Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33816 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0287117 | |
Entity Address, Address Line One | 6720 N. Scottsdale Road | |
Entity Address, Address Line Two | Suite 190 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85253 | |
City Area Code | (602) | |
Local Phone Number | 903-7802 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | NES | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding (in shares) | 15,772,420 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Nuverra Environmental Solutions, Inc. | |
Entity Central Index Key | 0001403853 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 13,469 | $ 4,788 |
Restricted cash | 0 | 922 |
Accounts receivable, net of allowance for doubtful accounts of $1.0 million and $1.3 million at September 30, 2020 and December 31, 2019, respectively | 15,955 | 26,493 |
Inventories | 2,846 | 3,177 |
Prepaid expenses and other receivables | 3,405 | 3,264 |
Other current assets | 0 | 231 |
Assets held for sale | 778 | 2,664 |
Total current assets | 36,453 | 41,539 |
Property, plant and equipment, net of accumulated depreciation of $110.7 million and $98.0 million at September 30, 2020 and December 31, 2019, respectively | 157,274 | 190,817 |
Operating lease assets | 1,762 | 2,886 |
Equity investments | 35 | 39 |
Intangibles, net | 303 | 640 |
Other assets | 109 | 178 |
Total assets | 195,936 | 236,099 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 4,008 | 5,633 |
Accrued and other current liabilities | 9,639 | 10,064 |
Current portion of long-term debt | 6,153 | 6,430 |
Total current liabilities | 19,800 | 22,127 |
Long-term debt | 27,882 | 30,005 |
Noncurrent operating lease liabilities | 1,416 | 1,457 |
Deferred income taxes | 131 | 91 |
Long-term contingent consideration | 500 | 500 |
Other long-term liabilities | 7,828 | 7,487 |
Total liabilities | 57,557 | 61,667 |
Commitments and contingencies | ||
Shareholder's equity: | ||
Preferred stock $0.01 par value (1,000 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019) | 0 | 0 |
Common stock, $0.01 par value (75,000 shares authorized, 15,833 shares issued and 15,772 outstanding at September 30, 2020, and 15,781 shares issued and 15,735 outstanding at December 31, 2019) | 158 | 158 |
Additional paid-in capital | 338,564 | 337,628 |
Treasury stock (60 shares and 46 shares at September 30, 2020 and December 31, 2019, respectively) | (477) | (436) |
Accumulated deficit | (199,866) | (162,918) |
Total shareholders' equity | 138,379 | 174,432 |
Total liabilities and equity | $ 195,936 | $ 236,099 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1 | $ 1.3 |
Property, plant and equipment, accumulated depreciation | $ 110.7 | $ 98 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares, issued (in shares) | 15,833,000 | 15,781,000 |
Common stock, shares outstanding (in shares) | 15,772,000 | 15,735,000 |
Treasury stock, shares (in shares) | 60,000 | 46,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Service revenue | $ 22,666,000 | $ 38,862,000 | $ 80,093,000 | $ 119,101,000 |
Rental revenue | 1,130,000 | 4,236,000 | 6,111,000 | 11,864,000 |
Total revenue | 23,796,000 | 43,098,000 | 86,204,000 | 130,965,000 |
Costs and expenses: | ||||
Direct operating expenses | 19,022,000 | 34,297,000 | 69,049,000 | 101,371,000 |
General and administrative expenses | 4,084,000 | 4,774,000 | 13,453,000 | 15,529,000 |
Depreciation and amortization | 6,821,000 | 8,928,000 | 21,966,000 | 27,340,000 |
Impairment of long-lived assets | 0 | 120,000 | 15,579,000 | 237,000 |
Other, net | 0 | (4,000) | 0 | (10,000) |
Total costs and expenses | 29,927,000 | 48,115,000 | 120,047,000 | 144,467,000 |
Operating loss | (6,131,000) | (5,017,000) | (33,843,000) | (13,502,000) |
Interest expense, net | (1,014,000) | (1,279,000) | (3,290,000) | (3,997,000) |
Other income, net | 20,000 | 280,000 | 200,000 | 457,000 |
Reorganization items, net | 0 | 10,000 | 0 | (200,000) |
Loss before income taxes | (7,125,000) | (6,006,000) | (36,933,000) | (17,242,000) |
Income tax expense | 0 | (46,000) | (15,000) | (171,000) |
Net loss | $ (7,125,000) | $ (6,052,000) | $ (36,948,000) | $ (17,413,000) |
Loss per common share: | ||||
Net loss per basic common share (usd per share) | $ (0.45) | $ (0.39) | $ (2.34) | $ (1.11) |
Net loss per diluted common share (usd per share) | $ (0.45) | $ (0.39) | $ (2.34) | $ (1.11) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 15,771 | 15,715 | 15,762 | 15,657 |
Diluted (in shares) | 15,771 | 15,715 | 15,762 | 15,657 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adjustment due to adoption of ASC 842, Leases | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated DeficitAdjustment due to adoption of ASC 842, Leases |
Beginning balance (in shares) at Dec. 31, 2018 | 12,233 | 0 | |||||
Beginning balance at Dec. 31, 2018 | $ 196,427 | $ (823) | $ 122 | $ 303,463 | $ 0 | $ (107,158) | $ (823) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock for Rights Offering (in shares) | 3,382 | ||||||
Issuance of common stock for Rights Offering | 32,175 | $ 34 | 32,141 | ||||
Issuance of common stock to employees and directors (in shares) | 97 | ||||||
Issuance of common stock to employees and directors | 0 | $ 1 | (1) | ||||
Treasury stock acquired through surrender of shares for tax withholding (in shares) | (34) | ||||||
Treasury stock acquired through surrender of shares for tax withholding | (373) | $ (373) | |||||
Stock-based compensation | 852 | 852 | |||||
Net loss | (6,355) | (6,355) | |||||
Ending balance (in shares) at Mar. 31, 2019 | 15,712 | 34 | |||||
Ending balance at Mar. 31, 2019 | 221,903 | $ 157 | 336,455 | $ (373) | (114,336) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 12,233 | 0 | |||||
Beginning balance at Dec. 31, 2018 | 196,427 | $ (823) | $ 122 | 303,463 | $ 0 | (107,158) | $ (823) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (17,413) | ||||||
Ending balance (in shares) at Sep. 30, 2019 | 15,776 | 46 | |||||
Ending balance at Sep. 30, 2019 | 211,670 | $ 158 | 337,342 | $ (436) | (125,394) | ||
Beginning balance (in shares) at Mar. 31, 2019 | 15,712 | 34 | |||||
Beginning balance at Mar. 31, 2019 | 221,903 | $ 157 | 336,455 | $ (373) | (114,336) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock to employees and directors (in shares) | 34 | ||||||
Issuance of common stock to employees and directors | 0 | ||||||
Treasury stock acquired through surrender of shares for tax withholding (in shares) | (3) | ||||||
Treasury stock acquired through surrender of shares for tax withholding | (29) | $ (29) | |||||
Stock-based compensation | 563 | 563 | |||||
Net loss | (5,006) | (5,006) | |||||
Ending balance (in shares) at Jun. 30, 2019 | 15,746 | 37 | |||||
Ending balance at Jun. 30, 2019 | 217,431 | $ 157 | 337,018 | $ (402) | (119,342) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock to employees and directors (in shares) | 30 | ||||||
Issuance of common stock to employees and directors | 0 | $ 1 | (1) | ||||
Treasury stock acquired through surrender of shares for tax withholding (in shares) | (9) | ||||||
Treasury stock acquired through surrender of shares for tax withholding | (34) | $ (34) | |||||
Stock-based compensation | 325 | 325 | |||||
Net loss | (6,052) | (6,052) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 15,776 | 46 | |||||
Ending balance at Sep. 30, 2019 | 211,670 | $ 158 | 337,342 | $ (436) | (125,394) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 15,781 | 46 | |||||
Beginning balance at Dec. 31, 2019 | 174,432 | $ 158 | 337,628 | $ (436) | (162,918) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock to employees and directors (in shares) | 40 | ||||||
Issuance of common stock to employees and directors | 0 | ||||||
Treasury stock acquired through surrender of shares for tax withholding (in shares) | (14) | ||||||
Treasury stock acquired through surrender of shares for tax withholding | (41) | $ (41) | |||||
Stock-based compensation | 290 | 290 | |||||
Net loss | (23,044) | (23,044) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 15,821 | 60 | |||||
Ending balance at Mar. 31, 2020 | 151,637 | $ 158 | 337,918 | $ (477) | (185,962) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 15,781 | 46 | |||||
Beginning balance at Dec. 31, 2019 | 174,432 | $ 158 | 337,628 | $ (436) | (162,918) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (36,948) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 15,833 | 60 | |||||
Ending balance at Sep. 30, 2020 | 138,379 | $ 158 | 338,564 | $ (477) | (199,866) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 15,821 | 60 | |||||
Beginning balance at Mar. 31, 2020 | 151,637 | $ 158 | 337,918 | $ (477) | (185,962) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 322 | 322 | |||||
Net loss | (6,779) | (6,779) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 15,821 | 60 | |||||
Ending balance at Jun. 30, 2020 | 145,180 | $ 158 | 338,240 | $ (477) | (192,741) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock to employees and directors (in shares) | 12 | ||||||
Issuance of common stock to employees and directors | 0 | ||||||
Stock-based compensation | 324 | 324 | |||||
Net loss | (7,125) | (7,125) | |||||
Ending balance (in shares) at Sep. 30, 2020 | 15,833 | 60 | |||||
Ending balance at Sep. 30, 2020 | $ 138,379 | $ 158 | $ 338,564 | $ (477) | $ (199,866) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (36,948,000) | $ (17,413,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 21,966,000 | 27,340,000 |
Amortization of debt issuance costs, net | 95,000 | 287,000 |
Stock-based compensation | 936,000 | 1,740,000 |
Impairment of long-lived assets | 15,579,000 | 237,000 |
Gain on disposal of property, plant and equipment | (384,000) | (1,828,000) |
Bad debt recoveries | (129,000) | (65,000) |
Change in fair value of derivative warrant liability | 0 | (32,000) |
Deferred income taxes | 40,000 | 204,000 |
Other, net | 567,000 | 322,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,667,000 | 412,000 |
Prepaid expenses and other receivables | (141,000) | (689,000) |
Accounts payable and accrued liabilities | (892,000) | (7,240,000) |
Other assets and liabilities, net | 568,000 | 1,320,000 |
Net cash provided by operating activities | 11,924,000 | 4,595,000 |
Cash flows from investing activities: | ||
Proceeds from the sale of property, plant and equipment | 1,596,000 | 4,826,000 |
Purchases of property, plant and equipment | (2,802,000) | (7,341,000) |
Net cash used in investing activities | (1,206,000) | (2,515,000) |
Cash flows from financing activities: | ||
Payments on First and Second Lien Term Loans | (5,496,000) | (3,600,000) |
Proceeds from Revolving Facility | 101,182,000 | 139,661,000 |
Payments on Revolving Facility | (101,182,000) | (139,661,000) |
Proceeds from PPP Loan | 4,000,000 | 0 |
Payments on Bridge Term Loan | 0 | (31,382,000) |
Proceeds from the issuance of stock | 0 | 31,057,000 |
Payments on finance leases and other financing activities | (1,463,000) | (1,701,000) |
Net cash used in financing activities | (2,959,000) | (5,626,000) |
Change in cash, cash equivalents and restricted cash | 7,759,000 | (3,546,000) |
Cash and cash equivalents, beginning of period | 4,788,000 | 7,302,000 |
Restricted cash, beginning of period | 922,000 | 656,000 |
Cash, cash equivalents and restricted cash, beginning of period | 5,710,000 | 7,958,000 |
Cash and cash equivalents, end of period | 13,469,000 | 3,028,000 |
Restricted cash, end of period | 0 | 1,384,000 |
Cash, cash equivalents and restricted cash, end of period | 13,469,000 | 4,412,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,603,000 | 3,263,000 |
Cash paid for taxes, net | 249,000 | 201,000 |
Property, plant and equipment purchases in accounts payable | 403,000 | 0 |
Common stock issued to settle Bridge Term Loan | $ 0 | $ 1,118,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Nuverra Environmental Solutions, Inc. and its subsidiaries (collectively, “Nuverra,” the “Company,” “we,” “us,” or “our”) are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Our condensed consolidated balance sheet as of December 31, 2019, included herein, has been derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (or “GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, contained in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 10, 2020 (the “2019 Annual Report on Form 10-K”). All dollar and share amounts in the footnote tabular presentations are in thousands, except per share amounts and unless otherwise noted. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. There have been no other material changes or developments in our significant accounting policies or evaluation of accounting estimates and underlying assumptions or methodologies from those disclosed in our 2019 Annual Report on Form 10-K. Restricted Cash Upon emergence from chapter 11 on August 7, 2017 (the “Effective Date”), we entered into a new $45.0 million First Lien Credit Agreement (the “First Lien Credit Agreement”) by and among the lenders party thereto (the “First Lien Credit Agreement Lenders”), ACF FinCo I, LP, as administrative agent (the “Credit Agreement Agent”), and the Company. Pursuant to the First Lien Credit Agreement, the First Lien Credit Agreement Lenders agreed to extend to the Company a $30.0 million senior secured revolving credit facility (the “Revolving Facility”) and a $15.0 million senior secured term loan facility (the “First Lien Term Loan”). As our collections on our accounts receivable serve as collateral on the Revolving Facility, all amounts collected are initially recorded to “Restricted cash” on the condensed consolidated balance sheet as these funds are not available for operations until our First Lien Credit Agreement Lenders release the funds to us approximately one day later. We had a restricted cash balance of $0.9 million as of December 31, 2019. On July 13, 2020, the Company entered into an amendment of its First Lien Credit Agreement, which includes among other terms and conditions, a prohibition on drawing on the Revolving Facility until the fixed charge coverage ratio (“FCCR”) is above the established ratio at 1.00 to 1.00. As such, beginning June 30, 2020, the Company no longer records amounts to restricted cash until such time the Company meets the established FCCR and has drawn on the Revolving Facility. See Note 10 for further discussion of the amendment. Fair Value Measurements Fair value represents an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 — Observable inputs such as quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Liquidity and Going Concern The Company continues to incur operating losses, and we anticipate losses to continue into the near future. Additionally, due to the COVID-19 outbreak, there has been a significant decline in oil and natural gas demand, which has negatively impacted our customers’ demand for our services, resulting in uncertainty surrounding the potential impact on our cash flows, results of operations and financial condition. We expect crude oil prices to remain low for the foreseeable future, so we anticipate our customers’ crude or natural gas liquids drilling and completion activity to continue to operate at lower levels. Due to the uncertainty of future oil and natural gas prices and the continued effects of the COVID-19 outbreak, there is substantial doubt as to the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. In order to mitigate these conditions, the Company has undertaken various initiatives during 2020 that management believes will positively impact our operations, including personnel and salary reductions, other changes to our operating structure to achieve additional cost reductions, and the sale of certain assets. In addition, on July 13, 2020, the Company entered into amendments of its First Lien Credit Agreement and Second Lien Term Loan Credit Agreement, dated August 7, 2017, by and among the lenders party thereto, Wilmington Savings Fund Society, FSB, as administrative agent (“Wilmington”), and the Company (the “Second Lien Term Loan Credit Agreement”), which extended the maturity dates of its First Lien Term Loan and Revolving Facility from February 7, 2021 to May 15, 2022, and extended the maturity date of its Second Lien Term Loan Credit Agreement from October 7, 2021 to November 15, 2022. We believe that as a result of the cost reduction initiatives and the extension of the maturity dates of our credit agreements, our cash flow from operations, together with cash on hand and other available liquidity, will provide sufficient liquidity to fund operations for at least the next twelve months. Our consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) . Due to the issuance of ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), and the fact that we are a smaller reporting company, the new standard is effective for reporting periods beginning after December 15, 2022. The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We plan to adopt the new credit loss standard effective January 1, 2023. We do not expect the new credit loss standard to have a material effect on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We plan to adopt this new ASU effective January 1, 2021. We do not expect the adoption of the new tax standard to have a material effect on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform, if certain criteria are met. ASU No. 2020-04 only applies to contracts and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new standard is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of the new reference rate reform practical expedient will have on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815–40). ASU No. 2020-06 simplifies the accounting for certain convertible instruments, amends the guidance for the derivatives scope exception for contracts in an entity’s own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The standard may be adopted using either a retrospective or modified retrospective method. The new standard will be effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We do not expect the adoption of the new standard to have a material effect on our consolidated financial statements. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenues are generated upon the performance of contracted services under formal and informal contracts with customers. Revenues are recognized when the contracted services for our customers are completed in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Sales and usage-based taxes are excluded from revenues. Payment is due when the contracted services are completed in accordance with the payment terms established with each customer prior to providing any services. As such, there is no significant financing component for any of our revenues. Some of our contracts with customers involve multiple performance obligations as we are providing more than one service under the same contract, such as water transport services and disposal services. However, our core service offerings are capable of being distinct and also are distinct within the context of contracts with our customers. As such, these services represent separate performance obligations when included in a single contract. We have standalone pricing for all of our services which is negotiated with each of our customers in advance of providing the service. The contract consideration is allocated to the individual performance obligations based upon the standalone selling price of each service, and no discount is offered for a bundled services offering. Contract Assets During 2019, we recorded a contract asset as a result of a contract modification for disposal services. The contract asset has been fully collected as of September 30, 2020. The contract asset is included in “Other current assets” on the condensed consolidated balance sheets. The change in contract asset balance for the nine months ended September 30, 2020 and September 30, 2019 was as follows: 2020 2019 Balance at the beginning of the period (January 1) $ 231 $ — Balance at the end of the period (September 30) — 386 Increase/(decrease) $ (231) $ 386 Disaggregated Revenues The following tables present our revenues disaggregated by revenue source for each reportable segment for the three and nine months ended September 30, 2020 and September 30, 2019: Three months ended September 30, 2020 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 8,165 $ 5,613 $ 2,299 $ — $ 16,077 Disposal Services 1,380 2,634 1,624 — 5,638 Other Revenue 660 266 25 — 951 Total Service Revenue 10,205 8,513 3,948 — 22,666 Rental Revenue 1,103 27 — — 1,130 Total Revenue $ 11,308 $ 8,540 $ 3,948 $ — $ 23,796 Three months ended September 30, 2019 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 17,446 $ 7,413 $ 1,986 $ — $ 26,845 Disposal Services 4,452 2,696 2,434 — 9,582 Other Revenue 1,936 428 71 — 2,435 Total Service Revenue 23,834 10,537 4,491 — 38,862 Rental Revenue 4,162 68 6 — 4,236 Total Revenue $ 27,996 $ 10,605 $ 4,497 $ — $ 43,098 Nine months ended September 30, 2020 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 31,128 $ 18,746 $ 6,680 $ — $ 56,554 Disposal Services 6,769 6,648 5,922 — 19,339 Other Revenue 3,091 1,007 102 — 4,200 Total Service Revenue 40,988 26,401 12,704 — 80,093 Rental Revenue 6,010 95 6 — 6,111 Total Revenue $ 46,998 $ 26,496 $ 12,710 $ — $ 86,204 Nine months ended September 30, 2019 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 51,603 $ 22,681 $ 8,196 $ — $ 82,480 Disposal Services 13,669 9,293 7,579 — 30,541 Other Revenue 4,953 985 142 — 6,080 Total Service Revenue 70,225 32,959 15,917 — 119,101 Rental Revenue 11,641 206 17 — 11,864 Total Revenue $ 81,866 $ 33,165 $ 15,934 $ — $ 130,965 Water Transport Services The majority of our revenues are from the removal and disposal of produced water and flowback water originating from oil and natural gas wells or the transportation of fresh water and produced water to customer sites for use in drilling and hydraulic fracturing activities by trucks or through temporary or permanent water transfer pipelines. Water transport rates for trucking are based upon either a fixed fee per barrel or upon an hourly rate. Revenue is recognized once the water has been transported, or over time, based upon the number of barrels transported or disposed of, or at the agreed upon hourly rate, depending upon the customer contract. Contracts for the use of our water disposal pipeline are priced at a fixed fee per disposal barrel transported, with revenues recognized over time from when the water is injected into our pipeline until the transport is complete. Water transport services are all generally completed within 24 hours with no remaining performance obligation outstanding at the end of each month. Disposal Services Revenues for disposal services are generated through fees charged for disposal of fluids near disposal wells and disposal of oilfield wastes in our landfill. Disposal rates are generally based on a fixed fee per barrel of produced water, or on a per ton basis for landfill disposal, with revenues recognized once the disposal has occurred. The performance obligation for disposal services is considered complete once the disposal occurs. Therefore, disposal services revenues are recognized at a point in time. Other Revenue Other revenue includes revenues from the sale of “junk” or “slop” oil obtained through the skimming of disposal water. Revenue is recognized for “junk” or “slop” oil sales at a point in time once the goods are transferred. Rental Revenue We generate rental revenue from the rental of equipment used in wellsite services. Rental rates are based upon negotiated rates with our customers and revenue is recognized over the rental service period. Revenues from rental equipment are not within the scope of the new revenue standard, but rather are recognized under ASC 842, Leases . As the rental service period for our equipment is very short term in nature and does not include any sales-type or direct financing leases, nor any variable rental components, the adoption of ASC 842 in 2019 did not have a material impact upon our consolidated statement of operations. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease vehicles, transportation equipment, real estate and certain office equipment. We determine if an arrangement is a lease at inception. Operating and finance lease assets represent our right to use an underlying asset for the lease term, and operating and finance lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. Absent a documented borrowing rate from the lessor, we use our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. Most of our leases have remaining lease terms of one year to 20 years, with one lease having a term of 99 years. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with an initial term of twelve months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis. Some of our vehicle leases include residual value guarantees. It is probable that we will owe approximately $2.5 million under the residual value guarantees, therefore this amount has been included in the measurement of the lease liability and leased asset. The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, Lease Cost Classification 2020 2019 2020 2019 Operating lease cost (a) General and administrative expenses $ 464 $ 848 $ 1,813 $ 2,301 Finance lease cost: Amortization of leased assets Depreciation and amortization 526 743 1,689 1,968 Interest on lease liabilities Interest expense, net 137 127 426 367 Variable lease cost General and administrative expenses 626 1,003 2,222 3,124 Sublease income Other income, net (38) (8) (70) (81) Total net lease cost $ 1,715 $ 2,713 $ 6,080 $ 7,679 (a) Includes short-term leases, which represented $0.1 million and $0.3 million of the balance for the three months ended September 30, 2020 and September 30, 2019, respectively, and $0.3 million and $0.7 million of the balance for the nine months ended September 30, 2020 and September 30, 2019, respectively. Supplemental balance sheet, cash flow and other information related to leases was as follows (in thousands, except lease term and discount rate): Leases Classification September 30, December 31, Assets: Operating lease assets Operating lease assets $ 1,762 $ 2,886 Finance lease assets Property, plant and equipment, net of accumulated depreciation (a) 6,667 8,202 Total leased assets $ 8,429 $ 11,088 Liabilities: Current Operating lease liabilities Accrued and other current liabilities $ 348 $ 1,442 Finance lease liabilities Current portion of long-term debt 1,363 1,443 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 1,416 1,457 Finance lease liabilities Long-term debt 6,516 7,341 Total lease liabilities $ 9,643 $ 11,683 (a) Finance lease assets are recorded net of accumulated amortization of $3.3 million and $1.7 million as of September 30, 2020 and December 31, 2019, respectively. Lease Term and Discount Rate September 30, December 31, Weighted-average remaining lease term (in years): Operating leases 45.5 25.1 Finance leases 3.5 4.3 Weighted-average discount rate: Operating leases 9.99 % 8.51 % Finance leases 6.76 % 6.77 % Nine Months Ended September 30, Supplemental Disclosure of Cash Flow Information and Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,813 $ 2,301 Operating cash flows from finance leases 426 367 Financing cash flows from finance leases 1,082 1,265 Leased assets obtained in exchange for new operating lease liabilities $ — $ — Leased assets obtained in exchange for new finance lease liabilities 349 8,014 Maturities of lease liabilities are as follows: September 30, 2020 Operating Leases (a) Finance Leases (b) Remainder of 2020 $ 276 $ 466 2021 466 1,866 2022 325 1,832 2023 200 3,447 2024 190 383 Thereafter 6,717 1,486 Total lease payments 8,174 9,480 Less amount representing executory costs (c) — — Net lease payments 8,174 9,480 Less amount representing interest (6,410) (1,601) Present value of total lease liabilities 1,764 7,879 Less current lease liabilities (348) (1,363) Long-term lease liabilities $ 1,416 $ 6,516 (a) Operating lease payments do not include any options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) Represents executory costs for all leases. We included executory costs in lease payments under ASC 840, Leases , and have elected to continue to include executory costs for both leases that commenced before and after the effective date of ASC 842. |
Leases | Leases We lease vehicles, transportation equipment, real estate and certain office equipment. We determine if an arrangement is a lease at inception. Operating and finance lease assets represent our right to use an underlying asset for the lease term, and operating and finance lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. Absent a documented borrowing rate from the lessor, we use our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. Most of our leases have remaining lease terms of one year to 20 years, with one lease having a term of 99 years. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with an initial term of twelve months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis. Some of our vehicle leases include residual value guarantees. It is probable that we will owe approximately $2.5 million under the residual value guarantees, therefore this amount has been included in the measurement of the lease liability and leased asset. The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, Lease Cost Classification 2020 2019 2020 2019 Operating lease cost (a) General and administrative expenses $ 464 $ 848 $ 1,813 $ 2,301 Finance lease cost: Amortization of leased assets Depreciation and amortization 526 743 1,689 1,968 Interest on lease liabilities Interest expense, net 137 127 426 367 Variable lease cost General and administrative expenses 626 1,003 2,222 3,124 Sublease income Other income, net (38) (8) (70) (81) Total net lease cost $ 1,715 $ 2,713 $ 6,080 $ 7,679 (a) Includes short-term leases, which represented $0.1 million and $0.3 million of the balance for the three months ended September 30, 2020 and September 30, 2019, respectively, and $0.3 million and $0.7 million of the balance for the nine months ended September 30, 2020 and September 30, 2019, respectively. Supplemental balance sheet, cash flow and other information related to leases was as follows (in thousands, except lease term and discount rate): Leases Classification September 30, December 31, Assets: Operating lease assets Operating lease assets $ 1,762 $ 2,886 Finance lease assets Property, plant and equipment, net of accumulated depreciation (a) 6,667 8,202 Total leased assets $ 8,429 $ 11,088 Liabilities: Current Operating lease liabilities Accrued and other current liabilities $ 348 $ 1,442 Finance lease liabilities Current portion of long-term debt 1,363 1,443 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 1,416 1,457 Finance lease liabilities Long-term debt 6,516 7,341 Total lease liabilities $ 9,643 $ 11,683 (a) Finance lease assets are recorded net of accumulated amortization of $3.3 million and $1.7 million as of September 30, 2020 and December 31, 2019, respectively. Lease Term and Discount Rate September 30, December 31, Weighted-average remaining lease term (in years): Operating leases 45.5 25.1 Finance leases 3.5 4.3 Weighted-average discount rate: Operating leases 9.99 % 8.51 % Finance leases 6.76 % 6.77 % Nine Months Ended September 30, Supplemental Disclosure of Cash Flow Information and Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,813 $ 2,301 Operating cash flows from finance leases 426 367 Financing cash flows from finance leases 1,082 1,265 Leased assets obtained in exchange for new operating lease liabilities $ — $ — Leased assets obtained in exchange for new finance lease liabilities 349 8,014 Maturities of lease liabilities are as follows: September 30, 2020 Operating Leases (a) Finance Leases (b) Remainder of 2020 $ 276 $ 466 2021 466 1,866 2022 325 1,832 2023 200 3,447 2024 190 383 Thereafter 6,717 1,486 Total lease payments 8,174 9,480 Less amount representing executory costs (c) — — Net lease payments 8,174 9,480 Less amount representing interest (6,410) (1,601) Present value of total lease liabilities 1,764 7,879 Less current lease liabilities (348) (1,363) Long-term lease liabilities $ 1,416 $ 6,516 (a) Operating lease payments do not include any options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) Represents executory costs for all leases. We included executory costs in lease payments under ASC 840, Leases , and have elected to continue to include executory costs for both leases that commenced before and after the effective date of ASC 842. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | Equity Rights Offering On January 2, 2019, we received the aggregate cash proceeds of $31.4 million from an offering to our shareholders to purchase shares of our common stock on a pro rata basis with an aggregate offering price of $32.5 million (the “Rights Offering”). We sold an aggregate of 3,381,894 shares of common stock at a purchase price of $9.61 per share in the Rights Offering. Additionally, one of the backstop parties elected to satisfy the backstop commitment by converting $1.1 million of the $32.5 million bridge loan (“Bridge Term Loan”) to common stock. The aggregate cash proceeds from the Rights Offering were used to repay the remaining $31.4 million balance of the Bridge Term Loan, satisfying the obligations under the Bridge Term Loan Credit Agreement, entered October 5, 2018 (the “Bridge Term Loan Credit Agreement”), with the lenders party thereto and Wilmington as administrative agent. Immediately after the issuance of the 3,381,894 shares for the Rights Offering, which commenced on January 2, 2019, the Company had 15,614,981 common shares outstanding. Other Equity Issuances During the nine months ended September 30, 2020, we issued common stock for our stock-based compensation program, which is discussed further in Note 13. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Net loss per basic and diluted common share have been computed using the weighted average number of shares of common stock outstanding during the period. For the three and nine months ended September 30, 2020 and September 30, 2019, no shares of common stock underlying restricted stock or warrants were included in the computation of diluted earnings per common share because the inclusion of such shares would be anti-dilutive based on the net losses reported for those periods. The following table presents the calculation of basic and diluted net loss per common share, as well as the anti-dilutive stock-based awards that were excluded from the calculation of diluted net loss per share for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net loss $ (7,125) $ (6,052) $ (36,948) $ (17,413) Denominator: Weighted average shares—basic 15,771 15,715 15,762 15,657 Common stock equivalents — — — — Weighted average shares—diluted 15,771 15,715 15,762 15,657 Loss per common share: Net loss per basic common share $ (0.45) $ (0.39) $ (2.34) $ (1.11) Net loss per diluted common share $ (0.45) $ (0.39) $ (2.34) $ (1.11) Anti-dilutive stock-based awards excluded: 422 580 409 516 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following: September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Remaining Useful Life (Years) Disposal permits $ 540 $ (326) $ 214 4.9 Trade name 799 (710) 89 0.3 Total intangible assets $ 1,339 $ (1,036) $ 303 3.5 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Remaining Useful Life (Years) Disposal permits $ 554 $ (269) $ 285 5.0 Trade name 799 (444) 355 1.0 Total intangible assets $ 1,353 $ (713) $ 640 2.8 The disposal permits are related to the Rocky Mountain, Northeast and Southern divisions. The remaining weighted average useful lives shown are calculated based on the net book value and remaining amortization period of each respective intangible asset. Amortization expense was $0.1 million and $0.1 million for the three months ended September 30, 2020 and September 30, 2019, respectively, and $0.3 million and $0.3 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. |
Assets Held for Sale and Impair
Assets Held for Sale and Impairment | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Assets Held for Sale and Impairment | Assets Held for Sale and Impairment Impairment Charges Impairment charges of $15.6 million and $0.2 million were recorded during the nine months ended September 30, 2020 and September 30, 2019, respectively. Impairment charges of $0.1 million were recorded during the three months ended September 30, 2019. No impairment charges were recorded during the three months ended September 30, 2020. Assets Held for Sale During the nine months ended September 30, 2020, certain property classified as “Assets held for sale” on the condensed consolidated balance sheet located in the Rocky Mountain division was re-evaluated for impairment based on an accepted offer from a buyer that indicated fair value of the real property was lower than its net book value, and impairment charges of $0.6 million were recorded during the nine months ended September 30, 2020, which is included in “Impairment of long-lived assets” on our condensed consolidated statements of operations. During 2019, management approved plans to sell real properties located in both the Northeast and Rocky Mountain divisions. As a result, management began to actively market the properties, which were expected to sell within one year. In accordance with applicable accounting guidance, the real property was recorded at the lower of net book value or fair value less costs to sell and reclassified to “Assets held for sale” on the condensed consolidated balance sheet during the three and nine months ended September 30, 2019. As the fair value of the real property reclassified as held for sale in the Rocky Mountain and Northeast divisions was lower than its net book value, impairment charges of $0.1 million and $0.2 million were recorded during the three and nine months ended September 30, 2019, respectively, which is included in “Impairment of long-lived assets” on our condensed consolidated statements of operations. Of the impairment charges recorded during the nine months ended September 30, 2019, $0.1 million related to the Northeast division and $0.1 million related to the Rocky Mountain division. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. During 2020, there has been a significant decline in oil prices due to the impacts of the outbreak of COVID-19 and the oil supply conflict between two major oil producing countries, which resulted in a decrease in activities by our customers. As a result of these events, we determined that there were indicators that the carrying value of our assets may not be recoverable. Our impairment review during the nine months ended September 30, 2020 concluded that the carrying values of the assets associated with the landfill in the Rocky Mountain division and trucking equipment in the Southern division were not recoverable as the carrying value exceeded our estimate of future undiscounted cash flows for these asset groups. As a result, we recorded an impairment charge of $15.0 million during the nine months ended September 30, 2020 as the carrying value exceeded fair value, which is included in “Impairment of long-lived assets” on our condensed consolidated statements of operations. The fair value of the assets associated with the landfill and trucking equipment asset groups was determined using discounted estimated future cash flows (Level 3 in the fair value hierarchy). Of the impairment charges recorded during the nine months ended September 30, 2020, $11.6 million related to the Rocky Mountain division and $3.4 million related to the Southern division. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following at September 30, 2020 and December 31, 2019: September 30, December 31, Accrued payroll and employee benefits $ 2,302 $ 1,837 Accrued insurance 2,546 2,569 Accrued legal 81 295 Accrued taxes 1,371 695 Accrued interest 210 179 Accrued operating costs 2,503 2,653 Accrued other 278 394 Current operating lease liabilities 348 1,442 Total accrued and other current liabilities $ 9,639 $ 10,064 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Interest Rate Maturity Date Carrying Value of Debt (j) Carrying Value of Debt (j) Revolving Facility (a) 6.25% May 2022 $ — $ — First Lien Term Loan (b) 8.25% May 2022 13,038 18,008 Second Lien Term Loan (c) 11.00% Nov. 2022 8,487 9,013 PPP Loan (d) 1.00% May 2022 4,000 — Vehicle Term Loan (e) 5.27% Dec. 2021 453 725 Equipment Term Loan (f) 6.50% Nov. 2022 178 — Finance leases (g) 6.76% Various 7,879 8,784 Total debt 34,035 36,530 Debt issuance costs presented with debt — (95) Total debt, net 34,035 36,435 Less: current portion of long-term debt (h) (6,153) (6,430) Long-term debt $ 27,882 $ 30,005 _____________________ (a) The interest rate presented represents the interest rate as of September 30, 2020 on the Revolving Facility. (b) Interest on the First Lien Term Loan accrues at an annual rate equal to the LIBOR Rate plus 7.25%. (c) Interest on the Second Lien Term Loan (as defined below) accrues at an annual rate equal to 11.0%, payable in cash, in arrears, on the first day of each month. (d) Interest on the PPP Loan (as defined below) accrues at an annual rate of 1.00%. (e) Interest on the Vehicle Term Loan (as defined below) accrues at an annual rate of 5.27%. (f) Interest on the Equipment Term Loan (as defined below) accrues at an annual rate of 6.50%. (g) Our finance leases include finance lease arrangements related to fleet purchases and real property with a weighted-average annual interest rate of approximately 6.76%, which mature in varying installments between 2020 and 2029. (h) The principal payments due within one year for the First Lien Term Loan, Second Lien Term Loan, Vehicle Term Loan, Equipment Term Loan and finance leases are included in current portion of long-term debt as of September 30, 2020. (i) The debt issuance costs as of December 31, 2019 resulted from the amendment to the First Lien Term Loan, done in connection with our acquisition of Clearwater Three, LLC, Clearwater Five, LLC, and Clearwater Solutions, LLC. (j) Our Revolving Facility, First Lien Term Loan, Second Lien Term Loan, Vehicle Term Loan, Equipment Term Loan and finance leases bear interest at rates commensurate with market rates and therefore their respective carrying values approximate fair value. See below for a discussion of material changes and developments in our debt and its principal terms from those described in Note 12 to the consolidated financial statements in our 2019 Annual Report on Form 10-K . Indebtedness As of September 30, 2020, we had $34.0 million of indebtedness outstanding, consisting of $13.0 million under the First Lien Term Loan, $8.5 million under the second lien term loan facility (the “Second Lien Term Loan”) pursuant to the Second Lien Term Loan Credit Agreement, $4.0 million under the PPP Loan, $0.5 million under the Direct Loan Security Agreement (the “Vehicle Term Loan”) with PACCAR Financial Corp as the secured party, $0.2 million under the Equipment Term Loan and $7.9 million of finance leases for vehicle financings and real property leases. Our Revolving Facility, First Lien Term Loan and Second Lien Term Loan contain certain affirmative and negative covenants, including a minimum liquidity covenant and a FCCR covenant, as well as other terms and conditions that are customary for revolving credit facilities and term loans of this type. On July 13, 2020, the Company entered into amendments of its First Lien Credit Agreement and Second Lien Term Loan Credit Agreement, which included among other terms and conditions, deferral of the measurement of the FCCR covenant until the second quarter of 2021. As of September 30, 2020, we were in compliance with all covenants. Equipment Term Loan On November 20, 2019, we entered into a Retail Installment Contract (the “Equipment Term Loan”) with a secured party to finance $0.2 million of equipment. The Equipment Term Loan matures on November 2022, and shall be repaid in monthly installments of approximately $7 thousand beginning December 2019 and then each month thereafter, with interest accruing at an annual rate of 6.50%. Paycheck Protection Program Loan On May 8, 2020, pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) enacted on March 27, 2020, an indirect wholly-owned subsidiary of the Company (the “PPP Borrower”) received proceeds of a loan (the “PPP Loan”) from First International Bank & Trust (the “PPP Lender”) in the principal amount of $4.0 million. The PPP Loan is evidenced by a promissory note (the “Promissory Note”), dated May 8, 2020. The Promissory Note is unsecured, matures on May 8, 2022, bears interest at a rate of 1.00% per annum, and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration (the “SBA”) under the CARES Act. Under the terms of the PPP, up to the entire principal amount of the PPP Loan, and accrued interest, may be forgiven if the proceeds are used for certain qualifying expenses over the covered period as described in the CARES Act and applicable implementing guidance issued by the SBA, subject to potential reduction based on the level of full-time employees maintained by the organization during the covered period as compared to a baseline period. In June 2020, the Paycheck Protection Program Flexibility Act of 2020 (“Flexibility Act”) was signed into law, which amended the CARES Act. The Flexibility Act changed key provisions of the PPP, including, but not limited to, (i) provisions relating to the maturity of PPP loans, (ii) the deferral period covering PPP loan payments and (iii) the process for measurement of loan forgiveness. More specifically, the Flexibility Act provides a minimum maturity of five years for all PPP loans made on or after the date of the enactment of the Flexibility Act (“June 5, 2020”) and permits lenders and borrowers to extend the maturity date of earlier PPP loans by mutual agreement. As of the date of this filing, the Company has not approached the PPP Lender to request an extension of the maturity date from two years to five years. The Flexibility Act also provides that if a borrower does not apply for forgiveness of a loan within 10 months after the last day of the measurement period (“covered period”), the PPP loan is no longer deferred and the borrower must begin paying principal and interest. In addition, the Flexibility Act extended the length of the covered period from eight weeks to 24 weeks from receipt of proceeds, while allowing borrowers that received PPP loans before June 5, 2020 to determine, at their sole discretion, a covered period of either eight weeks or 24 weeks. The PPP Borrower used the PPP Loan proceeds for designated qualifying expenses over the covered period and applied for forgiveness of the PPP Loan during September 2020 in accordance with the terms of the PPP, but no assurance can be given that the PPP Borrower will obtain forgiveness of the PPP Loan in whole or in part. As such, the Company has classified the PPP loan as debt and it is included in long-term debt on the condensed consolidated balance sheet. With respect to any portion of the PPP Loan that is not forgiven, the PPP Loan will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults, breaches of the provisions of the Promissory Note and cross-defaults on any other loan with the PPP Lender or other creditors. Upon a default under the Promissory Note, including the non-payment of principal or interest when due, the obligations of the PPP Borrower thereunder may be accelerated. In the event the PPP Loan is not forgiven, the principal amount of $4.0 million shall be repaid at maturity. The Company has obtained the consent of the lenders under each of the Credit Agreement and the Second Lien Term Loan Credit Agreement for the PPP Borrower to enter into and obtain the funds provided by the PPP Loan. Amendment to First Lien Credit Agreement On July 13, 2020, the Company entered into the Third Amendment to First Lien Credit Agreement (the “Third Amendment to First Lien Credit Agreement”) with the First Lien Credit Agreement Lenders and Credit Agreement Agent, which further amends the First Lien Credit Agreement. The Third Amendment to First Lien Credit Agreement amends the First Lien Credit Agreement to extend the maturity date from February 7, 2021 to May 15, 2022. In connection with the Third Amendment to First Lien Credit Amendment, the Company repaid $2.5 million of the outstanding principal amount of the term loans under the First Lien Credit Agreement on July 13, 2020. In addition, among other terms and conditions, the Third Amendment to First Lien Credit Agreement amends the First Lien Credit Agreement to: (i) defer measurement of the FCCR covenant until the second quarter of 2021 at 0.70 to 1.00 for such quarter and at 1.00 to 1.00 thereafter, (ii) add a monthly minimum liquidity covenant that requires the Company to maintain minimum liquidity amounts as follows: $8.0 million through July 31, 2020, $5.5 million through August 31, 2020, $5.0 million through November 30, 2020 and $4.0 million on and after December 1, 2020, (iii) set the maximum capital expenditures covenant for 2020 and 2021 at $6.0 million and $7.5 million, respectively, (iv) prohibit draws on the Revolving Facility until the FCCR is 1.00 to 1.00, and (v) require the Company to engage a financial advisor on or prior to December 31, 2020. In connection with the Third Amendment to First Lien Credit Agreement, the Company agreed to pay the First Lien Credit Agreement Lenders an amendment fee of $375 thousand on close of the Third Amendment to First Lien Credit Agreement, $50 thousand per quarter for the next five quarters thereafter and $125 thousand on the maturity date of the First Lien Credit Agreement. Amendment to Second Lien Credit Agreement On July 13, 2020, the Company entered into a Second Amendment to Credit Agreement (the “Second Amendment to Second Lien Credit Agreement”) with the lenders party thereto and Wilmington, as administrative agent, which amends the Second Lien Term Loan Credit Agreement to extend the maturity date from October 7, 2021 to November 15, 2022. In addition, among other terms and conditions, the Second Amendment to Second Lien Credit Agreement amends the Second Lien Credit Agreement to: (i) defer measurement of the FCCR covenant until the second quarter of 2021 and set the minimum FCCR at 0.60 to 1.00 for such quarter and at 0.85 to 1.00 thereafter, (ii) add a monthly minimum liquidity covenant that requires the Company to maintain minimum liquidity amounts as follows: $6.8 million through July 31, 2020, approximately $4.7 million through August 31, 2020, $4.25 million through November 30, 2020 and $3.4 million on and after December 1, 2020, (iii) set the maximum capital expenditures covenant for 2020 and 2021 at approximately $7.1 million and approximately $8.8 million, respectively, and (iv) require the Company to engage a financial advisor on or prior to December 31, 2020. |
Derivative Warrants
Derivative Warrants | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Derivative Warrants | Derivative Warrants On the Effective Date, pursuant to the prepackaged plan of reorganization (the “Plan”), we issued to the holders of our pre-Effective Date 9.875% Senior Notes due 2018 (the “2018 Notes”) and holders of certain claims relating to the rejection of executory contracts and unexpired leases warrants to purchase an aggregate of 118,137 shares of common stock, par value $0.01, at an exercise price of $39.82 per share and with a term expiring seven years from the Effective Date. The following table shows the warrant activity for the nine months ended September 30, 2020 and September 30, 2019: Nine Months Ended September 30, 2020 2019 Outstanding at the beginning of the period 118 118 Issued — — Exercised — — Outstanding at the end of the period 118 118 The fair value of our derivative warrant liability was $354 at December 31, 2019. There was no change in the fair value at September 30, 2020. Fair Value of Warrants We account for warrants in accordance with the accounting guidance for derivatives, which sets forth a two-step model to be applied in determining whether a financial instrument is indexed to an entity’s own stock which would qualify such financial instruments for a scope exception. This scope exception specifies that a contract that would otherwise meet the definition of a derivative financial instrument would not be considered as such if the contract is both (i) indexed to the entity’s own stock and (ii) classified in the shareholders’ equity section of the entity’s balance sheet. We determined that the warrants are ineligible for equity classification as the warrants are not indexed to our common stock. Therefore, the warrants are recorded as derivative liabilities at fair value and included in “Accrued and other current liabilities” in the condensed consolidated balance sheets. The warrants are classified as a current liability as they could be exercised by the holders at any time. The fair value of the derivative warrant liability was estimated using a Monte Carlo simulation model (Level 3 in the fair value hierarchy) on the date of issue and is periodically re-measured until expiration or exercise of the underlying warrants with the resulting fair value adjustment recorded in “Other income, net” in the condensed consolidated statements of operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Current income tax benefit (expense) $ — $ 46 $ (30) $ 33 Deferred income tax (expense) benefit — (92) 15 (204) Total income tax expense $ — $ (46) $ (15) $ (171) We recorded no income tax expense or benefit during the three months ended September 30, 2020. As a result, the effective tax rate for the three months ended September 30, 2020 was 0.0%. The effective tax rate for the nine months ended September 30, 2020 was 0.0%. The effective tax rates for the three and nine months ended September 30, 2020 differ from the federal statutory rate of 21.0%, and the difference is primarily due to the increase in the valuation allowance on deferred tax assets resulting from current year losses. The effective income tax rate for the three and nine months ended September 30, 2019 was (0.8)%, and (1.0)%, respectively, which differed from the federal statutory rate of 21.0% primarily due to the increase in the valuation allowance on deferred tax assets resulting from current year losses. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Nuverra Environmental Solutions, Inc. 2017 Long Term Incentive Plan (the “Incentive Plan”) is intended to provide for the grant of equity-based awards to designated members of the Company’s management and employees. The maximum number of shares of the Company’s common stock that is available for the issuance of awards under the Incentive Plan is 1,772,058. As of September 30, 2020, approximately 771,000 shares were available for issuance under the Incentive Plan. The 2018 Restricted Stock Plan for Directors (the “Director Plan”) provides for the grant of restricted stock to the non-employee directors of the Company. The Director Plan limits the shares that may be issued thereunder to 100,000 shares of common stock. As of September 30, 2020, no shares were remaining available for issuance under the Director Plan. The total grants awarded under both the Incentive Plan and the Director Plan during the three and nine months ended September 30, 2020 and September 30, 2019 are presented in the table below: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Restricted stock grants (1) — — 75 142 Total grants in the period — — 75 142 (1) Includes restricted stock awards, performance-based restricted stock units, and time-based restricted stock units granted under the Incentive Plan and the Director Plan. The total stock-based compensation expense, net of estimated forfeitures, included in “General and administrative expenses” in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and September 30, 2019 was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Restricted stock (1) $ 324 $ 325 $ 936 $ 1,740 Total expense $ 324 $ 325 $ 936 $ 1,740 (1) Includes expense related to restricted stock awards, performance-based restricted stock units, and time-based restricted stock units granted under the Incentive Plan and the Director Plan. At September 30, 2020, the total unrecognized share-based compensation expense, net of estimated forfeitures, was $0.4 million and is expected to be recognized over a weighted average period of 0.3 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Liabilities We are subject to the environmental protection and health and safety laws and related rules and regulations of the United States and of the individual states, municipalities and other local jurisdictions where we operate. Our operations are subject to rules and regulations promulgated by the Texas Railroad Commission, the Texas Commission on Environmental Quality, the Louisiana Department of Natural Resources, the Louisiana Department of Environmental Quality, the Ohio Department of Natural Resources, the Pennsylvania Department of Environmental Protection, the North Dakota Department of Health, the North Dakota Industrial Commission, Oil and Gas Division, the North Dakota State Water Commission, the Montana Department of Environmental Quality and the Montana Board of Oil and Gas, among others. These laws, rules and regulations address environmental, health and safety and related concerns, including water quality and employee safety. We have installed safety, monitoring and environmental protection equipment such as pressure sensors, containment walls, SCADA systems and relief valves, and have established reporting and responsibility protocols for environmental protection and reporting to such relevant local environmental protection departments as required by law. We believe we are in material compliance with all applicable environmental protection laws and regulations in the United States and the states in which we operate. We believe that there are no unrecorded liabilities as of the periods reported herein in connection with our compliance with applicable environmental laws and regulations. The condensed consolidated balance sheets at September 30, 2020 and December 31, 2019 did not include any accruals for environmental matters. Contingent Consideration for Ideal Settlement On June 28, 2017, the Company and certain of its material subsidiaries (collectively with the Company, the “Nuverra Parties”) filed a motion with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking authorization to resolve unsecured claims related to the $8.5 million contingent consideration from the Ideal Oilfield Disposal LLC acquisition (the “Ideal Settlement”). On July 11, 2017, the Bankruptcy Court entered an order authorizing the Ideal Settlement. Pursuant to the approved settlement terms, the $8.5 million contingent claim was replaced with an obligation on the part of the applicable Nuverra Party to transfer $0.5 million to the counterparties to the Ideal Settlement upon emergence from chapter 11, and $0.5 million when the Ideal Settlement counterparties deliver the required permits and certificates necessary for the issuance of the second special waste disposal permit. The $0.5 million due upon emergence from chapter 11 was paid during the five months ended December 31, 2017. The remaining $0.5 million, due when the counterparties deliver the required permits and certificates necessary for the issuance of the second special waste disposal permit, has been classified as noncurrent and is reported in “Long-term contingent consideration” on the condensed consolidated balance sheets, as these permits and certificates are not expected to be received within one year. State Sales and Use Tax Liabilities During the year ended December 31, 2017, the Pennsylvania Department of Revenue (or “DOR”) completed an audit of our sales and use tax compliance for the period January 1, 2012 through May 31, 2017. As a result of the audit, we were assessed by the DOR for additional state and local sales and use tax plus penalties and interest. During the years ended December 31, 2017 and 2018, we disputed various claims in the assessment made by the DOR through the appropriate boards of appeal and were able to obtain relief for many of the contested claims. However, in January of 2019, the final appeals board upheld an assessment of sales tax and interest that relates to one material position. We have appealed this decision to the Commonwealth of Pennsylvania as we continue to believe that the transactions involved are exempt from sales tax in Pennsylvania, and therefore we have not recorded an accrual as of September 30, 2020. If we lose this appeal, which could take several years to settle, we estimate that we would be required to pay between $1.0 million and $1.5 million to the DOR. |
Legal Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters Litigation There are various lawsuits, claims, investigations and proceedings that have been brought or asserted against us, which arise in the ordinary course of business, including actions with respect to securities and shareholder class actions, personal injury, vehicular and industrial accidents, commercial contracts, legal and regulatory compliance, securities disclosure, labor and employment, and employee benefits and environmental matters, the more significant of which are summarized below. We record a provision for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information and events pertinent to a particular matter. We believe that we have valid defenses with respect to legal matters pending against us. Based on our experience, we also believe that the damage amounts claimed in pending lawsuits are not necessarily a meaningful indicator of our potential liability. Litigation is inherently unpredictable, and it is possible that our results of operations or cash flow could be materially affected in any particular period by the resolution of one or more of the legal matters pending against us. We do not expect that the outcome of other current claims and legal actions not discussed below will have a material adverse effect on our consolidated financial position, results of operations or cash flows. Confirmation Order Appeal On July 25, 2017, the Bankruptcy Court entered an order (the “Confirmation Order”) confirming the Plan. On July 26, 2017, David Hargreaves, an individual holder of 2018 Notes, appealed the Confirmation Order to the District Court of the District of Delaware (the “District Court”) and filed a motion for a stay pending appeal from the District Court. Although the motion for a stay pending appeal was denied, the appeal remained pending and the District Court heard oral arguments in May 2018, and in August 2018 the District Court issued an order dismissing the appeal. Hargreaves subsequently appealed the District Court’s decision to the United States Court of Appeals for the Third Circuit. The parties filed appellate briefs in December 2018 and January 2019, and as a result the appeal remains pending with the United States Court of Appeals for the Third Circuit. The ultimate outcome of this appeal and its effects on the Confirmation Order are impossible to predict with certainty. No assurance can be given that the final disposition of this appeal will not affect the validity, enforceability or finality of the Confirmation Order. |
Related Party and Affiliated Co
Related Party and Affiliated Company Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party and Affiliated Company Transactions | Related Party and Affiliated Company Transactions There have been no significant changes to the other related party transactions as described in Note 22 to the consolidated financial statements in our 2019 Annual Report on Form 10-K. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments We evaluate business segment performance based on income (loss) before income taxes exclusive of corporate general and administrative costs and interest expense, which are not allocated to the segments. Our business is comprised of three operating divisions, which we consider to be operating and reportable segments of our operations: (1) the Rocky Mountain division comprising the Bakken Shale area, (2) the Northeast division comprising the Marcellus and Utica Shale areas and (3) the Southern division comprising the Haynesville Shale area. Corporate/Other includes certain corporate costs and certain other corporate assets. Financial information for our reportable segments related to operations is presented below. Rocky Mountain Northeast Southern Corporate/ Other Total Three months ended September 30, 2020 Revenue $ 11,308 $ 8,540 $ 3,948 $ — $ 23,796 Direct operating expenses 9,700 6,405 2,917 — 19,022 General and administrative expenses 836 460 194 2,594 4,084 Depreciation and amortization 2,810 2,514 1,486 11 6,821 Operating loss (2,038) (839) (649) (2,605) (6,131) Loss before income taxes (2,203) (945) (698) (3,279) (7,125) Nine months ended September 30, 2020 Revenue $ 46,998 $ 26,496 $ 12,710 $ — $ 86,204 Direct operating expenses 39,709 20,369 8,971 — 69,049 General and administrative expenses 3,849 1,528 704 7,372 13,453 Depreciation and amortization 9,149 7,597 5,201 19 21,966 Operating loss (17,892) (2,998) (5,562) (7,391) (33,843) Loss before income taxes (18,244) (3,324) (5,718) (9,647) (36,933) As of September 30, 2020 Total assets $ 60,730 $ 57,218 $ 63,279 $ 14,709 $ 195,936 Total assets held for sale — — — 778 778 Three months ended September 30, 2019 Revenue $ 27,996 $ 10,605 $ 4,497 $ — $ 43,098 Direct operating expenses 22,023 8,750 3,524 — 34,297 General and administrative expenses 1,377 647 72 2,678 4,774 Depreciation and amortization 4,191 2,667 2,063 7 8,928 Operating income (loss) 285 (1,459) (1,158) (2,685) (5,017) Income (loss) before income taxes 136 (1,355) (1,215) (3,572) (6,006) Nine months ended September 30, 2019 Revenue $ 81,866 $ 33,165 $ 15,934 $ — $ 130,965 Direct operating expenses 64,205 27,072 10,094 — 101,371 General and administrative expenses 3,629 2,222 825 8,853 15,529 Depreciation and amortization 12,797 8,152 6,359 32 27,340 Operating income (loss) 1,115 (4,398) (1,334) (8,885) (13,502) Income (loss) before income taxes 819 (4,510) (1,500) (12,051) (17,242) As of December 31, 2019 Total assets (a) $ 93,504 $ 64,023 $ 70,841 $ 7,731 $ 236,099 Total assets held for sale 1,751 135 — 778 2,664 _____________________ |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Nuverra Environmental Solutions, Inc. and its subsidiaries (collectively, “Nuverra,” the “Company,” “we,” “us,” or “our”) are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Our condensed consolidated balance sheet as of December 31, 2019, included herein, has been derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (or “GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, contained in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 10, 2020 (the “2019 Annual Report on Form 10-K”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. |
Fair Value Measurements | Fair Value Measurements Fair value represents an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 — Observable inputs such as quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) . Due to the issuance of ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), and the fact that we are a smaller reporting company, the new standard is effective for reporting periods beginning after December 15, 2022. The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We plan to adopt the new credit loss standard effective January 1, 2023. We do not expect the new credit loss standard to have a material effect on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We plan to adopt this new ASU effective January 1, 2021. We do not expect the adoption of the new tax standard to have a material effect on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform, if certain criteria are met. ASU No. 2020-04 only applies to contracts and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new standard is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of the new reference rate reform practical expedient will have on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815–40). ASU No. 2020-06 simplifies the accounting for certain convertible instruments, amends the guidance for the derivatives scope exception for contracts in an entity’s own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The standard may be adopted using either a retrospective or modified retrospective method. The new standard will be effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We do not expect the adoption of the new standard to have a material effect on our consolidated financial statements. |
Revenue Recognition | Revenues are generated upon the performance of contracted services under formal and informal contracts with customers. Revenues are recognized when the contracted services for our customers are completed in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Sales and usage-based taxes are excluded from revenues. Payment is due when the contracted services are completed in accordance with the payment terms established with each customer prior to providing any services. As such, there is no significant financing component for any of our revenues. Some of our contracts with customers involve multiple performance obligations as we are providing more than one service under the same contract, such as water transport services and disposal services. However, our core service offerings are capable of being distinct and also are distinct within the context of contracts with our customers. As such, these services represent separate performance obligations when included in a single contract. We have standalone pricing for all of our services which is negotiated with each of our customers in advance of providing the service. The contract consideration is allocated to the individual performance obligations based upon the standalone selling price of each service, and no discount is offered for a bundled services offering. Water Transport Services The majority of our revenues are from the removal and disposal of produced water and flowback water originating from oil and natural gas wells or the transportation of fresh water and produced water to customer sites for use in drilling and hydraulic fracturing activities by trucks or through temporary or permanent water transfer pipelines. Water transport rates for trucking are based upon either a fixed fee per barrel or upon an hourly rate. Revenue is recognized once the water has been transported, or over time, based upon the number of barrels transported or disposed of, or at the agreed upon hourly rate, depending upon the customer contract. Contracts for the use of our water disposal pipeline are priced at a fixed fee per disposal barrel transported, with revenues recognized over time from when the water is injected into our pipeline until the transport is complete. Water transport services are all generally completed within 24 hours with no remaining performance obligation outstanding at the end of each month. Disposal Services Revenues for disposal services are generated through fees charged for disposal of fluids near disposal wells and disposal of oilfield wastes in our landfill. Disposal rates are generally based on a fixed fee per barrel of produced water, or on a per ton basis for landfill disposal, with revenues recognized once the disposal has occurred. The performance obligation for disposal services is considered complete once the disposal occurs. Therefore, disposal services revenues are recognized at a point in time. Other Revenue Other revenue includes revenues from the sale of “junk” or “slop” oil obtained through the skimming of disposal water. Revenue is recognized for “junk” or “slop” oil sales at a point in time once the goods are transferred. Rental Revenue We generate rental revenue from the rental of equipment used in wellsite services. Rental rates are based upon negotiated rates with our customers and revenue is recognized over the rental service period. Revenues from rental equipment are not within the scope of the new revenue standard, but rather are recognized under ASC 842, Leases . As the rental service period for our equipment is very short term in nature and does not include any sales-type or direct financing leases, nor any variable rental components, the adoption of ASC 842 in 2019 did not have a material impact upon our consolidated statement of operations. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets | The change in contract asset balance for the nine months ended September 30, 2020 and September 30, 2019 was as follows: 2020 2019 Balance at the beginning of the period (January 1) $ 231 $ — Balance at the end of the period (September 30) — 386 Increase/(decrease) $ (231) $ 386 |
Schedule of Revenues Disaggregated by Revenue Source | The following tables present our revenues disaggregated by revenue source for each reportable segment for the three and nine months ended September 30, 2020 and September 30, 2019: Three months ended September 30, 2020 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 8,165 $ 5,613 $ 2,299 $ — $ 16,077 Disposal Services 1,380 2,634 1,624 — 5,638 Other Revenue 660 266 25 — 951 Total Service Revenue 10,205 8,513 3,948 — 22,666 Rental Revenue 1,103 27 — — 1,130 Total Revenue $ 11,308 $ 8,540 $ 3,948 $ — $ 23,796 Three months ended September 30, 2019 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 17,446 $ 7,413 $ 1,986 $ — $ 26,845 Disposal Services 4,452 2,696 2,434 — 9,582 Other Revenue 1,936 428 71 — 2,435 Total Service Revenue 23,834 10,537 4,491 — 38,862 Rental Revenue 4,162 68 6 — 4,236 Total Revenue $ 27,996 $ 10,605 $ 4,497 $ — $ 43,098 Nine months ended September 30, 2020 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 31,128 $ 18,746 $ 6,680 $ — $ 56,554 Disposal Services 6,769 6,648 5,922 — 19,339 Other Revenue 3,091 1,007 102 — 4,200 Total Service Revenue 40,988 26,401 12,704 — 80,093 Rental Revenue 6,010 95 6 — 6,111 Total Revenue $ 46,998 $ 26,496 $ 12,710 $ — $ 86,204 Nine months ended September 30, 2019 Rocky Mountain Northeast Southern Corporate/Other Total Water Transport Services $ 51,603 $ 22,681 $ 8,196 $ — $ 82,480 Disposal Services 13,669 9,293 7,579 — 30,541 Other Revenue 4,953 985 142 — 6,080 Total Service Revenue 70,225 32,959 15,917 — 119,101 Rental Revenue 11,641 206 17 — 11,864 Total Revenue $ 81,866 $ 33,165 $ 15,934 $ — $ 130,965 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, Lease Cost Classification 2020 2019 2020 2019 Operating lease cost (a) General and administrative expenses $ 464 $ 848 $ 1,813 $ 2,301 Finance lease cost: Amortization of leased assets Depreciation and amortization 526 743 1,689 1,968 Interest on lease liabilities Interest expense, net 137 127 426 367 Variable lease cost General and administrative expenses 626 1,003 2,222 3,124 Sublease income Other income, net (38) (8) (70) (81) Total net lease cost $ 1,715 $ 2,713 $ 6,080 $ 7,679 |
Schedule of Assets and Liabilities, Lease Term and Discount Rate and Supplemental Disclosure | Supplemental balance sheet, cash flow and other information related to leases was as follows (in thousands, except lease term and discount rate): Leases Classification September 30, December 31, Assets: Operating lease assets Operating lease assets $ 1,762 $ 2,886 Finance lease assets Property, plant and equipment, net of accumulated depreciation (a) 6,667 8,202 Total leased assets $ 8,429 $ 11,088 Liabilities: Current Operating lease liabilities Accrued and other current liabilities $ 348 $ 1,442 Finance lease liabilities Current portion of long-term debt 1,363 1,443 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 1,416 1,457 Finance lease liabilities Long-term debt 6,516 7,341 Total lease liabilities $ 9,643 $ 11,683 (a) Finance lease assets are recorded net of accumulated amortization of $3.3 million and $1.7 million as of September 30, 2020 and December 31, 2019, respectively. Lease Term and Discount Rate September 30, December 31, Weighted-average remaining lease term (in years): Operating leases 45.5 25.1 Finance leases 3.5 4.3 Weighted-average discount rate: Operating leases 9.99 % 8.51 % Finance leases 6.76 % 6.77 % Nine Months Ended September 30, Supplemental Disclosure of Cash Flow Information and Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,813 $ 2,301 Operating cash flows from finance leases 426 367 Financing cash flows from finance leases 1,082 1,265 Leased assets obtained in exchange for new operating lease liabilities $ — $ — Leased assets obtained in exchange for new finance lease liabilities 349 8,014 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities are as follows: September 30, 2020 Operating Leases (a) Finance Leases (b) Remainder of 2020 $ 276 $ 466 2021 466 1,866 2022 325 1,832 2023 200 3,447 2024 190 383 Thereafter 6,717 1,486 Total lease payments 8,174 9,480 Less amount representing executory costs (c) — — Net lease payments 8,174 9,480 Less amount representing interest (6,410) (1,601) Present value of total lease liabilities 1,764 7,879 Less current lease liabilities (348) (1,363) Long-term lease liabilities $ 1,416 $ 6,516 (a) Operating lease payments do not include any options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) Represents executory costs for all leases. We included executory costs in lease payments under ASC 840, Leases , and have elected to continue to include executory costs for both leases that commenced before and after the effective date of ASC 842. |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities are as follows: September 30, 2020 Operating Leases (a) Finance Leases (b) Remainder of 2020 $ 276 $ 466 2021 466 1,866 2022 325 1,832 2023 200 3,447 2024 190 383 Thereafter 6,717 1,486 Total lease payments 8,174 9,480 Less amount representing executory costs (c) — — Net lease payments 8,174 9,480 Less amount representing interest (6,410) (1,601) Present value of total lease liabilities 1,764 7,879 Less current lease liabilities (348) (1,363) Long-term lease liabilities $ 1,416 $ 6,516 (a) Operating lease payments do not include any options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) Represents executory costs for all leases. We included executory costs in lease payments under ASC 840, Leases , and have elected to continue to include executory costs for both leases that commenced before and after the effective date of ASC 842. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per common share, as well as the anti-dilutive stock-based awards that were excluded from the calculation of diluted net loss per share for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net loss $ (7,125) $ (6,052) $ (36,948) $ (17,413) Denominator: Weighted average shares—basic 15,771 15,715 15,762 15,657 Common stock equivalents — — — — Weighted average shares—diluted 15,771 15,715 15,762 15,657 Loss per common share: Net loss per basic common share $ (0.45) $ (0.39) $ (2.34) $ (1.11) Net loss per diluted common share $ (0.45) $ (0.39) $ (2.34) $ (1.11) Anti-dilutive stock-based awards excluded: 422 580 409 516 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Remaining Useful Life (Years) Disposal permits $ 540 $ (326) $ 214 4.9 Trade name 799 (710) 89 0.3 Total intangible assets $ 1,339 $ (1,036) $ 303 3.5 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Remaining Useful Life (Years) Disposal permits $ 554 $ (269) $ 285 5.0 Trade name 799 (444) 355 1.0 Total intangible assets $ 1,353 $ (713) $ 640 2.8 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following at September 30, 2020 and December 31, 2019: September 30, December 31, Accrued payroll and employee benefits $ 2,302 $ 1,837 Accrued insurance 2,546 2,569 Accrued legal 81 295 Accrued taxes 1,371 695 Accrued interest 210 179 Accrued operating costs 2,503 2,653 Accrued other 278 394 Current operating lease liabilities 348 1,442 Total accrued and other current liabilities $ 9,639 $ 10,064 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Interest Rate Maturity Date Carrying Value of Debt (j) Carrying Value of Debt (j) Revolving Facility (a) 6.25% May 2022 $ — $ — First Lien Term Loan (b) 8.25% May 2022 13,038 18,008 Second Lien Term Loan (c) 11.00% Nov. 2022 8,487 9,013 PPP Loan (d) 1.00% May 2022 4,000 — Vehicle Term Loan (e) 5.27% Dec. 2021 453 725 Equipment Term Loan (f) 6.50% Nov. 2022 178 — Finance leases (g) 6.76% Various 7,879 8,784 Total debt 34,035 36,530 Debt issuance costs presented with debt — (95) Total debt, net 34,035 36,435 Less: current portion of long-term debt (h) (6,153) (6,430) Long-term debt $ 27,882 $ 30,005 _____________________ (a) The interest rate presented represents the interest rate as of September 30, 2020 on the Revolving Facility. (b) Interest on the First Lien Term Loan accrues at an annual rate equal to the LIBOR Rate plus 7.25%. (c) Interest on the Second Lien Term Loan (as defined below) accrues at an annual rate equal to 11.0%, payable in cash, in arrears, on the first day of each month. (d) Interest on the PPP Loan (as defined below) accrues at an annual rate of 1.00%. (e) Interest on the Vehicle Term Loan (as defined below) accrues at an annual rate of 5.27%. (f) Interest on the Equipment Term Loan (as defined below) accrues at an annual rate of 6.50%. (g) Our finance leases include finance lease arrangements related to fleet purchases and real property with a weighted-average annual interest rate of approximately 6.76%, which mature in varying installments between 2020 and 2029. (h) The principal payments due within one year for the First Lien Term Loan, Second Lien Term Loan, Vehicle Term Loan, Equipment Term Loan and finance leases are included in current portion of long-term debt as of September 30, 2020. (i) The debt issuance costs as of December 31, 2019 resulted from the amendment to the First Lien Term Loan, done in connection with our acquisition of Clearwater Three, LLC, Clearwater Five, LLC, and Clearwater Solutions, LLC. (j) Our Revolving Facility, First Lien Term Loan, Second Lien Term Loan, Vehicle Term Loan, Equipment Term Loan and finance leases bear interest at rates commensurate with market rates and therefore their respective carrying values approximate fair value. |
Derivative Warrants (Tables)
Derivative Warrants (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following table shows the warrant activity for the nine months ended September 30, 2020 and September 30, 2019: Nine Months Ended September 30, 2020 2019 Outstanding at the beginning of the period 118 118 Issued — — Exercised — — Outstanding at the end of the period 118 118 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Current income tax benefit (expense) $ — $ 46 $ (30) $ 33 Deferred income tax (expense) benefit — (92) 15 (204) Total income tax expense $ — $ (46) $ (15) $ (171) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The total grants awarded under both the Incentive Plan and the Director Plan during the three and nine months ended September 30, 2020 and September 30, 2019 are presented in the table below: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Restricted stock grants (1) — — 75 142 Total grants in the period — — 75 142 (1) Includes restricted stock awards, performance-based restricted stock units, and time-based restricted stock units granted under the Incentive Plan and the Director Plan. The total stock-based compensation expense, net of estimated forfeitures, included in “General and administrative expenses” in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and September 30, 2019 was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Restricted stock (1) $ 324 $ 325 $ 936 $ 1,740 Total expense $ 324 $ 325 $ 936 $ 1,740 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for our reportable segments related to operations is presented below. Rocky Mountain Northeast Southern Corporate/ Other Total Three months ended September 30, 2020 Revenue $ 11,308 $ 8,540 $ 3,948 $ — $ 23,796 Direct operating expenses 9,700 6,405 2,917 — 19,022 General and administrative expenses 836 460 194 2,594 4,084 Depreciation and amortization 2,810 2,514 1,486 11 6,821 Operating loss (2,038) (839) (649) (2,605) (6,131) Loss before income taxes (2,203) (945) (698) (3,279) (7,125) Nine months ended September 30, 2020 Revenue $ 46,998 $ 26,496 $ 12,710 $ — $ 86,204 Direct operating expenses 39,709 20,369 8,971 — 69,049 General and administrative expenses 3,849 1,528 704 7,372 13,453 Depreciation and amortization 9,149 7,597 5,201 19 21,966 Operating loss (17,892) (2,998) (5,562) (7,391) (33,843) Loss before income taxes (18,244) (3,324) (5,718) (9,647) (36,933) As of September 30, 2020 Total assets $ 60,730 $ 57,218 $ 63,279 $ 14,709 $ 195,936 Total assets held for sale — — — 778 778 Three months ended September 30, 2019 Revenue $ 27,996 $ 10,605 $ 4,497 $ — $ 43,098 Direct operating expenses 22,023 8,750 3,524 — 34,297 General and administrative expenses 1,377 647 72 2,678 4,774 Depreciation and amortization 4,191 2,667 2,063 7 8,928 Operating income (loss) 285 (1,459) (1,158) (2,685) (5,017) Income (loss) before income taxes 136 (1,355) (1,215) (3,572) (6,006) Nine months ended September 30, 2019 Revenue $ 81,866 $ 33,165 $ 15,934 $ — $ 130,965 Direct operating expenses 64,205 27,072 10,094 — 101,371 General and administrative expenses 3,629 2,222 825 8,853 15,529 Depreciation and amortization 12,797 8,152 6,359 32 27,340 Operating income (loss) 1,115 (4,398) (1,334) (8,885) (13,502) Income (loss) before income taxes 819 (4,510) (1,500) (12,051) (17,242) As of December 31, 2019 Total assets (a) $ 93,504 $ 64,023 $ 70,841 $ 7,731 $ 236,099 Total assets held for sale 1,751 135 — 778 2,664 _____________________ |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | Feb. 27, 2021USD ($) | Sep. 30, 2020USD ($) | Jul. 13, 2020 | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 07, 2017USD ($) |
Line of Credit Facility [Line Items] | |||||||
Restricted cash | $ 0 | $ 922,000 | $ 1,384,000 | $ 656,000 | |||
First Lien Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility | $ 45,000,000 | ||||||
Fixed charge coverage ratio | 1 | ||||||
First Lien Term Loan | Scenario, Forecast | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility | $ 15,000,000 | ||||||
Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility | $ 30,000,000 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Balance at the beginning of the period (January 1) | $ 231 | $ 0 |
Balance at the end of the period (September 30) | 0 | 386 |
Increase/(decrease) | $ (231) | $ 386 |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues Disaggregated by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | $ 22,666 | $ 38,862 | $ 80,093 | $ 119,101 |
Rental Revenue | 1,130 | 4,236 | 6,111 | 11,864 |
Total Revenue | 23,796 | 43,098 | 86,204 | 130,965 |
Water Transport Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 16,077 | 26,845 | 56,554 | 82,480 |
Disposal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 5,638 | 9,582 | 19,339 | 30,541 |
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 951 | 2,435 | 4,200 | 6,080 |
Operating Segments | Rocky Mountain | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 10,205 | 23,834 | 40,988 | 70,225 |
Rental Revenue | 1,103 | 4,162 | 6,010 | 11,641 |
Total Revenue | 11,308 | 27,996 | 46,998 | 81,866 |
Operating Segments | Rocky Mountain | Water Transport Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 8,165 | 17,446 | 31,128 | 51,603 |
Operating Segments | Rocky Mountain | Disposal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 1,380 | 4,452 | 6,769 | 13,669 |
Operating Segments | Rocky Mountain | Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 660 | 1,936 | 3,091 | 4,953 |
Operating Segments | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 8,513 | 10,537 | 26,401 | 32,959 |
Rental Revenue | 27 | 68 | 95 | 206 |
Total Revenue | 8,540 | 10,605 | 26,496 | 33,165 |
Operating Segments | Northeast | Water Transport Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 5,613 | 7,413 | 18,746 | 22,681 |
Operating Segments | Northeast | Disposal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 2,634 | 2,696 | 6,648 | 9,293 |
Operating Segments | Northeast | Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 266 | 428 | 1,007 | 985 |
Operating Segments | Southern | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 3,948 | 4,491 | 12,704 | 15,917 |
Rental Revenue | 0 | 6 | 6 | 17 |
Total Revenue | 3,948 | 4,497 | 12,710 | 15,934 |
Operating Segments | Southern | Water Transport Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 2,299 | 1,986 | 6,680 | 8,196 |
Operating Segments | Southern | Disposal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 1,624 | 2,434 | 5,922 | 7,579 |
Operating Segments | Southern | Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 25 | 71 | 102 | 142 |
Corporate/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 0 | 0 | 0 | 0 |
Rental Revenue | 0 | 0 | 0 | 0 |
Total Revenue | 0 | 0 | 0 | 0 |
Corporate/Other | Water Transport Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 0 | 0 | 0 | 0 |
Corporate/Other | Disposal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | 0 | 0 | 0 | 0 |
Corporate/Other | Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Service Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Sep. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 99 years |
Residual value guarantee | $ 2.5 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 20 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 464 | $ 848 | $ 1,813 | $ 2,301 |
Finance lease cost: | ||||
Amortization of leased assets | 526 | 743 | 1,689 | 1,968 |
Interest on lease liabilities | 137 | 127 | 426 | 367 |
Variable lease cost | 626 | 1,003 | 2,222 | 3,124 |
Sublease income | (38) | (8) | (70) | (81) |
Total net lease cost | 1,715 | 2,713 | 6,080 | 7,679 |
Short-term lease cost | $ 100 | $ 300 | $ 300 | $ 700 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet, Cash Flow and Other Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease assets | $ 1,762 | $ 2,886 |
Finance lease assets | 6,667 | 8,202 |
Total leased assets | 8,429 | 11,088 |
Current | ||
Operating lease liabilities | 348 | 1,442 |
Finance lease liabilities | 1,363 | 1,443 |
Noncurrent | ||
Operating lease liabilities | 1,416 | 1,457 |
Finance lease liabilities | 6,516 | 7,341 |
Total lease liabilities | 9,643 | 11,683 |
Accumulated amortization, finance lease assets | $ 3,300 | $ 1,700 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 45 years 6 months | 25 years 1 month 6 days |
Finance leases | 3 years 6 months | 4 years 3 months 18 days |
Weighted-average discount rate: | ||
Operating leases | 9.99% | 8.51% |
Finance leases | 6.76% | 6.77% |
Leases - Supplemental Disclosur
Leases - Supplemental Disclosure of Cash Flow Information and Other Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,813 | $ 2,301 |
Operating cash flows from finance leases | 426 | 367 |
Financing cash flows from finance leases | 1,082 | 1,265 |
Leased assets obtained in exchange for new operating lease liabilities | 0 | 0 |
Leased assets obtained in exchange for new finance lease liabilities | $ 349 | $ 8,014 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Operating Leases | ||
Remainder of 2020 | $ 276 | |
2021 | 466 | |
2022 | 325 | |
2023 | 200 | |
2024 | 190 | |
Thereafter | 6,717 | |
Total lease payments | 8,174 | |
Less amount representing executory costs | 0 | |
Net lease payments | 8,174 | |
Less amount representing interest | (6,410) | |
Present value of total lease liabilities | 1,764 | |
Less current lease liabilities | (348) | $ (1,442) |
Long-term lease liabilities | 1,416 | 1,457 |
Finance Leases | ||
Remainder of 2020 | 466 | |
2021 | 1,866 | |
2022 | 1,832 | |
2023 | 3,447 | |
2024 | 383 | |
Thereafter | 1,486 | |
Total lease payments | 9,480 | |
Less amount representing executory costs | 0 | |
Net lease payments | 9,480 | |
Less amount representing interest | (1,601) | |
Present value of total lease liabilities | 7,879 | |
Less current lease liabilities | (1,363) | (1,443) |
Long-term lease liabilities | 6,516 | $ 7,341 |
Finance lease payments | $ 1,700 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Proceeds from the issuance of stock | $ 0 | $ 31,057 | ||||
Payments on bridge term loan | $ 0 | $ 31,382 | ||||
Shares outstanding of successor company (in shares) | 15,614,981 | 15,772,000 | 15,735,000 | |||
Bridge Term Loan | ||||||
Class of Stock [Line Items] | ||||||
Conversion of loan to common stock | $ 1,100 | |||||
Carrying value of debt | $ 32,500 | |||||
Payments on bridge term loan | 31,400 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock for rights offering (in shares) | 3,382,000 | |||||
Rights Offering | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Proceeds from the issuance of stock | 31,400 | |||||
Aggregate offering price | $ 32,500 | |||||
Aggregate shares sold (in shares) | 3,381,894 | |||||
Purchase price (usd per share) | $ 9.61 | |||||
