect of foreign taxes | 0.10% | 1.60% | (0.10%) |
Non-deductible compensation | 1.80% | 4.30% | (0.30%) |
Share-based compensation | 1.60% | (1.90%) | (0.30%) |
Non-deductible expenses | 0.70% | 1.20% | (0.20%) |
Other differences, net | (0.10%) | 1.40% | (0.30%) |
Effective tax rate | 19.90% | 7.90% | 8.70% |
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, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 498,948 | $ 382,936 |
Tax credits | 13,488 | 4,222 |
Expense associated with stock options and restricted stock | 10,892 | 8,178 |
Workers' compensation allowance | 7,024 | 15,770 |
Other deferred tax asset | 69,480 | 25,020 |
Total deferred tax assets, gross | 599,832 | 436,126 |
Allowance to reduce deferred tax asset to expected realizable value | (75,250) | (91,685) |
Total deferred tax assets, net | 524,582 | 344,441 |
Deferred tax liabilities: | ||
Property and equipment basis difference | (729,376) | (355,129) |
Other | (39,386) | (14,840) |
Total deferred tax liabilities | (768,762) | (369,969) |
Net deferred tax liability | $ (244,180) | $ (25,528) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
BASIC EPS: | |||
Net income (loss) from continuing operations attributed to common stockholders | $ 246,292 | $ 154,658 | $ (657,079) |
Net income from discontinued operations attributed to common stockholders | 2,534 | ||
Net income (loss) attributed to common stockholders | $ 246,292 | $ 154,658 | $ (654,545) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 279,501 | 215,935 | 195,021 |
Basic income (loss) from continuing operations per common share | $ 0.88 | $ 0.72 | $ (3.37) |
Basic income from discontinued operations per common share | 0.01 | ||
Basic net income (loss) per common share | $ 0.88 | $ 0.72 | $ (3.36) |
DILUTED EPS: | |||
Net income (loss) from continuing operations attributed to common stockholders | $ 246,292 | $ 154,658 | $ (657,079) |
Net income from discontinued operations attributed to common stockholders | 2,534 | ||
Net income (loss) attributed to common stockholders | $ 246,292 | $ 154,658 | $ (654,545) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 280,061 | 219,496 | 195,021 |
Diluted income (loss) from continuing operations per common share | $ 0.88 | $ 0.7 | $ (3.37) |
Diluted income from discontinued operations per common share | 0.01 | ||
Diluted net income (loss) per common share | $ 0.88 | $ 0.7 | $ (3.36) |
Potentially dilutive securities excluded as anti-dilutive | 9,214,000 | 3,541,000 | 9,551,000 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Cash contributions to 401(K) plan | $ 18.7 | $ 11 | $ 7.6 |
Business Segments - Additional
Business Segments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 4,146,456 | $ 2,647,592 | $ 1,357,081 | |
Long-lived assets | $ 2,331,755 | 3,340,412 | 2,260,576 | 2,331,755 |
One customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 588,000 | $ 476,000 | $ 216,000 | |
Consolidated Revenue, Percentage | 14% | 18% | 16% | |
U.S | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 4,057,212 | $ 2,577,471 | $ 1,341,330 | |
Long-lived assets | 2,292,448 | 3,257,937 | 2,213,242 | 2,292,448 |
COLOMBIA | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 50,692 | 70,121 | 15,751 | |
Long-lived assets | 39,307 | 48,434 | 47,334 | 39,307 |
Rigs and Spare Rig Components That Would No Longer Be Marketed | ||||
Segment Reporting Information [Line Items] | ||||
Impairment charge of drilling equipment | $ 220,000 | |||
Drilling Services | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 1,919,759 | $ 1,544,820 | $ 784,218 |
Business Segments - Property an
Business Segments - Property and equipment, net and revenue for our domestic and international operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, net | $ 3,340,412 | $ 2,260,576 | $ 2,331,755 |
Total revenues | 4,146,456 | 2,647,592 | 1,357,081 |
U.S | |||
Property and equipment, net | 3,257,937 | 2,213,242 | 2,292,448 |
Total revenues | 4,057,212 | 2,577,471 | 1,341,330 |
Colombia | |||
Property and equipment, net | 48,434 | 47,334 | 39,307 |
Total revenues | 50,692 | 70,121 | 15,751 |
International | |||
Property and equipment, net | 34,041 | 0 | 0 |
Total revenues | $ 38,552 | $ 0 | $ 0 |
Business Segments - Revenues (D
Business Segments - Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 4,146,456 | $ 2,647,592 | $ 1,357,081 | |
Drilling Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,919,759 | 1,544,820 | 784,218 | |
Completion Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,017,440 | 1,022,413 | 523,756 | |
Drilling Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 134,679 | 0 | 0 | |
Operating Segments | Drilling Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,976,401 | 1,581,380 | 805,295 | |
Operating Segments | Completion Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,017,440 | 1,022,413 | 523,756 | |
Operating Segments | Drilling Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 134,679 | 0 | 0 | |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [1] | 79,058 | 81,966 | 49,703 |
Intersegment Eliminations | Drilling Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [2] | (56,642) | (36,560) | (21,077) |
Intersegment Eliminations | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [2] | $ (4,480) | $ (1,607) | $ (596) |
[1] Other includes our oilfield rentals business and oil and natural gas working interests Intercompany revenues consist of revenues from drilling services provided to our other operations, and revenues from other operations for services provided to drilling services, completion services 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 351,954 | $ 211,031 | $ (677,750) | |
Credit loss expense | (842) | 0 | 1,500 | |
Interest income | 6,122 | 360 | 222 | |
Interest expense | (52,870) | (40,256) | (41,978) | |
