Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36875 | |
Entity Registrant Name | EXTERRAN CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3282259 | |
Entity Address, Address Line One | 11000 Equity Drive | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77041 | |
City Area Code | 281 | |
Local Phone Number | 836-7000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | EXTN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,313,473 | |
Entity Central Index Key | 0001635881 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 57,089 | $ 56,255 |
Restricted cash | 12,026 | 5,796 |
Accounts receivable, net of allowance of $10,581, and $10,580, respectively | 203,351 | 179,844 |
Inventory (Note 5) | 80,503 | 102,494 |
Current investment in sales-type leases (Note 3 | 6,647 | 0 |
Contract assets (Note 2) | 29,784 | 25,554 |
Other current assets | 28,380 | 22,897 |
Current assets associated with discontinued operations (Note 4) | 10,588 | 15,558 |
Total current assets | 428,368 | 408,398 |
Property, plant and equipment, net (Note 6) | 603,457 | 604,957 |
Long-term contract assets (Note 2) | 141,678 | 67,822 |
Long-term investment in sales-type leases (Note 3) | 28,887 | 0 |
Operating lease right-of-use assets | 21,204 | 21,654 |
Deferred income taxes | 11,600 | 7,671 |
Intangible and other assets, net | 58,810 | 67,006 |
Long-term assets associated with discontinued operations (Note 4) | 1,517 | 1,689 |
Total assets | 1,295,521 | 1,179,197 |
Current liabilities: | ||
Accounts payable, trade | 85,851 | 70,782 |
Accrued liabilities | 142,562 | 137,825 |
Contract liabilities (Note 2) | 96,487 | 74,206 |
Current operating lease liabilities | 5,104 | 4,977 |
Current liabilities associated with discontinued operations (Note 4) | 2,255 | 2,299 |
Total current liabilities | 332,259 | 290,089 |
Long-term debt (Note 7) | 683,270 | 571,788 |
Deferred income taxes | 637 | 921 |
Long-term contract liabilities (Note 2) | 57,212 | 60,608 |
Long-term operating lease liabilities | 25,421 | 26,723 |
Other long-term liabilities | 49,194 | 44,410 |
Long-term liabilities associated with discontinued operations (Note 4) | 614 | 1,066 |
Total liabilities | 1,148,607 | 995,605 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share; 50,000,000 shares authorized; zero issued | 0 | 0 |
Common stock, $0.01 par value per share; 250,000,000 shares authorized; 38,086,576 and 38,064,007 shares issued, respectively | 381 | 381 |
Additional paid-in capital | 753,340 | 753,046 |
Accumulated deficit | (568,542) | (531,237) |
Treasury stock - 4,771,565 and 4,740,398 common shares, at cost, respectively | (57,917) | (57,742) |
Accumulated other comprehensive income | 19,652 | 19,144 |
Total stockholders' equity | 146,914 | 183,592 |
Total liabilities and stockholders’ equity | $ 1,295,521 | $ 1,179,197 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance (US dollars) | $ 10,581 | $ 10,580 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 38,086,576 | 38,064,007 |
Treasury stock, common shares | 4,771,565 | 4,740,398 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues (Note 2): | ||||
Revenue | $ 221,268 | $ 146,199 | $ 413,016 | $ 282,363 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 127,982 | 78,295 | 247,445 | 147,224 |
Selling, general and administrative | 38,125 | 33,630 | 80,005 | 66,261 |
Depreciation and amortization | 36,877 | 45,709 | 77,232 | 88,208 |
Impairment | 0 | 7,959 | 0 | 7,959 |
Merger expenses | 1,045 | 0 | 5,033 | 0 |
Restructuring and other charges (Note 9) | (182) | (370) | (182) | 254 |
Interest expense | 11,897 | 10,357 | 22,946 | 20,321 |
Other (income) expense, net | 2,295 | (3,159) | 665 | (98) |
Costs and expenses: | 218,039 | 172,421 | 433,144 | 330,129 |
Income (loss) before income taxes | 3,229 | (26,222) | (20,128) | (47,766) |
Provision for income taxes (Note 11) | 11,379 | 8,836 | 17,148 | 16,292 |
Loss from continuing operations | (8,150) | (35,058) | (37,276) | (64,058) |
Income (loss) from discontinued operations, net of tax (Note 4) | 490 | (156) | (29) | (1,029) |
Net loss | $ (7,660) | $ (35,214) | $ (37,305) | $ (65,087) |
Basic net loss per common share | ||||
Loss from continuing operations per common share (in dollars per share) | $ (0.25) | $ (1.06) | $ (1.11) | $ (1.94) |
Loss from discontinued operations per common share (in dollars per share) | 0.02 | (0.01) | 0 | (0.03) |
Net loss per common share | (0.23) | (1.07) | (1.11) | (1.97) |
Diluted net loss per common share | ||||
Loss from continuing operations per common share (in dollars per share) | (0.25) | (1.06) | (1.11) | (1.94) |
Income (loss) from discontinued operations per common share | 0.02 | (0.01) | 0 | (0.03) |
Net loss per common share | $ (0.23) | $ (1.07) | $ (1.11) | $ (1.97) |
Weighted average common shares outstanding used in net loss per common share (Note 13): | ||||
Basic (in shares) | 33,191 | 33,056 | 33,576 | 33,003 |
Diluted (in shares) | 33,191 | 33,056 | 33,576 | 33,003 |
Contract operations | ||||
Revenues (Note 2): | ||||
Revenue | $ 120,463 | $ 87,498 | $ 204,264 | $ 168,512 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 37,938 | 27,764 | 67,265 | 51,108 |
Aftermarket services | ||||
Revenues (Note 2): | ||||
Revenue | 36,179 | 29,401 | 62,442 | 54,521 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 27,204 | 23,422 | 47,025 | 43,434 |
Product sales | ||||
Revenues (Note 2): | ||||
Revenue | 64,626 | 29,300 | 146,310 | 59,330 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | $ 62,840 | $ 27,109 | $ 133,155 | $ 52,682 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (7,660) | $ (35,214) | $ (37,305) | $ (65,087) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (3,431) | 3,219 | 508 | 802 |
Comprehensive loss | $ (11,091) | $ (31,995) | $ (36,797) | $ (64,285) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2020 | $ 295,832 | $ 378 | $ 750,506 | $ (418,529) | $ (57,431) | $ 20,908 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (29,873) | (29,873) | ||||
Foreign currency translation adjustment | (2,417) | (2,417) | ||||
Treasury stock purchased | (310) | (310) | ||||
Stock-based compensation, net of forfeitures | 1,473 | 2 | 1,471 | |||
Ending balance at Mar. 31, 2021 | 264,705 | 380 | 751,977 | (448,402) | (57,741) | 18,491 |
Beginning balance at Dec. 31, 2020 | 295,832 | 378 | 750,506 | (418,529) | (57,431) | 20,908 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (65,087) | |||||
Foreign currency translation adjustment | 802 | |||||
Ending balance at Jun. 30, 2021 | 233,141 | 380 | 752,408 | (483,616) | (57,741) | 21,710 |
Beginning balance at Mar. 31, 2021 | 264,705 | 380 | 751,977 | (448,402) | (57,741) | 18,491 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (35,214) | (35,214) | ||||
Foreign currency translation adjustment | 3,219 | 3,219 | ||||
Stock-based compensation, net of forfeitures | 431 | 431 | ||||
Ending balance at Jun. 30, 2021 | 233,141 | 380 | 752,408 | (483,616) | (57,741) | 21,710 |
Beginning balance at Dec. 31, 2021 | 183,592 | 381 | 753,046 | (531,237) | (57,742) | 19,144 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (29,645) | (29,645) | ||||
Foreign currency translation adjustment | 3,939 | 3,939 | ||||
Treasury stock purchased | (175) | (175) | ||||
Stock-based compensation, net of forfeitures | 294 | 294 | ||||
Ending balance at Mar. 31, 2022 | 158,005 | 381 | 753,340 | (560,882) | (57,917) | 23,083 |
Beginning balance at Dec. 31, 2021 | 183,592 | 381 | 753,046 | (531,237) | (57,742) | 19,144 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (37,305) | |||||
Foreign currency translation adjustment | 508 | |||||
Ending balance at Jun. 30, 2022 | 146,914 | 381 | 753,340 | (568,542) | (57,917) | 19,652 |
Beginning balance at Mar. 31, 2022 | 158,005 | 381 | 753,340 | (560,882) | (57,917) | 23,083 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net loss | (7,660) | (7,660) | ||||
Foreign currency translation adjustment | (3,431) | (3,431) | ||||
Ending balance at Jun. 30, 2022 | $ 146,914 | $ 381 | $ 753,340 | $ (568,542) | $ (57,917) | $ 19,652 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (37,305) | $ (65,087) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 77,232 | 88,208 |
Impairment | 0 | 7,959 |
Amortization of deferred financing costs | 1,322 | 1,330 |
Loss from discontinued operations, net of tax | 29 | 1,029 |
Provision for doubtful accounts | 1 | 825 |
Gain on sale of property, plant and equipment | (205) | (816) |
(Gain) loss on remeasurement of intercompany balances | (1,432) | (810) |
(Gain) loss on foreign currency derivatives | 1,042 | 2,030 |
Stock-based compensation expense | 294 | 1,904 |
Deferred income tax expense | (3,500) | 1,349 |
Changes in assets and liabilities: | ||
Accounts receivable and notes | (23,170) | (5,522) |
Inventory | 22,187 | 2,271 |
Investment in sales-type leases | (35,534) | 0 |
Contract assets and contract liabilities, net | (56,728) | (12,995) |
Other current assets | (5,374) | (144) |
Accounts payable and other liabilities | 10,619 | (11,378) |
Other | 13,542 | 870 |
Net cash provided by continuing operations | (36,980) | 11,023 |
Net cash used in discontinued operations | (1,361) | (7,993) |
Net cash provided by operating activities | (38,341) | 3,030 |
Cash flows from investing activities: | ||
Capital expenditures | (63,897) | (12,483) |
Proceeds from sale of property, plant and equipment | 233 | 857 |
Net cash used in continuing operations | (63,664) | (11,626) |
Net cash used in discontinued operations | 0 | 0 |
Net cash used in investing activities | (63,664) | (11,626) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 256,000 | 121,400 |
Repayments of debt | (146,198) | (110,900) |
Short-term debt, net | 0 | 1,285 |
Purchases of treasury stock (Note 11) | (175) | (310) |
Net cash provided by financing activities | 109,627 | 11,475 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (558) | (136) |
Net increase in cash, cash equivalents and restricted cash | 7,064 | 2,743 |
Cash, cash equivalents and restricted cash at beginning of period | 62,051 | 43,728 |
Cash, cash equivalents and restricted cash at end of period | 69,115 | 46,471 |
Supplemental disclosure of non-cash transactions: | ||
Accrued capital expenditures | $ 23,955 | $ 7,420 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Note 1 - Description of Business and Basis of Presentation Description of Business Exterran Corporation (together with its subsidiaries, “Exterran Corporation,” the “Company,” “our,” “we” or “us”), a Delaware corporation formed in March 2015, is a global sustainable systems and process company offering solutions in the oil, gas, water and power markets. We are a leader in natural gas processing and treatment, produced water treatment and compression products, solutions and services, providing critical midstream infrastructure solutions to customers throughout the world while helping them reduce their flaring, emissions and fresh water usage. We provide our products, solutions, and services to a global customer base consisting of companies engaged in all aspects of the oil and natural gas industry, including large integrated oil and natural gas companies, national oil and natural gas companies, independent oil and natural gas producers and oil and natural gas processors, gatherers and pipeline operators. Our manufacturing facilities are located in the United States of America (“U.S.”), Singapore and the United Arab Emirates. We operate in three primary business lines: contract operations, aftermarket services and product sales. In our contract operations business line, we provide processing, treating, compression and water treatment services through the operation of our natural gas and crude oil production and process equipment and natural gas compression equipment and water treatment equipment for our customers. In our aftermarket services business line, we sell parts and components and provide operations, maintenance, repair, overhaul, upgrade, startup and commissioning and reconfiguration services to customers who own their own oil and natural gas compression, production, processing, treating and related equipment. In our product sales business line, we design, engineer, manufacture, install and sell equipment used in the treating and processing of crude oil, natural gas, natural gas compression packages and water to our customers throughout the world and for use in our contract operations business line. We also offer our customers, on either a contract operations basis or a sale basis, the engineering, design, project management, procurement and construction services necessary to incorporate our products into production, processing and compression facilities, which we refer to as integrated projects. Merger On January 24, 2022, we entered into an agreement and plan of merger (the "Merger Agreement") with Enerflex US Holdings Inc. ("Enerflex US"), a Delaware corporation and a wholly owned subsidiary of Enerflex Ltd. ("Enerflex"), a Canadian corporation. The Merger Agreement provides, among other things, that subject to the satisfaction or waiver of conditions set forth therein and in accordance with the General Corporation Law of the State of Delaware, Enerflex US shall be merged with and into Exterran Corporation ("Merger"), resulting in the Company continuing as the surviving corporation in the merger and as a wholly owned subsidiary of Enerflex. Under the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $ 0.01 per share, of the Company that is outstanding immediately prior, will be converted automatically into the right to receive 1.021 common shares of Enerflex (subject to certain conditions set forth in the Merger Agreement). The respective obligations of Enerflex, Enerflex US and the Company to consummate the Merger is subject to the satisfaction or waiver of a number of customary conditions, including: (1) the adoption of the Merger Agreement by Exterran Corporation’s stockholders; (2) approval of the issuance of Enerflex’s common shares to holders of shares of common stock of Exterran Corporation by Enerflex's shareholders; (3) Enerflex’s registration statement on Form F-4 having been declared effective by the U.S. Securities and Exchange Commission (“SEC”); (4) the absence of any law prohibiting or making illegal the consummation of the Merger; (5) the receipt of approvals by the competent authorities under the Antitrust Laws (as defined in the Merger Agreement) or expiration of any statutory waiting period under the applicable Antitrust Laws; (6) receipt of conditional approval of the listing of Enerflex’s common shares on the New York Stock Exchange or Nasdaq Inc., subject to official notice of issuance, and the Toronto Stock Exchange, subject to customary listing requirements, of Enerflex’s common shares issuable pursuant to the Merger; (7) each party's representations and warranties being true and correct, subject to certain materiality standards set forth in the Merger Agreement; (8) compliance by each party in all material respects with such party’s obligations under the Merger Agreement; and (9) the absence of a Parent Material Adverse Effect and a Company Adverse Material Effect (each as defined in the Merger Agreement). We anticipate the Merger to close in the second half of 2022, subject to, among other things, the satisfaction (or waiver) of the conditions in the previous paragraph. We have already started incurring legal and other costs and will continue to incur such costs until the Merger is closed. We incurred costs associated with these activities of $ 1.0 million and $ 5.0 million for the three and six months ended June 30, 2022 , respectively. These charges are reflected as merger expenses in our statements of operations and accrued liabilities on our balance sheets. We estimate the total merger expenses will be approximately $ 18 - 23 million and represents our best estimate based on the facts and circumstances known at this time. Liquidity Historically, the Company has met its liquidity needs principally from cash on hand, cash flow from operations and, if needed, external borrowings and issuances of debt securities. At June 30, 2022, the Company had $ 57.1 million of cash and cash equivalents and $ 146.3 million of remaining availability under our revolving credit facility (as defined in Note 7 – Debt) which resulted in a total liquidity position of $ 203.4 million . Based on its current forecasts, the Company believes that cash on hand, together with cash flow from operations, and current and any potential future borrowings under the revolving credit facility should be sufficient to meet its cash requirements inclusive of, but not limited to, normal operating needs, debt service obligations, and planned capital expenditures and commitments for at least the next twelve months from the issuance date of its consolidated financial statements. Further, a portion of our capital expenditures will also be funded through advanced payments from customers. However, the Company can make no assurance regarding its ability to achieve its forecasts, which are materially dependent on improved financial performance and the ever-changing market. At June 30, 2022, the Company had $ 336.0 million of borrowings under the revolving credit facility, which matures in October 2023 . Management will need to pursue refinancing if the merger with Enerflex, described above, does not close as expected during the second half of 2022. If the merger does not happen, there can be no assurances the Company will succeed in refinancing its credit facility. If unsuccessful, the Company will not have sufficient liquidity and capital resources to repay its indebtedness when it matures. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Exterran Corporation included herein have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly state our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2021. That report contains a comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. We refer to the consolidated financial statements collectively as “financial statements,” and individually as “balance sheets,” “statements of operations,” “statements of comprehensive income (loss),” “statements of stockholders’ equity” and “statements of cash flows” herein. Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable. Recently Adopted Accounting Pronouncements In June 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) . Topic 848 is effective for fiscal years and interim periods beginning as of March 12, 2020 through December 31, 2022. This update provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The adoption of ASU 2020-04 did not have a material impact to our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted There are no recently issued accounting pronouncements not yet adopted that would have a material impact on the Company. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2 - Revenue Disaggregation of Revenue The following tables present disaggregated revenue by products and services lines and by geographical regions for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenue by Products and Services 2022 2021 2022 2021 Contract Operations Segment: Contract operations services (1) $ 120,463 $ 87,498 $ 204,264 $ 168,512 Aftermarket Services Segment: Operation and maintenance services (1) $ 10,536 $ 12,474 $ 22,943 $ 24,516 Part sales (2) 18,946 13,272 30,474 22,322 Other services (1) 6,697 3,655 9,025 7,683 Total aftermarket services $ 36,179 $ 29,401 $ 62,442 $ 54,521 Product Sales Segment: Compression equipment (1) (3) $ 7,318 $ 2,646 $ 8,858 $ 7,972 Processing and treating equipment (1) 56,224 22,331 135,428 43,890 Other product sales (1) (2) 1,084 4,323 2,024 7,468 Total product sales revenues $ 64,626 $ 29,300 $ 146,310 $ 59,330 Total revenues $ 221,268 $ 146,199 $ 413,016 $ 282,363 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. (3) Compression equipment includes sales to customers outside of the U.S. The compression fabrication business for sales to U.S. customers that was previously included in our product sales segment is now included in discontinued operations. Three Months Ended June 30, Six Months Ended June 30, Revenue by Geographical Regions 2022 2021 2022 2021 North America $ 17,746 $ 3,100 $ 32,708 $ 9,425 Latin America 88,810 68,592 175,189 129,210 Middle East and Africa 103,645 61,979 182,673 119,158 Asia Pacific 11,067 12,528 22,446 24,570 Total revenues $ 221,268 $ 146,199 $ 413,016 $ 282,363 The North America region is primarily comprised of our operations in the U.S. The Latin America region is primarily comprised of our operations in Argentina, Bolivia, Brazil and Mexico. The Middle East and Africa region is primarily comprised of our operations in Bahrain, Iraq, Oman, Nigeria and the United Arab Emirates. The Asia Pacific region is primarily comprised of our operations in China, Indonesia, Singapore and Thailand. The following table summarizes the expected timing of revenue recognition from unsatisfied performance obligations (commonly referred to as backlog) as of June 30, 2022 (in thousands): Contract Operations Product Sales Segment Segment Remainder of 2022 $ 132,608 $ 192,424 2023 296,085 282,004 2024 273,784 19,849 2025 253,046 17,558 2026 211,885 — Thereafter 351,526 — Total backlog $ 1,518,934 $ 511,835 Certain of our aftermarket services contracts are subject to cancellation or modification at the election of the customer. If the primary component of our contract operations contracts is the lease component, the contracts are accounted for as operating leases. For these contracts, revenues are recognized on a straight-line basis. As of June 30, 2022, the total value of our contracts operations backlog accounted for as operating leases was approximately $ 435.9 million , of which $ 24 million is expected to be recognized in the remainder of 2022, $ 93 million is expected to be recognized in 2023, $ 84 million is expected to be recognized in 2024, $ 70 million is expected to be recognized in 2025 and $ 54 million is expected to be recognized in 2026. Contract operations revenue recognized as operating leases for the six months ended June 30, 2022 was approximately $ 21 million . Our product sales backlog includes contracts where there is a significant financing component. As of June 30, 2022, we had approximately $ 43 million expected to be recognized in future periods as interest income within our product sales segment. Contract Assets and Contract Liabilities The following table provides information about accounts receivables, net, contract assets and contract liabilities from contracts with customers (in thousands): June 30, 2022 December 31, 2021 Accounts receivables, net $ 203,351 $ 179,844 Contract assets and contract liabilities: Current contract assets 29,784 25,554 Long-term contract assets 141,678 67,822 Current contract liabilities 96,487 74,206 Long-term contract liabilities 57,212 60,608 During the six months ended June 30, 2022, revenue recognized from contract operations services included $ 31.4 million of revenue deferred in previous periods. Revenue recognized during the six months ended June 30, 2022 from product sales performance obligations partially satisfied in previous periods was $ 101.6 million , of which $ 7.6 million was included in billings in excess of costs at the beginning of the period. The increase in current contract assets during the six months ended June 30, 2022 is primarily due to the timing of milestone billings in the North America region. The increase in long-term contract assets during the six months ended June 30, 2022 was primarily due to the timing of milestones billings in the Middle East and Africa region. The increase in current contract liabilities during the six months ended June 30, 2022 was primarily driven by the progression of product sales projects and the timing of milestones billings in the Middle East and Africa region. The decrease in long-term contract liabilities during the six months ended June 30, 2022 was primarily driven by the recognition of deferred revenue on two separate contracts in the Middle East and Africa region. Allowance for Doubtful Accounts The Company estimates its reserves using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of accounts receivables, contract assets and long-term note receivables. The Company’s customer base has generally similar collectability risk characteristics, although larger customers may have lower risk than smaller independent customers. The allowance for doubtful accounts as of June 30, 2022 and changes for the six months then ended are as follows (in thousands): Balance at December 31, 2021 $ 10,580 Write-offs during the period 1 Balance at June 30, 2022 $ 10,581 |
Sales-Type Leases
Sales-Type Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Sales-type lease | Note 3 - Sales-Type Leases The Company has entered into sales-type lease arrangements due to the extension of certain contract operation contracts in the Latin America and Middle East and Africa regions. The Latin America region extensions contain options to extend or terminate the leases and options for the lessee to purchase the leased assets. The Middle East and Africa region extension contains purchase options and transfers the ownership of the leased assets at the completion of the lease term. Management has reviewed the options to purchase and terminate in the respective extensions and is reasonably certain that the customer would not exercise the termination or purchase options. Due to the fact that the Company's contract operations typically include service (a non-lease component), management may be required to allocate the contract consideration between lease and non-lease components in the event the contract does not specify consideration reflective of the market for each component. The Middle East and Africa region extension required management to allocate consideration between lease and non-lease components; the allocation between components is based on relative standalone price. The determination of relative standalone price requires management to make assumptions and judgements regarding what values are reflective of relative standalone price. For a sales-type lease, the carrying amount of the asset is derecognized from property, plant and equipment and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the discounted lease receivable and unguaranteed residual asset values. Selling profit or loss is presented on a gross basis when the Company enters into a lease to realize value from an asset that it would otherwise sell in its ordinary course of business. Initial direct costs are expensed at lease commencement. Over the term of the lease, the Company recognizes lease income on the net investment in the lease and any variable lease payments, which are not included in the net investment in the lease. The estimated residual value represents the estimated fair value of the assets under lease at the end of the lease. Estimating residual value is a risk unique to financing activities, and management of this risk is dependent upon the ability to accurately project future asset values. The Company estimates the future fair value of leased assets by using historical models and analyzing the market for new and used assets. The Company has determined there is no estimated residual value for the assets under lease due to the contract term. The following table presents amounts included within the Consolidated Statements of Operations in the Contract Operations line of business related to sales-type lease activity: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Sales-type lease selling price $ 36,479 $ — $ 36,479 $ — Less: Carrying value of underlying assets 4,642 — 4,642 — Gain on sales-type leases $ 31,837 $ — $ 31,837 $ — Investment in sales-type leases relate principally to the Company's contract operation services and are for terms ranging generally from eight to 10 years. A summary of the components of the company's investment in sales-type leases is presented as follows: June 30, 2022 December 31, 2021 Investment in sales-type leases, gross $ 35,534 $ — Residual value — — Amortized cost $ 35,534 $ — Allowance for credit losses — — Investment in sales-type leases, net $ 35,534 $ — Current portion 6,647 — Noncurrent portion 28,887 — Contractual maturities of gross investment in sales-type leases as of June 30, 2022, are as follows: Amount Remainder of 2022 $ 4,253 2023 7,661 2024 7,661 2025 7,661 2026 7,206 Thereafter 31,594 Total lease receipt payments $ 66,036 Less: Imputed interest ( 30,502 ) Investment in sales-type leases $ 35,534 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations We have continued to work toward our strategy to be a company that leverages technology and operational excellence to provide complete systems and process solutions in energy and industrial applications. Over the past several years, we have made significant progress in this journey by taking actions to protect our core business, develop important organizational capabilities, commercialize new products, solutions, and services and implement new processes to position Exterran for success. We are focused on optimizing our portfolio of products and services to better serve our global customers while providing a more attractive investment option for our investors. As we continue on this path, we decided that our U.S. compression fabrication business was non-core to our strategy, and during the third quarter of 2020, we entered into an agreement to sell the assets used to operate the business which closed on November 2, 2020. We did not sell certain items in inventory, which we expect to liquidate over time. During the third quarter of 2020, this business met the held for sale criteria and is now reflected as discontinued operations in our financial statements for all periods presented. The U.S. compression fabrication business was previously included in our product sales segment and has been reclassified to discontinued operations in our financial statements for all periods presented. Compression revenue from sales to international customers continues to be included in our product sales segment. In the first quarter of 2016, we began executing the exit of our Belleli EPC business that has historically been comprised of engineering, procurement and construction for the manufacture of tanks for tank farms and the manufacture of evaporators and brine heaters for desalination plants in the Middle East (referred to as “Belleli EPC” or the “Belleli EPC business” herein) by ceasing the bookings of new orders. As of the fourth quarter of 2017, we had substantially exited our Belleli EPC business and, in accordance with GAAP, it is reflected as discontinued operations in our financial statements for all periods presented. Although we have reached mechanical completion on all remaining Belleli EPC contracts, we are still subject to risks and uncertainties potentially resulting from warranty obligations, customer or supplier claims against us, settlement of claims against customers, completion of demobilization activities and litigation developments. The facility previously utilized to manufacture products for our Belleli EPC business has been repurposed to manufacture product sales equipment. As such, certain personnel, buildings, equipment and other assets that were previously related to our Belleli EPC business remain a part of our continuing operations. As a result, activities associated with our ongoing operations at our repurposed facility are included in continuing operations. The following table summarizes the operating results of discontinued operations (in thousands): Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Belleli EPC US Total Belleli EPC US Total Revenue $ — $ — $ — $ — $ — $ — Cost of sales (excluding depreciation and amortization — 315 315 — ( 37 ) ( 37 ) Selling, general and administrative 149 — 149 86 18 104 Depreciation and amortization — — — — — — Restructuring and other charges — — — — — — Other (income) expense, net 180 — 180 — 59 59 Provision for (benefit from) income taxes ( 1,134 ) — ( 1,134 ) 30 — 30 Income (loss) from discontinued operations, net of tax $ 805 $ ( 315 ) $ 490 $ ( 116 ) $ ( 40 ) $ ( 156 ) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Belleli EPC US Total Belleli EPC US Total Revenue $ — $ — $ — — $ 53 $ 53 Cost of sales (excluding depreciation and amortization — 765 765 55 172 227 Selling, general and administrative 229 — 229 244 413 657 Depreciation and amortization — — — — — — Restructuring and other charges — — — — — — Other (income) expense, net 170 — 170 34 59 93 Provision for (benefit from) income taxes ( 1,135 ) — ( 1,135 ) 105 — 105 Income (loss) from discontinued operations, net of tax $ 736 $ ( 765 ) $ ( 29 ) $ ( 438 ) $ ( 591 ) $ ( 1,029 ) The following table summarizes the balance sheet data for discontinued operations (in thousands): June 30, 2022 December 31, 2021 Belleli EPC US Total Belleli EPC US Total Accounts receivable $ 268 $ — $ 268 $ 268 $ — $ 268 Inventory — 8,972 8,972 — 14,853 14,853 Contract assets — 83 83 — 271 271 Other current assets 1,265 — 1,265 166 — 166 Total current assets associated with discontinued 1,533 9,055 10,588 434 15,124 15,558 Property, Plant, and Equipment — — — — — — Intangible and other assets, net 1,517 — 1,517 1,689 — 1,689 Total assets associated with discontinued operations $ 3,050 $ 9,055 $ 12,105 $ 2,123 $ 15,124 $ 17,247 Accounts payable $ — $ — $ — $ 35 $ 90 $ 125 Accrued liabilities 1,331 701 2,032 1,578 376 1,954 Contract liabilities 198 25 223 198 22 220 Total current liabilities associated with discontinued 1,529 726 2,255 1,811 488 2,299 Other long-term liabilities 614 — 614 694 372 1,066 Total liabilities associated with discontinued operations $ 2,143 $ 726 $ 2,869 $ 2,505 $ 860 $ 3,365 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5 - Inventory Inventory consisted of the following amounts (in thousands): June 30, 2022 December 31, 2021 Parts and supplies $ 65,725 $ 61,379 Work in progress 12,199 38,528 Finished goods 2,579 2,587 Inventory $ 80,503 $ 102,494 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 6 - Property, Plant and Equipment, Net Property, plant and equipment, net, consisted of the following (in thousands): June 30, 2022 December 31, 2021 Compression equipment, processing facilities and other fleet assets (1) $ 1,495,548 $ 1,519,855 Land and buildings 50,900 51,066 Transportation and shop equipment 52,311 53,371 Computer software 67,484 65,298 Other 42,189 41,061 1,708,432 1,730,651 Accumulated depreciation ( 1,104,975 ) ( 1,125,694 ) Property, plant and equipment, net $ 603,457 $ 604,957 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 - Debt Debt consisted of the following (in thousands): June 30, 2022 December 31, 2021 Revolving credit facility due October 2023 $ 336,000 $ 225,000 8.125 % senior notes due May 2025 350,000 350,000 Other 200 1,397 Unamortized deferred financing costs of 8.125 % senior notes ( 2,730 ) ( 3,212 ) Total debt 683,470 573,185 Less: Amounts within one year (1) ( 200 ) ( 1,397 ) Long-term debt $ 683,270 $ 571,788 (1) Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. Revolving Credit Facility Due October 2023 We and our wholly owned subsidiary, Exterran Energy Solutions, L.P. (“EESLP”), are parties to an amended and restated credit agreement (the “Amended Credit Agreement”) consisting of a $ 650.0 million revolving credit facility expiring in October 2023. As of June 30, 2022, we had $ 336.0 million in outstanding borrowings and $ 52.4 million in outstanding letters of credit under our revolving credit facility. At June 30, 2022, taking into account guarantees through letters of credit, we had undrawn capacity of $ 261.6 million under our revolving credit facility. Our Amended Credit Agreement limits our Total Debt to EBITDA ratio (as defined in the Amended Credit Agreement) on the last day of the fiscal quarter to no greater than 4.50 to 1.0. As a result of this limitation, $ 146.3 million of the $ 261.6 million of undrawn capacity under our revolving credit facility was available for additional borrowings as of June 30, 2022. The Amended Credit Agreement contains various covenants with which we, EESLP and our respective restricted subsidiaries must comply, including, but not limited to, limitations on the incurrence of indebtedness, investments, liens on assets, repurchasing equity, making distributions, transactions with affiliates, mergers, consolidations, dispositions of assets and other provisions customary in similar types of agreements. We are required to maintain, on a consolidated basis, a minimum interest coverage ratio (as defined in the Amended Credit Agreement) of 2.25 to 1.00; a maximum total leverage ratio (as defined in the Amended Credit Agreement) of 4.50 to 1.00; and a maximum senior secured leverage ratio (as defined in the Amended Credit Agreement) of 2.75 to 1.00. As of June 30, 2022, we maintained a 7.4 to 1.0 interest coverage ratio, a 3.7 to 1.0 total leverage ratio and a 1.8 to 1.0 senior secured leverage ratio. As of June 30, 2022, we were in compliance with all financial covenants under the Amended Credit Agreement. 8.125 % Senior Notes Due May 2025 In April 2017, our 100 % owned subsidiaries EESLP and EES Finance Corp. issued $ 375.0 million aggregate principal amount of 8.125 % senior unsecured notes due 2025 (the “2017 Notes”) which have $ 350.0 million outstanding as of June 30, 2022 . We guarantee the 2017 Notes on a senior unsecured basis. We may redeem the 2017 Notes at any time in cash, in whole or part, at certain redemption prices, including the applicable make-whole premium plus accrued and unpaid interest, if any, to the date of redemption. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 - Fair Value Measurements The accounting standard for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three categories: • Level 1 — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or prices vary substantially over time or among brokered market makers. • Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect our own assumptions regarding how market participants would price the asset or liability based on the best available information. Recurring Fair Value Measurements We are exposed to market risks associated with changes in foreign currency exchange rates, including foreign currency exchange rate changes recorded on intercompany obligations. From time to time, we may enter into foreign currency hedges to manage existing exposures to foreign exchange risk related to assets and liabilities recorded on our balance sheets including intercompany activity. As of June 30, 2022 and as of December 31, 2021, we were party to forward currency exchange contracts to mitigate exposures to the Argentine Peso. We did not designate these forward currency exchange contracts as hedge transactions. Changes in fair value and gains and losses on settlement on these forward currency exchange contracts are recognized in other (income) expense, net, in our statement of operations. As the June 30, 2022 and December 31, 2021 contracts settle on a daily basis, it was not necessary to estimate fair value of the current year foreign currency derivatives as nothing was recorded on the balance sheet as of June 30, 2022 and December 31, 2021. For the three months ended June 30, 2022 and 2021 , we recognized a loss of $ 0.2 million and $ 1.1 million, respectively, on forward currency contracts. During the six months ended June 30, 2022 and 2021, we recognized a loss of $ 1.0 million and $ 2.0 million, respectively, on forward currency exchange contracts. Nonrecurring Fair Value Measurements The following table presents our assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2022 and 2021, with pricing levels as of the date of valuation (in thousands): June 30, 2022 June 30, 2021 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ — $ — $ — $ — Long-term note receivable (2) — — 13,634 — — 12,119 (1) See Note 9 for discussion of asset impairment recorded in 2021. No impairment was recorded as of June 30, 2022. Our estimate of the fair value of the impaired long-lived assets as of June 30, 2021, were primarily based on the expectation that these assets are unlikely to generate future cash flows either through continuation of this contract or through proceeds from the sale of the assets and thus they were written down to zero. (2) Our estimate of the fair value of a note receivable was discounted based on a settlement in June 2026 and a discount rate of 12.5 % . The undiscounted value of the note receivable, including interest, as of June 30, 2022 was $ 15.7 million . Financial Instruments Our financial instruments consist of cash, restricted cash, receivables, payables and debt. At June 30, 2022 and December 31, 2021, the estimated fair values of cash, restricted cash, receivables and payables approximated their carrying amounts as reflected in our balance sheets due to the short-term nature of these financial instruments. The fair value of the 2017 Notes was estimated based on model derived calculations using market yields observed in active markets, which are Level 2 inputs. As of June 30, 2022 and December 31, 2021, the carrying amount of the 2017 Notes, excluding unamortized deferred financing costs, of $ 350.0 million was estimated to have a fair value of $ 331.6 million and $ 326.6 million, respectively. Due to the variable rate nature of our revolving credit facility, the carrying value as of June 30, 2022 and December 31, 2021 approximated the fair value as the rate was comparable to the then-current market rate at which debt with similar terms could have been obtained. |
Impairments
Impairments | 6 Months Ended |
Jun. 30, 2022 | |
Asset Impairment Charges [Abstract] | |
Impairments | Note 9 - Impairments We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, indicate that the carrying amount of an asset may not be recoverable. During the three and six months ended June 30, 2022, there were no events, or changes in circumstances to indicate that the carrying amount of an asset may not be recoverable. During the three months ended June 30, 2021, we determined that there was no visibility to continuing a contract with a customer in the Latin America region. This contract included installation costs, deferred start-up costs and demobilization costs that were previously capitalized where it is highly unlikely we will generate future cash flows. As a result, during the three and six months ended June 30, 2021, we recorded an $ 8.0 million asset impairment to reduce the book value of these assets to zero, which is its estimated fair value as of June 30, 2021. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The energy industry’s focus on cash flow, capital discipline and improving returns has caused delays in the timing of new equipment orders. As a result, in the third quarter of 2019, we announced a cost reduction plan primarily focused on workforce reductions. During the three months ended June 30, 2022 and 2021, we released an unused portion of previously expensed restructuring charges of $ 0.2 million and $ 0.4 million , respectively. During the six months ended June 30, 2022, we released an unused portion of previously expensed restructuring charges of $ 0.2 million . During the six months ended June 30, 2021, we incurred restructuring and other charges associated with these activities of $ 0.3 million , respectively. These charges are reflected as Restructuring and other charges in our statements of operations and accrued liabilities on our balance sheets. The cost reduction plan was substantially complete as of the end of the first quarter 2022. The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the six months ended June 30, 2022 and 2021 (in thousands): Cost Reduction Plan Beginning balance at January 1, 2021 $ 1,351 Additions for costs expensed, net 254 Reductions for payments ( 1,317 ) Foreign exchange impact 51 Ending balance at June 30, 2021 $ 339 Beginning balance at January 1, 2022 $ 182 Additions for costs expensed, net ( 182 ) Reductions for payments — Foreign exchange impact — Ending balance at June 30, 2022 $ — The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Employee termination benefits $ ( 182 ) $ ( 441 ) $ ( 182 ) $ 183 Legal fees — 71 — 71 Consulting fees — — — — Total restructuring and other charges $ ( 182 ) $ ( 370 ) $ ( 182 ) $ 254 The following table summarizes the components of charges included in restructuring and other charges incurred since the announcement of the cost reduction plan in the third quarter of 2019 (in thousands): Total Employee termination benefits $ 6,183 Legal fees 71 Consulting fees 3,205 Total restructuring and other charges $ 9,459 |
Provision for Income Taxes
Provision for Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 11 - Provision for Income Taxes Our effective tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income we earn, or losses we incur, in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. Our effective tax rate is also affected by valuation allowances recorded against loss carryforwards in the U.S. and certain other jurisdictions, foreign withholding taxes and changes in foreign currency exchange rates. The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21 % and our effective tax rate of 352.4 % for the three months ended June 30, 2022 : (i) a 220.9 % positive impact resulting from foreign currency devaluations in Argentina, (ii) an ( 89 )% negative impact resulting from foreign taxes in excess of the U.S. tax rate and other rate drivers, (iii) a 10.1 % positive impact resulting from deemed inclusions in the U.S. , (iv) a 63 % positive impact resulting from unrecognized tax benefits and (v) an 88.8 % positive impact resulting from an addition of valuation allowances against U.S. deferred tax assets. The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21 % and our effective tax rate of ( 85.2 )% for the six months ended June 30, 2022 : (i) a ( 47.8 )% negative impact resulting from foreign currency devaluations in Argentina, (ii) a 10.5 % positive impact resulting from foreign taxes in excess of the U.S. tax rate and other rate drivers, (iii) a ( 4.0 )% negative impact resulting from deemed inclusions in the U.S. , (iv) a ( 15.1 )% negative impact resulting from unrecognized tax benefits and (v) a ( 36.7 )% negative impact resulting from an addition of valuation allowances against U.S. deferred tax assets. Our effective tax rate decreased for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 primarily due to an increase in valuation allowances recorded in the U.S., a decrease in foreign taxes in excess of the U.S. tax rate, an increase in deemed inclusions in the U.S., an increase in unrecognized tax benefits and an increase in tax related to foreign exchange movement in Argentina. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 12 - Stockholders’ Equity Share Repurchase Program On February 20, 2019, our board of directors approved a share repurchase program under which the Company is authorized to purchase up to $ 100.0 million of its outstanding common stock through February 2022. The timing and method of any repurchases under the program will depend on a variety of factors, including prevailing market conditions among others. Purchases under the program may be suspended or discontinued at any time and we have no obligation to repurchase any amount of our common shares under the program. Shares of common stock acquired through the repurchase program are held in treasury at cost. During the six months ended June 30, 2022 and 2021 , we did no t repurchase any shares under this program. Additionally, treasury stock purchased during the six months ended June 30, 2022 and 2021 included shares withheld to satisfy employees’ tax withholding obligations in connection with vesting of restricted stock awards. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 13 - Stock-Based Compensation Stock Options There were no stock options granted during the six months ended June 30, 2022 and 2021. Restricted Stock, Restricted Stock Units and Performance Units For grants of restricted stock, restricted stock units and performance units, we recognize compensation expense over the applicable vesting period equal to the fair value of our common stock at the grant date. Grants of restricted stock, restricted stock units and performance units generally vest over two or three years proportionately on each grant date anniversary. The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the six months ended June 30, 2022. Equity Awards Liability Awards Weighted Average Weighted Average Shares Grant-Date Fair Shares Grant-Date Fair (in thousands) Value Per Share (in thousands) Value Per Share Non-vested awards, January 1, 2022 210 $ 9.51 2,174 $ 5.70 Granted 13 6.23 2,022 7.92 Vested ( 99 ) 14.27 ( 1,402 ) 6.94 Cancelled — — ( 43 ) 5.95 Non-vested awards, June 30, 2022 124 5.37 2,751 6.70 As of June 30, 2022, we estimate $ 8.7 million of unrecognized compensation cost related to unvested restricted stock, restricted stock units and performance units issued to our employees to be recognized over the weighted-average vesting period of 0.7 years. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 14 - Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) per common share is determined by dividing net income (loss) after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss from continuing operations, no effect is given to participating securities because they do not have a contractual obligation to participate in our losses. Diluted net income (loss) per common share is computed using the weighted average number of common shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options to purchase common stock and non-participating restricted stock units, unless their effect would be anti-dilutive. There are dilutive shares excluded from the EPS computation for the three and six months ended June 30, 2022 and 2021 as they would be anti-dilutive. The following table presents a reconciliation of basic and diluted net loss per common share for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share data): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator for basic and diluted net loss per common share: Loss from continuing operations $ ( 8,150 ) $ ( 35,058 ) $ ( 37,276 ) $ ( 64,058 ) Loss from discontinued operations, net of tax 490 ( 156 ) ( 29 ) ( 1,029 ) Less: Net income attributable to participating securities — — — — Net loss — used in basic and diluted net loss per common share $ ( 7,660 ) $ ( 35,214 ) $ ( 37,305 ) $ ( 65,087 ) Weighted average common shares outstanding including participating 33,439 33,350 33,838 33,289 Less: Weighted average participating securities outstanding ( 248 ) ( 294 ) ( 262 ) ( 286 ) Weighted average common shares outstanding — used in basic net 33,191 33,056 33,576 33,003 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units * * * * Weighted average common shares outstanding — used in diluted net 33,191 33,056 33,576 33,003 Net loss per common share: Basic and diluted $ ( 0.23 ) $ ( 1.07 ) $ ( 1.11 ) $ ( 1.97 ) * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | No te 15 - Commitments and Contingencies Contingencies We have agreements with financial institutions under which approximately $ 52.4 million of letters of credit or bank guarantees were outstanding as of June 30, 2022. These are put in place in certain situations to guarantee our performance obligations under contracts with counterparties. In addition to U.S. federal, state and local and foreign income taxes, we are subject to a number of taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of June 30, 2022 and December 31, 2021, we had accrued $ 2.2 million and $ 1.9 million, respectively, for the outcomes of non-income-based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We do not have any unasserted claims from non-income based tax audits that we have determined are probable of assertion. We also believe the likelihood is remote that the impact of potential unasserted claims from non-income-based tax audits could be material to our financial position, but it is possible that the resolution of future audits could be material to our results of operations or cash flows for the period in which the resolution occurs. Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability, commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business; however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. Litigation and Claims On December 19, 2020, we initiated arbitration in the International Court of Arbitration of the International Chamber of Commerce (“ICC”) against Iberoamericana de Hidrocarburos, S.A. De C.V. (“IHSA”) to collect approximately $ 38 million owed to us under three agreements, plus future lost profits, interest, attorneys’ fees, and other damages as allowed under the contracts and/or Mexican law. The three agreements relate to contract operation services provided to IHSA by Exterran. After we stopped providing services due to IHSA’s nonpayment and initiated arbitration, IHSA filed various legal proceedings against Exterran in Texas courts, Mexican courts and arbitration. In July 2022 Exterran entered into a settlement agreement with IHSA and its affiliates that resolves all disputes with no adverse impact to the financial statements as presented. The parties are in the process are performing their respective obligations under the settlement agreement. On July 5, 2021, Inesco Ingenieria & Construccion, S.A. (“Inesco”) filed a Demand for Arbitration in the ICC against Exterran Bolivia S.R.L. claiming it is owed approximately $ 13 million for certain goods and services allegedly provided to Exterran, delay damages, and increased expenses. Based on currently available information we believe Inesco’s claims are without merit; however, the results cannot be predicted with certainty. On February 24, 2022, the Local Labor Board of the State of Tabasco in Mexico (the "Labor Board") awarded a former employee of one of our subsidiaries approximately $ 120 million in connection with a dispute relating to the employee's severance pay following termination of his employment. In March 2015, this employee was terminated and was paid the undisputed portion of his severance pay, as determined by a local labor board. From March 2015 to the present, the former employee has challenged various aspects of the severance payment through court proceedings. The Company has prevailed in these earlier processes and certain facts of the dispute were established by court rulings, including the fact that the employee’s salary was approximately $ 3,500 MXN per day ($170 per day at the prevailing exchange rate). We believe the order of the Labor Board is in error and has no credible basis in law or fact. For instance, in 2017, the Labor Board ruled that the former employee was entitled to approximately $ 1.4 million MXN (approximately $ 70,000 at the prevailing exchange rate) as severance based on an appellate court’s determination based on Company records that the employee’s salary was approximately $ 3,500 MXN per day. However, the Labor Board’s February 2022 order increased the amount the employee is owed to approximately $ 120 million, an increase of over 170,000 % , ignoring the actual salary that had been established and using approximately $ 21,000 USD per day, an increase of over 12,000 % and an amount he never actually received while working for our subsidiary. Effectively, the Labor Board awarded the employee approximately 1,900 years of severance based on the correct wage rate. We have appealed the decision, and the appeal is pending before the First Collegiate Court of the Tenth Circuit in Labor Matters, in Villahermosa, Tabasco. Among other errors that are the subject of the appeal is the Labor Board’s (a) violation of principles of res judicata by disregarding prior court decisions establishing that the former employee’s salary was roughly $ 3,500 MXN per day ($ 170 per day at the prevailing exchange rate), (b) ignoring the applicable one-year statute of limitations in these types of matters, and (c) award of salary differences that were never part of the former employee's original or subsequent claims. The Company is pursuing all available avenues to preserve its rights, including potentially asserting claims against the Mexican government should the First Collegiate Court of the Tenth Circuit in Labor Matters fail to reverse the Labor Board’s order. While we have determined it is reasonably possible that we will incur some loss with respect to this matter under applicable accounting standards (ASC Topic 450, Contingencies), the Company believes that the ultimate resolution of this matter will not be material to the Company. In the ordinary course of business, we are involved in various pending or threatened legal actions. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from any of these actions will not have a material adverse effect on our financial position, results of operations or cash flows. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our financial position, results of operations or cash flows. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Our chief operating decision maker manages business operations, evaluates performance and allocates resources based upon the type of product or service provided. We have three reportable segments: contract operations, aftermarket services and product sales. In our contract operations segment, we provide processing, treating, compression and water treatment services through the operation of our natural gas and crude oil production and process equipment, natural gas compression equipment and water treatment equipment for our customers. In our aftermarket services segment, we sell parts and components and provide operations, maintenance, repair, overhaul, upgrade, startup and commissioning and reconfiguration services to customers who own their own oil and natural gas compression, production, processing, treating and related equipment. In our product sales segment, we design, engineer, manufacture, install and sell equipment used in the treating and processing of crude oil, natural gas and water as well as natural gas compression packages to our customers throughout the world and for use in our contract operations business line. We evaluate the performance of our segments based on adjusted gross margin for each segment. Revenue only includes sales to external customers. We do not include intersegment sales when we evaluate our segments’ performance. The following table presents revenue and other financial information by reportable segment for the three and six months ended June 30, 2022 and 2021 (in thousands): Reportable Contract Aftermarket Segments Three Months Ended June 30, Operations Services Product sales (2) Total 2022 Revenue $ 120,463 $ 36,179 $ 64,626 $ 221,268 Adjusted gross margin (1) 82,525 8,975 1,786 93,286 2021 Revenue $ 87,498 $ 29,401 $ 29,300 $ 146,199 Adjusted gross margin (1) 59,734 5,979 2,191 67,904 Reportable Contract Aftermarket Segments Six Months Ended June 30, Operations Services Product sales (2) Total 2022 Revenue $ 204,264 $ 62,442 $ 146,310 $ 413,016 Adjusted gross margin(1) 136,999 15,417 13,155 165,571 2021 Revenue $ 168,512 $ 54,521 $ 59,330 $ 282,363 Adjusted gross margin(1) 117,404 11,087 6,648 135,139 (1) Adjusted gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). (2) The U.S. compression fabrication business that was previously included in our product sales segment is now included in discontinued operations. The following table reconciles total gross margin to total adjusted gross margin (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues $ 221,268 $ 146,199 $ 413,016 $ 282,363 Cost of sales (excluding depreciation and amortization 127,982 78,295 247,445 147,224 Depreciation and amortization (1) 34,907 44,017 73,323 84,852 Total gross margin 58,379 23,887 92,248 50,287 Depreciation and amortization (1) 34,907 44,017 73,323 84,852 Total adjusted gross margin $ 93,286 $ 67,904 $ 165,571 $ 135,139 (1) Represents the portion only attributable to cost of sales. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Merger | Merger On January 24, 2022, we entered into an agreement and plan of merger (the "Merger Agreement") with Enerflex US Holdings Inc. ("Enerflex US"), a Delaware corporation and a wholly owned subsidiary of Enerflex Ltd. ("Enerflex"), a Canadian corporation. The Merger Agreement provides, among other things, that subject to the satisfaction or waiver of conditions set forth therein and in accordance with the General Corporation Law of the State of Delaware, Enerflex US shall be merged with and into Exterran Corporation ("Merger"), resulting in the Company continuing as the surviving corporation in the merger and as a wholly owned subsidiary of Enerflex. Under the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $ 0.01 per share, of the Company that is outstanding immediately prior, will be converted automatically into the right to receive 1.021 common shares of Enerflex (subject to certain conditions set forth in the Merger Agreement). The respective obligations of Enerflex, Enerflex US and the Company to consummate the Merger is subject to the satisfaction or waiver of a number of customary conditions, including: (1) the adoption of the Merger Agreement by Exterran Corporation’s stockholders; (2) approval of the issuance of Enerflex’s common shares to holders of shares of common stock of Exterran Corporation by Enerflex's shareholders; (3) Enerflex’s registration statement on Form F-4 having been declared effective by the U.S. Securities and Exchange Commission (“SEC”); (4) the absence of any law prohibiting or making illegal the consummation of the Merger; (5) the receipt of approvals by the competent authorities under the Antitrust Laws (as defined in the Merger Agreement) or expiration of any statutory waiting period under the applicable Antitrust Laws; (6) receipt of conditional approval of the listing of Enerflex’s common shares on the New York Stock Exchange or Nasdaq Inc., subject to official notice of issuance, and the Toronto Stock Exchange, subject to customary listing requirements, of Enerflex’s common shares issuable pursuant to the Merger; (7) each party's representations and warranties being true and correct, subject to certain materiality standards set forth in the Merger Agreement; (8) compliance by each party in all material respects with such party’s obligations under the Merger Agreement; and (9) the absence of a Parent Material Adverse Effect and a Company Adverse Material Effect (each as defined in the Merger Agreement). We anticipate the Merger to close in the second half of 2022, subject to, among other things, the satisfaction (or waiver) of the conditions in the previous paragraph. We have already started incurring legal and other costs and will continue to incur such costs until the Merger is closed. We incurred costs associated with these activities of $ 1.0 million and $ 5.0 million for the three and six months ended June 30, 2022 , respectively. These charges are reflected as merger expenses in our statements of operations and accrued liabilities on our balance sheets. We estimate the total merger expenses will be approximately $ 18 - 23 million and represents our best estimate based on the facts and circumstances known at this time. |
Liquidity | Liquidity Historically, the Company has met its liquidity needs principally from cash on hand, cash flow from operations and, if needed, external borrowings and issuances of debt securities. At June 30, 2022, the Company had $ 57.1 million of cash and cash equivalents and $ 146.3 million of remaining availability under our revolving credit facility (as defined in Note 7 – Debt) which resulted in a total liquidity position of $ 203.4 million . Based on its current forecasts, the Company believes that cash on hand, together with cash flow from operations, and current and any potential future borrowings under the revolving credit facility should be sufficient to meet its cash requirements inclusive of, but not limited to, normal operating needs, debt service obligations, and planned capital expenditures and commitments for at least the next twelve months from the issuance date of its consolidated financial statements. Further, a portion of our capital expenditures will also be funded through advanced payments from customers. However, the Company can make no assurance regarding its ability to achieve its forecasts, which are materially dependent on improved financial performance and the ever-changing market. At June 30, 2022, the Company had $ 336.0 million of borrowings under the revolving credit facility, which matures in October 2023 . Management will need to pursue refinancing if the merger with Enerflex, described above, does not close as expected during the second half of 2022. If the merger does not happen, there can be no assurances the Company will succeed in refinancing its credit facility. If unsuccessful, the Company will not have sufficient liquidity and capital resources to repay its indebtedness when it matures. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Exterran Corporation included herein have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly state our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2021. That report contains a comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. We refer to the consolidated financial statements collectively as “financial statements,” and individually as “balance sheets,” “statements of operations,” “statements of comprehensive income (loss),” “statements of stockholders’ equity” and “statements of cash flows” herein. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable. Recently Adopted Accounting Pronouncements In June 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) . Topic 848 is effective for fiscal years and interim periods beginning as of March 12, 2020 through December 31, 2022. This update provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The adoption of ASU 2020-04 did not have a material impact to our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted There are no recently issued accounting pronouncements not yet adopted that would have a material impact on the Company. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present disaggregated revenue by products and services lines and by geographical regions for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenue by Products and Services 2022 2021 2022 2021 Contract Operations Segment: Contract operations services (1) $ 120,463 $ 87,498 $ 204,264 $ 168,512 Aftermarket Services Segment: Operation and maintenance services (1) $ 10,536 $ 12,474 $ 22,943 $ 24,516 Part sales (2) 18,946 13,272 30,474 22,322 Other services (1) 6,697 3,655 9,025 7,683 Total aftermarket services $ 36,179 $ 29,401 $ 62,442 $ 54,521 Product Sales Segment: Compression equipment (1) (3) $ 7,318 $ 2,646 $ 8,858 $ 7,972 Processing and treating equipment (1) 56,224 22,331 135,428 43,890 Other product sales (1) (2) 1,084 4,323 2,024 7,468 Total product sales revenues $ 64,626 $ 29,300 $ 146,310 $ 59,330 Total revenues $ 221,268 $ 146,199 $ 413,016 $ 282,363 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. (3) Compression equipment includes sales to customers outside of the U.S. The compression fabrication business for sales to U.S. customers that was previously included in our product sales segment is now included in discontinued operations. Three Months Ended June 30, Six Months Ended June 30, Revenue by Geographical Regions 2022 2021 2022 2021 North America $ 17,746 $ 3,100 $ 32,708 $ 9,425 Latin America 88,810 68,592 175,189 129,210 Middle East and Africa 103,645 61,979 182,673 119,158 Asia Pacific 11,067 12,528 22,446 24,570 Total revenues $ 221,268 $ 146,199 $ 413,016 $ 282,363 |
Schedule of Expected Timing of Revenue Recognition from Unsatisfied Performance Obligation | The following table summarizes the expected timing of revenue recognition from unsatisfied performance obligations (commonly referred to as backlog) as of June 30, 2022 (in thousands): Contract Operations Product Sales Segment Segment Remainder of 2022 $ 132,608 $ 192,424 2023 296,085 282,004 2024 273,784 19,849 2025 253,046 17,558 2026 211,885 — Thereafter 351,526 — Total backlog $ 1,518,934 $ 511,835 |
Contract with Customer, Asset and Liability | The following table provides information about accounts receivables, net, contract assets and contract liabilities from contracts with customers (in thousands): June 30, 2022 December 31, 2021 Accounts receivables, net $ 203,351 $ 179,844 Contract assets and contract liabilities: Current contract assets 29,784 25,554 Long-term contract assets 141,678 67,822 Current contract liabilities 96,487 74,206 Long-term contract liabilities 57,212 60,608 |
Allowance for Doubtful Accounts | The allowance for doubtful accounts as of June 30, 2022 and changes for the six months then ended are as follows (in thousands): Balance at December 31, 2021 $ 10,580 Write-offs during the period 1 Balance at June 30, 2022 $ 10,581 |
Sales-type lease (Tables)
Sales-type lease (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of amounts included within the Consolidated Statements of Operations related to sales-type lease activity | The following table presents amounts included within the Consolidated Statements of Operations in the Contract Operations line of business related to sales-type lease activity: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Sales-type lease selling price $ 36,479 $ — $ 36,479 $ — Less: Carrying value of underlying assets 4,642 — 4,642 — Gain on sales-type leases $ 31,837 $ — $ 31,837 $ — |
Summary of the components of the company's investment in sales-type leases | A summary of the components of the company's investment in sales-type leases is presented as follows: June 30, 2022 December 31, 2021 Investment in sales-type leases, gross $ 35,534 $ — Residual value — — Amortized cost $ 35,534 $ — Allowance for credit losses — — Investment in sales-type leases, net $ 35,534 $ — Current portion 6,647 — Noncurrent portion 28,887 — |
Summary of maturities of gross investment in sales-type leases | Contractual maturities of gross investment in sales-type leases as of June 30, 2022, are as follows: Amount Remainder of 2022 $ 4,253 2023 7,661 2024 7,661 2025 7,661 2026 7,206 Thereafter 31,594 Total lease receipt payments $ 66,036 Less: Imputed interest ( 30,502 ) Investment in sales-type leases $ 35,534 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results and Balance Sheet Data for Discontinued Operations and Disposals | The following table summarizes the operating results of discontinued operations (in thousands): Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Belleli EPC US Total Belleli EPC US Total Revenue $ — $ — $ — $ — $ — $ — Cost of sales (excluding depreciation and amortization — 315 315 — ( 37 ) ( 37 ) Selling, general and administrative 149 — 149 86 18 104 Depreciation and amortization — — — — — — Restructuring and other charges — — — — — — Other (income) expense, net 180 — 180 — 59 59 Provision for (benefit from) income taxes ( 1,134 ) — ( 1,134 ) 30 — 30 Income (loss) from discontinued operations, net of tax $ 805 $ ( 315 ) $ 490 $ ( 116 ) $ ( 40 ) $ ( 156 ) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Belleli EPC US Total Belleli EPC US Total Revenue $ — $ — $ — — $ 53 $ 53 Cost of sales (excluding depreciation and amortization — 765 765 55 172 227 Selling, general and administrative 229 — 229 244 413 657 Depreciation and amortization — — — — — — Restructuring and other charges — — — — — — Other (income) expense, net 170 — 170 34 59 93 Provision for (benefit from) income taxes ( 1,135 ) — ( 1,135 ) 105 — 105 Income (loss) from discontinued operations, net of tax $ 736 $ ( 765 ) $ ( 29 ) $ ( 438 ) $ ( 591 ) $ ( 1,029 ) The following table summarizes the balance sheet data for discontinued operations (in thousands): June 30, 2022 December 31, 2021 Belleli EPC US Total Belleli EPC US Total Accounts receivable $ 268 $ — $ 268 $ 268 $ — $ 268 Inventory — 8,972 8,972 — 14,853 14,853 Contract assets — 83 83 — 271 271 Other current assets 1,265 — 1,265 166 — 166 Total current assets associated with discontinued 1,533 9,055 10,588 434 15,124 15,558 Property, Plant, and Equipment — — — — — — Intangible and other assets, net 1,517 — 1,517 1,689 — 1,689 Total assets associated with discontinued operations $ 3,050 $ 9,055 $ 12,105 $ 2,123 $ 15,124 $ 17,247 Accounts payable $ — $ — $ — $ 35 $ 90 $ 125 Accrued liabilities 1,331 701 2,032 1,578 376 1,954 Contract liabilities 198 25 223 198 22 220 Total current liabilities associated with discontinued 1,529 726 2,255 1,811 488 2,299 Other long-term liabilities 614 — 614 694 372 1,066 Total liabilities associated with discontinued operations $ 2,143 $ 726 $ 2,869 $ 2,505 $ 860 $ 3,365 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following amounts (in thousands): June 30, 2022 December 31, 2021 Parts and supplies $ 65,725 $ 61,379 Work in progress 12,199 38,528 Finished goods 2,579 2,587 Inventory $ 80,503 $ 102,494 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following (in thousands): June 30, 2022 December 31, 2021 Compression equipment, processing facilities and other fleet assets (1) $ 1,495,548 $ 1,519,855 Land and buildings 50,900 51,066 Transportation and shop equipment 52,311 53,371 Computer software 67,484 65,298 Other 42,189 41,061 1,708,432 1,730,651 Accumulated depreciation ( 1,104,975 ) ( 1,125,694 ) Property, plant and equipment, net $ 603,457 $ 604,957 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): June 30, 2022 December 31, 2021 Revolving credit facility due October 2023 $ 336,000 $ 225,000 8.125 % senior notes due May 2025 350,000 350,000 Other 200 1,397 Unamortized deferred financing costs of 8.125 % senior notes ( 2,730 ) ( 3,212 ) Total debt 683,470 573,185 Less: Amounts within one year (1) ( 200 ) ( 1,397 ) Long-term debt $ 683,270 $ 571,788 (1) Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents our assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2022 and 2021, with pricing levels as of the date of valuation (in thousands): June 30, 2022 June 30, 2021 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ — $ — $ — $ — Long-term note receivable (2) — — 13,634 — — 12,119 (1) See Note 9 for discussion of asset impairment recorded in 2021. No impairment was recorded as of June 30, 2022. Our estimate of the fair value of the impaired long-lived assets as of June 30, 2021, were primarily based on the expectation that these assets are unlikely to generate future cash flows either through continuation of this contract or through proceeds from the sale of the assets and thus they were written down to zero. (2) Our estimate of the fair value of a note receivable was discounted based on a settlement in June 2026 and a discount rate of 12.5 % . The undiscounted value of the note receivable, including interest, as of June 30, 2022 was $ 15.7 million . |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes to Accrued Liability Balance Related to Restructuring and Other Charges | The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the six months ended June 30, 2022 and 2021 (in thousands): Cost Reduction Plan Beginning balance at January 1, 2021 $ 1,351 Additions for costs expensed, net 254 Reductions for payments ( 1,317 ) Foreign exchange impact 51 Ending balance at June 30, 2021 $ 339 Beginning balance at January 1, 2022 $ 182 Additions for costs expensed, net ( 182 ) Reductions for payments — Foreign exchange impact — Ending balance at June 30, 2022 $ — |
Summary of the Components of Charges Included in Restructuring and Other Charges | The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Employee termination benefits $ ( 182 ) $ ( 441 ) $ ( 182 ) $ 183 Legal fees — 71 — 71 Consulting fees — — — — Total restructuring and other charges $ ( 182 ) $ ( 370 ) $ ( 182 ) $ 254 The following table summarizes the components of charges included in restructuring and other charges incurred since the announcement of the cost reduction plan in the third quarter of 2019 (in thousands): Total Employee termination benefits $ 6,183 Legal fees 71 Consulting fees 3,205 Total restructuring and other charges $ 9,459 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock, Restricted Stock Units, and Performance Units | The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the six months ended June 30, 2022. Equity Awards Liability Awards Weighted Average Weighted Average Shares Grant-Date Fair Shares Grant-Date Fair (in thousands) Value Per Share (in thousands) Value Per Share Non-vested awards, January 1, 2022 210 $ 9.51 2,174 $ 5.70 Granted 13 6.23 2,022 7.92 Vested ( 99 ) 14.27 ( 1,402 ) 6.94 Cancelled — — ( 43 ) 5.95 Non-vested awards, June 30, 2022 124 5.37 2,751 6.70 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Loss Per Common Share | The following table presents a reconciliation of basic and diluted net loss per common share for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share data): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator for basic and diluted net loss per common share: Loss from continuing operations $ ( 8,150 ) $ ( 35,058 ) $ ( 37,276 ) $ ( 64,058 ) Loss from discontinued operations, net of tax 490 ( 156 ) ( 29 ) ( 1,029 ) Less: Net income attributable to participating securities — — — — Net loss — used in basic and diluted net loss per common share $ ( 7,660 ) $ ( 35,214 ) $ ( 37,305 ) $ ( 65,087 ) Weighted average common shares outstanding including participating 33,439 33,350 33,838 33,289 Less: Weighted average participating securities outstanding ( 248 ) ( 294 ) ( 262 ) ( 286 ) Weighted average common shares outstanding — used in basic net 33,191 33,056 33,576 33,003 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units * * * * Weighted average common shares outstanding — used in diluted net 33,191 33,056 33,576 33,003 Net loss per common share: Basic and diluted $ ( 0.23 ) $ ( 1.07 ) $ ( 1.11 ) $ ( 1.97 ) * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Other Financial Information | The following table presents revenue and other financial information by reportable segment for the three and six months ended June 30, 2022 and 2021 (in thousands): Reportable Contract Aftermarket Segments Three Months Ended June 30, Operations Services Product sales (2) Total 2022 Revenue $ 120,463 $ 36,179 $ 64,626 $ 221,268 Adjusted gross margin (1) 82,525 8,975 1,786 93,286 2021 Revenue $ 87,498 $ 29,401 $ 29,300 $ 146,199 Adjusted gross margin (1) 59,734 5,979 2,191 67,904 Reportable Contract Aftermarket Segments Six Months Ended June 30, Operations Services Product sales (2) Total 2022 Revenue $ 204,264 $ 62,442 $ 146,310 $ 413,016 Adjusted gross margin(1) 136,999 15,417 13,155 165,571 2021 Revenue $ 168,512 $ 54,521 $ 59,330 $ 282,363 Adjusted gross margin(1) 117,404 11,087 6,648 135,139 (1) Adjusted gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). (2) The U.S. compression fabrication business that was previously included in our product sales segment is now included in discontinued operations. |
Reconciliation of Total Gross Margin to Total Adjusted Gross Margin | The following table reconciles total gross margin to total adjusted gross margin (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues $ 221,268 $ 146,199 $ 413,016 $ 282,363 Cost of sales (excluding depreciation and amortization 127,982 78,295 247,445 147,224 Depreciation and amortization (1) 34,907 44,017 73,323 84,852 Total gross margin 58,379 23,887 92,248 50,287 Depreciation and amortization (1) 34,907 44,017 73,323 84,852 Total adjusted gross margin $ 93,286 $ 67,904 $ 165,571 $ 135,139 (1) Represents the portion only attributable to cost of sales. |
Description of Business and B_3
Description of Business and Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Segment $ / shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / shares | |
Cash and Cash Equivalents [Line Items] | |||||
Number of business lines | Segment | 3 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Merger expenses | $ 1,045 | $ 0 | $ 5,033 | $ 0 | |
Cash and cash equivalents | 57,089 | 57,089 | $ 56,255 | ||
Total liquidity | 203,400 | 203,400 | |||
Revolving credit facility | |||||
Cash and Cash Equivalents [Line Items] | |||||
Remaining borrowing available | 146,300 | 146,300 | |||
Outstanding borrowings | $ 336,000 | $ 336,000 | |||
Outstanding borrowing maturity period | 2023-11 | 2023-11 | |||
Minimum | |||||
Cash and Cash Equivalents [Line Items] | |||||
Merger expenses | $ 18,000 | ||||
Maximum | |||||
Cash and Cash Equivalents [Line Items] | |||||
Merger expenses | $ 23,000 | ||||
Merger Agreement With Enerflex Us Holdings Inc [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock conversion basis | Under the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.01 per share, of the Company that is outstanding immediately prior, will be converted automatically into the right to receive 1.021 common shares of Enerflex (subject to certain conditions set forth in the Merger Agreement). |
Revenue - Disaggregation by Pro
Revenue - Disaggregation by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 221,268 | $ 146,199 | $ 413,016 | $ 282,363 | |
Contract operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 120,463 | 87,498 | 204,264 | 168,512 | |
Contract operations | Revenue recognized over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 120,463 | 87,498 | 204,264 | 168,512 |
Aftermarket services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 36,179 | 29,401 | 62,442 | 54,521 | |
Aftermarket services | Operation and maintenance services | Revenue recognized over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 10,536 | 12,474 | 22,943 | 24,516 |
Aftermarket services | Part sales | Revenue recognized at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [2] | 18,946 | 13,272 | 30,474 | 22,322 |
Aftermarket services | Other services | Revenue recognized over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 6,697 | 3,655 | 9,025 | 7,683 |
Product sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 64,626 | 29,300 | 146,310 | 59,330 | |
Product sales | Compression equipment | Revenue recognized over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1],[3] | 7,318 | 2,646 | 8,858 | 7,972 |
Product sales | Processing and treating equipment | Revenue recognized over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 56,224 | 22,331 | 135,428 | 43,890 |
Product sales | Other product sales | Transferred over time and transferred at point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1],[2] | $ 1,084 | $ 4,323 | $ 2,024 | $ 7,468 |
[1] Revenue recognized over time. Revenue recognized at a point in time. Compression equipment includes sales to customers outside of the U.S. The compression fabrication business for sales to U.S. customers that was previously included in our product sales segment is now included in discontinued operations. |
Revenue - Disaggregation by Geo
Revenue - Disaggregation by Geographical Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 221,268 | $ 146,199 | $ 413,016 | $ 282,363 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17,746 | 3,100 | 32,708 | 9,425 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 88,810 | 68,592 | 175,189 | 129,210 |
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 103,645 | 61,979 | 182,673 | 119,158 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 11,067 | $ 12,528 | $ 22,446 | $ 24,570 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 435,900 |
Operating lease contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 24,000 |
Expected timing of satisfaction, period | 6 months |
Operating lease contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 93,000 |
Expected timing of satisfaction, period | 1 year |
Operating lease contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 84,000 |
Expected timing of satisfaction, period | 1 year |
Operating lease contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 70,000 |
Expected timing of satisfaction, period | 1 year |
Operating lease contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 54,000 |
Expected timing of satisfaction, period | 1 year |
Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 1,518,934 |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 132,608 |
Expected timing of satisfaction, period | 6 months |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 296,085 |
Expected timing of satisfaction, period | 1 year |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 273,784 |
Expected timing of satisfaction, period | 1 year |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 253,046 |
Expected timing of satisfaction, period | 1 year |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 211,885 |
Expected timing of satisfaction, period | 1 year |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 351,526 |
Expected timing of satisfaction, period | 1 year |
Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 511,835 |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 192,424 |
Expected timing of satisfaction, period | 6 months |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 282,004 |
Expected timing of satisfaction, period | 1 year |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 19,849 |
Expected timing of satisfaction, period | 1 year |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 17,558 |
Expected timing of satisfaction, period | 1 year |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Expected timing of satisfaction, period | 1 year |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Expected timing of satisfaction, period | 1 year |
Product sales | Financing | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 43,000 |
Revenue - Performance Obligat_2
Revenue - Performance Obligations (Details1) $ in Thousands | Jun. 30, 2022 USD ($) |
Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 1,518,934 |
Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 511,835 |
Revenue - Expected Timing of Re
Revenue - Expected Timing of Revenue Recognition (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 1,518,934 |
Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 511,835 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 6 months |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 132,608 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 6 months |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 192,424 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 296,085 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 282,004 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 273,784 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 19,849 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 253,046 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 17,558 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 211,885 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 351,526 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Revenue - Expected Timing of _2
Revenue - Expected Timing of Revenue Recognition (Details1) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 435,900 |
Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | 511,835 |
Financing | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 43,000 |
Revenue (Additional Information
Revenue (Additional Information) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Operating lease income | $ 21 |
Revenue recognized from contract operations services including revenue deferred in previous periods | 31.4 |
Product sales | |
Disaggregation of Revenue [Line Items] | |
Performance obligation satisfied in previous periods | 101.6 |
Performance obligation satisfied in previous periods, included in billings in excess of costs | $ 7.6 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivables, net | $ 203,351 | $ 179,844 |
Contract assets and contract liabilities: | ||
Current contract assets | 29,784 | 25,554 |
Long-term contract assets | 141,678 | 67,822 |
Current contract liabilities | 96,487 | 74,206 |
Long-term contract liabilities | $ 57,212 | $ 60,608 |
Revenue - Allowance for Doubtfu
Revenue - Allowance for Doubtful Accounts (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 10,580 |
Write-offs during the period | (1) |
Ending balance | $ 10,581 |
Sales-Type Leases - Summary of
Sales-Type Leases - Summary of amounts included within the Consolidated Statements of Operations related to sales-type lease activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Sales-type lease selling price | $ 36,479 | $ 0 | $ 36,479 | $ 0 |
Less: Carrying value of underlying assets | 4,642 | 0 | 4,642 | 0 |
Sales-type Lease, Selling Profit (Loss), Total | $ 31,837 | $ 0 | $ 31,837 | $ 0 |
Sales-Type Leases (Additional I
Sales-Type Leases (Additional Information) (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Maximum | |
Sales-type Lease, Net Investment in Lease, Past Due [Line Items] | |
Investment in sales-type leases period | 10 years |
Minimum | |
Sales-type Lease, Net Investment in Lease, Past Due [Line Items] | |
Investment in sales-type leases period | 8 years |
Sales-Type Leases - Summary o_2
Sales-Type Leases - Summary of the components of the company's investment in sales-type leases (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Investment in sales-type leases, gross | $ 35,534 | $ 0 |
Residual value | 0 | 0 |
Amortized cost | 35,534 | 0 |
Allowance for credit losses | 0 | 0 |
Investment in sales-type leases, net | 35,534 | 0 |
Current portion | 6,647 | 0 |
Noncurrent portion | $ 28,887 | $ 0 |
Sales-Type Leases - Summary o_3
Sales-Type Leases - Summary of maturities of gross investment in sales-type leases (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 4,253 |
2023 | 7,661 |
2024 | 7,661 |
2025 | 7,661 |
2026 | 7,206 |
Thereafter | 31,594 |
Total lease receipt payments | 66,036 |
Less: Imputed interest | (30,502) |
Investment in sales-type leases | $ 35,534 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairments | $ 0 | $ 7,959 | $ 0 | $ 7,959 |
Income (loss) from discontinued operations, net of tax | 490 | (156) | (29) | (1,029) |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | 0 | 53 |
Cost of sales (excluding depreciation and amortization expense) | (315) | (37) | (765) | (227) |
Selling, general and administrative | 149 | 104 | 229 | 657 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other charges | 0 | 0 | 0 | 0 |
Other (income) expense, net | (180) | (59) | (170) | (93) |
Provision for (benefit from) income taxes | (1,134) | 30 | (1,135) | 105 |
Income (loss) from discontinued operations, net of tax | 490 | (156) | (29) | (1,029) |
Belleli EPC | Exit of Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales (excluding depreciation and amortization expense) | 0 | 0 | 0 | (55) |
Selling, general and administrative | 149 | 86 | 229 | 244 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other charges | 0 | 0 | 0 | 0 |
Other (income) expense, net | (180) | 0 | (170) | (34) |
Provision for (benefit from) income taxes | (1,134) | 30 | (1,135) | 105 |
Income (loss) from discontinued operations, net of tax | 805 | (116) | 736 | (438) |
US Compression | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | 0 | 53 |
Cost of sales (excluding depreciation and amortization expense) | (315) | (37) | (765) | (172) |
Selling, general and administrative | 0 | 18 | 0 | 413 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Restructuring and other charges | 0 | 0 | 0 | 0 |
Other (income) expense, net | 0 | (59) | 0 | (59) |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations, net of tax | $ (315) | $ (40) | $ (765) | $ (591) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Balance Sheet Data (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current contract assets | $ 29,784 | $ 25,554 |
Total current assets associated with discontinued operations | 10,588 | 15,558 |
Total current liabilities associated with discontinued operations | 2,255 | 2,299 |
Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 268 | 268 |
Inventory | 8,972 | 14,853 |
Current contract assets | 83 | 271 |
Other current assets | 1,265 | 166 |
Total current assets associated with discontinued operations | 10,588 | 15,558 |
Property, Plant, and Equipment | 0 | 0 |
Intangible and other assets, net | 1,517 | 1,689 |
Total assets associated with discontinued operations | 12,105 | 17,247 |
Accounts payable | 0 | 125 |
Accrued liabilities | 2,032 | 1,954 |
Contract liabilities | 223 | 220 |
Total current liabilities associated with discontinued operations | 2,255 | 2,299 |
Other long-term liabilities | 614 | 1,066 |
Total liabilities associated with discontinued operations | 2,869 | 3,365 |
Belleli EPC | Exit of Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 268 | 268 |
Inventory | 0 | 0 |
Current contract assets | 0 | 0 |
Other current assets | 1,265 | 166 |
Total current assets associated with discontinued operations | 1,533 | 434 |
Property, Plant, and Equipment | 0 | 0 |
Intangible and other assets, net | 1,517 | 1,689 |
Total assets associated with discontinued operations | 3,050 | 2,123 |
Accounts payable | 0 | 35 |
Accrued liabilities | 1,331 | 1,578 |
Contract liabilities | 198 | 198 |
Total current liabilities associated with discontinued operations | 1,529 | 1,811 |
Other long-term liabilities | 614 | 694 |
Total liabilities associated with discontinued operations | 2,143 | 2,505 |
US Compression | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 0 | 0 |
Inventory | 8,972 | 14,853 |
Current contract assets | 83 | 271 |
Other current assets | 0 | 0 |
Total current assets associated with discontinued operations | 9,055 | 15,124 |
Property, Plant, and Equipment | 0 | 0 |
Intangible and other assets, net | 0 | 0 |
Total assets associated with discontinued operations | 9,055 | 15,124 |
Accounts payable | 0 | 90 |
Accrued liabilities | 701 | 376 |
Contract liabilities | 25 | 22 |
Total current liabilities associated with discontinued operations | 726 | 488 |
Other long-term liabilities | 0 | 372 |
Total liabilities associated with discontinued operations | $ 726 | $ 860 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Composition of Inventory net of reserves | ||
Parts and supplies | $ 65,725 | $ 61,379 |
Work in progress | 12,199 | 38,528 |
Finished goods | 2,579 | 2,587 |
Inventory | $ 80,503 | $ 102,494 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 1,708,432 | $ 1,730,651 |
Accumulated depreciation | (1,104,975) | (1,125,694) |
Property, plant and equipment, net | 603,457 | 604,957 |
Compression equipment, processing facilities and other fleet assets | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 1,495,548 | 1,519,855 |
Land and buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 50,900 | 51,066 |
Transportation and shop equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 52,311 | 53,371 |
Computer software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 67,484 | 65,298 |
Other | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 42,189 | $ 41,061 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Other | $ 200 | $ 1,397 | |
Total debt | 683,470 | 573,185 | |
Less: Amounts due within one year | [1] | (200) | (1,397) |
Long-term debt (Note 7) | 683,270 | 571,788 | |
8.125% senior notes due May 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 350,000 | 350,000 | |
Unamortized deferred financing costs of 8.125% senior notes | $ (2,730) | $ (3,212) | |
Stated interest rate | 8.125% | 8.125% | |
Revolving credit facility due October 2023 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 336,000 | $ 225,000 | |
[1] Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Narrative) (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Outstanding letters of credit | $ 52.4 |
Revolving credit facility | |
Debt Instrument [Line Items] | |
Outstanding borrowings | 336 |
Undrawn capacity available | $ 146.3 |
Maximum senior secured leverage ratio | 2.75 |
Maximum total leverage ratio | 4.50 |
Maximum interest coverage ratio | 2.25 |
Revolving credit facility | Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Borrowing capacity under restated credit agreement | $ 650 |
Senior secured leverage ratio | 1.8 |
Total leverage ratio | 3.7 |
Interest coverage ratio | 7.4 |
Revolving credit facility | Credit Agreement | |
Debt Instrument [Line Items] | |
Outstanding borrowings | $ 336 |
Outstanding letters of credit | 52.4 |
Undrawn capacity under revolving credit facility | $ 261.6 |
Total debt to EBITDA ratio | 4.50 |
Undrawn capacity available | $ 146.3 |
Debt - 8.125% Senior Notes Due
Debt - 8.125% Senior Notes Due May 2025 (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 146,198 | $ 110,900 | ||
Revolving credit facility due October 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 336,000 | $ 225,000 | ||
Subsidiaries | EESLP And EES Finance Corp. | Exterran Corporation | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage by parent | 100% | |||
8.125% senior notes due May 2025 | Senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 8.125% | 8.125% | ||
Long-term Debt | $ 350,000 | $ 350,000 | ||
8.125% senior notes due May 2025 | Subsidiaries | Senior unsecured notes | EESLP And EES Finance Corp. | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 8.125% | |||
Aggregate principal amount of senior unsecured notes | $ 375,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Foreign Exchange Contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loss recognized on forward currency exchange contracts | $ 0.2 | $ 1.1 | $ 1 | $ 2 | |
Senior Notes | 8.125% senior notes due May 2025 | Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of notes | 350 | 350 | |||
Senior Notes | 8.125% senior notes due May 2025 | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of notes | $ 331.6 | $ 331.6 | $ 326.6 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Measurements (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | ||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Impairments | $ 0 | $ 7,959 | $ 0 | $ 7,959 | |
Undiscounted value of note receivable Including Interest | $ 15,700 | 15,700 | |||
Nonrecurring | |||||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Impairments | $ 0 | ||||
Nonrecurring | Maturiy | |||||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Notes receivable settlement month year | June 2026 | ||||
Nonrecurring | Discount rate | |||||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Discount rate | 0.125 | 0.125 | |||
Nonrecurring | (Level 1) | |||||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Impaired long-lived assets | [1] | $ 0 | 0 | $ 0 | 0 |
Long-term note receivable | [2] | 0 | 0 | 0 | 0 |
Nonrecurring | (Level 2) | |||||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Impaired long-lived assets | [1] | 0 | 0 | 0 | 0 |
Long-term note receivable | [2] | 0 | 0 | 0 | 0 |
Nonrecurring | (Level 3) | |||||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||||
Impaired long-lived assets | [1] | 0 | 0 | 0 | 0 |
Long-term note receivable | [2] | $ 13,634 | $ 12,119 | $ 13,634 | $ 12,119 |
[1] See Note 9 for discussion of asset impairment recorded in 2021. No impairment was recorded as of June 30, 2022. Our estimate of the fair value of the impaired long-lived assets as of June 30, 2021, were primarily based on the expectation that these assets are unlikely to generate future cash flows either through continuation of this contract or through proceeds from the sale of the assets and thus they were written down to zero. Our estimate of the fair value of a note receivable was discounted based on a settlement in June 2026 and a discount rate of 12.5 % . The undiscounted value of the note receivable, including interest, as of June 30, 2022 was $ 15.7 million . |
Impairments (Details)
Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Asset Impairment Charges [Abstract] | ||||
Impairments | $ 0 | $ 7,959 | $ 0 | $ 7,959 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ (182) | $ (370) | $ (182) | $ 254 |
Cost Reduction Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 200 | $ 400 | $ 200 | $ 300 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Summary of Charges to Accrued Liability Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring Charges | $ (182) | $ (370) | $ (182) | $ 254 | |
Restructuring and other charges | (182) | (370) | (182) | 254 | |
Restructuring and other charges incurred to date | $ 9,459 | ||||
Employee termination benefits | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Charges | (182) | (441) | (182) | 183 | |
Restructuring and other charges | 6,183 | ||||
Consulting fees | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Charges | 0 | 0 | 0 | 0 | |
Restructuring and other charges | 71 | ||||
Legal Fees | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Charges | 0 | 71 | 0 | 71 | |
Restructuring and other charges | $ 3,205 | ||||
Cost Reduction Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 182 | 1,351 | |||
Additions for costs expensed, net | (182) | 254 | |||
Reductions for payments | 0 | (1,317) | |||
Foreign exchange impact | 0 | (51) | |||
Ending balance | 0 | 339 | 0 | 339 | |
Restructuring and other charges | $ 200 | $ 400 | $ 200 | $ 300 |
Provision for Income Taxes Narr
Provision for Income Taxes Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21% | 21% |
Effective tax rate | 352.40% | (85.20%) |
Unrecognized tax benefits due to FIN 48 | 63% | (15.10%) |
Foreign currency devaluation | 220.90% | (47.80%) |
Foreign withholding tax rate differential | 89% | 10.50% |
Deemed inclusion in the US | 10.10% | (4.00%) |
Deferred tax assets valuation | 88.80% | (36.70%) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Feb. 20, 2019 | |
Equity [Abstract] | |||
Share repurchase program, authorized purchase amount | $ 100 | ||
Shares repurchased (in shares) | 0 | 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | 0 | 0 |
Restricted stock, restricted stock units and performance units for common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated unrecognized compensation cost | $ 8.7 | |
Weighted-average vesting period | 8 months 12 days | |
Minimum | Restricted stock, restricted stock units and performance units for common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
Maximum | Restricted stock, restricted stock units and performance units for common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock, Restricted Stock Units and Performance Units for Common Stock (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Equity Awards | |
Shares | |
Non-vested awards at the beginning of the period | shares | 210,000 |
Granted | shares | 13,000 |
Vested | shares | (99) |
Cancelled | shares | 0 |
Non-vested awards at the end of the period | shares | 124,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 9.51 |
Granted (in dollars per share) | $ / shares | 6.23 |
Vested (in dollars per share) | $ / shares | 14.27 |
Cancelled (in dollars per share) | $ / shares | 0 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 5.37 |
Liability Awards | |
Shares | |
Non-vested awards at the beginning of the period | shares | 2,174,000 |
Granted | shares | 2,022,000 |
Vested | shares | (1,402,000) |
Cancelled | shares | (43,000) |
Non-vested awards at the end of the period | shares | 2,751,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 5.70 |
Granted (in dollars per share) | $ / shares | 7.92 |
Vested (in dollars per share) | $ / shares | 6.94 |
Cancelled (in dollars per share) | $ / shares | 5.95 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 6.70 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator for basic and diluted net loss per common share: | ||||
Loss from continuing operations | $ (8,150) | $ (35,058) | $ (37,276) | $ (64,058) |
Loss from discontinued operations, net of tax | 490 | (156) | (29) | (1,029) |
Less: Net income attributable to participating securities | 0 | 0 | 0 | 0 |
Net loss — used in basic and diluted net loss per common share | $ (7,660) | $ (35,214) | $ (37,305) | $ (65,087) |
Weighted average common shares outstanding including participating securities | ||||
Weighted average common shares outstanding including participating securities (in shares) | 33,439,000 | 33,350,000 | 33,838,000 | 33,289,000 |
Less: Weighted average participating securities outstanding | (248) | (294) | 262 | (286) |
Weighted average common shares outstanding — used in basic net loss per common share (in shares) | 33,191,000 | 33,056,000 | 33,576,000 | 33,003,000 |
Net dilutive potential common shares issuable: | ||||
Weighted average common shares outstanding — used in diluted net loss per common share (in shares) | 33,191,000 | 33,056,000 | 33,576,000 | 33,003,000 |
Net loss per common share: | ||||
Basic (in dollars per share) | $ (0.23) | $ (1.07) | $ (1.11) | $ (1.97) |
Diluted (in dollars per share) | $ (0.23) | $ (1.07) | $ (1.11) | $ (1.97) |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit | $ 52.4 | |
Amount accrued for the outcomes of non-income-based tax audits | $ 2.2 | $ 1.9 |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation (Details) | 6 Months Ended | |||||
Feb. 24, 2022 USD ($) | Feb. 24, 2022 MXN ($) | Jul. 05, 2021 USD ($) | Dec. 19, 2020 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 MXN ($) | |
Loss Contingencies [Line Items] | ||||||
Amount of Legal Claim | $ 13,000,000 | $ 38,000,000 | ||||
Employee's salary | $ 3,500 | $ 3,500 | ||||
Severance Costs | $ 120,000,000 | $ 70,000 | ||||
Total Severance Costs | $ 1,400,000 | |||||
Increase severance costs percentage | 12,000% | 12,000% | ||||
Percentage of increase in salaries and wages | 170,000% | 170,000% | ||||
Period of severance based on correct wage rate | 1900 years | 1900 years | ||||
Former employee's salary description | Among other errors that are the subject of the appeal is the Labor Board’s (a) violation of principles of res judicata by disregarding prior court decisions establishing that the former employee’s salary was roughly $3,500 MXN per day ($170 per day at the prevailing exchange rate), (b) ignoring the applicable one-year statute of limitations in these types of matters, and (c) award of salary differences that were never part of the former employee's original or subsequent claims. | Among other errors that are the subject of the appeal is the Labor Board’s (a) violation of principles of res judicata by disregarding prior court decisions establishing that the former employee’s salary was roughly $3,500 MXN per day ($170 per day at the prevailing exchange rate), (b) ignoring the applicable one-year statute of limitations in these types of matters, and (c) award of salary differences that were never part of the former employee's original or subsequent claims. | ||||
Former employee salaries and wages | $ 170 | $ 3,500 | ||||
Increase severance costs amount | 21,000 | |||||
Damages Sought Value | $ 120,000,000 |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Revenues and Other Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenue | $ 221,268 | $ 146,199 | $ 413,016 | $ 282,363 | |||
Total adjusted gross margin | 93,286 | 67,904 | 165,571 | 135,139 | |||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 221,268 | 146,199 | 413,016 | 282,363 | |||
Total adjusted gross margin | [1] | 93,286 | 67,904 | 165,571 | 135,139 | ||
Contract operations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 120,463 | 87,498 | 204,264 | 168,512 | |||
Contract operations | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 120,463 | 87,498 | 204,264 | 168,512 | |||
Total adjusted gross margin | [1] | 82,525 | 59,734 | 136,999 | 117,404 | ||
Aftermarket Services | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 36,179 | 29,401 | 62,442 | 54,521 | |||
Aftermarket Services | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 36,179 | 29,401 | 62,442 | 54,521 | |||
Total adjusted gross margin | [1] | 8,975 | 5,979 | 15,417 | 11,087 | ||
Product sales | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 64,626 | 29,300 | 146,310 | 59,330 | |||
Product sales | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 64,626 | 29,300 | [2] | 146,310 | 59,330 | [2] | |
Total adjusted gross margin | [1] | $ 1,786 | $ 2,191 | [2] | $ 13,155 | $ 6,648 | [2] |
[1] Adjusted gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). The U.S. compression fabrication business that was previously included in our product sales segment is now included in discontinued operations. |
Reportable Segments - Reconcili
Reportable Segments - Reconciliation of Total Gross Margin to Total Adjusted Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Segment Reporting [Abstract] | |||||
Revenue | $ 221,268 | $ 146,199 | $ 413,016 | $ 282,363 | |
Cost of sales (excluding depreciation and amortization expense) | 127,982 | 78,295 | 247,445 | 147,224 | |
Depreciation and amortization | [1] | 34,907 | 44,017 | 73,323 | 84,852 |
Total gross margin | 58,379 | 23,887 | 92,248 | 50,287 | |
Total adjusted gross margin | $ 93,286 | $ 67,904 | $ 165,571 | $ 135,139 | |
[1] Represents the portion only attributable to cost of sales. |