Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Document Information [Line Items] | ||
Title of 12(b) Security | COMMON UNITS REPRESENTING LIMITED PARTNERSHIP INTERESTS | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3450907 | |
Entity Address, Address Line One | 24955 Interstate 45 North | |
Entity Address, City or Town | The Woodlands, | |
Entity Address, Postal Zip Code | 77380 | |
Entity Address, State or Province | TX | |
Trading Symbol | CCLP | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | CSI Compressco LP | |
City Area Code | 281 | |
Local Phone Number | 364-2244 | |
Entity Central Index Key | 0001449488 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Common Stock Shares Outstanding | 47,344,351 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35195 | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Deferred Costs and Other Assets | $ 3,694 | $ 3,694 | ||
Weighted Average Limited Partnership Units Outstanding, Diluted | 47,040,714 | 46,936,240 | ||
Cost of Goods and Services Sold [Abstract] | ||||
Cost of Goods and Services Sold | 25,395 | $ 30,520 | 57,003 | $ 63,141 |
Impairment of Long-Lived Assets Held-for-use | 8,977 | 2,311 | 14,348 | 2,311 |
Insurance Recoveries | 517 | 0 | 517 | 0 |
Revenues: | ||||
Compression and related services | 56,336 | 64,876 | 122,101 | 127,578 |
Aftermarket services | 96,413 | 135,856 | 186,692 | 239,292 |
Cost of revenues (excluding depreciation and amortization expense): | ||||
Cost of Revenue | 63,243 | 93,350 | 117,796 | 161,450 |
Depreciation and amortization | 20,117 | 19,054 | 40,025 | 37,586 |
Selling, General and Administrative Expense | 10,172 | 10,974 | 20,428 | 21,639 |
Interest expense, net | 13,580 | 13,045 | 26,749 | 26,344 |
Liabilities, Fair Value Adjustment | 0 | 166 | 0 | 3,600 |
Preferred, Fair Value Adjustment | 0 | (1,470) | ||
Other expense, net | 4,403 | 607 | 4,843 | 226 |
Income (loss) before income tax provision | (23,562) | (3,651) | (36,980) | (11,734) |
Provision (benefit) for income taxes | 1,016 | (704) | 1,228 | 3,669 |
Net income (loss) | (24,578) | (2,947) | $ (38,208) | (15,403) |
General partner interest in net income (loss) | (345) | (42) | (219) | |
Common units interest in net income (loss) | $ (24,233) | $ (2,905) | $ (15,184) | |
Net income (loss) per common unit: | ||||
Basic | $ (0.51) | $ (0.06) | $ (0.79) | $ (0.32) |
Earnings Per Share, Diluted | $ (0.51) | $ (0.06) | $ (0.79) | $ (0.32) |
Weighted average common units outstanding: | ||||
Basic | 47,333,256 | 47,040,714 | 47,254,516 | 46,936,240 |
Common Stock [Member] | ||||
Weighted Average Limited Partnership Units Outstanding, Diluted | 47,333,256 | 47,254,516 | ||
Service [Member] | ||||
Cost of Goods and Services Sold [Abstract] | ||||
Cost of Goods and Services Sold | $ 13,433 | $ 15,418 | $ 29,678 | $ 26,678 |
Revenues: | ||||
Aftermarket services | 15,737 | 18,156 | 33,707 | 31,770 |
Product [Member] | ||||
Cost of Goods and Services Sold [Abstract] | ||||
Cost of Goods and Services Sold | 24,415 | 47,412 | 31,115 | 71,631 |
Revenues: | ||||
Aftermarket services | 24,340 | 52,824 | 30,884 | $ 79,944 |
Common Unitholders [Member] | ||||
Cost of revenues (excluding depreciation and amortization expense): | ||||
Net income (loss) | (24,233) | (37,671) | ||
Common units interest in net income (loss) | (2,905) | |||
General Partner [Member] | ||||
Cost of revenues (excluding depreciation and amortization expense): | ||||
Net income (loss) | $ (345) | $ (537) | ||
General partner interest in net income (loss) | $ (42) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (24,578) | $ (2,947) | $ (38,208) | $ (15,403) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 177 | 128 | (176) | 400 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ (24,401) | $ (2,819) | $ (38,384) | $ (15,003) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,757 | $ 2,370 |
Trade accounts receivable, net of allowances for doubtful accounts | 49,627 | 64,724 |
Inventory, Net | 40,192 | 56,037 |
Prepaid Expense and Other Assets, Current | 6,336 | 4,162 |
Total current assets | 102,912 | 127,293 |
Property, plant, and equipment: | ||
Land and building | 32,058 | 35,125 |
Compressors and equipment | 992,573 | 976,469 |
Vehicles | 8,127 | 9,205 |
Construction in progress | 8,477 | 26,985 |
Total property, plant, and equipment | 1,041,235 | 1,047,784 |
Less accumulated depreciation | (434,600) | (405,417) |
Net property, plant, and equipment | 606,635 | 642,367 |
Other assets: | ||
Deferred tax asset | 24 | 24 |
Intangible assets, net of accumulated amortization | 26,537 | 28,017 |
Operating Lease, Right-of-Use Asset | 29,936 | 21,006 |
Deferred Costs and Other Assets | 3,694 | 3,539 |
Total other assets | 60,191 | 52,586 |
Total assets | 769,738 | 822,246 |
Current liabilities: | ||
Accounts payable | 25,432 | 47,837 |
Deferred Income, Current | 11,164 | 9,505 |
Accrued liabilities and other | 37,590 | 42,581 |
Amounts payable to affiliates | 13,074 | 7,704 |
Total current liabilities | 87,260 | 107,627 |
Other liabilities: | ||
Long-term debt, net | 637,579 | 638,238 |
Deferred tax liabilities | 1,390 | 1,211 |
Due to Related Parties, Noncurrent | 12,019 | 12,324 |
Operating Lease, Liability, Noncurrent | 21,140 | 13,822 |
Other long-term liabilities | 20 | 33 |
Total other liabilities | 672,148 | 665,628 |
Partners' capital: | ||
General partner interest | (371) | 180 |
Common units | 25,450 | 63,384 |
Accumulated other comprehensive income (loss) | (14,749) | (14,573) |
Total partners' capital | 10,330 | 48,991 |
Total liabilities and partners' capital | $ 769,738 | $ 822,246 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Trade accounts receivable, allowances for doubtful accounts | $ 3,441 | $ 3,350 |
Patents, trademarks, and other intangible assets, accumulated amortization | $ 29,231 | $ 27,751 |
Partners' capital: | ||
Common units issued and outstanding | 47,344,351 | 47,078,529 |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Total | General Partner [Member] | Common Unitholders, Units [Member] | Common Unitholders [Member] | Accumulated Other Comprehensive Income [Member] |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ 67,403 | $ 505 | $ 81,984 | $ (15,086) | |
Common units issued and outstanding | 45,769,000 | ||||
Partners' capital rollforward | |||||
Net income (loss) | (12,456) | ||||
Distributions | (476) | (6) | $ (470) | ||
Equity compensation | $ (312) | $ 312 | |||
Vesting of phantom units (units) | 117,000 | ||||
Conversion of Stock, Shares Converted | 1,113,000 | ||||
Conversion of Stock, Amount Converted | $ 3,048 | $ 3,048 | |||
Other comprehensive income (loss) | 272 | 272 | |||
Partners' Capital, Other | (69) | $ (69) | 0 | ||
Net Income (Loss) Allocated to General Partners | (177) | ||||
Net Income (Loss) Allocated to Limited Partners | (12,279) | ||||
Net income (loss) | (15,403) | ||||
Net Income (Loss) Allocated to General Partners | (219) | ||||
Net Income (Loss) Allocated to Limited Partners | (15,184) | ||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | 58,034 | 322 | $ 72,526 | (14,814) | |
Common units issued and outstanding | 46,999,000 | ||||
Net income (loss) | (2,947) | ||||
Distributions | (476) | (7) | $ (469) | ||
Equity compensation | $ 568 | $ 568 | |||
Vesting of phantom units (units) | 66,000 | ||||
Conversion of Stock, Shares Converted | 0 | ||||
Conversion of Stock, Amount Converted | $ 0 | $ 0 | |||
Other comprehensive income (loss) | 128 | 128 | |||
Partners' Capital, Other | (12) | $ (12) | 0 | ||
Net Income (Loss) Allocated to General Partners | (42) | (42) | |||
Net Income (Loss) Allocated to Limited Partners | (2,905) | (2,905) | |||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | $ 55,295 | 273 | $ 69,708 | (14,686) | |
Common units issued and outstanding | 47,065,000 | ||||
Common units issued and outstanding | 47,078,529 | ||||
Beginning balance at Dec. 31, 2019 | $ 48,991 | 180 | $ 63,384 | (14,573) | |
Beginning balance, units at Dec. 31, 2019 | 47,079,000 | ||||
Partners' capital rollforward | |||||
Net income (loss) | (13,630) | (192) | (13,438) | 0 | |
Distributions | (478) | (7) | (471) | 0 | |
Equity compensation | 229 | 0 | 229 | 0 | |
Vesting of phantom units (units) | 213,000 | ||||
Other comprehensive income (loss) | (353) | 0 | 0 | (353) | |
Ending balance at Mar. 31, 2020 | 34,759 | (19) | 49,704 | (14,926) | |
Ending balance, units at Mar. 31, 2020 | 47,292,000 | ||||
Beginning balance at Dec. 31, 2019 | 48,991 | 180 | 63,384 | (14,573) | |
Beginning balance, units at Dec. 31, 2019 | 47,079,000 | ||||
Partners' capital rollforward | |||||
Net income (loss) | (38,208) | (537) | (37,671) | ||
Ending balance at Jun. 30, 2020 | 10,330 | (371) | 25,450 | (14,749) | |
Ending balance, units at Jun. 30, 2020 | 47,344,000 | ||||
Beginning balance at Mar. 31, 2020 | 34,759 | (19) | 49,704 | (14,926) | |
Beginning balance, units at Mar. 31, 2020 | 47,292,000 | ||||
Partners' capital rollforward | |||||
Net income (loss) | (24,578) | (345) | (24,233) | 0 | |
Distributions | (480) | (7) | (473) | 0 | |
Equity compensation | 452 | 0 | 452 | 0 | |
Vesting of phantom units (units) | 52,000 | ||||
Other comprehensive income (loss) | 177 | 0 | 0 | 177 | |
Ending balance at Jun. 30, 2020 | 10,330 | $ (371) | $ 25,450 | $ (14,749) | |
Ending balance, units at Jun. 30, 2020 | 47,344,000 | ||||
Partners' capital rollforward | |||||
Net Income (Loss) Allocated to General Partners | (345) | ||||
Net Income (Loss) Allocated to Limited Partners | $ (24,233) | ||||
Common units issued and outstanding | 47,344,351 |
Consolidated Statements of Pa_2
Consolidated Statements of Partners' Capital (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Partners' Capital [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Distributions | $ 0 | $ 0.0100 | $ 0 | $ 0.0100 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Impairment of Long-Lived Assets Held-for-use | $ 14,348 | $ 2,311 |
Proceeds from Sale of Property, Plant, and Equipment | 3,641 | 478 |
Proceeds from Insurance Settlement, Investing Activities | 517 | 0 |
Distributionstononcontrollingholders | (958) | (952) |
Operating activities: | ||
Net income (loss) | (38,208) | (15,403) |
Reconciliation of net income to cash provided by operating activities: | ||
Depreciation and amortization | 40,025 | 37,586 |
Provision (benefit) for deferred income taxes | 409 | 946 |
Insurance Recoveries | 517 | 0 |
Equity compensation expense | 812 | 955 |
Provision for doubtful accounts | 593 | 272 |
Amortization of deferred financing costs | 1,356 | 1,180 |
Property, Plant and Equipment, Additions | 725 | 0 |
Payments of Debt Restructuring Costs | 4,755 | 0 |
Other non-cash charges and credits | (157) | 374 |
(Gain) Loss on sale of property, plant, and equipment | (443) | (262) |
Liabilities, Fair Value Adjustment | 0 | 3,600 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 13,903 | (5,254) |
Inventories | 7,817 | (5,378) |
Prepaid expenses and other current assets | (2,267) | 491 |
Accounts payable and accrued expenses | (24,566) | 19,942 |
Other | (405) | (1,018) |
Net cash provided by operating activities | 18,180 | 40,342 |
Investing activities: | ||
Purchases of property, plant, and equipment, net | (11,249) | (40,064) |
Net cash used in investing activities | (7,091) | (39,586) |
Financing activities: | ||
Proceeds from Issuance of Long-term Debt | 271,831 | 0 |
Repayments of Long-term Debt | (273,853) | (67) |
Preferred Stock Redemption Discount | 0 | (22,452) |
Financing costs | (2,207) | 0 |
Payments of Distributions to Affiliates | (1,507) | 0 |
Proceeds from Contributions from Affiliates | 0 | 11,142 |
Net cash used in financing activities | (6,694) | (12,329) |
Effect of Exchange Rate on Cash and Cash Equivalents | (8) | 11 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 4,387 | (11,562) |
Cash and cash equivalents at end of period | 6,757 | |
Supplemental cash flow information: | ||
Interest paid | 29,083 | 23,852 |