Other | 1,898 | (3,273) | (275) | |
Income (loss) before income taxes | 307,104 | 167,862 | (719,781) | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | [1] | 555,721 | 283,910 | (583,916) |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 2,829 | 13,776 | (3,182) | |
Drilling Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | [1] | 422,002 | 149,807 | (465,053) |
Completion Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | [1] | 140,220 | 134,103 | (118,863) |
Drilling Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | [1] | (6,501) | 0 | 0 |
Corporate Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ (205,754) | $ (86,655) | $ (92,152) | |
[1] Segment operating income (loss) is our measure of segment profitability. It is defined as revenue less operating expenses, selling, general and administrative e xpenses, depreciation, amortization and impairment expenses and other operating income (loss). |
Business Segments - Depreciatio
Business Segments - Depreciation, Depletion, Amortization and Impairment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | $ 731,416 | $ 483,945 | $ 849,178 |
Drilling Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 364,312 | 354,116 | 660,402 |
Completion Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 283,230 | 98,162 | 159,305 |
Drilling Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 48,467 | 0 | 0 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 28,237 | 26,496 | 23,612 |
Corporate Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | $ 7,170 | $ 5,171 | $ 5,859 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 615,690 | $ 436,797 | $ 166,320 |
Segment, Expenditure, Addition to Long-Lived Assets | 615,690 | 436,797 | 166,320 |
Drilling Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment, Expenditure, Addition to Long-Lived Assets | 334,780 | 272,521 | 118,496 |
Completion Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment, Expenditure, Addition to Long-Lived Assets | 214,746 | 137,935 | 34,676 |
Drilling Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment, Expenditure, Addition to Long-Lived Assets | 24,572 | 0 | 0 |
Other Operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment, Expenditure, Addition to Long-Lived Assets | 24,645 | 25,215 | 11,627 |
Corporate Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment, Expenditure, Addition to Long-Lived Assets | $ 16,947 | $ 1,126 | $ 1,521 |
Business Segments - Identifiabl
Business Segments - Identifiable Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 7,420,031 | $ 3,143,823 | $ 2,957,848 | |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 59,221 | 64,018 | 62,766 | |
Drilling Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,368,604 | 2,348,177 | 2,279,952 | |
Completion Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 3,835,699 | 541,975 | 458,202 | |
Drilling Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 1,011,870 | 0 | 0 | |
Corporate Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | $ 144,637 | $ 189,653 | $ 156,928 |
[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, 2023 | Dec. 31, 2022 |
Concentration Risk [Line Items] | ||
Cash and cash equivalents | $ 192,680 | $ 137,553 |
Estimated Fair Value of Outstan
Estimated Fair Value of Outstanding Debt Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 1,246,086 | $ 836,405 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 1,223,284 | 744,720 |
3.95% Senior Notes Due 2028 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 482,505 | 488,505 |
3.95% Senior Notes Due 2028 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 450,540 | 431,556 |
5.15% Senior Notes Due 2029 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 344,895 | 347,900 |
5.15% Senior Notes Due 2029 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 329,032 | 313,164 |
7.15% Senior Notes Due 2033 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 400,000 | 0 |
7.15% Senior Notes Due 2033 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 424,946 | 0 |
Equipment Loans Due 2025 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 18,686 | 0 |
Equipment Loans Due 2025 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 18,766 | $ 0 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt interest rate | 5.25% | |
5.79% Market Rate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Current market rates used in measuring fair value | 5.79% | |
6.69% Market Rate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Current market rates used in measuring fair value | 6.69% | |
6.10% Market Rate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Current market rates used in measuring fair value | 6.10% | |
7.01% Market Rate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Current market rates used in measuring fair value | 7.01% | |
6.28% Market Rate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Current market rates used in measuring fair value | 6.28% | |
5.36% Market Rate [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Current market rates used in measuring fair value | 5.36% |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Allowance For Credit Losses | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | $ 2,875 | $ 8,493 | $ 10,842 | |
Charged to Costs and Expenses | 842 | (1,500) | ||
Charged to Other Accounts | 43 | |||
Deductions | [1] | (270) | (5,618) | (849) |
Ending Balance | 3,490 | 2,875 | 8,493 | |
Deferred tax valuation allowance | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | 91,685 | 189,737 | 19,133 | |
Charged to Costs and Expenses | 95,732 | |||
Charged to Other Accounts | 13,677 | 95,393 | ||
Deductions | 30,112 | (98,052) | (20,521) | |
Ending Balance | $ 75,250 | $ 91,685 | $ 189,737 | |
[1] Consists of uncollectible accounts written-off. |