FTS International (FTSI) 10-K 27 Feb 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Feb. 21, 2020	Jun. 28, 2019
Document and Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	FTS INTERNATIONAL, INC.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		107,110,919
Entity Public Float			$ 182.4
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0001529463
Amendment Flag	false

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended								12 Months Ended			36 Months Ended	96 Months Ended
	Jan. 31, 2017	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2019
Revenue
Revenue		$ 142.3	$ 186	$ 225.8	$ 221.6	$ 248.1	$ 324.4	$ 454.6	$ 423.3	$ 775.7	$ 1,450.4	$ 1,352.7
Revenue from related parties					0.9		10	38.7	44.2	0.9	92.9	113.4
Total revenue		142.3	186	225.8	222.5	248.1	334.4	493.3	467.5	776.6	1,543.3	1,466.1
Operating expenses
Costs of revenue (excluding depreciation of $82.5, $75.9 and $75.6, respectively, included in depreciation and amortization below)		102.7	147.2	165.9	163.1	169.4	222.2	329.4	312.2	578.9	1,033.2	1,009.8
Selling, general and administrative		22.7	21.1	21.7	23.6	21.6	19.7	20.8	25.8	89.1	87.9	81
Depreciation and amortization		22.1	22.7	22.8	22.4	22.3	21.1	20.7	20.6	90	84.7	86.6
Impairments and other charges		0.9	5.1	2.8	60.8	3.2	10	4	2	69.6	19.2	1.8
Gain on disposal of assets, net		(0.4)	(0.1)	(1.2)	0.3	(0.3)	(0.1)	(0.2)	0.5	(1.4)	(0.1)	(1.4)
Gain on insurance recoveries	$ (2.9)											(2.9)
Total operating expenses		148	196	212	270.2	216.2	272.9	374.7	361.1	826.2	1,224.9	1,174.9
Operating (loss) income		(5.7)	(10)	13.8	(47.7)	31.9	61.5	118.6	106.4	(49.6)	318.4	291.2
Interest expense, net		(7.2)	(7.6)	(7.7)	(8.2)	(9.4)	(10.4)	(12.1)	(17.4)	(30.7)	(49.3)	(86.7)
Gain (loss) on extinguishment of debt, net			0.8	(0.1)	0.5	0.9	(0.6)	(0.8)	(9.3)	1.2	(9.8)	(1.4)
Equity in net income (loss) of joint venture affiliate					0.6	3	(0.7)	(1.2)		0.6	1.1	(0.8)
Gain on sale of equity interest in joint venture affiliate			7							7
(Loss) income before income taxes		(12.9)	(9.8)	6	(54.8)	26.4	49.8	104.5	79.7	(71.5)	260.4	202.3	$ 391.2	$ 4,375.5
Income tax expense		0.1	1	0.1	0.2	(0.1)	0.2	0.9	1	1.4	2	1.6
Net (loss) income		$ (13)	$ (10.8)	$ 5.9	$ (55)	26.5	49.6	103.6	78.7	(72.9)	258.4	200.7
Net (loss) income attributable to common stockholders						$ 26.5	$ 49.6	$ 103.6	$ 501.9	$ (72.9)	$ 681.6	$ (25.9)
Basic and diluted (loss) earnings per share attributable to common stockholders		$ (0.12)	$ (0.10)	$ 0.05	$ (0.50)	$ 0.24	$ 0.45	$ 0.95	$ 5.68	$ (0.67)	$ 6.54	$ (0.50)
Shares used in computing basic and diluted (loss) earnings per share		107.3	108.6	109.7	109.7	109.4	109.3	109.3	88.4	108.8	104.2	51.8

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Depreciation
Depreciation	$ 82.5	$ 75.9	$ 75.6

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 223	$ 177.8
Accounts receivable, net	77	158.3
Inventories	45.5	66.6
Prepaid expenses and other current assets	7	7
Total current assets	352.5	409.7
Property, plant, and equipment, net	227	275.3
Operating lease right-of-use assets	26.3
Intangible assets, net	29.5	29.5
Investment in joint venture affiliate		23.2
Other assets	4	6
Total assets	639.3	743.7
Current liabilities
Accounts payable	36.4	86.8
Accrued expenses	22.9	29.3
Current portion of operating lease liabilities	14.3
Other current liabilities	11.6	16.3
Total current liabilities	85.2	132.4
Long-term debt	456.9	503.2
Operating lease liabilities	13.9
Other liabilities	45.6	1.2
Total liabilities	601.6	636.8
Commitments and contingencies (Note 13)
Stockholders’ equity
Preferred stock, $0.01 par value, 25,000,000 shares authorized
Common stock, $0.01 par value, 320,000,000 shares authorized, 107,107,401 shares issued and outstanding at December 31, 2019 and 109,434,841 shares issued and outstanding at December 31, 2018	36.4	36.4
Additional paid-in capital	4,382	4,378.4
Accumulated deficit	(4,380.7)	(4,307.9)
Total stockholders’ equity	37.7	106.9
Total liabilities and stockholders’ equity	$ 639.3	$ 743.7

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	320,000,000	320,000,000
Common stock, issued (in shares)	107,107,401	109,434,841
Common stock, outstanding (in shares)	107,107,401	109,434,841

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net (loss) income	$ (72.9)	$ 258.4	$ 200.7
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	90	84.7	86.6
Stock-based compensation	15.4	15.2
Amortization of debt discounts and issuance costs	1.8	2.5	3.9
Impairment of assets	9.7
Gain on disposal of assets, net	(1.4)	(0.1)	(1.4)
(Gain) loss on extinguishment of debt, net	(1.2)	9.8	1.4
Non-cash provision for supply commitment charges	58.5	19.2	1.2
Cash paid to settle supply commitment charges	(17.6)	(5.3)	(1.8)
Gain sale of equity interest in joint venture affiliate	(7)
Inventory write-down	1.4
Gain on insurance recoveries			(2.9)
Other non-cash items	4.7	(1.6)	0.5
Changes in operating assets and liabilities:
Accounts receivable	79	72.7	(154.9)
Accounts receivable from related parties		3	(2.9)
Inventories	19	(22.6)	(20.1)
Prepaid expenses and other assets	(1.5)	2.8	(4.4)
Accounts payable	(47.3)	(41.6)	65.8
Accrued expenses and other liabilities	(6.7)	(12.3)	8.3
Net cash provided by operating activities	123.9	384.8	180
Cash flows from investing activities
Capital expenditures	(54.4)	(100.5)	(64)
Proceeds from disposal of assets	3.3	1.9	4.1
Proceeds from sale of equity interest interest in joint venture affiliate	30.7
Proceeds from insurance recoveries			4.2
Other			1.1
Net cash used in investing activities	(20.4)	(98.6)	(54.6)
Cash flows from financing activities
Repayments of long-term debt	(46.4)	(625.1)	(77.6)
Repurchases of common stock	(9.9)
Taxes paid related to net share settlement of equity awards	(2)	(1.1)
Net proceeds from issuance of common stock		303
Payments of revolving credit facility issuance costs		(2.4)
Net cash used in financing activities	(58.3)	(325.6)	(77.6)
Net increase (decrease) in cash, cash equivalents, and restricted cash	45.2	(39.4)	47.8
Cash, cash equivalents, and restricted cash at beginning of period	177.8	217.2	169.4
Cash, cash equivalents, and restricted cash at end of period	223	177.8	217.2
Supplemental cash flow information:
Interest paid	31	48.1	83.2
Income tax payments, net	2.5	2.3
Noncash investing and financing activities:
Capital expenditures included in accounts payable	0.9	$ 4	$ 13.6
Operating lease liabilities incurred from obtaining right-of-use assets	11
Operating lease liabilities and right-of-use assets derecognized due to lease terminations	$ 3.2

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Millions	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at beginning of period at Dec. 31, 2016	$ 35.9	$ 3,712.1	$ (4,767)	$ (1,019)
Balance at beginning of period (in shares) at Dec. 31, 2016	51,783,000
Net (loss) income			200.7	200.7
Balance at end of period at Dec. 31, 2017	$ 35.9	3,712.1	(4,566.3)	(818.3)
Balance at end of period (in shares) at Dec. 31, 2017	51,783,000
Net (loss) income			258.4	258.4
Activity related to stock plans		14		14
Activity related to stock plans (in shares)	160,000
Recapitalization of convertible preferred stock to common stock	$ 0.4	349.4		349.8
Recapitalization of convertible preferred stock to common stock (in shares)	39,415,000
Issuance of common stock	$ 0.1	302.9		303
Issuance of common stock (in shares)	18,077,000
Balance at end of period at Dec. 31, 2018	$ 36.4	4,378.4	(4,307.9)	$ 106.9
Balance at end of period (in shares) at Dec. 31, 2018	109,435,000			109,434,841
Net (loss) income			(72.9)	$ (72.9)
Cumulative effect of accounting change			0.1	0.1
Repurchase of common stock		(9.9)		$ (9.9)
Repurchase of common stock (in shares)	(2,956,000)			(3,000,000)
Activity related to stock plans		13.5		$ 13.5
Activity related to stock plans (in shares)	628,000
Balance at end of period at Dec. 31, 2019	$ 36.4	$ 4,382	$ (4,380.7)	$ 37.7
Balance at end of period (in shares) at Dec. 31, 2019	107,107,000			107,107,401

