Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 12, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Entity Registrant Name | Basic Energy Services, Inc. | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-32693 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 54-2091194 | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 0001109189 | ||
Amendment Flag | false | ||
Title of 12(g) Security | common stock | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 24,983,699 | ||
Entity Public Float | $ 48,848,836 | ||
Entity Address, Address Line One | 801 Cherry Street | ||
Entity Address, Address Line Two | Suite 2100 | ||
Entity Address, City or Town | Fort Worth | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76102 | ||
City Area Code | 817 | ||
Local Phone Number | 334-4100 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2020 Annual Meeting of Stockholders (to be filed within 120 days of the close of the registrant’s fiscal year) are incorporated by reference into Part III. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 36,217 | $ 90,300 |
Trade accounts receivable, net of allowance of $2,208 and $1,838, respectively | 99,626 | 144,767 |
Income tax receivable | 0 | 1,574 |
Inventories, net | 20,262 | 29,951 |
Prepaid expenses | 6,407 | 8,990 |
Assets held for sale | 55,149 | 18,106 |
Other current assets | 2,727 | 1,521 |
Total current assets | 220,388 | 295,209 |
Property and equipment, net | 297,113 | 309,170 |
Operating lease right of use assets | 14,540 | |
Deferred debt costs, net of amortization | 2,198 | 2,747 |
Other intangible assets, net of amortization | 2,603 | 2,984 |
Assets held for future sale | 0 | 139,631 |
Other assets | 13,632 | 12,036 |
Total assets | 550,474 | 761,777 |
Current liabilities: | ||
Accounts payable | 58,022 | 98,323 |
Accrued expenses | 48,116 | 44,955 |
Current portion of long-term debt | 18,738 | 19,582 |
Operating lease right-of-use liabilities, current portion | 4,906 | |
Accrued short-term insurance reserves | 8,848 | 10,871 |
Liabilities associated with assets held for sale | 5,248 | 0 |
Other current liabilities | 4,306 | 3,123 |
Total current liabilities | 148,184 | 176,854 |
Long-term debt, net of discounts and deferred financing costs of $8,795 and $10,690, at December 31, 2019 and 2018, respectively | 308,365 | 319,175 |
Operating lease right-of-use liabilities, long-term portion | 9,634 | |
Asset retirement obligations | 9,044 | 2,587 |
Accrued long-term insurance reserves | 16,582 | 16,280 |
Other long-term liabilities | 17,542 | 16,470 |
Liabilities associated with assets held for future sale | 0 | 10,983 |
Total liabilities | 509,351 | 542,349 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value: 5,000,000 shares authorized; zero outstanding at December 31, 2019 and 2018 | 0 | 0 |
Common stock, $0.01 par value: 80,000,000 shares authorized 27,912,059 and 26,990,034 shares issued and 24,904,485 and 26,747,712 shares outstanding at December 31, 2019 and 2018, respectively | 279 | 270 |
Additional paid-in capital | 472,594 | 464,264 |
Retained deficit | (423,169) | (241,271) |
Treasury stock, at cost 3,007,574 and 242,322 shares at December 31, 2019 and 2018, respectively | (8,581) | (3,835) |
Total stockholders' equity | 41,123 | 219,428 |
Total liabilities and stockholder's equity | $ 550,474 | $ 761,777 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Trade accounts receivable, allowance | $ 2,208 | $ 1,838 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Discounts and deferred financing costs, long-term debt | $ 8,795 | $ 10,690 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued (in shares) | 27,912,059 | 26,990,034 |
Common stock, outstanding (in shares) | 24,904,485 | 26,747,712 |
Treasury stock (in shares) | 3,007,574 | 242,322 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues: | |||||||||||
Total revenues | $ 710,135 | $ 964,720 | |||||||||
Expenses: | |||||||||||
General and administrative, including stock-based compensation of $9,156 and $27,254 in 2019 and 2018, respectively | 133,668 | 167,515 | |||||||||
Depreciation and amortization | [1] | 114,657 | 126,417 | ||||||||
Loss (gain) on disposal of assets | [1] | 4,013 | (2,598) | ||||||||
Total expenses | 849,732 | 1,037,750 | |||||||||
Operating loss | (139,597) | (73,030) | |||||||||
Other income (expense): | |||||||||||
Loss on extinguishment of debt | 0 | (26,429) | |||||||||
Interest expense | (43,470) | (45,853) | |||||||||
Interest income | 509 | 364 | |||||||||
Other income | 681 | 578 | |||||||||
Loss from continuing operations before income taxes | (91,380) | (116,509) | |||||||||
Income tax expense | (21) | (227) | |||||||||
Loss from continuing operations | $ (32,522) | $ (24,778) | $ (19,315) | $ (14,786) | $ (41,742) | $ (20,354) | $ (30,990) | $ (23,650) | (91,401) | (116,736) | |
Loss from discontinued operations | $ (55,245) | $ (14,100) | $ (8,462) | $ (12,690) | $ (4,935) | $ (6,981) | $ (9,064) | $ (6,881) | (90,497) | (27,861) | |
Net loss | $ (181,898) | $ (144,597) | |||||||||
Earnings Per Share [Abstract] | |||||||||||
Net loss from continuing operations per share, basic and diluted (in dollars per share) | $ (1.30) | $ (0.97) | $ (0.71) | $ (0.55) | $ (1.57) | $ (0.77) | $ (1.18) | $ (0.89) | $ (3.50) | $ (4.41) | |
Net loss from discontinued operations per share, basic and diluted (in dollars per share) | $ (2.22) | $ (0.55) | $ (0.31) | $ (0.47) | $ (0.19) | $ (0.26) | $ (0.34) | $ (0.26) | (3.46) | (1.05) | |
Net loss per share of common stock, basic and diluted (in dollars per share) | $ (6.96) | $ (5.46) | |||||||||
Well Servicing | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 226,966 | $ 250,991 | |||||||||
Expenses: | |||||||||||
Service expenses | 186,690 | 203,585 | |||||||||
Water Logistics | |||||||||||
Revenues: | |||||||||||
Total revenues | 199,816 | 231,283 | |||||||||
Expenses: | |||||||||||
Service expenses | 141,379 | 166,926 | |||||||||
Completion & Remedial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 274,942 | 469,456 | |||||||||
Expenses: | |||||||||||
Service expenses | 226,604 | 365,775 | |||||||||
Continuing operations | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 121,922 | $ 144,163 | $ 147,975 | $ 153,190 | $ 157,866 | $ 171,144 | $ 165,558 | $ 158,997 | 567,250 | 653,565 | |
Expenses: | |||||||||||
Service expenses | 426,815 | 480,405 | |||||||||
General and administrative, including stock-based compensation of $9,156 and $27,254 in 2019 and 2018, respectively | 118,460 | 145,725 | |||||||||
Depreciation and amortization | 69,489 | 78,173 | |||||||||
Loss (gain) on disposal of assets | 2,135 | (4,918) | |||||||||
Total expenses | 616,899 | 699,385 | |||||||||
Operating loss | (49,649) | (45,820) | |||||||||
Other income (expense): | |||||||||||
Loss on extinguishment of debt | 0 | (26,429) | |||||||||
Interest expense | (42,887) | (45,161) | |||||||||
Interest income | 509 | 364 | |||||||||
Other income | 647 | 537 | |||||||||
Loss from continuing operations before income taxes | (91,380) | (116,509) | |||||||||
Income tax expense | (21) | (227) | |||||||||
Loss from continuing operations | (91,401) | (116,736) | |||||||||
Continuing operations | Well Servicing | |||||||||||
Revenues: | |||||||||||
Total revenues | 226,966 | 250,982 | |||||||||
Expenses: | |||||||||||
Service expenses | 186,782 | 203,785 | |||||||||
Continuing operations | Water Logistics | |||||||||||
Revenues: | |||||||||||
Total revenues | 199,816 | 231,283 | |||||||||
Expenses: | |||||||||||
Service expenses | 141,379 | 166,907 | |||||||||
Continuing operations | Completion & Remedial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 140,468 | 171,300 | |||||||||
Expenses: | |||||||||||
Service expenses | $ 98,654 | $ 109,713 | |||||||||
[1] | (a) See reconciling cash flow items from discontinued operations in Note 2: Discontinued Operations |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Continuing operations | ||
Expenses: | ||
Stock-based compensation | $ 9,156 | $ 27,254 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings (Deficit) |
Beginning balance (in shares) at Dec. 31, 2017 | 26,371,572 | 152,443 | |||
Beginning balance at Dec. 31, 2017 | $ 338,653 | $ 264 | $ 439,517 | $ (4,454) | $ (96,674) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuances of restricted stock (in shares) | 618,462 | (70,147) | |||
Issuances of restricted stock | 3 | $ 6 | (3) | ||
Amortization of share based compensation | 27,254 | 27,254 | |||
Purchase of treasury stock | $ (1,885) | (2,504) | $ 619 | ||
Purchase of treasury stock (in shares) | 160,026 | 160,026 | |||
Net loss | $ (144,597) | (144,597) | |||
Ending balance (in shares) at Dec. 31, 2018 | 26,990,034 | 242,322 | |||
Ending balance at Dec. 31, 2018 | 219,428 | $ 270 | 464,264 | $ (3,835) | (241,271) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuances of restricted stock (in shares) | 922,025 | 73,136 | |||
Issuances of restricted stock | (331) | $ 9 | (9) | $ (331) | |
Amortization of share based compensation | 8,714 | 8,714 | |||
Purchase of treasury stock | $ (4,790) | (375) | $ (4,415) | ||
Purchase of treasury stock (in shares) | 2,692,116 | 2,692,116 | |||
Net loss | $ (181,898) | (181,898) | |||
Ending balance (in shares) at Dec. 31, 2019 | 27,912,059 | 3,007,574 | |||
Ending balance at Dec. 31, 2019 | $ 41,123 | $ 279 | $ 472,594 | $ (8,581) | $ (423,169) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities: | |||
Net loss | $ (181,898) | $ (144,597) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | [1] | 114,657 | 126,417 |
Asset impairment | [1] | 35,801 | 0 |
Inventory and other write-downs | [1] | 10,607 | 0 |
Accretion on asset retirement obligation | 1,051 | 212 | |
Change in allowance for doubtful accounts | 370 | 315 | |
Amortization of deferred financing costs | 2,338 | 1,072 | |
Amortization of debt discounts | 1,054 | 4,009 | |
Debt extinguishment costs | 0 | 26,429 | |
Non-cash compensation | 9,156 | 27,254 | |
Loss (gain) on disposal of assets | [1] | 4,013 | (2,598) |
Deferred income taxes | 0 | (78) | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 44,771 | 3,384 | |
Inventories | 6,529 | (46) | |
Prepaid expenses and other current assets | 6,242 | 5,248 | |
Other assets | (333) | 532 | |
Accounts payable | (37,495) | 18,267 | |
Income tax receivable | 1,574 | 305 | |
Other liabilities | 615 | 4,361 | |
Accrued expenses | 1,135 | 3,853 | |
Net cash provided by operating activities | 20,187 | 74,339 | |
Cash flows from investing activities: | |||
Purchase of Property plant and equipment | [1] | (55,353) | (68,709) |
Proceeds from sales of assets | [1] | 17,297 | 17,785 |
Payments for other long-term assets | (1,260) | 0 | |
Net cash used in investing activities | (39,316) | (50,924) | |
Cash flows from financing activities: | |||
Proceeds from debt | 0 | 332,500 | |
Repayments of debt | (29,364) | (318,929) | |
Debt extinguishment costs | 0 | (17,607) | |
Change in treasury stock including restricted stock issuances | (5,121) | (1,882) | |
Deferred loan costs and other financing activities | (469) | (13,420) | |
Net cash used in financing activities | (34,954) | (19,338) | |
Net (decrease) increase in cash and equivalents | (54,083) | 4,077 | |
Cash and cash equivalents - beginning of year | 90,300 | 86,223 | |
Cash and cash equivalents - end of year | 36,217 | 90,300 | |
Supplemental cash flow information: | |||
Capital leases and notes issued for equipment | 7,941 | 20,197 | |
Change in accrued property and equipment | (2,806) | (462) | |
Income taxes paid | 0 | 0 | |
Change in asset retirement obligations | 6,907 | (132) | |
Change in right-of-use assets | 14,541 | ||
Cash paid for interest | $ 39,248 | $ 34,396 | |
[1] | (a) See reconciling cash flow items from discontinued operations in Note 2: Discontinued Operations |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of OperationsBasic Energy Services, Inc. (“Basic” or the “Company”) provides a wide range of wellsite services to oil and natural gas drilling and producing companies, including well servicing, water logistics and completion and remedial services. These services are primarily provided by Basic’s fleet of equipment. Basic’s operations are concentrated in major United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Kansas, Arkansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, and California. Basic’s reportable business segments are Well Servicing, Water Logistics, and Completion & Remedial Services. These segments are based on management’s resource allocation and performance assessment in making decisions regarding the Company. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On December 12, 2019, based on the Company's evaluation of the demand for pressure pumping and contract drilling services, the Company's management decided to divest all of Basic's contract drilling rigs, and a majority of pressure pumping equipment and related ancillary equipment, with a net book value of $91.8 million. The Company believes this major strategic shift away from completions and pumping services will allow the Company to strengthen the core businesses of well servicing and water logistics, by reinvesting in those segments. As a result of this strategic shift, the Company recorded a non-cash impairment charge of $32.6 million in 2019 to write down the value of the assets. While pumping and related assets have been transferred to Assets Held for Sale on our Consolidated Balance Sheet, some real estate and equipment has been sold in the fourth quarter of 2019, with additional transactions to occur in the first half of 2020. In addition, the Company's contract drilling assets were divested through auctions in the third quarter of 2019, and an impairment of $3.2 million was recorded related to these transactions. Assets and liabilities related to the divested operations have been reclassified in the Consolidated Balance Sheet for the years ended December 31, 2019, and 2018 are detailed in the table below (in thousands): December 31, 2019 December 31, 2018 Assets-held-for-sale Inventories $ 2,069 $ 6,498 Prepaid Expenses — 8,489 Right of use assets 1,659 — Property, plant and equipment, net 50,496 — Total assets-held-for-sale discontinued operations $ 54,224 $ 14,987 Assets-held-for-sale-future-use Property, plant and equipment, net $ — $ 139,631 Liabilities related to Assets-held-for-sale Right of use liabilities 1,659 — Capital leases 3,589 10,983 Total Liabilities related to Assets-held-for-sale discontinued operations $ 5,248 $ 10,983 The operating results of the divested pressure pumping operations and contract drilling operations, which have historically been included in the Completions & Remedial Services and Other Services segments, have been reclassified as discontinued operations in the Consolidated Statement of Operations for the years ended December 31, 2019, and 2018, as detailed in the table below: Consolidated Statement of Operations (Dollars in thousands, except per share amounts) December 31, 2019 December 31, 2018 Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Revenues: Well Servicing $ 226,966 $ — $ 226,966 $ 250,982 $ 9 $ 250,991 Water Logistics 199,816 — 199,816 231,283 — 231,283 Completion & Remedial Services 140,468 134,474 274,942 171,300 298,156 469,456 Other Services — 8,411 8,411 — 12,990 12,990 Total revenues 567,250 142,885 710,135 653,565 311,155 964,720 Expenses: Well Servicing 186,782 (92) 186,690 203,785 (200) 203,585 Water Logistics 141,379 — 141,379 166,907 19 166,926 Completion & Remedial Services 98,654 127,950 226,604 109,713 256,062 365,775 Other Services — 6,920 6,920 — 10,130 10,130 General and administrative 118,460 15,208 133,668 145,725 21,790 167,515 Depreciation and amortization 69,489 45,168 114,657 78,173 48,244 126,417 Asset impairment — 35,801 35,801 — — — Loss (gain) on disposal of assets 2,135 1,878 4,013 (4,918) 2,320 (2,598) Total expenses 616,899 232,833 849,732 699,385 338,365 1,037,750 Operating loss (49,649) (89,948) (139,597) (45,820) (27,210) (73,030) Other income (expense): Loss on extinguishment of debt — — — (26,429) — (26,429) Interest expense (42,887) (583) (43,470) (45,161) (692) (45,853) Interest income 509 — 509 364 — 364 Other income 647 34 681 537 41 578 Loss before income taxes (91,380) (90,497) (181,877) (116,509) (27,861) (144,370) Income tax expense (21) — (21) (227) — (227) Loss from operations $ (91,401) $ (90,497) $ (181,898) $ (116,736) $ (27,861) $ (144,597) Net loss per share of common stock, basic and diluted $ (3.50) $ (3.46) $ (6.96) $ (4.41) $ (1.05) $ (5.46) Interest expense in discontinued operations related to interest expense on capital lease assets that operated in the discontinued Completions & Remedial Services and Other Services segments. Applicable Consolidated Statements of Cash Flow information related to the divested operations for the years ended December 31, 2019 and 2018 are detailed in the table below (in thousands): December 31, 2019 December 31, 2018 Cash Flows from Discontinued Operations Net cash provided (used) by operating activities $ 2,120 $ 37,691 Net cash provided (used) in investing activities $ 133 $ (23,074) Reconciling items for cash flows: December 31, 2019 Continuing operations Discontinued operations Cash flows Operating activities : Inventory and other write-downs $ 5,266 $ 5,341 $ 10,607 Loss on disposal of assets $ 2,135 $ 1,878 $ 4,013 Investing activities: Purchase of Property plant and equipment $ (44,794) $ (10,559) $ (55,353) Proceeds from sales of assets $ 6,605 $ 10,692 $ 17,297 Reconciling items for cash flows: December 31, 2018 Continuing operations Discontinued operations Cash flows Operating activities : (Gain) Loss on disposal of assets $ (4,918) $ 2,320 $ (2,598) Investing activities: Purchase of Property plant and equipment $ (43,063) $ (25,646) $ (68,709) Proceeds from sales of assets $ 15,213 $ 2,572 $ 17,785 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Basic, for which we hold a majority voting interest. All intercompany transactions and balances have been eliminated. Other Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. A majority of the reclassifications were related to the discontinued operations. These reclassifications do not impact net income (loss) and do not reflect a material change to the information previously presented in our consolidated financial statements. Estimates, Risks 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 disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from those estimates. Areas where critical accounting estimates are made by management include 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 and its past experience with similar claims. Basic maintains accruals in the consolidated balance sheets to cover self-insurance retentions. Please see Note 9. Commitments and Contingencies for further discussion. Revenue Recognition Basic accounts for revenues under Accounting Standards Codification (ASC) Topic - 606 - Revenue from Contracts with Customers, the core principle of which is that a company should recognize revenue to match the delivery of goods or services to customers to the consideration the company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of revenue and cash flows arising from contracts with customers. We adopted the standard effective January 1, 2018, using the modified retrospective method. Other than additional required disclosures, adoption of the new standard did not have a significant impact on our consolidated financial statements. Our revenues are generated by services, which are consumed as provided by our customers on their sites. As a decentralized organization, contracts for our services are negotiated on a regional level and are on a per job basis, with jobs being completed in a short period of time, usually one day or up to a week. Revenue is recognized as performance obligations have been completed on a daily basis either as Accounts Receivable or Work-in-Process ("WIP"), when all of the proper approvals are obtained. A small percentage of our jobs may require performance obligations which extend over a longer period of time and are not invoiced until all performances obligations in the contract are complete, such as, drilling or plugging a well, fishing services, and pad site preparation jobs. Because these jobs are performed on the customer's job site, and we are contractually entitled to bill for our services performed to date, revenues for these service lines are recognized on a daily basis as services are performed and recorded as Contract Assets rather than WIP or Accounts Receivable. Contract Assets are typically invoiced within 30 to 60 days of recognizing revenue. Basic does not have any long-term service contracts; nor do we have revenue expected to be recognized in any future year related to remaining performance obligations or contracts with variable consideration related to undelivered performance obligations. Inventories For rental and fishing tools, inventories consisting mainly of grapples, controls and drill bits are stated at lower of cost or net realizable value. 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 lower of cost or net realizable value, with cost being determined on the first-in, first-out (“FIFO”) method. Accounts Receivable Basic estimates its allowance for losses on accounts receivable based on past collections and expectations for future collections. Basic regularly reviews accounts for collectability. After all collection efforts are exhausted, if the balance is still determined to be uncollectable, the balance is written off. Expense related to the write off of uncollected accounts is recorded in general and administrative 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. It 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. For the twelve months ended December 31, 2019, one customer represented 12% of consolidated revenue. Leases Basic determines if an arrangement is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we classify that lease as an operating lease or a finance lease. We capitalize operating leases on our consolidated balance sheets through a right-of-use (“ROU”) asset and a corresponding lease liability. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating leases are included in operating lease ROU assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Basic adopted this standard on January 1, 2019. Property and Equipment Property and equipment are stated at cost or at estimated fair value at acquisition date if acquired in a business combination or remeasured as a result of fresh start accounting. 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 and the estimated useful lives of the assets are as follows: Asset Type: Useful Life Buildings and improvements 20-30 years Well service units and equipment 3-15 years Fluid services equipment 5-10 years Brine and fresh water stations 15 years Fracturing/test tanks 10 years Disposal facilities 10-15 years Vehicles 3-7 years Rental equipment 2-15 years Software and computers 3 years 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 ranges 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 We perform a review of our asset groups for impairment when, in management’s judgment, events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recovered over its remaining service life. Impairment is indicated when the sum of the estimated future cash flows, on an undiscounted basis, is less than the asset groups carrying amount. When impairment is identified and fair value is less than carrying value, an impairment charge is recorded to income based on an estimated fair value generally determined based on an estimate of future cash flows on a discounted basis. See Note 4. Property and Equipment for disclosures related to our tangible and intangible property impairments in 2019 and 2018. Intangible Assets Basic’s intangible assets subject to amortization were as follows (in thousands): December 31, 2019 2018 Trade names $ 3,230 $ 3,410 Other intangible assets 48 48 Sub-total 3,278 3,458 Less accumulated amortization 675 474 Intangible assets subject to amortization, net $ 2,603 $ 2,984 Amortization expense for each of the years ended December 31, 2019 and 2018 was approximately $0.2 million. Basic evaluates intangible assets for impairment annually. In 2019, the Company wrote off $0.2 million of net trade names related to the discontinued pumping services line of business. Amortization expense for the next five succeeding years is expected to be as follows (in thousands): Amortization Expense 2020 $ 225 2021 225 2022 215 2023 215 2024 215 Thereafter 1,508 Total $ 2,603 Developed technology are amortized over a 5-year life. Trade names are amortized over a 15-year life. Debt Issuance Costs Basic capitalizes certain third-party fees directly related to the issuance of debt and amortizes these costs over the life of the debt using the effective interest method. Debt issuance costs related to our ABL Facility are presented net of amortization as a non-current asset. Debt issuance costs related to our Senior Secured Notes and Term Loan are presented net of amortization as an offset to the liability. Amortized debt issuance costs are included in interest expense and totaled $2.3 million in 2019, and $1.1 million in 2018. Stock-Based Compensation Basic has historically compensated our directors, executives and employees using a combination of performance and time-based stock option, restricted share, and restricted share unit awards. Basic accounts for share-based payment awards under Accounting Codification Standard 718 - Compensation - Stock Compensation (ASC 718), which requires that the value of the awards is established at the date of the grant and is expensed over the vesting period of the grant. The method of determining the fair value of share-based payments depends on the type of award. Share-based awards that vest over a certain service period with no market conditions are valued at the closing market price on the grant date. Share-based awards that are dependent upon certain market performance and service conditions being met are valued using a Monte Carlo simulation model with model inputs that are determined on the date of the grant. Option grants are valued using the Black-Scholes-Merton model using model inputs that are determined on the date of the grant. Once the per-share fair value on the grant date is established, the aggregate expense of the grant is recognized on a straight-line basis over the vesting period of the grant. Asset Retirement Obligations Basic is required to record 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 capitalize 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. Basic has asset retirement obligations related to our saltwater disposal facilities, brine and freshwater wells. 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, chemical 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. Income Taxes The provision for income taxes is determined using the asset and liability method of accounting for income taxes based on the authoritative accounting guidance. Deferred tax assets and liabilities are recorded based upon differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. Recent Accounting Pronouncements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was adopted effective January 1, 2019. See Note 6. Leases for further discussion. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, "Financial Instruments–Credit Losses," and subsequent amendment to the initial guidance, ASU 2018-19 (collectively, Topic 326). ASU 2016-13 amends current measurement techniques used to estimate credit losses for financial assets. The amendments in ASU 2016-13 are effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Basic adopted this standard on January 1, 2020, and the adoption did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. " ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. The effective date of this pronouncement is for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The standard can be adopted either using the prospective or retrospective transition approach. Basic adopted this standard on September 30, 2019, and the adoption did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The amendments of the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Basic is currently evaluating the impact of this pronouncement on its consolidated financial statements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table summarizes the components of property and equipment for the years ended December 31, 2019, and 2018. Prior year amounts are adjusted for the discontinued pumping services and contract drilling operations (in thousands): December 31, Property and Equipment: 2019 2018 Land $ 15,682 $ 14,601 Buildings and improvements 30,902 30,108 Well service units and equipment 130,318 122,236 Disposal facilities 87,763 63,229 Fluid services equipment 79,024 78,501 Rental equipment 60,886 48,319 Pumping equipment 47,083 49,265 Light vehicles 26,630 23,063 Fracturing/test tanks 6,153 6,001 Brine and fresh water stations 4,340 3,295 Other 3,948 3,984 Software 896 857 Sub-total 493,625 443,459 Less accumulated depreciation and amortization (196,512) (134,289) Property and equipment, net $ 297,113 $ 309,170 Basic is obligated under various capital leases for certain vehicles and equipment that expire at various dates during the next five December 31, Property and Equipment: 2019 2018 Fluid services equipment $ 34,499 $ 35,034 Light vehicles 19,563 15,631 Pumping equipment 16,576 16,920 Rental equipment 1,130 — Sub-total 71,768 67,585 Less accumulated amortization (27,727) (16,634) Property and equipment, net $ 44,041 $ 50,951 During the period ended December 31, 2019, based on the Company's evaluation of the demand for pressure pumping and contract drilling services, the Company's management decided to divest all of Basic's contract drilling rigs, a majority of pressure pumping equipment and related ancillary equipment, with a net book value of $91.8 million. The Company determined that the carrying value of these assets may not be fully recoverable upon liquidation. The fair value of assets was determined after considering offers to purchase assets in an orderly transaction, third-party estimates, and management's estimates based on comparable sales. As a result of the Company's evaluation of the fair value of assets, an impairment of $35.8 million was recognized within discontinued operations on the consolidated statement of operations during the year ended December 31, 2019, with the remaining net book value transferred to assets held for sale. Basic's estimate of expected cash flows which may result from the sale of equipment may differ from actual cash received due to excess capacity in the industry. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement ObligationsThe Company has the obligation to plug and remediate its saltwater disposal wellsites when the assets are to be retired. This asset retirement obligation ("ARO") includes plugging inactive assets, removal of surface equipment, and remediation of soil contamination. The Company records a liability for the fair value of ARO that we can reasonably estimate, on a discounted basis, in the period in which the asset is acquired. The fair value of the liability is calculated using discounted cash flow techniques and based on internal estimates and assumptions related to (i) future retirement costs, (ii) expected remaining lives of the assets, (iii) future inflation rates, and (iv) credit adjusted risk-free interest rates. Significant increases or decreases in these assumptions could result in a significant change to the fair value measurement. During 2019, the Company increased its estimated ARO liability by $7.2 million. The additional operational and accounting information provided by the creation of our water midstream entity allowed management to determine which wellsites were candidates for further capital investment, and which were candidates for plugging and abandonment (“P&A” or plug & abandon). The first nine months of plugging and abandonment activity in 2019 provided additional information to revise our initial P&A estimates made when each disposal well was an extension of a trucking yard. As an extension of a trucking yard, a well may be plugged, but not abandoned since the trucking yard would still be operational. As a stand-alone water midstream entity, if ALM were to plug a well, it would likely also remediate and abandon the wellsite at the same time. The data gathered from the creation of the entity allowed us to make the upward revision of our estimate in the third quarter of 2019. The following table presents activity in our ARO (in thousands): 2019 2018 Balance as of January 1, 2019 $ 2,587 $ 2,507 Additions 281 16 Revision in estimate 7,205 — Disposals (124) (148) Expenditures (671) — Accretion of discount 1,051 212 Balance as of December 31, 2019 $ 10,329 $ 2,587 The following table outlines our contractual obligations as of December 31, 2019 (in thousands): Retirement obligation 2020 $ 1,285 2021 172 2022 146 2023 341 Thereafter 8,385 Total asset retirement obligations $ 10,329 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Basic adopted ASU No. 2016-02, Topic 842 - Leases, effective January 1, 2019. This ASU requires lessees to recognize an operating lease right-of-use ("ROU") asset and liability on the balance sheet for all operating leases with an initial lease term greater than twelve months. ASU 2018-11 Leases – Targeted Improvements, allows for a practical expedient wherein all periods previously reported under ASC 840 will continue to be reported under ASC 840, and periods beginning January 1, 2019 and after are reported under ASC 842. Basic elected to adopt this practical expedient along with the package of practical expedients, which allows Basic to combine lease and non-lease costs, and not to assess whether existing or expired land easements that were not previously accounted for as leases under Topic 840 are or contain a lease under this Topic. Under this transition option, Basic will continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented and will make only annual disclosures for the comparative periods because ASC 840 does not require interim disclosures. Prior period amounts have not been adjusted and continue to be reflected in accordance with Basic’s historical accounting. The adoption of this standard resulted in the recording of ROU assets and lease liabilities of approximately of $20.8 million as of January 1, 2019, with no related impact on Basic’s Consolidated Statement of Shareholders' Equity or Consolidated Statement of Operations. As a lessee, Basic leases its corporate office headquarters in Fort Worth, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance yards, disposal facilities and employee housing sufficient to support its operations in the area. Basic leases most of these properties under either non-cancelable term leases many of which contain renewal options that can extend the lease term from one Operating lease expense consists of rent expense related to leases that were included in ROU assets under Topic 842. Basic recognizes operating lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable operating lease payments typically include charges for property taxes and insurance, and some leases contain variable payments related to non-lease components, including common area maintenance and usage of facilities or office equipment (for example, copiers), which totaled approximately $1.1 million during the twelve months ended December 31, 2019. Prepaid rent totaled $0.1 million at December 31, 2019. The following table summarizes the components of the Company's lease expense recognized for the twelve months ended December 31, 2019, excluding variable lease and prepaid rent costs (in thousands): December 31, 2019 Operating lease expense: Short-term operating lease $ 5,691 Long-term operating lease 8,681 Total operating lease expense $ 14,372 Finance lease expense: Amortization of right-of-use assets $ 19,171 Interest on lease liabilities 5,005 Total finance lease expense $ 24,176 Supplemental information related to leases was as follows: December 31, 2019 Operating leases Weighted average remaining lease term 3.1 years Weighted average discount rate 14.8% Finance leases Weighted average remaining lease term 2.1 years Weighted average discount rate 8.2% Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 14,372 Operating cash outflows from finance leases 5,005 Financing cash outflows from finance leases 29,364 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,477 Finance leases 7,941 Supplemental balance sheet information related to leases was as follows as of December 31, 2019, and December 31, 2018 (in thousands): December 31, 2019 December 31, 2018 Right-of-Use Assets under Operating Leases Operating lease right-of-use assets $ 14,540 $ 20,819 Operating lease right-of-use liabilities, current portion 4,906 5,649 Operating lease right-of-use liabilities, long-term portion 9,634 15,170 Total operating lease liabilities $ 14,540 $ 20,819 Right-of-Use Assets under Finance Leases Property and equipment, at cost $ 71,768 $ 67,585 Less accumulated depreciation (27,727) (16,634) Property and equipment, net $ 44,041 $ 50,951 Current portion of finance leases $ 18,738 $ 20,061 Long-term finance leases 17,160 29,865 Total finance lease liabilities $ 35,898 $ 49,926 Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Leases | Leases Basic adopted ASU No. 2016-02, Topic 842 - Leases, effective January 1, 2019. This ASU requires lessees to recognize an operating lease right-of-use ("ROU") asset and liability on the balance sheet for all operating leases with an initial lease term greater than twelve months. ASU 2018-11 Leases – Targeted Improvements, allows for a practical expedient wherein all periods previously reported under ASC 840 will continue to be reported under ASC 840, and periods beginning January 1, 2019 and after are reported under ASC 842. Basic elected to adopt this practical expedient along with the package of practical expedients, which allows Basic to combine lease and non-lease costs, and not to assess whether existing or expired land easements that were not previously accounted for as leases under Topic 840 are or contain a lease under this Topic. Under this transition option, Basic will continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented and will make only annual disclosures for the comparative periods because ASC 840 does not require interim disclosures. Prior period amounts have not been adjusted and continue to be reflected in accordance with Basic’s historical accounting. The adoption of this standard resulted in the recording of ROU assets and lease liabilities of approximately of $20.8 million as of January 1, 2019, with no related impact on Basic’s Consolidated Statement of Shareholders' Equity or Consolidated Statement of Operations. As a lessee, Basic leases its corporate office headquarters in Fort Worth, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance yards, disposal facilities and employee housing sufficient to support its operations in the area. Basic leases most of these properties under either non-cancelable term leases many of which contain renewal options that can extend the lease term from one Operating lease expense consists of rent expense related to leases that were included in ROU assets under Topic 842. Basic recognizes operating lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable operating lease payments typically include charges for property taxes and insurance, and some leases contain variable payments related to non-lease components, including common area maintenance and usage of facilities or office equipment (for example, copiers), which totaled approximately $1.1 million during the twelve months ended December 31, 2019. Prepaid rent totaled $0.1 million at December 31, 2019. The following table summarizes the components of the Company's lease expense recognized for the twelve months ended December 31, 2019, excluding variable lease and prepaid rent costs (in thousands): December 31, 2019 Operating lease expense: Short-term operating lease $ 5,691 Long-term operating lease 8,681 Total operating lease expense $ 14,372 Finance lease expense: Amortization of right-of-use assets $ 19,171 Interest on lease liabilities 5,005 Total finance lease expense $ 24,176 Supplemental information related to leases was as follows: December 31, 2019 Operating leases Weighted average remaining lease term 3.1 years Weighted average discount rate 14.8% Finance leases Weighted average remaining lease term 2.1 years Weighted average discount rate 8.2% Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 14,372 Operating cash outflows from finance leases 5,005 Financing cash outflows from finance leases 29,364 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,477 Finance leases 7,941 Supplemental balance sheet information related to leases was as follows as of December 31, 2019, and December 31, 2018 (in thousands): December 31, 2019 December 31, 2018 Right-of-Use Assets under Operating Leases Operating lease right-of-use assets $ 14,540 $ 20,819 Operating lease right-of-use liabilities, current portion 4,906 5,649 Operating lease right-of-use liabilities, long-term portion 9,634 15,170 Total operating lease liabilities $ 14,540 $ 20,819 Right-of-Use Assets under Finance Leases Property and equipment, at cost $ 71,768 $ 67,585 Less accumulated depreciation (27,727) (16,634) Property and equipment, net $ 44,041 $ 50,951 Current portion of finance leases $ 18,738 $ 20,061 Long-term finance leases 17,160 29,865 Total finance lease liabilities $ 35,898 $ 49,926 Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following (in thousands): December 31, 2019 2018 10.75% Senior Notes due 2023 $ 300,000 $ 300,000 Capital leases and other notes 35,898 49,926 Unamortized discount and deferred debt costs (8,795) (11,169) Total long-term debt 327,103 338,757 Less current portion 18,738 19,582 Total non-current portion of long-term debt $ 308,365 $ 319,175 Debt Discounts The following discounts on debt represent the unamortized discount to fair value of prior Amended and Restated Term Loan Agreement and the short-term and long-term portions of the fair value discount of capital leases (in thousands): December 31, 2019 2018 Unamortized discount on Senior Notes $ 2,156 $ 2,731 Unamortized discount on Capital Leases - short-term — 479 Unamortized deferred debt issuance costs 6,639 7,959 Total $ 8,795 $ 11,169 Senior Secured Notes On October 2, 2018, the Company issued $300 million aggregate principal amount of 10.75% senior secured notes due 2023 (the “Senior Notes”) in an offering exempt from registration under the Securities Act. The Senior Notes were issued at a price of 99.042% of par to yield 11.0%. The Senior Notes are secured by a first-priority lien on substantially all of the assets of the Company and the subsidiary guarantors other than accounts receivable, inventory and certain related assets. Net proceeds from the offering of approximately $290.0 million were used to repay the Company’s existing indebtedness under the Amended and Restated Term Loan Agreement, to repay the Company’s outstanding borrowings under its previous credit facility (the "Prior ABL Facility"), and for general corporate purposes. Indenture The Company’s Senior Notes were issued under and are governed by an indenture, dated as of October 2, 2018 (the “Indenture”), by and among the Company, the guarantors named therein (the “Guarantors”), and UMB Bank, N.A. as Trustee and Collateral Agent (the “Trustee”). The Senior Notes are jointly and severally, fully and unconditionally guaranteed (the “Guarantees”) on a senior secured basis by the Guarantors and are secured by first priority liens on substantially all of the Company’s and the Guarantors’ assets, other than accounts receivable, inventory and certain related assets. The Indenture contains covenants that limit the ability of the Company and certain subsidiaries to: • incur additional indebtedness or issue preferred stock; • pay dividends or make other distributions to its stockholders; • repurchase or redeem capital stock or subordinated indebtedness and certain refinancings thereof; • make certain investments; • incur liens; • enter into certain types of transactions with affiliates; • limit dividends or other payments by restricted subsidiaries to the Company; and • sell assets or consolidate or merge with or into other companies. These