Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38035 | ||
Entity Registrant Name | ProPetro Holding Corp. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-3685382 | ||
Entity Address, Address Line One | 1706 South Midkiff | ||
Entity Address, City or Town | Midland | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 79701 | ||
City Area Code | 432 | ||
Local Phone Number | 688-0012 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 664.5 | ||
Entity Common Stock, Shares Outstanding | 103,706,217 | ||
Entity Central Index Key | 0001680247 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock ($0.001 par value) | ||
Trading Symbol | PUMP | ||
Security Exchange Name | NYSE | ||
Preferred Stock Purchase Rights | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Houston, Texas, United States |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 111,918 | $ 68,772 |
Accounts receivable - net of allowance for credit losses of $217 and $1,497, respectively | 128,148 | 84,244 |
Inventories | 3,949 | 2,729 |
Prepaid expenses | 6,752 | 11,199 |
Other current assets | 297 | 782 |
Total current assets | 251,064 | 167,726 |
PROPERTY AND EQUIPMENT - Net of accumulated depreciation | 808,494 | 880,477 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 409 | 709 |
OTHER NONCURRENT ASSETS: | ||
Other noncurrent assets | 1,269 | 1,827 |
Total other noncurrent assets | 1,269 | 1,827 |
TOTAL ASSETS | 1,061,236 | 1,050,739 |
CURRENT LIABILITIES: | ||
Accounts payable | 152,649 | 79,153 |
Accrued and other current liabilities | 20,767 | 24,676 |
Operating lease liabilities | 369 | 334 |
Total current liabilities | 173,785 | 104,163 |
DEFERRED INCOME TAXES | 61,052 | 75,340 |
NONCURRENT OPERATING LEASE LIABILITIES | 97 | 465 |
Total liabilities | 234,934 | 179,968 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $0.001 par value, 30,000,000 shares authorized, none issued, respectively | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized, 103,437,177 and 100,912,777 shares issued, respectively | 103 | 101 |
Additional paid-in capital | 844,829 | 835,115 |
(Accumulated deficit) Retained earnings | (18,630) | 35,555 |
Total shareholders’ equity | 826,302 | 870,771 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,061,236 | $ 1,050,739 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 217 | $ 1,497 |
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 103,437,177 | 100,912,777 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue - Service revenue | $ 874,514 | $ 789,232 | $ 2,052,314 |
COSTS AND EXPENSES: | |||
Cost of services (exclusive of depreciation and amortization) | 662,266 | 584,279 | 1,470,356 |
General and administrative (inclusive of stock‑based compensation) | 82,921 | 86,768 | 105,076 |
Depreciation and amortization | 133,377 | 153,290 | 145,304 |
Impairment expense | 0 | 38,002 | 3,405 |
Loss on disposal of assets | 64,646 | 58,136 | 106,811 |
Total costs and expenses | 943,210 | 920,475 | 1,830,952 |
OPERATING (LOSS) INCOME | (68,696) | (131,243) | 221,362 |
OTHER EXPENSE: | |||
Interest expense | (614) | (2,383) | (7,141) |
Other Income /(expense) | 873 | (874) | (717) |
Total other Income /(expense) | 259 | (3,257) | (7,858) |
(LOSS) INCOME BEFORE INCOME TAXES | (68,437) | (134,500) | 213,504 |
INCOME TAX BENEFIT/ (EXPENSE) | 14,252 | 27,480 | (50,494) |
NET (LOSS) INCOME | $ (54,185) | $ (107,020) | $ 163,010 |
NET (LOSS) INCOME PER COMMON SHARE: | |||
Basic (in dollars per share) | $ (0.53) | $ (1.06) | $ 1.62 |
Diluted (in dollars per share) | $ (0.53) | $ (1.06) | $ 1.57 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 102,655 | 100,829 | 100,472 |
Diluted (in shares) | 102,655 | 100,829 | 103,750 |
Revenue from Contract with Customer, Product and Service [Extensible List] | Service [Member] | Service [Member] | Service [Member] |
Cost, Product and Service [Extensible List] | Service [Member] | Service [Member] | Service [Member] |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid‑In Capital | Retained Earnings (Accumulated Deficit) |
Beginning balance (in shares) at Dec. 31, 2018 | 100,190 | |||
Beginning balance at Dec. 31, 2018 | $ 797,355 | $ 100 | $ 817,690 | $ (20,435) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock‑based compensation cost | 7,776 | 7,776 | ||
Issuance of equity award—net (in shares) | 434 | |||
Issuance of equity award—net | 1,164 | $ 1 | 1,163 | |
Net (loss) income | 163,010 | 163,010 | ||
Ending balance (in shares) at Dec. 31, 2019 | 100,624 | |||
Ending balance at Dec. 31, 2019 | 969,305 | $ 101 | 826,629 | 142,575 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock‑based compensation cost | 9,100 | 9,100 | ||
Issuance of equity award—net (in shares) | 289 | |||
Tax withholdings paid for net settlement of equity | (614) | (614) | ||
Net (loss) income | (107,020) | (107,020) | ||
Ending balance (in shares) at Dec. 31, 2020 | 100,913 | |||
Ending balance at Dec. 31, 2020 | 870,771 | $ 101 | 835,115 | 35,555 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock‑based compensation cost | 11,519 | 11,519 | ||
Issuance of equity award—net (in shares) | 2,524 | |||
Issuance of equity award—net | 4,017 | $ 2 | 4,015 | |
Tax withholdings paid for net settlement of equity | (5,820) | (5,820) | ||
Net (loss) income | (54,185) | (54,185) | ||
Ending balance (in shares) at Dec. 31, 2021 | 103,437 | |||
Ending balance at Dec. 31, 2021 | $ 826,302 | $ 103 | $ 844,829 | $ (18,630) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (54,185) | $ (107,020) | $ 163,010 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 133,377 | 153,290 | 145,304 |
Impairment expense | 0 | 38,002 | 3,405 |
Deferred income tax (benefit) expense | (14,288) | (27,701) | 48,758 |
Amortization of deferred debt issuance costs | 542 | 543 | 542 |
Stock‑based compensation | 11,519 | 9,100 | 7,776 |
Provision for credit losses | 282 | 448 | 949 |
Loss on disposal of assets | 64,646 | 58,136 | 106,812 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (43,742) | 127,491 | (10,177) |
Other current assets | 310 | 1,978 | 1,351 |
Inventories | (1,220) | (293) | 3,917 |
Prepaid expenses | 4,463 | (232) | (4,386) |
Accounts payable | 51,764 | (95,697) | (25,242) |
Accrued liabilities | 1,246 | (18,527) | 13,088 |
Accrued interest | 0 | (394) | 183 |
Net cash provided by operating activities | 154,714 | 139,124 | 455,290 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (143,523) | (100,603) | (502,894) |
Proceeds from sale of assets | 39,231 | 6,386 | 7,595 |
Net cash used in investing activities | (104,292) | (94,217) | (495,299) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings | 0 | 0 | 110,000 |
Repayments of borrowings | 0 | (130,000) | (50,000) |
Payment of finance lease obligation | 0 | (30) | (272) |
Proceeds from insurance financing | 0 | 6,821 | 0 |
Repayments of insurance financing | (5,473) | (1,348) | (4,547) |
Proceeds from exercise of equity awards | 4,017 | 0 | 1,164 |
Tax withholdings paid for net settlement of equity awards | (5,820) | (614) | 0 |
Net cash used in financing activities | (7,276) | (125,171) | 56,345 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 43,146 | (80,264) | 16,336 |
CASH AND CASH EQUIVALENTS — Beginning of year | 68,772 | 149,036 | 132,700 |
CASH AND CASH EQUIVALENTS — End of year | $ 111,918 | $ 68,772 | $ 149,036 |
ORGANIZATION AND HISTORY
ORGANIZATION AND HISTORY | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND HISTORY | ORGANIZATION AND HISTORY ProPetro Holding Corp. ("Holding"), a Texas corporation was formed on April 14, 2007, to serve as a holding company for its wholly owned subsidiary ProPetro Services, Inc. ("Services"), a Texas corporation. Services offers hydraulic fracturing, cementing and coiled tubing services to oil and gas producers, located primarily in Texas, New Mexico and Utah. Holding was converted and incorporated to a Delaware Corporation on March 8, 2017. Unless otherwise indicated, references in these notes to consolidated financial statements to "ProPetro Holding Corp.," "the Company," "we," "our," "us" or like terms refer to ProPetro Holding Corp. and Services. On December 31, 2018, we consummated the purchase of pressure pumping and related assets of Pioneer Natural Resources USA, Inc. ("Pioneer") and Pioneer Pumping Services, LLC (the "Pioneer Pressure Pumping Acquisition"). The pressure pumping assets acquired were used to provide integrated well completion services in the Permian Basin to Pioneer’s completion and production operations. The acquisition cost of the assets was comprised of $110.0 million of cash and 16.6 million shares of our common stock. The pressure pumping assets acquired included hydraulic fracturing pumps of 510,000 hydraulic horsepower ("HHP"), four coiled tubing units and the associated equipment maintenance facility. In connection with the acquisition, we became a long-term service provider to Pioneer under a pressure pumping services agreement (the "Pioneer Services Agreement"), providing pressure pumping and related services for a term of up to 10 years; provided, that Pioneer has the right to terminate the Pioneer Services Agreement, in whole or in part, effective as of December 31 of each of the calendar years of 2022, 2024 and 2026. Pioneer can increase the number of committed fleets prior to December 31, 2022. Pursuant to the Pioneer Services Agreement, the Company is entitled to receive compensation if Pioneer were to idle committed fleets ("idle fees"); however, we are first required to use all economically reasonable effort to deploy the idled fleets to another customer. At the present, we have eight fleets committed to Pioneer. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements are as follows: Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Holding and its wholly owned subsidiary, Services. All intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation — The accompanying consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") and in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Use of Estimates — Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Such estimates include, but are not limited to, allowance for credit losses, useful lives for depreciation of property and equipment, estimates of fair value of property and equipment, estimates related to fair value of reporting units for purposes of assessing goodwill (if any), estimates related to deferred tax assets and liabilities, including any related valuation allowances, and estimates of fair value of stock‑based compensation. Actual results could differ from those estimates. Revenue Recognition — The Company’s services are sold based upon contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of the principal activities, aggregated into our one reportable segment—"Pressure Pumping" and "all other" category, from which the Company generates its revenue. Pressure Pumping — Pressure pumping consists of downhole pumping services, which includes hydraulic fracturing (inclusive of acidizing services) and cementing. Hydraulic fracturing is a well-stimulation technique intended to optimize hydrocarbon flow paths during the completion phase of shale wellbores. The process involves the injection of water, sand and chemicals under high pressure into shale formations. Our hydraulic fracturing contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed faithfully depicts how our hydraulic fracturing services are transferred to our customers over time. In addition, certain of our hydraulic fracturing equipment is entitled to daily idle fee charges if a customer were to idle committed hydraulic fracturing equipment. The Company recognizes revenue related to idle fee charges on a daily basis as the performance obligations are met. Acidizing, which is part of our hydraulic fracturing operating segment, involves a well-stimulation technique where acid or similar chemicals are injected under pressure into formations to form or expand fissures. Our acidizing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service or sale of acid or chemical when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize acidizing revenue at a point-in-time, upon completion of the performance obligation. Our cementing services use pressure pumping equipment to deliver a slurry of liquid cement that is pumped down a well between the casing and the borehole. Our cementing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize cementing revenue at a point-in-time, upon completion of the performance obligation. The transaction price for each performance obligation for all our pressure pumping services is fixed per our contracts with our customers. All Other — All other consists of coiled tubing operations, which are downhole well completion/remedial services. The performance obligation for these services has a fixed transaction price which is satisfied at a point-in-time upon completion of the service when control is transferred to the customer. Accordingly, we recognize revenue at a point-in-time, upon completion of the service and transfer of control to the customer. Accounts Receivable — Accounts receivables are stated at the amount billed and billable to customers. At December 31, 2021 and 2020 accrued revenue (unbilled receivable) included as part of our accounts receivable was $19.4 million and $8.6 million, respectively. At December 31, 2021, the transaction price allocated to the remaining performance obligation for our partially completed hydraulic fracturing operations was $16.8 million, which is expected to be completed and recognized within one month following the current period balance sheet date, in our pressure pumping reportable segment. At December 31, 2020 the transaction price allocated to the remaining performance obligation for our then partially completed hydraulic fracturing operations was $14.7 million, which was recorded as part of our pressure pumping segment revenue for the year ended December 31, 2021. As of December 31, 2021, the Company had $0.2 million allowance for credit losses. Our allowance for credit losses is based on the evaluation of both our historic collection experience and economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and also considered separately customers with receivable balances that may be negatively impacted by current or future economic developments and market conditions. While the Company has not experienced significant credit losses in the past and has not yet seen material changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of the COVID-19 pandemic, including the potential impact of periodically adjusted borrowing base limits, level of hedged production, or unforeseen well shut-downs may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses. The table below shows a summary of allowance for credit losses during the year ended December 31, 2021: ($ in thousands) 2021 2020 2019 Balance - January 1, 2021 $ 1,497 $ 1,049 $ 100 Provision for credit losses during the period—net 282 448 949 Write-off during the period (1,562) — — Balance - December 31, 2021 $ 217 $ 1,497 $ 1,049 Inventories — Inventories, which consists only of raw materials, are stated at lower of average cost and net realizable value. Property and Equipment — The Company’s property and equipment are recorded at cost, less accumulated depreciation. Depreciation — Depreciation of property and equipment is provided on the straight‑line method over the following estimated useful lives: Land Indefinite Buildings and property improvements 5 - 30 years Vehicles 1 ‑ 5 years Equipment 1 ‑ 20 years Leasehold improvements 5 ‑ 20 years Upon sale or retirement of property and equipment, including certain major components of our pressure pumping equipment that are replaced, the cost and related accumulated depreciation are removed from the balance sheet and the net amount, less proceeds from disposal, is recognized as a gain or loss in the statement of operations. A significant portion of our loss on disposal of assets relates to replacement of major components like fluid and power ends. The Company recorded a loss on disposal of assets of $64.6 million , $58.1 million and $106.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. Impairment of Long‑Lived Assets — In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 360, Accounting for the Impairment or Disposal of Long‑Lived Assets , the Company reviews its long‑lived assets to be held and used whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future undiscounted cash flows attributable to the asset group is less than the carrying amount of such asset group. In this circumstance, the Company recognizes an impairment loss for the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. No impairment expense was recorded during the year ended December 31, 2021. Property and equipment impairment loss of $27.5 million and $1.1 million was recorded during the year ended December 31, 2020 relating to our pressure pumping and drilling assets, respectively. Property and equipment impairment loss of $1.2 million and $2.2 million was recorded during the year ended December 31, 2019 relating to our drilling and flowback asset groups, respectively. Our drilling and flowback asset groups are included in the “all other” category in our reportable segment disclosure. The Company accounts for long‑lived assets to be disposed of at the lower of their carrying amount or fair value, less cost to sell once management has committed to a plan to dispose of the assets. Goodwill — Goodwill is the excess of the consideration transferred over the fair value of the tangible and identifiable intangible assets and liabilities recognized. Goodwill is not amortized. We perform an annual impairment test of goodwill as of December 31, or more frequently if circumstances indicate that impairment may exist. The determination of impairment is made by comparing the carrying amount of a reporting unit with its fair value, which is generally calculated using a combination of market and income approaches. If the fair value of the reporting unit exceeds the carrying value, no further testing is performed. If the fair value of the reporting unit is less than the carrying value, we consider goodwill to be impaired, and the amount of impairment loss is estimated and recorded in the statement of operations. In 2011, we acquired Technology Stimulation Services, LLC ("TSS") for $24.4 million. The assets acquired from TSS were recorded as $15.0 million of equipment with the excess of the purchase price over fair value of the assets recorded as goodwill of $9.4 million. The acquisition complemented our existing pressure pumping business. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets and liabilities assumed were recorded at their fair values as of the acquisition date. There were no additions to goodwill during the y ear ended December 31, 2021. In the first quarter of 2020, we performed an interim impairment test and concluded that goodwill was fully impaired. As a result of our interim impairment test during the first quarter of 2020, we recorded goodwill impairment expense of $9.4 million during the year ended December 31, 2020, which fully wrote off our goodwill carrying value. There were no good will impairments during the year ended December 31, 2019. Intangible Assets — Intangible assets with finite useful lives are amortized on a basis that reflects the pattern in which the economic benefits of the intangible assets are realized, which is generally on a straight‑line basis over the asset’s estimated useful life. Income Taxes — Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of differences between the consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, and the results of recent operations. If we determine that we would not be able to fully realize our deferred tax assets in the future, we would record a valuation allowance. Advertising Expense — All advertising costs are expensed as incurred. For the years ended December 31, 2021, 2020 and 2019, advertising expense was $0.8 million , $0.4 million and $1.2 million, respectively. Deferred Loan Costs — The Company capitalized certain costs in connection with obtaining its borrowings, including lender, legal, and accounting fees. These costs are being amortized over the term of the related loan using the straight‑line method. Unamortized deferred loan costs associated with loans paid off or refinanced with different lenders are expensed in the period in which such an event occurs. Deferred loan costs are classified as a reduction of long‑term debt or in certain instances as an asset in the consolidated balance sheet. Amortization of deferred loan costs is recorded as interest expense in the statement of operations, and during the years ended December 31, 2021, 2020 and 2019, the amount of expense recorded was $0.5 million, $0.5 million and $0.5 million, respectively. Stock-Based Compensation — The Company recognizes the cost of stock‑based awards on a straight‑line basis over the requisite service period of the award, which is usually the vesting period under the fair value method. Total compensation cost is measured on the grant date using fair value estimates. Insurance Financing — The Company annually renews its commercial insurance policies, and may choose to either directly pay the insurance premium or finance a portion of the premium. If the Company finances a portion of the premium, a prepaid insurance asset is recorded and amortized monthly over the relevant period. Concentration of Credit Risk — The Company’s assets that are potentially subject to concentrations of credit risk are cash and cash equivalents and trade accounts receivable. Cash balances are maintained in financial institutions, which at times exceed federally insured limits. The Company monitors the financial condition of the financial institutions in which accounts are maintained and has not experienced any losses in such accounts. The receivables of the Company are with credible operators in the oil and natural gas industries. The Company performs ongoing evaluations as to the financial condition of its customers with respect to trade receivables. Recently Issued Accounting Standards Adopted in 2021 In December 2019, the FASB Accounting Standards Update ("ASU") issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. Effective January 1, 2021, we adopted this guidance and the adoption did not materially affect the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted in 2021 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform , which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate ("LIBOR"). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This guidance is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company’s consolidated financial statements. |
SUPPLEMENTAL CASH FLOWS INFORMA
SUPPLEMENTAL CASH FLOWS INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOWS INFORMATION | SUPPLEMENTAL CASH FLOWS INFORMATION ($ in thousands) Year Ended December 31, 2021 2020 2019 Supplemental cash flows disclosures Interest paid $ 72 $ 2,207 $ 6,433 Income taxes paid $ 196 $ 1,786 $ 1,018 Supplemental disclosure of non‑cash investing and financing activities Capital expenditures included in accounts payable and accrued liabilities $ 36,818 $ 14,803 $ 31,226 Non-cash purchases of property and equipment $ — $ — $ — |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value ("FV") is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used, when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions other market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Assets and Liabilities Measured at Fair Value on a Recurring Basis Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued and other current liabilities, and long-term debt (if any). The estimated fair value of our financial instruments at December 31, 2021 and 2020 approximated or equaled their carrying value as reflected in our consolidated balance sheets. Assets Measured at Fair Value on a Nonrecurring Basis There was no impairment of assets during the year ended December 31, 2021. During the year ended December 31, 2020, we recorded property and equipment impairment loss of approximately $28.6 million in connection with the depressed utilization of our pressure pumping and drilling assets . During the year ended December 31, 2019, we recorded property and equipment impairment loss of approximately $3.4 million in connection with our drilling and flowback assets, in our “all other” segment. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following: ($ in thousands) December 31, 2021 2020 Land $ 10,551 $ 10,551 Buildings 30,045 29,312 Equipment and vehicles 1,248,464 1,242,698 Leasehold improvements 8,159 8,035 Subtotal 1,297,219 1,290,596 Less accumulated depreciation (488,725) (410,119) Property and equipment — net $ 808,494 $ 880,477 During the years ended December 31, 2021 and 2020 and 2019, our depreciation expense was $133.4 million, |
LONG_TERM DEBT
LONG‑TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG‑TERM DEBT | LONG‑TERM DEBT Asset-Based Loan ( " ABL ") Credit Facility Our revolving credit facility ("ABL Credit Facility"), as amended, has a total borrowing capacity of $300 million (subject to the Borrowing Base limit), with a maturity date of December 19, 2023. The ABL Credit Facility has a borrowing base of 85% of monthly eligible accounts receivable less customary reserves (the "borrowing base"), as redetermined monthly. The borrowing base as of December 31, 2021 was approximately $61.1 million. The ABL Credit Facility includes a Springing Fixed Charge Coverage Ratio to apply when excess availability is less than the greater of (i) 10% of the lesser of the facility size or the borrowing base or (ii) $22.5 million. Under this facility we are required to comply, subject to certain exceptions and materiality qualifiers, with certain customary affirmative and negative covenants, including, but not limited to, covenants pertaining to our ability to incur liens, indebtedness, changes in the nature of our business, mergers and other fundamental changes, disposal of assets, investments and restricted payments, amendments to our organizational documents or accounting policies, prepayments of certain debt, dividends, transactions with affiliates, and certain other activities. Borrowings under the ABL Credit Facility are secured by a first priority lien and security interest in substantially all assets of the Company. Borrowings under the ABL Credit Facility accrue interest based on a three-tier pricing grid tied to availability, and we may elect for loans to be based on either LIBOR or base rate, plus the applicable margin, which ranges from 1.75% to 2.25% for LIBOR loans and 0.75% to 1.25% for base rate loans, with a LIBOR floor of zero. The loan origination costs relating to the ABL Credit Facility are classified as an asset in the balance sheet. There were no borrowings under the ABL Credit Facility as of December 31, 2021, and 2020. |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES | ACCRUED AND OTHER CURRENT LIABILITIES Accrued and other current liabilities consisted of the following: ($ in thousands) December 31, 2021 2020 Accrued insurance — 6,553 Accrued payroll and related expenses 6,816 4,640 Capital expenditure, taxes and others accruals 13,951 13,483 Total $ 20,767 $ 24,676 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan, modified effective January 1, 2019, and the Company matches 100% of the employee contributions up to 6% of gross salary, up to the annual limit. The employees vest in the Company contributions to the 401(k) plan 25% per year, beginning in the employee’s first year of service, with full vesting occurring after four years of service. The employees are fully vested in their contributions when made. Effective April 1, 2022, the Company modified its 401(k) plan to allow for immediate vesting of the Company’s contributions. During the years ended December 31, 2021, 2020 and 2019, the recorded expense under the plan was $2.8 million, $2.1 million and $3.0 million, respectively. |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENT INFORMATION | REPORTABLE SEGMENT INFORMATION The Company has three operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), cementing and coiled tubing. These operating segments represent how the Chief Operating Decision Maker evaluates performance and allocates resources. In December 2021, the Company disposed of two turbine generators included in our pressure pumping reportable segment for total cash proceeds of approximately $36.0 million. The net book value of the two turbines prior to the disposal was approximately $39.5 million, resulting in loss on disposal of approximately $3.5 million. In September 2020, the Company shut down its drilling operations and disposed of all of its drilling rigs and ancillary assets for approximately $0.5 million. In March 2020, the Company shut down its flowback operating segment and subsequently disposed of the assets for approximately $1.6 million. Our drilling and flowback operations were included in our “all other” category. The shutdown of the drilling and flowback operations resulted in a reduction in the number of our current operating segments to three. The change in the number of our operating segments did not impact our reportable segment information reported for the years presented. In accordance with FASB ASC 280— Segment Reporting , the Company has one reportable segment (pressure pumping) comprised of the hydraulic fracturing and cementing operating segments. The coiled tubing operating segment and corporate administrative expense (inclusive of our total income tax expense (benefit), other (income) and expense and interest expense) are included in the "all other" category in the tables below. Total corporate administrative expense for the years ended December 31, 2021, 2020 and 2019 was $38.5 million , $31.6 million and $113.0 million, respectively. Our hydraulic fracturing operating segment revenue approximated 93.3%, 94.2% and 95.6% of our pressure pumping revenue for the years ended December 31, 2021, 2020 and 2019, respectively. Inter-segment revenues are not material and are not shown separately in the table below. The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before other income (expense), interest expense, income taxes, depreciation and amortization, stock-based compensation expense, severance and related expense, impairment expense, (gain)/loss on disposal of assets and other unusual or nonrecurring expenses or (income)). A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below (in thousands): Pressure All Other Total Year ended and as of December 31, 2021 Service revenue $ 857,642 $ 16,872 $ 874,514 Adjusted EBITDA $ 181,688 $ (46,681) $ 135,007 Depreciation and amortization $ 129,478 $ 3,899 $ 133,377 Capital expenditures $ 162,044 $ 3,114 $ 165,158 Total assets $ 1,023,037 $ 38,199 $ 1,061,236 Pressure All Other Total Year ended and as of December 31, 2020 Service revenue $ 773,474 $ 15,758 $ 789,232 Adjusted EBITDA $ 174,030 $ (32,567) $ 141,463 Depreciation and amortization $ 148,659 $ 4,631 $ 153,290 Impairment expense $ 36,907 $ 1,095 $ 38,002 Capital expenditures $ 78,154 $ 3,091 $ 81,245 Total assets $ 1,009,631 $ 41,108 $ 1,050,739 Pressure All Other Total Year ended and as of December 31, 2019 Service revenue $ 2,001,627 $ 50,687 $ 2,052,314 Adjusted EBITDA $ 533,760 $ (14,691) $ 519,069 Depreciation and amortization $ 139,348 $ 5,956 $ 145,304 Impairment expense $ — $ 3,405 $ 3,405 Capital expenditures $ 387,119 $ 13,552 $ 400,671 Goodwill $ 9,425 $ — $ 9,425 Total assets $ 1,381,811 $ 54,300 $ 1,436,111 Reconciliation of net income (loss) to adjusted EBITDA (in thousands): Pressure All Other Total Year ended December 31, 2021 Net loss $ (12,723) $ (41,462) $ (54,185) Depreciation and amortization 129,478 3,899 133,377 Interest expense — 614 614 Income tax benefit — (14,252) (14,252) Loss (gain) on disposal of assets 64,903 (257) 64,646 Stock‑based compensation — 11,519 11,519 Other income — (873) (873) Other general and administrative expense (1) — (6,471) (6,471) Severance expense 30 602 632 Adjusted EBITDA $ 181,688 $ (46,681) $ 135,007 Pressure All Other Total Year ended December 31, 2020 Net loss $ (68,271) $ (38,749) $ (107,020) Depreciation and amortization 148,659 4,631 153,290 Interest expense 1 2,382 2,383 Income tax benefit — (27,480) (27,480) Loss on disposal of assets 56,659 1,477 58,136 Impairment expense 36,907 1,095 38,002 Stock‑based compensation — 9,100 9,100 Other expense — 874 874 Other general and administrative expense (1) — 13,038 13,038 Retention bonus and severance expense 75 1,065 1,140 Adjusted EBITDA $ 174,030 $ (32,567) $ 141,463 Pressure All Other Total Year ended December 31, 2019 Net income (loss) $ 281,090 $ (118,080) $ 163,010 Depreciation and amortization 139,348 5,956 145,304 Interest expense 51 7,090 7,141 Income tax expense — 50,494 50,494 Loss on disposal of assets 106,178 633 106,811 Impairment expense — 3,405 3,405 Stock‑based compensation — 7,776 7,776 Other expense — 717 717 Other general and administrative expense (1) — 25,208 25,208 Deferred IPO bonus, retention bonus and severance expense 7,093 2,110 9,203 Adjusted EBITDA $ 533,760 $ (14,691) $ 519,069 (1) During the years ended December 31, 2021, 2020 and 2019, other general and administrative expense (net of reimbursement from insurance carriers) primarily relates to nonrecurring professional fees paid to external consultants in connection with our audit committee review, SEC investigation and shareholder litigation, net of insurance recoveries. During the years ended December 31, 2021, 2020 and 2019, we received reimbursement of approximately $9.8 million, $0.6 million and $0, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. Major Customers The Company had revenue from the following significant customers that accounted for the following percentages of the Company’s total revenue: Year Ended December 31, 2021 2020 2019 Customer A 54.2 % 42.5 % 25.5 % Customer B 14.6 % 20.3 % 20.9 % Customer C 8.8 % 9.3 % 13.2 % Customer D 4.4 % 8.6 % 9.2 % Customer E 3.8 % 5.8 % 8.2 % The above significant customers’ revenue that relates to pressure pumping is below: Year Ended December 31, 2021 2020 2019 Customer A 99.6 % 99.8 % 99.7 % Customer B 100.0 % 97.6 % 95.4 % Customer C 99.7 % 99.9 % 99.9 % Customer D 87.6 % 99.7 % 100.0 % Customer E 100.0 % 85.7 % 100.0 % |
NET (LOSS) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | NET (LOSS) INCOME PER SHARE Basic net (loss) income per common share is computed by dividing the net (loss) income relevant to the common stockholders by the weighted-average number of shares outstanding during the year. Diluted net (loss) income per common share uses the same net (loss) income divided by the sum of the weighted-average number of shares of common stock outstanding during the period, plus dilutive effects of options, performance stock units and restricted stock units outstanding during the period calculated using the treasury method and the potential dilutive effects of preferred stocks (if any) calculated using the if-converted method. (In thousands, except for per share data) Year Ended December 31, 2021 2020 2019 Numerator (both basic and diluted) Net (loss) income relevant to common stockholders $ (54,185) $ (107,020) $ 163,010 Denominator Denominator for basic net (loss) income per share 102,655 100,829 100,472 Dilutive effect of stock options — — 2,929 Dilutive effect of performance stock units — — 169 Dilutive effect of restricted stock units — — 179 Denominator for diluted net (loss) income per share 102,655 100,829 103,750 Basic net (loss) income per common share $ (0.53) $ (1.06) $ 1.62 Diluted net (loss) income per common share $ (0.53) $ (1.06) $ 1.57 As shown in the table below, the following stock options, restricted stock units and performance stock units outstanding as of December 31, 2021, 2020 and 2019 have not been included in the calculation of diluted (loss) income per common share for the years ended December 31, 2021, 2020 and 2019 because they would be anti-dilutive to the calculation of diluted net (loss) income per common share: (In thousands) 2021 2020 2019 Stock options 798 4,200 — Restricted stock units 1,413 1,165 — Performance stock units 1,586 1,019 — Total 3,797 6,384 — |
STOCK_BASED COMPENSATION
STOCK‑BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK‑BASED COMPENSATION | STOCK‑BASED COMPENSATION Stock Option Plan In March 2013, we approved the Stock Option Plan of ProPetro Holding Corp. (the "Stock Option Plan") pursuant to which our Board of Directors may grant stock options to our consultants, directors, executives and employees. No awards have been granted under the Stock Option Plan following our Initial Public Offering ("IPO"), and no further awards will be granted under the Stock Option Plan. 2017 Incentive Award Plan In March 2017, our shareholders approved the ProPetro Holding Corp. 2017 Incentive Award Plan (the "2017 Incentive Plan") pursuant to which our Board of Directors was authorized to grant stock options, restricted stock units ("RSUs"), performance stock units ("PSUs"), or other stock-based and cash awards to consultants, directors, executives and employees. The 2017 Incentive Plan originally authorized up to 5,800,000 shares of common stock to be issued with respect to awards granted pursuant to the plan. No awards have been granted under the 2017 Incentive Plan following approval of the 2020 Incentive Plan (as defined below), and no further awards will be granted under the 2017 Incentive Plan. 2020 Long Term Incentive Plan In October 2020, our shareholders approved the ProPetro Holding Corp. 2020 Long Term Incentive Plan (the "2020 Incentive Plan") pursuant to which our Board of Directors may grant stock options, RSUs, PSUs, or other stock-based and cash awards to consultants, directors, executives and employees. The 2020 Incentive Plan authorizes up to 4,650,000 shares of common stock to be issued under awards granted pursuant to the plan. The 2020 Incentive Plan became effective October 22, 2020, and as of such date no further awards will be granted under the 2017 Incentive Plan. The 2017 Incentive Plan and the 2020 Incentive Plan are herein collectively referred to as the "Incentive Plans". Stock Options On June 14, 2013, we granted 2,799,408 stock option awards to certain key employees, officers and directors pursuant to the Stock Option Plan that vested and became exercisable based upon the achievement of a service requirement. The options vested in 25% increments for each year of continuous service and an option became fully vested upon the optionee’s completion of the fourth year of service. The contractual term for the options awarded is 10 years. The fair value of each option award granted was estimated on the date of grant using the Black-Scholes option-pricing model. On July 19, 2016, we granted 1,274,549 stock option awards to certain key employees, officers and directors pursuant to the Stock Option Plan which vested in five substantially equal semi-annual installments commencing in December 2016, subject to a continuing services requirement. The contractual term for the options awarded is 10 years. We fully accelerated vesting of the options in connection with our IPO. The fair value of each option award granted was estimated on the date of grant using the Black-Scholes option-pricing model. On March 16, 2017, we granted 793,738 stock option awards to certain key employees, officers and directors pursuant to the 2017 Incentive Plan which are scheduled to vest in four substantially equal annual installments, subject to a continuing service requirement. The contractual term for the options awarded is 10 years. The fair value of each stock option award granted was estimated on the date of grant using the Black-Scholes option-pricing model. There were no new stock option grants during the years ended December 31, 2021, 2020 and 2019. As of December 31, 2021, the aggregate intrinsic value for our outstanding stock options was $1.6 million, and the aggregate intrinsic value for our exercisable stock options was $1.6 million. The aggregate intrinsic value for the exercised stock options during the year ended December 31, 2021 was $19.8 million. The remaining contractual term for the outstanding and exercisable stock options as of December 31, 2021, w as 4.1 years and 4.1 years , respectively. A summary of the stock option activity during the year ended December 31, 2021 is presented below (in thousands, except for exercise price): Number Weighted Outstanding at January 1, 2021 4,200 $ 4.82 Granted — $ — Exercised (3,326) $ 3.42 Forfeited — $ 0.00 Expired (76) $ 14.00 Outstanding at December 31, 2021 798 $ 9.77 Exercisable at December 31, 2021 798 $ 9.77 Restricted Stock Units In 2021, we granted 851,885 RSUs to employees, officers and directors pursuant to the 2020 Incentive Plan, which generally vest ratably over a three-year vesting period, in the case of awards to employees and officers, and generally vest in full after one year, in the case of awards to directors. RSUs are subject to restrictions on transfer and are generally subject to a risk of forfeiture if the award recipient ceases to be an employee or director of the Company prior to vesting of the award. Each RSU represents the right to receive either one share of common stock or, as determined by the administrator in its sole discretion, a cash amount equal to the fair market value of one share of common stock on the day immediately preceding the settlement date. The grant date fair value of the RSUs is based on the closing share price of our common stock on the date of grant. For the years ended December 31, 2021, 2020 and 2019, the Company recognized stock compensation expense for RSUs of approximately $6.2 million, $5.1 million and $3.5 million, respectively. As of December 31, 2021, the total unrecognized compensation expense for all RSUs was approximately $7.4 million, and is expected to be recognized over a weighted-average period of approximately 1.8 years. The following table summarizes the RSUs activity during the year December 31, 2021 (in thousands, except for fair value): Number of Weighted Outstanding at January 1, 2021 1,165 $ 8.50 Granted 852 $ 9.69 Vested (589) $ 8.52 Forfeited (15) $ 10.27 Canceled — $ — Outstanding at December 31, 2021 1,413 $ 9.19 Performance Stock Units In 2021, we granted 650,774 P SUs to certain key employees and officers as new awards under the 2020 Incentive Plan. Each PSU earned represents the right to receive either one share of common stock or, as determined by the administrator in its sole discretion, a cash amount equal to the fair market value of one share of common stock or amount of cash on the day immediately preceding the settlement date. The actual number of shares of common stock that may be issued under the PSUs ranges from 0% up to a maximum of 200% of the target number of PSUs granted to the participant, based on our total shareholder return ("TSR") relative to a designated peer group, generally at the end of a three-year period. In addition to the TSR conditions, vesting of the PSUs is generally subject to the recipient’s continued employment through the end of the applicable performance period. Compensation expense is recorded ratably over the corresponding requisite service period. The grant date fair value of PSUs is determined using a Monte Carlo probability model. Grant recipients do not have any shareholder rights until performance relative to the peer group has been determined following the completion of the performance period and shares have been issued. For the years ended December 31, 2021, 2020 and 2019 the Company recognized stock compensation expense for the PSUs of approximatel y $5.5 million, $1.7 million and $3.8 million, respectively. The following table summarizes information about PSUs activity during the year ended December 31, 2021 (in thousands, except for fair value): Period Target Shares Outstanding at January 1, 2021 Target Target Shares Vested Target Target Shares Outstanding at December 31, 2021 Weighted 2018 84 — (84) — — $ 27.51 2019 126 — — — 126 $ 27.49 2020 809 — — — 809 $ 8.30 2021 — 651 — — 651 $ 14.76 Total 1,019 651 (84) — 1,586 $ 12.48 Weighted Average FV Per Share $ 12.27 $ 14.76 $ 27.51 $ — $ 12.48 The total stock compensation expense for the years ended December 31, 2021, 2020 and 2019 for all stock awards was approximately $11.5 million , $9.1 million and $7.8 million, respectively. The total unrecognized stock-based compensation expense as of December 31, 2021 was approximately $16.4 million , and is expected to be recognized over a weighted-average period of approximatel y 1.8 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the provision for income taxes are as follows: ($ in thousands) Year Ended December 31, 2021 2020 2019 Federal: Current $ (52) $ — $ — Deferred (15,143) (27,104) 47,090 (15,195) (27,104) 47,090 State: Current 88 221 1,736 Deferred 855 (597) 1,668 943 (376) 3,404 Total income tax expense $ (14,252) $ (27,480) $ 50,494 Reconciliation between the amounts determined by applying the federal statutory rate of 21% for years ended December 31, 2021, 2020 and 2019 to income tax (benefit) expense is as follows: ($ in thousands) Year Ended December 31, 2021 2020 2019 Taxes at federal statutory rate $ (14,372) $ (28,245) $ 44,836 State taxes, net of federal benefit 61 154 2,504 Non-deductible expenses 745 314 3,683 Stock-based compensation (2,549) 751 (717) Valuation allowance 825 868 — Other 1,038 (1,322) 188 Total income tax (benefit) expense $ (14,252) $ (27,480) $ 50,494 Deferred tax assets and liabilities are recognized for estimated future tax effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. The significant items giving rise to deferred tax assets (liabilities) are as follows: ($ in thousands) December 31, 2021 2020 Deferred Income Tax Assets Accrued liabilities $ 911 $ 472 Allowance for credit losses 46 316 Goodwill and other intangible assets 2,161 3,408 Stock‑based compensation 3,382 4,015 Net operating losses 87,822 85,827 Other 56 56 Total deferred tax assets 94,378 94,094 Valuation allowance (1,693) (868) Total deferred tax assets — net $ 92,685 $ 93,226 Deferred Income Tax Liabilities Property and equipment $ (152,624) $ (166,494) Prepaid expenses (1,113) (2,073) Total deferred tax liabilities $ (153,737) $ (168,567) Net deferred tax liabilities $ (61,052) $ (75,341) The Tax Cuts and Jobs Act (the "TCJA") included a reduction to the maxi mum deduction allo wed for net o perating losses generated in tax years after December 31, 2017 and the elimination of carrybacks of net operating losses. Under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, which modified the TCJA, U.S. federal net operating loss carryforwards ( " NOLs " ) generated in taxable periods beginning after December 31, 2017, may be carried forward indefinitely, but the deductibility of such NOLs in taxable years beginning after December 31, 2020, is limited to 80% of taxable income. As of December 31, 2021, the Company had approximately $408.0 million of federal NOLs some of which will begin to expire in 2035. Approximately $219.5 million of the Company’s federal NOLs relate to pre-2018 periods. As of December 31, 2021, the Company’s state net operating losses were approximately $50.1 million and will begin to expire in 2024. Utilization of net operating loss carryforwards may be limited due to past or future ownership changes. As of December 31, 2021, we determined that $1.7 million valuation allowance was necessary against our state deferred tax assets. The Company’s U.S. federal income tax returns for the y ear ended December 31, 2018, and through the most recent filing remain open to examination by the Internal Revenue Service under the applicable U.S. federal statute of limitations provisions. The various states in which the Company is subject to income tax are generally open to examination for the tax years ended December 31, 2017, and through the most recent filing. The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than fifty percent likely to be realized upon ultimate settlement with the related tax authority. As of December 31, 2021, 2020 and 2019, no uncertain tax positions were recorded. The Company will continue to evaluate its tax positions in accordance with ASC 740 and will recognize any future effect as either a benefit or charge to income in the applicable period. Income tax penalties and interest assessments recognized under ASC 740 are accrued as a tax expense in the period that the Company’s taxes are in an uncertain tax position. Any accrued tax penalties or interest assessments will remain until the uncertain tax position is resolved with the taxing authorities or until the applicable statute of limitations has expired. |
RELATED_PARTY TRANSACTIONS
RELATED‑PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED‑PARTY TRANSACTIONS | RELATED‑PARTY TRANSACTIONS Corporate Office Building Prior to April 2020, the Company rented its corporate office building and the associated real property from an entity, in which a former executive officer of the Company has an equity interest for approximately $0.1 million per year. In April 2020, the Company acquired the corporate office building and associated real property for approximately $1.5 million. Operations and Maintenance Yards The Company also rents five yards from an entity, in which certain former executive officers and a director of the Company have equity interests and total annual rent expense for each of the five yards was approximately $0.03 million, $0.03 million, $0.1 million, $0.1 million, and $0.2 million, respectively. The Company also leased its drilling yard from another entity, in which a certain former executive officer of the Company has an equity interest, for an annual lease expense of approximately $0.1 million during 2020 . In November 2020, we terminated the drilling yard lease. Equipment Rental and Other Services The Company obtained equipment maintenance services from an entity that has a family relationship with an executive officer of the Company. During the year ended December 31, 2021 and 2020, the Company incurred approximately $0 and $1.2 million, respectively, for equipment maintenance services associated with this related party. At December 31, 2021 and 2020, the Company had no outstanding payables or receivables to or from the above related party. Pioneer On December 31, 2018, we consummated the Pioneer Pressure Pumping Acquisition. In connection with the Pioneer Pressure Pumping Acquisition, Pioneer received 16.6 million shares of our common stock and approximately $110.0 million in cash. Revenue from services provided to Pioneer (including idle fees) accounted for approximately $473.8 million, $335.4 million and $524.2 million of our total revenue during the years ended December 31, 2021, 2020 and 2019, respectively. In connection with the Pioneer Pressure Pumping Acquisition, the Company agreed to reimburse Pioneer for a certain portion of the retention bonuses paid to former Pioneer employees that were subsequently employed by the Company. During years ended December 31, 2021, 2020 and 2019, the Company fully reimbursed Pioneer approximately $0, $2.7 million and $4.2 million respectively. As of December 31, 2021, the total accounts receivable due from Pioneer, including estimated unbilled receivable for services (including idle fees) we provided, amounted to $62.1 million a nd the amount due to Pioneer was $0. As of December 31, 2020, the balance due from Pioneer for services (including idle fees) we provided amo |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES On January 1, 2019, we implemented ASC 842, using the modified retrospective transition method and elected not to restate prior years. Accordingly, the effects of adopting ASC 842 were adjusted in the beginning of 2019 while prior periods are accounted for under the legacy GAAP, ASC 840. There was no cumulative effect adjustment on beginning retained earnings. We also elected other practical expedients provided by the new lease standard, the short-term lease recognition practical expedient in which leases with a term of twelve months or less will not be recognized on the balance sheet and the practical expedient to not separate lease and non-lease components for real estate class of assets. Our discount rate was based on our estimated incremental borrowing rate on a collateralized basis with similar terms and economic considerations as our lease payments at the lease commencement. Below is a description of our operating and finance leases. Operating Leases Description of Lease In March 2013, we entered into a ten-year real estate lease contract (the “Real Estate Lease”) with a commencement date of April 1, 2013, as part of the expansion of our equipment yard. The lease is with an entity in which a former director of the Company has a noncontrolling equity ownership interest. For the years ended December 31, 2021, 2020 and 2019, the Company made lease payments of approximately $0.4 million , $0.4 million and $0.4 million, respectively. The assets and liabilities under this contract are equally allocated between our cementing and coiled tubing segments. In addition to the contractual lease period, the contract includes an optional renewal of up to ten years, and in management’s judgment the exercise of the renewal option is not reasonably assured. The contract does not include a residual value guarantee, covenants or financial restrictions. Further, the Real Estate Lease does not contain variability in payments resulting from either an index change or rate change. Effective January 1, 2019, the remaining lease term in our present value estimate of the minimum future lease payments was approximately four years. We accounted for our Real Estate Lease to be an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the real estate lease because we concluded that the accounting effect was insignificant. As of December 31, 2021, the weighted average discount rate and remaining lease term was 6.7% and 1.3 years, re spectively. As of December 31, 2021, our total operating lease right-of-use asset cost wa s $1.2 million, and accumulated amortization was $0.8 million. As of December 31, 2020, our total operating lease right-of-use ass et cost was $1.2 million, and accumulated amortization was $0.5 million. For the years ended December 31, 2021, 2020 and 2019 we recorded operating lease cost of $0.3 million, $0.3 million and $0.4 million respectively, in our statement of operations. Finance Leases Description of Ground Lease In 2018, we entered into a ten-year land lease contract (the “Ground Lease”) with an exclusive option to purchase the land exercisable beginning one year from the commencement date of October 1, 2018 through the end of the contractual lease term. In March 2020, the Company exercised its option and purchased the land associated with the Ground Lease for approximately $2.5 million. The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for operating lease as of December 31, 2021 are as follows: ($ in thousands) Totals 2022 $ 389 2023 98 Total undiscounted future lease payments 487 Amount representing interest (21) Present value of future lease payments (lease obligation) $ 466 The total cash paid for amounts included in the measurement of our operating lease liability during the year ended December 31, 2021 was approximately $0.4 million . During the year ended December 31, 2020, the total cash paid for amounts included in the measurement of our operating and finance lease liabilities was approximately $0.4 million and $0.03 million, respectively. The non-cash lease obligation we recorded effective January 1, 2019, upon adopting the new lease standard, ASC 842, was $2.0 million and $3.1 million for operating and finance leases, respectively. Short-Term Leases We elected the practical expedient, consistent with ASC 842, to exclude leases with an initial term of twelve months or less ("short-term lease") from our balance sheet and continue to record short-term leases as a period expense. For the years ended December 31, 2021 and 2020, our short-term asset lease expense was approximately $0.6 million and $1.0 million, respectively. In April 2021, we entered into a short-term lease arrangement to lease our turbine (the “Equipment Lease”) with a commencement date of June 1, 2021 through September 30, 2021. We classified the Equipment Lease as an operating lease, and during the year ended December 31, 2021, we recognized approximately $3.0 million in lease income recorded as part of our pressure pumping segment revenue on our statements of operat |
LEASES | LEASES On January 1, 2019, we implemented ASC 842, using the modified retrospective transition method and elected not to restate prior years. Accordingly, the effects of adopting ASC 842 were adjusted in the beginning of 2019 while prior periods are accounted for under the legacy GAAP, ASC 840. There was no cumulative effect adjustment on beginning retained earnings. We also elected other practical expedients provided by the new lease standard, the short-term lease recognition practical expedient in which leases with a term of twelve months or less will not be recognized on the balance sheet and the practical expedient to not separate lease and non-lease components for real estate class of assets. Our discount rate was based on our estimated incremental borrowing rate on a collateralized basis with similar terms and economic considerations as our lease payments at the lease commencement. Below is a description of our operating and finance leases. Operating Leases Description of Lease In March 2013, we entered into a ten-year real estate lease contract (the “Real Estate Lease”) with a commencement date of April 1, 2013, as part of the expansion of our equipment yard. The lease is with an entity in which a former director of the Company has a noncontrolling equity ownership interest. For the years ended December 31, 2021, 2020 and 2019, the Company made lease payments of approximately $0.4 million , $0.4 million and $0.4 million, respectively. The assets and liabilities under this contract are equally allocated between our cementing and coiled tubing segments. In addition to the contractual lease period, the contract includes an optional renewal of up to ten years, and in management’s judgment the exercise of the renewal option is not reasonably assured. The contract does not include a residual value guarantee, covenants or financial restrictions. Further, the Real Estate Lease does not contain variability in payments resulting from either an index change or rate change. Effective January 1, 2019, the remaining lease term in our present value estimate of the minimum future lease payments was approximately four years. We accounted for our Real Estate Lease to be an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. We did not account for the land separately from the building of the real estate lease because we concluded that the accounting effect was insignificant. As of December 31, 2021, the weighted average discount rate and remaining lease term was 6.7% and 1.3 years, re spectively. As of December 31, 2021, our total operating lease right-of-use asset cost wa s $1.2 million, and accumulated amortization was $0.8 million. As of December 31, 2020, our total operating lease right-of-use ass et cost was $1.2 million, and accumulated amortization was $0.5 million. For the years ended December 31, 2021, 2020 and 2019 we recorded operating lease cost of $0.3 million, $0.3 million and $0.4 million respectively, in our statement of operations. Finance Leases Description of Ground Lease In 2018, we entered into a ten-year land lease contract (the “Ground Lease”) with an exclusive option to purchase the land exercisable beginning one year from the commencement date of October 1, 2018 through the end of the contractual lease term. In March 2020, the Company exercised its option and purchased the land associated with the Ground Lease for approximately $2.5 million. The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for operating lease as of December 31, 2021 are as follows: ($ in thousands) Totals 2022 $ 389 2023 98 Total undiscounted future lease payments 487 Amount representing interest (21) Present value of future lease payments (lease obligation) $ 466 The total cash paid for amounts included in the measurement of our operating lease liability during the year ended December 31, 2021 was approximately $0.4 million . During the year ended December 31, 2020, the total cash paid for amounts included in the measurement of our operating and finance lease liabilities was approximately $0.4 million and $0.03 million, respectively. The non-cash lease obligation we recorded effective January 1, 2019, upon adopting the new lease standard, ASC 842, was $2.0 million and $3.1 million for operating and finance leases, respectively. Short-Term Leases We elected the practical expedient, consistent with ASC 842, to exclude leases with an initial term of twelve months or less ("short-term lease") from our balance sheet and continue to record short-term leases as a period expense. For the years ended December 31, 2021 and 2020, our short-term asset lease expense was approximately $0.6 million and $1.0 million, respectively. In April 2021, we entered into a short-term lease arrangement to lease our turbine (the “Equipment Lease”) with a commencement date of June 1, 2021 through September 30, 2021. We classified the Equipment Lease as an operating lease, and during the year ended December 31, 2021, we recognized approximately $3.0 million in lease income recorded as part of our pressure pumping segment revenue on our statements of operat |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments We entered into certain commitments for fixed assets, consumables and services incidental to the ordinary conduct of our business, generally for quantities required for our operations and at competitive market prices. These commitments are designed to assure sources of supply and are not expected to be in excess of normal requirements. As of December 31, 2021, t here were no outstanding contractual commitments. At December 31, 2021, the total remaining commitments and other obligations for all of our short-term lease and l odging arrangements was $3.7 million . The Company enters into purchase agreements with its sand suppliers (the " Sand Suppliers " ) to secure supply of sand as part of its normal course of business. The agreements with the Sand Suppliers require that the Company purchase a minimum volume of sand, based primarily on a certain percentage of our sand requirements from our customers or in certain situations based on predetermined fixed minimum volumes, otherwise certain penalties (shortfall fees) may be charged. The shortfall fee represents liquidated damages and is either a fixed percentage of the purchase price for the mi nimum volumes or a fixed price per ton of unpurchased volumes. Our agreements with Sand Suppliers expire at different times prior to December 31, 2025. During the years ended December 31, 2021, 2020 and 2019, no shortfall fee was recorded. However, one of our Sand Suppliers has filed a suit against us that includes claims related to alleged shortfall fees. The suit is in the early stages, and we are contesting the claims. While we cannot reasonably estimate the outcome of the matter at this time, in the opinion of management, the ultimate disposition of the action will not have a materially adverse effect on the Company. One of the Sand Suppliers ( " SandCo " ) we entered into an agreement to purchase sand ( " Texas Sand " ) has an indirect relationship with a former executive officer of the Company, because beginning in 2018, the Texas Sand was sourced from a mine located on land owned by an entity in which the former executive officer of the Company has a 44% noncontrolling equity interest. The total sand purchased from SandCo during the three months ended March 31, 2020 (the period the former executive was associated with the Company) was approximately $5.3 million. As of December 31, 2021 and 2020, the Company had issued le tters of credit of $3.7 million and $3.7 million, respectively, under the ABL Credit Facility in connection with the Company's casualty insurance policy. Contingent Liabilities Legal Matters In September 2019, a complaint, captioned Richard Logan, Individually and On Behalf of All Others Similarly Situated, Plaintiff, v. ProPetro Holding Corp., et al., (the "Logan Lawsuit"), was filed against the Company and certain of its then current and former officers and directors in the U.S. District Court for the Western District of Texas. In July 2020, the Logan Lawsuit Lead Plaintiffs Nykredit Portefølje Administration A/S, Oklahoma Firefighters Pension and Retirement System, Oklahoma Law Enforcement Retirement System, Oklahoma Police Pension and Retirement System, and Oklahoma City Employee Retirement System, and additional named plaintiff Police and Fire Retirement System of the City of Detroit, individually and on behalf of a putative class of shareholders who purchased the Company’s common stock between March 17, 2017 and March 13, 2020, filed a third amended class action complaint in the U.S. District Court for the Western District of Texas, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule l0b-5 promulgated thereunder, and Sections 11 and 15 of the Securities Act of 1933, as amended, based on allegedly inaccurate or misleading statements, or omissions of material facts, about the Company’s business, operations and prospects against the Company, and certain of its current and former officers and directors. On September 13, 2021, the Court partially granted and partially denied motions to dismiss filed by the Company and the individual defendants. Discovery is still ongoing. In May 2020, the U.S. District Court for the Western District of Texas consolidated two shareholder derivative lawsuits previously filed against the Company and certain of its current and former officers and directors into a single lawsuit captioned In re ProPetro Holding Corp. Derivative Litigation (the “Shareholder Derivative Lawsuit”). In August 2020, the plaintiffs in the Shareholder Derivative Lawsuit filed a consolidated complaint alleging (i) breaches of fiduciary duties, (ii) unjust enrichment and (iii) contribution. The plaintiffs did not quantify any alleged damages in its complaint but, in addition to attorneys’ fees and costs, they seek various forms of relief, including (i) damages sustained by the Company as a result of the alleged misconduct, (ii) punitive damages and (iii) equitable relief in the form of improvements to the Company’s governance and controls. On September 15, 2021, the Court granted the Company's motion to dismiss the complaint in its entirety, without prejudice. On November 19, 2021, the Company received a demand letter from a law firm representing one of the purported shareholders of the Company that previously filed the dismissed Shareholder Derivative Lawsuit. The demand letter alleged facts and claims substantially similar to the Shareholder Derivative Lawsuit. The Board of Directors has constituted a committee to evaluate the demand letter and recommend a course of action to the Board of Directors, and the committee has retained counsel to assist with its review. The committee’s review is ongoing. In October 2019, the Company received a letter from the SEC indicating that the SEC had opened an investigation into the Company, which followed the SEC’s issuance of a formal order of investigation, and requesting that the Company provide certain information and documents, including documents related to the Company's expanded audit committee review and related events. In November 2021, the Company entered a settlement with the SEC resolving the investigation. The Company was not required to pay any monetary penalty and has no ongoing undertakings in connection with the settlement. We are presently unable to predict the duration, scope or result of the Logan Lawsuit, or any other related lawsuit or investigation. As of December 31, 2021, no provision was made by the Company in connection with this pending lawsuit as the final outcome cannot be reasonably estimated. Environmental and Equipment Insurance The Company is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for protection of the environment. The Company cannot predict the future impact of such standards and requirements, which are subject to change and can have retroactive effectiveness. The Company continues to monitor the status of these laws and regulations. Currently, the Company has not been fined, cited or notified of any environmental violations that would have a material adverse effect upon its financial position, liquidity or capital resources. However, management does recognize that by the very nature of the Company's business, material costs could be incurred in the near term to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions which may be required, the determination of the Company's liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification. Effective November 2021 and in connection with our equipment insurance program renewal, the Company will self-insure up to $10 million per occurrence for certain losses arising from or attributable to fire and/or explosion at the wellsites. Regulatory Audits In 2020, the Texas Comptroller of Public Accounts (the “Comptroller”) commenced a routine audit of the Company's motor vehicle and other related fuel taxes for the periods of July 2015 through December 2020. As of December 31, 2021, the audit is still ongoing and the final outcome cannot be reasonably estimated. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following table sets forth our unaudited quarterly results for each of the last four quarters for the years ended December 31, 2021 and 2020. This unaudited quarterly information has been prepared on the same basis as our annual audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that are necessary to present fairly the financial information for the fiscal quarters presented. (In thousands, except for per share data) 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue - Service revenue $ 161,458 $ 216,887 $ 250,099 $ 246,070 Gross profit $ 38,080 $ 54,050 $ 61,409 $ 58,709 Net income $ (20,375) $ (8,511) $ (5,067) $ (20,232) Net income per common share: Basic $ (0.20) $ (0.08) $ (0.05) $ (0.20) Diluted $ (0.20) $ (0.08) $ (0.05) $ (0.20) Weighted average common shares outstanding: Basic 101,550 102,398 103,257 103,390 Diluted 101,550 102,398 103,257 103,390 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue - Service revenue $ 395,069 $ 106,109 $ 133,710 $ 154,344 Gross profit $ 94,221 $ 37,916 $ 34,118 $ 38,698 Net income $ (7,804) $ (25,920) $ (29,184) $ (44,112) Net income per common share: Basic $ (0.08) $ (0.26) $ (0.29) $ (0.44) Diluted $ (0.08) $ (0.26) $ (0.29) $ (0.44) Weighted average common shares outstanding: Basic 100,687 100,821 100,897 100,911 Diluted 100,687 100,821 100,897 100,911 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Holding and its wholly owned subsidiary, Services. All intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation — The accompanying consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") and in conformity with accounting principles generally accepted in the United States of America ("GAAP"). |
Use of Estimates | Use of Estimates — Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Such estimates include, but are not limited to, allowance for credit losses, useful lives for depreciation of property and equipment, estimates of fair value of property and equipment, estimates related to fair value of reporting units for purposes of assessing goodwill (if any), estimates related to deferred tax assets and liabilities, including any related valuation allowances, and estimates of fair value of stock‑based compensation. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition — The Company’s services are sold based upon contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of the principal activities, aggregated into our one reportable segment—"Pressure Pumping" and "all other" category, from which the Company generates its revenue. Pressure Pumping — Pressure pumping consists of downhole pumping services, which includes hydraulic fracturing (inclusive of acidizing services) and cementing. Hydraulic fracturing is a well-stimulation technique intended to optimize hydrocarbon flow paths during the completion phase of shale wellbores. The process involves the injection of water, sand and chemicals under high pressure into shale formations. Our hydraulic fracturing contracts with our customers have one performance obligation, which is the contracted total stages, satisfied over time. We recognize revenue over time using a progress output, unit-of-work performed method, which is based on the agreed fixed transaction price and actual stages completed. We believe that recognizing revenue based on actual stages completed faithfully depicts how our hydraulic fracturing services are transferred to our customers over time. In addition, certain of our hydraulic fracturing equipment is entitled to daily idle fee charges if a customer were to idle committed hydraulic fracturing equipment. The Company recognizes revenue related to idle fee charges on a daily basis as the performance obligations are met. Acidizing, which is part of our hydraulic fracturing operating segment, involves a well-stimulation technique where acid or similar chemicals are injected under pressure into formations to form or expand fissures. Our acidizing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service or sale of acid or chemical when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize acidizing revenue at a point-in-time, upon completion of the performance obligation. Our cementing services use pressure pumping equipment to deliver a slurry of liquid cement that is pumped down a well between the casing and the borehole. Our cementing contracts have one performance obligation, satisfied at a point-in-time, upon completion of the contracted service when control is transferred to the customer. Jobs for these services are typically short term in nature, with most jobs completed in less than a day. We recognize cementing revenue at a point-in-time, upon completion of the performance obligation. The transaction price for each performance obligation for all our pressure pumping services is fixed per our contracts with our customers. All Other — All other consists of coiled tubing operations, which are downhole well completion/remedial services. The performance obligation for these services has a fixed transaction price which is satisfied at a point-in-time upon completion of the service when control is transferred to the customer. Accordingly, we recognize revenue at a point-in-time, upon completion of the service and transfer of control to the customer. |
Accounts Receivable | Accounts Receivable — Accounts receivables are stated at the amount billed and billable to customers. |
Allowance for Credit Loss | Our allowance for credit losses is based on the evaluation of both our historic collection experience and economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and also considered separately customers with receivable balances that may be negatively impacted by current or future economic developments and market conditions. While the Company has not experienced significant credit losses in the past and has not yet seen material changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of the COVID-19 pandemic, including the potential impact of periodically adjusted borrowing base limits, level of hedged production, or unforeseen well shut-downs may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses. |
Inventories | Inventories — Inventories, which consists only of raw materials, are stated at lower of average cost and net realizable value. |
Property and Equipment | Property and Equipment — The Company’s property and equipment are recorded at cost, less accumulated depreciation. |
Depreciation | Depreciation — Depreciation of property and equipment is provided on the straight‑line method over the following estimated useful lives: Land Indefinite Buildings and property improvements 5 - 30 years Vehicles 1 ‑ 5 years Equipment 1 ‑ 20 years Leasehold improvements 5 ‑ 20 years |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets — In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 360, Accounting for the Impairment or Disposal of Long‑Lived Assets , the Company reviews its long‑lived assets to be held and used whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. |
Goodwill | Goodwill — Goodwill is the excess of the consideration transferred over the fair value of the tangible and identifiable intangible assets and liabilities recognized. Goodwill is not amortized. We perform an annual impairment test of goodwill as of December 31, or more frequently if circumstances indicate that impairment may exist. The determination of impairment is made by comparing the carrying amount of a reporting unit with its fair value, which is generally calculated using a combination of market and income approaches. If the fair value of the reporting unit exceeds the carrying value, no further testing is performed. If the fair value of the reporting unit is less |
Intangible Assets | Intangible Assets — Intangible assets with finite useful lives are amortized on a basis that reflects the pattern in which the economic benefits of the intangible assets are realized, which is generally on a straight‑line basis over the asset’s estimated useful life. |
Income Taxes | Income Taxes — Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of differences between the consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. |
Advertising Expense | Advertising Expense — All advertising costs are expensed as incurred. |
Deferred Loan Costs | Deferred Loan Costs — The Company capitalized certain costs in connection with obtaining its borrowings, including lender, legal, and accounting fees. These costs are being amortized over the term of the related loan using the straight‑line method. Unamortized deferred loan costs associated with loans paid off or refinanced with different lenders are expensed in the period in which such an event occurs. Deferred loan costs are classified as a reduction of long‑term debt or in certain instances as an asset in the consolidated balance sheet. |
Stock Based Compensation | Stock-Based Compensation — The Company recognizes the cost of stock‑based awards on a straight‑line basis over the requisite service period of the award, which is usually the vesting period under the fair value method. Total compensation cost is measured on the grant date using fair value estimates. |
Insurance Financing | Insurance Financing — The Company annually renews its commercial insurance policies, and may choose to either directly pay the insurance premium or finance a portion of the premium. If the Company finances a portion of the premium, a prepaid insurance asset is recorded and amortized monthly over the relevant period. |
Concentration of Credit Risk | Concentration of Credit Risk — The Company’s assets that are potentially subject to concentrations of credit risk are cash and cash equivalents and trade accounts receivable. Cash balances are maintained in financial institutions, which at times exceed federally insured limits. The Company monitors the financial condition of the financial institutions in which accounts are maintained and has not experienced any losses in such accounts. The receivables of the Company are with credible operators in the oil and natural gas industries. The Company performs ongoing evaluations as to the financial condition of its customers with respect to trade receivables. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adopted in 2021 In December 2019, the FASB Accounting Standards Update ("ASU") issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. Effective January 1, 2021, we adopted this guidance and the adoption did not materially affect the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted in 2021 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform , which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate ("LIBOR"). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This guidance is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company’s consolidated financial statements. |
Fair Value Measurements | Fair value ("FV") is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used, when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions other market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounts receivable, allowance for credit loss | The table below shows a summary of allowance for credit losses during the year ended December 31, 2021: ($ in thousands) 2021 2020 2019 Balance - January 1, 2021 $ 1,497 $ 1,049 $ 100 Provision for credit losses during the period—net 282 448 949 Write-off during the period (1,562) — — Balance - December 31, 2021 $ 217 $ 1,497 $ 1,049 |
Property and equipment | Depreciation of property and equipment is provided on the straight‑line method over the following estimated useful lives: Land Indefinite Buildings and property improvements 5 - 30 years Vehicles 1 ‑ 5 years Equipment 1 ‑ 20 years Leasehold improvements 5 ‑ 20 years ($ in thousands) December 31, 2021 2020 Land $ 10,551 $ 10,551 Buildings 30,045 29,312 Equipment and vehicles 1,248,464 1,242,698 Leasehold improvements 8,159 8,035 Subtotal 1,297,219 1,290,596 Less accumulated depreciation (488,725) (410,119) Property and equipment — net $ 808,494 $ 880,477 |
SUPPLEMENTAL CASH FLOWS INFOR_2
SUPPLEMENTAL CASH FLOWS INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow disclosures | ($ in thousands) Year Ended December 31, 2021 2020 2019 Supplemental cash flows disclosures Interest paid $ 72 $ 2,207 $ 6,433 Income taxes paid $ 196 $ 1,786 $ 1,018 Supplemental disclosure of non‑cash investing and financing activities Capital expenditures included in accounts payable and accrued liabilities $ 36,818 $ 14,803 $ 31,226 Non-cash purchases of property and equipment $ — $ — $ — |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Depreciation of property and equipment is provided on the straight‑line method over the following estimated useful lives: Land Indefinite Buildings and property improvements 5 - 30 years Vehicles 1 ‑ 5 years Equipment 1 ‑ 20 years Leasehold improvements 5 ‑ 20 years ($ in thousands) December 31, 2021 2020 Land $ 10,551 $ 10,551 Buildings 30,045 29,312 Equipment and vehicles 1,248,464 1,242,698 Leasehold improvements 8,159 8,035 Subtotal 1,297,219 1,290,596 Less accumulated depreciation (488,725) (410,119) Property and equipment — net $ 808,494 $ 880,477 |
ACCRUED AND OTHER CURRENT LIA_2
ACCRUED AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Accrued liabilities | Accrued and other current liabilities consisted of the following: ($ in thousands) December 31, 2021 2020 Accrued insurance — 6,553 Accrued payroll and related expenses 6,816 4,640 Capital expenditure, taxes and others accruals 13,951 13,483 Total $ 20,767 $ 24,676 |
REPORTABLE SEGMENT INFORMATION
REPORTABLE SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of segment information | A reconciliation from segment level financial information to the consolidated statement of operations is provided in the table below (in thousands): Pressure All Other Total Year ended and as of December 31, 2021 Service revenue $ 857,642 $ 16,872 $ 874,514 Adjusted EBITDA $ 181,688 $ (46,681) $ 135,007 Depreciation and amortization $ 129,478 $ 3,899 $ 133,377 Capital expenditures $ 162,044 $ 3,114 $ 165,158 Total assets $ 1,023,037 $ 38,199 $ 1,061,236 Pressure All Other Total Year ended and as of December 31, 2020 Service revenue $ 773,474 $ 15,758 $ 789,232 Adjusted EBITDA $ 174,030 $ (32,567) $ 141,463 Depreciation and amortization $ 148,659 $ 4,631 $ 153,290 Impairment expense $ 36,907 $ 1,095 $ 38,002 Capital expenditures $ 78,154 $ 3,091 $ 81,245 Total assets $ 1,009,631 $ 41,108 $ 1,050,739 Pressure All Other Total Year ended and as of December 31, 2019 Service revenue $ 2,001,627 $ 50,687 $ 2,052,314 Adjusted EBITDA $ 533,760 $ (14,691) $ 519,069 Depreciation and amortization $ 139,348 $ 5,956 $ 145,304 Impairment expense $ — $ 3,405 $ 3,405 Capital expenditures $ 387,119 $ 13,552 $ 400,671 Goodwill $ 9,425 $ — $ 9,425 Total assets $ 1,381,811 $ 54,300 $ 1,436,111 Reconciliation of net income (loss) to adjusted EBITDA (in thousands): Pressure All Other Total Year ended December 31, 2021 Net loss $ (12,723) $ (41,462) $ (54,185) Depreciation and amortization 129,478 3,899 133,377 Interest expense — 614 614 Income tax benefit — (14,252) (14,252) Loss (gain) on disposal of assets 64,903 (257) 64,646 Stock‑based compensation — 11,519 11,519 Other income — (873) (873) Other general and administrative expense (1) — (6,471) (6,471) Severance expense 30 602 632 Adjusted EBITDA $ 181,688 $ (46,681) $ 135,007 Pressure All Other Total Year ended December 31, 2020 Net loss $ (68,271) $ (38,749) $ (107,020) Depreciation and amortization 148,659 4,631 153,290 Interest expense 1 2,382 2,383 Income tax benefit — (27,480) (27,480) Loss on disposal of assets 56,659 1,477 58,136 Impairment expense 36,907 1,095 38,002 Stock‑based compensation — 9,100 9,100 Other expense — 874 874 Other general and administrative expense (1) — 13,038 13,038 Retention bonus and severance expense 75 1,065 1,140 Adjusted EBITDA $ 174,030 $ (32,567) $ 141,463 Pressure All Other Total Year ended December 31, 2019 Net income (loss) $ 281,090 $ (118,080) $ 163,010 Depreciation and amortization 139,348 5,956 145,304 Interest expense 51 7,090 7,141 Income tax expense — 50,494 50,494 Loss on disposal of assets 106,178 633 106,811 Impairment expense — 3,405 3,405 Stock‑based compensation — 7,776 7,776 Other expense — 717 717 Other general and administrative expense (1) — 25,208 25,208 Deferred IPO bonus, retention bonus and severance expense 7,093 2,110 9,203 Adjusted EBITDA $ 533,760 $ (14,691) $ 519,069 (1) During the years ended December 31, 2021, 2020 and 2019, other general and administrative expense (net of reimbursement from insurance carriers) primarily relates to nonrecurring professional fees paid to external consultants in connection with our audit committee review, SEC investigation and shareholder litigation, net of insurance recoveries. During the years ended December 31, 2021, 2020 and 2019, we received reimbursement of approximately $9.8 million, $0.6 million and $0, respectively, from our insurance carriers in connection with the SEC investigation and shareholder litigation. |
Major customers | The Company had revenue from the following significant customers that accounted for the following percentages of the Company’s total revenue: Year Ended December 31, 2021 2020 2019 Customer A 54.2 % 42.5 % 25.5 % Customer B 14.6 % 20.3 % 20.9 % Customer C 8.8 % 9.3 % 13.2 % Customer D 4.4 % 8.6 % 9.2 % Customer E 3.8 % 5.8 % 8.2 % The above significant customers’ revenue that relates to pressure pumping is below: Year Ended December 31, 2021 2020 2019 Customer A 99.6 % 99.8 % 99.7 % Customer B 100.0 % 97.6 % 95.4 % Customer C 99.7 % 99.9 % 99.9 % Customer D 87.6 % 99.7 % 100.0 % Customer E 100.0 % 85.7 % 100.0 % |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculations of net income (loss) per share | (In thousands, except for per share data) Year Ended December 31, 2021 2020 2019 Numerator (both basic and diluted) Net (loss) income relevant to common stockholders $ (54,185) $ (107,020) $ 163,010 Denominator Denominator for basic net (loss) income per share 102,655 100,829 100,472 Dilutive effect of stock options — — 2,929 Dilutive effect of performance stock units — — 169 Dilutive effect of restricted stock units — — 179 Denominator for diluted net (loss) income per share 102,655 100,829 103,750 Basic net (loss) income per common share $ (0.53) $ (1.06) $ 1.62 Diluted net (loss) income per common share $ (0.53) $ (1.06) $ 1.57 |
Schedule of antidilutive securities excluded from computation of earnings per share | As shown in the table below, the following stock options, restricted stock units and performance stock units outstanding as of December 31, 2021, 2020 and 2019 have not been included in the calculation of diluted (loss) income per common share for the years ended December 31, 2021, 2020 and 2019 because they would be anti-dilutive to the calculation of diluted net (loss) income per common share: (In thousands) 2021 2020 2019 Stock options 798 4,200 — Restricted stock units 1,413 1,165 — Performance stock units 1,586 1,019 — Total 3,797 6,384 — |
STOCK_BASED COMPENSATION (Table
STOCK‑BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options, activity | A summary of the stock option activity during the year ended December 31, 2021 is presented below (in thousands, except for exercise price): Number Weighted Outstanding at January 1, 2021 4,200 $ 4.82 Granted — $ — Exercised (3,326) $ 3.42 Forfeited — $ 0.00 Expired (76) $ 14.00 Outstanding at December 31, 2021 798 $ 9.77 Exercisable at December 31, 2021 798 $ 9.77 |
Schedule of RSUs, activity | The following table summarizes the RSUs activity during the year December 31, 2021 (in thousands, except for fair value): Number of Weighted Outstanding at January 1, 2021 1,165 $ 8.50 Granted 852 $ 9.69 Vested (589) $ 8.52 Forfeited (15) $ 10.27 Canceled — $ — Outstanding at December 31, 2021 1,413 $ 9.19 |
Schedule of performance shares, activity | The following table summarizes information about PSUs activity during the year ended December 31, 2021 (in thousands, except for fair value): Period Target Shares Outstanding at January 1, 2021 Target Target Shares Vested Target Target Shares Outstanding at December 31, 2021 Weighted 2018 84 — (84) — — $ 27.51 2019 126 — — — 126 $ 27.49 2020 809 — — — 809 $ 8.30 2021 — 651 — — 651 $ 14.76 Total 1,019 651 (84) — 1,586 $ 12.48 Weighted Average FV Per Share $ 12.27 $ 14.76 $ 27.51 $ — $ 12.48 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The components of the provision for income taxes are as follows: ($ in thousands) Year Ended December 31, 2021 2020 2019 Federal: Current $ (52) $ — $ — Deferred (15,143) (27,104) 47,090 (15,195) (27,104) 47,090 State: Current 88 221 1,736 Deferred 855 (597) 1,668 943 (376) 3,404 Total income tax expense $ (14,252) $ (27,480) $ 50,494 |
Schedule of effective income tax rate reconciliation | Reconciliation between the amounts determined by applying the federal statutory rate of 21% for years ended December 31, 2021, 2020 and 2019 to income tax (benefit) expense is as follows: ($ in thousands) Year Ended December 31, 2021 2020 2019 Taxes at federal statutory rate $ (14,372) $ (28,245) $ 44,836 State taxes, net of federal benefit 61 154 2,504 Non-deductible expenses 745 314 3,683 Stock-based compensation (2,549) 751 (717) Valuation allowance 825 868 — Other 1,038 (1,322) 188 Total income tax (benefit) expense $ (14,252) $ (27,480) $ 50,494 |
Schedule of deferred tax assets and liabilities | The significant items giving rise to deferred tax assets (liabilities) are as follows: ($ in thousands) December 31, 2021 2020 Deferred Income Tax Assets Accrued liabilities $ 911 $ 472 Allowance for credit losses 46 316 Goodwill and other intangible assets 2,161 3,408 Stock‑based compensation 3,382 4,015 Net operating losses 87,822 85,827 Other 56 56 Total deferred tax assets 94,378 94,094 Valuation allowance (1,693) (868) Total deferred tax assets — net $ 92,685 $ 93,226 Deferred Income Tax Liabilities Property and equipment $ (152,624) $ (166,494) Prepaid expenses (1,113) (2,073) Total deferred tax liabilities $ (153,737) $ (168,567) Net deferred tax liabilities $ (61,052) $ (75,341) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating lease maturity | The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for operating lease as of December 31, 2021 are as follows: ($ in thousands) Totals 2022 $ 389 2023 98 Total undiscounted future lease payments 487 Amount representing interest (21) Present value of future lease payments (lease obligation) $ 466 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | The following table sets forth our unaudited quarterly results for each of the last four quarters for the years ended December 31, 2021 and 2020. This unaudited quarterly information has been prepared on the same basis as our annual audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that are necessary to present fairly the financial information for the fiscal quarters presented. (In thousands, except for per share data) 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue - Service revenue $ 161,458 $ 216,887 $ 250,099 $ 246,070 Gross profit $ 38,080 $ 54,050 $ 61,409 $ 58,709 Net income $ (20,375) $ (8,511) $ (5,067) $ (20,232) Net income per common share: Basic $ (0.20) $ (0.08) $ (0.05) $ (0.20) Diluted $ (0.20) $ (0.08) $ (0.05) $ (0.20) Weighted average common shares outstanding: Basic 101,550 102,398 103,257 103,390 Diluted 101,550 102,398 103,257 103,390 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue - Service revenue $ 395,069 $ 106,109 $ 133,710 $ 154,344 Gross profit $ 94,221 $ 37,916 $ 34,118 $ 38,698 Net income $ (7,804) $ (25,920) $ (29,184) $ (44,112) Net income per common share: Basic $ (0.08) $ (0.26) $ (0.29) $ (0.44) Diluted $ (0.08) $ (0.26) $ (0.29) $ (0.44) Weighted average common shares outstanding: Basic 100,687 100,821 100,897 100,911 Diluted 100,687 100,821 100,897 100,911 |
ORGANIZATION AND HISTORY (Detai
ORGANIZATION AND HISTORY (Details) - Pioneer and Pioneer Pumping Services shares in Millions, $ in Millions | Dec. 31, 2018USD ($)hydraulic_horse_powercoiled_tubing_unitshares | Dec. 31, 2021fleet |
Class of Stock [Line Items] | ||
Payments for asset acquisition | $ | $ 110 | |
Stock issued in asset acquisition (in shares) | shares | 16.6 | |
Hydraulic fracturing fleet, hydraulic horse power (HHP) | hydraulic_horse_power | 510,000 | |
Number of coiled tubing units | coiled_tubing_unit | 4 | |
Service provider, term | 10 years | |
Number of fleets committed | fleet | 8 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Accrued revenue | $ 19,400,000 | $ 8,600,000 | |||
Revenue, remaining performance obligation, amount | 14,700,000 | ||||
Allowance for doubtful accounts | 217,000 | 1,497,000 | $ 1,049,000 | $ 100,000 | |
Loss on disposal of assets | 64,646,000 | 58,136,000 | 106,811,000 | ||
Impairment of Long-Lived Assets Held-for-use | 0 | ||||
Goodwill | 9,425,000 | ||||
Advertising expense | 800,000 | 400,000 | 1,200,000 | ||
Amortization of deferred debt issuance costs | 542,000 | 543,000 | 542,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||||
Property, Plant and Equipment [Line Items] | |||||
Revenue, remaining performance obligation, amount | $ 16,800,000 | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 month | ||||
Technology Stimulation Services, LLC | |||||
Property, Plant and Equipment [Line Items] | |||||
Consideration transferred | $ 24,400,000 | ||||
Property, plant, and equipment | 15,000,000 | ||||
Goodwill | $ 9,400,000 | ||||
Goodwill impairment expense | 9,400,000 | 0 | |||
Pressure Pumping | |||||
Property, Plant and Equipment [Line Items] | |||||
Loss on disposal of assets | $ 64,903,000 | 56,659,000 | 106,178,000 | ||
Impairment of Long-Lived Assets Held-for-use | $ 0 | 27,500,000 | |||
Goodwill | 9,425,000 | ||||
Drilling | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 1,100,000 | 1,200,000 | |||
Flowback Asset Groups | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 2,200,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,497 | $ 1,049 | $ 100 |
Provision for credit losses during the period—net | 282 | 448 | 949 |
Write-off during the period | (1,562) | 0 | 0 |
Ending balance | $ 217 | $ 1,497 | $ 1,049 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Buildings and property improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Minimum | Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum | Buildings and property improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Maximum | Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
SUPPLEMENTAL CASH FLOWS INFOR_3
SUPPLEMENTAL CASH FLOWS INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental cash flows disclosures | |||
Interest paid | $ 72 | $ 2,207 | $ 6,433 |
Income taxes paid | 196 | 1,786 | 1,018 |
Supplemental disclosure of non‑cash investing and financing activities | |||
Capital expenditures included in accounts payable and accrued liabilities | 36,818 | 14,803 | 31,226 |
Non-cash purchases of property and equipment | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | $ 0 | ||||
Additions or disposals of goodwill | 0 | $ 0 | $ 0 | ||
Pressure Pumping | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | $ 0 | 27,500,000 | |||
All Other | Hydraulic Fracturing and Flowback and Drilling Segments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of property and equipment | $ 28,600,000 | 3,400,000 | |||
Pumping Reportable Segment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill impairment expense | $ 9,400,000 | $ 9,400,000 | $ 0 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,297,219 | $ 1,290,596 | |
Less accumulated depreciation | (488,725) | (410,119) | |
Property and equipment — net | 808,494 | 880,477 | |
Depreciation expense | 133,400 | 153,300 | $ 145,300 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 10,551 | 10,551 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 30,045 | 29,312 | |
Equipment and vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,248,464 | 1,242,698 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 8,159 | $ 8,035 |
LONG_TERM DEBT - Narrative (Det
LONG‑TERM DEBT - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 300,000,000 |
Line of credit facility, coverage ratio establishing threshold, option one, percentage of facility size and borrowing base | 10.00% |
Line of credit facility, coverage ratio establishing threshold, option two, amount | $ 22,500,000 |
ABL Facility | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR floor | 0.00% |
Revolving credit facility | Line of Credit | ABL Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, borrowing base, accounts receivable percentage | 85.00% |
Borrowing base | $ 61,100,000 |
Minimum | ABL Facility | LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.75% |
Minimum | ABL Facility | Base Rate | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.75% |
Maximum | ABL Facility | LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.25% |
Maximum | ABL Facility | Base Rate | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.25% |
ACCRUED AND OTHER CURRENT LIA_3
ACCRUED AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Accrued insurance | $ 0 | $ 6,553 |
Accrued payroll and related expenses | 6,816 | 4,640 |
Capital expenditure, taxes and others accruals | 13,951 | 13,483 |
Total | $ 20,767 | $ 24,676 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||||
Employer match percentage of employee contribution | 100.00% | |||
Maximum annual match, percentage of gross salary | 6.00% | |||
Annual vesting percentage of company contributions | 25.00% | |||
Vesting term | 4 years | |||
Plan expense | $ 2.8 | $ 2.1 | $ 3 |
REPORTABLE SEGMENT INFORMATIO_2
REPORTABLE SEGMENT INFORMATION - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($)turbine | Dec. 31, 2021USD ($)segmentturbine | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | |
Revenue, Major Customer [Line Items] | ||||||
Number of operating segments | segment | 3 | |||||
Loss on disposal of assets | $ 64,646 | $ 58,136 | $ 106,811 | |||
Number of reportable segments | segment | 1 | |||||
Total corporate and administrative expense | $ 82,921 | 86,768 | 105,076 | |||
Discontinued Operations, Disposed of by Sale | Drilling Rigs and Ancillary Assets | ||||||
Revenue, Major Customer [Line Items] | ||||||
Consideration for disposal of assets | $ 500 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Flowback Operating Segment Dispoal Group | ||||||
Revenue, Major Customer [Line Items] | ||||||
Consideration for disposal of assets | $ 1,600 | |||||
Pressure Pumping | ||||||
Revenue, Major Customer [Line Items] | ||||||
Loss on disposal of assets | $ 64,903 | $ 56,659 | $ 106,178 | |||
Pressure Pumping | Discontinued Operations, Disposed of by Sale | ||||||
Revenue, Major Customer [Line Items] | ||||||
Number of turbines | turbine | 2 | 2 | ||||
Proceeds from divestiture of businesses | $ 36,000 | |||||
Disposal group, including discontinued operation, assets | 39,500 | $ 39,500 | ||||
Loss on disposal of assets | $ 3,500 | |||||
Pressure Pumping | Revenue from Contract with Customer, Segment Benchmark | Operating Segment Concentration Risk | Hydraulic fracturing | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration risk percentage | 93.30% | 94.20% | 95.60% | |||
Corporate, non-segment | ||||||
Revenue, Major Customer [Line Items] | ||||||
Total corporate and administrative expense | $ 38,500 | $ 31,600 | $ 113,000 |
REPORTABLE SEGMENT INFORMATIO_3
REPORTABLE SEGMENT INFORMATION - Reconciliation of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Service revenue | $ 246,070 | $ 250,099 | $ 216,887 | $ 161,458 | $ 154,344 | $ 133,710 | $ 106,109 | $ 395,069 | $ 874,514 | $ 789,232 | $ 2,052,314 |
Adjusted EBITDA | 135,007 | 141,463 | 519,069 | ||||||||
Depreciation and amortization | 133,377 | 153,290 | 145,304 | ||||||||
Impairment expense | 0 | 38,002 | 3,405 | ||||||||
Capital expenditures | 165,158 | 81,245 | 400,671 | ||||||||
Goodwill | 9,425 | ||||||||||
Total assets | 1,061,236 | 1,050,739 | 1,061,236 | 1,050,739 | 1,436,111 | ||||||
Pressure Pumping | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Service revenue | 857,642 | 773,474 | 2,001,627 | ||||||||
Adjusted EBITDA | 181,688 | 174,030 | 533,760 | ||||||||
Depreciation and amortization | 129,478 | 148,659 | 139,348 | ||||||||
Impairment expense | 36,907 | 0 | |||||||||
Capital expenditures | 162,044 | 78,154 | 387,119 | ||||||||
Goodwill | 9,425 | ||||||||||
Total assets | 1,023,037 | 1,009,631 | 1,023,037 | 1,009,631 | 1,381,811 | ||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Service revenue | 16,872 | 15,758 | 50,687 | ||||||||
Adjusted EBITDA | (46,681) | (32,567) | (14,691) | ||||||||
Depreciation and amortization | 3,899 | 4,631 | 5,956 | ||||||||
Impairment expense | 1,095 | 3,405 | |||||||||
Capital expenditures | 3,114 | 3,091 | 13,552 | ||||||||
Goodwill | 0 | ||||||||||
Total assets | $ 38,199 | $ 41,108 | $ 38,199 | $ 41,108 | $ 54,300 |
REPORTABLE SEGMENT INFORMATIO_4
REPORTABLE SEGMENT INFORMATION - Reconciliation of Net Income (Loss) to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
NET (LOSS) INCOME | $ (20,232) | $ (5,067) | $ (8,511) | $ (20,375) | $ (44,112) | $ (29,184) | $ (25,920) | $ (7,804) | $ (54,185) | $ (107,020) | $ 163,010 |
Depreciation and amortization | 133,377 | 153,290 | 145,304 | ||||||||
Interest expense | 614 | 2,383 | 7,141 | ||||||||
Income tax expense (benefit) | (14,252) | (27,480) | 50,494 | ||||||||
Loss on disposal of assets | 64,646 | 58,136 | 106,811 | ||||||||
Impairment expense | 0 | 38,002 | 3,405 | ||||||||
Stock‑based compensation | 11,519 | 9,100 | 7,776 | ||||||||
Other (income) expense | (873) | 874 | 717 | ||||||||
Other general and administrative expense | (6,471) | 13,038 | 25,208 | ||||||||
Retention bonus and severance expense | 632 | 1,140 | 9,203 | ||||||||
Adjusted EBITDA | 135,007 | 141,463 | 519,069 | ||||||||
Reimbursement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other general and administrative expense | (9,800) | (600) | 0 | ||||||||
Pressure Pumping | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
NET (LOSS) INCOME | (12,723) | (68,271) | 281,090 | ||||||||
Depreciation and amortization | 129,478 | 148,659 | 139,348 | ||||||||
Interest expense | 0 | 1 | 51 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Loss on disposal of assets | 64,903 | 56,659 | 106,178 | ||||||||
Impairment expense | 36,907 | 0 | |||||||||
Stock‑based compensation | 0 | 0 | 0 | ||||||||
Other (income) expense | 0 | 0 | 0 | ||||||||
Other general and administrative expense | 0 | 0 | 0 | ||||||||
Retention bonus and severance expense | 30 | 75 | 7,093 | ||||||||
Adjusted EBITDA | 181,688 | 174,030 | 533,760 | ||||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
NET (LOSS) INCOME | (41,462) | (38,749) | (118,080) | ||||||||
Depreciation and amortization | 3,899 | 4,631 | 5,956 | ||||||||
Interest expense | 614 | 2,382 | 7,090 | ||||||||
Income tax expense (benefit) | (14,252) | (27,480) | 50,494 | ||||||||
Loss on disposal of assets | (257) | 1,477 | 633 | ||||||||
Impairment expense | 1,095 | 3,405 | |||||||||
Stock‑based compensation | 11,519 | 9,100 | 7,776 | ||||||||
Other (income) expense | (873) | 874 | 717 | ||||||||
Other general and administrative expense | (6,471) | 13,038 | 25,208 | ||||||||
Retention bonus and severance expense | 602 | 1,065 | 2,110 | ||||||||
Adjusted EBITDA | $ (46,681) | $ (32,567) | $ (14,691) |
REPORTABLE SEGMENT INFORMATIO_5
REPORTABLE SEGMENT INFORMATION - Major Customers (Details) - Revenue from Contract with Customer Benchmark | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Customer Concentration Risk | Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 54.20% | 42.50% | 25.50% |
Customer Concentration Risk | Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.60% | 20.30% | 20.90% |
Customer Concentration Risk | Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 8.80% | 9.30% | 13.20% |
Customer Concentration Risk | Customer D | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 4.40% | 8.60% | 9.20% |
Customer Concentration Risk | Customer E | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 3.80% | 5.80% | 8.20% |
Product Concentration Risk | Customer A | Pressure Pumping | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 99.60% | 99.80% | 99.70% |
Product Concentration Risk | Customer B | Pressure Pumping | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 100.00% | 97.60% | 95.40% |
Product Concentration Risk | Customer C | Pressure Pumping | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 99.70% | 99.90% | 99.90% |
Product Concentration Risk | Customer D | Pressure Pumping | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 87.60% | 99.70% | 100.00% |
Product Concentration Risk | Customer E | Pressure Pumping | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 100.00% | 85.70% | 100.00% |
NET (LOSS) INCOME PER SHARE - C
NET (LOSS) INCOME PER SHARE - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator (both basic and diluted) | |||||||||||
Net (loss) income relevant to common stockholders | $ (20,232) | $ (5,067) | $ (8,511) | $ (20,375) | $ (44,112) | $ (29,184) | $ (25,920) | $ (7,804) | $ (54,185) | $ (107,020) | $ 163,010 |
Denominator | |||||||||||
Denominator for basic net (loss) income per share (in shares) | 103,390 | 103,257 | 102,398 | 101,550 | 100,911 | 100,897 | 100,821 | 100,687 | 102,655 | 100,829 | 100,472 |
Denominator for diluted net (loss) income per share (in shares) | 103,390 | 103,257 | 102,398 | 101,550 | 100,911 | 100,897 | 100,821 | 100,687 | 102,655 | 100,829 | 103,750 |
Basic net (loss) income per common share (in dollars per share) | $ (0.20) | $ (0.05) | $ (0.08) | $ (0.20) | $ (0.44) | $ (0.29) | $ (0.26) | $ (0.08) | $ (0.53) | $ (1.06) | $ 1.62 |
Diluted net (loss) income per common share (in dollars per share) | $ (0.20) | $ (0.05) | $ (0.08) | $ (0.20) | $ (0.44) | $ (0.29) | $ (0.26) | $ (0.08) | $ (0.53) | $ (1.06) | $ 1.57 |
Stock options | |||||||||||
Denominator | |||||||||||
Dilutive effect of stock options/units (in shares) | 0 | 0 | 2,929 | ||||||||
Performance stock units | |||||||||||
Denominator | |||||||||||
Dilutive effect of stock options/units (in shares) | 0 | 0 | 169 | ||||||||
Restricted stock units | |||||||||||
Denominator | |||||||||||
Dilutive effect of stock options/units (in shares) | 0 | 0 | 179 |
NET (LOSS) INCOME PER SHARE - A
NET (LOSS) INCOME PER SHARE - Anti-dilutive Shares Excluded from Calculation (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 3,797 | 6,384 | 0 |
Stock options | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 798 | 4,200 | 0 |
Restricted stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,413 | 1,165 | 0 |
Performance stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,586 | 1,019 | 0 |
STOCK_BASED COMPENSATION - Narr
STOCK‑BASED COMPENSATION - Narrative (Details) $ in Millions | Mar. 16, 2017installmentshares | Jul. 19, 2016installmentshares | Jun. 14, 2013shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Oct. 22, 2020shares | Mar. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted (in shares) | shares | 0 | 0 | 0 | |||||
Options, outstanding, intrinsic value | $ | $ 1.6 | |||||||
Options, exercisable, intrinsic value | $ | 1.6 | |||||||
Options, exercised, intrinsic value | $ | $ 19.8 | |||||||
Exercised (in shares) | shares | 3,326,000 | |||||||
Term for outstanding stock | 4 years 1 month 6 days | |||||||
Remaining contractual term | 4 years 1 month 6 days | |||||||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | |||||||
Tax benefit from compensation expense | $ | $ 11.5 | $ 9.1 | $ 7.8 | |||||
Compensation not yet recognized, stock options | $ | $ 16.4 | |||||||
Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted (in shares) | shares | 793,738 | 1,274,549 | 2,799,408 | |||||
Award vesting rights | 25.00% | |||||||
Expiration period | 10 years | 10 years | 10 years | |||||
Number of installments | installment | 4 | 5 | ||||||
Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | shares | 851,885 | |||||||
Vesting period | 3 years | |||||||
Stock-based compensation | $ | $ 6.2 | 5.1 | 3.5 | |||||
Compensation not yet recognized, other than options | $ | $ 7.4 | |||||||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | |||||||
Performance stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | shares | 650,774 | |||||||
Stock-based compensation | $ | $ 5.5 | $ 1.7 | $ 3.8 | |||||
Percentage of outstanding stock minimum | 0.00% | |||||||
Percentage of outstanding stock maximum | 200.00% | |||||||
Award vesting period | 3 years | |||||||
2017 Incentive Award Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | shares | 5,800,000 | |||||||
Shares issued in period (in shares) | shares | 0 | |||||||
2020 Long Term Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | shares | 4,650,000 |
STOCK_BASED COMPENSATION - Summ
STOCK‑BASED COMPENSATION - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Outstanding beginning balance (in shares) | 4,200,000 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (3,326,000) | ||
Forfeited (in shares) | 0 | ||
Expired (in shares) | (76,000) | ||
Outstanding ending balance (in shares) | 798,000 | 4,200,000 | |
Exercisable ending balance (in shares) | 798,000 | ||
Weighted Average Exercise Price | |||
Outstanding beginning balance (in dollars per share) | $ 4.82 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 3.42 | ||
Forfeited (in dollars per share) | 0 | ||
Expired (in dollars per share) | 14 | ||
Outstanding ending balance (in dollars per share) | 9.77 | $ 4.82 | |
Exercisable ending balance (in dollars per share) | $ 9.77 |
STOCK_BASED COMPENSATION - Su_2
STOCK‑BASED COMPENSATION - Summary of RSU Activity (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 1,165,000 |
Granted (in shares) | shares | 851,885 |
Vested (in shares) | shares | (589,000) |
Forfeited (in shares) | shares | (15,000) |
Canceled (in shares) | shares | 0 |
Outstanding ending balance (in shares) | shares | 1,413,000 |
Weighted Average Grant Date Fair Value ("FV") | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 8.50 |
Granted (in dollars per share) | $ / shares | 9.69 |
Vested (in dollars per share) | $ / shares | 8.52 |
Forfeited (in dollars per share) | $ / shares | 10.27 |
Canceled (in dollars per share) | $ / shares | 0 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 9.19 |
STOCK_BASED COMPENSATION - Su_3
STOCK‑BASED COMPENSATION - Summary of Performance Shares Activity (Details) - Performance stock units | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 1,019,000 |
Target Shares Granted (in shares) | 650,774 |
Target Shares Vested (in shares) | (84,000) |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 1,586,000 |
Weighted Average FV Per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 12.27 |
Target Shares Granted (in dollars per share) | $ / shares | 14.76 |
Target Shares Vested (in dollars per share) | $ / shares | 27.51 |
Target Shares Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 12.48 |
2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 84,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | (84,000) |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 0 |
Weighted Average FV Per Share | |
Outstanding ending balance (in dollars per share) | $ / shares | $ 27.51 |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 126,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 126,000 |
Weighted Average FV Per Share | |
Outstanding ending balance (in dollars per share) | $ / shares | $ 27.49 |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 809,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 809,000 |
Weighted Average FV Per Share | |
Outstanding ending balance (in dollars per share) | $ / shares | $ 8.30 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 0 |
Target Shares Granted (in shares) | 651,000 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 651,000 |
Weighted Average FV Per Share | |
Outstanding ending balance (in dollars per share) | $ / shares | $ 14.76 |
INCOME TAXES - Tax Provision_Be
INCOME TAXES - Tax Provision/Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal: | |||
Current | $ (52) | $ 0 | $ 0 |
Deferred | (15,143) | (27,104) | 47,090 |
Federal income tax expense (benefit) | (15,195) | (27,104) | 47,090 |
State: | |||
Current | 88 | 221 | 1,736 |
Deferred | 855 | (597) | 1,668 |
State income tax expense (benefit) | 943 | (376) | 3,404 |
Income tax expense (benefit) | $ (14,252) | $ (27,480) | $ 50,494 |
INCOME TAXES - Tax Reconciliati
INCOME TAXES - Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Taxes at federal statutory rate | $ (14,372) | $ (28,245) | $ 44,836 |
State taxes, net of federal benefit | 61 | 154 | 2,504 |
Non-deductible expenses | 745 | 314 | 3,683 |
Stock-based compensation | (2,549) | 751 | (717) |
Valuation allowance | 825 | 868 | 0 |
Other | 1,038 | (1,322) | 188 |
Income tax expense (benefit) | $ (14,252) | $ (27,480) | $ 50,494 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Income Tax Assets | ||
Accrued liabilities | $ 911 | $ 472 |
Allowance for credit losses | 46 | 316 |
Goodwill and other intangible assets | 2,161 | 3,408 |
Stock‑based compensation | 3,382 | 4,015 |
Net operating losses | 87,822 | 85,827 |
Other | 56 | 56 |
Total deferred tax assets | 94,378 | 94,094 |
Valuation allowance | (1,693) | (868) |
Total deferred tax assets — net | 92,685 | 93,226 |
Deferred Income Tax Liabilities | ||
Property and equipment | (152,624) | (166,494) |
Prepaid expenses | (1,113) | (2,073) |
Total deferred tax liabilities | (153,737) | (168,567) |
Net deferred tax liabilities | $ (61,052) | $ (75,341) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ (1,693) | $ (868) |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 408,000 | |
Federal | Pre-2018 Tax Periods | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 219,500 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 50,100 |
RELATED_PARTY TRANSACTIONS (Det
RELATED‑PARTY TRANSACTIONS (Details) | Dec. 31, 2018USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Executive officer and former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Receivable from related parties | $ 0 | $ 0 | |||
Pioneer and Pioneer Pumping Services | |||||
Related Party Transaction [Line Items] | |||||
Receivable from related parties | 62,100,000 | 41,700,000 | |||
Revenue from related parties | 473,800,000 | 335,400,000 | $ 524,200,000 | ||
Reimbursement from former executive officer, for the use of personnel to operate transportation equipment | 0 | 2,700,000 | $ 4,200,000 | ||
Payable to related parties | 0 | 0 | |||
Related party leasing | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | $ 100,000 | ||||
Related party leasing | Former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Number of properties adjacent to corporate office subject to leases | property | 5 | ||||
Related party leasing | Corporate Offices | |||||
Related Party Transaction [Line Items] | |||||
Payments to acquire buildings | $ 1,500,000 | ||||
Related party leasing | Property 1 | Former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | $ 30,000 | ||||
Related party leasing | Property 2 | Former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | 30,000 | ||||
Related party leasing | Property 3 | Former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | 100,000 | ||||
Related party leasing | Property 4 | Former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | 100,000 | ||||
Related party leasing | Property 5 | Former executive officer and director | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | 200,000 | ||||
Related party leasing | Drilling Yard | Former executive officer | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | 100,000 | ||||
Equipment maintenance and repair services | Executive officer | |||||
Related Party Transaction [Line Items] | |||||
Expenses with related party | $ 0 | $ 1,200,000 | |||
Asset acquisition | Pioneer and Pioneer Pumping Services | |||||
Related Party Transaction [Line Items] | |||||
Consideration for asset acquisition | $ 16,600,000 | ||||
Payments acquire assets, gross | $ 110,000,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2013 | |
Operating Leases | |||||||
Cash paid for operating lease | $ 400 | $ 400 | $ 400 | ||||
Discount rate | 6.70% | ||||||
ROU asset (derecognition) | $ 409 | 709 | |||||
Present value of future lease payments (lease obligation) | 466 | ||||||
Operating lease right-of-use asset cost | 1,200 | 1,200 | |||||
Accumulated amortization | 800 | 500 | |||||
Operating lease, expense | 300 | 300 | 400 | ||||
Finance Leases | |||||||
Funds to purchase additional hydraulic fracturing fleets and other equipment | 143,523 | 100,603 | $ 502,894 | ||||
Cash paid for finance lease | 30 | ||||||
Short-Term Leases | |||||||
Asset lease | 600 | $ 1,000 | |||||
Operating lease, lease income | $ 3,000 | ||||||
Real Estate Lease | |||||||
Operating Leases | |||||||
Term of contract | 10 years | ||||||
Renewal term | 10 years | ||||||
Lease term | 4 years | ||||||
Crew Camp Lease | |||||||
Operating Leases | |||||||
Term of contract | 1 year 3 months 18 days | ||||||
Ground Lease | |||||||
Finance Leases | |||||||
Term of contract | 10 years | ||||||
Ground Lease | Land | |||||||
Finance Leases | |||||||
Funds to purchase additional hydraulic fracturing fleets and other equipment | $ 2,500 | ||||||
Accounting Standards Update 2016-02 | |||||||
Operating Leases | |||||||
Present value of future lease payments (lease obligation) | $ 2,000 | ||||||
Finance Leases | |||||||
Non-cash paid | $ 3,100 |
LEASES - Operating Lease Maturi
LEASES - Operating Lease Maturity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating | |
2022 | $ 389 |
2023 | 98 |
Total undiscounted future lease payments | 487 |
Amount representing interest | (21) |
Present value of future lease payments (lease obligation) | $ 466 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Lease commitment | $ 3,700,000 | ||||
Purchase and supply agreement | $ 5,300,000 | ||||
Notes issued | 3,700,000 | $ 3,700,000 | |||
Loss contingency, self-insurance, maximum amount | $ 10,000,000 | ||||
Sales, excise and use tax | $ 2,100,000 | ||||
Subsequent event | Texas Comptroller of Public Accounts | |||||
Property, Plant and Equipment [Line Items] | |||||
Liability (refund) adjustment from settlement with taxing authority | $ 10,700,000 | ||||
LandCo | Former executive officer | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling interest | 44.00% |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue - Service revenue | $ 246,070 | $ 250,099 | $ 216,887 | $ 161,458 | $ 154,344 | $ 133,710 | $ 106,109 | $ 395,069 | $ 874,514 | $ 789,232 | $ 2,052,314 |
Gross profit | 58,709 | 61,409 | 54,050 | 38,080 | 38,698 | 34,118 | 37,916 | 94,221 | |||
Net income | $ (20,232) | $ (5,067) | $ (8,511) | $ (20,375) | $ (44,112) | $ (29,184) | $ (25,920) | $ (7,804) | $ (54,185) | $ (107,020) | $ 163,010 |
Net income per common share: | |||||||||||
Basic (in dollars per share) | $ (0.20) | $ (0.05) | $ (0.08) | $ (0.20) | $ (0.44) | $ (0.29) | $ (0.26) | $ (0.08) | $ (0.53) | $ (1.06) | $ 1.62 |
Diluted (in dollars per share) | $ (0.20) | $ (0.05) | $ (0.08) | $ (0.20) | $ (0.44) | $ (0.29) | $ (0.26) | $ (0.08) | $ (0.53) | $ (1.06) | $ 1.57 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 103,390 | 103,257 | 102,398 | 101,550 | 100,911 | 100,897 | 100,821 | 100,687 | 102,655 | 100,829 | 100,472 |
Diluted (in shares) | 103,390 | 103,257 | 102,398 | 101,550 | 100,911 | 100,897 | 100,821 | 100,687 | 102,655 | 100,829 | 103,750 |
Revenue from Contract with Customer, Product and Service [Extensible List] | Service [Member] | Service [Member] | Service [Member] |