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block
DESCRIPTION OF BUSINESS	FTS INTERNATIONAL, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — DESCRIPTION OF BUSINESS Throughout the notes to these consolidated financial statements, the terms “the Company,” “we,” “us,” “our” or “ours” refer to FTS International, Inc., together with its consolidated subsidiaries. We are one of the largest providers of hydraulic fracturing services in North America. Our services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production (“E&P”), companies in shale and other unconventional resource formations. Our customers include leading E&P companies that specialize in unconventional oil and natural gas resources in North America. We operate in five of the most active major unconventional basins in the United States: the Permian Basin, the SCOOP/STACK Formation, the Marcellus/Utica Shale, the Eagle Ford Shale and the Haynesville Shale. Substantially all of our business activities support our well completion services. We manage our business, allocate resources, and assess our financial performance on a consolidated basis; therefore, we do not have separate operating segments. In 2014, we entered into a joint venture agreement with the Sinopec Oilfield Service Corporation (“Sinopec”). This joint venture collaboration offered hydraulic stimulation services in China. The joint venture company, SinoFTS Petroleum Services Ltd. (“SinoFTS”), was owned 55% by Sinopec and 45% by the Company. SinoFTS serves both Sinopec and other E&P companies in China. In August 2019, FTSI closed on the sale of its 45% equity ownership interest in SinoFTS, to Sinopec. In exchange, FTSI, through its affiliate FTS International Netherlands B.V., received consideration of $26.9 million for the sale of its equity interest, and through FTS International Services, LLC, received a royalty fee of $5.8 million for a license for its intellectual property use and for future limited support of the joint venture’s operations. After conducting an analysis of the relative fair values of the equity interest and royalty fee, FTSI allocated $30.7 million of the total consideration received to the sale of its equity interest and $2.0 million to the prepaid royalty fee. FTSI recognized a gain of $7.0 million on the sale of its equity interest. The prepaid royalty fee will be recognized over approximately the next six years. Concentrations of Risk Our business activities are concentrated in the well completion services segment of the oilfield services industry in the United States. The market for these services is cyclical, and we depend on the willingness of our customers to make operating and capital expenditures to explore for, develop, and produce oil and natural gas in the United States. The willingness of our customers to undertake these activities depends largely upon prevailing industry conditions that are predominantly influenced by current and expected prices for oil and natural gas. Historically, a low commodity-price environment has caused our customers to significantly reduce their hydraulic fracturing activities and the prices they are willing to pay for those services. During these periods, these customer actions materially adversely affected our business, financial condition and results of operations. Our customer base has historically been concentrated. Our business, financial condition and results of operations could be materially adversely affected if one or more of our significant customers ceases to engage us for our services on favorable terms, or at all, or fails to pay, or delays in paying, us significant amounts of our outstanding receivables. The following table shows the customers who represented more than 10% of our total revenue in any one of the periods indicated below: Year Ended December 31, 2019 2018 2017 Diamondback E&P LLC 16 % * % * % Ascent Resources 10 % * % * % EQT Production Company * % 12 % * % Devon Energy Corporation * % 12 % * % * Related Parties We have historically provided services and sold equipment to Chesapeake Energy Corporation and its affiliates (“Chesapeake”), which beneficially owned approximately 20% of our outstanding common stock as of December 31, 2019, and had the right to designate two individuals to serve on our board of directors during the periods presented. Revenue earned from Chesapeake was $0.1 million, $92.9 million and $113.1 million in 2019, 2018 and 2017, respectively. All revenue earned from Chesapeake is based on the prevailing market prices for our services at the time the work is performed. At both December 31, 2019 and 2018, we had accounts receivable balances of zero from Chesapeake. We sold equipment to SinoFTS for $0.9 million, $0.3 million and $0.3 million in 2019, 2018 and 2017, respectively. All revenue earned from SinoFTS is based on prevailing market prices. At both December 31, 2019 and 2018, we had accounts receivable balances of zero from this related party.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company and all majority-owned domestic and foreign subsidiaries. Investments over which we have the ability to exercise significant influence over operating and financial policies, but do not hold a controlling interest, are accounted for using the equity method of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation. There were no items of other comprehensive income in the periods presented. Use of Estimates The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, related revenues and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements and during the periods presented. We base these estimates on historical results and various other assumptions believed to be reasonable, all of which form the basis for making estimates concerning the carrying values of assets and liabilities that are not readily available from other sources. Actual results could differ materially from those estimates. Cash and Cash Equivalents Cash equivalents include only investments with an original maturity of three months or less. We occasionally hold cash deposits in financial institutions that exceed federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at their invoiced amounts or amounts for which we have a right to invoice based on services completed. We establish an allowance for doubtful accounts to reduce the carrying value of our accounts receivable based on a number of factors, including the length of time that accounts receivable are past due, our previous loss history, and the customer’s creditworthiness. Inventories Inventories consist of proppants and chemicals that are used to provide hydraulic fracturing services and maintenance parts that are used to service our hydraulic fracturing equipment. Proppants generally consist of raw sand, resin-coated sand or ceramic particles. Inventories are stated at the lower of cost or net realizable value. The cost basis of our inventories is based on the average cost method and includes in-bound freight costs. As necessary, we record an adjustment to decrease the value of slow moving and obsolete inventory to its net realizable value. To determine the adjustment amount, we regularly review inventory quantities on hand and compare them to estimates of future product demand, market conditions, production requirements and technological developments. Restricted Cash The Company had $9.1 million of restricted cash at January 1, 2018 and zero restricted cash at December 31, 2019 and 2018. This amount represented cash used to secure certain letters of credit issued to our casualty and general liability insurance provider. In February 2018, we closed on a new revolving credit facility, and issued replacement letters of credit under the new facility, which allowed us to cancel the cash secured letters of credit. Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation, which is generally provided by using the straight-line method over the estimated useful lives of the individual assets. We manufacture our hydraulic fracturing units and the cost of this equipment, which includes direct and indirect manufacturing costs, is capitalized and carried as construction-in-progress until it is completed. Expenditures for renewals and betterments that extend the lives of our service equipment, which includes the replacement of significant components of service equipment, are capitalized and depreciated. Other repairs and maintenance costs are expensed as incurred. We capitalize qualifying costs related to the acquisition or development of internal-use software. Capitalization of costs begins after the conceptual formulation stage has been completed. Capitalized costs are amortized over the estimated useful life of the software, which ranges between three and five years. The unamortized balance of capitalized software costs at December 31, 2019 and 2018, was $0.4 million and $3.7 million, respectively. Amortization of computer software was $3.4 million, $4.2 million and $5.3 million in 2019, 2018 and 2017, respectively. Leases We determine if a contract contains a lease at inception. We lease certain administrative offices, sales offices, and operational facilities. We also lease some service equipment and light duty vehicles. These leases have remaining lease terms of 6 years or less. Some leases contain options to extend the leases, and some include options to terminate the leases. We do not include renewal or termination options in our assessment of the lease terms unless extension or termination for certain leases is deemed to be reasonably certain. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. Operating lease assets and liabilities are recognized at the lease commencement date, which is the date we take possession of the property. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are valued based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the lease term including reasonably certain renewal periods. We estimate this rate based on prevailing financial market conditions, credit analysis, and management judgment. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the operating lease asset as reductions of expense over the lease term. We provide residual value guarantees for our leases of light-duty vehicles and certain service equipment. No amounts related to these residual value guarantees have been deemed probable and included in the lease liabilities on our consolidated balance sheet; however, if the value for all of the vehicles was zero and if we cancelled these leases at December 31, 2019, we would be required to pay a total of $10.5 million in residual value guarantees. Intangible Assets We have historically acquired indefinite-lived intangible assets related to business acquisitions. Intangible assets with indefinite lives are not amortized. The amount of indefinite-lived intangible assets recorded in our consolidated balance sheets for December 31, 2019 and 2018, was $29.5 million, which is related to our tradename. Impairment of Long-Lived Assets and Intangible Assets Long-lived assets, such as property, plant, equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Recoverability is assessed based on the undiscounted future cash flows generated by the asset or asset group. If the carrying amount of an asset or asset group is not recoverable, we recognize an impairment loss equal to the amount by which the carrying amount exceeds fair value. We estimate fair value based on the income, market, or cost valuation techniques. Intangible assets with indefinite lives are reviewed at least annually for impairment, and in interim periods if certain events occur indicating that the carrying value of intangible assets may be impaired. We estimate fair values utilizing valuation methods such as discounted cash flows and comparable market valuations. We perform our annual impairment tests at the beginning of the fourth quarter. Equity Method Investments Investments in which we have the ability to exercise significant influence, but not control, are accounted for pursuant to the equity method of accounting. We recognize our proportionate share of earnings or losses of our international affiliates three months after they occur. When events and circumstances warrant, investments accounted for under the equity method of accounting are evaluated for impairment. An impairment charge is recorded whenever a decline in value of an investment below its carrying amount is determined to be other-than-temporary. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in earnings in the period that includes the enactment date. We recognize future tax benefits to the extent that such benefits are more likely than not to be realized. We record a valuation allowance to reduce the value of a deferred tax asset if based on the consideration of all available evidence, it is more likely than not that all or some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. We evaluate our deferred income taxes quarterly to determine if a valuation allowance is required by considering all available evidence, including historical and projected taxable income and tax planning strategies. Any deferred tax asset subject to a valuation allowance is still available to us to offset future taxable income, subject to annual limitations in the event of an “ownership change” under Section 382 of the Internal Revenue Code. We will adjust a previously established valuation allowance if we change our assessment of the amount of deferred income tax asset that is more likely than not to be realized. Revenue Recognition The Company contracts with its customers to perform hydraulic fracturing services on one or more oil or natural gas wells. Under these arrangements, we satisfy our performance obligations as services are rendered, which is generally upon the completion of a fracturing stage. We typically complete one or more stages per day. A stage is considered complete when we have met the specifications set forth by the customer, at which time we have the right to invoice the customer and the customer is obligated to pay us for the services rendered. The price for our services typically includes an equipment charge and product charges for proppant, chemicals and other products actually consumed during the course of providing our services. The price for each stage of a particular well does not vary significantly. Payment terms average approximately two months from the date a stage is completed. All consideration owed to us for services performed during a period is fixed and our right to receive it is unconditional. We also contract with some customers to provide them with the exclusive use of a fracturing fleet for a period of time. Our customers can generally terminate these contracts with less than 90 days’ notice. We satisfy our performance obligation as services are rendered, which is based on the passage of time rather than the completion of a stage. Under these arrangements, we have the right to receive consideration from a customer even if circumstances outside of our control prevent us from performing our work. All consideration owed to us for services performed during a period is fixed and our right to receive it is unconditional. Pricing for our services for all contracts is frequently negotiated with our customers and is based on prevailing market rates during each reporting period. The amounts we invoice our customers for services performed during a period are directly related to the value received by the customers for the period. There is no inherent uncertainty to the amount of consideration we will receive for services performed during a period and no judgment is required to allocate a portion of the transaction price to a future period. Accordingly, we are not required to identify any unsatisfied performance obligations nor attribute any revenue to them. During the periods presented we acted as a principal, rather than as an agent, for all of the goods and services that we provided to our customers; our customer arrangements did not include obligations for refunds or warranties of our work; our revenue does not include sales taxes collected from our customers; and we did not incur incremental costs to obtain or fulfill contracts with our customers. To comply with the FASB disclosure objective, we are required to disaggregate our revenue into categories if it will provide an enhanced understanding of how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. To evaluate an appropriate level of disaggregation of revenue, we considered the following aspects of our business: · We provide a single service to our customers. · We only generate revenue in the U.S. onshore market. · We have a homogeneous customer base, which is comprised of large oil and gas exploration companies. · We provide our service over a short period of time. · We do not disaggregate our revenue into categories for any external communications or to make resource allocation decisions. · We do not have separate operating segments. Based on the above factors, we concluded that no additional disaggregation of revenue was necessary or meaningful to help depict the nature, amount, timing and uncertainty of our revenues and cash flows. Unconditional Purchase Obligations We have historically entered into inventory supply arrangements with our vendors, primarily for sand, that contain unconditional purchase obligations. These represent obligations to transfer funds in the future for fixed or minimum quantities of goods or services at fixed or minimum prices. We enter into these unconditional purchase obligation arrangements in the normal course of business to ensure that adequate levels of sourced product are available to us. To account for these arrangements, we must monitor whether we may be required to make a minimum payment to a vendor in a future period because our projected inventory purchases may not satisfy our minimum commitments. If we conclude that it is probable that we will make a minimum payment under these arrangements, we will record an estimated loss for these commitments in the current period. Stock-Based Compensation We measure all employee stock-based compensation awards using a fair value method and record this cost in the consolidated financial statements. Our stock-based compensation relates to restricted stock units issued to our employees. On the date that an equity-classified award is granted, we determine the fair value of the award and recognize the compensation cost over the requisite service period, which typically is the period over which the award vests. For equity-classified awards with graded vesting based solely on the satisfaction of a service condition, we recognize compensation cost as a single award on a straight-line basis. We account for forfeited awards as forfeitures occur, which results in a reversal of stock-based compensation cost previously recognized up to the date of the forfeiture. For stock-based awards with performance conditions that affect vesting, we only recognize compensation cost when it is probable that the performance conditions will be met. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: · Level One: The use of quoted prices in active markets for identical financial instruments. · Level Two: The use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable in the market or can be corroborated by observable market data. · Level Three: The use of significant unobservable inputs that typically require the use of management’s estimates of assumptions that market participants would use in pricing. Money market funds, classified as cash and cash equivalents, are the only financial instruments that are measured and recorded at fair value on the Company’s balance sheets. The following table presents money market funds at their level within the fair value hierarchy. (In millions) Total Level 1 Level 2 Level 3 December 31, 2019 Money market funds $ 193.6 $ 193.6 $ — $ — Reclassifications Current liabilities related to accrued supply commitment charges have been reclassified from accounts payable to other current liabilities on the balance sheet as of December 31, 2018, and the statements of cash flows for the years ended December 31, 2018 and 2017 to conform to current year presentation. These reclassifications had no effect on total assets, total liabilities, total equity, or net cash provided by operating activities as previously reported. New Accounting Standards Updates In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases . The FASB subsequently issued a number of additional ASUs to update this guidance. This standard was issued to increase transparency and comparability among organizations by requiring that a right-of-use asset and corresponding lease liability be recorded on the balance sheet for leases with terms longer than 12 months. We elected to use three practical expedients allowed under the guidance. According to these practical expedients we did not reassess whether existing contracts are or contain a lease; we did not reassess whether existing leases are operating or finance leases; and we did not reassess the accounting for initial direct costs for existing leases. Our approach to adopting this new standard included a review of existing leases and other executory contracts that could contain embedded leases and we identified the key terms that were necessary for us to calculate the right-of-use asset and lease liability. These consolidated financial statements have been prepared in accordance with the new ASU utilizing the modified retrospective transition method, which resulted in the recording of operating lease liabilities of approximately $38 million as of January 1, 2019 on our consolidated balance sheet with an immaterial effect on our consolidated statement of stockholders’ equity (deficit) and no related effect on our consolidated statement of operations. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This standard was issued to change the presentation of amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard on January 1, 2018, and the effects of this standard and related required disclosures have been reflected in our condensed consolidated statements of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated statements of cash flows: December 31, (In millions) 2017 Cash and cash equivalents $ 208.1 Restricted cash included in prepaid expenses and other current assets 9.1 Total cash, cash equivalents, and restricted cash shown in the $ 217.2 As of December 31, 2017, we had amounts included in restricted cash that represented amounts required to be set aside by contractual agreement with our casualty and general liability insurance provider and corporate credit card provider. In February 2018, these contractual agreements to set aside cash were terminated. Therefore, as of December 31, 2018 and 2019, we had no restricted cash balance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments . This standard requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new standard will also apply to financial assets arising from revenue transactions such as accounts receivables. We adopted this standard on January 1, 2020, and it had no material effect on our consolidated financial statements.

SUPPLEMENTAL BALANCE SHEET INFO

SUPPLEMENTAL BALANCE SHEET INFORMATION	12 Months Ended
	Dec. 31, 2019
SUPPLEMENTAL BALANCE SHEET INFORMATION
SUPPLEMENTAL BALANCE SHEET INFORMATION	NOTE 3 — SUPPLEMENTAL BALANCE SHEET INFORMATION Accounts Receivable The following table summarizes our accounts receivable balance: December 31, (In millions) 2019 2018 Trade accounts receivable $ 80.3 $ 159.2 Allowance for doubtful accounts (3.3) (0.9) Accounts receivable, net $ 77.0 $ 158.3 The change in allowance for doubtful accounts is as follows: (In millions) 2019 2018 2017 Balance at beginning of year $ 0.9 $ 2.1 $ 2.3 Provision for bad debts, net included in selling, general, 2.4 — 0.3 Uncollectible receivables written off — (1.2) (0.5) Balance at end of year $ 3.3 $ 0.9 $ 2.1 Inventories The following table summarizes our inventories: December 31, (In millions) 2019 2018 Maintenance parts $ 43.0 $ 60.3 Proppants and chemicals 2.3 4.3 Other 0.2 2.0 Total inventories $ 45.5 $ 66.6 Prepaid Expenses and Other Current Assets The following table summarizes our prepaid expenses and other current assets: December 31, (In millions) 2019 2018 Prepaid expenses $ 4.4 $ 5.8 Other 2.6 1.2 Total prepaid expenses and other current assets $ 7.0 $ 7.0 Property, Plant, and Equipment, net The following table summarizes our property, plant, and equipment: Estimated December 31, Useful Life (Dollars in millions) 2019 2018 (in years) Service equipment $ 797.2 $ 780.5 2.5 – 10 Buildings and improvements 63.3 63.1 15 – 39 Office, software, and other equipment 44.4 44.7 3 – 7 Vehicles and transportation equipment 6.5 9.2 5 – 20 Land 7.0 7.7 N/A Construction-in-process and other 20.1 32.4 N/A Total property, plant, and equipment 938.5 937.6 Accumulated depreciation and amortization (711.5) (662.3) Total property, plant, and equipment, net $ 227.0 $ 275.3 Depreciation expense was $90.0 million, $84.7 million and $86.6 million in 2019, 2018 and 2017, respectively. Accrued Expenses The following table summarizes our accrued expenses: December 31, (In millions) 2019 2018 Sales, use, and property taxes $ 7.1 $ 12.5 Employee compensation and benefits 8.0 6.1 Interest 4.1 4.3 Insurance 3.1 4.3 Other 0.6 2.1 Total accrued expenses $ 22.9 $ 29.3 Other Current Liabilities The following table summarizes our other current liabilities: December 31, (In millions) 2019 2018 Accrued supply commitment charges $ 11.3 $ 14.3 Other 0.3 2.0 Total other current liabilities $ 11.6 $ 16.3 Other Liabilities The following table summarizes our other liabilities: December 31, (In millions) 2019 2018 Accrued supply commitment charges $ 44.0 $ — Other 1.6 1.2 Total other liabilities $ 45.6 $ 1.2

