Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Forbes Energy Services Ltd. | ||
Entity Central Index Key | 1,434,842 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 22,214,855 | ||
Entity Public Float | $ 3.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 20,437,000 | $ 74,611,000 |
Restricted cash | 27,563,000 | 0 |
Accounts receivable - trade, net | 16,962,000 | 26,486,000 |
Accounts receivable - other | 290,000 | 1,216,000 |
Prepaid expenses | 7,957,000 | 8,386,000 |
Other current assets | 821,000 | 1,100,000 |
Total current assets | 74,030,000 | 111,799,000 |
Property and equipment, net | 233,362,000 | 277,029,000 |
Intangible assets, net | 3,220,000 | 19,431,000 |
Restricted cash | 0 | 51,300 |
Other assets | 2,269,000 | 844,000 |
Total assets | 312,881,000 | 409,154,000 |
Current liabilities | ||
Current portions of long-term debt | 298,932,000 | 25,243,000 |
Accounts payable - trade | 4,505,000 | 8,995,000 |
Accounts payable - related parties | 18,000 | 8,000 |
Accrued dividends | 0 | 61,000 |
Accrued interest payable | 26,578,000 | 1,401,000 |
Accrued expenses | 8,740,000 | 10,726,000 |
Total current liabilities | 338,773,000 | 46,434,000 |
Long-term debt, net of current portion | 240,000 | 279,798,000 |
Deferred tax liability | 1,096,000 | 899,000 |
Total liabilities | 340,109,000 | 327,131,000 |
Temporary equity | ||
Series B senior convertible preferred stock (redemption value of $15.6 million) | 15,298,000 | 14,644,000 |
Shareholders’ equity | ||
Common stock, $.04 par value, 112,500 shares authorized, 22,215 and 22,210 shares issued and outstanding at December 31, 2016 and 2015, respectively | 889,000 | 889,000 |
Additional paid-in capital | 193,477,000 | 194,253,000 |
Accumulated deficit | (236,892,000) | (127,763,000) |
Total shareholders’ equity (deficit) | (42,526,000) | 67,379,000 |
Total liabilities and shareholders’ equity (deficit) | $ 312,881,000 | $ 409,154,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Redemption value | $ 14.7 | $ 14.7 |
Common stock, par value (in usd per share) | $ 0.04 | $ 0.04 |
Common stock, shares authorized (in shares) | 112,500 | 112,500 |
Common stock, shares issued (in shares) | 22,000 | 22,000 |
Common stock, shares outstanding (in shares) | 22,000 | 22,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Well servicing | $ 70,921 | $ 150,949 | $ 285,338 |
Fluid logistics | 45,284 | 93,158 | 163,940 |
Total revenues | 116,205 | 244,107 | 449,278 |
Expenses | |||
Well servicing | 61,279 | 117,514 | 213,278 |
Fluid logistics | 42,744 | 74,905 | 127,775 |
General and administrative | 18,832 | 31,591 | 36,428 |
Depreciation and amortization | 52,374 | 55,034 | 54,959 |
Loss on impairment of assets | 14,537 | 0 | 0 |
Reorganization costs | 7,548 | 0 | 0 |
Total expenses | 197,314 | 279,044 | 432,440 |
Operating (loss) income | (81,109) | (34,937) | 16,838 |
Other income (expense) | |||
Interest income | 31 | 211 | 9 |
Interest expense | (27,879) | (27,962) | (28,228) |
Pre-tax loss | (108,957) | (62,688) | (11,381) |
Income tax expense (benefit) | 172 | (16,614) | (3,060) |
Net loss | (109,129) | (46,074) | (8,321) |
Preferred stock dividends | (776) | (776) | (776) |
Net loss attributable to common shareholders | $ (109,905) | $ (46,850) | $ (9,097) |
Loss per share of common stock | |||
Basic and diluted (in usd per share) | $ (4.95) | $ (2.12) | $ (0.42) |
Weighted average number of shares of common stock outstanding | |||
Basic and diluted (in shares) | 22,214 | 22,071 | 21,749 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2013 | $ 121,018 | $ 14,560 | $ 859 | $ 193,527 | $ (73,368) |
Beginning balance (in shares) at Dec. 31, 2013 | 588 | 21,474 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 1,324 | 1,324 | |||
Net loss | (8,321) | (8,321) | |||
Issuance of restricted stock | 644 | $ 15 | 629 | ||
Issuance of restricted stock (in shares) | 371 | ||||
Preferred stock dividends and accretion | (776) | $ 42 | (776) | ||
Ending balance at Dec. 31, 2014 | 113,889 | $ 14,602 | $ 874 | 194,704 | (81,689) |
Ending balance (in shares) at Dec. 31, 2014 | 588 | 21,845 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (46,074) | (46,074) | |||
Issuance of restricted stock | 340 | $ 15 | 325 | ||
Issuance of restricted stock (in shares) | 365 | ||||
Preferred stock dividends and accretion | (776) | $ 42 | (776) | ||
Ending balance at Dec. 31, 2015 | 67,379 | $ 14,644 | $ 889 | 194,253 | (127,763) |
Ending balance (in shares) at Dec. 31, 2015 | 588 | 22,210 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (109,129) | (109,129) | |||
Issuance of restricted stock | $ 5 | ||||
Preferred stock dividends and accretion | (776) | $ 654 | (776) | ||
Ending balance at Dec. 31, 2016 | $ (42,526) | $ 15,298 | $ 889 | $ 193,477 | $ (236,892) |
Ending balance (in shares) at Dec. 31, 2016 | 588 | 22,215 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (109,129) | $ (46,074) | $ (8,321) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation expense | 50,675 | 52,173 | 52,098 |
Amortization expense | 1,699 | 2,861 | 2,861 |
Share-based compensation | (298) | 442 | 3,264 |
Deferred tax expense (benefit) | 197 | (16,754) | (3,957) |
Gain on disposal of assets, net | (449) | (705) | (684) |
Loss on impairment of assets | 14,537 | 0 | 0 |
Bad debt expense | 2,230 | 1,409 | 967 |
Amortization of deferred financing cost | 1,260 | 1,455 | 1,807 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 8,220 | 54,989 | (2,296) |
Accounts receivable - related parties | 0 | 342 | (157) |
Prepaid expenses and other assets | (2,099) | 3,320 | 4,225 |
Accounts payable - trade | (4,274) | (8,679) | (5,514) |
Accounts payable - related parties | 10 | (178) | (373) |
Dividends payable | (61) | 0 | 0 |
Accrued expenses | (1,613) | (8,056) | 3,327 |
Accrued interest payable | 25,177 | 37 | (3) |
Net cash (used in) provided by operating activities | (13,918) | 36,582 | 47,244 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (8,917) | (9,568) | (37,877) |
Proceeds from sale of property and equipment | 2,142 | 1,554 | 5,431 |
Insurance proceeds | 0 | 1,262 | 0 |
Restricted cash | 0 | 1,330 | (1) |
Net cash used in investing activities | (6,775) | (5,422) | (32,447) |
Cash flows from financing activities: | |||
Restricted cash | (27,512) | 0 | 0 |
Borrowings on debt | 0 | 15,000 | 0 |
Repayments of debt | (5,722) | (5,564) | (5,083) |
Dividends paid on Series B Senior Convertible Preferred Stock | (123) | (735) | (735) |
Payments of tax withholding obligations related to restricted stock | (124) | (168) | (470) |
Net cash (used in) provided by financing activities | (33,481) | 8,533 | (6,288) |
Net (decrease) increase in cash and cash equivalents | (54,174) | 39,693 | 8,509 |
Cash and cash equivalents: | |||
Beginning of year | 74,611 | 34,918 | 26,409 |
End of year | $ 20,437 | $ 74,611 | $ 34,918 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 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 well site services to oil and natural gas drilling and producing companies to help develop and enhance the production of oil and natural gas. These services include fluid hauling, fluid disposal, well maintenance, completion services, workovers and recompletions, plugging and abandonment, and tubing testing. The Company's operations are concentrated in the major onshore oil and natural gas producing regions of Texas, with an additional location in Pennsylvania. The Company believes that its broad range of services, which extends from initial drilling, through production, to eventual abandonment, is fundamental to establishing and maintaining the flow of oil and natural gas throughout the life cycle of our customers’ wells. The Company's headquarters and executive offices are located at 3000 South Business Highway 281, Alice, Texas 78332. The Company can be reached at (361) 664-0549. As used in these consolidated financial statements, the “Company” and the “Forbes Group” mean FES Ltd. and its subsidiaries, except as otherwise indicated. |
Chapter 11 Proceedings
Chapter 11 Proceedings | 12 Months Ended |
Dec. 31, 2016 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | Chapter 11 Proceedings On January 22, 2017, FES Ltd., Forbes Energy Services LLC, or FES, C.C. Forbes, LLC, or CCF, TX Energy Services, LLC, or TES, and Forbes Energy International, LLC, FEI, or, collectively, the Debtors, filed voluntary petitions, or the Petitions, for reorganization under chapter 11 of the United States Bankruptcy Code, or the Bankruptcy Code, in the Bankruptcy Court pursuant to the terms of a Restructuring Support Agreement (as defined below) that contemplates the reorganization of the Debtors pursuant to the Debtors' prepackaged plan of reorganization, or the Plan. The Debtors will continue to operate their businesses as “debtors in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The Bankruptcy Court granted all first day motions filed by the Debtors allowing the Debtors to operate their businesses in the ordinary course throughout the pendency of the chapter 11 cases. The first day motions included, among other things, a cash collateral motion, a motion maintaining the Company's existing cash management system and motions permitting certain vendor payments, wage payments and tax payments in the ordinary course of business. Subject to certain exceptions under the Bankruptcy Code, the chapter 11 cases automatically stayed most judicial or administrative actions against the Debtors or their property to recover, collect, or secure a prepetition claim. This prohibits, for example, the Company’s lenders or note holders from pursuing claims for defaults under its debt agreements during the pendency of the chapter 11 cases. On March 29, 2017, the Bankruptcy Court entered an order confirming the Plan. The Company expects the consummation of the Plan to become effective on or about April 13, 2017; however, there can be no assurance that the effectiveness of the Plan will occur on such date, or at all. Restructuring Support Agreement Prior to filing the Petitions, on December 21, 2016, the Debtors entered into a restructuring support agreement, or the Restructuring Support Agreement, with certain holders, or the Supporting Noteholders, of FES Ltd.’s 9% senior unsecured notes due 2019, or the 9% Senior Notes, representing an aggregate of approximately 65.4% in principal amount of the 9% Senior Notes. The Restructuring Support Agreement contemplates the financial reorganization of the Debtors, or the Reorganization, pursuant to the Plan. Pursuant to the Restructuring Support Agreement, the Supporting Noteholders agreed to, among other things, support the Reorganization pursuant to the terms of the Plan. On December 22, 2016, the Debtors commenced a solicitation of votes to accept or reject the Plan from the holders of the 9% Senior Notes. Holders of approximately 87.14% in principal amount of the 9% Senior Notes voted in favor of the Plan. Of the holders of the 9% Senior Notes that voted to accept or reject the Plan, 93.75% of such holders voted to accept the Plan, which represents 99.46% in principal amount of the 9% Senior Notes held by such holders. The Plan The Plan, which is subject to approval of the Bankruptcy Court, anticipates that, among other things, on the effective date of the Plan: • All existing Equity Interests (as defined in the Plan and which include FES Ltd.’s common stock, FES Ltd.’s preferred stock, awards under our 2012 Incentive Compensation Plan, or the Compensation Plan, and the preferred stock purchase rights under the Rights Agreement dated as of May 19, 2008 and subsequently amended on July 8, 2013, or the Rights Agreement, between us and CIBC Mellon Trust Company, as rights agent) in FES Ltd. will be extinguished without recovery; • The 9% Senior Notes will be canceled and each holder of the 9% Senior Notes will receive such holder’s pro rata share of (i) $20 million in cash and (ii) 100% of the new common stock of reorganized FES Ltd., subject to dilution only as a result of the shares of new common stock of reorganized FES Ltd. issued or available for issuance in connection with a proposed management incentive plan, or the Management Incentive Plan; • Certain holders of the 9% Senior Notes will make available to the reorganized Debtors a $50 million new first lien term loan facility, or the Exit Facility, which will be backstopped by certain Supporting Noteholders; • Reorganized FES Ltd. will adopt and implement the Management Incentive Plan, which will provide for the issuance of restricted stock units covering shares of common stock of reorganized FES Ltd. to the officers and other key employees of the reorganized Debtors in an amount up to 12.5% of the sum of (i) the number of shares of the common stock of reorganized FES Ltd. issued to the holders of the 9% Senior Notes and (ii) the number of shares of common stock of reorganized FES Ltd. issued or available for issuance under the Management Incentive Plan; • The Debtors’ loan and security agreement governing their revolving credit facility, or the Loan Agreement, dated as of September 9, 2011 and subsequently amended, with Regions Bank, or Regions, as the sole lender party thereto, or the Lender, will be terminated and a new letter of credit facility will be entered into with Regions, or the New Regions Facility, on the Plan’s effective date covering the letters of credit and Bank Product Obligations (as defined in the Loan Agreement) outstanding under the Loan Agreement; • The Lender, in full satisfaction and settlement of its claims against the Debtors, will receive, as applicable, (i) cash to satisfy all outstanding obligations with respect to the Revolving Advances (as defined in the Loan Agreement), including, without limitation, all outstanding Revolving Advances and all interest, fees, and other charges due and payable under the Loan Agreement relating to the Revolving Advances, and (ii) as to the Issuer and Bank Product Provider (as each term is defined in the Loan Agreement), continue to hold the cash pledged by the Debtors to collateralize all outstanding letters of credit and Bank Product Obligations under the Loan Agreement that will be covered by the New Regions Facility; and • Holders of allowed creditor claims, aside from holders of the 9% Senior Notes, will either receive, on account of such claims, payment in full in cash or otherwise have their rights reinstated under the Bankruptcy Code. Assuming implementation of the Plan, the Company expects that it will eliminate approximately $280.0 million in principal amount of the 9% Senior Notes plus accrued interest thereon. Defaults under Outstanding Debt Instruments FES Ltd.’s failure to make the semi-annual interest payments on the 9% Senior Notes on June 15, 2016 and December 31, 2016 or, collectively, the Missed Interest Payments, after the cure periods provided for in the indenture governing the 9% Senior Notes, or the Senior Indenture, other events of default resulting from technical breaches of covenants under the Senior Indenture and the Loan Agreement and the filing of the Petitions on January 22, 2017 or, collectively, the Debt Instrument Defaults, would have resulted in all outstanding indebtedness due under the Senior Indenture and the Loan Agreement immediately becoming due and payable. However, pursuant to (i) the forbearance agreement related to the Senior Indenture entered into July 15, 2016, as subsequently amended, or the Indenture Forbearance Agreement, by and among the Debtors and the Supporting Noteholders and (ii) the forbearance agreement related to the Loan Agreement entered into July 15, 2016, as subsequently amended and restated, or the Loan Forbearance Agreement, by and among the Debtors, Regions, as agent, and the Lender, the Supporting Noteholders, Regions and the Lender agreed to forbear from exercising default remedies or accelerating any indebtedness under their respective debt instrument resulting from the Debt Instrument Defaults while they worked with the Debtors to reach an agreement on the Reorganization. Additionally, any efforts to enforce such payment obligations were automatically stayed as a result of the filing of the Petitions, and the creditors' rights of enforcement in respect of the Senior Indenture and the Loan Agreement are subject to the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Going Concern The significant decline in oil and natural gas prices from the fourth quarter of 2014 through 2015 and 2016 resulted in reduced revenue and cash flows and negatively impacted the Company’s liquidity position. Additionally, the level of the Company’s indebtedness and the depressed oil and natural gas prices presented challenges related to the Company’s ability to comply with the covenants in the agreements governing its indebtedness. In order to address these issues, the Company worked with financial and legal advisors throughout 2016 and structured the Plan to address its liquidity and capital structure. In connection with the Company's restructuring efforts, the Debtors filed the Petitions seeking relief under the provisions of chapter 11 of the Bankruptcy Code. See Note 2 Chapter 11 Proceedings. On March 29, 2017, the Bankruptcy Court entered an order confirming the Plan. The Debtors expect the consummation of the Plan to become effective on or about April 13, 2017. On the effective date of the Plan, the Company expects that it will eliminate approximately $280.0 million in principal amount of Senior Notes, plus accrued interest thereon. While the Debtors expect the consummation of the Plan to become effective on or about April 13, 2017, there can be no assurance that the effectiveness of the Plan will occur on such date, or at all. The uncertainty surrounding the Debtors’ chapter 11 cases raises substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the date of these consolidated financial statements. As such, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result from the outcome of this uncertainty. |
Risk and Uncertainties
Risk and Uncertainties | 12 Months Ended |
Dec. 31, 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, the Company's revenue, profitability, cash flows and future rate of growth are substantially dependent on the Company's ability to (1) maintain adequate equipment utilization, (2) maintain adequate pricing for the services the Company provides, and (3) maintain a trained work force. Failure to do so could adversely affect the Company's financial position, results of operations, and cash flows. Because the Company's revenues are generated primarily from customers who are subject to the same factors generally impacting the oil and natural gas industry, its operations are also susceptible to market volatility resulting from economic, seasonal and cyclical, weather related, or other factors related to such industry. Changes in the level of operating and capital spending in the industry, decreases in oil and natural gas prices, or industry perception about future oil and natural gas prices could materially decrease the demand for the Company's services, adversely affecting its financial position, results of operations, and cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation with no material effect on the consolidated financial statements. Principles of Consolidation The Company’s consolidated financial statements include the accounts of FES Ltd. and all of its wholly owned, direct and indirect subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Revenue Recognition Well Servicing –Well servicing consists primarily of maintenance services, workover services, completion services, plugging and abandonment services, and tubing testing. The Company prices well servicing by the hour of service performed, or on occasion, bid/turnkey pricing. Fluid Logistics – Fluid logistics consists primarily of the sale, transportation, storage, and disposal of fluids used in drilling, production, and maintenance of oil and natural gas wells. The Company prices fluid logistics services by the job, by the hour, or by the quantities sold, disposed, or hauled. The Company recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists, and the price is fixed or determinable. Revenues are presented net of any sales taxes collected by the Company from its customers that are remitted to governmental authorities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are based on earned revenues. The Company provides an allowance for doubtful accounts, which is based on a review of outstanding receivables, historical collection information, and existing economic conditions. Provisions for doubtful accounts are recorded when it becomes evident that the customer will not be likely to make the required payments at either contractual due dates or in the future. The accounts are written off against the provision when it becomes evident that the account is not collectible. The following reflects changes in the Company's allowance for doubtful accounts: Balance as of January 1, 2014 $ 3,952 Provision 967 Bad debt write-off (880 ) Balance as of December 31, 2014 4,039 Provision 1,409 Bad debt write-off (3,644 ) Balance as of December 31, 2015 1,804 Provision 1,873 Bad debt write-off (2,320 ) Balance as of December 31, 2016 $ 1,357 Property and Equipment Property and equipment are recorded at cost. Improvements or betterments that extend the useful life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. The costs of assets retired or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts in the period of disposal. Gains or losses resulting from property disposals are credited or charged to operations. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Depreciation expense was $50.7 million , $52.2 million , and $52.1 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Impairment Long-lived assets consist of property and equipment and intangible assets. The Company makes judgments and estimates regarding the carrying value of these assets, including amounts to be capitalized, estimated useful lives, depreciation and amortization methods to be applied, and possible impairment. The Company evaluates its long-lived assets whenever events and changes in circumstances indicate the carrying amount of its net assets may not be recoverable due to various external or internal factors. When an indicator of possible impairment exists, the Company uses estimated future undiscounted cash flows to assess recoverability of its long-lived assets. These cash flow projections require the Company to make judgments regarding long-term forecasts of future revenue and costs related to the assets subject to review. These forecasts include assumptions related to the rates the Company bills its customers, equipment utilization, equipment additions, staffing levels, pay rates, and other expenses. These forecasts also require assumptions about demand for the Company's products and services, future market conditions, and technological developments. These assumptions considered the drop in oil and natural gas prices over the last two and one half years and projected future pricing trends. Impairment is indicated when future cash flows are less than the carrying amount of the assets. An impairment loss would be recorded in the period in which it is determined the carrying amount is not recoverable. The impairment loss is the amount by which the carrying amount exceeds the fair market value. During the second quarter of 2016, we determined that the continued decline in revenues and industry-wide slowdown related to oil prices was other than temporary and was an impairment indicator. Therefore, we assessed all of our long-lived assets for impairment, which resulted in the carrying amounts of long-lived assets associated with our fluid logistics segment in exceeding the recoverable amounts based upon the undiscounted cash flow analysis. As a result, we hired an independent consulting firm to measure the fair values of the long-lived assets associated with our 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. We did not experience any additional triggering events in the third or fourth quarters of 2016. Volatility in the oil and natural gas industry, which is driven by factors over which the Company has no control, could affect the fair market value of the Company's equipment fleet and cause the Company to conclude at a future date that additional impairment is evident and may trigger a write-down of the Company's assets for accounting purposes, which could have a material adverse impact on the Company's financial position and results of operations. Restricted Cash Restricted cash serves as collateral for loans and certain outstanding letters of credit and the Company's corporate credit card program. The Company had restricted cash balances of $27.6 million and $51.3 thousand at December 31, 2016 and 2015 , respectively. Intangible Assets The Company's major classes of intangible assets consisted of its customer relationships, trade names, safety training program and dispatch software in 2015. Due to the Company recording an impairment loss of $14.5 million in the second quarter of 2016, the Company's only remaining class of intangible assets at December 31, 2016, was its trade names. Deferred Financing Costs The Company amortizes deferred financing costs over the period of the agreement governing the 9% Senior Notes and the revolving credit facility on an effective interest basis, as a component of interest expense. Amortization of deferred financing costs was $1.3 million , $1.5 million , and $1.8 million for the years ended December 31, 2016, 2015, and 2014, respectively. As a result of the adoption of Accounting Standards Update ("ASU") 2015-03, “Simplifying the Presentation of Debt Issuance Costs” on January 1, 2016, the Company recorded debt issuance costs of $2.3 million and retrospectively 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 December 31, 2016 and December 31, 2015, respectively. Share-Based Compensation The Company measures share-based compensation cost as of the grant date based on the estimated fair value of the award less an estimated rate for pre-vesting forfeitures, and recognizes compensation expense on a straight-line basis over the vesting period. The Company classifies stock awards as either an equity award or a liability award. Equity classified awards are valued as of the grant date using market price. Liability classified awards are re-measured at fair value at the end of each reporting date until settled. Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in the period that includes the statutory enactment date. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records uncertain tax positions at their net recognizable amount, based on the amount that management deems is more likely than not to be sustained upon ultimate settlement with tax authorities. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense. The Company has not recognized any material uncertain tax positions for the years ended December 31, 2016 , 2015 , and 2014 . Earnings per Share (EPS) Basic EPS is calculated by dividing the net income (loss) attributable to common shareholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, restricted stock, and restricted stock units. Preferred stock may participate in undistributed earnings with common stock. Such securities are deemed to not be participating in losses if there is no obligation to fund such losses. The holders of the Company's Series B Senior Convertible Preferred Stock, or the Series B Preferred Stock, would be entitled to share in dividends, on an as-converted basis, if the holders of common stock were to receive dividends in excess of 5% of the then current common stock market price on a cumulative basis over the past twelve months, provided that the holders of the Series B Preferred Stock would only share in that portion of the dividend that exceeds 5% . The Series B Preferred Stock was not deemed to be participating since there were net losses for the years ended December 31, 2016 , 2015 , and 2014 . Fair Values of Financial Instruments Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 - Inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. • Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In valuing certain assets and liabilities, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. The carrying amounts of cash and cash equivalents, accounts receivable-trade, accounts receivable-other, accounts payable-trade, accounts payable-related parties, and insurance notes approximate fair value because of the short maturity of these instruments. The Company has assets measured and recorded at fair value on a non-recurring basis. These nonfinancial assets include property, plant and equipment and intangible assets for which fair value is calculated in connection with impairment testing. These fair value calculations incorporate a market and a cost approach and the inputs include projected revenue, costs, equipment utilization and other assumptions. Given the unobservable inputs, these fair value measurements are classified as Level 3. December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) 9% Senior Notes $ 277,662 $ 98,570 $ 276,727 $ 130,062 The fair value of the Company's 9% Senior Notes is based on dealer quoted market prices at December 31, 2016 and 2015 , and is considered Level 1 within the fair value hierarchy. Environmental The Company is subject to extensive federal, state, and local environmental laws and regulations. These laws, which are constantly changing, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the adverse environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. There were no material environmental liabilities for each of the years ended December 31, 2016 , 2015 , and 2014 . Recent Accounting Pronouncements In November 2016, Financial Accounting Standards Board, or the FASB, issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230), Restricted Cash," ("ASU 2016-18"). ASU 2016-18 provides guidance on the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. Restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The amendments of ASU 2016-18 should be applied using a retrospective transition method and are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company believes the adoption of this pronouncement will only change the presentation of the statement of cash flows for restricted cash. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case, the new standard would apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, 'Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which introduces a new impairment model for financial instruments that is based on expected credit losses rather than incurred credit losses. The new impairment model applies to most financial assets, including trade accounts receivable. The amendments in ASU 2016-13 are effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company will be evaluating the impact of adopting this pronouncement on its consolidated financial statements. In March 2016, the FASB issued ASU No. 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. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company has determined the adoption of this new pronouncement will not have a material impact on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which increases the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for operating leases with lease terms greater than 12 months. It also requires additional disclosures about leasing arrangements to help users of financial statements better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 becomes effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company plans to engage a third party to assist in evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” ("ASU 2014-09"), which provides guidance for revenue recognition and which supersedes nearly all existing revenue recognition guidance under ASU 2014-09. This ASU provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance permits two methods of transition upon adoption: full retrospective and modified retrospective. Under the full retrospective method, the standard would be applied to each prior reporting period presented. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB issued final revised guidance that defers the effective date of the revenue recognition standard to be for annual and interim periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company plans to engage a third party to assist in evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets The Company's major classes of intangible assets consisted of its customer relationships, trade names, safety training program and dispatch software in 2015. Due to the Company recording an impairment loss of $14.5 million in the second quarter of 2016, the Company's only remaining class of intangible assets at December 31, 2016 was its trade names. The Company expenses costs associated with extensions or renewals of intangible assets. There were no such extensions or renewals in the years ended December 31, 2016 , 2015 , or 2014 . Amortization expense is calculated using the straight-line method over the period indicated. Amortization expense for each of the years ended December 31, 2016 , 2015 , and 2014 was $1.7 million , $2.9 million , and $2.9 million , respectively. Estimated amortization expense is $0.5 million per year for each of the years 2017 through 2022. The following sets forth the identified intangible assets by major asset class: As of December 31, 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 (4,830 ) — 3,220 8,050 (4,293 ) — 3,757 Other 10-15 2,375 (1,686 ) (689 ) — 2,375 (1,586 ) — 789 $ 42,321 $ (24,589 ) $ (14,512 ) $ 3,220 $ 42,321 $ (22,890 ) $ — $ 19,431 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 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 during 2016 (as discussed in the Restricted Stock Units paragraph below), at December 31, 2016 , there were 1,785,543 shares available for future grants under the Compensation Plan. There were no stock option awards issued or granted under the Compensation Plan for the years ended December 31, 2016, 2015, and 2014. As discussed in Note 2, on the effective date of the Plan, all awards under the Compensation Plan will be extinguished without recovery. Stock Options The following table presents a summary of the Company’s stock option activity for the years ended December 31, 2016 and 2015 : Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2014 1,148,625 $ 7.94 5.44 years $ — Stock options: Granted — — Exercised — — Forfeited (534,500 ) 9.25 Options outstanding at December 31, 2015 614,125 $ 6.80 4.87 years $ — Stock options: Granted — — Exercised — — Forfeited (11,500 ) 7.86 Options outstanding at December 31, 2016 602,625 $ 6.78 3.90 years $ — Vested and expected to vest at December 31, 2016 602,625 $ 6.78 3.90 years $ — Exercisable at December 31, 2016 602,625 $ 6.78 3.90 years $ — During the years ended December 31, 2016 and 2015 , the Company recorded no stock-based compensation expense related to stock options due to all stock options being fully vested and expensed in previous years. During the year ended December 31, 2014 , the Company recorded total stock-based compensation expense related to stock options of $1.2 million . No stock-based compensation costs were capitalized in 2016 , 2015 , or 2014 . As of December 31, 2016 , there is no unrecognized cost for stock options. There were no stock options granted during the years ended December 31, 2016 and 2015 . Restricted Stock Units Restricted Stock Units granted to employees, executives, and directors range from immediately vesting to vesting over a period from one to five years. Unvested restricted stock units are forfeited upon termination of grantee's employment. The following table presents a summary of restricted stock unit activity for the years ended December 31, 2016 , 2015 and 2014 : Equity Based Liability Based Total Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2013 674,789 — 674,789 $ 3.49 Granted 199,254 262,273 461,527 3.85 Vested (498,821 ) — (498,821 ) 3.84 Forfeited — — — — Nonvested at December 31, 2014 375,222 262,273 637,495 $ 3.47 Granted 127,008 1,191,704 1,318,712 1.19 Vested (310,451 ) (214,432 ) (524,883 ) 2.33 Forfeited (73,000 ) — (73,000 ) 3.53 Nonvested at December 31, 2015 118,779 1,239,545 1,358,324 $ 1.70 Granted — — — — Vested (118,779 ) (523,866 ) (642,645 ) 1.88 Forfeited — — — — Nonvested at December 31, 2016 — 715,679 715,679 $ 1.53 There were 642,645 , 524,883 , and 498,821 shares vested for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Of the vested shares, 4,500 , 364,881 , and 371,459 shares were issued for the years ended December 31, 2016 , 2015 , and 2014 , respectively. There were 636,645 shares settled in cash for the year ended December 31, 2016 . There were no shares settled in cash for the years ended December 31, 2015 and 2014 , respectively. In the years ended December 31, 2016 , 2015 , and 2014 , participants utilized a net withholding exercise method, in which restricted stock units were surrendered to cover payroll withholding tax. There were 1,500 , 160,002 , and 127,362 shares surrendered for payroll withholding tax for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The total pretax cash outflow, as included in withholding tax payments in the Company's consolidated statements of cash flows, for these net withholding exercises was $0.1 million , $0.2 million , and $0.5 million , respectively. The following table summarizes the Company's equity and liability stock based compensation expense (in thousands): 2016 2015 2014 Restricted stock unit expense $ — $ 508 $ 1,253 Stock option expense — — 1,185 Performance based liability award expense associated with restricted stock units (298 ) (66 ) 826 Total stock-based compensation expense $ (298 ) $ 442 $ 3,264 The Plan, as described in Note 2 - Chapter 11 Proceedings, provides that all existing Equity Interests (as defined in the Plan and which include FES Ltd.’s common stock, FES Ltd.’s preferred stock, awards under the Compensation Plan and the preferred stock purchase rights under Rights Agreement) in FES Ltd. will be extinguished without recovery. In 2017, all restricted stock units were canceled. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment at December 31, 2016 and 2015 consisted of the following: Estimated Life in Years December 31, 2016 2015 (in thousands) Well servicing equipment 9-15 years $ 411,199 $ 413,543 Autos and trucks 5-10 years 126,580 126,994 Disposal wells 5-15 years 37,752 38,426 Building and improvements 5-30 years 14,125 14,107 Furniture and fixtures 3-15 years 6,779 6,573 Land 1,524 1,524 597,959 601,167 Accumulated depreciation (364,597 ) (324,138 ) $ 233,362 $ 277,029 The Company is obligated under various capital leases for certain vehicles and equipment that expire at various dates during the next five years. The gross amount of property and equipment and related accumulated depreciation recorded under capital leases and included above consists of the following: December 31, 2016 2015 (in thousands) Well servicing equipment $ 13,696 $ 15,215 Autos and trucks 12,706 15,181 26,402 30,396 Accumulated depreciation (15,146 ) (14,219 ) $ 11,256 $ 16,177 Depreciation of assets held under capital leases of approximately $0.9 million , $3.4 million , and $4.6 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, is included in depreciation and amortization expense in the consolidated statements of operations. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accrued expenses and accounts payable – trade at December 31, 2016 and 2015 , consisted of the following: December 31, 2016 2015 (in thousands) Accrued wages $ 601 $ 2,264 Accrued insurance 7,193 7,266 Other accrued expenses 946 1,196 Total accrued expenses $ 8,740 $ 10,726 Accounts payable - vendor financings $ 26 $ 242 Accounts payable - other 4,479 8,753 Total accounts payable - trade $ 4,505 $ 8,995 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Debt at December 31, 2016 and 2015 , consisted of the following: December 31, 2016 2015 (in thousands) 9% Senior Notes, net of deferred financing costs of $2,338 and $3,273 as of December 31, 2016 and 2015, respectively $ 277,662 $ 276,727 Revolving credit facility 15,000 15,000 Third party equipment notes and capital leases 1,386 7,133 Insurance notes 5,124 6,181 299,172 305,041 Less: Current portion (298,932 ) $ (25,243 ) $ 240 $ 279,798 Aggregate maturities of long-term debt, excluding deferred financing costs, as of December 31, 2016 are as follows (in thousands): 2017 301,270 2018 240 2019 — 2020 — Total $ 301,510 9% Senior Notes On June 7, 2011, FES Ltd. issued $280.0 million in principal amount of 9% Senior Notes. The 9% Senior Notes mature on June 15, 2019 , and require semi-annual interest payments, in arrears, at an annual rate of 9% on June 15 and December 15 of each year, until maturity. Pursuant to the indenture governing the 9% Senior Notes, or the Senior Indenture, no principal payments are scheduled until maturity. The 9% Senior Notes are guaranteed by FES LLC, CCF, TES, and FEI LLC, or collectively, the Guarantor Subs. 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 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 Senior Indenture. FES Ltd. has no independent assets or operations. There are no significant restrictions on FES Ltd.’s ability or the ability of any Guarantor Sub to obtain funds from its subsidiaries by means of a dividend or loan. FES Ltd. may, at its option, redeem all or part of the 9% Senior Notes from time to time at specified redemption prices and subject to certain conditions required by the Senior Indenture. FES Ltd. 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. FES Ltd. is required to make an offer to purchase 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. Prior to the Debt Instrument Defaults, as discussed below, the Company was permitted under the terms of the Senior Indenture to incur additional indebtedness in the future, provided that certain financial conditions set forth in the Senior Indenture are satisfied. The Company is subject to certain covenants contained in the Senior Indenture, including provisions that limit or restrict FES Ltd.'s and certain future subsidiaries’ abilities to incur additional debt, to create, incur, or permit to exist certain liens on assets, to make certain dispositions of assets, to make payments on certain subordinated indebtedness, to pay dividends or certain other payments to FES Ltd.'s equity holders, to engage in mergers, consolidations or other fundamental changes, to change the nature of its business, or to engage in transactions with affiliates. Due to cross-default provisions in the Senior Indenture and the Loan Agreement, 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 the Company's outstanding debt under its debt agreements becoming immediately due and payable. If this occurred, the Company might not be able to obtain waivers or secure alternative financing to satisfy all of its obligations simultaneously, which would adversely affect its business and operations. Details of two of the more significant restrictive covenants in the Senior Indenture are set forth below: • Limitation on the Incurrence of Additional Debt - In addition to certain indebtedness defined in the Senior Indenture as "Permitted Debt," which includes indebtedness under any credit facility not to exceed the greater of $75.0 million or 18% of the Company's Consolidated Tangible Assets (as defined in the Senior Indenture), the Company may only incur additional debt if the Fixed Charge Coverage Ratio (as defined in the Senior Indenture) for the most recently completed four full fiscal quarters is at least 2.0 to 1.0. • Limitation on Restricted Payments - Subject to certain limited exceptions, including specific permission to pay cash dividends on the Series B Preferred Stock up to $260,000 per quarter, the Company is prohibited from (i) declaring or paying dividends or other distributions on its equity securities (other than dividends or distributions payable in equity securities), (ii) purchasing or redeeming any of the Company's equity securities, (iii) making any payment on indebtedness contractually subordinated to the 9% Senior Notes, except a payment of interest or principal at the stated maturity thereof, or (iv) making any investment defined as a "Restricted Investment," unless, at the time of and after giving effect to such payment, the Company is not in default and the Company is able to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio (as defined in the Senior Indenture). Further, the amount of such payment plus all other such payments made by the Company since the issuance of the 9% Senior Notes must be less than the aggregate of (a) 50% of Consolidated Net Income (as defined in the Senior Indenture) since the April 1, 2011 (or 100% , if such figure is a deficit), (b) 100% of the aggregate net cash proceeds from equity offerings since the issuance of the 9% Senior Notes, (c) if any Restricted Investments have been sold for cash, the proceeds from such sale (or the original cash investment if that amount is lower); and (d) 50% of any dividends received by the Company. The Company experienced the Debt Instrument Defaults under the Senior Indenture which would have resulted in all outstanding indebtedness due under the Senior Indenture immediately due and payable. However, pursuant to the Indenture Forbearance Agreement, the Supporting Noteholders agreed to forbear from exercising default remedies or accelerating any indebtedness under the Senior Indenture resulting from the Debts Instrument Defaults while they worked with the Debtors to reach an agreement on the Reorganization. Additionally, as discussed above, any efforts to enforce such payment obligations were automatically stayed as a result of the filing of the Petitions, and the creditors' rights of enforcement in respect of the Senior Indenture are subject to the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Moreover, on March 29, 2017, the Bankruptcy Court entered an order confirming the Plan and the Debtors expect the consummation of the Plan to become effective on or about April 13, 2017. On the effective date of the Plan, the 9% Senior Notes will be canceled and each holder of the 9% Senior Notes will receive such holder’s pro rata share of (i) $20 million in cash and (ii) 100% of the new common stock of reorganized FES Ltd., subject to dilution only as a result of the shares of new common of reorganized FES Ltd. issued or available for issuance in connection with the Management Incentive Plan. The amounts outstanding under the Senior Indenture are classified as current in the consolidated balance sheet for December 31, 2016 . Revolving Credit Facility On September 9, 2011, the Company entered into the Loan Agreement. Prior to the Loan Forbearance Agreement, the Loan Agreement provided for an asset based revolving credit facility with a maximum borrowing credit of $90.0 million , subject to borrowing base availability, any reserves established by the facility agent in its discretion, compliance with a fixed charge coverage ratio covenant if availability under the facility falls below certain thresholds and, for borrowings above $75.0 million , compliance with the debt incurrence covenant in the Senior Indenture that prohibits the incurrence of debt except for certain limited exceptions, including indebtedness incurred under the permitted credit facility debt basket to the greater of $75.0 million or 18% of the Company's Consolidated Tangible Assets (as defined in the Senior Indenture) reported for the last fiscal quarter for which financial statements are available. As of December 31, 2016 , 18% of the Company's Consolidated Tangible Assets was approximately $55.7 million . If the Company's availability under the credit facility dropped below 15% of our total borrowing credit (as described above), it is required to maintain a trailing four-quarter fixed charge coverage ratio of at least 1.1 to 1. Prior to the Loan Forbearance Agreement, under the Loan Agreement, the Company's borrowing base at any time was 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, the Company's 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. Subsequent to entering into and pursuant to the Loan Forbearance Agreement, the maximum borrowing credit under the Loan Agreement was reduced from $90 million to $30 million and the Lender is no longer obligated to make further advances under the Loan Agreement. Accordingly, as of December 31, 2016 , the borrowing base was $30.0 million . Furthermore, the Company's and borrowing availability under the Loan Agreement at December 31, 2016, was and remains uncertain because the Lender was and is not obligated to make any advances under the Loan Agreement. 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 December 31, 2016 , the facility had a revolving loan balance outstanding of $15.0 million and $9.0 million in letters of credit outstanding against the facility. Borrowings bear interest at a rate equal to either (a) the LIBOR rate plus an applicable margin of between 2.00% to 2.50% based on borrowing availability or (b) a base rate plus an applicable margin of between 1.00% to 1.50% based on borrowing availability, where the base rate is equal to the greater of the prime rate established by Regions Bank, the overnight federal funds rate plus 0.5% or the LIBOR rate for a one month period plus 1% . As a result of Debt Instrument Defaults that gave rise to the Loan Forbearance Agreement, the Company's effective interest rate as of December 31, 2016 was 4.75% , plus a 2.0% default rate. In addition to paying interest on outstanding principal under the facility, a fee of 0.375% per annum will accrue on unutilized availability under the credit facility. The Company is required to pay a fee of between 2.25% to 2.75% , based on borrowing availability, with respect to the principal amount of any letters of credit outstanding under the facility. The Company is also responsible for certain other administrative fees and expenses. FES LLC, FEI LLC, TES, and CCF are the named borrowers under the loan and security agreement. Their obligations have been guaranteed by one another and by 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 the Company's assets. 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, reports 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 the Company's excess availability under the credit facility falls below the greater of $11.3 million or 15.0% of the Company's maximum credit under the facility for 60 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. 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 mentioned above, the Company experienced the Debt Instrument Defaults under the Senior Indenture and Loan Agreement. The Debt Instrument Defaults under the Senior Indenture and the Loan Agreement would have resulted in all outstanding indebtedness due under the Senior Indenture and the Loan Agreement becoming immediately due and payable. However, pursuant to the Indenture Forbearance Agreement and the Loan Forbearance Agreement, the Supporting Noteholders, Regions and the Lender agreed to forbear from exercising default remedies or accelerating any indebtedness under their respective debt instrument resulting from the Debt Instrument Defaults while they worked with the Debtors to reach an agreement on the Reorganization. Additionally, as discussed above, any efforts to enforce such payment obligations were automatically stayed as a result of the filing of the Petitions, and the creditors' rights of enforcement in respect of the Senior Indenture and the Loan Agreement are subject to the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Moreover, on March 29, 2017, the Bankruptcy Court entered an order confirming the Plan and the Debtors expect the consummation of the Plan to become effective on or about April 13, 2017. On the effective date of the Plan, the Loan Agreement will be terminated and the New Regions Facility will be entered into covering the outstanding letters of credit and Bank Product Obligations (as defined in the Loan Agreement) under the Loan Agreement and Regions, as sole new Lender, in full satisfaction and settlement of its claims against the Debtors, will (i) receive cash to satisfy all outstanding obligations with respect to the Revolving Advances (as defined in the Loan Agreement), including, without limitation, all outstanding Revolving Advances and all interest, fees, and other charges due and payable under the Loan Agreement relating to the Revolving Advances, and (ii) as to the Issuer and Bank Product Provider (as each term is defined in the Loan Agreement), continue to hold the cash pledged by Debtors to collateralize all outstanding letters of credit and Bank Product Obligations under the Loan Agreement that will be covered by the New Regions Facility. As of December 31, 2016, the Revolving Advances consisted of a $15.0 million advance against the credit facility, Bank Product Obligations consisted of $0.5 million for the Company's corporate credit card program, and we had $9.0 million in outstanding letters of credit. The amounts outstanding under the Loan Agreement are classified as current in the consolidated balance sheet as of December 31, 2016 . Third Party Equipment Notes and Capital Leases The Company financed the purchase of certain vehicles and equipment through commercial loans and capital leases with aggregate principal amounts outstanding as of December 31, 2016 and 2015 of approximately $1.4 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 January 2017 to July 2018. Interest accrues at rates ranging from 3.07% to 8.42% and is payable monthly. The loans are collateralized by equipment purchased with the proceeds of such loans. The Company paid total principal payments of approximately $5.7 million , $5.6 million , and $5.1 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Following are required principal payments due on third party equipment notes and capital leases (other than the 9% Senior Notes and revolving credit facility) existing as of December 31, 2016 : 2017 2018 2019 2020 2021 and thereafter (in thousands) Third party equipment notes and capital lease principal payments $ 1,145 $ 240 $ — $ — $ — Management currently acquires 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 12 - Commitments and Contingencies. Insurance Notes During 2016 and 2015, the Company entered into promissory notes for the payment of insurance premiums at interest rates of 2.87% and 3.35% respectively, with an aggregate principal amount outstanding as of December 31, 2016 and 2015, of approximately $5.1 million and $6.2 million , respectively. The amount outstanding could be substantially offset by the cancellation of the related insurance coverage which is classified in prepaid insurance. These notes are or were payable in twelve monthly installments with maturity dates of October 15, 2017 and October 15, 2016 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 summarizes the related party transactions. As of December 31, 2016 2015 (in thousands) Related parties cash and cash equivalents balances: Balance at Texas Champion Bank (1) $ 295 $ 1,132 Balance at Brush Country Bank (2) — 485 $ 295 $ 1,617 Related parties payable: Dorsal Services, Inc. (3) $ — $ 2 Tasco Tool Services, Inc. (4) — 2 Texas Quality Gate Guard Services, LLC (5) 18 4 $ 18 $ 8 Years ended December, 31 2016 2015 2014 (in thousands) Related parties capital expenditures: Tasco Tool Services, Inc. (4) $ — $ — $ 16 JITSU Services, LLC (6) — — 240 $ — $ — $ 256 Related parties revenue activity: Tasco Tool Services, Inc. (4) $ — $ 1 $ 2 Wolverine Construction, Inc. (7) — — 249 Texas Water Disposal, LLC (8) — — 12 $ — $ 1 $ 263 Related parties expense activity: Alice Environmental Services, LP/Alice Environmental Holdings, LLC (9) $ 1,012 $ 1,889 $ 1,861 Dorsal Services, Inc. (3) 13 20 371 Tasco Tool Services, Inc. (4) 36 172 224 FCJ Management, LLC (10) — 15 27 JITSU Services, LLC (6) — — 243 Texas Quality Gate Guard Services, LLC (5) 200 188 214 Animas Holdings, LLC (11) 172 225 265 CJW Group, LLC (12) 38 38 13 $ 1,471 $ 2,547 $ 3,218 Other payments to related parties: SB Factoring, LLC (13) $ 402 $ 1,900 $ 3,863 $ 402 $ 1,900 $ 3,863 There were no related party receivables as of December, 2016 and December 31, 2015. (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, Inc., 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) JITSU Services, LLC, or JITSU, is a financial leasing company owned by Janet Forbes, or Ms. Forbes, and Mr. Crisp. The Company previously leased ten vacuum trucks from JITSU. This lease was terminated in November 2014. Ms. Forbes served as a Company director until June 11, 2014. (7) Wolverine Construction, Inc., or Wolverine, is an entity that was owned by two sons and a brother of Mr. Crisp, and a son of Mr. Forbes. Wolverine provided construction and site preparation services to certain customers of the Company. The related party interests in Wolverine were sold in 2014. (8) Texas Water Disposal Services, LLC, or TWDS, is partially owned by a brother of Mr. Crisp. TWDS is a company that owns a salt water disposal well that was used by the Company. The Company has not done business with TWDS since March 2014. (9) 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, Alice Environmental West Texas, LLC, or AEWT and AEH Operating, LLC. The Company leases or rents land and buildings, and aircraft from AES. During January 2015, the Company purchased land from AEWT for an additional operating location. The aircraft leases were terminated during the third quarter of 2015. (10) 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. (11) Animas Holdings, LLC, or Animas, is owned by the two sons of Mr. Crisp and three children of Mr. and Ms. Forbes. Animas owns land and property that it leases to the Company. (12) CJW Group, LLC is an entity that leases office space to the Company and is partially owned by Messrs. Crisp and Forbes. (13) 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 | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Concentrations of Credit Risk Financial instruments which subject the Company to credit risk consist primarily of cash balances maintained in excess of federal depository insurance limits and trade receivables. Insurance coverage is currently $250,000 per depositor at each financial institution, and the Company's non-interest bearing cash balances exceeded federally insured limits. The Company restricts investment of temporary cash investments to financial institutions with high credit standings. The Company’s customer base consists primarily of multi-national and independent oil and natural gas producers. The Company does not require collateral on its trade receivables. For the year ended December 31, 2016 , the Company’s largest customer, five largest customers, and ten largest customers constituted 16.2% , 56.8% , and 70.1% of total revenues, respectively. For the year ended December 31, 2015 the Company’s largest customer, five largest customers, and ten largest customers constituted 17.2% , 48.5% , and 67.0% of total revenues, respectively. For the year ended December 31, 2014 the Company’s largest customer, five largest customers, and ten largest customers constituted 18.8% , 42.7% , and 56.6% of total revenues, respectively. The loss of any one of the Company's top five customers would have a materially adverse effect on the revenues and profits of the Company. Further, the Company's trade accounts receivable are from companies within the oil and natural gas industry and as such the Company is exposed to normal industry credit risks. As of December 31, 2016 , the Company's largest customer, five largest customers, and ten largest customers constituted 22.9% , 58.0% , and 69.8% of trade accounts receivable, respectively. As of December 31, 2015 , the Company's largest customer, five largest customers, and ten largest customers constituted 16.5% , 44.8% , and 62.6% of trade accounts receivable, respectively. The Company continually evaluates its reserves for potential credit losses and establishes reserves for such losses. Employee Benefit Plan The Company has a 401(k) retirement plan for substantially all of its employees based on certain eligibility requirements. The Company may provide profit sharing contributions to the plan at the discretion of management. No such discretionary contributions have been made since inception of the plan. Self-Insurance The Company is self-insured under its Employee Group Medical Plan for the first $150 thousand per individual. The Company is self-insured with a retention for the first $250 thousand in general liability. The Company also retains the first $1.0 million within the auto liability buffer policy which is in excess of a primary $1.0 million auto liability limit. The Company has an additional premium payable clause under its lead $10.0 million limit excess policy that states in the event losses exceed $0.5 million , a loss additional premium of up to 15% of paid losses in excess of $0.5 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 $7.2 million and $7.3 million as of December 31, 2016 and 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. The Company does not believe that any of these claims and actions, separately or in the aggregate, will have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows, although the Company cannot guarantee that a material adverse effect will not occur. Chapter 11 Proceedings On January 22, 2017, the Debtors filed the Petitions in the Bankruptcy Court seeking relief under the provisions of chapter 11 of the Bankruptcy Code. The commencement of the chapter 11 cases automatically stayed certain actions against the Debtors, including actions to collect prepetition liabilities or to exercise control over the property of the Debtors. The Plan in the Debtors’ chapter 11 cases provides for the treatment of prepetition liabilities that have not otherwise been satisfied or addressed during the chapter 11 cases. On March 29, 2017, the Bankruptcy Court entered an order confirming the Plan. The Company expects the consummation of the Plan to become effective on or about April 13, 2017. Off-Balance Sheet Arrangements The Company is often party to certain transactions that require off-balance sheet arrangements such as performance bonds, guarantees, operating leases for equipment, and bank guarantees that are not reflected in the Company's consolidated balance sheets. These arrangements are made in the Company's normal course of business and they are not reasonably likely to have a current or future material adverse effect on its financial condition, results of operations, liquidity, or cash flows. The Company's off-balance sheet arrangements include $9.0 million in letters of credit and operating leases for equipment, which is summarized in the table below. Leases Future minimum lease payments under non-cancellable operating leases as of December 31, 2016 are as follows (in thousands): Related Party Other Total 2017 $ 854 $ 1,338 $ 2,192 2018 133 821 954 2019 — 691 691 2020 — 671 671 2021 and thereafter — 3,114 3,114 Total $ 987 $ 6,635 $ 7,622 Rent expense for the years ended December 31, 2016 , 2015 , and 2014 totaled approximately $7.8 million , $16.0 million and $20.6 million , respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Years Ended December 31, 2016 2015 2014 (in thousands) Cash paid for Interest $ 432 $ 26,009 $ 26,096 Income tax — 182 70 Supplemental schedule of non-cash investing and financing activities Financing of insurance notes $ 7,737 $ 7,705 $ 6,976 Change in accounts payable related to capital expenditures (216 ) (1,487 ) (2,395 ) Capital leases on equipment — 527 2,144 Preferred stock dividends and accretion costs (654 ) (42 ) (42 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) included in the consolidated statements of operations for the years ended December 31 was as follows (in thousands): 2016 2015 2014 (in thousands) Continuing operations: Current: Federal $ — $ 15 $ 238 State — 148 641 Foreign (25 ) (23 ) 18 Total current income tax (benefit) expense $ (25 ) $ 140 $ 897 Deferred: Federal $ (96 ) $ (16,562 ) $ (4,008 ) State 293 (192 ) 51 Total deferred income tax expense (benefit) $ 197 $ (16,754 ) $ (3,957 ) Total income tax expense (benefit) $ 172 $ (16,614 ) $ (3,060 ) The provision for income taxes attributable to loss from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to loss from continuing operations before taxes, as follows: 2016 2015 2014 (in thousands) Income tax benefit at statutory rate of 35% $ (38,135 ) $ (21,941 ) $ (3,983 ) Nondeductible expenses 5,293 2,531 654 State taxes, net of federal benefit — 60 374 Change in deferred tax valuation allowance 33,177 2,790 — Other (163 ) (54 ) (105 ) $ 172 $ (16,614 ) $ (3,060 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets as of December 31 were as follows: 2016 2015 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 52,274 $ 30,991 Foreign tax credits 796 796 Alternative minimum tax credit 1,228 1,228 Share-based compensation 1,062 3,568 Bad debts 484 644 Other 2,595 3,068 Total deferred tax assets 58,439 40,295 Less: valuation allowance (36,762 ) (3,586 ) Total deferred tax assets, net $ 21,677 $ 36,709 Deferred tax liabilities: Tax over book depreciation $ (21,411 ) $ (30,689 ) Intangible assets (1,362 ) (6,919 ) Total deferred tax liabilities (22,773 ) (37,608 ) Net deferred tax liability $ (1,096 ) $ (899 ) During the preparation of its 2016 consolidated financial statements, the Company identified an error in its 2015 deferred tax analysis. The Company has corrected the 2015 tax information noted above to reflect an adjustment to reduce deferred income tax assets relating to stock-based compensation by $2.0 million with a similar reduction of the valuation allowance. This adjustment had no impact on the Company's consolidated balance sheet or annual statement of operations, cash flows, or stockholders' equity for any periods presented. The Company has evaluated the impact of this restatement and determined that it was not material. See Note 18. As of December 31, 2016 , the Company had federal net operating loss carryforwards of approximately $149.2 million , which will begin to expire in 2028 if not utilized prior to that time. Realization of deferred tax assets associated with net operating loss carryforwards is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to their expiration. The existence of reversing taxable temporary differences supports the recognition by the Company of deferred tax assets. It is not more likely than not that those deferred tax assets would be realized due to the Company's lack of earnings history. Therefore, a valuation allowance in the amount of $0.8 million was established as of December 31, 2014 , and increased by approximately $2.8 million during 2015 and by approximately $33.2 million during 2016. Deferred taxes have not been recognized on undistributed earnings of foreign subsidiaries since these amounts were not material at December 31, 2016 and 2015 . The Company files U.S. federal, U.S. state, and foreign tax returns, and is generally no longer subject to tax examinations for fiscal years prior to 2011. |
Earning (loss) per Share
Earning (loss) per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earning (loss) per Share | Earnings (loss) per Share Basic earnings (loss) per share, or EPS, is computed by dividing net income (loss) available to common shareholders by the weighted average shares of common stock outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common shares, such as options, unvested restricted stock and restricted stock units and convertible preferred stock, were exercised and converted into common stock. Potential common stock equivalents that have been issued by the Company relate to outstanding stock options and unvested restricted stock and restricted stock units, which are determined using the treasury stock method, and the shares of Series B 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. A company is required to use the two-class method when computing EPS when a company has a security that qualifies as a “participating security.” The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. A participating security is included in the computation of basic EPS using the two-class method. Under the two-class method, basic EPS for the Company’s common stock is computed by dividing net income applicable to common stock by the weighted-average common stock outstanding during the period. Diluted EPS for the Company’s common stock is computed using the more dilutive of the two-class method or the if-converted method. Due to the Company's net operating loss position in each such year, there is no dilutive effect for the years ended December 31, 2016 , 2015 , and 2014 . 2016 There were 602,625 stock options, 0 units of unvested restricted stock units, and 5,292,531 shares of common stock equivalents underlying the series B Preferred stock outstanding as of December 31, 2016 that were not included in the calculation of diluted EPS because their effect would have been antidilutive. 2015 There were 614,125 stock options, 1,358,324 units of unvested restricted stock units, and 5,292,531 shares of common stock equivalents underlying the series B Preferred stock outstanding as of December 31, 2015 that were not included in the calculation of diluted EPS because the effect would have been antidilutive. 2014 There were 1,148,625 stock options, 637,495 units of unvested restricted stock units, and 5,292,531 shares of common stock equivalents underlying the series B Preferred stock outstanding as of December 31, 2014 that were not included in the calculation of diluted EPS because the effect would have been antidilutive. The following table sets forth the computation of basic and diluted loss per share: Years Ended December 31, 2016 2015 2014 (in thousands, except per share amounts) Basic and diluted: Net loss $ (109,129 ) $ (46,074 ) $ (8,321 ) Preferred stock dividends and accretion (776 ) (776 ) (776 ) Net loss attributable to common shareholders $ (109,905 ) $ (46,850 ) $ (9,097 ) Weighted-average common shares 22,214 22,071 21,749 Basic and diluted loss per share $ (4.95 ) $ (2.12 ) $ (0.42 ) |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segment Information | Business Segment Information The Company has determined that it has two reportable segments organized based on its products and services—well servicing and fluid logistics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Well Servicing At December 31, 2016 , the Company's well servicing segment utilized its 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 Company's fluid logistics segment utilized its fleet of owned or leased fluid transport trucks and related assets, including specialized vacuum, high-pressure pump and tank trucks, frac tanks, water wells, salt water disposal wells and facilities, and related equipment. These assets are used to provide, transport, store, and dispose of a variety of drilling and produced fluids used in, and generated by, oil and natural gas production. These services are required in most workover and completion projects and are routinely used in the daily operation of producing wells. The following table sets forth certain financial information from continuing operations with respect to the Company’s reportable segments (dollars in thousands): Well Servicing Fluid Logistics Consolidated 2016 Operating revenues $ 70,921 $ 45,284 $ 116,205 Direct operating costs 61,279 42,744 104,023 Segment operating profits $ 9,642 $ 2,540 $ 12,182 Depreciation and amortization $ 26,246 $ 26,128 $ 52,374 Loss on impairment of assets 25 14,512 14,537 Capital expenditures (1) 4,293 4,408 8,701 Total assets 611,090 434,663 1,045,753 Long lived assets 142,509 90,853 233,362 2015 Operating revenues $ 150,949 $ 93,158 $ 244,107 Direct operating costs 117,514 74,905 192,419 Segment operating profits $ 33,435 $ 18,253 $ 51,688 Depreciation and amortization $ 25,914 $ 29,120 $ 55,034 Capital expenditures (1) 4,844 3,764 8,608 Total assets 662,819 470,788 1,133,607 Long lived assets 165,416 111,613 277,029 2014 Operating revenues $ 285,338 $ 163,940 $ 449,278 Direct operating costs 213,278 127,775 341,053 Segment operating profits $ 72,060 $ 36,165 $ 108,225 Depreciation and amortization $ 24,396 $ 30,563 $ 54,959 Capital expenditures (1) 16,263 21,363 37,626 Total assets 646,912 485,944 1,132,856 Long lived assets 188,726 133,937 322,663 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including capital leases and fixed assets recorded in accounts payable at year-end. Year Ended December 31, 2016 2015 2014 Reconciliation of the Forbes Group Operating Loss As Reported: Segment operating profits $ 12,182 $ 51,688 $ 108,225 General and administrative expense 18,832 31,591 36,428 Depreciation and amortization 52,374 55,034 54,959 Loss on impairment of assets 14,537 — — Reorganization costs 7,548 — — Operating (loss) income (81,109 ) (34,937 ) 16,838 Other income and expenses, net (27,848 ) (27,751 ) (28,219 ) Pre-tax loss $ (108,957 ) $ (62,688 ) $ (11,381 ) December 31, 2016 2015 Reconciliation of the Forbes Group Assets As Reported: Total reportable segments $ 1,045,753 $ 1,133,607 Elimination of internal transactions (1,935,640 ) (1,894,434 ) Parent 1,202,768 1,169,981 Total assets $ 312,881 $ 409,154 |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 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 Under the Company's Series B Certificate of Designation, the Company is authorized to issue 825,000 shares of Series B Senior Convertible Preferred Stock, or the Series B Preferred Stock, par value $0.01 per share. This is presented as temporary equity on the balance sheet. The common stock into which the Series B Preferred Stock is convertible has certain demand and “piggyback” registration rights. There were 588,059 shares of Series B Preferred Stock outstanding as of December 31, 2016 and 2015 . The value of the Series B Preferred Stock, for accounting purposes, is being accreted up to redemption value from the date of issuance to the earliest redemption date of the instrument using the effective interest rate method. If the Series B Preferred Stock had been redeemed as of December 31, 2016 , the redemption amount applicable at such date would have been approximately $15.6 million . The primary terms of the Series B Preferred Stock is as follows: Rank - The Series B Preferred Stock ranks senior in right of payment to the common stock and any class or series of capital stock that is junior to the Series B Preferred Stock, and pari passu with any series of the Company's preferred stock that is by its terms ranked pari passu in right of payment as to dividends and liquidation with the Series B Preferred Stock. Conversion - The Series B Preferred Stock is convertible into the Company's common stock at an initial rate of nine common shares per share of Series B Preferred Stock (as adjusted for the Share Consolidation) (subject to further adjustment). If all such Series B Preferred Stock is converted, at the initial conversion rate, 5,292,531 shares of common stock will be issued to holders of the Series B Preferred Stock. Notwithstanding the foregoing, pursuant to a Certificate of Designation, no holder of the Series B Preferred Stock is entitled to effect a conversion of Series B Preferred Stock if such conversion would result in the holder (and affiliates) beneficially owning 20% or more of the Company's common stock. Dividends Rights - The Series B Preferred Stock is entitled to receive preferential dividends equal to five percent ( 5% ) per annum of the original issue price per share, payable quarterly in February, May, August, and November of each year. Such dividends may be paid by the Company in cash or in kind (in the form of additional shares of Series B Preferred Stock). In the event that the payment in cash or in kind of any such dividend would cause the Company to violate a covenant under its debt agreements, the obligation to pay, in cash or in kind, will be suspended until and only to the extent any restrictions under the debt agreements lapse or are no longer applicable. During any such suspension period, the preferential dividends shall continue to accrue and accumulate. As shares of the Series B Preferred Stock are convertible into shares of the Company's common stock, each dividend paid in kind will have a dilutive effect on the Company's shares of common stock. The dividends paid on February 28, 2016, were paid in cash. Dividends for all quarterly periods in the years ended December 31, 2015 and 2014 have been paid in cash. Liquidation - Upon any voluntary or involuntary liquidation, dissolution, or winding up of the Company, no distribution shall be made as follows: (i) to the holders of shares ranking junior to the Series B Preferred Stock unless the holders of Series B Preferred Stock shall have received an amount equal to the original issue price per share of the Series B Preferred Stock (subject to adjustment) plus an amount equal to accumulated and unpaid dividends and distributions thereon to the date of such payment, and (ii) to the holders of shares ranking on a parity with the Series B Preferred Stock, unless simultaneously therewith distributions are made ratably on the Series B Preferred Stock and all other such parity stock in proportion to the total amounts to which the holders of Series B Preferred Stock are entitled. Voting Rights - The holders of Series B Preferred Stock are not entitled to any voting rights except as provided in the following sentence, in the Company's bylaws or otherwise under the Texas law. If the preferential dividends on the Series B Preferred Stock have not been declared and paid in full in cash or in kind for eight or more quarterly dividend periods (whether or not consecutive), the holders of the Series B Preferred Stock shall be entitled to vote at any meeting of shareholders with the holders of common stock and to cast the number of votes equal to the number of whole Common Shares into which the Series B Preferred Stock held by such holders are then convertible. Redemption - All or any number of the shares of Series B Preferred Stock may be redeemed by the Company at any time after May 28, 2013 at a redemption price of $25 per share plus accrued and unpaid dividends and provided that the current equity value of the Company's common stock exceeds a five day volume weighted average of $3.33 per share. On May 28, 2017 , the Company is required to redeem any Series B Preferred Stock then outstanding at a redemption price determined in accordance with the Certificate of Designation plus accrued but unpaid dividends. Such mandatory redemption may, at the Company's election, be paid in cash or in common shares (valued for such purpose at 95% of the then fair market value of the common stock). In the event certain corporate transactions occur (such as a reorganization, recapitalization, reclassification, consolidation or merger) under which the Company's common stock (but not the Series B Preferred Stock) is converted into or exchanged for securities, cash or other property, then following such transaction, each share of Series B Preferred Stock shall thereafter be convertible into the same kind and amount of securities, cash or other property. Certain of the redemption features are outside of the Company's control, and as a result, the Series B Preferred Stock have been reflected in the consolidated balance sheet as temporary equity. Preferred stock dividends are recorded at their fair value. If paid in cash, the amount paid represents fair value. If paid in kind, the fair value of the preferred stock dividends is determined using valuation techniques that include a component representing the intrinsic value of the dividends (which represents the fair value of the common stock into which the preferred stock could be converted) and an option component (which is determined using a Black-Scholes Option Pricing Model). Dividends and accretion for each of the years ended December 31, 2016 , 2015 , and 2014 were $0.8 million . The Company has paid the quarterly dividends through February 29, 2016, but did not make the dividend payments due on May 28, 2016, August 28, 2016, November 28, 2016 and February 28, 2017. The Plan, as described in Note 2 - Chapter 11 Proceedings, provides that all existing Equity Interests (as defined in the Plan and which include FES Ltd.'s common stock, FES Ltd.'s Company's preferred stock, awards under the Compensation Plan and the preferred stock purchase rights under Rights Agreement) in the FES Ltd. will be extinguished without recovery. On March 29, 2 017, the Plan was confirmed by the Bankruptcy Court and the Company expects the consummation of the Plan to become effective on or about April 13, 2017. |
Supplemental Financial Informat
Supplemental Financial Information Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Financial Information Quarterly Financial Data (Unaudited) | Supplemental Financial Information Quarterly Financial Data (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except for per share amounts) 2016: Revenues $ 31,931 $ 28,411 $ 27,857 $ 28,006 Operating loss (1) (17,495 ) (31,790 ) (16,273 ) (15,551 ) Net loss (1) (24,468 ) (38,686 ) (23,209 ) (22,766 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss attributable to common shares (24,662 ) (38,880 ) (23,403 ) (22,960 ) Loss per share: Basic and diluted (1.11 ) (1.75 ) (1.05 ) (1.04 ) 2015: Revenues $ 84,333 $ 62,810 $ 55,557 $ 41,407 Operating income (loss) 356 (6,858 ) (11,218 ) (17,217 ) Net loss - as previously reported (4,434 ) (8,748 ) (13,510 ) (19,382 ) Correction of error (2) (2,000 ) — — 2,000 Net loss - as revised (6,434 ) (8,748 ) (13,510 ) (17,382 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss attributable to common shares - as previously reported (4,628 ) (8,942 ) (13,704 ) (19,576 ) Correction of error (2) (2,000 ) — — 2,000 Loss attributable to common shares - as revised (6,628 ) (8,942 ) (13,704 ) (17,576 ) Loss per share: Basic and diluted - as previously reported (0.21 ) (0.41 ) (0.62 ) (0.88 ) Correction of error (2) (0.09 ) — — 0.09 Basic and diluted - as revised (0.30 ) (0.41 ) (0.62 ) (0.79 ) (1) Operating and net losses for the quarter ended June 30, 2016 include an impairment loss of $14.5 million . (2) During the preparation of its 2016 consolidated financial statements, the Company identified an error in its 2015 deferred tax analysis. The Company has corrected the 2015 tax information noted above to reflect an adjustment to reduce deferred income tax assets relating to stock-based compensation by $2.0 million with a similar reduction of the valuation allowance. This adjustment had no impact on the Company's consolidated balance sheet as of December 31, 2015, or annual statement of operations, cash flows, or stockholders' equity for any periods presented. The Company has evaluated the impact of this restatement and determined that it was not material. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [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. |
Principles of Consolidation | Principles of Consolidation The Company’s consolidated financial statements include the accounts of FES Ltd. and all of its wholly owned, direct and indirect subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Revenue Recognition | Revenue Recognition Well Servicing –Well servicing consists primarily of maintenance services, workover services, completion services, plugging and abandonment services, and tubing testing. The Company prices well servicing by the hour of service performed, or on occasion, bid/turnkey pricing. Fluid Logistics – Fluid logistics consists primarily of the sale, transportation, storage, and disposal of fluids used in drilling, production, and maintenance of oil and natural gas wells. The Company prices fluid logistics services by the job, by the hour, or by the quantities sold, disposed, or hauled. The Company recognizes revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists, and the price is fixed or determinable. Revenues are presented net of any sales taxes collected by the Company from its customers that are remitted to governmental authorities. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are based on earned revenues. The Company provides an allowance for doubtful accounts, which is based on a review of outstanding receivables, historical collection information, and existing economic conditions. Provisions for doubtful accounts are recorded when it becomes evident that the customer will not be likely to make the required payments at either contractual due dates or in the future. The accounts are written off against the provision when it becomes evident that the account is not collectible. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Improvements or betterments that extend the useful life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. The costs of assets retired or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts in the period of disposal. Gains or losses resulting from property disposals are credited or charged to operations. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. |
Impairment | Impairment Long-lived assets consist of property and equipment and intangible assets. The Company makes judgments and estimates regarding the carrying value of these assets, including amounts to be capitalized, estimated useful lives, depreciation and amortization methods to be applied, and possible impairment. The Company evaluates its long-lived assets whenever events and changes in circumstances indicate the carrying amount of its net assets may not be recoverable due to various external or internal factors. When an indicator of possible impairment exists, the Company uses estimated future undiscounted cash flows to assess recoverability of its long-lived assets. These cash flow projections require the Company to make judgments regarding long-term forecasts of future revenue and costs related to the assets subject to review. These forecasts include assumptions related to the rates the Company bills its customers, equipment utilization, equipment additions, staffing levels, pay rates, and other expenses. These forecasts also require assumptions about demand for the Company's products and services, future market conditions, and technological developments. These assumptions considered the drop in oil and natural gas prices over the last two and one half years and projected future pricing trends. Impairment is indicated when future cash flows are less than the carrying amount of the assets. An impairment loss would be recorded in the period in which it is determined the carrying amount is not recoverable. The impairment loss is the amount by which the carrying amount exceeds the fair market value. During the second quarter of 2016, we determined that the continued decline in revenues and industry-wide slowdown related to oil prices was other than temporary and was an impairment indicator. Therefore, we assessed all of our long-lived assets for impairment, which resulted in the carrying amounts of long-lived assets associated with our fluid logistics segment in exceeding the recoverable amounts based upon the undiscounted cash flow analysis. As a result, we hired an independent consulting firm to measure the fair values of the long-lived assets associated with our 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. We did not experience any additional triggering events in the third or fourth quarters of 2016. Volatility in the oil and natural gas industry, which is driven by factors over which the Company has no control, could affect the fair market value of the Company's equipment fleet and cause the Company to conclude at a future date that additional impairment is evident and may trigger a write-down of the Company's assets for accounting purposes, which could have a material adverse impact on the Company's financial position and results of operations. |
Restricted Cash | Restricted Cash Restricted cash serves as collateral for loans and certain outstanding letters of credit and the Company's corporate credit card program. |
Intangible Assets | Intangible Assets The Company's major classes of intangible assets consisted of its customer relationships, trade names, safety training program and dispatch software in 2015. |
Deferred Financing Costs | Deferred Financing Costs The Company amortizes deferred financing costs over the period of the agreement governing the 9% Senior Notes and the revolving credit facility on an effective interest basis, as a component of interest expense. |
Share-Based Compensation | Share-Based Compensation The Company measures share-based compensation cost as of the grant date based on the estimated fair value of the award less an estimated rate for pre-vesting forfeitures, and recognizes compensation expense on a straight-line basis over the vesting period. The Company classifies stock awards as either an equity award or a liability award. Equity classified awards are valued as of the grant date using market price. Liability classified awards are re-measured at fair value at the end of each reporting date until settled. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in the period that includes the statutory enactment date. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records uncertain tax positions at their net recognizable amount, based on the amount that management deems is more likely than not to be sustained upon ultimate settlement with tax authorities. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense. |
Earnings per Share (EPS) | Earnings per Share (EPS) Basic EPS is calculated by dividing the net income (loss) attributable to common shareholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, restricted stock, and restricted stock units. Preferred stock may participate in undistributed earnings with common stock. Such securities are deemed to not be participating in losses if there is no obligation to fund such losses. The holders of the Company's Series B Senior Convertible Preferred Stock, or the Series B Preferred Stock, would be entitled to share in dividends, on an as-converted basis, if the holders of common stock were to receive dividends in excess of 5% of the then current common stock market price on a cumulative basis over the past twelve months, provided that the holders of the Series B Preferred Stock would only share in that portion of the dividend that exceeds 5% . |
Fair Value of Financial Instruments | Fair Values of Financial Instruments Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. There is a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company classifies fair value balances based on the observability of those inputs. The three levels of the fair value hierarchy are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 - Inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. • Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In valuing certain assets and liabilities, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. The carrying amounts of cash and cash equivalents, accounts receivable-trade, accounts receivable-other, accounts payable-trade, accounts payable-related parties, and insurance notes approximate fair value because of the short maturity of these instruments. |
Environmental | Environmental The Company is subject to extensive federal, state, and local environmental laws and regulations. These laws, which are constantly changing, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the adverse environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2016, Financial Accounting Standards Board, or the FASB, issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230), Restricted Cash," ("ASU 2016-18"). ASU 2016-18 provides guidance on the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. Restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The amendments of ASU 2016-18 should be applied using a retrospective transition method and are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company believes the adoption of this pronouncement will only change the presentation of the statement of cash flows for restricted cash. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case, the new standard would apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, 'Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which introduces a new impairment model for financial instruments that is based on expected credit losses rather than incurred credit losses. The new impairment model applies to most financial assets, including trade accounts receivable. The amendments in ASU 2016-13 are effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company will be evaluating the impact of adopting this pronouncement on its consolidated financial statements. In March 2016, the FASB issued ASU No. 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. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company has determined the adoption of this new pronouncement will not have a material impact on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which increases the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for operating leases with lease terms greater than 12 months. It also requires additional disclosures about leasing arrangements to help users of financial statements better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 becomes effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company plans to engage a third party to assist in evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” ("ASU 2014-09"), which provides guidance for revenue recognition and which supersedes nearly all existing revenue recognition guidance under ASU 2014-09. This ASU provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance permits two methods of transition upon adoption: full retrospective and modified retrospective. Under the full retrospective method, the standard would be applied to each prior reporting period presented. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB issued final revised guidance that defers the effective date of the revenue recognition standard to be for annual and interim periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company plans to engage a third party to assist in evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Allowance for doubtful accounts rollforward | The following reflects changes in the Company's allowance for doubtful accounts: Balance as of January 1, 2014 $ 3,952 Provision 967 Bad debt write-off (880 ) Balance as of December 31, 2014 4,039 Provision 1,409 Bad debt write-off (3,644 ) Balance as of December 31, 2015 1,804 Provision 1,873 Bad debt write-off (2,320 ) Balance as of December 31, 2016 $ 1,357 |
Fair value of financial instruments | December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) 9% Senior Notes $ 277,662 $ 98,570 $ 276,727 $ 130,062 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | The following sets forth the identified intangible assets by major asset class: As of December 31, 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 (4,830 ) — 3,220 8,050 (4,293 ) — 3,757 Other 10-15 2,375 (1,686 ) (689 ) — 2,375 (1,586 ) — 789 $ 42,321 $ (24,589 ) $ (14,512 ) $ 3,220 $ 42,321 $ (22,890 ) $ — $ 19,431 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2016 and 2015 : Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at December 31, 2014 1,148,625 $ 7.94 5.44 years $ — Stock options: Granted — — Exercised — — Forfeited (534,500 ) 9.25 Options outstanding at December 31, 2015 614,125 $ 6.80 4.87 years $ — Stock options: Granted — — Exercised — — Forfeited (11,500 ) 7.86 Options outstanding at December 31, 2016 602,625 $ 6.78 3.90 years $ — Vested and expected to vest at December 31, 2016 602,625 $ 6.78 3.90 years $ — Exercisable at December 31, 2016 602,625 $ 6.78 3.90 years $ — |
Summary of Restricted Stock Unit Grant Activity | The following table presents a summary of restricted stock unit activity for the years ended December 31, 2016 , 2015 and 2014 : Equity Based Liability Based Total Number of Units Grant Date Average Fair Value Per Unit Outstanding at December 31, 2013 674,789 — 674,789 $ 3.49 Granted 199,254 262,273 461,527 3.85 Vested (498,821 ) — (498,821 ) 3.84 Forfeited — — — — Nonvested at December 31, 2014 375,222 262,273 637,495 $ 3.47 Granted 127,008 1,191,704 1,318,712 1.19 Vested (310,451 ) (214,432 ) (524,883 ) 2.33 Forfeited (73,000 ) — (73,000 ) 3.53 Nonvested at December 31, 2015 118,779 1,239,545 1,358,324 $ 1.70 Granted — — — — Vested (118,779 ) (523,866 ) (642,645 ) 1.88 Forfeited — — — — Nonvested at December 31, 2016 — 715,679 715,679 $ 1.53 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the Company's equity and liability stock based compensation expense (in thousands): 2016 2015 2014 Restricted stock unit expense $ — $ 508 $ 1,253 Stock option expense — — 1,185 Performance based liability award expense associated with restricted stock units (298 ) (66 ) 826 Total stock-based compensation expense $ (298 ) $ 442 $ 3,264 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and equipment | Property and equipment at December 31, 2016 and 2015 consisted of the following: Estimated Life in Years December 31, 2016 2015 (in thousands) Well servicing equipment 9-15 years $ 411,199 $ 413,543 Autos and trucks 5-10 years 126,580 126,994 Disposal wells 5-15 years 37,752 38,426 Building and improvements 5-30 years 14,125 14,107 Furniture and fixtures 3-15 years 6,779 6,573 Land 1,524 1,524 597,959 601,167 Accumulated depreciation (364,597 ) (324,138 ) $ 233,362 $ 277,029 |
Schedule of Capital Leased Assets | The gross amount of property and equipment and related accumulated depreciation recorded under capital leases and included above consists of the following: December 31, 2016 2015 (in thousands) Well servicing equipment $ 13,696 $ 15,215 Autos and trucks 12,706 15,181 26,402 30,396 Accumulated depreciation (15,146 ) (14,219 ) $ 11,256 $ 16,177 |
Accounts Payable and Accrued 30
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued expenses and accounts payable – trade | Accrued expenses and accounts payable – trade at December 31, 2016 and 2015 , consisted of the following: December 31, 2016 2015 (in thousands) Accrued wages $ 601 $ 2,264 Accrued insurance 7,193 7,266 Other accrued expenses 946 1,196 Total accrued expenses $ 8,740 $ 10,726 Accounts payable - vendor financings $ 26 $ 242 Accounts payable - other 4,479 8,753 Total accounts payable - trade $ 4,505 $ 8,995 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Debt at December 31, 2016 and 2015 , consisted of the following: December 31, 2016 2015 (in thousands) 9% Senior Notes, net of deferred financing costs of $2,338 and $3,273 as of December 31, 2016 and 2015, respectively $ 277,662 $ 276,727 Revolving credit facility 15,000 15,000 Third party equipment notes and capital leases 1,386 7,133 Insurance notes 5,124 6,181 299,172 305,041 Less: Current portion (298,932 ) $ (25,243 ) $ 240 $ 279,798 |
Aggregate maturities of long-term debt | Aggregate maturities of long-term debt, excluding deferred financing costs, as of December 31, 2016 are as follows (in thousands): 2017 301,270 2018 240 2019 — 2020 — Total $ 301,510 |
Contractual Obligation, Fiscal Year Maturity Schedule | Following are required principal payments due on third party equipment notes and capital leases (other than the 9% Senior Notes and revolving credit facility) existing as of December 31, 2016 : 2017 2018 2019 2020 2021 and thereafter (in thousands) Third party equipment notes and capital lease principal payments $ 1,145 $ 240 $ — $ — $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables summarizes the related party transactions. As of December 31, 2016 2015 (in thousands) Related parties cash and cash equivalents balances: Balance at Texas Champion Bank (1) $ 295 $ 1,132 Balance at Brush Country Bank (2) — 485 $ 295 $ 1,617 Related parties payable: Dorsal Services, Inc. (3) $ — $ 2 Tasco Tool Services, Inc. (4) — 2 Texas Quality Gate Guard Services, LLC (5) 18 4 $ 18 $ 8 Years ended December, 31 2016 2015 2014 (in thousands) Related parties capital expenditures: Tasco Tool Services, Inc. (4) $ — $ — $ 16 JITSU Services, LLC (6) — — 240 $ — $ — $ 256 Related parties revenue activity: Tasco Tool Services, Inc. (4) $ — $ 1 $ 2 Wolverine Construction, Inc. (7) — — 249 Texas Water Disposal, LLC (8) — — 12 $ — $ 1 $ 263 Related parties expense activity: Alice Environmental Services, LP/Alice Environmental Holdings, LLC (9) $ 1,012 $ 1,889 $ 1,861 Dorsal Services, Inc. (3) 13 20 371 Tasco Tool Services, Inc. (4) 36 172 224 FCJ Management, LLC (10) — 15 27 JITSU Services, LLC (6) — — 243 Texas Quality Gate Guard Services, LLC (5) 200 188 214 Animas Holdings, LLC (11) 172 225 265 CJW Group, LLC (12) 38 38 13 $ 1,471 $ 2,547 $ 3,218 Other payments to related parties: SB Factoring, LLC (13) $ 402 $ 1,900 $ 3,863 $ 402 $ 1,900 $ 3,863 There were no related party receivables as of December, 2016 and December 31, 2015. (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, Inc., 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) JITSU Services, LLC, or JITSU, is a financial leasing company owned by Janet Forbes, or Ms. Forbes, and Mr. Crisp. The Company previously leased ten vacuum trucks from JITSU. This lease was terminated in November 2014. Ms. Forbes served as a Company director until June 11, 2014. (7) Wolverine Construction, Inc., or Wolverine, is an entity that was owned by two sons and a brother of Mr. Crisp, and a son of Mr. Forbes. Wolverine provided construction and site preparation services to certain customers of the Company. The related party interests in Wolverine were sold in 2014. (8) Texas Water Disposal Services, LLC, or TWDS, is partially owned by a brother of Mr. Crisp. TWDS is a company that owns a salt water disposal well that was used by the Company. The Company has not done business with TWDS since March 2014. (9) 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, Alice Environmental West Texas, LLC, or AEWT and AEH Operating, LLC. The Company leases or rents land and buildings, and aircraft from AES. During January 2015, the Company purchased land from AEWT for an additional operating location. The aircraft leases were terminated during the third quarter of 2015. (10) 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. (11) Animas Holdings, LLC, or Animas, is owned by the two sons of Mr. Crisp and three children of Mr. and Ms. Forbes. Animas owns land and property that it leases to the Company. (12) CJW Group, LLC is an entity that leases office space to the Company and is partially owned by Messrs. Crisp and Forbes. (13) 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) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments under non-cancellable operating leases | Future minimum lease payments under non-cancellable operating leases as of December 31, 2016 are as follows (in thousands): Related Party Other Total 2017 $ 854 $ 1,338 $ 2,192 2018 133 821 954 2019 — 691 691 2020 — 671 671 2021 and thereafter — 3,114 3,114 Total $ 987 $ 6,635 $ 7,622 |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | Supplemental Cash Flow Information Years Ended December 31, 2016 2015 2014 (in thousands) Cash paid for Interest $ 432 $ 26,009 $ 26,096 Income tax — 182 70 Supplemental schedule of non-cash investing and financing activities Financing of insurance notes $ 7,737 $ 7,705 $ 6,976 Change in accounts payable related to capital expenditures (216 ) (1,487 ) (2,395 ) Capital leases on equipment — 527 2,144 Preferred stock dividends and accretion costs (654 ) (42 ) (42 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) included in the consolidated statements of operations | Income tax expense (benefit) included in the consolidated statements of operations for the years ended December 31 was as follows (in thousands): 2016 2015 2014 (in thousands) Continuing operations: Current: Federal $ — $ 15 $ 238 State — 148 641 Foreign (25 ) (23 ) 18 Total current income tax (benefit) expense $ (25 ) $ 140 $ 897 Deferred: Federal $ (96 ) $ (16,562 ) $ (4,008 ) State 293 (192 ) 51 Total deferred income tax expense (benefit) $ 197 $ (16,754 ) $ (3,957 ) Total income tax expense (benefit) $ 172 $ (16,614 ) $ (3,060 ) |
Effective income tax reconciliation | The provision for income taxes attributable to loss from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to loss from continuing operations before taxes, as follows: 2016 2015 2014 (in thousands) Income tax benefit at statutory rate of 35% $ (38,135 ) $ (21,941 ) $ (3,983 ) Nondeductible expenses 5,293 2,531 654 State taxes, net of federal benefit — 60 374 Change in deferred tax valuation allowance 33,177 2,790 — Other (163 ) (54 ) (105 ) $ 172 $ (16,614 ) $ (3,060 ) |
Tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities | Significant components of the Company's deferred tax liabilities and assets as of December 31 were as follows: 2016 2015 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 52,274 $ 30,991 Foreign tax credits 796 796 Alternative minimum tax credit 1,228 1,228 Share-based compensation 1,062 3,568 Bad debts 484 644 Other 2,595 3,068 Total deferred tax assets 58,439 40,295 Less: valuation allowance (36,762 ) (3,586 ) Total deferred tax assets, net $ 21,677 $ 36,709 Deferred tax liabilities: Tax over book depreciation $ (21,411 ) $ (30,689 ) Intangible assets (1,362 ) (6,919 ) Total deferred tax liabilities (22,773 ) (37,608 ) Net deferred tax liability $ (1,096 ) $ (899 ) |
Earning (loss) per Share (Table
Earning (loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings (loss) per share | The following table sets forth the computation of basic and diluted loss per share: Years Ended December 31, 2016 2015 2014 (in thousands, except per share amounts) Basic and diluted: Net loss $ (109,129 ) $ (46,074 ) $ (8,321 ) Preferred stock dividends and accretion (776 ) (776 ) (776 ) Net loss attributable to common shareholders $ (109,905 ) $ (46,850 ) $ (9,097 ) Weighted-average common shares 22,214 22,071 21,749 Basic and diluted loss per share $ (4.95 ) $ (2.12 ) $ (0.42 ) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Financial information with respect to reportable segments | The following table sets forth certain financial information from continuing operations with respect to the Company’s reportable segments (dollars in thousands): Well Servicing Fluid Logistics Consolidated 2016 Operating revenues $ 70,921 $ 45,284 $ 116,205 Direct operating costs 61,279 42,744 104,023 Segment operating profits $ 9,642 $ 2,540 $ 12,182 Depreciation and amortization $ 26,246 $ 26,128 $ 52,374 Loss on impairment of assets 25 14,512 14,537 Capital expenditures (1) 4,293 4,408 8,701 Total assets 611,090 434,663 1,045,753 Long lived assets 142,509 90,853 233,362 2015 Operating revenues $ 150,949 $ 93,158 $ 244,107 Direct operating costs 117,514 74,905 192,419 Segment operating profits $ 33,435 $ 18,253 $ 51,688 Depreciation and amortization $ 25,914 $ 29,120 $ 55,034 Capital expenditures (1) 4,844 3,764 8,608 Total assets 662,819 470,788 1,133,607 Long lived assets 165,416 111,613 277,029 2014 Operating revenues $ 285,338 $ 163,940 $ 449,278 Direct operating costs 213,278 127,775 341,053 Segment operating profits $ 72,060 $ 36,165 $ 108,225 Depreciation and amortization $ 24,396 $ 30,563 $ 54,959 Capital expenditures (1) 16,263 21,363 37,626 Total assets 646,912 485,944 1,132,856 Long lived assets 188,726 133,937 322,663 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including capital leases and fixed assets recorded in accounts payable at year-end. Year Ended December 31, 2016 2015 2014 Reconciliation of the Forbes Group Operating Loss As Reported: Segment operating profits $ 12,182 $ 51,688 $ 108,225 General and administrative expense 18,832 31,591 36,428 Depreciation and amortization 52,374 55,034 54,959 Loss on impairment of assets 14,537 — — Reorganization costs 7,548 — — Operating (loss) income (81,109 ) (34,937 ) 16,838 Other income and expenses, net (27,848 ) (27,751 ) (28,219 ) Pre-tax loss $ (108,957 ) $ (62,688 ) $ (11,381 ) December 31, 2016 2015 Reconciliation of the Forbes Group Assets As Reported: Total reportable segments $ 1,045,753 $ 1,133,607 Elimination of internal transactions (1,935,640 ) (1,894,434 ) Parent 1,202,768 1,169,981 Total assets $ 312,881 $ 409,154 |
Supplemental Financial Inform38
Supplemental Financial Information Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Financial Information Quarterly Financial Data (Unaudited) from continuing operations | Supplemental Financial Information Quarterly Financial Data (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands except for per share amounts) 2016: Revenues $ 31,931 $ 28,411 $ 27,857 $ 28,006 Operating loss (1) (17,495 ) (31,790 ) (16,273 ) (15,551 ) Net loss (1) (24,468 ) (38,686 ) (23,209 ) (22,766 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss attributable to common shares (24,662 ) (38,880 ) (23,403 ) (22,960 ) Loss per share: Basic and diluted (1.11 ) (1.75 ) (1.05 ) (1.04 ) 2015: Revenues $ 84,333 $ 62,810 $ 55,557 $ 41,407 Operating income (loss) 356 (6,858 ) (11,218 ) (17,217 ) Net loss - as previously reported (4,434 ) (8,748 ) (13,510 ) (19,382 ) Correction of error (2) (2,000 ) — — 2,000 Net loss - as revised (6,434 ) (8,748 ) (13,510 ) (17,382 ) Preferred stock dividends (194 ) (194 ) (194 ) (194 ) Loss attributable to common shares - as previously reported (4,628 ) (8,942 ) (13,704 ) (19,576 ) Correction of error (2) (2,000 ) — — 2,000 Loss attributable to common shares - as revised (6,628 ) (8,942 ) (13,704 ) (17,576 ) Loss per share: Basic and diluted - as previously reported (0.21 ) (0.41 ) (0.62 ) (0.88 ) Correction of error (2) (0.09 ) — — 0.09 Basic and diluted - as revised (0.30 ) (0.41 ) (0.62 ) (0.79 ) (1) Operating and net losses for the quarter ended June 30, 2016 include an impairment loss of $14.5 million . (2) During the preparation of its 2016 consolidated financial statements, the Company identified an error in its 2015 deferred tax analysis. The Company has corrected the 2015 tax information noted above to reflect an adjustment to reduce deferred income tax assets relating to stock-based compensation by $2.0 million with a similar reduction of the valuation allowance. This adjustment had no impact on the Company's consolidated balance sheet as of December 31, 2015, or annual statement of operations, cash flows, or stockholders' equity for any periods presented. The Company has evaluated the impact of this restatement and determined that it was not material. |
Chapter 11 Proceedings (Details
Chapter 11 Proceedings (Details) - USD ($) | Mar. 29, 2017 | Dec. 22, 2016 | Dec. 20, 2016 | Dec. 31, 2016 | Jun. 07, 2011 |
Senior Notes | 9% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 9.00% | 9.00% | |||
Percent of principal | 99.46% | 65.40% | |||
Percent of principal in favor of plan | 87.14% | ||||
Percent of principal accepting of the plan | 93.75% | ||||
Subsequent Event | Senior Notes | 9% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 9.00% | ||||
Cancellation cash paid | $ 20,000,000 | ||||
Debt eliminated | 280,000,000 | ||||
Line of Credit | Subsequent Event | New First Lien Term Loan Facility (Exit Facility) | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||
Officer | Subsequent Event | Senior Notes | 9% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Percent of stock given on cancellation | 12.50% |
Going Concern (Details)
Going Concern (Details) $ in Millions | Mar. 29, 2017USD ($) |
9% Senior Notes | Subsequent Event | Senior Notes | |
Debt Instrument [Line Items] | |
Debt eliminated | $ 280 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 1,804 | $ 4,039 | $ 3,952 |
Provision | 1,873 | 1,409 | 967 |
Bad debt write-off | (2,320) | (3,644) | (880) |
Allowance for doubtful accounts, ending balance | $ 1,357 | $ 1,804 | $ 4,039 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Jun. 07, 2011 | |
Debt Instrument [Line Items] | ||||||
Depreciation expense | $ 50,700,000 | $ 52,200,000 | $ 52,100,000 | |||
Loss on impairment of assets | $ 14,500,000 | 14,537,000 | 0 | 0 | ||
Restricted cash current | 27,563,000 | 0 | ||||
Restricted cash noncurrent | 0 | 51,300 | ||||
Amortization of deferred financing cost | 1,260,000 | 1,455,000 | $ 1,807,000 | |||
Debt issuance costs | $ 2,300,000 | |||||
Percent of stock market price (exceeds) | 5.00% | |||||
9% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 9.00% | 9.00% | ||||
Debt issuance costs | $ 2,338,000 | 3,273,000 | ||||
Debt instrument, face amount | $ 280,000,000 | $ 280,000,000 | ||||
9% Senior Notes | Senior Notes | Accounting Standards Update 2015-03 | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 3,300,000 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - Senior Notes - 9% Senior Notes - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 07, 2011 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 9.00% | 9.00% | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
9% Senior Notes | $ 277,662 | $ 276,727 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
9% Senior Notes | $ 98,570 | $ 130,062 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets | ||
Gross Carrying Value | $ 42,321 | $ 42,321 |
Accumulated Amortization | (24,589) | (22,890) |
Impairment | (14,512) | 0 |
Net Book Value | $ 3,220 | 19,431 |
Customer relationships | ||
Intangible Assets | ||
Useful Life (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 | |
Gross Carrying Value | $ 8,050 | 8,050 |
Accumulated Amortization | (4,830) | (4,293) |
Impairment | 0 | 0 |
Net Book Value | 3,220 | 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 | |
Maximum | Other | ||
Intangible Assets | ||
Useful Life (years) | 15 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Loss on impairment of assets | $ 14,500 | $ 14,537 | $ 0 | $ 0 |
Amortization expenses | 1,700 | $ 2,900 | $ 2,900 | |
Estimated amortization expense, 2017 | 500 | |||
Estimated amortization expense, 2018 | 500 | |||
Estimated amortization expense, 2019 | 500 | |||
Estimated amortization expense, 2020 | 500 | |||
Estimated amortization expense, 2021 | 500 | |||
Estimated amortization expense, 2022 | $ 500 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period (in shares) | 0 | 0 | |
Stock based compensation expense | $ (298,000) | $ 442,000 | $ 3,264,000 |
Payments of tax withholding obligations related to restricted stock | $ 124,000 | $ 168,000 | $ 470,000 |
2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period (in shares) | 0 | 0 | 0 |
Options issued in period (in shares) | 0 | 0 | 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 0 | $ 0 | $ 1,185,000 |
Capitalized share-based compensation expense | 0 | $ 0 | $ 0 |
Unrecognized stock-based compensation costs | $ 0 | ||
Stock Options | 2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants (in shares) | 1,785,543 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued in period (in shares) | 4,500 | 364,881 | 371,459 |
Stock based compensation expense | $ 0 | $ 508,000 | $ 1,253,000 |
Vested (in shares) | 642,645 | 524,883 | 498,821 |
Settled in cash | 636,645 | 0 | 0 |
Surrendered for payroll (in shares) | 1,500 | 160,002 | 127,362 |
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 5 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Options outstanding, shares, beginning balance (in shares) | 614,125 | 1,148,625 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | (11,500) | (534,500) | |
Options outstanding, shares, ending balance (in shares) | 602,625 | 614,125 | 1,148,625 |
Weighted- Average Exercise Price | |||
Options outstanding, weighted average exercise price, beginning balance (in usd per share) | $ 6.80 | $ 7.94 | |
Granted, weighted average exercise price (in usd per share) | 0 | 0 | |
Exercised, weighted average exercise price (in usd per share) | 0 | 0 | |
Forfeited, weighted average exercise price (in usd per share) | 7.86 | 9.25 | |
Options outstanding, weighted average exercise price, ending balance (in usd per share) | $ 6.78 | $ 6.80 | $ 7.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options outstanding, weighted average remaining contractual term (in years) | 3 years 10 months 25 days | 4 years 10 months 13 days | 5 years 5 months 10 days |
Options outstanding, aggregate intrinsic value | $ 0 | $ 0 | $ 0 |
Vested and expected to vest (in shares) | 602,625 | ||
Vested and expected to vest, weighted average exercise price (in usd per share) | $ 6.78 | ||
Vested and expected to vest, weighted average remaining contractual term (in years) | 3 years 10 months 25 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 0 | ||
Exercisable (in shares) | 602,625 | ||
Exercisable, weighted average exercise price (in usd per share) | $ 6.78 | ||
Exercisable, weighted average remaining contractual term (in years) | 3 years 10 months 25 days | ||
Exercisable, aggregate intrinsic value | $ 0 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock and Restricted Stock Unit Grant Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 1,358,324 | 637,495 | 674,789 |
Granted, number of units (in shares) | 0 | 1,318,712 | 461,527 |
Vested, number of units (in shares) | (642,645) | (524,883) | (498,821) |
Forfeited, number of units (in shares) | 0 | (73,000) | 0 |
Outstanding ending balance, number of units (in shares) | 715,679 | 1,358,324 | 637,495 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding beginning balance, grant date average fair value per unit (in usd per share) | $ 1.70 | $ 3.47 | $ 3.49 |
Granted, grant date average fair value per unit (in usd per share) | 0 | 1.19 | 3.85 |
Vested, grant date average fair value per unit (in usd per share) | 1.88 | 2.33 | 3.84 |
Forfeited, grant date average fair value per unit (in usd per share) | 0 | 3.53 | 0 |
Outstanding ending balance, grant date average fair value per unit (in usd per share) | $ 1.53 | $ 1.70 | $ 3.47 |
Equity Based | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 118,779 | 375,222 | 674,789 |
Granted, number of units (in shares) | 0 | 127,008 | 199,254 |
Vested, number of units (in shares) | (118,779) | (310,451) | (498,821) |
Forfeited, number of units (in shares) | 0 | (73,000) | 0 |
Outstanding ending balance, number of units (in shares) | 0 | 118,779 | 375,222 |
Liability Based | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding beginning balance, number of units (in shares) | 1,239,545 | 262,273 | 0 |
Granted, number of units (in shares) | 0 | 1,191,704 | 262,273 |
Vested, number of units (in shares) | (523,866) | (214,432) | 0 |
Forfeited, number of units (in shares) | 0 | 0 | 0 |
Outstanding ending balance, number of units (in shares) | 715,679 | 1,239,545 | 262,273 |
Share-Based Compensation - Comp
Share-Based Compensation - Company's equity and liability stock based compensation expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ (298,000) | $ 442,000 | $ 3,264,000 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 0 | 508,000 | 1,253,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | 0 | 0 | 1,185,000 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ (298,000) | $ (66,000) | $ 826,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Property and equipment | |||
Property and equipment, gross | $ 597,959 | $ 601,167 | |
Accumulated depreciation | (364,597) | (324,138) | |
Property and equipment, net | 233,362 | 277,029 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Capital leased assets, gross | 26,402 | 30,396 | |
Accumulated depreciation | (15,146) | (14,219) | |
Capital leases, balance sheet, assets by major class, net | 11,256 | 16,177 | |
Depreciation and amortization | (52,374) | (55,034) | $ (54,959) |
Well servicing equipment | |||
Summary of Property and equipment | |||
Property and equipment, gross | 411,199 | 413,543 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Capital leased assets, gross | $ 13,696 | 15,215 | |
Well servicing equipment | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 9 years | ||
Well servicing equipment | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 15 years | ||
Autos and trucks | |||
Summary of Property and equipment | |||
Property and equipment, gross | $ 126,580 | 126,994 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Capital leased assets, gross | $ 12,706 | 15,181 | |
Autos and trucks | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 5 years | ||
Autos and trucks | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 10 years | ||
Disposal wells | |||
Summary of Property and equipment | |||
Property and equipment, gross | $ 37,752 | 38,426 | |
Disposal wells | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 5 years | ||
Disposal wells | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 15 years | ||
Building and improvements | |||
Summary of Property and equipment | |||
Property and equipment, gross | $ 14,125 | 14,107 | |
Building and improvements | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 5 years | ||
Building and improvements | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 30 years | ||
Furniture and fixtures | |||
Summary of Property and equipment | |||
Property and equipment, gross | $ 6,779 | 6,573 | |
Furniture and fixtures | Minimum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 3 years | ||
Furniture and fixtures | Maximum | |||
Summary of Property and equipment | |||
Property and equipment, estimated life | 15 years | ||
Land | |||
Summary of Property and equipment | |||
Property and equipment, gross | $ 1,524 | 1,524 | |
Assets Held under Capital Leases | |||
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Depreciation and amortization | $ (900) | $ (3,400) | $ (4,600) |
Accounts Payable and Accrued 51
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued wages | $ 601 | $ 2,264 |
Accrued insurance | 7,193 | 7,266 |
Other accrued expenses | 946 | 1,196 |
Total accrued expenses | 8,740 | 10,726 |
Accounts payable - vendor financings | 26 | 242 |
Accounts payable - other | 4,479 | 8,753 |
Total accounts payable - trade | $ 4,505 | $ 8,995 |
Long-Term Debt - Debt (Details)
Long-Term Debt - Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 07, 2011 |
Debt Instruments [Abstract] | |||
Long-term debt and capital lease obligations | $ 299,172 | $ 305,041 | |
Less: Current portion | (298,932) | (25,243) | |
Long-term debt and capital lease obligations, noncurrent | 240 | 279,798 | |
Debt issuance costs | 2,300 | ||
Senior Notes | 9% Senior Notes | |||
Debt Instruments [Abstract] | |||
Long-term debt and capital lease obligations | 277,662 | 276,727 | |
Debt issuance costs | $ 2,338 | 3,273 | |
Stated interest rate | 9.00% | 9.00% | |
Third party equipment notes and capital leases | |||
Debt Instruments [Abstract] | |||
Long-term debt and capital lease obligations | $ 1,386 | 7,133 | |
Insurance notes | |||
Debt Instruments [Abstract] | |||
Long-term debt and capital lease obligations | $ 5,124 | $ 6,181 | |
Stated interest rate | 2.87% | 3.35% | |
Revolving credit facility | Line of Credit | |||
Debt Instruments [Abstract] | |||
Long-term debt and capital lease obligations | $ 15,000 | $ 15,000 |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,017 | $ 301,270 |
2,018 | 240 |
2,019 | 0 |
2,020 | 0 |
Long-term debt, total | $ 301,510 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Mar. 29, 2017USD ($) | Jun. 07, 2011USD ($) | Dec. 31, 2016USD ($)installment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Guarantor subsidiaries ownership percentage | 100.00% | |||||
Long term debt | $ 301,510,000 | |||||
Senior Notes | 9% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 280,000,000 | $ 280,000,000 | ||||
Debt instrument, stated interest rate | 9.00% | 9.00% | ||||
Percentage of principal amount for debt repurchase post change in control | 101.00% | |||||
Percentage of principal amount for debt repurchase post certain asset sales | 100.00% | |||||
Restrictive covenants for senior notes, additional debt, maximum | $ 75,000,000 | |||||
Restrictive covenants for senior notes, additional debt, percentage of consolidated tangible assets, maximum | 18.00% | |||||
Restrictive covenants for senior notes, fixed charge coverage ratio, minimum | 200.00% | |||||
Restrictive covenants for senior notes, quarterly payments of dividends, preferred stock, maximum | $ 260,000 | |||||
Restrictive covenants for senior notes, additional indebtedness threshold | $ 1 | |||||
Restrictive covenants for senior notes, debt payment threshold, percentage of net income | 50.00% | |||||
Restrictive covenants for senior notes, debt payment threshold, percentage of deficit | 100.00% | |||||
Restrictive covenants for senior notes, debt payment threshold, percentage of net proceeds from equity offering | 100.00% | |||||
Restrictive covenants for senior notes, debt payment threshold, percentage of dividends received | 50.00% | |||||
Notes Payable, Other Payables | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt | $ 1,400,000 | $ 7,100,000 | ||||
Debt instrument, principal payments made | $ 5,700,000 | $ 5,600,000 | $ 5,100,000 | |||
Notes Payable, Other Payables | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, number of installments | installment | 42 | |||||
Debt instrument, effective interest rate | 3.07% | |||||
Notes Payable, Other Payables | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, number of installments | installment | 60 | |||||
Debt instrument, effective interest rate | 8.42% | |||||
Subsequent Event | Senior Notes | 9% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 9.00% | |||||
Cancellation cash paid | $ 20,000,000 |
Long-Term Debt - Narrative - Re
Long-Term Debt - Narrative - Revolving Credit Facility (Details) - USD ($) | Sep. 09, 2011 | Dec. 31, 2016 | Jun. 30, 2015 | Sep. 08, 2011 |
Line of Credit Facility [Line Items] | ||||
Company borrowings | $ 15,000,000 | $ 15,000,000 | ||
Debt | 301,510,000 | |||
Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | $ 30,000,000 | $ 90,000,000 | |
Borrowing threshold | $ 75,000,000 | |||
Line of credit facility, consolidated intangible assets | 18.00% | 18.00% | ||
Line of credit facility, current borrowing capacity, asset restriction amount | $ 55,700,000 | |||
Minimum percent of borrowings | 15.00% | |||
Coverage ratio | 1.1 | |||
Borrowing base percentage eligible accounts | 85.00% | |||
Borrowing base percentage of the appraised Value | 85.00% | |||
Percentage of net book value of such equipment | 100.00% | |||
Letters of credit outstanding | $ 9,000,000 | |||
Interest rate at period end | 4.75% | |||
Default rate | 2.00% | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Consolidated fixed charge coverage ratio | 110.00% | |||
Customary covenants for asset based credit facility | $ 11,300,000 | |||
Percentage of maximum credit under the facility | 15.00% | |||
Consecutive days | 60 days | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Company borrowings | $ 9,000,000 | |||
Overnight Federal Funds Rate | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
One Month LIBOR | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Minimum | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, letter of credit, principal borrowing fees Percentage | 2.25% | |||
Minimum | LIBOR | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.00% | |||
Minimum | Prime Rate | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Maximum | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, letter of credit, principal borrowing fees Percentage | 2.75% | |||
Maximum | LIBOR | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% | |||
Maximum | Prime Rate | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
Corporate Credit Card | Loans Payable | ||||
Line of Credit Facility [Line Items] | ||||
Debt | $ 500,000 |
Long-Term Debt - Contractual Ob
Long-Term Debt - Contractual Obligation, Fiscal Year Maturity Schedule (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 1,145 |
2,017 | 240 |
2,018 | 0 |
2,019 | 0 |
2021 and thereafter | $ 0 |
Long-Term Debt - Narrative - In
Long-Term Debt - Narrative - Insurance Notes (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)installment | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Long term debt | $ 301,510 | |
Insurance notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.87% | 3.35% |
Long term debt | $ 5,100 | $ 6,200 |
Debt instrument, number of installments | installment | 12 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, bank deposits | $ 295 | $ 1,617 | |
Accounts payable - related parties | 18 | 8 | |
Related party transaction, capital expenditures from transactions with related party | 0 | 0 | $ 256 |
Revenue from related party | 0 | 1 | 263 |
Related party transaction, purchases from related party | 1,471 | 2,547 | 3,218 |
Other payments to related party | 402 | 1,900 | 3,863 |
Texas Champion Bank | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, bank deposits | 295 | 1,132 | |
Brush Country Bank | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, bank deposits | 0 | 485 | |
Dorsal Services | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 0 | 2 | |
Related party transaction, purchases from related party | 13 | 20 | 371 |
Tasco Tool Services | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 0 | 2 | |
Related party transaction, capital expenditures from transactions with related party | 0 | 0 | 16 |
Revenue from related party | 0 | 1 | 2 |
Related party transaction, purchases from related party | 36 | 172 | 224 |
Texas Quality Gate Guard Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Accounts payable - related parties | 18 | 4 | |
Related party transaction, purchases from related party | 200 | 188 | 214 |
JITSU Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, capital expenditures from transactions with related party | 0 | 0 | 240 |
Related party transaction, purchases from related party | 0 | 0 | 243 |
Wolverine Construction Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Revenue from related party | 0 | 0 | 249 |
Texas Water Disposal | |||
Related Party Transactions (Textual) [Abstract] | |||
Revenue from related party | 0 | 0 | 12 |
AES | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | 1,012 | 1,889 | 1,861 |
FCJ Management | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | 0 | 15 | 27 |
Animas Holding Inc | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | 172 | 225 | 265 |
CJW Group, LLC | |||
Related Party Transactions (Textual) [Abstract] | |||
Related party transaction, purchases from related party | 38 | 38 | 13 |
SB Factoring LLC | |||
Related Party Transactions (Textual) [Abstract] | |||
Other payments to related party | $ 402 | $ 1,900 | $ 3,863 |
Commitments and Contingencies -
Commitments and Contingencies - Concentration of Risk (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Insurance coverage | $ 250,000 | ||
Five Largest Customers | Consolidated Revenues | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Risk percent | 56.80% | 48.50% | 42.70% |
Five Largest Customers | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Risk percent | 58.00% | 44.80% | |
Ten Largest Customers | Consolidated Revenues | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Risk percent | 70.10% | 67.00% | 56.60% |
Ten Largest Customers | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Risk percent | 69.80% | 62.60% | |
Largest Customer | Consolidated Revenues | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Risk percent | 16.20% | 17.20% | 18.80% |
Largest Customer | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Risk percent | 22.90% | 16.50% |
Commitments and Contingencies60
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain Contingencies [Line Items] | |||
Limit excess policy | $ 10,000,000 | ||
Claims made in excess amount | $ 500,000 | ||
Percent of paid claims | 15.00% | ||
Letters of credit outstanding | $ 9,000,000 | ||
Rent expense | 7,800,000 | $ 16,000,000 | $ 20,600,000 |
Auto Liability and General Liability Insurances | |||
Gain Contingencies [Line Items] | |||
Self insurance reserve basic coverage | 250,000 | ||
Auto Liability | |||
Gain Contingencies [Line Items] | |||
Self insurance reserve basic coverage | 1,000,000 | ||
Employee Group Medical Plan | |||
Gain Contingencies [Line Items] | |||
Self insurance reserve basic coverage | 150,000 | ||
Self insurance reserve | $ 7,200,000 | $ 7,300,000 |
Commitments and Contingencies61
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 2,192 |
2,018 | 954 |
2,019 | 691 |
2,020 | 671 |
2021 and thereafter | 3,114 |
Total | 7,622 |
Related Party | |
Operating Leased Assets [Line Items] | |
2,017 | 854 |
2,018 | 133 |
2,019 | 0 |
2,020 | 0 |
2021 and thereafter | 0 |
Total | 987 |
Other | |
Operating Leased Assets [Line Items] | |
2,017 | 1,338 |
2,018 | 821 |
2,019 | 691 |
2,020 | 671 |
2021 and thereafter | 3,114 |
Total | $ 6,635 |
Supplemental Cash Flow Inform62
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid for | |||
Interest | $ 432 | $ 26,009 | $ 26,096 |
Income tax | 0 | 182 | 70 |
Supplemental schedule of non-cash investing and financing activities | |||
Financing of insurance notes | 7,737 | 7,705 | 6,976 |
Change in accounts payable related to capital expenditures | (216) | (1,487) | (2,395) |
Capital leases on equipment | 0 | 527 | 2,144 |
Preferred stock dividends and accretion costs | $ (654) | $ (42) | $ (42) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 0 | $ 15 | $ 238 |
State | 0 | 148 | 641 |
Foreign | (25) | (23) | 18 |
Total current income tax (benefit) expense | (25) | 140 | 897 |
Deferred: | |||
Federal | (96) | (16,562) | (4,008) |
State | 293 | (192) | 51 |
Total deferred income tax expense (benefit) | 197 | (16,754) | (3,957) |
Total income tax expense (benefit) | $ 172 | $ (16,614) | $ (3,060) |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
Income tax benefit at statutory rate of 35% | $ (38,135) | $ (21,941) | $ (3,983) |
Nondeductible expenses | 5,293 | 2,531 | 654 |
State taxes, net of federal benefit | 0 | 60 | 374 |
Change in deferred tax valuation allowance | 33,177 | 2,790 | 0 |
Other | (163) | (54) | (105) |
Total income tax expense (benefit) | $ 172 | $ (16,614) | $ (3,060) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 52,274 | $ 30,991 | |
Foreign tax credits | 796 | 796 | |
Alternative minimum tax credit | 1,228 | 1,228 | |
Share-based compensation | 1,062 | 3,568 | |
Bad debts | 484 | 644 | |
Other | 2,595 | 3,068 | |
Total deferred tax assets | 58,439 | 40,295 | |
Less: valuation allowance | (36,762) | (3,586) | $ (800) |
Total deferred tax assets, net | 21,677 | 36,709 | |
Deferred tax liabilities: | |||
Tax over book depreciation | (21,411) | (30,689) | |
Intangible assets | (1,362) | (6,919) | |
Total deferred tax liabilities | (22,773) | (37,608) | |
Net deferred tax liability | $ (1,096) | $ (899) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Decrease related to stock based compensation | $ 2,000 | ||
Valuation allowance | $ 36,762 | 3,586 | $ 800 |
Change in deferred tax valuation allowance | 33,177 | $ 2,790 | $ 0 |
United States | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 149,200 |
Earning (loss) per Share - Narr
Earning (loss) per Share - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Stock options outstanding (in shares) | 602,625 | 614,125 | 1,148,625 |
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Stock earnings allocation | $ 0 | $ 0 | |
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 1,358,324 | 637,495 |
Common Stock, Shares, Equivalent of Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 5,292,531 | 5,292,531 | 5,292,531 |
Earning (loss) per Share - Comp
Earning (loss) per Share - Computation of Basic and Diluted Gain (Loss) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net loss | $ (109,129) | $ (46,074) | $ (8,321) | ||||||||
Preferred stock dividends and accretion | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | $ (194) | (776) | (776) | (776) |
Net loss attributable to common shareholders | $ (109,905) | $ (46,850) | $ (9,097) | ||||||||
Weighted-average common shares (in shares) | 22,214 | 22,071 | 21,749 | ||||||||
Basic and diluted loss per share (in usd per share) | $ (1.04) | $ (1.05) | $ (1.75) | $ (1.11) | $ (0.79) | $ (0.62) | $ (0.41) | $ (0.30) | $ (4.95) | $ (2.12) | $ (0.42) |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)swabbing_rigworkover_rigcoiled_tubing_spreadwell_servicing_rig | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)swabbing_rigworkover_rigcoiled_tubing_spreadsegmentwell_servicing_rig | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
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 | |||||||||
Operating revenues | $ 28,006 | $ 27,857 | $ 28,411 | $ 31,931 | $ 41,407 | $ 55,557 | $ 62,810 | $ 84,333 | $ 116,205 | $ 244,107 | $ 449,278 |
Direct operating costs | 104,023 | 192,419 | 341,053 | ||||||||
Segment operating profits | 12,182 | 51,688 | 108,225 | ||||||||
Depreciation and amortization | 52,374 | 55,034 | 54,959 | ||||||||
Loss on impairment of assets | 14,500 | 14,537 | 0 | 0 | |||||||
Capital expenditures | 8,701 | 8,608 | 37,626 | ||||||||
Total assets | 312,881 | 409,154 | 312,881 | 409,154 | 1,132,856 | ||||||
Long lived assets | 233,362 | 277,029 | 233,362 | 277,029 | 322,663 | ||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
General and administrative | 18,832 | 31,591 | 36,428 | ||||||||
Depreciation and amortization | 52,374 | 55,034 | 54,959 | ||||||||
Loss on impairment of assets | 14,500 | 14,537 | 0 | 0 | |||||||
Reorganization costs | 7,548 | 0 | 0 | ||||||||
Operating (loss) income | (15,551) | $ (16,273) | $ (31,790) | $ (17,495) | (17,217) | $ (11,218) | $ (6,858) | $ 356 | (81,109) | (34,937) | 16,838 |
Other income and expenses, net | (27,848) | (27,751) | (28,219) | ||||||||
Pre-tax loss | (108,957) | (62,688) | (11,381) | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Total assets | 1,045,753 | 1,133,607 | 1,045,753 | 1,133,607 | |||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
Operating (loss) income | 12,182 | 51,688 | 108,225 | ||||||||
Operating Segments | Well Servicing | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Operating revenues | 70,921 | 150,949 | 285,338 | ||||||||
Direct operating costs | 61,279 | 117,514 | 213,278 | ||||||||
Segment operating profits | 9,642 | 33,435 | 72,060 | ||||||||
Depreciation and amortization | 26,246 | 25,914 | 24,396 | ||||||||
Loss on impairment of assets | 25 | ||||||||||
Capital expenditures | 4,293 | 4,844 | 16,263 | ||||||||
Total assets | 611,090 | 662,819 | 611,090 | 662,819 | 646,912 | ||||||
Long lived assets | 142,509 | 165,416 | 142,509 | 165,416 | 188,726 | ||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
Depreciation and amortization | 26,246 | 25,914 | 24,396 | ||||||||
Loss on impairment of assets | 25 | ||||||||||
Operating Segments | Fluid Logistics | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Operating revenues | 45,284 | 93,158 | 163,940 | ||||||||
Direct operating costs | 42,744 | 74,905 | 127,775 | ||||||||
Segment operating profits | 2,540 | 18,253 | 36,165 | ||||||||
Depreciation and amortization | 26,128 | 29,120 | 30,563 | ||||||||
Loss on impairment of assets | 14,512 | ||||||||||
Capital expenditures | 4,408 | 3,764 | 21,363 | ||||||||
Total assets | 434,663 | 470,788 | 434,663 | 470,788 | 485,944 | ||||||
Long lived assets | 90,853 | 111,613 | 90,853 | 111,613 | 133,937 | ||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
Depreciation and amortization | 26,128 | 29,120 | 30,563 | ||||||||
Loss on impairment of assets | 14,512 | ||||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Depreciation and amortization | 52,374 | 55,034 | 54,959 | ||||||||
Loss on impairment of assets | 14,537 | 0 | 0 | ||||||||
Segment Reporting Information, Additional Elements for Bank Presentation [Abstract] | |||||||||||
General and administrative | 18,832 | 31,591 | 36,428 | ||||||||
Depreciation and amortization | 52,374 | 55,034 | 54,959 | ||||||||
Loss on impairment of assets | 14,537 | 0 | 0 | ||||||||
Reorganization costs | 7,548 | 0 | $ 0 | ||||||||
Elimination of internal transactions | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Total assets | (1,935,640) | (1,894,434) | (1,935,640) | (1,894,434) | |||||||
Parent | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Total assets | $ 1,202,768 | $ 1,169,981 | $ 1,202,768 | $ 1,169,981 |
Equity Securities (Details)
Equity Securities (Details) - USD ($) $ / shares in Units, $ in Thousands | May 28, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||
Voting right, vote per share | 1 | |||
Conversion of stock, conversion ratio (in shares) | 900.00% | |||
Preferred shares dividends and accretion costs | $ 654 | $ 42 | $ 42 | |
Series B Senior Convertible Preferred Shares | ||||
Class of Stock [Line Items] | ||||
Series B preferred shares, authorized (in shares) | 825,000 | |||
Series B preferred shares, par value (in usd per share) | $ 0.01 | |||
Number of shares outstanding | 588,059 | 588,059 | ||
Redemption amount if Series B preferred stock is redeemed | $ 15,600 | |||
Preferred stock dividend rate, percentage | 5.00% | |||
Preferred stock, redemption price per share (in usd per share) | $ 25 | |||
Preferred stock redemption, minimum weighted average, price per share five day volume (in usd per share) | $ 3.33 | |||
Preferred shares dividends and accretion costs | $ 800 | $ 800 | $ 800 | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, shares, conversion of convertible securities (in shares) | 5,292,531 | |||
Minimum | ||||
Class of Stock [Line Items] | ||||
Common stock owned, percent | 20.00% | |||
Convertible Preferred Stock Subject to Mandatory Redemption | Series B Senior Convertible Preferred Shares | ||||
Class of Stock [Line Items] | ||||
Financial instruments subject to mandatory redemption, settlement terms, fair value of common stock, percent | 95.00% |
Supplemental Financial Inform71
Supplemental Financial Information Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $ 28,006 | $ 27,857 | $ 28,411 | $ 31,931 | $ 41,407 | $ 55,557 | $ 62,810 | $ 84,333 | $ 116,205 | $ 244,107 | $ 449,278 |
Operating loss | (15,551) | (16,273) | (31,790) | (17,495) | (17,217) | (11,218) | (6,858) | 356 | (81,109) | (34,937) | 16,838 |
Net loss | (22,766) | (23,209) | (38,686) | (24,468) | (17,382) | (13,510) | (8,748) | (6,434) | (109,129) | (46,074) | (8,321) |
Preferred stock dividends | (194) | (194) | (194) | (194) | (194) | (194) | (194) | (194) | $ (776) | $ (776) | $ (776) |
Loss attributable to common shares | $ (22,960) | $ (23,403) | $ (38,880) | $ (24,662) | $ (17,576) | $ (13,704) | $ (8,942) | $ (6,628) | |||
Basic and diluted (in usd per share) | $ (1.04) | $ (1.05) | $ (1.75) | $ (1.11) | $ (0.79) | $ (0.62) | $ (0.41) | $ (0.30) | $ (4.95) | $ (2.12) | $ (0.42) |
Loss on impairment of assets | $ 14,500 | $ 14,537 | $ 0 | $ 0 | |||||||
Decrease related to stock based compensation | $ 2,000 | ||||||||||
Scenario, Previously Reported | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net loss | $ (19,382) | $ (13,510) | $ (8,748) | $ (4,434) | |||||||
Loss attributable to common shares | $ (19,576) | $ (13,704) | $ (8,942) | $ (4,628) | |||||||
Basic and diluted (in usd per share) | $ (0.88) | $ (0.62) | $ (0.41) | $ (0.21) | |||||||
Restatement Adjustment | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net loss | $ 2,000 | $ 0 | $ 0 | $ (2,000) | |||||||
Loss attributable to common shares | $ 2,000 | $ 0 | $ 0 | $ (2,000) | |||||||
Basic and diluted (in usd per share) | $ 0.09 | $ 0 | $ 0 | $ (0.09) |