Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35504 | |
Entity Registrant Name | FORUM ENERGY TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1488595 | |
Entity Address, Address Line One | 10344 Sam Houston Park Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77064 | |
City Area Code | (281) | |
Local Phone Number | 949-2500 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | FET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,149,539 | |
Entity Central Index Key | 0001401257 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 188,957 | $ 155,174 |
Cost of sales | 136,855 | 116,555 |
Gross profit | 52,102 | 38,619 |
Operating expenses | ||
Selling, general and administrative expenses | 45,511 | 44,305 |
Loss (gain) on disposal of assets and other | (260) | 22 |
Total operating expenses | 45,251 | 44,327 |
Operating income (loss) | 6,851 | (5,708) |
Other expense (income) | ||
Interest expense | 4,549 | 7,624 |
Foreign exchange and other losses (gains), net | 2,972 | (5,986) |
Total other expense | 7,521 | 1,638 |
Loss before income taxes | (670) | (7,346) |
Income tax expense | 2,816 | 1,853 |
Net loss | $ (3,486) | $ (9,199) |
Weighted average shares outstanding | ||
Basic (in shares) | 10,179 | 5,683 |
Diluted (in shares) | 10,179 | 5,683 |
Loss per share | ||
Basic (in USD per share) | $ (0.34) | $ (1.62) |
Diluted (in USD per share) | $ (0.34) | $ (1.62) |
Other comprehensive income (loss), net of tax of $0: | ||
Net loss | $ (3,486) | $ (9,199) |
Change in foreign currency translation | 4,158 | (6,992) |
Gain on pension liability | 15 | 30 |
Comprehensive income (loss) | $ 687 | $ (16,161) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Other comprehensive income (loss), tax | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 46,764 | $ 51,029 |
Accounts receivable—trade, net of allowances of $11,102 and $10,690 | 164,033 | 154,247 |
Inventories, net | 287,614 | 269,828 |
Prepaid expenses and other current assets | 23,196 | 21,957 |
Accrued revenue | 671 | 665 |
Costs and estimated profits in excess of billings | 14,538 | 15,139 |
Total current assets | 536,816 | 512,865 |
Property and equipment, net of accumulated depreciation | 62,596 | 62,963 |
Operating lease assets | 57,039 | 57,270 |
Deferred financing costs, net | 1,086 | 1,166 |
Intangible assets, net | 185,629 | 191,481 |
Deferred income taxes, net | 99 | 184 |
Other long-term assets | 6,691 | 8,828 |
Total assets | 849,956 | 834,757 |
Current liabilities | ||
Current portion of long-term debt | 988 | 782 |
Accounts payable—trade | 129,934 | 118,261 |
Accrued liabilities | 58,839 | 76,544 |
Deferred revenue | 13,420 | 14,401 |
Billings in excess of costs and profits recognized | 421 | 305 |
Total current liabilities | 203,602 | 210,293 |
Long-term debt, net of current portion | 151,999 | 239,128 |
Deferred income taxes, net | 1,051 | 902 |
Operating lease liabilities | 64,299 | 64,626 |
Other long-term liabilities | 12,162 | 12,773 |
Total liabilities | 433,113 | 527,722 |
Commitments and contingencies | ||
Equity | ||
Common stock, $0.01 par value, 14,800,000 shares authorized, 10,858,424 and 6,223,454 shares issued | 109 | 62 |
Additional paid-in capital | 1,366,184 | 1,253,613 |
Treasury stock at cost, 708,885 and 570,247 shares | (142,057) | (138,560) |
Retained deficit | (684,081) | (680,595) |
Accumulated other comprehensive loss | (123,312) | (127,485) |
Total equity | 416,843 | 307,035 |
Total liabilities and equity | $ 849,956 | $ 834,757 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable allowance | $ 11,102 | $ 10,690 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 14,800,000 | 14,800,000 |
Common stock, shares issued (in shares) | 10,858,424 | 6,223,454 |
Treasury stock, common shares (in shares) | 708,885 | 570,247 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (3,486) | $ (9,199) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 2,570 | 3,423 |
Amortization of intangible assets | 6,016 | 6,218 |
Inventory write down | 892 | 194 |
Stock-based compensation expense | 841 | 2,151 |
Deferred income taxes | 421 | (266) |
Noncash losses and other, net | 1,398 | 2,283 |
Changes in operating assets and liabilities | ||
Accounts receivable—trade | (10,047) | (9,168) |
Inventories | (18,123) | (23,031) |
Prepaid expenses and other assets | 1,037 | 1,298 |
Cost and estimated profit in excess of billings | 769 | (6,871) |
Accounts payable, deferred revenue and other accrued liabilities | (5,527) | 11,851 |
Billings in excess of costs and estimated profits earned | 111 | (3,758) |
Net cash used in operating activities | (23,128) | (24,875) |
Cash flows from investing activities | ||
Capital expenditures for property and equipment | (1,083) | (860) |
Proceeds from sale of property and equipment | 264 | 118 |
Net cash used in investing activities | (819) | (742) |
Cash flows from financing activities | ||
Borrowings on Credit Facility | 119,426 | 95,883 |
Repayments on Credit Facility | (94,426) | (95,883) |
Payment of capital lease obligations | (273) | (239) |
Repurchases of stock | (5,370) | (360) |
Net cash provided by (used in) financing activities | 19,357 | (599) |
Effect of exchange rate changes on cash | 325 | (40) |
Net decrease in cash, cash equivalents and restricted cash | (4,265) | (26,256) |
Cash, cash equivalents and restricted cash at beginning of period | 51,029 | 46,858 |
Cash, cash equivalents and restricted cash at end of period | 46,764 | 20,602 |
Noncash activities | ||
Operating lease right of use assets obtained in exchange for lease obligations | 1,835 | 1,320 |
Finance lease right of use assets obtained in exchange for lease obligations | 926 | 100 |
Conversion of debt to common stock | $ 113,650 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained deficit | Accumulated other comprehensive income / (loss) |