limitations are subject to a number of important qualifications and exceptions. Upon an Event of Default (as defined in the Indenture), the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Senior Notes may declare the entire principal of, premium, if any, and accrued and unpaid interest, if any, on all the Senior Notes to be due and payable immediately. At any time on or prior to October 15, 2020, the Company may redeem up to 35% of the aggregate principal amount of the Senior Notes at a redemption price equal to 110.75% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, with an amount of cash not greater than the net proceeds from certain equity offerings. At any time prior to October 15, 2020, the Company may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes plus a “make-whole” premium plus accrued and unpaid interest, if any, to the redemption date. The Company may also redeem all or a part of the Senior Notes at any time on or after October 15, 2020, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to the redemption date. The Company may redeem all, but not less than all, of the Senior Notes in connection with a company sale transaction, at a redemption price of 105.375% of principal for a company sale that occurs on or after April 15, 2019 and on or before October 15, 2019, or 108.063% of principal amount for a company sale that occurs after October 15, 2019 and before October 15, 2020, in each case plus accrued and unpaid interest, if any, to the redemption date. If the transactions contemplated by the Exchange Agreement are followed by a downgrade in the Company's rating by either S&P Global Ratings or Moody’s Investors Service within 90 days, a “Change of Control” as defined in our Senior Notes will be deemed to have occurred. If the Company experiences such a Change of Control, the Company may be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the purchase date. The Senior Notes and the Guarantees rank equally in right of payment with all of the Company’s and the Guarantors’ existing and future unsubordinated indebtedness, effectively senior to all of the Company’s and the Guarantors’ existing and future indebtedness to the extent of the value of the collateral securing the Senior Notes but junior to other indebtedness that is secured by liens on assets other than collateral for the Senior Notes to the extent of the value of such assets, and senior to all of the Company’s and the Guarantors’ future subordinated indebtedness. Pursuant to a collateral rights agreement, the Senior Notes and Guarantees are secured by first priority liens, subject to limited exceptions, on the collateral securing the Senior Notes, consisting of substantially all of the property and assets now owned or hereafter acquired by the Company and the Guarantors, except for certain excluded property described in the Indenture. ABL Facility On October 2, 2018, the Company terminated the Prior ABL Facility and Amended and Restated Term Loan Agreement and entered into an ABL Credit Agreement (the “ABL Credit Agreement”) among the Company, as borrower (in such capacity, the “Borrower”), Bank of America, N.A., as administrative agent (the “Administrative Agent”), swing line lender and letter of credit issuer, UBS Securities LLC, as syndication agent, PNC Bank National Association, as documentation agent and letter of credit issuer, and the other lenders from time to time party thereto (collectively, the “ABL Lenders”). Pursuant to the ABL Credit Agreement, the ABL Lenders have extended to the Borrower a revolving credit facility in the maximum aggregate principal amount of $150 million, subject to borrowing base capacity (the “ABL Facility”). The ABL Facility includes a sublimit for letters of credit of up to $50 million in the aggregate, and for borrowings on same-day notice under swingline loans subject to a sublimit of the lesser of (a) $15 million and (b) the aggregate commitments of the ABL Lenders. The ABL Facility also provides capacity for base rate protective advances up to $10 million at the discretion of the Administrative Agent and provisions relating to overadvances. The ABL Facility contains no restricted cash requirements. Borrowings under the ABL Facility bear interest at a rate per annum equal to an applicable rate, plus, at Borrower’s option, either (a) a base rate or (b) a LIBO rate. The applicable rate is fixed from the closing date to April 1, 2019. After April 1, 2019, the applicable rate is determined by reference to the average daily availability as a percentage of the borrowing base during the fiscal quarter immediately preceding such applicable quarter. The applicable rate has remained unchanged since inception of the ABL Facility. Principal amounts outstanding under the ABL Facility will be due and payable in full on the maturity date, which is five years from the closing of the facility; provided that if the Senior Notes have not been redeemed by July 3, 2023, then the maturity date shall be July 3, 2023. Substantially all of the domestic subsidiaries of the Company guarantee the borrowings under the ABL Facility, and Borrower guarantees the payment and performance by each specified loan party of its obligations under its guaranty with respect to swap obligations. All obligations under the ABL Facility and the related guarantees are secured by a perfected first-priority security interest in substantially all accounts receivable, inventory, and certain other assets, not including equity interests. As of December 31, 2019, Basic had no borrowings and $34.2 million of letters of credit outstanding under the ABL Facility. Prior ABL Facility On September 29, 2017, Basic entered into a credit facility (the "Prior ABL Facility") pursuant to (i) a Receivables Transfer Agreement (the “Transfer Agreement”) entered into by and among Basic Energy Services, L.P. (“BES LP”), as the initial originator and Basic Energy Receivables, LLC (the “SPE”), as the transferee and (ii) the Credit Agreement. Under the Transfer Agreement, BES LP was required to sell or contribute, on an ongoing basis, its accounts receivable and related security and interests in the proceeds thereof (the “Transferred Receivables”) to the SPE. The SPE financed a portion of its purchase of the accounts receivable through borrowings, on a revolving basis, of up to $100 million (with the ability to request an increase in the size of the Prior ABL Facility by $50 million) under the Credit Agreement, and such borrowings were secured by the accounts receivable. The SPE financed its purchase of the remaining portion of the accounts receivable by issuing subordinated promissory notes to BES LP and/or by contributing the remaining portion of the accounts receivables in exchange for equity in the SPE in the amount of the purchase price of the receivable not paid in cash. BES LP was responsible for the servicing, administration and collection of the accounts receivable, with all collections going into lockbox accounts. The Company provided a customary guaranty of performance to the administrative agent with respect to certain obligations of BES LP and any successor servicer under the Prior ABL Facility. In connection with entering into the Prior ABL Facility, on September 29, 2017, the Company amended the Amended and Restated Term Loan Agreement to permit, among other things, (i) the acquisition of the Transferred Receivables by the SPE pursuant to the Transfer Agreement, free and clear of the liens under the Amended and Restated Term Loan Agreement and (ii) the transactions contemplated under each of the Transfer Agreement and Credit Agreement. The Company consolidated the SPE, which the Company determined to be a variable interest entity ("VIE"), and all intercompany activity was eliminated upon consolidation. In concluding the SPE was a VIE, the Company determined it is the primary beneficiary of the SPE, as all activities of SPE are for the benefit of the Company. The accounts receivable held at the SPE are used solely to settle the debt obligations of the SPE. Loans under our Prior ABL Facility bore interest at a fluctuating rate equal to (a) the Alternate Base Rate plus 2.25% with respect to ABR Loans or (b) the Adjusted LIBO rate plus 3.25% with respect to Eurodollar Loans (each as defined in the Credit Agreement). A commitment fee equal to 0.375% per annum was payable on the unused commitments under the Credit Agreement. The loans made pursuant to the Credit Agreement had a maturity date of September 29, 2021. In connection with the closing of its Senior Notes offering, the Company repaid the balances outstanding under the Prior ABL Facility in its entirety and terminated the Prior ABL Facility. Amended and Restated Term Loan Agreement On December 23, 2016, the Company entered into an Amended and Restated Term Loan Credit Agreement (the “Amended and Restated Term Loan Agreement”) with a syndicate of lenders and U.S. Bank National Association, as administrative agent for the lenders. On October 2, 2018, in connection with the closing of its Senior Note offering, the Company repaid its outstanding debt (including accrued interest) under the Amended and Restated Term Loan Agreement and terminated the Amended and Restated Term Loan Agreement. The Amended and Restated Term Loan Agreement repayment was made prior to the maturity date defined in the Amended and Restated Term Loan Agreement, and the Company incurred repayment penalties of approximately $17.6 million associated with the repayment. Other Debt Basic has a variety of other capital leases outstanding, which are generally customary in Basic’s business. As of December 31, 2019, the aggregate maturities of debt, including capital leases, for the next five years and thereafter are as follows (in thousands): Period: Debt Capital Leases 2020 $ — $ 18,738 2021 — 11,485 2022 — 4,835 2023 300,000 785 Thereafter — 55 Total $ 300,000 $ 35,898 Basic’s interest expense consisted of the following (in thousands): Year ended December 31, Interest expense: 2019 2018 Cash payments for interest $ 39,248 $ 34,396 Commitment and other fees paid 48 2,441 Amortization of discounts 1,054 3,424 Amortization of deferred debt costs 2,338 1,050 Change in accrued interest 86 3,688 Other 113 162 Interest expense - continuing operations $ 42,887 $ 45,161 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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. The Company 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. 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). The Company 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 the Company 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. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities approximate fair value due to the short maturities of these instruments. The carrying amount of our Credit Facility in Long-term debt also approximates fair value due to its variable-rate characteristics. December 31, 2019 December 31, 2018 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value 10.75 % Senior Notes due 2023 1 $ 297,844 $ 213,246 $ 297,269 $ 257,806 Basic did not have any assets or liabilities that were measured at fair value on a recurring basis at December 31, 2018, and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. 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 maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, 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. Sales and Use Tax Audit In 2018, the Texas State Comptroller’s office issued a preliminary report on the sales and use tax audit for the period from 2010 through 2013. Basic appealed the preliminary report through the redetermination process. Based on our analysis, the potential liability associated with this audit ranges from $6.0 million to $24.0 million. This range could potentially change in future periods as the appeals and redetermination process progresses. Basic recorded an accrual of $6.0 million in the second quarter of 2018. After making monthly payments of $100,000, a net estimated liability of $4.2 million, and an additional amount of $1.9 million of related interest are included in accrued liabilities for the twelve months ended December 31, 2019. On August 15, 2019, the Company was notified by the Oklahoma Tax Commission (the "OTC") that the tax court had issued findings, conclusions, and recommendations in an on-going tax case related to tax years 2006 through 2008. Based on the ruling and the advice of our Oklahoma tax counsel, the Company decided to negotiate a settlement with the OTC. The Company's analysis is that the potential liability associated with the settlement may range from $2.3 million to $3.5 million. The Company recorded $2.3 million of income tax and interest payable, which are included as accrued expenses on our consolidated balance sheets, and the related expense during the year ended December 31, 2019. Employment Agreements Pursuant to the Employment Agreement with Keith Schilling, the President and Chief Executive Officer of the Company, effective through December 31, 2021, and set to automatically renew for subsequent one-year periods unless notice of termination is properly given by the Company or Mr. Schilling, Mr. Schilling is entitled to a base salary of $650,000 per year. Mr. Schilling will also receive an annual performance bonus, with a target bonus equal to 90% of his base salary, if certain performance criteria are met. Under the Employment Agreement, Mr. Schilling is also eligible from time to time to receive awards of long-term equity incentive compensation under the Company’s equity compensation plans. In addition to his one-time signing bonus of $150,000, he will receive one-time payments to compensate him for the loss of equity issued from his previous employment in the following amounts: (i) $50,000 on May 15, 2020, (ii) $100,000 on May 15, 2021, and (iii) $100,000 on May 15, 2022, in each case conditioned on his continued employment through the applicable payment date. If Mr. Schilling’s employment is terminated for certain reasons, he would also be entitled to a lump sum severance payment equal to 1.5 times the sum of his annual base salary plus his current annual incentive target bonus for the full year in which the termination of employment occurred. Additionally, if Mr. Schilling’s employment is terminated for certain reasons within the six months preceding or the twelve months following a change of control of the Company, he would be entitled to a lump sum severance payment equal to two times the sum of his annual base salary plus the higher of (i) his current annual incentive target bonus for the full year in which the termination of employment occurred or (ii) the highest annual incentive bonus received by him for any of the last three completed fiscal years. In the event that within the six months preceding or the twelve months following a change of control of the Company, Mr. Schilling’s Employment Agreement is not renewed by the Company and a new employment agreement has not been entered into, Mr. Schilling will be entitled to the same severance benefits described above, subject to certain conditions. Basic also has entered into employment agreements with various other executive officers. Under these agreements, if the officer’s employment is terminated for certain reasons, he would be entitled to a lump sum severance payment equal to either 0.75 times to 1.5 times the sum of his annual base salary plus his current annual incentive target bonus for the full year in which the termination occurred. If employment is terminated for certain reasons within the six months preceding or the twelve months following the change of control of the Company, he would be entitled to a lump sum severance payment equal to either 1.0 or 2.0 times the sum of his annual base salary plus the higher of (i) his current incentive target bonus for the full year in which the termination of employment occurred or (ii) the highest annual incentive bonus received by him for any of the last three fiscal years. Self-Insured Risk Accruals |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses included in current liabilities on our Consolidated Balance Sheet are as follows (in thousands): December 31, 2019 2018 Employee compensation $ 17,527 $ 20,680 Retained losses on insurance obligations 9,801 6,566 Accrued interest 8,997 10,068 Property tax payable 4,672 1,617 Federal and state tax payable 2,375 — Short-term sales tax payable 2,114 2,336 Professional fees 1,260 1,638 Other 1,370 2,050 Total $ 48,116 $ 44,955 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock Basic had 80,000,000 shares of Basic’s common stock, par value $0.01 per share authorized, 27,912,059 shares issued and 24,904,485 shares outstanding at December 31, 2019. Treasury Stock Basic acquired treasury shares through net share settlements for payment of payroll taxes upon the vesting of restricted stock unit awards, forfeitures of restricted share awards, and through the publicly announced repurchase program. Basic issued and repurchased a net total of 2,692,116 and 160,026 common shares for the years ended December 31, 2019 and 2018 respectively. Preferred Stock At December 31, 2019, 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 | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Plan | Incentive Plan Management Incentive Plan On May 14, 2019, the stockholders of the Company approved the Basic Energy Services, Inc. 2019 Long Term Incentive Plan (the “LTIP”) to succeed the Basic Energy Services, Inc. Management Incentive Plan (the “MIP”). The LTIP became effective on May 14, 2019, and replaced the MIP. A total of 2,481,657 shares of the Company’s common stock are reserved for issuance pursuant to the LTIP. No further awards will be granted under the MIP. During the years ended December 31, 2019 and 2018, compensation expense related to share-based arrangements under the MIP and the LTIP, including restricted stock, restricted stock units and stock option awards, was approximately $8.7 million and $27.3 million respectively. For compensation expense recognized during the year ended December 31, 2019 and 2018, Basic did not recognize a tax benefit. At December 31, 2019, there was $3.1 million unrecognized compensation related to non-vested share-based compensation arrangements granted under the MIP and the LTIP. That cost is expected to be recognized over a weighted average period of 1.85 years. Expenses described below are for employee awards granted under the MIP or the LTIP, as applicable. Stock Option Awards Total expense related to stock options was approximately $1.9 million in 2019 and $4.2 million in 2018. Future expense for all options is expected to be approximately $0.1 million in the first quarter of 2020. Options granted under the MIP expire 10 years from the date they are granted, and generally vest over a period of three years. The following table reflects the summary of stock options outstanding at December 31, 2019: Number of Options Granted Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000's) Non-statutory stock options: Outstanding, beginning of period 595,736 39.23 Options granted — — Options forfeited (77,702) 39.30 Options exercised — — Options expired (211,528) 39.25 Outstanding, end of period 306,506 39.23 7.08 — Exercisable, end of period 256,867 38.71 7.07 — Vested or expected to vest, end of period 49,639 41.90 7.17 — Restricted Stock Unit Awards Time-based A summary of the status of Basic’s non-vested RSU grants at December 31, 2019 and changes during the year ended December 31, 2019 is presented in the following table: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Unit Non-vested at beginning of period 191,302 $ 16.58 Granted during period 653,160 2.53 Vested during period (73,976) 16.17 Forfeited during period (197,420) 5.43 Non-vested at end of period 573,066 $ 4.46 Valuation of time vesting restricted stock units for all periods presented is equal to the quoted market price for the shares on the date of the grant. The total fair value of time-vesting restricted stock units vested in fiscal 2019 and 2018 was $0.3 million and $1.4 million, respectively and is measured as the quoted market price of the Company’s common stock on the vesting date for the number of shares vested. Performance-based A summary of the status of Basic’s non-vested performance-based grants at December 31, 2019 and changes during the year ended December 31, 2019 is presented in the following table: Number of Performance Stock Units Weighted Average Grant Date Fair Value Per Unit Non-vested at beginning of period 682,985 $ 27.27 Granted during period — — Vested during period (218,541) 36.33 Forfeited during period (152,206) 28.13 Non-vested at end of period 312,238 $ 20.52 During fiscal 2018, the Company granted performance-based restricted stock units covering 284,625 shares of common stock having a fair value at the date of grant of $3.3 million, determined using a Monte Carlo simulation model. The performance-based restricted stock units vest subject to attainment of performance criteria established by the Compensation Committee and continuous employment through the vesting date. The 284,625 units may vest in a number of shares from zero to 150% of the award, based on the total shareholder return of Basic’s common stock compared to total shareholder return of a group of peer companies (“TSR”) established by the Compensation Committee for the period from January 1, 2018 to December 31, 2019. The grant will then vest in two The total fair value of performance-based restricted stock units vested in 2019 and 2018 was $1.0 million and $5.5 million, respectively and is measured as the quoted market price of the Company’s common stock on the vesting date for the number of shares vested. Restricted Stock Awards On May 15, 2019, the Board made grants of time-based restricted stock awards representing an aggregate 120,000 shares of common stock of the Company to non-employee members of the Board. These grants are subject to vesting fully on the first anniversary of the grant date and are subject to accelerated vesting under certain circumstances. In the second quarter of 2019, the Board also made grants of time-based restricted stock awards representing an aggregate 533,160 shares of common stock of the Company to certain members of management. These grants are subject to vesting over a three On May 21, 2018, the Board approved grants of restricted stock awards to non-employee members of the Board. The number of restricted shares granted was 48,400. These grants are subject to vesting over a period of ten The total fair value of restricted stock awards vested during the twelve months ended December 31, 2019, and 2018 was $33,000 and $77,000, respectively, and was measured as the quoted market price of the Company’s common stock on the vesting date for the number of shares vested. Phantom Stock Awards On March 21, 2019, the Compensation Committee of the Board approved grants of phantom restricted stock awards to certain key employees. Phantom shares are recorded as a liability at their current market value and are included in other current liabilities. The aggregate number of phantom shares issued on March 22, 2019, was 370,350. These grants remain subject to vesting annually in one-third increments over a three On May 15, 2019, the Compensation Committee of the Board made grants of phantom restricted stock to certain members of management. The aggregate number of phantom shares issued on May 15, 2019 to certain members of management was 524,160. These grants remain subject to vesting annually in one-third increments over a three On May 15, 2019, the Compensation Committee of the Board made grants of phantom restricted stock to non-employee members of the Board. The number of phantom shares issued on May 15, 2019 to non-employee members of the Board was 54,000. These grants remain subject to vesting fully on the first anniversary of the grant date, and are subject to accelerated vesting in certain circumstances. Total expense related to this grant for the year ended December 31, 2019, was approximately $31,000. In the second quarter of 2019, the Compensation Committee of the Board approved grants of phantom performance-based restricted stock to certain members of management. The performance-based phantom stock awards are tied to Basic’s achievement of total stockholder return (“TSR”) relative to the TSR of a peer group of energy services companies over the performance period. The number of phantom shares to be issued will range from 0% to 150% of the 1,069,320 target number of phantom shares. Any phantom shares earned at the end of the performance period will then remain subject to vesting in one-half increments on May 15, 2021, and 2022 (subject to accelerated vesting in certain circumstances). Phantom shares are recorded as a liability at fair value calculated using a Monte Carlo valuation and are included in other current liabilities. Total expense related to performance-based phantom stock for the year ended December 31, 2019, was approximately $0.2 million. On February 8, 2018, the Compensation Committee approved grants of phantom restricted stock awards to certain key employees. Phantom shares are recorded as a liability at their current market value and are included in other current liabilities. The number of phantom shares issued on February 8, 2018 was 82,350. These grants remain subject to vesting annually in one-third increments over a three Warrant Agreement On December 23, 2016, the Company entered into a warrant agreement (the “Warrant Agreement”) with American Stock Transfer & Trust Company, LLC, as warrant agent. The Company issued warrants (the “Warrants,” and holders thereof “Warrantholders”), which in the aggregate, are exercisable to purchase up to approximately 2,066,627 shares of common stock. As of December 31, 2019 there were 2,066,576 warrants outstanding, exercisable until December 23, 2023, to purchase at an initial exercise price of $55.25 per share, subject to adjustment as provided in the Warrant Agreement. At issuance, the warrants were recorded at fair value, which was determined using the Black-Scholes option pricing model. The warrants are equity classified and, at issuance, were recorded as an increase to additional paid-in capital in the amount of $8.4 million. All unexercised Warrants will expire, and the rights of the Warrantholder to purchase common stock will terminate on December 23, 2023. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic loss per common share are determined by dividing net loss applicable to common stock by the weighted average number of common shares actually outstanding during the year. Diluted loss 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 basic and diluted loss per share (in thousands, except share data): Year ended December 31, 2019 2018 Numerator (both basic and diluted): Loss from continuing operations $ (91,401) $ (116,736) Loss from discontinued operations, net of tax (90,497) (27,861) Net loss available to common stockholders $ (181,898) $ (144,597) Denominator: Denominator for basic and diluted earnings per share 26,141,414 26,467,417 Basic and diluted loss per common share from continuing operations: $ (3.50) $ (4.41) Basic and diluted loss per common share from discontinued operations: (3.46) (1.05) Basic and diluted loss per common share available to stockholders: $ (6.96) $ (5.46) The Company has issued potentially dilutive instruments such as unvested restricted stock and common stock options. However, the Company did not include these instruments in its calculation of diluted loss per share during the periods presented, because to include them would be anti-dilutive. The following shows potentially dilutive instruments: Year ended December 31, 2019 2018 Warrants 2,066,576 2,066,576 Unvested restricted stock units 373,754 29,806 Stock options 306,506 595,736 Total 2,746,836 2,692,118 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Basic’s reportable business segments are Well Servicing, Water Logistics, and Completion & Remedial Services. These segments have been selected based on changes in management’s resource allocation and performance assessment in making decisions regarding the Company. Prior to December 2019, the Company operated an Other Services segment, which was comprised of contract drilling services and manufacturing and rig servicing. Contract drilling was discontinued as a service in the third quarter of 2019, and manufacturing rig servicing was realigned with Well Servicing. Our Pumping Services Division, which was included in the Completion & Remedial Services segment was discontinued in the fourth quarter of 2019. The following is a description of our business segments included in continuing operations: Well Servicing: This 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. Basic’s well servicing equipment and capabilities also facilitate most other services performed on a well. This segment also includes the manufacture and servicing of mobile well servicing rigs. Water Logistics: This segment utilizes a fleet of trucks and related assets, including specialized tank trucks, storage tanks, water wells, disposal facilities water treatment and related equipment. Basic employs these assets to provide, transport, store and dispose of a variety of fluids. These services are required in most workover, completion and remedial projects as well as part of daily producing well operations. Also included in this segment are our construction services which provide services for the construction and maintenance of oil and natural gas production infrastructures. Completion & Remedial Services: This segment utilizes coiled tubing services, air compressor packages specially configured for underbalanced drilling operations, an array of specialized rental equipment and fishing tools, thru-tubing and snubbing units. 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): Well Servicing Water Logistics Completion & Remedial Services Corporate and Other Continuing Operations Total Discontinued Operations Year ended December 31, 2019 Operating revenues $ 226,966 $ 199,816 $ 140,468 $ — $ 567,250 $ 142,885 Direct operating costs (186,782) (141,379) (98,654) — (426,815) (134,778) Segment profits 40,184 58,437 41,814 — 140,435 8,107 Depreciation and amortization 18,766 26,143 19,964 4,616 69,489 45,168 Capital expenditures 14,525 26,209 7,033 654 48,421 12,067 Identifiable assets $ 78,686 $ 118,960 $ 42,560 $ 256,044 $ 496,250 $ 54,224 Year ended December 31, 2018 Operating revenues $ 250,982 $ 231,283 $ 171,300 $ — $ 653,565 $ 311,154 Direct operating costs (203,785) (166,907) (109,713) — (480,405) (266,011) Segment profits 47,197 64,376 61,587 — 173,160 45,143 Depreciation and amortization 18,470 25,250 27,903 6,550 78,173 48,244 Capital expenditures 22,212 24,737 10,128 1,396 58,473 29,970 Identifiable assets $ 89,813 $ 98,717 $ 125,123 $ 293,506 $ 607,159 $ 154,618 The following table reconciles the segment profits reported above to the operating income as reported in the consolidated statements of operations (in thousands): Year ended December 31, 2019 2018 Segment profits $ 140,435 $ 173,160 General and administrative expenses (118,460) (145,725) Depreciation and amortization (69,489) (78,173) Gain (Loss) on disposal of assets (2,135) 4,918 Operating loss $ (49,649) $ (45,820) |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Our revenues are generated by services, which are consumed as provided by our customers on their sites. As a decentralized organization, contracts for our services are negotiated on a regional level and are on a per job basis, with jobs being completed in a short period of time, usually one day or up to a week. Revenue is recognized as performance obligations have been completed on a daily basis either as Accounts Receivable or Work-in-Process ("WIP"), when all of the proper approvals are obtained. As of December 31, 2019, accounts receivable related to products and services were $99.6 million. At December 31, 2019, the Company had $1.0 million of contract assets and $0.9 million of contract liabilities on our consolidated balance sheet. At December 31, 2018, the Company had $1.1 million of contract assets and $0.9 million contract liabilities recorded on our consolidated balance sheet. Basic does not have any long-term service contracts; nor do we have revenue expected to be recognized in any future year related to remaining performance obligations or contracts with variable consideration related to undelivered performance obligations. The following table summarizes our disaggregated revenues by geographical markets and major service lines for the years ended December 31, 2019, and 2018 (in thousands): Well Servicing Water Logistics Completion & Remedial Services Discontinued Operations Total Twelve Months Ended December 31, 2019 Primary Geographical Markets Permian Basin $ 115,803 $ 106,306 $ 62,919 $ 23,697 $ 308,725 ArkLaTex & Mid-Continent 49,122 43,915 14,466 108,396 215,899 Rocky Mountain 24,069 22,310 69,526 3,507 119,412 Texas Gulf Coast 28,308 38,068 — 7,285 73,661 West Coast 21,727 — — — 21,727 Corporate (Intercompany) (12,063) (10,783) (6,443) — (29,289) Total $ 226,966 $ 199,816 $ 140,468 $ 142,885 $ 710,135 Major Service Lines Well Servicing $ 187,693 — — — $ 187,693 Plugging 26,050 — — — 26,050 Transport/Vacuum — 122,008 — — 122,008 Production and Disposal Facilities — 20,519 — — 20,519 Hot Oiler — 20,709 — — 20,709 RAFT — — 73,978 — 73,978 Coiled Tubing — — 54,428 — 54,428 Snubbing — — 3,709 — 3,709 Taylor Industries - Manufacturing (Intercompany) 3,931 — — — 3,931 Discontinued Operations — — — 142,885 142,885 Other 9,292 36,580 8,353 — 54,225 Total $ 226,966 $ 199,816 $ 140,468 $ 142,885 $ 710,135 Well Servicing Water Logistics Completion & Remedial Services Discontinued Operations Total Twelve Months Ended December 31, 2018 Primary Geographical Markets Permian Basin $ 118,631 $ 125,528 $ 77,419 $ 72,832 $ 394,410 Texas Gulf Coast 28,313 35,074 1,030 13,660 78,077 ArkLaTex & Mid-Continent 52,511 44,492 26,641 208,353 331,997 West Coast 30,342 — — — 30,342 Rocky Mountain 27,067 31,908 84,291 16,310 159,576 Eastern USA 5,560 — 3,609 — 9,169 Corporate (Intercompany) (11,442) (5,719) (21,690) — (38,851) Total $ 250,982 $ 231,283 $ 171,300 $ 311,155 $ 964,720 Major Service Lines Well Servicing $ 208,307 $ — $ — $ — $ 208,307 Plugging 25,165 — — — 25,165 Transport/Vacuum — 142,222 — — 142,222 Production and Disposal Facilities — 24,204 — — 24,204 Hot Oiler — 20,613 — — 20,613 RAFT — — 88,527 — 88,527 Coiled Tubing — — 68,935 — 68,935 Snubbing — — 10,972 — 10,972 Taylor Industries - Manufacturing (Intercompany) 7,660 — — — 7,660 Discontinued Operations — — — 311,155 311,155 Other 9,850 44,244 2,866 — 56,960 Total $ 250,982 $ 231,283 $ 171,300 $ 311,155 $ 964,720 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Reform Act was signed into law. The legislation significantly changes U.S. tax law by, among other things, lowering the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. Income tax expense consists of the following (in thousands): Year ended December 31, 2019 2018 Current: Federal $ (1,900) $ — State 1,921 305 Total $ 21 $ 305 Deferred: Federal $ — $ (74) State — (4) Total — (78) Total income tax expense $ 21 $ 227 Basic paid no federal income taxes during the years 2019 and 2018. B asic received a federal income tax refund of $2.8 million as of the year ended December 31, 2019 as a result of a tax year 2017 election to monetize the remaining alternative minimum tax credit carryforward in lieu of accelerated tax depreciation, and as a result of amending our 2007 federal tax return under section 172(f) of the Internal Revenue Code of 186, which allowed us to carry-back and recover workers' compensation expenses in the years we had "NOL" for 10 years. Reconciliation between the amount determined by applying the U.S. Federal corporate rate of 21% to income before income taxes (benefit) for the years ended December 31, 2019 and 2018 is as follows (in thousands) : Year ended December 31, 2019 2018 Income tax benefit at federal statutory rate $ (19,190) $ (30,318) Meals and entertainment 674 707 State taxes, net of federal benefit 580 (2,250) Changes in Valuation Allowance 15,824 28,167 Equity Compensation Shortfall 2,601 2,644 Tax Basis Adjustments — 41 Change in Estimates & Other (468) 1,236 Total $ 21 $ 227 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands): Year ended December 31, 2019 2018 Deferred tax assets: Operating loss carryforward $ 205,367 $ 178,657 Goodwill and intangibles 19,350 23,088 Interest Expense Limitation 16,721 10,722 Accrued liabilities 11,139 11,804 Operating Lease - Lease Liability 3,299 — Deferred compensation 2,889 4,028 Asset retirement obligation 2,344 589 Inventory 972 265 Deferred Debt Costs 902 1,680 Receivables allowance 500 418 Valuation Allowances (210,808) (174,497) Total deferred tax assets $ 52,675 $ 56,754 Deferred tax liabilities: Property and equipment $ (48,980) $ (55,901) Operating Lease - ROU Asset (3,299) — Prepaid expenses (396) (853) Total deferred tax liabilities $ (52,675) $ (56,754) Net deferred tax liability $ — $ — IRC Sections 382 and 383 provide an annual limitation with respect to the ability of a corporation to utilize its tax attributes against future U.S. taxable income in the event of a change in ownership. We believe Basic's emergence from Chapter 11 bankruptcy proceedings is considered a change in ownership for purposes of IRC Section 382. The limitation under the IRC is based on the value of the corporation as of the emergence date. The ownership changes, and resulting annual limitation, is not expected to result in the expiration of any net operating losses generated prior to the emergence date. Basic provides a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on this evaluation, as of December 31, 2019, a valuation allowance of approximately $210.8 million has been recorded on the net deferred tax assets for all federal and state tax jurisdictions in order to measure only the portion of the deferred tax asset that more likely than not will be realized. As of December 31, 2018, a valuation allowance of $174.5 million was recorded against the net deferred tax assets not expected to be realized. Interest is recorded in interest expense and penalties are recorded in income tax expense. Basic had no interest or penalties related to an uncertain tax positions during 2019. Basic files federal income tax returns and state income tax returns in Texas and other state tax jurisdictions. As of December 31, 2019, Basic had approximately $900.7 million of net operating loss carryforwards ("NOL"), for federal income tax purposes, which begin to expire in 2032 and $341.4 million of net operating loss carryforwards for state income tax purposes which begin to expire in 2020. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table summarizes results for each of the four quarters in the years ended December 31, 2019, and 2018 (in thousands, except earnings per share data): First Quarter Second Quarter Third Quarter Fourth Quarter Year Year ended December 31, 2019: Total revenues $ 153,190 $ 147,975 $ 144,163 $ 121,922 $ 567,250 Segment profits 42,067 38,915 35,584 23,869 140,435 Net loss on continuing operations (14,786) (19,315) (24,778) (32,522) (91,401) Net loss on discontinued operations $ (12,690) $ (8,462) $ (14,100) $ (55,245) $ (90,497) Loss per share of common stock (a): Continuing operations, basic and diluted $ (0.55) $ (0.71) $ (0.97) $ (1.30) $ (3.50) Discontinued operations, basic and diluted $ (0.47) $ (0.31) $ (0.55) $ (2.22) $ (3.46) Weighted average common shares outstanding: Basic 26,850 27,204 25,606 24,924 26,141 Diluted 26,850 27,204 25,606 24,924 26,141 Year ended December 31, 2018: Total revenues $ 158,997 $ 165,558 $ 171,144 $ 157,866 $ 653,565 Segment profits 42,948 45,245 44,716 40,251 173,160 Net loss on continuing operations (23,650) (30,990) (20,354) (41,742) (116,736) Net loss on discontinued operations $ (6,881) $ (9,064) $ (6,981) $ (4,935) $ (27,861) Loss per share of common stock (a): Continuing operations, basic and diluted $ (0.89) $ (1.18) $ (0.77) $ (1.57) $ (4.41) Discontinued operations, basic and diluted $ (0.26) $ (0.34) $ (0.26) $ (0.19) $ (1.05) Weighted average common shares outstanding: Basic 26,336 26,444 26,510 26,570 26,467 Diluted 26,336 26,444 26,510 26,570 26,467 (a) The sum of individual quarterly net loss per share may not agree to the total for the year due to each period's computation being based on the weighted average number of common shares outstanding during such period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 9, 2020, the Company entered into a Purchase Agreement (the “Purchase Agreement”) with Ascribe Investments III LLC, a Delaware limited liability company (“Ascribe”), NexTier Holding Co., a Delaware corporation (“Seller”) and C&J Well Services, Inc., a Delaware corporation, and wholly owned subsidiary of Seller (“CJWS”). Pursuant to the Purchase Agreement, among other things, (i) Seller transferred and delivered to the Company and the Company purchased and acquired from Seller, all of the issued and outstanding shares of capital stock of CJWS held by Seller (the “Stock Purchase”), such that CJWS became a wholly-owned subsidiary of the Company; (ii) as a portion of the consideration for the Stock Purchase, Ascribe, on behalf of the Company, conveyed to Seller certain 10.75% senior secured notes due October 2023 issued by the Company to Ascribe in an aggregate amount equal to $34.4 million (the “Ascribe Senior Notes”); (iii) Ascribe entered into an Exchange Agreement, dated March 9, 2020, with the Company (the “Exchange Agreement”) pursuant to which, among other things, Ascribe exchanged the Ascribe Senior Notes for (a) 118,805 shares of newly issued common stock equivalent preferred stock, designated as “Series A Participating Preferred Stock,” par value $0.01 per share, of the Company (the “Series A Preferred Stock”) and (b) an amount in cash approximately equal to $1.5 million (the “Exchange Transaction” and, together with the Stock Purchase and the other transactions contemplated by the Purchase Agreement, the “C&J Transaction”), and (iv) the Company agreed to hire Jack Renshaw as a Senior Vice President, Western Region, upon consummation of the C&J Transaction. The Purchase Agreement Pursuant to the Purchase Agreement, Seller received consideration in the aggregate amount of $93.7 million comprised of (a) cash consideration equal to $59.4 million (subject to customary reductions for indebtedness and transaction expenses, as well as post-closing working capital adjustments) and (b) the Ascribe Senior Notes transferred to Seller by Ascribe (on behalf of the Company) as described above. In connection with the Transaction, pursuant to the Purchase Agreement, Ascribe has certain contingent obligations to the Seller to make Seller whole on the par value of the Ascribe Senior Notes as of the earlier of the first anniversary of the closing of the Stock Purchase, a bankruptcy of the Company or a change of control of the Company (the “Make-Whole Payment”). The Exchange Agreement Pursuant to the Exchange Agreement, as partial consideration for the Exchange Transaction, the Company issued to Ascribe 118,805 shares of newly issued Series A Preferred Stock of the Company, which constitutes 85.06% of the equity interest in the Company. Upon consummation of the Exchange Transaction, the Company’s public shareholders owned approximately 14.94% of the equity interests in the Company. The Company has issued and outstanding $300 million principal amount of the 10.75% Senior Secured Notes due 2023 (the “Notes”), issued pursuant to that certain Indenture, dated as of October 2, 2018 (the “Base Indenture”) by and among the Company, the guarantors party thereto and UMB Bank, National Association, as trustee and collateral agent (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of August 22, 2019, by and among the Company, the guarantors party thereto and the Trustee (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Under the Exchange Agreement, as partial consideration for the Exchange Transaction, the Company paid to Ascribe an amount in cash equal to, $1.5 million, representing the accrued (but unpaid) interest, from and including the most recent date to which interest has been paid pursuant to the terms of the Notes and the Indenture but excluding the date of the closing of the C&J Transaction, on the aggregate principal amount of the Ascribe Senior Notes. If Ascribe is required to pay the Make-Whole Payment to Seller pursuant to the Purchase Agreement, the Company will be required to reimburse to Ascribe the amount of such Make-Whole Payment (such amount, the “Make-Whole Reimbursement Amount”) either (i) in cash (a) to the extent the Company has available cash (as determined by an independent committee of the Company’s board of directors) and (b) subject to satisfaction of certain “Payment Conditions” set forth in the Credit Agreement (as defined below) or (ii) if the Company is unable to pay the full Make-Whole Reimbursement Amount in cash pursuant to clause “(i)” of this paragraph, in additional Notes as permitted under the Indenture. In consideration of providing the Make-Whole Payment to Seller, the Company paid Ascribe $1 million in cash at the closing of the C&J Transaction. Stockholders Agreement & Governance In connection with the Exchange Agreement, the Company and Ascribe entered into a Stockholders Agreement. As contemplated by the Stockholders Agreement, simultaneously with the closing of the transactions contemplated by the Exchange Agreement, the board of directors was reconstituted from six directors to seven directors, comprised of (i) three Class I directors with terms to expire in 2020 (the “Class I Directors”), (ii) two Class II directors with terms to expire in 2021 (the “Class II Directors”) and (iii) two Class III directors with terms to expire in 2022 (the “Class III Directors”). Additionally, effective as of the closing of the C&J Transaction, each of Messrs. Timothy H. Day and Samuel E. Langford resigned from the Board and (a) Lawrence First was appointed as a Class I Director, (c) Derek Jeong was appointed as a Class II Director and (b) Ross Solomon was appointed as a Class III Director. Pursuant to the terms of the Stockholders Agreement, following the closing of the C&J Transaction and until the Board Rights Termination Date (as defined below), Ascribe is entitled to designate for nomination for election to the board of directors all members of the board of directors, provided that such designations must be made in a manner to ensure that at all times the board of directors is comprised of at least two independent directors. The subsidiaries require approval of a special committee of the board of directors comprised solely of at least two independent directors. The “Board Rights Termination Date” means the earlier to occur of (A) the date on which Ascribe Affiliated Entities (as defined below), collectively, no longer beneficially own 25% of the fully-diluted common equity of the Company (including the Series A Preferred Stock) and (B) the date on which Ascribe and its affiliates, collectively, no longer constitute the largest holder of fully-diluted common equity of the Company (including the Series A Preferred Stock). The “Ascribe Affiliated Entities” will be comprised of (x) Ascribe and each investment fund which Ascribe or its affiliates controls or for which Ascribe or its affiliates act as a manager or investment advisor and (y) each other person (including portfolio companies) in which person(s) described in clause (x) of this sentence holds a majority of the outstanding equity or voting securities. The Senior Secured Promissory Note Pursuant to the Exchange Agreement, the Company issued a Senior Secured Promissory Note on March 9, 2020 in favor of Ascribe in an aggregate principal amount equal to $15 million (the “Senior Secured Promissory Note”). The Senior Secured Promissory Note is secured by a lien upon certain of the Company’s existing and after-acquired property which are also secured by the Company’s existing senior secured notes. The proceeds of the Senior Secured Promissory Note were used to finance a portion of the purchase price consideration paid in connection with the Stock Purchase. The Limited Consent and First Amendment to ABL Agreement The Company is party to that certain ABL Credit Agreement, dated October 2, 2018 (as amended, restated, amended and restated, supplemented or modified from time to time, the “Credit Agreement”), with the guarantors party thereto, the financial institutions party thereto and Bank of America, N.A., a national banking association (“Bank of America”), as administrative agent. In connection with the C&J Transaction, on March 9, 2020, the Company entered into that certain Limited Consent and First Amendment to ABL Credit Agreement by and among the Company, as borrower, the guarantors party thereto, the financial institutions party thereto and Bank of America, as administrative agent (the “ABL Amendment”), pursuant to which, among other things, the Company reduced the Aggregate Commitments (as defined in the Credit Agreement) from $150 million to $120 million. Net Operating Losses The C&J Transaction resulted in an ownership change under section 382 of the Internal Revenue Code and will limit the Company’s usage of certain of its net operating losses, realized built in losses if applicable and interest expense disallowance carryforwards in the future. Economic Developments On March 9, 2020, as a result of multiple significant factors impacting supply and demand in the global oil and natural gas markets, including a global outbreak of corona virus, the announced price reductions and possible production increases by members of Organization of the Petroleum Exporting Countries and other oil exporting nations, the posted price for West Texas Intermediate oil declined sharply and may continue to decline. Oil and natural gas commodity prices are expected to continue to be volatile. We cannot predict the duration or effects of this sudden decrease, but if the prices of oil and natural gas continues to decline or remain depressed for a lengthy period, our business, financial condition, results of operations, cash flows, and prospects may be materially and adversely affected. As a result of continued weak energy sector conditions and lower demand for our products and services, our operational results, working capital and cash flows have been negatively impacted. Based on our current operating and commodity price forecasts and capital structure, we believe that if certain financial ratios or covenants were to come into effect under our debt instruments, we may have difficulty complying with certain of such obligations. Certain covenants, such as consolidated fixed charge coverage ratio and cash dominion provisions in the ABL Facility spring into effect under certain triggers defined in the ABL Facility for so long as such applicable trigger period is in effect. Additionally, certain triggers in the ABL Facility increase certain financial and borrowing base reporting for so long as such applicable trigger period is in effect. Failure to comply, for example, with a “springing” consolidated fixed charge coverage ratio requirement under the ABL Facility would result in an event of default under the ABL Facility, which would result in a cross-default under the Senior Notes. If an event of default were to occur, our lenders could, in addition to other remedies such as charging default interest, accelerate the maturity of the outstanding indebtedness, making it immediately due and payable, and we may not have sufficient liquidity to repay those amounts. Management has plans to generate additional liquidity, including through our proposed strategic acquisitions and divestitures and reducing costs in our continuing business operations. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. This assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Basic, for which we hold a majority voting interest. All intercompany transactions and balances have been eliminated. |
Other Reclassifications | Other Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. A majority of the reclassifications were related to the discontinued operations. These reclassifications do not impact net income (loss) and do not reflect a material change to the information previously presented in our consolidated financial statements. |
Estimates, Risks and Uncertainties | Estimates, Risks 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 disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from those estimates. Areas where critical accounting estimates are made by management include litigation and self-insured risk reserves. |
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 and its past experience with similar claims. Basic maintains accruals in the consolidated balance sheets to cover self-insurance retentions. Please see Note 9. Commitments and Contingencies for further discussion. |
Revenue Recognition | Revenue Recognition Basic accounts for revenues under Accounting Standards Codification (ASC) Topic - 606 - Revenue from Contracts with Customers, the core principle of which is that a company should recognize revenue to match the delivery of goods or services to customers to the consideration the company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of revenue and cash flows arising from contracts with customers. We adopted the standard effective January 1, 2018, using the modified retrospective method. Other than additional required disclosures, adoption of the new standard did not have a significant impact on our consolidated financial statements. |
Inventories | Inventories For rental and fishing tools, inventories consisting mainly of grapples, controls and drill bits are stated at lower of cost or net realizable value. 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 lower of cost or net realizable value, with cost being determined on the first-in, first-out (“FIFO”) method. |
Accounts Receivable | Accounts Receivable Basic estimates its allowance for losses on accounts receivable based on past collections and expectations for future collections. Basic regularly reviews accounts for collectability. After all collection efforts are exhausted, if the balance is still determined to be uncollectable, the balance is written off. Expense related to the write off of uncollected accounts is recorded in general and administrative expense. |
Concentrations of Credit Risk | Concentrations of Credit RiskFinancial 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. It 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. |
Leases | Leases Basic determines if an arrangement is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we classify that lease as an operating lease or a finance lease. We capitalize operating leases on our consolidated balance sheets through a right-of-use (“ROU”) asset and a corresponding lease liability. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating leases are included in operating lease ROU assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Basic adopted this standard on January 1, 2019. |
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 or remeasured as a result of fresh start accounting. 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 and the estimated useful lives of the assets are as follows: Asset Type: Useful Life Buildings and improvements 20-30 years Well service units and equipment 3-15 years Fluid services equipment 5-10 years Brine and fresh water stations 15 years Fracturing/test tanks 10 years Disposal facilities 10-15 years Vehicles 3-7 years Rental equipment 2-15 years Software and computers 3 years 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 ranges 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 | ImpairmentsWe perform a review of our asset groups for impairment when, in management’s judgment, events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recovered over its remaining service life. Impairment is indicated when the sum of the estimated future cash flows, on an undiscounted basis, is less than the asset groups carrying amount. When impairment is identified and fair value is less than carrying value, an impairment charge is recorded to income based on an estimated fair value generally determined based on an estimate of future cash flows on a discounted basis. |
Intangible Assets | Developed technology are amortized over a 5-year life. Trade names are amortized over a 15-year life. |
Debt Issuance Costs | Debt Issuance CostsBasic capitalizes certain third-party fees directly related to the issuance of debt and amortizes these costs over the life of the debt using the effective interest method. Debt issuance costs related to our ABL Facility are presented net of amortization as a non-current asset. Debt issuance costs related to our Senior Secured Notes and Term Loan are presented net of amortization as an offset to the liability. |
Stock-Based Compensation | Stock-Based Compensation Basic has historically compensated our directors, executives and employees using a combination of performance and time-based stock option, restricted share, and restricted share unit awards. Basic accounts for share-based payment awards under Accounting Codification Standard 718 - Compensation - Stock Compensation |
Asset Retirement Obligations | Asset Retirement Obligations Basic is required to record 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 capitalize 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. Basic has asset retirement obligations related to our saltwater disposal facilities, brine and freshwater wells. |
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, chemical 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. |
Income Taxes | Income Taxes The provision for income taxes is determined using the asset and liability method of accounting for income taxes based on the authoritative accounting guidance. Deferred tax assets and liabilities are recorded based upon differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We record net deferred tax assets to the extent we believe these assets will more likely than not be |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was adopted effective January 1, 2019. See Note 6. Leases for further discussion. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, "Financial Instruments–Credit Losses," and subsequent amendment to the initial guidance, ASU 2018-19 (collectively, Topic 326). ASU 2016-13 amends current measurement techniques used to estimate credit losses for financial assets. The amendments in ASU 2016-13 are effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Basic adopted this standard on January 1, 2020, and the adoption did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. " ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. The effective date of this pronouncement is for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The standard can be adopted either using the prospective or retrospective transition approach. Basic adopted this standard on September 30, 2019, and the adoption did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The amendments of the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Basic is currently evaluating the impact of this pronouncement on its consolidated financial statements. |
Fair Value of Financial Instruments | 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. The Company 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. 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). The Company 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 the Company 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. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities approximate fair value due to the short maturities of these instruments. The carrying amount of our Credit Facility in Long-term debt also approximates fair value due to its variable-rate characteristics. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Operating Results of Discontinued Operations | Assets and liabilities related to the divested operations have been reclassified in the Consolidated Balance Sheet for the years ended December 31, 2019, and 2018 are detailed in the table below (in thousands): December 31, 2019 December 31, 2018 Assets-held-for-sale Inventories $ 2,069 $ 6,498 Prepaid Expenses — 8,489 Right of use assets 1,659 — Property, plant and equipment, net 50,496 — Total assets-held-for-sale discontinued operations $ 54,224 $ 14,987 Assets-held-for-sale-future-use Property, plant and equipment, net $ — $ 139,631 Liabilities related to Assets-held-for-sale Right of use liabilities 1,659 — Capital leases 3,589 10,983 Total Liabilities related to Assets-held-for-sale discontinued operations $ 5,248 $ 10,983 The operating results of the divested pressure pumping operations and contract drilling operations, which have historically been included in the Completions & Remedial Services and Other Services segments, have been reclassified as discontinued operations in the Consolidated Statement of Operations for the years ended December 31, 2019, and 2018, as detailed in the table below: Consolidated Statement of Operations (Dollars in thousands, except per share amounts) December 31, 2019 December 31, 2018 Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Revenues: Well Servicing $ 226,966 $ — $ 226,966 $ 250,982 $ 9 $ 250,991 Water Logistics 199,816 — 199,816 231,283 — 231,283 Completion & Remedial Services 140,468 134,474 274,942 171,300 298,156 469,456 Other Services — 8,411 8,411 — 12,990 12,990 Total revenues 567,250 142,885 710,135 653,565 311,155 964,720 Expenses: Well Servicing 186,782 (92) 186,690 203,785 (200) 203,585 Water Logistics 141,379 — 141,379 166,907 19 166,926 Completion & Remedial Services 98,654 127,950 226,604 109,713 256,062 365,775 Other Services — 6,920 6,920 — 10,130 10,130 General and administrative 118,460 15,208 133,668 145,725 21,790 167,515 Depreciation and amortization 69,489 45,168 114,657 78,173 48,244 126,417 Asset impairment — 35,801 35,801 — — — Loss (gain) on disposal of assets 2,135 1,878 4,013 (4,918) 2,320 (2,598) Total expenses 616,899 232,833 849,732 699,385 338,365 1,037,750 Operating loss (49,649) (89,948) (139,597) (45,820) (27,210) (73,030) Other income (expense): Loss on extinguishment of debt — — — (26,429) — (26,429) Interest expense (42,887) (583) (43,470) (45,161) (692) (45,853) Interest income 509 — 509 364 — 364 Other income 647 34 681 537 41 578 Loss before income taxes (91,380) (90,497) (181,877) (116,509) (27,861) (144,370) Income tax expense (21) — (21) (227) — (227) Loss from operations $ (91,401) $ (90,497) $ (181,898) $ (116,736) $ (27,861) $ (144,597) Net loss per share of common stock, basic and diluted $ (3.50) $ (3.46) $ (6.96) $ (4.41) $ (1.05) $ (5.46) Interest expense in discontinued operations related to interest expense on capital lease assets that operated in the discontinued Completions & Remedial Services and Other Services segments. Applicable Consolidated Statements of Cash Flow information related to the divested operations for the years ended December 31, 2019 and 2018 are detailed in the table below (in thousands): December 31, 2019 December 31, 2018 Cash Flows from Discontinued Operations Net cash provided (used) by operating activities $ 2,120 $ 37,691 Net cash provided (used) in investing activities $ 133 $ (23,074) Reconciling items for cash flows: December 31, 2019 Continuing operations Discontinued operations Cash flows Operating activities : Inventory and other write-downs $ 5,266 $ 5,341 $ 10,607 Loss on disposal of assets $ 2,135 $ 1,878 $ 4,013 Investing activities: Purchase of Property plant and equipment $ (44,794) $ (10,559) $ (55,353) Proceeds from sales of assets $ 6,605 $ 10,692 $ 17,297 Reconciling items for cash flows: December 31, 2018 Continuing operations Discontinued operations Cash flows Operating activities : (Gain) Loss on disposal of assets $ (4,918) $ 2,320 $ (2,598) Investing activities: Purchase of Property plant and equipment $ (43,063) $ (25,646) $ (68,709) Proceeds from sales of assets $ 15,213 $ 2,572 $ 17,785 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of the Assets | All property and equipment are depreciated or amortized (to the extent of estimated salvage values) on the straight-line method and the estimated useful lives of the assets are as follows: Asset Type: Useful Life Buildings and improvements 20-30 years Well service units and equipment 3-15 years Fluid services equipment 5-10 years Brine and fresh water stations 15 years Fracturing/test tanks 10 years Disposal facilities 10-15 years Vehicles 3-7 years Rental equipment 2-15 years Software and computers 3 years |
Amortizable Intangible Assets | Basic’s intangible assets subject to amortization were as follows (in thousands): December 31, 2019 2018 Trade names $ 3,230 $ 3,410 Other intangible assets 48 48 Sub-total 3,278 3,458 Less accumulated amortization 675 474 Intangible assets subject to amortization, net $ 2,603 $ 2,984 |
Schedule of Amortization Expense | Amortization expense for the next five succeeding years is expected to be as follows (in thousands): Amortization Expense 2020 $ 225 2021 225 2022 215 2023 215 2024 215 Thereafter 1,508 Total $ 2,603 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property and Equipment | The following table summarizes the components of property and equipment for the years ended December 31, 2019, and 2018. Prior year amounts are adjusted for the discontinued pumping services and contract drilling operations (in thousands): December 31, Property and Equipment: 2019 2018 Land $ 15,682 $ 14,601 Buildings and improvements 30,902 30,108 Well service units and equipment 130,318 122,236 Disposal facilities 87,763 63,229 Fluid services equipment 79,024 78,501 Rental equipment 60,886 48,319 Pumping equipment 47,083 49,265 Light vehicles 26,630 23,063 Fracturing/test tanks 6,153 6,001 Brine and fresh water stations 4,340 3,295 Other 3,948 3,984 Software 896 857 Sub-total 493,625 443,459 Less accumulated depreciation and amortization (196,512) (134,289) Property and equipment, net $ 297,113 $ 309,170 |
Schedule of Property and Equipment Under Capital Lease | The table below summarizes the gross amount of property and equipment and related accumulated amortization recorded under capital leases and included above (in thousands): December 31, Property and Equipment: 2019 2018 Fluid services equipment $ 34,499 $ 35,034 Light vehicles 19,563 15,631 Pumping equipment 16,576 16,920 Rental equipment 1,130 — Sub-total 71,768 67,585 Less accumulated amortization (27,727) (16,634) Property and equipment, net $ 44,041 $ 50,951 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Activity in Asset Retirement Obligations | The following table presents activity in our ARO (in thousands): 2019 2018 Balance as of January 1, 2019 $ 2,587 $ 2,507 Additions 281 16 Revision in estimate 7,205 — Disposals (124) (148) Expenditures (671) — Accretion of discount 1,051 212 Balance as of December 31, 2019 $ 10,329 $ 2,587 |
