Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Mammoth Energy Services, Inc. | |
Entity Central Index Key | 1,679,268 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 44,714,296 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,447 | $ 5,637 |
Accounts receivable, net | 243,913 | 243,746 |
Receivables from related parties | 46,338 | 33,788 |
Inventories | 12,189 | 17,814 |
Prepaid expenses | 12,030 | 12,552 |
Other current assets | 1,112 | 886 |
Total current assets | 326,029 | 314,423 |
Property, plant and equipment, net | 365,757 | 351,017 |
Sand reserves | 74,682 | 74,769 |
Intangible assets, net | 13,732 | 16,139 |
Goodwill | 99,811 | 99,811 |
Deferred income tax asset | 16,829 | 6,739 |
Other non-current assets | 4,245 | 4,345 |
Total assets | 901,085 | 867,243 |
CURRENT LIABILITIES | ||
Accounts payable | 151,509 | 141,306 |
Payables to related parties | 2,228 | 1,378 |
Accrued expenses and other current liabilities | 42,919 | 40,895 |
Income taxes payable | 62,272 | 36,409 |
Total current liabilities | 258,928 | 219,988 |
Long-term debt | 39,000 | 99,900 |
Deferred income tax liabilities | 31,897 | 34,147 |
Asset retirement obligation | 3,124 | 2,123 |
Other liabilities | 3,999 | 3,289 |
Total liabilities | 336,948 | 359,447 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ||
EQUITY | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 44,714,296 and 44,589,306 issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 447 | 446 |
Additional paid in capital | 509,265 | 508,010 |
Retained earnings | 57,547 | 2,001 |
Accumulated other comprehensive loss | (3,122) | (2,661) |
Total equity | 564,137 | 507,796 |
Total liabilities and equity | 901,085 | 867,243 |
Trade names | ||
CURRENT ASSETS | ||
Intangible assets, net | 6,296 | 6,516 |
Customer relationships | ||
CURRENT ASSETS | ||
Intangible assets, net | $ 7,436 | $ 9,623 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (in shares) | 44,714,296 | 44,589,306 |
Common stock, shares, outstanding (in shares) | 44,714,296 | 44,589,306 |
CONDENSED CONSOLDIATED STATEMEN
CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | |
REVENUE | |||
Services revenue | $ 408,659 | $ 27,092 | |
Services revenue - related parties | 49,088 | 32,962 | |
Product revenue | 25,040 | 3,372 | |
Product revenue - related parties | 11,462 | 11,540 | |
Total revenue | 494,249 | 74,966 | |
COST AND EXPENSES | |||
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $24,575 and $15,838, respectively, for the three months ended March 31, 2018 and 2017) | 290,979 | 45,461 | |
Services cost of revenue - related parties (exclusive of depreciation, depletion, amortization and accretion of $0 and $0, respectively, for the three months ended March 31, 2018 and 2017) | 1,792 | 430 | |
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,314 and $1,362, respectively, for the three months ended March 31, 2018 and 2017) | 33,330 | 12,607 | |
Selling, general and administrative | 38,082 | 6,413 | |
Selling, general and administrative - related parties | 429 | 324 | |
Depreciation, depletion, amortization and accretion | 26,908 | 17,237 | |
Total cost and expenses | 391,520 | 82,472 | |
Operating income (loss) | 102,729 | (7,506) | |
OTHER (EXPENSE) INCOME | |||
Interest expense, net | (1,237) | (397) | |
Other, net | (28) | (184) | |
Total other (expense) income | (1,265) | (581) | |
Income (loss) before income taxes | 101,464 | (8,087) | |
Provision (benefit) for income taxes | 45,918 | (3,106) | |
Net income (loss) | 55,546 | (4,981) | [2] |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment, net of tax of $186 and $20, respectively, for the three months ended March 31, 2018 and 2017 | (461) | 228 | |
Comprehensive income (loss) | $ 55,085 | $ (4,753) | |
Net income (loss) per share (basic) (Note 12) (in USD per share) | $ 1.24 | $ (0.13) | |
Net income (loss) per share (diluted) (Note 12) (In USD per share) | $ 1.24 | $ (0.13) | |
Weighted average number of shares outstanding (basic) (Note 12) (in shares) | 44,650,133 | 37,500,000 | |
Weighted average number of shares outstanding (diluted) (Note 12) (in shares) | 44,884,000 | 37,500,000 | |
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC | ||
[2] | Financial information has been recast to include results attributable to Sturgeon. See Note 4. |
CONDENSED CONSOLDIATED STATEME5
CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Services cost of revenues, depreciation, depletion, amortization and accretion | $ 24,575 | $ 15,838 |
Services cost of revenues - related parties, depreciation, depletion, amortization and accretion | 0 | 0 |
Product cost of revenues, depreciation, depletion, amortization and accretion | 2,314 | 1,362 |
Foreign currency translation adjustment, tax | $ 186 | $ 20 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Thousands | Total | Members' Equity | Common Stock | Retailed Earnings (Deficit) | Additional Paid-in Capital | AOCL | Stingray Entities | Stingray EntitiesCommon Stock | Stingray EntitiesAdditional Paid-in Capital | Sturgeon Acquisitions LLC | Sturgeon Acquisitions LLCMembers' Equity | Sturgeon Acquisitions LLCCommon Stock | Sturgeon Acquisitions LLCAdditional Paid-in Capital |
Beginning balance (in shares) at Dec. 31, 2016 | 37,500,000 | ||||||||||||
Beginning balance at Dec. 31, 2016 | $ 422,781 | $ 375 | $ (56,323) | $ 400,206 | $ (3,216) | ||||||||
Members' Equity at Dec. 31, 2016 | $ 81,739 | ||||||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||||||||
Net income of Sturgeon prior to acquisition | 640 | 640 | |||||||||||
Acquisition of company (in shares) | 1,393,000 | 5,607,000 | |||||||||||
Acquisition of company | $ 25,762 | $ 14 | $ 25,748 | $ (4,010) | $ (82,379) | $ 56 | $ 78,313 | ||||||
Equity based compensation (in shares) | 89,000 | ||||||||||||
Equity based compensation | 3,744 | $ 1 | 3,743 | ||||||||||
Net income | 58,324 | 58,324 | |||||||||||
Other comprehensive income (loss) | $ 555 | 555 | |||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 44,589,306 | 44,589,000 | |||||||||||
Ending balance at Dec. 31, 2017 | $ 507,796 | $ 446 | 2,001 | 508,010 | (2,661) | ||||||||
Members' Equity at Dec. 31, 2017 | 0 | ||||||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||||||||
Equity based compensation (in shares) | 125,000 | ||||||||||||
Equity based compensation | 1,256 | $ 1 | 1,255 | ||||||||||
Net income | 55,546 | 55,546 | |||||||||||
Other comprehensive income (loss) | $ (461) | (461) | |||||||||||
Ending balance (in shares) at Mar. 31, 2018 | 44,714,296 | 44,714,000 | |||||||||||
Ending balance at Mar. 31, 2018 | $ 564,137 | $ 447 | $ 57,547 | $ 509,265 | $ (3,122) | ||||||||
Members' Equity at Mar. 31, 2018 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [2] | |
Cash flows from operating activities: | |||
Net income (loss) | $ 55,546 | $ (4,981) | [1] |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Equity based compensation | 1,256 | 570 | |
Depreciation, depletion, accretion and amortization | 26,908 | 17,237 | |
Amortization of coil tubing strings | 565 | 492 | |
Amortization of debt origination costs | 100 | 151 | |
Bad debt expense | 25,527 | (41) | |
Gain on disposal of property and equipment | (184) | (79) | |
Deferred income taxes | (12,117) | (3,801) | |
Changes in assets and liabilities, net of acquisitions of businesses: | |||
Accounts receivable, net | (25,722) | (4,357) | |
Receivables from related parties | (12,550) | (4,842) | |
Inventories | 5,060 | (466) | |
Prepaid expenses and other assets | 294 | 77 | |
Accounts payable | 8,302 | 13,302 | |
Payables to related parties | 851 | 451 | |
Accrued expenses and other liabilities | 1,636 | 733 | |
Income taxes payable | 25,851 | (28) | |
Net cash provided by operating activities | 101,323 | 14,418 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (35,176) | (31,110) | |
Purchases of property and equipment from related parties | (598) | 0 | |
Proceeds from disposal of property and equipment | 286 | 369 | |
Net cash used in investing activities | (35,488) | (30,741) | |
Cash flows from financing activities: | |||
Borrowings from lines of credit | 31,000 | 0 | |
Repayments of lines of credit | (91,900) | 0 | |
Repayments of equipment financing note | (72) | 0 | |
Net cash used in financing activities | (60,972) | 0 | |
Effect of foreign exchange rate on cash | (53) | 11 | |
Net change in cash and cash equivalents | 4,810 | (16,312) | |
Cash and cash equivalents at beginning of period | 5,637 | 29,239 | |
Cash and cash equivalents at end of period | 10,447 | 12,927 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,442 | 254 | |
Cash paid for income taxes | 32,184 | 701 | |
Supplemental disclosure of non-cash transactions: | |||
Purchases of property and equipment included in trade accounts payable | $ 16,558 | $ 9,346 | |
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC | ||
[2] | Financial information has been recast to include results attributable to Sturgeon. See Note 4. |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Mammoth Energy Services, Inc. (the “Company,” “Mammoth Inc.” or “Mammoth”), together with its subsidiaries, is an integrated, growth-oriented energy services company serving companies engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves as well as government-funded utilities, private utilities, public investor owned utilities and co-operative utilities engaged in energy infrastructure. The Company was incorporated in Delaware in June 2016 as a wholly-owned subsidiary of Mammoth Energy Partners LP, a Delaware limited partnership (the “Partnership” or the “Predecessor”). The Partnership was originally formed by Wexford Capital LP (“Wexford”) in February 2014 as a holding company under the name Redback Inc. and was converted to a Delaware limited partnership in August 2014. On November 24, 2014, Mammoth Energy Holdings LLC (“Mammoth Holdings,” an entity controlled by Wexford), Gulfport Energy Corporation (“Gulfport”) and Rhino Resource Partners LP (“Rhino”) (collectively known as the “Predecessor Interest”) contributed their interest in certain of the entities presented below to the Partnership in exchange for 20 million limited partner units. Mammoth Energy Partners GP, LLC (the “General Partner”) held a non-economic general partner interest. On October 12, 2016, the Partnership was converted into a Delaware limited liability company named Mammoth Energy Partners LLC (“Mammoth LLC”), and then Mammoth Holdings, Gulfport and Rhino, as all the members of Mammoth LLC, contributed their member interests in Mammoth LLC to Mammoth Inc. Prior to the conversion and the contribution, Mammoth Inc. was a wholly-owned subsidiary of the Partnership. Following the conversion and the contribution, Mammoth LLC (as the converted successor to the Partnership) was a wholly-owned subsidiary of Mammoth Inc. Mammoth Inc. did not conduct any material business operations until Mammoth LLC was contributed to it. On October 19, 2016, Mammoth Inc. closed its initial public offering of 7,750,000 shares of common stock (the “IPO”), which included an aggregate of 250,000 shares that were offered by Mammoth Holdings, Gulfport and Rhino, at a price to the public of $15.00 per share. At March 31, 2018 and December 31, 2017 , Mammoth Holdings (and certain of its affiliates), Gulfport and Rhino owned the following share of outstanding common stock of Mammoth Inc.: At March 31, 2018 At December 31, 2017 Share Count % Ownership Share Count % Ownership Mammoth Holdings 25,009,319 55.9 % 25,009,319 56.1 % Gulfport 11,171,887 25.0 % 11,171,887 25.1 % Rhino 336,447 0.8 % 568,794 1.3 % Outstanding shares owned by related parties 36,517,653 81.7 % 36,750,000 82.5 % Total outstanding 44,714,296 100.0 % 44,589,306 100.0 % Operations The Company's pressure pumping services include equipment and personnel used in connection with the completion and early production of oil and natural gas wells. The Company's infrastructure services include electric utility contracting services focused on the repair, upgrade, maintenance and construction of transmission and distribution networks. The Company’s infrastructure services also provide storm repair and restoration services in response to hurricane, ice or other storm-related damage. The Company's natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry. The Company's contract land and directional drilling services provides drilling rigs and directional tools for both vertical and horizontal drilling of oil and natural gas wells and salt water disposal wells. The Company also provides other services, including coil tubing units used to enhance the flow of oil and natural gas, flowback, cementing, equipment rentals and remote accommodations. All of the Company’s operations are in North America. The Company operates its oil and natural gas businesses in the Permian Basin, the Utica Shale, the Eagle Ford Shale, the Marcellus Shale, the Granite Wash, the SCOOP, the STACK, the Cana-Woodford Shale, the Cleveland Sand and the oil sands located in Northern Alberta, Canada. The Company operates its energy infrastructure services in the northeast, southwest and midwest portions of the United States and Puerto Rico. The Company's oil and natural gas business depends in large part on the conditions in the oil and natural gas industry and, specifically, on the amount of capital spending by its customers. Any prolonged increase or decrease in oil and natural gas prices affects the levels of exploration, development and production activity, as well as the entire health of the oil and natural gas industry. Changes in the commodity prices for oil and natural gas could have a material effect on the Company’s results of operations and financial condition. The Company’s business also depends on infrastructure spending on maintenance, upgrade, expansion and repair and restoration. Any prolonged decrease in spending by electric utility companies or delays or reductions in government appropriations could have a material adverse effect on the Company’s results of operations and financial condition. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K. On June 5, 2017, the Company acquired Sturgeon Acquisitions LLC ("Sturgeon") and Sturgeon's wholly owned subsidiaries Taylor Frac, LLC, Taylor Real Estate Investments, LLC and South River Road, LLC. Prior to its acquisition of Sturgeon, the Company and Sturgeon were under common control and it is required under GAAP to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Therefore, the Company's historical financial information for all periods included in the accompanying financial statements has been recast to combine Sturgeon with the Company as if the acquisition had been effective since the date Sturgeon commenced operations. Refer to Note 4 - Acquisitions for additional disclosure regarding the acquisition of Sturgeon. Accounts Receivable Accounts receivable include amounts due from customers for services performed and are recorded as the work progresses. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Most areas in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. The Company regularly reviews receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial conditions of customers change, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company was to determine that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once final determination is made of their uncollectability. Following is a roll forward of the allowance for doubtful accounts for the year ended December 31, 2017 and the three months ended March 31, 2018 (in thousands): Balance, January 1, 2017 $ 5,377 Additions charged to expense 16,206 Additions other 179 Deductions for uncollectible receivables written off (25 ) Balance, December 31, 2017 21,737 Additions charged to expense 25,541 Deductions for uncollectible receivables written off (14 ) Balance, March 31, 2018 $ 47,264 In October 2017, Cobra Acquisitions LLC ("Cobra"), one of the Company's subsidiaries, entered into a contract with the Puerto Rico Electric Power Authority ("PREPA") to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria. At March 31, 2018 and December 31, 2017 , the Company reviewed receivables due from PREPA and made specific reserves consistent with Company policy which resulted in additions to allowance for doubtful accounts totaling $25.4 million and $16.0 million , respectively, for the three months ended March 31, 2018 and year ended December 31, 2017 . Additionally, the Company has made specific reserves consistent with Company policy which resulted in additions to allowance for doubtful accounts totaling $0.1 million and $0.2 million , respectively, for the three months ended March 31, 2018 and year ended December 31, 2017 . The Company will continue to pursue collection until such time as final determination is made consistent with Company policy. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. Following is a summary of our significant customers based on percentages of total accounts receivable balances at March 31, 2018 and December 31, 2017 and percentages of total revenues derived for the three months ended March 31, 2018 and 2017 : REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2018 2017 2018 2017 Customer A (a) 64 % — % 52 % 56 % Customer B (b) 12 % 59 % 16 % 12 % a. Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company's infrastructure services segment. b. Customer B is a related party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company's pressure pumping services segment, natural sand proppant services segment, contract land and directional drilling services segment and other businesses. Fair Value of Financial Instruments The Company's financial instruments consist of cash and cash equivalents, trade receivables, trade payables and amounts receivable or payable to related parties. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. New Accounting Pronouncements In February 2016, the FASB issued ASU No, 2016-2 “Leases” amending the current accounting for leases. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) a financing lease or (ii) an operating lease. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. For sale leaseback transactions, a sale will only be recognized if the criteria in the new revenue recognition standard are met. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. The Company plans to adopt this ASU effective January 1, 2019 utilizing the modified retrospective method of adoption. This new leasing guidance will impact the Company in situations where it is the lessee, and in certain circumstances it will have a right-of-use asset and lease liability on its consolidated financial statements. The Company is currently evaluating the effect the new guidance will have on the Company's consolidated financial statements and results of operations. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions (a) Description of Stingray Acquisition On March 20, 2017, and as amended on May 12, 2017, the Company entered into two definitive contribution agreements, one such agreement with MEH Sub LLC (“MEH Sub”), Wexford Offshore Stingray Energy Corp., Gulfport and Mammoth LLC and the other with MEH Sub, Wexford Offshore Stingray Pressure Pumping Corp., Gulfport and Mammoth LLC (collectively, the “Stingray Contribution Agreements”). Under the Stingray Contribution Agreements, the Company agreed to acquire, through its wholly-owned subsidiary Mammoth LLC, all outstanding membership interests in Stingray Cementing LLC ("Cementing") and Stingray Energy Services LLC ("SR Energy") (the “2017 Stingray Acquisition”). The addition of their water transfer, equipment rentals and cementing services further expanded and vertically integrated Mammoth’s service offerings. The 2017 Stingray Acquisition closed on June 5, 2017. Pursuant to the Stingray Contribution Agreements, Mammoth issued 1,392,548 shares of its common stock for all outstanding equity interests in SR Energy and Cementing. Based upon a closing price of Mammoth's common stock of $18.50 per share on June 5, 2017, the total purchase price was $25.8 million . At the acquisition date, the components of the consideration transferred were as follows (in thousands): Consideration attributable to Cementing (1) $ 12,975 Consideration attributable to SR Energy (1) 12,787 Total consideration transferred $ 25,762 (1) See Summary of acquired assets and liabilities below SR Energy Cementing Total (in thousands) Cash and cash equivalents $ 1,611 $ 1,060 $ 2,671 Accounts receivable, net 3,913 495 4,408 Receivables from related parties 3,684 1,418 5,102 Inventories — 306 306 Prepaid expenses 35 32 67 Property, plant and equipment (1) 13,061 7,459 20,520 Identifiable intangible assets - customer relationships (2) — 1,140 1,140 Identifiable intangible assets - trade names (2) 550 270 820 Goodwill (3) 3,929 6,264 10,193 Other assets 7 — 7 Total assets acquired $ 26,790 $ 18,444 $ 45,234 Accounts payable and accrued liabilities $ 5,890 $ 2,063 $ 7,953 Long-term debt (4) 5,074 2,000 7,074 Deferred tax liability 3,039 1,406 4,445 Total liabilities assumed $ 14,003 $ 5,469 $ 19,472 Net assets acquired $ 12,787 $ 12,975 $ 25,762 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) Identifiable intangible assets were measured using a combination of income approaches. Trade names were valued using a "Relief-from-Royalty" method. Non-contractual customer relationships were valued using a "Multi-period excess earnings" method. Identifiable intangible assets will be amortized over 5 - 10 years. (3) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability based on the synergies expected to arise from the acquired entities. (4) Long-term debt assumed was paid off subsequent to the acquisitions. Since the acquisition date, the businesses acquired have provided the following activity (in thousands): 2018 2017 SR Energy Cementing SR Energy Cementing Revenues (a) $ 8,890 $ 2,851 $ 11,572 $ 7,500 Net loss (b) (481 ) (478 ) (1,626 ) (1,963 ) a. Includes intercompany revenues of $0.7 million for SR Energy in 2018 and $0.6 million and a nominal amount for SR Energy and Cementing in 2017 b. Includes depreciation and amortization expense of $1.5 million and $0.6 million , respectively, for SR Energy and Cementing in 2018 and $3.4 million and $4.1 million , respectively, for SR Energy and Cementing in 2017 The following table presents unaudited pro forma information as if the acquisition of SR Energy and Cementing had occurred on January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ 8,753 Net loss (613 ) The historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the 2017 Stingray Acquisition. The unaudited pro forma consolidated results are not necessarily indicative of what the consolidated results of operations actually would have been had the 2017 Stingray Acquisition been completed on January 1, 2017. In addition, the unaudited pro forma consolidated results do not purport to project the future results of operations of the Company. The Company recognized $0.2 million of transaction related costs during the year ended December 31, 2017 related to this acquisition. (b) Description of Chieftain Acquisition On March 27, 2017, as amended as of May 24, 2017, the Company entered into a the Purchase Agreement with Chieftain Sand and Proppant, LLC and Chieftain Sand and Proppant Barron, LLC, unrelated third party sellers (the "Chieftain Sellers"), following the Company's successful bid in a bankruptcy court auction for substantially all of the assets of the Chieftain Sellers (the "Chieftain Assets"). This transaction (the "Chieftain Acquisition") closed on May 26, 2017. Mammoth funded the purchase price for the Chieftain Assets with cash on hand and borrowings under its revolving credit facility. The Chieftain Assets are held by the Company's wholly owned subsidiary Piranha and are included in the Company's sand segment. The Chieftain Acquisition added sand reserves, increased our production capacity and provided access to the Union Pacific railroad, which affords access to both the Mid-Continent and Permian basins in support of the Company’s pressure pumping services. On the acquisition date, the $36.3 million in cash consideration consisted of the following components (in thousands): Total Property, plant and equipment (1) $ 23,373 Sand reserves (2) 20,910 Total assets acquired $ 44,283 Asset retirement obligation 1,732 Total liabilities assumed $ 1,732 Total allocation of purchase price $ 42,551 Bargain purchase price (3, 4) (6,231 ) Total purchase price $ 36,320 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) The fair value of the sand reserves was determined based on the excess cash flow method, a form of the income approach. The method provides a value based on the estimated remaining life of sand reserves, projected financial information and industry projections. (3) Amount reflected in Condensed Consolidated Statements of Comprehensive Loss reflected net of income taxes of $2.2 million . (4) The fair value of the business was determined based on the excess cash flow method, a form of the income approach. Since the acquisition date, the Chieftain Assets have provided the following activity (in thousands): 2018 2017 Revenues (a) $ 19,735 $ 22,847 Net income (b) 5,791 5,520 a. Includes intercompany revenues of $8.8 million and $12.3 million , respectively, for 2018 and 2017 b. Includes depreciation, depletion, amortization and accretion of $1.0 million and $2.8 million , respectively, for 2018 and 2017 The following table presents unaudited pro forma information as if the acquisition of the Chieftain Assets had occurred as of January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ — Net loss (698 ) The Company's historical financial information was adjusted to give pro forma effect to the events that were directly attributable to the Chieftain Acquisition. The Company recognized $0.8 million of transaction related costs during the year ended December 31, 2017 related to this acquisition. (c) Description of Sturgeon Acquisition On March 20, 2017, and as amended on May 12, 2017, the Company entered into a definitive contribution agreement with MEH Sub, Wexford Offshore Sturgeon Corp., Gulfport, Rhino and Mammoth Energy Partners LLC (the “Sturgeon Contribution Agreement”). Under the Sturgeon Contribution Agreement, the Company agreed to acquire, through its wholly-owned subsidiary Mammoth LLC, all outstanding membership interests in Sturgeon, which owns all of the membership interests in Taylor Frac, Taylor RE and South River (collectively, the "Sturgeon subsidiaries"). The acquisition added sand reserves, increased our production capacity and provided access to the Canadian National Railway, which affords access to the Appalachian basin in support of the Company’s pressure pumping services as well as to western Canada. The acquisition of Sturgeon closed on June 5, 2017. Pursuant to the Sturgeon Contribution Agreement, Mammoth issued 5,607,452 shares of its common stock for all outstanding equity interests in Sturgeon. Based upon a closing price of Mammoth's common stock of $18.50 per share on June 5, 2017, the total purchase price was $103.7 million . As a result of this transaction, the Company's historical financial information has been recast to combine the Condensed Consolidated Statements of Operations and the Condensed Consolidated Balance Sheets of the Company for all periods included in the accompanying financial statements with those of Sturgeon as if the combination had been in effect since Sturgeon commenced operations on September 13, 2014. Any material transactions between the Company and Sturgeon were eliminated. Sturgeon's financial results were incorporated into the Company's natural sand proppant services division. For the year ended December 31, 2017, $1.3 million of transaction related costs were expensed. (d) Acquisition of Higher Power On April 21, 2017, the Company completed its acquisition of Higher Power for total consideration of $3.3 million in cash to the sellers plus up to $0.8 million in contingent consideration to be paid in equal annual installments over the next three years subject to contractual conditions. As of March 31, 2018, $0.3 million and $0.5 million of the contingent consideration are reflected in the accrued expenses and other current liabilities and other liabilities, respectively. Mammoth funded the purchase price for Higher Power with cash on hand and borrowings under its credit facility. The acquisition of Higher Power added an energy infrastructure component to the Company's business, helping to diversify its service offerings. The Company recognized $0.1 million of transaction related costs during the year ended December 31, 2017 related to this acquisition. The following table summarizes the fair value of Higher Power as of April 21, 2017 (in thousands): Higher Power Property, plant and equipment $ 1,744 Identifiable intangible assets - customer relationships 1,613 Goodwill (1) 643 Total assets acquired $ 4,000 (1) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability expected to arise from the acquired entity. From its acquisition date through March 31, 2018 , Higher Power has provided the following activity (in thousands): 2018 2017 Revenues (a) $ 55,156 $ 39,571 Net income (b) 22,373 5,127 a. Includes intercompany revenues of $51.5 million and $27.4 million , respectively for 2018 and 2017 b. Includes depreciation and amortization expense of $1.1 million and $2.0 million , respectively, for 2018 and 2017 The following table presents unaudited pro forma information as if the acquisition of Higher Power had occurred as of January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ 2,226 Net loss (163 ) (e) Acquisition of 5 Star On July 1, 2017, the Company completed its acquisition of 5 Star for total consideration of $2.4 million in cash to the sellers. Mammoth funded the purchase price for 5 Star with cash on hand and borrowings under its credit facility. The acquisition of 5 Star added to the infrastructure component of the Company's business. The Company recognized $0.1 million of transaction related costs during the year ended December 31, 2017 related to this acquisition. The following table summarizes the fair value of 5 Star as of July 1, 2017 (in thousands): 5 Star Accounts receivable $ 2,440 Property, plant and equipment 1,863 Identifiable intangible assets - trade names (1) 300 Goodwill (2) 248 Total assets acquired $ 4,851 Long-term debt and other liabilities $ 2,413 Total liabilities assumed $ 2,413 Net assets acquired $ 2,438 (1) Identifiable intangible assets were measured using a combination of income approaches. Trade names were valued using a "Relief-from-Royalty" method. Identifiable intangible assets will be amortized over 10 years. (2) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability expected to arise from the acquired entity. From its acquisition date through March 31, 2018 , 5 Star has provided the following activity (in thousands): 2018 2017 Revenues (a) $ 37,745 $ 25,216 Net income (b) 16,624 4,191 a. Includes intercompany revenues of $34.4 million and $16.0 million , respectively, for 2018 and 2017 b. Includes depreciation and amortization expense of $0.5 million and $0.8 million , respectively, for 2018 and 2017 The following table presents unaudited pro forma information as if the acquisition of 5 Star had occurred as of January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ 3,314 Net loss (164 ) |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Adoption of ASC 606 "Revenues from Contracts with Customers" In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers ,” which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition , and most industry-specific guidance. The new guidance requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, the Company adopted ASU 2014-09 and its related amendments (collectively, "ASC 606") using the modified retrospective method applied to contracts which were not completed as of January 1, 2018. Revenues for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts continue to be reported under previous revenue recognition guidance. While ASC 606 requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, its adoption has not had a material impact on the measurement or recognition of the Company's revenues. The adoption of ASC 606 represents a change in accounting principle. After evaluation of all contracts not completed as of January 1, 2018, the Company determined the cumulative effect of adopting ASC 606 was immaterial, and as such, has not recorded an adjustment to the opening balance of retained earnings on January 1, 2018. Revenue Recognition The following table presents revenues disaggregated by service line (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Revenue: Pressure pumping services $ 101,138 $ 40,640 Infrastructure services 325,459 — Natural sand proppant services 51,015 15,597 Contract land and directional drilling services 15,230 10,751 Other services 22,895 8,850 Eliminations (21,488 ) (872 ) Total revenue 494,249 74,966 Pressure Pumping Services Pressure pumping services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for pressure pumping services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized over time upon the completion of each day’s work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods and services are consumed. Infrastructure Services Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). The Company accounts for infrastructure services as a single performance obligation satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal. Certain of the Company's sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management's knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer's inability to take delivery of excess volumes. During the three months ended March 31, 2018, the Company did no t recognize any material revenue or liabilities related to shortfall payments. In certain of the Company's sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities. Contract Land and Directional Drilling Services Contract drilling services are provided under daywork contracts. Directional drilling services are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs are recognized over the days of actual drilling. Other Services The Company also provides coil tubing, pressure control, flowback, cementing, equipment rentals and remote accommodations services, which are reported under other services. These services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation. Performance Obligations and Contract Balances As of March 31, 2018 and January 1, 2018, the Company had contract liabilities totaling $15.0 million , which are included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets, and did no t have any contract assets. Revenue recognized in the current period from performance obligations satisfied in previous periods was a nominal amount for the three months ended March 31, 2018. As of March 31, 2018, the Company had unsatisfied performance obligations totaling $86.4 million , which will be recognized over the next three years . |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory consists of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or market (net realizable value) on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage and future utility. A summary of the Company's inventories is shown below (in thousands): March 31, December 31, 2018 2017 Supplies $ 8,069 $ 9,437 Raw materials 224 219 Work in process 197 2,370 Finished goods 3,699 5,788 Total inventory $ 12,189 $ 17,814 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment include the following (in thousands): March 31, December 31, Useful Life 2018 2017 Pressure pumping equipment 3-5 years $ 196,428 $ 190,211 Drilling rigs and related equipment 3-15 years 135,410 132,260 Machinery and equipment (a) 7-20 years 115,019 97,569 Buildings 15-39 years 45,138 45,992 Vehicles, trucks and trailers (b) 5-10 years 62,168 54,055 Coil tubing equipment 4-10 years 28,068 28,053 Land N/A 11,794 11,317 Land improvements 15 years or life of lease 9,614 9,614 Rail improvements 10-20 years 8,865 5,540 Other property and equipment 3-12 years 13,613 12,687 626,117 587,298 Deposits on equipment and equipment in process of assembly 20,062 20,348 646,179 607,646 Less: accumulated depreciation (c) 280,422 256,629 Property, plant and equipment, net $ 365,757 $ 351,017 a. Included in machinery and equipment are assets under capital leases totaling $1.8 million and $1.8 million , respectively, at March 31, 2018 and December 31, 2017 . b. Included in vehicles, trucks and trailers are assets under capital leases totaling $2.0 million and $1.0 million , respectively, at March 31, 2018 and December 31, 2017 . c. Accumulated depreciation for assets under capital leases totaled $0.8 million and $0.8 million , respectively, at March 31, 2018 and December 31, 2017 . Proceeds from customers for horizontal and directional drilling services equipment damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the statement of cash flows. For the three months ended March 31, 2018 and 2017 , proceeds from the sale of equipment damaged or lost down-hole were $0.2 million and $0.3 million , respectively, and gains on sales of equipment damaged or lost down-hole were $0.2 million and $0.2 million , respectively. A summary of depreciation, depletion, amortization and accretion expense is below (in thousands): Three Months Ended March 31, 2018 2017 Depreciation expense (a) $ 24,398 $ 14,967 Depletion expense 87 2 Amortization expense 2,408 2,268 Accretion expense 15 — Depreciation, depletion, amortization and accretion $ 26,908 $ 17,237 a. Includes depreciation expense for assets under capital leases totaling $0.1 million and $0.1 million , respectively, for the three months ended March 31, 2018 and 2017. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company had the following definite lived intangible assets recorded (in thousands): March 31, December 31, 2018 2017 Customer relationships $ 35,795 $ 35,795 Trade names 8,793 8,793 Less: accumulated amortization - customer relationships (28,359 ) (26,172 ) Less: accumulated amortization - trade names (2,497 ) (2,277 ) Intangible assets, net $ 13,732 $ 16,139 Amortization expense for intangible assets was $2.4 million and $2.3 million , respectively, for the three months ended March 31, 2018 and 2017 . The original life of customer relationships range from 4 to 10 years with a remaining average useful life of 2.6 years. The original life of trade names range from 10 to 20 years with a remaining average useful life of 8.2 years. Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands): Amount Remainder of 2018 $ 6,278 2019 1,168 2020 1,168 2021 1,162 2022 1,140 Thereafter 2,816 $ 13,732 Goodwill was $99.8 million at March 31, 2018 and December 31, 2017 . Changes in the goodwill for the year ended December 31, 2017 and the three months ended March 31, 2018 are set forth below (in thousands): Balance, January 1, 2017 $ 88,727 Additions - 2017 Stingray Acquisition (Note 3) 10,193 Additions - Higher Power Acquisition (Note 3) 643 Additions - 5 Star Acquisition (Note 3) 248 Balance, December 31, 2017 99,811 Additions — Balance, March 31, 2018 $ 99,811 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expense and other current liabilities included the following (in thousands): March 31, December 31, 2018 2017 Deferred revenue 15,019 15,210 Accrued compensation, benefits and related taxes 15,593 11,552 Financed insurance premiums 3,263 4,876 Insurance reserves 3,695 2,942 State and local taxes payable 2,080 2,126 Other 3,269 4,189 Total $ 42,919 $ 40,895 Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve month period following the close of the year. As of March 31, 2018 and December 31, 2017 , the applicable interest rate associated with financed insurance premiums was 2.75% . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mammoth Credit Facility On November 25, 2014, Mammoth entered into a revolving credit and security agreement with a syndicate of banks that provides for maximum borrowings of $170 million . The facility, as amended in connection with the IPO, matures on November 25, 2019. Borrowings under this facility are secured by the assets of Mammoth, inclusive of the subsidiary companies. The maximum availability of the facility is subject to a borrowing base calculation prepared monthly. Concurrent with the execution of the facility, the initial advance was used to repay all the debt of the Company then outstanding. Interest is payable monthly at a base rate set by the lead institution’s commercial lending group plus an applicable margin. Additionally, at the Company's request, outstanding balances are permitted to be converted to LIBOR rate plus applicable margin tranches at set increments of $0.5 million . The LIBOR rate option allows the Company to select interest periods from one, two, three or six months. The applicable margin for either the base rate or the LIBOR rate option can vary from 1.5% to 3.0% , based upon a calculation of the excess availability of the line as a percentage of the maximum credit limit. The deferred loan costs associated with this facility are classified in other non-current assets. The weighted average interest rate for borrowings outstanding under the credit facility was 4.49% as of March 31, 2018 . At March 31, 2018 , there were outstanding borrowings under the credit facility of $39.0 million , leaving an aggregate of $123.7 million of borrowing capacity under the facility, after giving effect to $6.5 million of outstanding letters of credit. At December 31, 2017 , there were outstanding borrowings under the credit facility of $99.9 million , leaving an aggregate of $62.8 million of borrowing capacity under the facility, after giving effect to $6.5 million of outstanding letters of credit. The Mammoth facility also contains various customary affirmative and restrictive covenants. Among the various covenants are specifically identified financial covenants placing requirements of a minimum interest coverage ratio ( 3.0 to 1.0), maximum leverage ratio ( 4.0 to 1.0), and minimum availability ( $10 million ). As of March 31, 2018 and December 31, 2017 , the Company was in compliance with its covenants under the facility. Sturgeon Credit Facility On June 30, 2015, Sturgeon entered in to a three -year $25.0 million revolving line of credit secured by substantially all of the assets of Sturgeon (“the Sturgeon revolver”). Advances under the Sturgeon revolver bore interest at 2% plus the greater of (a) the Base Rate as set by the lender's commercial lending group, (b) the sum of the Federal Funds Open Rate plus one half of one percent and (c) the sum of the Daily LIBOR rate. Additionally, at Sturgeon’s request, advances could be obtained at LIBOR plus 3% . The LIBOR rate option allowed Sturgeon to select interest periods from one, two, three or six month LIBOR futures spot rates. The Sturgeon revolver was terminated on June 6, 2017. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities included the following (in thousands): March 31, December 31, 2018 2017 Capital lease obligations $ 3,174 $ 2,015 Equipment financing arrangement 1,509 1,605 Other 500 500 Total 5,183 4,120 Less: Current portion of capital lease and equipment financing obligations included in accrued expenses and other current liabilities (1,184 ) (831 ) Total Other Liabilities $ 3,999 $ 3,289 The Company leases vehicles and other equipment under capital leases with varying terms and expiration dates through 2020. The weighted average implied interest rate under our capital leases as of March 31, 2018 and December 31, 2017 was 15.7% and 19.1% , respectively. Additionally, the Company entered into a five -year equipment financing arrangement maturing in 2022 that bears interest at 4.6% as of March 31, 2018 . Principal and interest on capital leases and the equipment financing arrangement are paid monthly. Aggregate future payments under the Company's non-cancelable capital leases and equipment financing arrangement as of March 31, 2018 are as follows (in thousands): 2018 $ 1,083 2019 1,994 2020 1,105 2021 442 2022 360 Total future minimum payments 4,984 Less interest payments (301 ) Present value of future minimum payments $ 4,683 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax (benefit) expense attributable to the Company for the three months ended March 31, 2018 and 2017 , are as follows (in thousands): Three Months Ended March 31, 2018 2017 Foreign current income tax expense $ 58,047 $ 585 Foreign deferred income tax benefit (10,120 ) (6 ) U.S. current income tax benefit (12 ) — U.S. deferred income tax benefit (1,997 ) (3,685 ) Total $ 45,918 $ (3,106 ) The Company's effective tax rate was 45% and 39% , respectively, for the three months ended March 31, 2018 and 2017 . The increase in the effective tax rate is primarily due to a higher tax rate in Puerto Rico, where most of our income was generated during the three months ended March 31, 2018 , compared to the United States tax rate. No income was generated in Puerto Rico during the three months ended March 31, 2017 . Additionally, the Company's effective tax rate can fluctuate as a result of, among other things, state income taxes, permanent differences and changes in pre-tax income. A valuation allowance for deferred tax assets is recognized when it is more likely than not that the benefit of deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgments regarding future taxable income, as well as the jurisdiction in which such taxable income is generated, to determine whether a valuation allowance is required. During the three months ended March 31, 2018 , the Company recorded a change in valuation allowance of $34.4 million related to foreign tax credits that are not expected to be utilized. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Tax Act”). As a result, the Company recorded a provisional amount for effects of the Tax Act totaling $31.0 million during the fourth quarter of 2017. The Company continues to evaluate the impact of the Tax Act and no revisions were recorded to the provisional amount during the three months ended March 31, 2018 . The Company expects to complete its detailed analysis of the effects of the Tax Act no later than the fourth quarter of 2018. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the table below (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Basic earnings (loss) per share: Allocation of earnings: Net income (loss) $ 55,546 $ (4,981 ) Weighted average common shares outstanding 44,650 37,500 Basic earnings (loss) per share $ 1.24 $ (0.13 ) Diluted earnings (loss) per share: Allocation of earnings (loss): Net income (loss) $ 55,546 $ (4,981 ) Weighted average common shares, including dilutive effect (a) 44,884 37,500 Diluted earnings (loss) per share $ 1.24 $ (0.13 ) a. No incremental shares of potentially dilutive restricted stock awards were included for the three months ended March 31, 2017 as their effect was antidulitive under the treasury stock method. |
Equity Based Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Based Compensation | Equity Based Compensation Upon formation of certain Operating Entities (including the acquired Stingray Entities), specified members of management (“Specified Members”) were granted the right to receive distributions from their respective Operating Entity, after the contribution member’s unreturned capital balance was recovered (referred to as “Payout” provision). Additionally, non-employee members were included in the award class (“Non-Employee Members”). On November 24, 2014, the awards were modified in conjunction with the contribution of the Operating Entities to Mammoth. Awards are not granted in limited or general partner units. Agreements are for interest in the distributable earnings of Mammoth Holdings, Mammoth’s majority equity holder. On the IPO closing date, Mammoth Holdings unreturned capital balance was not fully recovered from its sale of common stock in the IPO. As a result, Payout did not occur and no compensation cost was recorded. Future offerings or sales of common stock to recover outstanding unreturned capital remain not probable. Payout is expected to occur following the sale by Mammoth Holding's of its shares of the Company's common stock, which is considered not probable until the event occurs. Therefore, for the awards that contained the Payout provision, no compensation cost was recognized as the distribution rights do not vest until Payout is reached. For the Specified Member awards, the unrecognized amount, which represents the fair value of the award as of the modification dates or grant date, was $5.6 million . For the Non-Employees Member awards, the unrecognized cost, which represents the fair value of the awards as of March 31, 2018 was $101.0 million . |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation The 2016 Plan authorizes the Company's Board of Directors or the compensation committee of the Company's Board of Directors to grant restricted stock, restricted stock units, stock appreciation rights, stock options and performance awards. There are 4.5 million shares of common stock reserved for issuance under the 2016 Plan. Restricted Stock Units The fair value of restricted stock unit awards was determined based on the fair market value of the Company's common stock on the date of the grant. This value is amortized over the vesting period. A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below. Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value Unvested shares as of January 1, 2018 640,632 $ 19.44 Granted 59,485 21.13 Vested (123,076 ) 21.23 Forfeited — — Unvested shares as of March 31, 2018 577,041 $ 19.21 As of March 31, 2018 , there was $9.6 million of total unrecognized compensation cost related to the unvested restricted stock. The cost is expected to be recognized over a weighted average period of approximately 2.0 years . Included in cost of revenue and selling, general and administrative expenses is stock-based compensation expense of $1.3 million and $0.6 million , respectively, for the three months ended March 31, 2018 and 2017 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions between the subsidiaries of the Company and the following companies are included in Related Party Transactions: Gulfport; Grizzly Oil Sands ULC (“Grizzly”); El Toro Resources LLC (“El Toro”); Cementing and SR Energy (collectively, prior to the 2017 Stingray Acquisition, the “2017 Stingray Companies”); Everest Operations Management LLC (“Everest”); Elk City Yard LLC (“Elk City Yard”); Double Barrel Downhole Technologies LLC (“DBDHT”); Caliber Investment Group LLC (“Caliber”); Dunvegan North Oilfield Services ULC (“Dunvegan”); Predator Drilling LLC (“Predator”); and T&E Flow Services LLC (“T&E”). Following is a summary of related party transactions (in thousands): REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2018 2017 2018 2017 Pressure Pumping and Gulfport (a) $ 38,546 $ 31,746 $ 26,367 $ 25,054 Muskie and Gulfport (b) 11,462 11,541 9,509 1,947 Panther Drilling and Gulfport (c) 56 1,042 14 872 Cementing and Gulfport (d) 2,828 — 2,058 2,255 SR Energy and Gulfport (e) 6,953 — 7,758 3,348 Panther Drilling and El Toro (f) 345 — 135 — Redback Energy and El Toro (g) — 124 — — — Coil Tubing and El Toro (h) 360 — 360 — Bison Drilling and Predator (i) — — 83 234 Other Relationships — 49 54 78 $ 60,550 $ 44,502 $ 46,338 $ 33,788 a. Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport. b. Muskie has agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. c. Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. d. Cementing performs well cementing services for Gulfport. e. SR Energy performs rental services for Gulfport. f. The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. g. Redback Energy performs completion and production services for El Toro pursuant to a master service agreement. h. Coil Tubing provides to El Toro services in connection with completion and drilling activities. i. Bison Drilling provides equipment rentals to Predator, an entity in which Wexford owns a minority interest. COST OF REVENUE ACCOUNTS PAYABLE Three Months Ended March 31, At March 31, At December 31, 2018 2017 2018 2017 Cobra and T&E (a) $ 1,275 $ — $ 50 $ 457 Higher Power and T&E (a) 509 — 563 3 Panther and DBDHT (b) — 128 — 77 The Company and 2017 Stingray Companies (c) — 237 — — Other 8 65 8 218 $ 1,792 $ 430 $ 621 $ 755 SELLING, GENERAL AND ADMINISTRATIVE COSTS The Company and Everest (d) $ 31 $ 58 $ 16 $ 19 The Company and Wexford (e) 183 234 109 150 The Company and Caliber (f) 201 — 58 1 Other 14 32 — 2 $ 429 $ 324 $ 183 $ 172 CAPITAL EXPENDITURES Cobra and T&E (a) $ 374 $ — $ 323 $ 66 Higher Power and T&E (a) 1,198 — 1,101 385 $ 1,572 $ — $ 1,424 $ 451 $ 2,228 $ 1,378 a. Cobra and Higher Power purchase materials and services from T&E, an entity in which a member of management's family owns a minority interest. b. Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. c. Prior to the 2017 Stingray Acquisition, the 2017 Stingray Companies provided certain services to the Company and, from time to time, the 2017 Stingray Companies paid for goods and services on behalf of the Company. d. Everest has historically provided office space and certain technical, administrative and payroll services to the Company and the Company has reimbursed Everest in amounts determined by Everest based on estimates of the amount of office space provided and the amount of employees’ time spent performing services for the Company. e. Wexford provides certain administrative and analytical services to the Company and, from time to time, the Company pays for goods and services on behalf of Wexford. f. Caliber leases office space to Mammoth. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company leases real estate, rail cars and other equipment under long-term operating leases with varying terms and expiration dates through 2062. Minimum Purchase Commitments The Company has entered into agreements with suppliers that contain minimum purchase obligations. Failure to purchase the minimum amounts may require the Company to pay shortfall fees. However, the minimum quantities set forth in the agreements are not in excess of currently expected future requirements. Capital Spend Commitments The Company has entered into agreements with suppliers to acquire capital equipment. Aggregate future minimum payments under these obligations in effect at March 31, 2018 are as follows (in thousands): Year ended December 31: Operating Leases Capital Spend Commitments Minimum Purchase Commitments Remainder of 2018 $ 16,556 $ 20,183 $ 25,656 2019 15,651 — 11,436 2020 13,474 — — 2021 10,911 — — 2022 8,285 — — Thereafter 6,340 — — $ 71,217 $ 20,183 $ 37,092 For the three months ended March 31, 2018 and 2017 , the Company recognized rent expense of $4.5 million and $2.0 million , respectively. The Company has various letters of credit that were issued under the Company's revolving credit agreement which is collateralized by substantially all of the assets of the Company. The letters of credit are categorized below (in thousands): March 31, December 31, 2018 2017 Environmental remediation $ 3,582 $ 3,582 Insurance programs 2,486 2,486 Rail car commitments 455 455 Total letters of credit $ 6,523 $ 6,523 The Company has insurance coverage for physical partial loss to its assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. The Company has also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies. As of March 31, 2018 and December 31, 2017 , the policies require a deductible per occurrence of up to $0.3 million . The Company establishes liabilities for the unpaid deductible portion of claims incurred relating to physical loss to its assets, employer's liability, automobile liability, commercial general liability and workers’ compensation based on estimates. As of March 31, 2018 and December 31, 2017 , the policies contained an aggregate stop loss of $2.0 million . The Company also self-insures its employee health insurance. The Company has coverage on its self-insurance program in the form of a stop loss of $0.2 million per participant and an aggregate stop-loss of $5.8 million for the calendar year ending December 31, 2018. These estimates may change in the near term as actual claims continue to develop. As of March 31, 2018 and December 31, 2017 , accrued insurance claims were $3.7 million and $2.9 million , respectively. Pursuant to certain customer contracts in our infrastructure services segment, the Company warrants equipment and labor performed under the contracts for a specified period following substantial completion of the work. Generally, the warranty is for one year or less. No liabilities were accrued as of March 31, 2018 and December 31, 2017 and no expense was recognized during the three months ended March 31, 2018 or 2017 related to warranty claims. However, if warranty claims occur, the Company could be required to repair or replace warrantied items, which in most cases are covered by warranties extended from the manufacturer of the equipment. In the event the manufacturer of equipment failed to perform on a warranty obligation or denied a warranty claim made by the Company, the Company could be required to pay for the cost of the repair or replacement. The Company is routinely involved in state and local tax audits. During 2015, the State of Ohio assessed taxes on the purchase of equipment the Company believes is exempt under state law. The Company appealed the assessment and a hearing was held in 2017. As a result of the hearing, the Company received a decision from the State of Ohio. The Company is appealing the decision and while it is not able to predict the outcome of the appeal, this matter is not expected to have a material adverse effect on the Company's financial position, results of operations or cash flows. On August 1, 2016, a putative class and collective action lawsuit alleging that Energy Services failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act and Texas law was filed titled Michael Caffey, individually and on behalf of all others similarly situated v. Redback Energy Services LLC in the U.S. District Court for the Western District of Texas. The Company is evaluating the background facts and at this time is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. On January 26, 2017, a collective action lawsuit alleging that Pressure Pumping failed to pay a class of workers in compliance with the Fair Labor Standards Act was filed titled Ryan Crosby vs. Stingray Pressure Pumping, in the United Stated District Court for the Southern District of Ohio Eastern Division. The Company is evaluating the background facts at this time and is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. On June 27, 2017, a complaint alleging negligence, as a result of a motor vehicle accident, was filed titled Donnelle Banks, individually and as parent and next Friend for Leila Ann Hollis, a minor, vs. Redback Coil Tubing LLC and Mammoth Energy Services, Inc. in the District Court of Gregg County, Texas. The Company is evaluating the background facts and at this time is not able to predict the outcome of this lawsuit or whether it will have a material impact on the Company’s financial position, results of operations or cash flows. The Company is involved in various other legal proceedings in the ordinary course of business. Although the Company cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. Defined contribution plan The Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at their date of hire. The plan allows eligible employees to contribute up to 92% of their annual compensation, not to exceed annual limits established by the federal government. The Company makes discretionary matching contributions of up to 3% of an employee’s compensation and may make additional discretionary contributions for eligible employees. For the three months ended March 31, 2018 , the Company paid $1.6 million in contributions to the plan. The Company did not make contributions to the plan during the three months ended March 31, 2017. |
Reporting Segments
Reporting Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reporting Segments | Reporting Segments As of March 31, 2018 , our revenues, income before income taxes and identifiable assets are primarily attributable to four reportable segments. The Company principally provides energy services in connection with on-shore drilling of oil and natural gas wells for small to large domestic independent oil and natural gas producers and electric infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities. The Company's Chief Executive Officer and Chief Financial Officer comprise the Company's Chief Operating Decision Maker function ("CODM"). Segment information is prepared on the same basis that the CODM manages the segments, evaluates the segment financial statements and makes key operating and resource utilization decisions. Segment evaluation is determined on a quantitative basis based on a function of operating income (loss), as well as a qualitative basis, such as nature of the product and service offerings and types of customers. As of March 31, 2018 , the Company’s four reportable segments include pressure pumping services ("Pressure Pumping"), infrastructure services ("Infrastructure"), natural sand proppant services ("Sand") and contract land and directional drilling services ("Drilling"). The pressure pumping services segment provides hydraulic fracturing services primarily in the Utica Shale of Eastern Ohio, Marcellus Shale in Pennsylvania, Permian Basin in Texas and the mid-continent region in Oklahoma. The infrastructure services segment provides electric utility infrastructure services to government-funded utilities, private utilities, public investor-owned utilities and co-operative utilities in Puerto Rico and the northeast, southwest and midwest portions of the United States. The sand segment mines, processes and sells sand for use in hydraulic fracturing. The sand segment primarily services the Utica Shale, Permian Basin, SCOOP, STACK and Montney Shale in British Columbia and Alberta, Canada. The contract land and directional drilling services segment provides vertical, horizontal and directional drilling services in the Permian Basin in West Texas. The Company also provides coil tubing services, pressure control services, flowback services, cementing services, equipment rental services and remote accommodation services. The businesses that provide these services are distinct operating segments, which the CODM reviews independently when making key operating and resource utilization decisions. None of these operating segments meet the quantitative thresholds of a reporting segment and do not meet the aggregation criteria set forth in ASC 280 Segment Reporting. Therefore, results for these operating segments are included in the column labeled "All Other" in the tables below. Additionally, assets for corporate activities, which primarily include cash and cash equivalents, inter-segment accounts receivable, prepaid insurance and certain property and equipment, are included in the All Other column. Although Mammoth LLC, which holds these corporate assets, meets one of the quantitative thresholds of a reporting segment, it does not engage in business activities from which it may earn revenues and its results are not regularly reviewed by the Company's CODM when making key operating and resource utilization decisions. Therefore, the Company does not include it as a reportable segment. Sales from one segment to another are generally priced at estimated equivalent commercial selling prices. Total revenue and Total cost of revenue amounts included in the Eliminations column in the following tables include inter-segment transactions conducted between segments. Receivables due for sales from one segment to another and for corporate allocations to each segment are included in the Eliminations column for Total assets in the following tables. All transactions conducted between segments are eliminated in consolidation. Transactions conducted by companies within the same reporting segment are eliminated within each reporting segment. The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands): Three months ended March 31, 2018 Pressure Pumping Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $ 96,579 $ 325,459 $ 36,503 $ 15,228 $ 20,480 $ — $ 494,249 Intersegment revenues 4,559 — 14,512 2 2,415 (21,488 ) — Total revenue 101,138 325,459 51,015 15,230 22,895 (21,488 ) 494,249 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 66,612 194,076 33,330 14,475 17,608 — 326,101 Intersegment cost of revenues 15,402 1,791 4,286 162 105 (21,746 ) — Total cost of revenue 82,014 195,867 37,616 14,637 17,713 (21,746 ) 326,101 Selling, general and administrative 2,663 31,851 1,644 1,253 1,100 — 38,511 Depreciation, depletion, amortization and accretion 13,986 2,407 2,316 4,355 3,844 — 26,908 Operating income (loss) 2,475 95,334 9,439 (5,015 ) 238 258 102,729 Interest expense 504 76 80 395 182 — 1,237 Other expense 12 2 (13 ) 40 (13 ) — 28 Income (loss) before income taxes $ 1,959 $ 95,256 $ 9,372 $ (5,450 ) $ 69 $ 258 $ 101,464 As of March 31, 2018: Total assets (a) $ 291,070 $ 225,922 $ 200,068 $ 88,821 $ 191,523 $ (96,319 ) $ 901,085 a. Total assets included in the All Other column include Mammoth LLC corporate assets totaling $88.1 million , of which $74.4 million are inter-segment accounts receivable which are eliminated in consolidation. Three months ended March 31, 2017 Pressure Pumping Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $ 40,453 $ — $ 14,912 $ 10,751 $ 8,850 $ — $ 74,966 Intersegment revenues 187 — 685 — — (872 ) — Total revenue 40,640 — 15,597 10,751 8,850 (872 ) 74,966 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 28,707 86 12,608 10,953 6,144 — 58,498 Intersegment cost of revenues 685 — 187 — — (872 ) — Total cost of revenue 29,392 86 12,795 10,953 6,144 (872 ) 58,498 Selling, general and administrative 1,777 48 2,058 1,293 1,561 — 6,737 Depreciation, depletion, amortization and accretion 9,158 — 1,363 4,968 1,748 — 17,237 Operating income (loss) 313 (134 ) (619 ) (6,463 ) (603 ) — (7,506 ) Interest expense 128 — 133 217 (81 ) — 397 Other expense 3 — 14 164 3 — 184 Income (loss) before income taxes $ 182 $ (134 ) $ (766 ) $ (6,844 ) $ (525 ) $ — $ (8,087 ) As of March 31, 2017: Total assets $ 229,231 $ — $ 131,437 $ 97,839 $ 172,005 $ (115,089 ) $ 515,423 a. Total assets included in the All Other column include Mammoth LLC corporate assets totaling $106.4 million , of which $94.1 million are inter-segment accounts receivable which are eliminated in consolidation. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to March 31, 2018 , the Company entered into rail car, property and equipment lease agreements with aggregate commitments of $12.0 million . Subsequent to March 31, 2018 , the Company ordered additional capital equipment with aggregate commitments of $20.1 million and additional coil tubing string totaling $3.7 million . Subsequent to March 31, 2018 , subsidiaries in the Company's infrastructure segment entered into air charter agreements with aggregate commitments of $6.1 million , housing service agreements with aggregate commitments of $3.8 million and a medical service agreement with aggregate commitments of $0.2 million for services in Puerto Rico. |
Basis of Presentation and Sig26
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K. On June 5, 2017, the Company acquired Sturgeon Acquisitions LLC ("Sturgeon") and Sturgeon's wholly owned subsidiaries Taylor Frac, LLC, Taylor Real Estate Investments, LLC and South River Road, LLC. Prior to its acquisition of Sturgeon, the Company and Sturgeon were under common control and it is required under GAAP to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Therefore, the Company's historical financial information for all periods included in the accompanying financial statements has been recast to combine Sturgeon with the Company as if the acquisition had been effective since the date Sturgeon commenced operations. |
Accounts Receivable | Accounts Receivable Accounts receivable include amounts due from customers for services performed and are recorded as the work progresses. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Most areas in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. The Company regularly reviews receivables and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial conditions of customers change, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company was to determine that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once final determination is made of their uncollectability. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments consist of cash and cash equivalents, trade receivables, trade payables and amounts receivable or payable to related parties. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the FASB issued ASU No, 2016-2 “Leases” amending the current accounting for leases. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) a financing lease or (ii) an operating lease. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. For sale leaseback transactions, a sale will only be recognized if the criteria in the new revenue recognition standard are met. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. The Company plans to adopt this ASU effective January 1, 2019 utilizing the modified retrospective method of adoption. This new leasing guidance will impact the Company in situations where it is the lessee, and in certain circumstances it will have a right-of-use asset and lease liability on its consolidated financial statements. The Company is currently evaluating the effect the new guidance will have on the Company's consolidated financial statements and results of operations. |
Revenues | Adoption of ASC 606 "Revenues from Contracts with Customers" In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers ,” which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition , and most industry-specific guidance. The new guidance requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. On January 1, 2018, the Company adopted ASU 2014-09 and its related amendments (collectively, "ASC 606") using the modified retrospective method applied to contracts which were not completed as of January 1, 2018. Revenues for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts continue to be reported under previous revenue recognition guidance. While ASC 606 requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, its adoption has not had a material impact on the measurement or recognition of the Company's revenues. The adoption of ASC 606 represents a change in accounting principle. After evaluation of all contracts not completed as of January 1, 2018, the Company determined the cumulative effect of adopting ASC 606 was immaterial, and as such, has not recorded an adjustment to the opening balance of retained earnings on January 1, 2018. Pressure Pumping Services Pressure pumping services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for pressure pumping services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized over time upon the completion of each day’s work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and personnel. Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods and services are consumed. Infrastructure Services Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). The Company accounts for infrastructure services as a single performance obligation satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Natural Sand Proppant Services The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal. Certain of the Company's sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management's knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer's inability to take delivery of excess volumes. During the three months ended March 31, 2018, the Company did no t recognize any material revenue or liabilities related to shortfall payments. In certain of the Company's sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities. Contract Land and Directional Drilling Services Contract drilling services are provided under daywork contracts. Directional drilling services are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs are recognized over the days of actual drilling. Other Services The Company also provides coil tubing, pressure control, flowback, cementing, equipment rentals and remote accommodations services, which are reported under other services. These services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation. |
Inventories | Inventories Inventory consists of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or market (net realizable value) on an average cost basis. |
Organization and Nature of Bu27
Organization and Nature of Business (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of ownership of the company by major stakeholders | At March 31, 2018 and December 31, 2017 , Mammoth Holdings (and certain of its affiliates), Gulfport and Rhino owned the following share of outstanding common stock of Mammoth Inc.: At March 31, 2018 At December 31, 2017 Share Count % Ownership Share Count % Ownership Mammoth Holdings 25,009,319 55.9 % 25,009,319 56.1 % Gulfport 11,171,887 25.0 % 11,171,887 25.1 % Rhino 336,447 0.8 % 568,794 1.3 % Outstanding shares owned by related parties 36,517,653 81.7 % 36,750,000 82.5 % Total outstanding 44,714,296 100.0 % 44,589,306 100.0 % |
Basis of Presentation and Sig28
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of allowance for doubtful accounts receivable | Following is a roll forward of the allowance for doubtful accounts for the year ended December 31, 2017 and the three months ended March 31, 2018 (in thousands): Balance, January 1, 2017 $ 5,377 Additions charged to expense 16,206 Additions other 179 Deductions for uncollectible receivables written off (25 ) Balance, December 31, 2017 21,737 Additions charged to expense 25,541 Deductions for uncollectible receivables written off (14 ) Balance, March 31, 2018 $ 47,264 |
Schedules of concentration of risk | Following is a summary of our significant customers based on percentages of total accounts receivable balances at March 31, 2018 and December 31, 2017 and percentages of total revenues derived for the three months ended March 31, 2018 and 2017 : REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2018 2017 2018 2017 Customer A (a) 64 % — % 52 % 56 % Customer B (b) 12 % 59 % 16 % 12 % a. Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company's infrastructure services segment. b. Customer B is a related party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company's pressure pumping services segment, natural sand proppant services segment, contract land and directional drilling services segment and other businesses. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions by acquisition, consideration transferred | On the acquisition date, the $36.3 million in cash consideration consisted of the following components (in thousands): Total Property, plant and equipment (1) $ 23,373 Sand reserves (2) 20,910 Total assets acquired $ 44,283 Asset retirement obligation 1,732 Total liabilities assumed $ 1,732 Total allocation of purchase price $ 42,551 Bargain purchase price (3, 4) (6,231 ) Total purchase price $ 36,320 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) The fair value of the sand reserves was determined based on the excess cash flow method, a form of the income approach. The method provides a value based on the estimated remaining life of sand reserves, projected financial information and industry projections. (3) Amount reflected in Condensed Consolidated Statements of Comprehensive Loss reflected net of income taxes of $2.2 million . (4) The fair value of the business was determined based on the excess cash flow method, a form of the income approach. At the acquisition date, the components of the consideration transferred were as follows (in thousands): Consideration attributable to Cementing (1) $ 12,975 Consideration attributable to SR Energy (1) 12,787 Total consideration transferred $ 25,762 (1) See Summary of acquired assets and liabilities below The following table summarizes the fair value of Higher Power as of April 21, 2017 (in thousands): Higher Power Property, plant and equipment $ 1,744 Identifiable intangible assets - customer relationships 1,613 Goodwill (1) 643 Total assets acquired $ 4,000 (1) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability expected to arise from the acquired entity. |
Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the fair value of 5 Star as of July 1, 2017 (in thousands): 5 Star Accounts receivable $ 2,440 Property, plant and equipment 1,863 Identifiable intangible assets - trade names (1) 300 Goodwill (2) 248 Total assets acquired $ 4,851 Long-term debt and other liabilities $ 2,413 Total liabilities assumed $ 2,413 Net assets acquired $ 2,438 (1) Identifiable intangible assets were measured using a combination of income approaches. Trade names were valued using a "Relief-from-Royalty" method. Identifiable intangible assets will be amortized over 10 years. (2) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability expected to arise from the acquired entity. See Summary of acquired assets and liabilities below SR Energy Cementing Total (in thousands) Cash and cash equivalents $ 1,611 $ 1,060 $ 2,671 Accounts receivable, net 3,913 495 4,408 Receivables from related parties 3,684 1,418 5,102 Inventories — 306 306 Prepaid expenses 35 32 67 Property, plant and equipment (1) 13,061 7,459 20,520 Identifiable intangible assets - customer relationships (2) — 1,140 1,140 Identifiable intangible assets - trade names (2) 550 270 820 Goodwill (3) 3,929 6,264 10,193 Other assets 7 — 7 Total assets acquired $ 26,790 $ 18,444 $ 45,234 Accounts payable and accrued liabilities $ 5,890 $ 2,063 $ 7,953 Long-term debt (4) 5,074 2,000 7,074 Deferred tax liability 3,039 1,406 4,445 Total liabilities assumed $ 14,003 $ 5,469 $ 19,472 Net assets acquired $ 12,787 $ 12,975 $ 25,762 (1) Property, plant and equipment fair value measurements were prepared by utilizing a combined fair market value and cost approach. The market approach relies on comparability of assets using market data information. The cost approach places emphasis on the physical components and characteristics of the asset. It places reliance on estimated replacement cost, depreciation and economic obsolescence. (2) Identifiable intangible assets were measured using a combination of income approaches. Trade names were valued using a "Relief-from-Royalty" method. Non-contractual customer relationships were valued using a "Multi-period excess earnings" method. Identifiable intangible assets will be amortized over 5 - 10 years. (3) Goodwill was the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill recorded in connection with the acquisition is attributable to assembled workforces and future profitability based on the synergies expected to arise from the acquired entities. (4) Long-term debt assumed was paid off subsequent to the acquisitions. |
Business acquisition, pro forma information | From its acquisition date through March 31, 2018 , 5 Star has provided the following activity (in thousands): 2018 2017 Revenues (a) $ 37,745 $ 25,216 Net income (b) 16,624 4,191 a. Includes intercompany revenues of $34.4 million and $16.0 million , respectively, for 2018 and 2017 b. Includes depreciation and amortization expense of $0.5 million and $0.8 million , respectively, for 2018 and 2017 The following table presents unaudited pro forma information as if the acquisition of 5 Star had occurred as of January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ 3,314 Net loss (164 ) From its acquisition date through March 31, 2018 , Higher Power has provided the following activity (in thousands): 2018 2017 Revenues (a) $ 55,156 $ 39,571 Net income (b) 22,373 5,127 a. Includes intercompany revenues of $51.5 million and $27.4 million , respectively for 2018 and 2017 b. Includes depreciation and amortization expense of $1.1 million and $2.0 million , respectively, for 2018 and 2017 The following table presents unaudited pro forma information as if the acquisition of Higher Power had occurred as of January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ 2,226 Net loss (163 ) Since the acquisition date, the businesses acquired have provided the following activity (in thousands): 2018 2017 SR Energy Cementing SR Energy Cementing Revenues (a) $ 8,890 $ 2,851 $ 11,572 $ 7,500 Net loss (b) (481 ) (478 ) (1,626 ) (1,963 ) a. Includes intercompany revenues of $0.7 million for SR Energy in 2018 and $0.6 million and a nominal amount for SR Energy and Cementing in 2017 b. Includes depreciation and amortization expense of $1.5 million and $0.6 million , respectively, for SR Energy and Cementing in 2018 and $3.4 million and $4.1 million , respectively, for SR Energy and Cementing in 2017 The following table presents unaudited pro forma information as if the acquisition of SR Energy and Cementing had occurred on January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ 8,753 Net loss (613 ) Since the acquisition date, the Chieftain Assets have provided the following activity (in thousands): 2018 2017 Revenues (a) $ 19,735 $ 22,847 Net income (b) 5,791 5,520 a. Includes intercompany revenues of $8.8 million and $12.3 million , respectively, for 2018 and 2017 b. Includes depreciation, depletion, amortization and accretion of $1.0 million and $2.8 million , respectively, for 2018 and 2017 The following table presents unaudited pro forma information as if the acquisition of the Chieftain Assets had occurred as of January 1, 2017 (in thousands): Three Months Ended March 31, 2017 Revenues $ — Net loss (698 ) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenues by service or product line | The following table presents revenues disaggregated by service line (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Revenue: Pressure pumping services $ 101,138 $ 40,640 Infrastructure services 325,459 — Natural sand proppant services 51,015 15,597 Contract land and directional drilling services 15,230 10,751 Other services 22,895 8,850 Eliminations (21,488 ) (872 ) Total revenue 494,249 74,966 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | A summary of the Company's inventories is shown below (in thousands): March 31, December 31, 2018 2017 Supplies $ 8,069 $ 9,437 Raw materials 224 219 Work in process 197 2,370 Finished goods 3,699 5,788 Total inventory $ 12,189 $ 17,814 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment include the following (in thousands): March 31, December 31, Useful Life 2018 2017 Pressure pumping equipment 3-5 years $ 196,428 $ 190,211 Drilling rigs and related equipment 3-15 years 135,410 132,260 Machinery and equipment (a) 7-20 years 115,019 97,569 Buildings 15-39 years 45,138 45,992 Vehicles, trucks and trailers (b) 5-10 years 62,168 54,055 Coil tubing equipment 4-10 years 28,068 28,053 Land N/A 11,794 11,317 Land improvements 15 years or life of lease 9,614 9,614 Rail improvements 10-20 years 8,865 5,540 Other property and equipment 3-12 years 13,613 12,687 626,117 587,298 Deposits on equipment and equipment in process of assembly 20,062 20,348 646,179 607,646 Less: accumulated depreciation (c) 280,422 256,629 Property, plant and equipment, net $ 365,757 $ 351,017 a. Included in machinery and equipment are assets under capital leases totaling $1.8 million and $1.8 million , respectively, at March 31, 2018 and December 31, 2017 . b. Included in vehicles, trucks and trailers are assets under capital leases totaling $2.0 million and $1.0 million , respectively, at March 31, 2018 and December 31, 2017 . c. Accumulated depreciation for assets under capital leases totaled $0.8 million and $0.8 million , respectively, at March 31, 2018 and December 31, 2017 . |
Schedule of depreciation, depletion, accretion and amortization expense | A summary of depreciation, depletion, amortization and accretion expense is below (in thousands): Three Months Ended March 31, 2018 2017 Depreciation expense (a) $ 24,398 $ 14,967 Depletion expense 87 2 Amortization expense 2,408 2,268 Accretion expense 15 — Depreciation, depletion, amortization and accretion $ 26,908 $ 17,237 a. Includes depreciation expense for assets under capital leases totaling $0.1 million and $0.1 million , respectively, for the three months ended March 31, 2018 and 2017. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The Company had the following definite lived intangible assets recorded (in thousands): March 31, December 31, 2018 2017 Customer relationships $ 35,795 $ 35,795 Trade names 8,793 8,793 Less: accumulated amortization - customer relationships (28,359 ) (26,172 ) Less: accumulated amortization - trade names (2,497 ) (2,277 ) Intangible assets, net $ 13,732 $ 16,139 |
Schedule of finite-lived intangible assets, future amortization expense | Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands): Amount Remainder of 2018 $ 6,278 2019 1,168 2020 1,168 2021 1,162 2022 1,140 Thereafter 2,816 $ 13,732 |
Schedule of goodwill | Changes in the goodwill for the year ended December 31, 2017 and the three months ended March 31, 2018 are set forth below (in thousands): Balance, January 1, 2017 $ 88,727 Additions - 2017 Stingray Acquisition (Note 3) 10,193 Additions - Higher Power Acquisition (Note 3) 643 Additions - 5 Star Acquisition (Note 3) 248 Balance, December 31, 2017 99,811 Additions — Balance, March 31, 2018 $ 99,811 |
Accrued Expenses and Other Cu34
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued liabilities | Accrued expense and other current liabilities included the following (in thousands): March 31, December 31, 2018 2017 Deferred revenue 15,019 15,210 Accrued compensation, benefits and related taxes 15,593 11,552 Financed insurance premiums 3,263 4,876 Insurance reserves 3,695 2,942 State and local taxes payable 2,080 2,126 Other 3,269 4,189 Total $ 42,919 $ 40,895 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other liabilities | Other liabilities included the following (in thousands): March 31, December 31, 2018 2017 Capital lease obligations $ 3,174 $ 2,015 Equipment financing arrangement 1,509 1,605 Other 500 500 Total 5,183 4,120 Less: Current portion of capital lease and equipment financing obligations included in accrued expenses and other current liabilities (1,184 ) (831 ) Total Other Liabilities $ 3,999 $ 3,289 |
Schedule of future minimum lease payments for capital leases | Aggregate future payments under the Company's non-cancelable capital leases and equipment financing arrangement as of March 31, 2018 are as follows (in thousands): 2018 $ 1,083 2019 1,994 2020 1,105 2021 442 2022 360 Total future minimum payments 4,984 Less interest payments (301 ) Present value of future minimum payments $ 4,683 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The components of income tax (benefit) expense attributable to the Company for the three months ended March 31, 2018 and 2017 , are as follows (in thousands): Three Months Ended March 31, 2018 2017 Foreign current income tax expense $ 58,047 $ 585 Foreign deferred income tax benefit (10,120 ) (6 ) U.S. current income tax benefit (12 ) — U.S. deferred income tax benefit (1,997 ) (3,685 ) Total $ 45,918 $ (3,106 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per unit | Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the table below (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Basic earnings (loss) per share: Allocation of earnings: Net income (loss) $ 55,546 $ (4,981 ) Weighted average common shares outstanding 44,650 37,500 Basic earnings (loss) per share $ 1.24 $ (0.13 ) Diluted earnings (loss) per share: Allocation of earnings (loss): Net income (loss) $ 55,546 $ (4,981 ) Weighted average common shares, including dilutive effect (a) 44,884 37,500 Diluted earnings (loss) per share $ 1.24 $ (0.13 ) a. No incremental shares of potentially dilutive restricted stock awards were included for the three months ended March 31, 2017 as their effect was antidulitive under the treasury stock method. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, restricted stock and restricted stock units activity | A summary of the status and changes of the unvested shares of restricted stock under the 2016 Plan is presented below. Number of Unvested Restricted Shares Weighted Average Grant-Date Fair Value Unvested shares as of January 1, 2018 640,632 $ 19.44 Granted 59,485 21.13 Vested (123,076 ) 21.23 Forfeited — — Unvested shares as of March 31, 2018 577,041 $ 19.21 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Following is a summary of related party transactions (in thousands): REVENUES ACCOUNTS RECEIVABLE Three Months Ended March 31, At March 31, At December 31, 2018 2017 2018 2017 Pressure Pumping and Gulfport (a) $ 38,546 $ 31,746 $ 26,367 $ 25,054 Muskie and Gulfport (b) 11,462 11,541 9,509 1,947 Panther Drilling and Gulfport (c) 56 1,042 14 872 Cementing and Gulfport (d) 2,828 — 2,058 2,255 SR Energy and Gulfport (e) 6,953 — 7,758 3,348 Panther Drilling and El Toro (f) 345 — 135 — Redback Energy and El Toro (g) — 124 — — — Coil Tubing and El Toro (h) 360 — 360 — Bison Drilling and Predator (i) — — 83 234 Other Relationships — 49 54 78 $ 60,550 $ 44,502 $ 46,338 $ 33,788 a. Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport. b. Muskie has agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. c. Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. d. Cementing performs well cementing services for Gulfport. e. SR Energy performs rental services for Gulfport. f. The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. g. Redback Energy performs completion and production services for El Toro pursuant to a master service agreement. h. Coil Tubing provides to El Toro services in connection with completion and drilling activities. i. Bison Drilling provides equipment rentals to Predator, an entity in which Wexford owns a minority interest. COST OF REVENUE ACCOUNTS PAYABLE Three Months Ended March 31, At March 31, At December 31, 2018 2017 2018 2017 Cobra and T&E (a) $ 1,275 $ — $ 50 $ 457 Higher Power and T&E (a) 509 — 563 3 Panther and DBDHT (b) — 128 — 77 The Company and 2017 Stingray Companies (c) — 237 — — Other 8 65 8 218 $ 1,792 $ 430 $ 621 $ 755 SELLING, GENERAL AND ADMINISTRATIVE COSTS The Company and Everest (d) $ 31 $ 58 $ 16 $ 19 The Company and Wexford (e) 183 234 109 150 The Company and Caliber (f) 201 — 58 1 Other 14 32 — 2 $ 429 $ 324 $ 183 $ 172 CAPITAL EXPENDITURES Cobra and T&E (a) $ 374 $ — $ 323 $ 66 Higher Power and T&E (a) 1,198 — 1,101 385 $ 1,572 $ — $ 1,424 $ 451 $ 2,228 $ 1,378 a. Cobra and Higher Power purchase materials and services from T&E, an entity in which a member of management's family owns a minority interest. b. Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. c. Prior to the 2017 Stingray Acquisition, the 2017 Stingray Companies provided certain services to the Company and, from time to time, the 2017 Stingray Companies paid for goods and services on behalf of the Company. d. Everest has historically provided office space and certain technical, administrative and payroll services to the Company and the Company has reimbursed Everest in amounts determined by Everest based on estimates of the amount of office space provided and the amount of employees’ time spent performing services for the Company. e. Wexford provides certain administrative and analytical services to the Company and, from time to time, the Company pays for goods and services on behalf of Wexford. f. Caliber leases office space to Mammoth. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Aggregate future minimum payments under these obligations in effect at March 31, 2018 are as follows (in thousands): Year ended December 31: Operating Leases Capital Spend Commitments Minimum Purchase Commitments Remainder of 2018 $ 16,556 $ 20,183 $ 25,656 2019 15,651 — 11,436 2020 13,474 — — 2021 10,911 — — 2022 8,285 — — Thereafter 6,340 — — $ 71,217 $ 20,183 $ 37,092 |
Schedule of letters of credit | The letters of credit are categorized below (in thousands): March 31, December 31, 2018 2017 Environmental remediation $ 3,582 $ 3,582 Insurance programs 2,486 2,486 Rail car commitments 455 455 Total letters of credit $ 6,523 $ 6,523 |
Reporting Segments (Tables)
Reporting Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables set forth certain financial information with respect to the Company’s reportable segments (in thousands): Three months ended March 31, 2018 Pressure Pumping Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $ 96,579 $ 325,459 $ 36,503 $ 15,228 $ 20,480 $ — $ 494,249 Intersegment revenues 4,559 — 14,512 2 2,415 (21,488 ) — Total revenue 101,138 325,459 51,015 15,230 22,895 (21,488 ) 494,249 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 66,612 194,076 33,330 14,475 17,608 — 326,101 Intersegment cost of revenues 15,402 1,791 4,286 162 105 (21,746 ) — Total cost of revenue 82,014 195,867 37,616 14,637 17,713 (21,746 ) 326,101 Selling, general and administrative 2,663 31,851 1,644 1,253 1,100 — 38,511 Depreciation, depletion, amortization and accretion 13,986 2,407 2,316 4,355 3,844 — 26,908 Operating income (loss) 2,475 95,334 9,439 (5,015 ) 238 258 102,729 Interest expense 504 76 80 395 182 — 1,237 Other expense 12 2 (13 ) 40 (13 ) — 28 Income (loss) before income taxes $ 1,959 $ 95,256 $ 9,372 $ (5,450 ) $ 69 $ 258 $ 101,464 As of March 31, 2018: Total assets (a) $ 291,070 $ 225,922 $ 200,068 $ 88,821 $ 191,523 $ (96,319 ) $ 901,085 a. Total assets included in the All Other column include Mammoth LLC corporate assets totaling $88.1 million , of which $74.4 million are inter-segment accounts receivable which are eliminated in consolidation. Three months ended March 31, 2017 Pressure Pumping Infrastructure Sand Drilling All Other Eliminations Total Revenue from external customers $ 40,453 $ — $ 14,912 $ 10,751 $ 8,850 $ — $ 74,966 Intersegment revenues 187 — 685 — — (872 ) — Total revenue 40,640 — 15,597 10,751 8,850 (872 ) 74,966 Cost of revenue, exclusive of depreciation, depletion, amortization and accretion 28,707 86 12,608 10,953 6,144 — 58,498 Intersegment cost of revenues 685 — 187 — — (872 ) — Total cost of revenue 29,392 86 12,795 10,953 6,144 (872 ) 58,498 Selling, general and administrative 1,777 48 2,058 1,293 1,561 — 6,737 Depreciation, depletion, amortization and accretion 9,158 — 1,363 4,968 1,748 — 17,237 Operating income (loss) 313 (134 ) (619 ) (6,463 ) (603 ) — (7,506 ) Interest expense 128 — 133 217 (81 ) — 397 Other expense 3 — 14 164 3 — 184 Income (loss) before income taxes $ 182 $ (134 ) $ (766 ) $ (6,844 ) $ (525 ) $ — $ (8,087 ) As of March 31, 2017: Total assets $ 229,231 $ — $ 131,437 $ 97,839 $ 172,005 $ (115,089 ) $ 515,423 a. Total assets included in the All Other column include Mammoth LLC corporate assets totaling $106.4 million , of which $94.1 million are inter-segment accounts receivable which are eliminated in consolidation. |
Organization and Nature of Bu42
Organization and Nature of Business (Details) - $ / shares | Oct. 19, 2016 | Nov. 24, 2014 |
Operating Entities | ||
Business Acquisition [Line Items] | ||
Shares issued in acquisition (in shares) | 20,000,000 | |
IPO | ||
Business Acquisition [Line Items] | ||
Shares issued (in shares) | 7,750,000 | |
Sale of stock, price per share (in USD per share) | $ 15 | |
IPO | Mammoth Holdings, Gulfport and Rhino | ||
Business Acquisition [Line Items] | ||
Shares issued (in shares) | 250,000 |
Organization and Nature of Bu43
Organization and Nature of Business - Schedule of Ownership (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 44,714,296 | 44,589,306 |
% Ownership | 100.00% | 100.00% |
Mammoth Holdings | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 25,009,319 | 25,009,319 |
% Ownership | 55.90% | 56.10% |
Gulfport | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 11,171,887 | 11,171,887 |
% Ownership | 25.00% | 25.10% |
Rhino | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 336,447 | 568,794 |
% Ownership | 0.80% | 1.30% |
Outstanding shares owned by related parties | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Share Count (in shares) | 36,517,653 | 36,750,000 |
% Ownership | 81.70% | 82.50% |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance, Period Start | $ 21,737 | $ 5,377 |
Additions charged to expense | 25,541 | 16,206 |
Additions other | 179 | |
Deductions for uncollectible receivables written off | (14) | (25) |
Balance, Period End | 47,264 | 21,737 |
Oil And Natural Gas Industry | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Additions charged to expense | $ 100 | $ 200 |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Bad debt expense | $ 25,541 | $ 16,206 |
Oil And Natural Gas Industry | ||
Related Party Transaction [Line Items] | ||
Bad debt expense | 100 | 200 |
Puerto Rico Electric Power Authority (PREPA) | ||
Related Party Transaction [Line Items] | ||
Bad debt expense | $ 25,400 | $ 16,000 |
Basis of Presentation and Sig46
Basis of Presentation and Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) - Customer Concentration Risk | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Customer A | REVENUES | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 64.00% | 0.00% | ||
Customer A | ACCOUNTS RECEIVABLE | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 52.00% | 56.00% | ||
Customer B | REVENUES | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12.00% | 59.00% | ||
Customer B | ACCOUNTS RECEIVABLE | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 16.00% | 12.00% |
Acquisitions - Stingray Acquisi
Acquisitions - Stingray Acquisition Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 05, 2017USD ($)$ / sharesshares | Mar. 31, 2018$ / shares | Dec. 31, 2017USD ($)$ / shares | May 12, 2017agreement |
Business Acquisition [Line Items] | ||||
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Stingray Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of contribution agreements entered into | agreement | 2 | |||
Shares issued in acquisition (in shares) | shares | 1,392,548 | |||
Business acquisition, share price (in dollars per share) | $ / shares | $ 18.50 | |||
Purchase price | $ | $ 25,762 | |||
Transaction related costs expensed | $ | $ 200 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Practical expedients | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract term (greater than) | 1 year |
Acquisitions - Consideration Tr
Acquisitions - Consideration Transferred Stingray Acquisition (Details) $ in Thousands | Jun. 05, 2017USD ($) |
Cementing | |
Business Acquisition [Line Items] | |
Purchase price | $ 12,975 |
SR Energy | |
Business Acquisition [Line Items] | |
Purchase price | 12,787 |
Stingray Acquisitions | |
Business Acquisition [Line Items] | |
Purchase price | $ 25,762 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 494,249 | $ 74,966 | |
Revenues | 494,249 | 74,966 | [1] |
Pressure pumping services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 101,138 | 40,640 | |
Infrastructure services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 325,459 | 0 | |
Natural sand proppant services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 51,015 | 15,597 | |
Contract land and directional drilling services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 15,230 | 10,751 | |
Other services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22,895 | 8,850 | |
Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (21,488) | ||
Revenues | $ (21,488) | $ (872) | |
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed, Stingray (Details) - USD ($) $ in Thousands | Jun. 05, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 99,811 | $ 99,811 | $ 88,727 | |
Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 2 years 7 months 12 days | |||
Trade names | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 8 years 1 month 28 days | |||
SR Energy | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,611 | |||
Accounts receivable, net | 3,913 | |||
Receivables from related parties | 3,684 | |||
Inventories | 0 | |||
Prepaid expenses | 35 | |||
Property, plant and equipment | 13,061 | |||
Goodwill | 3,929 | |||
Other assets | 7 | |||
Total assets acquired | 26,790 | |||
Accounts payable and accrued liabilities | 5,890 | |||
Long-term debt | 5,074 | |||
Deferred tax liability | 3,039 | |||
Total liabilities assumed | 14,003 | |||
Net assets acquired | 12,787 | |||
SR Energy | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 0 | |||
SR Energy | Trade names | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 550 | |||
Cementing | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 1,060 | |||
Accounts receivable, net | 495 | |||
Receivables from related parties | 1,418 | |||
Inventories | 306 | |||
Prepaid expenses | 32 | |||
Property, plant and equipment | 7,459 | |||
Goodwill | 6,264 | |||
Other assets | 0 | |||
Total assets acquired | 18,444 | |||
Accounts payable and accrued liabilities | 2,063 | |||
Long-term debt | 2,000 | |||
Deferred tax liability | 1,406 | |||
Total liabilities assumed | 5,469 | |||
Net assets acquired | 12,975 | |||
Cementing | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,140 | |||
Cementing | Trade names | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 270 | |||
Stingray Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 2,671 | |||
Accounts receivable, net | 4,408 | |||
Receivables from related parties | 5,102 | |||
Inventories | 306 | |||
Prepaid expenses | 67 | |||
Property, plant and equipment | 20,520 | |||
Goodwill | 10,193 | |||
Other assets | 7 | |||
Total assets acquired | 45,234 | |||
Accounts payable and accrued liabilities | 7,953 | |||
Long-term debt | 7,074 | |||
Deferred tax liability | 4,445 | |||
Total liabilities assumed | 19,472 | |||
Net assets acquired | 25,762 | |||
Stingray Acquisitions | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,140 | |||
Stingray Acquisitions | Trade names | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 820 | |||
Minimum | Stingray Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 5 years | |||
Maximum | Stingray Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 10 years |
Revenues - Performance Obligati
Revenues - Performance Obligations and Contract Balances (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 15,000,000 | $ 15,000,000 |
Contract assets | 0 | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 86,400,000 | |
Contract term (greater than) | 3 years |
Acquisitions - Pro Forma Stingr
Acquisitions - Pro Forma Stingray Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
SR Energy | |||
Business Acquisition [Line Items] | |||
Revenues | $ 8,890 | $ 11,572 | |
Net loss | (481) | (1,626) | |
Depreciation | 1,500 | 3,400 | |
Cementing | |||
Business Acquisition [Line Items] | |||
Revenues | 2,851 | 7,500 | |
Net loss | (478) | (1,963) | |
Depreciation | 600 | 4,100 | |
Stingray Acquisitions | |||
Business Acquisition [Line Items] | |||
Revenues | 8,753 | ||
Net income | (613) | ||
Eliminations | SR Energy | |||
Business Acquisition [Line Items] | |||
Revenues | 700 | 0 | |
Eliminations | Cementing | |||
Business Acquisition [Line Items] | |||
Revenues | $ 600 | $ 0 | $ 1,000 |
Acquisitions - Chieftain Acquis
Acquisitions - Chieftain Acquisition Narrative (Details) - Chieftain Acquisition - USD ($) $ in Millions | May 24, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Cash paid to acquire a business | $ 36.3 | |
Transaction related costs expensed | $ 0.8 |
Acquisitions - Schedule of As55
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed Chieftrain Sand and Proppant LLC (Details) - Chieftain Acquisition $ in Thousands | May 24, 2017USD ($) |
Business Acquisition [Line Items] | |
Property, plant and equipment | $ 23,373 |
Sand reserves | 20,910 |
Total assets acquired | 44,283 |
Asset retirement obligation | 1,732 |
Total liabilities assumed | 1,732 |
Net assets acquired | 42,551 |
Bargain purchase gain, net of tax | (6,231) |
Total purchase price | 36,320 |
Bargain purchase, gain recognized, tax amount | $ 2,200 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information Chieftain Sand and Proppant LLC (Details) - Chieftain Acquisition - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 19,735 | $ 22,847 |
Net loss | 5,791 | 5,520 |
Depreciation | 1,000 | 2,800 |
Revenues | 0 | |
Net income | (698) | |
Eliminations | ||
Business Acquisition [Line Items] | ||
Revenues | $ 8,800 | $ 12,300 |
Acquisitions - Narrative Sturge
Acquisitions - Narrative Sturgeon Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 05, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 | |
Sturgeon Acquisitions LLC | |||
Business Acquisition [Line Items] | |||
Shares issued in acquisition (in shares) | 5,607,452 | ||
Business acquisition, share price (in dollars per share) | $ 18.50 | ||
Purchase price | $ 103.7 | ||
Transaction related costs expensed | $ 1.3 |
Acquisitions - Acquisition of H
Acquisitions - Acquisition of Higher Power Narrative (Details) - Higher Power - USD ($) $ in Millions | Apr. 21, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Cash paid to acquire a business | $ 3.3 | ||
Business combination, contingent consideration, liability | $ 0.8 | ||
Business combination, contingent consideration, payment term | 3 years | ||
Transaction related costs expensed | $ 0.1 | ||
Accrued Liabilities | |||
Business Acquisition [Line Items] | |||
Business combination, contingent consideration, liability | $ 0.3 | ||
Other Liabilities | |||
Business Acquisition [Line Items] | |||
Business combination, contingent consideration, liability | $ 0.5 |
Acquisitions - Schedule of As59
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed. High Power Acquisition (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Apr. 21, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 99,811 | $ 99,811 | $ 88,727 | |
Higher Power | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | $ 1,744 | |||
Goodwill | 643 | |||
Total assets acquired | 4,000 | |||
Customer relationships | Higher Power | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets - customer relationships | $ 1,613 |
Acquisitions - Pro Forma Info60
Acquisitions - Pro Forma Information High Power Acquisition (Details) - Higher Power - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 55,156 | $ 39,571 |
Net loss | 22,373 | 5,127 |
Depreciation | 1,100 | 2,000 |
Revenues | 2,226 | |
Net loss | (163) | |
Eliminations | ||
Business Acquisition [Line Items] | ||
Revenues | $ 51,500 | $ 27,400 |
Acquisitions - Acquisition of 5
Acquisitions - Acquisition of 5 Star Narrative (Details) - 5 Star - USD ($) $ in Millions | Jul. 01, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Cash paid to acquire a business | $ 2.4 | |
Acquisition related costs | $ 0.1 |
Acquisitions - Schedule Of As62
Acquisitions - Schedule Of Assets Acquired and Liabilities Assumed 5 Star (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 99,811 | $ 99,811 | $ 88,727 | |
5 Star | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 2,440 | |||
Property, plant and equipment | 1,863 | |||
Goodwill | 248 | |||
Total assets acquired | 4,851 | |||
Long-term debt and other liabilities | 2,413 | |||
Total liabilities assumed | 2,413 | |||
Net assets acquired | $ 2,438 | |||
Finite-lived intangible asset, useful life (in years) | 10 years | |||
Trade names | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 8 years 1 month 28 days | |||
Trade names | 5 Star | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets - customer relationships | $ 300 |
Acquisitions - Pro Forma, 5 Sta
Acquisitions - Pro Forma, 5 Star (Details) - 5 Star - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 37,745 | $ 25,216 |
Net loss | 16,624 | 4,191 |
Depreciation | 500 | 800 |
Revenues | 3,314 | |
Net loss | (164) | |
Eliminations | ||
Business Acquisition [Line Items] | ||
Revenues | $ 34,400 | $ 16,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Supplies | $ 8,069 | $ 9,437 |
Raw materials | 224 | 219 |
Work in process | 197 | 2,370 |
Finished goods | 3,699 | 5,788 |
Total inventory | $ 12,189 | $ 17,814 |
Property, Plant and Equipment65
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 626,117 | $ 587,298 | ||
Deposits on equipment and equipment in process of assembly | 20,062 | 20,348 | ||
Property, plant and equipment, gross | 646,179 | 607,646 | ||
Less: accumulated depreciation | 280,422 | 256,629 | ||
Property, plant and equipment, net | 365,757 | 351,017 | ||
Accumulated depreciation for assets under capital leases | 800 | 800 | ||
Proceeds from disposal of property and equipment | 286 | $ 369 | [1] | |
Gain (loss) on disposal of property and equipment | 184 | 79 | [1] | |
Pressure pumping equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 196,428 | 190,211 | ||
Pressure pumping equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 3 years | |||
Pressure pumping equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 5 years | |||
Drilling rigs and related equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 135,410 | 132,260 | ||
Proceeds from disposal of property and equipment | 200 | 300 | ||
Gain (loss) on disposal of property and equipment | $ 200 | $ 200 | ||
Drilling rigs and related equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 3 years | |||
Drilling rigs and related equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 15 years | |||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 115,019 | 97,569 | ||
Assets under capital lease | $ 1,800 | 1,800 | ||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 7 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 20 years | |||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 45,138 | 45,992 | ||
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 15 years | |||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 39 years | |||
Vehicles, trucks and trailers | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 62,168 | 54,055 | ||
Assets under capital lease | $ 2,000 | 1,000 | ||
Vehicles, trucks and trailers | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 5 years | |||
Vehicles, trucks and trailers | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 10 years | |||
Coil tubing equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 28,068 | 28,053 | ||
Coil tubing equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 4 years | |||
Coil tubing equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 10 years | |||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 11,794 | 11,317 | ||
Land improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 15 years | |||
Property, plant, and equipment | $ 9,614 | 9,614 | ||
Rail improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 8,865 | 5,540 | ||
Rail improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 10 years | |||
Rail improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 20 years | |||
Other property and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant, and equipment | $ 13,613 | $ 12,687 | ||
Other property and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 3 years | |||
Other property and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful Life | 12 years | |||
[1] | Financial information has been recast to include results attributable to Sturgeon. See Note 4. |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Depreciation, Amortization, Accretion, and Depletion (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Property, Plant and Equipment [Abstract] | |||
Depreciation expense(a) | $ 24,398 | $ 14,967 | |
Depletion expense | 87 | 2 | |
Amortization expense | 2,408 | 2,268 | |
Accretion expense | 15 | 0 | |
Depreciation, depletion, amortization and accretion | 26,908 | 17,237 | [1] |
Depreciation expense for assets under capital leases | $ 100 | $ 100 | |
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC |
Intangible Assets and Goodwil67
Intangible Assets and Goodwill - Definite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 13,732 | $ 16,139 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 35,795 | 35,795 |
Less: accumulated amortization | (28,359) | (26,172) |
Intangible assets, net | 7,436 | 9,623 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 8,793 | 8,793 |
Less: accumulated amortization | $ (2,497) | $ (2,277) |
Intangible Assets and Goodwil68
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 2,408 | $ 2,268 | ||
Goodwill | $ 99,811 | $ 99,811 | $ 88,727 | |
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 2 years 7 months 12 days | |||
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 8 years 1 month 28 days | |||
Minimum | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 4 years | |||
Minimum | Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 10 years | |||
Maximum | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 10 years | |||
Maximum | Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life (in years) | 20 years |
Intangible Assets and Goodwil69
Intangible Assets and Goodwill - Aggregated Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 6,278 | |
2,019 | 1,168 | |
2,020 | 1,168 | |
2,021 | 1,162 | |
2,022 | 1,140 | |
Thereafter | 2,816 | |
Intangible assets, net | $ 13,732 | $ 16,139 |
Intangible Assets and Goodwil70
Intangible Assets and Goodwill - Schedule Of Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, Period Start | $ 99,811 | $ 88,727 |
Additions | 0 | |
Goodwill, Period End | $ 99,811 | 99,811 |
Stingray Acquisitions | ||
Goodwill [Roll Forward] | ||
Additions | 10,193 | |
Higher Power | ||
Goodwill [Roll Forward] | ||
Additions | 643 | |
5 Star | ||
Goodwill [Roll Forward] | ||
Additions | $ 248 |
Accrued Expenses and Other Cu71
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Deferred revenue | $ 15,019 | $ 15,210 |
Accrued compensation, benefits and related taxes | 15,593 | 11,552 |
Financed insurance premiums | 3,263 | 4,876 |
Insurance reserves | 3,695 | 2,942 |
State and local taxes payable | 2,080 | 2,126 |
Other | 3,269 | 4,189 |
Total | $ 42,919 | $ 40,895 |
Accrued Expenses and Other Cu72
Accrued Expenses and Other Current Liabilities - Narrative (Details) | Mar. 31, 2018 | Dec. 31, 2017 |
Supplementary Insurance Information, by Segment [Line Items] | ||
Financed insurance premium interest rate | 2.75% | 2.75% |
Debt (Details)
Debt (Details) | Jun. 30, 2015USD ($) | Nov. 25, 2014USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 24, 2014USD ($) |
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate | 4.49% | ||||
Outstanding borrowing under the credit facility | $ 39,000,000 | $ 99,900,000 | |||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 170,000,000 | ||||
Remaining borrowing capacity | $ 123,700,000 | 62,800,000 | |||
Maximum leverage ratio | 4 | ||||
Debt covenant, minimum availability required | $ 10,000,000 | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Remaining borrowing capacity | $ 6,500,000 | $ 6,500,000 | |||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Increments of debt that can be converted | $ 500,000 | ||||
Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest coverage rate | 3 | ||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Sturgeon Acquisitions LLC | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 25,000,000 | ||||
Basis spread on variable rate | 2.00% | ||||
Debt instrument, term | 3 years | ||||
Sturgeon Acquisitions LLC | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Sturgeon Acquisitions LLC | Federal Fund Open Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% |
Other Liabilities - Schedule o
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Capital lease obligations | $ 3,174 | $ 2,015 |
Equipment financing arrangement | 1,509 | 1,605 |
Other | 500 | 500 |
Total | 5,183 | 4,120 |
Less: Current portion of capital lease and equipment financing obligations included in accrued expenses and other current liabilities | (1,184) | (831) |
Total Other Liabilities | $ 3,999 | $ 3,289 |
Other Liabilities (Details)
Other Liabilities (Details) | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Capital lease, weighted average implied interest rate | 4.49% | |
Financing arrangement, term | 5 years | |
Financing arrangement, stated interest rate | 4.60% | |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Capital lease, weighted average implied interest rate | 19.10% | 15.70% |
Other Liabilities - Schedule76
Other Liabilities - Schedule of Future Payments Under Capital Lease (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Other Liabilities Disclosure [Abstract] | |
2,018 | $ 1,083 |
2,019 | 1,994 |
2,020 | 1,105 |
2,021 | 442 |
2,022 | 360 |
Total future minimum payments | 4,984 |
Less interest payments | (301) |
Present value of future minimum payments | $ 4,683 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Tax Disclosure [Abstract] | |||
Foreign current income tax expense | $ 58,047 | $ 585 | |
Foreign deferred income tax benefit | (10,120) | (6) | |
U.S. current income tax benefit | (12) | 0 | |
U.S. deferred income tax benefit | (1,997) | (3,685) | |
Total | $ 45,918 | $ (3,106) | [1] |
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Federal income tax rate | 45.00% | 39.00% | |
Tax cuts and jobs act of 2017, income tax expense (benefit) | $ (31) | ||
Foreign Tax Credit | |||
Income Tax Contingency [Line Items] | |||
Change in deferred tax assets valuation allowance | $ 34.4 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 55,546 | $ (4,981) | [1],[2] |
Basic earnings (loss) per share: | |||
Weighted average common shares outstanding (in shares) | 44,650,133 | 37,500,000 | [1] |
Basic earnings (loss) per share (in USD per share) | $ 1.24 | $ (0.13) | [1] |
Diluted earnings (loss) per share: | |||
Weighted average common shares, including dilutive effect (in shares) | 44,884,000 | 37,500,000 | [1] |
Diluted earnings (loss) per share (in USD per share) | $ 1.24 | $ (0.13) | [1] |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | ||
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC | ||
[2] | Financial information has been recast to include results attributable to Sturgeon. See Note 4. |
Equity Based Compensation (Deta
Equity Based Compensation (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation expense | $ 0 |
Specified Member Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of the award as of the modification dates or grant date | 5,600,000 |
Non-Employees Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of the award as of the modification dates or grant date | $ 101,000,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Unvested Restricted Shares | |
Unvested shares as of January 1, 2018 (in shares) | shares | 640,632 |
Granted (in shares) | shares | 59,485 |
Vested (in shares) | shares | (123,076) |
Forfeited (in shares) | shares | 0 |
Unvested shares as of March 31, 2018 (in shares) | shares | 577,041 |
Weighted Average Grant-Date Fair Value | |
Unvested shares as of January 1, 2018 (in dollars per share) | $ / shares | $ 19.44 |
Granted (in dollars per share) | $ / shares | 21.13 |
Vested (in dollars per share) | $ / shares | 21.23 |
Forfeited (in dollars per share) | $ / shares | 0 |
Unvested shares as of March 31, 2018 (in dollars per share) | $ / shares | $ 19.21 |
Stock Based Compensation - Nar
Stock Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 4,500,000 | |
Compensation expense | $ 0 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the award as of the modification dates or grant date | $ 9,600,000 | |
Unrecognized compensation cost | 24 months | |
Compensation expense | $ 1,300,000 | $ 600,000 |
Related Party Transactions - Re
Related Party Transactions - Revenues and Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
REVENUES | $ 60,550 | $ 44,502 | |
ACCOUNTS RECEIVABLE | 46,338 | $ 33,788 | |
Pressure Pumping and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 38,546 | 31,746 | |
ACCOUNTS RECEIVABLE | 26,367 | 25,054 | |
Muskie and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 11,462 | 11,541 | |
ACCOUNTS RECEIVABLE | 9,509 | 1,947 | |
Panther Drilling and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 56 | 1,042 | |
ACCOUNTS RECEIVABLE | 14 | 872 | |
Cementing and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 2,828 | 0 | |
ACCOUNTS RECEIVABLE | 2,058 | 2,255 | |
SR Energy and Gulfport | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 6,953 | 0 | |
ACCOUNTS RECEIVABLE | 7,758 | 3,348 | |
Panther Drilling and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 345 | 0 | |
ACCOUNTS RECEIVABLE | 135 | 0 | |
Redback Energy and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 0 | 124 | |
Coil Tubing and El Toro | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 360 | 0 | |
ACCOUNTS RECEIVABLE | 360 | 0 | |
Bison Drilling and Predator | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 0 | 0 | |
ACCOUNTS RECEIVABLE | 83 | 234 | |
Other Relationships | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
REVENUES | 0 | $ 49 | |
ACCOUNTS RECEIVABLE | $ 54 | $ 78 |
Related Party Transactions - Co
Related Party Transactions - Cost of Revenues of Accounts Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | $ 1,792 | $ 430 | [1] | |
ACCOUNTS PAYABLE | 2,228 | $ 1,378 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 429 | 324 | [1] | |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | 1,792 | 430 | ||
ACCOUNTS PAYABLE | 2,228 | 1,378 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 429 | 324 | ||
CAPITAL EXPENDITURES | 1,572 | 0 | ||
Cobra and T&E | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | 1,275 | 0 | ||
CAPITAL EXPENDITURES | 374 | 0 | ||
Higher Power and T&E | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | 509 | 0 | ||
CAPITAL EXPENDITURES | 1,198 | 0 | ||
Panther and DBDHT | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | 0 | 128 | ||
The Company and 2017 Stingray Companies | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | 0 | 237 | ||
Other Relationships | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
COST OF REVENUE | 8 | 65 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 14 | 32 | ||
The Company and Everest | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 31 | 58 | ||
The Company and Wexford | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 183 | 234 | ||
The Company and Caliber | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 201 | $ 0 | ||
ACCOUNTS PAYABLE | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 621 | 755 | ||
ACCOUNTS PAYABLE | Cobra and T&E | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 50 | 457 | ||
ACCOUNTS PAYABLE | Higher Power and T&E | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 563 | 3 | ||
ACCOUNTS PAYABLE | Panther and DBDHT | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 0 | 77 | ||
ACCOUNTS PAYABLE | The Company and 2017 Stingray Companies | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 0 | 0 | ||
ACCOUNTS PAYABLE | Other Relationships | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 8 | 218 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 183 | 172 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | Other Relationships | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 0 | 2 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | The Company and Everest | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 16 | 19 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | The Company and Wexford | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 109 | 150 | ||
SELLING, GENERAL AND ADMINISTRATIVE COSTS | The Company and Caliber | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 58 | 1 | ||
CAPITAL EXPENDITURES | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 1,424 | 451 | ||
CAPITAL EXPENDITURES | Cobra and T&E | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | 323 | 66 | ||
CAPITAL EXPENDITURES | Higher Power and T&E | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
ACCOUNTS PAYABLE | $ 1,101 | $ 385 | ||
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease payments (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Operating Leases | |
Remainder of 2018 | $ 16,556 |
2,019 | 15,651 |
2,020 | 13,474 |
2,021 | 10,911 |
2,022 | 8,285 |
Thereafter | 6,340 |
Total | 71,217 |
Minimum Purchase Commitments | |
Remainder of 2018 | 25,656 |
2,019 | 11,436 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Minimum Purchase Commitments | 37,092 |
Capital Spend Commitments | |
Minimum Purchase Commitments | |
Remainder of 2018 | 20,183 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Minimum Purchase Commitments | $ 20,183 |
Commitments and Contingencies86
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating leases, rent expense | $ 4,500,000 | $ 2,000,000 | |
Insurance deductible | 300,000 | $ 300,000 | |
Insurance aggregate stop loss | 2,000,000 | 2,000,000 | |
Workers compensation and auto claims insurance, aggregate stop loss per claim basis | 200,000 | ||
Workers compensation and auto claims insurance, aggregate stop loss per calendar year | 5,800,000 | ||
Insurance reserves | $ 3,695,000 | 2,942,000 | |
Warranty accrual | 0 | ||
Product warranty expense | 0 | ||
Maximum annual contributions per employee, percent | 92.00% | ||
Employer matching contribution, percent of match | 3.00% | ||
Employer discretionary contribution amount | $ 1,600,000 | ||
Letter of Credit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total letters of credit | 6,523,000 | 6,523,000 | |
Letter of Credit | Insurance programs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total letters of credit | $ 2,486,000 | $ 2,486,000 |
Commitments and Contingencies87
Commitments and Contingencies - Schedule of Letters of Credit (Details) - Letter of Credit - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Total letters of credit | $ 6,523 | $ 6,523 |
Environmental remediation | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | 3,582 | 3,582 |
Insurance programs | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | 2,486 | 2,486 |
Rail car commitments | ||
Line of Credit Facility [Line Items] | ||
Total letters of credit | $ 455 | $ 455 |
Reporting Segments (Details)
Reporting Segments (Details) $ in Thousands | Dec. 31, 2017USD ($)segment | Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 4 | 4 | ||
Revenues | $ 494,249 | $ 74,966 | [1] | |
Revenues | 494,249 | 74,966 | ||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 326,101 | 58,498 | ||
Intersegment cost of revenues | 0 | 0 | ||
Total cost of revenue | 326,101 | 58,498 | ||
Selling, general and administrative | 38,511 | 6,737 | ||
Depreciation, depletion, amortization and accretion | 26,908 | 17,237 | ||
Operating income (loss) | 102,729 | (7,506) | [1] | |
Interest expense | 1,237 | 397 | [1] | |
Other expense | 28 | 184 | [1] | |
Income (loss) before income taxes | 101,464 | (8,087) | [1] | |
Total assets | $ 867,243 | 901,085 | 515,423 | |
Accounts receivable, net | $ 243,746 | 243,913 | ||
Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 96,579 | 40,453 | ||
Infrastructure services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 325,459 | 0 | ||
Sand | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 36,503 | 14,912 | ||
Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 15,228 | 10,751 | ||
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 20,480 | 8,850 | ||
Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Intersegment revenues | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,559 | 187 | ||
Intersegment revenues | Infrastructure services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Intersegment revenues | Sand | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 14,512 | 685 | ||
Intersegment revenues | Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2 | 0 | ||
Intersegment revenues | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,415 | 0 | ||
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (21,488) | (872) | ||
Revenues | (21,488) | |||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 0 | 0 | ||
Intersegment cost of revenues | (21,746) | (872) | ||
Total cost of revenue | (21,746) | (872) | ||
Selling, general and administrative | 0 | 0 | ||
Depreciation, depletion, amortization and accretion | 0 | 0 | ||
Operating income (loss) | 258 | 0 | ||
Interest expense | 0 | 0 | ||
Other expense | 0 | 0 | ||
Income (loss) before income taxes | 258 | 0 | ||
Total assets | (96,319) | (115,089) | ||
Eliminations | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Accounts receivable, net | 74,400 | 94,100 | ||
Corporate | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 88,100 | 106,400 | ||
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 101,138 | 40,640 | ||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 66,612 | 28,707 | ||
Intersegment cost of revenues | 15,402 | 685 | ||
Total cost of revenue | 82,014 | 29,392 | ||
Selling, general and administrative | 2,663 | 1,777 | ||
Depreciation, depletion, amortization and accretion | 13,986 | 9,158 | ||
Operating income (loss) | 2,475 | 313 | ||
Interest expense | 504 | 128 | ||
Other expense | (12) | (3) | ||
Income (loss) before income taxes | 1,959 | 182 | ||
Total assets | 291,070 | 229,231 | ||
Operating Segments | Infrastructure services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 325,459 | 0 | ||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 194,076 | 86 | ||
Intersegment cost of revenues | 1,791 | 0 | ||
Total cost of revenue | 195,867 | 86 | ||
Selling, general and administrative | 31,851 | 48 | ||
Depreciation, depletion, amortization and accretion | 2,407 | 0 | ||
Operating income (loss) | 95,334 | (134) | ||
Interest expense | 76 | 0 | ||
Other expense | (2) | 0 | ||
Income (loss) before income taxes | 95,256 | (134) | ||
Total assets | 225,922 | 0 | ||
Operating Segments | Sand | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 51,015 | 15,597 | ||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 33,330 | 12,608 | ||
Intersegment cost of revenues | 4,286 | 187 | ||
Total cost of revenue | 37,616 | 12,795 | ||
Selling, general and administrative | 1,644 | 2,058 | ||
Depreciation, depletion, amortization and accretion | 2,316 | 1,363 | ||
Operating income (loss) | 9,439 | (619) | ||
Interest expense | 80 | 133 | ||
Other expense | 13 | (14) | ||
Income (loss) before income taxes | 9,372 | (766) | ||
Total assets | 200,068 | 131,437 | ||
Operating Segments | Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 15,230 | 10,751 | ||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 14,475 | 10,953 | ||
Intersegment cost of revenues | 162 | 0 | ||
Total cost of revenue | 14,637 | 10,953 | ||
Selling, general and administrative | 1,253 | 1,293 | ||
Depreciation, depletion, amortization and accretion | 4,355 | 4,968 | ||
Operating income (loss) | (5,015) | (6,463) | ||
Interest expense | 395 | 217 | ||
Other expense | (40) | (164) | ||
Income (loss) before income taxes | (5,450) | (6,844) | ||
Total assets | 88,821 | 97,839 | ||
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 22,895 | 8,850 | ||
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion | 17,608 | 6,144 | ||
Intersegment cost of revenues | 105 | 0 | ||
Total cost of revenue | 17,713 | 6,144 | ||
Selling, general and administrative | 1,100 | 1,561 | ||
Depreciation, depletion, amortization and accretion | 3,844 | 1,748 | ||
Operating income (loss) | 238 | (603) | ||
Interest expense | 182 | (81) | ||
Other expense | 13 | (3) | ||
Income (loss) before income taxes | 69 | (525) | ||
Total assets | $ 191,523 | $ 172,005 | ||
[1] | Financial information has been recast to include results attributable to Sturgeon Acquisitions LLC |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | May 03, 2018 | Mar. 31, 2018 |
Subsequent Event [Line Items] | ||
Lease aggregate commitments | $ 71,217 | |
Purchase obligation | $ 37,092 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Lease aggregate commitments | $ 12,000 | |
Subsequent Event | Equipment | ||
Subsequent Event [Line Items] | ||
Purchase obligation | 20,100 | |
Subsequent Event | Coil tubing equipment | ||
Subsequent Event [Line Items] | ||
Purchase obligation | 3,700 | |
Air Charter Agreement | Infrastructure services | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Purchase obligation | 6,100 | |
Housing Service Agreement | Infrastructure services | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Purchase obligation | 3,800 | |
Medical Service Agreement | Infrastructure services | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Purchase obligation | $ 200 |