Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Forbes Energy Services Ltd. | ||
Entity Central Index Key | 1,434,842 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 22,214,855 | ||
Entity Public Float | $ 20.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 74,611 | $ 34,918 |
Accounts receivable - trade, net | 26,486 | 83,644 |
Accounts receivable - related parties | 0 | 342 |
Accounts receivable - other | 1,216 | 455 |
Prepaid expenses | 8,386 | 9,357 |
Other current assets | 1,100 | 1,180 |
Total current assets | 111,799 | 129,896 |
Property and equipment, net | 277,029 | 322,663 |
Intangible assets, net | 19,431 | 22,292 |
Deferred financing costs, net of accumulated amortization of $7.1 million and $5.5 million for 2015 and 2014, respectively | 3,598 | 5,053 |
Restricted cash | 51 | 1,381 |
Other assets | 519 | 2,328 |
Total assets | 412,427 | 483,613 |
Current liabilities | ||
Current portions of long-term debt | 25,243 | 11,204 |
Accounts payable - trade | 8,995 | 19,119 |
Accounts payable - related parties | 8 | 186 |
Accrued dividends | 61 | 61 |
Accrued interest payable | 1,401 | 1,364 |
Accrued expenses | 10,726 | 18,848 |
Total current liabilities | 46,434 | 50,782 |
Long-term debt, net of current portion | 283,071 | 286,687 |
Deferred tax liability | 899 | 17,653 |
Total liabilities | 330,404 | 355,122 |
Commitments and contingencies (Note 10) | 0 | 0 |
Temporary equity | ||
Series B senior convertible preferred stock (redemption value of $14.7 million) | 14,644 | 14,602 |
Shareholders’ equity | ||
Common stock, $.04 par value, 112,500 shares authorized, 22,210 and 21,845 shares issued and outstanding at December 31, 2015 and 2014, respectively | 889 | 874 |
Additional paid-in capital | 194,253 | 194,704 |
Accumulated deficit | (127,763) | (81,689) |
Total shareholders’ equity | 67,379 | 113,889 |
Total liabilities and shareholders’ equity | $ 412,427 | $ 483,613 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization of deferred financing costs | $ 7.1 | $ 5.5 |
Redemption value | $ 14.7 | $ 14.7 |
Common stock, par value (in usd per share) | $ 0.04 | $ 0.04 |
Common stock, shares authorized (in shares) | 112,500,000 | 112,500,000 |
Common stock, shares issued (in shares) | 22,210,000 | 22,210,000 |
Common stock, shares outstanding (in shares) | 21,845,000 | 21,845,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Well servicing | $ 150,949 | $ 285,338 | $ 231,930 |
Fluid logistics | 93,158 | 163,940 | 188,003 |
Total revenues | 244,107 | 449,278 | 419,933 |
Expenses | |||
Well servicing | 117,514 | 213,278 | 182,180 |
Fluid logistics | 74,905 | 127,775 | 141,957 |
General and administrative | 31,591 | 36,428 | 30,186 |
Depreciation and amortization | 55,034 | 54,959 | 54,838 |
Total expenses | 279,044 | 432,440 | 409,161 |
Operating income (loss) | (34,937) | 16,838 | 10,772 |
Other income (expense) | |||
Interest income | 211 | 9 | 27 |
Interest expense | (27,962) | (28,228) | (28,211) |
Loss from continuing operations before taxes | (62,688) | (11,381) | (17,412) |
Income tax benefit | (16,614) | (3,060) | (4,615) |
Loss from continuing operations | (46,074) | (8,321) | (12,797) |
Loss from discontinued operations, net of tax benefit of $246 in 2013 | 0 | (293) | |
Net loss | (46,074) | (8,321) | (13,090) |
Preferred stock dividends | (776) | (776) | (776) |
Net loss attributable to common shareholders | $ (46,850) | $ (9,097) | $ (13,866) |
Loss per share of common stock from continuing operations | |||
Basic and diluted (in usd per share) | $ (2.12) | $ (0.42) | $ (0.64) |
Loss per share of common stock from discontinued operations | |||
Basic and diluted (in usd per share) | 0 | 0 | (0.01) |
Loss per share of common stock | |||
Basic and diluted (in usd per share) | $ (2.12) | $ (0.42) | $ (0.65) |
Weighted average number of shares of common stock outstanding | |||
Basic and diluted (in shares) | 22,071 | 21,749 | 21,388 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Income Statement [Abstract] | |
Tax benefit on income from discontinued operations, net of tax expense | $ 246 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2012 | $ 132,168 | $ 14,518 | $ 844 | $ 191,602 | $ (60,278) |
Beginning balance (in shares) at Dec. 31, 2012 | 588,000 | 21,093,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 2,179 | 2,179 | |||
Net income (loss) | (13,090) | (13,090) | |||
Exercise of stock options | 7 | 7 | |||
Exercise of stock options (in shares) | 3,000 | ||||
Issuance of restricted stock | 530 | $ 15 | 515 | ||
Issuance of restricted stock (in shares) | 378,000 | ||||
Preferred stock dividends and accretion | (776) | $ 42 | (776) | ||
Ending balance at Dec. 31, 2013 | 121,018 | $ 14,560 | $ 859 | 193,527 | (73,368) |
Ending balance (in shares) at Dec. 31, 2013 | 588,000 | 21,474,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 1,324 | 1,324 | |||
Net income (loss) | $ (8,321) | (8,321) | |||
Exercise of stock options (in shares) | 0 | ||||
Issuance of restricted stock | $ 644 | $ 15 | 629 | ||
Issuance of restricted stock (in shares) | 371,000 | ||||
Preferred stock dividends and accretion | (776) | $ 42 | (776) | ||
Ending balance at Dec. 31, 2014 | 113,889 | $ 14,602 | $ 874 | 194,704 | (81,689) |
Ending balance (in shares) at Dec. 31, 2014 | 588,000 | 21,845,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (46,074) | (46,074) | |||
Exercise of stock options (in shares) | 0 | ||||
Issuance of restricted stock | $ 340 | $ 15 | 325 | ||
Issuance of restricted stock (in shares) | 365,000 | ||||
Preferred stock dividends and accretion | (776) | $ 42 | (776) | ||
Ending balance at Dec. 31, 2015 | $ 67,379 | $ 14,644 | $ 889 | $ 194,253 | $ (127,763) |
Ending balance (in shares) at Dec. 31, 2015 | 588,000 | 22,210,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (46,074) | $ (8,321) | $ (13,090) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation expense | 52,173 | 52,098 | 51,977 |
Amortization expense | 2,861 | 2,861 | 2,861 |
Share-based compensation | 442 | 3,264 | 2,852 |
Deferred tax benefit | (16,754) | (3,957) | (4,977) |
(Gain) loss on disposal of assets, net | (705) | (684) | 443 |
Bad debt expense | 1,409 | 967 | 1,353 |
Amortization of deferred financing cost | 1,455 | 1,807 | 1,518 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 54,989 | (2,296) | 8,857 |
Accounts receivable - related parties | 342 | (157) | (125) |
Prepaid expenses and other current assets | 3,320 | 4,225 | (3,229) |
Accounts payable - trade | (8,679) | (5,514) | 6,363 |
Accounts payable - related parties | (178) | (373) | 405 |
Accrued expenses | (8,056) | 3,327 | 1,202 |
Accrued interest payable | 37 | (3) | 13 |
Net cash provided by operating activities | 36,582 | 47,244 | 56,423 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (9,568) | (37,877) | (42,626) |
Proceeds from sale of property and equipment | 1,554 | 5,431 | 1,449 |
Insurance proceeds | 1,262 | 0 | 0 |
Restricted cash | 1,330 | (1) | 59 |
Net cash used in investing activities | (5,422) | (32,447) | (41,118) |
Cash flows from financing activities: | |||
Payments for debt issuance costs | 0 | 0 | (338) |
Proceeds from the exercise of stock options | 0 | 0 | 7 |
Borrowings on debt | 15,000 | 0 | 0 |
Repayments of debt | (5,564) | (5,083) | (5,306) |
Dividends paid on Series B Senior Convertible Preferred Stock | (735) | (735) | (735) |
Payments of tax withholding obligations related to restricted stock | (168) | (470) | (143) |
Net cash provided by (used in) financing activities | 8,533 | (6,288) | (6,515) |
Net increase in cash and cash equivalents | 39,693 | 8,509 | 8,790 |
Cash and cash equivalents: | |||
Beginning of year | 34,918 | 26,409 | 17,619 |
End of year | $ 74,611 | $ 34,918 | $ 26,409 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Nature of Business Forbes Energy Services Ltd., or FES Ltd., is an independent oilfield services contractor that provides a wide range of well site services to oil and natural gas drilling and producing companies to help develop and enhance the production of oil and natural gas. These services include fluid hauling, fluid disposal, well maintenance, completion services, workovers and recompletions, plugging and abandonment, and tubing testing. Our operations are concentrated in the major onshore oil and natural gas producing regions of Texas, with an additional location in Pennsylvania. Prior to its closure in August 2015, we had one location in Mississippi. We believe that our broad range of services, which extends from initial drilling, through production, to eventual abandonment, is fundamental to establishing and maintaining the flow of oil and natural gas throughout the life cycle of our customers’ wells. The Company's headquarters and executive offices are located at 3000 South Business Highway 281, Alice, Texas 78332. The Company can be reached at (361) 664-0549. As used in these consolidated financial statements, the “Company,” the “Forbes Group,” “we,” and “our” mean FES Ltd. and its subsidiaries, except as otherwise indicated. |
Risk and Uncertainties
Risk and Uncertainties | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Risk and Uncertainties | Risk and Uncertainties As an independent oilfield services contractor that provides a broad range of drilling-related and production-related services to oil and natural gas companies, primarily onshore in Texas, our revenue, profitability, cash flows and future rate of growth are substantially dependent on our ability to (1) maintain adequate equipment utilization, (2) maintain adequate pricing for the services we provide, and (3) maintain a trained work force. Failure to do so could adversely affect our financial position, results of operations, and cash flows. Because our revenues are generated primarily from customers who are subject to the same factors generally impacting the oil and natural gas industry, our operations are also susceptible to market volatility resulting from economic, cyclical, weather related, or other factors related to such industry. Changes in the level of operating and capital spending in the industry, decreases in oil and natural gas prices, or industry perception about future oil and natural gas prices could materially decrease the demand for our services, adversely affecting our financial position, results of operations, and cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Principles of Consolidation The Company’s consolidated financial statements include the accounts of FES Ltd. and all of its wholly owned, direct and indirect subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Revenue Recognition Well Servicing –Well servicing consists primarily of maintenance services, workover services, completion services, plugging and abandonment services, and tubing testing. The Company prices well servicing by the hour of service performed, or on occasion, bid/turnkey pricing. Fluid Logistics – Fluid logistics consists primarily of the sale, transportation, storage, and disposal of fluids used in drilling, production, and maintenance of oil and natural gas wells. The Company prices fluid logistics services by the job, by the hour, or by the quantities sold, disposed, or hauled. The Company recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists, and the price is fixed or determinable. Revenues are presented net of any sales taxes collected by the Company from its customers that are remitted to governmental authorities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are based on earned revenues. The Company provides an allowance for doubtful accounts, which is based on a review of outstanding receivables, historical collection information, and existing economic conditions. Provisions for doubtful accounts are recorded when it becomes evident that the customer will not be likely to make the required payments at either contractual due dates or in the future. The accounts are written off against the provision when it becomes evident that the account is not collectable. The following reflects changes in our allowance for doubtful accounts: Balance as of January 1, 2013 $ 2,659 Provision 1,353 Bad debt write-off (60 ) Balance as of December 31, 2013 3,952 Provision 967 Bad debt write-off (880 ) Balance as of December 31, 2014 4,039 Provision 1,409 Bad debt write-off (3,644 ) Balance as of December 31, 2015 $ 1,804 Property and Equipment Property and equipment are recorded at cost. Improvements or betterments that extend the useful life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. The costs of assets retired or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts in the period of disposal. Gains or losses resulting from property disposals are credited or charged to operations currently. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Depreciation expense was $52.2 million , $52.1 million , and $52.0 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Impairment Long-term assets consist of property, equipment, and identifiable intangible assets. The Company makes judgments and estimates regarding the carrying value of these assets, including amounts to be capitalized, estimated useful lives, depreciation and amortization methods to be applied, and possible impairment. We evaluate our long-lived assets, at a minimum, annually and whenever events and changes in circumstances indicate the carrying amount of our net assets may not be recoverable due to various external or internal factors. For property and equipment, events or circumstances indicating possible impairment may include a significant change in the business environment or a significant decline in financial results. For intangible assets, events or circumstances indicating possible impairment may include a significant change in the assessment of future operations or an adverse change in how the asset is being used. When an indicator of possible impairment exists, we use estimated future undiscounted cash flows to assess recoverability of our long-lived assets. These cash flow projections require us to make judgments regarding long-term forecasts of future revenue and costs related to the assets subject to review. These forecasts include assumptions related to the rates we bill our customers, equipment utilization, equipment additions, staffing levels, pay rates, and other expenses. These forecasts also require assumptions about demand for our products and services, future market conditions, and technological developments. These assumptions considered the drop in oil and natural gas prices over the last eighteen months and projected future pricing trends. Impairment is indicated when future cash flows are less than the carrying amount of the assets. An impairment loss would be recorded in the period in which it is determined the carrying amount is not recoverable. The impairment loss is the amount by which the carrying amount exceeds the fair market value. We assessed the long-lived assets of our Well Servicing segment for impairment and determined that projected future cash flows exceeded the carrying amount of the assets. This indicated that the carrying amount of the property and equipment would be recoverable. We assessed the long-lived assets of our Fluid Logistics segment for impairment and determined that projected future cash flows exceeded the carrying amount of the assets. This indicated that the carrying amount of the property and equipment would be recoverable. Based on our assessments, for the years ended December 31, 2015, 2014, and 2013, we concluded that no impairment was indicated. Nevertheless, volatility in the oil and natural gas industry, which is driven by factors over which we have no control, could affect the fair market value of our equipment fleet and cause us to conclude at a future date that an impairment is evident. Under certain circumstances, this could trigger a write-down of our assets for accounting purposes, which could have a material adverse impact on our financial position and results of operations. Restricted Cash Restricted cash serves as collateral for loans and certain outstanding letters of credit. The Company had restricted cash balances of $0.1 million and $1.4 million at December 31, 2015 and 2014 , respectively. Intangible Assets Intangible assets consist primarily of customer relationships and trade name and are subject to amortization for the period of time which the assets are expected to contribute directly or indirectly to future cash flows. Deferred Financing Costs The Company amortizes the deferred financing costs over the period of the agreements governing the 9% Senior Notes and the revolving credit facility on an effective interest basis, as a component of interest expense. Amortization of deferred financing costs was $1.5 million , $1.8 million , and $1.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. Share-Based Compensation The Company measures share-based compensation cost as of the grant date based on the estimated fair value of the award less an estimated rate for pre-vesting forfeitures, and recognizes compensation expense on a straight-line basis over the vesting period. The Company classifies stock awards as either an equity award or a liability award. Equity classified awards are valued as of the grant date using market price. Liability classified awards are re-measured at fair value at the end of each reporting date until settled. Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in the period that includes the statutory enactment date. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records uncertain tax positions at their net recognizable amount, based on the amount that management deems is more likely than not to be sustained upon ultimate settlement with tax authorities. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense. The Company has not recognized any material uncertain tax positions for the years ended December 31, 2015 , 2014 , and 2013 . Earnings per Share Basic EPS is calculated by dividing the net income attributable to common shareholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, restricted stock, and restricted stock units. Preferred stock is a participating security which means the security may participate in undistributed earnings with common stock. Such securities are deemed to not be participating in losses if there is no obligation to fund such losses. The holders of the Series B Preferred Stock would be entitled to share in dividends, on an as-converted basis, if the holders of common stock were to receive dividends in excess of 5% of the then current common stock market price on a cumulative basis over the past twelve months, provided that the holders of the Series B Preferred Stock would only share in that portion of the dividend that exceeds 5% . The Series B Preferred Stock was not deemed to be participating since there were net losses from operations for the years ended December 31, 2015 , 2014 , and 2013 . Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 - Inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. • Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In valuing certain assets and liabilities, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. A description of the valuation methodologies used for assets measured at fair value on a recurring basis, as well as the general classification of such assets pursuant to the fair value hierarchy, is set forth below. The carrying amounts of cash and cash equivalents, accounts receivable-trade, accounts receivable-related parties, accounts receivable – other, accounts payable – trade, accounts payable-related parties, and insurance notes approximate fair value because of the short maturity of these instruments. The fair values of third party notes and equipment notes are level two inputs in the fair value hierarchy, and approximate their carrying values, based on current market rates at which the Company could borrow funds with similar maturities. December 31, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) 9% senior notes due 2019 $ 280,000 $ 131,600 $ 280,000 $ 165,200 The fair value of our 9% senior notes due 2019, or the 9% Senior Notes, is based on dealer quoted market prices at December 31, 2015 and 2014 , and is considered Level 1 within the fair value hierarchy. Environmental The Company is subject to extensive federal, state, and local environmental laws and regulations. These laws, which are constantly changing, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the adverse environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. There were no material environmental liabilities for each of the years ended December 31, 2015 and 2014 . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides guidance for revenue recognition and which supersedes nearly all existing revenue recognition under ASU 2014-09. This ASU provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance permits two methods of transition upon adoption: full retrospective and modified retrospective. Under the full retrospective method, the standard would be applied to each prior reporting period presented. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB issued final revised guidance that defers the effective date of the revenue recognition standard to be for annual and interim periods beginning after December 15, 2017. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide related footnote disclosures in certain circumstances. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company does not anticipate that this pronouncement will have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Retrospective application is required and early adoption is permitted. The adoption of ASU 2015-03 only impacts balance sheet classification; therefore, it will not have a material impact on the Company's consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" which clarifies the treatment of debt issuance costs from line-of-credit arrangements after adoption of ASU 2015-03. ASU 2015-15 clarifies that the Securities and Exchange Commission staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 became effective upon issuance, and the Company does not anticipate that this pronouncement will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which simplifies the presentation of deferred income taxes by requiring that deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 becomes effective for interim and annual periods beginning after December 31, 2016. The Company does not anticipate that this pronouncement will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which increases the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for operating leases with lease terms greater than 12 months. It also requires additional disclosures about leasing arrangements to help users of financial statements better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 becomes effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Our major classes of intangible assets consist of our customer relationships, trade names, safety training program, and dispatch software. The Company expenses costs associated with extensions or renewals of intangible assets. There were no such extensions or renewals in the years ended December 31, 2015 , 2014 , or 2013 . Amortization expense is calculated using the straight-line method over the period indicated. Amortization expense for each of the years ended December 31, 2015 , 2014 , and 2013 was $2.9 million . Estimated amortization expense for the years 2016 and 2017 is $2.9 million per year and $2.7 million for each of the years 2018 through 2022. The weighted average amortization period remaining for intangible assets is 6.8 years. The following sets forth the identified intangible assets by major asset class: December 31, 2015 December 31, 2014 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Customer relationships 15 $ 31,896 $ 17,011 $ 14,885 $ 31,896 $ 14,885 $ 17,011 Trade names 15 8,050 4,293 3,757 8,050 3,756 4,294 Safety training program 15 1,182 630 552 1,182 552 630 Dispatch software 10 1,135 909 226 1,135 795 340 Other 10 58 47 11 58 41 17 $ 42,321 $ 22,890 $ 19,431 $ 42,321 $ 20,029 $ 22,292 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Incentive Compensation Plans From time to time, the Company grants stock options, restricted stock units, or other awards to its employees, including executive officers, and directors. After taking into account the restricted stock and restricted stock units granted during 2015 (as discussed in the Restricted Stock and Restricted Stock Units paragraph below), there were 750,540 shares available for future grants under the Company's 2012 Incentive Compensation Plan, or the 2012 Plan. There were no stock option awards issued under the 2012 Plan for the years ended December 31, 2015, 2014, and 2013. Stock Options The following table presents a summary of the Company’s stock option activity for the years ended December 31, 2015 and 2014 : Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2013 1,400,425 $ 6.99 6.47 years $ 316,994 Stock options: Granted — — Exercised — — Forfeited (251,800 ) 2.65 Options outstanding at December 31, 2014 1,148,625 7.94 5.44 years — Stock options: Granted — — Exercised — — Forfeited (534,500 ) 9.25 Options outstanding at December 31, 2015 614,125 $ 6.80 4.87 years $ — Vested and expected to vest at December 31, 2015 614,125 $ 6.80 4.87 years $ — Exercisable at December 31, 2015 614,125 $ 6.80 4.87 years $ — During the years ended December 31, 2015 , 2014 , and 2013 , the Company recorded total stock-based compensation expense related to stock options of $0.0 million , $1.2 million , and $0.7 million , respectively. No stock-based compensation costs were capitalized in 2015 , 2014 , or 2013 . As of December 31, 2015 , there is no unrecognized cost for stock options. There were no stock options granted during the years ended December 31, 2015 and 2014 . Restricted Stock There was no restricted stock granted during 2015 or 2014. The table below presents restricted stock activity for the year ended December 31, 2013. Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2012 41,666 $ 6.15 Granted — — Vested (41,666 ) 6.15 Forfeited — — Nonvested at December 31, 2013 — $ — There was no stock based compensation expense recognized for these restricted stock grants for the years ended December 31, 2015 , and 2014 , and less than $0.1 million in stock based compensation expense recognized for these restricted stock grants in 2013 . Restricted Stock Units Restricted Stock Units granted to employees, executives, and directors range from immediately vesting to vesting over a period from one to five years. Unvested restricted stock units are forfeited upon termination of grantee's employment. The following table presents a summary of restricted stock unit activity for the years ended December 31, 2015 , 2014 and 2013 : Equity Based Liability Based Total Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2012 124,753 — 124,753 $ 3.45 Granted 930,284 — 930,284 3.44 Vested (374,848 ) — (374,848 ) 3.38 Forfeited (5,400 ) — (5,400 ) 2.65 Nonvested at December 31, 2013 674,789 — 674,789 $ 3.49 Granted 199,254 262,273 461,527 3.85 Vested (498,821 ) — (498,821 ) 3.84 Forfeited — — — — Nonvested at December 31, 2014 375,222 262,273 637,495 $ 3.47 Granted 127,008 1,191,704 1,318,712 1.19 Vested (310,451 ) (214,432 ) (524,883 ) 2.33 Forfeited (73,000 ) — (73,000 ) 3.53 Nonvested at December 31, 2015 118,779 1,239,545 1,358,324 $ 1.70 In the years ended December 31, 2015 , 2014 , and 2013 , participants utilized a net withholding exercise method, in which restricted stock units were surrendered to cover payroll withholding tax. The total pretax cash outflow, as included in withholding tax payments in our condensed consolidated statements of cash flows, for these net withholding exercises was $0.2 million , $0.5 million and $0.1 million , respectively. Stock compensation expense of $0.5 million , $1.3 million , and $2.1 million was recognized for the restricted stock units granted for the years ended 2015 , 2014 , and 2013 , respectively. The remaining compensation expense to be recognized over a weighted-average period of 1.9 years is $0.6 million . The following table summarizes the Company's equity and liability stock based compensation expense (in thousands): 2015 2014 2013 Restricted stock expense $ — $ — $ 41 Restricted stock unit expense 508 1,253 2,102 Stock option expense — 1,185 709 Performance based liability award expense associated with restricted stock units (66 ) 826 — Total stock-based compensation expense $ 442 $ 3,264 $ 2,852 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment at December 31, 2015 and 2014 consisted of the following: Estimated Life in Years December 31, 2015 2014 (in thousands) Well servicing equipment 9-15 years $ 413,543 $ 417,561 Autos and trucks 5-10 years 126,994 124,338 Disposal wells 5-15 years 38,426 38,167 Building and improvements 5-30 years 14,107 14,423 Furniture and fixtures 3-15 years 6,573 6,157 Land 1,524 1,452 601,167 602,098 Accumulated depreciation (324,138 ) (279,435 ) $ 277,029 $ 322,663 The Company is obligated under various capital leases for certain vehicles and equipment that expire at various dates during the next five years. The gross amount of property and equipment and related accumulated depreciation recorded under capital leases and included above consists of the following: December 31, 2015 2014 (in thousands) Well servicing equipment $ 15,215 $ 16,411 Autos and trucks 15,181 15,809 30,396 32,220 Accumulated depreciation (14,219 ) (10,786 ) $ 16,177 $ 21,434 Depreciation of assets held under capital leases of approximately $3.4 million , $4.6 million , and $3.1 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, is included in depreciation and amortization expense in the consolidated statements of operations. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accrued expenses and accounts payable – trade at December 31, 2015 and 2014 , consisted of the following: December 31, 2015 2014 (in thousands) Accrued wages $ 2,264 $ 8,387 Accrued insurance 7,266 7,883 Other accrued expenses 1,196 2,578 Total accrued expenses $ 10,726 $ 18,848 Accounts payable - vendor financings $ 242 $ 1,687 Accounts payable - other 8,753 17,432 Total accounts payable - trade $ 8,995 $ 19,119 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Debt at December 31, 2015 and 2014 , consisted of the following: December 31, 2015 2014 (in thousands) 9% Senior Notes $ 280,000 $ 280,000 Revolving Credit Facility 15,000 — Third party equipment notes and capital leases 7,133 12,170 Insurance notes 6,181 5,721 308,314 297,891 Less: Current portion (25,243 ) (11,204 ) $ 283,071 $ 286,687 Aggregate maturities of long-term debt as of December 31, 2015 are as follows (in thousands): 2016 $ 25,243 2017 2,827 2018 244 2019 280,000 Total $ 308,314 9% Senior Notes On June 7, 2011, the Company issued $280.0 million in principal amount of 9% Senior Notes. The 9% Senior Notes mature on June 15, 2019 , and require semi-annual interest payments, in arrears, at an annual rate of 9% on June 15 and December 15 of each year until maturity. No principal payments are due until maturity. The 9% Senior Notes are guaranteed by the domestic subsidiaries (the “Guarantor Subs”) of the Company, which include Forbes Energy Services LLC (“FES LLC”), C.C. Forbes, LLC (“CCF”), TX Energy Services, LLC (“TES”), and Forbes Energy International, LLC (“FEI LLC”). All of the Guarantor Subs are 100% owned and each guarantees the securities on a full and unconditional and joint and several basis, subject to customary release provisions which include: (i) the transfer, sale or other disposition (by merger or otherwise) of all or substantially all of its assets of Guarantor, or of all of the capital stock; (ii) the proper designation of a Guarantor as an "Unrestricted Subsidiary;" (iii) the legal defeasance or satisfaction and discharge of the Indenture governing the 9% Senior Notes (the "Senior Indenture"); and (iv) as may be provided in any intercreditor agreement entered into in connection with any current and future credit facilities, in each such case specified in clauses (i) through (iii) above in accordance with the requirements therefore set forth in the Senior Indenture. The parent company has no independent assets or operations. There are no significant restrictions on the parent company's ability or the ability of any guarantor to obtain funds from its subsidiaries by such means as a dividend or loan. Subsequent to June 15, 2015, the Company may, at its option, redeem all or part of the 9% Senior Notes from time to time at specified redemption prices and subject to certain conditions required by the Senior Indenture. The Company is required to make an offer to purchase the notes and to repurchase any notes for which the offer is accepted at 101% of their principal amount, plus accrued and unpaid interest, if there is a change of control. The Company is required to make an offer to repurchase the notes and to repurchase any notes for which the offer is accepted at 100% of their principal amount, plus accrued and unpaid interest, following certain asset sales. The Company is permitted under the terms of the Senior Indenture to incur additional indebtedness in the future, provided that certain financial conditions set forth in the Senior Indenture are satisfied. The Company is subject to certain covenants contained in the Senior Indenture, including provisions that limit or restrict the Company's and certain future subsidiaries’ abilities to incur additional debt, to create, incur, or permit to exist certain liens on assets, to make certain dispositions of assets, to make payments on certain subordinated indebtedness, to pay dividends or certain other payments to FES Ltd.'s equity holders, to engage in mergers, consolidations or other fundamental changes, to change the nature of its business, or to engage in transactions with affiliates. Due to cross-default provisions in the Senior Indenture and the loan agreement governing our revolving credit facility, with certain exceptions, a default and acceleration of outstanding debt under one debt agreement would result in the default and possible acceleration of outstanding debt under the other debt agreement. Accordingly, an event of default could result in all or a portion of our outstanding debt under our debt agreements becoming immediately due and payable. If this occurred, we might not be able to obtain waivers or secure alternative financing to satisfy all of our obligations simultaneously, which would adversely affect our business and operations. Details of two of the more significant restrictive covenants in the Senior Indenture are set forth below: • Limitation on the Incurrence of Additional Debt - In addition to certain indebtedness defined in the Senior Indenture as "Permitted Debt," which includes indebtedness under any credit facility not to exceed the greater of $75.0 million or 18% of the Company's Consolidated Tangible Assets (as defined in the Senior Indenture), we may only incur additional debt if the Fixed Charge Coverage Ratio (as defined in the Senior Indenture) for the most recently completed four full fiscal quarters is at least 2.0 to 1.0. • Limitation on Restricted Payments - Subject to certain limited exceptions, including specific permission to pay cash dividends on the Company's Series B Senior Convertible Preferred Stock up to $260,000 per quarter, the Company is prohibited from (i) declaring or paying dividends or other distributions on its equity securities (other than