Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Forbes Energy Services Ltd. | |
Entity Central Index Key | 0001434842 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 5,446,447 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,030 | $ 8,083 |
Cash - restricted | 73 | 73 |
Accounts receivable - trade, net | 42,468 | 45,950 |
Accounts receivable - other | 2,552 | 2,228 |
Prepaid expenses and other current assets | 10,516 | 14,691 |
Total current assets | 56,639 | 71,025 |
Property and equipment, net | 138,780 | 148,608 |
Operating lease right-of-use assets | 5,785 | 0 |
Intangible assets, net | 13,195 | 13,980 |
Goodwill | 19,700 | 19,700 |
Other assets | 2,020 | 3,072 |
Total assets | 236,119 | 256,385 |
Current liabilities | ||
Accrued interest payable | 9,955 | 17,841 |
Accrued interest payable | 2,646 | 1,993 |
Accrued expenses | 12,633 | 14,348 |
Current portion of operating lease liabilities | 756 | 0 |
Current portion of long-term debt | 60,273 | 59,321 |
Total current liabilities | 86,263 | 93,503 |
Long-term operating lease liabilities, net of current portion | 5,029 | 0 |
Long-term debt, net of current portion and debt discount | 74,928 | 71,095 |
Deferred tax liability | 343 | 357 |
Total liabilities | 166,563 | 164,955 |
Commitments and contingencies (Note 7) | ||
Common stock, $0.01 par value, 40,000 shares authorized, 5,446 and 5,439 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 54 | 54 |
Additional paid-in capital | 150,477 | 149,968 |
Accumulated deficit | (80,975) | (58,592) |
Total stockholders’ equity | 69,556 | 91,430 |
Total liabilities and stockholders’ equity | $ 236,119 | $ 256,385 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 5,446,000 | 5,439,000 |
Common stock, shares outstanding (in shares) | 5,446,000 | 5,439,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | $ 51,065 | $ 41,241 | $ 109,453 | $ 76,832 |
Expenses | ||||
General and administrative | 5,417 | 5,908 | 12,242 | 10,796 |
Depreciation and amortization | 7,013 | 7,652 | 16,452 | 14,815 |
Total expenses | 56,078 | 48,035 | 118,481 | 89,790 |
Operating loss | (5,013) | (6,794) | (9,028) | (12,958) |
Other income (expense) | ||||
Interest income | 1 | 0 | 4 | 2 |
Interest expense | (5,723) | (2,426) | (13,409) | (4,793) |
Pre-tax loss | (10,735) | (9,220) | (22,433) | (17,749) |
Income tax expense (benefit) | 14 | (454) | (50) | (454) |
Net loss | $ (10,749) | $ (8,766) | $ (22,383) | $ (17,295) |
Net loss | ||||
Basic and diluted (in USD per share) | $ (1.97) | $ (1.64) | $ (4.11) | $ (3.24) |
Weighted average number of shares of common stock outstanding: | ||||
Basic and diluted (in shares) | 5,446 | 5,336 | 5,444 | 5,336 |
Operating Segments | ||||
Revenues | $ 51,065 | $ 41,241 | $ 109,453 | $ 76,832 |
Expenses | ||||
Direct operating costs | 43,648 | 34,475 | 89,787 | 64,179 |
Operating loss | 7,417 | 6,766 | 19,666 | 12,653 |
Well Servicing | ||||
Revenues | 25,762 | 20,415 | 50,512 | 38,069 |
Expenses | ||||
Depreciation and amortization | 2,783 | 2,688 | 4,959 | 5,124 |
Well Servicing | Operating Segments | ||||
Revenues | 25,762 | 20,415 | 50,512 | 38,069 |
Expenses | ||||
Direct operating costs | 20,971 | 17,116 | 38,520 | 31,968 |
Operating loss | 4,791 | 3,299 | 11,992 | 6,101 |
Coiled Tubing | ||||
Revenues | 13,292 | 6,960 | 33,302 | 12,162 |
Expenses | ||||
Depreciation and amortization | 2,531 | 1,498 | 6,069 | 2,794 |
Coiled Tubing | Operating Segments | ||||
Revenues | 13,292 | 6,960 | 33,302 | 12,162 |
Expenses | ||||
Direct operating costs | 13,854 | 6,208 | 31,792 | 10,371 |
Operating loss | (562) | 752 | 1,510 | 1,791 |
Fluid Logistics | ||||
Revenues | 12,011 | 13,866 | 25,639 | 26,601 |
Expenses | ||||
Depreciation and amortization | 1,699 | 3,466 | 5,424 | 6,897 |
Fluid Logistics | Operating Segments | ||||
Revenues | 12,011 | 13,866 | 25,639 | 26,601 |
Expenses | ||||
Direct operating costs | 8,823 | 11,151 | 19,475 | 21,840 |
Operating loss | $ 3,188 | $ 2,715 | $ 6,164 | $ 4,761 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (22,383) | $ (17,295) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 16,452 | 14,815 |
Share-based compensation | 509 | 498 |
Deferred tax benefit | (14) | (17) |
Gain on disposal of assets | (2,437) | (67) |
Bad debt expense | 243 | 54 |
Amortization of debt discount/deferred financing costs/premium conversion | 4,391 | 413 |
Interest paid in kind | 4,699 | 1,845 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,915 | (5,311) |
Prepaid expenses and other assets | (17) | (423) |
Accounts payable - trade | (7,886) | 1,393 |
Accounts payable - related parties | 0 | (11) |
Accrued expenses | (1,742) | 1,488 |
Accrued interest payable | 653 | (257) |
Net cash used in operating activities | (4,617) | (2,875) |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | (9,700) | (7,044) |
Proceeds from sale of property and equipment | 8,651 | 510 |
Net cash used in investing activities | (1,049) | (6,534) |
Cash flows from financing activities: | ||
Payments for finance leases | (2,387) | (987) |
Proceeds from Revolving Loan Agreement | 6,000 | 0 |
Payments on Term Loan Agreement | (5,000) | 0 |
Payments for Bridge Loan | (4,422) | 0 |
Proceeds from PIK Notes | 4,422 | 0 |
Net cash used in financing activities | (1,387) | (987) |
Net decrease in cash, cash equivalents and cash - restricted | (7,053) | (10,396) |
Cash, cash equivalents and cash - restricted: | ||
Beginning of period | 8,156 | 35,480 |
End of period | $ 1,103 | $ 25,084 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Stockholders Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2017 | 5,336 | |||
Beginning balance at Dec. 31, 2017 | $ 122,934 | $ 53 | $ 148,866 | $ (25,985) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation | 251 | 251 | ||
Net loss | (8,529) | (8,529) | ||
Ending balance (in shares) at Mar. 31, 2018 | 5,336 | |||
Ending balance at Mar. 31, 2018 | 114,656 | $ 53 | 149,117 | (34,514) |
Beginning balance (in shares) at Dec. 31, 2017 | 5,336 | |||
Beginning balance at Dec. 31, 2017 | 122,934 | $ 53 | 148,866 | (25,985) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (17,295) | |||
Ending balance (in shares) at Jun. 30, 2018 | 5,336 | |||
Ending balance at Jun. 30, 2018 | 106,137 | $ 53 | 149,364 | (43,280) |
Beginning balance (in shares) at Mar. 31, 2018 | 5,336 | |||
Beginning balance at Mar. 31, 2018 | 114,656 | $ 53 | 149,117 | (34,514) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation | 247 | 247 | ||
Net loss | (8,766) | (8,766) | ||
Ending balance (in shares) at Jun. 30, 2018 | 5,336 | |||
Ending balance at Jun. 30, 2018 | 106,137 | $ 53 | 149,364 | (43,280) |
Beginning balance (in shares) at Dec. 31, 2018 | 5,439 | |||
Beginning balance at Dec. 31, 2018 | 91,430 | $ 54 | 149,968 | (58,592) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation | 253 | 253 | ||
Net loss | (11,634) | (11,634) | ||
Ending balance (in shares) at Mar. 31, 2019 | 5,446 | |||
Ending balance at Mar. 31, 2019 | 80,049 | $ 54 | 150,221 | (70,226) |
Beginning balance (in shares) at Dec. 31, 2018 | 5,439 | |||
Beginning balance at Dec. 31, 2018 | 91,430 | $ 54 | 149,968 | (58,592) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation (shares) | 7 | |||
Net loss | (22,383) | |||
Ending balance (in shares) at Jun. 30, 2019 | 5,446 | |||
Ending balance at Jun. 30, 2019 | 69,556 | $ 54 | 150,477 | (80,975) |
Beginning balance (in shares) at Mar. 31, 2019 | 5,446 | |||
Beginning balance at Mar. 31, 2019 | 80,049 | $ 54 | 150,221 | (70,226) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation | 256 | 256 | ||
Net loss | (10,749) | (10,749) | ||
Ending balance (in shares) at Jun. 30, 2019 | 5,446 | |||
Ending balance at Jun. 30, 2019 | $ 69,556 | $ 54 | $ 150,477 | $ (80,975) |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Nature of Operations 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. As used in these condensed consolidated financial statements, the “Company”, “we” and “our” mean FES Ltd. and its subsidiaries, except as otherwise indicated. Estimates, Risks 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 its ability to (1) maintain adequate equipment utilization, (2) maintain adequate pricing for the services it provides, and (3) maintain a trained workforce. 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 as the Company, the Company's operations are also susceptible to market volatility resulting from economic, cyclical, weather, or other factors related to such industry. The Company is subject to changes in the level of operating and capital spending in the industry, decreases in oil and natural gas prices, and/or industry perception about future oil and natural gas prices that may materially decrease demand for the Company's services, or may have an adverse effect on our financial position, results of operations and cash flows. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Interim Financial Information The unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, for interim financial reporting. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, these condensed consolidated financial statements should be read along with the annual audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments which are of normal recurring natures considered necessary for a fair representation have been made in the accompanying unaudited financial statements. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation with no material effect on the unaudited condensed consolidated financial statements. 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 and insurance notes approximate fair value because of the short maturity of these instruments. The fair values of finance leases approximate their carrying values, based on current market rates at which the Company could borrow funds with similar maturities (Level 2 in the fair value hierarchy). The fair values of the Term Loan Agreement, Bridge Loan and the PIK Notes as of the respective dates are set forth below (in thousands): June 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term Loan Agreement $ 60,850 $ 64,198 $ 62,335 $ 65,794 Bridge Loan $ — $ — $ 49,568 $ 50,000 PIK Notes $ 54,131 $ 61,919 $ — $ — Cash, Cash Equivalents and Cash - Restricted The following table provides a reconciliation of cash, cash equivalents and cash - restricted reported within the consolidated balance sheets to the same such amounts shown in the consolidated statements of cash flows (in thousands). June 30, 2019 2018 Cash and cash equivalents $ 1,030 $ 5,383 Cash - restricted 73 19,701 Cash and cash equivalents and cash - restricted as shown in the consolidated statement of cash flows $ 1,103 $ 25,084 The Company's restricted cash at June 30, 2018 included $11.0 million related to a prior restriction under the Term Loan Agreement and $8.7 million as collateral for certain outstanding letters of credit and the Company's corporate credit card program under a prior credit facility with Regions. Revenue Recognition Revenue is measured as consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by providing service to a customer. Amounts are billed upon completion of service and are generally due within 30 days. The Company has its principal revenue generating activities organized into three service lines, well servicing, coiled tubing and fluid logistics. The Company's well servicing line consists primarily of maintenance, workover, completion, plugging and abandonment, and tubing testing services. The Company's coiled tubing line consists of maintenance, workover and completion services. The Company's fluid logistics line provides supporting services to the well servicing line as well as direct sales to customers for fluid management and movement. The Company generally establishes a master services agreement with each customer and provides associated services on a work order basis in increments of days, by the hour for services performed or on occasion, bid/turnkey pricing. Services provided under the well servicing, coiled tubing and the fluid logistics segments are short in duration and generally completed within 30 days. The majority of the Company’s contracts with customers in the well servicing, coiled tubing and fluid logistics segments are short-term in nature and are recognized as “over-time” performance obligations as the services are performed. The Company applies the “as-invoiced” practical expedient as the amount of consideration the Company has a right to invoice corresponds directly with the value of the Company’s performance to date. Because of the short-term nature of the Company’s services, which generally last a few hours to multiple days, the Company does not have any contracts with a duration longer than one year that require disclosure. The Company has no material contract assets or liabilities. The Company does not have any revenue expected to be recognized in the future related to remaining performance obligations or contracts with variable consideration related to undelivered performance obligations. There was no revenue recognized in the current period from performance obligations satisfied in previous periods. The Company's significant judgments made in connection with the adoption of ASC 606 included the determination of when the Company satisfies its performance obligation to customers and the applicability of the as invoiced practical expedient. Leases Effective January 1, 2019, the Company adopted an accounting standard update issued by the Financial Accounting Standards Board (FASB) related to accounting for leases, which requires lessees to record assets and liabilities that arise for all leases on their balance sheet and expanded financial statement disclosures for both lessees and lessors. Previously, only capital leases were recorded on the balance sheet. This update requires lessees to recognize a lease liability equal to the present value of its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and instead recognize lease expense for such leases generally on a straight-line basis over the lease term. Leases with a term of longer than 12 months will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted this standard on a prospective basis using the optional modified retrospective transition method. As such, the comparative financial information has not been restated and continues to be reported under the lease standard in effect during those periods. The Company also elected other practical expedients provided by the new standard, including the package of practical expedients, the hindsight practical expedient and the short-term lease recognition practical expedient in which leases with a term of 12 months or less are not recognized on the balance sheet. The adoption of this standard resulted in the recognition of approximately $6.2 million of operating lease right-of-use assets and operating lease liabilities on the balance sheet as of January 1, 2019. The adoption of this standard did not materially impact the condensed consolidated statements of operations for the three and six months ended June 30, 2019 . See Note 8 for the expanded lease disclosures required by the new standard. |
Acquisition of Cretic Energy Se
Acquisition of Cretic Energy Services, LLC | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Cretic Energy Services, LLC | Acquisition of Cretic Energy Services, LLC On November 16, 2018, the Company acquired 100% of the outstanding units of Cretic Energy Services, LLC (Cretic). The acquisition of Cretic was accounted for as a business combination using the acquisition method of accounting. The aggregate purchase price was $69.4 million in cash (net of $2.2 million cash acquired). The purchase price paid in the acquisition has been preliminarily allocated to record the acquired assets and assumed liabilities based on their estimated fair value. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates, judgments and assumptions. Management estimated that consideration paid exceeded the fair value of the net assets acquired. The goodwill recorded was primarily attributable to synergies related to the Company’s coiled tubing business strategy that are expected to arise from the Cretic acquisition and was attributable to the Company’s coiled tubing segment. Proforma Results from the Cretic Acquisition (unaudited) The following unaudited consolidated pro forma information is presented as if the Cretic acquisition had occurred on January 1, 2018 (in thousands): Pro Forma Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Revenue $ 57,611 $ 107,067 Net loss $ (8,926 ) $ (19,498 ) The unaudited pro forma amounts above have been calculated after applying the Company’s accounting policies and adjusting the Cretic acquisition results to reflect the increase to interest expense and depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied from January 1, 2018 and other related pro forma adjustments. The pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the Cretic acquisition, and are presented for illustrative purposes only and are not necessarily indicative of results that would have been achieved if the Cretic acquisition had occurred as of January 1, 2018 or of future operating performance. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (in thousands): Estimated Life in Years June 30, 2019 December 31, 2018 Well servicing equipment 9-15 years $ 132,358 $ 128,647 Autos and trucks 5-10 years 25,375 32,132 Autos and trucks - finance lease 5-10 years 23,198 20,416 Disposal wells 5-15 years 4,159 3,977 Building and improvements 5-30 years 5,901 5,705 Furniture and fixtures 3-15 years 3,032 2,797 Land 868 868 194,891 194,542 Accumulated depreciation (1) (56,111 ) (45,934 ) $ 138,780 $ 148,608 (1) Includes accumulated depreciation of finance lease assets of $6.1 million and $4.5 million at June 30, 2019 and December 31, 2018 , respectively. Depreciation expense was $6.7 million and $7.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $15.7 million and $14.2 million for the six months ended June 30, 2019 and 2018 , respectively. Depreciation of assets held under finance leases was $1.1 million and $0.7 million for the three months ended June 30, 2019 and 2018 , respectively, and $2.3 million and $1.4 million for the six months ended June 30, 2019 and 2018 , respectively, and is included in depreciation and amortization expense in the accompanying condensed consolidated statements of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill totaled $19.7 million at June 30, 2019 and December 31, 2018 related to the acquisition of Cretic and is deductible for tax purposes. Other Intangible Assets The following table sets forth the identified other intangible assets by major asset class (in thousands): Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value June 30, 2019 Customer relationships 6-15 $ 11,378 $ (1,318 ) $ 10,060 Trade names 10-15 3,072 (608 ) 2,464 Covenants not to compete 4 1,505 (834 ) 671 $ 15,955 $ (2,760 ) $ 13,195 December 31, 2018 Customer relationships 6-15 $ 11,378 $ (832 ) $ 10,546 Trade names 10-15 3,072 (496 ) 2,576 Covenants not to compete 4 1,505 (647 ) 858 $ 15,955 $ (1,975 ) $ 13,980 Amortization expense was $0.3 million and $0.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.8 million and $0.6 million for the six months ended June 30, 2019 and 2018 , respectively. Future amortization of these intangibles will be as follows: 2019 $ 819 2020 1,637 2021 1,367 2022 1,261 2023 1,261 Thereafter 6,850 $ 13,195 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 Term Loan Agreement of $55.0 million and $60.0 million, plus $8.9 million and $6.0 million of accrued interest paid in kind and net of debt discount of $3.0 million and $3.6 million as of June 30, 2019 and December 31, 2018, respectively $ 60,850 $ 62,335 PIK Notes, including $2.4 million accretion of interest and conversion premium 54,131 — Bridge Loan of $50.0 million, net of debt discount of $0.4 million as of December 31, 2018 — 49,568 Revolving Loan Agreement 6,000 — Finance leases 13,258 13,319 Insurance notes 962 5,194 Total debt 135,201 130,416 Less: Current portion (60,273 ) (59,321 ) Total long-term debt $ 74,928 $ 71,095 Term Loan Agreement On April 13, 2017, the Company entered into the Term Loan Agreement. FES LLC is the borrower, or the Borrower, under the Term Loan Agreement. The Borrower’s obligations have been guaranteed by FES Ltd. and by TES, CCF and FEI, each direct subsidiaries of the Borrower and indirect subsidiaries of FES Ltd. The Term Loan Agreement, as amended, provides for a term loan of $60.0 million , excluding paid in kind interest. Subject to certain exceptions and permitted encumbrances, the obligations under the Term Loan Agreement are secured by a first priority security interest in substantially all the assets of the Company other than accounts receivable, cash and related assets, which constitute priority collateral under the Revolving Loan Agreement (described below). The Term Loan Agreement has a stated maturity date of April 13, 2021. Borrowings under the Term Loan Agreement bear interest at a rate equal to five percent ( 5% ) per annum payable quarterly in cash, or the Cash Interest Rate, plus (ii) an initial paid in kind interest rate of seven percent ( 7% ) commencing April 13, 2017 to be capitalized and added to the principal amount of the term loan or, at the election of the Borrower, paid in cash. The paid in kind interest increases by two percent ( 2% ) twelve months after April 13, 2017 and every twelve months thereafter until maturity. Upon and after the occurrence of an event of default, the Cash Interest Rate will increase by two percentage points per annum. During the six months ended June 30, 2019 , $ 2.9 million of interest was paid in kind. At June 30, 2019 , the paid in kind interest rate was 11% . The Term Loan Agreement includes customary negative covenants for an asset-based term loan, including covenants limiting the ability of the Company to, among other things, (i) effect mergers and consolidations, (ii) sell assets, (iii) create or suffer to exist any lien, (iv) make certain investments, (v) incur debt and (vi) transact with affiliates. In addition, the Term Loan Agreement includes customary affirmative covenants for an asset-based term loan, including covenants regarding the delivery of financial statements, reports and notices to the Agent. The Term Loan Agreement also contains customary representations and warranties and event of default provisions for a secured term loan. Amendment to Term Loan Agreement and Joinder In connection with the Cretic acquisition, on November 16, 2018, the Company, as a guarantor, FES LLC, as borrower, and certain of their subsidiaries, as guarantors, entered into Amendment No. 1 to Loan and Security Agreement and Pledge and Security Agreement (the “Term Loan Amendment”) with the lenders party thereto and Wilmington Trust, National Association, as agent (the “Term Loan Agent”), pursuant to which the Term Loan Agreement, was amended to, among other things, permit (i) debt under the Revolving Loan Agreement (described below) and the liens securing the obligations thereunder, (ii) the incurrence of add-on term loans under the Term Loan Agreement in an aggregate principal amount of $10.0 million and (iii) the incurrence of one -year “last-out” bridge loans under the Term Loan Agreement in an aggregate principal amount of $50.0 million (the “Bridge Loan”). In addition, on November 16, 2018, Cretic entered into joinder documentation pursuant to which it became a guarantor under the Term Loan Agreement and a pledgor under the Pledge and Security Agreement referred to in the Term Loan Agreement. Revolving Loan Agreement In connection with the Cretic Acquisition, on November 16, 2018, the Company and certain of its subsidiaries, as borrowers, entered into a Credit Agreement (the “Revolving Loan Agreement”) with the lenders party thereto and Regions Bank, as administrative agent and collateral agent (the “Revolver Agent”). The Revolving Loan Agreement provides for $35 million of revolving loan commitments, subject to a borrowing base comprised of 85% of eligible accounts receivable, 90% of eligible investment grade accounts receivable and 100% of eligible cash, less reserves. The loans under the Revolving Loan Agreement accrue interest at a floating rate of LIBOR plus 2.50% - 3.25% , or a base rate plus 1.50% - 2.25% , with the margin based on the fixed charge coverage ratio from time to time. The Revolving Loan Agreement is secured on a first lien basis by substantially all assets of the Company and its subsidiaries, subject to an intercreditor agreement between the Revolver Agent and the Term Loan Agent which provides that the priority collateral for the Revolving Loan Agreement consists of accounts receivable, cash and related assets, and that the other assets of the Company and its subsidiaries constitute priority collateral for the Term Loan Agreement. At June 30, 2019 we had $6.0 million borrowings outstanding, $6.1 million in letters of credit outstanding and availability of $9.9 million . 5% Subordinated Convertible PIK Notes On March 4, 2019, the Company issued $51.8 million aggregate original principal amount of 5.00% Subordinated Convertible PIK Notes due June 30, 2020 (the “PIK Notes”). On March 4, 2019, the Company, as Issuer, and Wilmington Trust, National Association, as Trustee, entered into an Indenture governing the terms of the PIK Notes. The PIK Notes bear interest at a rate of 5.00% per annum. Interest on the PIK Notes will be capitalized to principal semi-annually in arrears on July 1 and January 1 of each year, commencing on July 1, 2019. The PIK Notes are the unsecured general subordinated obligations of the Company and are subordinated in right of payment to any existing and future secured or unsecured senior debt of the Company. The payment of the principal of, premium, if any, and interest on the PIK Notes will be subordinated to the prior payment in full of all of the Company’s existing and future senior indebtedness. In the event of a liquidation, dissolution, reorganization or any similar proceeding, obligations on the PIK Notes will be paid only after senior indebtedness has been paid in full. Pursuant to the Indenture, the Company is not permitted to (1) make cash payments to pay principal of, premium, if any, and interest on or any other amounts owing in respect of the PIK Notes, or (2) purchase, redeem or otherwise retire the PIK Notes for cash, if any senior indebtedness is not paid when due or any other default on senior indebtedness occurs and the maturity of such indebtedness is accelerated in accordance with its terms unless, in any case, the default has been cured or waived, and the acceleration has been rescinded or the senior indebtedness has been repaid in full. The Indenture also provides that upon a default by the Company in the payment when due of principal of, or premium, if any, or interest on, indebtedness in the aggregate principal amount then outstanding of $5.0 million or more, or acceleration of the Company’s indebtedness so that it becomes due and payable before the date on which it would otherwise have become due and payable, and if such default is not cured or waived within 30 days after notice to the Company by the Trustee or by holders of at least 25% in aggregate principal amount of the PIK Notes then outstanding, the principal of, (and premium, if any) and accrued and unpaid interest on, the PIK Notes may be declared immediately due and payable. The PIK Notes are redeemable in whole or from time to time in part at the Company’s option at a redemption price equal to the sum of (i) 100.0% of the principal amount of the PIK Notes to be redeemed and (ii) accrued and unpaid interest thereon to, but excluding, the redemption date, which amounts may be payable in cash or in shares of the Company’s common stock, (subject to limitations, if any, in the documentation governing the Company’s senior indebtedness). If redeemed for the Company’s common stock the holder will receive a number of shares of the Company’s common stock calculated based on the Fair Market Value of a share of the Company’s common stock at such time, in each case less a 15% discount per share. The 15% discount represents an implied conversion premium at issuance which will be settled in common stock at the date of conversion. As such, the face value of the PIK Notes will be accreted to the settlement amount at June 30, 2020. For the three and six months ended June 30, 2019, the Company recorded $1.8 million and $2.4 million , respectively in interest expense related to the accretion of the conversion premium. The Indenture contains provisions permitting the Company and the trustee in certain circumstances, without the consent of the holders of the PIK Notes, and in certain other circumstances, with the consent of the holders of not less than a majority in aggregate principal amount of the PIK Notes at the time outstanding to execute supplemental indentures modifying the terms of the Indenture and the PIK Notes as described It also provided in the Indenture that, subject to certain exceptions, the holders of a majority in aggregate principal amount of the PIK Notes at the time outstanding may on behalf of the holders of all the PIK Notes waive any past default or event of default under the Indenture and its consequences. The Indenture provides for mandatory conversion of the PIK Notes at maturity (or such earlier date as the Company shall elect to redeem the PIK Notes), or upon a Marketed Public Offering of the Company’s common stock or a Change of Control, in each case as defined in the Indenture, at a conversion rate per $100 principal amount of PIK Notes into a number of shares of the Company’s common stock calculated based on the Fair Market Value of a share of the Company’s common stock at such time, in each case less a 15% discount per share. Fair Market Value means fair market value as determined by (A) in the case of a Marketed Public Offering, the offering price per share paid by public investors in the Marketed Public Offering, (B) in the case of a Change of Control, the value of the consideration paid per share by the acquirer in the Change of Control transaction, or (C) in the case of mandatory conversion at the Maturity Date (or such earlier date as the Company shall elect to redeem the PIK Notes), such value as shall be determined by a nationally recognized investment banking firm engaged by the Board of Directors of the Company. The Company used the gross proceeds of $51.8 million that it received from the issuance of the PIK Notes to repay all of the outstanding principal and accrued and unpaid interest on the Bridge Loan. Interest on the Bridge Loan prior to its repayment accrued at a rate of 14% ( 5% cash interest plus 9% PIK interest). The payment obligations of the Borrower under the Bridge Loan have been fully satisfied as of March 4, 2019. The exchange of the Bridge Loan for the PIK Notes was recognized as a modification of the Term Loan as the amended Term Loan, resulting from the exchange, was not substantially different from the Term Loan. As such, the net carrying value of the Term Loan was not adjusted and a new effective interest that equates the revised cash flows of the modified Term Loan to the existing carrying value of the Term Loan was computed and applied prospectively. Costs incurred with third parties of approximately $1.6 million , related to the issuance of the PIK Notes, were recognized in interest expense for the six months ended June 30, 2019 . Insurance Notes The Company entered into insurance promissory notes for the payment of insurance premiums at an interest rate of 4.99% and 3.27% respectively, with an aggregate principal amount outstanding of approximately $1.0 million and $5.2 million as of June 30, 2019 and December 31, 2018 , respectively. The amount outstanding could be substantially offset by the cancellation of the related insurance coverage which is classified in prepaid insurance. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, 2019 , the Company's largest customer, five largest customers, and ten largest customers constituted 10.0% , 33.8% and 46.5% of consolidated revenues, respectively. The loss of any one of the Company's top five customers could 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 June 30, 2019 , the Company's largest customer, five largest customers, and ten largest customers constituted 4.8% , 27.0% and 44.2% of 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. 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 the currently existing 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. It is reasonably possible that cases could be resolved and result in liabilities that exceed the amounts currently reserved; however, we cannot reasonably estimate a range of loss based on the status of the cases. If one or more negative outcomes were to occur relative to these matters, the aggregate impact to the Company’s financial condition could be material. 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 has an additional premium payable clause under its lead $10 million limit excess policy that states in the event a loss exceeds $1 million , a loss additional premium of up to 15% to 17% of paid losses in excess of $1 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 $5.9 million and $5.2 million as of June 30, 2019 and December 31, 2018 , 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 by using third party data and claims history as of the financial statement dates. Other The Company is currently undergoing sales and use tax audits for multi-year periods. The Company believes the outcome of these audits will not have a material adverse effect on its results of operations or financial position. Because certain of these audits are in a preliminary stage, an estimate of the possible loss or range of loss cannot reasonably be made. |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted a comprehensive new lease accounting standard effective January 1, 2019. The details of the significant changes to our accounting policies resulting from the adoption of the new standard are set out below. The Company adopted the standard on a prospective basis using the optional modified retrospective transition method; accordingly, the comparative information as of December 31, 2018 and for the three and six months ended June 30, 2018 has not been adjusted and continues to be reported under the previous lease standard. Under the new lease standard, assets and liabilities that arise from all leases are required to be recognized on the balance sheet for lessees. Previously, only capital leases, which are now referred to as finance leases, were recorded on the balance sheet. Beginning January 1, 2019, for all leases with a term in excess of 12 months, the Company recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing our right to use the underlying asset for the lease term. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company elected the practical expedient to not recognize lease assets and liabilities. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company has a significant number of short-term leases including month-to-month agreements that continue in perpetuity until the lessor or the Company terminates the lease agreement. The Company is a lessee for operating leases, primarily related to real estate, salt water disposal wells and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. The Company generally does not include renewal or termination options in the assessment of leases unless extension or termination is deemed to be reasonably certain. The accounting for some leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. Salt water disposal well locations have fixed or both fixed and variable lease amounts where the variable lease payments are based on the volume of fluids injected into to the well and/or sales of products by the Company. The Company also has some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The Company is a lessee for finance leases related to autos and trucks and well servicing equipment. The vast majority of the Company's finance leases have remaining lease terms of three years or less, all of which include options to terminate the leases after one year and do not include options to extend the lease. For all finance leases, the Company is subject to a residual value guarantee established by the lessor and based upon the calculated net book value of the vehicle as of the date of early termination of the lease. The loans are collateralized by equipment purchased with the proceeds of such loans. For finance leases, the Company uses discount rates similar to incremental borrowing rates available for comparable equipment financing in our net present value calculation of lease payments. The Company's vehicle finance lease agreements contain lease and non-lease components, which are accounted for separately. The following tables illustrate the financial impact of the Company's leases as of and for the three and six months ended June 30, 2019 , along with other supplemental information about the Company's leases (in thousands, except years and percentages): Three Months Ended Six Months Ended Components of lease expense: Finance lease cost: Amortization of right-of-use assets $ 1,110 $ 2,324 Interest on lease liabilities 154 293 Operating lease cost: Lease expense (1) 367 733 Short-term lease cost 647 1,306 Total lease cost $ 2,278 $ 4,656 (1) Includes variable lease costs of $ 75 thousand and $150 thousand for the three and six months ended June 30, 2019 , respectively. As of June 30, 2019 Components of balance sheet: Operating leases: Operating lease right-of-use assets (non-current) $ 5,785 Current portion of operating lease liabilities $ 756 Long-term operating lease liabilities, net of current portion $ 5,029 Finance leases: Property and equipment, net $ 17,068 Current portion of long-term debt $ 5,180 Long-term debt, net of current portion and debt discount $ 8,078 Three Months Ended Six Months Ended Other supplemental information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,014 $ 2,039 Operating cash flows for finance leases - interest $ 154 $ 293 Financing cash flows for finance leases $ 1,219 $ 2,387 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 6,150 Finance leases $ 890 $ 2,326 Weighted-average remaining lease term: Operating leases 8.5 years Finance leases 2.6 years Weighted-average discount rate: Operating leases 7.50 % Finance leases 4.19 % The following table summarizes the maturity of the Company's operating and finance leases as of June 30, 2019 (in thousands): Operating Leases - Related Party Operating Leases - Other Finance Leases 2019 $ 39 $ 1,235 $ 3,248 2020 58 1,060 5,474 2021 8 1,035 3,974 2022 — 872 1,266 2023 — 747 96 Thereafter — 3,608 — Total minimum lease payments 105 8,557 14,058 Less imputed interest (10 ) (2,166 ) (800 ) Less short-term leases excluded from the balance sheet — (701 ) — Total lease liabilities per balance sheet $ 95 $ 5,690 $ 13,258 The Company adopted ASU 2016-02 on January 1, 2019 as noted above, and as required, the following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 31, 2018 were as follows (in thousands): Operating Leases - Related Party Operating Leases - Other Capital Leases 2019 $ 30 $ 2,027 $ 4,559 2020 30 986 4,334 2021 8 946 3,375 2022 — 781 1,051 2023 — 386 — Thereafter — 1,350 — Total $ 68 $ 6,476 $ 13,319 |
Leases | Leases The Company adopted a comprehensive new lease accounting standard effective January 1, 2019. The details of the significant changes to our accounting policies resulting from the adoption of the new standard are set out below. The Company adopted the standard on a prospective basis using the optional modified retrospective transition method; accordingly, the comparative information as of December 31, 2018 and for the three and six months ended June 30, 2018 has not been adjusted and continues to be reported under the previous lease standard. Under the new lease standard, assets and liabilities that arise from all leases are required to be recognized on the balance sheet for lessees. Previously, only capital leases, which are now referred to as finance leases, were recorded on the balance sheet. Beginning January 1, 2019, for all leases with a term in excess of 12 months, the Company recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing our right to use the underlying asset for the lease term. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company elected the practical expedient to not recognize lease assets and liabilities. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company has a significant number of short-term leases including month-to-month agreements that continue in perpetuity until the lessor or the Company terminates the lease agreement. The Company is a lessee for operating leases, primarily related to real estate, salt water disposal wells and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. The Company generally does not include renewal or termination options in the assessment of leases unless extension or termination is deemed to be reasonably certain. The accounting for some leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. Salt water disposal well locations have fixed or both fixed and variable lease amounts where the variable lease payments are based on the volume of fluids injected into to the well and/or sales of products by the Company. The Company also has some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The Company is a lessee for finance leases related to autos and trucks and well servicing equipment. The vast majority of the Company's finance leases have remaining lease terms of three years or less, all of which include options to terminate the leases after one year and do not include options to extend the lease. For all finance leases, the Company is subject to a residual value guarantee established by the lessor and based upon the calculated net book value of the vehicle as of the date of early termination of the lease. The loans are collateralized by equipment purchased with the proceeds of such loans. For finance leases, the Company uses discount rates similar to incremental borrowing rates available for comparable equipment financing in our net present value calculation of lease payments. The Company's vehicle finance lease agreements contain lease and non-lease components, which are accounted for separately. The following tables illustrate the financial impact of the Company's leases as of and for the three and six months ended June 30, 2019 , along with other supplemental information about the Company's leases (in thousands, except years and percentages): Three Months Ended Six Months Ended Components of lease expense: Finance lease cost: Amortization of right-of-use assets $ 1,110 $ 2,324 Interest on lease liabilities 154 293 Operating lease cost: Lease expense (1) 367 733 Short-term lease cost 647 1,306 Total lease cost $ 2,278 $ 4,656 (1) Includes variable lease costs of $ 75 thousand and $150 thousand for the three and six months ended June 30, 2019 , respectively. As of June 30, 2019 Components of balance sheet: Operating leases: Operating lease right-of-use assets (non-current) $ 5,785 Current portion of operating lease liabilities $ 756 Long-term operating lease liabilities, net of current portion $ 5,029 Finance leases: Property and equipment, net $ 17,068 Current portion of long-term debt $ 5,180 Long-term debt, net of current portion and debt discount $ 8,078 Three Months Ended Six Months Ended Other supplemental information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,014 $ 2,039 Operating cash flows for finance leases - interest $ 154 $ 293 Financing cash flows for finance leases $ 1,219 $ 2,387 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 6,150 Finance leases $ 890 $ 2,326 Weighted-average remaining lease term: Operating leases 8.5 years Finance leases 2.6 years Weighted-average discount rate: Operating leases 7.50 % Finance leases 4.19 % The following table summarizes the maturity of the Company's operating and finance leases as of June 30, 2019 (in thousands): Operating Leases - Related Party Operating Leases - Other Finance Leases 2019 $ 39 $ 1,235 $ 3,248 2020 58 1,060 5,474 2021 8 1,035 3,974 2022 — 872 1,266 2023 — 747 96 Thereafter — 3,608 — Total minimum lease payments 105 8,557 14,058 Less imputed interest (10 ) (2,166 ) (800 ) Less short-term leases excluded from the balance sheet — (701 ) — Total lease liabilities per balance sheet $ 95 $ 5,690 $ 13,258 The Company adopted ASU 2016-02 on January 1, 2019 as noted above, and as required, the following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 31, 2018 were as follows (in thousands): Operating Leases - Related Party Operating Leases - Other Capital Leases 2019 $ 30 $ 2,027 $ 4,559 2020 30 986 4,334 2021 8 946 3,375 2022 — 781 1,051 2023 — 386 — Thereafter — 1,350 — Total $ 68 $ 6,476 $ 13,319 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Management Incentive Plan A summary of the Company's share-based compensation expense during the periods presented are as follows (in thousands): Three Months Ended Six Months Ended Share based compensation expense recognized $ 256 $ 509 As of June 30, 2019 Unrecognized compensation cost (in thousands) $ 2,459 Remaining weighted-average service period (years) 3.00 During the six months ended June 30, 2019 , the Company granted no restricted stock units to officers and employees subject to the Management Incentive Plan. Below is a summary of the unvested restricted stock units. Number of Shares Weighted Average Fair Value Unvested as of December 31, 2018 329,240 $ 9.68 Granted — $ — Vested (7,200 ) $ 11.00 Forfeited — $ — Unvested as of June 30, 2019 322,040 $ 9.99 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company incurred related party expenses, primarily related to lease rents, of $0.2 million and $0.3 million during the three months ended June 30, 2019 and 2018 , respectively, and $0.5 million and $0.6 million for the six months ended June 30, 2019 and 2018 , respectively. There was no related party revenue for the three months ended June 30, 2019 and 2018 or for the six months ended June 30, 2019 and 2018 . There were no related party accounts receivable or accounts payable as of June 30, 2019 or December 31, 2018 . In addition to such related party transactions above, Lawrence “Larry” First, a director of FES Ltd., serves as the Chief Investment Officer and Managing Director of Ascribe Capital LLC, or Ascribe, and Brett G. Wyard, also a director of FES Ltd., serves as a Managing Partner of Solace Capital Partners, or Solace. Ascribe and/or one or more of its affiliates own approximately 23.6% of the outstanding common stock as of June 30, 2019 , and is owed approximately $16.5 million of the aggregate principal amount of the Term Loan Agreement and approximately $27.5 million of the aggregate principle amount of the PIK Notes. Solace and/or one of its affiliates own approximately 17.4% of the outstanding common stock as of June 30, 2019 , and is owed approximately $15.1 million of the aggregate principal amount of the term loan covered by the Term Loan Agreement and approximately $20.3 million of the aggregate principal amount of the PIK Notes. Moreover, an affiliate of Solace and affiliates of Ascribe are parties to certain registration rights agreement by and among the Company and certain stockholders of the Company. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings (loss) per share, or EPS, is computed by dividing net income (loss) available to common stockholders by the weighted-average common stock outstanding during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock, such as restricted stock units or the PIK Notes, were exercised and converted into common stock. Potential common stock equivalents relate to outstanding stock options and unvested restricted stock units, which are determined using the treasury stock method, and the PIK Notes, which were determined using the "if-converted" method. In applying the if-converted method, conversion is not assumed for purposes of computing diluted EPS if the effect would be antidilutive. The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share amounts): Three Months Ended June 30, 2019 2018 Basic and diluted: Net loss $ (10,749 ) $ (8,766 ) Weighted-average common shares 5,446 5,336 Basic and diluted net loss per share $ (1.97 ) $ (1.64 ) Six Months Ended June 30, 2019 2018 Basic and diluted: Net loss $ (22,383 ) $ (17,295 ) Weighted-average common shares 5,444 5,336 Basic and diluted net loss per share $ (4.11 ) $ (3.24 ) There were 322,040 and 363,300 unvested restricted stock units that were not included in the calculation of diluted EPS for the three and six months ended June 30, 2019 and 2018 , respectively, and approximately 28.3 million shares related to the potential conversion of the PIK Notes at June 30, 2019 because their effect would have been antidilutive. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company has three reportable segments organized based on its products and services—well servicing, coiled tubing and fluid logistics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Upon the acquisition of Cretic, we evaluated our segment information and determined that coiled tubing represented a separate segment under our current facts. All prior year segment information has been recast to reflect the change in our segment reporting. Well Servicing The Company's well servicing segment utilizes a fleet of well servicing rigs, which was comprised of workover rigs and swabbing rigs and other related assets and equipment to provide the following services:(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. Coiled Tubing The coiled tubing segment utilizes our fleet of coiled tubing units to provide a range of services accomplishing a wide variety of goals including horizontal completions, well bore clean-outs and maintenance, nitrogen services, thru-tubing services, formation stimulation using acid and other chemicals, and other pre- and post-hydraulic fracturing well preparation services. Fluid Logistics The Company's fluid logistics segment utilizes a fleet of 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 to provide services such as transportation, storage and disposal 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 with respect to the Company’s reportable segments (in thousands): Well Servicing Coiled Tubing Fluid Logistics Total Three Months Ended June 30, 2019 Operating revenues $ 25,762 $ 13,292 $ 12,011 $ 51,065 Direct operating costs 20,971 13,854 8,823 43,648 Segment profits $ 4,791 $ (562 ) $ 3,188 $ 7,417 Depreciation and amortization $ 2,783 $ 2,531 $ 1,699 $ 7,013 Capital expenditures (1) $ 2,724 $ 2,851 $ 1,370 $ 6,945 Three Months Ended June 30, 2018 Operating revenues $ 20,415 $ 6,960 $ 13,866 $ 41,241 Direct operating costs 17,116 6,208 11,151 34,475 Segment profits $ 3,299 $ 752 $ 2,715 $ 6,766 Depreciation and amortization $ 2,688 $ 1,498 $ 3,466 $ 7,652 Capital expenditures (1) $ 2,016 $ 2,304 $ 1,500 $ 5,820 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including finance leases and fixed assets recorded in accounts payable at year-end. Three Months Ended June 30, 2019 2018 Reconciliation of Operating Loss As Reported: Segment profits $ 7,417 $ 6,766 Less: General and administrative expense 5,417 5,908 Depreciation and amortization 7,013 7,652 Operating loss (5,013 ) (6,794 ) Other income (expenses), net (5,722 ) (2,426 ) Pre-tax loss $ (10,735 ) $ (9,220 ) Well Servicing Coiled Tubing Fluid Logistics Total Six Months Ended June 30, 2019 Operating revenues $ 50,512 $ 33,302 $ 25,639 $ 109,453 Direct operating costs 38,520 31,792 19,475 89,787 Segment profits $ 11,992 $ 1,510 $ 6,164 $ 19,666 Depreciation and amortization $ 4,959 $ 6,069 $ 5,424 $ 16,452 Capital expenditures (1) $ 5,167 $ 5,149 $ 1,710 $ 12,026 Total assets $ 75,829 $ 102,190 $ 50,909 $ 228,928 Long lived assets $ 57,078 $ 80,320 $ 39,292 $ 176,690 Six Months Ended June 30, 2018 Operating revenues $ 38,069 $ 12,162 $ 26,601 $ 76,832 Direct operating costs 31,968 10,371 21,840 64,179 Segment profits $ 6,101 $ 1,791 $ 4,761 $ 12,653 Depreciation and amortization $ 5,124 $ 2,794 $ 6,897 $ 14,815 Capital expenditures (1) $ 2,945 $ 5,518 $ 2,494 $ 10,957 Total assets $ 134,527 $ 22,848 $ 30,354 $ 187,729 Long lived assets $ 65,920 $ 17,228 $ 41,618 $ 124,766 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including finance leases and fixed assets recorded in accounts payable at year-end. Six Months Ended June 30, 2019 2018 Reconciliation of Operating Loss As Reported: Segment profits $ 19,666 $ 12,653 Less: General and administrative expense 12,242 10,796 Depreciation and amortization 16,452 14,815 Operating loss (9,028 ) (12,958 ) Other income (expenses), net (13,405 ) (4,791 ) Pre-tax loss $ (22,433 ) $ (17,749 ) June 30, 2019 December 31, 2018 Reconciliation of Total Assets As Reported: Total reportable segments $ 228,928 $ 243,199 Parent 7,191 13,186 Total assets $ 236,119 $ 256,385 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following tables show revenue disaggregated by primary geographical markets and major service lines (in thousands): Three months ended June 30, 2019 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 18,292 $ 4,300 $ 6,035 $ 28,627 East Texas (1) 1,897 — 811 2,708 Central Texas — — 2,976 2,976 West Texas 5,573 8,992 2,189 16,754 Total $ 25,762 $ 13,292 $ 12,011 $ 51,065 Three months ended June 30, 2018 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 11,081 $ 3,799 $ 6,669 $ 21,549 East Texas (1) 1,097 — 577 1,674 Central Texas — — 3,461 3,461 West Texas 8,237 3,161 3,159 14,557 Total $ 20,415 $ 6,960 $ 13,866 $ 41,241 (1) Includes revenues from the Company's operations in Pennsylvania. Six months ended June 30, 2019 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 36,469 $ 9,001 $ 12,207 $ 57,677 East Texas (1) 2,751 — 1,646 4,397 Central Texas — — 6,072 6,072 West Texas 11,292 24,301 5,714 41,307 Total $ 50,512 $ 33,302 $ 25,639 $ 109,453 Six months ended June 30, 2018 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 23,893 $ 7,642 $ 13,297 $ 44,832 East Texas (1) 1,749 — 1,155 2,904 Central Texas — — 6,465 6,465 West Texas 12,427 4,520 5,684 22,631 Total $ 38,069 $ 12,162 $ 26,601 $ 76,832 (1) Includes revenues from the Company's operations in Pennsylvania. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Six Months Ended June 30, 2019 2018 Cash paid for Interest $ 2,197 $ 136 Income tax $ — $ — Supplemental schedule of non-cash investing and financing activities Change in accounts payable related to capital expenditures $ — $ 2,201 Exchange of Bridge Loan for PIK Notes $ 47,346 $ — Finance leases on equipment $ 2,326 $ 1,712 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or 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 is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment", or ASU 2017-04, which addresses concerns over the cost and complexity of the two-step goodwill impairment test by removing the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. ASU 2017-04 will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for all entities in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Information | Interim Financial Information The unaudited condensed consolidated financial statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, for interim financial reporting. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, these condensed consolidated financial statements should be read along with the annual audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments which are of normal recurring natures considered necessary for a fair representation have been made in the accompanying unaudited financial statements. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Fair Values 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 and insurance notes approximate fair value because of the short maturity of these instruments. The fair values of finance leases approximate their carrying values, based on current market rates at which the Company could borrow funds with similar maturities (Level 2 in the fair value hierarchy). |
Cash, Cash Equivalents and Cash - Restricted | Cash, Cash Equivalents and Cash - Restricted The following table provides a reconciliation of cash, cash equivalents and cash - restricted reported within the consolidated balance sheets to the same such amounts shown in the consolidated statements of cash flows (in thousands). June 30, 2019 2018 Cash and cash equivalents $ 1,030 $ 5,383 Cash - restricted 73 19,701 Cash and cash equivalents and cash - restricted as shown in the consolidated statement of cash flows $ 1,103 $ 25,084 The Company's restricted cash at June 30, 2018 included $11.0 million related to a prior restriction under the Term Loan Agreement and $8.7 million as collateral for certain outstanding letters of credit and the Company's corporate credit card program under a prior credit facility with Regions. |
Revenue Recognition | Revenue Recognition Revenue is measured as consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by providing service to a customer. Amounts are billed upon completion of service and are generally due within 30 days. The Company has its principal revenue generating activities organized into three service lines, well servicing, coiled tubing and fluid logistics. The Company's well servicing line consists primarily of maintenance, workover, completion, plugging and abandonment, and tubing testing services. The Company's coiled tubing line consists of maintenance, workover and completion services. The Company's fluid logistics line provides supporting services to the well servicing line as well as direct sales to customers for fluid management and movement. The Company generally establishes a master services agreement with each customer and provides associated services on a work order basis in increments of days, by the hour for services performed or on occasion, bid/turnkey pricing. Services provided under the well servicing, coiled tubing and the fluid logistics segments are short in duration and generally completed within 30 days. The majority of the Company’s contracts with customers in the well servicing, coiled tubing and fluid logistics segments are short-term in nature and are recognized as “over-time” performance obligations as the services are performed. The Company applies the “as-invoiced” practical expedient as the amount of consideration the Company has a right to invoice corresponds directly with the value of the Company’s performance to date. Because of the short-term nature of the Company’s services, which generally last a few hours to multiple days, the Company does not have any contracts with a duration longer than one year that require disclosure. The Company has no material contract assets or liabilities. The Company does not have any revenue expected to be recognized in the future related to remaining performance obligations or contracts with variable consideration related to undelivered performance obligations. There was no revenue recognized in the current period from performance obligations satisfied in previous periods. The Company's significant judgments made in connection with the adoption of ASC 606 included the determination of when the Company satisfies its performance obligation to customers and the applicability of the as invoiced practical expedient. |
Leases | Leases Effective January 1, 2019, the Company adopted an accounting standard update issued by the Financial Accounting Standards Board (FASB) related to accounting for leases, which requires lessees to record assets and liabilities that arise for all leases on their balance sheet and expanded financial statement disclosures for both lessees and lessors. Previously, only capital leases were recorded on the balance sheet. This update requires lessees to recognize a lease liability equal to the present value of its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and instead recognize lease expense for such leases generally on a straight-line basis over the lease term. Leases with a term of longer than 12 months will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted this standard on a prospective basis using the optional modified retrospective transition method. As such, the comparative financial information has not been restated and continues to be reported under the lease standard in effect during those periods. The Company also elected other practical expedients provided by the new standard, including the package of practical expedients, the hindsight practical expedient and the short-term lease recognition practical expedient in which leases with a term of 12 months or less are not recognized on the balance sheet. The adoption of this standard resulted in the recognition of approximately $6.2 million of operating lease right-of-use assets and operating lease liabilities on the balance sheet as of January 1, 2019. The adoption of this standard did not materially impact the condensed consolidated statements of operations for the three and six months ended June 30, 2019 . See Note 8 for the expanded lease disclosures required by the new standard. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or 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 is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment", or ASU 2017-04, which addresses concerns over the cost and complexity of the two-step goodwill impairment test by removing the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. ASU 2017-04 will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for all entities in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Carrying Amounts and Estimated Fair Values of Financial Instruments | The fair values of the Term Loan Agreement, Bridge Loan and the PIK Notes as of the respective dates are set forth below (in thousands): June 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term Loan Agreement $ 60,850 $ 64,198 $ 62,335 $ 65,794 Bridge Loan $ — $ — $ 49,568 $ 50,000 PIK Notes $ 54,131 $ 61,919 $ — $ — |
Reconciliation of Cash, Cash Equivalents and Cash - Restricted | The following table provides a reconciliation of cash, cash equivalents and cash - restricted reported within the consolidated balance sheets to the same such amounts shown in the consolidated statements of cash flows (in thousands). June 30, 2019 2018 Cash and cash equivalents $ 1,030 $ 5,383 Cash - restricted 73 19,701 Cash and cash equivalents and cash - restricted as shown in the consolidated statement of cash flows $ 1,103 $ 25,084 |
Acquisition of Cretic Energy _2
Acquisition of Cretic Energy Services, LLC (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Pro Forma Information | The following unaudited consolidated pro forma information is presented as if the Cretic acquisition had occurred on January 1, 2018 (in thousands): Pro Forma Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Revenue $ 57,611 $ 107,067 Net loss $ (8,926 ) $ (19,498 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following (in thousands): Estimated Life in Years June 30, 2019 December 31, 2018 Well servicing equipment 9-15 years $ 132,358 $ 128,647 Autos and trucks 5-10 years 25,375 32,132 Autos and trucks - finance lease 5-10 years 23,198 20,416 Disposal wells 5-15 years 4,159 3,977 Building and improvements 5-30 years 5,901 5,705 Furniture and fixtures 3-15 years 3,032 2,797 Land 868 868 194,891 194,542 Accumulated depreciation (1) (56,111 ) (45,934 ) $ 138,780 $ 148,608 (1) Includes accumulated depreciation of finance lease assets of $6.1 million and $4.5 million at June 30, 2019 and December 31, 2018 , respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | The following table sets forth the identified other intangible assets by major asset class (in thousands): Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value June 30, 2019 Customer relationships 6-15 $ 11,378 $ (1,318 ) $ 10,060 Trade names 10-15 3,072 (608 ) 2,464 Covenants not to compete 4 1,505 (834 ) 671 $ 15,955 $ (2,760 ) $ 13,195 December 31, 2018 Customer relationships 6-15 $ 11,378 $ (832 ) $ 10,546 Trade names 10-15 3,072 (496 ) 2,576 Covenants not to compete 4 1,505 (647 ) 858 $ 15,955 $ (1,975 ) $ 13,980 |
Future Amortization Expense | Future amortization of these intangibles will be as follows: 2019 $ 819 2020 1,637 2021 1,367 2022 1,261 2023 1,261 Thereafter 6,850 $ 13,195 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 Term Loan Agreement of $55.0 million and $60.0 million, plus $8.9 million and $6.0 million of accrued interest paid in kind and net of debt discount of $3.0 million and $3.6 million as of June 30, 2019 and December 31, 2018, respectively $ 60,850 $ 62,335 PIK Notes, including $2.4 million accretion of interest and conversion premium 54,131 — Bridge Loan of $50.0 million, net of debt discount of $0.4 million as of December 31, 2018 — 49,568 Revolving Loan Agreement 6,000 — Finance leases 13,258 13,319 Insurance notes 962 5,194 Total debt 135,201 130,416 Less: Current portion (60,273 ) (59,321 ) Total long-term debt $ 74,928 $ 71,095 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Information | The following tables illustrate the financial impact of the Company's leases as of and for the three and six months ended June 30, 2019 , along with other supplemental information about the Company's leases (in thousands, except years and percentages): Three Months Ended Six Months Ended Components of lease expense: Finance lease cost: Amortization of right-of-use assets $ 1,110 $ 2,324 Interest on lease liabilities 154 293 Operating lease cost: Lease expense (1) 367 733 Short-term lease cost 647 1,306 Total lease cost $ 2,278 $ 4,656 (1) Includes variable lease costs of $ 75 thousand and $150 thousand for the three and six months ended June 30, 2019 , respectively. As of June 30, 2019 Components of balance sheet: Operating leases: Operating lease right-of-use assets (non-current) $ 5,785 Current portion of operating lease liabilities $ 756 Long-term operating lease liabilities, net of current portion $ 5,029 Finance leases: Property and equipment, net $ 17,068 Current portion of long-term debt $ 5,180 Long-term debt, net of current portion and debt discount $ 8,078 Three Months Ended Six Months Ended Other supplemental information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,014 $ 2,039 Operating cash flows for finance leases - interest $ 154 $ 293 Financing cash flows for finance leases $ 1,219 $ 2,387 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 6,150 Finance leases $ 890 $ 2,326 Weighted-average remaining lease term: Operating leases 8.5 years Finance leases 2.6 years Weighted-average discount rate: Operating leases 7.50 % Finance leases 4.19 % |
Maturity of Finance Leases | The following table summarizes the maturity of the Company's operating and finance leases as of June 30, 2019 (in thousands): Operating Leases - Related Party Operating Leases - Other Finance Leases 2019 $ 39 $ 1,235 $ 3,248 2020 58 1,060 5,474 2021 8 1,035 3,974 2022 — 872 1,266 2023 — 747 96 Thereafter — 3,608 — Total minimum lease payments 105 8,557 14,058 Less imputed interest (10 ) (2,166 ) (800 ) Less short-term leases excluded from the balance sheet — (701 ) — Total lease liabilities per balance sheet $ 95 $ 5,690 $ 13,258 |
Maturity of Operating Leases | The following table summarizes the maturity of the Company's operating and finance leases as of June 30, 2019 (in thousands): Operating Leases - Related Party Operating Leases - Other Finance Leases 2019 $ 39 $ 1,235 $ 3,248 2020 58 1,060 5,474 2021 8 1,035 3,974 2022 — 872 1,266 2023 — 747 96 Thereafter — 3,608 — Total minimum lease payments 105 8,557 14,058 Less imputed interest (10 ) (2,166 ) (800 ) Less short-term leases excluded from the balance sheet — (701 ) — Total lease liabilities per balance sheet $ 95 $ 5,690 $ 13,258 |
Maturity of Leases under ASC 840 | Future annual minimum lease payments and capital lease commitments as of December 31, 2018 were as follows (in thousands): Operating Leases - Related Party Operating Leases - Other Capital Leases 2019 $ 30 $ 2,027 $ 4,559 2020 30 986 4,334 2021 8 946 3,375 2022 — 781 1,051 2023 — 386 — Thereafter — 1,350 — Total $ 68 $ 6,476 $ 13,319 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements | A summary of the Company's share-based compensation expense during the periods presented are as follows (in thousands): Three Months Ended Six Months Ended Share based compensation expense recognized $ 256 $ 509 As of June 30, 2019 Unrecognized compensation cost (in thousands) $ 2,459 Remaining weighted-average service period (years) 3.00 |
Schedule of Nonvested Restricted Stock Units Activity | During the six months ended June 30, 2019 , the Company granted no restricted stock units to officers and employees subject to the Management Incentive Plan. Below is a summary of the unvested restricted stock units. Number of Shares Weighted Average Fair Value Unvested as of December 31, 2018 329,240 $ 9.68 Granted — $ — Vested (7,200 ) $ 11.00 Forfeited — $ — Unvested as of June 30, 2019 322,040 $ 9.99 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 (in thousands, except per share amounts): Three Months Ended June 30, 2019 2018 Basic and diluted: Net loss $ (10,749 ) $ (8,766 ) Weighted-average common shares 5,446 5,336 Basic and diluted net loss per share $ (1.97 ) $ (1.64 ) Six Months Ended June 30, 2019 2018 Basic and diluted: Net loss $ (22,383 ) $ (17,295 ) Weighted-average common shares 5,444 5,336 Basic and diluted net loss per share $ (4.11 ) $ (3.24 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Condensed Financial Statements | The following table sets forth certain financial information with respect to the Company’s reportable segments (in thousands): Well Servicing Coiled Tubing Fluid Logistics Total Three Months Ended June 30, 2019 Operating revenues $ 25,762 $ 13,292 $ 12,011 $ 51,065 Direct operating costs 20,971 13,854 8,823 43,648 Segment profits $ 4,791 $ (562 ) $ 3,188 $ 7,417 Depreciation and amortization $ 2,783 $ 2,531 $ 1,699 $ 7,013 Capital expenditures (1) $ 2,724 $ 2,851 $ 1,370 $ 6,945 Three Months Ended June 30, 2018 Operating revenues $ 20,415 $ 6,960 $ 13,866 $ 41,241 Direct operating costs 17,116 6,208 11,151 34,475 Segment profits $ 3,299 $ 752 $ 2,715 $ 6,766 Depreciation and amortization $ 2,688 $ 1,498 $ 3,466 $ 7,652 Capital expenditures (1) $ 2,016 $ 2,304 $ 1,500 $ 5,820 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including finance leases and fixed assets recorded in accounts payable at year-end. Well Servicing Coiled Tubing Fluid Logistics Total Six Months Ended June 30, 2019 Operating revenues $ 50,512 $ 33,302 $ 25,639 $ 109,453 Direct operating costs 38,520 31,792 19,475 89,787 Segment profits $ 11,992 $ 1,510 $ 6,164 $ 19,666 Depreciation and amortization $ 4,959 $ 6,069 $ 5,424 $ 16,452 Capital expenditures (1) $ 5,167 $ 5,149 $ 1,710 $ 12,026 Total assets $ 75,829 $ 102,190 $ 50,909 $ 228,928 Long lived assets $ 57,078 $ 80,320 $ 39,292 $ 176,690 Six Months Ended June 30, 2018 Operating revenues $ 38,069 $ 12,162 $ 26,601 $ 76,832 Direct operating costs 31,968 10,371 21,840 64,179 Segment profits $ 6,101 $ 1,791 $ 4,761 $ 12,653 Depreciation and amortization $ 5,124 $ 2,794 $ 6,897 $ 14,815 Capital expenditures (1) $ 2,945 $ 5,518 $ 2,494 $ 10,957 Total assets $ 134,527 $ 22,848 $ 30,354 $ 187,729 Long lived assets $ 65,920 $ 17,228 $ 41,618 $ 124,766 (1) Capital expenditures listed above include all cash and non-cash additions to property and equipment, including finance leases and fixed assets recorded in accounts payable at year-end. |
Financial Information with Respect to Reportable Segments | Three Months Ended June 30, 2019 2018 Reconciliation of Operating Loss As Reported: Segment profits $ 7,417 $ 6,766 Less: General and administrative expense 5,417 5,908 Depreciation and amortization 7,013 7,652 Operating loss (5,013 ) (6,794 ) Other income (expenses), net (5,722 ) (2,426 ) Pre-tax loss $ (10,735 ) $ (9,220 ) Six Months Ended June 30, 2019 2018 Reconciliation of Operating Loss As Reported: Segment profits $ 19,666 $ 12,653 Less: General and administrative expense 12,242 10,796 Depreciation and amortization 16,452 14,815 Operating loss (9,028 ) (12,958 ) Other income (expenses), net (13,405 ) (4,791 ) Pre-tax loss $ (22,433 ) $ (17,749 ) June 30, 2019 December 31, 2018 Reconciliation of Total Assets As Reported: Total reportable segments $ 228,928 $ 243,199 Parent 7,191 13,186 Total assets $ 236,119 $ 256,385 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables show revenue disaggregated by primary geographical markets and major service lines (in thousands): Three months ended June 30, 2019 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 18,292 $ 4,300 $ 6,035 $ 28,627 East Texas (1) 1,897 — 811 2,708 Central Texas — — 2,976 2,976 West Texas 5,573 8,992 2,189 16,754 Total $ 25,762 $ 13,292 $ 12,011 $ 51,065 Three months ended June 30, 2018 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 11,081 $ 3,799 $ 6,669 $ 21,549 East Texas (1) 1,097 — 577 1,674 Central Texas — — 3,461 3,461 West Texas 8,237 3,161 3,159 14,557 Total $ 20,415 $ 6,960 $ 13,866 $ 41,241 (1) Includes revenues from the Company's operations in Pennsylvania. Six months ended June 30, 2019 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 36,469 $ 9,001 $ 12,207 $ 57,677 East Texas (1) 2,751 — 1,646 4,397 Central Texas — — 6,072 6,072 West Texas 11,292 24,301 5,714 41,307 Total $ 50,512 $ 33,302 $ 25,639 $ 109,453 Six months ended June 30, 2018 Well Servicing Coiled Tubing Fluid Logistics Total Primary Geographical Markets South Texas $ 23,893 $ 7,642 $ 13,297 $ 44,832 East Texas (1) 1,749 — 1,155 2,904 Central Texas — — 6,465 6,465 West Texas 12,427 4,520 5,684 22,631 Total $ 38,069 $ 12,162 $ 26,601 $ 76,832 (1) Includes revenues from the Company's operations in Pennsylvania. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Six Months Ended June 30, 2019 2018 Cash paid for Interest $ 2,197 $ 136 Income tax $ — $ — Supplemental schedule of non-cash investing and financing activities Change in accounts payable related to capital expenditures $ — $ 2,201 Exchange of Bridge Loan for PIK Notes $ 47,346 $ — Finance leases on equipment $ 2,326 $ 1,712 |
Basis of Presentation - Fair Va
Basis of Presentation - Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
New First Lien Term Loan Facility (Exit Facility) | Term Loan Agreement | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt agreements | $ 60,850 | $ 62,335 |
New First Lien Term Loan Facility (Exit Facility) | Term Loan Agreement | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt agreements | 64,198 | 65,794 |
Bridge Loan | 9% Senior Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt agreements | 0 | 49,568 |
Bridge Loan | 9% Senior Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt agreements | 0 | 50,000 |
PIK Notes | Subordinated Convertible PIK Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt agreements | 54,131 | 0 |
PIK Notes | Subordinated Convertible PIK Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt agreements | $ 61,919 | $ 0 |
Basis of Presentation - Cash, C
Basis of Presentation - Cash, Cash Equivalents and Cash - Restricted (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 1,030 | $ 8,083 | $ 5,383 | |
Cash - restricted | 73 | 73 | 19,701 | |
Cash and cash equivalents and cash - restricted as shown in the consolidated statement of cash flows | $ 1,103 | $ 8,156 | 25,084 | $ 35,480 |
Line of Credit | New First Lien Term Loan Facility (Exit Facility) | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 11,000 | |||
Letter of Credit | New Regions Letter of Credit Facility | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 8,700 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019USD ($)segment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Billing period for service invoices | 30 days | ||
Number of reportable segments | segment | 3 | ||
Duration of customer contract, maximum | 1 year | ||
Operating lease right-of-use assets | $ 5,785 | $ 0 | |
Operating lease liabilities | $ 5,690 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 6,200 | ||
Operating lease liabilities | $ 6,200 |
Acquisition of Cretic Energy _3
Acquisition of Cretic Energy Services, LLC (Details) - Cretic Energy Services, LLC $ in Millions | Nov. 16, 2018USD ($) |
Business Acquisition [Line Items] | |
Outstanding units of Cretic acquired (percent) | 100.00% |
Acquisition purchase price | $ 69.4 |
Cash acquired from acquisition | $ 2.2 |
Acquisition of Cretic Energy _4
Acquisition of Cretic Energy Services, LLC - Pro Forma Information (Details) - Cretic Energy Services, LLC - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 57,611 | $ 107,067 |
Net loss | $ (8,926) | $ (19,498) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Summary of Property and equipment | ||
Property and equipment, gross | $ 194,891 | $ 194,542 |
Accumulated depreciation (1) | (56,111) | (45,934) |
Property and equipment, net | 138,780 | 148,608 |
Well servicing equipment | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 132,358 | 128,647 |
Well servicing equipment | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 15 years | |
Well servicing equipment | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 9 years | |
Well servicing equipment - finance lease | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 15 years | |
Well servicing equipment - finance lease | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 9 years | |
Autos and trucks | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 25,375 | 32,132 |
Autos and trucks | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 10 years | |
Autos and trucks | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 5 years | |
Autos and trucks - finance lease | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 23,198 | 20,416 |
Autos and trucks - finance lease | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 10 years | |
Autos and trucks - finance lease | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 5 years | |
Disposal wells | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 4,159 | 3,977 |
Disposal wells | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 15 years | |
Disposal wells | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 5 years | |
Building and improvements | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 5,901 | 5,705 |
Building and improvements | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 30 years | |
Building and improvements | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 5 years | |
Furniture and fixtures | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 3,032 | 2,797 |
Furniture and fixtures | Maximum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 15 years | |
Furniture and fixtures | Minimum | ||
Summary of Property and equipment | ||
Property and equipment, estimated life | 3 years | |
Land | ||
Summary of Property and equipment | ||
Property and equipment, gross | $ 868 | $ 868 |
Property and Equipment - Deprec
Property and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation | $ 56,111 | $ 56,111 | $ 45,934 | ||
Depreciation expense | 6,700 | $ 7,400 | 15,700 | $ 14,200 | |
Finance leased assets | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation | 6,100 | 6,100 | $ 4,500 | ||
Depreciation expense | $ 1,100 | $ 700 | $ 2,300 | $ 1,400 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 19,700 | $ 19,700 | $ 19,700 | ||
Amortization expenses | $ 300 | $ 300 | $ 800 | $ 600 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Major Asset Class (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets | ||
Gross Carrying Value | $ 15,955 | $ 15,955 |
Accumulated Amortization | (2,760) | (1,975) |
Net Book Value | 13,195 | 13,980 |
Customer relationships | ||
Intangible Assets | ||
Gross Carrying Value | 11,378 | 11,378 |
Accumulated Amortization | (1,318) | (832) |
Net Book Value | 10,060 | 10,546 |
Trade names | ||
Intangible Assets | ||
Gross Carrying Value | 3,072 | 3,072 |
Accumulated Amortization | (608) | (496) |
Net Book Value | $ 2,464 | $ 2,576 |
Covenants not to compete | ||
Intangible Assets | ||
Useful Life (years) | 4 years | 4 years |
Gross Carrying Value | $ 1,505 | $ 1,505 |
Accumulated Amortization | (834) | (647) |
Net Book Value | $ 671 | $ 858 |
Minimum | Customer relationships | ||
Intangible Assets | ||
Useful Life (years) | 6 years | 6 years |
Minimum | Trade names | ||
Intangible Assets | ||
Useful Life (years) | 10 years | 10 years |
Maximum | Customer relationships | ||
Intangible Assets | ||
Useful Life (years) | 15 years | 15 years |
Maximum | Trade names | ||
Intangible Assets | ||
Useful Life (years) | 15 years | 15 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Finite-lived Intangible Assets, Future Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 819 | |
2020 | 1,637 | |
2021 | 1,367 | |
2022 | 1,261 | |
2023 | 1,261 | |
Thereafter | 6,850 | |
Net Book Value | $ 13,195 | $ 13,980 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 135,201 | $ 130,416 |
Less: Current portion | (60,273) | (59,321) |
Total long-term debt | 74,928 | 71,095 |
Finance leases | ||
Debt Instrument [Line Items] | ||
Total debt | 13,258 | 13,319 |
Finance leases | Term Loan Agreement of $55.0 million and $60.0 million, plus $8.9 million and $6.0 million of accrued interest paid in kind and net of debt discount of $3.0 million and $3.6 million as of June 30, 2019 and December 31, 2018, respectively | ||
Debt Instrument [Line Items] | ||
Total debt | 60,850 | 62,335 |
Accrued interest paid in kind | 8,900 | 6,000 |
Deferred financing costs | 3,000 | 3,600 |
PIK Notes | Subordinated Convertible PIK Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 54,131 | 0 |
Accretion of premium | 2,400 | |
Bridge Loan | 9% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 49,568 |
Unamortized discount | 400 | |
Term Loan Agreement of $55.0 million and $60.0 million, plus $8.9 million and $6.0 million of accrued interest paid in kind and net of debt discount of $3.0 million and $3.6 million as of June 30, 2019 and December 31, 2018, respectively | Revolving Loan Agreement | ||
Debt Instrument [Line Items] | ||
Total debt | 6,000 | 0 |
Insurance notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 962 | $ 5,194 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Mar. 04, 2019 | Nov. 16, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 03, 2019 | Dec. 31, 2018 | Apr. 13, 2018 | Dec. 31, 2017 | Apr. 13, 2017 |
Debt Instrument [Line Items] | ||||||||||
Debt instrument, PIK interest rate (percent) | 11.00% | 11.00% | ||||||||
Interest paid in kind | $ 4,699,000 | $ 1,845,000 | ||||||||
Debt and capital lease obligations | $ 135,201,000 | 135,201,000 | $ 130,416,000 | |||||||
New First Lien Term Loan Facility (Exit Facility) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt and capital lease obligations | 13,258,000 | 13,258,000 | 13,319,000 | |||||||
Senior notes | 9% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt and capital lease obligations | 0 | $ 0 | 49,568,000 | |||||||
PIK Notes | Subordinated Convertible PIK Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 51,800,000 | |||||||||
Debt instrument, stated interest rate | 5.00% | |||||||||
Debt Instrument, Uncured Payment Default Amount to Trigger Acceleration of Debt Due Date | $ 5,000,000 | |||||||||
Debt Instrument, Period to Waive or Cure Debt Default | 30 days | |||||||||
Debt Holders Who Must Approve Waiver or Cure Debt Default, Percent | 25.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||
PIK Convertible Note, Conversion Rate, Discount Per Share | 15.00% | |||||||||
Accretion recorded as interest expense | 1,800,000 | $ 2,400,000 | ||||||||
Proceeds from Issuance of Debt | $ 51,800,000 | |||||||||
Debt issuance costs recognized in interest expense | $ 1,600,000 | |||||||||
Debt and capital lease obligations | 54,131,000 | 54,131,000 | 0 | |||||||
Insurance notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt and capital lease obligations | 962,000 | 962,000 | $ 5,194,000 | |||||||
Insurance notes | Insurance Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated interest rate | 3.27% | 4.99% | ||||||||
Line of Credit | New First Lien Term Loan Facility (Exit Facility) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 60,000,000 | |||||||||
Debt instrument, cash interest rate (percent) | 5.00% | |||||||||
Debt instrument, PIK interest rate (percent) | 2.00% | 7.00% | ||||||||
Interest paid in kind | 2,900,000 | |||||||||
Debt and capital lease obligations | 60,850,000 | 60,850,000 | $ 62,335,000 | |||||||
Cretic Energy Services, LLC | Senior notes | 9% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, cash interest rate (percent) | 5.00% | |||||||||
Debt instrument, PIK interest rate (percent) | 9.00% | |||||||||
Debt Instrument, Term | 1 year | |||||||||
Debt instrument, face amount | $ 50,000,000 | |||||||||
Debt instrument, stated interest rate | 14.00% | |||||||||
Cretic Energy Services, LLC | Line of Credit | Amendment to New First Lien Term Loan Facility (Exit Facility) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 10,000,000 | |||||||||
Cretic Energy Services, LLC | Revolving Credit Facility | Revolving Loan Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 35,000,000 | |||||||||
Borrowing Base Rate Percentage Of Eligible Accounts | 85.00% | |||||||||
Borrowing Base Rate Percentage of Eligible Investment Grade Accounts Receivable | 90.00% | |||||||||
Borrowing Base Rate Percentage of Eligible Cash. Less Reserves | 100.00% | |||||||||
Letters of Credit Outstanding, Amount | 6,100,000 | 6,100,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 9,900,000 | $ 9,900,000 | ||||||||
London Interbank Offered Rate (LIBOR) | Cretic Energy Services, LLC | Revolving Credit Facility | Minimum | Revolving Loan Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||
London Interbank Offered Rate (LIBOR) | Cretic Energy Services, LLC | Revolving Credit Facility | Maximum | Revolving Loan Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||||||
Base Rate | Cretic Energy Services, LLC | Revolving Credit Facility | Minimum | Revolving Loan Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||
Base Rate | Cretic Energy Services, LLC | Revolving Credit Facility | Maximum | Revolving Loan Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Gain Contingencies [Line Items] | ||
Limit excess policy | $ 10,000,000 | |
Threshold amount for additional premium payable percentage | 1,000,000 | |
Auto Liability and General Liability Insurances | ||
Gain Contingencies [Line Items] | ||
Self insurance basic coverage | 250,000 | |
Employee Group Medical Plan | ||
Gain Contingencies [Line Items] | ||
Self insurance basic coverage | 150,000 | |
Self insurance reserve | $ 5,900,000 | $ 5,200,000 |
Minimum | ||
Gain Contingencies [Line Items] | ||
Percentage of claims paid over threshold | 15.00% | |
Maximum | ||
Gain Contingencies [Line Items] | ||
Percentage of claims paid over threshold | 17.00% | |
Customer concentration risk | Consolidated revenues | Largest customer | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer concentration risk | Consolidated revenues | Five largest customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 33.80% | |
Customer concentration risk | Consolidated revenues | Ten largest customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 46.50% | |
Customer concentration risk | Accounts receivable | Largest customer | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 4.80% | |
Customer concentration risk | Accounts receivable | Five largest customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 27.00% | |
Customer concentration risk | Accounts receivable | Ten largest customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 44.20% |
Leases (Details)
Leases (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Remaining term of operating lease | 10 years |
Remaining term of finance lease | 3 years |
Finance lease, period before option to terminate | 1 year |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 1,110 | $ 2,324 |
Interest on lease liabilities | 154 | 293 |
Operating lease cost | 367 | 733 |
Short-term lease cost | 647 | 1,306 |
Total lease cost | 2,278 | 4,656 |
Variable lease cost | $ 75 | $ 150 |
Leases - Components of Balance
Leases - Components of Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Operating lease right-of-use assets (non-current) | $ 5,785 | $ 0 |
Current portion of operating lease liabilities | 756 | 0 |
Long-term operating lease liabilities, net of current portion | 5,029 | $ 0 |
Finance leases: | ||
Property and equipment, net | 17,068 | |
Current portion of long-term debt | 5,180 | |
Long-term debt, net of current portion and debt discount | $ 8,078 |
Leases - Other Supplemental Inf
Leases - Other Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 1,014 | $ 2,039 | |
Operating cash flows for finance leases - interest | 154 | 293 | |
Financing cash flows for finance leases | 1,219 | 2,387 | $ 987 |
Noncash activities from right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 0 | 6,150 | |
Finance leases | $ 890 | $ 2,326 | |
Weighted-average remaining lease term: | |||
Operating leases | 8 years 6 months | 8 years 6 months | |
Finance leases | 2 years 7 months | 2 years 7 months | |
Weighted-average discount rate for operating leases (percent) | 7.50% | 7.50% | |
Weighted-average discount rate for finance leases (percent) | 4.19% | 4.19% |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 | $ 1,235 |
2020 | 1,060 |
2021 | 1,035 |
2022 | 872 |
2023 | 747 |
Thereafter | 3,608 |
Total minimum lease payments | 8,557 |
Less imputed interest | (2,166) |
Less short-term leases excluded from the balance sheet | (701) |
Total lease liabilities per balance sheet | 5,690 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 | 3,248 |
2020 | 5,474 |
2021 | 3,974 |
2022 | 1,266 |
2023 | 96 |
Thereafter | 0 |
Total minimum lease payments | 14,058 |
Less imputed interest | (800) |
Total lease liabilities per balance sheet | 13,258 |
Related Party [Member] | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 | 39 |
2020 | 58 |
2021 | 8 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total minimum lease payments | 105 |
Less imputed interest | (10) |
Total lease liabilities per balance sheet | $ 95 |
Leases - Maturity of Leases und
Leases - Maturity of Leases under ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases | |
2019 | $ 4,559 |
2020 | 4,334 |
2021 | 3,375 |
2022 | 1,051 |
2023 | 0 |
Thereafter | 0 |
Total | 13,319 |
Related Party [Member] | |
Operating Leased Assets [Line Items] | |
2019 | 30 |
2020 | 30 |
2021 | 8 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total | 68 |
Other Party [Member] | |
Operating Leased Assets [Line Items] | |
2019 | 2,027 |
2020 | 986 |
2021 | 946 |
2022 | 781 |
2023 | 386 |
Thereafter | 1,350 |
Total | $ 6,476 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Compensation Cost for Share-based Payment Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Share based compensation expense recognized | $ 256 | $ 509 | $ 498 |
Unrecognized compensation cost | $ 2,459 | $ 2,459 | |
Remaining weighted-average service period (years) | 3 years |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 6 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Dec. 31, 2017 | |
Number of Shares | ||
Unvested beginning balance (in shares) | 329,240 | |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (7,200) | |
Forfeited (in shares) | 0 | |
Unvested ending balance (in shares) | 322,040 | |
Weighted Average Fair Value | ||
Unvested beginning balance (in dollars per share) | $ 9.68 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 11 | |
Forfeited (in dollars per share) | 0 | |
Unvested ending balance (in dollars per share) | $ 9.99 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Related party expenses, primarily related to leases and rents | $ 200,000 | $ 300,000 | $ 500,000 | $ 600,000 | |
Related party revenue | 0 | $ 0 | |||
Related party payables | 0 | 0 | $ 0 | ||
Related party accounts receivable | $ 0 | $ 0 | $ 0 | ||
Ascribe | |||||
Related Party Transaction [Line Items] | |||||
Percent of common stock outstanding | 23.60% | 23.60% | |||
Ascribe | Line of Credit | New First Lien Term Loan Facility (Exit Facility) | |||||
Related Party Transaction [Line Items] | |||||
Debt due to related party | $ 16,500,000 | $ 16,500,000 | |||
Solace | |||||
Related Party Transaction [Line Items] | |||||
Percent of common stock outstanding | 17.40% | 17.40% | |||
Solace | Line of Credit | New First Lien Term Loan Facility (Exit Facility) | |||||
Related Party Transaction [Line Items] | |||||
Debt due to related party | $ 15,100,000 | $ 15,100,000 | |||
Medium-term Notes | Ascribe | Rights Offering Notes | |||||
Related Party Transaction [Line Items] | |||||
Debt due to related party | 27,500,000 | 27,500,000 | |||
Medium-term Notes | Solace | Rights Offering Notes | |||||
Related Party Transaction [Line Items] | |||||
Debt due to related party | $ 20,300,000 | $ 20,300,000 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic and diluted: | ||||||
Net income (loss) | $ (10,749) | $ (11,634) | $ (8,766) | $ (8,529) | $ (22,383) | $ (17,295) |
Weighted-average common shares (in shares) | 5,446 | 5,336 | 5,444 | 5,336 | ||
Basic and diluted net loss per share (in USD per share) | $ (1.97) | $ (1.64) | $ (4.11) | $ (3.24) | ||
Retained Earnings [Member] | ||||||
Basic and diluted: | ||||||
Net income (loss) | $ (10,749) | $ (11,634) | $ (8,766) | $ (8,529) |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 322,040 | 322,040 | 363,300 | 363,300 |
Conversion of PIK Notes | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 28,300,000 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | $ 51,065 | $ 41,241 | $ 109,453 | $ 76,832 | |
Operating loss | (5,013) | (6,794) | (9,028) | (12,958) | |
Depreciation and amortization | 7,013 | 7,652 | 16,452 | 14,815 | |
Total assets | 236,119 | 236,119 | $ 256,385 | ||
Reconciliation of the Company's Operating Loss As Reported: | |||||
Operating loss | (5,013) | (6,794) | (9,028) | (12,958) | |
General and administrative expense | 5,417 | 5,908 | 12,242 | 10,796 | |
Depreciation and amortization | 7,013 | 7,652 | 16,452 | 14,815 | |
Other expense, net | (5,722) | (2,426) | (13,405) | (4,791) | |
Pre-tax loss | (10,735) | (9,220) | (22,433) | (17,749) | |
Reconciliation of the Company's Assets As Reported: | |||||
Assets | 236,119 | 236,119 | 256,385 | ||
Operating Segments | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 51,065 | 41,241 | 109,453 | 76,832 | |
Direct operating costs | 43,648 | 34,475 | 89,787 | 64,179 | |
Operating loss | 7,417 | 6,766 | 19,666 | 12,653 | |
Total assets | 228,928 | 187,729 | 228,928 | 187,729 | 243,199 |
Long-lived assets | 176,690 | 124,766 | 176,690 | 124,766 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Operating loss | 7,417 | 6,766 | 19,666 | 12,653 | |
Reconciliation of the Company's Assets As Reported: | |||||
Assets | 228,928 | 187,729 | 228,928 | 187,729 | 243,199 |
Elimination of internal transactions | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Capital expenditures | 6,945 | 5,820 | 12,026 | 10,957 | |
Parent | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Total assets | 7,191 | 7,191 | 13,186 | ||
Reconciliation of the Company's Assets As Reported: | |||||
Assets | 7,191 | 7,191 | $ 13,186 | ||
Well Servicing | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 25,762 | 20,415 | 50,512 | 38,069 | |
Depreciation and amortization | 2,783 | 2,688 | 4,959 | 5,124 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Depreciation and amortization | 2,783 | 2,688 | 4,959 | 5,124 | |
Well Servicing | Operating Segments | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 25,762 | 20,415 | 50,512 | 38,069 | |
Direct operating costs | 20,971 | 17,116 | 38,520 | 31,968 | |
Operating loss | 4,791 | 3,299 | 11,992 | 6,101 | |
Total assets | 75,829 | 134,527 | 75,829 | 134,527 | |
Long-lived assets | 57,078 | 65,920 | 57,078 | 65,920 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Operating loss | 4,791 | 3,299 | 11,992 | 6,101 | |
Reconciliation of the Company's Assets As Reported: | |||||
Assets | 75,829 | 134,527 | 75,829 | 134,527 | |
Well Servicing | Elimination of internal transactions | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Capital expenditures | 2,724 | 2,016 | 5,167 | 2,945 | |
Coiled Tubing | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 13,292 | 6,960 | 33,302 | 12,162 | |
Depreciation and amortization | 2,531 | 1,498 | 6,069 | 2,794 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Depreciation and amortization | 2,531 | 1,498 | 6,069 | 2,794 | |
Coiled Tubing | Operating Segments | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 13,292 | 6,960 | 33,302 | 12,162 | |
Direct operating costs | 13,854 | 6,208 | 31,792 | 10,371 | |
Operating loss | (562) | 752 | 1,510 | 1,791 | |
Total assets | 102,190 | 22,848 | 102,190 | 22,848 | |
Long-lived assets | 80,320 | 17,228 | 80,320 | 17,228 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Operating loss | (562) | 752 | 1,510 | 1,791 | |
Reconciliation of the Company's Assets As Reported: | |||||
Assets | 102,190 | 22,848 | 102,190 | 22,848 | |
Coiled Tubing | Elimination of internal transactions | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Capital expenditures | 2,851 | 2,304 | 5,149 | 5,518 | |
Fluid Logistics | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 12,011 | 13,866 | 25,639 | 26,601 | |
Depreciation and amortization | 1,699 | 3,466 | 5,424 | 6,897 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Depreciation and amortization | 1,699 | 3,466 | 5,424 | 6,897 | |
Fluid Logistics | Operating Segments | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Operating revenues | 12,011 | 13,866 | 25,639 | 26,601 | |
Direct operating costs | 8,823 | 11,151 | 19,475 | 21,840 | |
Operating loss | 3,188 | 2,715 | 6,164 | 4,761 | |
Total assets | 50,909 | 30,354 | 50,909 | 30,354 | |
Long-lived assets | 39,292 | 41,618 | 39,292 | 41,618 | |
Reconciliation of the Company's Operating Loss As Reported: | |||||
Operating loss | 3,188 | 2,715 | 6,164 | 4,761 | |
Reconciliation of the Company's Assets As Reported: | |||||
Assets | 50,909 | 30,354 | 50,909 | 30,354 | |
Fluid Logistics | Elimination of internal transactions | |||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||
Capital expenditures | $ 1,370 | $ 1,500 | $ 1,710 | $ 2,494 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 51,065 | $ 41,241 | $ 109,453 | $ 76,832 |
South Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,627 | 21,549 | 57,677 | 44,832 |
East Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,708 | 1,674 | 4,397 | 2,904 |
Central Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,976 | 3,461 | 6,072 | 6,465 |
West Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,754 | 14,557 | 41,307 | 22,631 |
Well Servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,762 | 20,415 | 50,512 | 38,069 |
Well Servicing | South Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,292 | 11,081 | 36,469 | 23,893 |
Well Servicing | East Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,897 | 1,097 | 2,751 | 1,749 |
Well Servicing | Central Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Well Servicing | West Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,573 | 8,237 | 11,292 | 12,427 |
Coiled Tubing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,292 | 6,960 | 33,302 | 12,162 |
Coiled Tubing | South Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,300 | 3,799 | 9,001 | 7,642 |
Coiled Tubing | East Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Coiled Tubing | Central Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Coiled Tubing | West Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,992 | 3,161 | 24,301 | 4,520 |
Fluid Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,011 | 13,866 | 25,639 | 26,601 |
Fluid Logistics | South Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,035 | 6,669 | 12,207 | 13,297 |
Fluid Logistics | East Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 811 | 577 | 1,646 | 1,155 |
Fluid Logistics | Central Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,976 | 3,461 | 6,072 | 6,465 |
Fluid Logistics | West Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,189 | $ 3,159 | $ 5,714 | $ 5,684 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for | ||
Interest | $ 2,197 | $ 136 |
Income tax | 0 | 0 |
Supplemental schedule of non-cash investing and financing activities | ||
Change in accounts payable related to capital expenditures | 0 | 2,201 |
Exchange of Bridge Loan for PIK Notes | 47,346 | 0 |
Change in accounts payable related to capital expenditures | $ 2,326 | $ 1,712 |