Forbes Energy Services (FLSS) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 11, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Forbes Energy Services Ltd.
Entity Central Index Key	1,434,842
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding (in shares)		22,214,855

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 68,627	$ 74,611
Accounts receivable - trade, net of allowance for doubtful accounts of $1.2 million and $1.8 million as of June 30, 2016 and December 31, 2015, respectively	15,725	26,486
Accounts receivable - other	929	1,216
Prepaid expenses and other	6,082	9,486
Total current assets	91,363	111,799
Property and equipment, net	255,257	277,029
Intangible assets, net	3,488	19,431
Restricted cash	0	51
Other assets	1,098	844
Total assets	351,206	409,154
Current liabilities
Current portions of long-term debt	297,491	25,243
Accounts payable - trade	6,430	8,995
Accounts payable - related parties	2	8
Accrued dividends	245	61
Accrued interest payable	13,960	1,401
Accrued expenses	12,366	10,726
Total current liabilities	330,494	46,434
Long-term debt, net of current portion	1,262	279,798
Deferred tax liability	948	899
Total liabilities	332,704	327,131
Commitments and contingencies (Note 10)
Temporary equity
Series B senior convertible preferred shares, 588 shares outstanding at June 30, 2016 and December 31, 2015	14,665	14,644
Shareholders’ equity
Common stock, $.04 par value, 112,500 shares authorized, 22,215 and 22,210 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	889	889
Additional paid-in capital	193,865	194,253
Accumulated deficit	(190,917)	(127,763)
Total shareholders’ equity	3,837	67,379
Total liabilities and shareholders’ equity	$ 351,206	$ 409,154

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 1.2	$ 1.8
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)	22,215,000	22,210,000
Common stock, shares outstanding (in shares)	22,215,000	22,210,000
Series B Preferred Stock
Convertible preferred shares outstanding (in shares)	588,059	588,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Well servicing	$ 16,796	$ 39,030	$ 35,509	$ 90,216
Fluid logistics	11,615	23,780	24,833	56,927
Total revenues	28,411	62,810	60,342	147,143
Expenses
Well servicing	15,668	29,236	32,388	65,610
Fluid logistics	10,931	17,876	24,092	42,036
General and administrative	5,420	8,797	11,476	18,077
Depreciation and amortization	13,670	13,759	27,159	27,922
Loss on impairment of assets	14,512	0	14,512	0
Total expenses	60,201	69,668	109,627	153,645
Operating loss	(31,790)	(6,858)	(49,285)	(6,502)
Other income (expense)
Interest income	7	140	29	145
Interest expense	(6,912)	(6,911)	(13,858)	(13,781)
Pre-tax loss	(38,695)	(13,629)	(63,114)	(20,138)
Income tax (benefit) expense	(9)	(4,881)	40	(6,956)
Net loss	(38,686)	(8,748)	(63,154)	(13,182)
Preferred stock dividends	(194)	(194)	(388)	(388)
Net loss attributable to common shareholders	$ (38,880)	$ (8,942)	$ (63,542)	$ (13,570)
Loss per share of common stock
Basic and diluted loss per share (in usd per share)	$ (1.75)	$ (0.41)	$ (2.86)	$ (0.62)
Weighted average number of shares outstanding
Basic and diluted (in shares)	22,214	21,987	22,213	21,948

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Shares	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2015	$ 67,379	$ 14,644	$ 889	$ 194,253	$ (127,763)
Beginning balance, shares (in shares) at Dec. 31, 2015		588	22,210
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(63,154)				(63,154)
Common shares issued under stock plan:
Share - based compensation (in shares)			5
Preferred shares dividends and accretion	(388)	$ 21		(388)
Ending balance at Jun. 30, 2016	$ 3,837	$ 14,665	$ 889	$ 193,865	$ (190,917)
Ending balance, shares (in shares) at Jun. 30, 2016		588	22,215

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (63,154)	$ (13,182)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	27,159	27,922
Share-based compensation	127	629
Deferred tax expense (benefit)	49	(7,017)
Loss (gain) on disposal of assets, net	582	(342)
Loss on impairment of assets	14,512	0
Bad debt expense	520	507
Amortization of deferred financing cost	711	729
Changes in operating assets and liabilities:
Accounts receivable	10,527	39,175
Accounts receivable - related party	0	282
Prepaid expenses and other assets	(1,717)	256
Accounts payable - trade	(1,127)	(12,875)
Accounts payable - related parties	(6)	(94)
Accrued expenses	1,507	(5,232)
Accrued interest payable	12,559	0
Net cash provided by operating activities	2,249	30,758
Cash flows from investing activities:
Proceeds from sale of property and equipment	249	1,040
Purchases of property and equipment	(6,237)	(5,402)
Insurance proceeds	0	1,262
Change in restricted cash	51	929
Net cash used in investing activities	(5,937)	(2,171)
Cash flows from financing activities:
Payments of debt	(2,120)	(2,816)
Payment of tax withholding obligations related to restricted stock	(115)	(142)
Proceeds from revolving credit facility	0	15,000
Dividends paid on Series B senior convertible preferred shares	(61)	(368)
Net cash (used in) provided by financing activities	(2,296)	11,674
Net (decrease) increase in cash and cash equivalents	(5,984)	40,261
Cash and cash equivalents:
Beginning of period	74,611	34,918
End of period	$ 68,627	$ 75,179

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2016
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 re-completions, 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. 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. Our headquarters and executive offices are located at 3000 South Business Highway 281, Alice, Texas 78332. We can be reached by phone at (361) 664-0549. As used in these Consolidated Financial Statements, the “Company,” “we,” and “our” mean FES Ltd. and its direct and indirect subsidiaries, except as otherwise indicated.

Risk and Uncertainties

Risk and Uncertainties	6 Months Ended
	Jun. 30, 2016
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 experienced in the level of operating and capital spending in the industry, decreases in oil and natural gas prices, and/or industry perception about future oil and natural gas prices has materially decreased the demand for our services, and has had an adverse effect on our financial position, results of operations and cash flows.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Recent Developments On June 15, 2016, the Company elected not to make the $12.6 million semi-annual interest payment due on that date on the 9% senior notes due 2019, or the 9% Senior Notes. The indenture governing the 9% Senior Notes, or the 9% Senior Indenture provides that the failure to make such interest payment constitutes an event of default after a 30 -day cure period. The Company has not paid the interest payment. Accordingly, an event of default under the 9% Senior Indenture occurred, which gives the trustee or the holders of at least 25% of principal amount of 9% Senior Notes the option to declare all the 9% Senior Notes due and payable immediately. Additionally, such failure to make the interest payment within the 30-day cure period also constituted an event of default under the Company’s existing loan and security agreement, or the Loan Agreement, with certain lenders and Regions Bank, as agent for the secured parties, or the Agent, which allows the Agent to declare the Company’s obligations under the Loan Agreement immediately due and payable and to exercise the Agent’s and the lenders' other rights under the Loan Agreement. On July 15, 2016, the Company and its domestic subsidiaries, or the Guarantor Subs, entered into a forbearance agreement with holders of more than a majority of the 9% Senior Notes pursuant to the 9% Senior Indenture. That forbearance agreement has subsequently been joined by other holders of the 9% Senior Notes such that 62.1% of the holders of the 9% Senior Notes, or the Forbearing Holders, are now parties to the forbearance agreement, or the Indenture Forbearance Agreement. Pursuant to the Indenture Forbearance Agreement, the Forbearing Holders have agreed to forbear, during the Indenture Forbearance Period (as defined below), from exercising default remedies or accelerating any indebtedness under the 9% Senior Indenture resulting from the Company’s failure to make its semi-annual interest payment due on June 15, 2016 on the 9% Senior Notes. The forbearance period, or the Indenture Forbearance Period, under the Indenture Forbearance Agreement will expire on the earlier to occur of (i) 11:59 p.m. prevailing Central Time on September 16, 2016 and (ii) certain other specified events under the terms of the Indenture Forbearance Agreement. Additionally, on July 15, 2016, FES Ltd. and the Guarantor Subs, entered into a forbearance agreement and an amendment, or the Loan Forbearance Agreement, to the Loan Agreement. Pursuant to the Loan Forbearance Agreement, the Agent and the lenders, or the Loan Forbearing Parties, have agreed to forbear, during the Loan Forbearance Period (as defined below), from exercising default remedies or accelerating any indebtedness under the Loan Agreement resulting from the Company’s failure to make its semi-annual interest payment due on June 15, 2016 on the 9% Senior Notes. The forbearance period, or the Loan Forbearance Period, under the Loan Forbearance Agreement will expire on the earlier to occur of (i) 5:01 p.m. prevailing Dallas, Texas time on October 14, 2016 and (ii) certain other specified events under the terms of the Loan Forbearance Agreement. In connection with the Loan Forbearance Agreement, the Company is required to maintain cash on deposit of no less than $17.5 million with Agent, and the lenders under the Loan Agreement are not obligated to make additional advances. The Company and the Guarantor Subs entered into the Indenture Forbearance Agreement and the Loan Forbearance Agreement, or the Forbearance Agreements, to provide the Company and the Guarantor Subs with time to continue discussions with the Forbearing Holders and the Loan Forbearing Parties with respect to a proposed capital restructuring of the Company. As previously disclosed, the Company has engaged financial and legal advisors to assist it in evaluating potential strategic alternatives. There can be no assurance that the Company and the Guarantor Subs will reach any agreement with any of the Forbearing Holders and the Loan Forbearing Parties on a capital restructuring of the Company by the end of the Indenture Forbearance Period or Loan Forbearance Period, as applicable, if at all, or that the Forbearance Agreements or the Indenture Forbearance Period or the Loan Forbearance Agreement will be extended. Failure to reach an agreement with the Forbearing Holders and the Loan Forbearing Parties prior to the expiration of the Indenture Forbearance Agreement and the Loan Forbearance Agreement would allow the trustee or the holders of the 9% Senior Notes or the lenders to accelerate the 9% Senior Notes and the loans or seek other remedies, which would jeopardize the Company’s ability to continue its current operations. If the lenders accelerate the maturity of the Company’s debt, the Company will not have sufficient cash on hand or borrowing capacity to satisfy the obligations, and may not be able to pay its debts or refinance it on acceptable terms. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles accepted in the United States of America which contemplate the continuation of the Company as a going concern. During the six months ended June 30, 2016, the Company incurred a net loss of $63.2 million and has a working capital deficit of $(239.1) million at June 30, 2016, primarily due to the classification of the 9% Senior Notes as current liabilities resulting from the ability of the holders of such 9% Senior Notes to accelerate any indebtedness under the 9% Senior Indenture. The Company is in discussions to reach an agreement with the Forbearance Holders and the Loan Forbearing Parties with respect to a proposed capital restructuring of the Company. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation with no material effect on the consolidated financial statements. Interim Financial Information The unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, for interim financial reporting. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, these condensed consolidated financial statements should be read along with the annual audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. Interim results for the three and six months ended June 30, 2016 may not be indicative of results that will be realized for the full year ending December 31, 2016 . All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the condensed consolidated financial statements. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board issued ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payables in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regard to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company believes the adoption of this new standard will have an immaterial impact on its consolidated financial statements and related disclosures. Impairment During the second quarter of 2016, the Company experienced a triggering event resulting from the continuing decline in operating revenues due to an industry-wide slowdown, which began in the second half of 2014. Indicators of impairment were present; therefore, the Company assessed all of its long-lived assets for impairment, which resulted in the carrying amounts of long-lived assets associated with its fluid logistics segment in exceeding the recoverable amounts based upon the undiscounted cash flow analysis. As a result, the Company hired an independent consulting firm to measure the fair values of the long-lived assets associated with its fluid logistics segment. Based on the fair value analysis, the fair values of certain intangible assets were determined to be less than their carrying amounts; therefore, an impairment loss of $14.5 million was recorded as a component of operating expenses based on the amount that the carrying value exceeded fair value. Fair value of the intangible assets was determined utilizing a combination of the income, cost and market approaches. Specific intangible assets affected were customer relationships and other intangibles.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [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 six months ended June 30, 2016 and 2015 . Amortization expense is calculated using the straight-line method over the period indicated. Amortization expense for each of the three months ended June 30, 2016 and 2015 was $0.7 million and for each of the six months ended June 30, 2016 and 2015 was $1.4 million . As noted above, an impairment of $14.5 million was recorded during the three months ended June 30, 2016. Based upon the Company's findings, the recoverable amount of the trade name was in excess of the carrying amount, and no impairment was indicated as of June 30, 2016 . The following sets forth the identified intangible assets by major asset class: As of June 30, 2016 As of December 31, 2015 Useful Life (years) Gross Carrying Value Accumulated Amortization Impairment Net Book Value Gross Carrying Value Accumulated Amortization Impairment Net Book Value (in thousands) Customer relationships 15 $ 31,896 $ (18,073 ) $ (13,823 ) $ — $ 31,896 $ (17,011 ) $ — $ 14,885 Trade names 15 8,050 (4,562 ) — 3,488 8,050 (4,293 ) — 3,757 Other 10-15 2,375 (1,686 ) (689 ) — 2,375 (1,586 ) — 789 $ 42,321 $ (24,321 ) $ (14,512 ) $ 3,488 $ 42,321 $ (22,890 ) $ — $ 19,431 Estimated amortization expense of the intangible assets remaining for the years 2017 through 2022 is $0.5 million per year.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2016
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 units granted through June 30, 2016 (as discussed in the Restricted Stock Units paragraph below), there were 1,388,685 shares available for future issuance under the 2012 Incentive Compensation Plan. There have been no stock option awards issued under the 2012 Plan. Stock Options The following table presents a summary of the Company’s stock option activity for the six months ended June 30, 2016 for options granted under the Company's 2008 Incentive Compensation Plan: Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2015 614,125 $ 6.80 4.87 years $ — Granted — Exercised — Forfeited/canceled — — $ — Options outstanding at June 30, 2016 614,125 $ 6.80 4.37 years $ — Vested and expected to vest at June 30, 2016 614,125 $ 6.80 4.37 years $ — Exercisable at June 30, 2016 614,125 $ 6.80 4.37 years $ — During the six months ended June 30, 2016 and 2015, the Company recorded no expenses for share-based compensation related to stock options, as all outstanding options are fully vested. There was no share-based compensation expense capitalized for either of the six months ended June 30, 2016 or 2015 . As of June 30, 2016 , there was no unrecognized share-based compensation expense for stock options. Restricted Stock Units The following table presents a summary of restricted stock unit grant activity for the six month period ended June 30, 2016 : Equity Based Liability Based Total Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2015 118,779 1,239,545 1,358,324 $ 1.70 Granted — — — — Vested — (642,645 ) (642,645 ) 1.88 Forfeited — — — — Nonvested at June 30, 2016 118,779 596,900 715,679 $ 1.53 In the six months ended June 30, 2016 and 2015 , participants utilized a net withholding exercise method, in which restricted stock units were withheld to cover payroll withholding tax. After giving effect to tax withholdings, the cumulative net shares issued to the participants were 4,500 and 259,041 out of 642,645 and 397,875 vested shares of restricted stock units for the six months ended June 30, 2016 and 2015 , respectively. There were 360,658 and zero shares settled in cash for the six months ended June 30, 2016 and 2015 , respectively. There were 277,487 and 138,834 shares surrendered for payroll withholding tax for the six months ended June 30, 2016 and 2015 , respectively. The total pretax cash outflow, as included in withholding tax payments in our condensed consolidated statements of cash flows, for this net withholding exercise for the six months ended June 30, 2016 and 2015 was $0.1 million . Share-based compensation expense for the restricted stock units granted for each of the six months ended June 30, 2016 and 2015 was $0.1 million and $0.6 million , respectively. The remaining share-based compensation expense of $0.9 million related to restricted stock units granted will be recognized over a weighted-average period of 2.17 years. The following table summarizes the Company's share-based compensation expense for equity awards and liability awards (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Awards classified as equity: Restricted stock unit expense $ — $ 287 $ — $ 400 Stock option expense — — — — Awards classified as liability: Restricted stock unit expense 57 223 127 229 Total share-based compensation expense $ 57 $ 510 $ 127 $ 629

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: Estimated Life in Years June 30, December 31, (in thousands) Well servicing equipment 9-15 years $ 410,244 $ 413,543 Autos and trucks 5-10 years 130,749 126,994 Disposal wells 5-15 years 38,416 38,426 Building and improvements 5-30 years 14,107 14,107 Furniture and fixtures 3-15 years 6,646 6,573 Land 1,524 1,524 601,686 601,167 Accumulated depreciation (346,429 ) (324,138 ) $ 255,257 $ 277,029 Depreciation expense was $13.0 million and $25.8 million for the three and six months ended June 30, 2016 , respectively, and $13.1 million and $26.5 million for the three and six months ended June 30, 2015 , respectively.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt at June 30, 2016 and December 31, 2015 consisted of the following: June 30, December 31, (in thousands) 9% senior notes, net of deferred financing costs of $2.8 million and $3.3 million as of June 30, 2016 and December 31, 2015 respectively $ 277,194 $ 276,727 Revolving credit facility 15,000 15,000 Third party equipment notes and capital leases 5,001 7,133 Insurance notes 1,558 6,181 298,753 305,041 Less: Current portion (297,491 ) (25,243 ) $ 1,262 $ 279,798 9% Senior Notes On June 7, 2011, FES Ltd. issued $ 280.0 million in principal amount of 9% senior notes due 2019 , or the 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, or the Guarantor Subs, of the Company, which include Forbes Energy Services, LLC, or FES LLC, C.C. Forbes, LLC, or CCF, TX Energy Services, LLC, or TES, and Forbes Energy International, LLC, or 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 the assets of the applicable Guarantor, or all of its 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, or the 9% 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 therefor set forth in the 9% Senior Indenture. 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 9% 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 9% Senior Indenture to incur additional indebtedness in the future, provided that certain financial conditions set forth in the 9% Senior Indenture are satisfied. The Company is subject to certain covenants contained in the 9% 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 9% 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. As a result of the adoption of ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” on January 1, 2016, the Company recorded debt issuance costs of $2.8 million and retroactively recorded debt issuance costs of $3.3 million as a reduction in the carrying amount of the related 9% Senior Notes of $280.0 million as of June 30, 2016 and December 31, 2015 , respectively. On June 15, 2016, the Company elected not to make the $12.6 million semi-annual interest payment due on that date on the 9% Senior Notes. On July 15, 2016, the Company and the Guarantor Subs entered into a forbearance agreement with certain holders of the 9% Senior Notes. See further discussion contained herein. As a result of not making the interest payment and the forbearance agreement, the amounts outstanding of the 9% Senior Notes are classified as current in the condensed consolidated balance sheet. Revolving Credit Facility On September 9, 2011, the Company entered into the Loan Agreement. The Loan 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 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 9% 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 9% Senior Indenture) reported for the last fiscal quarter for which financial statements are available. As of June 30, 2016 , 18% of our Consolidated Tangible Assets was approximately $62.6 million . Under the Loan 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 servicing 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 amended, the Loan Agreement has a stated maturity of July 26, 2018. In June 2015, FES LLC borrowed $15.0 million under the facility. As of June 30, 2016 , the facility had a revolving loan balance outstanding of $15.0 million and $10.7 million in letters of credit outstanding against the facility. Absent the effect of the event of default resulting from the non-payment of interest due on June15, 2016 on the 9% Senior Notes and the related Loan Forbearance Agreement, the borrowing availability under the facility would be $49.3 million . Under cross default provisions in the Loan Agreement, an event of default under the 9% Senior Notes constitutes an event of default under the Loan Agreement. As of July 15, 2016, the Company entered into a loan forbearance agreement. See further discussion below. In connection with the Loan Forbearance Agreement discussed below, during the forbearance period the lenders are not obligated to make further advances to the Company under the Loan Agreement. As a result of these matters, amounts outstanding under the Loan Agreement are classified as current in the condensed consolidated balance sheet. 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 June 30, 2016 was 2.5% . 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 Agreement. Their obligations have been guaranteed by one another and by FES Ltd. 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. We are 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 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 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 Agreement also contains customary representations and warranties and event of default provisions. Forbearance Agreements On June 15, 2016, the Company elected not to make the $12.6 million semi-annual interest payment due on that date on the 9% Senior Notes. The 9% Senior Indenture provides that the failure to make such interest payment constitutes an event of default after a 30 -day cure period. The Company has not paid the interest payment. Accordingly, an event of default under the 9% Senior Indenture occurred, which gives the trustee or the holders of at least 25% of principal amount of 9% Senior Notes the option to declare all the 9% Senior Notes due and payable immediately. Additionally, such failure to make the interest payment within the 30-day cure period also constituted an event of default under the Loan Agreement which allows the Agent to declare the Company’s obligations under the Loan Agreement immediately due and payable and to exercise the Agent’s and the lenders’ other rights under the Loan Agreement. On July 15, 2016, the Company and Guarantor Subs entered into the Indenture Forbearance Agreement. Pursuant to the Indenture Forbearance Agreement, the Forbearing Holders have agreed to forbear, during the Indenture Forbearance Period, from exercising default remedies or accelerating any indebtedness under the 9% Senior Indenture resulting from the Company’s failure to make its semi-annual interest payment due on June 15, 2016 on the 9% Senior Notes. The Indenture Forbearance Period will expire on the earlier to occur of (i) 11:59 p.m. prevailing Central Time on September 16, 2016 and (ii) certain other specified events under the terms of the Indenture Forbearance Agreement. Additionally, on July 15, 2016, FES Ltd. and the Guarantor Subs, entered into the Loan Forbearance Agreement. Pursuant to the Loan Forbearance Agreement, the Loan Forbearing Parties have agreed to forbear, during the Loan Forbearance Period, from exercising default remedies or accelerating any indebtedness under the Loan Agreement resulting from the Company’s failure to make its semi-annual interest payment due on June 15, 2016 on the 9% Senior Notes. The Loan Forbearance Period will expire on the earlier to occur of (i) 5:01 p.m. prevailing Dallas, Texas time on October 14, 2016 and (ii) certain other specified events under the terms of the Loan Forbearance Agreement. In connection with the Loan Forbearance Agreement, the Company is required to maintain cash on deposit of no less than $17.5 million with Agent, and the lenders under the Loan Agreement are not obligated to make additional advances. The Company and the Guarantor Subs entered into the Forbearance Agreements, to provide the Company and the Guarantor Subs with time to continue discussions with the Forbearing Holders and the Loan Forbearing Parties with respect to a proposed capital restructuring of the Company. As previously disclosed, the Company has engaged financial and legal advisors to assist it in evaluating potential strategic alternatives. There can be no assurance that the Company and the Guarantor Subs will reach any agreement with any of the Forbearing Holders and the Loan Forbearing Parties on a capital restructuring of the Company by the end of the Indenture Forbearance Period or Loan Forbearance Period, as applicable, if at all, or that the Forbearance Agreements or the Indenture Forbearance Period or the Loan Forbearance Period will be extended. Failure to reach an agreement with the Forbearing Holders and the Loan Forbearing Parties prior to the expiration of the Indenture Forbearance Agreement and the Loan Forbearance Agreement would allow the trustee or the holders of the 9% Senior Notes or the lenders to accelerate the 9% Senior Notes and the loans or seek other remedies, which would jeopardize the Company’s ability to continue its current operations. If the lenders accelerate the maturity of the Company’s debt, the Company will not have sufficient cash on hand or borrowing capacity to satisfy the obligations, and may not be able to pay its debts or refinance it on acceptable terms. 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 June 30, 2016 and December 31, 2015 of approximately $5.0 million and $7.1 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 3.1% to 8.4% 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 $1.1 million and $1.4 million for the three months ended June 30, 2016 and 2015 , respectively, and $2.1 and $2.8 for the six months ended June 30, 2016 and 2015 , respectively. Following are required principal payments due on notes and capital leases (other than the 9% Senior Notes) existing as of June 30, 2016 : July - December 2016 2017 2018 2019 2020 and thereafter (in thousands) Notes and capital lease principal payments $ 1,935 $ 2,822 $ 244 $ — $ — Management has historically acquired all light duty trucks (pickup 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 October of 2015, the Company entered into promissory notes for the payment of insurance premiums at an interest rate of 3.4% with an aggregate principal amount outstanding as of June 30, 2016 and December 31, 2015 of approximately $1.6 million and $6.2 million , respectively. The amount outstanding could be substantially offset by the cancellation of the related insurance coverage which is classified as prepaid insurance.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amounts of cash and cash equivalents, accounts receivable-trade, accounts receivable-other, accounts payable-trade, and insurance notes, approximate fair value because of the short maturity of these instruments. The fair values of third party notes and equipment notes approximate their carrying values, based on current market rates at which the Company could borrow funds with similar maturities (Level 2 in the fair value hierarchy). June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) 9% Senior Notes $ 277,194 $ 116,422 $ 276,727 $ 130,062 The fair value of our 9% Senior Notes is a Level 1 input within the fair value hierarchy and is based on the dealer quoted market prices at June 30, 2016 and December 31, 2015 , respectively. Fair Value on a Non-Recurring Basis The Company utilizes fair value, on a non-recurring basis, to perform impairment testing on the Company’s long-lived assets by comparing carrying value to estimated undiscounted future net cash flows. If the carrying value of long-lived assets exceed undiscounted future net cash flows, the measurement of impairment is based on estimated fair value. These estimates are prepared using assumptions and judgments that are classified as Level 3 items within the fair value hierarchy. While management believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different estimates of fair value at the reporting date.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
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 represent related party transactions. As of June 30, December 31, 2015 (in thousands) Related parties cash and cash equivalents balances: Balance at Texas Champion Bank (1) $ 1,308 $ 1,132 Balance at Brush Country Bank (2) 429 485 Related parties payable: Dorsal Services, Inc. (3) 2 2 Tasco Tool Service Ltd. (4) — 2 Texas Quality Gate Guard Services, LLC (5) — 4 $ 2 $ 8 There were no related party receivables as of June 30, 2016 and December 31, 2015 . Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) Related parties capital expenditures: Alice Environmental Holdings, LLC (6) $ — $ — $ — $ 455 $ — $ — $ — $ 455 Related parties revenue activity: Dorsal Services, Inc. (3) $ — $ 6 $ — $ — Tasco Tool Service Ltd. (4) — 1 — 1 $ — $ 7 $ — $ 1 Related parties expense activity: Alice Environmental Services, LP/Alice Environmental Holdings, LLC (6) $ 264 $ 559 $ 561 $ 1,135 Dorsal Services, Inc. (3) 8 — — 19 Tasco Tool Service Ltd. (4) — 68 15 135 FCJ Management, LLC (7) — 5 — 14 Texas Quality Gate Guard Services, LLC (5) 19 61 65 114 Animas Holdings, LLC (8) 44 73 84 149 CJW Group, LLC (9) 9 10 19 19 $ 344 $ 776 $ 744 $ 1,585 Other payments to related parties: SB Factoring, LLC (10) $ 89 $ 443 $ 217 $ 1,413 $ 89 $ 443 $ 217 $ 1,413 (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) Tasco Tool Services, Ltd., or Tasco, is a down-hole tool company that is partially owned and managed by a company that is partially owned by Mr. Forbes. Tasco rents and sells tools to the Company from time to time. (5) 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. (6) 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 formerly leased 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. (7) FCJ Management, LLC, or FCJ, is an entity that leases land and facilities to the Company and is partially owned by Messrs. Crisp and Forbes. The lease with FCJ was terminated during the third quarter of 2015. (8) Animas Holdings, LLC, or Animas, is owned by the two sons of Mr. Crisp and three children of Mr. Forbes. Animas owns land and property that it leases to the Company. (9) CJW Group, LLC is an entity that leases office space to the Company and is partially owned by Messrs. Crisp and Forbes. (10) From time to time, vendors of the Company factor their receivables from the Company and direct that the Company make payment of such factored amounts directly to the applicable factor. One such factor to whom payments have been made by the Company is SB Factoring LLC which is owned in part by each of Mr. Crisp and Mr. Forbes. The nature of these transactions does not result in recording in the Company’s financial records any revenue, any expense or any receivable and does not result in any payable distinct in amount from the amount payable to such vendors as originally incurred.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Concentrations of Credit Risk FDIC insurance coverage is currently $250,000 per depositor at each financial institution, and our non-interest bearing cash balances typically exceed 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 three months ended June 30, 2016, the Company's largest customer, five largest customers, and ten largest customers constituted 18.1% , 62.8% and 76.2% of consolidated revenues, respectively. For the three months ended June 30, 2016, ConocoPhillips Company, Anadarko Petroleum Corporation, EOG Resources and Chesapeake Energy constituted 18.1% , 12.8% , 12.2% and 11.2% of consolidated revenues, respectively. For the six months ended June 30, 2016 , the Company's largest customer, five largest customers, and ten largest customers constituted 21.0% , 59.8% and 76.1% of consolidated revenues, respectively. For the six months ended June 30, 2016, ConocoPhillips Company, EOG Resources and Anadarko Petroleum Corporation constituted 21.0% , 11.3% and 10.8% of consolidated 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, our 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 June 30, 2016 , the Company's largest customer, five largest customers, and ten largest customers constituted 20.8% , 64.3% and 79.5% of accounts receivable, respectively. As of June 30, 2016, ConocoPhillips, Chesapeake Energy and Anadarko Petroleum constituted 20.8% , 18.0% and 10.2% of accounts receivable, respectively. Self-Insurance The Company is self-insured under its Employee Group Medical Plan for the first $150 thousand per individual. The Company is also self-insured with a retention or deductible for the first $1.0 million in claims under each of its insurance policies as follows: auto liability $1.0 million deductible; workers' compensation/employers' liability $1.0 million deductible; general liability $1.0 million self-insured retention. The Company has an additional premium payable clause under its lead $10.0 million limit excess policy that states in the event losses exceed $0.8 million , a loss additional premium of up to 25% of paid losses in excess of $0.8 million will be due. The loss additional premium is payable at the time when the loss is paid and will be payable over a period agreed by insurers. The Company has accrued liabilities totaling $8.2 million and $7.3 million as of June 30, 2016 and December 31, 2015 , respectively, for the projected additional premium 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 constitute 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 are summarized in the table below. Following are future lease payments on operating leases existing as of June 30, 2016 : July - December 2016 2017 2018 2019 2020 and thereafter (in thousands) Lease payments $ 2,051 $ 1,641 $ 817 $ 553 $ 4,140

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Six months ended June 30, 2016 2015 (in thousands) Cash paid for Interest $ 261 $ 13,089 Income tax — 60 Supplemental schedule of non-cash investing and financing activities Changes in accounts payable related to capital expenditures $ (1,450 ) $ 1,466 Capital leases on equipment — 562 Preferred stock dividends and accretion costs 21 21

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic earnings (loss) per share, or EPS, is computed by dividing net income (loss) available to common shareholders by the weighted average 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 stock, such as options and convertible preferred stock, were exercised and converted into common stock. Potential common stock equivalents relate to outstanding stock options and unvested restricted stock units, which are determined using the treasury stock method, and the 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. As of June 30, 2016 and June 30, 2015 , there were 614,125 and 1,148,625 options to purchase common stock outstanding, respectively, and 588,059 Series B Preferred Stock. The Series B Preferred Stock is convertible at a rate of nine shares of common stock to one share of Series B Preferred Stock, or 5,292,531 shares of common stock. The shares of Series B Preferred Stock are participating securities as they participate in undistributed earnings with common stock, whether that participation is conditioned upon the occurrence of a specified event or not. 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 shares by the weighted-average common stock outstanding during the period. Under the certificate of designation for our Series B Preferred Stock, or the Series B Certificate of Designation, if at any time the Company declares a dividend in cash which is greater in value than five percent on a cumulative basis over the previous twelve month period of the then current “Common Stock Fair Market Value,” as that term is defined in the Series B Certificate of Designation, the Series B Preferred Stock will be entitled to receive a dividend payable in cash equal to the amount in excess of five percent of the then Common Stock Fair Market Value per common share they would have received if all outstanding Series B Preferred Stock had been converted into common shares. There were no earnings allocated to the Series B Preferred Stock for the quarters ended June 30, 2016 and 2015 since there was a net loss for those periods and, thus, earnings for the quarter were not in excess of amounts prescribed by the Series B Certificate of Designation for our Series B Preferred Stock. Diluted EPS for the Company’s common stock is computed using the more dilutive of the two-class method or the if-converted method. The following table sets forth the reconciliation of weighted average shares outstanding and diluted weighted average shares outstanding: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Weighted average shares outstanding 22,214 21,987 22,213 21,948 Dilutive effect of stock options and restricted stock — — — — Dilutive effect of preferred stock — — — — Diluted weighted average shares outstanding 22,214 21,987 22,213 21,948 There were 614,125 stock options, 715,679 units of unvested restricted stock, and 5,292,531 shares of common stock equivalents underlying the Series B Preferred Stock outstanding as of June 30, 2016 that were not included in the calculation of diluted EPS for the six months ended June 30, 2016 because their effect would have been antidilutive. There were 1,148,625 stock options, 383,628 units of unvested restricted stock, and 5,292,531 shares of common stock equivalents underlying the Series B Preferred Stock outstanding as of June 30, 2015 that were not included in the calculation of diluted EPS for the six months ending June 30, 2015 because their effect would have been antidilutive. The following table sets forth the computation of basic and diluted loss per share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands, except per share amounts) Basic and diluted: Net loss $ (38,686 ) $ (8,748 ) $ (63,154 ) $ (13,182 ) Preferred stock dividends and accretion (194 ) (194 ) (388 ) (388 ) Net loss attributable to common shareholders $ (38,880 ) $ (8,942 ) $ (63,542 ) $ (13,570 ) Weighted-average common shares 22,214 21,987 22,213 21,948 Basic and diluted net loss per share $ (1.75 ) $ (0.41 ) $ (2.86 ) $ (0.62 )

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the six months ended June 30, 2016 was (0.06)% based on pre-tax loss of $63.1 million . The Company's effective tax rate for the six months ended June 30, 2015 was 34.5% based on a pre-tax loss of $20.1 million . The difference between the effective rate and 35.0% statutory rate is mainly due to the application of a valuation allowance in 2016 . With respect to the application of a valuation allowance, the management team considered the likelihood of realizing the future benefits associated with the Company's existing deductible temporary differences and carryforwards. As a result of this analysis, and based on the current year pre-tax loss and a cumulative loss in the prior three fiscal years, management determined that it is not more likely than not that the future benefit associated with all of the Company's existing deductible temporary differences and carryforwards will be realized. As a result, the Company maintained a valuation allowance against all of its net deferred tax assets. Management evaluates the recoverability of the Company's deferred income tax assets by assessing the need for a valuation allowance on a quarterly basis. If the Company determines that it is more likely than not that its deferred tax assets will be recovered, the valuation allowance will be reduced.

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Reporting [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 June 30, 2016 , our well servicing segment utilized our fleet of 173 well servicing rigs, which was comprised of 159 workover rigs and 14 swabbing rigs, six coiled tubing spreads, and other 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) pressure testing of oil and natural gas production tubing and scanning tubing for pitting and wall thickness using tubing testing units. Fluid Logistics The fluid logistics segment utilizes our fleet of owned or leased fluid transport trucks and related assets, including specialized vacuum, high pressure pump and tank trucks, frac tanks, salt water disposal wells and facilities, and related equipment. These assets are used to transport, store and dispose of a variety of drilling and produced fluids used in and generated by oil and natural gas production activities. These services are required in most workover and completion projects and are routinely used in the daily operation of producing wells. The following tables set forth certain financial information with respect to the Company’s reportable segments for the three and six months ended June 30, 2016 and June 30, 2015 : Three months ended June 30, Six months ended June 30, Well Servicing Fluid Logistics Consolidated Well Servicing Fluid Logistics Consolidated 2016 (in thousands) (in thousands) Operating revenues $ 16,796 $ 11,615 $ 28,411 $ 35,509 $ 24,833 $ 60,342 Direct operating costs 15,668 10,931 26,599 32,388 24,092 56,480 Segment operating profits $ 1,128 $ 684 $ 1,812 $ 3,121 $ 741 $ 3,862 Depreciation and amortization $ 6,927 $ 6,743 $ 13,670 $ 13,603 $ 13,556 $ 27,159 Loss on impairment of assets — 14,512 14,512 $ — 14,512 14,512 Capital expenditures (1) 720 2,437 3,157 913 3,874 4,787 Total assets 611,540 444,652 1,056,192 611,540 444,652 1,056,192 Long-lived assets 151,934 103,323 255,257 151,934 103,323 255,257 2015 Operating revenues $ 39,030 $ 23,780 $ 62,810 $ 90,216 $ 56,927 $ 147,143 Direct operating costs 29,236 17,876 47,112 65,610 42,036 107,646 Segment operating profits $ 9,794 $ 5,904 $ 15,698 $ 24,606 $ 14,891 $ 39,497 Depreciation and amortization $ 6,393 $ 7,366 $ 13,759 $ 12,934 $ 14,988 $ 27,922 Capital expenditures (1) 722 2,715 3,437 4,026 3,404 7,430 Total assets 653,685 478,252 1,131,937 653,685 478,252 1,131,937 Long-lived assets 178,373 123,198 301,571 178,373 123,198 301,571 (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 period end. Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Reconciliation of the Company Operating Loss As Reported: (in thousands) (in thousands) Segment operating profits $ 1,812 $ 15,698 $ 3,862 $ 39,497 General and administrative expense 5,420 8,797 11,476 18,077 Depreciation and amortization 13,670 13,759 27,159 27,922 Loss on impairment of assets 14,512 — 14,512 — Operating loss (31,790 ) (6,858 ) (49,285 ) (6,502 ) Other income and expenses, net (6,905 ) (6,771 ) (13,829 ) (13,636 ) Pre-tax loss $ (38,695 ) $ (13,629 ) $ (63,114 ) $ (20,138 ) June 30, 2016 December 31, 2015 Reconciliation of the Company Assets As Reported: (in thousands) Total reportable segments $ 1,056,192 $ 1,133,607 Elimination of internal transactions (1,869,305 ) (1,894,434 ) Parent 1,164,319 1,169,981 Total assets $ 351,206 $ 409,154

Equity Securities

Equity Securities	6 Months Ended
	Jun. 30, 2016
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 Preferred Stock - Temporary Equity Under our Series B Certificate of Designation, we are authorized to issue 825,000 shares of 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 approximately 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 USD $0.3 million and legal fees and other offering costs of USD $0.4 million . This is presented as temporary equity on the balance sheet. On September 1, 2010, the Company paid a dividend in kind by issuing 7,259 shares of Series B Preferred Stock. The common stock into which the Series B Preferred Stock is convertible has certain demand and “piggyback” registration rights. 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 June 30, 2016 and December 31, 2015 , the redemption amount applicable at each date would have been approximately $ 14.7 million . Dividends The Series B Preferred Stock is entitled to receive preferential dividends equal to five percent ( 5.0% ) 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). As shares of the Series B Preferred Stock are convertible into shares of our common stock, any dividend paid in kind would have a dilutive effect on our shares of common stock. 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 would be 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 the Black-Scholes Option Pricing Model). Dividends and accretion for each of the three and six months ended June 30, 2016 and June 30, 2015 was $0.2 million in each period. Dividends were paid as required through February 28, 2016. The Company did not make the dividend payment due on May 28, 2016 and does not anticipate making the payment due on August 28, 2016. In the event that we fail to pay dividends, in cash or in-kind, on the Series B Preferred Stock for an aggregate of at least eight quarterly dividend periods (whether or not consecutive), the holders of the Series B Preferred Stock will be entitled to vote at any meeting of the shareholders with the holders of the common shares 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.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification	Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation with no material effect on the consolidated financial statements.
Interim Financial Information	Interim Financial Information The unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, for interim financial reporting. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, these condensed consolidated financial statements should be read along with the annual audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. Interim results for the three and six months ended June 30, 2016 may not be indicative of results that will be realized for the full year ending December 31, 2016 . All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the condensed consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board issued ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payables in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regard to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company believes the adoption of this new standard will have an immaterial impact on its consolidated financial statements and related disclosures.
Impairment	Impairment During the second quarter of 2016, the Company experienced a triggering event resulting from the continuing decline in operating revenues due to an industry-wide slowdown, which began in the second half of 2014. Indicators of impairment were present; therefore, the Company assessed all of its long-lived assets for impairment, which resulted in the carrying amounts of long-lived assets associated with its fluid logistics segment in exceeding the recoverable amounts based upon the undiscounted cash flow analysis. As a result, the Company hired an independent consulting firm to measure the fair values of the long-lived assets associated with its fluid logistics segment. Based on the fair value analysis, the fair values of certain intangible assets were determined to be less than their carrying amounts; therefore, an impairment loss of $14.5 million was recorded as a component of operating expenses based on the amount that the carrying value exceeded fair value. Fair value of the intangible assets was determined utilizing a combination of the income, cost and market approaches. Specific intangible assets affected were customer relationships and other intangibles.

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	The following sets forth the identified intangible assets by major asset class: As of June 30, 2016 As of December 31, 2015 Useful Life (years) Gross Carrying Value Accumulated Amortization Impairment Net Book Value Gross Carrying Value Accumulated Amortization Impairment Net Book Value (in thousands) Customer relationships 15 $ 31,896 $ (18,073 ) $ (13,823 ) $ — $ 31,896 $ (17,011 ) $ — $ 14,885 Trade names 15 8,050 (4,562 ) — 3,488 8,050 (4,293 ) — 3,757 Other 10-15 2,375 (1,686 ) (689 ) — 2,375 (1,586 ) — 789 $ 42,321 $ (24,321 ) $ (14,512 ) $ 3,488 $ 42,321 $ (22,890 ) $ — $ 19,431

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
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 six months ended June 30, 2016 for options granted under the Company's 2008 Incentive Compensation Plan: Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2015 614,125 $ 6.80 4.87 years $ — Granted — Exercised — Forfeited/canceled — — $ — Options outstanding at June 30, 2016 614,125 $ 6.80 4.37 years $ — Vested and expected to vest at June 30, 2016 614,125 $ 6.80 4.37 years $ — Exercisable at June 30, 2016 614,125 $ 6.80 4.37 years $ —
Summary of Restricted Stock Unit Grant Activity	The following table presents a summary of restricted stock unit grant activity for the six month period ended June 30, 2016 : Equity Based Liability Based Total Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2015 118,779 1,239,545 1,358,324 $ 1.70 Granted — — — — Vested — (642,645 ) (642,645 ) 1.88 Forfeited — — — — Nonvested at June 30, 2016 118,779 596,900 715,679 $ 1.53
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	The following table summarizes the Company's share-based compensation expense for equity awards and liability awards (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Awards classified as equity: Restricted stock unit expense $ — $ 287 $ — $ 400 Stock option expense — — — — Awards classified as liability: Restricted stock unit expense 57 223 127 229 Total share-based compensation expense $ 57 $ 510 $ 127 $ 629

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consisted of the following: Estimated Life in Years June 30, December 31, (in thousands) Well servicing equipment 9-15 years $ 410,244 $ 413,543 Autos and trucks 5-10 years 130,749 126,994 Disposal wells 5-15 years 38,416 38,426 Building and improvements 5-30 years 14,107 14,107 Furniture and fixtures 3-15 years 6,646 6,573 Land 1,524 1,524 601,686 601,167 Accumulated depreciation (346,429 ) (324,138 ) $ 255,257 $ 277,029

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Long-term debt at June 30, 2016 and December 31, 2015 consisted of the following: June 30, December 31, (in thousands) 9% senior notes, net of deferred financing costs of $2.8 million and $3.3 million as of June 30, 2016 and December 31, 2015 respectively $ 277,194 $ 276,727 Revolving credit facility 15,000 15,000 Third party equipment notes and capital leases 5,001 7,133 Insurance notes 1,558 6,181 298,753 305,041 Less: Current portion (297,491 ) (25,243 ) $ 1,262 $ 279,798
Contractual Obligation, Fiscal Year Maturity Schedule	Following are required principal payments due on notes and capital leases (other than the 9% Senior Notes) existing as of June 30, 2016 : July - December 2016 2017 2018 2019 2020 and thereafter (in thousands) Notes and capital lease principal payments $ 1,935 $ 2,822 $ 244 $ — $ —

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Summary of the Carrying Amounts and Estimated Fair Values of Financial Instruments	June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) 9% Senior Notes $ 277,194 $ 116,422 $ 276,727 $ 130,062

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following tables represent related party transactions. As of June 30, December 31, 2015 (in thousands) Related parties cash and cash equivalents balances: Balance at Texas Champion Bank (1) $ 1,308 $ 1,132 Balance at Brush Country Bank (2) 429 485 Related parties payable: Dorsal Services, Inc. (3) 2 2 Tasco Tool Service Ltd. (4) — 2 Texas Quality Gate Guard Services, LLC (5) — 4 $ 2 $ 8 There were no related party receivables as of June 30, 2016 and December 31, 2015 . Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) Related parties capital expenditures: Alice Environmental Holdings, LLC (6) $ — $ — $ — $ 455 $ — $ — $ — $ 455 Related parties revenue activity: Dorsal Services, Inc. (3) $ — $ 6 $ — $ — Tasco Tool Service Ltd. (4) — 1 — 1 $ — $ 7 $ — $ 1 Related parties expense activity: Alice Environmental Services, LP/Alice Environmental Holdings, LLC (6) $ 264 $ 559 $ 561 $ 1,135 Dorsal Services, Inc. (3) 8 — — 19 Tasco Tool Service Ltd. (4) — 68 15 135 FCJ Management, LLC (7) — 5 — 14 Texas Quality Gate Guard Services, LLC (5) 19 61 65 114 Animas Holdings, LLC (8) 44 73 84 149 CJW Group, LLC (9) 9 10 19 19 $ 344 $ 776 $ 744 $ 1,585 Other payments to related parties: SB Factoring, LLC (10) $ 89 $ 443 $ 217 $ 1,413 $ 89 $ 443 $ 217 $ 1,413 (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) Tasco Tool Services, Ltd., or Tasco, is a down-hole tool company that is partially owned and managed by a company that is partially owned by Mr. Forbes. Tasco rents and sells tools to the Company from time to time. (5) 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. (6) 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 formerly leased 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. (7) FCJ Management, LLC, or FCJ, is an entity that leases land and facilities to the Company and is partially owned by Messrs. Crisp and Forbes. The lease with FCJ was terminated during the third quarter of 2015. (8) Animas Holdings, LLC, or Animas, is owned by the two sons of Mr. Crisp and three children of Mr. Forbes. Animas owns land and property that it leases to the Company. (9) CJW Group, LLC is an entity that leases office space to the Company and is partially owned by Messrs. Crisp and Forbes. (10) From time to time, vendors of the Company factor their receivables from the Company and direct that the Company make payment of such factored amounts directly to the applicable factor. One such factor to whom payments have been made by the Company is SB Factoring LLC which is owned in part by each of Mr. Crisp and Mr. Forbes. The nature of these transactions does not result in recording in the Company’s financial records any revenue, any expense or any receivable and does not result in any payable distinct in amount from the amount payable to such vendors as originally incurred.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Following are future lease payments on operating leases existing as of June 30, 2016 : July - December 2016 2017 2018 2019 2020 and thereafter (in thousands) Lease payments $ 2,051 $ 1,641 $ 817 $ 553 $ 4,140

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Six months ended June 30, 2016 2015 (in thousands) Cash paid for Interest $ 261 $ 13,089 Income tax — 60 Supplemental schedule of non-cash investing and financing activities Changes in accounts payable related to capital expenditures $ (1,450 ) $ 1,466 Capital leases on equipment — 562 Preferred stock dividends and accretion costs 21 21

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Reconciliation of Weighted Average and Diluted Weighted Average Shares Outstanding	The following table sets forth the reconciliation of weighted average shares outstanding and diluted weighted average shares outstanding: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands) (in thousands) Weighted average shares outstanding 22,214 21,987 22,213 21,948 Dilutive effect of stock options and restricted stock — — — — Dilutive effect of preferred stock — — — — Diluted weighted average shares outstanding 22,214 21,987 22,213 21,948
Computation of Basic and Diluted Earnings (Loss) Per Share	The following table sets forth the computation of basic and diluted loss per share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (in thousands, except per share amounts) Basic and diluted: Net loss $ (38,686 ) $ (8,748 ) $ (63,154 ) $ (13,182 ) Preferred stock dividends and accretion (194 ) (194 ) (388 ) (388 ) Net loss attributable to common shareholders $ (38,880 ) $ (8,942 ) $ (63,542 ) $ (13,570 ) Weighted-average common shares 22,214 21,987 22,213 21,948 Basic and diluted net loss per share $ (1.75 ) $ (0.41 ) $ (2.86 ) $ (0.62 )

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Financial Information with Respect to Reportable Segments	The following tables set forth certain financial information with respect to the Company’s reportable segments for the three and six months ended June 30, 2016 and June 30, 2015 : Three months ended June 30, Six months ended June 30, Well Servicing Fluid Logistics Consolidated Well Servicing Fluid Logistics Consolidated 2016 (in thousands) (in thousands) Operating revenues $ 16,796 $ 11,615 $ 28,411 $ 35,509 $ 24,833 $ 60,342 Direct operating costs 15,668 10,931 26,599 32,388 24,092 56,480 Segment operating profits $ 1,128 $ 684 $ 1,812 $ 3,121 $ 741 $ 3,862 Depreciation and amortization $ 6,927 $ 6,743 $ 13,670 $ 13,603 $ 13,556 $ 27,159 Loss on impairment of assets — 14,512 14,512 $ — 14,512 14,512 Capital expenditures (1) 720 2,437 3,157 913 3,874 4,787 Total assets 611,540 444,652 1,056,192 611,540 444,652 1,056,192 Long-lived assets 151,934 103,323 255,257 151,934 103,323 255,257 2015 Operating revenues $ 39,030 $ 23,780 $ 62,810 $ 90,216 $ 56,927 $ 147,143 Direct operating costs 29,236 17,876 47,112 65,610 42,036 107,646 Segment operating profits $ 9,794 $ 5,904 $ 15,698 $ 24,606 $ 14,891 $ 39,497 Depreciation and amortization $ 6,393 $ 7,366 $ 13,759 $ 12,934 $ 14,988 $ 27,922 Capital expenditures (1) 722 2,715 3,437 4,026 3,404 7,430 Total assets 653,685 478,252 1,131,937 653,685 478,252 1,131,937 Long-lived assets 178,373 123,198 301,571 178,373 123,198 301,571 (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 period end. Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Reconciliation of the Company Operating Loss As Reported: (in thousands) (in thousands) Segment operating profits $ 1,812 $ 15,698 $ 3,862 $ 39,497 General and administrative expense 5,420 8,797 11,476 18,077 Depreciation and amortization 13,670 13,759 27,159 27,922 Loss on impairment of assets 14,512 — 14,512 — Operating loss (31,790 ) (6,858 ) (49,285 ) (6,502 ) Other income and expenses, net (6,905 ) (6,771 ) (13,829 ) (13,636 ) Pre-tax loss $ (38,695 ) $ (13,629 ) $ (63,114 ) $ (20,138 ) June 30, 2016 December 31, 2015 Reconciliation of the Company Assets As Reported: (in thousands) Total reportable segments $ 1,056,192 $ 1,133,607 Elimination of internal transactions (1,869,305 ) (1,894,434 ) Parent 1,164,319 1,169,981 Total assets $ 351,206 $ 409,154

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($)	Jun. 15, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jul. 15, 2016	Dec. 31, 2015	Jun. 07, 2011
Debt Instrument [Line Items]
Net loss		$ 38,686,000	$ 8,748,000	$ 63,154,000	$ 13,182,000
Working capital (deficit)		(239,100,000)		(239,100,000)
Loss on impairment of assets		$ 14,512,000	$ 0	$ 14,512,000	$ 0
Nine Percent Senior Notes | Senior notes
Debt Instrument [Line Items]
Interest payment	$ 12,600,000
Debt instrument, stated interest rate	9.00%	9.00%		9.00%			9.00%	9.00%
Cure period (in days)	30 days
Forbearance agreement with debt holders, percent of principal	25.00%
Subsequent Event | Nine Percent Senior Notes | Senior notes
Debt Instrument [Line Items]
Percent of principal debt amount (at least)						62.10%
Cash on deposit (no less than)						$ 17,500,000

Intangible Assets (Narrative) (

Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 700	$ 700	$ 1,400	$ 1,400
Loss on impairment of assets	14,512	$ 0	14,512	$ 0
2,017	500		500
2,018	500		500
2,019	500		500
2,020	500		500
2,021	500		500
2,022	$ 500		$ 500

Intangible Assets (Intangible A

Intangible Assets (Intangible Assets by Major Asset Class) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Intangible Assets
Gross Carrying Value	$ 42,321	$ 42,321
Accumulated Amortization	(24,321)	(22,890)
Impairment	(14,512)	0
Net Book Value	$ 3,488	$ 19,431
Customer relationships
Intangible Assets
Useful Life (years)	15 years	15 years
Gross Carrying Value	$ 31,896	$ 31,896
Accumulated Amortization	(18,073)	(17,011)
Impairment	(13,823)	0
Net Book Value	$ 0	$ 14,885
Trade names
Intangible Assets
Useful Life (years)	15 years	15 years
Gross Carrying Value	$ 8,050	$ 8,050
Accumulated Amortization	(4,562)	(4,293)
Impairment	0	0
Net Book Value	3,488	3,757
Other
Intangible Assets
Gross Carrying Value	2,375	2,375
Accumulated Amortization	(1,686)	(1,586)
Impairment	(689)	0
Net Book Value	$ 0	$ 789
Minimum | Other
Intangible Assets
Useful Life (years)	10 years	10 years
Maximum | Other
Intangible Assets
Useful Life (years)	15 years	15 years

Share-Based Compensation (Stock

Share-Based Compensation (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, shares, beginning balance	614,125
Granted, shares	0
Exercised, shares	0
Forfeited/cancelled, shares	0
Options outstanding, shares, ending balance	614,125	614,125
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)	$ 6.80
Forfeited/cancelled, weighted average exercise price (in usd per share)	0
Options outstanding, weighted average exercise price, ending balance (in usd per share)	$ 6.80	$ 6.80
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, weighted average remaining contractual term (in years)	4 years 4 months 15 days	4 years 10 months 13 days
Options outstanding, aggregate intrinsic value	$ 0	$ 0
Forfeited, aggregate intrinsic value (in usd per share)	$ 0
Vested and expected to vest, 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 4 months 15 days
Vested and expected to vest, aggregate intrinsic value	$ 0
Exercisable, shares	614,125
Exercisable, weighted average exercise price (in usd per share)	$ 6.80
Exercisable, weighted average remaining contractual term (in years)	4 years 4 months 15 days
Exercisable, aggregate intrinsic value	$ 0

Share-Based Compensation (Narra

Share-Based Compensation (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	0
Stock-based compensation expense	$ 127,000	$ 629,000
Payment of tax withholding obligations related to restricted stock	$ 115,000	142,000
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants, shares	1,388,685
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	0
Capitalized share-based compensation expense	0	0
Unrecognized stock-based compensation costs, stock options	$ 0
Stock Options | 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	0
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 100,000	$ 600,000
Cumulative net shares issued to the participants, shares	4,500	259,041
Restricted stock, shares subject to netting for tax withholdings, vested shares	642,645	397,875
Number of shares settled in cash	360,658	0
Shares surrendered for payroll withholding tax, shares	277,487	138,834
Payment of tax withholding obligations related to restricted stock	$ 100,000	$ 100,000
Remaining compensation expense	$ 900,000
Average period compensation expense is recognized (in years)	2 years 2 months 1 day

Share-Based Compensation (Restr

Share-Based Compensation (Restricted Stock Units) (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Equity Based
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, shares, beginning balance	118,779
Granted, shares	0
Vested, shares	0
Forfeited, shares	0
Nonvested, shares, ending balance	118,779
Liability Based
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, shares, beginning balance	1,239,545
Granted, shares	0
Vested, shares	(642,645)
Forfeited, shares	0
Nonvested, shares, ending balance	596,900
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, shares, beginning balance	1,358,324
Granted, shares	0
Vested, shares	(642,645)
Forfeited, shares	0
Nonvested, shares, ending balance	715,679
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, weighted average exercise price, beginning balance (in usd per share) | $ / shares	$ 1.70
Granted, weighed average exercise price (in usd per share) | $ / shares	0
Vested, weighed average exercise price (in usd per share) | $ / shares	1.88
Forfeited, weighed average exercise price (in usd per share) | $ / shares	0
Nonvested, weighted average exercise price, ending balance (in usd per share) | $ / shares	$ 1.53

Share-Based Compensation (Equit

Share-Based Compensation (Equity and Liability Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity and liability stock-based compensation expense	$ 57	$ 510	$ 127	$ 629
Equity Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity and liability stock-based compensation expense	0	287	0	400
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity and liability stock-based compensation expense	0	0	0	0
Liability Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity and liability stock-based compensation expense	$ 57	$ 223	$ 127	$ 229

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Summary of Property and equipment
Property and equipment, gross	$ 601,686		$ 601,686		$ 601,167
Accumulated depreciation	(346,429)		(346,429)		(324,138)
Property and equipment, net	255,257		255,257		277,029
Depreciation expense	13,000	$ 13,100	25,800	$ 26,500
Well servicing equipment
Summary of Property and equipment
Property and equipment, gross	410,244		$ 410,244		$ 413,543
Well servicing equipment | Maximum
Summary of Property and equipment
Property and equipment, estimated life			15 years		15 years
Well servicing equipment | Minimum
Summary of Property and equipment
Property and equipment, estimated life			9 years		9 years
Autos and trucks
Summary of Property and equipment
Property and equipment, gross	130,749		$ 130,749		$ 126,994
Autos and trucks | Maximum
Summary of Property and equipment
Property and equipment, estimated life			10 years		10 years
Autos and trucks | Minimum
Summary of Property and equipment
Property and equipment, estimated life			5 years		5 years
Disposal wells
Summary of Property and equipment
Property and equipment, gross	38,416		$ 38,416		$ 38,426
Disposal wells | Maximum
Summary of Property and equipment
Property and equipment, estimated life			15 years		15 years
Disposal wells | Minimum
Summary of Property and equipment
Property and equipment, estimated life			5 years		5 years
Building and improvements
Summary of Property and equipment
Property and equipment, gross	14,107		$ 14,107		$ 14,107
Building and improvements | Maximum
Summary of Property and equipment
Property and equipment, estimated life			30 years		30 years
Building and improvements | Minimum
Summary of Property and equipment
Property and equipment, estimated life			5 years		5 years
Furniture and fixtures
Summary of Property and equipment
Property and equipment, gross	6,646		$ 6,646		$ 6,573
Furniture and fixtures | Maximum
Summary of Property and equipment
Property and equipment, estimated life			15 years		15 years
Furniture and fixtures | Minimum
Summary of Property and equipment
Property and equipment, estimated life			3 years		3 years
Land
Summary of Property and equipment
Property and equipment, gross	$ 1,524		$ 1,524		$ 1,524

Long-Term Debt (Long-Term Debt)

Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	$ 298,753	$ 305,041
Less: Current portion	(297,491)	(25,243)
Long-term debt and capital lease obligations, noncurrent	1,262	279,798
Senior notes | 9% senior notes, net of deferred financing costs of $2.8 million and $3.3 million as of June 30, 2016 and December 31, 2015 respectively
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	277,194	276,727
Deferred financing costs	2,800
Third party equipment notes and capital leases
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	5,001	7,133
Insurance notes
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	1,558	6,181
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	$ 15,000	$ 15,000

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details)	Jun. 15, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)installment	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Oct. 31, 2015	Jun. 07, 2011USD ($)
Debt Instrument [Line Items]
Non-Guarantor subsidiaries ownership percentage		100.00%		100.00%
Debt and capital lease obligations		$ 298,753,000		$ 298,753,000		$ 305,041,000
Senior notes | Nine Percent Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 280,000,000		$ 280,000,000				$ 280,000,000
Debt instrument, maturity date				Jun. 15, 2019
Debt instrument, stated interest rate	9.00%	9.00%		9.00%		9.00%		9.00%
Percentage of principal amount for debt repurchase post change in control		101.00%		101.00%
Percentage of principal amount, plus accrued and unpaid interest, following certain asset sales		100.00%		100.00%
Debt issuance costs		$ 2,800,000		$ 2,800,000
Debt and capital lease obligations		277,194,000		277,194,000		$ 276,727,000
Interest payment	$ 12,600,000
Insurance notes
Debt Instrument [Line Items]
Debt and capital lease obligations		1,558,000		1,558,000		6,181,000
Insurance notes | Insurance Notes
Debt Instrument [Line Items]
Debt instrument, stated interest rate							3.35%
Third party equipment notes and capital leases
Debt Instrument [Line Items]
Debt and capital lease obligations		5,001,000		5,001,000		7,133,000
Debt instrument, principal payments made		$ 1,100,000	$ 1,400,000	$ 0	$ 0
Minimum | Third party equipment notes and capital leases
Debt Instrument [Line Items]
Debt instrument, number of installments | installment				42
Debt instrument, effective interest rate		3.07%		3.07%
Maximum | Third party equipment notes and capital leases
Debt Instrument [Line Items]
Debt instrument, number of installments | installment				60
Debt instrument, effective interest rate		8.42%		8.42%
Accounting Standards Update 2015-03 | Senior notes | Nine Percent Senior Notes
Debt Instrument [Line Items]
Debt issuance costs						$ 3,300,000

Long-Term Debt (Revolving Credi

Long-Term Debt (Revolving Credit Facility) (Details) - USD ($)	Sep. 09, 2011	Jun. 30, 2016	Sep. 08, 2011
Line of Credit Facility [Line Items]
Revolving balance outstanding		$ 15,000,000
Letters of credit outstanding		$ 10,700,000
Number of consecutive days	60 days
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 75,000,000		$ 90,000,000
Percentage of consolidated tangible assets	18.00%	18.00%
18% of our consolidated tangible net assets		$ 62,600,000
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, borrowing availability		$ 49,300,000
Interest rate		2.50%
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	$ 11,250,000
Percentage of maximum credit under the facility	15.00%
Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, letter of credit, principal borrowing fees Percentage		2.25%
Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, letter of credit, principal borrowing fees Percentage		2.75%
LIBOR | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		LIBOR
LIBOR | Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		2.00%
LIBOR | Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		2.50%
Prime Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		prime rate
Prime Rate | Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Prime Rate | Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.50%
Overnight Federal Funds Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, description of 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, description of variable rate basis		LIBOR rate for a one-month period
Debt instrument, basis spread on variable rate		1.00%

Long-Term Debt (Forbearance Agr

Long-Term Debt (Forbearance Agreements) (Details) - Senior notes - Nine Percent Senior Notes - USD ($)	Jun. 15, 2016	Jul. 15, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 07, 2011
Debt Instrument [Line Items]
Interest payment	$ 12,600,000
Debt instrument, stated interest rate	9.00%		9.00%	9.00%	9.00%
Cure period (in days)	30 days
Forbearance agreement with debt holders, percent of principal	25.00%
Subsequent Event
Debt Instrument [Line Items]
Percent of principal debt amount (at least)		62.10%
Cash on deposit (no less than)		$ 17,500,000

Long-Term Debt (Capital Lease P

Long-Term Debt (Capital Lease Payment Schedule) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Debt Disclosure [Abstract]
2,016	$ 1,935
2,017	2,822
2,018	244
2,019	0
2020 and thereafter	$ 0

Fair Value of Financial Instr46

Fair Value of Financial Instruments (Details) - Senior notes - Nine Percent Senior Notes - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 15, 2016	Dec. 31, 2015	Jun. 07, 2011
Summary of the carrying amounts and estimated fair values of financial instruments
Debt instrument, stated interest rate	9.00%	9.00%	9.00%	9.00%
Carrying Amount
Summary of the carrying amounts and estimated fair values of financial instruments
9.0% Senior Notes	$ 277,194		$ 276,727
Fair Value
Summary of the carrying amounts and estimated fair values of financial instruments
9.0% Senior Notes	$ 116,422		$ 130,062

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Related parties payable:	$ 2,000		$ 2,000		$ 8,000
Related party transaction	2,000		2,000		8,000
Related party receivables	0		0		0
Related parties capital expenditures:	0	$ 0	0	$ 0
Related parties revenue activity:	0	0	0	0
Related parties expense activity:	344,000	776,000	744,000	1,585,000
Other payments to related parties:	89,000	443,000	217,000	1,413,000
Texas Champion Bank
Related Party Transaction [Line Items]
Related parties cash and cash equivalents balances:	1,308,000		1,308,000		1,132,000
Brush Country Bank
Related Party Transaction [Line Items]
Related parties cash and cash equivalents balances:	429,000		429,000		485,000
Dorsal Services
Related Party Transaction [Line Items]
Related parties payable:	2,000		2,000		2,000
Related parties revenue activity:	0	0	0	0
Related parties expense activity:	8,000	0	0	19,000
Tasco Tool Services
Related Party Transaction [Line Items]
Related parties payable:	0		0		2,000
Related parties revenue activity:	0	0	0	0
Related parties expense activity:	0	68,000	15,000	135,000
Texas Quality Gate Guard Services
Related Party Transaction [Line Items]
Related parties payable:	0		0		$ 4,000
Related parties expense activity:	19,000	61,000	65,000	114,000
Alice Environmental West Texas, LLC
Related Party Transaction [Line Items]
Related parties capital expenditures:	0	0	0	0
AES
Related Party Transaction [Line Items]
Related parties expense activity:	264,000	559,000	561,000	1,135,000
FCJ
Related Party Transaction [Line Items]
Related parties expense activity:	0	5,000	0	14,000
Animas Holdings
Related Party Transaction [Line Items]
Related parties expense activity:	44,000	73,000	84,000	149,000
CJW Group, LLC
Related Party Transaction [Line Items]
Related parties expense activity:	9,000	10,000	19,000	19,000
SB Factoring LLC
Related Party Transaction [Line Items]
Other payments to related parties:	$ 89,000	$ 443,000	$ 217,000	$ 1,413,000

Commitments and Contingencies48

Commitments and Contingencies (Narrative) (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)customer	Jun. 30, 2016USD ($)customer	Dec. 31, 2015USD ($)
Concentration Risk [Line Items]
FDIC insurance coverage per depositor	$ 250,000	$ 250,000
Gain Contingencies [Line Items]
Self insurance basic coverage		1,000,000
Limit excess policy		$ 10,000,000
Percentage of claims paid over threshold		25.00%
Threshold amount for additional premium payable percentage		$ 800,000
Letters of credit	10,700,000	10,700,000
Auto Liability
Gain Contingencies [Line Items]
Self insurance basic coverage		1,000,000
Workers' Compensation/Employers' Liability
Gain Contingencies [Line Items]
Self insurance basic coverage		1,000,000
General Liability
Gain Contingencies [Line Items]
Self insurance basic coverage		1,000,000
Employee Group Medical Plan
Gain Contingencies [Line Items]
Self insurance basic coverage		150,000
Self insurance reserve	$ 8,200,000	$ 8,200,000	$ 7,300,000
Customer concentration risk | Consolidated revenues | Largest customer
Concentration Risk [Line Items]
Concentration risk, percentage	18.10%	21.00%
Customer concentration risk | Consolidated revenues | Five largest customers
Concentration Risk [Line Items]
Concentration risk, percentage	62.80%	59.80%
Customer concentration risk | Consolidated revenues | Ten largest customers
Concentration Risk [Line Items]
Concentration risk, percentage	76.20%	76.10%
Customer concentration risk | Consolidated revenues | ConocoPhillips Company
Concentration Risk [Line Items]
Concentration risk, percentage	18.10%	21.00%
Customer concentration risk | Consolidated revenues | Anadarko Petroleum Corporation
Concentration Risk [Line Items]
Concentration risk, percentage	12.80%	10.80%
Customer concentration risk | Consolidated revenues | EOG Resources
Concentration Risk [Line Items]
Concentration risk, percentage	12.20%	11.30%
Customer concentration risk | Consolidated revenues | Chesapeake Energy
Concentration Risk [Line Items]
Concentration risk, percentage	11.20%
Customer concentration risk | Accounts receivable | Largest customer
Concentration Risk [Line Items]
Concentration risk, percentage		20.80%
Customer concentration risk | Accounts receivable | Five largest customers
Concentration Risk [Line Items]
Concentration risk, percentage		64.30%
Number of customers | customer	5	5
Customer concentration risk | Accounts receivable | Ten largest customers
Concentration Risk [Line Items]
Concentration risk, percentage		79.50%
Number of customers | customer	10	10
Customer concentration risk | Accounts receivable | ConocoPhillips Company
Concentration Risk [Line Items]
Concentration risk, percentage		20.80%
Customer concentration risk | Accounts receivable | Anadarko Petroleum Corporation
Concentration Risk [Line Items]
Concentration risk, percentage		10.20%
Customer concentration risk | Accounts receivable | Chesapeake Energy
Concentration Risk [Line Items]
Concentration risk, percentage		18.00%

Commitments and Contingencies49

Commitments and Contingencies (Operating Leases) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 2,051
2,017	1,641
2,018	817
2,019	553
2020 and thereafter	$ 4,140

Supplemental Cash Flow Inform50

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash paid for
Interest	$ 261	$ 13,089
Income tax	0	60
Supplemental schedule of non-cash investing and financing activities
Changes in accounts payable related to capital expenditures	(1,450)	1,466
Capital leases on equipment	0	562
Preferred stock dividends and accretion costs	$ 21	$ 21

Earnings per Share (Narrative)

Earnings per Share (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Stock options outstanding (in shares)	614,125	1,148,625	614,125	614,125
Series B Preferred Stock
Class of Stock [Line Items]
Convertible preferred shares outstanding (in shares)	588,059	588,059	588,059	588,000
Number of shares of common stock after conversion (in shares)	9		9
Total shares converted (in shares)	5,292,531		5,292,531
Percentage of cash dividend greater than cumulative basis			5.00%
Allocated earnings	$ 0	$ 0

Earnings per Share (Weighted an

Earnings per Share (Weighted and Diluted Weighted Average Number of Shares Outstanding Reconciliation) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average shares outstanding (in shares)	22,214	21,987	22,213	21,948
Dilutive effect of stock options and restricted stock (in shares)	0	0	0	0
Dilutive effect of preferred stock (in shares)	0	0	0	0
Diluted weighted average shares outstanding (in shares)	22,214	21,987	22,213	21,948

Earnings per Share (Antidilutiv

Earnings per Share (Antidilutive Securities) (Narrative) (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	614,125	1,148,625
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	715,679	383,628
Common stock equivalents underlying the Series B Preferred Stock outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,292,531	5,292,531

Earnings per Share (Computation

Earnings per Share (Computation of Basic and Diluted Earnings (Loss) per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted Average Number of Shares Outstanding, Basic and Diluted[Abstract]
Net loss	$ (38,686)	$ (8,748)	$ (63,154)	$ (13,182)
Preferred stock dividends and accretion	(194)	(194)	(388)	(388)
Net loss attributable to common shareholders	$ (38,880)	$ (8,942)	$ (63,542)	$ (13,570)
Weighted average shares outstanding (in shares)	22,214	21,987	22,213	21,948
Basic and diluted net loss per share (in usd per share)	$ (1.75)	$ (0.41)	$ (2.86)	$ (0.62)

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate, continuing operations	(0.06%)	34.50%
Pre-tax income (loss)	$ (63.1)	$ (20.1)
Federal statutory income tax rate	35.00%

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)workover_rigswabbing_rigcoiled_tubing_spreadwell_servicing_rig	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)workover_rigsegmentswabbing_rigcoiled_tubing_spreadwell_servicing_rig	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Number of well servicing rigs | well_servicing_rig	173		173
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, Operating Income (Loss) [Abstract]
Operating loss	$ (31,790)	$ (6,858)	$ (49,285)	$ (6,502)
Depreciation and amortization	13,670	13,759	27,159	27,922
Loss on impairment of assets	14,512	0	14,512	0
Total assets	351,206		351,206		$ 409,154
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract]
Operating loss	(31,790)	(6,858)	(49,285)	(6,502)
General and administrative expense	5,420	8,797	11,476	18,077
Depreciation and amortization	13,670	13,759	27,159	27,922
Other income and expenses, net	(6,905)	(6,771)	(13,829)	(13,636)
Pre-tax loss	(38,695)	(13,629)	(63,114)	(20,138)
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
Assets	351,206		351,206		409,154
Reportable segments
Segment Reporting Information, Operating Income (Loss) [Abstract]
Operating revenues	28,411	62,810	60,342	147,143
Direct operating costs	26,599	47,112	56,480	107,646
Operating loss	1,812	15,698	3,862	39,497
Depreciation and amortization	13,670	13,759	27,159	27,922
Loss on impairment of assets	14,512		14,512
Capital expenditures (1)	3,157	3,437	4,787	7,430
Total assets	1,056,192	1,131,937	1,056,192	1,131,937	1,133,607
Long lived assets	255,257	301,571	255,257	301,571
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract]
Operating loss	1,812	15,698	3,862	39,497
Depreciation and amortization	13,670	13,759	27,159	27,922
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
Assets	1,056,192	1,131,937	1,056,192	1,131,937	1,133,607
Reportable segments | Well Servicing
Segment Reporting Information, Operating Income (Loss) [Abstract]
Operating revenues	16,796	39,030	35,509	90,216
Direct operating costs	15,668	29,236	32,388	65,610
Operating loss	1,128	9,794	3,121	24,606
Depreciation and amortization	6,927	6,393	13,603	12,934
Loss on impairment of assets	0		0
Capital expenditures (1)	720	722	913	4,026
Total assets	611,540	653,685	611,540	653,685
Long lived assets	151,934	178,373	151,934	178,373
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract]
Operating loss	1,128	9,794	3,121	24,606
Depreciation and amortization	6,927	6,393	13,603	12,934
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
Assets	611,540	653,685	611,540	653,685
Reportable segments | Fluid Logistics
Segment Reporting Information, Operating Income (Loss) [Abstract]
Operating revenues	11,615	23,780	24,833	56,927
Direct operating costs	10,931	17,876	24,092	42,036
Operating loss	684	5,904	741	14,891
Depreciation and amortization	6,743	7,366	13,556	14,988
Loss on impairment of assets	14,512		14,512
Capital expenditures (1)	2,437	2,715	3,874	3,404
Total assets	444,652	478,252	444,652	478,252
Long lived assets	103,323	123,198	103,323	123,198
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract]
Operating loss	684	5,904	741	14,891
Depreciation and amortization	6,743	7,366	13,556	14,988
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
Assets	444,652	478,252	444,652	478,252
Segment reconciling items
Segment Reporting Information, Operating Income (Loss) [Abstract]
Depreciation and amortization	13,670	13,759	27,159	27,922
Loss on impairment of assets	14,512	0	14,512	0
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract]
General and administrative expense	5,420	8,797	11,476	18,077
Depreciation and amortization	13,670	$ 13,759	27,159	$ 27,922
Elimination of internal transactions
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total assets	(1,869,305)		(1,869,305)		(1,894,434)
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
Assets	(1,869,305)		(1,869,305)		(1,894,434)
Parent
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total assets	1,164,319		1,164,319		1,169,981
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract]
Assets	$ 1,164,319		$ 1,164,319		$ 1,169,981

Equity Securities (Narrative) (

Equity Securities (Narrative) (Details) $ / shares in Units, $ in Thousands	Sep. 01, 2010shares	May 28, 2010USD ($)shares	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	May 28, 2010CAD / shares
Class of Stock [Line Items]
Number of voting rights			1		1
Preferred stock dividends and accretion costs					$ 21	$ 21
Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock authorized (in shares) | shares			825,000		825,000
Preferred stock, par value (in usd per share) | $ / shares			$ 0.01		$ 0.01
Number of shares issued in private placement (shares) | shares		580,800
Private placement price per share (in cad per share) | CAD / shares								CAD 26.37
Private placement, aggregate purchase price		$ 14,500
Exchange rate between USD and CAD		1.0547
Private placement, net proceeds		$ 13,800
Closing fee		300
Legal fees and other costs		$ 400
Dividend in kind, shares | shares	7,259
Redemption amount if Series B preferred stock is redeemed			$ 14,700		$ 14,700		$ 14,700
Preferred stock dividend rate, percentage					5.00%
Period of failure to pay dividends					24 months
Preferred stock dividends and accretion costs			$ 200	$ 200	$ 200	$ 200