Schedule of Contractual Obligation Maturity | The following table outlines our contractual obligations as of December 31, 2019 (in thousands): Retirement obligation 2020 $ 1,285 2021 172 2022 146 2023 341 Thereafter 8,385 Total asset retirement obligations $ 10,329 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Information | The following table summarizes the components of the Company's lease expense recognized for the twelve months ended December 31, 2019, excluding variable lease and prepaid rent costs (in thousands): December 31, 2019 Operating lease expense: Short-term operating lease $ 5,691 Long-term operating lease 8,681 Total operating lease expense $ 14,372 Finance lease expense: Amortization of right-of-use assets $ 19,171 Interest on lease liabilities 5,005 Total finance lease expense $ 24,176 Supplemental information related to leases was as follows: December 31, 2019 Operating leases Weighted average remaining lease term 3.1 years Weighted average discount rate 14.8% Finance leases Weighted average remaining lease term 2.1 years Weighted average discount rate 8.2% Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 14,372 Operating cash outflows from finance leases 5,005 Financing cash outflows from finance leases 29,364 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,477 Finance leases 7,941 Supplemental balance sheet information related to leases was as follows as of December 31, 2019, and December 31, 2018 (in thousands): December 31, 2019 December 31, 2018 Right-of-Use Assets under Operating Leases Operating lease right-of-use assets $ 14,540 $ 20,819 Operating lease right-of-use liabilities, current portion 4,906 5,649 Operating lease right-of-use liabilities, long-term portion 9,634 15,170 Total operating lease liabilities $ 14,540 $ 20,819 Right-of-Use Assets under Finance Leases Property and equipment, at cost $ 71,768 $ 67,585 Less accumulated depreciation (27,727) (16,634) Property and equipment, net $ 44,041 $ 50,951 Current portion of finance leases $ 18,738 $ 20,061 Long-term finance leases 17,160 29,865 Total finance lease liabilities $ 35,898 $ 49,926 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Schedule of Future Minimum Rental Payments for Capital Leases | Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Maturities of Finance Lease Liabilities | Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Maturities of Operating Lease Liabilities | Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following (in thousands): December 31, 2019 2018 10.75% Senior Notes due 2023 $ 300,000 $ 300,000 Capital leases and other notes 35,898 49,926 Unamortized discount and deferred debt costs (8,795) (11,169) Total long-term debt 327,103 338,757 Less current portion 18,738 19,582 Total non-current portion of long-term debt $ 308,365 $ 319,175 |
Schedule of Unamortized Debt Discounts | The following discounts on debt represent the unamortized discount to fair value of prior Amended and Restated Term Loan Agreement and the short-term and long-term portions of the fair value discount of capital leases (in thousands): December 31, 2019 2018 Unamortized discount on Senior Notes $ 2,156 $ 2,731 Unamortized discount on Capital Leases - short-term — 479 Unamortized deferred debt issuance costs 6,639 7,959 Total $ 8,795 $ 11,169 |
Debt Maturities Including Capital Leases | As of December 31, 2019, the aggregate maturities of debt, including capital leases, for the next five years and thereafter are as follows (in thousands): Period: Debt Capital Leases 2020 $ — $ 18,738 2021 — 11,485 2022 — 4,835 2023 300,000 785 Thereafter — 55 Total $ 300,000 $ 35,898 |
Schedule of Interest Expense | Basic’s interest expense consisted of the following (in thousands): Year ended December 31, Interest expense: 2019 2018 Cash payments for interest $ 39,248 $ 34,396 Commitment and other fees paid 48 2,441 Amortization of discounts 1,054 3,424 Amortization of deferred debt costs 2,338 1,050 Change in accrued interest 86 3,688 Other 113 162 Interest expense - continuing operations $ 42,887 $ 45,161 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Fair Value of Financial Instruments | December 31, 2019 December 31, 2018 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value 10.75 % Senior Notes due 2023 1 $ 297,844 $ 213,246 $ 297,269 $ 257,806 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future annual minimum operating lease payments were as follows (in thousands): December 31, 2019 2020 $ 6,618 2021 5,227 2022 4,393 2023 942 2024 721 Thereafter 325 Total lease payments $ 18,226 Impact of discounting (3,686) Discounted value of operating lease obligation $ 14,540 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses included in current liabilities on our Consolidated Balance Sheet are as follows (in thousands): December 31, 2019 2018 Employee compensation $ 17,527 $ 20,680 Retained losses on insurance obligations 9,801 6,566 Accrued interest 8,997 10,068 Property tax payable 4,672 1,617 Federal and state tax payable 2,375 — Short-term sales tax payable 2,114 2,336 Professional fees 1,260 1,638 Other 1,370 2,050 Total $ 48,116 $ 44,955 |
Incentive Plan (Tables)
Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options Outstanding | The following table reflects the summary of stock options outstanding at December 31, 2019: Number of Options Granted Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000's) Non-statutory stock options: Outstanding, beginning of period 595,736 39.23 Options granted — — Options forfeited (77,702) 39.30 Options exercised — — Options expired (211,528) 39.25 Outstanding, end of period 306,506 39.23 7.08 — Exercisable, end of period 256,867 38.71 7.07 — Vested or expected to vest, end of period 49,639 41.90 7.17 — |
Summary of Non-Vested Restricted Stock Unit Grants | A summary of the status of Basic’s non-vested RSU grants at December 31, 2019 and changes during the year ended December 31, 2019 is presented in the following table: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Unit Non-vested at beginning of period 191,302 $ 16.58 Granted during period 653,160 2.53 Vested during period (73,976) 16.17 Forfeited during period (197,420) 5.43 Non-vested at end of period 573,066 $ 4.46 |
Summary of Non-Vested Performance Stock Units | A summary of the status of Basic’s non-vested performance-based grants at December 31, 2019 and changes during the year ended December 31, 2019 is presented in the following table: Number of Performance Stock Units Weighted Average Grant Date Fair Value Per Unit Non-vested at beginning of period 682,985 $ 27.27 Granted during period — — Vested during period (218,541) 36.33 Forfeited during period (152,206) 28.13 Non-vested at end of period 312,238 $ 20.52 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following table sets forth the computation of basic and diluted loss per share (in thousands, except share data): Year ended December 31, 2019 2018 Numerator (both basic and diluted): Loss from continuing operations $ (91,401) $ (116,736) Loss from discontinued operations, net of tax (90,497) (27,861) Net loss available to common stockholders $ (181,898) $ (144,597) Denominator: Denominator for basic and diluted earnings per share 26,141,414 26,467,417 Basic and diluted loss per common share from continuing operations: $ (3.50) $ (4.41) Basic and diluted loss per common share from discontinued operations: (3.46) (1.05) Basic and diluted loss per common share available to stockholders: $ (6.96) $ (5.46) |
Schedule of Potentially Dilutive Instruments | The following shows potentially dilutive instruments: Year ended December 31, 2019 2018 Warrants 2,066,576 2,066,576 Unvested restricted stock units 373,754 29,806 Stock options 306,506 595,736 Total 2,746,836 2,692,118 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments Financial Information | The following table sets forth certain financial information with respect to Basic’s reportable segments (in thousands): Well Servicing Water Logistics Completion & Remedial Services Corporate and Other Continuing Operations Total Discontinued Operations Year ended December 31, 2019 Operating revenues $ 226,966 $ 199,816 $ 140,468 $ — $ 567,250 $ 142,885 Direct operating costs (186,782) (141,379) (98,654) — (426,815) (134,778) Segment profits 40,184 58,437 41,814 — 140,435 8,107 Depreciation and amortization 18,766 26,143 19,964 4,616 69,489 45,168 Capital expenditures 14,525 26,209 7,033 654 48,421 12,067 Identifiable assets $ 78,686 $ 118,960 $ 42,560 $ 256,044 $ 496,250 $ 54,224 Year ended December 31, 2018 Operating revenues $ 250,982 $ 231,283 $ 171,300 $ — $ 653,565 $ 311,154 Direct operating costs (203,785) (166,907) (109,713) — (480,405) (266,011) Segment profits 47,197 64,376 61,587 — 173,160 45,143 Depreciation and amortization 18,470 25,250 27,903 6,550 78,173 48,244 Capital expenditures 22,212 24,737 10,128 1,396 58,473 29,970 Identifiable assets $ 89,813 $ 98,717 $ 125,123 $ 293,506 $ 607,159 $ 154,618 |
Reconciliation of Segment Profits to Operating Income | The following table reconciles the segment profits reported above to the operating income as reported in the consolidated statements of operations (in thousands): Year ended December 31, 2019 2018 Segment profits $ 140,435 $ 173,160 General and administrative expenses (118,460) (145,725) Depreciation and amortization (69,489) (78,173) Gain (Loss) on disposal of assets (2,135) 4,918 Operating loss $ (49,649) $ (45,820) |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table summarizes our disaggregated revenues by geographical markets and major service lines for the years ended December 31, 2019, and 2018 (in thousands): Well Servicing Water Logistics Completion & Remedial Services Discontinued Operations Total Twelve Months Ended December 31, 2019 Primary Geographical Markets Permian Basin $ 115,803 $ 106,306 $ 62,919 $ 23,697 $ 308,725 ArkLaTex & Mid-Continent 49,122 43,915 14,466 108,396 215,899 Rocky Mountain 24,069 22,310 69,526 3,507 119,412 Texas Gulf Coast 28,308 38,068 — 7,285 73,661 West Coast 21,727 — — — 21,727 Corporate (Intercompany) (12,063) (10,783) (6,443) — (29,289) Total $ 226,966 $ 199,816 $ 140,468 $ 142,885 $ 710,135 Major Service Lines Well Servicing $ 187,693 — — — $ 187,693 Plugging 26,050 — — — 26,050 Transport/Vacuum — 122,008 — — 122,008 Production and Disposal Facilities — 20,519 — — 20,519 Hot Oiler — 20,709 — — 20,709 RAFT — — 73,978 — 73,978 Coiled Tubing — — 54,428 — 54,428 Snubbing — — 3,709 — 3,709 Taylor Industries - Manufacturing (Intercompany) 3,931 — — — 3,931 Discontinued Operations — — — 142,885 142,885 Other 9,292 36,580 8,353 — 54,225 Total $ 226,966 $ 199,816 $ 140,468 $ 142,885 $ 710,135 Well Servicing Water Logistics Completion & Remedial Services Discontinued Operations Total Twelve Months Ended December 31, 2018 Primary Geographical Markets Permian Basin $ 118,631 $ 125,528 $ 77,419 $ 72,832 $ 394,410 Texas Gulf Coast 28,313 35,074 1,030 13,660 78,077 ArkLaTex & Mid-Continent 52,511 44,492 26,641 208,353 331,997 West Coast 30,342 — — — 30,342 Rocky Mountain 27,067 31,908 84,291 16,310 159,576 Eastern USA 5,560 — 3,609 — 9,169 Corporate (Intercompany) (11,442) (5,719) (21,690) — (38,851) Total $ 250,982 $ 231,283 $ 171,300 $ 311,155 $ 964,720 Major Service Lines Well Servicing $ 208,307 $ — $ — $ — $ 208,307 Plugging 25,165 — — — 25,165 Transport/Vacuum — 142,222 — — 142,222 Production and Disposal Facilities — 24,204 — — 24,204 Hot Oiler — 20,613 — — 20,613 RAFT — — 88,527 — 88,527 Coiled Tubing — — 68,935 — 68,935 Snubbing — — 10,972 — 10,972 Taylor Industries - Manufacturing (Intercompany) 7,660 — — — 7,660 Discontinued Operations — — — 311,155 311,155 Other 9,850 44,244 2,866 — 56,960 Total $ 250,982 $ 231,283 $ 171,300 $ 311,155 $ 964,720 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | Income tax expense consists of the following (in thousands): Year ended December 31, 2019 2018 Current: Federal $ (1,900) $ — State 1,921 305 Total $ 21 $ 305 Deferred: Federal $ — $ (74) State — (4) Total — (78) Total income tax expense $ 21 $ 227 |
Reconciliation Between Federal Statutory Rate and Income (Benefit) Expense | Reconciliation between the amount determined by applying the U.S. Federal corporate rate of 21% to income before income taxes (benefit) for the years ended December 31, 2019 and 2018 is as follows (in thousands) : Year ended December 31, 2019 2018 Income tax benefit at federal statutory rate $ (19,190) $ (30,318) Meals and entertainment 674 707 State taxes, net of federal benefit 580 (2,250) Changes in Valuation Allowance 15,824 28,167 Equity Compensation Shortfall 2,601 2,644 Tax Basis Adjustments — 41 Change in Estimates & Other (468) 1,236 Total $ 21 $ 227 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands): Year ended December 31, 2019 2018 Deferred tax assets: Operating loss carryforward $ 205,367 $ 178,657 Goodwill and intangibles 19,350 23,088 Interest Expense Limitation 16,721 10,722 Accrued liabilities 11,139 11,804 Operating Lease - Lease Liability 3,299 — Deferred compensation 2,889 4,028 Asset retirement obligation 2,344 589 Inventory 972 265 Deferred Debt Costs 902 1,680 Receivables allowance 500 418 Valuation Allowances (210,808) (174,497) Total deferred tax assets $ 52,675 $ 56,754 Deferred tax liabilities: Property and equipment $ (48,980) $ (55,901) Operating Lease - ROU Asset (3,299) — Prepaid expenses (396) (853) Total deferred tax liabilities $ (52,675) $ (56,754) Net deferred tax liability $ — $ — |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | The following table summarizes results for each of the four quarters in the years ended December 31, 2019, and 2018 (in thousands, except earnings per share data): First Quarter Second Quarter Third Quarter Fourth Quarter Year Year ended December 31, 2019: Total revenues $ 153,190 $ 147,975 $ 144,163 $ 121,922 $ 567,250 Segment profits 42,067 38,915 35,584 23,869 140,435 Net loss on continuing operations (14,786) (19,315) (24,778) (32,522) (91,401) Net loss on discontinued operations $ (12,690) $ (8,462) $ (14,100) $ (55,245) $ (90,497) Loss per share of common stock (a): Continuing operations, basic and diluted $ (0.55) $ (0.71) $ (0.97) $ (1.30) $ (3.50) Discontinued operations, basic and diluted $ (0.47) $ (0.31) $ (0.55) $ (2.22) $ (3.46) Weighted average common shares outstanding: Basic 26,850 27,204 25,606 24,924 26,141 Diluted 26,850 27,204 25,606 24,924 26,141 Year ended December 31, 2018: Total revenues $ 158,997 $ 165,558 $ 171,144 $ 157,866 $ 653,565 Segment profits 42,948 45,245 44,716 40,251 173,160 Net loss on continuing operations (23,650) (30,990) (20,354) (41,742) (116,736) Net loss on discontinued operations $ (6,881) $ (9,064) $ (6,981) $ (4,935) $ (27,861) Loss per share of common stock (a): Continuing operations, basic and diluted $ (0.89) $ (1.18) $ (0.77) $ (1.57) $ (4.41) Discontinued operations, basic and diluted $ (0.26) $ (0.34) $ (0.26) $ (0.19) $ (1.05) Weighted average common shares outstanding: Basic 26,336 26,444 26,510 26,570 26,467 Diluted 26,336 26,444 26,510 26,570 26,467 (a) The sum of individual quarterly net loss per share may not agree to the total for the year due to each period's computation being based on the weighted average number of common shares outstanding during such period. |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 12, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment | $ 35,801 | $ 0 | ||
Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Carrying value, held for sale | $ 91,800 | |||
Asset impairment | $ 32,600 | |||
Contract drilling equipment | Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment | $ 3,200 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Operating Results of Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Assets-held-for-sale | |||||||||||
Total assets-held-for-sale discontinued operations | $ 55,149 | $ 18,106 | $ 55,149 | $ 18,106 | |||||||
Liabilities related to Assets-held-for-sale | |||||||||||
Total Liabilities related to Assets-held-for-sale discontinued operations | 5,248 | 0 | 5,248 | 0 | |||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 710,135 | 964,720 | |||||||||
Expenses: | |||||||||||
General and administrative | 133,668 | 167,515 | |||||||||
Depreciation and amortization | [1] | 114,657 | 126,417 | ||||||||
Asset impairment | 35,801 | 0 | |||||||||
Loss (gain) on disposal of assets | [1] | 4,013 | (2,598) | ||||||||
Total expenses | 849,732 | 1,037,750 | |||||||||
Operating loss | (139,597) | (73,030) | |||||||||
Other income (expense): | |||||||||||
Loss on extinguishment of debt | 0 | (26,429) | |||||||||
Interest expense | (43,470) | (45,853) | |||||||||
Interest income | 509 | 364 | |||||||||
Other income | 681 | 578 | |||||||||
Loss from continuing operations before income taxes | (91,380) | (116,509) | |||||||||
Loss before income taxes | (181,877) | (144,370) | |||||||||
Income tax expense | (21) | (227) | |||||||||
Loss from continuing operations | (32,522) | $ (24,778) | $ (19,315) | $ (14,786) | (41,742) | $ (20,354) | $ (30,990) | $ (23,650) | (91,401) | (116,736) | |
Loss from discontinued operations, net of tax | $ (55,245) | $ (14,100) | $ (8,462) | $ (12,690) | $ (4,935) | $ (6,981) | $ (9,064) | $ (6,881) | (90,497) | (27,861) | |
Net loss | $ (181,898) | $ (144,597) | |||||||||
Net loss from continuing operations per share, basic and diluted (in dollars per share) | $ (1.30) | $ (0.97) | $ (0.71) | $ (0.55) | $ (1.57) | $ (0.77) | $ (1.18) | $ (0.89) | $ (3.50) | $ (4.41) | |
Net loss from discontinued operations per share, basic and diluted (in dollars per share) | $ (2.22) | $ (0.55) | $ (0.31) | $ (0.47) | $ (0.19) | $ (0.26) | $ (0.34) | $ (0.26) | (3.46) | (1.05) | |
Net loss per share of common stock, basic and diluted (in dollars per share) | $ (6.96) | $ (5.46) | |||||||||
Operating activities : | |||||||||||
Inventory and other write-downs | [1] | $ 10,607 | $ 0 | ||||||||
Loss (gain) on disposal of assets | [1] | 4,013 | (2,598) | ||||||||
Investing activities: | |||||||||||
Purchase of Property plant and equipment | [1] | (55,353) | (68,709) | ||||||||
Proceeds from sales of assets | [1] | 17,297 | 17,785 | ||||||||
Continuing operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | $ 121,922 | $ 144,163 | $ 147,975 | $ 153,190 | $ 157,866 | $ 171,144 | $ 165,558 | $ 158,997 | 567,250 | 653,565 | |
Expenses: | |||||||||||
Service expenses | 426,815 | 480,405 | |||||||||
General and administrative | 118,460 | 145,725 | |||||||||
Depreciation and amortization | 69,489 | 78,173 | |||||||||
Asset impairment | 0 | 0 | |||||||||
Loss (gain) on disposal of assets | 2,135 | (4,918) | |||||||||
Total expenses | 616,899 | 699,385 | |||||||||
Operating loss | (49,649) | (45,820) | |||||||||
Other income (expense): | |||||||||||
Loss on extinguishment of debt | 0 | (26,429) | |||||||||
Interest expense | (42,887) | (45,161) | |||||||||
Interest income | 509 | 364 | |||||||||
Other income | 647 | 537 | |||||||||
Loss from continuing operations before income taxes | (91,380) | (116,509) | |||||||||
Income tax expense | (21) | (227) | |||||||||
Loss from continuing operations | (91,401) | (116,736) | |||||||||
Operating activities : | |||||||||||
Inventory and other write-downs | 5,266 | ||||||||||
Loss (gain) on disposal of assets | 2,135 | (4,918) | |||||||||
Investing activities: | |||||||||||
Purchase of Property plant and equipment | (44,794) | (43,063) | |||||||||
Proceeds from sales of assets | 6,605 | 15,213 | |||||||||
Discontinued operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 142,885 | 311,155 | |||||||||
Expenses: | |||||||||||
General and administrative | 15,208 | 21,790 | |||||||||
Depreciation and amortization | 45,168 | 48,244 | |||||||||
Asset impairment | 35,801 | 0 | |||||||||
Loss (gain) on disposal of assets | 1,878 | 2,320 | |||||||||
Total expenses | 232,833 | 338,365 | |||||||||
Operating loss | (89,948) | (27,210) | |||||||||
Other income (expense): | |||||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Interest expense | (583) | (692) | |||||||||
Interest income | 0 | 0 | |||||||||
Other income | 34 | 41 | |||||||||
Loss before income taxes | (90,497) | (27,861) | |||||||||
Income tax expense | 0 | 0 | |||||||||
Loss from discontinued operations, net of tax | $ (90,497) | $ (27,861) | |||||||||
Net loss from discontinued operations per share, basic and diluted (in dollars per share) | $ (3.46) | $ (1.05) | |||||||||
Operating activities : | |||||||||||
Inventory and other write-downs | $ 5,341 | ||||||||||
Loss (gain) on disposal of assets | 1,878 | $ 2,320 | |||||||||
Investing activities: | |||||||||||
Purchase of Property plant and equipment | (10,559) | (25,646) | |||||||||
Proceeds from sales of assets | 10,692 | 2,572 | |||||||||
Well Servicing | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 226,966 | 250,991 | |||||||||
Expenses: | |||||||||||
Service expenses | 186,690 | 203,585 | |||||||||
Well Servicing | Continuing operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 226,966 | 250,982 | |||||||||
Expenses: | |||||||||||
Service expenses | 186,782 | 203,785 | |||||||||
Well Servicing | Discontinued operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 0 | 9 | |||||||||
Expenses: | |||||||||||
Service expenses | (92) | (200) | |||||||||
Water Logistics | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 199,816 | 231,283 | |||||||||
Expenses: | |||||||||||
Service expenses | 141,379 | 166,926 | |||||||||
Water Logistics | Continuing operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 199,816 | 231,283 | |||||||||
Expenses: | |||||||||||
Service expenses | 141,379 | 166,907 | |||||||||
Water Logistics | Discontinued operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 0 | 0 | |||||||||
Expenses: | |||||||||||
Service expenses | 0 | 19 | |||||||||
Completion & Remedial Services | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 274,942 | 469,456 | |||||||||
Expenses: | |||||||||||
Service expenses | 226,604 | 365,775 | |||||||||
Completion & Remedial Services | Continuing operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 140,468 | 171,300 | |||||||||
Expenses: | |||||||||||
Service expenses | 98,654 | 109,713 | |||||||||
Completion & Remedial Services | Discontinued operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 134,474 | 298,156 | |||||||||
Expenses: | |||||||||||
Service expenses | 127,950 | 256,062 | |||||||||
Other Services | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 8,411 | 12,990 | |||||||||
Expenses: | |||||||||||
Service expenses | 6,920 | 10,130 | |||||||||
Other Services | Continuing operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 0 | 0 | |||||||||
Expenses: | |||||||||||
Service expenses | 0 | 0 | |||||||||
Other Services | Discontinued operations | |||||||||||
Income Statement Disclosures | |||||||||||
Operating revenues | 8,411 | 12,990 | |||||||||
Expenses: | |||||||||||
Service expenses | 6,920 | 10,130 | |||||||||
Discontinued operations | |||||||||||
Assets-held-for-sale | |||||||||||
Inventories | 2,069 | 6,498 | 2,069 | 6,498 | |||||||
Prepaid Expenses | 0 | 8,489 | 0 | 8,489 | |||||||
Right of use assets | 1,659 | 1,659 | |||||||||
Property, plant and equipment, net | 50,496 | 0 | 50,496 | 0 | |||||||
Total assets-held-for-sale discontinued operations | 54,224 | 14,987 | 54,224 | 14,987 | |||||||
Assets-held-for-sale-future-use | |||||||||||
Property, plant and equipment, net | 0 | 139,631 | 0 | 139,631 | |||||||
Liabilities related to Assets-held-for-sale | |||||||||||
Right of use liabilities | 1,659 | 1,659 | |||||||||
Capital leases | 3,589 | 10,983 | 3,589 | 10,983 | |||||||
Total Liabilities related to Assets-held-for-sale discontinued operations | $ 5,248 | $ 10,983 | 5,248 | 10,983 | |||||||
Expenses: | |||||||||||
Asset impairment | 32,600 | ||||||||||
Cash Flows from Discontinued Operations | |||||||||||
Net cash provided (used) by operating activities | 2,120 | 37,691 | |||||||||
Net cash provided (used) in investing activities | $ 133 | $ (23,074) | |||||||||
[1] | (a) See reconciling cash flow items from discontinued operations in Note 2: Discontinued Operations |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and improvements | Minimum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 20 years |
Buildings and improvements | Maximum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 30 years |
Well service units and equipment | Minimum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Well service units and equipment | Maximum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Fluid services equipment | Minimum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Fluid services equipment | Maximum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Brine and fresh water stations | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Fracturing/test tanks | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Disposal facilities | Minimum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Disposal facilities | Maximum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Vehicles | Minimum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Vehicles | Maximum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 7 years |
Rental equipment | Minimum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Rental equipment | Maximum | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Software and computers | |
Property, Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization expense of intangible assets | $ 200 | $ 200 |
Amortization of deferred financing costs | $ 2,338 | $ 1,072 |
Revenue | Customer concentration risk | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk | 12.00% | |
Trade names | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of intangible assets | 15 years | |
Trade names | Discontinued operations | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Disposal Group, Including Discontinued Operation, Asset Impairment Charges | $ 200 | |
Developed technology | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of intangible assets | 5 years | |
Well service units and equipment | Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives | 3 years | |
Well service units and equipment | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives | 15 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Amortization Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross | $ 3,278 | $ 3,458 |
Less accumulated amortization | 675 | 474 |
Intangible assets subject to amortization, net | 2,603 | 2,984 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross | 3,230 | 3,410 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross | $ 48 | $ 48 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortization Expense | ||
2020 | $ 225 | |
2021 | 225 | |
2022 | 215 | |
2023 | 215 | |
2024 | 215 | |
Thereafter | 1,508 | |
Intangible assets subject to amortization, net | $ 2,603 | $ 2,984 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 493,625 | $ 443,459 |
Less accumulated depreciation and amortization | (196,512) | (134,289) |
Property and equipment, net | 297,113 | 309,170 |
Land | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 15,682 | 14,601 |
Buildings and improvements | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 30,902 | 30,108 |
Well service units and equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 130,318 | 122,236 |
Disposal facilities | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 87,763 | 63,229 |
Fluid services equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 79,024 | 78,501 |
Rental equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 60,886 | 48,319 |
Pumping equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 47,083 | 49,265 |
Light vehicles | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 26,630 | 23,063 |
Fracturing/test tanks | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,153 | 6,001 |
Brine and fresh water stations | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,340 | 3,295 |
Other | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,948 | 3,984 |
Software | ||
Property, Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 896 | $ 857 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Lease obligation period | 5 years | |
Carrying value of property and equiement | $ 91,800 | |
Asset impairment | $ 35,801 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment Under Capital Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant And Equipment [Line Items] | ||
Property, plant and equipment under capital lease, gross | $ 71,768 | |
Property, plant and equipment under capital lease, gross | $ 67,585 | |
Less accumulated amortization | (27,727) | |
Less accumulated amortization | (16,634) | |
Property and equipment, net | 44,041 | |
Property and equipment, net | 50,951 | |
Fluid services equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property, plant and equipment under capital lease, gross | 34,499 | |
Property, plant and equipment under capital lease, gross | 35,034 | |
Light vehicles | ||
Property, Plant And Equipment [Line Items] | ||
Property, plant and equipment under capital lease, gross | 19,563 | |
Property, plant and equipment under capital lease, gross | 15,631 | |
Pumping equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property, plant and equipment under capital lease, gross | 16,576 | |
Property, plant and equipment under capital lease, gross | 16,920 | |
Rental equipment | ||
Property, Plant And Equipment [Line Items] | ||
Property, plant and equipment under capital lease, gross | $ 1,130 | |
Property, plant and equipment under capital lease, gross | $ 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Activity in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance as of January 1, 2019 | $ 2,587 | $ 2,507 |
Additions | 281 | 16 |
Revision in estimate | 7,205 | 0 |
Disposals | (124) | (148) |
Expenditures | (671) | 0 |
Accretion of discount | 1,051 | 212 |
Balance as of December 31, 2019 | $ 10,329 | $ 2,587 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Schedule of Contractual Obligation Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Asset Retirement Obligation Disclosure [Abstract] | |
2020 | $ 1,285 |
2021 | 172 |
2022 | 146 |
2023 | 341 |
Thereafter | 8,385 |
Total asset retirement obligations | $ 10,329 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right of use assets | $ 14,540 | |
Operating lease liability | 14,540 | |
Variable lease payments | 1,100 | |
Prepaid rent | 100 | |
Operating leases | $ 2,477 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right of use assets | $ 20,800 | |
Operating lease liability | $ 20,800 | |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Renewal term | 1 year | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Renewal term | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lease expense | ||
Short-term operating lease | $ 5,691 | |
Long-term operating lease | 8,681 | |
Total operating lease expense | 14,372 | |
Amortization of right-of-use assets | 19,171 | |
Interest on lease liabilities | 5,005 | |
Total finance lease expense | $ 24,176 | |
Operating leases | ||
Weighted average remaining lease term | 3 years 1 month 6 days | |
Weighted average discount rate | 14.80% | |
Finance leases | ||
Weighted average remaining lease term | 2 years 1 month 6 days | |
Weighted average discount rate | 8.20% | |
Supplemental cash flow | ||
Operating cash outflows from operating leases | $ 14,372 | |
Operating cash outflows from finance leases | 5,005 | |
Financing cash outflows from finance leases | 29,364 | |
Operating leases | 2,477 | |
Finance leases | 7,941 | |
Assets and Liabilities | ||
Operating lease right of use assets | 14,540 | |
Operating lease right-of-use liabilities, current portion | 4,906 | |
Operating lease right-of-use liabilities, long-term portion | 9,634 | |
Total operating lease liabilities | 14,540 | |
Property and equipment, at cost | 71,768 | |
Less accumulated amortization | (27,727) | |
Property and equipment, net | 44,041 | |
Current portion of finance leases | 18,738 | |
Long-term finance leases | 17,160 | |
Total finance lease liabilities | $ 35,898 | |
Operating lease right-of-use assets | $ 20,819 | |
Operating lease right-of-use liabilities, current portion | 5,649 | |
Operating lease right-of-use liabilities, long-term portion | 15,170 | |
Total operating lease liabilities | 20,819 | |
Property and equipment, at cost | 67,585 | |
Less accumulated amortization | (16,634) | |
Property and equipment, net | 50,951 | |
Current portion of long-term debt | 20,061 | |
Long-term debt | 29,865 | |
Total finance lease liabilities | $ 49,926 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments for Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating leases (Topic 842) | |
2020 | $ 6,618 |
2021 | 5,227 |
2022 | 4,393 |
2023 | 942 |
2024 | 721 |
Thereafter | 325 |
Total lease payments | 18,226 |
Impact of discounting | (3,686) |
Operating lease liability | $ 14,540 |
Long-Term Debt - Schedule Of Lo
Long-Term Debt - Schedule Of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Capital leases and other notes | $ 35,898 | $ 49,926 |
Unamortized discount and deferred debt costs | (8,795) | (11,169) |
Total long-term debt | 327,103 | 338,757 |
Less current portion | 18,738 | 19,582 |
Total non-current portion of long-term debt | 308,365 | 319,175 |
10.75 % Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 300,000 | $ 300,000 |
Long-Term Debt - Schedule of Un
Long-Term Debt - Schedule of Unamortized Debt Discounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized discount on Capital Leases - short-term | $ 0 | $ 479 |
Unamortized deferred debt issuance costs | 6,639 | 7,959 |
Total | 8,795 | 11,169 |
10.75 % Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Unamortized discounts | $ 2,156 | $ 2,731 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Oct. 02, 2018 | Sep. 29, 2017 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Repayments of debt | $ 290,000,000 | ||
10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 300,000,000 | ||
Stated interest rate | 10.75% | ||
Redemption price, percentage of aggregate principal amount outstanding | 99.042% | ||
Effective interest rate | 11.00% | ||
Amended and Restated Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Early repayment penalty | $ 17,600,000 | ||
Minimum | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption, percent of aggregate principal amount outstanding | 25.00% | ||
New ABL Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Maximum capacity for base rate protective advances | $ 10,000,000 | ||
Principle amount due | five | ||
Prior ABL Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
Option for additional borrowing capacity on line of credit | $ 50,000,000 | ||
Closing payment fee rate | 0.375% | ||
Prior ABL Facility | ABR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Prior ABL Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.25% | ||
Redemption period, on or prior to October 15, 2020 | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage of aggregate principal amount outstanding | 110.75% | ||
Redemption period, on or prior to October 15, 2020 | Maximum | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption, percent of aggregate principal amount outstanding | 35.00% | ||
Redemption period, prior to October 15, 2020 | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage of aggregate principal amount outstanding | 100.00% | ||
Redemption period, between April 15, 2019 and October 15, 2019 | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage of aggregate principal amount outstanding | 105.375% | ||
Redemption period, between October 15, 2019 and October 15, 2020 | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage of aggregate principal amount outstanding | 108.063% | ||
Redemption due to change in control | 10.75 % Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage of aggregate principal amount outstanding | 101.00% | ||
Letter of Credit | New ABL Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Letters of credit outstanding | $ 34,200,000 | ||
Swingline Loans | New ABL Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 15,000,000 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt Maturities Including Capital Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 300,000 |
Thereafter | 0 |
Total | 300,000 |
Capital Leases | |
2020 | 18,738 |
2021 | 11,485 |
2022 | 4,835 |
2023 | 785 |
Thereafter | 55 |
Total lease payments | $ 35,898 |
Long-Term Debt - Schedule Of In
Long-Term Debt - Schedule Of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total interest expense | $ 43,470 | $ 45,853 |
Continuing operations | ||
Debt Instrument [Line Items] | ||
Cash payments for interest | 39,248 | 34,396 |
Commitment and other fees paid | 48 | 2,441 |
Amortization of discounts | 1,054 | 3,424 |
Amortization of deferred debt costs | 2,338 | 1,050 |
Change in accrued interest | 86 | 3,688 |
Other | 113 | 162 |
Total interest expense | $ 42,887 | $ 45,161 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - 10.75 % Senior Notes due 2023 - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value | $ 297,844 | $ 297,269 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value | $ 213,246 | $ 257,806 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | |||
Total interest expense | $ 43,470,000 | $ 45,853,000 | |
Severance payment for the change of control multiplier | 2 | ||
Self insurance deductible for workers compensation, per occurrence | $ 2,000,000 | ||
Self insurance deductible for general liability claims, per occurrence | 1,000,000 | ||
Self insurance deductible for medical and dental coverage, per occurrence | 400,000 | ||
Self insurance deductible for automobile liabilities, per occurrence | 1,000,000 | ||
Chief Executive Officer | |||
Loss Contingencies [Line Items] | |||
Annual salary | 650,000 | ||
Bonus | $ 150,000 | ||
Bonus as a percent of annual salary | 90.00% | ||
Severance payment multiplier | 1.5 | ||
Chief Executive Officer | May 15, 2020 | |||
Loss Contingencies [Line Items] | |||
Bonus | $ 50,000 | ||
Chief Executive Officer | May 15, 2021 | |||
Loss Contingencies [Line Items] | |||
Bonus | 100,000 | ||
Chief Executive Officer | May 15, 2022 | |||
Loss Contingencies [Line Items] | |||
Bonus | $ 100,000 | ||
Minimum | Executive Officers | |||
Loss Contingencies [Line Items] | |||
Severance payment multiplier | 0.75 | ||
Severance payment for the change of control multiplier | 1 | ||
Maximum | Executive Officers | |||
Loss Contingencies [Line Items] | |||
Severance payment multiplier | 1.5 | ||
Severance payment for the change of control multiplier | 2 | ||
Sales and Use Tax Audit | |||
Loss Contingencies [Line Items] | |||
Loss contingency accrual | $ 4,200,000 | $ 6,000,000 | |
Loss contingency payments, monthly | 100,000 | ||
Total interest expense | 1,900,000 | ||
Sales and Use Tax Audit | Minimum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 6,000,000 | ||
Sales and Use Tax Audit | Maximum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 24,000,000 | ||
State Tax Audit | |||
Loss Contingencies [Line Items] | |||
Loss contingency accrual | 2,300,000 | ||
State Tax Audit | Minimum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 2,300,000 | ||
State Tax Audit | Maximum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 3,500,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 17,527 | $ 20,680 |
Retained losses on insurance obligations | 9,801 | 6,566 |
Accrued interest | 8,997 | 10,068 |
Property tax payable | 4,672 | 1,617 |
Federal and state tax payable | 2,375 | 0 |
Short-term sales tax payable | 2,114 | 2,336 |
Professional fees | 1,260 | 1,638 |
Other | 1,370 | 2,050 |
Total | $ 48,116 | $ 44,955 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 27,912,059 | 26,990,034 |
Common stock, outstanding (in shares) | 24,904,485 | 26,747,712 |
Shares repurchased | 2,692,116 | 160,026 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Incentive Plan - Management Inc
Incentive Plan - Management Incentive Plan Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | May 14, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Number of shares authorized (in shares) | 2,481,657 | ||
Compensation expense related to share-based arrangements | $ 8,700,000 | $ 27,300,000 | |
Tax benefit from compensation expense | 0 | $ 0 | |
Unrecognized compensation cost | $ 3,100,000 | ||
Unrecognized compensation cost, period for recognition | 1 year 10 months 6 days |
Incentive Plan - Stock Option A
Incentive Plan - Stock Option Awards Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related to share-based arrangements | $ 8.7 | $ 27.3 |
Unrecognized compensation cost | 3.1 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related to share-based arrangements | 1.9 | $ 4.2 |
Unrecognized compensation cost | $ 0.1 | |
Period option is available to be exercised | 10 years | |
Vesting period | 3 years |
Incentive Plan - Summary of Sto
Incentive Plan - Summary of Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Options Granted | |
Outstanding, beginning of period (in shares) | shares | 595,736 |
Options granted (in shares) | shares | 0 |
Options forfeited (in shares) | shares | (77,702) |
Options exercised (in shares) | shares | 0 |
Options expired (in shares) | shares | (211,528) |
Outstanding, end of period (in shares) | shares | 306,506 |
Exercisable, end of period (in shares) | shares | 256,867 |
Vested or expected to vest, end of period (in shares) | shares | 49,639 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 39.23 |
Options granted (in dollars per share) | $ / shares | 0 |
Options forfeited (in dollars per share) | $ / shares | 39.30 |
Options exercised (in dollars per share) | $ / shares | 0 |
Options expired (in dollars per share) | $ / shares | 39.25 |
Outstanding, end of period (in dollars per share) | $ / shares | 39.23 |
Exercisable, end of period (in dollars per share) | $ / shares | 38.71 |
Vested or expected to vest, end of period (in dollars per share) | $ / shares | $ 41.90 |
Weighted Average Remaining Contractual Term (Years) | |
Outstanding, end of period | 7 years 29 days |
Exercisable, end of period | 7 years 25 days |
Vested or expected to vest, end of period | 7 years 2 months 1 day |
Aggregate Intrinsic Value | |
Outstanding, end of period | $ | $ 0 |
Exercisable, end of period | $ | 0 |
Vested or expected to vest, end of period | $ | $ 0 |
Incentive Plan - Summary of Non
Incentive Plan - Summary of Non-Vested RSU Grants (Details) - Restricted stock | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Restricted Stock Units | |
Non-vested at beginning of period (in shares) | shares | 191,302 |
Granted during period (in shares) | shares | 653,160 |
Vested during period (in shares) | shares | (73,976) |
Forfeited during period (in shares) | shares | (197,420) |
Non-vested at end of period (in shares) | shares | 573,066 |
Weighted Average Grant Date, Fair Value Per Share | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 16.58 |
Granted during period (in dollars per share) | $ / shares | 2.53 |
Vested during period (in dollars per share) | $ / shares | 16.17 |
Forfeited during period (in dollars per share) | $ / shares | 5.43 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 4.46 |
Incentive Plan - Restricted Sto
Incentive Plan - Restricted Stock Narrative (Details) $ in Thousands | May 15, 2019shares | May 21, 2018shares | Aug. 31, 2017 | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) |
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of share-based awards vested | $ | $ 300 | $ 1,400 | |||
Vesting period | 2 years | ||||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period | 284,625 | ||||
Fair value at grant date | $ | $ 3,300 | ||||
Fair value of units vested | $ | $ 1,000 | 5,500 | |||
Granted during period (in shares) | 0 | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of units vested | $ | $ 33 | $ 77 | |||
Granted during period (in shares) | 653,160 | ||||
Restricted stock | Non-employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 10 months | ||||
Granted during period (in shares) | 120,000 | 48,400 | |||
Restricted stock | Members of management | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Granted during period (in shares) | 533,160 | ||||
Maximum | Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units as a percent of initial award | 1.50 |
Incentive Plan - Summary of N_2
Incentive Plan - Summary of Non-Vested Performance-based Grants (Details) - Performance shares | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Preferred Stock Units | |
Non-vested at beginning of period (in shares) | shares | 682,985 |
Granted during period (in shares) | shares | 0 |
Vested during period (in shares) | shares | (218,541) |
Forfeited during period (in shares) | shares | (152,206) |
Non-vested at end of period (in shares) | shares | 312,238 |
Weighted Average Grant Date, Fair Value Per Share | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 27.27 |
Granted during period (in dollars per share) | $ / shares | 0 |
Vested during period (in dollars per share) | $ / shares | 36.33 |
Forfeited during period (in dollars per share) | $ / shares | 28.13 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 20.52 |
Incentive Plan - Phantom Stock
Incentive Plan - Phantom Stock Awards Narrative (Details) - USD ($) $ in Thousands | May 15, 2019 | Mar. 22, 2019 | Feb. 08, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense related to share-based arrangements | $ 8,700 | $ 27,300 | |||
Phantom Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period | 370,350 | 82,350 | |||
Vesting period | 3 years | 3 years | |||
Compensation expense related to share-based arrangements | $ 200 | ||||
Target number of shares | 1,069,320 | ||||
Phantom Stock Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of target number of shares | 0.00% | ||||
Phantom Stock Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of target number of shares | 150.00% | ||||
Phantom Stock Awards | Members of management | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period | 524,160 | ||||
Vesting period | 3 years | ||||
Phantom Stock Awards | Non-employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period | 54,000 | ||||
Phantom Stock Awards | May 21, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense related to share-based arrangements | $ 100 | $ 700 | |||
Phantom Stock Awards | May 15, 2019 | Members of management | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense related to share-based arrangements | 100 | ||||
Phantom Stock Awards | May 15, 2019 | Non-employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense related to share-based arrangements | $ 31 |
Incentive Plan - Warrant Agreem
Incentive Plan - Warrant Agreement Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 23, 2016 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | ||
Number of shares exercisable by warrants | 2,066,627 | |
Warrants outstanding (in shares) | 2,066,576 | |
Exercise price (in dollars per share) | $ 55.25 | |
Warrants, fair value | $ 8.4 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator (both basic and diluted): | ||||||||||
Loss from continuing operations | $ (32,522) | $ (24,778) | $ (19,315) | $ (14,786) | $ (41,742) | $ (20,354) | $ (30,990) | $ (23,650) | $ (91,401) | $ (116,736) |
Loss from discontinued operations | $ (55,245) | $ (14,100) | $ (8,462) | $ (12,690) | $ (4,935) | $ (6,981) | $ (9,064) | $ (6,881) | (90,497) | (27,861) |
Net loss available to common stockholders, basic | (181,898) | (144,597) | ||||||||
Net loss available to common stockholders, diluted | $ (181,898) | $ (144,597) | ||||||||
Denominator: | ||||||||||
Denominator for basic and diluted earnings per share (in shares) | 26,141,414 | 26,467,417 | ||||||||
Net loss from continuing operations per share, basic and diluted (in dollars per share) | $ (1.30) | $ (0.97) | $ (0.71) | $ (0.55) | $ (1.57) | $ (0.77) | $ (1.18) | $ (0.89) | $ (3.50) | $ (4.41) |
Net loss from discontinued operations per share, basic and diluted (in dollars per share) | $ (2.22) | $ (0.55) | $ (0.31) | $ (0.47) | $ (0.19) | $ (0.26) | $ (0.34) | $ (0.26) | (3.46) | (1.05) |
Net loss per share of common stock, basic and diluted (in dollars per share) | $ (6.96) | $ (5.46) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Potentially Dilutive Instruments (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive instruments (in shares) | 2,746,836 | 2,692,118 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive instruments (in shares) | 2,066,576 | 2,066,576 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive instruments (in shares) | 373,754 | 29,806 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive instruments (in shares) | 306,506 | 595,736 |
Business Segment Information -
Business Segment Information - Schedule of Reportable Segments Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | $ 710,135 | $ 964,720 | |||||||||
Depreciation and amortization | [1] | 114,657 | 126,417 | ||||||||
Identifiable assets | $ 550,474 | $ 761,777 | 550,474 | 761,777 | |||||||
Continuing operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 121,922 | $ 144,163 | $ 147,975 | $ 153,190 | 157,866 | $ 171,144 | $ 165,558 | $ 158,997 | 567,250 | 653,565 | |
Direct operating costs | (426,815) | (480,405) | |||||||||
Segment profits | 23,869 | $ 35,584 | $ 38,915 | $ 42,067 | 40,251 | $ 44,716 | $ 45,245 | $ 42,948 | 140,435 | 173,160 | |
Depreciation and amortization | 69,489 | 78,173 | |||||||||
Capital expenditures | 48,421 | 58,473 | |||||||||
Identifiable assets | 496,250 | 607,159 | 496,250 | 607,159 | |||||||
Continuing operations | Water Logistics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 199,816 | 231,283 | |||||||||
Continuing operations | Completion & Remedial Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 140,468 | 171,300 | |||||||||
Discontinued operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 142,885 | 311,155 | |||||||||
Depreciation and amortization | 45,168 | 48,244 | |||||||||
Operating Segments | Continuing operations | Well Servicing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 226,966 | 250,982 | |||||||||
Direct operating costs | (186,782) | (203,785) | |||||||||
Segment profits | 40,184 | 47,197 | |||||||||
Depreciation and amortization | 18,766 | 18,470 | |||||||||
Capital expenditures | 14,525 | 22,212 | |||||||||
Identifiable assets | 78,686 | 89,813 | 78,686 | 89,813 | |||||||
Operating Segments | Continuing operations | Water Logistics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 199,816 | 231,283 | |||||||||
Direct operating costs | (141,379) | (166,907) | |||||||||
Segment profits | 58,437 | 64,376 | |||||||||
Depreciation and amortization | 26,143 | 25,250 | |||||||||
Capital expenditures | 26,209 | 24,737 | |||||||||
Identifiable assets | 118,960 | 98,717 | 118,960 | 98,717 | |||||||
Operating Segments | Continuing operations | Completion & Remedial Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 140,468 | 171,300 | |||||||||
Direct operating costs | (98,654) | (109,713) | |||||||||
Segment profits | 41,814 | 61,587 | |||||||||
Depreciation and amortization | 19,964 | 27,903 | |||||||||
Capital expenditures | 7,033 | 10,128 | |||||||||
Identifiable assets | 42,560 | 125,123 | 42,560 | 125,123 | |||||||
Operating Segments | Discontinued operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 142,885 | 311,154 | |||||||||
Direct operating costs | (134,778) | (266,011) | |||||||||
Segment profits | 8,107 | 45,143 | |||||||||
Depreciation and amortization | 45,168 | 48,244 | |||||||||
Capital expenditures | 12,067 | 29,970 | |||||||||
Identifiable assets | 54,224 | 154,618 | 54,224 | 154,618 | |||||||
Corporate and Other | Continuing operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 0 | 0 | |||||||||
Direct operating costs | 0 | 0 | |||||||||
Segment profits | 0 | 0 | |||||||||
Depreciation and amortization | 4,616 | 6,550 | |||||||||
Capital expenditures | 654 | 1,396 | |||||||||
Identifiable assets | $ 256,044 | $ 293,506 | $ 256,044 | $ 293,506 | |||||||
[1] | (a) See reconciling cash flow items from discontinued operations in Note 2: Discontinued Operations |
Business Segment Information _2
Business Segment Information - Reconciliation of Operating Profit (Loss) from Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting [Abstract] | |||
General and administrative expenses | $ (133,668) | $ (167,515) | |
Depreciation and amortization | [1] | (114,657) | (126,417) |
Gain (Loss) on disposal of assets | [1] | (4,013) | 2,598 |
Operating loss | $ (139,597) | $ (73,030) | |
[1] | (a) See reconciling cash flow items from discontinued operations in Note 2: Discontinued Operations |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 99,626 | $ 144,767 |
Contract assets | 1,000 | 1,100 |
Contract liabilities | $ 900 | $ 900 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | $ 710,135 | $ 964,720 | ||||||||
Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | $ 121,922 | $ 144,163 | $ 147,975 | $ 153,190 | $ 157,866 | $ 171,144 | $ 165,558 | $ 158,997 | 567,250 | 653,565 |
Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 142,885 | 311,155 | ||||||||
Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 226,966 | 250,982 | ||||||||
Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 199,816 | 231,283 | ||||||||
Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 140,468 | 171,300 | ||||||||
Permian Basin | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 308,725 | 394,410 | ||||||||
Permian Basin | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 23,697 | 72,832 | ||||||||
Permian Basin | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 115,803 | 118,631 | ||||||||
Permian Basin | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 106,306 | 125,528 | ||||||||
Permian Basin | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 62,919 | 77,419 | ||||||||
Texas Gulf Coast | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 73,661 | 78,077 | ||||||||
Texas Gulf Coast | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 7,285 | 13,660 | ||||||||
Texas Gulf Coast | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 28,308 | 28,313 | ||||||||
Texas Gulf Coast | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 38,068 | 35,074 | ||||||||
Texas Gulf Coast | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 1,030 | ||||||||
ArkLaTex & Mid-Continent | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 215,899 | 331,997 | ||||||||
ArkLaTex & Mid-Continent | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 108,396 | 208,353 | ||||||||
ArkLaTex & Mid-Continent | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 49,122 | 52,511 | ||||||||
ArkLaTex & Mid-Continent | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 43,915 | 44,492 | ||||||||
ArkLaTex & Mid-Continent | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 14,466 | 26,641 | ||||||||
West Coast | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 21,727 | 30,342 | ||||||||
West Coast | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
West Coast | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 21,727 | 30,342 | ||||||||
West Coast | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
West Coast | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Rocky Mountain | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 119,412 | 159,576 | ||||||||
Rocky Mountain | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 3,507 | 16,310 | ||||||||
Rocky Mountain | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 24,069 | 27,067 | ||||||||
Rocky Mountain | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 22,310 | 31,908 | ||||||||
Rocky Mountain | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 69,526 | 84,291 | ||||||||
Eastern USA | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 9,169 | |||||||||
Eastern USA | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | |||||||||
Eastern USA | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 5,560 | |||||||||
Eastern USA | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | |||||||||
Eastern USA | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 3,609 | |||||||||
Corporate (Intercompany) | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | (29,289) | (38,851) | ||||||||
Corporate (Intercompany) | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Corporate (Intercompany) | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | (12,063) | (11,442) | ||||||||
Corporate (Intercompany) | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | (10,783) | (5,719) | ||||||||
Corporate (Intercompany) | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | (6,443) | (21,690) | ||||||||
Well Servicing | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 187,693 | 208,307 | ||||||||
Well Servicing | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Well Servicing | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 187,693 | 208,307 | ||||||||
Well Servicing | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Well Servicing | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Plugging | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 26,050 | 25,165 | ||||||||
Plugging | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Plugging | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 26,050 | 25,165 | ||||||||
Plugging | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Plugging | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Transport/Vacuum | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 122,008 | 142,222 | ||||||||
Transport/Vacuum | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Transport/Vacuum | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Transport/Vacuum | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 122,008 | 142,222 | ||||||||
Transport/Vacuum | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Production and Disposal Facilities | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 20,519 | 24,204 | ||||||||
Production and Disposal Facilities | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Production and Disposal Facilities | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Production and Disposal Facilities | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 20,519 | 24,204 | ||||||||
Production and Disposal Facilities | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Hot Oiler | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 20,709 | 20,613 | ||||||||
Hot Oiler | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Hot Oiler | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Hot Oiler | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 20,709 | 20,613 | ||||||||
Hot Oiler | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
RAFT | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 73,978 | 88,527 | ||||||||
RAFT | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
RAFT | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
RAFT | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
RAFT | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 73,978 | 88,527 | ||||||||
Coiled Tubing | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 54,428 | 68,935 | ||||||||
Coiled Tubing | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Coiled Tubing | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Coiled Tubing | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Coiled Tubing | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 54,428 | 68,935 | ||||||||
Snubbing | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 3,709 | 10,972 | ||||||||
Snubbing | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Snubbing | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Snubbing | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Snubbing | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 3,709 | 10,972 | ||||||||
Taylor Industries - Manufacturing (Intercompany) | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 3,931 | 7,660 | ||||||||
Taylor Industries - Manufacturing (Intercompany) | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Taylor Industries - Manufacturing (Intercompany) | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 3,931 | 7,660 | ||||||||
Taylor Industries - Manufacturing (Intercompany) | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Taylor Industries - Manufacturing (Intercompany) | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Other | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 54,225 | 56,960 | ||||||||
Other | Discontinued operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 0 | 0 | ||||||||
Other | Well Servicing | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 9,292 | 9,850 | ||||||||
Other | Water Logistics | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | 36,580 | 44,244 | ||||||||
Other | Completion & Remedial Services | Continuing operations | ||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||
Operating revenues | $ 8,353 | $ 2,866 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
Federal | $ (1,900) | $ 0 |
State | 1,921 | 305 |
Total | 21 | 305 |
Deferred: | ||
Federal | 0 | (74) |
State | 0 | (4) |
Total | 0 | (78) |
Total income tax expense | $ 21 | $ 227 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Income taxes paid | $ 0 | $ 0 |
Income tax refund | 2,800,000 | |
Valuation allowance | 210,808,000 | 174,497,000 |
Interest or penalties related to an uncertain tax position | 0 | |
Federal | ||
Income Taxes [Line Items] | ||
Income taxes paid | 0 | 0 |
Operating loss carryforwards | 900,700,000 | |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, valuation allowance | $ 174,500,000 | |
Operating loss carryforwards | $ 341,400,000 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Federal Statutory Rate and Income (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at federal statutory rate | $ (19,190) | $ (30,318) |
Meals and entertainment | 674 | 707 |
State taxes, net of federal benefit | 580 | (2,250) |
Changes in Valuation Allowance | 15,824 | 28,167 |
Equity Compensation Shortfall | 2,601 | 2,644 |
Tax Basis Adjustments | 0 | 41 |
Change in Estimates & Other | (468) | 1,236 |
Total income tax expense | $ 21 | $ 227 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Operating loss carryforward | $ 205,367 | $ 178,657 |
Goodwill and intangibles | 19,350 | 23,088 |
Interest Expense Limitation | 16,721 | 10,722 |
Accrued liabilities | 11,139 | 11,804 |
Operating Lease - Lease Liability | 3,299 | |
Deferred compensation | 2,889 | 4,028 |
Asset retirement obligation | 2,344 | 589 |
Inventory | 972 | 265 |
Deferred Debt Costs | 902 | 1,680 |
Receivables allowance | 500 | 418 |
Valuation Allowances | (210,808) | (174,497) |
Total deferred tax assets | 52,675 | 56,754 |
Deferred tax liabilities: | ||
Property and equipment | (48,980) | (55,901) |
Operating Lease - ROU Asset | (3,299) | |
Prepaid expenses | (396) | (853) |
Total deferred tax liabilities | (52,675) | (56,754) |
Net deferred tax liability | $ 0 | $ 0 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||
Total revenues | $ 710,135 | $ 964,720 | ||||||||
Loss from continuing operations | $ (32,522) | $ (24,778) | $ (19,315) | $ (14,786) | $ (41,742) | $ (20,354) | $ (30,990) | $ (23,650) | (91,401) | (116,736) |
Loss from discontinued operations | $ (55,245) | $ (14,100) | $ (8,462) | $ (12,690) | $ (4,935) | $ (6,981) | $ (9,064) | $ (6,881) | $ (90,497) | $ (27,861) |
Loss per share of common stock: | ||||||||||
Net loss from continuing operations per share, basic and diluted (in dollars per share) | $ (1.30) | $ (0.97) | $ (0.71) | $ (0.55) | $ (1.57) | $ (0.77) | $ (1.18) | $ (0.89) | $ (3.50) | $ (4.41) |
Net loss from discontinued operations per share, basic and diluted (in dollars per share) | $ (2.22) | $ (0.55) | $ (0.31) | $ (0.47) | $ (0.19) | $ (0.26) | $ (0.34) | $ (0.26) | $ (3.46) | $ (1.05) |
Weighted average common shares outstanding: | ||||||||||
Basic (in shares) | 24,924 | 25,606 | 27,204 | 26,850 | 26,570 | 26,510 | 26,444 | 26,336 | 26,141 | 26,467 |
Diluted (in shares) | 24,924 | 25,606 | 27,204 | 26,850 | 26,570 | 26,510 | 26,444 | 26,336 | 26,141 | 26,467 |
Continuing operations | ||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||
Total revenues | $ 121,922 | $ 144,163 | $ 147,975 | $ 153,190 | $ 157,866 | $ 171,144 | $ 165,558 | $ 158,997 | $ 567,250 | $ 653,565 |
Segment profits | $ 23,869 | $ 35,584 | $ 38,915 | $ 42,067 | $ 40,251 | $ 44,716 | $ 45,245 | $ 42,948 | 140,435 | 173,160 |
Loss from continuing operations | $ (91,401) | $ (116,736) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 09, 2020 | Mar. 08, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 02, 2018 |
Subsequent Event [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
10.75 % Senior Notes due 2023 | |||||
Subsequent Event [Line Items] | |||||
Stated interest rate | 10.75% | ||||
Aggregate principal amount | $ 300,000,000 | ||||
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Board Rights Termination Date, ownership percent | 25.00% | ||||
Subsequent event | Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 120,000,000 | $ 150,000,000 | |||
Subsequent event | Seller | CJWS | |||||
Subsequent Event [Line Items] | |||||
Purchase consideration | 93,700,000 | ||||
Cash consideration | 59,400,000 | ||||
Make-Whole payment | $ 1,000,000 | ||||
Subsequent event | Ascribe Investments III LLC | Basic Energy Services, Inc. | |||||
Subsequent Event [Line Items] | |||||
Ownership percent | 85.06% | ||||
Subsequent event | Public Shareholders | Basic Energy Services, Inc. | |||||
Subsequent Event [Line Items] | |||||
Ownership percent | 14.94% | ||||
Subsequent event | Exchange Agreement | Series A Participating Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Shares issues | 118,805 | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||
Cash paid in exchange transaction | $ 1,500,000 | ||||
Subsequent event | 10.75 % Senior Notes due 2023 | |||||
Subsequent Event [Line Items] | |||||
Stated interest rate | 10.75% | ||||
Aggregate principal amount | $ 300,000,000 | ||||
Subsequent event | 10.75 % Senior Notes due 2023 | Ascribe Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Stated interest rate | 10.75% | ||||
Aggregate principal amount | $ 34,400,000 | ||||
Subsequent event | Secured Debt | Senior Secured Promissory Note | |||||
Subsequent Event [Line Items] | |||||
Aggregate principal amount | $ 15,000,000 |