Balance at beginning of period at Dec. 31, 2021 | $ 329,126 | $ 61 | $ 1,249,962 | $ (135,562) | $ (684,307) | $ (101,028) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 2,151 | 2,151 | ||||
Restricted stock issuance, net of forfeitures | (360) | 1 | (361) | |||
Currency translation adjustment | (6,992) | (6,992) | ||||
Change in pension liability | 30 | 30 | ||||
Net loss | (9,199) | (9,199) | ||||
Balance at end of period at Mar. 31, 2022 | 314,756 | 62 | 1,251,752 | (135,562) | (693,506) | (107,990) |
Balance at beginning of period at Dec. 31, 2022 | 307,035 | 62 | 1,253,613 | (138,560) | (680,595) | (127,485) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 841 | 841 | ||||
Restricted stock issuance, net of forfeitures | (1,873) | 1 | (1,874) | |||
Conversion of debt to common stock | 113,650 | 46 | 113,604 | |||
Treasury stock | (3,497) | (3,497) | ||||
Currency translation adjustment | 4,158 | 4,158 | ||||
Change in pension liability | 15 | 15 | ||||
Net loss | (3,486) | (3,486) | ||||
Balance at end of period at Mar. 31, 2023 | $ 416,843 | $ 109 | $ 1,366,184 | $ (142,057) | $ (684,081) | $ (123,312) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Forum Energy Technologies, Inc. (the “Company,” “FET,” “we,” “our,” or “us”), a Delaware corporation, is a global company serving the oil, natural gas, industrial and renewable energy industries. With headquarters located in Houston, Texas, FET provides value added solutions that increase the safety and efficiency of energy exploration and production. Basis of Presentation The Company's accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions have been eliminated in consolidation. In management's opinion, all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the Company’s financial position, results of operations and cash flows have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any other interim period. These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022, which are included in the Company’s 2022 Annual Report on Form 10-K filed with the SEC on February 28, 2023. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, which the Company adopts as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's consolidated financial statements upon adoption. Accounting Standard Adopted in 2023 Inflation Reduction Act of 2022. In August 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. The IRA, among other provisions, imposes a 15% corporate alternative minimum tax on the adjusted financial statement income of certain large corporations effective for tax years beginning after December 31, 2022 and a 1% excise tax on stock repurchases made by publicly traded U.S. corporations after December 31, 2022. The adoption of this standard did not have a material impact on our consolidated financial statements. Reference Rate Reform (Topic 848) . In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04 , which provides temporary, optional practical expedients and exceptions to enable a smoother transition to the new reference rates which will replace the London Interbank Offered Rate (“LIBOR”) and other reference rates expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which expanded the scope to include derivative instruments impacted by the discounting transition. In December 2022, the FASB issued ASU 2022-06, which extended the temporary accounting rules from December 31, 2022 to December 31, 2024. Effective April 2023, the Company transitioned its Credit Facility from LIBOR to the Secured Overnight Financing Rate. The Company plans to adopt the guidance prospectively in second quarter 2023 and does not expect it to have a material impact on the Company's consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. For a detailed discussion of our revenue recognition policies, refer to the Company’s 2022 Annual Report on Form 10-K. Disaggregated Revenue Refer to Note 9 Business Segments for disaggregated revenue by product line and geography. Contract Balances Contract balances are determined on a contract by contract basis. Contract assets represent revenue recognized for goods and services provided to our customers when payment is conditioned on something other than the passage of time. Similarly, the Company records a contract liability when we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract. Such contract liabilities typically result from billings in excess of costs incurred on construction contracts and advance payments received on product sales. The following table reflects the changes in our contract assets and contract liabilities balances for the three months ended March 31, 2023 (in thousands): March 31, 2023 December 31, 2022 Decrease $ % Accrued revenue $ 671 $ 665 Costs and estimated profits in excess of billings 14,538 15,139 Contract assets - current 15,209 15,804 Contract assets - noncurrent 2,413 2,638 Contract assets $ 17,622 $ 18,442 $ (820) (4) % Deferred revenue $ 13,420 $ 14,401 Billings in excess of costs and profits recognized 421 305 Contract liabilities $ 13,841 $ 14,706 $ (865) (6) % During the three months ended March 31, 2023, our contract assets decreased by $0.8 million and our contract liabilities decreased by $0.9 million primarily due to the timing of milestone billings for projects in our Subsea Technologies product line. During the three months ended March 31, 2023, we recognized $7.3 million of revenue that was included in the contract liability balance at the beginning of the period. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company's significant components of inventory at March 31, 2023 and December 31, 2022 were as follows (in thousands): March 31, 2023 December 31, 2022 Raw materials and parts $ 95,435 $ 94,182 Work in process 34,240 27,489 Finished goods 197,566 187,448 Total inventories 327,241 309,119 Less: inventory reserve (39,627) (39,291) Inventories, net $ 287,614 $ 269,828 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following as of March 31, 2023 and December 31, 2022, respectively (in thousands): March 31, 2023 Gross Carrying Amount Accumulated Amortization Net Intangibles Amortization Period (In Years) Customer relationships $ 266,996 $ (151,891) $ 115,105 10 - 35 Patents and technology 88,984 (36,794) 52,190 5 - 19 Non-compete agreements 188 (188) — 5 Trade names 42,710 (27,599) 15,111 7 - 19 Trademarks 5,089 (1,866) 3,223 15 Total intangible assets $ 403,967 $ (218,338) $ 185,629 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Intangibles Amortization Period (In Years) Customer relationships $ 266,537 $ (147,496) $ 119,041 10 - 35 Patents and technology 88,863 (35,298) 53,565 5 - 19 Non-compete agreements 188 (188) — 5 Trade names 42,638 (27,071) 15,567 7 - 19 Trademarks 5,089 (1,781) 3,308 15 Total intangible assets $ 403,315 $ (211,834) $ 191,481 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes payable and lines of credit as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): March 31, 2023 December 31, 2022 2025 Notes $ 134,208 $ 256,970 Unamortized debt discount (7,143) (15,314) Debt issuance cost (1,753) (3,759) Credit Facility 25,000 — Other debt 2,675 2,013 Total debt 152,987 239,910 Less: current portion (988) (782) Long-term debt, net of current portion $ 151,999 $ 239,128 2025 Notes In August 2020, we exchanged $315.5 million principal amount of our previous 6.25% unsecured notes due 2021 for new 9.00% convertible secured notes due August 2025 (the “2025 Notes”). The 2025 Notes pay interest at the rate of 9.00%, of which 6.25% is payable in cash and 2.75% is payable in cash or additional notes, at the Company’s option. The 2025 Notes are secured by a first lien on substantially all of the Company’s assets, except for Credit Facility priority collateral, which secures the 2025 Notes on a second lien basis. During the quarter ended March 31, 2023, $122.8 million or 48% of the principal amount of the 2025 Notes mandatorily converted into approximately 4.5 million shares of common stock. Credit Facility In September 2021, we amended our senior secured revolving credit facility ( “ Credit Facility”) to, among other things, extend the maturity date to September 2026, reduce the aggregate amount of the commitment under the Credit Facility, and change the interest rate applicable to outstanding loans. Following such amendment, our Credit Facility provides revolving credit commitments of $179.0 million (with a sublimit of up to $45.0 million available for the issuance of letters of credit for the account of the Company and certain of its domestic subsidiaries) (the “U.S. Line”), of which up to $20.0 million is available to certain of our Canadian subsidiaries for loans in U.S. or Canadian dollars (with a sublimit of up to $3.0 million available for the issuance of letters of credit for the account of our Canadian subsidiaries) (the “Canadian Line”). Availability under the Credit Facility is subject to a borrowing base calculated by reference to eligible accounts receivable in the U.S., Canada and certain other jurisdictions (subject to a cap) and eligible inventory in the U.S. and Canada. Such eligible accounts receivable and eligible inventory serve as priority collateral for the Credit Facility, which is also secured on a second lien basis by substantially all of the Company's other assets. The amount of eligible inventory included in the borrowing base is restricted to the lesser of $125.0 million (subject to a quarterly reduction of $0.5 million) and 80.0% of the total borrowing base. Our borrowing capacity under the Credit Facility could be reduced or eliminated, depending on future fluctuations in our receivables and inventory. As of March 31, 2023, our total borrowing base was $178.3 million, of which $25.0 million was drawn and $24.0 million was used for security of outstanding letters of credit, resulting in remaining availability of $129.3 million. Prior to the amendment discussed below, borrowings under the U.S. Line were subject to an interest rate equal to, at the Company's option, either (a) the LIBOR, subject to a floor of 0.00%, plus a margin of 2.25% to 2.75%, or (b) a base rate plus a margin of 1.25% to 1.75%, in each case based upon the Company's quarterly total net leverage ratio, with the U.S. Line base rate determined by reference to the greatest of (i) the federal funds rate plus 0.50% per annum, (ii) the one-month adjusted LIBOR plus 1.00% per annum, and (iii) the rate of interest announced, from time to time, by Wells Fargo at its principal office in San Francisco as its prime rate, subject to a floor of 0.00%. Borrowings under the Canadian Line were subject to an interest rate during the reporting period equal to, our subsidiary's option, either (a) the Canadian Dollar Offered Rate (“CDOR”), subject to a floor of 0.00%, plus a margin of 2.25% to 2.75%, or (b) a base rate plus a margin of 1.25% to 1.75%, in each case based upon the Company's quarterly net leverage ratio. The Canadian line base rate is determined by reference to the greater of (i) the one-month CDOR plus 1.00% and (ii) the prime rate for Canadian dollar commercial loans made in Canada as reported by Thomson Reuters, subject to a floor of 0.00%. The weighted average interest rate under the Credit Facility was approximately 7.96% for the three months ended March 31, 2023. The Credit Facility also provides for a commitment fee in the amount of (a) 0.375% on the unused portion of commitments if average usage of the Credit Facility is greater than 50% and (b) 0.500% on the unused portion of commitments if average usage of the Credit Facility is less than or equal to 50%. If excess availability under the Credit Facility falls below the greater of 12.5% of the borrowing base and $22.4 million, we will be required to maintain a fixed charge coverage ratio of at least 1.00:1.00 as of the end of each fiscal quarter until excess availability under the Credit Facility exceeds such thresholds for at least 60 consecutive days. Furthermore, the Credit Facility includes an obligation to prepay outstanding loans with cash on hand in excess of certain thresholds and includes a cross-default to the 2025 Notes. In April 2023, the Credit Facility was amended to, among other things, (a) replace the interest rate benchmark for borrowings denominated in U.S. dollars from LIBOR to the Secured Overnight Financing Rate; (b) reset existing capacity under the general "Permitted Dispositions" basket; and (c) increase the domestic letter of credit sublimit from $45.0 million to $70.0 million. Deferred Loan Costs We have incurred loan costs that have been deferred and are amortized to interest expense over the term of the 2025 Notes and the Credit Facility. In connection with the September 2021 Credit Facility amendment, we deferred approximately $1.6 million of loan costs that will be amortized over the facility's remaining life. Other Debt Other debt consists primarily of various finance leases of equipment. Letters of Credit and Guarantees We execute letters of credit in the normal course of business to secure the delivery of product from specific vendors and also to guarantee our fulfillment of performance obligations relating to certain large contracts. We had $24.0 million and $21.8 million in total outstanding letters of credit as of March 31, 2023 and December 31, 2022, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim periods, our income tax expense or benefit is computed based on our estimated annual effective tax rate and any discrete items that impact the interim periods. For the three months ended March 31, 2023 and 2022, the Company recorded a tax expense of $2.8 million and $1.9 million, respectively. The estimated annual effective tax rates for all periods were impacted by losses in jurisdictions where the recording of a tax benefit is not available. Furthermore, the tax expense or benefit recorded can vary from period to period depending on the Company’s relative mix of earnings and losses by jurisdiction.We have deferred tax assets related to net operating loss and other tax carryforwards in the U.S. and in certain states and foreign jurisdictions. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning and recent operating results. As of March 31, 2023, we do not anticipate being able to fully utilize all of the losses prior to their expiration in the following jurisdictions: the U.S., the U.K., Germany, Singapore, China and Saudi Arabia. As a result, we have certain valuation allowances against our deferred tax assets as of March 31, 2023. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company had $25.0 million of borrowings outstanding under the Credit Facility as of March 31, 2023. The Credit Facility incurs interest at a variable interest rate, and therefore, the carrying amount approximates fair value. The fair value of the debt is classified as a Level 2 measurement because interest rates charged are similar to other financial instruments with similar terms and maturities. The fair value of our 2025 Notes is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At March 31, 2023, the fair value and the carrying value of our 2025 Notes approximated $130.3 million and $125.3 million, respectively. At December 31, 2022, the fair value and the carrying value of our 2025 Notes approximated $272.8 million and $237.9 million, respectively. There were no other significant outstanding financial instruments as of March 31, 2023 and December 31, 2022 that required measuring the amounts at fair value on a recurring basis. We did not change our valuation techniques associated with recurring fair value measurements from prior periods, and there were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2023. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company reports results of operations in the following three reporting segments: Drilling & Downhole, Completions, and Production. The amounts indicated below as “Corporate” relate to costs and assets not allocated to the reportable segments. Summary financial data by segment follows (in thousands): Three Months Ended March 31, 2023 2022 Revenue Drilling & Downhole $ 76,794 $ 71,260 Completions 73,667 52,542 Production 38,995 31,505 Eliminations (499) (133) Total revenue $ 188,957 $ 155,174 Segment operating income (loss) Drilling & Downhole $ 8,438 $ 5,986 Completions 3,556 (715) Production 1,629 (1,752) Corporate (7,032) (9,205) Total segment operating income (loss) 6,591 (5,686) Loss (gain) on disposal of assets and other (260) 22 Operating income (loss) $ 6,851 $ (5,708) A summary of consolidated assets by reportable segment is as follows (in thousands): March 31, 2023 December 31, 2022 Drilling & Downhole $ 348,581 $ 340,819 Completions 373,222 366,771 Production 98,427 95,089 Corporate 29,726 32,078 Total assets $ 849,956 $ 834,757 Corporate assets primarily include cash, certain prepaid assets and deferred loan costs. The following table presents our revenues disaggregated by product line (in thousands): Three Months Ended March 31, 2023 2022 Drilling Technologies $ 40,777 $ 29,235 Downhole Technologies 23,211 19,564 Subsea Technologies 12,806 22,461 Stimulation and Intervention 47,326 30,159 Coiled Tubing 26,341 22,383 Production Equipment 19,896 15,167 Valve Solutions 19,099 16,338 Eliminations (499) (133) Total revenue $ 188,957 $ 155,174 The following table presents our revenues disaggregated by geography (in thousands): Three Months Ended March 31, 2023 2022 United States $ 129,186 $ 97,232 Middle East 17,982 11,153 Canada 13,668 11,389 Europe & Africa 11,672 15,377 Latin America 8,768 10,964 Asia-Pacific 7,681 9,059 Total revenue $ 188,957 $ 155,174 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company is, and in the future could be, involved in various pending or threatened legal actions, some of which may or may not be covered by insurance. Management has reviewed such pending judicial and legal proceedings, the reasonably anticipated costs and expenses in connection with such proceedings, and the availability and limits of insurance coverage, and has established reserves that are believed to be appropriate in light of those outcomes that are believed to be probable and can be estimated. The reserves accrued at March 31, 2023 and December 31, 2022, respectively, are immaterial. In the opinion of management, the Company’s ultimate liability, if any, with respect to these actions is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. In October of 2017, one of our subsidiaries, Global Tubing LLC (“Global Tubing”), filed suit against Tenaris Coiled Tubes, LLC and Tenaris, S.A. (together “Tenaris”) in the United States District Court for the Southern District of Texas seeking a declaration that its DURACOIL TM products do not infringe certain Tenaris patents related to coiled tubing. Tenaris filed counterclaims against Global Tubing alleging DURACOIL TM products infringe three patents. Tenaris sought unspecified damages and a permanent injunction. In response, Global Tubing alleged that its products do not infringe and the Tenaris patents are invalid and unenforceable. On March 20, 2023, the court agreed with Global Tubing, finding all patents unenforceable and dismissing all Tenaris infringement claims. Global Tubing intends to seek an award of its attorneys’ fees and costs incurred as a result of the litigation. For further disclosure regarding certain litigation matters, refer to Note 12 of the notes to the consolidated financial statements included in Item 8 of the Company’s 2022 Annual Report on Form 10-K filed with the SEC on February 28, 2023. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net loss $ (3,486) $ (9,199) Weighted average shares outstanding - basic 10,179 5,683 Dilutive effect of stock options and restricted stock — — Dilutive effect of convertible notes due 2025 — — Weighted average shares outstanding - diluted 10,179 5,683 Loss per share Basic $ (0.34) $ (1.62) Diluted $ (0.34) $ (1.62) For the three months ended March 31, 2023 and 2022, we excluded all potentially dilutive restricted shares and stock options in calculating diluted earnings per share as the effect was anti-dilutive due to net losses incurred for these periods. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock-based compensation During the three months ended March 31, 2023, the Company granted 86,912 time-based restricted stock units to employees that vest ratably over three years. In addition, during the three months ended March 31, 2023, the Company granted 86,912 performance restricted stock units to employees (assuming target performance) that vest based upon the total shareholder return of the Company's common stock as compared to a group of peer companies over three different performance periods. The performance periods run from January 1, 2023 through December 31, 2023, January 1, 2023 through December 31, 2024 and January 1, 2023 through December 31, 2025, and 1/3 of each award is allocated to each performance period. The performance restricted stock units may settle for between 0% and 200% of the target units granted in shares of the Company’s common stock. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has sold and purchased inventory, services and fixed assets to and from affiliates of a former director. The dollar amounts of these related party activities are not significant to the Company’s unaudited condensed consolidated financial statements. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, which the Company adopts as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's consolidated financial statements upon adoption. Accounting Standard Adopted in 2023 Inflation Reduction Act of 2022. In August 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. The IRA, among other provisions, imposes a 15% corporate alternative minimum tax on the adjusted financial statement income of certain large corporations effective for tax years beginning after December 31, 2022 and a 1% excise tax on stock repurchases made by publicly traded U.S. corporations after December 31, 2022. The adoption of this standard did not have a material impact on our consolidated financial statements. Reference Rate Reform (Topic 848) . In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04 , which provides temporary, optional practical expedients and exceptions to enable a smoother transition to the new reference rates which will replace the London Interbank Offered Rate (“LIBOR”) and other reference rates expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which expanded the scope to include derivative instruments impacted by the discounting transition. In December 2022, the FASB issued ASU 2022-06, which extended the temporary accounting rules from December 31, 2022 to December 31, 2024. Effective April 2023, the Company transitioned its Credit Facility from LIBOR to the Secured Overnight Financing Rate. The Company plans to adopt the guidance prospectively in second quarter 2023 and does not expect it to have a material impact on the Company's consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Contract Assets and Contract Liabilities | The following table reflects the changes in our contract assets and contract liabilities balances for the three months ended March 31, 2023 (in thousands): March 31, 2023 December 31, 2022 Decrease $ % Accrued revenue $ 671 $ 665 Costs and estimated profits in excess of billings 14,538 15,139 Contract assets - current 15,209 15,804 Contract assets - noncurrent 2,413 2,638 Contract assets $ 17,622 $ 18,442 $ (820) (4) % Deferred revenue $ 13,420 $ 14,401 Billings in excess of costs and profits recognized 421 305 Contract liabilities $ 13,841 $ 14,706 $ (865) (6) % |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company's significant components of inventory at March 31, 2023 and December 31, 2022 were as follows (in thousands): March 31, 2023 December 31, 2022 Raw materials and parts $ 95,435 $ 94,182 Work in process 34,240 27,489 Finished goods 197,566 187,448 Total inventories 327,241 309,119 Less: inventory reserve (39,627) (39,291) Inventories, net $ 287,614 $ 269,828 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consisted of the following as of March 31, 2023 and December 31, 2022, respectively (in thousands): March 31, 2023 Gross Carrying Amount Accumulated Amortization Net Intangibles Amortization Period (In Years) Customer relationships $ 266,996 $ (151,891) $ 115,105 10 - 35 Patents and technology 88,984 (36,794) 52,190 5 - 19 Non-compete agreements 188 (188) — 5 Trade names 42,710 (27,599) 15,111 7 - 19 Trademarks 5,089 (1,866) 3,223 15 Total intangible assets $ 403,967 $ (218,338) $ 185,629 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Intangibles Amortization Period (In Years) Customer relationships $ 266,537 $ (147,496) $ 119,041 10 - 35 Patents and technology 88,863 (35,298) 53,565 5 - 19 Non-compete agreements 188 (188) — 5 Trade names 42,638 (27,071) 15,567 7 - 19 Trademarks 5,089 (1,781) 3,308 15 Total intangible assets $ 403,315 $ (211,834) $ 191,481 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes payable and lines of credit as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): March 31, 2023 December 31, 2022 2025 Notes $ 134,208 $ 256,970 Unamortized debt discount (7,143) (15,314) Debt issuance cost (1,753) (3,759) Credit Facility 25,000 — Other debt 2,675 2,013 Total debt 152,987 239,910 Less: current portion (988) (782) Long-term debt, net of current portion $ 151,999 $ 239,128 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Segment and Assets by Reportable Segment | Summary financial data by segment follows (in thousands): Three Months Ended March 31, 2023 2022 Revenue Drilling & Downhole $ 76,794 $ 71,260 Completions 73,667 52,542 Production 38,995 31,505 Eliminations (499) (133) Total revenue $ 188,957 $ 155,174 Segment operating income (loss) Drilling & Downhole $ 8,438 $ 5,986 Completions 3,556 (715) Production 1,629 (1,752) Corporate (7,032) (9,205) Total segment operating income (loss) 6,591 (5,686) Loss (gain) on disposal of assets and other (260) 22 Operating income (loss) $ 6,851 $ (5,708) A summary of consolidated assets by reportable segment is as follows (in thousands): March 31, 2023 December 31, 2022 Drilling & Downhole $ 348,581 $ 340,819 Completions 373,222 366,771 Production 98,427 95,089 Corporate 29,726 32,078 Total assets $ 849,956 $ 834,757 |
Schedule of Revenue from External Customers by Products and Services | The following table presents our revenues disaggregated by product line (in thousands): Three Months Ended March 31, 2023 2022 Drilling Technologies $ 40,777 $ 29,235 Downhole Technologies 23,211 19,564 Subsea Technologies 12,806 22,461 Stimulation and Intervention 47,326 30,159 Coiled Tubing 26,341 22,383 Production Equipment 19,896 15,167 Valve Solutions 19,099 16,338 Eliminations (499) (133) Total revenue $ 188,957 $ 155,174 |
Schedule of Revenue Disaggregated by Geography | The following table presents our revenues disaggregated by geography (in thousands): Three Months Ended March 31, 2023 2022 United States $ 129,186 $ 97,232 Middle East 17,982 11,153 Canada 13,668 11,389 Europe & Africa 11,672 15,377 Latin America 8,768 10,964 Asia-Pacific 7,681 9,059 Total revenue $ 188,957 $ 155,174 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net loss $ (3,486) $ (9,199) Weighted average shares outstanding - basic 10,179 5,683 Dilutive effect of stock options and restricted stock — — Dilutive effect of convertible notes due 2025 — — Weighted average shares outstanding - diluted 10,179 5,683 Loss per share Basic $ (0.34) $ (1.62) Diluted $ (0.34) $ (1.62) |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Contract with Customer, Asset, after Allowance for Credit Loss [Abstract] | ||
Accrued revenue | $ 671 | $ 665 |
Costs and estimated profits in excess of billings | 14,538 | 15,139 |
Contract assets - current | 15,209 | 15,804 |
Contract assets - noncurrent | 2,413 | 2,638 |
Contract assets | 17,622 | 18,442 |
Decrease in contract with customer assets | $ (820) | |
Decrease in contract with customer assets (as percent) | (4.00%) | |
Contract with Customer, Liability [Abstract] | ||
Deferred revenue | $ 13,420 | 14,401 |
Billings in excess of costs and profits recognized | 421 | 305 |
Contract liabilities | 13,841 | $ 14,706 |
Decrease in contract with customer liabilities | $ (865) | |
Decrease in contract with customer liability (as percent) | (6.00%) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Decrease in contract with customer assets | $ (820) |
Decrease in contract with customer liabilities | (865) |
Revenue recognized | $ 7,300 |
Contract with customer, contract duration (less than) | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 95,435 | $ 94,182 |
Work in process | 34,240 | 27,489 |
Finished goods | 197,566 | 187,448 |
Total inventories | 327,241 | 309,119 |
Less: inventory reserve | (39,627) | (39,291) |
Inventories, net | $ 287,614 | $ 269,828 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (218,338) | $ (211,834) |
Gross Carrying Amount | 403,967 | 403,315 |
Net Intangibles | 185,629 | 191,481 |
Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 266,996 | 266,537 |
Accumulated Amortization | (151,891) | (147,496) |
Net Intangibles | 115,105 | 119,041 |
Patents and technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 88,984 | 88,863 |
Accumulated Amortization | (36,794) | (35,298) |
Net Intangibles | 52,190 | 53,565 |
Non-compete agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 188 | 188 |
Accumulated Amortization | (188) | (188) |
Net Intangibles | $ 0 | $ 0 |
Amortization period | 5 years | 5 years |
Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 42,710 | $ 42,638 |
Accumulated Amortization | (27,599) | (27,071) |
Net Intangibles | 15,111 | 15,567 |
Trademarks | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,089 | 5,089 |
Accumulated Amortization | (1,866) | (1,781) |
Net Intangibles | $ 3,223 | $ 3,308 |
Amortization period | 15 years | 15 years |
Minimum | Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period | 10 years | 10 years |
Minimum | Patents and technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period | 5 years | 5 years |
Minimum | Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period | 7 years | 7 years |
Maximum | Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period | 35 years | 35 years |
Maximum | Patents and technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period | 19 years | 19 years |
Maximum | Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period | 19 years | 19 years |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Unamortized debt discount | $ (7,143) | $ (15,314) |
Debt issuance cost | (1,753) | (3,759) |
Total debt | 152,987 | 239,910 |
Less: current portion | (988) | (782) |
Long-term debt, net of current portion | 151,999 | 239,128 |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 134,208 | 256,970 |
Credit Facility | 2017 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 25,000 | 0 |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,675 | $ 2,013 |
Debt - Narrative (Details)
Debt - Narrative (Details) shares in Millions | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2021 USD ($) | Aug. 31, 2020 USD ($) | Mar. 31, 2023 USD ($) shares | Apr. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | $ 24,000,000 | $ 21,800,000 | |||
Revolving Credit Facility | 2017 Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 1% | ||||
Revolving Credit Facility | 2017 Credit Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 1.25% | ||||
Revolving Credit Facility | 2017 Credit Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 1.75% | ||||
Revolving Credit Facility | 2017 Credit Facility | Federal Funds Effective Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 0.50% | ||||
Revolving Credit Facility | 2017 Credit Facility | CDOR Rate | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 1% | ||||
Revolving Credit Facility | Credit Facility Unused Portion Greater Than 50% | |||||
Debt Instrument [Line Items] | |||||
Unused capacity commitment fee percentage | 0.375% | ||||
Revolving Credit Facility | Credit Facility Unused Portion Less Than Or Equal To 50% | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.50% | ||||
2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 315,500,000 | ||||
Debt conversion, interest rate of debt | 9% | ||||
Debt conversion, percent payable in cash | 6.25% | ||||
Debt conversion, percent payable in cash or additional notes (as percent) | 2.75% | 48% | |||
Debt instrument, mandatorily convertible, face amount | $ 122,800,000 | ||||
Debt conversion shares amount (in shares) | shares | 4.5 | ||||
Conversion ratio | 0.037037 | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt conversion, interest rate of debt | 6.25% | ||||
Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, carrying value | $ 25,000,000 | ||||
Line of credit facility, remaining borrowing capacity | 129,300,000 | ||||
Percentage of borrowing base | 50% | ||||
Credit Facility | 2017 Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 178,300,000 | ||||
Debt instrument, carrying value | $ 25,000,000 | ||||
Credit Facility | 12.5% of Borrowing Base | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 22,400,000 | ||||
Percentage of borrowing base | 12.50% | ||||
Credit Facility | 12.5% of Borrowing Base | Minimum | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1 | ||||
Fixed charge coverage ratio consecutive days threshold | 60 days | ||||
Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 179,000,000 | ||||
Weighted average interest rate | 7.96% | ||||
Deferred loan costs | $ 1,600,000 | ||||
Credit Facility | Revolving Credit Facility | LIBOR Floor | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 0% | ||||
Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.25% | ||||
Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.75% | ||||
Credit Facility | Revolving Credit Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 1.25% | ||||
Credit Facility | Revolving Credit Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 1.75% | ||||
Credit Facility | Revolving Credit Facility | CDOR Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.25% | ||||
Credit Facility | Revolving Credit Facility | CDOR Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.75% | ||||
Credit Facility | Revolving Credit Facility | 80% of Borrowing Base | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | $ 125,000,000 | ||||
Current borrowing capacity quarterly reduction | $ 500,000 | ||||