Issuance of common stock for rights offering (in shares) | 3,381,894 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares of common stock (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Numerator: Net loss | $ (7,125) | $ (6,779) | $ (23,044) | $ (6,052) | $ (5,006) | $ (6,355) | $ (36,948) | $ (17,413) |
Denominator: | ||||||||
Weighted average shares—basic (in shares) | 15,771,000 | 15,715,000 | 15,762,000 | 15,657,000 | ||||
Common stock equivalents (in shares) | 0 | 0 | 0 | 0 | ||||
Weighted average shares—diluted (in shares) | 15,771,000 | 15,715,000 | 15,762,000 | 15,657,000 | ||||
Loss per common share: | ||||||||
Net loss per basic common share (usd per share) | $ (0.45) | $ (0.39) | $ (2.34) | $ (1.11) | ||||
Net loss per diluted common share (usd per share) | $ (0.45) | $ (0.39) | $ (2.34) | $ (1.11) | ||||
Antidilutive stock-based awards excluded (in shares) | 422,000 | 580,000 | 409,000 | 516,000 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 1,339 | $ 1,339 | $ 1,353 | ||
Accumulated Amortization | (1,036) | (1,036) | (713) | ||
Net | 303 | $ 303 | $ 640 | ||
Remaining Useful Life (Years) | 3 years 6 months | 2 years 9 months 18 days | |||
Amortization of intangible assets | 100 | $ 100 | $ 300 | $ 300 | |
Disposal permits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 540 | 540 | $ 554 | ||
Accumulated Amortization | (326) | (326) | (269) | ||
Net | 214 | $ 214 | $ 285 | ||
Remaining Useful Life (Years) | 4 years 10 months 24 days | 5 years | |||
Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 799 | $ 799 | $ 799 | ||
Accumulated Amortization | (710) | (710) | (444) | ||
Net | $ 89 | $ 89 | $ 355 | ||
Remaining Useful Life (Years) | 3 months 18 days | 1 year |
Assets Held for Sale and Impa_2
Assets Held for Sale and Impairment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Line Items] | ||||
Impairment of long-lived assets | $ 0 | $ 120,000 | $ 15,579,000 | $ 237,000 |
Impairment of assets to be disposed of | $ 100,000 | 600,000 | 200,000 | |
Impairment of long-lived assets | 15,000,000 | |||
Northeast | ||||
Goodwill [Line Items] | ||||
Impairment of assets to be disposed of | 100,000 | |||
Rocky Mountain | ||||
Goodwill [Line Items] | ||||
Impairment of assets to be disposed of | $ 100,000 | |||
Impairment of long-lived assets | 11,600,000 | |||
Southern | ||||
Goodwill [Line Items] | ||||
Impairment of long-lived assets | $ 3,400,000 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued payroll and employee benefits | $ 2,302 | $ 1,837 |
Accrued insurance | 2,546 | 2,569 |
Accrued legal | 81 | 295 |
Accrued taxes | 1,371 | 695 |
Accrued interest | 210 | 179 |
Accrued operating costs | 2,503 | 2,653 |
Accrued other | 278 | 394 |
Current operating lease liabilities | 348 | 1,442 |
Total accrued and other current liabilities | $ 9,639 | $ 10,064 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | May 08, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Finance lease | $ 7,879 | ||
Total debt | 34,035 | $ 36,530 | |
Debt issuance costs presented with debt | 0 | (95) | |
Total debt, net | 34,035 | 36,435 | |
Less: current portion of long-term debt | (6,153) | (6,430) | |
Long-term debt | $ 27,882 | 30,005 | |
Revolving Facility | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.25% | ||
Carrying value of debt | $ 0 | 0 | |
First Lien Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 8.25% | ||
Carrying value of debt | $ 13,038 | 18,008 | |
First Lien Term Loan | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 7.25% | ||
Second Lien Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 11.00% | ||
Carrying value of debt | $ 8,487 | 9,013 | |
PPP Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.00% | 1.00% | |
Carrying value of debt | $ 4,000 | $ 0 | |
Vehicle Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.27% | 6.50% | |
Carrying value of debt | $ 453 | $ 725 | |
Equipment Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.50% | ||
Carrying value of debt | $ 178 | 0 | |
Finance leases | |||
Debt Instrument [Line Items] | |||
Finance lease | $ 7,879 | $ 8,784 | |
Weighted-average annual interest rate | 6.76% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 13, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | May 08, 2020USD ($) | Nov. 20, 2019USD ($) | Aug. 07, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Total debt outstanding | $ 36,530,000 | $ 34,035,000 | ||||
First Lien Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness outstanding | 18,008,000 | $ 13,038,000 | ||||
Interest rate | 8.25% | |||||
Maximum amount from credit agreement | $ 45,000,000 | |||||
Repayments of long-term debt | $ 2,500,000 | |||||
FCCR requirement, next twelve months | 0.70 | |||||
FCCR requirement, after year one | 1 | |||||
Fixed charge coverage ratio | 1 | |||||
Debt instrument, amendment fee | $ 375,000 | |||||
First Lien Term Loan | Through July 31, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 8,000,000 | |||||
First Lien Term Loan | Through August 31, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 5,500,000 | |||||
First Lien Term Loan | Through November 30, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 5,000,000 | |||||
First Lien Term Loan | On And After December 1, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 4,000,000 | |||||
First Lien Term Loan | Year 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, maximum capital expenditures | 6,000,000 | |||||
First Lien Term Loan | Year 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, maximum capital expenditures | 7,500,000 | |||||
First Lien Term Loan | Per Quarter For The Next Five Quarters | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, amendment fee | 50,000 | |||||
First Lien Term Loan | Maturity Date Of The First Lien Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, amendment fee | $ 125,000 | |||||
Second Lien Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness outstanding | 9,013,000 | $ 8,487,000 | ||||
Interest rate | 11.00% | |||||
FCCR requirement, next twelve months | 0.60 | |||||
FCCR requirement, after year one | 0.85 | |||||
Second Lien Term Loan | Through July 31, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | $ 6,800,000 | |||||
Second Lien Term Loan | Through August 31, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 4,700,000 | |||||
Second Lien Term Loan | Through November 30, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 4,250,000 | |||||
Second Lien Term Loan | On And After December 1, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, required minimum liquidity | 3,400,000 | |||||
Second Lien Term Loan | Year 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, maximum capital expenditures | 7,100,000 | |||||
Second Lien Term Loan | Year 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, maximum capital expenditures | $ 8,800,000 | |||||
PPP Loan | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness outstanding | 0 | $ 4,000,000 | ||||
Interest rate | 1.00% | 1.00% | ||||
Maximum amount from credit agreement | $ 4,000,000 | |||||
Vehicle Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness outstanding | 725,000 | $ 453,000 | ||||
Debt instrument, periodic payment | $ 7,000 | |||||
Interest rate | 6.50% | 5.27% | ||||
Equipment Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness outstanding | $ 0 | $ 178,000 | ||||
Debt instrument, face amount | $ 200,000 | |||||
Interest rate | 6.50% | |||||
Finance leases | Appalachian Water Services | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness outstanding | $ 7,900,000 |
Derivative Warrants - Narrative
Derivative Warrants - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2020warrant$ / shares | Dec. 31, 2019USD ($)$ / shares | |
Class of Warrant or Right [Line Items] | ||
Plan of reorganization, number of warrants Issued | warrant | 118,137 | |
Par value of successor common stock (usd per share) | $ 0.01 | $ 0.01 |
Exercise price of warrants (usd per share) | $ 39.82 | |
Expiration term | 7 years | |
Derivative warrant liability | $ | $ 354 | |
2018 Notes | ||
Class of Warrant or Right [Line Items] | ||
Interest rate | 9.875% |
Derivative Warrants - Warrants
Derivative Warrants - Warrants Outstanding Reconciliation (Details) - Warrant - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Outstanding at the beginning of the period (in shares) | 118 | 118 |
Issued (in shares) | 0 | 0 |
Exercised (in shares) | 0 | 0 |
Outstanding at the end of the period (in shares) | 118 | 118 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax benefit (expense) | $ 0 | $ 46 | $ (30) | $ 33 |
Deferred income tax (expense) benefit | 0 | (92) | 15 | (204) |
Total income tax expense | $ 0 | $ (46) | $ (15) | $ (171) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax benefit rate | 0.00% | (0.80%) | (0.00%) | (1.00%) | |
Scenario, Forecast | |||||
Income Tax Contingency [Line Items] | |||||
Effective income tax benefit rate | (0.10%) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based costs, not yet recognized | $ 0.4 | ||
Share-based costs, not yet recognized, period for recognition | 3 months 18 days | ||
2017 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares of common stock available for issuance of awards (in shares) | 771,000 | 1,772,058 | |
2018 Restricted Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares of common stock available for issuance of awards (in shares) | 0 | 100,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Arrangements (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total grants in the period (in shares) | 0 | 0 | 75 | 142 |
Share-based compensation expense | $ 324 | $ 325 | $ 936 | $ 1,740 |
Restricted stock grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock grants (in shares) | 0 | 0 | 75 | 142 |
Share-based compensation expense | $ 324 | $ 325 | $ 936 | $ 1,740 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jul. 11, 2017 | Dec. 31, 2017 | Sep. 30, 2020 | Dec. 31, 2019 | Jun. 28, 2017 |
Loss Contingencies [Line Items] | |||||
Long-term contingent consideration | $ 500 | $ 500 | |||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Estimated tax required to be paid if appeal is lost | 1,000 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimated tax required to be paid if appeal is lost | $ 1,500 | ||||
Chapter 11 Bankruptcy | |||||
Loss Contingencies [Line Items] | |||||
Long-term contingent consideration | $ 500 | $ 8,500 | |||
Amount to be transferred upon emergence from chapter 11 | $ 500 | $ 500 |
Segments - Narrative (Detail)
Segments - Narrative (Detail) | Sep. 30, 2020operating_division |
Segment Reporting [Abstract] | |
Number of operating divisions | 3 |
Segments - Financial Informatio
Segments - Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 23,796 | $ 43,098 | $ 86,204 | $ 130,965 | |
Direct operating expenses | 19,022 | 34,297 | 69,049 | 101,371 | |
General and administrative expenses | 4,084 | 4,774 | 13,453 | 15,529 | |
Depreciation and amortization | 6,821 | 8,928 | 21,966 | 27,340 | |
Operating income (loss) | (6,131) | (5,017) | (33,843) | (13,502) | |
Income (loss) before income taxes | (7,125) | (6,006) | (36,933) | (17,242) | |
Total assets | 195,936 | 195,936 | $ 236,099 | ||
Total assets held for sale | 778 | 778 | 2,664 | ||
Operating Segments | Rocky Mountain | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 11,308 | 27,996 | 46,998 | 81,866 | |
Direct operating expenses | 9,700 | 22,023 | 39,709 | 64,205 | |
General and administrative expenses | 836 | 1,377 | 3,849 | 3,629 | |
Depreciation and amortization | 2,810 | 4,191 | 9,149 | 12,797 | |
Operating income (loss) | (2,038) | 285 | (17,892) | 1,115 | |
Income (loss) before income taxes | (2,203) | 136 | (18,244) | 819 | |
Total assets | 60,730 | 60,730 | 93,504 | ||
Total assets held for sale | 0 | 0 | 1,751 | ||
Operating Segments | Northeast | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 8,540 | 10,605 | 26,496 | 33,165 | |
Direct operating expenses | 6,405 | 8,750 | 20,369 | 27,072 | |
General and administrative expenses | 460 | 647 | 1,528 | 2,222 | |
Depreciation and amortization | 2,514 | 2,667 | 7,597 | 8,152 | |
Operating income (loss) | (839) | (1,459) | (2,998) | (4,398) | |
Income (loss) before income taxes | (945) | (1,355) | (3,324) | (4,510) | |
Total assets | 57,218 | 57,218 | 64,023 | ||
Total assets held for sale | 0 | 0 | 135 | ||
Operating Segments | Southern | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 3,948 | 4,497 | 12,710 | 15,934 | |
Direct operating expenses | 2,917 | 3,524 | 8,971 | 10,094 | |
General and administrative expenses | 194 | 72 | 704 | 825 | |
Depreciation and amortization | 1,486 | 2,063 | 5,201 | 6,359 | |
Operating income (loss) | (649) | (1,158) | (5,562) | (1,334) | |
Income (loss) before income taxes | (698) | (1,215) | (5,718) | (1,500) | |
Total assets | 63,279 | 63,279 | 70,841 | ||
Total assets held for sale | 0 | 0 | 0 | ||
Corporate/ Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Direct operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses | 2,594 | 2,678 | 7,372 | 8,853 | |
Depreciation and amortization | 11 | 7 | 19 | 32 | |
Operating income (loss) | (2,605) | (2,685) | (7,391) | (8,885) | |
Income (loss) before income taxes | (3,279) | $ (3,572) | (9,647) | $ (12,051) | |
Total assets | 14,709 | 14,709 | 7,731 | ||
Total assets held for sale | $ 778 | $ 778 | $ 778 |
Uncategorized Items - nes-20200
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |