Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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, $0.01 par value per share | |
Trading Symbol | EXTN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,126,975 | |
Entity Central Index Key | 0001635881 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 28,159 | $ 16,683 |
Restricted cash | 1,670 | 19 |
Accounts receivable, net of allowance of $10,473 and $6,019, respectively | 183,620 | 179,158 |
Inventory, net | 114,520 | 119,358 |
Contract assets | 49,092 | 36,997 |
Other current assets | 19,333 | 22,003 |
Current assets associated with discontinued operations | 28,491 | 61,705 |
Total current assets | 424,885 | 435,923 |
Property, plant, and equipment, net | 770,421 | 824,194 |
Operating lease right-of-use assets | 26,204 | 26,227 |
Deferred income taxes | 12,331 | 13,994 |
Intangible and other assets, net | 75,775 | 93,924 |
Long-term assets associated with discontinued operations | 20,877 | 23,742 |
Total assets | 1,330,493 | 1,418,004 |
Current liabilities: | ||
Accounts payable, trade | 59,230 | 82,864 |
Accrued liabilities | 99,976 | 92,641 |
Contract liabilities | 105,736 | 66,695 |
Current operating lease liabilities | 6,051 | 5,819 |
Current liabilities associated with discontinued operations | 37,355 | 78,626 |
Total current liabilities | 308,348 | 326,645 |
Long-term debt | 516,584 | 443,587 |
Deferred income taxes | 1,483 | 993 |
Long-term contract liabilities | 93,643 | 156,262 |
Long-term operating lease liabilities | 30,646 | 30,189 |
Other long-term liabilities | 51,514 | 48,749 |
Long- term liabilities associated with discontinued operations | 2,299 | 2,041 |
Total liabilities | 1,004,517 | 1,008,466 |
Commitments and contingencies | ||
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; 37,782,196 and 37,508,286 shares issued, respectively | 378 | 375 |
Additional paid-in capital | 749,694 | 747,622 |
Accumulated deficit | (385,152) | (317,238) |
Treasury stock — 4,651,961 and 4,467,600 common shares, at cost, respectively | (57,424) | (56,567) |
Accumulated other comprehensive income | 18,480 | 35,346 |
Total stockholders' equity | 325,976 | 409,538 |
Total liabilities and stockholders’ equity | $ 1,330,493 | $ 1,418,004 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance (US dollars) | $ 10,473 | $ 6,019 |
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 | 37,782,196 | 37,508,286 |
Treasury stock, common shares | 4,651,961 | 4,467,600 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Revenues | $ 169,511 | $ 185,950 | $ 461,362 | $ 618,320 |
Costs and expenses: | ||||
Selling, general and administrative | 29,959 | 32,308 | 95,049 | 108,902 |
Depreciation and amortization | 36,630 | 41,106 | 100,887 | 113,450 |
Impairments | 1,695 | 2,970 | 1,695 | 8,889 |
Restructuring and other charges | 238 | 1,257 | 3,550 | 6,342 |
Interest expense | 9,623 | 10,103 | 29,214 | 28,194 |
Gain on extinguishment of debt | (780) | 0 | (3,424) | 0 |
Other (income) expense, net | 1,178 | 2,101 | (1,169) | 399 |
Total costs and expenses | 180,489 | 198,467 | 494,473 | 644,346 |
Loss before income taxes | (10,978) | (12,517) | (33,111) | (26,026) |
Provision for income taxes | 5,745 | 477 | 18,970 | 20,209 |
Loss from continuing operations | (16,723) | (12,994) | (52,081) | (46,235) |
Income (loss) from discontinued operations, net of tax | (998) | 3,153 | (15,833) | 23,695 |
Net loss | $ (17,721) | $ (9,841) | $ (67,914) | $ (22,540) |
Basic and diluted net loss per common share | ||||
Loss from continuing operations per common share (in dollars per share) | $ (0.51) | $ (0.38) | $ (1.59) | $ (1.33) |
Income (loss) from discontinued operations per common share (in dollars per share) | (0.03) | 0.09 | (0.48) | 0.68 |
Net loss per common share (in dollars per share) | $ (0.54) | $ (0.29) | $ (2.07) | $ (0.65) |
Weighted average common shares outstanding used in net loss per common share | ||||
Basic and diluted (in shares) | 32,806 | 33,783 | 32,742 | 34,839 |
Contract operations | ||||
Revenues | ||||
Revenues | $ 81,679 | $ 96,261 | $ 254,412 | $ 271,645 |
Costs and expenses: | ||||
Cost of sales | 24,548 | 34,356 | 79,754 | 93,283 |
Aftermarket services | ||||
Revenues | ||||
Revenues | 30,435 | 34,893 | 83,337 | 92,308 |
Costs and expenses: | ||||
Cost of sales | 23,135 | 26,079 | 63,336 | 67,814 |
Product sales | ||||
Revenues | ||||
Revenues | 57,397 | 54,796 | 123,613 | 254,367 |
Costs and expenses: | ||||
Cost of sales | $ 54,263 | $ 48,187 | $ 125,581 | $ 217,073 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (17,721) | $ (9,841) | $ (67,914) | $ (22,540) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (2,080) | (3,631) | (16,866) | (4,179) |
Comprehensive loss | $ (19,801) | $ (13,472) | $ (84,780) | $ (26,719) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative-effect adjustment from adoption of ASC 842 Leases | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative-effect adjustment from adoption of ASC 842 Leases | Treasury Stock | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2018 | $ 552,821 | $ (6,184) | $ 369 | $ 734,458 | $ (208,677) | $ (6,184) | $ (11,560) | $ 38,231 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (5,394) | (5,394) | ||||||
Foreign currency translation adjustment | (968) | (968) | ||||||
Treasury stock purchased | (7,087) | (7,087) | ||||||
Stock-based compensation, net of forfeitures | 3,996 | 6 | 3,990 | |||||
Ending balance at Mar. 31, 2019 | 537,184 | 375 | 738,448 | (220,255) | (18,647) | 37,263 | ||
Beginning balance at Dec. 31, 2018 | 552,821 | $ (6,184) | 369 | 734,458 | (208,677) | $ (6,184) | (11,560) | 38,231 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (22,540) | |||||||
Foreign currency translation adjustment | (4,179) | |||||||
Ending balance at Sep. 30, 2019 | 489,099 | 375 | 745,229 | (237,401) | (53,156) | 34,052 | ||
Beginning balance at Mar. 31, 2019 | 537,184 | 375 | 738,448 | (220,255) | (18,647) | 37,263 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (7,305) | (7,305) | ||||||
Foreign currency translation adjustment | 420 | 420 | ||||||
Transfers from Archrock, Inc. | 420 | 420 | ||||||
Treasury stock purchased | (14,224) | (14,224) | ||||||
Stock-based compensation, net of forfeitures | 3,487 | 3,487 | ||||||
Ending balance at Jun. 30, 2019 | 519,982 | 375 | 742,355 | (227,560) | (32,871) | 37,683 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (9,841) | (9,841) | ||||||
Foreign currency translation adjustment | (3,631) | (3,631) | ||||||
Treasury stock purchased | (20,285) | (20,285) | ||||||
Stock-based compensation, net of forfeitures | 2,874 | 2,874 | ||||||
Ending balance at Sep. 30, 2019 | 489,099 | 375 | 745,229 | (237,401) | (53,156) | 34,052 | ||
Beginning balance at Dec. 31, 2019 | 409,538 | 375 | 747,622 | (317,238) | (56,567) | 35,346 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (18,304) | (18,304) | ||||||
Foreign currency translation adjustment | (11,056) | (11,056) | ||||||
Treasury stock purchased | (835) | (835) | ||||||
Stock-based compensation, net of forfeitures | 285 | 2 | 283 | |||||
Ending balance at Mar. 31, 2020 | 379,628 | 377 | 747,905 | (335,542) | (57,402) | 24,290 | ||
Beginning balance at Dec. 31, 2019 | 409,538 | 375 | 747,622 | (317,238) | (56,567) | 35,346 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (67,914) | |||||||
Foreign currency translation adjustment | (16,866) | |||||||
Ending balance at Sep. 30, 2020 | 325,976 | 378 | 749,694 | (385,152) | (57,424) | 18,480 | ||
Beginning balance at Mar. 31, 2020 | 379,628 | 377 | 747,905 | (335,542) | (57,402) | 24,290 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (31,889) | (31,889) | ||||||
Foreign currency translation adjustment | (3,730) | (3,730) | ||||||
Treasury stock purchased | (10) | (10) | ||||||
Stock-based compensation, net of forfeitures | 1,121 | 1 | 1,120 | |||||
Ending balance at Jun. 30, 2020 | 345,120 | 378 | 749,025 | (367,431) | (57,412) | 20,560 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (17,721) | (17,721) | ||||||
Foreign currency translation adjustment | (2,080) | (2,080) | ||||||
Treasury stock purchased | (12) | (12) | ||||||
Stock-based compensation, net of forfeitures | 669 | 669 | ||||||
Ending balance at Sep. 30, 2020 | $ 325,976 | $ 378 | $ 749,694 | $ (385,152) | $ (57,424) | $ 18,480 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (67,914) | $ (22,540) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 100,887 | 113,450 |
Impairments | 1,695 | 8,889 |
Amortization of deferred financing costs | 1,871 | 1,884 |
(Income) loss from discontinued operations, net of tax | 15,833 | (23,695) |
Provision for doubtful accounts | 4,449 | 0 |
Gain on sale of property, plant and equipment | (269) | (1,361) |
Gain on remeasurement of intercompany balances | (3,822) | (153) |
(Gain) loss on foreign currency derivatives | (27) | 794 |
Gain on extinguishment of debt | (3,424) | 0 |
Stock-based compensation expense | 2,075 | 10,357 |
Deferred income tax expense (benefit) | 2,779 | (5,812) |
Changes in assets and liabilities: | ||
Accounts receivable and notes | (10,777) | 21,101 |
Inventory | 3,695 | (18,305) |
Contract assets | (12,561) | 23,939 |
Other current assets | 5,271 | 16,560 |
Accounts payable and other liabilities | (13,517) | (31,255) |
Contract liabilities | (5,669) | 68,004 |
Other | 5,097 | (4,396) |
Net cash provided by continuing operations | 25,672 | 157,461 |
Net cash used in discontinued operations | (19,884) | (34,499) |
Net cash provided by operating activities | 5,788 | 122,962 |
Cash flows from investing activities: | ||
Capital expenditures | (65,852) | (169,969) |
Proceeds from sale of property, plant and equipment | 240 | 4,282 |
Settlement of foreign currency derivatives | 0 | (794) |
Net cash used in continuing operations | (65,612) | (166,481) |
Net cash used in discontinued operations | (882) | (2,149) |
Net cash used in investing activities | (66,494) | (168,630) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 305,000 | 530,000 |
Repayments of debt | (229,560) | (439,338) |
Transfer from Archrock, Inc. | 0 | 420 |
Purchases of treasury stock | (857) | (41,596) |
Net cash provided by financing activities | 74,583 | 49,486 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (750) | (1,298) |
Net increase in cash, cash equivalents and restricted cash | 13,127 | 2,520 |
Cash, cash equivalents and restricted cash at beginning of period | 16,702 | 19,478 |
Cash, cash equivalents and restricted cash at end of period | 29,829 | 21,998 |
Supplemental disclosure of non-cash transactions: | ||
Accrued capital expenditures | $ 2,529 | $ 6,358 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 systems and process company offering solutions in the oil, gas, water and power markets. We are a leader in natural gas processing and treatment and compression products and services, providing critical midstream infrastructure solutions to customers throughout the world. We provide our products 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 U.S., Singapore and the United Arab Emirates. We operate in three primary business lines: contract operations, aftermarket services and product sales. 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 United States of America (“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, 2019. 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. Certain reclassifications have been made for the prior year period to conform to the current year presentation. We refer to the condensed 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. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus (“COVID-19”) a pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption across most industries. Efforts to mitigate the spread of COVID-19 have also resulted in decreased energy demand and additional weakness in energy pricing. To help control the spread of the virus and protect the health and safety of our employees and customers, we began temporarily closing our locations or modifying operating hours in our locations around the world. This was in response to governmental requirements including “stay-at-home” orders and similar mandates and in some of our locations we voluntarily went beyond the requirements of local government authorities. The broader implications of COVID-19 on our long-term future results of operations and overall financial condition remains uncertain. Due to the rapid market deterioration during the three months ended March 31, 2020, we concluded that a trigger existed and that we should evaluate our long-term assets for impairment. Therefore, we updated our impairment analysis and concluded that no impairment existed during the three months ended March 31, 2020. 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 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. On January 1, 2020, we adopted this update using a modified retrospective approach. The adoption of this update was immaterial to our financial statements. For more information regarding the allowance for doubtful accounts, see Note . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. On January 1, 2020, we adopted this update. The adoption of this update was immaterial to our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update simplifies the accounting for income taxes and is effective for annual and interim periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the potential impact of the update on our financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Revenue by Products and Services 2020 2019 2020 2019 Contract Operations Segment: Contract operations services (1) $ 81,679 $ 96,261 $ 254,412 $ 271,645 Aftermarket Services Segment: Operation and maintenance services (1) $ 12,966 $ 14,069 $ 38,184 $ 40,844 Part sales (2) 11,490 10,208 31,999 32,197 Other services (1) 5,979 10,616 13,154 19,267 Total aftermarket services $ 30,435 $ 34,893 $ 83,337 $ 92,308 Product Sales Segment (3) : Compression equipment (1) $ 40,300 $ 4,764 $ 73,654 $ 10,516 Processing and treating equipment (1) 14,220 47,843 34,836 236,926 Production equipment (2) — — 578 2,458 Other product sales (1) (2) 2,877 2,189 14,545 4,467 Total product sales revenues $ 57,397 $ 54,796 $ 123,613 $ 254,367 Total revenues $ 169,511 $ 185,950 $ 461,362 $ 618,320 (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 September 30, Nine Months Ended September 30, Revenue by Geographical Regions 2020 2019 2020 2019 North America $ 13,364 $ 22,007 $ 31,694 $ 95,813 Latin America 60,302 85,928 195,451 240,576 Middle East and Africa 69,682 66,601 177,768 249,861 Asia Pacific 26,163 11,414 56,449 32,070 Total revenues $ 169,511 $ 185,950 $ 461,362 $ 618,320 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 September 30, 2020 (in thousands): Contract Operations Segment Product Sales Segment Remainder of 2020 $ 75,935 $ 46,284 2021 283,571 177,333 2022 224,186 200,041 2023 165,739 34,681 2024 144,456 9,000 Thereafter 314,252 29,315 Total backlog $ 1,208,139 $ 496,654 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 September 30, 2020, the total value of our contracts operations backlog accounted for as operating leases was approximately $158 million, of which $9 million is expected to be recognized in the remainder of 2020, $33 million is expected to be recognized in 2021, $44 million is expected to be recognized in 2022, $44 million is expected to be recognized in 2023 and $28 million is expected to be recognized in 2024. Contract operations revenue recognized as operating leases for the nine months ended September 30, 2020 was approximately $26 million. Our product sales backlog includes contracts where there is a significant financing component. As of September 30, 2020, 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): September 30, 2020 December 31, 2019 Accounts receivables, net $ 183,620 $ 179,158 Contract assets and contract liabilities: Current contract assets 49,092 36,997 Long-term contract assets 7,701 16,280 Current contract liabilities 105,736 66,695 Long-term contract liabilities 93,643 156,262 During the nine months ended September 30, 2020, revenue recognized from contract operations services included $25.9 million of revenue deferred in previous periods. Revenue recognized during the nine months ended September 30, 2020 from product sales performance obligations partially satisfied in previous periods was $84.1 million, of which $28.6 million was included in billings in excess of costs at the beginning of the period. The increase in current contract assets during the nine months ended September 30, 2020 was primarily driven by the timing of milestone billings on product sales projects in the Middle East and Africa region. The increase in current contract liabilities and decrease in long-term contract liabilities during the nine months ended September 30, 2020 was primarily driven by the change in the remaining term of a contract operation services contract in the Latin America 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 have generally similar collectability risk characteristics, although larger customers may have lower risk than smaller independent customers. Primarily as a result of the expected impact of COVID-19 on our customers, in the nine months ended September 30, 2020, we recorded an additional allowance for doubtful accounts of approximately $4.5 million. The allowance for doubtful accounts as of September 30, 2020 and changes for the nine months then ended are as follows (in thousands): Balance at December 31, 2019 $ 6,019 Current period provision for expected credit losses 4,454 Balance at September 30, 2020 $ 10,473 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 3 - 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 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 is non-core to our strategy going forward and during the third quarter of 2020, we entered into an agreement to sell the business which closed on November 2, 2020. During the third quarter of 2020, this business met the held for sale criteria and is also 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 September 30, 2020 Three Months Ended September 30, 2019 Belleli EPC US Compression Total Belleli EPC US Compression Other disco Total Revenue $ 1,100 $ 27,434 $ 28,534 $ 31 $ 116,481 $ — $ 116,512 Cost of sales (excluding depreciation and amortization expense) 84 25,371 25,455 1,204 104,824 — 106,028 Selling, general and administrative (70) 1,387 1,317 231 5,394 114 5,739 Depreciation and amortization — 443 443 — 1,027 — 1,027 Restructuring and other charges — 2,336 2,336 — 537 — 537 Other (income) expense, net (52) — (52) 28 — — 28 Provision for income taxes 33 — 33 — — — — Income (loss) from discontinued operations, net of tax $ 1,105 $ (2,103) $ (998) $ (1,432) $ 4,699 $ (114) $ 3,153 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Belleli EPC US Compression Total Belleli EPC US Compression Other disco Total Revenue $ 1,224 $ 117,565 $ 118,789 $ 265 $ 426,431 $ — $ 426,696 Cost of sales (excluding depreciation and amortization expense) 268 109,316 109,584 (395) 386,079 — 385,684 Selling, general and administrative 144 8,743 8,887 921 17,888 182 18,991 Depreciation and amortization — 1,767 1,767 — 3,219 — 3,219 Impairments — 6,512 6,512 — — — — Restructuring and other charges — 7,889 7,889 — 1,624 — 1,624 Other income, net (3) — (3) (304) — — (304) Benefit from income taxes (14) — (14) (6,213) — — (6,213) Income (loss) from discontinued operations, net of tax $ 829 $ (16,662) $ (15,833) $ 6,256 $ 17,621 $ (182) $ 23,695 The following table summarizes the balance sheet data for discontinued operations (in thousands): September 30, 2020 December 31, 2019 Belleli EPC US Compression Total Belleli EPC US Compression Total Accounts receivable $ 1,891 $ 8,492 $ 10,383 $ 3,990 $ 23,179 $ 27,169 Inventory — 15,213 15,213 — 24,180 24,180 Contract assets 114 2,304 2,418 46 9,540 9,586 Other current assets — 477 477 296 474 770 Total current assets associated with discontinued operations 2,005 26,486 28,491 4,332 57,373 61,705 Property, Plant, and Equipment — 18,438 18,438 — 20,216 20,216 Intangible and other assets, net 1,994 445 2,439 2,970 556 3,526 Total assets associated with discontinued operations $ 3,999 $ 45,369 $ 49,368 $ 7,302 $ 78,145 $ 85,447 Accounts payable $ 295 $ 21,908 $ 22,203 $ 1,503 $ 40,580 $ 42,083 Accrued liabilities 4,313 8,656 12,969 5,959 11,889 17,848 Contract liabilities 956 1,227 2,183 2,536 16,159 18,695 Total current liabilities associated with discontinued operations 5,564 31,791 37,355 9,998 68,628 78,626 Other long-term liabilities 994 1,305 2,299 758 1,283 2,041 Total liabilities associated with discontinued operations $ 6,558 $ 33,096 $ 39,654 $ 10,756 $ 69,911 $ 80,667 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4 - Inventory Inventory consisted of the following amounts (in thousands): September 30, 2020 December 31, 2019 Parts and supplies $ 66,809 $ 76,398 Work in progress 44,470 39,719 Finished goods 3,241 3,241 Inventory $ 114,520 $ 119,358 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 5 - Property, Plant and Equipment, Net Property, plant and equipment, net, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Compression equipment, processing facilities and other fleet assets $ 1,580,483 $ 1,607,769 Land and buildings 50,488 51,062 Transportation and shop equipment 54,219 57,469 Computer software 51,004 50,091 Other 41,501 37,716 1,777,695 1,804,107 Accumulated depreciation (1,007,274) (979,913) Property, plant and equipment, net $ 770,421 $ 824,194 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 - Debt Debt consisted of the following (in thousands): September 30, 2020 December 31, 2019 Revolving credit facility due October 2023 $ 170,000 $ 74,000 8.125% senior notes due May 2025 351,000 375,000 Other debt 13 132 Unamortized deferred financing costs of 8.125% senior notes (4,416) (5,413) Total debt 516,597 443,719 Less: Amounts due within one year (1) (13) (132) Long-term debt $ 516,584 $ 443,587 (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 “Credit Agreement”) consisting of a $700.0 million revolving credit facility expiring in October 2023. As of September 30, 2020, we had $170.0 million in outstanding borrowings and $11.8 million in outstanding letters of credit under our revolving credit facility. At September 30, 2020, taking into account guarantees through letters of credit, we had undrawn capacity of $518.2 million under our revolving credit facility. Our Credit Agreement limits our Total Debt to EBITDA ratio (as defined in the 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, $145.9 million of the $518.2 million of undrawn capacity under our revolving credit facility was available for additional borrowings as of September 30, 2020. 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”). 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. During the nine months ended September 30, 2020, we purchased and retired $24.0 million principal amount of our 2017 Notes for $20.6 million (including $0.3 million of accrued interest) resulting in a gain on extinguishment of debt of $3.4 million. The gain was calculated as the difference between the repurchase price and the carrying amount of the 2017 Notes, partially offset by $0.2 million in related deferred financing costs. The gain on extinguishment of debt is included as a separate item in our statements of operations. During October 2020, we purchased and retired an additional $1.0 million of our 2017 Notes for $0.9 million including accrued interest. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 - 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 The following table presents our assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, with pricing levels as of the date of valuation (in thousands): September 30, 2020 December 31, 2019 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Foreign currency derivatives assets $ — $ 8 $ — N/A N/A N/A 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 September 30, 2020, we were a party to forward currency exchange contracts to mitigate exposures to the Argentine Peso and Indonesian Rupiah with a total notional value of $13.5 million. These contracts expire at varying dates through December 2020. 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 statements of operations. Our estimate of the fair value of foreign currency derivatives as of September 30, 2020 was determined using quoted forward exchange rates in active markets at September 30, 2020. Foreign currency derivative assets are included in other current assets in our balance sheets. Nonrecurring Fair Value Measurements The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2020 and 2019, with pricing levels as of the date of valuation (in thousands): Nine months ended September 30, 2020 Nine months ended September 30, 2019 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ — $ — $ — $ — Impaired assets- assets held for sale (2) — — — — — 2,142 Long-term note receivable (3) — — 11,165 — — 15,104 (1) Our estimate of the fair value of the impaired long-lived assets as of September 30, 2020 were primarily based on the expected proceeds to be received from the customer. (2) Our estimated fair value of the impaired assets held for sale during the nine months ended September 30, 2019 was based on the expected proceeds from the sale of the assets. (3) Our estimate of the fair value of a note receivable was discounted based on a settlement period of eight years and a discount rate of 6.2%. The undiscounted value of the note receivable, including interest, as of September 30, 2020 was $15.7 million. Financial Instruments Our financial instruments consists of cash, restricted cash, receivables, payables and debt. At September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019, the carrying amount of the 2017 Notes, excluding unamortized deferred financing costs, of $351.0 million and $375.0 million was estimated to have a fair value of $300.0 million and $371.0 million, respectively. Due to the variable rate nature of our revolving credit facility, the carrying value as of September 30, 2020 and December 31, 2019 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 | 9 Months Ended |
Sep. 30, 2020 | |
Asset Impairment Charges [Abstract] | |
Impairments | Note 8 - 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, including the removal of compressor units from our active fleet, indicate that the carrying amount of an asset may not be recoverable. During the third quarter of 2020, we impaired certain assets in Argentina due to the termination of a contract operations project where it was not cost effective to move the assets and try to utilize them with a different customer. As a result, we removed them from the fleet and recorded an impairment of $1.7 million to write-down these assets to their approximate fair values for the three and nine months ended September 30, 2020. |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Note 9 - 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. We incurred restructuring and other charges associated with these activities of $0.2 million and $1.3 million for the three months ended September 30, 2020 and 2019, respectively, and $3.6 million and $6.1 million for the nine months ended September 30, 2020 and 2019, 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 is expected to be completed in the first half of 2021 and we expect to settle these charges within the next twelve months in cash. At this time, we cannot currently estimate the total restructuring costs that will be incurred as a result of this cost reduction plan. In the second quarter of 2018, we initiated a relocation plan in the Latin American region to better align our contract operations business with our customers. As a result of this plan, during the nine months ended September 30, 2019, we incurred restructuring and other charges of $0.2 million related to relocation costs. The charges incurred in conjunction with this relocation plan are included in restructuring and other charges in our statements of operations. In the second quarter of 2019, we completed restructuring activities related to the relocation plan. The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the nine months ended September 30, 2020 and 2019 (in thousands): Cost Relocation Plan Total Beginning balance at January 1, 2019 $ — $ 309 $ 309 Additions for costs expensed 6,049 293 6,342 Reductions for payments (2,873) (602) (3,475) Ending balance at September 30, 2019 $ 3,176 $ — $ 3,176 Beginning balance at January 1, 2020 $ 2,281 $ — $ 2,281 Additions for costs expensed, net 3,550 — 3,550 Reductions for payments (3,791) — (3,791) Foreign exchange impact (393) — (393) Ending balance at September 30, 2020 $ 1,647 $ — $ 1,647 The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Employee termination benefits $ 238 $ 1,257 $ 986 $ 6,098 Consulting fees — — 2,564 — Relocation costs — — — 244 Total restructuring and other charges $ 238 $ 1,257 $ 3,550 $ 6,342 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 second quarter of 2019 (in thousands): Total Employee termination benefits $ 6,243 Consulting fees 3,205 Total restructuring and other charges $ 9,448 |
Provision for Income Taxes
Provision for Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 10 - 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 21.0% and our effective tax rate of (52.3)% for the three months ended September 30, 2020: (i) a (49.9)% negative impact resulting from unrecognized tax benefits under FASB’s Interpretation No. 48 of Financial Accounting Standard 109 (“FIN 48”), (ii) a (22.4)% negative impact resulting from foreign currency devaluations in Argentina, (iii) a (29.1)% negative impact resulting from foreign taxes in excess of the U.S. tax rate and other rate drivers, and (iv) a 31.7% positive impact resulting from a release 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 (57.3)% for the nine months ended September 30, 2020: (i) a (27.7)% negative impact resulting primarily from rate differences between U.S. and foreign jurisdictions including foreign withholding taxes, (ii) a (26.7)% negative impact resulting from unrecognized tax benefits under FIN 48, (iii) a (15.6)% negative impact resulting from foreign currency devaluations in Argentina, and (iv) a (2.7)% negative impact resulting from the recording of valuation allowances against U.S. deferred tax assets. Our effective tax rate decreased for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 primarily due to a decrease in valuation allowances recorded in the U.S., a decrease in foreign withholding tax, an increase in the FIN 48 reserve and a decrease in tax related to foreign exchange movement in Argentina. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11 - 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 nine months ended September 30, 2019, we repurchased 3,054,338 shares of our common stock for $38.9 million in connection with our share repurchase program. During the nine months ended September 30, 2020, we did not repurchase any shares under this program. As of September 30, 2020, the remaining authorized repurchase amount under the share repurchase program was $57.7 million. Additionally, treasury stock purchased during the nine months ended September 30, 2020 and 2019 included shares withheld to satisfy employees’ tax withholding obligations in connection with vesting of restricted stock awards. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 12 - Stock-Based Compensation Stock Options There were no stock options granted during the nine months ended September 30, 2020 and 2019. 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 one third per year on each of the first three anniversaries of the grant date. Certain grants of restricted stock vest on the third anniversary of the grant date and certain grants of performance units vest on the second anniversary of the grant date. The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the nine months ended September 30, 2020. Equity Awards Liability Awards Shares Weighted Average Shares Weighted Average Non-vested awards, January 1, 2020 842 $ 22.79 318 $ 17.01 Granted 167 6.91 1,182 8.54 Vested (440) 20.59 (80) 26.24 Cancelled (242) 28.07 (207) 9.90 Non-vested awards, September 30, 2020 327 13.73 1,213 9.36 As of September 30, 2020, we estimate $9.4 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 1.5 years. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 13 - 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. The following table presents a reconciliation of basic and diluted net loss per common share for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator for basic and diluted net loss per common share: Loss from continuing operations $ (16,723) $ (12,994) $ (52,081) $ (46,235) Income (loss) from discontinued operations, net of tax (998) 3,153 (15,833) 23,695 Less: Net income attributable to participating securities — — — — Net loss — used in basic and diluted net loss per common share $ (17,721) $ (9,841) $ (67,914) $ (22,540) Weighted average common shares outstanding including participating securities 33,152 34,523 33,147 35,623 Less: Weighted average participating securities outstanding (346) (740) (405) (784) Weighted average common shares outstanding — used in basic net loss per common share 32,806 33,783 32,742 34,839 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 loss per common share 32,806 33,783 32,742 34,839 Net loss per common share: Basic and diluted $ (0.54) $ (0.29) $ (2.07) $ (0.65) * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. The following table shows the potential shares of common stock issuable for the three and nine months ended September 30, 2020 and 2019 that were excluded from computing diluted net loss per common share as their inclusion would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value 30 69 39 70 Net dilutive potential common shares issuable 30 69 39 70 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 - Commitments and Contingencies Contingencies 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 September 30, 2020 and December 31, 2019, we had accrued $3.5 million and $3.7 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 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. Indemnifications On November 3, 2015, Archrock, Inc. (named Exterran Holdings, Inc. prior to November 3, 2015) (“Archrock”) completed the spin-off (the ‘‘Spin-off”) of its international contract operations, international aftermarket services and global fabrication businesses into an independent, publicly traded company named Exterran Corporation. In conjunction with, and effective as of the completion of, the Spin-off, we entered into the separation and distribution agreement with Archrock, which governs, among other things, the treatment between Archrock and us relating to certain aspects of indemnification, insurance, confidentiality and cooperation. Generally, the separation and distribution agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of Archrock’s business with Archrock. Pursuant to the agreement, we and Archrock will generally release the other party from all claims arising prior to the Spin-off that relate to the other party’s business, subject to certain exceptions. Additionally, in conjunction with, and effective as of the completion of, the Spin-off, we entered into the tax matters agreement with Archrock. Under the tax matters agreement and subject to certain exceptions, we are generally liable for, and indemnify Archrock against, taxes attributable to our business, and Archrock is generally liable for, and indemnify us against, all taxes attributable to its business. We are generally liable for, and indemnify Archrock against, 50% of certain taxes that are not clearly attributable to our business or Archrock’s business. Any payment made by us to Archrock, or by Archrock to us, is treated by all parties for tax purposes as a nontaxable distribution or capital contribution, respectively, made immediately prior to the Spin-off. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 15 - 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 compression equipment, crude oil and natural gas production and process 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 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 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 nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Aftermarket Services Product Sales (2) Reportable September 30, 2020: Revenue $ 81,679 $ 30,435 $ 57,397 $ 169,511 Gross margin (1) 57,131 7,300 3,134 67,565 September 30, 2019: Revenue $ 96,261 $ 34,893 $ 54,796 $ 185,950 Gross margin (1) 61,905 8,814 6,609 77,328 Nine Months Ended Contract Operations Aftermarket Services Product Sales (2) Reportable Segments Total September 30, 2020: Revenue $ 254,412 $ 83,337 $ 123,613 $ 461,362 Gross margin (1) 174,658 20,001 (1,968) 192,691 September 30, 2019: Revenue $ 271,645 $ 92,308 $ 254,367 $ 618,320 Gross margin (1) 178,362 24,494 37,294 240,150 (1) 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 loss before income taxes to total gross margin (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loss before income taxes $ (10,978) $ (12,517) $ (33,111) $ (26,026) Selling, general and administrative 29,959 32,308 95,049 108,902 Depreciation and amortization 36,630 41,106 100,887 113,450 Impairments 1,695 2,970 1,695 8,889 Restructuring and other charges 238 1,257 3,550 6,342 Interest expense 9,623 10,103 29,214 28,194 Gain on extinguishment of debt (780) — (3,424) — Other (income) expense, net 1,178 2,101 (1,169) 399 Total gross margin $ 67,565 $ 77,328 $ 192,691 $ 240,150 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
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 United States of America (“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, 2019. 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. Certain reclassifications have been made for the prior year period to conform to the current year presentation. We refer to the condensed 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 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. On January 1, 2020, we adopted this update using a modified retrospective approach. The adoption of this update was immaterial to our financial statements. For more information regarding the allowance for doubtful accounts, see Note . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. On January 1, 2020, we adopted this update. The adoption of this update was immaterial to our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update simplifies the accounting for income taxes and is effective for annual and interim periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the potential impact of the update on our financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Revenue by Products and Services 2020 2019 2020 2019 Contract Operations Segment: Contract operations services (1) $ 81,679 $ 96,261 $ 254,412 $ 271,645 Aftermarket Services Segment: Operation and maintenance services (1) $ 12,966 $ 14,069 $ 38,184 $ 40,844 Part sales (2) 11,490 10,208 31,999 32,197 Other services (1) 5,979 10,616 13,154 19,267 Total aftermarket services $ 30,435 $ 34,893 $ 83,337 $ 92,308 Product Sales Segment (3) : Compression equipment (1) $ 40,300 $ 4,764 $ 73,654 $ 10,516 Processing and treating equipment (1) 14,220 47,843 34,836 236,926 Production equipment (2) — — 578 2,458 Other product sales (1) (2) 2,877 2,189 14,545 4,467 Total product sales revenues $ 57,397 $ 54,796 $ 123,613 $ 254,367 Total revenues $ 169,511 $ 185,950 $ 461,362 $ 618,320 (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 September 30, Nine Months Ended September 30, Revenue by Geographical Regions 2020 2019 2020 2019 North America $ 13,364 $ 22,007 $ 31,694 $ 95,813 Latin America 60,302 85,928 195,451 240,576 Middle East and Africa 69,682 66,601 177,768 249,861 Asia Pacific 26,163 11,414 56,449 32,070 Total revenues $ 169,511 $ 185,950 $ 461,362 $ 618,320 |
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 September 30, 2020 (in thousands): Contract Operations Segment Product Sales Segment Remainder of 2020 $ 75,935 $ 46,284 2021 283,571 177,333 2022 224,186 200,041 2023 165,739 34,681 2024 144,456 9,000 Thereafter 314,252 29,315 Total backlog $ 1,208,139 $ 496,654 |
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): September 30, 2020 December 31, 2019 Accounts receivables, net $ 183,620 $ 179,158 Contract assets and contract liabilities: Current contract assets 49,092 36,997 Long-term contract assets 7,701 16,280 Current contract liabilities 105,736 66,695 Long-term contract liabilities 93,643 156,262 |
Allowance for Doubtful Accounts | The allowance for doubtful accounts as of September 30, 2020 and changes for the nine months then ended are as follows (in thousands): Balance at December 31, 2019 $ 6,019 Current period provision for expected credit losses 4,454 Balance at September 30, 2020 $ 10,473 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 Three Months Ended September 30, 2019 Belleli EPC US Compression Total Belleli EPC US Compression Other disco Total Revenue $ 1,100 $ 27,434 $ 28,534 $ 31 $ 116,481 $ — $ 116,512 Cost of sales (excluding depreciation and amortization expense) 84 25,371 25,455 1,204 104,824 — 106,028 Selling, general and administrative (70) 1,387 1,317 231 5,394 114 5,739 Depreciation and amortization — 443 443 — 1,027 — 1,027 Restructuring and other charges — 2,336 2,336 — 537 — 537 Other (income) expense, net (52) — (52) 28 — — 28 Provision for income taxes 33 — 33 — — — — Income (loss) from discontinued operations, net of tax $ 1,105 $ (2,103) $ (998) $ (1,432) $ 4,699 $ (114) $ 3,153 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Belleli EPC US Compression Total Belleli EPC US Compression Other disco Total Revenue $ 1,224 $ 117,565 $ 118,789 $ 265 $ 426,431 $ — $ 426,696 Cost of sales (excluding depreciation and amortization expense) 268 109,316 109,584 (395) 386,079 — 385,684 Selling, general and administrative 144 8,743 8,887 921 17,888 182 18,991 Depreciation and amortization — 1,767 1,767 — 3,219 — 3,219 Impairments — 6,512 6,512 — — — — Restructuring and other charges — 7,889 7,889 — 1,624 — 1,624 Other income, net (3) — (3) (304) — — (304) Benefit from income taxes (14) — (14) (6,213) — — (6,213) Income (loss) from discontinued operations, net of tax $ 829 $ (16,662) $ (15,833) $ 6,256 $ 17,621 $ (182) $ 23,695 The following table summarizes the balance sheet data for discontinued operations (in thousands): September 30, 2020 December 31, 2019 Belleli EPC US Compression Total Belleli EPC US Compression Total Accounts receivable $ 1,891 $ 8,492 $ 10,383 $ 3,990 $ 23,179 $ 27,169 Inventory — 15,213 15,213 — 24,180 24,180 Contract assets 114 2,304 2,418 46 9,540 9,586 Other current assets — 477 477 296 474 770 Total current assets associated with discontinued operations 2,005 26,486 28,491 4,332 57,373 61,705 Property, Plant, and Equipment — 18,438 18,438 — 20,216 20,216 Intangible and other assets, net 1,994 445 2,439 2,970 556 3,526 Total assets associated with discontinued operations $ 3,999 $ 45,369 $ 49,368 $ 7,302 $ 78,145 $ 85,447 Accounts payable $ 295 $ 21,908 $ 22,203 $ 1,503 $ 40,580 $ 42,083 Accrued liabilities 4,313 8,656 12,969 5,959 11,889 17,848 Contract liabilities 956 1,227 2,183 2,536 16,159 18,695 Total current liabilities associated with discontinued operations 5,564 31,791 37,355 9,998 68,628 78,626 Other long-term liabilities 994 1,305 2,299 758 1,283 2,041 Total liabilities associated with discontinued operations $ 6,558 $ 33,096 $ 39,654 $ 10,756 $ 69,911 $ 80,667 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following amounts (in thousands): September 30, 2020 December 31, 2019 Parts and supplies $ 66,809 $ 76,398 Work in progress 44,470 39,719 Finished goods 3,241 3,241 Inventory $ 114,520 $ 119,358 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Compression equipment, processing facilities and other fleet assets $ 1,580,483 $ 1,607,769 Land and buildings 50,488 51,062 Transportation and shop equipment 54,219 57,469 Computer software 51,004 50,091 Other 41,501 37,716 1,777,695 1,804,107 Accumulated depreciation (1,007,274) (979,913) Property, plant and equipment, net $ 770,421 $ 824,194 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): September 30, 2020 December 31, 2019 Revolving credit facility due October 2023 $ 170,000 $ 74,000 8.125% senior notes due May 2025 351,000 375,000 Other debt 13 132 Unamortized deferred financing costs of 8.125% senior notes (4,416) (5,413) Total debt 516,597 443,719 Less: Amounts due within one year (1) (13) (132) Long-term debt $ 516,584 $ 443,587 (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) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, with pricing levels as of the date of valuation (in thousands): September 30, 2020 December 31, 2019 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Foreign currency derivatives assets $ — $ 8 $ — N/A N/A N/A |
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 during the nine months ended September 30, 2020 and 2019, with pricing levels as of the date of valuation (in thousands): Nine months ended September 30, 2020 Nine months ended September 30, 2019 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ — $ — $ — $ — Impaired assets- assets held for sale (2) — — — — — 2,142 Long-term note receivable (3) — — 11,165 — — 15,104 (1) Our estimate of the fair value of the impaired long-lived assets as of September 30, 2020 were primarily based on the expected proceeds to be received from the customer. (2) Our estimated fair value of the impaired assets held for sale during the nine months ended September 30, 2019 was based on the expected proceeds from the sale of the assets. (3) Our estimate of the fair value of a note receivable was discounted based on a settlement period of eight years and a discount rate of 6.2%. The undiscounted value of the note receivable, including interest, as of September 30, 2020 was $15.7 million. |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020 and 2019 (in thousands): Cost Relocation Plan Total Beginning balance at January 1, 2019 $ — $ 309 $ 309 Additions for costs expensed 6,049 293 6,342 Reductions for payments (2,873) (602) (3,475) Ending balance at September 30, 2019 $ 3,176 $ — $ 3,176 Beginning balance at January 1, 2020 $ 2,281 $ — $ 2,281 Additions for costs expensed, net 3,550 — 3,550 Reductions for payments (3,791) — (3,791) Foreign exchange impact (393) — (393) Ending balance at September 30, 2020 $ 1,647 $ — $ 1,647 |
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 nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Employee termination benefits $ 238 $ 1,257 $ 986 $ 6,098 Consulting fees — — 2,564 — Relocation costs — — — 244 Total restructuring and other charges $ 238 $ 1,257 $ 3,550 $ 6,342 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 second quarter of 2019 (in thousands): Total Employee termination benefits $ 6,243 Consulting fees 3,205 Total restructuring and other charges $ 9,448 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020. Equity Awards Liability Awards Shares Weighted Average Shares Weighted Average Non-vested awards, January 1, 2020 842 $ 22.79 318 $ 17.01 Granted 167 6.91 1,182 8.54 Vested (440) 20.59 (80) 26.24 Cancelled (242) 28.07 (207) 9.90 Non-vested awards, September 30, 2020 327 13.73 1,213 9.36 |
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 nine months ended September 30, 2020. Equity Awards Liability Awards Shares Weighted Average Shares Weighted Average Non-vested awards, January 1, 2020 842 $ 22.79 318 $ 17.01 Granted 167 6.91 1,182 8.54 Vested (440) 20.59 (80) 26.24 Cancelled (242) 28.07 (207) 9.90 Non-vested awards, September 30, 2020 327 13.73 1,213 9.36 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share | The following table presents a reconciliation of basic and diluted net loss per common share for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator for basic and diluted net loss per common share: Loss from continuing operations $ (16,723) $ (12,994) $ (52,081) $ (46,235) Income (loss) from discontinued operations, net of tax (998) 3,153 (15,833) 23,695 Less: Net income attributable to participating securities — — — — Net loss — used in basic and diluted net loss per common share $ (17,721) $ (9,841) $ (67,914) $ (22,540) Weighted average common shares outstanding including participating securities 33,152 34,523 33,147 35,623 Less: Weighted average participating securities outstanding (346) (740) (405) (784) Weighted average common shares outstanding — used in basic net loss per common share 32,806 33,783 32,742 34,839 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 loss per common share 32,806 33,783 32,742 34,839 Net loss per common share: Basic and diluted $ (0.54) $ (0.29) $ (2.07) $ (0.65) * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. |
Schedule of Antidilutive Shares Excluded from Computation of Net Income Per Common Share | The following table shows the potential shares of common stock issuable for the three and nine months ended September 30, 2020 and 2019 that were excluded from computing diluted net loss per common share as their inclusion would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value 30 69 39 70 Net dilutive potential common shares issuable 30 69 39 70 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Aftermarket Services Product Sales (2) Reportable September 30, 2020: Revenue $ 81,679 $ 30,435 $ 57,397 $ 169,511 Gross margin (1) 57,131 7,300 3,134 67,565 September 30, 2019: Revenue $ 96,261 $ 34,893 $ 54,796 $ 185,950 Gross margin (1) 61,905 8,814 6,609 77,328 Nine Months Ended Contract Operations Aftermarket Services Product Sales (2) Reportable Segments Total September 30, 2020: Revenue $ 254,412 $ 83,337 $ 123,613 $ 461,362 Gross margin (1) 174,658 20,001 (1,968) 192,691 September 30, 2019: Revenue $ 271,645 $ 92,308 $ 254,367 $ 618,320 Gross margin (1) 178,362 24,494 37,294 240,150 (1) 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 Loss Before Income Taxes to Total Gross Margin | The following table reconciles loss before income taxes to total gross margin (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loss before income taxes $ (10,978) $ (12,517) $ (33,111) $ (26,026) Selling, general and administrative 29,959 32,308 95,049 108,902 Depreciation and amortization 36,630 41,106 100,887 113,450 Impairments 1,695 2,970 1,695 8,889 Restructuring and other charges 238 1,257 3,550 6,342 Interest expense 9,623 10,103 29,214 28,194 Gain on extinguishment of debt (780) — (3,424) — Other (income) expense, net 1,178 2,101 (1,169) 399 Total gross margin $ 67,565 $ 77,328 $ 192,691 $ 240,150 |
Description of Business and B_3
Description of Business and Basis of Presentation - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020business_line | |
Accounting Policies [Abstract] | |
Number of business lines | 3 |
Revenue - Disaggregation by Pro
Revenue - Disaggregation by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 169,511 | $ 185,950 | $ 461,362 | $ 618,320 |
Contract operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 81,679 | 96,261 | 254,412 | 271,645 |
Contract operations | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 81,679 | 96,261 | 254,412 | 271,645 |
Aftermarket services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30,435 | 34,893 | 83,337 | 92,308 |
Aftermarket services | Operation and maintenance services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,966 | 14,069 | 38,184 | 40,844 |
Aftermarket services | Part sales | Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,490 | 10,208 | 31,999 | 32,197 |
Aftermarket services | Other services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,979 | 10,616 | 13,154 | 19,267 |
Product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57,397 | 54,796 | 123,613 | 254,367 |
Product sales | Compression equipment | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 40,300 | 4,764 | 73,654 | 10,516 |
Product sales | Processing and treating equipment | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,220 | 47,843 | 34,836 | 236,926 |
Product sales | Production equipment | Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 578 | 2,458 |
Product sales | Other product sales | Transferred over time and transferred at point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,877 | $ 2,189 | $ 14,545 | $ 4,467 |
Revenue - Disaggregation by Geo
Revenue - Disaggregation by Geographical Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 169,511 | $ 185,950 | $ 461,362 | $ 618,320 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,364 | 22,007 | 31,694 | 95,813 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60,302 | 85,928 | 195,451 | 240,576 |
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 69,682 | 66,601 | 177,768 | 249,861 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 26,163 | $ 11,414 | $ 56,449 | $ 32,070 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Contract operations | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 1,208,139 |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 75,935 |
Expected timing of satisfaction, period | 3 months |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 283,571 |
Expected timing of satisfaction, period | 1 year |
Contract operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 224,186 |
Expected timing of satisfaction, period | 1 year |
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 | $ 165,739 |
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 | $ 144,456 |
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 | $ 314,252 |
Expected timing of satisfaction, period | |
Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 496,654 |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 46,284 |
Expected timing of satisfaction, period | 3 months |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 177,333 |
Expected timing of satisfaction, period | 1 year |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 200,041 |
Expected timing of satisfaction, period | 1 year |
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 | $ 34,681 |
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 | $ 9,000 |
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 | $ 29,315 |
Expected timing of satisfaction, period |
Revenue - Expected Timing of Re
Revenue - Expected Timing of Revenue Recognition (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Operating lease income | $ 26,000 |
Revenue recognized from contract operations services including revenue deferred in previous periods | 25,900 |
Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | 158,000 |
Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | 496,654 |
Performance obligation satisfied in previous periods | 84,100 |
Performance obligation satisfied in previous periods, included in billings in excess of costs | 28,600 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 9,000 |
Expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 46,284 |
Expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 33,000 |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 177,333 |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 44,000 |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 200,041 |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 44,000 |
Expected timing of satisfaction, period | 1 year |
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 revenue recognition from unsatisfied performance obligations | $ 34,681 |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Operating lease contracts | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 28,000 |
Expected timing of satisfaction, period | 1 year |
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 revenue recognition from unsatisfied performance obligations | $ 9,000 |
Expected timing of satisfaction, period | 1 year |
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 revenue recognition from unsatisfied performance obligations | $ 29,315 |
Expected timing of satisfaction, period | |
Financing | Product sales | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 43,000 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivables, net | $ 183,620 | $ 179,158 |
Contract assets and contract liabilities: | ||
Current contract assets | 49,092 | 36,997 |
Long-term contract assets | 7,701 | 16,280 |
Current contract liabilities | 105,736 | 66,695 |
Long-term contract liabilities | $ 93,643 | $ 156,262 |
Revenue - Allowance for Doubtfu
Revenue - Allowance for Doubtful Accounts (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 6,019 |
Current period provision for expected credit losses | 4,454 |
Ending balance | $ 10,473 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairments | $ 1,695 | $ 2,970 | $ 1,695 | $ 8,889 |
Income (loss) from discontinued operations, net of tax | (998) | 3,153 | (15,833) | 23,695 |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 28,534 | 116,512 | 118,789 | 426,696 |
Cost of sales (excluding depreciation and amortization expense) | 25,455 | 106,028 | 109,584 | 385,684 |
Selling, general and administrative | 1,317 | 5,739 | 8,887 | 18,991 |
Depreciation and amortization | 443 | 1,027 | 1,767 | 3,219 |
Impairments | 6,512 | 0 | ||
Restructuring and other charges | 2,336 | 537 | 7,889 | 1,624 |
Other (income) expense, net | (52) | 28 | (3) | (304) |
Provision for (benefit from) income taxes | 33 | 0 | (14) | (6,213) |
Income (loss) from discontinued operations, net of tax | (998) | 3,153 | (15,833) | 23,695 |
Belleli EPC | Exit of Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 1,100 | 31 | 1,224 | 265 |
Cost of sales (excluding depreciation and amortization expense) | 84 | 1,204 | 268 | (395) |
Selling, general and administrative | (70) | 231 | 144 | 921 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairments | 0 | 0 | ||
Restructuring and other charges | 0 | 0 | 0 | 0 |
Other (income) expense, net | (52) | 28 | (3) | (304) |
Provision for (benefit from) income taxes | 33 | 0 | (14) | (6,213) |
Income (loss) from discontinued operations, net of tax | 1,105 | (1,432) | 829 | 6,256 |
US Compression | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 27,434 | 116,481 | 117,565 | 426,431 |
Cost of sales (excluding depreciation and amortization expense) | 25,371 | 104,824 | 109,316 | 386,079 |
Selling, general and administrative | 1,387 | 5,394 | 8,743 | 17,888 |
Depreciation and amortization | 443 | 1,027 | 1,767 | 3,219 |
Impairments | 6,512 | 0 | ||
Restructuring and other charges | 2,336 | 537 | 7,889 | 1,624 |
Other (income) expense, net | 0 | 0 | 0 | 0 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations, net of tax | $ (2,103) | 4,699 | $ (16,662) | 17,621 |
Other disco | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | ||
Cost of sales (excluding depreciation and amortization expense) | 0 | 0 | ||
Selling, general and administrative | 114 | 182 | ||
Depreciation and amortization | 0 | 0 | ||
Impairments | 0 | |||
Restructuring and other charges | 0 | 0 | ||
Other (income) expense, net | 0 | 0 | ||
Provision for (benefit from) income taxes | 0 | 0 | ||
Income (loss) from discontinued operations, net of tax | $ (114) | $ (182) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Balance Sheet Data (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contract assets | $ 49,092 | $ 36,997 |
Total current assets associated with discontinued operations | 28,491 | 61,705 |
Total current liabilities associated with discontinued operations | 37,355 | 78,626 |
Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 10,383 | 27,169 |
Inventory | 15,213 | 24,180 |
Contract assets | 2,418 | 9,586 |
Other current assets | 477 | 770 |
Total current assets associated with discontinued operations | 28,491 | 61,705 |
Property, Plant, and Equipment | 18,438 | 20,216 |
Intangible and other assets, net | 2,439 | 3,526 |
Total assets associated with discontinued operations | 49,368 | 85,447 |
Accounts payable | 22,203 | 42,083 |
Accrued liabilities | 12,969 | 17,848 |
Contract liabilities | 2,183 | 18,695 |
Total current liabilities associated with discontinued operations | 37,355 | 78,626 |
Other long-term liabilities | 2,299 | 2,041 |
Total liabilities associated with discontinued operations | 39,654 | 80,667 |
Belleli EPC | Exit of Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 1,891 | 3,990 |
Inventory | 0 | 0 |
Contract assets | 114 | 46 |
Other current assets | 0 | 296 |
Total current assets associated with discontinued operations | 2,005 | 4,332 |
Property, Plant, and Equipment | 0 | 0 |
Intangible and other assets, net | 1,994 | 2,970 |
Total assets associated with discontinued operations | 3,999 | 7,302 |
Accounts payable | 295 | 1,503 |
Accrued liabilities | 4,313 | 5,959 |
Contract liabilities | 956 | 2,536 |
Total current liabilities associated with discontinued operations | 5,564 | 9,998 |
Other long-term liabilities | 994 | 758 |
Total liabilities associated with discontinued operations | 6,558 | 10,756 |
US Compression | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 8,492 | 23,179 |
Inventory | 15,213 | 24,180 |
Contract assets | 2,304 | 9,540 |
Other current assets | 477 | 474 |
Total current assets associated with discontinued operations | 26,486 | 57,373 |
Property, Plant, and Equipment | 18,438 | 20,216 |
Intangible and other assets, net | 445 | 556 |
Total assets associated with discontinued operations | 45,369 | 78,145 |
Accounts payable | 21,908 | 40,580 |
Accrued liabilities | 8,656 | 11,889 |
Contract liabilities | 1,227 | 16,159 |
Total current liabilities associated with discontinued operations | 31,791 | 68,628 |
Other long-term liabilities | 1,305 | 1,283 |
Total liabilities associated with discontinued operations | $ 33,096 | $ 69,911 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Composition of Inventory net of reserves | ||
Parts and supplies | $ 66,809 | $ 76,398 |
Work in progress | 44,470 | 39,719 |
Finished goods | 3,241 | 3,241 |
Inventory | $ 114,520 | $ 119,358 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 1,777,695 | $ 1,804,107 |
Accumulated depreciation | (1,007,274) | (979,913) |
Property, plant and equipment, net | 770,421 | 824,194 |
Compression equipment, processing facilities and other fleet assets | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 1,580,483 | 1,607,769 |
Land and buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 50,488 | 51,062 |
Transportation and shop equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 54,219 | 57,469 |
Computer software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 51,004 | 50,091 |
Other | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 41,501 | $ 37,716 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 516,597 | $ 443,719 |
Less: Amounts due within one year | (13) | (132) |
Long-term debt | 516,584 | 443,587 |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 13 | 132 |
8.125% senior notes due May 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 351,000 | 375,000 |
Unamortized deferred financing costs of 8.125% senior notes | $ (4,416) | (5,413) |
Stated interest rate | 8.125% | |
Revolving credit facility due October 2023 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 170,000 | $ 74,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Narrative) (Details) - Revolving credit facility | Sep. 30, 2020USD ($) |
Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Borrowing capacity under restated credit agreement | $ 700,000,000 |
Credit Agreement | |
Debt Instrument [Line Items] | |
Outstanding borrowings | 170,000,000 |
Outstanding letters of credit | 11,800,000 |
Undrawn capacity under revolving credit facility | $ 518,200,000 |
Total debt to EBITDA ratio | 4.50 |
Undrawn capacity available | $ 145,900,000 |
Debt - 8.125% Senior Notes Due
Debt - 8.125% Senior Notes Due May 2025 (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 229,560,000 | $ 439,338,000 | ||||
Gain on extinguishment of debt | $ 780,000 | $ 0 | $ 3,424,000 | $ 0 | ||
Subsidiaries | Exterran Corporation | EESLP And EES Finance Corp. | ||||||
Debt Instrument [Line Items] | ||||||
Ownership percentage by parent | 100.00% | |||||
8.125% senior notes due May 2025 | Senior unsecured notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 8.125% | 8.125% | ||||
Amount of debt extinguished | $ 24,000,000 | |||||
Repayments of debt | 20,600,000 | |||||
Payments for accrued interest | 300,000 | |||||
Gain on extinguishment of debt | (3,400,000) | |||||
Write off of deferred financing cost | $ 200,000 | |||||
8.125% senior notes due May 2025 | Senior unsecured notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt extinguished | $ 1,000,000 | |||||
Repayments of debt | $ 900,000 | |||||
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 | $ 375,000,000 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Measurements (Details) - Fair Value, Recurring $ in Thousands | Sep. 30, 2020USD ($) |
(Level 1) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivatives assets | $ 0 |
(Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivatives assets | 8 |
(Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivatives assets | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Measurements (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Summary of assets and liabilities measured at fair value on nonrecurring basis | ||
Undiscounted value of note receivable Including Interest | $ 15,700 | |
Nonrecurring | Maturiy | ||
Summary of assets and liabilities measured at fair value on nonrecurring basis | ||
Settlement period | 8 years | |
Nonrecurring | Discount rate | ||
Summary of assets and liabilities measured at fair value on nonrecurring basis | ||
Discount rate | 0.062 | |
Nonrecurring | (Level 1) | ||
Summary of assets and liabilities measured at fair value on nonrecurring basis | ||
Impaired long-lived assets | $ 0 | $ 0 |
Impaired long-lived assets held for sale | 0 | 0 |
Long-term note receivable | 0 | 0 |
Nonrecurring | (Level 2) | ||
Summary of assets and liabilities measured at fair value on nonrecurring basis | ||
Impaired long-lived assets | 0 | 0 |
Impaired long-lived assets held for sale | 0 | 0 |
Long-term note receivable | 0 | 0 |
Nonrecurring | (Level 3) | ||
Summary of assets and liabilities measured at fair value on nonrecurring basis | ||
Impaired long-lived assets | 0 | 0 |
Impaired long-lived assets held for sale | 0 | 2,142 |
Long-term note receivable | $ 11,165 | $ 15,104 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Forward Currency Exchange | Designated as Hedging Instrument | ||
Summary of assets and liabilities measured at fair value | ||
Notional amount | $ 13.5 | |
Senior Notes | 8.125% senior notes due May 2025 | Reported Value Measurement | ||
Summary of assets and liabilities measured at fair value | ||
Fair value of notes | 351 | $ 375 |
Senior Notes | 8.125% senior notes due May 2025 | Estimate of Fair Value Measurement | ||
Summary of assets and liabilities measured at fair value | ||
Fair value of notes | $ 300 | $ 371 |
Impairments (Details)
Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Asset Impairment Charges [Abstract] | ||||
Impairments | $ 1,695 | $ 2,970 | $ 1,695 | $ 8,889 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 238 | $ 1,257 | $ 3,550 | $ 6,342 |
Cost Reduction Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 200 | $ 1,300 | $ 3,600 | 6,100 |
Relocation Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 200 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Summary of Charges to Accrued Liability Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 2,281 | $ 309 | ||
Additions for costs expensed, net | 3,550 | 6,342 | ||
Reductions for payments | (3,791) | (3,475) | ||
Foreign exchange impact | (393) | |||
Ending balance | $ 1,647 | $ 3,176 | 1,647 | 3,176 |
Restructuring and other charges | 238 | 1,257 | 3,550 | 6,342 |
Restructuring and other charges incurred to date | 9,448 | 9,448 | ||
Employee termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 238 | 1,257 | 986 | 6,098 |
Restructuring and other charges incurred to date | 6,243 | 6,243 | ||
Consulting fees | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 0 | 0 | 2,564 | 0 |
Restructuring and other charges incurred to date | 3,205 | 3,205 | ||
Relocation costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 0 | 0 | 0 | 244 |
Cost Reduction Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 2,281 | 0 | ||
Additions for costs expensed, net | 3,550 | 6,049 | ||
Reductions for payments | (3,791) | (2,873) | ||
Foreign exchange impact | (393) | |||
Ending balance | 1,647 | 3,176 | 1,647 | 3,176 |
Restructuring and other charges | 200 | 1,300 | 3,600 | 6,100 |
Relocation Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | 309 | ||
Additions for costs expensed, net | 0 | 293 | ||
Reductions for payments | 0 | (602) | ||
Foreign exchange impact | 0 | |||
Ending balance | $ 0 | $ 0 | $ 0 | 0 |
Restructuring and other charges | $ 200 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
Effective tax rate | (52.30%) | (57.30%) |
Unrecognized tax benefits due to FIN 48 | (49.90%) | (26.70%) |
Foreign currency devaluation | (22.40%) | (15.60%) |
Foreign withholding tax rate differential | (29.10%) | (27.70%) |
Deferred tax assets valuation | 31.70% | (2.70%) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Feb. 20, 2019 | |
Equity [Abstract] | |||
Share repurchase program, authorized purchase amount | $ 100,000,000 | ||
Shares repurchased (in shares) | 0 | 3,054,338 | |
Shares repurchased, value | $ 38,900,000 | ||
Remaining authorized share repurchase amount | $ 57,700,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
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 | $ 9.4 | |
Weighted-average vesting period | 1 year 6 months | |
PSUs | First anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
PSUs | Second anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
PSUs | Third anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
RSUs | First anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
RSUs | Second anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
RSUs | Third anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock | First anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock | Second anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock | Third anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock, Restricted Stock Units and Performance Units for Common Stock (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Equity Awards | |
Shares | |
Non-vested awards at the beginning of the period (in shares) | shares | 842 |
Granted (in shares) | shares | 167 |
Vested (in shares) | shares | (440) |
Cancelled (in shares) | shares | (242) |
Non-vested awards at the end of the period (in shares) | shares | 327 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 22.79 |
Granted (in dollars per share) | $ / shares | 6.91 |
Vested (in dollars per share) | $ / shares | 20.59 |
Cancelled (in dollars per share) | $ / shares | 28.07 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 13.73 |
Liability Awards | |
Shares | |
Non-vested awards at the beginning of the period (in shares) | shares | 318 |
Granted (in shares) | shares | 1,182 |
Vested (in shares) | shares | (80) |
Cancelled (in shares) | shares | (207) |
Non-vested awards at the end of the period (in shares) | shares | 1,213 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 17.01 |
Granted (in dollars per share) | $ / shares | 8.54 |
Vested (in dollars per share) | $ / shares | 26.24 |
Cancelled (in dollars per share) | $ / shares | 9.90 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 9.36 |
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, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator for basic and diluted net loss per common share: | ||||
Loss from continuing operations | $ (16,723) | $ (12,994) | $ (52,081) | $ (46,235) |
Income (loss) from discontinued operations, net of tax | (998) | 3,153 | (15,833) | 23,695 |
Less: Net income attributable to participating securities | 0 | 0 | 0 | 0 |
Net loss — used in basic and diluted net loss per common share | $ (17,721) | $ (9,841) | $ (67,914) | $ (22,540) |
Weighted average common shares outstanding including participating securities | ||||
Weighted average common shares outstanding including participating securities (in shares) | 33,152 | 34,523 | 33,147 | 35,623 |
Less: Weighted average participating securities outstanding (in shares) | (346) | (740) | (405) | (784) |
Weighted average common shares outstanding — used in basic net loss per common share (in shares) | 32,806 | 33,783 | 32,742 | 34,839 |
Net dilutive potential common shares issuable: | ||||
Weighted average common shares outstanding — used in diluted net loss per common share (in shares) | 32,806 | 33,783 | 32,742 | 34,839 |
Net loss per common share: | ||||
Basic and diluted (in dollars per share) | $ (0.54) | $ (0.29) | $ (2.07) | $ (0.65) |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Schedule of Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 30 | 69 | 39 | 70 |
On exercise of options where exercise price is greater than average market value | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 30 | 69 | 39 | 70 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount accrued for the outcomes of non-income-based tax audits | $ 3.5 | $ 3.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Indemnifications (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Tax Attributable to Business after Spin-off | |
Loss Contingencies [Line Items] | |
Liability for certain taxes not clearly attributable to the business (as a percent) | 50.00% |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 169,511 | $ 185,950 | $ 461,362 | $ 618,320 |
Total gross margin | 67,565 | 77,328 | 192,691 | 240,150 |
Contract operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 81,679 | 96,261 | 254,412 | 271,645 |
Total gross margin | 57,131 | 61,905 | 174,658 | 178,362 |
Aftermarket Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 30,435 | 34,893 | 83,337 | 92,308 |
Total gross margin | 7,300 | 8,814 | 20,001 | 24,494 |
Product sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 57,397 | 54,796 | 123,613 | 254,367 |
Total gross margin | $ 3,134 | $ 6,609 | $ (1,968) | $ 37,294 |
Reportable Segments - Reconcili
Reportable Segments - Reconciliation of Income Before Income Taxes to Total Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Loss before income taxes | $ (10,978) | $ (12,517) | $ (33,111) | $ (26,026) |
Selling, general and administrative | 29,959 | 32,308 | 95,049 | 108,902 |
Depreciation and amortization | 36,630 | 41,106 | 100,887 | 113,450 |
Impairments | 1,695 | 2,970 | 1,695 | 8,889 |
Restructuring and other charges | 238 | 1,257 | 3,550 | 6,342 |
Interest expense | 9,623 | 10,103 | 29,214 | 28,194 |
Gain on extinguishment of debt | (780) | 0 | (3,424) | 0 |
Other (income) expense, net | 1,178 | 2,101 | (1,169) | 399 |
Total gross margin | $ 67,565 | $ 77,328 | $ 192,691 | $ 240,150 |
Uncategorized Items - extn-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |