Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 28, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'BASIC ENERGY SERVICES INC | ' |
Entity Central Index Key | '0001109189 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 43,170,095 |
Amendment Flag | 'false | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $116,627 | $111,532 |
Trade accounts receivable, net of allowance of $ 3,304 and $ 3,675, respectively | 220,787 | 204,394 |
Accounts receivable-related parties | 39 | 50 |
Income tax receivable | 2,897 | 3,475 |
Inventories | 35,548 | 34,240 |
Prepaid expenses | 15,234 | 9,597 |
Other current assets | 9,905 | 8,289 |
Deferred tax assets | 22,432 | 31,436 |
Total current assets | 423,469 | 403,013 |
Property and equipment, net | 892,460 | 928,037 |
Deferred debt costs, net of amortization | 15,357 | 16,145 |
Goodwill | 111,187 | 110,914 |
Other intangible assets, net of amortization | 75,429 | 77,555 |
Other assets | 7,113 | 7,675 |
Total assets | 1,525,015 | 1,543,339 |
Current liabilities: | ' | ' |
Accounts payable | 50,714 | 45,508 |
Accrued expenses | 71,067 | 77,058 |
Current portion of long-term debt | 40,687 | 41,394 |
Other current liabilities | 616 | 688 |
Total current liabilities | 163,084 | 164,648 |
Long-term debt, net of discount or premium on notes of $ 1,401 and $ 1,459 at March 31, 2014 and December 31, 2013, respectively | 840,143 | 846,691 |
Deferred tax liabilities | 154,584 | 164,306 |
Other long-term liabilities | 23,081 | 22,407 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock; $.01 par value; 5,000,000 shares authorized; none designated or issued at March 31, 2014 and December 31, 2013 | ' | ' |
Common stock; $.01 par value; 80,000,000 shares authorized; 43,500,032 shares issued and 43,170,095 shares outstanding at March 31, 2014; and 43,500,032 shares issued and 42,226,088 shares outstanding at December 31, 2013 | 435 | 435 |
Additional paid-in capital | 358,571 | 363,674 |
Retained earnings | -8,633 | -6,726 |
Treasury stock, at cost 329,937 and 1,273,944 shares at March 31, 2014 and December 31, 2013, respectively | -6,250 | -12,096 |
Total stockholders' equity | 344,123 | 345,287 |
Total liabilities and stockholders' equity | $1,525,015 | $1,543,339 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for trade accounts receivable | $3,304 | $3,675 |
Unamortized premium on notes | $1,401 | $1,459 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 43,500,032 | 43,500,032 |
Common stock, shares outstanding | 43,170,095 | 42,226,088 |
Treasury stock, shares | 329,937 | 1,273,944 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Total revenues | $336,756 | $304,351 |
Expenses: | ' | ' |
General and administrative, including stock-based compensation of $3,388 and $2,817 in three months ended March 31, 2014 and 2013, respectively | 39,559 | 41,957 |
Depreciation and amortization | 51,705 | 49,781 |
(Gain) loss on disposal of assets | -679 | 1,089 |
Total expenses | 322,772 | 303,875 |
Operating income | 13,984 | 476 |
Other income (expense): | ' | ' |
Interest expense | -16,859 | -16,808 |
Interest income | 13 | 17 |
Other income | 366 | 162 |
Loss from continuing operations before income taxes | -2,496 | -16,153 |
Income tax benefit | 589 | 7,375 |
Net loss | -1,907 | -8,778 |
Basic earnings per share of common stock: | ' | ' |
Basic earnings per common share: | ($0.05) | ($0.22) |
Diluted earnings per share of common stock: | ' | ' |
Diluted earnings per common share: | ($0.05) | ($0.22) |
Completion And Remedial Services [Member] | ' | ' |
Revenues: | ' | ' |
Total revenues | 137,485 | 118,361 |
Expenses: | ' | ' |
Depreciation and amortization | 15,727 | 14,932 |
Total expenses | 86,480 | 79,008 |
Fluid Services [Member] | ' | ' |
Revenues: | ' | ' |
Total revenues | 92,835 | 84,330 |
Expenses: | ' | ' |
Depreciation and amortization | 16,063 | 14,311 |
Total expenses | 66,782 | 57,874 |
Well Servicing [Member] | ' | ' |
Revenues: | ' | ' |
Total revenues | 92,912 | 87,675 |
Expenses: | ' | ' |
Depreciation and amortization | 13,980 | 14,787 |
Total expenses | 69,759 | 65,002 |
Contract Drilling | ' | ' |
Revenues: | ' | ' |
Total revenues | 13,524 | 13,985 |
Expenses: | ' | ' |
Total expenses | $9,166 | $9,164 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Stock-based compensation included in general and administrative expense | $3,388 | $2,817 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Total |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2013 | $435 | $363,674 | ($12,096) | ($6,726) | $345,287 |
Beginning Balance (in shares) at Dec. 31, 2013 | 43,500,032 | ' | ' | ' | ' |
Issuances of restricted stock | ' | -9,543 | 9,543 | ' | ' |
Amortization of share-based compensation | ' | 3,388 | ' | ' | 3,388 |
Purchase of treasury stock | ' | ' | -6,244 | ' | -6,244 |
Exercise of stock options | ' | 1,052 | 2,547 | ' | 3,599 |
Net loss | ' | ' | ' | -1,907 | -1,907 |
Ending Balance at Mar. 31, 2014 | $435 | $358,571 | ($6,250) | ($8,633) | $344,123 |
Ending Balance (in shares) at Mar. 31, 2014 | 43,500,032 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($1,907,000) | ($8,778,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 51,705,000 | 49,781,000 |
Accretion on asset retirement obligation | 31,000 | 28,000 |
Change in allowance for doubtful accounts | -371,000 | 261,000 |
Amortization of deferred financing costs | 799,000 | 754,000 |
Amortization of premium on notes | -58,000 | -53,000 |
Non-cash compensation | 3,387,000 | 2,817,000 |
(Gain) loss on disposal of assets | -679,000 | 1,089,000 |
Deferred income taxes | -718,000 | -7,486,000 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | -16,011,000 | -10,405,000 |
Inventories | -1,308,000 | 611,000 |
Prepaid expenses and other current assets | -6,703,000 | -6,729,000 |
Other assets | 562,000 | 257,000 |
Accounts payable | 5,206,000 | -11,109,000 |
Income tax receivable | 99,000 | 44,000 |
Other liabilities | 639,000 | 239,000 |
Accrued expenses | -6,106,000 | -1,837,000 |
Net cash provided by operating activities | 28,567,000 | 9,484,000 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment | -33,106,000 | -39,873,000 |
Proceeds from sale of mutual fund | ' | 5,635,000 |
Proceeds from sale of assets | 23,297,000 | 3,498,000 |
Payments for other long-term assets | -363,000 | -260,000 |
Payments for businesses, net of cash acquired | ' | -16,464,000 |
Net cash used in investing activities | -10,172,000 | -47,464,000 |
Cash flows from financing activities: | ' | ' |
Payments of debt | -11,124,000 | -11,628,000 |
Purchase of treasury stock | -6,244,000 | -3,500,000 |
Tax withholding from exercise of stock options | -362,000 | -59,000 |
Exercise of employee stock options | 4,441,000 | 172,000 |
Deferred loan costs and other financing activities | -11,000 | -81,000 |
Net cash used in financing activities | -13,300,000 | -15,096,000 |
Net (decrease) increase in cash and equivalents | 5,095,000 | -53,076,000 |
Cash and cash equivalents - beginning of period | 111,532,000 | 134,565,000 |
Cash and cash equivalents - end of period | $116,627,000 | $81,489,000 |
Basis_of_Presentation_and_Natu
Basis of Presentation and Nature of Operations | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Nature of Operations | ' |
Basis of Presentation and Nature of Operations | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Basic Energy Services, Inc. and subsidiaries (“Basic” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation have been made in the accompanying unaudited financial statements. | |
Nature of Operations | |
Basic provides a wide range of well site services to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. These services are primarily provided using Basic’s fleet of equipment. Basic’s operations are concentrated in the major United States onshore oil and gas producing regions in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, Kentucky, Ohio and Pennsylvania. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||
Principles of Consolidation | |||||||||||||||
The accompanying consolidated financial statements include the accounts of Basic and its wholly owned subsidiaries. Basic has no variable interest in any other organization, entity, partnership, or contract. All intercompany transactions and balances have been eliminated. | |||||||||||||||
Estimates and Uncertainties | |||||||||||||||
Preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas where critical accounting estimates are made by management include: | |||||||||||||||
· | Depreciation and amortization of property and equipment and intangible assets | ||||||||||||||
· | Impairment of property and equipment, goodwill and intangible assets | ||||||||||||||
· | Allowance for doubtful accounts | ||||||||||||||
· | Litigation and self-insured risk reserves | ||||||||||||||
· | Fair value of assets acquired and liabilities assumed | ||||||||||||||
· | Future cash flows | ||||||||||||||
· | Stock-based compensation | ||||||||||||||
· | Income taxes | ||||||||||||||
· | Asset retirement obligations | ||||||||||||||
· | Environmental liabilities | ||||||||||||||
Revenue Recognition | |||||||||||||||
Completion and Remedial Services — Completion and remedial services consists primarily of pumping services focused on cementing, acidizing and fracturing, nitrogen units, coiled tubing units, snubbing units, thru-tubing and rental and fishing tools. Basic recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. Basic prices completion and remedial services by the hour, day, or project depending on the type of service performed. When Basic provides multiple services to a customer, revenue is allocated to the services performed based on the fair value of the services. | |||||||||||||||
Well Servicing — Well servicing consists primarily of maintenance services, workover services, completion services, plugging and abandonment services and rig manufacturing and servicing. Basic recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. Basic prices well servicing by the hour or by the day of service performed. Rig manufacturing revenue is recognized when the rig is accepted by the customer, based on the completed contract method by individual rig. | |||||||||||||||
Fluid Services — Fluid services consists primarily of the sale, transportation, treatment, storage and disposal of fluids used in the drilling, production and maintenance of oil and natural gas wells, and well site construction and maintenance services. Basic recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. Basic prices fluid services by the job, by the hour or by the quantities sold, disposed of or hauled. | |||||||||||||||
Contract Drilling — Contract drilling consists primarily of drilling wells to a specified depth using drilling rigs. Basic recognizes revenues based on either a “daywork” contract, in which an agreed upon rate per day is charged to the customer, a “footage” contract, in which an agreed upon rate is charged per the number of feet drilled, or a “turnkey” contract, in which an agreed upon single rate is charged for a drilled well. | |||||||||||||||
Taxes assessed on sales transactions are presented on a net basis and are not included in revenue. | |||||||||||||||
Inventories | |||||||||||||||
Rental and fishing tool inventories, consisting mainly of grapples, mills and drill bits, are stated at the lower of cost or market, with cost being determined by the average cost method. Other inventories, consisting mainly of manufacturing raw materials, rig components, repair parts, drilling and completion materials and gravel, are held for use in the operations of Basic and are stated at the lower of cost or market, with cost being determined on the first-in, first-out (“FIFO”) method. | |||||||||||||||
Property and Equipment | |||||||||||||||
Property and equipment are stated at cost or at estimated fair value at acquisition date if acquired in a business combination. Expenditures for repairs and maintenance are charged to expense as incurred and additions and improvements that significantly extend the lives of the assets are capitalized. Upon sale or other retirement of depreciable property, the cost and accumulated depreciation and amortization are removed from the related accounts and any gain or loss is reflected in operations. All property and equipment are depreciated or amortized (to the extent of estimated salvage values) on the straight-line method. The components of a well servicing rig generally require replacement or refurbishment during the well servicing rig’s life and are depreciated over their estimated useful lives, which range from 3 to 15 years. The costs of the original components of a purchased or acquired well servicing rig are not maintained separately from the base rig. | |||||||||||||||
Impairments | |||||||||||||||
Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment at least annually, or whenever, in management’s judgment, events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of such assets to estimated undiscounted future cash flows expected to be generated by the assets. Expected future cash flows and carrying values are aggregated at their lowest identifiable level. If the carrying amount of such assets exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of such assets exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities, if material, of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet. These assets are normally sold within a short period of time through a third party auctioneer. | |||||||||||||||
Basic’s goodwill and trade name intangibles are considered to have an indefinite useful economic life and are not amortized. Basic assesses impairment of its goodwill and trade name intangibles annually as of December 31 or on an interim basis if events or circumstances indicate that the fair value of the assets has decreased below the assets’ carrying value. A qualitative assessment is allowed to determine if goodwill is potentially impaired. The qualitative assessment determines whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then the two-step impairment test is performed. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the fair value of the reporting unit’s goodwill is determined by allocating the unit’s fair value to its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The amount of impairment for goodwill is measured as the excess of its carrying value over its fair value. | |||||||||||||||
Deferred Debt Costs | |||||||||||||||
Basic capitalizes certain costs in connection with obtaining its borrowings, such as lender’s fees and related attorney’s fees. These costs are amortized to interest expense using the effective interest method. | |||||||||||||||
Deferred debt costs were approximately $ 23.4 million net of accumulated amortization of $ 8.0 million, and $ 23.3 million net of accumulated amortization of $ 7.2 million at March 31, 2014 and December 31, 2013, respectively. Amortization of deferred debt costs totaled approximately $ 799,000 and $ 754,000 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||
Goodwill and other intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Basic completes its assessment of goodwill and trade name intangible impairment as of December 31 of each year. | |||||||||||||||
Basic had trade names of $ 1.9 million as of March 31, 2014 and December 31, 2013. Trade names have an indefinite life and are tested for impairment annually. | |||||||||||||||
Additions to goodwill during the three months ended March 31, 2014 were primarily due to the purchase price allocations for acquisitions completed during prior years. These purchase price allocations were preliminary and subject to change. The changes in the carrying amount of goodwill for the three months ended March 31, 2014 were as follows (in thousands): | |||||||||||||||
Completion | |||||||||||||||
And Remedial | |||||||||||||||
Services | Well | Fluid Services | Contract Drilling | Total | |||||||||||
Balance as of December 31, 2013 | $ | 77,697 | $ | 6,622 | $ | 26,595 | $ | — | $ | 110,914 | |||||
Goodwill additions | — | — | 273 | — | 273 | ||||||||||
Balance as of March 31, 2014 | $ | 77,697 | $ | 6,622 | $ | 26,868 | $ | — | $ | 111,187 | |||||
Basic’s intangible assets subject to amortization consist of customer relationships, non-compete agreements and rig engineering plans. The gross carrying amount of customer relationships subject to amortization was $ 87.1 million at March 31, 2014 and December 31, 2013. The gross carrying amount of non-compete agreements subject to amortization totaled approximately $ 13.0 million at March 31, 2014 and December 31, 2013. The gross carrying amount of other intangible assets subject to amortization was $ 2.1 million at March 31, 2014 and December 31, 2013. Accumulated amortization related to these intangible assets totaled approximately $ 28.7 million and $ 26.6 million at March 31, 2014 and December 31, 2013, respectively. Amortization expense for the three months ended March 31, 2014 and 2013 was approximately $ 2.1 million and $ 2.0 million, respectively. Other intangibles net of accumulated amortization allocated to reporting units as of March 31, 2014 were $ 54.6 million, $ 5.7 million, $ 11.5 million and $3.6 million for completion and remedial services, well servicing, fluid services, and contract drilling, respectively. No adjustments were made to prior periods to reflect subsequent adjustments to acquisitions due to immateriality. Customer relationships are amortized over a 15-year life, non-compete agreements are amortized over a five-year life, developed technology is amortized over a 15-year life and rig engineering plans are amortized over a 15-year life. | |||||||||||||||
Stock-Based Compensation | |||||||||||||||
Basic’s outstanding stock-based awards consist of stock options and restricted stock. Stock options issued are valued on the grant date using the Black-Scholes-Merton option-pricing model, and restricted stock issued is valued based on the fair value at the grant date. All stock-based awards are adjusted for an expected forfeiture rate and amortized over the vesting period. For performance-based restricted stock awards, compensation expense is recognized in the Company's financial statements based on their grant date fair value. Basic utilizes (i) the closing stock price on the date of grant to determine the fair value of vesting restricted stock awards and (ii) a Monte Carlo simulation to determine the fair value of restricted stock awards with a combination of market and service vesting criteria. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant. | |||||||||||||||
Certain Basic share-based awards also provide for potential reissuances of unvested shares otherwise forfeited at retirement, provided the recipient also enters into required non-competition and severance agreements. Notwithstanding these service conditions, for expense recognition we generally deem the vesting period after the retirement to be non-substantive, and treat the requisite service period from the grant date to the first date when the employee is eligible to retire. | |||||||||||||||
Income Taxes | |||||||||||||||
Deferred tax assets and liabilities are recognized 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 statutory tax rates expected to apply to taxable income in the years 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 rate is recognized in the period that includes the statutory enactment date. A valuation allowance for deferred tax assets is recognized when it is more likely than not that the benefit of deferred tax assets will not be realized. | |||||||||||||||
Interest charges are recorded in interest expense and penalties are recorded in income tax expense. | |||||||||||||||
Concentrations of Credit Risk | |||||||||||||||
Financial instruments, which potentially subject Basic to concentration of credit risk, consist primarily of temporary cash investments and trade receivables. Basic restricts investment of temporary cash investments to financial institutions with high credit standing. Basic’s customer base consists primarily of multi-national and independent oil and natural gas producers. Basic performs ongoing credit evaluations of its customers but generally does not require collateral on its trade receivables. Credit risk is considered by management to be limited due to the large number of customers comprising its customer base. Basic maintains an allowance for potential credit losses on its trade receivables, and such losses have been within management’s expectations. | |||||||||||||||
Basic did not have any one customer that represented 10% or more of consolidated revenue during the three months ended March 31, 2014 or 2013. | |||||||||||||||
Asset Retirement Obligations | |||||||||||||||
Basic records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets and capitalizes an equal amount as a cost of the asset depreciating it over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each quarter to reflect the passage of time, changes in the estimated future cash flows underlying the obligation, acquisition or construction of assets, and settlements of obligations. | |||||||||||||||
Environmental | |||||||||||||||
Basic is subject to extensive federal, state and local environmental laws and regulations. These laws, which are constantly changing, regulate the discharge of materials into the environment and may require Basic to remove or mitigate the adverse environmental effects of disposal or release of petroleum, chemicals and other substances at various sites. Environmental expenditures are expensed or capitalized depending on the future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. | |||||||||||||||
Litigation and Self-Insured Risk Reserves | |||||||||||||||
Basic estimates its reserves related to litigation and self-insured risks based on the facts and circumstances specific to the litigation and self-insured claims, its past experience with similar claims and the likelihood of the future event occurring. Basic maintains accruals on the consolidated balance sheets to cover self-insurance retentions (See note 6). | |||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist” (“ASU2013-11”). ASU 2013-11 reduces diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exit. ASU 2013-11 became effective for Basic on January 1, 2014 and it did not have a material impact on Basic’s consolidated financial statements. | |||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. Basic does not believe this pronouncement will have a material impact on it’s consolidated financial statements. | |||||||||||||||
Acquisitions
Acquisitions | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Acquisitions [Abstract] | ' | ||||
Acquisitions | ' | ||||
3. Acquisitions | |||||
During 2013, Basic acquired either substantially all of the assets or all of the outstanding capital stock of each of the following businesses, each of which was accounted for using the purchase method of accounting. During the three months ended March 31, 2014, Basic did not complete any acquisitions. The following table summarizes the final values for the acquisitions at the date of acquisition (in thousands): | |||||
Total Cash Paid | |||||
Closing Date | (net of cash acquired) | ||||
Atlas Environmental Consulting, Inc. and Atlas Oilfield Construction Company, LLC | 19-Feb-13 | $ | 12,979 | ||
Petroleum Water Solutions, LLC | 22-Feb-13 | 3,288 | |||
Karnes Water Management, LLC | 31-Dec-13 | 5,200 | |||
Total 2013 | $ | 21,467 | |||
The operations of each of the acquisitions listed above are included in Basic’s statement of operations as of each respective closing date. The provisional value used on Karnes Water Management, LLC will be finalized once the valuation of the tangible and intangible assets is complete. | |||||
Property_And_Equipment
Property And Equipment | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Property Plant And Equipment [Abstract] | ' | |||||
Property And Equipment | ' | |||||
4. Property and Equipment | ||||||
Property and equipment consisted of the following (in thousands): | ||||||
31-Mar-14 | 31-Dec-13 | |||||
Land | $ | 17,321 | $ | 17,800 | ||
Buildings and improvements | 66,707 | 65,702 | ||||
Well service units and equipment | 459,723 | 498,846 | ||||
Fluid services equipment | 254,252 | 258,371 | ||||
Brine and fresh water stations | 14,159 | 13,496 | ||||
Frac/test tanks | 282,505 | 275,603 | ||||
Pumping equipment | 299,654 | 299,300 | ||||
Construction equipment | 15,296 | 15,677 | ||||
Contract drilling equipment | 104,223 | 104,958 | ||||
Disposal facilities | 148,146 | 143,459 | ||||
Light vehicles | 62,951 | 64,942 | ||||
Rental equipment | 70,265 | 70,738 | ||||
Software | 23,357 | 23,360 | ||||
Other | 16,471 | 16,754 | ||||
1,835,030 | 1,869,006 | |||||
Less accumulated depreciation and amortization | 942,570 | 940,969 | ||||
Property and equipment, net | $ | 892,460 | $ | 928,037 | ||
Basic is obligated under various capital leases for certain vehicles and equipment that expire at various dates during the next five years. The gross amount of property and equipment and related accumulated amortization recorded under capital leases and included above consisted of the following (in thousands): | ||||||
31-Mar-14 | 31-Dec-13 | |||||
Light vehicles | $ | 40,843 | $ | 39,970 | ||
Contract drilling equipment | 4,223 | 4,223 | ||||
Well service units and equipment | 2,028 | 1,554 | ||||
Fluid services equipment | 117,316 | 121,051 | ||||
Pumping equipment | 29,176 | 29,080 | ||||
Construction equipment | 561 | 1,005 | ||||
Software | 17,120 | 17,120 | ||||
Other | 70 | 70 | ||||
211,337 | 214,073 | |||||
Less accumulated amortization | 81,846 | 77,340 | ||||
$ | 129,491 | $ | 136,733 | |||
Amortization of assets held under capital leases of approximately $ 8.5 million and $ 7.3 million for the three months ended March 31, 2014 and 2013, respectively, is included in depreciation and amortization expense in the consolidated statements of operations. | ||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Long-Term Debt [Abstract] | ' | |||||
Long-Term Debt | ' | |||||
5. Long-Term Debt | ||||||
Long-term debt consisted of the following (in thousands): | ||||||
31-Mar-14 | 31-Dec-13 | |||||
Credit Facilities: | ||||||
Revolver | — | — | ||||
7.75% Senior Notes due 2019 | $ | 475,000 | $ | 475,000 | ||
7.75% Senior Notes due 2022 | 300,000 | 300,000 | ||||
Unamortized premium | 1,401 | 1,459 | ||||
Capital leases and other notes | 104,429 | 111,626 | ||||
880,830 | 888,085 | |||||
Less current portion | 40,687 | 41,394 | ||||
$ | 840,143 | $ | 846,691 | |||
7.75% Senior Notes due 2019 | ||||||
On February 15, 2011, Basic issued $ 275.0 million of 7.75% Senior Notes due 2019 (the “2019 Notes”). On June 13, 2011, Basic issued an additional $ 200.0 million of 2019 Notes, resulting in outstanding 2019 Notes with an aggregate principal amount of $ 475.0 million. The 2019 Notes are jointly and severally, and unconditionally, guaranteed on a senior unsecured basis by all of Basic’s current subsidiaries, other than three immaterial subsidiaries. The 2019 Notes and the guarantees rank (i) equally in right of payment with any of Basic’s and the subsidiary guarantors’ existing and future senior indebtedness, including Basic’s existing 7.75% Senior Notes due 2022 and the related guarantees, and (ii) effectively junior to all existing or future liabilities of Basic’s subsidiaries that do not guarantee the 2019 Notes and to Basic’s and the subsidiary guarantors’ existing or future secured indebtedness to the extent of the value of the collateral therefor. | ||||||
The 2019 Notes and guarantees were offered and sold in private transactions in accordance with Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). | ||||||
The purchase price for the $ 275.0 million of 2019 Notes issued on February 15, 2011 was 100.000% of their principal amount, and the purchase price for the $ 200.0 million of 2019 Notes issued on June 13, 2011 was 101.000%, plus accrued interest from February 15, 2011. Basic received net proceeds from the issuance of the 2019 Notes of approximately $ 464.6 million after premiums and offering expenses. Basic used a portion of the net proceeds from the February 2011 offering to fund its tender offer and consent solicitation for its 11.625% Senior Secured Notes due 2014 and to redeem any of the Senior Secured Notes not purchased in the tender offer. Basic used a portion of the net proceeds from the June 2011 offering to fund the $ 186.3 million purchase price for the Maverick Companies acquisition completed in July 2011 and the remainder for general corporate purposes. | ||||||
The 2019 Notes were issued pursuant to an indenture dated as of February 15, 2011 (the “2019 Notes Indenture”), by and among Basic, the guarantors party thereto and Wells Fargo Bank, National Association, as trustee. Interest on the 2019 Notes accrues at a rate of 7.75% per year and is payable semi-annually in arrears on February 15 and August 15 of each year. The 2019 Notes mature on February 15, 2019. | ||||||
The 2019 Notes Indenture contains covenants that, among other things, limit Basic’s ability and the ability of certain of its subsidiaries to: | ||||||
· | incur additional indebtedness; | |||||
· | pay dividends or repurchase or redeem capital stock; | |||||
· | make certain investments; | |||||
· | incur liens; | |||||
· | enter into certain types of transactions with affiliates; | |||||
· | limit dividends or other payments by Basic’s restricted subsidiaries to Basic; and | |||||
· | sell assets or consolidate or merge with or into other companies. | |||||
These and other covenants that are contained in the 2019 Notes Indenture are subject to important exceptions and qualifications. At March 31, 2014, Basic was in compliance with the restrictive covenants under the 2019 Notes Indenture. | ||||||
Basic may, at its option, redeem all or part of the 2019 Notes, at any time on or after February 15, 2015, at a redemption price equal to 100% of the principal amount thereof, plus a premium declining ratably to par and accrued and unpaid interest to the date of redemption. | ||||||
At any time before February 15, 2014, Basic, at its option, may redeem up to 35% of the aggregate principal amount of the 2019 Notes with the net cash proceeds of one or more qualified equity offerings at a redemption price of 107.750% of the principal amount of the 2019 Notes to be redeemed, plus accrued and unpaid interest to the date of redemption, as long as: | ||||||
· | at least 65% of the aggregate principal amount of the 2019 Notes remains outstanding immediately after the occurrence of such redemption; and | |||||
· | such redemption occurs within 90 days of the date of the closing of any such qualified equity offering. | |||||
In addition, at any time before February 15, 2015, Basic may redeem some or all of the 2019 Notes at a redemption price equal to 100% of the principal amount of the 2019 Notes, plus an applicable premium and accrued and unpaid interest to the date of redemption. | ||||||
Following a change of control, as defined in the 2019 Notes Indenture, Basic will be required to make an offer to repurchase all or a portion of the 2019 Notes at 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. | ||||||
7.75% Senior Notes due 2022 | ||||||
On October 16, 2012, Basic completed the issuance and sale of $ 300.0 million aggregate principal amount of 7.75% Senior Notes due 2022 (the “2022 Notes”). The 2022 Notes are jointly and severally, and unconditionally, guaranteed on a senior unsecured basis initially by all of Basic’s current subsidiaries other than three immaterial subsidiaries. The 2022 Notes and the guarantees rank (i) equally in right of payment with any of Basic’s and the subsidiary guarantors’ existing and future senior indebtedness, including Basic’s existing 2019 Notes and the related guarantees, and (ii) effectively junior to all existing or future liabilities of Basic’s subsidiaries that do not guarantee the 2022 Notes and to Basic’s and the subsidiary guarantors’ existing or future secured indebtedness to the extent of the value of the collateral therefor. | ||||||
The 2022 Notes and the guarantees were offered and sold in private transactions in accordance with Rule 144A and Regulation S under the Securities Act. Basic received net proceeds from the issuance of the 2022 Notes of approximately $ 293.3 million after discounts and offering expenses. Basic used a portion of the net proceeds from the offering to fund its tender offer and consent solicitation for its 7.125% Senior Notes due 2016 (the “2016 Notes”) and to redeem any of the 2016 Notes not purchased in the tender offer. The remainder of the net proceeds were used for general corporate purposes. | ||||||
The 2022 Notes and the guarantees were issued pursuant to an indenture dated as of October 16, 2012 (the “2022 Notes Indenture”), by and among Basic, the guarantors party thereto and Wells Fargo Bank, National Association, as trustee. Interest on the 2022 Notes accrues at a rate of 7.75% per year and is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2013. The 2022 Notes mature on October 15, 2022. | ||||||
The 2022 Notes Indenture contains covenants that, among other things, limit Basic’s ability and the ability of certain of its subsidiaries to: | ||||||
· | incur additional indebtedness; | |||||
· | pay dividends or repurchase or redeem capital stock; | |||||
· | make certain investments; | |||||
· | incur liens; | |||||
· | enter into certain types of transactions with affiliates; | |||||
· | limit dividends or other payments by Basic’s restricted subsidiaries to Basic; and | |||||
· | sell assets or consolidate or merge with or into other companies. | |||||
These and other covenants that are contained in the 2022 Notes Indenture are subject to important exceptions and qualifications. At March 31, 2014, Basic was in compliance with the restrictive covenants under the 2022 Notes Indenture. | ||||||
Basic may, at its option, redeem all or part of the 2022 Notes, at any time on or after October 15, 2017, at a redemption price equal to 100% of the principal amount thereof, plus a premium declining ratably to par and accrued and unpaid interest to the date of redemption. | ||||||
At any time before October 15, 2015, Basic, at its option, may redeem up to 35% of the aggregate principal amount of the 2022 Notes with the net cash proceeds of one or more qualified equity offerings at a redemption price of 107.750% of the principal amount of the 2022 Notes to be redeemed, plus accrued and unpaid interest to the date of redemption, as long as: | ||||||
· | at least 65% of the aggregate principal amount of the 2022 Notes remains outstanding immediately after the occurrence of such redemption; and | |||||
· | such redemption occurs within 90 days of the date of the closing of any such qualified equity offering. | |||||
In addition, at any time before October 15, 2017, Basic may redeem some or all of the 2022 Notes at a redemption price equal to 100% of the principal amount of the 2022 Notes, plus an applicable premium and accrued and unpaid interest to the date of redemption. | ||||||
Following a change of control, as defined in the 2022 Notes Indenture, Basic will be required to make an offer to repurchase all or a portion of the 2022 Notes at 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. | ||||||
Revolving Credit Facility | ||||||
On February 15, 2011, in connection with the initial offering of 2019 Notes, Basic terminated the previous $ 30.0 million secured revolving credit facility with Capital One, National Association, and entered into a credit agreement (the “Credit Agreement”) providing for a new $ 165.0 million Revolving Credit Facility with Merrill Lynch, Pierce, Fenner & Smith Incorporated and Capital One, National Association, as joint lead arrangers and joint book managers, the lenders party thereto and Bank of America, N.A., as administrative agent. The Credit Agreement includes an accordion feature whereby the total credit available to Basic can be increased by up to $ 100.0 million under certain circumstances, subject to additional lender commitments. The obligations under the Credit Agreement are guaranteed on a joint and several basis by each of Basic’s current subsidiaries, other than three immaterial subsidiaries, and are secured by substantially all of Basic’s and its subsidiary guarantors’ assets as collateral under a related Security Agreement (the “Security Agreement”). As of March 31, 2014 and December 31, 2013, the non-guarantor subsidiaries held no assets and performed no operations. On July 15, 2011, Basic exercised the accordion feature and amended the Credit Agreement to increase Basic’s total credit available from $ 165.0 million to $ 225.0 million. On April 5, 2012, Basic amended the Credit Agreement to increase the aggregate amount of commitments thereunder to $ 250.0 million. On October 1, 2012, Basic further amended the Credit Agreement to permit the transactions contemplated by the offering of 2022 Notes and the tender offer and redemption of 2016 Notes. On August 29, 2013, Basic further amended the Credit Agreement to amend the required leverage ratios. | ||||||
Borrowings under the Credit Agreement mature on January 15, 2016, and Basic has the ability at any time to prepay the Credit Agreement without premium or penalty. At Basic’s option, advances under the Credit Agreement may be comprised of (i) alternate base rate loans, at a variable base interest rate plus a margin ranging from 1.50% to 2.50% based on Basic’s leverage ratio or (ii) Eurodollar loans, at a variable base interest rate plus a margin ranging from 2.50% to 3.50% based on Basic’s leverage ratio. Basic will pay a commitment fee equal to 0.50% on the daily unused amount of the commitments under the Credit Agreement. | ||||||
The Credit Agreement contains various covenants that, subject to agreed upon exceptions, limit Basic’s ability and the ability of certain of its subsidiaries to: | ||||||
· | incur indebtedness; | |||||
· | grant liens; | |||||
· | enter into sale and leaseback transactions; | |||||
· | make loans, capital expenditures, acquisitions and investments; | |||||
· | change the nature of business; | |||||
· | acquire or sell assets or consolidate or merge with or into other companies; | |||||
· | declare or pay dividends; | |||||
· | enter into transactions with affiliates; | |||||
· | enter into burdensome agreements; | |||||
· | prepay, redeem or modify or terminate other indebtedness; | |||||
· | change accounting policies and reporting practices; and | |||||
· | amend organizational documents. | |||||
The Credit Agreement also contains covenants that, among other things, limit the amount of capital contributions Basic may make and require Basic to maintain specified ratios or conditions as follows: | ||||||
· | a minimum consolidated interest coverage ratio of not less than 2.50 to 1.00; | |||||
· | a maximum consolidated leverage ratio as follows: | |||||
o for the four fiscal quarters ending September 30, 2013 and December 31, 2013, a maximum consolidated leverage ratio not to exceed 4.50 to 1.00; | ||||||
o for the four fiscal quarters ending March 31, 2014 and June 30, 2014, a maximum consolidated leverage ratio not to exceed 4.25 to 1.00; and | ||||||
o for the four fiscal quarters ending September 30, 2014 and each fiscal quarter thereafter, a maximum consolidated leverage ratio not to exceed 4.00 to 1.00; and | ||||||
· | a maximum consolidated senior secured leverage ratio as follows: | |||||
o for the four fiscal quarters ending September 30, 2013 through June 30, 2014, a maximum consolidated senior secured leverage ratio not to exceed 1.75 to 1.00; and | ||||||
o for the four fiscal quarters ending September 30, 2014 and each fiscal quarter thereafter, a maximum consolidated senior secured leverage ratio not to exceed 2.00 to 1.00. | ||||||
If an event of default occurs under the Credit Agreement, then the lenders may (i) terminate their commitments under the Credit Agreement, (ii) declare any outstanding loans under the Credit Agreement to be immediately due and payable after applicable grace periods and (iii) foreclose on the collateral secured by the Security Agreement. | ||||||
Basic had no borrowings and $ 37.7 million of letters of credit outstanding under the Credit Agreement as of March 31, 2014, giving Basic $ 212.3 million of available borrowing capacity. At March 31, 2014, Basic was in compliance with the covenants under the Credit Agreement. | ||||||
Other Debt | ||||||
Basic has a variety of other capital leases and notes payable outstanding that are generally customary in its business. None of these debt instruments are individually material. Basic’s leases with Banc of America Leasing & Capital, LLC require it to maintain a minimum debt service coverage ratio of 1.05 to 1.00. At March 31, 2014, Basic was in compliance with this covenant. | ||||||
Basic’s interest expense consisted of the following (in thousands): | ||||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Cash payments for interest | $ | 18,933 | $ | 19,266 | ||
Commitment and other fees paid | 585 | 455 | ||||
Amortization of debt issuance costs and discount or premium on notes | 740 | 700 | ||||
Change in accrued interest | -3,405 | -3,402 | ||||
Other | 6 | -211 | ||||
$ | 16,859 | $ | 16,808 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
6. Commitments and Contingencies | |
Environmental | |
Basic is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for protection of the environment. Basic cannot predict the future impact of such standards and requirements, which are subject to change and can have retroactive effectiveness. Basic continues to monitor the status of these laws and regulations. Management believes that the likelihood of any of these items resulting in a material adverse impact to Basic’s financial position, liquidity, capital resources or future results of operations is remote. | |
Currently, Basic has not been fined, cited or notified of any environmental violations that would have a material adverse effect upon its financial position, liquidity or capital resources. However, management does recognize that by the very nature of its business, material costs could be incurred in the near term to bring Basic into total compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible contamination, the unknown timing and extent of the corrective actions which may be required, the determination of Basic’s liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification. | |
Litigation | |
From time to time, Basic is a party to litigation or other legal proceedings that Basic considers to be a part of the ordinary course of business. Basic is not currently involved in any legal proceedings that it considers probable or reasonably possible, individually or in the aggregate, to result in a material adverse effect on its financial condition, results of operations or liquidity. | |
Self-Insured Risk Accruals | |
Basic is self-insured up to retention limits as it relates to workers’ compensation, general liability claims, and medical and dental coverage of its employees. Basic generally maintains no physical property damage coverage on its workover rig fleet, with the exception of certain of its 24-hour workover rigs and newly manufactured rigs. Basic has deductibles per occurrence for workers’ compensation, general liability claims, and medical and dental coverage of $ 5.0 million, $ 1.0 million, and $ 350,000, respectively. Basic has lower deductibles per occurrence for automobile liability. Basic maintains accruals in the accompanying consolidated balance sheets related to self-insurance retentions based upon third-party data and claims history. | |
At March 31, 2014 and December 31, 2013, self-insured risk accruals totaled approximately $29.0 million net of a $ 41,000 receivable for medical and dental coverage and $ 26.1 million net of a $ 230,000 receivable for medical and dental coverage, respectively. | |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity [Abstract] | ' |
Stockholders' Equity | ' |
7. Stockholders’ Equity | |
Common Stock | |
At March 31, 2014 and December 31, 2013, Basic had 80,000,000 shares of common stock, par value $ 0.01 per share, authorized. | |
During the year ended 2013, Basic issued 107,250 shares of common stock from treasury stock for the exercise of stock options and no shares of newly issued common stock for the exercise of stock options. | |
In March 2013, Basic granted various employees 432,400 restricted shares of common stock that vest over a three-year period and 262,000 shares that vest over a four-year period. The Compensation Committee of Basic’s Board of Directors approved grants of performance-based stock awards to certain members of management. In February 2014, it was determined that 283,358 shares, or approximately 106% of the target number of shares, were earned based on Basic’s achievement of total stockholder return over the performance period from January 1, 2013 through December 31, 2013, as compared to other members of a defined peer group. These restricted shares remain subject to vesting over a three-year period with the first shares vesting on March 15, 2015. | |
In March 2014, Basic granted various employees 414,900 restricted shares of common stock that vest over a three-year period and 294,909 shares that vest over a four-year period. | |
During the three months ended March 31, 2014, Basic issued 210,000 shares of common stock from treasury stock for the exercise of stock options. | |
Treasury Stock | |
Basic has acquired treasury shares through net share settlements for payment of payroll taxes upon the vesting of restricted stock. Basic acquired a total of 250,461 shares through net share settlements during the first three months of 2014 and 154,225 shares through net share settlements during the first three months of 2013. | |
Preferred Stock | |
At March 31, 2014 and December 31, 2013, Basic had 5,000,000 shares of preferred stock, par value $ 0.01 per share, authorized, of which none was designated, issued or outstanding. | |
Incentive_Plan
Incentive Plan | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Incentive Plan [Abstract] | ' | ||||||||||
Incentive Plan | ' | ||||||||||
8. Incentive Plan | |||||||||||
In May 2003, Basic’s board of directors and stockholders approved the Basic Energy Services, Inc. 2003 Incentive Plan (as amended, the “Plan”), which provides for granting of incentive awards in the form of stock options, restricted stock, performance awards, bonus shares, phantom shares, cash awards and other stock-based awards to officers, employees, directors and consultants of Basic. The Plan assumed awards of the plans of Basic’s predecessors that were awarded and remained outstanding prior to adoption of the Plan. The Plan provides for the issuance of 10,350,000 shares. The Plan is administered by the Plan committee, and in the absence of a Plan committee, by the Board of Directors, which determines the awards and the associated terms of the awards and interprets its provisions and adopts policies for implementing the Plan. The number of shares authorized under the Plan and the number of shares subject to an award under the Plan will be adjusted for stock splits, stock dividends, recapitalizations, mergers and other changes affecting the capital stock of Basic. | |||||||||||
During the three months ended March 31, 2014 and 2013, compensation expense related to share-based arrangements was approximately $ 3.4 million and $ 2.8 million, respectively. For compensation expense recognized during the three months ended March 31, 2014 and 2013, Basic recognized a tax benefit of approximately $ 799,000 and $ 1.3 million, respectively. | |||||||||||
As of March 31, 2014, there was approximately $ 33.4 million of total unrecognized compensation related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 2.75 years. The total fair value of share-based awards vested during the three months ended March 31, 2014 and 2013 was approximately $ 20.3 million and $ 11.5 million, respectively. During the three months ended March 31, 2014 and 2013 there was no excess tax benefit due to the net operating loss carryforwards (“NOL”). If there was no NOL, the excess tax benefit would have been approximately $ 3.7 million and $ 800,000 at March 31, 2014 and 2013, respectively. | |||||||||||
Stock Option Awards | |||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. Options granted under the Plan expire 10 years from the date they are granted, and generally vest over a three- to five-year service period. | |||||||||||
The following table reflects the summary of stock options outstanding at March 31, 2014 and the changes during the three months then ended: | |||||||||||
Weighted | |||||||||||
Average | |||||||||||
Remaining | Aggregate | ||||||||||
Number of | Weighted | Contractual | Intrinsic | ||||||||
Options | Average | Term | Value | ||||||||
Granted | Exercise Price | (Years) | (000's) | ||||||||
Non-statutory stock options: | |||||||||||
Outstanding, beginning of period | 530,000 | $ | 18.15 | ||||||||
Options granted | — | — | |||||||||
Options forfeited | — | — | |||||||||
Options exercised | -210,000 | 19.42 | |||||||||
Options expired | — | — | |||||||||
Outstanding, end of period | 320,000 | $ | 17.31 | 1.47 | $ | 3,231 | |||||
Exercisable, end of period | 320,000 | $ | 17.31 | 1.47 | $ | 3,231 | |||||
Vested or expected to vest, end of period | 320,000 | $ | 17.31 | 1.47 | $ | 3,231 | |||||
The total intrinsic value of share options exercised during the three months ended March 31, 2014 and 2013 was approximately $ 1.4 million and $ 293,000, respectively. | |||||||||||
Cash received from share option exercises under the Plan was approximately $ 4.1 million and $ 183,000 for the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014 and 2013, there was no excess tax benefit due to the NOL. If there was no NOL, the excess tax expense would have been $ 213,000 for the three months ended March 31, 2014 and excess tax benefit would have been $ 14,000 for the three months ended March 31, 2013. | |||||||||||
Basic has a history of issuing treasury and newly issued shares to satisfy share option exercises. | |||||||||||
Restricted Stock Awards | |||||||||||
On March 12, 2014, the Compensation Committee of Basic’s Board of Directors approved grants of performance-based stock awards to certain members of management. The performance-based awards are tied to Basic’s achievement of total stockholder return over the performance period from January 1, 2014 through December 31, 2014, as compared to other members of a defined peer group. The number of shares to be issued will range from 0% to 150% of the 286,518 target number of shares depending on the performance noted above. Any shares earned at the end of the performance period will then remain subject to vesting over a three-year period with the first shares vesting March 15, 2016. As of March 31, 2014, Basic estimated that 100% of the target number of performance-based awards will be earned. | |||||||||||
A summary of the status of Basic’s non-vested share grants at March 31, 2014 and changes during the three months ended March 31, 2014 is presented in the following table: | |||||||||||
Weighted Average | |||||||||||
Number of | Grant Date Fair | ||||||||||
Nonvested Shares | Shares | Value Per Share | |||||||||
Nonvested at beginning of period | 2,089,597 | $ | 14.93 | ||||||||
Granted during period | 1,013,125 | 25.14 | |||||||||
Vested during period | -843,781 | 14.78 | |||||||||
Forfeited during period | -8,699 | 18.70 | |||||||||
Nonvested at end of period | 2,250,242 | $ | 19.57 | ||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
9. Related Party Transactions | |
Basic had receivables from employees of approximately $ 39,000 and $ 50,000 as of March 31, 2014 and December 31, 2013, respectively. During 2006, Basic entered into a lease agreement with Darle Vuelta Cattle Co., LLC, an affiliate of a director, for approximately $ 69,000 per year. The term of the lease will continue on a year-to-year basis unless terminated by either party. In December 2010, Basic entered into a lease agreement with Darle Vuelta Cattle Co., LLC for the right to operate a salt water disposal well, brine well and fresh water well. The term of the lease will continue until the salt water disposal well and brine well are plugged and no fresh water is being sold. The lease payments are the greater of (i) the sum of $ 0.10 per barrel of disposed oil and gas waste and $ 0.05 per barrel of brine or fresh water sold or (ii) $ 5,000 per month. | |
Basic entered into a joint venture agreement with a family member of an executive officer to form an entity in 2010. Basic held 80% of the equity in the joint venture, and accounted for the entity as a consolidated investment. In 2013, Basic funded approximately $ 2.4 million for this joint venture. The entity had only research and development activities in 2013. This joint venture agreement was terminated in November 2013, and Basic now owns 100% of the entity. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings Per Share | ' | |||||
10. Earnings Per Share | ||||||
Basic’s basic earnings per common share are determined by dividing net earnings applicable to common stock by the weighted average number of common shares actually outstanding during the period. Diluted earnings per common share is based on the increased number of shares that would be outstanding assuming conversion of dilutive outstanding securities using the “as if converted” method. The following table sets forth the computation of unaudited basic and diluted earnings per share (in thousands, except share data): | ||||||
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(Unaudited) | ||||||
Numerator (both basic and diluted): | ||||||
Net loss | $ | -1,907 | $ | -8,778 | ||
Denominator: | ||||||
Denominator for basic earnings per share | 40,605,180 | 39,885,111 | ||||
Stock options | — | — | ||||
Unvested restricted stock | — | — | ||||
Denominator for diluted earnings per share | 40,605,180 | 39,885,111 | ||||
Basic earnings per common share: | $ | -0.05 | $ | -0.22 | ||
Diluted earnings per common share: | $ | -0.05 | $ | -0.22 | ||
Stock options and unvested restricted stock shares of approximately 722,301 and 299,155 were excluded in the computation of diluted earnings per share for the three months ended March 31, 2014 and 2013, respectively, as the effect would have been anti-dilutive. | ||||||
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Business Segment Information [Abstract] | ' | |||||||||||||||||
Business Segment Information | ' | |||||||||||||||||
11. Business Segment Information | ||||||||||||||||||
Basic’s reportable business segments are Completion and Remedial Services, Well Servicing, Fluid Services, and Contract Drilling. The following is a description of the segments: | ||||||||||||||||||
Completion and Remedial Services: This segment utilizes a fleet of pumping units, air compressor packages specially configured for underbalanced drilling operations, coiled tubing services, nitrogen services, cased-hole wireline units, an array of specialized rental equipment and fishing tools, thru-tubing and snubbing units. The largest portion of this business consists of pumping services focused on cementing, acidizing and fracturing services in niche markets. | ||||||||||||||||||
Well Servicing: This business segment encompasses a full range of services performed with a mobile well servicing rig, including the installation and removal of downhole equipment and elimination of obstructions in the well bore to facilitate the flow of oil and natural gas. These services are performed to establish, maintain and improve production throughout the productive life of an oil and natural gas well and to plug and abandon a well at the end of its productive life. Well servicing equipment and capabilities such as Basic’s are essential to facilitate most other services performed on a well. This segment also includes the manufacturing, refurbishment and servicing of mobile well servicing rigs and associated equipment. | ||||||||||||||||||
Fluid Services: This segment utilizes a fleet of trucks and related assets, including specialized tank trucks, storage tanks, water wells, disposal facilities, construction and other related equipment. Basic employs these assets to transport, treat, recycle, store and dispose of a variety of fluids, as well as provide well site construction and maintenance services. These services are required in most drilling, workover, completion and remedial projects and are routinely used in daily producing well operations. | ||||||||||||||||||
Contract Drilling: This segment utilizes drilling rigs and associated equipment for drilling wells to a specified depth for customers on a contract basis. | ||||||||||||||||||
Basic’s management evaluates the performance of its operating segments based on operating revenues and segment profits. Corporate expenses include general corporate expenses associated with managing all reportable operating segments. Corporate assets consist principally of working capital and debt financing costs. | ||||||||||||||||||
The following table sets forth certain financial information with respect to Basic’s reportable segments (in thousands): | ||||||||||||||||||
Completion | ||||||||||||||||||
And Remedial | Contract | Corporate and | ||||||||||||||||
Services | Well Servicing | Fluid Services | Drilling | Other | Total | |||||||||||||
Three Months Ended March 31, 2014 (Unaudited) | ||||||||||||||||||
Operating revenues | $ | 137,485 | $ | 92,912 | $ | 92,835 | $ | 13,524 | $ | — | $ | 336,756 | ||||||
Direct operating costs | -86,480 | -69,759 | -66,782 | -9,166 | — | -232,187 | ||||||||||||
Segment profits | $ | 51,005 | $ | 23,153 | $ | 26,053 | $ | 4,358 | $ | — | $ | 104,569 | ||||||
Depreciation and amortization | $ | 15,727 | $ | 13,980 | $ | 16,063 | $ | 3,210 | $ | 2,725 | $ | 51,705 | ||||||
Capital expenditures (excluding acquisitions) | $ | 15,395 | $ | 7,694 | $ | 7,240 | $ | 908 | $ | 1,869 | $ | 33,106 | ||||||
Identifiable assets | $ | 431,291 | $ | 265,870 | $ | 311,905 | $ | 57,734 | $ | 458,215 | $ | 1,525,015 | ||||||
Three Months Ended March 31, 2013 (Unaudited) | ||||||||||||||||||
Operating revenues | $ | 118,361 | $ | 87,675 | $ | 84,330 | $ | 13,985 | $ | — | $ | 304,351 | ||||||
Direct operating costs | -79,008 | -65,002 | -57,874 | -9,164 | — | -211,048 | ||||||||||||
Segment profits | $ | 39,353 | $ | 22,673 | $ | 26,456 | $ | 4,821 | $ | — | $ | 93,303 | ||||||
Depreciation and amortization | $ | 14,932 | $ | 14,787 | $ | 14,311 | $ | 3,196 | $ | 2,555 | $ | 49,781 | ||||||
Capital expenditures (excluding acquisitions) | $ | 12,987 | $ | 12,026 | $ | 9,118 | $ | 3,093 | $ | 2,649 | $ | 39,873 | ||||||
Identifiable assets | $ | 442,241 | $ | 303,136 | $ | 308,943 | $ | 63,426 | $ | 457,503 | $ | 1,575,249 | ||||||
The following table reconciles the segment profits reported above to the operating income as reported in the consolidated statements of operations (in thousands): | ||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Segment profits | $ | 104,569 | $ | 93,303 | ||||||||||||||
General and administrative expenses | -39,559 | -41,957 | ||||||||||||||||
Depreciation and amortization | -51,705 | -49,781 | ||||||||||||||||
Gain (loss) on disposal of assets | 679 | -1,089 | ||||||||||||||||
Operating income | $ | 13,984 | $ | 476 | ||||||||||||||
Supplemental_Schedule_Of_Cash_
Supplemental Schedule Of Cash Flow Information | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Supplemental Schedule Of Cash Flow Information [Abstract] | ' | |||||
Supplemental Schedule Of Cash Flow Information | ' | |||||
12. Supplemental Schedule of Cash Flow Information | ||||||
The following table reflects non-cash financing and investing activity during the following periods: | ||||||
Three Months Ended March 31 | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Capital leases issued for equipment | $ | 3,928 | $ | 14,592 | ||
Asset retirement obligation additions | $ | 23 | $ | 78 | ||
Basic paid no income taxes during the three months ended March 31, 2014 and 2013. Basic paid interest of approximately $ 18.9 million and $ 19.3 million during the three months ended March 31, 2014 and 2013, respectively. | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Measurements [Abstract] | ' |
Fair Value Measurements | ' |
13. Fair Value Measurements | |
Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. Fair value is a market based measurement considered from the perspective of a market participant. Basic uses market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation. These inputs can be readily observable, market corroborated, or unobservable. If observable prices or inputs are not available, unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued. Basic primarily applies a market approach for recurring fair value measurements using the best available information while utilizing valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. | |
There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Basic classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows: | |
Level 1—Quoted prices in active markets for identical assets or liabilities that Basic has the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2—Inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. | |
Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | |
In valuing certain assets and liabilities, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement. Basic’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. | |
Basic does not have any assets or liabilities that are remeasured at fair value on a recurring basis. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Principles of Consolidation | ' | ||||||||||||||
Principles of Consolidation | |||||||||||||||
The accompanying consolidated financial statements include the accounts of Basic and its wholly owned subsidiaries. Basic has no variable interest in any other organization, entity, partnership, or contract. All intercompany transactions and balances have been eliminated. | |||||||||||||||
Estimates and Uncertainties | ' | ||||||||||||||
Estimates and Uncertainties | |||||||||||||||
Preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Areas where critical accounting estimates are made by management include: | |||||||||||||||
· | Depreciation and amortization of property and equipment and intangible assets | ||||||||||||||
· | Impairment of property and equipment, goodwill and intangible assets | ||||||||||||||
· | Allowance for doubtful accounts | ||||||||||||||
· | Litigation and self-insured risk reserves | ||||||||||||||
· | Fair value of assets acquired and liabilities assumed | ||||||||||||||
· | Future cash flows | ||||||||||||||
· | Stock-based compensation | ||||||||||||||
· | Income taxes | ||||||||||||||
· | Asset retirement obligations | ||||||||||||||
· | Environmental liabilities | ||||||||||||||
Revenue Recognition | ' | ||||||||||||||
Revenue Recognition | |||||||||||||||
Completion and Remedial Services — Completion and remedial services consists primarily of pumping services focused on cementing, acidizing and fracturing, nitrogen units, coiled tubing units, snubbing units, thru-tubing and rental and fishing tools. Basic recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. Basic prices completion and remedial services by the hour, day, or project depending on the type of service performed. When Basic provides multiple services to a customer, revenue is allocated to the services performed based on the fair value of the services. | |||||||||||||||
Well Servicing — Well servicing consists primarily of maintenance services, workover services, completion services, plugging and abandonment services and rig manufacturing and servicing. Basic recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. Basic prices well servicing by the hour or by the day of service performed. Rig manufacturing revenue is recognized when the rig is accepted by the customer, based on the completed contract method by individual rig. | |||||||||||||||
Fluid Services — Fluid services consists primarily of the sale, transportation, treatment, storage and disposal of fluids used in the drilling, production and maintenance of oil and natural gas wells, and well site construction and maintenance services. Basic recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. Basic prices fluid services by the job, by the hour or by the quantities sold, disposed of or hauled. | |||||||||||||||
Contract Drilling — Contract drilling consists primarily of drilling wells to a specified depth using drilling rigs. Basic recognizes revenues based on either a “daywork” contract, in which an agreed upon rate per day is charged to the customer, a “footage” contract, in which an agreed upon rate is charged per the number of feet drilled, or a “turnkey” contract, in which an agreed upon single rate is charged for a drilled well. | |||||||||||||||
Taxes assessed on sales transactions are presented on a net basis and are not included in revenue | |||||||||||||||
Inventories | ' | ||||||||||||||
Inventories | |||||||||||||||
Rental and fishing tool inventories, consisting mainly of grapples, mills and drill bits, are stated at the lower of cost or market, with cost being determined by the average cost method. Other inventories, consisting mainly of manufacturing raw materials, rig components, repair parts, drilling and completion materials and gravel, are held for use in the operations of Basic and are stated at the lower of cost or market, with cost being determined on the first-in, first-out (“FIFO”) method. | |||||||||||||||
Property and Equipment | ' | ||||||||||||||
Property and Equipment | |||||||||||||||
Property and equipment are stated at cost or at estimated fair value at acquisition date if acquired in a business combination. Expenditures for repairs and maintenance are charged to expense as incurred and additions and improvements that significantly extend the lives of the assets are capitalized. Upon sale or other retirement of depreciable property, the cost and accumulated depreciation and amortization are removed from the related accounts and any gain or loss is reflected in operations. All property and equipment are depreciated or amortized (to the extent of estimated salvage values) on the straight-line method. The components of a well servicing rig generally require replacement or refurbishment during the well servicing rig’s life and are depreciated over their estimated useful lives, which range from 3 to 15 years. The costs of the original components of a purchased or acquired well servicing rig are not maintained separately from the base rig. | |||||||||||||||
Impairments | ' | ||||||||||||||
Impairments | |||||||||||||||
Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment at least annually, or whenever, in management’s judgment, events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of such assets to estimated undiscounted future cash flows expected to be generated by the assets. Expected future cash flows and carrying values are aggregated at their lowest identifiable level. If the carrying amount of such assets exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of such assets exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities, if material, of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet. These assets are normally sold within a short period of time through a third party auctioneer. | |||||||||||||||
Basic’s goodwill and trade name intangibles are considered to have an indefinite useful economic life and are not amortized. Basic assesses impairment of its goodwill and trade name intangibles annually as of December 31 or on an interim basis if events or circumstances indicate that the fair value of the assets has decreased below the assets’ carrying value. A qualitative assessment is allowed to determine if goodwill is potentially impaired. The qualitative assessment determines whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then the two-step impairment test is performed. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the fair value of the reporting unit’s goodwill is determined by allocating the unit’s fair value to its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The amount of impairment for goodwill is measured as the excess of its carrying value over its fair value. | |||||||||||||||
Deferred Debt Costs | ' | ||||||||||||||
Deferred Debt Costs | |||||||||||||||
Basic capitalizes certain costs in connection with obtaining its borrowings, such as lender’s fees and related attorney’s fees. These costs are amortized to interest expense using the effective interest method. | |||||||||||||||
Deferred debt costs were approximately $ 23.4 million net of accumulated amortization of $ 8.0 million, and $ 23.3 million net of accumulated amortization of $ 7.2 million at March 31, 2014 and December 31, 2013, respectively. Amortization of deferred debt costs totaled approximately $ 799,000 and $ 754,000 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||
Goodwill and other intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Basic completes its assessment of goodwill and trade name intangible impairment as of December 31 of each year. | |||||||||||||||
Basic had trade names of $ 1.9 million as of March 31, 2014 and December 31, 2013. Trade names have an indefinite life and are tested for impairment annually. | |||||||||||||||
Additions to goodwill during the three months ended March 31, 2014 were primarily due to the purchase price allocations for acquisitions completed during prior years. These purchase price allocations were preliminary and subject to change. The changes in the carrying amount of goodwill for the three months ended March 31, 2014 were as follows (in thousands): | |||||||||||||||
Completion | |||||||||||||||
And Remedial | |||||||||||||||
Services | Well | Fluid Services | Contract Drilling | Total | |||||||||||
Balance as of December 31, 2013 | $ | 77,697 | $ | 6,622 | $ | 26,595 | $ | — | $ | 110,914 | |||||
Goodwill additions | — | — | 273 | — | 273 | ||||||||||
Balance as of March 31, 2014 | $ | 77,697 | $ | 6,622 | $ | 26,868 | $ | — | $ | 111,187 | |||||
Basic’s intangible assets subject to amortization consist of customer relationships, non-compete agreements and rig engineering plans. The gross carrying amount of customer relationships subject to amortization was $ 87.1 million at March 31, 2014 and December 31, 2013. The gross carrying amount of non-compete agreements subject to amortization totaled approximately $ 13.0 million at March 31, 2014 and December 31, 2013. The gross carrying amount of other intangible assets subject to amortization was $ 2.1 million at March 31, 2014 and December 31, 2013. Accumulated amortization related to these intangible assets totaled approximately $ 28.7 million and $ 26.6 million at March 31, 2014 and December 31, 2013, respectively. Amortization expense for the three months ended March 31, 2014 and 2013 was approximately $ 2.1 million and $ 2.0 million, respectively. Other intangibles net of accumulated amortization allocated to reporting units as of March 31, 2014 were $ 54.6 million, $ 5.7 million, $ 11.5 million and $3.6 million for completion and remedial services, well servicing, fluid services, and contract drilling, respectively. No adjustments were made to prior periods to reflect subsequent adjustments to acquisitions due to immateriality. Customer relationships are amortized over a 15-year life, non-compete agreements are amortized over a five-year life, developed technology is amortized over a 15-year life and rig engineering plans are amortized over a 15-year life. | |||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||
Stock-Based Compensation | |||||||||||||||
Basic’s outstanding stock-based awards consist of stock options and restricted stock. Stock options issued are valued on the grant date using the Black-Scholes-Merton option-pricing model, and restricted stock issued is valued based on the fair value at the grant date. All stock-based awards are adjusted for an expected forfeiture rate and amortized over the vesting period. For performance-based restricted stock awards, compensation expense is recognized in the Company's financial statements based on their grant date fair value. Basic utilizes (i) the closing stock price on the date of grant to determine the fair value of vesting restricted stock awards and (ii) a Monte Carlo simulation to determine the fair value of restricted stock awards with a combination of market and service vesting criteria. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant. | |||||||||||||||
Certain Basic share-based awards also provide for potential reissuances of unvested shares otherwise forfeited at retirement, provided the recipient also enters into required non-competition and severance agreements. Notwithstanding these service conditions, for expense recognition we generally deem the vesting period after the retirement to be non-substantive, and treat the requisite service period from the grant date to the first date when the employee is eligible to retire. | |||||||||||||||
Income Taxes | ' | ||||||||||||||
Income Taxes | |||||||||||||||
Deferred tax assets and liabilities are recognized 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 statutory tax rates expected to apply to taxable income in the years 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 rate is recognized in the period that includes the statutory enactment date. A valuation allowance for deferred tax assets is recognized when it is more likely than not that the benefit of deferred tax assets will not be realized. | |||||||||||||||
Interest charges are recorded in interest expense and penalties are recorded in income tax expense. | |||||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||||
Concentrations of Credit Risk | |||||||||||||||
Financial instruments, which potentially subject Basic to concentration of credit risk, consist primarily of temporary cash investments and trade receivables. Basic restricts investment of temporary cash investments to financial institutions with high credit standing. Basic’s customer base consists primarily of multi-national and independent oil and natural gas producers. Basic performs ongoing credit evaluations of its customers but generally does not require collateral on its trade receivables. Credit risk is considered by management to be limited due to the large number of customers comprising its customer base. Basic maintains an allowance for potential credit losses on its trade receivables, and such losses have been within management’s expectations. | |||||||||||||||
Basic did not have any one customer that represented 10% or more of consolidated revenue during the three months ended March 31, 2014 or | |||||||||||||||
Asset Retirement Obligations | ' | ||||||||||||||
Asset Retirement Obligations | |||||||||||||||
Basic records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets and capitalizes an equal amount as a cost of the asset depreciating it over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each quarter to reflect the passage of time, changes in the estimated future cash flows underlying the obligation, acquisition or construction of assets, and settlements of obligations. | |||||||||||||||
Environmental | ' | ||||||||||||||
Environmental | |||||||||||||||
Basic is subject to extensive federal, state and local environmental laws and regulations. These laws, which are constantly changing, regulate the discharge of materials into the environment and may require Basic to remove or mitigate the adverse environmental effects of disposal or release of petroleum, chemicals and other substances at various sites. Environmental expenditures are expensed or capitalized depending on the future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. | |||||||||||||||
Litigation and Self-Insured Risk Reserves | ' | ||||||||||||||
Litigation and Self-Insured Risk Reserves | |||||||||||||||
Basic estimates its reserves related to litigation and self-insured risks based on the facts and circumstances specific to the litigation and self-insured claims, its past experience with similar claims and the likelihood of the future event occurring. Basic maintains accruals on the consolidated balance sheets to cover self-insurance retentions (See note 6). | |||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist” (“ASU2013-11”). ASU 2013-11 reduces diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exit. ASU 2013-11 became effective for Basic on January 1, 2014 and it did not have a material impact on Basic’s consolidated financial statements. | |||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||
Completion | |||||||||||||||
And Remedial | |||||||||||||||
Services | Well | Fluid Services | Contract Drilling | Total | |||||||||||
Balance as of December 31, 2013 | $ | 77,697 | $ | 6,622 | $ | 26,595 | $ | — | $ | 110,914 | |||||
Goodwill additions | — | — | 273 | — | 273 | ||||||||||
Balance as of March 31, 2014 | $ | 77,697 | $ | 6,622 | $ | 26,868 | $ | — | $ | 111,187 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisitions [Abstract] | ' | ||||
Schedule Of Values At Date Of Acquisition | ' | ||||
Total Cash Paid | |||||
Closing Date | (net of cash acquired) | ||||
Atlas Environmental Consulting, Inc. and Atlas Oilfield Construction Company, LLC | 19-Feb-13 | $ | 12,979 | ||
Petroleum Water Solutions, LLC | 22-Feb-13 | 3,288 | |||
Karnes Water Management, LLC | 31-Dec-13 | 5,200 | |||
Total 2013 | $ | 21,467 | |||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Property Plant And Equipment [Abstract] | ' | |||||
Property And Equipment | ' | |||||
31-Mar-14 | 31-Dec-13 | |||||
Land | $ | 17,321 | $ | 17,800 | ||
Buildings and improvements | 66,707 | 65,702 | ||||
Well service units and equipment | 459,723 | 498,846 | ||||
Fluid services equipment | 254,252 | 258,371 | ||||
Brine and fresh water stations | 14,159 | 13,496 | ||||
Frac/test tanks | 282,505 | 275,603 | ||||
Pumping equipment | 299,654 | 299,300 | ||||
Construction equipment | 15,296 | 15,677 | ||||
Contract drilling equipment | 104,223 | 104,958 | ||||
Disposal facilities | 148,146 | 143,459 | ||||
Light vehicles | 62,951 | 64,942 | ||||
Rental equipment | 70,265 | 70,738 | ||||
Software | 23,357 | 23,360 | ||||
Other | 16,471 | 16,754 | ||||
1,835,030 | 1,869,006 | |||||
Less accumulated depreciation and amortization | 942,570 | 940,969 | ||||
Property and equipment, net | $ | 892,460 | $ | 928,037 | ||
Schedule Of Property, Plant And Equipment Under Capital Lease | ' | |||||
31-Mar-14 | 31-Dec-13 | |||||
Light vehicles | $ | 40,843 | $ | 39,970 | ||
Contract drilling equipment | 4,223 | 4,223 | ||||
Well service units and equipment | 2,028 | 1,554 | ||||
Fluid services equipment | 117,316 | 121,051 | ||||
Pumping equipment | 29,176 | 29,080 | ||||
Construction equipment | 561 | 1,005 | ||||
Software | 17,120 | 17,120 | ||||
Other | 70 | 70 | ||||
211,337 | 214,073 | |||||
Less accumulated amortization | 81,846 | 77,340 | ||||
$ | 129,491 | $ | 136,733 | |||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Long-Term Debt [Abstract] | ' | |||||
Schedule of Long-Term Debt Instruments | ' | |||||
31-Mar-14 | 31-Dec-13 | |||||
Credit Facilities: | ||||||
Revolver | — | — | ||||
7.75% Senior Notes due 2019 | $ | 475,000 | $ | 475,000 | ||
7.75% Senior Notes due 2022 | 300,000 | 300,000 | ||||
Unamortized premium | 1,401 | 1,459 | ||||
Capital leases and other notes | 104,429 | 111,626 | ||||
880,830 | 888,085 | |||||
Less current portion | 40,687 | 41,394 | ||||
$ | 840,143 | $ | 846,691 | |||
Schedule of Interest Expense | ' | |||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Cash payments for interest | $ | 18,933 | $ | 19,266 | ||
Commitment and other fees paid | 585 | 455 | ||||
Amortization of debt issuance costs and discount or premium on notes | 740 | 700 | ||||
Change in accrued interest | -3,405 | -3,402 | ||||
Other | 6 | -211 | ||||
$ | 16,859 | $ | 16,808 | |||
Incentive_Plan_Tables
Incentive Plan (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Incentive Plan [Abstract] | ' | ||||||||||
Summary Of Stock Options | ' | ||||||||||
Weighted | |||||||||||
Average | |||||||||||
Remaining | Aggregate | ||||||||||
Number of | Weighted | Contractual | Intrinsic | ||||||||
Options | Average | Term | Value | ||||||||
Granted | Exercise Price | (Years) | (000's) | ||||||||
Non-statutory stock options: | |||||||||||
Outstanding, beginning of period | 530,000 | $ | 18.15 | ||||||||
Options granted | — | — | |||||||||
Options forfeited | — | — | |||||||||
Options exercised | -210,000 | 19.42 | |||||||||
Options expired | — | — | |||||||||
Outstanding, end of period | 320,000 | $ | 17.31 | 1.47 | $ | 3,231 | |||||
Exercisable, end of period | 320,000 | $ | 17.31 | 1.47 | $ | 3,231 | |||||
Vested or expected to vest, end of period | 320,000 | $ | 17.31 | 1.47 | $ | 3,231 | |||||
Summary Of Non-Vested Shares | ' | ||||||||||
Weighted Average | |||||||||||
Number of | Grant Date Fair | ||||||||||
Nonvested Shares | Shares | Value Per Share | |||||||||
Nonvested at beginning of period | 2,089,597 | $ | 14.93 | ||||||||
Granted during period | 1,013,125 | 25.14 | |||||||||
Vested during period | -843,781 | 14.78 | |||||||||
Forfeited during period | -8,699 | 18.70 | |||||||||
Nonvested at end of period | 2,250,242 | $ | 19.57 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Computation Of Basic And Diluted Earnings Per Share | ' | |||||
Three months ended March 31, | ||||||
2014 | 2013 | |||||
(Unaudited) | ||||||
Numerator (both basic and diluted): | ||||||
Net loss | $ | -1,907 | $ | -8,778 | ||
Denominator: | ||||||
Denominator for basic earnings per share | 40,605,180 | 39,885,111 | ||||
Stock options | — | — | ||||
Unvested restricted stock | — | — | ||||
Denominator for diluted earnings per share | 40,605,180 | 39,885,111 | ||||
Basic earnings per common share: | $ | -0.05 | $ | -0.22 | ||
Diluted earnings per common share: | $ | -0.05 | $ | -0.22 | ||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Business Segment Information [Abstract] | ' | |||||||||||||||||
Schedule Of Reportable Segments Financial Information | ' | |||||||||||||||||
Completion | ||||||||||||||||||
And Remedial | Contract | Corporate and | ||||||||||||||||
Services | Well Servicing | Fluid Services | Drilling | Other | Total | |||||||||||||
Three Months Ended March 31, 2014 (Unaudited) | ||||||||||||||||||
Operating revenues | $ | 137,485 | $ | 92,912 | $ | 92,835 | $ | 13,524 | $ | — | $ | 336,756 | ||||||
Direct operating costs | -86,480 | -69,759 | -66,782 | -9,166 | — | -232,187 | ||||||||||||
Segment profits | $ | 51,005 | $ | 23,153 | $ | 26,053 | $ | 4,358 | $ | — | $ | 104,569 | ||||||
Depreciation and amortization | $ | 15,727 | $ | 13,980 | $ | 16,063 | $ | 3,210 | $ | 2,725 | $ | 51,705 | ||||||
Capital expenditures (excluding acquisitions) | $ | 15,395 | $ | 7,694 | $ | 7,240 | $ | 908 | $ | 1,869 | $ | 33,106 | ||||||
Identifiable assets | $ | 431,291 | $ | 265,870 | $ | 311,905 | $ | 57,734 | $ | 458,215 | $ | 1,525,015 | ||||||
Three Months Ended March 31, 2013 (Unaudited) | ||||||||||||||||||
Operating revenues | $ | 118,361 | $ | 87,675 | $ | 84,330 | $ | 13,985 | $ | — | $ | 304,351 | ||||||
Direct operating costs | -79,008 | -65,002 | -57,874 | -9,164 | — | -211,048 | ||||||||||||
Segment profits | $ | 39,353 | $ | 22,673 | $ | 26,456 | $ | 4,821 | $ | — | $ | 93,303 | ||||||
Depreciation and amortization | $ | 14,932 | $ | 14,787 | $ | 14,311 | $ | 3,196 | $ | 2,555 | $ | 49,781 | ||||||
Capital expenditures (excluding acquisitions) | $ | 12,987 | $ | 12,026 | $ | 9,118 | $ | 3,093 | $ | 2,649 | $ | 39,873 | ||||||
Identifiable assets | $ | 442,241 | $ | 303,136 | $ | 308,943 | $ | 63,426 | $ | 457,503 | $ | 1,575,249 | ||||||
Schedule Of Reconciliation Of Operating Profit (Loss) From Segments | ' | |||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Segment profits | $ | 104,569 | $ | 93,303 | ||||||||||||||
General and administrative expenses | -39,559 | -41,957 | ||||||||||||||||
Depreciation and amortization | -51,705 | -49,781 | ||||||||||||||||
Gain (loss) on disposal of assets | 679 | -1,089 | ||||||||||||||||
Operating income | $ | 13,984 | $ | 476 | ||||||||||||||
Supplemental_Schedule_Of_Cash_1
Supplemental Schedule Of Cash Flow Information (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Supplemental Schedule Of Cash Flow Information [Abstract] | ' | |||||
Schedule Of Supplemental Cash Flow Information | ' | |||||
Three Months Ended March 31 | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Capital leases issued for equipment | $ | 3,928 | $ | 14,592 | ||
Asset retirement obligation additions | $ | 23 | $ | 78 | ||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Deferred debt costs, net of accumulated amortization | $23,400,000 | ' | $23,300,000 |
Accumulated amortization of deferred debt costs | 8,000,000 | ' | 7,200,000 |
Amortization of deferred financing costs | 799,000 | 754,000 | ' |
Trade names value | 1,900,000 | ' | 1,900,000 |
Intangible assets accumulated amortization | 28,700,000 | ' | 26,600,000 |
Amortization expense of intangible assets | 2,100,000 | 2,000,000 | ' |
Percentage revenue from a single customer that is not exceeded | 10.00% | ' | ' |
Completion And Remedial Services [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Other intangibles net of accumulated amortization | 54,600,000 | ' | ' |
Fluid Services [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Other intangibles net of accumulated amortization | 11,500,000 | ' | ' |
Well Servicing [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Other intangibles net of accumulated amortization | 5,700,000 | ' | ' |
Contract Drilling | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Other intangibles net of accumulated amortization | 3,600,000 | ' | ' |
Customer Relationships | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Gross carrying amount of intangible assets subject to amortization | 87,100,000 | ' | ' |
Amortization period of intangible assets, in years | '15 years | ' | ' |
Noncompete Agreements | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Gross carrying amount of intangible assets subject to amortization | 13,000,000 | ' | ' |
Amortization period of intangible assets, in years | '5 years | ' | ' |
Other Intangible Assets | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Gross carrying amount of intangible assets subject to amortization | $2,100,000 | ' | $2,100,000 |
Amortization period of intangible assets, in years | '15 years | ' | ' |
Rig Engineering Plans | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortization period of intangible assets, in years | '15 years | ' | ' |
Well Service Units And Equipment | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Well Service Units And Equipment | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Changes in Carrying Amount of Goodwill) (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Completion And Remedial Services [Member] | Completion And Remedial Services [Member] | Fluid Services [Member] | Well Servicing [Member] | Well Servicing [Member] | ||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' |
Balance as of December 31, 2013 | $110,914 | $77,697 | $77,697 | $26,595 | $6,622 | $6,622 |
Goodwill additions | 273 | ' | ' | 273 | ' | ' |
Balance as of March 31, 2014 | $111,187 | $77,697 | $77,697 | $26,868 | $6,622 | $6,622 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' |
Total Cash Paid (net of cash acquired) | $21,467 |
Atlas Environmental Consulting, Inc. and Atlas Oilfield Construction Company, LLC | ' |
Business Acquisition [Line Items] | ' |
Closing Date | 19-Feb-13 |
Total Cash Paid (net of cash acquired) | 12,979 |
Petroleum Water Solutions, LLC | ' |
Business Acquisition [Line Items] | ' |
Closing Date | 22-Feb-13 |
Total Cash Paid (net of cash acquired) | 3,288 |
Karnes Water Management, LLC | ' |
Business Acquisition [Line Items] | ' |
Closing Date | 31-Dec-13 |
Total Cash Paid (net of cash acquired) | $5,200 |
Property_And_Equipment_Narrati
Property And Equipment (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property Plant And Equipment [Abstract] | ' | ' |
Lease Obligation Period | '5 years | ' |
Amortization of assets held under capital leases | $8.50 | $7.30 |
Property_And_Equipment_Propert
Property And Equipment (Property And Equipment) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,835,030 | $1,869,006 |
Less accumulated depreciation and amortization | 942,570 | 940,969 |
Property and equipment, net | 892,460 | 928,037 |
Land | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 17,321 | 17,800 |
Buildings And Improvements | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 66,707 | 65,702 |
Well Service Units And Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 459,723 | 498,846 |
Fluid Services Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 254,252 | 258,371 |
Brine And Fresh Water Stations | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 14,159 | 13,496 |
Frac/Test Tanks | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 282,505 | 275,603 |
Pressure Pumping Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 299,654 | 299,300 |
Construction Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 15,296 | 15,677 |
Contract Drilling Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 104,223 | 104,958 |
Disposal Facilities | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 148,146 | 143,459 |
Vehicles | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 62,951 | 64,942 |
Rental Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 70,265 | 70,738 |
Software | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 23,357 | 23,360 |
Other | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $16,471 | $16,754 |
Property_And_Equipment_Schedul
Property And Equipment (Schedule Of Property, Plant And Equipment Under Capital Lease) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | $211,337 | $214,073 |
Less accumulated amortization | 81,846 | 77,340 |
Property, plant and equipment under capital lease, net | 129,491 | 136,733 |
Light Vehicles | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 40,843 | 39,970 |
Contract Drilling [Member] | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 4,223 | 4,223 |
Well Service Units And Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 2,028 | 1,554 |
Fluid Services Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 117,316 | 121,051 |
Pressure Pumping Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 29,176 | 29,080 |
Construction Equipment | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 561 | 1,005 |
Software | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | 17,120 | 17,120 |
Other | ' | ' |
Property, Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment under capital lease, gross | $70 | $70 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 15, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 13, 2011 | Mar. 31, 2014 | Dec. 31, 2011 | Feb. 15, 2011 | Feb. 15, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
item | Alternate Base Rate Loans | Alternate Base Rate Loans | Eurodollar Loans | Eurodollar Loans | 7.75% Senior Notes due 2019 | 7.75% Senior Notes due 2019 | 7.75% Senior Notes due 2019 | 7.75% Senior Notes Due 2019 on and after February 15 2015 | 7.75% Senior Notes Due 2019 Prior To February 15 2014 | 7.75% Senior Notes Due 2022 | 11.625% Senior Notes Due 2014 | 7.125% Senior Notes Due 2016 | March 31, 2014 and June 30, 2014 [Member] | September 30, 2013 through June 30, 2014 [Member] | September 30, 2014 and each fiscal quarter thereafter [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Maverick Companies | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of senior notes | ' | ' | ' | ' | ' | ' | $200 | $275 | ' | ' | ' | ' | $464.60 | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | 7.75% | ' | ' | ' | 7.75% | 11.63% | 7.13% | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | ' | 15-Feb-19 | ' | ' | ' | 15-Oct-22 | ' | ' | ' | ' | ' |
Deb tInstrument Maturity Year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | '2016 | ' | ' | ' |
Senior notes, aggregate principal amount | ' | ' | ' | ' | ' | ' | 475 | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' |
Debt instrument, purchase price as a percentage of principal amount | ' | ' | ' | ' | ' | ' | 101.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of the net proceeds from the offering to be funded | ' | ' | ' | ' | ' | ' | ' | ' | 186.3 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, redemption price | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Percent redeemable | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' |
Redemption price percentage of senior note | ' | ' | ' | ' | ' | ' | ' | 107.75% | ' | ' | ' | 107.75% | ' | ' | ' | ' | ' |
Minimum amount outstanding after redemption | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' |
Maximum period for redemption on senior note (in days) | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | '90 days | ' | ' | ' | ' | ' |
Debt instrument, repurchase price, percentage on principal amount plus accrued and unpaid interest | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' |
Secured revolving credit facility | 250 | 225 | ' | ' | ' | ' | ' | ' | ' | 165 | 30 | ' | ' | ' | ' | ' | ' |
Increase in total credit | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marginal interest rate | ' | ' | 1.50% | 2.50% | 2.50% | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum consolidated interest coverage ratio floor | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum consolidated leverage ratio ceiling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25 | ' | 4 |
Maximum consolidated senior secured leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75 | 2 |
Letters of credit outstanding under the Credit Agreement | 37.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Available Credit under the agreement | $212.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Debt service coverage ratio | 1.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_Of_Long
Long-Term Debt (Schedule Of Long-Term Debt Instruments) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Revolver | ' | ' |
Unamortized (discount) premium | 1,401 | 1,459 |
Capital leases and other notes | 104,429 | 111,626 |
Debt and Capital Lease Obligations, Total | 880,830 | 888,085 |
Less current portion | 40,687 | 41,394 |
Non Current Portion of Long Term Debt, total | 840,143 | 846,691 |
7.75% Senior Notes due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 475,000 | 475,000 |
7.75% Senior Notes due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | $300,000 | $300,000 |
LongTerm_Debt_Schedule_Of_Inte
Long-Term Debt (Schedule Of Interest Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Long-Term Debt [Abstract] | ' | ' |
Cash payments for interest | ($18,933) | ($19,266) |
Commitment and other fees paid | 585 | 455 |
Amortization of debt issuance costs and discount or premium on notes | 740 | 700 |
Change in accrued interest | -3,405 | -3,402 |
Other | 6 | -211 |
Total interest expense | $16,859 | $16,808 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | ' | ' |
Self insurance deductible for workers compensation | $5,000,000 | ' |
Self insurance deductible for general liability claims | 1,000,000 | ' |
Self insurance deductible for medical and dental coverage | 350,000 | ' |
Self insured risk accruals | 29,000,000 | 26,100,000 |
Receivable for Medical and Dental Coverage | $41,000 | $230,000 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Net Share Settlements | Net Share Settlements | Restricted Stock | Restricted Stock | Three-Year Period | Three-Year Period | Four-Year Period | Four-Year Period | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 80,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued from treasury stock | 210,000 | 107,250 | ' | ' | ' | ' | ' | ' | ' | ' |
Issued common stock for the exercise of stock options | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted shares of common stock granted | ' | ' | ' | ' | ' | ' | 414,900 | 432,400 | 294,909 | 262,000 |
Restricted shares of common stock vesting period, (in years) | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | '4 years | '4 years |
Restricted stock granted | 1,013,125 | ' | ' | ' | 283,358 | ' | ' | ' | ' | ' |
Percentage of target number of shares | ' | ' | ' | ' | 106.00% | ' | ' | ' | ' | ' |
Treasury shares acquired, shares | ' | ' | 250,461 | 154,225 | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive_Plan_Narrative_Detai
Incentive Plan (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 15 Months Ended | |
Mar. 12, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares available for issuance | ' | 10,350,000 | ' | 10,350,000 |
Share Based Compensation Expenses | ' | $3,400,000 | $2,800,000 | ' |
Tax benefit | ' | 799,000 | 1,300,000 | ' |
Unrecognized compensation related to non-vested share-based compensation arrangements | ' | 33,400,000 | ' | 33,400,000 |
Weighted-average period over which unrecognized compensation cost related to non-vested share-based compensation arrangements is expected to be recognized, in years | ' | '2 years 9 months | ' | ' |
Total fair value of share-based awards vested | ' | 20,300,000 | 11,500,000 | ' |
Excess tax expense/benefit due to carryforward loss | ' | ' | ' | 0 |
Total intrinsic value of options exercised | ' | 1,400,000 | 293,000 | ' |
Cash received from option exercises | ' | 4,441,000 | 172,000 | ' |
Target number of shares to be issued | 286,518 | ' | ' | ' |
Percentage of target number of performance-based awards will be earned | ' | 100.00% | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Percentage of target number of shares to be issued | ' | 0.00% | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Percentage of target number of shares to be issued | ' | 150.00% | ' | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Excess tax expense/benefit if there was no net operating loss carry forwards | ' | 213,000 | 14,000 | ' |
Options expiration period, (in years) | ' | '10 years | ' | ' |
Cash received from option exercises | ' | 4,100,000 | 183,000 | ' |
Stock Options [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting periods | ' | '3 years | ' | ' |
Stock Options [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting periods | ' | '5 years | ' | ' |
Restricted Stock Awards [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Excess tax expense/benefit if there was no net operating loss carry forwards | ' | $3,700,000 | $800,000 | ' |
Vesting periods | ' | '3 years | ' | ' |
Incentive_Plan_Summary_Of_Stoc
Incentive Plan (Summary Of Stock Options) (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Incentive Plan [Abstract] | ' |
Outstanding, beginning of period, Number of Options Granted | 530,000 |
Options exercised, Number of Options Granted | -210,000 |
Outstanding, end of period, Number of Options Granted | 320,000 |
Exercisable, end of period, Number of Options Granted | 320,000 |
Vested or expected to vest, end of period, Number of Options Granted | 320,000 |
Outstanding, beginning of period, Weighted Average Exercise Price | $18.15 |
Options exercised, Weighted Average Exercise Price | $19.42 |
Outstanding, end of period, Weighted Average Exercise Price | $17.31 |
Exercisable, end of period, Weighted Average Exercise Price | $17.31 |
Vested or expected to vest, end of period, Weighted Average Exercise Price | $17.31 |
Outstanding, end of period, Weighted Average Remaining Contractual Term (Years) | '1 year 5 months 19 days |
Exercisable, end of period, Weighted Average Remaining Contractual Term (Years) | '1 year 5 months 19 days |
Vested or expected to vest, end of period, Weighted Average Remaining Contractual Term (Years) | '1 year 5 months 19 days |
Outstanding, end of period, Aggregate Intrinsic Value | $3,231 |
Exercisable, end of period, Aggregate Intrinsic Value | 3,231 |
Vested or expected to vest, end of period, Aggregate Intrinsic Value | $3,231 |
Incentive_Plan_Summary_Of_NonV
Incentive Plan (Summary Of Non-Vested Shares) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Incentive Plan [Abstract] | ' |
Nonvested at beginning of period, Number of Shares | 2,089,597 |
Granted during period, Number of Shares | 1,013,125 |
Vested during period, Number of Shares | -843,781 |
Forfeited during period, Number of Shares | -8,699 |
Nonvested at end of period, Number of Shares | 2,250,242 |
Nonvested at beginning of period, Weighted Average Grant Date Fair Value Per Share | $14.93 |
Granted during period, Weighted Average Grant Date Fair Value Per Share | $25.14 |
Vested during period, Weighted Average Grant Date Fair Value Per Share | $14.78 |
Forfeited during period, Weighted Average Grant Date Fair Value Per Share | $18.70 |
Nonvested at end of period, Weighted Average Grant Date Fair Value Per Share | $19.57 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2006 | Dec. 31, 2010 |
Chief Executive Officer [Member] | Darle Vuelta Cattle Co LLC [Member] | |||
Salt Water Disposal Well [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Due from Employees | $39,000 | $50,000 | ' | ' |
Lease agreement, amount | ' | ' | 69,000 | ' |
Price of oil and gas waste per barrel | ' | ' | ' | 0.1 |
Price of brine or fresh water per barrel | ' | ' | ' | 0.05 |
Monthly payment on leases | ' | ' | ' | 5,000 |
Percentage of ownership in joint venture | ' | 80.00% | ' | ' |
Funded amount for joint venture | ' | $2,400,000 | ' | ' |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Number of anti-dilutive shares | 722,301 | 299,155 |
Earnings_Per_Share_Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator (both basic and diluted): | ' | ' |
Net loss | ($1,907) | ($8,778) |
Denominator: | ' | ' |
Denominator for basic earnings per share | 40,605,180 | 39,885,111 |
Denominator for diluted earnings per share | 40,605,180 | 39,885,111 |
Basic earnings per common share: | ($0.05) | ($0.22) |
Diluted earnings per common share: | ($0.05) | ($0.22) |
Business_Segment_Information_S
Business Segment Information (Schedule Of Reportable Segments Financial Information) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating revenues | $336,756 | $304,351 | ' |
Direct operating costs | -232,187 | -211,048 | ' |
Segment profits | 104,569 | 93,303 | ' |
Depreciation and amortization | 51,705 | 49,781 | ' |
Capital expenditures, (excluding acquisitions) | 33,106 | 39,873 | ' |
Identifiable assets | 1,525,015 | 1,575,249 | 1,543,339 |
Completion And Remedial Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating revenues | 137,485 | 118,361 | ' |
Direct operating costs | -86,480 | -79,008 | ' |
Segment profits | 51,005 | 39,353 | ' |
Depreciation and amortization | 15,727 | 14,932 | ' |
Capital expenditures, (excluding acquisitions) | 15,395 | 12,987 | ' |
Identifiable assets | 431,291 | 442,241 | ' |
Fluid Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating revenues | 92,835 | 84,330 | ' |
Direct operating costs | -66,782 | -57,874 | ' |
Segment profits | 26,053 | 26,456 | ' |
Depreciation and amortization | 16,063 | 14,311 | ' |
Capital expenditures, (excluding acquisitions) | 7,240 | 9,118 | ' |
Identifiable assets | 311,905 | 308,943 | ' |
Well Servicing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating revenues | 92,912 | 87,675 | ' |
Direct operating costs | -69,759 | -65,002 | ' |
Segment profits | 23,153 | 22,673 | ' |
Depreciation and amortization | 13,980 | 14,787 | ' |
Capital expenditures, (excluding acquisitions) | 7,694 | 12,026 | ' |
Identifiable assets | 265,870 | 303,136 | ' |
Contract Drilling [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating revenues | 13,524 | 13,985 | ' |
Direct operating costs | -9,166 | -9,164 | ' |
Segment profits | 4,358 | 4,821 | ' |
Depreciation and amortization | 3,210 | 3,196 | ' |
Capital expenditures, (excluding acquisitions) | 908 | 3,093 | ' |
Identifiable assets | 57,734 | 63,426 | ' |
Corporate And Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 2,725 | 2,555 | ' |
Capital expenditures, (excluding acquisitions) | 1,869 | 2,649 | ' |
Identifiable assets | $458,215 | $457,503 | ' |
Business_Segment_Information_S1
Business Segment Information (Schedule Of Reconciliation Of Operating Profit (Loss) From Segments) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Business Segment Information [Abstract] | ' | ' |
Segment profits | $104,569 | $93,303 |
General and administrative expenses | -39,559 | -41,957 |
Depreciation and amortization | -51,705 | -49,781 |
(Gain) loss on disposal of assets | 679 | -1,089 |
Operating income | $13,984 | $476 |
Supplemental_Schedule_Of_Cash_2
Supplemental Schedule Of Cash Flow Information (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Supplemental Schedule Of Cash Flow Information [Abstract] | ' | ' |
Interest paid | ($18,933,000) | ($19,266,000) |
Income Taxes Paid | $0 | $0 |
Supplemental_Schedule_Of_Cash_3
Supplemental Schedule Of Cash Flow Information (Schedule Of Supplemental Cash Flow Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Schedule Of Cash Flow Information [Abstract] | ' | ' |
Capital leases issued for equipment | $3,928 | $14,592 |
Asset retirement obligation additions | $23 | $78 |