Borrowing base percentage | 80% | ||||
Credit Facility | Revolving Credit Facility | Canadian Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||||
Credit Facility | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 45,000,000 | ||||
Credit Facility | Letter of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 70,000,000 | ||||
Credit Facility | Letter of Credit | 2017 Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | $ 24,000,000 | ||||
Credit Facility | Letter of Credit | Canadian Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 2,816 | $ 1,853 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets amount outstanding | $ 0 | $ 0 |
Credit Facility | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | 25,000,000 | |
2025 Notes | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | 125,300,000 | 237,900,000 |
Fair value | $ 130,300,000 | $ 272,800,000 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Schedule of
Business Segments - Schedule of Income Statement by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 188,957 | $ 155,174 |
Total segment operating income (loss) | 6,851 | (5,708) |
Loss (gain) on disposal of assets and other | (260) | 22 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income (loss) | 6,591 | (5,686) |
Operating Segments | Drilling & Downhole | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 76,794 | 71,260 |
Total segment operating income (loss) | 8,438 | 5,986 |
Operating Segments | Completions | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 73,667 | 52,542 |
Total segment operating income (loss) | 3,556 | (715) |
Operating Segments | Production | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 38,995 | 31,505 |
Total segment operating income (loss) | 1,629 | (1,752) |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (499) | (133) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income (loss) | $ (7,032) | $ (9,205) |
Business Segments - Assets by S
Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Assets | $ 849,956 | $ 834,757 |
Operating Segments | Drilling & Downhole | ||
Segment Reporting Information [Line Items] | ||
Assets | 348,581 | 340,819 |
Operating Segments | Completions | ||
Segment Reporting Information [Line Items] | ||
Assets | 373,222 | 366,771 |
Operating Segments | Production | ||
Segment Reporting Information [Line Items] | ||
Assets | 98,427 | 95,089 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 29,726 | $ 32,078 |
Business Segments - Schedule _2
Business Segments - Schedule of Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 188,957 | $ 155,174 |
Operating Segments | Sales | Drilling Technologies | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 40,777 | 29,235 |
Operating Segments | Sales | Downhole Technologies | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 23,211 | 19,564 |
Operating Segments | Sales | Subsea Technologies | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 12,806 | 22,461 |
Operating Segments | Sales | Stimulation and Intervention | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 47,326 | 30,159 |
Operating Segments | Sales | Coiled Tubing | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 26,341 | 22,383 |
Operating Segments | Sales | Production Equipment | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 19,896 | 15,167 |
Operating Segments | Sales | Valve Solutions | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 19,099 | 16,338 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ (499) | $ (133) |
Business Segments - Schedule _3
Business Segments - Schedule of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 188,957 | $ 155,174 |
Sales | United States | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 129,186 | 97,232 |
Sales | Middle East | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 17,982 | 11,153 |
Sales | Canada | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 13,668 | 11,389 |
Sales | Europe & Africa | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 11,672 | 15,377 |
Sales | Latin America | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 8,768 | 10,964 |
Sales | Asia-Pacific | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 7,681 | $ 9,059 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | 1 Months Ended |
Oct. 31, 2017 patent | |
Tenaris Litigation | |
Loss Contingencies [Line Items] | |
Loss contingency, patents allegedly infringed, number | 3 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (3,486) | $ (9,199) |
Weighted average shares outstanding - basic (in shares) | 10,179 | 5,683 |
Dilutive effect of stock options and restricted stock (in shares) | 0 | 0 |
Dilutive effect of convertible notes due 2025 (in shares) | 0 | 0 |
Weighted average shares outstanding - diluted | 10,179 | 5,683 |
Loss per share | ||
Basic (in USD per share) | $ (0.34) | $ (1.62) |
Diluted (in USD per share) | $ (0.34) | $ (1.62) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
Time Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity instruments other than options granted (in shares) | 86,912 |
Award vesting period (in years) | 3 years |
Performance Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity instruments other than options granted (in shares) | 86,912 |
Performance Restricted Stock | Share-Based Payment Arrangement, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Performance Restricted Stock | Share-Based Payment Arrangement, Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Performance Restricted Stock | Share-Based Payment Arrangement, Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Common stock | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target units | 0% |
Common stock | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target units | 200% |