INDEBTEDNESS AND BORROWING FACI

INDEBTEDNESS AND BORROWING FACILITY	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block
INDEBTEDNESS AND BORROWING FACILITY	NOTE 4 — INDEBTEDNESS AND BORROWING FACILITY The following table summarizes our long-term debt: December 31, (In millions) 2019 2018 Term loan due April 2021 $ 90.0 $ 121.0 Senior notes due May 2022 369.9 386.9 Total principal amount 459.9 507.9 Less unamortized discount and debt issuance costs (3.0) (4.7) Total long-term debt $ 456.9 $ 503.2 Estimated fair value of long-term debt $ 317.2 $ 461.2 Estimated fair values for our term loan and senior notes were determined using recent trading activity and/or bid-ask spreads and are classified as Level 2 in the FASB’s fair value hierarchy. 2021 Term Loan On April 16, 2014, we entered into a $550 million term loan, which matures on April 16, 2021 (“Term Loan”), with a group of lenders with Wells Fargo Bank, N.A., as administrative agent. The Term Loan bears interest at a three-month London Interbank Offered Rate (“LIBOR”) plus a margin of 4.75% per annum, with a 1.00% LIBOR floor. Interest is payable on interest rate reset dates, which is generally monthly. The Term Loan was issued at a discount of $2.7 million for aggregate consideration of $547.3 million and resulted in net proceeds to the Company of $540.0 million after debt issuance costs of $7.3 million. The effective interest rate of the Term Loan was 6.9% at December 31, 2019. The obligation to pay principal and interest on the Term Loan is jointly and severally guaranteed on a full and unconditional basis by all of our wholly owned domestic subsidiaries. The Term Loan is secured on a first priority basis by 100% of the equity interests of our existing and future domestic subsidiaries and 65% of the voting equity interests of our existing and future foreign subsidiaries. The Term Loan is secured on a second priority basis by our accounts receivable, inventory, and deposit accounts. The Term Loan contains covenants that could, in certain circumstances, limit our ability to issue additional debt, repurchase or pay dividends on our common or preferred stock, sell substantially all of our assets, make certain investments, or enter into certain other transactions. In 2019, we repaid $31.0 million of aggregate principal amount of Term Loan. We recognized a loss on debt extinguishment of $0.2 million. In 2018, we repaid $310.0 million of aggregate principal amount of Term Loan. We recognized a loss on debt extinguishment of $2.7 million. We were in compliance with all of the covenants in the Term Loan at December 31, 2019, 2018 and 2017. 2022 Senior Notes On April 16, 2014, we completed an offering of $500 million of 6.25% senior secured notes due May 1, 2022, in a private offering to qualified institutional buyers (“2022 Senior Notes”). Interest is payable semiannually, in arrears, on May 1 and November 1. The Company received net proceeds of $489.7 million after debt issuance costs of $10.3 million, which resulted in an effective interest rate of 6.58% for these notes. The obligation to pay principal and interest on the 2022 Senior Notes is jointly and severally guaranteed on a full and unconditional basis by all of our wholly owned domestic subsidiaries. The 2022 Senior Notes are secured on the same basis as the Term Loan. All security requirements for the 2022 Senior Notes will cease upon the full repayment of the Term Loan. The 2022 Senior Notes contain substantially the same covenants as the Term Loan. Neither the Term Loan nor the 2022 Senior Notes contain maintenance financial covenants. The 2022 Senior Notes are redeemable, at our option, beginning on May 1, 2017, at a premium of approximately 4.7%. The redemption premium then declines each year until May 1, 2020, at which time we may redeem the notes at par value. In 2019, we repurchased $17.0 million of aggregate principal amount of 2022 Senior Notes in the qualified institutional market. We recognized a gain on debt extinguishment of $1.4 million. In 2018, we repurchased $22.1 million of aggregate principal amount of 2022 Senior Notes in the qualified institutional market. We recognized a gain on debt extinguishment of $1.2 million. In 2017, we repurchased $17.3 million of aggregate principal amount of 2022 Senior Notes in the qualified institutional market. We recognized a gain on debt extinguishment of $0.4 million. We were in compliance with all of the covenants in the indenture governing our 2022 Senior Notes at December 31, 2019, 2018, and 2017. 2020 Senior Floating Rate Notes On June 1, 2015, we completed an offering of $350 million of senior secured floating rate notes due June 15, 2020, in a private offering to qualified institutional buyers (“2020 Senior Notes”). The 2020 Senior Notes bore interest at a three-month LIBOR plus a margin of 7.5% per annum. The obligation to pay principal and interest on the 2020 Senior Notes was jointly and severally guaranteed on a full and unconditional basis by all of our wholly owned domestic subsidiaries. The 2020 Senior Notes were secured on a first priority basis by our accounts receivable, inventory, deposit accounts, and certain hydraulic fracturing and other equipment. The 2020 Senior Notes were secured on a second priority basis by 100% of the equity interests of our existing and future domestic subsidiaries and 65% of the voting equity interests of our existing and future foreign subsidiaries. In 2018, we repaid all $290.0 million of the remaining principal amount of 2020 Senior Notes. We recognized a loss on debt extinguishment of $8.3 million. In 2017, we repaid $60.0 million of aggregate principal amount of 2020 Senior Notes. We recognized a loss on debt extinguishment of $1.8 million. We were in compliance with all of the covenants in the indenture governing our 2020 Senior Notes for all periods that these notes were outstanding. Revolving Credit Facility On February 22, 2018, we entered into a $250 million revolving credit facility, with an initial maturity date of February 22, 2023, with a group of lenders with Wells Fargo, N.A., as administrative agent. The maturity date of the facility could be accelerated to January 16, 2021 or January 31, 2022, if we do not repay or refinance our Term Loan or 2022 Senior Notes, respectively, before these dates. LIBOR borrowings under the credit facility bear interest at LIBOR plus a margin of 1.75% to 2.00% per annum, depending on facility utilization. Base rate loans are also available at our option. The credit facility includes a $50 million sub-limit for the issuance of letters of credit. The issuance of letters of credit reduces the amount available under the facility. We also pay a commitment fee on the unused amount of the facility of 0.25% to 0.375% per annum, depending on facility utilization. The obligations under the credit facility are secured by substantially all of our accounts receivable, inventory, deposit accounts, intellectual property and the equity of some current and future wholly-owned domestic and foreign subsidiaries. The maximum availability of credit under the credit facility is limited at any time to the lesser of $250 million or a borrowing base. The borrowing base is based on percentages of eligible accounts receivable and eligible inventory and is subject to certain reserves. In an event of default or if the amount available under the credit facility is less than either 10% of our maximum availability or $12.5 million, we will be required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0. If at any time borrowings and letters of credit issued under the credit facility exceed the borrowing base, we will be required to repay an amount equal to such excess. The credit facility contains covenants that could, in certain circumstances, limit our ability to issue additional debt, repurchase or pay dividends on our common stock, sell substantially all of our assets, make certain investments, or enter into certain other transactions. We were in compliance with all of the covenants in the credit facility at December 31, 2019 and 2018. As of December 31, 2019, the borrowing base was $60.2 million and therefore our maximum availability under the credit facility was $60.2 million. As of December 31, 2019, there were no borrowings outstanding under the credit facility, and letters of credit totaling $4.3 million were issued, resulting in $55.9 million of availability under the credit facility. The following table summarizes the maturities of our long-term debt at December 31, 2019: (In millions) 2020 $ — 2021 90.0 2022 369.9 2023 — 2024 — 2025 and thereafter — Total principal amount of long-term debt $ 459.9

LEASES

LEASES	12 Months Ended
	Dec. 31, 2019
LEASES
LEASES	NOTE 5 — LEASES We had no material amount of finance leases or subleases at December 31, 2019. The following table summarizes the components of our lease costs. Year Ended December 31, (In millions) 2019 Operating lease cost $ 21.1 Short-term lease cost 5.8 Total lease cost $ 26.9 Short-term lease costs represent costs related to leases with terms of one year or less. We elected the practical expedient to not recognize lease assets and liabilities for these leases. We had no material variable lease costs in 2019. Total rental expense under previous lease accounting guidance was $49.9 million and $26.8 million in 2018 and 2017, respectively. The following table includes other supplemental information for our operating leases. Year Ended December 31, (Dollars in millions) 2019 Cash paid for amounts included in the measurement of our lease liabilities $ 21.3 Right-of-use assets obtained in exchange for lease liabilities $ 11.0 Right-of-use assets recognized upon adoption of the leasing standard $ 37.8 Weighted-average remaining lease term 2.3 years Weighted-average discount rate The following table summarizes the maturity of our operating leases as of December 31, 2019. (In millions) 2020 $ 15.4 2021 11.0 2022 1.2 2023 1.2 2024 1.0 2025 and thereafter — Total lease payments 29.8 Less imputed interest (1.6) Total lease liabilities $ 28.2 The following table summarizes the maturity of our operating leases as of December 31, 2018, under previous lease accounting guidance. (In millions) 2019 2020 2021 2022 2023 Thereafter Operating leases $ 26.0 $ 14.9 $ 4.6 $ 1.5 $ 1.5 $ 1.1

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
	Dec. 31, 2019
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 6 — STOCKHOLDERS’ EQUITY (DEFICIT) Share repurchase program In May 2019, our board of directors approved an authorization for a total share repurchase of up to $100 million of the Company’s common stock to be executed through open market or private transactions. The authorization expires on May 14, 2020 and may be discontinued at any time. In 2019 we repurchased approximately 3.0 million shares of common stock at an average price of $3.34 per share for a total of $9.9 million. At December 31, 2019, $90.1 million of the authorized amount was available for share repurchases under this program. The amount and timing of share repurchases are at the sole discretion of the Company, and plans for future share repurchases may be revised at any time. The share repurchase program could be affected by, among other things, changes in results of operations, capital expenditures, cash flows, and applicable tax laws. Initial Public Offering of Common Stock We completed an initial public offering (“IPO”) of 22.4 million shares of common stock at a price to the public of $18.00 per share, of which 18.1 million shares were sold by the Company and 4.3 million shares were sold by one of our stockholders, a subsidiary of Chesapeake Energy Corporation. The shares began trading on The New York Stock Exchange on February 2, 2018, under the ticker symbol “FTSI.” The Company received net proceeds from the offering of $303.0 million, after offering costs. We used the net proceeds from the offering for general corporate purposes, primarily debt repayments. The Company did not receive any proceeds from the offering of shares by the selling stockholder. Reverse Stock Split In connection with the IPO, we amended and restated our certificate of incorporation to effect a 69.258777:1 reverse stock split of our common stock. Convertible Preferred Stock In September 2012, we issued and sold 350,000 shares of Series A convertible preferred stock, par value $0.01 per share (the “Preferred Stock”), to certain of our then existing common stockholders. The Preferred Stock was sold for aggregate consideration of $350 million, and resulted in net proceeds to the Company of $349.8 million after the payment of $0.2 million in issuance costs. Each share of Preferred Stock was convertible into 2,573 shares of our common stock, subject to adjustment upon the occurrence of specified events set forth under terms of the Preferred Stock. The Preferred Stock was redeemable at the Company’s option at any time after all of our debt was repaid. The redemption price per share was an amount in cash equal to the original price per share of the Preferred Stock, plus such additional amount as would give the holder an after-tax internal rate of return for investment in the Preferred Stock of 25% per annum (the “Accreted Amount”). At December 31, 2017, the Accreted Amount of the Preferred Stock was estimated to be $1,132.7 million. The Preferred Stock was mandatorily convertible into shares of our common stock in connection with an initial public offering of our common stock if both of the following conditions were met (a “Qualified IPO”): · Aggregate proceeds to the Company were at least $250 million ; and · The split-adjusted initial offering price to the public was not less than $1.50 per share. In connection with a Qualified IPO, each share of Preferred Stock would be convertible into the number of shares of common stock that had a market value (based on the initial offering price to the public) equal to the Accreted Amount. The Preferred Stock was mandatorily redeemable for cash upon a change of control, provided that all of our debt had been repaid. Each share of Preferred Stock would be redeemed for an amount in cash equal to the higher of: · The Accreted Amount; or · The original purchase price of the Preferred Stock plus an amount equal to 20% of the then outstanding equity value of the Company divided by the number of Preferred Stock shares then outstanding. The Preferred Stock ranked senior to our common stock with respect to dividend rights and distribution rights in the event of any liquidation, winding-up or dissolution of the Company. The amount that each share of Preferred Stock was entitled to in liquidation is equal to the Accreted Amount. The holders of the Preferred Stock were also common stockholders of the Company and, prior to the completion of our initial public offering, collectively appointed 100% of our board of directors. Therefore, the Preferred Stock holders could have directed the Company to redeem the Preferred Stock at any time after all of our debt had been repaid; however, we did not consider this to be probable for any of the periods the Preferred Stock was outstanding due to the amount of debt outstanding at that time. Therefore, we did not record any accretion of the Preferred Stock in our consolidated financial statements. In connection with the IPO, a number of shares of our Preferred Stock converted into common stock at the rate of 155.944841 shares of common stock per each share of Preferred Stock. All remaining shares of Preferred Stock were canceled. We refer to this conversion and the cancelation together as the recapitalization of the Preferred Stock. The conversion rate of the Preferred Stock and shares canceled were calculated so that following the recapitalization, stockholders that did not own Preferred Stock would own 7% of our common stock prior to the IPO. The recapitalization of all outstanding shares of our Preferred Stock resulted in 39.4 million new shares of common stock.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2019
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 7 — STOCK-BASED COMPENSATION 2014 Long-Term Incentive Plan In 2014, our stockholders approved the 2014 Long-Term Incentive Plan (“2014 LTIP”). The 2014 LTIP authorized the grant of up to 55 million restricted stock units (“RSUs”) to salaried employees of the Company, as determined by the compensation committee of the board of directors. This plan originally was set to expire on March 3, 2024. The 2014 LTIP allowed for the grant of stock-settled and cash-settled RSUs. The Company had the power to elect, at its sole discretion, to settle any or all of the stock-settled RSUs wholly or partly in cash. The awards that were granted in 2014 had three vesting conditions: a performance condition based on Company goals, a performance condition based on the occurrence of a qualifying liquidity event such as an initial public offering of our common stock, and a service-period condition. The performance condition was based on Company goals that provided for an upward or downward adjustment to the RSUs granted based on Company performance. The service-period condition provided that 50% of the number of adjusted RSUs vested on each of December 31, 2015, and December 31, 2016. Under generally accepted accounting principles for stock-based compensation, a performance condition that affects vesting and is based on a corporate liquidity event such as an initial public offering of common stock precludes the recognition of compensation expense related to the awards until this performance condition has been met. Therefore, no compensation expense for these awards was recognized until this performance condition was met. In February 2018, we completed an IPO of our common stock. This transaction qualified as the final vesting condition for these RSUs. The compensation expense recognized in 2018 for the stock-settled RSUs was $2.0 million. The compensation expense recognized in 2018 for the cash-settled RSUs was $1.7 million. The Company elected to settle the stock-settled RSUs in cash. The 2014 LTIP was terminated after the payout of the RSUs. 2018 Equity and Incentive Compensation Plan Our board of directors and stockholders adopted the 2018 Equity and Incentive Compensation Plan (“2018 Plan”) to attract and retain officers, employees, directors, consultants and other key personnel and to provide those persons incentives and awards for performance. The 2018 Plan originally allocated 2.8 million shares of common stock in the form of incentive stock options, non-qualified stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights, or other stock-based awards. In 2019 our board of directors and stockholders amended and restated the 2018 Plan to increase the number of shares available for issuance by 3.6 million shares. Any shares that become available as a result of forfeiture, cancelation, expiration or cash settlement of an award are allowed to be granted again at a future date under the 2018 Plan. This plan expires on February 1, 2028. As of December 31, 2019, up to approximately 2.1 million shares were available for future grants under this plan. RSUs are generally valued at the market price of a share of our common stock on the date of grant. Awards granted to employees generally vest over a three or four-year period from the date of grant and are expensed on a straight-line basis over that period, which is considered to be the requisite service period. The following table summarizes the 2019 transactions related to the RSUs granted under the 2018 Plan. Weighted- Number Average of Units Grant-Date (In thousands) Fair Value Unvested balance at January 1, 2019 2,440 $ 19.62 Granted 2,039 2.56 Vested (907) 17.33 Forfeited — — Unvested balance at December 31, 2019 3,572 $ 10.46 Stock-based compensation expense for these RSUs was $15.4 million and $15.2 million in 2019 and 2018, respectively. The weighted-average grant-date fair value per share of RSUs granted was $2.56 and $19.67 in 2019 and 2018, respectively. The fair value of RSUs vested was $15.8 million and $5.0 million in 2019 and 2018, respectively. At December 31, 2019, there was $26.8 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.2 years. The compensation cost charged against income for all stock-based compensation was $15.4 million and $18.9 million in 2019 and 2018, respectively. The total income tax benefit for all stock-based compensation was $1.2 million and $3.8 million in 2019 and 2018 respectively; however, such benefit was substantially offset by the valuation allowance against our deferred tax assets.

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2019
RETIREMENT PLAN
RETIREMENT PLAN	NOTE 8 — RETIREMENT PLAN We offer a 401(k) defined contribution retirement plan (“401(k) Plan”), which allows a participant to defer, by payroll deductions, from 0% to 100% of the participant’s annual compensation, limited to certain annual maximums set by the Internal Revenue Code. The 401(k) Plan has historically provided a discretionary matching contribution to each participant’s account. Company matching contributions to the 401(k) Plan are made in cash and were $2.5 million, $4.1 million, and $1.5 million in 2019, 2018 and 2017, respectively. The Company suspended matching contributions in July 2015 and resumed making contributions in July 2017. The Company again suspended matching contributions in January 2020.

IMPAIRMENTS AND OTHER CHARGES

IMPAIRMENTS AND OTHER CHARGES	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block
IMPAIRMENTS AND OTHER CHARGES	NOTE 9 — IMPAIRMENTS AND OTHER CHARGES The following table summarizes our impairments and other charges: Year Ended December 31, (In millions) 2019 2018 2017 Supply commitment charges $ 58.5 $ 19.2 $ 1.2 Impairment of assets 9.7 — — Inventory write-down 1.4 — — Lease abandonment charges — — 0.6 Total impairments and other charges $ 69.6 $ 19.2 $ 1.8 Supply Commitment Charges We incur supply commitment charges when our purchases of sand from certain suppliers are less than the minimum purchase commitments in our supply contracts. According to the accounting guidance for firm purchase commitments, future losses that are considered likely are also required to be recorded in the current period. We recorded aggregate charges under these supply contracts of $58.5 million, $19.2 million and $1.2 million in 2019, 2018 and 2017, respectively. These charges relate to actual purchase shortfalls incurred, as well as forecasted losses expected to be incurred and settled in future periods. Approximately $12 million of our 2018 supply commitment charges related to estimated losses under these contracts for 2019. These purchase shortfalls are largely due to our customers choosing to procure their own sand, often from sand mines closer to their operating areas. In May 2019, we restructured and amended our largest sand supply contract to reduce the total remaining commitment through 2024 by approximately $162 million. This reduced our annual commitment from $47.9 million to $21.0 million from 2019 through 2024. The reduced annual commitments of $21.0 million represent the annual payments we would make under the contract if we do not purchase any sand from this vendor. Due to the terms of the amended agreement and our estimated future purchases under this contract, we determined that we would not be able to satisfy $11.0 million of the $21.0 million annual commitment with sand purchases for the last five years of the contract. Therefore, in connection with this amendment, we recorded a supply commitment charge of $55.0 million in the first quarter of 2019 to accelerate these purchase shortfalls. After recording the $55.0 million supply commitment charge in the first quarter of 2019, the amount of accrued supply commitment charges for future periods that was recognized on our consolidated balance sheet at March 31, 2019 was $66.0 million. We paid $11.0 million of this amount in the second quarter of 2019 and we expect to pay the remaining $55.0 million in annual installments of $11.0 million from January 2020 through January 2024. These payments may be accelerated under limited circumstances. The remaining amount of the 2019 charges represent revised estimates of our purchase shortfalls under this contract for 2019. After recording the $55.0 million supply commitment charge, the remaining annual purchase commitment that we must satisfy to avoid additional charges is $10.0 million. We will satisfy this annual purchase commitment if we purchase at least 1.0 million tons of sand per year, which we believe better matches our current and forecasted sand needs. If we purchase more than 1.0 million tons of sand in a year, then we could recover a portion of the supply commitment charge. We entered into this contract in 2013 in connection with selling our sand mines, which was at a time when our then current and expected needs for sand were significantly higher than they are today. As our sand needs have declined over the years due to industry cycles and due to our customers choosing to procure their own sand, we and our supplier have continuously worked together to accommodate changing market conditions by amending the contract. Estimated losses related to these supply contracts contain uncertainties, such as future customer demand and sand preferences. These uncertainties require us to use judgment to quantify these estimates. Actual results could materially differ from our estimates. Fleet Capacity Reduction In the fourth quarter of 2019, we decided to dispose of certain idle equipment where we believed there was no expectation of future use. The equipment we selected for disposal was comprised primarily of hydraulic fracturing pumps that were substantially depreciated. Certain hydraulic fracturing components, such as engines and transmissions that we believe to have remaining useful lives, will be removed prior to disposing of the equipment and used in our maintenance and repair activities for our remaining fleets. These disposals reduce our capacity of equipment from 34 total fleets to 28 total fleets. The amount of proceeds we anticipate receiving from these disposals is not significant. We recorded an asset impairment of $4.2 million in the third quarter of 2019 in connection with these anticipated disposals. Discontinued Wireline Operations In May 2019, we discontinued our wireline operations due to financial underperformance resulting from market conditions. As a result of this decision, we recorded an asset impairment of $2.8 million and an inventory write-down of $1.4 million in the first quarter of 2019 to adjust these assets to their estimated fair market values and net realizable values, respectively. We sold substantially all of these assets in 2019 and received net proceeds of approximately $3.7 million. Other Impairments In the second quarter of 2019, we recorded $2.7 million of impairments for certain land and buildings that we no longer use. We are closely monitoring current industry conditions and future expectations. If industry conditions decline, we may be subject to impairments of long-lived assets or intangible assets in future periods. Lease Abandonment Charges During 2016, we vacated certain leased facilities to consolidate our operations. In 2017, we recognized expense of $0.6 million in connection with these actions.

ASSET DISPOSALS

ASSET DISPOSALS	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block [Abstract]
ASSET DISPOSALS	NOTE 10 — ASSET DISPOSALS During 2017, we sold a number of surplus pieces of property and equipment. In 2017, we received $4.1 million of proceeds and recognized a $1.4 million net gain on the sale of these assets.

GAIN ON INSURANCE RECOVERIES

GAIN ON INSURANCE RECOVERIES	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block
GAIN ON INSURANCE RECOVERIES	NOTE 11 — GAIN ON INSURANCE RECOVERIES In January 2017, a fire destroyed certain equipment in one of our fleets. These assets were insured at values greater than their carrying values. We received $4.2 million of insurance recovery proceeds for these assets, which exceeded their carrying values by $2.9 million.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block
INCOME TAXES	NOTE 12 — INCOME TAXES The following table summarizes the components of income tax expense (benefit): Year Ended December 31, (In millions) 2019 2018 2017 Current: Federal $ — $ — $ — State 0.5 2.0 1.6 Foreign 0.9 — — Total current 1.4 2.0 1.6 Total deferred — — — Income tax expense $ 1.4 $ 2.0 $ 1.6 Actual income tax expense (benefit) differed from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes as follows: Year Ended December 31, (In millions) 2019 2018 2017 (Loss) income before income taxes $ (71.5) $ 260.4 $ 202.3 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % Federal income tax (benefit) expense at statutory rate (15.0) 54.7 70.8 State income tax (benefit) expense, net of federal effect (0.1) 5.5 7.2 Effect of changes in income apportionment amongst states 12.0 6.1 8.2 Stock-based compensation 2.1 0.3 — Effect of U.S. tax law change — — 424.8 Other items, net 1.7 (0.1) 1.7 Change in valuation allowance 0.7 (64.5) (511.1) Income tax expense $ 1.4 $ 2.0 $ 1.6 Effective tax rate (2.0) % 0.8 % 0.8 % Due to the mobile nature of our operations, the apportionment of annual income that we earn in a state can change over time. States have different income tax rates and therefore the weighted-average state tax rate that we apply to our taxable and deductible temporary differences and net operating loss carryforwards can also change over time. The resulting effects on our deferred tax assets and deferred tax liabilities are recognized in the current period and affects our overall effective tax rate; however, these changes are offset by corresponding changes in our valuation allowance. In December 2017, the President of the United States signed into law H.R. 1, or commonly referred to as the Tax Cuts and Jobs Act of 2017 that, among other things, reduced the federal income tax rate from 35% to 21% beginning on January 1, 2018. Under generally accepted accounting principles for income taxes, we recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. Accordingly, we remeasured our federal deferred tax assets as of December 31, 2017, to a 21% rate. This would have resulted in additional tax expense of $424.8 million in 2017; however, this amount was offset by a corresponding change in our valuation allowance. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (In millions) 2019 2018 Deferred tax assets: Goodwill and intangible assets $ 257.5 $ 313.0 Federal net operating loss carryforwards 359.3 319.4 State net operating loss carryforwards, net of federal benefit 43.9 41.0 Accrued liabilities 13.7 5.7 Operating lease liability 6.2 — Stock-based compensation 2.2 2.4 Other 2.3 1.8 Gross deferred tax assets 685.1 683.3 Valuation allowance (671.7) (671.0) Total deferred tax assets 13.4 12.3 Deferred tax liabilities: Property, plant, and equipment 7.6 12.3 Operating lease right-of-use assets 5.8 — Total deferred tax liabilities 13.4 12.3 Net deferred tax asset $ — $ — Because of our valuation allowance, our net deferred tax assets are zero and no deferred tax assets or liabilities are included in the consolidated balance sheets. At December 31, 2019, our federal net operating loss carryforwards were $1,710.9 million, of which $1,519.3 million will expire on various dates between 2032 and 2036 with the remaining losses carried forward indefinitely. Our state net operating loss carryforwards will generally begin to expire in 2030 except for $13.4 million that will expire between 2020 and 2029. In 2012, we established a full valuation allowance with respect to our net deferred tax assets. We have recorded a full valuation allowance for these net deferred tax assets for each year since 2012. As a result, we only recorded income tax expense for states that limit the deduction of net operating loss carryforwards and for foreign income taxes. Deferred tax assets related to our U.S. federal and state tax net operating losses are still available to us to offset future taxable income, subject to limitations in the event of a change of control under Section 382 of the Internal Revenue Code. At December 31, 2019, we had not incurred such an ownership change. At each reporting date, we consider all available positive and negative evidence to evaluate whether our deferred tax assets are more likely than not to be realized. A significant piece of negative evidence that we consider is whether we have incurred cumulative losses (generally defined as losses before income taxes) in recent years. Such negative evidence weighs heavily against other more subjective positive evidence such as our projections for future taxable income. We noted that for the three years ended December 31, 2019, we recorded cumulative income before income taxes of $391.2 million. Notwithstanding the three-year cumulative income, we concluded that a full valuation allowance was still required at December 31, 2019. We based this conclusion on the positive and negative evidence discussed below. The primary positive evidence we noted was: · Cumulative income before income taxes for the three years ended December 31, 2019, was $391.2 million. The primary negative evidence we noted was: · Our loss before income taxes in 2019 was $71.5 million. · Cumulative losses before income taxes since 2012 was $4,375.5 million. · The cumulative income before income taxes for the three-year period ended December 31, 2019, was only the second profitable three-year period since 2012. · The forecasts of our results and the consensus forecasts of the hydraulic fracturing industry have been historically volatile due to the up-and-down cycles experienced by the industry. · We have over $1.1 billion of deductible temporary differences that will reverse over the next six years. These deductions will significantly limit the amount of net operating loss carryforwards that we will be able to realize over that time. These deductions also increase the likelihood that we could generate additional net operating losses in future periods. · We do not have prudent and feasible tax-planning strategies available to us to realize deferred tax assets. If we generate income before income taxes in future periods and if our forecasts become more accurate due to the cycles of the hydraulic fracturing industry becoming less significant, we may be able to recognize a portion of our net deferred tax assets in future periods. We will adjust the valuation allowance based on our evaluation of new information as it becomes available and new circumstances as they occur. At December 31, 2019 and 2018, we had no liability for uncertain tax positions. FTS International, Inc. and its U.S. subsidiaries join in the filing of a U.S. federal consolidated income tax return. We do not currently have significant operations or undistributed earnings in foreign jurisdictions. Our income tax returns are currently subject to examination in federal and state jurisdictions primarily for tax years from 2014 through 2017.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2019
Disclosure Text Block
COMMITMENTS AND CONTINGENCIES	NOTE 13 — COMMITMENTS AND CONTINGENCIES Purchase Obligations We have purchase commitments with certain vendors to supply a significant portion of the proppant used in our operations. These agreements have remaining terms ranging from one to five years. Some of these agreements have minimum unconditional purchase obligations. These minimum purchase obligations could change based upon the vendors ability to supply a minimum requirement. The amount of credit we received for purchases made under these agreements was $19.9 million, $33.8 million and $38.8 million in 2019, 2018 and 2017, respectively. At December 31, 2019, our future minimum purchase commitments due under these agreements is summarized below: (In millions) 2020 2021 2022 2023 2024 Thereafter Purchase obligations recognized on the balance sheet $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ — Other purchase obligations 16.1 12.7 10.3 10.3 10.1 — Total purchase obligations $ 27.1 $ 23.7 $ 21.3 $ 21.3 $ 21.1 $ — Litigation In the ordinary course of business, we are subject to various legal proceedings and claims, some of which may not be covered by insurance. Many of these legal proceedings and claims are in early stages, and many of them seek an indeterminate amount of damages. We estimate and provide for potential losses that may arise out of legal proceedings and claims to the extent that such losses are probable and can be reasonably estimated. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different from these estimates. When preparing our estimates, we consider, among other factors, the progress of each legal proceeding and claim, our experience and the experience of others in similar legal proceedings and claims, and the opinions and views of legal counsel. Legal costs related to litigation contingencies are expensed as incurred. With respect to the litigation matters below, if there is an adverse outcome individually or collectively, there could be a material adverse effect on the Company’s consolidated financial position or results of operations. These litigation matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Therefore, there can be no assurance as to the ultimate outcome of these matters. Regardless of the outcome, any such litigation and claims can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Patterson v. FTS International Manufacturing, LLC and FTS International Services, LLC : On June 24, 2015, Joshua Patterson filed a lawsuit against the Company in the 115 th Judicial District Court of Upshur County, Texas, alleging, among other things, that the Company was negligent with respect to an automobile accident in 2013. Mr. Patterson sought monetary relief of more than $1 million. On July 19, 2018, a jury returned a verdict of approximately $100 million, including punitive damages, against the Company. The trial court reduced the judgment on November 12, 2018 to approximately $33 million. The Company’s insurance carriers have been defending the suit and are appealing the final judgment. The Twelfth Court of Appeals heard oral arguments on the Company’s appeal on February 13, 2020. While the outcome of this case is uncertain, the Company has met its insurance deductible for this matter and we do not expect the ultimate resolution of this case to have a material adverse effect on our consolidated financial statements. Securities Act Litigation : On February 22, 2019, Carol Glock filed a purported securities class action in the 160th Civil District Court of Dallas County, Texas (Cause No. DC-19-02668) against the Company, certain of our officers, directors and stockholders, and certain of the underwriters of our IPO. The petition is brought on behalf of an alleged class of persons or entities who purchased our common stock in or allegedly traceable to our IPO, and purports to allege claims arising under Sections 11 and 15 of the Securities Act of 1933, as amended. The petition generally alleges that the defendants violated federal securities laws relating to the disclosure in the registration statement and prospectus filed with the Securities and Exchange Commission in connection with our IPO. The petition seeks, among other relief, class certification, damages in an amount in excess of $1.0 million, and reasonable costs and expenses, including attorneys’ fees. The Company has insurance coverage on this matter and has hired counsel to vigorously defend the case, but several of the Company’s co-defendants have tendered requests for indemnification that are not covered by the Company’s insurance. The Company has agreed to indemnify the IPO underwriter co-defendants. The Company is otherwise analyzing these indemnification requests. Defendants Special Exceptions to the petition requesting dismissal if the defects cannot be cured were overruled on November 22, 2019, but Defendants are appealing this ruling through a Petition for Writ of Mandamus which was filed on February 12, 2020. While the outcome of this case is uncertain, we do not expect the ultimate resolution of this case to have a material adverse effect on our consolidated financial statements. We believe that costs associated with other legal matters will not have a material adverse effect on our consolidated financial statements.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2019
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE	NOTE 14 — EARNINGS (LOSS) PER SHARE The numerators and denominators of the basic and diluted earnings (loss) per share (“EPS”) computations for our common stock are calculated as follows: Year Ended December 31, (In millions, except per share amounts) 2019 2018 2017 Numerator: Net (loss) income $ (72.9) $ 258.4 $ 200.7 Convertible preferred stock accretion — — (226.6) Net reversal of convertible preferred stock — 423.2 — Net (loss) income attributable to common (72.9) 681.6 (25.9) Add back the effect of dilutive securities: Convertible preferred stock accretion (3) — — — Net (loss) income attributable to common $ (72.9) $ 681.6 $ (25.9) Denominator: Weighted average shares used for 108.8 104.2 51.8 Effect of dilutive securities: Convertible preferred stock (3) — — — Restricted stock units (4) (5) — — — Dilutive potential common shares — — — Number of shares used for 108.8 104.2 51.8 Basic and diluted EPS $ (0.67) $ 6.54 $ (0.50) (1) The weighted average shares outstanding has been adjusted to give effect to a 69.258777 : 1 reverse stock split that occurred in February 2018 in connection with the completion of our IPO. (2) The accreted value of our Preferred Stock was $1,132.7 million at December 31, 2017. In connection with our IPO, the Preferred Stock was recapitalized into 39.4 million shares of common stock. These shares of common stock had a value of $709.5 million at the IPO share price of $18.00, which resulted in a net reversal of $423.2 million of convertible preferred stock accretion previously recognized. (3) Dilutive securities in our diluted EPS calculation do not include the effects of converting the convertible preferred stock because the effect would be antidilutive. The number of common stock equivalents attributable to convertible preferred stock was 13.0 million shares as of December 31, 2017. (4) Dilutive securities in our diluted EPS calculation do not include RSUs granted under our 2014 LTIP. Vesting of these RSUs was dependent upon the satisfaction of both a service condition and a corporate liquidity event such as an initial public offering of our common stock. As of December 31, 2017, a corporate liquidity event had not occurred and the holders of these RSUs had no rights to our undistributed earnings. Therefore, they were excluded from the effect of dilutive securities. (5) The dilutive effect of employee restricted stock units granted under our 2018 LTIP was either immaterial or antidilutive for 2019 and 2018. (6)

SELECTED QUARTERLY DATA (UNAUDI

SELECTED QUARTERLY DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2019
SELECTED QUARTERLY DATA (UNAUDITED)
SELECTED QUARTERLY DATA (UNAUDITED)	NOTE 15 — SELECTED QUARTERLY DATA (UNAUDITED) Three Months Ended March 31, June 30, September 30, December 31, (In millions, except per share amounts) 2019 2019 2019 2019 Revenue Revenue $ 221.6 $ 225.8 $ 186.0 $ 142.3 Revenue from related parties 0.9 — — — Total revenue 222.5 225.8 186.0 142.3 Operating expenses Costs of revenue 163.1 165.9 147.2 102.7 Selling, general and administrative 23.6 21.7 21.1 22.7 Depreciation and amortization 22.4 22.8 22.7 22.1 Impairments and other charges (1) 60.8 2.8 5.1 0.9 Loss (gain) on disposal of assets, net 0.3 (1.2) (0.1) (0.4) Total operating expenses 270.2 212.0 196.0 148.0 Operating (loss) income (47.7) 13.8 (10.0) (5.7) Interest expense, net (8.2) (7.7) (7.6) (7.2) Gain (loss) on extinguishment of debt, net 0.5 (0.1) 0.8 — Equity in net income of joint venture affiliate 0.6 — — — Gain on sale of equity interest in joint venture affiliate — — 7.0 — (Loss) income before income taxes (54.8) 6.0 (9.8) (12.9) Income tax expense 0.2 0.1 1.0 0.1 Net (loss) income $ (55.0) $ 5.9 $ (10.8) $ (13.0) Basic and diluted (loss) earnings per share $ (0.50) $ 0.05 $ (0.10) $ (0.12) Shares used in computing basic and 109.7 109.7 108.6 107.3 (1) We recorded a supply commitment charge of $55.0 million in the first quarter of 2019 for expected losses from unconditional purchase obligations. See Note 9 — “Impairments and Other Charges” for more information. Three Months Ended March 31, June 30, September 30, December 31, (In millions, except per share amounts) 2018 2018 2018 2018 Revenue Revenue $ 423.3 $ 454.6 $ 324.4 $ 248.1 Revenue from related parties 44.2 38.7 10.0 — Total revenue 467.5 493.3 334.4 248.1 Operating expenses Costs of revenue 312.2 329.4 222.2 169.4 Selling, general and administrative 25.8 20.8 19.7 21.6 Depreciation and amortization 20.6 20.7 21.1 22.3 Impairments and other charges 2.0 4.0 10.0 3.2 Loss (gain) on disposal of assets, net 0.5 (0.2) (0.1) (0.3) Total operating expenses 361.1 374.7 272.9 216.2 Operating income 106.4 118.6 61.5 31.9 Interest expense, net (17.4) (12.1) (10.4) (9.4) (Loss) gain on extinguishment of debt, net (9.3) (0.8) (0.6) 0.9 Equity in net (loss) income of joint venture affiliate — (1.2) (0.7) 3.0 Income before income taxes 79.7 104.5 49.8 26.4 Income tax expense (benefit) 1.0 0.9 0.2 (0.1) Net income $ 78.7 $ 103.6 $ 49.6 $ 26.5 Net income attributable to common stockholders $ 501.9 $ 103.6 $ 49.6 $ 26.5 Basic and diluted earnings per share $ 5.68 $ 0.95 $ 0.45 $ 0.24 Shares used in computing basic and 88.4 109.3 109.3 109.4

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
Policy Text Blocks
Basis of Presentation	Basis of Presentation We prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company and all majority-owned domestic and foreign subsidiaries. Investments over which we have the ability to exercise significant influence over operating and financial policies, but do not hold a controlling interest, are accounted for using the equity method of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation. There were no items of other comprehensive income in the periods presented.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, related revenues and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements and during the periods presented. We base these estimates on historical results and various other assumptions believed to be reasonable, all of which form the basis for making estimates concerning the carrying values of assets and liabilities that are not readily available from other sources. Actual results could differ materially from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents include only investments with an original maturity of three months or less. We occasionally hold cash deposits in financial institutions that exceed federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at their invoiced amounts or amounts for which we have a right to invoice based on services completed. We establish an allowance for doubtful accounts to reduce the carrying value of our accounts receivable based on a number of factors, including the length of time that accounts receivable are past due, our previous loss history, and the customer’s creditworthiness.
Inventories	Inventories Inventories consist of proppants and chemicals that are used to provide hydraulic fracturing services and maintenance parts that are used to service our hydraulic fracturing equipment. Proppants generally consist of raw sand, resin-coated sand or ceramic particles. Inventories are stated at the lower of cost or net realizable value. The cost basis of our inventories is based on the average cost method and includes in-bound freight costs. As necessary, we record an adjustment to decrease the value of slow moving and obsolete inventory to its net realizable value. To determine the adjustment amount, we regularly review inventory quantities on hand and compare them to estimates of future product demand, market conditions, production requirements and technological developments.
Restricted Cash	Restricted Cash The Company had $9.1 million of restricted cash at January 1, 2018 and zero restricted cash at December 31, 2019 and 2018. This amount represented cash used to secure certain letters of credit issued to our casualty and general liability insurance provider. In February 2018, we closed on a new revolving credit facility, and issued replacement letters of credit under the new facility, which allowed us to cancel the cash secured letters of credit.
Property, Plant, and Equipment	Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation, which is generally provided by using the straight-line method over the estimated useful lives of the individual assets. We manufacture our hydraulic fracturing units and the cost of this equipment, which includes direct and indirect manufacturing costs, is capitalized and carried as construction-in-progress until it is completed. Expenditures for renewals and betterments that extend the lives of our service equipment, which includes the replacement of significant components of service equipment, are capitalized and depreciated. Other repairs and maintenance costs are expensed as incurred. We capitalize qualifying costs related to the acquisition or development of internal-use software. Capitalization of costs begins after the conceptual formulation stage has been completed. Capitalized costs are amortized over the estimated useful life of the software, which ranges between three and five years. The unamortized balance of capitalized software costs at December 31, 2019 and 2018, was $0.4 million and $3.7 million, respectively. Amortization of computer software was $3.4 million, $4.2 million and $5.3 million in 2019, 2018 and 2017, respectively.
Leases	Leases We determine if a contract contains a lease at inception. We lease certain administrative offices, sales offices, and operational facilities. We also lease some service equipment and light duty vehicles. These leases have remaining lease terms of 6 years or less. Some leases contain options to extend the leases, and some include options to terminate the leases. We do not include renewal or termination options in our assessment of the lease terms unless extension or termination for certain leases is deemed to be reasonably certain. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. Operating lease assets and liabilities are recognized at the lease commencement date, which is the date we take possession of the property. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are valued based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the lease term including reasonably certain renewal periods. We estimate this rate based on prevailing financial market conditions, credit analysis, and management judgment. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the operating lease asset as reductions of expense over the lease term. We provide residual value guarantees for our leases of light-duty vehicles and certain service equipment. No amounts related to these residual value guarantees have been deemed probable and included in the lease liabilities on our consolidated balance sheet; however, if the value for all of the vehicles was zero and if we cancelled these leases at December 31, 2019, we would be required to pay a total of $10.5 million in residual value guarantees.
Intangible Assets	Intangible Assets We have historically acquired indefinite-lived intangible assets related to business acquisitions. Intangible assets with indefinite lives are not amortized. The amount of indefinite-lived intangible assets recorded in our consolidated balance sheets for December 31, 2019 and 2018, was $29.5 million, which is related to our tradename.
Impairment of Long-Lived Assets and Intangible Assets	Impairment of Long-Lived Assets and Intangible Assets Long-lived assets, such as property, plant, equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Recoverability is assessed based on the undiscounted future cash flows generated by the asset or asset group. If the carrying amount of an asset or asset group is not recoverable, we recognize an impairment loss equal to the amount by which the carrying amount exceeds fair value. We estimate fair value based on the income, market, or cost valuation techniques. Intangible assets with indefinite lives are reviewed at least annually for impairment, and in interim periods if certain events occur indicating that the carrying value of intangible assets may be impaired. We estimate fair values utilizing valuation methods such as discounted cash flows and comparable market valuations. We perform our annual impairment tests at the beginning of the fourth quarter.
Equity Method Investments	Equity Method Investments Investments in which we have the ability to exercise significant influence, but not control, are accounted for pursuant to the equity method of accounting. We recognize our proportionate share of earnings or losses of our international affiliates three months after they occur. When events and circumstances warrant, investments accounted for under the equity method of accounting are evaluated for impairment. An impairment charge is recorded whenever a decline in value of an investment below its carrying amount is determined to be other-than-temporary.
Income Taxes	Income Taxes Income taxes are accounted for using the asset and liability method. Deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in earnings in the period that includes the enactment date. We recognize future tax benefits to the extent that such benefits are more likely than not to be realized. We record a valuation allowance to reduce the value of a deferred tax asset if based on the consideration of all available evidence, it is more likely than not that all or some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. We evaluate our deferred income taxes quarterly to determine if a valuation allowance is required by considering all available evidence, including historical and projected taxable income and tax planning strategies. Any deferred tax asset subject to a valuation allowance is still available to us to offset future taxable income, subject to annual limitations in the event of an “ownership change” under Section 382 of the Internal Revenue Code. We will adjust a previously established valuation allowance if we change our assessment of the amount of deferred income tax asset that is more likely than not to be realized.
Revenue Recognition	Revenue Recognition The Company contracts with its customers to perform hydraulic fracturing services on one or more oil or natural gas wells. Under these arrangements, we satisfy our performance obligations as services are rendered, which is generally upon the completion of a fracturing stage. We typically complete one or more stages per day. A stage is considered complete when we have met the specifications set forth by the customer, at which time we have the right to invoice the customer and the customer is obligated to pay us for the services rendered. The price for our services typically includes an equipment charge and product charges for proppant, chemicals and other products actually consumed during the course of providing our services. The price for each stage of a particular well does not vary significantly. Payment terms average approximately two months from the date a stage is completed. All consideration owed to us for services performed during a period is fixed and our right to receive it is unconditional. We also contract with some customers to provide them with the exclusive use of a fracturing fleet for a period of time. Our customers can generally terminate these contracts with less than 90 days’ notice. We satisfy our performance obligation as services are rendered, which is based on the passage of time rather than the completion of a stage. Under these arrangements, we have the right to receive consideration from a customer even if circumstances outside of our control prevent us from performing our work. All consideration owed to us for services performed during a period is fixed and our right to receive it is unconditional. Pricing for our services for all contracts is frequently negotiated with our customers and is based on prevailing market rates during each reporting period. The amounts we invoice our customers for services performed during a period are directly related to the value received by the customers for the period. There is no inherent uncertainty to the amount of consideration we will receive for services performed during a period and no judgment is required to allocate a portion of the transaction price to a future period. Accordingly, we are not required to identify any unsatisfied performance obligations nor attribute any revenue to them. During the periods presented we acted as a principal, rather than as an agent, for all of the goods and services that we provided to our customers; our customer arrangements did not include obligations for refunds or warranties of our work; our revenue does not include sales taxes collected from our customers; and we did not incur incremental costs to obtain or fulfill contracts with our customers. To comply with the FASB disclosure objective, we are required to disaggregate our revenue into categories if it will provide an enhanced understanding of how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. To evaluate an appropriate level of disaggregation of revenue, we considered the following aspects of our business: · We provide a single service to our customers. · We only generate revenue in the U.S. onshore market. · We have a homogeneous customer base, which is comprised of large oil and gas exploration companies. · We provide our service over a short period of time. · We do not disaggregate our revenue into categories for any external communications or to make resource allocation decisions. · We do not have separate operating segments. Based on the above factors, we concluded that no additional disaggregation of revenue was necessary or meaningful to help depict the nature, amount, timing and uncertainty of our revenues and cash flows.
Unconditional Purchase Obligations	Unconditional Purchase Obligations We have historically entered into inventory supply arrangements with our vendors, primarily for sand, that contain unconditional purchase obligations. These represent obligations to transfer funds in the future for fixed or minimum quantities of goods or services at fixed or minimum prices. We enter into these unconditional purchase obligation arrangements in the normal course of business to ensure that adequate levels of sourced product are available to us. To account for these arrangements, we must monitor whether we may be required to make a minimum payment to a vendor in a future period because our projected inventory purchases may not satisfy our minimum commitments. If we conclude that it is probable that we will make a minimum payment under these arrangements, we will record an estimated loss for these commitments in the current period.
Stock-Based Compensation	Stock-Based Compensation We measure all employee stock-based compensation awards using a fair value method and record this cost in the consolidated financial statements. Our stock-based compensation relates to restricted stock units issued to our employees. On the date that an equity-classified award is granted, we determine the fair value of the award and recognize the compensation cost over the requisite service period, which typically is the period over which the award vests. For equity-classified awards with graded vesting based solely on the satisfaction of a service condition, we recognize compensation cost as a single award on a straight-line basis. We account for forfeited awards as forfeitures occur, which results in a reversal of stock-based compensation cost previously recognized up to the date of the forfeiture. For stock-based awards with performance conditions that affect vesting, we only recognize compensation cost when it is probable that the performance conditions will be met.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: · Level One: The use of quoted prices in active markets for identical financial instruments. · Level Two: The use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable in the market or can be corroborated by observable market data. · Level Three: The use of significant unobservable inputs that typically require the use of management’s estimates of assumptions that market participants would use in pricing. Money market funds, classified as cash and cash equivalents, are the only financial instruments that are measured and recorded at fair value on the Company’s balance sheets. The following table presents money market funds at their level within the fair value hierarchy. (In millions) Total Level 1 Level 2 Level 3 December 31, 2019 Money market funds $ 193.6 $ 193.6 $ — $ —
Reclassifications	Reclassifications Current liabilities related to accrued supply commitment charges have been reclassified from accounts payable to other current liabilities on the balance sheet as of December 31, 2018, and the statements of cash flows for the years ended December 31, 2018 and 2017 to conform to current year presentation. These reclassifications had no effect on total assets, total liabilities, total equity, or net cash provided by operating activities as previously reported.
New Accounting Standards Updates	New Accounting Standards Updates In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases . The FASB subsequently issued a number of additional ASUs to update this guidance. This standard was issued to increase transparency and comparability among organizations by requiring that a right-of-use asset and corresponding lease liability be recorded on the balance sheet for leases with terms longer than 12 months. We elected to use three practical expedients allowed under the guidance. According to these practical expedients we did not reassess whether existing contracts are or contain a lease; we did not reassess whether existing leases are operating or finance leases; and we did not reassess the accounting for initial direct costs for existing leases. Our approach to adopting this new standard included a review of existing leases and other executory contracts that could contain embedded leases and we identified the key terms that were necessary for us to calculate the right-of-use asset and lease liability. These consolidated financial statements have been prepared in accordance with the new ASU utilizing the modified retrospective transition method, which resulted in the recording of operating lease liabilities of approximately $38 million as of January 1, 2019 on our consolidated balance sheet with an immaterial effect on our consolidated statement of stockholders’ equity (deficit) and no related effect on our consolidated statement of operations. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This standard was issued to change the presentation of amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard on January 1, 2018, and the effects of this standard and related required disclosures have been reflected in our condensed consolidated statements of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated statements of cash flows: December 31, (In millions) 2017 Cash and cash equivalents $ 208.1 Restricted cash included in prepaid expenses and other current assets 9.1 Total cash, cash equivalents, and restricted cash shown in the $ 217.2 As of December 31, 2017, we had amounts included in restricted cash that represented amounts required to be set aside by contractual agreement with our casualty and general liability insurance provider and corporate credit card provider. In February 2018, these contractual agreements to set aside cash were terminated. Therefore, as of December 31, 2018 and 2019, we had no restricted cash balance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments . This standard requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new standard will also apply to financial assets arising from revenue transactions such as accounts receivables. We adopted this standard on January 1, 2020, and it had no material effect on our consolidated financial statements.

DESCRIPTION OF BUSINESS (Tables

DESCRIPTION OF BUSINESS (Tables)	12 Months Ended
	Dec. 31, 2019
Table Text Blocks
Schedule of customers who represented more than 10% of total revenue	Year Ended December 31, 2019 2018 2017 Diamondback E&P LLC 16 % * % * % Ascent Resources 10 % * % * % EQT Production Company * % 12 % * % Devon Energy Corporation * % 12 % * %

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of fair value of assets	(In millions) Total Level 1 Level 2 Level 3 December 31, 2019 Money market funds $ 193.6 $ 193.6 $ — $ —
Schedule of cash and cash equivalents and restricted cash	December 31, (In millions) 2017 Cash and cash equivalents $ 208.1 Restricted cash included in prepaid expenses and other current assets 9.1 Total cash, cash equivalents, and restricted cash shown in the $ 217.2

SUPPLEMENTAL BALANCE SHEET IN_2

SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2019
SUPPLEMENTAL BALANCE SHEET INFORMATION
Schedule of Accounts Receivable	December 31, (In millions) 2019 2018 Trade accounts receivable $ 80.3 $ 159.2 Allowance for doubtful accounts (3.3) (0.9) Accounts receivable, net $ 77.0 $ 158.3
Schedule of change in allowance for doubtful accounts	(In millions) 2019 2018 2017 Balance at beginning of year $ 0.9 $ 2.1 $ 2.3 Provision for bad debts, net included in selling, general, 2.4 — 0.3 Uncollectible receivables written off — (1.2) (0.5) Balance at end of year $ 3.3 $ 0.9 $ 2.1
Schedule of Inventories	December 31, (In millions) 2019 2018 Maintenance parts $ 43.0 $ 60.3 Proppants and chemicals 2.3 4.3 Other 0.2 2.0 Total inventories $ 45.5 $ 66.6
Schedule of Prepaid Expenses and Other Current Assets	December 31, (In millions) 2019 2018 Prepaid expenses $ 4.4 $ 5.8 Other 2.6 1.2 Total prepaid expenses and other current assets $ 7.0 $ 7.0
Schedule of Property, Plant and Equipment, net	Estimated December 31, Useful Life (Dollars in millions) 2019 2018 (in years) Service equipment $ 797.2 $ 780.5 2.5 – 10 Buildings and improvements 63.3 63.1 15 – 39 Office, software, and other equipment 44.4 44.7 3 – 7 Vehicles and transportation equipment 6.5 9.2 5 – 20 Land 7.0 7.7 N/A Construction-in-process and other 20.1 32.4 N/A Total property, plant, and equipment 938.5 937.6 Accumulated depreciation and amortization (711.5) (662.3) Total property, plant, and equipment, net $ 227.0 $ 275.3
Schedule of Accrued Expenses	December 31, (In millions) 2019 2018 Sales, use, and property taxes $ 7.1 $ 12.5 Employee compensation and benefits 8.0 6.1 Interest 4.1 4.3 Insurance 3.1 4.3 Other 0.6 2.1 Total accrued expenses $ 22.9 $ 29.3
Schedule of other current liabilities	December 31, (In millions) 2019 2018 Accrued supply commitment charges $ 11.3 $ 14.3 Other 0.3 2.0 Total other current liabilities $ 11.6 $ 16.3
Schedule of other liabilities	December 31, (In millions) 2019 2018 Accrued supply commitment charges $ 44.0 $ — Other 1.6 1.2 Total other liabilities $ 45.6 $ 1.2

INDEBTEDNESS AND BORROWING FA_2

INDEBTEDNESS AND BORROWING FACILITY (Tables)	12 Months Ended
	Dec. 31, 2019
Table Text Blocks
Summary of long-term debt	December 31, (In millions) 2019 2018 Term loan due April 2021 $ 90.0 $ 121.0 Senior notes due May 2022 369.9 386.9 Total principal amount 459.9 507.9 Less unamortized discount and debt issuance costs (3.0) (4.7) Total long-term debt $ 456.9 $ 503.2 Estimated fair value of long-term debt $ 317.2 $ 461.2
Summary of maturities of the long-term debt	The following table summarizes the maturities of our long-term debt at December 31, 2019: (In millions) 2020 $ — 2021 90.0 2022 369.9 2023 — 2024 — 2025 and thereafter — Total principal amount of long-term debt $ 459.9

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
LEASES
Summary of components of our lease costs and other supplemental information for our operating leases	Year Ended December 31, (In millions) 2019 Operating lease cost $ 21.1 Short-term lease cost 5.8 Total lease cost $ 26.9 Year Ended December 31, (Dollars in millions) 2019 Cash paid for amounts included in the measurement of our lease liabilities $ 21.3 Right-of-use assets obtained in exchange for lease liabilities $ 11.0 Right-of-use assets recognized upon adoption of the leasing standard $ 37.8 Weighted-average remaining lease term 2.3 years Weighted-average discount rate
Summary of maturity of our operating leases	(In millions) 2020 $ 15.4 2021 11.0 2022 1.2 2023 1.2 2024 1.0 2025 and thereafter — Total lease payments 29.8 Less imputed interest (1.6) Total lease liabilities $ 28.2
Schedule of Future Minimum Rental Payments for Operating Leases	(In millions) 2019 2020 2021 2022 2023 Thereafter Operating leases $ 26.0 $ 14.9 $ 4.6 $ 1.5 $ 1.5 $ 1.1

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2019
Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of restricted stock and restricted stock units activity	Weighted- Number Average of Units Grant-Date (In thousands) Fair Value Unvested balance at January 1, 2019 2,440 $ 19.62 Granted 2,039 2.56 Vested (907) 17.33 Forfeited — — Unvested balance at December 31, 2019 3,572 $ 10.46

IMPAIRMENTS AND OTHER CHARGES (

IMPAIRMENTS AND OTHER CHARGES (Tables)	12 Months Ended
	Dec. 31, 2019
Table Text Blocks
Schedule of impairments and other charges	Year Ended December 31, (In millions) 2019 2018 2017 Supply commitment charges $ 58.5 $ 19.2 $ 1.2 Impairment of assets 9.7 — — Inventory write-down 1.4 — — Lease abandonment charges — — 0.6 Total impairments and other charges $ 69.6 $ 19.2 $ 1.8

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
Schedule of components of income tax expense (benefit)	Year Ended December 31, (In millions) 2019 2018 2017 Current: Federal $ — $ — $ — State 0.5 2.0 1.6 Foreign 0.9 — — Total current 1.4 2.0 1.6 Total deferred — — — Income tax expense $ 1.4 $ 2.0 $ 1.6
Schedule of reconciliation of income tax expense (benefit)	Year Ended December 31, (In millions) 2019 2018 2017 (Loss) income before income taxes $ (71.5) $ 260.4 $ 202.3 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % Federal income tax (benefit) expense at statutory rate (15.0) 54.7 70.8 State income tax (benefit) expense, net of federal effect (0.1) 5.5 7.2 Effect of changes in income apportionment amongst states 12.0 6.1 8.2 Stock-based compensation 2.1 0.3 — Effect of U.S. tax law change — — 424.8 Other items, net 1.7 (0.1) 1.7 Change in valuation allowance 0.7 (64.5) (511.1) Income tax expense $ 1.4 $ 2.0 $ 1.6 Effective tax rate (2.0) % 0.8 % 0.8 %
Schedule of deferred tax assets and deferred tax liabilities	December 31, (In millions) 2019 2018 Deferred tax assets: Goodwill and intangible assets $ 257.5 $ 313.0 Federal net operating loss carryforwards 359.3 319.4 State net operating loss carryforwards, net of federal benefit 43.9 41.0 Accrued liabilities 13.7 5.7 Operating lease liability 6.2 — Stock-based compensation 2.2 2.4 Other 2.3 1.8 Gross deferred tax assets 685.1 683.3 Valuation allowance (671.7) (671.0) Total deferred tax assets 13.4 12.3 Deferred tax liabilities: Property, plant, and equipment 7.6 12.3 Operating lease right-of-use assets 5.8 — Total deferred tax liabilities 13.4 12.3 Net deferred tax asset $ — $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
Summary of future minimum purchase commitments	(In millions) 2020 2021 2022 2023 2024 Thereafter Purchase obligations recognized on the balance sheet $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ — Other purchase obligations 16.1 12.7 10.3 10.3 10.1 — Total purchase obligations $ 27.1 $ 23.7 $ 21.3 $ 21.3 $ 21.1 $ —

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2019
EARNINGS (LOSS) PER SHARE
Schedule of computations for basic and diluted earnings (loss) per share	Year Ended December 31, (In millions, except per share amounts) 2019 2018 2017 Numerator: Net (loss) income $ (72.9) $ 258.4 $ 200.7 Convertible preferred stock accretion — — (226.6) Net reversal of convertible preferred stock — 423.2 — Net (loss) income attributable to common (72.9) 681.6 (25.9) Add back the effect of dilutive securities: Convertible preferred stock accretion (3) — — — Net (loss) income attributable to common $ (72.9) $ 681.6 $ (25.9) Denominator: Weighted average shares used for 108.8 104.2 51.8 Effect of dilutive securities: Convertible preferred stock (3) — — — Restricted stock units (4) (5) — — — Dilutive potential common shares — — — Number of shares used for 108.8 104.2 51.8 Basic and diluted EPS $ (0.67) $ 6.54 $ (0.50) (1) The weighted average shares outstanding has been adjusted to give effect to a 69.258777 : 1 reverse stock split that occurred in February 2018 in connection with the completion of our IPO. (2) The accreted value of our Preferred Stock was $1,132.7 million at December 31, 2017. In connection with our IPO, the Preferred Stock was recapitalized into 39.4 million shares of common stock. These shares of common stock had a value of $709.5 million at the IPO share price of $18.00, which resulted in a net reversal of $423.2 million of convertible preferred stock accretion previously recognized. (3) Dilutive securities in our diluted EPS calculation do not include the effects of converting the convertible preferred stock because the effect would be antidilutive. The number of common stock equivalents attributable to convertible preferred stock was 13.0 million shares as of December 31, 2017. (4) Dilutive securities in our diluted EPS calculation do not include RSUs granted under our 2014 LTIP. Vesting of these RSUs was dependent upon the satisfaction of both a service condition and a corporate liquidity event such as an initial public offering of our common stock. As of December 31, 2017, a corporate liquidity event had not occurred and the holders of these RSUs had no rights to our undistributed earnings. Therefore, they were excluded from the effect of dilutive securities. (5) The dilutive effect of employee restricted stock units granted under our 2018 LTIP was either immaterial or antidilutive for 2019 and 2018.

SELECTED QUARTERLY DATA (UNAU_2

SELECTED QUARTERLY DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2019
SELECTED QUARTERLY DATA (UNAUDITED)
Schedule of quarterly financial data	Three Months Ended March 31, June 30, September 30, December 31, (In millions, except per share amounts) 2019 2019 2019 2019 Revenue Revenue $ 221.6 $ 225.8 $ 186.0 $ 142.3 Revenue from related parties 0.9 — — — Total revenue 222.5 225.8 186.0 142.3 Operating expenses Costs of revenue 163.1 165.9 147.2 102.7 Selling, general and administrative 23.6 21.7 21.1 22.7 Depreciation and amortization 22.4 22.8 22.7 22.1 Impairments and other charges (1) 60.8 2.8 5.1 0.9 Loss (gain) on disposal of assets, net 0.3 (1.2) (0.1) (0.4) Total operating expenses 270.2 212.0 196.0 148.0 Operating (loss) income (47.7) 13.8 (10.0) (5.7) Interest expense, net (8.2) (7.7) (7.6) (7.2) Gain (loss) on extinguishment of debt, net 0.5 (0.1) 0.8 — Equity in net income of joint venture affiliate 0.6 — — — Gain on sale of equity interest in joint venture affiliate — — 7.0 — (Loss) income before income taxes (54.8) 6.0 (9.8) (12.9) Income tax expense 0.2 0.1 1.0 0.1 Net (loss) income $ (55.0) $ 5.9 $ (10.8) $ (13.0) Basic and diluted (loss) earnings per share $ (0.50) $ 0.05 $ (0.10) $ (0.12) Shares used in computing basic and 109.7 109.7 108.6 107.3 (1) We recorded a supply commitment charge of $55.0 million in the first quarter of 2019 for expected losses from unconditional purchase obligations. See Note 9 — “Impairments and Other Charges” for more information. Three Months Ended March 31, June 30, September 30, December 31, (In millions, except per share amounts) 2018 2018 2018 2018 Revenue Revenue $ 423.3 $ 454.6 $ 324.4 $ 248.1 Revenue from related parties 44.2 38.7 10.0 — Total revenue 467.5 493.3 334.4 248.1 Operating expenses Costs of revenue 312.2 329.4 222.2 169.4 Selling, general and administrative 25.8 20.8 19.7 21.6 Depreciation and amortization 20.6 20.7 21.1 22.3 Impairments and other charges 2.0 4.0 10.0 3.2 Loss (gain) on disposal of assets, net 0.5 (0.2) (0.1) (0.3) Total operating expenses 361.1 374.7 272.9 216.2 Operating income 106.4 118.6 61.5 31.9 Interest expense, net (17.4) (12.1) (10.4) (9.4) (Loss) gain on extinguishment of debt, net (9.3) (0.8) (0.6) 0.9 Equity in net (loss) income of joint venture affiliate — (1.2) (0.7) 3.0 Income before income taxes 79.7 104.5 49.8 26.4 Income tax expense (benefit) 1.0 0.9 0.2 (0.1) Net income $ 78.7 $ 103.6 $ 49.6 $ 26.5 Net income attributable to common stockholders $ 501.9 $ 103.6 $ 49.6 $ 26.5 Basic and diluted earnings per share $ 5.68 $ 0.95 $ 0.45 $ 0.24 Shares used in computing basic and 88.4 109.3 109.3 109.4

DESCRIPTION OF BUSINESS - (Deta

DESCRIPTION OF BUSINESS - (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 31, 2019	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2014
Equity ownership interest	45.00%
Consideration received	$ 26.9		$ 30.7
Royalties received	$ 5.8		2
Gain on sale of equity interest in joint venture affiliate		$ 7	$ 7
Prepaid royalty fee recognition period			6 years
SinoFTS Petroleum Services Ltd.
Percentage of ownership in joint venture				45.00%
Sinopec | SinoFTS Petroleum Services Ltd.
Percentage of ownership in joint venture				55.00%

DESCRIPTION OF BUSINESS - Conce

DESCRIPTION OF BUSINESS - Concentrations of Risk (Details) - Total revenue - Customer risk	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Diamondback E&P LLC
Concentrations of Risk
Concentration risk (as a percent)	16.00%
Ascent Resources
Concentrations of Risk
Concentration risk (as a percent)	10.00%
EQT Production Company
Concentrations of Risk
Concentration risk (as a percent)		12.00%
Devon Energy Corporation
Concentrations of Risk
Concentration risk (as a percent)		12.00%

DESCRIPTION OF BUSINESS - Relat

DESCRIPTION OF BUSINESS - Related Parties (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.9	$ 10	$ 38.7	$ 44.2	$ 0.9	$ 92.9	$ 113.4
Chesapeake
Related Party Transaction [Line Items]
Outstanding common stock held by related party (as a percent)					20.00%
Revenue from related parties					$ 0.1	92.9	113.1
Accounts receivable from related parties					0	0
SinoFTS
Related Party Transaction [Line Items]
Proceeds from sale of equipment					0.9	0.3	$ 0.3
Accounts receivable from related parties					$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash, Goodwill and Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Restricted cash	$ 0	$ 0	$ 9.1
Intangible assets, net	$ 29.5	$ 29.5

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - Computer software - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment
Unamortized balance of capitalized costs	$ 0.4	$ 3.7
Amortization	$ 3.4	$ 4.2	$ 5.3
Minimum
Property, Plant and Equipment
Estimated useful life	3 years
Maximum
Property, Plant and Equipment
Estimated useful life	5 years

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) $ in Millions	Dec. 31, 2019USD ($)
LEASES
Remaining lease terms	6 years
Residual owed if value of leased assets is zero	$ 10.5

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - New Accounting Standard Updates (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Lessee assets and liabilities
Operating Lease, Liability, Noncurrent	$ 13.9	$ 38

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) $ in Millions	Dec. 31, 2019USD ($)
Fair Value Measurements
Money market funds	$ 193.6
Level 1
Fair Value Measurements
Money market funds	$ 193.6

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash, restricted cash and cash equivalents
Cash and cash equivalents	$ 223	$ 177.8
Restricted cash included in prepaid expenses and other current assets	0	0	$ 9.1
Total cash, cash equivalents and restricted cash shown on the condensed consolidated statements of cash flows	$ 223	$ 177.8		$ 217.2	$ 169.4
Accounting Standards Update 2016-18
Cash, restricted cash and cash equivalents
Cash and cash equivalents				208.1
Restricted cash included in prepaid expenses and other current assets				9.1
Total cash, cash equivalents and restricted cash shown on the condensed consolidated statements of cash flows				$ 217.2

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restated Cash Balances (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Cash, restricted cash and cash equivalents
Restricted cash	$ 0	$ 0	$ 9.1
Accounting Standards Update 2016-18
Cash, restricted cash and cash equivalents
Restricted cash				$ 9.1

SUPPLEMENTAL BALANCE SHEET IN_3

SUPPLEMENTAL BALANCE SHEET INFORMATION - (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Accounts receivable
Trade accounts receivable	$ 80.3	$ 159.2
Allowance for doubtful accounts	(3.3)	(0.9)
Accounts receivable, net	77	158.3
Allowance for doubtful accounts
Balance at beginning of year	0.9	2.1	$ 2.3
Provision for bad debts, net included in selling, general, and administrative expense	2.4		0.3
Uncollectible receivables written off		(1.2)	(0.5)
Balance at end of year	3.3	0.9	$ 2.1
Inventories
Maintenance parts	43	60.3
Proppants and chemicals	2.3	4.3
Other	0.2	2
Total inventories	45.5	66.6
Prepaid expenses and other current assets
Restricted cash	0	0		$ 9.1
Prepaid expenses	4.4	5.8
Other	2.6	1.2
Total prepaid expenses and other current assets	$ 7	$ 7

SUPPLEMENTAL BALANCE SHEET IN_4

SUPPLEMENTAL BALANCE SHEET INFORMATION - Property, Plant and Equipment - (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment
Total property, plant, and equipment	$ 938.5	$ 937.6
Accumulated depreciation and amortization	(711.5)	(662.3)
Total property, plant, and equipment, net	227	275.3
Depreciation expense	90	84.7	$ 86.6
Equipment
Property, Plant and Equipment
Total property, plant, and equipment	$ 797.2	780.5
Equipment | Minimum
Property, Plant and Equipment
Estimated Useful Life (in years)	2 years 6 months
Equipment | Maximum
Property, Plant and Equipment
Estimated Useful Life (in years)	10 years
Buildings and improvements
Property, Plant and Equipment
Total property, plant, and equipment	$ 63.3	63.1
Buildings and improvements | Minimum
Property, Plant and Equipment
Estimated Useful Life (in years)	15 years
Buildings and improvements | Maximum
Property, Plant and Equipment
Estimated Useful Life (in years)	39 years
Office, software, and other equipment
Property, Plant and Equipment
Total property, plant, and equipment	$ 44.4	44.7
Office, software, and other equipment | Minimum
Property, Plant and Equipment
Estimated Useful Life (in years)	3 years
Office, software, and other equipment | Maximum
Property, Plant and Equipment
Estimated Useful Life (in years)	7 years
Vehicles and transportation equipment
Property, Plant and Equipment
Total property, plant, and equipment	$ 6.5	9.2
Vehicles and transportation equipment | Minimum
Property, Plant and Equipment
Estimated Useful Life (in years)	5 years
Vehicles and transportation equipment | Maximum
Property, Plant and Equipment
Estimated Useful Life (in years)	20 years
Land
Property, Plant and Equipment
Total property, plant, and equipment	$ 7	7.7
Construction-in-process and other
Property, Plant and Equipment
Total property, plant, and equipment	$ 20.1	$ 32.4

SUPPLEMENTAL BALANCE SHEET IN_5

SUPPLEMENTAL BALANCE SHEET INFORMATION - Accrued Expenses and Other Current Liabilities - (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Accrued expenses
Sales, use, and property taxes	$ 7.1	$ 12.5
Employee compensation and benefits	8	6.1
Interest	4.1	4.3
Insurance	3.1	4.3
Other	0.6	2.1
Total accrued expenses and other current liabilities	22.9	29.3
Other Current liabilities
Accrued supply commitment charges	11.3	14.3
Other	0.3	2
Total other current liabilities	11.6	16.3
Other liabilities
Accrued supply commitment charges	44
Other	1.6	1.2
Total other liabilities	$ 45.6	$ 1.2

INDEBTEDNESS AND BORROWING FA_3

INDEBTEDNESS AND BORROWING FACILITY - Summary of Long-term Debt (Details) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
INDEBTEDNESS
Total principal amount				$ 507.9				$ 459.9	$ 507.9
Less unamortized discount and debt issuance costs				(4.7)				(3)	(4.7)
Total long-term debt				503.2				456.9	503.2
Estimated fair value of long-term debt				461.2				317.2	461.2
Gain (loss) on extinguishment of debt, net	$ 0.8	$ (0.1)	$ 0.5	0.9	$ (0.6)	$ (0.8)	$ (9.3)	1.2	(9.8)	$ (1.4)
2020 Senior Floating Rate Notes
INDEBTEDNESS
Principal amount repaid								290	60
Gain (loss) on extinguishment of debt, net								8.3	(1.8)
Term Loan
INDEBTEDNESS
Total principal amount				121				90	121
Principal amount repaid								31		310
Gain (loss) on extinguishment of debt, net								0.2		2.7
2022 Senior notes
INDEBTEDNESS
Total principal amount				$ 386.9				369.9	386.9
Principal amount repaid								17	22.1	17.3
Gain (loss) on extinguishment of debt, net								$ 1.4	$ 1.2	$ 0.4

INDEBTEDNESS AND BORROWING FA_4

INDEBTEDNESS AND BORROWING FACILITY - Revolving Credit Facility (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Feb. 22, 2018
Revolving Credit Facility
Borrowing base on line of credit	$ 60.2
Revolving credit facility
Revolving Credit Facility
Credit facility sub limit amount	50
Borrowing base on line of credit	60.2
Maximum borrowing capacity	$ 250
Minimum credit facility percentage	10.00%
Minimum maintained credit facility	$ 12.5
Fixed coverage ratio	1.00%
Revolving credit	$ 0
Maximum borrowing credit facility	$ 55.9
Revolving credit facility | Minimum
Revolving Credit Facility
Margin rate	1.75%
Percentage of commitment fee	0.25%
Revolving credit facility | Maximum
Revolving Credit Facility
Margin rate	2.00%
Percentage of commitment fee	0.375%
Revolving credit facility | LIBOR
Revolving Credit Facility
Interest borrowing on credit facility	LIBOR
Revolving credit facility | Wells Fargo, N.A
Revolving Credit Facility
Maximum borrowing capacity		$ 250
Letter of Credit
Revolving Credit Facility
Revolving credit	$ 4.3

INDEBTEDNESS AND BORROWING FA_5

INDEBTEDNESS AND BORROWING FACILITY - Senior Notes and Term Loan (Details) - USD ($) $ in Millions	Jun. 01, 2015	Apr. 16, 2014	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument
Gain (loss) on extinguishment of debt, net			$ 0.8	$ (0.1)	$ 0.5	$ 0.9	$ (0.6)	$ (0.8)	$ (9.3)	$ 1.2	$ (9.8)	$ (1.4)
2020 Senior Floating Rate Notes
Debt Instrument
Debt instruments, Face amount	$ 350
Margin rate	7.50%
Percentage of the Equity interests of existing and future domestic subsidiaries secured on a second priority basis for debt instruments	100.00%
Percentage of the Equity interests of existing and future foreign subsidiaries secured on a second priority basis for debt instruments	65.00%
Principal amount repaid										290	60
Gain (loss) on extinguishment of debt, net										8.3	(1.8)
2022 Senior notes
Debt Instrument
Debt instruments, Face amount		$ 500
Interest payable period		P6M
Net proceeds from debt		$ 489.7
Debt issuance costs		$ 10.3
Percentage of redemption premium on the debt issuance date		4.70%
Principal amount repaid										17	22.1	17.3
Gain (loss) on extinguishment of debt, net										1.4	$ 1.2	0.4
Interest rate		6.25%
Effective interest rate		6.58%
Term Loan
Debt Instrument
Debt instruments, Face amount		$ 550
Margin rate		4.75%
Discount on debt instruments issued		$ 2.7
Aggregate consideration		547.3
Net proceeds from debt		540
Debt issuance costs		$ 7.3
Percentage of the Equity interests of existing and future domestic subsidiaries secured on a first priority basis for debt instruments		100.00%
Percentage of the Equity interests of existing and future foreign subsidiaries secured on a first priority basis for debt instruments		65.00%
Principal amount repaid										31		310
Gain (loss) on extinguishment of debt, net										$ 0.2		$ 2.7
Effective interest rate										6.90%
LIBOR floor rate		1.00%

INDEBTEDNESS AND BORROWING FA_6

INDEBTEDNESS AND BORROWING FACILITY - Maturities of Long-term Debt (Details) $ in Millions	Dec. 31, 2019USD ($)
INDEBTEDNESS AND BORROWING FACILITY
2021	$ 90
2022	369.9
Total principal amount of long-term debt	$ 459.9

LEASES (Details)

LEASES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Lessee, Lease, Description [Line Items]
Remaining lease terms	6 years
Residual owed if value of leased assets is zero	$ 10.5
Operating Leases, Rent Expense		$ 49.9	$ 26.8
Components of our lease costs
Operating lease cost	21.1
Short-term lease cost	5.8
Total lease cost	26.9
Cash paid for amounts included in the measurement of our lease liabilities	21.3
Right-of-use assets obtained in exchange for lease liabilities	11
Operating lease right-of-use assets	$ 26.3
Weighted average remaining lease term (years)	2 years 3 months 18 days
Weighted average discount rate	5.00%
Accounting Standards Update 2016-02
Components of our lease costs
Operating lease right-of-use assets	$ 37.8

LEASES - Maturity of operating

LEASES - Maturity of operating lease liabilities (Details) $ in Millions	Dec. 31, 2019USD ($)
Maturity of our operating leases
2020	$ 15.4
2021	11
2022	1.2
2023	1.2
2024	1
Total lease payments	29.8
Less imputed interest	(1.6)
Total lease liabilities	$ 28.2

LEASES - Maturity of operatin_2

LEASES - Maturity of operating lease (Details) $ in Millions	Dec. 31, 2018USD ($)
Maturity of our operating leases
2019	$ 26
2020	14.9
2021	4.6
2022	1.5
2023	1.5
Thereafter	$ 1.1

STOCKHOLDERS_ EQUITY (DEFICIT)

STOCKHOLDERS’ EQUITY (DEFICIT) - Share Repurchase program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	May 31, 2019
STOCKHOLDERS' EQUITY (DEFICIT)
Stock Repurchase Program, Authorized Amount		$ 100
Stock Repurchase Program, Shares Repurchased	3
Stock Repurchase Program, Share Price	$ 3.34
Stock Repurchase Program, Repurchase Amount	$ 9.9
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 90.1

STOCKHOLDERS_ EQUITY (DEFICIT_2

STOCKHOLDERS’ EQUITY (DEFICIT) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Subsidiary, Sale of Stock
Shares sold by existing shareholder	4.3
Share price	$ 3.34
Net proceeds from issuance of common stock		$ 303
Conversion ratio	69.258777
IPO
Subsidiary, Sale of Stock
Total number of shares sold	22.4
Issuance of common stock (in shares)	18.1
Share price	$ 18
Net proceeds from issuance of common stock	$ 303
Convertible preferred stock conversion ratio	155.944841
Common stock holding percentage prior to IPO	7.00%
Recapitalization of convertible preferred stock to common stock (in shares)	39.4

STOCKHOLDERS_ EQUITY (DEFICIT_3

STOCKHOLDERS’ EQUITY (DEFICIT) - Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Aggregate consideration on sale of shares
Internal rate of return on investment	25.00%
Estimated accreted amount			1,132.7	$ 1,132.7
Qualified IPO for Preferred stock
Aggregate proceeds			$ 303
Additional amount on redemption of preferred stock equal to outstanding equity value divided by number of preferred stock (as a percentage)		20.00%
Series A convertible preferred stock
Preferred stock, issued (in shares)	350,000
Par value (per share)	$ 0.01
Aggregate consideration on sale of shares	$ 350
Net proceeds	349.8
Stock issuance costs	$ 0.2
Number of common stock equivalents attributable to convertible preferred stock	2,573
IPO
Qualified IPO for Preferred stock
Aggregate proceeds		$ 303
IPO | Minimum | Series A convertible preferred stock
Qualified IPO for Preferred stock
Aggregate proceeds		$ 250
Split-adjusted price (per share)		$ 1.50

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 15.4	$ 18.9
Weighted-average grant-date fair value	$ 2.56
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 1.2	3.8
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares authorized for grant	2.8
Additional shares authorized for grant	3.6
Shares available for grants	2.1
2018 Plan | Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 15.4	$ 15.2
Weighted-average grant-date fair value	$ 2.56	$ 19.67
Unrecognized compensation cost	$ 26.8
Weighted average period	2 years 2 months 12 days
2018 Plan | Minimum | Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	3 years
2018 Plan | Maximum | Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	4 years
2014 LTIP | Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Shares authorized for grant					55
Vesting percentage			50.00%	50.00%
2014 LTIP | Stock Settled RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 2
2014 LTIP | Cash Settled RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 1.7

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Unit (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Weighted-Average Grant Date Fair Value
Granted	$ 2.56
Employee restricted stock units | 2018 Plan
Number of Units
Beginning Balance	2,440
Granted	2,039
Vested	(907)
Ending Balance	3,572	2,440
Weighted-Average Grant Date Fair Value
Beginning Balance	$ 19.62
Granted	2.56	$ 19.67
Vested	17.33
Ending Balance	$ 10.46	$ 19.62

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 15.4	$ 18.9
Income tax benefit for all share based compensation expense	$ 1.2	$ 3.8
2018 Plan | Employee restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Number of options outstanding	3,572	2,440
Stock-based compensation expense	$ 15.4	$ 15.2
Fair value of vested awards	$ 15.8	$ 5

RETIREMENT PLAN (Details)

RETIREMENT PLAN (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan
Matching contribution by employer	$ 2.5	$ 4.1	$ 1.5
Maximum
Defined Contribution Plan
Matching contribution as a percentage	100.00%
Minimum
Defined Contribution Plan
Matching contribution as a percentage	0.00%

IMPAIRMENTS AND OTHER CHARGES -

IMPAIRMENTS AND OTHER CHARGES - Summary of Impairments and Other Charges (Details) $ in Millions	May 01, 2019USD ($)	Apr. 30, 2019USD ($)	May 31, 2019USD ($)	Dec. 31, 2019USD ($)item	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Impairments and other charges
Supply commitment charges												$ 58.5	$ 19.2	$ 1.2
Impairment of assets												9.7
Inventory write-down												1.4
Lease abandonment charges														0.6
Total impairments and other charges				$ 0.9	$ 5.1	$ 2.8	$ 60.8	$ 3.2	$ 10	$ 4	$ 2	69.6	19.2	1.8
Reduction of commitments			$ 162
Estimated loss from commitments under contract							55
Commitment amount	$ 21	$ 47.9
Annual commitment amount accrued				11								11
Total commitment amount accrued				$ 55			66					$ 55
Remaining annual commitment amount			$ 10
Payments made for purchase commitments						11
Other Impairments						$ 2.7
Amount of sand to be purchased annually to meet contract obligations			1
Amount of sand to be purchased where charges may be reduced			1
Number of fleets | item				34								28
Impairment of assets					$ 4.2							$ 9.7
Subsequent inventory firm purchase commitment loss recorded in current period												12
Proceeds from disposal of assets												3.3	$ 1.9	$ 4.1
Discontinued Wireline Operations
Impairments and other charges
Impairment of assets							2.8
Inventory write-down							$ 1.4
Proceeds from disposal of assets												$ 3.7

IMPAIRMENTS AND OTHER CHARGES_2

IMPAIRMENTS AND OTHER CHARGES - Impairment of Assets and Goodwill (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019
IMPAIRMENTS AND OTHER CHARGES
Impairment of assets identified to sell or no longer in use	$ 4.2	$ 9.7

IMPAIRMENTS AND OTHER CHARGES_3

IMPAIRMENTS AND OTHER CHARGES - Lease Abandonment Charges (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
IMPAIRMENTS AND OTHER CHARGES
Lease abandonment charges	$ 0.6

ASSET DISPOSALS (Details)

ASSET DISPOSALS (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Disclosure Text Block [Abstract]
Proceeds from sale of property and equipment	$ 4.1
Net gain (loss) on sale of property and equipment	$ 1.4

GAIN ON INSURANCE RECOVERIES (D

GAIN ON INSURANCE RECOVERIES (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2017	Dec. 31, 2017
Gain on insurance recoveries
Proceeds from insurance recoveries	$ 4.2	$ 4.2
Gain on insurance recoveries	$ 2.9	$ 2.9

INCOME TAXES - Components of in

INCOME TAXES - Components of income tax expense (benefit) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
State									$ 0.5	$ 2	$ 1.6
Foreign									0.9
Total current									1.4	2	1.6
Income tax expense (benefit)	$ 0.1	$ 1	$ 0.1	$ 0.2	$ (0.1)	$ 0.2	$ 0.9	$ 1	$ 1.4	$ 2	$ 1.6

INCOME TAXES - Income tax recon

INCOME TAXES - Income tax reconciliation (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended			36 Months Ended	96 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2019
Income tax expense (benefit) reconciliation
(Loss) income before income taxes	$ (12.9)	$ (9.8)	$ 6	$ (54.8)	$ 26.4	$ 49.8	$ 104.5	$ 79.7	$ (71.5)	$ 260.4	$ 202.3	$ 391.2	$ 4,375.5
Statutory federal income tax rate (as a percent)									21.00%	21.00%	35.00%
Federal income tax expense (benefit) at statutory rate									$ (15)	$ 54.7	$ 70.8
State income tax expense (benefit), net of federal effect									(0.1)	5.5	7.2
Effect of changes in income apportionment amongst states									12	6.1	8.2
Stock-based compensation									2.1	0.3
Effect of U.S. tax law change											424.8
Other items, net									1.7	(0.1)	1.7
Change in valuation allowance									0.7	(64.5)	(511.1)
Income tax expense (benefit)	$ 0.1	$ 1	$ 0.1	$ 0.2	$ (0.1)	$ 0.2	$ 0.9	$ 1	$ 1.4	$ 2	$ 1.6
Effective tax rate (as a percent)									(2.00%)	0.80%	0.80%
Additional tax expense on remeasurement of deferred tax assets									$ 424.8

INCOME TAXES - Deferred tax ass

INCOME TAXES - Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Goodwill and intangible assets	$ 257.5	$ 313
Federal net operating loss carryforwards	359.3	319.4
State net operating loss carryforwards, net of federal benefit	43.9	41
Operating lease liability	6.2
Accrued liabilities	13.7	5.7
Stock-based compensation	2.2	2.4
Other	2.3	1.8
Gross deferred tax assets	685.1	683.3
Valuation allowance	(671.7)	(671)
Total deferred tax assets	13.4	12.3
Deferred tax liabilities:
Property, plant, and equipment	7.6	12.3
Operating lease right-of use assets	5.8
Total deferred tax liabilities	13.4	12.3
Net deferred tax asset	$ 0	$ 0

INCOME TAXES - Operating loss c

INCOME TAXES - Operating loss carryforwards (Details) $ in Millions	Dec. 31, 2019USD ($)
Federal
Operating loss carryforwards
Net operating loss carryforwards	$ 1,710.9
Operating loss carryforwards subject to expiration	1,519.3
State
Operating loss carryforwards
Operating loss carryforwards expire between 2020 and 2031	$ 13.4

INCOME TAXES - Cumulative incom

INCOME TAXES - Cumulative income before income taxes (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended			36 Months Ended	96 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2019
INCOME TAXES
Net deferred tax assets	$ 0				$ 0				$ 0	$ 0		$ 0	$ 0
Cumulative income before income taxes	(12.9)	$ (9.8)	$ 6	$ (54.8)	26.4	$ 49.8	$ 104.5	$ 79.7	(71.5)	260.4	$ 202.3	391.2	4,375.5
Deductible temporary differences	685.1				$ 683.3				685.1	$ 683.3		685.1	685.1
Minimum
INCOME TAXES
Deductible temporary differences	$ 1,100								$ 1,100			$ 1,100	$ 1,100

INCOME TAXES - Unrecognized inc

INCOME TAXES - Unrecognized income tax benefits (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Unrecognized income tax benefits
Accrued interest expense with unrecognized tax benefits	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Feb. 22, 2019	Nov. 12, 2018	Jul. 19, 2018	Jun. 30, 2015	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Purchase obligations due
Purchases made under agreement					$ 19.9	$ 33.8	$ 38.8
2020					27.1
2021					23.7
2022					21.3
2023					21.3
2024					$ 21.1
Minimum
Purchase obligations due
Duration of purchase agreement (in years)					1 year
Maximum
Purchase obligations due
Duration of purchase agreement (in years)					5 years
Patterson Case
Litigation
Damages sought				$ 1
Damages awarded value		$ 33	$ 100
Glock Case
Litigation
Damages sought	$ 1
Purchase obligations recognized on the balance sheet
Purchase obligations due
2020					$ 11
2021					11
2022					11
2023					11
2024					11
Other purchase obligations
Purchase obligations due
2020					16.1
2021					12.7
2022					10.3
2023					10.3
2024					$ 10.1

EARNINGS (LOSS) PER SHARE - (De

EARNINGS (LOSS) PER SHARE - (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019USD ($)$ / shares	Sep. 30, 2019USD ($)$ / shares	Jun. 30, 2019USD ($)$ / shares	Mar. 31, 2019USD ($)$ / shares	Dec. 31, 2018USD ($)$ / shares	Sep. 30, 2018USD ($)$ / shares	Jun. 30, 2018USD ($)$ / shares	Mar. 31, 2018USD ($)$ / shares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares
Numerator:
Net (loss) income	$ (13)	$ (10.8)	$ 5.9	$ (55)	$ 26.5	$ 49.6	$ 103.6	$ 78.7	$ (72.9)	$ 258.4	$ 200.7
Convertible preferred stock accretion											(226.6)
Net reversal of convertible preferred stock accretion due to recapitalization of convertible preferred stock to common stock										423.2
Net income attributable to common stockholders used for basic EPS computation					$ 26.5	$ 49.6	$ 103.6	$ 501.9	(72.9)	681.6	(25.9)
Net income (loss) attributable to common stockholders used for diluted EPS computation									$ (72.9)	$ 681.6	$ (25.9)
Denominator:
Weighted average shares used for basic EPS computation | shares									108.8	104.2	51.8
Number of shares used for diluted EPS computation | shares									108.8	104.2	51.8
Basic and diluted EPS | $ / shares	$ (0.12)	$ (0.10)	$ 0.05	$ (0.50)	$ 0.24	$ 0.45	$ 0.95	$ 5.68	$ (0.67)	$ 6.54	$ (0.50)
Reverse stock split ratio									69.258777
Estimated accreted amount					$ 1,132.7					$ 1,132.7	$ 1,132.7
Recapitalization of convertible preferred stock to common stock										349.8
Share price | $ / shares	3.34								$ 3.34
Net reversal										423.2
IPO
Numerator:
Net reversal of convertible preferred stock accretion due to recapitalization of convertible preferred stock to common stock										423.2
Denominator:
Recapitalization of convertible preferred stock to common stock (in shares) | shares									39.4
Recapitalization of convertible preferred stock to common stock									$ 709.5
Share price | $ / shares	$ 18								$ 18
Net reversal										$ 423.2
Convertible preferred stock
Denominator:
Common stock equivalents | shares											13

SELECTED QUARTERLY DATA (UNAU_3

SELECTED QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended			36 Months Ended	96 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2019
Revenue
Revenue	$ 142.3	$ 186	$ 225.8	$ 221.6	$ 248.1	$ 324.4	$ 454.6	$ 423.3	$ 775.7	$ 1,450.4	$ 1,352.7
Revenue from related parties				0.9		10	38.7	44.2	0.9	92.9	113.4
Total revenue	142.3	186	225.8	222.5	248.1	334.4	493.3	467.5	776.6	1,543.3	1,466.1
Operating Costs and Expenses [Abstract]
Costs of revenue	102.7	147.2	165.9	163.1	169.4	222.2	329.4	312.2	578.9	1,033.2	1,009.8
Selling, general and administrative	22.7	21.1	21.7	23.6	21.6	19.7	20.8	25.8	89.1	87.9	81
Depreciation and amortization	22.1	22.7	22.8	22.4	22.3	21.1	20.7	20.6	90	84.7	86.6
Impairments and other charges	0.9	5.1	2.8	60.8	3.2	10	4	2	69.6	19.2	1.8
Gain on disposal of assets, net	(0.4)	(0.1)	(1.2)	0.3	(0.3)	(0.1)	(0.2)	0.5	(1.4)	(0.1)	(1.4)
Total operating expenses	148	196	212	270.2	216.2	272.9	374.7	361.1	826.2	1,224.9	1,174.9
Operating (loss) income	(5.7)	(10)	13.8	(47.7)	31.9	61.5	118.6	106.4	(49.6)	318.4	291.2
Interest expense, net	(7.2)	(7.6)	(7.7)	(8.2)	(9.4)	(10.4)	(12.1)	(17.4)	(30.7)	(49.3)	(86.7)
Gain (loss) on extinguishment of debt, net		0.8	(0.1)	0.5	0.9	(0.6)	(0.8)	(9.3)	1.2	(9.8)	(1.4)
Equity in net income (loss) of joint venture affiliate				0.6	3	(0.7)	(1.2)		0.6	1.1	(0.8)
Gain on sale of equity interest in joint venture affiliate		7							7
(Loss) income before income taxes	(12.9)	(9.8)	6	(54.8)	26.4	49.8	104.5	79.7	(71.5)	260.4	202.3	$ 391.2	$ 4,375.5
Income tax expense	0.1	1	0.1	0.2	(0.1)	0.2	0.9	1	1.4	2	1.6
Net (loss) income	$ (13)	$ (10.8)	$ 5.9	$ (55)	26.5	49.6	103.6	78.7	(72.9)	258.4	200.7
Net (loss) income attributable to common stockholders					$ 26.5	$ 49.6	$ 103.6	$ 501.9	$ (72.9)	$ 681.6	$ (25.9)
Basic and diluted (loss) earnings per share attributable to common stockholders	$ (0.12)	$ (0.10)	$ 0.05	$ (0.50)	$ 0.24	$ 0.45	$ 0.95	$ 5.68	$ (0.67)	$ 6.54	$ (0.50)
Shares used in computing basic and diluted (loss) earnings per share	107.3	108.6	109.7	109.7	109.4	109.3	109.3	88.4	108.8	104.2	51.8
Supply commitment charge				$ 55