dividends or distributions payable in equity securities), (ii) purchasing or redeeming any of the Company's equity securities, (iii) making any payment on indebtedness contractually subordinated to the 9% Senior Notes, except a payment of interest or principal at the stated maturity thereof, or (iv) making any investment defined as a "Restricted Investment," unless, at the time of and after giving effect to such payment, the Company is not in default and the Company is able to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio (as defined in the Senior Indenture). Further, the amount of such payment plus all other such payments made by the Company since the issuance of the 9% Senior Notes must be less than the aggregate of (a) 50% of Consolidated Net Income (as defined in the Senior Indenture) since the April 1, 2011 (or 100% , if such figure is a deficit), (b) 100% of the aggregate net cash proceeds from equity offerings since the issuance of the 9% Senior Notes, (c) if any Restricted Investments have been sold for cash, the proceeds from such sale (or the original cash investment if that amount is lower); and (d) 50% of any dividends received by the Company. The Company was in compliance with the covenants under the indenture governing the 9% Senior Notes at December 31, 2015 . Revolving Credit Facility On September 9, 2011, the Company entered into a loan and security agreement with certain lenders, and Regions Bank, as agent for the secured parties, or the Agent. The loan and security agreement, as amended, provides for an asset based revolving credit facility with a maximum borrowing credit of $90.0 million , subject to borrowing base availability, any reserves established by the facility agent in its discretion, compliance with a fixed charge coverage ratio covenant if availability under the facility falls below certain thresholds and, for borrowings above $75.0 million , compliance with the debt incurrence covenant in the Senior Indenture that prohibits the incurrence of debt except for certain limited exceptions, including indebtedness incurred under the permitted credit facility debt basket to the greater of $75.0 million or 18% of our Consolidated Tangible Assets (as defined in the Senior Indenture) reported for the last fiscal quarter for which financial statements are available. As of December 31, 2015 , 18% of our Consolidated Tangible Assets was approximately $70.1 million . If our availability under the credit facility drops below 15% of our total borrowing credit (as described above), we are required to maintain a trailing four-quarter fixed charge coverage ratio of at least 1.1 to 1. We would currently be in compliance with this covenant if it were applicable. Under the loan and security agreement, our borrowing base at any time is equal to (i) 85% of eligible accounts, which are determined by the Agent in its reasonable discretion, plus (ii) the lesser of 85% of the appraised value, subject to certain adjustments, of our well services equipment that has been properly pledged and appraised, is in good operating condition and is located in the United States, or 100% of the net book value of such equipment, minus (iii) any reserves established by the Agent in its reasonable discretion. As of December 31, 2015, the borrowing base was $90.0 million and borrowing availability was $49.3 million . As amended, the loan and security agreement has a stated maturity of July 26, 2018. In June 2015, FES LLC borrowed $15.0 million under the facility, which is reflected in the current portion of long term debt since the Company plans to repay the revolving loan balance in the next twelve months. As of December 31, 2015 , the facility had a revolving loan balance outstanding of $15.0 million and $10.7 million in letters of credit outstanding against the facility. Borrowings bear interest at a rate equal to either (a) the LIBOR rate plus an applicable margin of between 2.00% to 2.50% based on borrowing availability or (b) a base rate plus an applicable margin of between 1.00% to 1.50% based on borrowing availability, where the base rate is equal to the greater of the prime rate established by Regions Bank, the overnight federal funds rate plus 0.5% or the LIBOR rate for a one month period plus 1% . The Company's interest rate as of December 31, 2015 was 2.625% . In addition to paying interest on outstanding principal under the facility, a fee of 0.375% per annum will accrue on unutilized availability under the credit facility. The Company is required to pay a fee of between 2.25% to 2.75% , based on borrowing availability, with respect to the principal amount of any letters of credit outstanding under the facility. The Company is also responsible for certain other administrative fees and expenses. FES LLC, FEI LLC, TES, and CCF are the named borrowers under the loan and security agreement. Their obligations have been guaranteed by one another and by the Company. Subject to certain exceptions and permitted encumbrances, including the exemption of real property interests from the collateral package, the obligations under this facility are secured by a first priority security interest in all of our assets. The Company is able to voluntarily repay outstanding loans at any time without premium or penalty (subject to the fees discussed above). If at any time our outstanding loans under the credit facility exceed the availability under our borrowing base, we may be required to repay the excess. Further, the Company is required to use the net proceeds from certain events, including certain judgments, tax refunds or insurance awards to repay outstanding loans, however, the named borrowers may reborrow following such repayments if the conditions to borrowing are met. The loan and security agreement contains customary covenants for an asset-based credit facility, which include (i) restrictions on certain mergers, consolidations and sales of assets; (ii) restrictions on the creation or existence of liens; (iii) restrictions on making certain investments; (iv) restrictions on the incurrence or existence of indebtedness; (v) restrictions on transactions with affiliates; (vi) requirements to deliver financial statements, report and notices to the Agent and (vii) a springing requirement to maintain a consolidated Fixed Charge Coverage Ratio (which is defined in the loan and security agreement) of 1.1 :1.0 in the event that our excess availability under the credit facility falls below the greater of $11.3 million or 15.0% of our maximum credit under the facility for sixty consecutive days, provided that, the restrictions described in (i)-(v) above are subject to certain exceptions and permissions limited in scope and dollar value. The loan and security agreement also contains customary representations and warranties and event of default provisions. As of December 31, 2015 , the Company was in compliance with all applicable covenants in the loan and security agreement. Third Party Equipment Notes and Capital Leases The Company financed the purchase of certain vehicles and equipment through commercial loans and capital leases with aggregate principal amounts outstanding as of December 31, 2015 and 2014 of approximately $7.1 million and $12.2 million , respectively. These loans are repayable in a range of 42 to 60 monthly installments with the maturity dates ranging from July 2016 to July 2018. Interest accrues at rates ranging from 3.07% to 8.42% and is payable monthly. The loans are collateralized by equipment purchased with the proceeds of such loans. The Company paid total principal payments of approximately $5.6 million , $5.1 million , and $5.3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Following are required principal payments due on third party equipment notes and capital leases (other than the 9% Senior Notes and revolving credit facility) existing as of December 31, 2015 : 2016 2017 2018 2019 2020 and thereafter (in thousands) Third party equipment notes and capital lease principal payments $ 4,062 $ 2,827 $ 244 $ — $ — Management currently acquires all light duty trucks (pick up trucks) through capital leases and may use capital leases or cash to purchase equipment held under operating leases that has reached the end of the lease term. See Note 10 - Commitments and Contingencies. Insurance Notes During 2015 and 2014 , the Company entered into promissory notes for the payment of insurance premiums at interest rates of 3.35% and 2.89% , respectively, with an aggregate principal amount outstanding as of December 31, 2015 and 2014 of approximately $6.2 million and $5.7 million , respectively. The amount outstanding could be substantially offset by the cancellation of the related insurance coverage which is classified in prepaid insurance. These notes are or were payable in twelve monthly installments with maturity dates of October 15, 2016 and October 15, 2015, respectively. Interest accrued at a rate of approximately 3.4% and 2.9% for 2015 and 2014 , respectively, and is payable monthly. The amount outstanding could be substantially offset by the cancellation of the related insurance coverage which is classified in prepaid insurance. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company enters into transactions with related parties in the normal course of conducting business. The following tables summarizes the related party transactions. As of December 31, 2015 2014 (in thousands) Related parties cash and cash equivalents balances: Balance at Texas Champion Bank (1) $ 1,132 $ 1,040 Balance at Brush Country Bank (2) 485 644 Related parties receivable: Dorsal Services, Inc. (3) — 60 Wolverine Construction, Inc. (4) — 282 $ — $ 342 Related parties payable: Alice Environmental Services, LP/Alice Environmental Holding LLC (5) $ — $ 83 Dorsal Services, Inc. (3) 2 25 Tasco Tool Services, Inc. (6) 2 59 Texas Quality Gate Guard Services, LLC (7) 4 11 Texas Water Disposal, LLC (8) — 8 $ 8 $ 186 Years ended December, 31 2015 2014 2013 (in thousands) Related parties capital expenditures: Tasco Tool Services, Inc. (6) $ — $ 16 $ 64 JITSU Services, LLC (9) — 240 — $ — $ 256 $ 64 Related parties revenue activity: Dorsal Services, Inc. (3) $ — $ — $ 18 Tasco Tool Services, Inc. (6) 1 2 3 Wolverine Construction, Inc. (4) — 249 152 Testco Well Services, LLC (10) — — 69 Texas Water Disposal, LLC (8) — 12 15 $ 1 $ 263 $ 257 Related parties expense activity: Alice Environmental Services, LP/Alice Environmental Holding LLC (5) $ 1,889 $ 1,861 $ 1,810 Dorsal Services, Inc. (3) 20 371 498 Tasco Tool Services, Inc. (6) 172 224 128 FCJ Management, LLC (11) 15 27 36 JITSU Services, LLC (9) — 243 396 Texas Quality Gate Guard Services, LLC (7) 188 214 363 Animas Holdings, LLC (12) 225 265 670 Testco Well Services, LLC (10) — — 32 Texas Water Disposal, LLC (8) — — 498 CJW Group, LLC (13) 38 13 — $ 2,547 $ 3,218 $ 4,431 (1) The Company has a deposit relationship with Texas Champion Bank. Travis Burris, one of the directors of the Company, is the President, Chief Executive Officer, and director of Texas Champion Bank. John E. Crisp, or Mr. Crisp, an executive officer and director of the Company, serves on the board of directors of Texas Champion Bank. (2) Mr. Crisp and Charles C. Forbes, Jr., or Mr. Forbes, are directors and shareholders of Brush Country Bank, an institution with which the Company conducts business and has deposits. Mr. Forbes is an executive officer and director of the Company. (3) Dorsal Services, Inc., or Dorsal Services, is a trucking service company. Mr. Crisp is a partial owner of Dorsal Services. The Company uses Dorsal Services from time to time. (4) Wolverine Construction, Inc., or Wolverine, is an entity that was owned by two sons and a brother of Mr. Crisp, and a son of Mr. Forbes. Wolverine provided construction and site preparation services to certain customers of the Company. The related party interests in Wolverine were sold in 2014. (5) Messrs. Crisp and Forbes are also owners and managers of Alice Environmental Holdings, LLC, or AEH, and indirect owners and managers of Alice Environmental Services, LP, or AES and Alice Environmental West Texas, LLC, or AEWT. The Company leases or rents land and buildings, and aircraft from AES. During January 2015, the Company purchased land from AEWT for an additional operating location. The aircraft leases were terminated during the third quarter of 2015. (6) Tasco Tool Services, Inc., or Tasco, is a down-hole tool company that is partially owned and managed by a company that is owned by Mr. Forbes and Robert Jenkins, or Mr. Jenkins, a former manager of one of the Company's subsidiaries. Tasco rents and sells tools to the Company from time to time. (7) Texas Quality Gate Guard Services, LLC, or Texas Quality Gate Guard Services, is an entity owned by Messrs. Crisp and Forbes, and a son of Mr. Crisp. Texas Quality Gate Guard Services has provided security services to the Company. (8) Texas Water Disposal Services, LLC, or TWDS, is partially owned by a brother of Mr. Crisp. TWDS is a company that owns a salt water disposal well that was used by the Company. The Company has not done business with TWDS since March 2014. (9) JITSU Services, LLC, or JITSU, is a financial leasing company owned by Janet Forbes, or Ms. Forbes, and Mr. Crisp. The Company previously leased ten vacuum trucks from JITSU. This lease was terminated in November 2014. Ms. Forbes served as a Company director until June 11, 2014. (10) Testco Well Services, LLC, or Testco, is a company that provides valve and gathering system testing services to the Company. Mr. Crisp, Mr. Forbes, and a son of Mr. Crisp were partial owners of Testco. In August 2013, Testco was sold to an unrelated third party. The Company has not done business with Testco subsequent to the sale in August 2013. (11) FCJ Management, LLC, or FCJ, is an entity that leases land and facilities to the Company and is owned by Messrs. Crisp, Forbes, and Jenkins. The lease with FCJ was terminated during the third quarter of 2015. (12) Animas Holdings, LLC, or Animas, is owned by the two sons of Mr. Crisp and three children of Mr. and Ms. Forbes. Animas owns land and property that it leases to the Company. (13) CJW Group, LLC is an entity that leases office space to the Company and is partially owned by Messrs. Crisp and Forbes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Concentrations of Credit Risk Financial instruments which subject the Company to credit risk consist primarily of cash balances maintained in excess of federal depository insurance limits and trade receivables. Insurance coverage is currently $250,000 per depositor at each financial institution, and our non-interest bearing cash balances exceeded federally insured limits. The Company restricts investment of temporary cash investments to financial institutions with high credit standings. The Company’s customer base consists primarily of multi-national and independent oil and natural gas producers. The Company does not require collateral on its trade receivables. For the year ended December 31, 2015 the Company’s largest customer, five largest customers, and ten largest customers constituted 17.2% , 48.5% , and 67.0% of total revenues, respectively. For the year ended December 31, 2014 the Company’s largest customer, five largest customers, and ten largest customers constituted 18.8% , 42.7% , and 56.6% of total revenues, respectively. For the year ended December 31, 2013 the Company’s largest customer, five largest, and ten largest customers constituted 10.5% , 34.6% , and 49.7% of total revenues, respectively. The loss of any one of our top five customers would have a materially adverse effect on the revenues and profits of the Company. Further, the Company's trade accounts receivable are from companies within the oil and natural gas industry and as such the Company is exposed to normal industry credit risks. As of December 31, 2015 , the Company's largest customer, five largest customers, and ten largest customers constituted 16.5% , 44.8% , and 62.6% of accounts receivable, respectively. As of December 31, 2014 , the Company's largest customer, five largest customers, and ten largest customers consisted of 18.4% , 42.8% , and 57.5% of accounts receivable, respectively. The Company continually evaluates its reserves for potential credit losses and establishes reserves for such losses. Major Customers Major customers are defined as 10.0% or more of total consolidated revenue during a year. For the year ended December 31, 2015 , the Company had one customer that represented 17.2% of total revenues and one customer that represented 11.3% of total revenues. For the years ended December 31, 2014 and 2013 , the Company had one customer that represented approximately 18.8% , and 10.5% of our total revenues, respectively. Employee Benefit Plan The Company has a 401(k) retirement plan for substantially all of its employees based on certain eligibility requirements. The Company may provide profit sharing contributions to the plan at the discretion of management. No such discretionary contributions have been made since inception of the plan. Self-Insurance The Company is self-insured under its Employee Group Medical Plan for the first $0.3 million per individual. The Company is also self-insured for the first $1.0 million in claims under each of its insurance policies for auto liability, general liability, and workers' compensation. The Company has an additional premium payable under its excess liability policy of 25% of paid claims made in excess of $0.8 million up to total claims of $9.3 million . Such additional premium will become payable at the time a loss is paid and will be payable over a period to be agreed by insurers. The Company has accrued liabilities totaling $7.3 million and $7.9 million , as of December 31, 2015 and 2014 , respectively, for the projected unpaid losses and self-insured portion of these insurance claims as of the financial statement dates. This accrual includes claims made as well as an estimate for claims incurred but not reported as of the financial statement dates. Litigation The Company is subject to various other claims and legal actions that arise in the ordinary course of business. We do not believe that any of these claims and actions, separately or in the aggregate, will have a material adverse effect on our business, financial condition, results of operations, or cash flows, although we cannot guarantee that a material adverse effect will not occur. Off-Balance Sheet Arrangements The Company is often party to certain transactions that require off-balance sheet arrangements such as performance bonds, guarantees, operating leases for equipment, and bank guarantees that are not reflected in our condensed consolidated balance sheets. These arrangements are made in our normal course of business and they are not reasonably likely to have a current or future material adverse effect on our financial condition, results of operations, liquidity, or cash flows. The Company's off-balance sheet arrangements include $10.7 million in letters of credit and operating leases for equipment, which is summarized in the table below. Leases Future minimum lease payments under non-cancellable operating leases as of December 31, 2015 are as follows (in thousands): Related Party Other Total 2016 $ 1,364 $ 5,045 $ 6,408 2017 1,062 656 1,718 2018 331 98 428 2019 — 64 64 2020 and thereafter — 406 406 Total $ 2,757 $ 6,269 $ 9,024 Rent expense for the years ended December 31, 2015 , 2014 , and 2013 totaled approximately $16.0 million , $20.6 million and $20.8 million , respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Years Ended December 31, 2015 2014 2013 (in thousands) Cash paid for Interest $ 26,009 $ 26,096 $ 26,635 Income tax 182 70 (281 ) Supplemental schedule of non-cash investing and financing activities Financing of insurance notes $ 7,705 $ 6,976 $ 6,198 Change in accounts payable related to capital expenditures (1,487 ) (2,395 ) 2,692 Capital leases on equipment 527 2,144 1,990 Preferred stock dividends and accretion costs (42 ) (42 ) (42 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) included in the consolidated statements of operations for the years ended December 31 was as follows (in thousands): 2015 2014 2013 (in thousands) Continuing operations: Current: Federal $ 15 $ 238 $ (48 ) State 148 641 252 Foreign (23 ) 18 — Total current income tax expense from continuing operations $ 140 $ 897 $ 204 Deferred: Federal $ (16,562 ) $ (4,008 ) $ (4,865 ) State (192 ) 51 46 Total deferred income tax benefit from continuing operations $ (16,754 ) $ (3,957 ) $ (4,819 ) Total income tax benefit from continuing operations $ (16,614 ) $ (3,060 ) $ (4,615 ) Discontinued operations: Current: Foreign $ — $ — $ (88 ) Total current income tax benefit from discontinued operations $ — $ — $ (88 ) Deferred: Federal $ — $ — $ — Foreign — — (158 ) Total deferred income tax benefit from discontinued operations $ — $ — $ (158 ) Total income tax benefit from discontinued operations $ — $ — $ (246 ) Total income tax benefit $ (16,614 ) $ (3,060 ) $ (4,861 ) The provision for income taxes attributable to loss from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to loss from continuing operations before taxes, as follows: 2015 2014 2013 (in thousands) Income tax benefit at statutory rate of 35% $ (21,941 ) $ (3,983 ) $ (6,094 ) Nondeductible expenses 531 654 513 State taxes, net of federal benefit 60 374 354 Change in deferred tax valuation allowance 4,790 — — Revision related to tax basis of property and equipment — — 553 Other (54 ) (105 ) 59 $ (16,614 ) $ (3,060 ) $ (4,615 ) Our income tax benefit attributable to loss from discontinued operations was $0.2 million on a pre-tax loss of $0.5 million for the year ended December 31, 2013 . Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets as of December 31 were as follows: 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 30,991 $ 11,013 Foreign tax credits 796 796 Alternative minimum tax credit 1,228 1,213 Stock - based compensation 5,568 5,746 Bad debts 644 1,444 Other 3,068 2,936 Total deferred tax assets 42,295 23,148 Less: valuation allowance (5,586 ) (796 ) Total deferred tax assets, net $ 36,709 $ 22,352 Deferred tax liabilities: Tax over book depreciation $ (30,689 ) $ (32,053 ) Intangible assets (6,919 ) (7,952 ) Total deferred tax liabilities (37,608 ) (40,005 ) Net deferred tax liability $ (899 ) $ (17,653 ) As of December 31, 2015 , the Company had federal net operating loss carryforwards of approximately $88.5 million , which will begin to expire in 2028 if not utilized prior to that time. Realization of deferred tax assets associated with net operating loss carryforwards is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to their expiration. The existence of reversing taxable temporary differences supports the recognition by the Company of deferred tax assets. In the event that the Company's federal deferred tax assets exceed the Company's reversing taxable temporary differences, it is not more likely than not that those deferred tax assets would be realized due to the Company's lack of earnings history. Therefore, a valuation allowance in the amount of $0.8 million was established as of December 31, 2014 and increased by approximately $4.8 million during 2015. Deferred taxes have not been recognized on undistributed earnings of foreign subsidiaries since these amounts were not material at December 31, 2015 and 2014 . The Company files U.S. federal, U.S. state, and foreign tax returns, and is generally no longer subject to tax examinations for fiscal years prior to 2011. |
Earning (loss) per Share
Earning (loss) per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earning (loss) per Share | Earnings (loss) per Share Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) available to common shareholders by the weighted average shares of common stock outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common shares, such as options, unvested restricted stock and restricted stock units and convertible preferred stock, were exercised and converted into common stock. Potential common stock equivalents that have been issued by the Company relate to outstanding stock options and unvested restricted stock and restricted stock units, which are determined using the treasury stock method, and the shares of Series B Senior Convertible Preferred Stock (the "Series B Preferred Stock"), which are determined using the "if converted" method. In applying the if-converted method, conversion is not assumed for purposes of computing diluted EPS if the effect would be antidilutive. The Company has determined that the Series B Preferred Stock are participating securities. A company is required to use the two-class method when computing EPS when a company has a security that qualifies as a “participating security.” The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. A participating security is included in the computation of basic EPS using the two-class method. Under the two-class method, basic EPS for the Company’s common stock is computed by dividing net income applicable to common stock by the weighted-average common stock outstanding during the period. There were no earnings allocated to the Series B Preferred Stock for the years ended December 31, 2015 , 2014 , or 2013 and there was a net loss from operations for the years ended December 31, 2015 , 2014 , and 2013 . Diluted EPS for the Company’s common stock is computed using the more dilutive of the two-class method or the if-converted method. Due to the Company's net operating loss position in each such year, there is no dilutive effect for the years ended December 31, 2015 , 2014 , and 2013 . 2015 There were 614,125 stock options, 1,358,324 units of unvested restricted stock units, and 5,292,531 shares of common stock equivalents underlying the series B Preferred stock outstanding as of December 31, 2015 that were not included in the calculation of diluted EPS because their effect would have been antidilutive. 2014 There were 1,148,625 stock options, 637,495 units of unvested restricted stock units, and 5,292,531 shares of common stock equivalents underlying the series B Preferred stock outstanding as of December 31, 2014 that were not included in the calculation of diluted EPS because the effect would have been antidilutive. 2013 There were 1,400,425 stock options, 674,789 units of unvested restricted stock units, and 5,292,531 shares of common stock equivalents underlying the series B Preferred stock outstanding as of December 31, 2013 that were not included in the calculation of diluted EPS because the effect would have been antidilutive. The following table sets forth the computation of basic and diluted loss per share: Years Ended December 31, 2015 2014 2013 (in thousands, except per share amounts) Basic and diluted: Net loss $ (46,074 ) $ (8,321 ) $ (13,090 ) Preferred stock dividends and accretion (776 ) (776 ) (776 ) Net loss attributable to common shareholders $ (46,850 ) $ (9,097 ) $ (13,866 ) Weighted-average common shares 22,071 21,749 21,388 Basic and diluted loss per share $ (2.12 ) $ (0.42 ) $ (0.65 ) |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segment Information | Business Segment Information The Company has determined that it has two reportable segments organized based on its products and services—well servicing and fluid logistics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Well Servicing At December 31, 2015 , our well servicing segment utilized our fleet of well servicing rigs, which was comprised of 159 workover rigs and 14 swabbing rigs, six coiled tubing spreads, and related assets and equipment. These assets are used to provide (i) well maintenance, including remedial repairs and removal and replacement of downhole production equipment, (ii) well workovers, including significant downhole repairs, re-completions and re-perforations, (iii) completion and swabbing activities, (iv) plugging and abandonment services, and (v) testing of oil and natural gas production tubing. Fluid Logistics Our fluid logistics segment utilized our fleet of owned or leased fluid transport trucks and related assets, including specialized vacuum, high-pressure pump and tank trucks, frac tanks, water wells, salt water disposal wells and facilities, and related equipment. These assets are used to provide, transport, store, and dispose of a variety of drilling and produced fluids used in, and generated by, oil and natural gas production. These services are required in most workover and completion projects and are routinely used in the daily operation of producing wells. The following table sets forth certain financial information from continuing operations with respect to the Company’s reportable segments (dollars in thousands): Well Servicing Fluid Logistics Consolidated 2015 Operating revenues $ 150,949 $ 93,158 $ 244,107 Direct operating costs 117,514 74,905 192,419 Segment profits $ 33,435 $ 18,253 $ 51,688 Depreciation and amortization $ 25,914 $ 29,120 $ 55,034 Capital expenditures (1) 4,844 3,764 8,608 Total assets 662,819 470,788 1,133,607 Long lived assets 165,416 111,613 277,029 2014 Operating revenues $ 285,338 $ 163,940 $ 449,278 Direct operating costs 213,278 127,775 341,053 Segment profits $ 72,060 $ 36,165 $ 108,225 Depreciation and amortization $ 24,396 $ 30,563 $ 54,959 Capital expenditures (1) 16,263 21,363 37,626 Total assets 646,912 485,944 1,132,856 Long lived assets 188,726 133,937 322,663 2013 Operating revenues $ 231,930 $ 188,003 $ 419,933 Direct operating costs 182,180 141,957 324,137 Segment profits $ 49,750 $ 46,046 $ 95,796 Depreciation and amortization $ 23,207 $ 31,631 $ 54,838 Capital expenditures (1) 22,979 24,329 47,308 Total assets 584,271 483,771 1,068,042 Long lived assets 199,692 142,177 341,869 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including capital leases and fixed assets recorded in accounts payable at year-end. Year Ended December 31, 2015 2014 2013 Reconciliation of the Forbes Group Operating Loss As Reported: Segment profits $ 51,688 $ 108,225 $ 95,796 General and administrative expense 31,591 36,428 30,186 Depreciation and amortization 55,034 54,959 54,838 Operating income (loss) (34,937 ) 16,838 10,772 Other income and expenses, net (27,751 ) (28,219 ) (28,184 ) Loss before tax benefit $ (62,688 ) $ (11,381 ) $ (17,412 ) December 31, 2015 2014 Reconciliation of the Forbes Group Assets As Reported: Total reportable segments $ 1,133,607 $ 1,132,856 Elimination of internal transactions (1,894,434 ) (1,784,404 ) Parent 1,173,254 1,135,161 Total assets $ 412,427 $ 483,613 |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity Securities | Equity Securities Common Stock Holders of common stock have no pre-emptive, redemption, conversion, or sinking fund rights. Holders of common stock are entitled to one vote per share on all matters submitted to a vote of holders of common stock. Unless a different majority is required by law or by the bylaws, resolutions to be approved by holders of common stock require approval by a simple majority of votes cast at a meeting at which a quorum is present. In the event of the liquidation, dissolution, or winding up of the Company, the holders of common stock are entitled to share equally and ratably in the Company’s assets, if any, remaining after the payment of all of its debts and liabilities, subject to any liquidation preference on any issued and outstanding preferred stock. Series B Senior Convertible Preferred Stock Under our Series B Certificate of Designation, we are authorized to issue 825,000 shares of Series B Senior Convertible Preferred Stock, or the Series B Preferred Stock, par value $0.01 per share. On May 28, 2010 the Company completed a private placement of 580,800 shares of Series B Preferred Stock at a price per share of CAD $26.37 for an aggregate purchase price in the amount of USD $14.5 million based on the exchange rate between U.S. dollars and Canadian dollars then in effect of $1.00 to CDN $1.0547 . The Company received net proceeds of USD $13.8 million after closing fee paid to investors of $0.3 million and legal fees and other offering costs of $0.4 million . This is presented as temporary equity on the balance sheet. The common stock into which the Series B Preferred Stock is convertible has certain demand and “piggyback” registration rights. On September 2, 2010, the Company paid a dividend in kind by issuing 7,259 shares of Series B Preferred Stock. There were 588,059 shares of Series B Preferred Stock outstanding as of December 31, 2015 and 2014 . The value of the Series B Preferred Stock, for accounting purposes, is being accreted up to redemption value from the date of issuance to the earliest redemption date of the instrument using the effective interest rate method. If the Series B Preferred Stock had been redeemed as of December 31, 2015 , the redemption amount applicable at such date would have been approximately $14.7 million . The primary terms of the Series B Preferred Stock is as follows: Rank - The Series B Preferred Stock ranks senior in right of payment to the common stock and any class or series of capital stock that is junior to the Series B Preferred Stock, and pari passu with any series of the Company's preferred stock that is by its terms ranked pari passu in right of payment as to dividends and liquidation with the Series B Preferred Stock. Conversion - The Series B Preferred Stock is convertible into the Company's common stock at an initial rate of nine common shares per share of Series B Preferred Stock (as adjusted for the Share Consolidation) (subject to further adjustment). If all such Series B Preferred Stock is converted, at the initial conversion rate, 5,292,531 shares of common stock will be issued to holders of the Series B Preferred Stock. Notwithstanding the foregoing, pursuant to a Certificate of Designation, no holder of the Series B Preferred Stock is entitled to effect a conversion of Series B Preferred Stock if such conversion would result in the holder (and affiliates) beneficially owning 20% or more of the Company's common stock. Dividends Rights - The Series B Preferred Stock is entitled to receive preferential dividends equal to five percent ( 5% ) per annum of the original issue price per share, payable quarterly in February, May, August, and November of each year. Such dividends may be paid by the Company in cash or in kind (in the form of additional shares of Series B Preferred Stock). In the event that the payment in cash or in kind of any such dividend would cause the Company to violate a covenant under its debt agreements, the obligation to pay, in cash or in kind, will be suspended until and only to the extent any restrictions under the debt agreements lapse or are no longer applicable. During any such suspension period, the preferential dividends shall continue to accrue and accumulate. As shares of the Series B Preferred Stock are convertible into shares of our common stock, each dividend paid in kind will have a dilutive effect on our shares of common stock. Dividends for all quarterly periods in the years ended December 31, 2015 , 2014 , and 2013 have been paid in cash. The Company currently intends to pay all future dividends in cash. Liquidation - Upon any voluntary or involuntary liquidation, dissolution, or winding up of the Company, no distribution shall be made as follows: (i) to the holders of shares ranking junior to the Series B Preferred Stock unless the holders of Series B Preferred Stock shall have received an amount equal to the original issue price per share of the Series B Preferred Stock (subject to adjustment) plus an amount equal to accumulated and unpaid dividends and distributions thereon to the date of such payment, and (ii) to the holders of shares ranking on a parity with the Series B Preferred Stock, unless simultaneously therewith distributions are made ratably on the Series B Preferred Stock and all other such parity stock in proportion to the total amounts to which the holders of Series B Preferred Stock are entitled. Voting Rights - The holders of Series B Preferred Stock are not entitled to any voting rights except as provided in the following sentence, in the Company's bylaws or otherwise under the Texas law. If the preferential dividends on the Series B Preferred Stock have not been declared and paid in full in cash or in kind for eight or more quarterly dividend periods (whether or not consecutive), the holders of the Series B Preferred Stock shall be entitled to vote at any meeting of shareholders with the holders of common stock and to cast the number of votes equal to the number of whole Common Shares into which the Series B Preferred Stock held by such holders are then convertible. Redemption - All or any number of the shares of Series B Preferred Stock may be redeemed by the Company at any time after May 28, 2013 at a redemption price of $25 per share plus accrued and unpaid dividends and provided that the current equity value of our common stock exceeds a five day volume weighted average of $3.33 per share. On May 28, 2017 , the Company is required to redeem any Series B Preferred Stock then outstanding at a redemption price determined in accordance with the Certificate of Designation plus accrued but unpaid dividends. Such mandatory redemption may, at the Company's election, be paid in cash or in common shares (valued for such purpose at 95% of the then fair market value of the common stock). In the event certain corporate transactions occur (such as a reorganization, recapitalization, reclassification, consolidation or merger) under which the Company's common stock (but not the Series B Preferred Stock) is converted into or exchanged for securities, cash or other property, then following such transaction, each share of Series B Preferred Stock shall thereafter be convertible into the same kind and amount of securities, cash or other property. Certain of the redemption features are outside of the Company's control, and as a result, the Series B Preferred Stock have been reflected in the consolidated balance sheet as temporary equity. Dividends Preferred stock dividends are recorded at their fair value. If paid in cash, the amount paid represents fair value. If paid in kind, the fair value of the preferred stock dividends is determined using valuation techniques that include a component representing the intrinsic value of the dividends (which represents the fair value of the common stock into which the preferred stock could be converted) and an option component (which is determined using a Black-Scholes Option Pricing Model). Dividends and accretion for the years ended December 31, 2015 , 2014 , and 2013 were $0.8 million . The Company has paid the quarterly dividends through February 29, 2016 . |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 12, 2012, the Company completed the sale of substantially all of its assets located in Mexico, as well as its equity interest in Forbes Energy Services México Servicios de Personal, S. de R.L. de C.V., for aggregate cash consideration of approximately $30.0 million (excluding amounts paid to cover certain Mexican taxes). The Company recognized a gain on disposal of approximately $2.9 million this transaction. The following table presents the results of discontinued operations: 2013 Revenues $ — Expenses General and administrative 534 Total expenses 534 Operating loss (534 ) Interest expense (5 ) Loss before income taxes (539 ) Income tax benefit (246 ) Net loss $ (293 ) |
Supplemental Financial Informat
Supplemental Financial Information Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Financial Information Quarterly Financial Data (Unaudited) | Supplemental Financial Information Quarterly Financial Data (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except for per share amounts) 2015: Revenues $ 84,333 $ 62,810 $ 55,557 $ 41,407 Operating income (loss) 356 (6,858 ) (11,218 ) (17,217 ) Net loss from continuing operations (4,434 ) (8,748 ) (13,510 ) (19,382 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss from continuing operations attributable to common shares (4,628 ) (8,942 ) (13,704 ) (19,576 ) Loss per share: Basic and diluted (0.21 ) (0.41 ) (0.62 ) (0.88 ) 2014: Revenues $ 109,911 $ 113,175 $ 114,466 $ 111,726 Operating income 5,421 4,896 4,902 1,619 Net loss from continuing operations (1,293 ) (1,493 ) (1,543 ) (3,992 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss from continuing operations attributable to common shares (1,487 ) (1,687 ) (1,737 ) (4,186 ) Loss per share: Basic and diluted (0.07 ) (0.08 ) (0.08 ) (0.19 ) |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Principles of Consolidation | Principles of Consolidation The Company’s consolidated financial statements include the accounts of FES Ltd. and all of its wholly owned, direct and indirect subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Revenue Recognition | Revenue Recognition Well Servicing –Well servicing consists primarily of maintenance services, workover services, completion services, plugging and abandonment services, and tubing testing. The Company prices well servicing by the hour of service performed, or on occasion, bid/turnkey pricing. Fluid Logistics – Fluid logistics consists primarily of the sale, transportation, storage, and disposal of fluids used in drilling, production, and maintenance of oil and natural gas wells. The Company prices fluid logistics services by the job, by the hour, or by the quantities sold, disposed, or hauled. The Company recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists, and the price is fixed or determinable. Revenues are presented net of any sales taxes collected by the Company from its customers that are remitted to governmental authorities. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in the period that includes the statutory enactment date. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records uncertain tax positions at their net recognizable amount, based on the amount that management deems is more likely than not to be sustained upon ultimate settlement with tax authorities. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash serves as collateral for loans and certain outstanding letters of credit. The Company had restricted cash balances of $0.1 million and $1.4 million at December 31, 2015 and 2014 , respectively. |
Earnings per Share | Earnings per Share Basic EPS is calculated by dividing the net income attributable to common shareholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, restricted stock, and restricted stock units. Preferred stock is a participating security which means the security may participate in undistributed earnings with common stock. Such securities are deemed to not be participating in losses if there is no obligation to fund such losses. The holders of the Series B Preferred Stock would be entitled to share in dividends, on an as-converted basis, if the holders of common stock were to receive dividends in excess of 5% of the then current common stock market price on a cumulative basis over the past twelve months, provided that the holders of the Series B Preferred Stock would only share in that portion of the dividend that exceeds 5% . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 - Inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. • Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In valuing certain assets and liabilities, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. A description of the valuation methodologies used for assets measured at fair value on a recurring basis, as well as the general classification of such assets pursuant to the fair value hierarchy, is set forth below. The carrying amounts of cash and cash equivalents, accounts receivable-trade, accounts receivable-related parties, accounts receivable – other, accounts payable – trade, accounts payable-related parties, and insurance notes approximate fair value because of the short maturity of these instruments. The fair values of third party notes and equipment notes are level two inputs in the fair value hierarchy, and approximate their carrying values, based on current market rates at which the Company could borrow funds with similar maturities. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are based on earned revenues. The Company provides an allowance for doubtful accounts, which is based on a review of outstanding receivables, historical collection information, and existing economic conditions. Provisions for doubtful accounts are recorded when it becomes evident that the customer will not be likely to make the required payments at either contractual due dates or in the future. The accounts are written off against the provision when it becomes evident that the account is not collectable. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Improvements or betterments that extend the useful life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. The costs of assets retired or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts in the period of disposal. Gains or losses resulting from property disposals are credited or charged to operations currently. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. |
Intangible Assets | Intangible Assets Intangible assets consist primarily of customer relationships and trade name and are subject to amortization for the period of time which the assets are expected to contribute directly or indirectly to future cash flows. |
Impairments | Impairment Long-term assets consist of property, equipment, and identifiable intangible assets. The Company makes judgments and estimates regarding the carrying value of these assets, including amounts to be capitalized, estimated useful lives, depreciation and amortization methods to be applied, and possible impairment. We evaluate our long-lived assets, at a minimum, annually and whenever events and changes in circumstances indicate the carrying amount of our net assets may not be recoverable due to various external or internal factors. For property and equipment, events or circumstances indicating possible impairment may include a significant change in the business environment or a significant decline in financial results. For intangible assets, events or circumstances indicating possible impairment may include a significant change in the assessment of future operations or an adverse change in how the asset is being used. When an indicator of possible impairment exists, we use estimated future undiscounted cash flows to assess recoverability of our long-lived assets. These cash flow projections require us to make judgments regarding long-term forecasts of future revenue and costs related to the assets subject to review. These forecasts include assumptions related to the rates we bill our customers, equipment utilization, equipment additions, staffing levels, pay rates, and other expenses. These forecasts also require assumptions about demand for our products and services, future market conditions, and technological developments. These assumptions considered the drop in oil and natural gas prices over the last eighteen months and projected future pricing trends. Impairment is indicated when future cash flows are less than the carrying amount of the assets. An impairment loss would be recorded in the period in which it is determined the carrying amount is not recoverable. The impairment loss is the amount by which the carrying amount exceeds the fair market value. We assessed the long-lived assets of our Well Servicing segment for impairment and determined that projected future cash flows exceeded the carrying amount of the assets. This indicated that the carrying amount of the property and equipment would be recoverable. We assessed the long-lived assets of our Fluid Logistics segment for impairment and determined that projected future cash flows exceeded the carrying amount of the assets. This indicated that the carrying amount of the property and equipment would be recoverable. Based on our assessments, for the years ended December 31, 2015, 2014, and 2013, we concluded that no impairment was indicated. Nevertheless, volatility in the oil and natural gas industry, which is driven by factors over which we have no control, could affect the fair market value of our equipment fleet and cause us to conclude at a future date that an impairment is evident. Under certain circumstances, this could trigger a write-down of our assets for accounting purposes, which could have a material adverse impact on our financial position and results of operations. |
Environmental | Environmental The Company is subject to extensive federal, state, and local environmental laws and regulations. These laws, which are constantly changing, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the adverse environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. |
Deferred Financing Costs | Deferred Financing Costs The Company amortizes the deferred financing costs over the period of the agreements governing the 9% Senior Notes and the revolving credit facility on an effective interest basis, as a component of interest expense. |
Share-Based Compensation | Share-Based Compensation The Company measures share-based compensation cost as of the grant date based on the estimated fair value of the award less an estimated rate for pre-vesting forfeitures, and recognizes compensation expense on a straight-line basis over the vesting period. The Company classifies stock awards as either an equity award or a liability award. Equity classified awards are valued as of the grant date using market price. Liability classified awards are re-measured at fair value at the end of each reporting date until settled. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides guidance for revenue recognition and which supersedes nearly all existing revenue recognition under ASU 2014-09. This ASU provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance permits two methods of transition upon adoption: full retrospective and modified retrospective. Under the full retrospective method, the standard would be applied to each prior reporting period presented. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB issued final revised guidance that defers the effective date of the revenue recognition standard to be for annual and interim periods beginning after December 15, 2017. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and to provide related footnote disclosures in certain circumstances. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company does not anticipate that this pronouncement will have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Retrospective application is required and early adoption is permitted. The adoption of ASU 2015-03 only impacts balance sheet classification; therefore, it will not have a material impact on the Company's consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" which clarifies the treatment of debt issuance costs from line-of-credit arrangements after adoption of ASU 2015-03. ASU 2015-15 clarifies that the Securities and Exchange Commission staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 became effective upon issuance, and the Company does not anticipate that this pronouncement will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which simplifies the presentation of deferred income taxes by requiring that deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 becomes effective for interim and annual periods beginning after December 31, 2016. The Company does not anticipate that this pronouncement will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which increases the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for operating leases with lease terms greater than 12 months. It also requires additional disclosures about leasing arrangements to help users of financial statements better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 becomes effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Fair value of financial instruments | December 31, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) 9% senior notes due 2019 $ 280,000 $ 131,600 $ 280,000 $ 165,200 |
Allowance for doubtful accounts rollforward | The following reflects changes in our allowance for doubtful accounts: Balance as of January 1, 2013 $ 2,659 Provision 1,353 Bad debt write-off (60 ) Balance as of December 31, 2013 3,952 Provision 967 Bad debt write-off (880 ) Balance as of December 31, 2014 4,039 Provision 1,409 Bad debt write-off (3,644 ) Balance as of December 31, 2015 $ 1,804 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | The following sets forth the identified intangible assets by major asset class: December 31, 2015 December 31, 2014 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Customer relationships 15 $ 31,896 $ 17,011 $ 14,885 $ 31,896 $ 14,885 $ 17,011 Trade names 15 8,050 4,293 3,757 8,050 3,756 4,294 Safety training program 15 1,182 630 552 1,182 552 630 Dispatch software 10 1,135 909 226 1,135 795 340 Other 10 58 47 11 58 41 17 $ 42,321 $ 22,890 $ 19,431 $ 42,321 $ 20,029 $ 22,292 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table presents a summary of the Company’s stock option activity for the years ended December 31, 2015 and 2014 : Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2013 1,400,425 $ 6.99 6.47 years $ 316,994 Stock options: Granted — — Exercised — — Forfeited (251,800 ) 2.65 Options outstanding at December 31, 2014 1,148,625 7.94 5.44 years — Stock options: Granted — — Exercised — — Forfeited (534,500 ) 9.25 Options outstanding at December 31, 2015 614,125 $ 6.80 4.87 years $ — Vested and expected to vest at December 31, 2015 614,125 $ 6.80 4.87 years $ — Exercisable at December 31, 2015 614,125 $ 6.80 4.87 years $ — |
Summary of Restricted Stock Grant Activity | The table below presents restricted stock activity for the year ended December 31, 2013. Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2012 41,666 $ 6.15 Granted — — Vested (41,666 ) 6.15 Forfeited — — Nonvested at December 31, 2013 — $ — |
Summary of Restricted Stock Unit Grant Activity | The following table presents a summary of restricted stock unit activity for the years ended December 31, 2015 , 2014 and 2013 : Equity Based Liability Based Total Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2012 124,753 — 124,753 $ 3.45 Granted 930,284 — 930,284 3.44 Vested (374,848 ) — (374,848 ) 3.38 Forfeited (5,400 ) — (5,400 ) 2.65 Nonvested at December 31, 2013 674,789 — 674,789 $ 3.49 Granted 199,254 262,273 461,527 3.85 Vested (498,821 ) — (498,821 ) 3.84 Forfeited — — — — Nonvested at December 31, 2014 375,222 262,273 637,495 $ 3.47 Granted 127,008 1,191,704 1,318,712 1.19 Vested (310,451 ) (214,432 ) (524,883 ) 2.33 Forfeited (73,000 ) — (73,000 ) 3.53 Nonvested at December 31, 2015 118,779 1,239,545 1,358,324 $ 1.70 In the years ended December 31, 2015 , 2014 , and 2013 , participants utilized a net withholding exercise method, in which restricted stock units were surrendered to cover payroll withholding tax. The total pretax cash outflow, as included in withholding tax payments in our condensed consolidated statements of cash flows, for these net withholding exercises was $0.2 million , $0.5 million and $0.1 million , respectively. Stock compensation expense of $0.5 million , $1.3 million , and $2.1 million was recognized for the restricted stock units granted for the years ended 2015 , 2014 , and 2013 , respectively. The remaining compensation expense to be recognized over a weighted-average period of 1.9 years is $0.6 million |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the Company's equity and liability stock based compensation expense (in thousands): 2015 2014 2013 Restricted stock expense $ — $ — $ 41 Restricted stock unit expense 508 1,253 2,102 Stock option expense — 1,185 709 Performance based liability award expense associated with restricted stock units (66 ) 826 — Total stock-based compensation expense $ 442 $ 3,264 $ 2,852 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and equipment | Property and equipment at December 31, 2015 and 2014 consisted of the following: Estimated Life in Years December 31, 2015 2014 (in thousands) Well servicing equipment 9-15 years $ 413,543 $ 417,561 Autos and trucks 5-10 years 126,994 124,338 Disposal wells 5-15 years 38,426 38,167 Building and improvements 5-30 years 14,107 14,423 Furniture and fixtures 3-15 years 6,573 6,157 Land 1,524 1,452 601,167 602,098 Accumulated depreciation (324,138 ) (279,435 ) $ 277,029 $ 322,663 |
Schedule of Capital Leased Assets | The gross amount of property and equipment and related accumulated depreciation recorded under capital leases and included above consists of the following: December 31, 2015 2014 (in thousands) Well servicing equipment $ 15,215 $ 16,411 Autos and trucks 15,181 15,809 30,396 32,220 Accumulated depreciation (14,219 ) (10,786 ) $ 16,177 $ 21,434 |
Accounts Payable and Accrued 30
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued expenses and accounts payable – trade | Accrued expenses and accounts payable – trade at December 31, 2015 and 2014 , consisted of the following: December 31, 2015 2014 (in thousands) Accrued wages $ 2,264 $ 8,387 Accrued insurance 7,266 7,883 Other accrued expenses 1,196 2,578 Total accrued expenses $ 10,726 $ 18,848 Accounts payable - vendor financings $ 242 $ 1,687 Accounts payable - other 8,753 17,432 Total accounts payable - trade $ 8,995 $ 19,119 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Debt at December 31, 2015 and 2014 , consisted of the following: December 31, 2015 2014 (in thousands) 9% Senior Notes $ 280,000 $ 280,000 Revolving Credit Facility 15,000 — Third party equipment notes and capital leases 7,133 12,170 Insurance notes 6,181 5,721 308,314 297,891 Less: Current portion (25,243 ) (11,204 ) $ 283,071 $ 286,687 |
Aggregate maturities of long-term debt | Aggregate maturities of long-term debt as of December 31, 2015 are as follows (in thousands): 2016 $ 25,243 2017 2,827 2018 244 2019 280,000 Total $ 308,314 |
Contractual Obligation, Fiscal Year Maturity Schedule | Following are required principal payments due on third party equipment notes and capital leases (other than the 9% Senior Notes and revolving credit facility) existing as of December 31, 2015 : 2016 2017 2018 2019 2020 and thereafter (in thousands) Third party equipment notes and capital lease principal payments $ 4,062 $ 2,827 $ 244 $ — $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables summarizes the related party transactions. As of December 31, 2015 2014 (in thousands) Related parties cash and cash equivalents balances: Balance at Texas Champion Bank (1) $ 1,132 $ 1,040 Balance at Brush Country Bank (2) 485 644 Related parties receivable: Dorsal Services, Inc. (3) — 60 Wolverine Construction, Inc. (4) — 282 $ — $ 342 Related parties payable: Alice Environmental Services, LP/Alice Environmental Holding LLC (5) $ — $ 83 Dorsal Services, Inc. (3) 2 25 Tasco Tool Services, Inc. (6) 2 59 Texas Quality Gate Guard Services, LLC (7) 4 11 Texas Water Disposal, LLC (8) — 8 $ 8 $ 186 Years ended December, 31 2015 2014 2013 (in thousands) Related parties capital expenditures: Tasco Tool Services, Inc. (6) $ — $ 16 $ 64 JITSU Services, LLC (9) — 240 — $ — $ 256 $ 64 Related parties revenue activity: Dorsal Services, Inc. (3) $ — $ — $ 18 Tasco Tool Services, Inc. (6) 1 2 3 Wolverine Construction, Inc. (4) — 249 152 Testco Well Services, LLC (10) — — 69 Texas Water Disposal, LLC (8) — 12 15 $ 1 $ 263 $ 257 Related parties expense activity: Alice Environmental Services, LP/Alice Environmental Holding LLC (5) $ 1,889 $ 1,861 $ 1,810 Dorsal Services, Inc. (3) 20 371 498 Tasco Tool Services, Inc. (6) 172 224 128 FCJ Management, LLC (11) 15 27 36 JITSU Services, LLC (9) — 243 396 Texas Quality Gate Guard Services, LLC (7) 188 214 363 Animas Holdings, LLC (12) 225 265 670 Testco Well Services, LLC (10) — — 32 Texas Water Disposal, LLC (8) — — 498 CJW Group, LLC (13) 38 13 — $ 2,547 $ 3,218 $ 4,431 (1) The Company has a deposit relationship with Texas Champion Bank. Travis Burris, one of the directors of the Company, is the President, Chief Executive Officer, and director of Texas Champion Bank. John E. Crisp, or Mr. Crisp, an executive officer and director of the Company, serves on the board of directors of Texas Champion Bank. (2) Mr. Crisp and Charles C. Forbes, Jr., or Mr. Forbes, are directors and shareholders of Brush Country Bank, an institution with which the Company conducts business and has deposits. Mr. Forbes is an executive officer and director of the Company. (3) Dorsal Services, Inc., or Dorsal Services, is a trucking service company. Mr. Crisp is a partial owner of Dorsal Services. The Company uses Dorsal Services from time to time. (4) Wolverine Construction, Inc., or Wolverine, is an entity that was owned by two sons and a brother of Mr. Crisp, and a son of Mr. Forbes. Wolverine provided construction and site preparation services to certain customers of the Company. The related party interests in Wolverine were sold in 2014. (5) Messrs. Crisp and Forbes are also owners and managers of Alice Environmental Holdings, LLC, or AEH, and indirect owners and managers of Alice Environmental Services, LP, or AES and Alice Environmental West Texas, LLC, or AEWT. The Company leases or rents land and buildings, and aircraft from AES. During January 2015, the Company purchased land from AEWT for an additional operating location. The aircraft leases were terminated during the third quarter of 2015. (6) Tasco Tool Services, Inc., or Tasco, is a down-hole tool company that is partially owned and managed by a company that is owned by Mr. Forbes and Robert Jenkins, or Mr. Jenkins, a former manager of one of the Company's subsidiaries. Tasco rents and sells tools to the Company from time to time. (7) Texas Quality Gate Guard Services, LLC, or Texas Quality Gate Guard Services, is an entity owned by Messrs. Crisp and Forbes, and a son of Mr. Crisp. Texas Quality Gate Guard Services has provided security services to the Company. (8) Texas Water Disposal Services, LLC, or TWDS, is partially owned by a brother of Mr. Crisp. TWDS is a company that owns a salt water disposal well that was used by the Company. The Company has not done business with TWDS since March 2014. (9) JITSU Services, LLC, or JITSU, is a financial leasing company owned by Janet Forbes, or Ms. Forbes, and Mr. Crisp. The Company previously leased ten vacuum trucks from JITSU. This lease was terminated in November 2014. Ms. Forbes served as a Company director until June 11, 2014. (10) Testco Well Services, LLC, or Testco, is a company that provides valve and gathering system testing services to the Company. Mr. Crisp, Mr. Forbes, and a son of Mr. Crisp were partial owners of Testco. In August 2013, Testco was sold to an unrelated third party. The Company has not done business with Testco subsequent to the sale in August 2013. (11) FCJ Management, LLC, or FCJ, is an entity that leases land and facilities to the Company and is owned by Messrs. Crisp, Forbes, and Jenkins. The lease with FCJ was terminated during the third quarter of 2015. (12) Animas Holdings, LLC, or Animas, is owned by the two sons of Mr. Crisp and three children of Mr. and Ms. Forbes. Animas owns land and property that it leases to the Company. (13) CJW Group, LLC is an entity that leases office space to the Company and is partially owned by Messrs. Crisp and Forbes. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments under non-cancellable operating leases | Future minimum lease payments under non-cancellable operating leases as of December 31, 2015 are as follows (in thousands): Related Party Other Total 2016 $ 1,364 $ 5,045 $ 6,408 2017 1,062 656 1,718 2018 331 98 428 2019 — 64 64 2020 and thereafter — 406 406 Total $ 2,757 $ 6,269 $ 9,024 |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | Years Ended December 31, 2015 2014 2013 (in thousands) Cash paid for Interest $ 26,009 $ 26,096 $ 26,635 Income tax 182 70 (281 ) Supplemental schedule of non-cash investing and financing activities Financing of insurance notes $ 7,705 $ 6,976 $ 6,198 Change in accounts payable related to capital expenditures (1,487 ) (2,395 ) 2,692 Capital leases on equipment 527 2,144 1,990 Preferred stock dividends and accretion costs (42 ) (42 ) (42 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) included in the consolidated statements of operations | Income tax expense (benefit) included in the consolidated statements of operations for the years ended December 31 was as follows (in thousands): 2015 2014 2013 (in thousands) Continuing operations: Current: Federal $ 15 $ 238 $ (48 ) State 148 641 252 Foreign (23 ) 18 — Total current income tax expense from continuing operations $ 140 $ 897 $ 204 Deferred: Federal $ (16,562 ) $ (4,008 ) $ (4,865 ) State (192 ) 51 46 Total deferred income tax benefit from continuing operations $ (16,754 ) $ (3,957 ) $ (4,819 ) Total income tax benefit from continuing operations $ (16,614 ) $ (3,060 ) $ (4,615 ) Discontinued operations: Current: Foreign $ — $ — $ (88 ) Total current income tax benefit from discontinued operations $ — $ — $ (88 ) Deferred: Federal $ — $ — $ — Foreign — — (158 ) Total deferred income tax benefit from discontinued operations $ — $ — $ (158 ) Total income tax benefit from discontinued operations $ — $ — $ (246 ) Total income tax benefit $ (16,614 ) $ (3,060 ) $ (4,861 ) |
Effective income tax reconciliation | The provision for income taxes attributable to loss from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to loss from continuing operations before taxes, as follows: 2015 2014 2013 (in thousands) Income tax benefit at statutory rate of 35% $ (21,941 ) $ (3,983 ) $ (6,094 ) Nondeductible expenses 531 654 513 State taxes, net of federal benefit 60 374 354 Change in deferred tax valuation allowance 4,790 — — Revision related to tax basis of property and equipment — — 553 Other (54 ) (105 ) 59 $ (16,614 ) $ (3,060 ) $ (4,615 ) |
Tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities | Significant components of the Company's deferred tax liabilities and assets as of December 31 were as follows: 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 30,991 $ 11,013 Foreign tax credits 796 796 Alternative minimum tax credit 1,228 1,213 Stock - based compensation 5,568 5,746 Bad debts 644 1,444 Other 3,068 2,936 Total deferred tax assets 42,295 23,148 Less: valuation allowance (5,586 ) (796 ) Total deferred tax assets, net $ 36,709 $ 22,352 Deferred tax liabilities: Tax over book depreciation $ (30,689 ) $ (32,053 ) Intangible assets (6,919 ) (7,952 ) Total deferred tax liabilities (37,608 ) (40,005 ) Net deferred tax liability $ (899 ) $ (17,653 ) |
Earning (loss) per Share (Table
Earning (loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings (loss) per share | The following table sets forth the computation of basic and diluted loss per share: Years Ended December 31, 2015 2014 2013 (in thousands, except per share amounts) Basic and diluted: Net loss $ (46,074 ) $ (8,321 ) $ (13,090 ) Preferred stock dividends and accretion (776 ) (776 ) (776 ) Net loss attributable to common shareholders $ (46,850 ) $ (9,097 ) $ (13,866 ) Weighted-average common shares 22,071 21,749 21,388 Basic and diluted loss per share $ (2.12 ) $ (0.42 ) $ (0.65 ) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Financial information with respect to reportable segments | The following table sets forth certain financial information from continuing operations with respect to the Company’s reportable segments (dollars in thousands): Well Servicing Fluid Logistics Consolidated 2015 Operating revenues $ 150,949 $ 93,158 $ 244,107 Direct operating costs 117,514 74,905 192,419 Segment profits $ 33,435 $ 18,253 $ 51,688 Depreciation and amortization $ 25,914 $ 29,120 $ 55,034 Capital expenditures (1) 4,844 3,764 8,608 Total assets 662,819 470,788 1,133,607 Long lived assets 165,416 111,613 277,029 2014 Operating revenues $ 285,338 $ 163,940 $ 449,278 Direct operating costs 213,278 127,775 341,053 Segment profits $ 72,060 $ 36,165 $ 108,225 Depreciation and amortization $ 24,396 $ 30,563 $ 54,959 Capital expenditures (1) 16,263 21,363 37,626 Total assets 646,912 485,944 1,132,856 Long lived assets 188,726 133,937 322,663 2013 Operating revenues $ 231,930 $ 188,003 $ 419,933 Direct operating costs 182,180 141,957 324,137 Segment profits $ 49,750 $ 46,046 $ 95,796 Depreciation and amortization $ 23,207 $ 31,631 $ 54,838 Capital expenditures (1) 22,979 24,329 47,308 Total assets 584,271 483,771 1,068,042 Long lived assets 199,692 142,177 341,869 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including capital leases and fixed assets recorded in accounts payable at year-end. Year Ended December 31, 2015 2014 2013 Reconciliation of the Forbes Group Operating Loss As Reported: Segment profits $ 51,688 $ 108,225 $ 95,796 General and administrative expense 31,591 36,428 30,186 Depreciation and amortization 55,034 54,959 54,838 Operating income (loss) (34,937 ) 16,838 10,772 Other income and expenses, net (27,751 ) (28,219 ) (28,184 ) Loss before tax benefit $ (62,688 ) $ (11,381 ) $ (17,412 ) December 31, 2015 2014 Reconciliation of the Forbes Group Assets As Reported: Total reportable segments $ 1,133,607 $ 1,132,856 Elimination of internal transactions (1,894,434 ) (1,784,404 ) Parent 1,173,254 1,135,161 Total assets $ 412,427 $ 483,613 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of discontinued operations | The following table presents the results of discontinued operations: 2013 Revenues $ — Expenses General and administrative 534 Total expenses 534 Operating loss (534 ) Interest expense (5 ) Loss before income taxes (539 ) Income tax benefit (246 ) Net loss $ (293 ) |
Supplemental Financial Inform39
Supplemental Financial Information Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Financial Information Quarterly Financial Data (Unaudited) from continuing operations | First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except for per share amounts) 2015: Revenues $ 84,333 $ 62,810 $ 55,557 $ 41,407 Operating income (loss) 356 (6,858 ) (11,218 ) (17,217 ) Net loss from continuing operations (4,434 ) (8,748 ) (13,510 ) (19,382 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss from continuing operations attributable to common shares (4,628 ) (8,942 ) (13,704 ) (19,576 ) Loss per share: Basic and diluted (0.21 ) (0.41 ) (0.62 ) (0.88 ) 2014: Revenues $ 109,911 $ 113,175 $ 114,466 $ 111,726 Operating income 5,421 4,896 4,902 1,619 Net loss from continuing operations (1,293 ) (1,493 ) (1,543 ) (3,992 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss from continuing operations attributable to common shares (1,487 ) (1,687 ) (1,737 ) (4,186 ) Loss per share: Basic and diluted (0.07 ) (0.08 ) (0.08 ) (0.19 ) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) - Senior Notes - 9% Senior Notes - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 07, 2011 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 9.00% | 9.00% | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
9% senior notes due 2019 | $ 280,000 | $ 280,000 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
9% senior notes due 2019 | $ 131,600 | $ 165,200 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Allowance for Doubtful Accounts Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 4,039 | $ 3,952 | $ 2,659 |
Provision | 1,409 | 967 | 1,353 |
Bad debt write-off | (3,644) | (880) | (60) |
Allowance for doubtful accounts, ending balance | $ 1,804 | $ 4,039 | $ 3,952 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Restricted cash | $ 51,000 | $ 1,381,000 | |
Common stock contingent dividend threshold percent | 5.00% | ||
Depreciation expense | $ 52,200,000 | 52,100,000 | $ 52,000,000 |
Asset impairment charges | 0 | 0 | 0 |
Amortization of deferred financing cost | $ 1,455,000 | $ 1,807,000 | $ 1,518,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets | ||
Gross Carrying Value | $ 42,321 | $ 42,321 |
Accumulated Amortization | 22,890 | 20,029 |
Net Book Value | $ 19,431 | 22,292 |
Customer relationships | ||
Intangible Assets | ||
Useful Life (years) | 15 years | |
Gross Carrying Value | $ 31,896 | 31,896 |
Accumulated Amortization | 17,011 | 14,885 |
Net Book Value | $ 14,885 | 17,011 |
Trade names | ||
Intangible Assets | ||
Useful Life (years) | 15 years | |
Gross Carrying Value | $ 8,050 | 8,050 |
Accumulated Amortization | 4,293 | 3,756 |
Net Book Value | $ 3,757 | 4,294 |
Safety training program | ||
Intangible Assets | ||
Useful Life (years) | 15 years | |
Gross Carrying Value | $ 1,182 | 1,182 |
Accumulated Amortization | 630 | 552 |
Net Book Value | $ 552 | 630 |
Dispatch software | ||
Intangible Assets | ||
Useful Life (years) | 10 years | |
Gross Carrying Value | $ 1,135 | 1,135 |
Accumulated Amortization | 909 | 795 |
Net Book Value | $ 226 | 340 |
Other | ||
Intangible Assets | ||
Useful Life (years) | 10 years | |
Gross Carrying Value | $ 58 | 58 |
Accumulated Amortization | 47 | 41 |
Net Book Value | $ 11 | $ 17 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets (Textual) [Abstract] | |||
Amortization expenses | $ 2.9 | $ 2.9 | $ 2.9 |
Estimated amortization expenses for intangible assets year 1 | 2.9 | ||
Estimated amortization expenses for intangible assets year 2 | 2.9 | ||
Estimated amortization expenses for intangible assets year 3 | 2.7 | ||
Estimated amortization expenses for intangible assets year 4 | 2.7 | ||
Estimated amortization expenses for intangible assets year 5 | 2.7 | ||
Estimated amortization expenses for intangible assets year 6 | 2.7 | ||
Estimated amortization expenses for intangible assets after year 6 | $ 2.7 | ||
Weighted average amortization period remaining for intangible assets | 6 years 9 months 18 days |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Activities) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, shares, beginning balance (in shares) | 1,148,625 | 1,400,425 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | (534,500) | (251,800) | |
Options outstanding, shares, ending balance (in shares) | 614,125 | 1,148,625 | 1,400,425 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, weighted average exercise price, beginning balance (in usd per share) | $ 7.94 | $ 6.99 | |
Granted, weighted average exercise price (in usd per share) | 0 | 0 | |
Exercised, weighted average exercise price (in usd per share) | 0 | 0 | |
Forfeited, weighted average exercise price (in usd per share) | 9.25 | 2.65 | |
Options outstanding, weighted average exercise price, ending balance (in usd per share) | $ 6.80 | $ 7.94 | $ 6.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options outstanding, weighted average remaining contractual term (in years) | 4 years 10 months 13 days | 5 years 5 months 10 days | 6 years 5 months 20 days |
Options outstanding, aggregate intrinsic value | $ 0 | $ 0 | $ 316,994 |
Vested and expected to vest (in shares) | 614,125 | ||
Vested and expected to vest, weighted average exercise price (in usd per share) | $ 6.80 | ||
Vested and expected to vest, weighted average remaining contractual term (in years) | 4 years 10 months 13 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 0 | ||
Exercisable (in shares) | 614,125 | ||
Exercisable, weighted average exercise price (in usd per share) | $ 6.80 | ||
Exercisable, weighted average remaining contractual term (in years) | 4 years 10 months 13 days | ||
Exercisable, aggregate intrinsic value | $ 0 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock and Restricted Stock Unit Grant Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 0 | 41,666 | |
Granted, number of units (in shares) | 0 | ||
Vested, number of units (in shares) | (41,666) | ||
Forfeited, number of units (in shares) | 0 | ||
Outstanding ending balance, number of units (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding beginning balance, grant date average fair value per unit (in usd per share) | $ 0 | $ 6.15 | |
Granted, grant date average fair value per unit (in usd per share) | 0 | ||
Vested, grant date average fair value per unit (in usd per share) | 6.15 | ||
Forfeited, grant date average fair value per unit (in usd per share) | 0 | ||
Outstanding ending balance, grant date average fair value per unit (in usd per share) | $ 0 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 637,495 | 674,789 | 124,753 |
Granted, number of units (in shares) | 1,318,712 | 461,527 | 930,284 |
Vested, number of units (in shares) | (524,883) | (498,821) | (374,848) |
Forfeited, number of units (in shares) | (73,000) | 0 | (5,400) |
Outstanding ending balance, number of units (in shares) | 1,358,324 | 637,495 | 674,789 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding beginning balance, grant date average fair value per unit (in usd per share) | $ 3.47 | $ 3.49 | $ 3.45 |
Granted, grant date average fair value per unit (in usd per share) | 1.19 | 3.85 | 3.44 |
Vested, grant date average fair value per unit (in usd per share) | 2.33 | 3.84 | 3.38 |
Forfeited, grant date average fair value per unit (in usd per share) | 3.53 | 0 | 2.65 |
Outstanding ending balance, grant date average fair value per unit (in usd per share) | $ 1.70 | $ 3.47 | $ 3.49 |
Equity Based | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 375,222 | 674,789 | 124,753 |
Granted, number of units (in shares) | 127,008 | 199,254 | 930,284 |
Vested, number of units (in shares) | (310,451) | (498,821) | (374,848) |
Forfeited, number of units (in shares) | (73,000) | 0 | (5,400) |
Outstanding ending balance, number of units (in shares) | 118,779 | 375,222 | 674,789 |
Liability Based | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 262,273 | 0 | 0 |
Granted, number of units (in shares) | 1,191,704 | 262,273 | 0 |
Vested, number of units (in shares) | (214,432) | 0 | 0 |
Forfeited, number of units (in shares) | 0 | 0 | 0 |
Outstanding ending balance, number of units (in shares) | 1,239,545 | 262,273 | 0 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 442,000 | $ 3,264,000 | $ 2,852,000 |
Capitalized share-based compensation expense | 0 | 0 | |
Stock-based compensation expense | 442,000 | 3,264,000 | 2,852,000 |
Pretax cash outflow | $ 168,000 | $ 470,000 | $ 143,000 |
2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period (in shares) | 0 | 0 | 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 0 | $ 1,185,000 | $ 709,000 |
Capitalized share-based compensation expense | 0 | ||
Unrecognized stock-based compensation costs | $ 0 | ||
Stock Options | 2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants (in shares) | 750,540 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 0 | 0 | 41,000 |
Stock-based compensation expense | 0 | 0 | 100,000 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 508,000 | $ 1,253,000 | $ 2,102,000 |
Unrecognized stock-based compensation costs, period for recognition | 1 year 9 months 71 days | ||
Stock based compensation expense yet to be recognized | $ 600,000 | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 5 years |
Share-Based Compensation (Compa
Share-Based Compensation (Company's equity and liability stock based compensation expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 442 | $ 3,264 | $ 2,852 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 0 | 0 | 41 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 508 | 1,253 | 2,102 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 0 | 1,185 | 709 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ (66) | $ 826 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Property and equipment | |||
Property and equipment, total | $ 601,167 | $ 602,098 | |
Accumulated depreciation | (324,138) | (279,435) | |
Property and equipment, net | 277,029 | 322,663 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Capital leased assets, gross | 30,396 | 32,220 | |
Accumulated depreciation | (14,219) | (10,786) | |
Capital leases, balance sheet, assets by major class, net | 16,177 | 21,434 | |
Depreciation and amortization | (55,034) | (54,959) | $ (54,838) |
Well servicing equipment | |||
Summary of Property and equipment | |||
Property and equipment, total | 413,543 | 417,561 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Capital leased assets, gross | $ 15,215 | 16,411 | |
Well servicing equipment | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 9 years | ||
Well servicing equipment | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 15 years | ||
Autos and trucks | |||
Summary of Property and equipment | |||
Property and equipment, total | $ 126,994 | 124,338 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Capital leased assets, gross | $ 15,181 | 15,809 | |
Autos and trucks | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 5 years | ||
Autos and trucks | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 10 years | ||
Disposal wells | |||
Summary of Property and equipment | |||
Property and equipment, total | $ 38,426 | 38,167 | |
Disposal wells | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 5 years | ||
Disposal wells | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 15 years | ||
Building and improvements | |||
Summary of Property and equipment | |||
Property and equipment, total | $ 14,107 | 14,423 | |
Building and improvements | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 5 years | ||
Building and improvements | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 30 years | ||
Furniture and fixtures | |||
Summary of Property and equipment | |||
Property and equipment, total | $ 6,573 | 6,157 | |
Furniture and fixtures | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 3 years | ||
Furniture and fixtures | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 15 years | ||
Land | |||
Summary of Property and equipment | |||
Property and equipment, total | $ 1,524 | 1,452 | |
Assets Held under Capital Leases | |||
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Depreciation and amortization | $ (3,400) | $ (4,600) | $ (3,100) |
Accounts Payable and Accrued 50
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued wages | $ 2,264 | $ 8,387 |
Accrued insurance | 7,266 | 7,883 |
Other accrued expenses | 1,196 | 2,578 |
Total accrued expenses | 10,726 | 18,848 |
Accounts payable - vendor financings | 242 | 1,687 |
Accounts payable - other | 8,753 | 17,432 |
Total accounts payable - trade | $ 8,995 | $ 19,119 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instruments [Abstract] | ||
Long-term debt and capital lease obligations | $ 308,314 | $ 297,891 |
Less: Current portion | (25,243) | (11,204) |
Long-term debt and capital lease obligations, noncurrent | 283,071 | 286,687 |
Senior Notes | 9% Senior Notes | ||
Debt Instruments [Abstract] | ||
Long-term debt and capital lease obligations | 280,000 | 280,000 |
Third party equipment notes and capital leases | ||
Debt Instruments [Abstract] | ||
Long-term debt and capital lease obligations | 7,133 | 12,170 |
Insurance notes | ||
Debt Instruments [Abstract] | ||
Long-term debt and capital lease obligations | 6,181 | 5,721 |
Revolving Credit Facility | Line of Credit | ||
Debt Instruments [Abstract] | ||
Long-term debt and capital lease obligations | $ 15,000 | $ 0 |
Long-Term Debt (Aggregate Matur
Long-Term Debt (Aggregate Maturities of Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,016 | $ 25,243 |
2,017 | 2,827 |
2,018 | 244 |
2,019 | 280,000 |
Long-term debt, total | $ 308,314 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Jun. 07, 2011USD ($) | Dec. 31, 2015USD ($)installment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Company borrowings | $ 15,000,000 | $ 15,000,000 | |||
Guarantor subsidiaries ownership percentage | 100.00% | ||||
Long-term debt, total | $ 308,314,000 | ||||
Senior Notes | 9% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 280,000,000 | ||||
Debt instrument, maturity date | Jun. 15, 2019 | ||||
Debt instrument, stated interest rate | 9.00% | 9.00% | |||
Percentage of principal amount for debt repurchase post change in control | 101.00% | ||||
Percentage of principal amount for debt repurchase post certain asset sales | 100.00% | ||||
Restrictive covenants for senior notes, additional debt, maximum | $ 75,000,000 | ||||
Restrictive covenants for senior notes, additional debt, percentage of consolidated tangible assets, maximum | 18.00% | ||||
Restrictive covenants for senior notes, fixed charge coverage ratio, minimum | 200.00% | ||||
Restrictive covenants for senior notes, quarterly payments of dividends, preferred stock, maximum | $ 260,000 | ||||
Restrictive covenants for senior notes, additional indebtedness threshold | $ 1 | ||||
Restrictive covenants for senior notes, debt payment threshold, percentage of net income | 50.00% | ||||
Restrictive covenants for senior notes, debt payment threshold, percentage of deficit | 100.00% | ||||
Restrictive covenants for senior notes, debt payment threshold, percentage of net proceeds from equity offering | 100.00% | ||||
Restrictive covenants for senior notes, debt payment threshold, percentage of dividends received | 50.00% | ||||
Notes Payable, Other Payables | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, total | $ 7,100,000 | $ 12,200,000 | |||
Debt instrument, principal payments made | $ 5,600,000 | $ 5,100,000 | $ 5,300,000 | ||
Notes Payable, Other Payables | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, number of installments | installment | 42 | ||||
Debt instrument, effective interest rate | 3.07% | ||||
Notes Payable, Other Payables | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, number of installments | installment | 60 | ||||
Debt instrument, effective interest rate | 8.42% | ||||
Insurance notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.35% | 2.89% | |||
Long-term debt, total | $ 6,200,000 | $ 5,700,000 | |||
Debt instrument, number of installments | installment | 12 | ||||
Debt instrument, effective interest rate | 3.40% | 2.90% |
Long-Term Debt (Narrative - Rev
Long-Term Debt (Narrative - Revolving Credit Facility) (Details) - USD ($) | Sep. 09, 2011 | Dec. 31, 2015 | Jun. 30, 2015 | Sep. 08, 2011 |
Line of Credit Facility [Line Items] | ||||
Company borrowings | $ 15,000,000 | $ 15,000,000 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | $ 90,000,000 | $ 90,000,000 | |
Line of credit facility, consolidated intangible assets | 18.00% | 18.00% | ||
Line of credit facility, current borrowing capacity, asset restriction amount | $ 70,100,000 | |||
Minimum percent of borrowings | 15.00% | |||
Coverage ratio | 1.1 | |||
Borrowing base percentage eligible accounts | 85.00% | |||
Borrowing base percentage of the appraised Value | 85.00% | |||
Percentage of net book value of such equipment | 100.00% | |||
Line of credit facility, remaining borrowing capacity | 49,300,000 | |||
Letters of credit outstanding | $ 10,700,000 | |||
Interest rate at period end | 2.625% | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Consolidated fixed charge coverage ratio | 110.00% | |||
Customary covenants for asset based credit facility | $ 11,300,000 | |||
Percentage of maximum credit under the facility | 15.00% | |||
Consecutive days | 60 days | |||
LIBOR | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, variable rate basis | LIBOR | |||
Prime Rate | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, variable rate basis | prime rate | |||
Overnight Federal Funds Rate | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, variable rate basis | overnight federal funds rate | |||
Debt instrument, basis spread on variable rate | 0.50% | |||
One Month LIBOR | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, variable rate basis | LIBOR rate for a one month period | |||
Debt instrument, basis spread on variable rate | 1.00% | |||
Minimum | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, letter of credit, principal borrowing fees Percentage | 2.25% | |||
Minimum | LIBOR | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.00% | |||
Minimum | Prime Rate | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Maximum | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, letter of credit, principal borrowing fees Percentage | 2.75% | |||
Maximum | LIBOR | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% | |||
Maximum | Prime Rate | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% |
Long-Term Debt (Contractual Obl
Long-Term Debt (Contractual Obligation, Fiscal Year Maturity Schedule) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 4,062 |
2,017 | 2,827 |
2,018 | 244 |
2,019 | 0 |
2020 and thereafter | $ 0 |
Long-Term Debt (Narrative - Ins
Long-Term Debt (Narrative - Insurance Notes) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)installment | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Long term debt | $ 308,314 | |
Insurance notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.35% | 2.89% |
Long term debt | $ 6,200 | $ 5,700 |
Debt instrument, number of installments | installment | 12 | |
Debt instrument, effective interest rate | 3.40% | 2.90% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions (Textual) [Abstract] | |||
Accounts receivable - related parties | $ 0 | $ 342 | |
Accounts payable - related parties | 8 | 186 | |
Related party transaction, capital expenditures from transactions with related party | 0 | 256 | $ 64 |
Revenue from related party | 1 | 263 | 257 |
Related party transaction, purchases from related party | 2,547 | 3,218 | 4,431 |
Texas Champion Bank | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, bank deposits | 1,132 | 1,040 | |
Brush Country Bank | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, bank deposits | 485 | 644 | |
Dorsal Services | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts receivable - related parties | 0 | 60 | |
Accounts payable - related parties | 2 | 25 | |
Revenue from related party | 0 | 0 | 18 |
Related party transaction, purchases from related party | 20 | 371 | 498 |
Wolverine Construction Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts receivable - related parties | 0 | 282 | |
Revenue from related party | 0 | 249 | 152 |
AES | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 0 | 83 | |
Related party transaction, purchases from related party | 1,889 | 1,861 | 1,810 |
Tasco Tool Services | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 2 | 59 | |
Related party transaction, capital expenditures from transactions with related party | 0 | 16 | 64 |
Revenue from related party | 1 | 2 | 3 |
Related party transaction, purchases from related party | 172 | 224 | 128 |
JITSU Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, capital expenditures from transactions with related party | 0 | 240 | 0 |
Related party transaction, purchases from related party | 0 | 243 | 396 |
Texas Quality Gate Guard Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 4 | 11 | |
Related party transaction, purchases from related party | 188 | 214 | 363 |
Texas Water Disposal | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 0 | 8 | |
Revenue from related party | 0 | 12 | 15 |
Related party transaction, purchases from related party | 0 | 0 | 498 |
Testco | |||
Related Party Transactions (Textual) [Abstract] | |||
Revenue from related party | 0 | 0 | 69 |
Related party transaction, purchases from related party | 0 | 0 | 32 |
FCJ Management | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | 15 | 27 | 36 |
Animas Holding Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | 225 | 265 | 670 |
CJW Group, LLC | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | $ 38 | $ 13 | $ 0 |
Commitments and Contingencies58
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 6,408 |
2,017 | 1,718 |
2,018 | 428 |
2,019 | 64 |
2020 and thereafter | 406 |
Total | 9,024 |
Related Party | |
Operating Leased Assets [Line Items] | |
2,016 | 1,364 |
2,017 | 1,062 |
2,018 | 331 |
2,019 | 0 |
2020 and thereafter | 0 |
Total | 2,757 |
Other | |
Operating Leased Assets [Line Items] | |
2,016 | 5,045 |
2,017 | 656 |
2,018 | 98 |
2,019 | 64 |
2020 and thereafter | 406 |
Total | $ 6,269 |
Commitments and Contingencies59
Commitments and Contingencies (Concentration of Risk) (Details) - Customer Concentration Risk - customer | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Largest Customer | Consolidated Revenues | |||
Concentration Risk [Line Items] | |||
Risk percent | 17.20% | 18.80% | 10.50% |
Largest Customer | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Risk percent | 16.50% | 18.40% | |
Five Largest Customers | Consolidated Revenues | |||
Concentration Risk [Line Items] | |||
Risk percent | 48.50% | 42.70% | 34.60% |
Number of customers | 5 | 5 | 5 |
Five Largest Customers | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Risk percent | 44.80% | 42.80% | |
Number of customers | 5 | 5 | |
Ten Largest Customers | Consolidated Revenues | |||
Concentration Risk [Line Items] | |||
Risk percent | 67.00% | 56.60% | 49.70% |
Number of customers | 10 | 10 | 10 |
Ten Largest Customers | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Risk percent | 62.60% | 57.50% | |
Number of customers | 10 | 10 | |
Major Customer One, 2015 | Consolidated Revenues | |||
Concentration Risk [Line Items] | |||
Risk percent | 17.20% | ||
Major Customer Two, 2015 | Consolidated Revenues | |||
Concentration Risk [Line Items] | |||
Risk percent | 11.30% |
Commitments and Contingencies60
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | |
Gain Contingencies [Line Items] | |||
Insurance coverage | $ 250,000 | ||
Percent of paid claims | 25.00% | ||
Claims made in excess amount | $ 800,000 | ||
Claims | 9,250,000 | ||
Rent expense | 16,000,000 | $ 20,600,000 | $ 20,800,000 |
Letters of credit outstanding | 10,700,000 | ||
Auto Liability and General Liability Insurances | |||
Gain Contingencies [Line Items] | |||
Self insurance reserve basic coverage | 1,000,000 | ||
Employee Group Medical Plan | |||
Gain Contingencies [Line Items] | |||
Self insurance reserve basic coverage | 300,000 | ||
Self insurance reserve | $ 7,300,000 | $ 7,900,000 | |
Sales Revenue, Net | Five Largest Customers | Customer Concentration Risk | |||
Gain Contingencies [Line Items] | |||
Number of customers | customer | 5 | 5 | 5 |
Risk percent | 48.50% | 42.70% | 34.60% |
Sales Revenue, Net | Ten Largest Customers | Customer Concentration Risk | |||
Gain Contingencies [Line Items] | |||
Number of customers | customer | 10 | 10 | 10 |
Risk percent | 67.00% | 56.60% | 49.70% |
Sales Revenue, Net | Largest Customer | Customer Concentration Risk | |||
Gain Contingencies [Line Items] | |||
Risk percent | 17.20% | 18.80% | 10.50% |
Accounts Receivable | Five Largest Customers | Customer Concentration Risk | |||
Gain Contingencies [Line Items] | |||
Number of customers | customer | 5 | 5 | |
Risk percent | 44.80% | 42.80% | |
Accounts Receivable | Ten Largest Customers | Customer Concentration Risk | |||
Gain Contingencies [Line Items] | |||
Number of customers | customer | 10 | 10 | |
Risk percent | 62.60% | 57.50% | |
Accounts Receivable | Largest Customer | Customer Concentration Risk | |||
Gain Contingencies [Line Items] | |||
Risk percent | 16.50% | 18.40% |
Supplemental Cash Flow Inform61
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash paid for | |||
Interest | $ 26,009 | $ 26,096 | $ 26,635 |
Income tax | 182 | 70 | (281) |
Supplemental schedule of non-cash investing and financing activities | |||
Financing of insurance notes | 7,705 | 6,976 | 6,198 |
Change in accounts payable related to capital expenditures | (1,487) | (2,395) | 2,692 |
Capital leases on equipment | 527 | 2,144 | 1,990 |
Preferred stock dividends and accretion costs | $ (42) | $ (42) | $ (42) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 15 | $ 238 | $ (48) |
State | 148 | 641 | 252 |
Foreign | (23) | 18 | 0 |
Total current income tax expense from continuing operations | 140 | 897 | 204 |
Deferred: | |||
Federal | (16,562) | (4,008) | (4,865) |
State | (192) | 51 | 46 |
Total deferred income tax benefit from continuing operations | (16,754) | (3,957) | (4,819) |
Total income tax benefit from continuing operations | (16,614) | (3,060) | (4,615) |
Current: | |||
Foreign | 0 | 0 | (88) |
Total current income tax benefit from discontinued operations | 0 | 0 | (88) |
Deferred: | |||
Federal | 0 | 0 | 0 |
Foreign | 0 | 0 | (158) |
Total deferred income tax benefit from discontinued operations | 0 | 0 | (158) |
Total income tax benefit from discontinued operations | 0 | 0 | (246) |
Total income tax benefit | $ (16,614) | $ (3,060) | $ (4,861) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax benefit at statutory rate of 35% | $ (21,941) | $ (3,983) | $ (6,094) |
Nondeductible expenses | 531 | 654 | 513 |
State taxes, net of federal benefit | 60 | 374 | 354 |
Change in deferred tax valuation allowance | 4,790 | 0 | 0 |
Revision related to tax basis of property and equipment | 0 | 0 | 553 |
Other | (54) | (105) | 59 |
Total income tax benefit from continuing operations | $ (16,614) | $ (3,060) | $ (4,615) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 30,991 | $ 11,013 |
Foreign tax credits | 796 | 796 |
Alternative minimum tax credit | 1,228 | 1,213 |
Stock - based compensation | 5,568 | 5,746 |
Bad debts | 644 | 1,444 |
Other | 3,068 | 2,936 |
Total deferred tax assets | 42,295 | 23,148 |
Less: valuation allowance | (5,586) | (796) |
Total deferred tax assets, net | 36,709 | 22,352 |
Deferred tax liabilities: | ||
Tax over book depreciation | (30,689) | (32,053) |
Intangible assets | (6,919) | (7,952) |
Total deferred tax liabilities | (37,608) | (40,005) |
Net deferred tax liability | $ (899) | $ (17,653) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Tax benefit attributable to discontinued operations, income net of tax expense | $ (246) | ||
Discontinued operations, income before income taxes | $ 500 | ||
Valuation allowance | $ 5,586 | $ 796 | |
Valuation allowance increase | 4,800 | ||
United States | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 88,500 |
Earning (loss) per Share (Narra
Earning (loss) per Share (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||
Stock options outstanding (in shares) | 614,125 | 1,148,625 | 1,400,425 |
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Stock earnings allocation | $ 0 | $ 0 | $ 0 |
Restricted Stock | |||
Class of Stock [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,358,324 | 637,495 | 674,789 |
Common Stock, Shares, Equivalent of Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 5,292,531 | 5,292,531 | 5,292,531 |
Earning (loss) per Share (Detai
Earning (loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net loss | $ (46,074) | $ (8,321) | $ (13,090) | ||||||||
Preferred stock dividends and accretion | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | (776) | (776) | (776) |
Net loss attributable to common shareholders | $ (46,850) | $ (9,097) | $ (13,866) | ||||||||
Weighted-average common shares (in shares) | 22,071 | 21,749 | 21,388 | ||||||||
Earnings per share, basic (in usd per share) | $ (2.12) | $ (0.42) | $ (0.65) |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)workover_rigswabbing_rigcoiled_tubing_spread | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)workover_rigsegmentswabbing_rigcoiled_tubing_spread | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Number of workover rigs | workover_rig | 159 | 159 | |||||||||
Number of swabbing rigs | swabbing_rig | 14 | 14 | |||||||||
Number of coiled tubing spreads | coiled_tubing_spread | 6 | 6 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||
Oil and Gas Revenue | $ 41,407 | $ 55,557 | $ 62,810 | $ 84,333 | $ 111,726 | $ 114,466 | $ 113,175 | $ 109,911 | $ 244,107 | $ 449,278 | $ 419,933 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Depreciation and amortization | 55,034 | 54,959 | 54,838 | ||||||||
Total assets | 412,427 | 483,613 | 412,427 | 483,613 | |||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
General and administrative | 31,591 | 36,428 | 30,186 | ||||||||
Operating income (loss) | (17,217) | $ (11,218) | $ (6,858) | $ 356 | 1,619 | $ 4,902 | $ 4,896 | $ 5,421 | (34,937) | 16,838 | 10,772 |
Loss from continuing operations before taxes | (62,688) | (11,381) | (17,412) | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Oil and Gas Revenue | 244,107 | ||||||||||
Operating revenues | 449,278 | 419,933 | |||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Direct operating costs | 192,419 | 341,053 | 324,137 | ||||||||
Gross Profit | 51,688 | 108,225 | 95,796 | ||||||||
Depreciation and amortization | 55,034 | 54,959 | 54,838 | ||||||||
Capital expenditures (1) | 8,608 | 37,626 | 47,308 | ||||||||
Total assets | 1,133,607 | 1,132,856 | 1,133,607 | 1,132,856 | 1,068,042 | ||||||
Long lived assets | 277,029 | 322,663 | 277,029 | 322,663 | 341,869 | ||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
General and administrative | 31,591 | 36,428 | 30,186 | ||||||||
Operating income (loss) | (34,937) | 16,838 | 10,772 | ||||||||
Other income and expenses, net | (27,751) | (28,219) | (28,184) | ||||||||
Loss from continuing operations before taxes | (62,688) | (11,381) | (17,412) | ||||||||
Operating Segments | Well Servicing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Oil and Gas Revenue | 150,949 | ||||||||||
Operating revenues | 285,338 | 231,930 | |||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Direct operating costs | 117,514 | 213,278 | 182,180 | ||||||||
Gross Profit | 33,435 | 72,060 | 49,750 | ||||||||
Depreciation and amortization | 25,914 | 24,396 | 23,207 | ||||||||
Capital expenditures (1) | 4,844 | 16,263 | 22,979 | ||||||||
Total assets | 662,819 | 646,912 | 662,819 | 646,912 | 584,271 | ||||||
Long lived assets | 165,416 | 188,726 | 165,416 | 188,726 | 199,692 | ||||||
Operating Segments | Fluid Logistics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Oil and Gas Revenue | 93,158 | ||||||||||
Operating revenues | 163,940 | 188,003 | |||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Direct operating costs | 74,905 | 127,775 | 141,957 | ||||||||
Gross Profit | 18,253 | 36,165 | 46,046 | ||||||||
Depreciation and amortization | 29,120 | 30,563 | 31,631 | ||||||||
Capital expenditures (1) | 3,764 | 21,363 | 24,329 | ||||||||
Total assets | 470,788 | 485,944 | 470,788 | 485,944 | 483,771 | ||||||
Long lived assets | 111,613 | 133,937 | 111,613 | 133,937 | $ 142,177 | ||||||
Elimination of internal transactions | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Total assets | (1,894,434) | (1,784,404) | (1,894,434) | (1,784,404) | |||||||
Parent | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Total assets | $ 1,173,254 | $ 1,135,161 | $ 1,173,254 | $ 1,135,161 |
Equity Securities (Details)
Equity Securities (Details) $ / shares in Units, $ in Thousands | May. 28, 2013$ / shares | Sep. 02, 2010shares | May. 28, 2010USD ($)$ / shares$ / CADshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | May. 28, 2010CAD / shares |
Class of Stock [Line Items] | |||||||
Voting right, vote per share | 1 | ||||||
Conversion of stock, conversion ratio (in shares) | 900.00% | ||||||
Preferred shares dividends and accretion costs | $ 42 | $ 42 | $ 42 | ||||
Series B Senior Convertible Preferred Shares | |||||||
Class of Stock [Line Items] | |||||||
Series B preferred shares, authorized (in shares) | shares | 825,000 | ||||||
Series B preferred shares, par value (in usd per share) | $ / shares | $ 0.01 | ||||||
Series B preferred shares, private placement (in shares) | shares | 580,800 | ||||||
Series B preferred shares, private placement price per share (in CAD per share) | CAD / shares | CAD 26.37 | ||||||
Series B preferred shares, gross proceeds | $ 14,500 | ||||||
Exchange rate between USD and CAD | $ / CAD | 1.0547 | ||||||
Series B preferred shares net proceeds received | $ 13,800 | ||||||
Closing fee | 300 | ||||||
Legal fees and other costs | $ 400 | ||||||
Dividend in kind, number of shares issued | shares | 7,259 | ||||||
Number of shares outstanding | shares | 588,059 | 588,059 | |||||
Redemption amount if Series B preferred stock is redeemed | $ 14,700 | ||||||
Preferred stock dividend rate, percentage | 5.00% | ||||||
Preferred stock, redemption price per share (in usd per share) | $ / shares | $ 25 | ||||||
Preferred stock redemption, minimum weighted average, price per share five day volume (in usd per share) | $ / shares | $ 3.33 | ||||||
Preferred shares dividends and accretion costs | $ 800 | $ 800 | $ 800 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, shares, conversion of convertible securities (in shares) | shares | 5,292,531 | ||||||
Minimum | |||||||
Class of Stock [Line Items] | |||||||
Common stock owned, percent | 20.00% | ||||||
Convertible Preferred Stock Subject to Mandatory Redemption [Member] | Series B Senior Convertible Preferred Shares | |||||||
Class of Stock [Line Items] | |||||||
Financial instruments subject to mandatory redemption, settlement terms, fair value of common stock, percent | 95.00% |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
General and administrative | $ 31,591 | $ 36,428 | $ 30,186 |
Total expenses | 279,044 | 432,440 | 409,161 |
Interest expense | (27,962) | (28,228) | (28,211) |
Loss before income taxes | (500) | ||
Net loss | $ 0 | (293) | |
Segment, Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | 0 | ||
General and administrative | 534 | ||
Total expenses | 534 | ||
Operating loss | (534) | ||
Interest expense | (5) | ||
Loss before income taxes | (539) | ||
Income tax benefit | (246) | ||
Net loss | $ 0 | $ (293) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Millions | Jan. 12, 2012USD ($) |
Discontinued Operations and Disposal Groups [Abstract] | |
Cash consideration | $ 30 |
Gain on disposal | $ 2.9 |
Supplemental Financial Inform72
Supplemental Financial Information Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 41,407 | $ 55,557 | $ 62,810 | $ 84,333 | $ 111,726 | $ 114,466 | $ 113,175 | $ 109,911 | $ 244,107 | $ 449,278 | $ 419,933 |
Operating income (loss) | (17,217) | (11,218) | (6,858) | 356 | 1,619 | 4,902 | 4,896 | 5,421 | (34,937) | 16,838 | 10,772 |
Net loss from continuing operations | (19,382) | (13,510) | (8,748) | (4,434) | (3,992) | (1,543) | (1,493) | (1,293) | (46,074) | (8,321) | (12,797) |
Preferred stock dividends | (194) | (194) | (194) | (194) | (194) | (194) | (194) | (194) | $ (776) | $ (776) | $ (776) |
Loss from continuing operations attributable to common shares | $ (19,576) | $ (13,704) | $ (8,942) | $ (4,628) | $ (4,186) | $ (1,737) | $ (1,687) | $ (1,487) | |||
Loss per share, Basic and diluted (in usd per share) | $ (0.88) | $ (0.62) | $ (0.41) | $ (0.21) | $ (0.19) | $ (0.08) | $ (0.08) | $ (0.07) | $ (2.12) | $ (0.42) | $ (0.65) |