Income taxes paid | 644 | 1,958 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 6,757 | $ 4,296 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | ORGANIZATION, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Organization CSI Compressco LP, a Delaware limited partnership, is a provider of compression services and equipment for natural gas and oil production, gathering, artificial lift, transmission, processing, and storage. We sell standard and custom-designed, engineered compressor packages and provide aftermarket services and compressor package parts and components manufactured by third-party suppliers. We provide these compression services and equipment to a broad base of natural gas and oil exploration and production, midstream, and transmission companies operating throughout many of the onshore producing regions of the United States as well as in a number of foreign locations, including the countries of Mexico, Canada, and Argentina. We design and fabricate a majority of the compressor packages that we use to provide compression services and sell to customers. Going forward, we plan to have such compressor packages fabricated through one or more third party packagers. Presentation Our unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. In the opinion of our management, our unaudited consolidated financial statements as of June 30, 2020 , and for the three and six month periods ended June 30, 2020 and 2019 , include all normal recurring adjustments that are necessary to provide a fair statement of our results for these interim periods. Operating results for the three and six month periods ended June 30, 2020 are not necessarily indicative of results that may be expected for the twelve months ended December 31, 2020 . The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the U.S. Securities and Exchange Commission ("SEC") and do not include all information and footnotes required by U.S. generally accepted accounting principles ("U.S. GAAP") for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2019 and notes thereto included in our Annual Report on Form 10-K , which we filed with the SEC on March 16, 2020 . Segments Our General Partner has concluded that we operate in one business segment. Significant Accounting Policies Our significant accounting policies are described in the notes to our consolidated financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K . There have been no significant changes in our accounting policies or the application thereof during the second quarter of 2020. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and impairments during the reporting period. Actual results could differ from those estimates, and such differences could be material. Reclassifications Certain previously reported financial information has been reclassified to conform to the current year's presentation. The impact of such reclassifications was not significant to the prior year's overall presentation. Cash Equivalents We consider all highly liquid cash investments with maturities of three months or less when purchased to be cash equivalents. Financial Instruments Financial instruments that subject us to concentrations of credit risk consist principally of trade accounts receivable, which are primarily due from customers of varying size engaged in oil and gas activities in the United States, Canada, Mexico, and Argentina. Our policy is to review the financial condition of potential customers before extending credit and periodically update their credit information. Payment terms are on a short-term basis. The risk of loss from the inability to collect trade receivables is heightened during prolonged periods of low oil and natural gas commodity prices. We have currency exchange rate risk exposure related to transactions denominated in a foreign currency as well as to investments in certain of our international operations. Our risk management activities include the use of foreign currency forward purchase and sale derivative contracts as part of a program designed to mitigate the currency exchange rate risk exposure on selected international operations. We have a $1.5 million outstanding balance under our variable rate revolving credit facility as of June 30, 2020 and face market risk exposure related to changes in applicable interest rates. Foreign Currencies Accumulated other comprehensive income (loss) is included in partners’ capital in the accompanying consolidated balance sheets and consists of the cumulative currency translation adjustments associated with our international operations. Foreign currency exchange (gains) and losses are included in other (income) expense, net and totaled $(0.3) million and $1.4 million during the three and six month periods ended June 30, 2020 , respectively, and $(0.04) million and $(1.0) million during the three and six month periods ended June 30, 2019 , respectively. Inventories Inventories consist primarily of compressor package parts and supplies and work in progress and are stated at the lower of cost or net realizable value. For parts and supplies, cost is determined using the weighted average cost method. The cost of work in progress is determined using the specific identification method. Assets Held for Sale As of June 30, 2020, we had $2.6 million in net book value of compressor equipment classified as held for sale within net property, plant, and equipment on our consolidated balance sheets. For further details of the impairment recorded to adjust the net book value to fair value upon this classification, see Note 3 - Impairments and Other Charges below. Impairments and Other Charges Impairments of long-lived assets, including identified intangible assets, are determined periodically, when indicators of impairment are present. If such indicators are present, the determination of the amount of impairment is based on our judgment as to the future undiscounted operating cash flows to be generated from the relevant assets throughout their remaining estimated useful lives. If these undiscounted cash flows are less than the carrying amount of the related assets, an impairment is recognized for the excess of the carrying value over fair value. Fair value of intangible assets is generally determined using the discounted present value of future cash flows using discount rates commensurate with the risks inherent with the specific assets. Assets held for disposal are recorded at the lower of carrying value or estimated fair value less estimated selling costs. See Note 3 - "Impairments and Other Charges" for additional discussion of recorded impairments. Earnings Per Common Unit Our computations of earnings per common unit are based on the weighted average number of common units outstanding during the applicable period. Basic earnings per common unit are determined by dividing net income (loss) allocated to the common units after deducting the amount allocated to our General Partner (including any distributions to our General Partner on its incentive distribution rights) by the weighted average number of outstanding common units during the period. When computing earnings per common unit under the two class method in periods when distributions are greater than earnings, the amount of the distribution is deducted from net income (loss) and the excess of distributions over earnings is allocated between the General Partner and common units based on how our Partnership Agreement allocates net losses. Diluted earnings per common unit are computed using the treasury stock method, which considers the potential future issuance of limited partner common units. Unvested phantom units are not included in basic earnings per common unit, as they are not considered to be participating securities, but are included in the calculation of diluted earnings per common unit. For the three and six month periods ended June 30, 2020 and June 30, 2019 , all unvested phantom units were excluded from the calculation of diluted common units because the impact was anti-dilutive. Diluted earnings per common unit are computed using the "if converted" method, whereby the amount of net income (loss) and the number of common units issuable are each adjusted as if the Preferred Units, had been converted as of the beginning of the period presented. The calculation of diluted earnings per common unit for the three and six month period ended June 30, 2019 excludes the impact of the Preferred Units, as the inclusion of the impact from the conversion of the Preferred Units into common units would have been anti-dilutive. All remaining outstanding Preferred Units were redeemed for cash on August 8, 2019. Revenue Recognition Performance Obligations. Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Revenue is generally recognized when we transfer control of our products or services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services to our customers. We receive cash equal to the invoice price for most product sales and services and payment terms typically range from 30 to 60 days from the date we invoice our customer. With the exception of the initial terms of our compression services contracts of our medium- and high-horsepower compressor packages, our customer contracts are generally for terms of one year or less. Since the period between when we deliver products or services and when the customer pays for products or services is not to exceed one year, we have elected not to calculate or disclose a financing component for our customer contracts. Depending on the terms of the arrangement, we may also defer the recognition of revenue for a portion of the consideration received because we have to satisfy a future performance obligation. For example, consideration received from customers during the fabrication of new compressor packages is typically deferred until control of the compressor package is transferred to our customer. For revenue associated with mobilization of service equipment as part of a service contract arrangement, such revenue, if significant, is deferred and amortized over the estimated service period. Compression and related services. For compression services revenues recognized over time, our customer contracts typically provide agreed upon monthly service rates and we recognize service revenue based upon the number of days that services have been performed. The majority of our compression services are provided pursuant to contract terms ranging from one month to twenty-four months. Monthly agreements are generally cancellable with 30 days written notice by the customer. Sales taxes, value added taxes, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We recognize the cost for freight and shipping costs when control over our products (i.e. delivery) has transferred to the customer as part of cost of product sales. Use of Estimates. Our revenues do not include material amounts of variable consideration, as our revenues typically do not require significant estimates or judgments. The transaction price on a majority of our arrangements are fixed and product returns are immaterial. Additionally, our arrangements typically do not include multiple performance obligations that require estimates of the stand-alone purchase price for each performance obligation. Revenue on certain aftermarket service arrangements that include time as a component of the transaction price is not recognized until the performance obligation is complete. Contract Assets and Liabilities. We consider contract assets to be trade accounts receivable when we have an unconditional right to consideration and only the passage of time is required before payment is due. In certain instances, particularly those requiring customer specific documentation prior to invoicing, our invoicing of the customer is delayed until certain documentation requirements are met. In those cases, we recognize a contract asset rather than a billed trade accounts receivable until we are able to invoice the customer. Contract assets, along with billed trade accounts receivable, are included in trade accounts receivable in our consolidated balance sheets. We classify contract liabilities as unearned income in our consolidated balance sheets. Such unearned income typically results from advance payments received on orders for new compressor equipment prior to the time such equipment is completed and transferred to the customer in accordance with the customer contract. New equipment sales orders generally take less than twelve months to build and deliver. Bill-and-Hold Arrangements. We design compressor packages based on our customer’s specifications. In some cases, the customer will request us to hold the equipment, upon completion of the unit, until the job site is ready to receive the equipment. When this occurs, we along with the customer sign a bill-and-hold agreement, which outlines that the customer has title to the equipment, the equipment is ready for delivery, we cannot use the equipment or direct it to another customer, and we have a present right to payment. When those criteria have been met and the agreement is executed, we recognize the revenue on the equipment because control of the equipment has passed to our customer and our performance obligations are complete. Entering into these arrangements is something we have done as a courtesy for certain customers for many years. The equipment subject to the bill-and-hold agreements have generally been invoiced and paid for through progressive billings such that at the time the bill-and-hold agreement is executed, the majority of the contractual cash obligation of the customer has been received by us. Fair Value Measurements We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements were utilized in the determination of the carrying value of our Series A Preferred Units (a Level 3 fair value measurement). We also utilize fair value measurements on a recurring basis in the accounting for our foreign currency forward purchase and sale derivative contracts. For these fair value measurements, we utilize the quoted value (a Level 2 fair value measurement). Refer to Note 9 - "Fair Value Measurements" for further discussion. Fair value measurements are also utilized on a nonrecurring basis, such as in the allocation of purchase consideration for acquisition transactions to the assets and liabilities acquired, including intangible assets (a Level 3 fair value measurement) and for the impairment of long-lived assets (a Level 3 fair value measurement). Distributions On January 20, 2020 , our General Partner declared a cash distribution attributable to the quarter ended December 31, 2019 of $0.01 per outstanding common unit. This distribution equates to a distribution of $0.04 per outstanding common unit on an annualized basis. This distribution was paid on February 14, 2020 , to each of the holders of common units of record as of the close of business on February 1, 2020 . On April 20, 2020 , our General Partner declared a cash distribution attributable to the quarter ended March 31, 2020 of $0.01 per outstanding common unit. This distribution equates to a distribution of $0.04 per outstanding common unit on an annualized basis. This distribution was paid on May 15, 2020 , to each of the holders of common units of record as of the close of business on May 1, 2020 . New Accounting Pronouncements Standards adopted in 2020 In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for us the first quarter of fiscal 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. Standards not yet adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses on financial instruments not accounted for at fair value through net income. The provisions require credit impairments to be measured over the contractual life of an asset and developed with consideration for past events, current conditions, and forecasts of future economic information. Credit impairments will be accounted for as an allowance for credit losses deducted from the amortized cost basis at each reporting date. Updates at each reporting date after initial adoption will be recorded through selling, general, and administrative expense. ASU 2016-13 is effective for us the first quarter of fiscal 2023. We continue to assess the potential effects of these changes to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions related to intraperiod tax allocation, interim period income tax calculation methodology, and the recognition of deferred tax liabilities for outside basis differences. It also simplifies certain aspects of accounting for franchise taxes and clarifies the accounting for transactions that results in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for us the first quarter of fiscal 2021. We continue to assess the potential effects of these changes to our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional expedients and exceptions for applying US GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impacts of the provisions of ASU 2020-04 on our consolidated financial statements. |
Impairment and Other Charges (N
Impairment and Other Charges (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | IMPAIRMENTS AND OTHER CHARGES Impairments of Long-Lived Assets During the first half of 2020, the COVID-19 pandemic and decline in oil and gas prices had a significant impact on our customers and industry, resulting in a decrease in demand in certain of our service lines. During the first quarter of 2020, we started to see our customers revise their capital budgets downwards and adjust their operations accordingly, which led to a decline in orders for new compression equipment to be fabricated and sold to third parties. We concluded that these events were indicators of impairment for all our asset groups. We performed a recoverability analysis on all our long-lived asset groups and we determined that the carrying values of our Midland manufacturing facility and related new unit sales inventory exceeded their respective fair values. Therefore, we recorded impairments of approximately $5.4 million related to these assets. Fair value was estimated based on a market approach. During the second quarter of 2020, primarily as a result of continued negative impacts on our compression fleet associated with the COVID-19 pandemic and declines in oil and gas prices, we recorded impairments and other charges of approximately $9.0 million associated with non-core used compressor equipment that we have held for sale, the low-horsepower class of our compression fleet, and field inventory for compression and related services. Fair value used to determine impairments was estimated based on a market approach. Given the dynamic nature of the events, we are not able to reasonably estimate how long our operations will be impacted and the full impact these events will have on our operations. As a result, we could have indicators of impairment again in future periods resulting in additional asset impairments. |
Inventories Inventories (Notes)
Inventories Inventories (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES Components of inventories as of June 30, 2020 and December 31, 2019 , are as follows: June 30, 2020 December 31, 2019 (In Thousands) Parts and supplies $ 30,270 $ 42,814 Work in progress 9,922 13,223 Total inventories $ 40,192 $ 56,037 Inventories |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Borrowings | LONG-TERM DEBT AND OTHER BORROWINGS Long-term debt consists of the following: June 30, 2020 December 31, 2019 Scheduled Maturity (In Thousands) Credit Agreement (presented net of the unamortized deferred financing costs of $0.7 million as of June 30, 2020 and $0.9 million as of December 31, 2019) June 2023 $ 746 $ 2,622 7.25% Senior Notes (presented net of the unamortized discount of $0.4 million as of June 30, 2020 and $1.7 million as of December 31, 2019 and unamortized deferred financing costs of $0.6 million as of June 30, 2020 and $2.8 million as of December 31, 2019) August 2022 79,745 291,444 7.50% First Lien Notes (presented net of the unamortized deferred financing costs of $5.7 million as of June 30, 2020 and $5.8 million as of December 31, 2019, net of the unamortized discount of $0.2 million as of June 30, 2020, and net of deferred restructuring gain of $5.6 million as of June 30, 2020) April 2025 399,613 344,172 10.00%/10.75% Second Lien Notes (presented net of the unamortized discount of $0.8 million as of June 30, 2020, and net of unamortized deferred financing costs of $1.3 million as of June 30, 2020, and net of deferred restructuring gain of $4 million as of June 30, 2020) April 2026 157,475 — 637,579 638,238 Less current portion — — Total long-term debt $ 637,579 $ 638,238 There was a $1.5 million balance outstanding and $2.8 million in letters of credit issued under the Credit Agreement as of June 30, 2020 . As of June 30, 2020 , and subject to compliance with the covenants, borrowing base, and other provisions of the agreements that may limit borrowings under the Credit Agreement, we had availability of $12.3 million . Our credit and senior note agreements contain certain affirmative and negative covenants, including covenants that restrict the ability to pay dividends or other restricted payments. We are in compliance with all covenants of our credit and senior note agreements as of June 30, 2020 . Refer to Note 7 - "Related Party Transactions," for a discussion of our amounts payable to affiliates and long-term affiliate payable to TETRA. Second Amendment to Credit Agreement On June 11, 2020, CSI Compressco, LP and CSI Compressco Sub Inc (the “Borrowers”) entered into the Second Amendment to Loan and Security Agreement (the “Amendment”) amending the Loan and Security Agreement dated June 29, 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) with Bank of America, N.A., in its capacity as administrative agent, issuing bank and swing line issuer (“Administrative Agent”), and the other lenders and loan parties party thereto. The Amendment provided for changes and modifications to the Credit Agreement which include, among other things, changes to certain terms of the Credit Agreement as follows: (i) resizing of the maximum credit commitment under the Credit Agreement from $50,000,000 to $35,000,000 ; (ii) the inclusion of a $5,000,000 reserve with respect to the Borrowing Base (as defined in the Credit Agreement) thereunder, which would result in reduced borrowing availability; (iii) the removal of the financial covenant compliance test with respect to the Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Agreement); (iv) an increase in the applicable margin related to (x) LIBOR Rate Loans (as defined in the Credit Agreement) to a range between 3.00% and 3.50% and (y) Base Rate Loans (as defined in the Credit Agreement) to a range between 2.00% and 2.50% , in each case, which shall be determined according to average daily excess availability under the Credit Agreement; and (v) an increase in the rate used to calculate the commitment fee in respect of the unutilized commitments under the Credit Agreement to 0.50% . In connection to this amendment, $0.2 million of financing costs were incurred, and deferred against the carrying value of the amount outstanding, if any. Additionally, $0.2 million of financing fees were charged to other (income) expense, net during the three month period ended June 30, 2020. First Supplemental Indenture for the Old Notes On June 11, 2020, CSI Compressco, LP and CSI Compressco Finance Inc. (the "Issuers") announced that they had accepted for exchange $215,208,000 , or approximately 72.7% , of their outstanding 7.25% Senior Notes due 2022 (the "Old Notes") that were validly tendered (and not validly withdrawn) by 11:59 p.m., New York City time, on June 10, 2020, for (i) $50,000,000 of the Issuers' 7.50% Senior Secured First Lien Notes due 2025 (the "7.50% First Lien Notes") and (ii) $155,529,000 aggregate principal amount of new 10.00% / 10.75% Senior Secured Second Lien Notes due 2026 (the "10.00%/10.75% Second Lien Notes" and, together with the 7.50% First Lien Notes, the "New Notes"), pursuant to its previously announced exchange offer and consent solicitation (the "Exchange Offer"), which commenced on April 17, 2020. In connection with the exchange offer, we incurred financing fees of $4.8 million which were charged to other (income) expense, net during the three month period ended June 30, 2020. On June 12, 2020, following receipt of the requisite consents of the holders of the Old Notes, the Issuers entered into the First Supplemental Indenture (the "First Supplemental Indenture"), by and among the Issuers, the subsidiary guarantors named therein and U.S. Bank National Association, as trustee, to the Indenture, dated as of August 4, 2014 (the "Unsecured Indenture"), by and among the Issuers, the subsidiary guarantors named therein and U.S. Bank National Association, as trustee. The First Supplemental Indenture eliminated substantially all of the restrictive covenants and certain of the default provisions in the Unsecured Indenture and became operative upon the consummation by the Issuers of the Exchange Offer. On June 12, 2020, the Issuers issued $50,000,000 in aggregate principal amount of New First Lien Notes to certain holders of the Old Notes pursuant to the terms of the Exchange Offer. In March 2018, the Issuers had issued $350,000,000 in aggregate principal amount of 7.50% Senior Secured Notes due 2025 (the "Existing First Lien Notes" and, together with the New First Lien Notes, the "7.50% First Lien Notes") pursuant to the First Lien Base Indenture. The New First Lien Notes were issued as "additional notes" under the First Lien Base Indenture and will be treated as a single class with such notes but will not trade fungibly with the Existing First Lien Notes. Second Lien Notes Indenture On June 12, 2020, the Issuers issued $155,529,000 in aggregate principal amount of the 10.00%/10.75% Second Lien Notes to certain holders of the Old Notes pursuant to the terms of the Exchange Offer. The Issuers issued the 10.00%/10.75% Second Lien Notes pursuant to an indenture, dated June 12, 2020 (the "Second Lien Notes Indenture"),by and among the Issuers, the subsidiary guarantors named therein and U.S. Bank National Association, as trustee (the "Second Lien Trustee"). In connection with the payment of PIK Interest (as defined below), if any, in respect of the 10.00%/10.75% Second Lien Notes, the Issuers will be entitled, without the consent of the Holders, to increase the outstanding aggregate principal amount of the 10.00%/10.75% Second Lien Notes or issue additional notes ("PIK notes") under the Second Lien Notes Indenture on the same terms and conditions as the 10.00%/10.75% Second Lien Notes offered hereby (each such increase or issuance, a "PIK Payment"). The Issuers may issue additional 10.00%/10.75% Second Lien Notes under the Second Lien Notes Indenture from time to time. Any issuance of additional 10.00%/10.75% Second Lien Notes (including PIK notes) is subject to all of the covenants in the Second Lien Notes Indenture. The 10.00%/10.75% Second Lien Notes and any additional 10.00%/10.75% Second Lien Notes subsequently issued under the indenture, will be treated as a single class for all purposes under the indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase. Subject to the making of PIK Payments, the Issuers will issue 10.00%/10.75% Second Lien Notes in denominations of $2,000 and integral multiples of $1,000 in excess of $2,000 ; provided that PIK Payments may result in 10.00%/10.75% Second Lien Notes being issued in denominations of $1.00 and integral multiples of $1.00 . The 10.00%/10.75% Second Lien Notes will mature on April 1, 2026. Interest on the 10.00%/10.75% Second Lien Notes will be payable semi-annually in arrears on April 1 and October 1, commencing on October 1, 2020. The Issuers will make each interest payment to the holders of record on March 15 and September 15 immediately preceding each interest payment date. Interest will accrue at (1) the annual rate of 7.250% payable in cash, plus (2) at the election of the Issuers (made by delivering a notice to the Second Lien Trustee not less than five business days prior to the record date), the annual rate of (i) 2.750% payable in cash (together with the annual rate set forth in clause (1), the "Cash Interest Rate") or (ii) 3.500% payable by increasing the principal amount of the outstanding 10.00%/10.75% Second Lien Notes or by issuing additional PIK notes, in each case rounding up to the nearest $1.00 (such increased principal amount or additional PIK notes, the "PIK Interest"). In the absence of an interest payment election made by the Issuers as set forth above, interest on the notes will be payable as if the Issuers had elected to pay PIK Interest with respect to the portion of interest payable pursuant to clause (2) above. The 10.00%/10.75% Second Lien Notes are jointly and severally, and fully and unconditionally, guaranteed (the "Guarantees") on a senior secured basis initially by each of the Partnership's domestic restricted subsidiaries (other than Finance Corp, certain immaterial subsidiaries and certain other excluded domestic subsidiaries, the "Guarantors") and will be secured by a second-priority security interest in substantially all of the Issuers' and the Guarantors' assets (other than certain excluded assets) (the "Collateral") as collateral security for their obligations under the 10.00%/10.75% Second Lien Notes, subject to certain permitted encumbrances and exceptions. At any time prior to April 1, 2023, the Issuers may on any one or more occasions redeem up to 35% of the aggregate principal amount of the 10.00%/10.75% Second Lien Notes issued under the Second Lien Notes Indenture at a redemption price of 110.000% of the principal amount of the 10.00%/10.75% Second Lien Notes, plus accrued and unpaid interest to the redemption date, with an amount of cash equal to the net cash proceeds of certain equity offerings. On or after April 1, 2023, the Issuers may redeem all or part of the 10.00%/10.75% Second Lien Notes at redemption prices (expressed as percentages of the principal amount) equal to (i) 107.500% for the twelve month period beginning on April 1, 2023; (ii) 105.000% for the twelve-month period beginning on April 1, 2024 and (iii) 100.000% at any time thereafter, plus accrued and unpaid interest up to, but not including, the redemption date. In addition, at any time prior to April 1, 2023, the Company may redeem all or a part of the 10.00%/10.75% Second Lien Notes at a redemption price equal to 100% of the principal amount of the 10.00%/10.75% Second Lien Notes to be redeemed plus a make-whole premium, plus accrued and unpaid interest up to, but not including, the redemption date. The Second Lien Notes Indenture contains customary covenants restricting the Partnership's ability and the ability of its restricted subsidiaries to: (i) pay distributions on, purchase or redeem its common units or purchase or redeem its subordinated debt; (ii) incur or guarantee additional indebtedness or issue certain kinds of preferred equity securities; (iii) create or incur certain liens securing indebtedness; (iv) sell assets, including dispositions of the Collateral; (v) consolidate, merge or transfer all or substantially all of its assets; (vi) enter into transactions with affiliates; and (vii) enter into agreements that restrict distributions or other payments from its restricted subsidiaries to the Partnership. These covenants are subject to a number of important limitations and exceptions, including certain provisions permitting the Partnership, subject to the satisfaction of certain conditions, to transfer assets to certain of its unrestricted subsidiaries. Moreover, if the 10.00%/10.75% Second Lien Notes receive an investment grade rating from at least two rating agencies and no default has occurred and is continuing under the 10.00%/10.75% Second Lien Notes Indenture, many of the restrictive covenants in the Second Lien Notes Indenture will be terminated. The Second Lien Notes Indenture also contains customary events of default and acceleration provisions relating to such events of default, which provide that upon an event of default under the Second Lien Notes Indenture, the Second Lien Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding 10.00%/10.75% Second Lien Notes may declare all of the 10.00%/10.75% Second Lien Notes to be due and payable immediately. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Market Risks and Derivative Contracts | AIR VALUE MEASUREMENTS Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that may differ from the transaction price or market price of the asset or liability. Under U.S. GAAP, the fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value. Fair value measurements should maximize the use of observable inputs and minimize the use of unobservable inputs, where possible. Observable inputs are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs may be needed to measure fair value in situations where there is little or no market activity for the asset or liability at the measurement date and are developed based on the best information available in the circumstances, which could include the reporting entity’s own judgments about the assumptions market participants would utilize in pricing the asset or liability. We have currency exchange rate risk exposure related to transactions denominated in a foreign currency as well as to investments in certain of our international operations. We enter into 30-day foreign currency forward derivative contracts as part of a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries. As of June 30, 2020 , we had the following foreign currency derivative contract outstanding relating to a portion of our foreign operations: US Dollar Notional Amount Traded Exchange Rate Settlement Date (In Thousands) Forward sale Mexican peso $ 5,292 22.58 7/2/2020 Under a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries, we may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as economic hedges of the cash flow of our currency exchange risk exposure, they will not be formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period. The fair values of our foreign currency derivative contracts are based on quoted market values (a Level 2 fair value measurement). The fair values of our foreign currency derivative instruments as of June 30, 2020 and December 31, 2019 , are as follows: Foreign currency derivative contracts Balance Sheet Fair Value at Location June 30, 2020 December 31, 2019 (In Thousands) Forward sale contracts Current assets $ 95 $ — Forward sale contracts Current liabilities — (53 ) Net asset (liability) $ 95 $ (53 ) None of our foreign currency derivative instruments contains credit risk related contingent features that would require us to post assets or collateral for contracts that are classified as liabilities. During the three and six month periods ended June 30, 2020 we recognized $0.3 million and $(1.1) million , respectively, of net (gains) losses associated with our foreign currency derivatives program, and such amounts are included in other (income) expense, net, in the accompanying consolidated statement of operations. During the three and six month periods ended June 30, 2019 , we recognized $0.2 million and $0.3 million , respectively, of net (gains) losses associated with our foreign currency derivative program, and such amounts are included in other (income) expense, net, in the accompanying consolidated statement of operations. During the six months ended June 30, 2020 , we recorded impairments of approximately $9.0 million , reflecting the decreased fair value for certain assets. The fair values used in these impairment calculations were estimated based on a market approach, which is based on significant unobservable inputs (Level 3) in accordance with the fair value hierarchy. Recurring and nonrecurring fair value measurements by valuation hierarchy as of June 30, 2020 and December 31, 2019 are as follows: Fair Value Measurements Using Description Total as of Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Significant (In Thousands) Midland manufacturing facility and related assets $ 19,646 $ — $ — $ 19,646 Non-core used compressor equipment held for sale $ 2,600 $ — $ — $ 2,600 Asset for foreign currency derivative contracts $ 95 $ — $ 95 $ — $ 22,341 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Significant Description Total as of (In Thousands) Liability for foreign currency derivative contracts (53 ) — (53 ) — $ (53 ) The fair values of cash, accounts receivable, accounts payable, accrued liabilities, short-term borrowings, and variable-rate long-term debt pursuant to our Credit Agreement approximate their carrying amounts. The fair values of our publicly traded long-term 7.25% Senior Notes at June 30, 2020 and December 31, 2019 were approximately $41.6 million and $266.0 million , respectively. Those fair values compare to aggregate principal amounts of such notes at June 30, 2020 and December 31, 2019 of $80.7 million and $295.9 million , respectively. The fair values of our long-term 7.50% Senior Secured Notes at June 30, 2020 and December 31, 2019 were approximately $336.4 million and $344.8 million , respectively. These fair values compare to an aggregate principal amount of such notes at June 30, 2020 and December 31, 2019 of $400.0 million and $350.0 million , respectively. The fair value of the CCLP 10.00%/10.75% Second Lien Notes at June 30, 2020 was approximately $96.8 million . This fair value compares to aggregate principal amount of such notes at June 30, 2020 of $155.5 million . We based the fair values of our 7.25% Senior Notes, our 7.50% Senior Secured Notes, and our 10.00%/10.75% Second Lien Notes as of June 30, 2020 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Omnibus Agreement Under the terms of the Omnibus Agreement, our General Partner provides all personnel and services reasonably necessary to manage our operations and conduct our business (other than in Mexico, Canada, and Argentina), and certain of TETRA’s Latin American-based subsidiaries provide personnel and services necessary for the conduct of certain of our Latin American-based businesses. In addition, under the Omnibus Agreement, TETRA provides certain corporate and general and administrative services as requested by our General Partner, including, without limitation, legal, accounting and financial reporting, treasury, insurance administration, claims processing and risk management, health, safety and environmental, information technology, human resources, credit, payroll, internal audit, and tax services. Pursuant to the Omnibus Agreement, we reimburse our General Partner and TETRA for services they provide to us. TETRA and General Partner Ownership As of June 30, 2020 , TETRA's ownership interest in us was approximately 34% of the outstanding common units and an approximate 1.4% general partner interest, through which it holds incentive distribution rights. Other Sources of Financing In February 2019, we entered into a transaction with TETRA whereby TETRA agreed to fund the construction of and purchase from us up to $15.0 million of new compression services equipment and to subsequently lease the equipment back to us in exchange for a monthly rental fee. As of June 30, 2020 , pursuant to this arrangement, $14.8 million has been funded by TETRA for the construction of new compression services equipment and all such equipment was completed and deployed under this agreement. For accounting purposes, the inclusion of an option that allows us to repurchase the equipment at a fixed price during certain periods of the agreement caused the transaction to be accounted for as a financing transaction, as opposed to a sale-leaseback, resulting in the funded amount being recorded as a financing obligation. Accordingly, the compression services equipment is included in property, plant, and equipment and the corresponding financing obligations are included in amounts payable to affiliates and long-term affiliate payable in our consolidated balance sheet. As of June 30, 2020 , the financing obligation was $15.0 million . Imputed interest expense recognized for the three and six month period ended June 30, 2020 was $0.6 million and $1.2 million , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES As a partnership, we are generally not subject to income taxes at the entity level because our income is included in the tax returns of our partners. Our operations are treated as a partnership for federal tax purposes with each partner being separately taxed on its share of taxable income. However, a portion of our business is conducted through taxable U.S. corporate subsidiaries. Accordingly, a U.S. federal and state income tax provision has been reflected in the accompanying statements of operations. Certain of our operations are located outside of the U.S., and the Partnership, through its foreign subsidiaries, is responsible for income taxes in these countries. Our effective tax rate for the six month period ended June 30, 2020 , was negative 3.3% primarily attributable to taxes in certain foreign jurisdictions and Texas gross margin taxes combined with losses generated in entities for which no related tax benefit has been recorded. Included in our deferred tax assets are net operating loss carryforwards and tax credits that are available to offset future income tax liabilities in the U.S. as well as in certain foreign jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. While the outcome of any lawsuits or other proceedings against us cannot be predicted with certainty, management does not consider it reasonably possible that a loss resulting from such lawsuits or proceedings in excess of any amounts accrued has been incurred that is expected to have a material adverse effect on our financial condition, results of operations, |
Revenue from Contract with Cust
Revenue from Contract with Customers Revenue from Contract with Customers (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | EVENUE FROM CONTRACTS WITH CUSTOMERS As of June 30, 2020 , we had $50.0 million of remaining contractual performance obligations for compression services. As a practical expedient, thi s amount does not include revenue for compression service contracts whose original expected duration is less than twelve months an d does not consider the effects of the time value of money . Expected revenue to be recognized in the future as of June 30, 2020 for completion of performance obligations of compression service contracts are as follows: 2020 2021 2022 2023 Thereafter Total (In Thousands) Compression service contracts remaining performance obligations $ 35,385 $ 12,735 $ 1,807 $ 62 $ 46 $ 50,035 Our contract asset balances included in trade accounts receivable in our consolidated balance sheets, primarily associated with customer documentation requirements prior to invoicing, were $8.2 million and $9.6 million as of June 30, 2020 and December 31, 2019 , respectively. Collections associated with progressive billings to customers for the construction of compression equipment is included in unearned income in the consolidated balance sheets. The following table reflects the changes in unearned income in our consolidated balance sheets for the periods indicated: Six Months Ended 2020 2019 (In Thousands) Unearned income, beginning of period $ 9,505 $ 24,898 Additional unearned income 31,619 83,640 Revenue recognized (29,960 ) (77,708 ) Unearned income, end of period $ 11,164 $ 30,830 During the six months ended June 30, 2020 , we recognized in equipment sales revenue $5.7 million from unearned income that was deferred as of December 31, 2019 . During the six months ended June 30, 2019 , we recognized in equipment sales revenue of $18.7 million from unearned income that was deferred as of December 31, 2018 . As of June 30, 2020 and June 30, 2019 , contract costs were immaterial. Disaggregated revenue from contracts with customers by geography is as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In Thousands) Compression and related services U.S. $ 49,084 $ 55,620 $ 106,359 $ 109,637 International 7,252 9,256 15,742 17,941 56,336 64,876 122,101 127,578 Aftermarket services U.S. 15,427 17,745 32,712 31,076 International 310 411 995 694 15,737 18,156 33,707 31,770 Equipment sales U.S. 24,073 52,757 30,111 78,924 International 267 67 773 1,020 24,340 52,824 30,884 79,944 Total Revenue U.S. 88,584 126,122 169,182 219,637 International 7,829 9,734 17,510 19,655 $ 96,413 $ 135,856 $ 186,692 $ 239,292 |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES We have operating leases for some of our office space, warehouse space, operating locations, and machinery and equipment. Our leases have remaining lease terms ranging from 1 to 10 years . Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. Our leases generally require us to pay all maintenance and insurance costs. During the fourth quarter of 2019, we entered into a lease agreement commitment for 14 compressor packages. The leases are for an initial term of seven years and commence upon the completion of the fabrication of the compressor packages. During the first quarter, we took delivery of eight compressor packages. During the second quarter, we took delivery of the remaining six compressor packages. We have no other lease agreement commitments that have not yet commenced that create significant rights and obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In November 2019, we entered into a sale and leaseback transaction with a third-party lessor whereby we received $9.8 million of proceeds from the sale of certain of our compression equipment in service and entered into an associated lease of the same equipment having an initial lease term of seven years. Lease costs are included in either cost of revenues or selling, general, and administrative expense depending on the use of the underlying asset. Total lease expense (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less), was $3.5 million and $6.7 million for the three and six month period ended June 30, 2020 , respectively, of which, $0.6 million and $1.5 million respectively, related to short-term leases. Variable rent expense was not material. Operating lease supplemental cash flow information: Six Months Ended June 30, 2020 2019 (In Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 4,816 $ 2,285 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,471 $ 2,663 Supplemental balance sheet information: June 30, 2020 December 31, 2019 (In Thousands) Operating leases: Operating right-of-use asset $ 29,936 $ 21,006 Accrued liabilities and other $ 8,216 $ 6,706 Operating lease liabilities 21,140 13,822 Total operating lease liabilities $ 29,356 $ 20,528 Additional operating lease information: June 30, 2020 December 31, 2019 Weighted average remaining lease term: Operating leases 5.17 Years 4.51 Years Weighted average discount rate: Operating leases 9.90 % 8.73 % Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2020 : Operating Leases (In Thousands) Remainder of 2019 $ 5,192 2020 8,768 2021 6,575 2022 4,322 2023 4,250 Thereafter 8,819 Total lease payments 37,926 Less imputed interest (8,570 ) Total lease liabilities $ 29,356 |
Lessee, Finance Leases [Text Block] | LEASES We have operating leases for some of our office space, warehouse space, operating locations, and machinery and equipment. Our leases have remaining lease terms ranging from 1 to 10 years . Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. Our leases generally require us to pay all maintenance and insurance costs. During the fourth quarter of 2019, we entered into a lease agreement commitment for 14 compressor packages. The leases are for an initial term of seven years and commence upon the completion of the fabrication of the compressor packages. During the first quarter, we took delivery of eight compressor packages. During the second quarter, we took delivery of the remaining six compressor packages. We have no other lease agreement commitments that have not yet commenced that create significant rights and obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In November 2019, we entered into a sale and leaseback transaction with a third-party lessor whereby we received $9.8 million of proceeds from the sale of certain of our compression equipment in service and entered into an associated lease of the same equipment having an initial lease term of seven years. Lease costs are included in either cost of revenues or selling, general, and administrative expense depending on the use of the underlying asset. Total lease expense (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less), was $3.5 million and $6.7 million for the three and six month period ended June 30, 2020 , respectively, of which, $0.6 million and $1.5 million respectively, related to short-term leases. Variable rent expense was not material. Operating lease supplemental cash flow information: Six Months Ended June 30, 2020 2019 (In Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 4,816 $ 2,285 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,471 $ 2,663 Supplemental balance sheet information: June 30, 2020 December 31, 2019 (In Thousands) Operating leases: Operating right-of-use asset $ 29,936 $ 21,006 Accrued liabilities and other $ 8,216 $ 6,706 Operating lease liabilities 21,140 13,822 Total operating lease liabilities $ 29,356 $ 20,528 Additional operating lease information: June 30, 2020 December 31, 2019 Weighted average remaining lease term: Operating leases 5.17 Years 4.51 Years Weighted average discount rate: Operating leases 9.90 % 8.73 % Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2020 : Operating Leases (In Thousands) Remainder of 2019 $ 5,192 2020 8,768 2021 6,575 2022 4,322 2023 4,250 Thereafter 8,819 Total lease payments 37,926 Less imputed interest (8,570 ) Total lease liabilities $ 29,356 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events [Table Text Block] | SUBSEQUENT EVENTS On July 2, 2020, we completed the previously announced sale of our Midland manufacturing facility for a total sale price of $17.0 million. In connection with the sale, we have entered into an agreement with the buyer that permits us to continue to operate the facility until the completion and sale of our remaining backlog, which we anticipate will be completed during the third quarter of 2020. While we will continue to operate the facility until the completion and sale of our remaining backlog, we no longer intend to fabricate new compressor packages for sales to third parties or for our own service fleet. During the second quarter of 2020, we entered into an agreement to sell 58 low-horsepower units to one of our customers for $2.6 million. We received the proceeds prior to June 30, 2020, however, the assets were not transferred to the customer until after June 30,2020. Therefore, they are classified as held for sale at June 30, 2020 in our financial statements. In addition, in late July, we received a purchase order to sell $6.7 million of idle large horsepower compressor units to one of our significant customers. We expect this sale to be completed and proceeds received by the end of the third quarter. We have and will continue to evaluate the sale of other non-core assets, including our low-horsepower compression fleet. We can provide no assurance that we will consummate a future sale of our low-horsepower compression fleet or any other non-core asset. On July 20, 2020 , the board of directors of our General Partner declared a cash distribution attributable to the quarter ended June 30, 2020 of $0.01 per outstanding common unit. This distribution equates to a distribution of $0.04 per outstanding common unit, on an annualized basis. This distribution will be paid on August 14, 2020 to each of the holders of common units of record as of the close of business on August 1, 2020 . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Nature of Operations [Text Block] | Organization | |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of compressor package parts and supplies and work in progress and are stated at the lower of cost or net realizable value. For parts and supplies, cost is determined using the weighted average cost method. The cost of work in progress is determined using the specific identification method. | |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairments and Other Charges Impairments of long-lived assets, including identified intangible assets, are determined periodically, when indicators of impairment are present. If such indicators are present, the determination of the amount of impairment is based on our judgment as to the future undiscounted operating cash flows to be generated from the relevant assets throughout their remaining estimated useful lives. If these undiscounted cash flows are less than the carrying amount of the related assets, an impairment is recognized for the excess of the carrying value over fair value. Fair value of intangible assets is generally determined using the discounted present value of future cash flows using discount rates commensurate with the risks inherent with the specific assets. Assets held for disposal are recorded at the lower of carrying value or estimated fair value less estimated selling costs. See Note 3 - "Impairments and Other Charges" for additional discussion of recorded impairments. | |
Consolidation policy | Presentation Our unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. In the opinion of our management, our unaudited consolidated financial statements as of June 30, 2020 , and for the three and six month periods ended June 30, 2020 and 2019 , include all normal recurring adjustments that are necessary to provide a fair statement of our results for these interim periods. Operating results for the three and six month periods ended June 30, 2020 are not necessarily indicative of results that may be expected for the twelve months ended December 31, 2020 . The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the U.S. Securities and Exchange Commission ("SEC") and do not include all information and footnotes required by U.S. generally accepted accounting principles ("U.S. GAAP") for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2019 and notes thereto included in our Annual Report on Form 10-K , which we filed with the SEC on March 16, 2020 . | |
Use of estimates policy | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and impairments during the reporting period. Actual results could differ from those estimates, and such differences could be material. | |
Foreign currencies policy | Foreign Currencies Accumulated other comprehensive income (loss) is included in partners’ capital in the accompanying consolidated balance sheets and consists of the cumulative currency translation adjustments associated with our international operations. Foreign currency exchange (gains) and losses are included in other (income) expense, net and totaled $(0.3) million and $1.4 million during the three and six month periods ended June 30, 2020 , respectively, and $(0.04) million and $(1.0) million during the three and six month periods ended June 30, 2019 , respectively. | |
Earnings per common unit policy | Earnings Per Common Unit Our computations of earnings per common unit are based on the weighted average number of common units outstanding during the applicable period. Basic earnings per common unit are determined by dividing net income (loss) allocated to the common units after deducting the amount allocated to our General Partner (including any distributions to our General Partner on its incentive distribution rights) by the weighted average number of outstanding common units during the period. When computing earnings per common unit under the two class method in periods when distributions are greater than earnings, the amount of the distribution is deducted from net income (loss) and the excess of distributions over earnings is allocated between the General Partner and common units based on how our Partnership Agreement allocates net losses. Diluted earnings per common unit are computed using the treasury stock method, which considers the potential future issuance of limited partner common units. Unvested phantom units are not included in basic earnings per common unit, as they are not considered to be participating securities, but are included in the calculation of diluted earnings per common unit. For the three and six month periods ended June 30, 2020 and June 30, 2019 , all unvested phantom units were excluded from the calculation of diluted common units because the impact was anti-dilutive. Diluted earnings per common unit are computed using the "if converted" method, whereby the amount of net income (loss) and the number of common units issuable are each adjusted as if the Preferred Units, had been converted as of the beginning of the period presented. The calculation of diluted earnings per common unit for the three and six month period ended June 30, 2019 excludes the impact of the Preferred Units, as the inclusion of the impact from the conversion of the Preferred Units into common units would have been anti-dilutive. All remaining outstanding Preferred Units were redeemed for cash on August 8, 2019. | |
Revenue [Policy Text Block] | Revenue Recognition Performance Obligations. Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Revenue is generally recognized when we transfer control of our products or services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services to our customers. We receive cash equal to the invoice price for most product sales and services and payment terms typically range from 30 to 60 days from the date we invoice our customer. With the exception of the initial terms of our compression services contracts of our medium- and high-horsepower compressor packages, our customer contracts are generally for terms of one year or less. Since the period between when we deliver products or services and when the customer pays for products or services is not to exceed one year, we have elected not to calculate or disclose a financing component for our customer contracts. Depending on the terms of the arrangement, we may also defer the recognition of revenue for a portion of the consideration received because we have to satisfy a future performance obligation. For example, consideration received from customers during the fabrication of new compressor packages is typically deferred until control of the compressor package is transferred to our customer. For revenue associated with mobilization of service equipment as part of a service contract arrangement, such revenue, if significant, is deferred and amortized over the estimated service period. Compression and related services. For compression services revenues recognized over time, our customer contracts typically provide agreed upon monthly service rates and we recognize service revenue based upon the number of days that services have been performed. The majority of our compression services are provided pursuant to contract terms ranging from one month to twenty-four months. Monthly agreements are generally cancellable with 30 days written notice by the customer. Sales taxes, value added taxes, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We recognize the cost for freight and shipping costs when control over our products (i.e. delivery) has transferred to the customer as part of cost of product sales. Use of Estimates. Our revenues do not include material amounts of variable consideration, as our revenues typically do not require significant estimates or judgments. The transaction price on a majority of our arrangements are fixed and product returns are immaterial. Additionally, our arrangements typically do not include multiple performance obligations that require estimates of the stand-alone purchase price for each performance obligation. Revenue on certain aftermarket service arrangements that include time as a component of the transaction price is not recognized until the performance obligation is complete. Contract Assets and Liabilities. We consider contract assets to be trade accounts receivable when we have an unconditional right to consideration and only the passage of time is required before payment is due. In certain instances, particularly those requiring customer specific documentation prior to invoicing, our invoicing of the customer is delayed until certain documentation requirements are met. In those cases, we recognize a contract asset rather than a billed trade accounts receivable until we are able to invoice the customer. Contract assets, along with billed trade accounts receivable, are included in trade accounts receivable in our consolidated balance sheets. We classify contract liabilities as unearned income in our consolidated balance sheets. Such unearned income typically results from advance payments received on orders for new compressor equipment prior to the time such equipment is completed and transferred to the customer in accordance with the customer contract. New equipment sales orders generally take less than twelve months to build and deliver. Bill-and-Hold Arrangements. We design compressor packages based on our customer’s specifications. In some cases, the customer will request us to hold the equipment, upon completion of the unit, until the job site is ready to receive the equipment. When this occurs, we along with the customer sign a bill-and-hold agreement, which outlines that the customer has title to the equipment, the equipment is ready for delivery, we cannot use the equipment or direct it to another customer, and we have a present right to payment. When those criteria have been met and the agreement is executed, we recognize the revenue on the equipment because control of the equipment has passed to our customer and our performance obligations are complete. Entering into these arrangements is something we have done as a courtesy for certain customers for many years. The equipment subject to the bill-and-hold agreements have generally been invoiced and paid for through progressive billings such that at the time the bill-and-hold agreement is executed, the majority of the contractual cash obligation of the customer has been received by us. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements were utilized in the determination of the carrying value of our Series A Preferred Units (a Level 3 fair value measurement). We also utilize fair value measurements on a recurring basis in the accounting for our foreign currency forward purchase and sale derivative contracts. For these fair value measurements, we utilize the quoted value (a Level 2 fair value measurement). Refer to Note 9 - "Fair Value Measurements" for further discussion. Fair value measurements are also utilized on a nonrecurring basis, such as in the allocation of purchase consideration for acquisition transactions to the assets and liabilities acquired, including intangible assets (a Level 3 fair value measurement) and for the impairment of long-lived assets (a Level 3 fair value measurement). | |
Distributions policy | Distributions On January 20, 2020 , our General Partner declared a cash distribution attributable to the quarter ended December 31, 2019 of $0.01 per outstanding common unit. This distribution equates to a distribution of $0.04 per outstanding common unit on an annualized basis. This distribution was paid on February 14, 2020 , to each of the holders of common units of record as of the close of business on February 1, 2020 . | |
New accounting pronouncements policy | New Accounting Pronouncements Standards adopted in 2020 In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for us the first quarter of fiscal 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. Standards not yet adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses on financial instruments not accounted for at fair value through net income. The provisions require credit impairments to be measured over the contractual life of an asset and developed with consideration for past events, current conditions, and forecasts of future economic information. Credit impairments will be accounted for as an allowance for credit losses deducted from the amortized cost basis at each reporting date. Updates at each reporting date after initial adoption will be recorded through selling, general, and administrative expense. ASU 2016-13 is effective for us the first quarter of fiscal 2023. We continue to assess the potential effects of these changes to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions related to intraperiod tax allocation, interim period income tax calculation methodology, and the recognition of deferred tax liabilities for outside basis differences. It also simplifies certain aspects of accounting for franchise taxes and clarifies the accounting for transactions that results in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for us the first quarter of fiscal 2021. We continue to assess the potential effects of these changes to our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional expedients and exceptions for applying US GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impacts of the provisions of ASU 2020-04 on our consolidated financial statements. | |
Reclassifications [Text Block] | Reclassifications Certain previously reported financial information has been reclassified to conform to the current year's presentation. The impact of such reclassifications was not significant to the prior year's overall presentation. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents We consider all highly liquid cash investments with maturities of three months or less when purchased to be cash equivalents. |
Inventories Inventories (Tables
Inventories Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Components of inventories as of June 30, 2020 and December 31, 2019 , are as follows: June 30, 2020 December 31, 2019 (In Thousands) Parts and supplies $ 30,270 $ 42,814 Work in progress 9,922 13,223 Total inventories $ 40,192 $ 56,037 |
Long-Term Debt and Other Borr_2
Long-Term Debt and Other Borrowings Long-Term Debt and Other Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Table | June 30, 2020 December 31, 2019 Scheduled Maturity (In Thousands) Credit Agreement (presented net of the unamortized deferred financing costs of $0.7 million as of June 30, 2020 and $0.9 million as of December 31, 2019) June 2023 $ 746 $ 2,622 7.25% Senior Notes (presented net of the unamortized discount of $0.4 million as of June 30, 2020 and $1.7 million as of December 31, 2019 and unamortized deferred financing costs of $0.6 million as of June 30, 2020 and $2.8 million as of December 31, 2019) August 2022 79,745 291,444 7.50% First Lien Notes (presented net of the unamortized deferred financing costs of $5.7 million as of June 30, 2020 and $5.8 million as of December 31, 2019, net of the unamortized discount of $0.2 million as of June 30, 2020, and net of deferred restructuring gain of $5.6 million as of June 30, 2020) April 2025 399,613 344,172 10.00%/10.75% Second Lien Notes (presented net of the unamortized discount of $0.8 million as of June 30, 2020, and net of unamortized deferred financing costs of $1.3 million as of June 30, 2020, and net of deferred restructuring gain of $4 million as of June 30, 2020) April 2026 157,475 — 637,579 638,238 Less current portion — — Total long-term debt $ 637,579 $ 638,238 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions Table | US Dollar Notional Amount Traded Exchange Rate Settlement Date (In Thousands) Forward sale Mexican peso $ 5,292 22.58 7/2/2020 |
Derivatives Designated as Hedging Instruments Table | Foreign currency derivative contracts Balance Sheet Fair Value at Location June 30, 2020 December 31, 2019 (In Thousands) Forward sale contracts Current assets $ 95 $ — Forward sale contracts Current liabilities — (53 ) Net asset (liability) $ 95 $ (53 ) |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Finance Lease, Liability, Maturity | Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2020 : Operating Leases (In Thousands) Remainder of 2019 $ 5,192 2020 8,768 2021 6,575 2022 4,322 2023 4,250 Thereafter 8,819 Total lease payments 37,926 Less imputed interest (8,570 ) Total lease liabilities $ 29,356 |
Revenue from Contract with Cu_2
Revenue from Contract with Customers Revenue from Contract with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Six Months Ended 2020 2019 (In Thousands) Unearned income, beginning of period $ 9,505 $ 24,898 Additional unearned income 31,619 83,640 Revenue recognized (29,960 ) (77,708 ) Unearned income, end of period $ 11,164 $ 30,830 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2020 2021 2022 2023 Thereafter Total (In Thousands) Compression service contracts remaining performance obligations $ 35,385 $ 12,735 $ 1,807 $ 62 $ 46 $ 50,035 |
Revenue from Contract with Cu_3
Revenue from Contract with Customers Disaggregation of Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended 2020 2019 2020 2019 (In Thousands) Compression and related services U.S. $ 49,084 $ 55,620 $ 106,359 $ 109,637 International 7,252 9,256 15,742 17,941 56,336 64,876 122,101 127,578 Aftermarket services U.S. 15,427 17,745 32,712 31,076 International 310 411 995 694 15,737 18,156 33,707 31,770 Equipment sales U.S. 24,073 52,757 30,111 78,924 International 267 67 773 1,020 24,340 52,824 30,884 79,944 Total Revenue U.S. 88,584 126,122 169,182 219,637 International 7,829 9,734 17,510 19,655 $ 96,413 $ 135,856 $ 186,692 $ 239,292 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Operating lease supplemental cash flow information: Six Months Ended June 30, 2020 2019 (In Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 4,816 $ 2,285 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,471 $ 2,663 Additional operating lease information: June 30, 2020 December 31, 2019 Weighted average remaining lease term: Operating leases 5.17 Years 4.51 Years Weighted average discount rate: Operating leases 9.90 % 8.73 % |
Finance Lease, Liability, Maturity | Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2020 : Operating Leases (In Thousands) Remainder of 2019 $ 5,192 2020 8,768 2021 6,575 2022 4,322 2023 4,250 Thereafter 8,819 Total lease payments 37,926 Less imputed interest (8,570 ) Total lease liabilities $ 29,356 |
Assets And Liabilities, Lessee [Table Text Block] | Supplemental balance sheet information: June 30, 2020 December 31, 2019 (In Thousands) Operating leases: Operating right-of-use asset $ 29,936 $ 21,006 Accrued liabilities and other $ 8,216 $ 6,706 Operating lease liabilities 21,140 13,822 Total operating lease liabilities $ 29,356 $ 20,528 |
Lessee, Operating Leases [Text Block] | LEASES We have operating leases for some of our office space, warehouse space, operating locations, and machinery and equipment. Our leases have remaining lease terms ranging from 1 to 10 years . Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. Our leases generally require us to pay all maintenance and insurance costs. During the fourth quarter of 2019, we entered into a lease agreement commitment for 14 compressor packages. The leases are for an initial term of seven years and commence upon the completion of the fabrication of the compressor packages. During the first quarter, we took delivery of eight compressor packages. During the second quarter, we took delivery of the remaining six compressor packages. We have no other lease agreement commitments that have not yet commenced that create significant rights and obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In November 2019, we entered into a sale and leaseback transaction with a third-party lessor whereby we received $9.8 million of proceeds from the sale of certain of our compression equipment in service and entered into an associated lease of the same equipment having an initial lease term of seven years. Lease costs are included in either cost of revenues or selling, general, and administrative expense depending on the use of the underlying asset. Total lease expense (inclusive of lease expense for leases not included on our consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less), was $3.5 million and $6.7 million for the three and six month period ended June 30, 2020 , respectively, of which, $0.6 million and $1.5 million respectively, related to short-term leases. Variable rent expense was not material. Operating lease supplemental cash flow information: Six Months Ended June 30, 2020 2019 (In Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 4,816 $ 2,285 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,471 $ 2,663 Supplemental balance sheet information: June 30, 2020 December 31, 2019 (In Thousands) Operating leases: Operating right-of-use asset $ 29,936 $ 21,006 Accrued liabilities and other $ 8,216 $ 6,706 Operating lease liabilities 21,140 13,822 Total operating lease liabilities $ 29,356 $ 20,528 Additional operating lease information: June 30, 2020 December 31, 2019 Weighted average remaining lease term: Operating leases 5.17 Years 4.51 Years Weighted average discount rate: Operating leases 9.90 % 8.73 % Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2020 : Operating Leases (In Thousands) Remainder of 2019 $ 5,192 2020 8,768 2021 6,575 2022 4,322 2023 4,250 Thereafter 8,819 Total lease payments 37,926 Less imputed interest (8,570 ) Total lease liabilities $ 29,356 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details 1) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)$ / shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Number of Reportable Segments | 1 | |||||
Impairment of Long-Lived Assets Held-for-use | $ 8,977 | $ 5,400 | $ 2,311 | $ 14,348 | $ 2,311 | |
Foreign currency exchange gains (losses) | (300) | $ (40) | 1,400 | $ (1,000) | ||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ / shares | $ 0.01 | |||||
Amount of declared distribution on an annualized basis | $ / shares | $ 0.04 | |||||
Operating Lease, Right-of-Use Asset | 29,936 | 29,936 | $ 21,006 | |||
Operating Lease, Liability, Current | 8,216 | 8,216 | 6,706 | |||
Operating Lease, Liability, Noncurrent | 21,140 | 21,140 | $ 13,822 | |||
Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 1,500 | $ 1,500 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies Assets Held for Sale (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long Lived Assets Held-for-sale [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 22,341 | $ (53) |
Non-core used compressor equipment held for sale [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ (2,600) |
Impairment and Other Charges (D
Impairment and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 8,977 | $ 5,400 | $ 2,311 | $ 14,348 | $ 2,311 |
Asset Impairment Charges | $ 9,000 | ||||
compressor equipment held for sale, low-horsepower class of our compression fleet, and field inventory [Member] | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 9,000 |
Inventories Inventories (Detail
Inventories Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Other Inventory, Supplies, Gross | $ 30,270 | $ 42,814 |
Inventory, Work in Process, Gross | 9,922 | 13,223 |
Inventory, Net | $ 40,192 | $ 56,037 |
Long-Term Debt and Other Borr_3
Long-Term Debt and Other Borrowings (Details) - USD ($) | Jun. 12, 2020 | Jun. 11, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 10, 2020 | Dec. 31, 2019 | Mar. 22, 2018 |
Debt Instrument [Line Items] | ||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 8,977,000 | $ 5,400,000 | $ 2,311,000 | $ 14,348,000 | $ 2,311,000 | |||||
Long-term debt | 637,579,000 | 637,579,000 | $ 638,238,000 | |||||||
Less current portion | 0 | 0 | 0 | |||||||
Long-term debt, net | 637,579,000 | 637,579,000 | 638,238,000 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 12,300,000 | 12,300,000 | ||||||||
Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 1,500,000 | 1,500,000 | ||||||||
Long-term debt | 746,000 | 746,000 | 2,622,000 | |||||||
Letters of Credit Outstanding, Amount | 2,800,000 | 2,800,000 | ||||||||
CSI Compressco Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 79,745,000 | $ 79,745,000 | $ 291,444,000 | |||||||
Senior Note interest rate | 7.25% | 7.25% | 7.25% | |||||||
Compressco Partners First Lien Notes 7.50% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 399,613,000 | $ 399,613,000 | $ 344,172,000 | |||||||
Senior Note interest rate | 7.50% | 7.50% | ||||||||
Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 157,475,000 | $ 157,475,000 | 0 | |||||||
CSI Compressco [Member] | CSI Compressco Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | 400,000 | 400,000 | 1,700,000 | |||||||
Unamortized Debt Issuance Expense | 600,000 | 600,000 | 2,800,000 | |||||||
CSI Compressco [Member] | Compressco Partners First Lien Notes 7.50% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized Debt Issuance Expense | 5,700,000 | $ 5,700,000 | $ 5,800,000 | |||||||
Second Amendment to Loan and Security Agreement [Member] | CSI Compressco [Member] | Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line Of Credit Facility, Reserve Amount | $ 5,000,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000,000 | $ 50,000,000 | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 200,000 | |||||||||
First Supplemental Indenture for the Old Notes [Member] | CSI Compressco [Member] | CSI Compressco Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Note interest rate | 7.25% | 7.25% | ||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 4,800,000 | |||||||||
Debt Instrument, Amount Outstanding | $ 215,208,000 | |||||||||
Debt Instrument, Percentage Of Debt | 72.70% | |||||||||
First Supplemental Indenture for the Old Notes [Member] | CSI Compressco [Member] | Compressco Partners First Lien Notes 7.50% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 50,000,000 | $ 50,000,000 | ||||||||
First Supplemental Indenture for the Old Notes [Member] | CSI Compressco [Member] | Senior Secured First Lien Notes Due 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 350,000,000 | |||||||||
First Supplemental Indenture for the Old Notes [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | 155,529,000 | |||||||||
Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 155,529,000 | |||||||||
Debt Instrument, Debt Issued Denomination Amount | $ 2,000 | $ 2,000 | ||||||||
Minimum [Member] | First Supplemental Indenture for the Old Notes [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Note interest rate | 10.00% | 10.00% | ||||||||
Minimum [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Debt Issued Denomination Integral Multiples Amount | $ 1,000 | $ 1,000 | ||||||||
Maximum [Member] | First Supplemental Indenture for the Old Notes [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Note interest rate | 10.75% | 10.75% | ||||||||
PIK Payments [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Debt Issued Denomination Amount | $ 1 | $ 1 | ||||||||
Rate 1 [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Note interest rate | 7.25% | 7.25% | ||||||||
Rate 2 [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Note interest rate | 2.75% | 2.75% | ||||||||
Rate 3 [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Note interest rate | 3.50% | 3.50% | ||||||||
Debt Instrument, Redemption, Period One [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 110.00% | |||||||||
Debt Instrument, Redemption, Period Two [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 107.50% | |||||||||
Debt Instrument, Redemption, Period Three [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | |||||||||
Debt Instrument, Redemption, Period Four [Member] | Second Lien Notes Indenture [Member] | CSI Compressco [Member] | Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Second Amendment to Loan and Security Agreement [Member] | CSI Compressco [Member] | Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Second Amendment to Loan and Security Agreement [Member] | CSI Compressco [Member] | Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||||
Base Rate [Member] | Minimum [Member] | Second Amendment to Loan and Security Agreement [Member] | CSI Compressco [Member] | Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||
Base Rate [Member] | Maximum [Member] | Second Amendment to Loan and Security Agreement [Member] | CSI Compressco [Member] | Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Derivatives, Fair Value [Line Items] | |||||
Liabilities, Fair Value Adjustment | $ 0 | $ (166) | $ 0 | $ (3,600) | |
Derivative Liability, Fair Value, Gross Liability | $ (53) | ||||
Derivative Liability, Fair Value, Gross Asset | 95 | 95 | |||
Net gains associated with foreign currency derivative program | 300 | $ 200 | (1,100) | $ 300 | |
Asset Impairment Charges | 9,000 | ||||
CSI Compressco Senior Notes [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair value of Senior Notes | 41,600 | 41,600 | 266,000 | ||
Notes Payable | $ 80,700 | $ 80,700 | $ 295,900 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | 7.25% | ||
Compressco Partners First Lien Notes 7.50% [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair value of Senior Notes | $ 336,400 | $ 336,400 | $ 344,800 | ||
Notes Payable | $ 400,000 | $ 400,000 | 350,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |||
Compressco Partners Second Lien Notes 10.00%/10.75% [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Fair value of Senior Notes | $ 96,800 | $ 96,800 | |||
Notes Payable | 155,500 | 155,500 | |||
Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 22,341 | 22,341 | (53) | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 95 | 95 | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (53) | ||||
Mandatorily Redeemable Preferred Stock [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (19,646) | (19,646) | |||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Mandatorily Redeemable Preferred Stock [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 95 | 95 | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (53) | ||||
Fair Value, Inputs, Level 2 [Member] | Mandatorily Redeemable Preferred Stock [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Mandatorily Redeemable Preferred Stock [Member] | Fair Value, Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ (19,646) | $ (19,646) | |||
Forward Sale Contract, Mexican Pesos [Member] | |||||
Derivative [Line Items] | |||||
Traded exchange rate | 22.58 | 22.58 | |||
Value date | Jul. 2, 2020 | ||||
Derivative, Notional Amount | $ 5,292 | $ 5,292 | |||
Other Current Assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 95 | 95 | 0 | ||
Current Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 | $ (53) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Finance Lease, Interest Expense | $ 600 | $ 1,200 | |
Due to Related Parties, Noncurrent | 12,019 | 12,019 | $ 12,324 |
Due from Related Parties, Current | 14,800 | ||
Finance Lease, Liability | 15,000 | 15,000 | |
Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties, Noncurrent | $ 15,000 | $ 15,000 | |
Common Unitholders [Member] | |||
Related Party Transaction [Line Items] | |||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 34.00% | ||
General Partner [Member] | |||
Related Party Transaction [Line Items] | |||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.40% |
Income Taxes Income Tax (Detail
Income Taxes Income Tax (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Income Statement [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | (3.30%) |
Revenue from Contract with Cu_4
Revenue from Contract with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 50,035 | $ 50,035 | ||
Compression and related services | 56,336 | $ 64,876 | 122,101 | $ 127,578 |
Aftermarket services | 96,413 | 135,856 | 186,692 | 239,292 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Compression and related services | 49,084 | 55,620 | 106,359 | 109,637 |
Aftermarket services | 88,584 | 126,122 | 169,182 | 219,637 |
Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Compression and related services | 7,252 | 9,256 | 15,742 | 17,941 |
Aftermarket services | 7,829 | 9,734 | 17,510 | 19,655 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Aftermarket services | 15,737 | 18,156 | 33,707 | 31,770 |
Service [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Aftermarket services | 15,427 | 17,745 | 32,712 | 31,076 |
Service [Member] | Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Aftermarket services | 310 | 411 | 995 | 694 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Aftermarket services | 24,340 | 52,824 | 30,884 | 79,944 |
Product [Member] | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Aftermarket services | 24,073 | 52,757 | 30,111 | 78,924 |
Product [Member] | Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Aftermarket services | $ 267 | $ 67 | $ 773 | $ 1,020 |
Revenue from Contract with Cu_5
Revenue from Contract with Customers Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract with Customer, Liability, Revenue Recognized | $ 5,700 | $ 18,700 | ||
Contract with Customer, Asset, before Allowance for Credit Loss | 8,200 | $ 9,600 | ||
Revenue, Remaining Performance Obligation, Amount | 50,035 | |||
Deferred Revenue | 11,164 | 30,830 | $ 9,505 | $ 24,898 |
Deferred Revenue, Additions | 31,619 | 83,640 | ||
Deferred Revenue, Revenue Recognized | $ (29,960) | $ (77,708) |
Revenue from Contract with Cu_6
Revenue from Contract with Customers Compression and related services (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 50,035 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 35,385 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 12,735 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 1,807 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 62 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 46 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Finance Lease, Interest Expense | $ 600 | $ 1,200 | |||
Sale Leaseback Transaction, Net Book Value | $ 9,800 | ||||
Operating Lease, Cost | 3,500 | $ 600 | 6,700 | ||
Short-term Lease, Cost | 1,500 | ||||
Operating Lease, Payments | 4,816 | $ 2,285 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 12,471 | $ 2,663 | |||
Operating Lease, Right-of-Use Asset | 29,936 | 29,936 | 21,006 | ||
Operating Lease, Liability, Current | 8,216 | 8,216 | 6,706 | ||
Operating Lease, Liability, Noncurrent | 21,140 | 21,140 | 13,822 | ||
Operating Lease, Liability | $ 29,356 | $ 29,356 | $ 20,528 | ||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 2 months 1 day | 5 years 2 months 1 day | 4 years 6 months 3 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 9.90% | 9.90% | 8.73% | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 5,192 | $ 5,192 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 8,768 | 8,768 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 6,575 | 6,575 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 4,322 | 4,322 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4,250 | 4,250 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 8,819 | 8,819 | |||
Lessee, Operating Lease, Liability, Payments, Due | 37,926 | 37,926 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ (8,570) | $ (8,570) | |||
Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Remaining Lease Term | 10 years | ||||
Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Remaining Lease Term | 1 year |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Subsequent Event [Line Items] | |
Amount of declared distribution | $ 0.01 |
Amount of declared distribution on an annualized basis | $ 0.04 |
Uncategorized Items - a20200630
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 2,370,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 15,858,000 |