Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 303 W. Wall Street, Suite 102 | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | PUMP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 107,039,149 | |
Entity Central Index Key | 0001680247 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 46,458 | $ 33,354 |
Accounts receivable - net of allowance for credit losses of $236 and $236, respectively | 273,709 | 237,012 |
Inventories | 19,447 | 17,705 |
Prepaid expenses | 13,124 | 14,640 |
Short-term investment, net | 7,143 | 7,745 |
Other current assets | 155 | 353 |
Total current assets | 360,036 | 310,809 |
PROPERTY AND EQUIPMENT - net of accumulated depreciation | 947,138 | 967,116 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 109,362 | 78,583 |
FINANCE LEASE RIGHT-OF-USE ASSETS | 42,923 | 47,449 |
OTHER NONCURRENT ASSETS: | ||
Goodwill | 23,624 | 23,624 |
Intangible assets - net of amortization | 49,183 | 50,615 |
Other noncurrent assets | 1,994 | 2,116 |
Total other noncurrent assets | 74,801 | 76,355 |
TOTAL ASSETS | 1,534,260 | 1,480,312 |
CURRENT LIABILITIES: | ||
Accounts payable | 189,216 | 161,441 |
Accrued and other current liabilities | 70,855 | 75,616 |
Operating lease liabilities | 26,534 | 17,029 |
Finance lease liabilities | 17,379 | 17,063 |
Total current liabilities | 303,984 | 271,149 |
DEFERRED INCOME TAXES | 101,045 | 93,105 |
LONG-TERM DEBT | 45,000 | 45,000 |
NONCURRENT OPERATING LEASE LIABILITIES | 56,481 | 38,600 |
NONCURRENT FINANCE LEASE LIABILITIES | 26,416 | 30,886 |
OTHER LONG-TERM LIABILITIES | 3,180 | 3,180 |
Total liabilities | 536,106 | 481,920 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
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, 106,891,337 and 109,483,281 shares issued, respectively | 107 | 109 |
Additional paid-in capital | 909,083 | 929,249 |
Retained earnings | 88,964 | 69,034 |
Total shareholders’ equity | 998,154 | 998,392 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,534,260 | $ 1,480,312 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 236 | $ 236 |
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) | 106,891,337 | 109,483,281 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] |
REVENUE - Service revenue | $ 405,843 | $ 423,570 |
COSTS AND EXPENSES | ||
Cost of services (exclusive of depreciation and amortization) | 288,641 | 280,486 |
General and administrative expenses (inclusive of stock-based compensation) | 28,226 | 28,746 |
Depreciation and amortization | 52,206 | 38,271 |
Loss on disposal of assets | 6,458 | 34,607 |
Total costs and expenses | 375,531 | 382,110 |
OPERATING INCOME | 30,312 | 41,460 |
OTHER (EXPENSE) INCOME: | ||
Interest expense | (2,029) | (667) |
Other income (expense), net | 1,405 | (3,704) |
Total other (expense) income, net | (624) | (4,371) |
INCOME BEFORE INCOME TAXES | 29,688 | 37,089 |
INCOME TAX EXPENSE | (9,758) | (8,356) |
NET INCOME | $ 19,930 | $ 28,733 |
NET INCOME PER COMMON SHARE: | ||
Basic (in dollars per share) | $ 0.18 | $ 0.25 |
Diluted (in dollars per share) | $ 0.18 | $ 0.25 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic (in shares) | 108,540 | 114,881 |
Diluted (in shares) | 108,989 | 115,331 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 114,515 | |||
Balance at beginning of period at Dec. 31, 2022 | $ 954,033 | $ 114 | $ 970,519 | $ (16,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation cost | 3,536 | 3,536 | ||
Issuance of equity awards, net (in shares) | 656 | |||
Issuance of equity awards, net | 0 | $ 1 | (1) | |
Tax withholdings paid for net settlement of equity awards | (3,379) | (3,379) | ||
Net income | 28,733 | 28,733 | ||
Balance at end of period (in shares) at Mar. 31, 2023 | 115,171 | |||
Balance at end of period at Mar. 31, 2023 | 982,923 | $ 115 | 970,675 | 12,133 |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 109,483 | |||
Balance at beginning of period at Dec. 31, 2023 | 998,392 | $ 109 | 929,249 | 69,034 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation cost | 3,742 | 3,742 | ||
Issuance of equity awards, net (in shares) | 376 | |||
Issuance of equity awards, net | 0 | $ 1 | (1) | |
Tax withholdings paid for net settlement of equity awards | (1,209) | (1,209) | ||
Share repurchases (in shares) | (2,968) | |||
Share repurchases | (22,508) | $ (3) | (22,505) | |
Excise tax on share repurchases | (193) | (193) | ||
Net income | 19,930 | 19,930 | ||
Balance at end of period (in shares) at Mar. 31, 2024 | 106,891 | |||
Balance at end of period at Mar. 31, 2024 | $ 998,154 | $ 107 | $ 909,083 | $ 88,964 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 19,930 | $ 28,733 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 52,206 | 38,271 |
Deferred income tax expense | 7,940 | 7,807 |
Amortization of deferred debt issuance costs | 108 | 64 |
Stock-based compensation | 3,742 | 3,536 |
Loss on disposal of assets | 6,458 | 34,607 |
Unrealized loss on short-term investment | 602 | 3,794 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (36,697) | (74,199) |
Other current assets | 430 | (468) |
Inventories | (1,742) | (6,366) |
Prepaid expenses | 1,530 | (548) |
Accounts payable | 21,191 | 29,823 |
Accrued and other current liabilities | (876) | 8,006 |
Net cash provided by operating activities | 74,822 | 73,060 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (34,585) | (114,839) |
Proceeds from sale of assets | 738 | 1,089 |
Net cash used in investing activities | (33,847) | (113,750) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on finance lease obligations | (4,154) | 0 |
Tax withholdings paid for net settlement of equity awards | (1,209) | (3,379) |
Share repurchases | (22,508) | 0 |
Net cash used in financing activities | (27,871) | (3,379) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 13,104 | (44,069) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period | 33,354 | 88,862 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period | 46,458 | 44,793 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Capital expenditures included in accounts payable and accrued liabilities | 26,859 | 64,784 |
Summary of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 46,458 | 26,498 |
Restricted cash | 0 | 18,295 |
Total cash, cash equivalents and restricted cash — End of period | $ 46,458 | $ 44,793 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of ProPetro Holding Corp. and its subsidiaries (the "Company," "we," "us" or "our") have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission ("SEC") for interim financial information and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. Those adjustments (which consisted of normal recurring accruals) that are, in the opinion of management, necessary for a fair presentation of the results of the interim periods have been made. Results of operations for such interim periods are not necessarily indicative of the results of operations for a full year due to changes in market conditions and other factors. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023, included in our Form 10-K filed with the SEC (our "Form 10-K"). 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. Hydraulic fracturing is an oil well completion technique, which is part of the overall well completion process. It 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 accurately depicts how our hydraulic fracturing services are transferred to our customers over time. In addition, certain of our hydraulic fracturing equipment may be entitled to reservation fee charges if a customer were to reserve committed hydraulic fracturing equipment. The Company recognizes revenue related to reservation 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 obligatio n , s atisfied at a point-in-time, upon completion of the contracted service or sale of the 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. Wireline services (including pumpdown) are oil well completion techniques, which are part of the well completion process. Our wireline services utilize equipment with a drum of wireline to deploy perforating guns in the well to perforate the casing, cement, and formation. Once the well is perforated, the well can be fractured. Pumpdown utilizes pressure pumping equipment to pump water into the well to deploy perforating guns attached to wireline through the lateral section of a well. Our wireline 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 accurately depicts how our wireline services are transferred to our customers over time. In addition, certain of our wireline equipment is entitled to daily equipment charges while the equipment is on the customer’s locations. The Company recognizes revenue related to daily equipment charges on a daily basis as the performance obligations are met. The transaction price for each performance obligation for all our completion services is fixed per our contracts with our customers. Restricted Cash and Customer Cash Advances Our restricted cash relates to cash advances received from a customer in connection with our contract with the customer to provide FORCE SM electric-powered hydraulic fracturing equipment and services. The restricted cash was used to pay for contractually agreed upon expenditures. We had no restricted cash as of March 31, 2024 and December 31, 2023. The cash advances from the customer will be credited towards the customer’s invoice as our revenue performance obligations are met over the contract period. The cash advances received represent contract liabilities in connection with the performance of certain completion services. The cash advance (contract liability) balances, which are included in accrued and other current liabilities in our condensed consolidated balance sheets, were $15.9 million a nd $19.2 million as of March 31, 2024 and December 31, 2023 , respectively. During the three months ended March 31, 2024 and 2023, we recognized revenue of $1.7 million and $1.0 million from the cash advance amount outstanding at the beginning of the period. Accounts Receivable Accounts receivable are stated at the amount billed and billable to customers. At March 31, 2024 and December 31, 2023, accrued revenue (unbilled receivable) included as part of our accounts receivable was $63.1 million and $55.4 million , respectively. At March 31, 2024, the transaction price allocated to the remaining performance obligation for our partially completed hydraulic fracturing and wireline operations was $22.9 million, which is expected to be completed and recognized as revenue within one month following the current period balance sheet date. Allowance for Credit Losses As of March 31, 2024, 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 the economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and also separately considered 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 adverse changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of depressed economic activities, 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 three months ended March 31, 2024: (in thousands) Balance - January 1, 2024 $ 236 Provision for credit losses during the period — Write-off during the period — Balance - March 31, 2024 $ 236 Reclassification of Prior Period Presentation Certain reclassifications have been made to prior period segment information to conform to the current period presentation. These reclassifications had no effect on our balance sheet, operating and net income or cash flows from operating, investing and financing activities. The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amount of $12.5 million from depreciation to loss on disposal of assets for the three months ended March 31, 2023. Depreciation and Amortization Depreciation and amortization comprised of the following: (in thousands) Three Months Ended March 31, 2024 2023 Depreciation and amortization related to cost of services $ 50,774 $ 36,839 Depreciation and amortization related to general and administrative expenses 1,432 1,432 Total depreciation and amortization $ 52,206 $ 38,271 Share Repurchases |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU represent changes to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. ASU 2023-06 will become effective for each amendment on the effective date of the SEC's corresponding disclosure rule changes. We do not expect ASU No. 2023-06 to have a material impact on our condensed consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires public entities to disclose on an annual and interim basis, 1) significant segment expenses that are regularly provided to the Chief Operating Decision Maker (the “CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”) and 2) an amount for other segment items representing the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. This ASU also requires public entities to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, clarifies that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit or loss but at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles under GAAP. This ASU also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources, and requires a public entity that has a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We do not expect to early adopt ASU No. 2023-07. We are currently evaluating the impact ASU No. 2023-07 will have on our segment disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Par Five Acquisition
Par Five Acquisition | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Par Five Acquisition | Par Five Acquisition On December 1, 2023, the Company completed the acquisition of certain assets and certain liabilities of Par Five Energy Services LLC ("Par Five"), an oilfield service company based in Artesia, New Mexico that provides cementing and remediation services across the Permian Basin in Texas and New Mexico (the "Par Five Acquisition"). As a result of the Par Five Acquisition, the Company expanded its operations in the cementing service business unit. The following table summarizes the consideration transferred to Par Five and the recognized amounts of identified assets acquired and liabilities assumed at the acquisition date: (in thousands) Total purchase consideration: Cash $ 22,215 Deferred cash payment 3,180 Total consideration $ 25,395 (in thousands) Recognized amounts of assets acquired and liabilities assumed: Accounts receivable $ 8,712 Inventory 321 Property, plant and equipment 17,175 Accrued liabilities (813) Total net assets acquired $ 25,395 The deferred cash consideration of $3.2 million will be used to cover the amount by which the estimated purchase price exceeds the final purchase price, if any. The unused amount is payable to Par Five or its beneficiary on June 1, 2025 and accrues interest at 4.0% per annum. This obligation is shown within other long-term liabilities in our condensed consolidated balance sheets. As of March 31, 2024, the outstanding amount for this obligation was $3.2 million. The fair value of the assets acquired includes account receivables of $8.7 million . The gross amount due under contracts is $8.7 million |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value 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 The fair values of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued and other current liabilities, and long-term debt are estimated to be approximately equivalent to carrying amounts as of March 31, 2024 and December 31, 2023 and have been excluded from the table below. Assets measured at fair value on a recurring basis are set forth below: (in thousands) Estimated fair value measurements Balance Quoted prices in active market Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) Total gains March 31, 2024: Short-term investment $ 7,143 $ 7,143 $ — $ — $ (602) December 31, 2023: Short-term investment $ 7,745 $ 7,745 $ — $ — $ (2,538) Short-term investment — On September 1, 2022, the Company received 2.6 million common shares of STEP Energy Services Ltd. ("STEP") with an estimated fair value of $11.8 million as part of the consideration for the sale of our coiled tubing assets to STEP. The shares were treated as an investment in equity securities measured at fair value using Level 1 inputs based on observable prices on the Toronto Stock Exchange and are shown under current assets in our condensed consolidated balance sheets. As of March 31, 2024, the fair value of the short-term investment was estimated at $7.1 million. The fluctuation in stock price resulted in an unrealized loss of $0.6 million and $3.8 million for the three months ended March 31, 2024 and 2023, respectively . Included in the unrealized loss for the three months ended March 31, 2024 was a loss of $0.2 million resulting from non-cash foreign currency translation during the three months ended March 31, 2024. There was no unrealized gain or loss resulting from non-cash foreign currency translation during the three months ended March 31, 2023. The unrealized loss resulting from stock price fluctuation and the unrealized loss resulting from non-cash foreign currency translation are included in other income (expense) in our condensed consolidated statements of operations. The Company is restricted from selling, transferring or assigning more than 0.9 million shares in any one calendar month. Assets Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These items are not measured at fair value on an ongoing basis but may be subject to fair value adjustments in certain circumstances. These assets and liabilities include those acquired through the Par Five Acquisition, which are required to be measured at fair value on the acquisition date according to the FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations. Whenever events or circumstances indicate that the carrying value of long-lived assets may not be recoverable, the Company reviews the carrying values of long‑lived assets, such as property and equipment and other assets to determine if they are recoverable. If any long‑lived assets are determined to be unrecoverable, an impairment expense is recorded in the period. No impairment of property and equipment was recorded during the three months ended March 31, 2024 and 2023. There were no additions to goodwill during the three months ended March 31, 2024 and 2023. The wireline operating segment is the only segment with goodwill at March 31, 2024 and December 31, 2023. There were no goodwill impairment losses during the three months ended March 31, 2024 and 2023. We conducted our annual impairment test of goodwill in accordance with ASC 350, Intangibles—Goodwill and Other, as of December 31, 2023 and determined that no impairment to the carrying value of goodwill for our reporting unit (wireline operating segment) was required. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of customer relationships and trademark/trade name. Intangible assets are amortized on a straight‑line basis with a useful life of ten years. Amortization expense included in net income for the three months ended March 31, 2024 and 2023 was $1.4 million and $1.4 million, respectively. The Company’s intangible assets subject to amortization consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Intangible assets acquired: Trademark/trade name $ 10,800 $ 10,800 Customer relationships 46,500 46,500 Total intangible assets acquired 57,300 57,300 Accumulated amortization: Trademark/trade name (1,530) (1,260) Customer relationships (6,587) (5,425) Total accumulated amortization (8,117) (6,685) Intangible assets — net $ 49,183 $ 50,615 Estimated remaining amortization expense for each of the subsequent fiscal years is expected to be as follows: (in thousands) Year Estimated future amortization expense 2024 $ 4,298 2025 5,730 2026 5,730 2027 5,730 2028 and beyond 27,695 Total $ 49,183 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Asset-Based Loan Credit Facility Our revolving credit facility, as amended and restated in April 2022, prior to giving effect to the amendment to the revolving credit facility in June 2023, had a total borrowing capacity of $150.0 million . The revolving credit facility had a borrowing base of 85% to 90%, depending on the credit ratings of our accounts receivable counterparties, of monthly eligible accounts receivable less customary reserves. The revolving credit facility included a springing fixed charge coverage ratio to apply when excess availability was less than the greater of (i) 10% of the lesser of the facility size or the borrowing base or (ii) $10.0 million . Under the revolving credit facility we were 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. Effective June 2, 2023, the Company entered into an amendment to its amended and restated revolving credit facility (the revolving credit facility, as amended and restated in April 2022, as amended in June 2023 and as may be amended further, "AB L Credit Facility"). The amendment increased the borrowing capacity under the ABL Credit Facility to $225.0 million (subject to the Borrowing Base (as defined below) limit), and extended the maturity date to June 2, 2028. The ABL Credit Facility has a borrowing base of the sum of 85% to 90% of monthly eligible accounts receivable and 80% of eligible unbilled accounts (up to a maximum of 25% of the borrowing base), in each case, depending on the credit ratings of our accounts receivable counterparties, less customary reserves (the "Borrowing Base"), as redetermined monthly. The Borrowing Base as of March 31, 2024, was approximately $192.1 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) $15.0 million. Under the ABL Credit 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 or 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 the Secured Overnight Financing Rate ("SOFR") or the base rate, plus the applicable margin, which ranges from 1.75% to 2.25% for SOFR loans and 0.75% to 1.25% fo r base rate loans. For the three months ended March 31, 2024 , t he weighted average interest rate on our outstanding borrowings under the ABL Credit Facility was 7.21%. The loan origination costs relating to the ABL Credit Facility are classified as an asset in the condensed consolidated balance sheets. As of March 31, 2024 and December 31, 2023, we had borrowings outstanding under our ABL Credit F acility of $45.0 million and $45.0 million, resp |
Reportable Segment Information
Reportable Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Segment Information The Company currently has three operating segments for which discrete financial information is readily available: hydraulic fracturing (inclusive of acidizing), wireline and cementing. These operating segments represent how the CODM evaluates performance and allocates resources. Prior to the fourth quarter of fiscal year 2023, our operating segments met the aggregation criteria in accordance with ASC 280 —Segment Reporting and were aggregated into the “Completion Services” reportable segment. Effective as of the fourth quarter of fiscal year 2023, we revised our segment reporting as we determined that our three operating segments no longer met the criteria to be aggregated. Our Hydraulic Fracturing and Wireline operating segments meet the criteria of a reportable segment. Our cementing segment does not meet the reportable segment criteria and is included within the “All Other” category. Additionally, our corporate administrative activities do not involve business activities from which it may earn revenues and its results are not regularly reviewed by the Company’s CODM when making key operating and resource decisions. As a result, corporate administrative expenses have been included under “Reconciling Items.” Prior period segment information has been revised to conform to our current presentation. Our hydraulic fracturing operating segment revenue approximated 76.2% and 79.0% of our revenue for the three months ended March 31, 2024 and 2023, respectively. Revenue from our wireline operating segment approximated 15.0% and 14.7% of our revenue for the three months ended March 31, 2024 and 2023, respectively. Our cementing operating segment revenue approximated 8.8% and 6.3% of our revenue for the three months ended March 31, 2024 and 2023, respectively. Our operating segments are subject to inherent uncertainties which may influence our prospective activities. Inter-segment revenues are not material and are not shown separately in the tables below. The Company manages and assesses the performance of the reportable segment by its adjusted EBITDA (earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense, other income or expense, gain or loss on disposal of assets and other unusual or nonrecurring expenses or income such as impairment charges, retention bonuses, severance, costs related to asset acquisitions, insurance recoveries, one-time professional fees and legal settlements) . The following tables set forth certain financial information with respect to the Company’s reportable segments ; inter-segment revenues are not material and not shown separately (in thousands): Three Months Ended March 31, 2024 Hydraulic Fracturing Wireline All Other Reconciling Items Total Service revenue $ 309,300 $ 60,805 $ 35,738 $ — $ 405,843 Adjusted EBITDA for reportable segments $ 86,119 $ 16,786 $ 4,861 $ — $ 107,766 Depreciation and amortization $ 44,995 $ 4,915 $ 2,271 $ 25 $ 52,206 Capital expenditures incurred $ 35,988 $ 2,386 $ 1,466 $ — $ 39,840 Goodwill $ — $ 23,624 $ — $ — $ 23,624 Total assets March 31, 2024 $ 1,236,940 $ 210,579 $ 74,664 $ 12,077 $ 1,534,260 Three Months Ended March 31, 2023 Hydraulic Fracturing Wireline All Other Reconciling Items Total Service revenue $ 334,441 $ 62,560 $ 26,569 $ — $ 423,570 Adjusted EBITDA for reportable segments $ 108,581 $ 18,331 $ 3,963 $ — $ 130,875 Depreciation and amortization (1) $ 32,412 $ 4,408 $ 1,360 $ 91 $ 38,271 Capital expenditures incurred $ 95,073 $ 1,033 $ 1,064 $ — $ 97,170 Goodwill $ — $ 23,624 $ — $ — $ 23,624 Total assets at December 31, 2023 $ 1,189,526 $ 198,957 $ 78,475 $ 13,354 $ 1,480,312 (1) The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amount of $12.5 million from depreciation to loss on disposal of assets for the three months ended March 31, 2023. A reconciliation from reportable segment level financial information to the condensed consolidated statement of operations is provided in the table below (in thousands): Three Months Ended March 31, 2024 2023 Service Revenue Hydraulic Fracturing $ 309,300 $ 334,441 Wireline 60,805 62,560 All Other 35,738 26,569 Total service revenue for reportable segments 405,843 423,570 Elimination of intersegment service revenue — — Total consolidated service revenue $ 405,843 $ 423,570 Adjusted EBITDA Hydraulic Fracturing $ 86,119 $ 108,581 Wireline 16,786 18,331 All Other 4,861 3,963 Total Adjusted EBITDA for reportable segments 107,766 130,875 Unallocated corporate administrative expenses (14,371) (11,710) Depreciation and amortization (1) (52,206) (38,271) Interest expense (2,029) (667) Income tax expense (9,758) (8,356) Loss on disposal of assets (1) (6,458) (34,607) Stock-based compensation (3,742) (3,536) Other income (expense), net (2) 1,405 (3,704) Other general and administrative expense, net (59) (946) Retention bonus and severance expense (618) (345) Net income $ 19,930 $ 28,733 (1) The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amount of $12.5 million from depreciation to loss on disposal of assets for the three months ended March 31, 2023. (2) Other income for the three months ended March 31, 2024 is primarily comprised of insurance reimbursements of $2.0 million, partially offset by a $0.6 million unrealized loss on short-term investment. Other expense for the three months ended March 31, 2023 is primarily comprised of a $3.8 unrealized loss on short-term investment. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per common share is computed by dividing the net income relevant to the common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share uses the same net 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 ("PSUs") and restricted stock units ("RSUs") 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. The table below shows the calculations for the three months ended March 31, 2024 and 2023 (in thousands, except for per share data): Three Months Ended March 31, 2024 2023 Numerator (both basic and diluted) Net income relevant to common stockholders $ 19,930 $ 28,733 Denominator Denominator for basic income per share 108,540 114,881 Dilutive effect of stock options — — Dilutive effect of performance share units — 170 Dilutive effect of restricted stock units 449 280 Denominator for diluted income per share 108,989 115,331 Basic income per common share $ 0.18 $ 0.25 Diluted income per common share $ 0.18 $ 0.25 As shown in the table below, the f ollowing stock options, restricted stock units and performance stock units have not been included in the calculation of diluted income per common share for the three months ended March 31, 2024 and 2023 because they will be anti-dilutive to the calculation of diluted net income per common share: (in thousands) Three Months Ended March 31, 2024 2023 Stock options 179 426 Restricted stock units 628 1,084 Performance stock units 669 — Total 1,476 1,510 |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program On April 24, 2024, the Company's board of directors (the "Board") approved an increase and extension to the share repurchase program previously authorized on May 17, 2023. The program permits the repurchase of up to an additional $100 million of the Company's common stock for a total of $200 million and extends the expiration date by one year to May 31, 2025. The shares may be repurchased from time to time in open market transactions, block trades, accelerated share repurchases, privately negotiated transactions, derivative transactions or otherwise, certain of which may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act, in compliance with applicable state and federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including management's assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company's debt and other agreements, applicable legal requirements, and other considerations. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases using cash on hand and expected free cash flow to be generated through May 2025. The 1% U.S. federal excise tax on certain repurchases of stock by publicly traded U.S. corporations enacted as part of the Inflation Reduction Act of 2022 ("IRA 2022") applies to our share repurchase program. All shares of common stock repurchased under the share repurchase program are canceled and retired upon repurchase. The Company accounts for the purchase price of repurchased shares of common stock in excess of par value ($0.001 per share of common stock) as a reduction of additional-paid-in capital, and will continue to do so until additional paid-in-capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction of retained earnings. During the three months ended March 31, 2024, the Company paid an aggregate of $22.5 million, an average price per share of $7.58 including commissions, for share repurchases under the share repurchase program. The Company has accrued $0.6 million in respect of the IRA 2022 repurchase excise tax as of March 31, 2024. As of April 24, 2024, $125.8 million remained authorized for future repurchases of common stock under the repurchase program. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options There were no new stock option grants during the three months ended March 31, 2024. As of March 31, 2024, t here was no aggregate intrinsic value for our outst anding or exercisable stock options because the closing stock price as of March 31, 2024 was below the cost to exercise these options. No stock options were exercised during the three months ended March 31, 2024. The weighted average remaining contractual term for the outstanding and exercisable stock options as of March 31, 2024 w as approximately 3.0 years. A summary of the stock option activity for the three months ended March 31, 2024 is presented below (in thousands, except for weighted average price): Number of Shares Weighted Outstanding at January 1, 2024 180 $ 14.00 Granted — $ — Exercised — $ — Forfeited — $ — Expired (1) $ 14.00 Outstanding at March 31, 2024 179 $ 14.00 Exercisable at March 31, 2024 179 $ 14.00 Restricted Stock Units On May 11, 2023, the Company's stockholders approved the Amended and Restated ProPetro Holding Corp. 2020 Long Term Incentive Plan (the "A&R 2020 Incentive Plan"), which had been previously approved by the Board and replaced the ProPetro Holding Corp. 2020 Long Term Incentive Plan. During the three months ended March 31, 2024, we granted 1,620,150 RSUs to employees, officers and directors pursuant to the A&R 2020 Incentive Plan, which generally vest ratably over a three-year vesting period or a two-year period at one-third after first year anniversary and two-thirds after the second year anniversary, 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 one share of common stock. The grant date fair value of the RSUs is based on the closing share price of our common stock on the date of grant. As of March 31, 2024, the total unrecognized compensation expense for all RSUs was approximately $24.6 million, and is expected to be recognized over a weighted average period of approximately 2.2 years. The following table summarizes RSUs activity during the three months ended March 31, 2024 (in thousands, except for fair value): Number of Weighted Outstanding at January 1, 2024 2,264 $ 9.81 Granted 1,620 $ 7.31 Vested (522) $ 10.49 Forfeited (12) $ 9.12 Canceled — $ — Outstanding at March 31, 2024 3,350 $ 8.50 Performance Share Units During the three months ended March 31, 2024, we granted 637,266 PSUs to certain key employees and officers as new awards under the A&R 2020 Incentive Plan. Each PSU earned represents the right to receive either one share of common stock or, as determined by the A&R 2020 Incentive Plan administrator in its sole discretion, a cash amount equal to 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. The following table summarizes information about PSUs activity during the three months ended March 31, 2024 (in thousands, except for weighted average fair value): Period Target Shares Outstanding at January 1, 2024 Target Target Shares Vested Target Target Shares Outstanding at March 31, 2024 2021 620 — — (620) — 2022 306 — — — 306 2023 438 — — — 438 2024 — 637 — — 637 Total 1,364 637 — (620) 1,381 Weighted Average Fair Value Per Share $ 15.80 $ 8.22 $ — $ 14.73 $ 12.79 The total stock-based compensation expense for the three months ended March 31, 2024 and 2023 for all stock awards was $3.7 million and $3.5 million, respectively, and the associated tax benefit related thereto was $0.8 million and $0.7 million , respectively. The total unrecognized stock-based compensation expense as of March 31, 2024 was approximately $34.9 million, an d is expected to be recognized over a weighted average period of approximatel |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Operations and Maintenance Yards The Company rents three yards from an entity in which a director of the Company has an equity interest, and the total annual rent expense for each of the three yards was approximately $0.03 million, $0.1 million and $0.1 million, respectively. The Company previously rented two yards from this entity and incurred rent expense of $0.01 million and $0.05 million, respectively during the three months ended March 31, 2023. Pioneer On December 31, 2018, we consummated the purchase of certain pressure pumping assets and real property from Pioneer Natural Resources USA, Inc. ("Pioneer") and Pioneer Pumping Services (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. In October 2023, Pioneer entered into a merger agreement with Exxon Mobil Corporation. On March 31, 2022, we entered into an amended and restated pressure pumping services agreement (the "A&R Pressure Pumping Services Agreement"), which was initially entered into in connection with the Pioneer Pressure Pumping Acquisition. The A&R Pressure Pumping Services Agreement was effective January 1, 2022 through December 31, 2022. The A&R Pressure Pumping Services Agreement reduced the number of contracted fleets from eight fleets to six fleets, modified the pressure pumping scope of work and pricing mechanism for contracted fleets, and replaced the idle fees arrangement with equipment reservation fees (the "Reservation fees"). As part of the Reservation fees arrangement, the Company was entitled to receive compensation for all eligible contracted fleets that were made available to Pioneer at the beginning of every quarter in 2022 through the term of the A&R Pressure Pumping Services Agreement. The A&R Pressure Pumping Services Agreement expired at the conclusion of its term and was replaced by the Fleet One Agreement and Fleet Two Agreement described below. On October 31, 2022, we entered into two pressure pumping services agreements (the "Fleet One Agreement" and "Fleet Two Agreement") with Pioneer, pursuant to which we provided hydraulic fracturing services with two committed fleets, subject to certain termination and release rights. The Fleet One Agreement was effective as of January 1, 2023 and was terminated on August 31, 2023. The Fleet Two Agreement was effective as of January 1, 2023 and was terminated on May 12, 2023. Revenue from services provided to Pioneer (including Reservation fees) accounted f or approximately $4.9 million and $54.3 million of our total revenue during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the total accounts receivable due from Pioneer, including estimated unbilled receivables for services we provided, amounted to approxim at ely $3.3 million and the amount due to Pioneer was $0 . As of December 31, 2023, the balance due from Pioneer for services we provided amounted to approximately $2.4 million a nd the amount due to Pioneer was $0 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Operating Leases Description of Lease In March 2013, we entered into a ten-year real estate lease contract (the "Real Estate One Lease") with a commencement date of April 1, 2013, as part of the expansion of our equipment yard. The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment. In addition to the contractual lease period, the contract included an optional renewal of up to ten years, however, the Company terminated the Real Estate One Lease at the end of the term, March 1, 2023. During the three months ended March 31, 2023, the Company made lease payments of approximate ly $0.1 million . We accounted for our Real Estate One Lease as an operating lease. This conclusion 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 One Lease because we concluded that the accounting effe ct was insignificant. As part of our expansion of our hydraulic fracturing equipment maintenance program, we entered into a two-year maintenance facility real estate lease contract (the "Maintenance Facility Lease") with a commencement date of March 14, 2022. The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment. During the three months ended March 31, 2024 and 2023 , the Company made lease payments of approximately $0.1 million a nd $0.1 million, respectively. In addition to the contractual lease period, the contract included an optional renewal for three additional periods of one year each, however, the Company terminated the Maintenance Facility Lease at the end of the term, March 13, 2024. We accounted for our Maintenance Facility Lease as 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 Maintenance Facility Lease because we concluded that the accounting effect was insignificant. In August 2022 and December 2022, we entered into equipment lease contracts (the "Electric Fleet Leases") for a duration of approximately three years each for a total of four FORCE SM electric-powered hydraulic fracturing fleets with 60,000 hydraulic horsepower ("HHP") per fleet. The Electric Fleet Leases contain options to either extend each lease for up to three additional periods of one year each or purchase the equipment at the end of their initial term of approximately three years or at the end of each subsequent renewal period. The first of these leases (the "Electric Fleet One Lease") commenced on August 23, 2023 when we received some of the equipment associated with the first FORCE SM electric-powered hydraulic fracturing fleet. During the three months ended March 31, 2024, the Company made lease payments of approximately $2.3 million on the Electric Fleet One Lease, including variable lease payments of approximately $0.3 million. During the three months ended March 31, 2024, the Company incurred initial direct costs of approximately $3.0 million to place the leased equipment into its intended use, which are included in the right-of-use asset cost related to the Electric Fleet One Lease . The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment . In management's judgment the exercise of neither the renewal option nor the purchase option is reasonably assured. In addition to fixed rent payments, the Electric Fleet One Lease contains variable payments based on equipment usage. The Electric Fleet One Lease does not include a residual value guarantee, covenants or financial restrictions. We accounted for the Electric Fleet One Lease as an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. As of March 31, 2024, the weighted average discount rate and remaining lease term was appro ximately 7.3% and 2.7 years, respectively. The second of the Electric Fleet Leases (the "Electric Fleet Two Lease") commenced on November 1, 2023 when we received some of the equipment associated with the second FORCE SM electric-powered hydraulic fracturing fleet. During the three months ended March 31, 2024, the Company made lease payments of approximately $2.3 million, on the Electric Fleet Two Lease, including variable lease payments of approximately $0.3 million. During the three months ended March 31, 2024, the Company incurred initial direct costs of approximately $1.6 million to place the leased equipment into its intended use, which are included in the right-of-use asset cost related to the Electric Fleet Two Lease . The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment. In management's judgment the exercise of neither the renewal option nor the purchase option is reasonably assured. In addition to fixed rent payments, the Electric Fleet Two Lease contains variable payments based on equipment usage. The Electric Fleet Two Lease does not include a residual value guarantee, covenants or financial restrictions. We accounted for the Electric Fleet Two Lease as an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. As of March 31, 2024, the weighted average discount rate and remaining lease term was appro ximately 7.2% and 2.9 years, respectively. The third of the Electric Fleet Leases (the "Electric Fleet Three Lease") commenced on December 19, 2023, when we received some of the equipment associated with the third FORCE SM electric-powered hydraulic fracturing fleet. During the three months ended March 31, 2024, the Company made lease payments of approximately $1.6 million, including variable lease payments of approximately $0.05 million. During the three months ended March 31, 2024, the Company incurred initial direct costs of approximately $0.2 million to place the leased equipment into its intended use, which are included in the right-of-use asset cost related to the Electric Fleet Three Lease . The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment. In management's judgment the exercise of neither the renewal option nor the purchase option is reasonably assured. In addition to fixed rent payments, the Electric Fleet Three Lease contains variable payments based on equipment usage. The Electric Fleet Three Lease does not include a residual value guarantee, covenants or financial restrictions. We accounted for the Electric Fleet Three Lease as an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. As of March 31, 2024, the weighted average discount rate and remaining lease term was approximately 7.2% and 3.0 years, respectively. As of March 31, 2024, we have not received some of the equipment contracted under the Electric Fleet Three Lease. Since we have not taken possession of these assets and do not control them, we have not accounted for the associated right-of-use asset and lease obligation on our balance sheet as of March 31, 2024. The fourth of the Electric Fleet Leases (the "Electric Fleet Four Lease") commenced on February 9, 2024, when we received some of the equipment associated with the fourth FORCE SM electric-powered hydraulic fracturing fleet. During the three months ended March 31, 2024, the Company made lease payments of approximately $0.3 million with no variable lease payments. During the three months ended March 31, 2024, the Company incurred initial direct costs of approximately $1.4 million to place the leased equipment into its intended use, which are included in the right-of-use asset cost related to the Electric Fleet Four Lease . The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment. In management's judgment the exercise of neither the renewal option nor the purchase option is reasonably assured. In addition to fixed rent payments, the Electric Fleet Four Lease contains variable payments based on equipment usage. The Electric Fleet Four Lease does not include a residual value guarantee, covenants or financial restrictions. We accounted for the Electric Fleet Four Lease as an operating lease. Our assumptions resulted from the existence of the right to control the use of the assets throughout the lease term. As of March 31, 2024, the weighted average discount rate and remaining lease term was appro ximately 7.2% and 3.0 years, respectively. As of March 31, 2024, we have not received some of the equipment contracted under the Electric Fleet Four Lease. Since we have not taken possession of these assets and do not control them, we have not accounted for the associated right-of-use asset and lease obligation on our balance sheet as of March 31, 2024. We currently expect to receive the remaining equipment associated with the third and fourth fleets in the first half of 2024. In October 2022, we entered into a real estate lease contract for 5.3 years (the " Real Estate Two Lease"), with a commencement date of March 1, 2023. During the three months ended March 31, 2024, the Company made lease payments of approxim ately $0.1 million . The assets and liabilities under this contract are included in our Completion Services reportable segment. In addition to the contractual lease period, the contract includes two optional renewals of one year each, 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 Two Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for our Real Estate Two Lease as 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 Two Lease because we concluded that the accounting effect was insignificant. As of March 31, 2024, the weighted average discount rate and remaining lease term was approximatel y 6.3% and 4.1 years , respectively. As part of our acquisition of Silvertip Completion Services Operating, LLC , we assumed two real estate lease contracts (the "Silvertip One Lease" and "Silvertip Two Lease," and collectively the "Silvertip Leases") with remaining terms of 4.8 years and 6.1 years, respectively, from November 1, 2022. During 2023, we extended the Silvertip One Lease for an additional 1.3 years . During the three months ended March 31, 2024, the Company made lease payments of approxim ately $0.05 million and $0.1 million on t he Silvertip One Lease and S ilvertip Two Lease, respectively. The assets and liabilities under these contracts are recorded in our wireline operating segment within our Completion Services reportable segment. T he Silvertip Leases do not have any renewal options, residual value guarantees, covenants or financial restrictions. Further, the Silvertip Leases do not contain variability in payments resulting from either an index change or rate change. We accounted for the Silvertip One Lease and the Silvertip Two Lease as operating leases. This conclusion 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 Silvertip Leases because we concluded that the accounting effect was insignificant. As of March 31, 2024, the weighted average discount rate and remaining lease term for the Silvertip One Lease was approxim ately 6.3% and 4.7 years, respectively. As of March 31, 2024, the weighted average discount rate and remaining lease term for the Silvertip Two Lease was approximately 2.1% and 4.7 years, respectively. In March 2023, we entered into a real estate le ase contract for 5.7 years ( the "Silvertip Three Lease"), with a commencement date of April 1, 20 23. During the three months ended March 31, 2024 and 2023 , the Company made lease payments of appro ximately $0.03 million an d $0, respectively . The assets and liabilities under this contract are recorded in our wireline operating segment within our Completion Services reportable segment. The cont ract does not include a residual value guarantee, covenants or financial restrictions. Further, the Silvertip Three Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for the Silvertip Three Lease as an operating lease. This conclusion 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 Silvertip Three Lease because we concluded that the accounting effect was insignificant. As of March 31, 2024, the weighted average discount rate and remaining lease term was approximately 6.3% and 4.7 years, respectively. On June 1, 2023, we commenced an office space lease contract for 5.0 years (the "Silvertip Office Lease"). During the three months ended March 31, 2024, the Company made lease payments of approximately $0.04 million on the Silvertip Office Lease. The assets and liabilities under this contract are recorded in our wireline operating segment within our Completion Services reportable segment. The contract does not include a residual value guarantee, covenants or financial restrictions. Further, the Silvertip Office Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for the Silvertip Office Lease as an operating lease. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term. As of March 31, 2024, the weighted average discount rate and remaining lease term was approximately 6.5% and 4.2 years, res pectively. In August 2023, in connection with the relocation of our corporate office, we entered into an office space lease contract for 2.1 years (the "Corporate Office Lease"), with a commencement date of September 8, 2023. During the three months ended March 31, 2024, the Company made lease payments of approximately $0.04 million on the Corporate Office Lease. The assets and liabilities under this contract are recorded in our Completion Services reportable segment. In addition to the contractual lease period, the contract includes an optional renewal for 0.8 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 Corporate Office Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for the Corporate Office Lease as an operating lease. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term. As of March 31, 2024, the weighted average discount rate and remaining lease term was approximately 7.1% and 1.5 years, res pectively. As of March 31, 2024, the total operating lease right-of-use asset cost was approximately $124.4 million, and accumulated amortization was approximately $15.0 million. As of December 31, 2023, our total operating lease right-of-use asset cost was approximately $85.8 million, and accumulated amortization was approximately $7.2 million. Finance Leases Description of Lease In January 2023, we entered into a three-year equipment lease contract (the "Power Equipment Lease") for certain power generation equipmen t with a commencement date of August 23, 2023. During the three months ended March 31, 2024, the Company made lease payments of approximately $5.0 million o n the Power Equipment Lease. The assets and liabilities under this contract are included in our Hydraulic Fracturing reportable segment . In addition to the contractual lease period, the contract includes an optional renewal for one year, 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 Power Equipment Lease does not contain variability in payments resulting from either an index change or rate change. We accounted for the Power Equipment Lease as a finance lease. This conclusion resulted from the existence of the right to control the use of the assets throughout the lease term, the present value of lease payments being equal to or in excess of substantially all of the fair value of the underlying assets and the lease term being the major part of the remaining economic life of the underlying assets. As of March 31, 2024, the weighted average discount rate and remaining lease term was approximately 7.3% and 2.4 years, respectively. As of March 31, 2024, the total finance lease right-of-use asset cost was approximat ely $52.6 million , and accumulated amortization was approximately $9.7 million . As of December 31, 2023, the total finance lease right-of-use was approximately $52.6 million, and accumulated amortization was approximately $5.2 million. Maturity Analysis of Lease Liabilities The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for our leases as of March 31, 2024 are as follows: (in thousands) Operating Leases Finance Leases 2024 $ 23,655 $ 14,904 2025 31,433 19,872 2026 30,669 12,790 2027 5,570 — 2028 821 — Total undiscounted future lease payments 92,148 47,566 Less: amount representing interest (9,133) (3,771) Present value of future lease payments (lease obligation) $ 83,015 $ 43,795 The total cash paid for amounts included in the measurement of our operating lease liabilities during the three months ended March 31, 2024 was approximately $6.3 million. The total cash paid for amounts included in the measurement of our finance lease liabilities during the three months ended March 31, 2024 was approximatel y $4.2 million. D uring the three months ended March 31, 2024, we recorded non-cash operating lease obligations totaling approximately $32.4 million a rising from obtaining right-of-use assets related to the receipt of equipment under the Electric Fleet Two Lease, the Electric Fleet Three Lease and the Electric Fleet Four Lease. During the three months ended March 31, 2023 , total cash paid for amounts included in the measurement of our operating lease liabilities was approximately $0.3 million . During the three months ended March 31, 2023, we recorded a non-cash operating lease obligation of approximately $1.8 million as a result of our execution of the Real Estate Two Lease and our extension of the Silvertip One Lease . Short-Term Leases We elected the practical expedient option, 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. Initial Direct Costs We elected to analogize to the measurement guidance of ASC 360 to capitalize costs incurred to place a leased asset into its intended use and to present such capitalized costs as part of the related lease right-of-use asset cost as initial direct costs. Lease Costs For the three months ended March 31, 2024 and 2023, we recorded operating lease cost of approximately $9.0 million and $0.3 million, respectively, in our condensed consolidated statements of operations. For the three months ended March 31, 2024, we recorded finance lease cost of approximately $5.3 million in our condensed consolidated statements of operations comprising of amortization of finance right-of-use asset of approximately $4.5 million and interest on finance lease liabilities of approximately $0.8 million. For the three months ended March 31, 2023, we had no finance lease costs. For the three months ended March 31, 2024 and 2023, we recorded variable lease cost of approximately $0.6 million and $0, respectively, in our condensed consolidated statements of operations. For the three months ended March 31, 2024 and 2023, we recorded short-term lease cost of approximately $0.2 million and $0.3 million , respectively, in our condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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. We entered into the Electric Fleet Leases, which contain options to extend the leases or purchase the equipment at the end of each lease or at the end of each subsequent renewal period. As of March 31, 2024, all four of the Electric Fleet Leases commenced when the Company took possession of all equipment associated with the first and second FORCE SM electric-powered hydraulic fracturing fleet and some of the equipment associated with the third and fourth fleets. Lease payments pertaining to the remaining equipment associated with the third and fourth Electric Fleet Leases are expected to commence when the Company takes possession of the remaining associated equipment . We currently expect to receive the remaining equipment associated with the third and fourth fleets in the first half of 2024. The total estimated contractual commitment in connection with the Electric Fleet Leases excluding the cost associated with the option to purchase the equipment at the end of each lease is approximately $100.7 million. We also entered into the Power Equipment Lease. The total estimated contractual commitment in connection with the Power Equipment Lease is approximately $47.6 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 minimum volumes or a fixed price per ton of unpurchased volumes. Our agreements with the Sand Suppliers expire at different times prior to December 31, 2025. Our sand agreement with one of our Sand Suppliers that will expire on December 31, 2024 has a remaining take-or-pay commitment o f $13.1 million. During the three months ended March 31, 2024 and 2023, no shortfall fee was recorded. As of March 31, 2024, the Company had issued letters of credit of appro ximately $6.0 million under the ABL Credit Facility in connection with the Company’s casualty insurance policy. Contingent Liabilities 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. The Company is self-insured up to $10 million per occurrence for certain losses arising from or attributable to fire and/or explosion at the wellsites that do not have qualified fire suppression measures. No accrual was recorded in our financial statements in connection with this self-insurance strategy because the occurrence of fire and/or explosion cannot be reasonably estimated. 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. A s of March 31, 2024, the audit was substantially complete and the Company accrued for an estimated settlement expense of $6.0 million. In May 2022, the Company received a notification from the Comptroller that it will commence a routin e audit of the Company's gross receipt taxes, which typically covers up to a four-year period. As of March 31, 2024, the audit is still ongoing and the final outcome cannot be reasonably estimated. In June 2023, the Company received confirmation from the Comptroller that it will commence a routine audit of the Company's direct payment sales tax in August 2023 for the period February 1, 2020 to December 31, 2022. As of March 31, 2024, the audit is still ongoing and the final outcome cannot be reasonably estimated. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In April 2024, we received some of the remaining equipment associated with our third FORCE SM electric-powered hydraulic fracturing fleet and additional equipment associated with our fourth FORCE SM electric-powered hydraulic fracturing fleet under the Electric Fleet Leases, resulting in the addition of non-cash operating lease obligations totaling approximately $5.3 million arising from obtaining right-of-use assets related to this equipment. In April 2024, we entered into a contract with Exxon Mobil Corporation to provide hydraulic fracturing services with two FORCE SM electric-powered hydraulic fracturing fleets and other completion services with an option to add a third FORCE SM fleet for a period of three years or contracted hours, whichever occurs last with respect to each fleet. On April 24, 2024, the Board approved an increase and extension to the share repurchase program previously authorized on May 17, 2023. The approval permits the repurchase of up to an additional $100 million of the Company's common stock for a total of $200 million and has extended the expiration date of the program by one year to May 31, 2025. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 19,930 | $ 28,733 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements of ProPetro Holding Corp. and its subsidiaries (the "Company," "we," "us" or "our") have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission ("SEC") for interim financial information and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. Those adjustments (which consisted of normal recurring accruals) that are, in the opinion of management, necessary for a fair presentation of the results of the interim periods have been made. Results of operations for such interim periods are not necessarily indicative of the results of operations for a full year due to changes in market conditions and other factors. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023, included in our Form 10-K filed with the SEC (our "Form 10-K"). |
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. Hydraulic fracturing is an oil well completion technique, which is part of the overall well completion process. It 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 accurately depicts how our hydraulic fracturing services are transferred to our customers over time. In addition, certain of our hydraulic fracturing equipment may be entitled to reservation fee charges if a customer were to reserve committed hydraulic fracturing equipment. The Company recognizes revenue related to reservation 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 obligatio n , s atisfied at a point-in-time, upon completion of the contracted service or sale of the 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. Wireline services (including pumpdown) are oil well completion techniques, which are part of the well completion process. Our wireline services utilize equipment with a drum of wireline to deploy perforating guns in the well to perforate the casing, cement, and formation. Once the well is perforated, the well can be fractured. Pumpdown utilizes pressure pumping equipment to pump water into the well to deploy perforating guns attached to wireline through the lateral section of a well. Our wireline 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 accurately depicts how our wireline services are transferred to our customers over time. In addition, certain of our wireline equipment is entitled to daily equipment charges while the equipment is on the customer’s locations. The Company recognizes revenue related to daily equipment charges on a daily basis as the performance obligations are met. The transaction price for each performance obligation for all our completion services is fixed per our contracts with our customers. |
Restricted Cash and Customer Cash Advances | Our restricted cash relates to cash advances received from a customer in connection with our contract with the customer to provide FORCE SM electric-powered hydraulic fracturing equipment and services. The restricted cash was used to pay for contractually agreed upon expenditures. We had no restricted cash as of March 31, 2024 and December 31, 2023. |
Accounts Receivable | Accounts receivable are stated at the amount billed and billable to customers. |
Allowance for Credit Losses | As of March 31, 2024, 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 the economic outlook for the oil and gas industry. We evaluated the historic loss experience on our accounts receivable and also separately considered 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 adverse changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the impacts of depressed economic activities, 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. |
Reclassification of Prior Period Presentation | Certain reclassifications have been made to prior period segment information to conform to the current period presentation. These reclassifications had no effect on our balance sheet, operating and net income or cash flows from operating, investing and financing activities. The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. |
Share Repurchases | All shares of common stock repurchased through the Company's share repurchase program are retired upon repurchase. The Company accounts for the purchase price of repurchased common stock in excess of par value ($0.001 per share of common stock) as a reduction of additional paid-in capital, and will continue to do so until additional paid-in capital is reduced to zero. Thereafter, any excess purchase price will be recorded as a reduction of retained earnings. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU represent changes to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. ASU 2023-06 will become effective for each amendment on the effective date of the SEC's corresponding disclosure rule changes. We do not expect ASU No. 2023-06 to have a material impact on our condensed consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires public entities to disclose on an annual and interim basis, 1) significant segment expenses that are regularly provided to the Chief Operating Decision Maker (the “CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”) and 2) an amount for other segment items representing the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. This ASU also requires public entities to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods, clarifies that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit or loss but at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles under GAAP. This ASU also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources, and requires a public entity that has a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We do not expect to early adopt ASU No. 2023-07. We are currently evaluating the impact ASU No. 2023-07 will have on our segment disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disaggregation of certain components included in the Company’s effective tax rate and income taxes paid disclosures. The guidance is effective for annual periods beginning after December 15, 2024. We are currently assessing the impact of ASU No. 2023-09 on our income tax disclosures. |
Fair Value Measurement | Fair value 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Allowance for Credit Losses | The table below shows a summary of allowance for credit losses during the three months ended March 31, 2024: (in thousands) Balance - January 1, 2024 $ 236 Provision for credit losses during the period — Write-off during the period — Balance - March 31, 2024 $ 236 |
Schedule Of Depreciation and Amortization Costs | Depreciation and amortization comprised of the following: (in thousands) Three Months Ended March 31, 2024 2023 Depreciation and amortization related to cost of services $ 50,774 $ 36,839 Depreciation and amortization related to general and administrative expenses 1,432 1,432 Total depreciation and amortization $ 52,206 $ 38,271 |
Par Five Acquisition (Tables)
Par Five Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred to Par Five and the recognized amounts of identified assets acquired and liabilities assumed at the acquisition date: (in thousands) Total purchase consideration: Cash $ 22,215 Deferred cash payment 3,180 Total consideration $ 25,395 (in thousands) Recognized amounts of assets acquired and liabilities assumed: Accounts receivable $ 8,712 Inventory 321 Property, plant and equipment 17,175 Accrued liabilities (813) Total net assets acquired $ 25,395 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Held at Fair Value | Assets measured at fair value on a recurring basis are set forth below: (in thousands) Estimated fair value measurements Balance Quoted prices in active market Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) Total gains March 31, 2024: Short-term investment $ 7,143 $ 7,143 $ — $ — $ (602) December 31, 2023: Short-term investment $ 7,745 $ 7,745 $ — $ — $ (2,538) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The Company’s intangible assets subject to amortization consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Intangible assets acquired: Trademark/trade name $ 10,800 $ 10,800 Customer relationships 46,500 46,500 Total intangible assets acquired 57,300 57,300 Accumulated amortization: Trademark/trade name (1,530) (1,260) Customer relationships (6,587) (5,425) Total accumulated amortization (8,117) (6,685) Intangible assets — net $ 49,183 $ 50,615 |
Schedule of Estimated Remaining Amortization Expense | Estimated remaining amortization expense for each of the subsequent fiscal years is expected to be as follows: (in thousands) Year Estimated future amortization expense 2024 $ 4,298 2025 5,730 2026 5,730 2027 5,730 2028 and beyond 27,695 Total $ 49,183 |
Reportable Segment Information
Reportable Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information | The following tables set forth certain financial information with respect to the Company’s reportable segments ; inter-segment revenues are not material and not shown separately (in thousands): Three Months Ended March 31, 2024 Hydraulic Fracturing Wireline All Other Reconciling Items Total Service revenue $ 309,300 $ 60,805 $ 35,738 $ — $ 405,843 Adjusted EBITDA for reportable segments $ 86,119 $ 16,786 $ 4,861 $ — $ 107,766 Depreciation and amortization $ 44,995 $ 4,915 $ 2,271 $ 25 $ 52,206 Capital expenditures incurred $ 35,988 $ 2,386 $ 1,466 $ — $ 39,840 Goodwill $ — $ 23,624 $ — $ — $ 23,624 Total assets March 31, 2024 $ 1,236,940 $ 210,579 $ 74,664 $ 12,077 $ 1,534,260 Three Months Ended March 31, 2023 Hydraulic Fracturing Wireline All Other Reconciling Items Total Service revenue $ 334,441 $ 62,560 $ 26,569 $ — $ 423,570 Adjusted EBITDA for reportable segments $ 108,581 $ 18,331 $ 3,963 $ — $ 130,875 Depreciation and amortization (1) $ 32,412 $ 4,408 $ 1,360 $ 91 $ 38,271 Capital expenditures incurred $ 95,073 $ 1,033 $ 1,064 $ — $ 97,170 Goodwill $ — $ 23,624 $ — $ — $ 23,624 Total assets at December 31, 2023 $ 1,189,526 $ 198,957 $ 78,475 $ 13,354 $ 1,480,312 (1) The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amount of $12.5 million from depreciation to loss on disposal of assets for the three months ended March 31, 2023. A reconciliation from reportable segment level financial information to the condensed consolidated statement of operations is provided in the table below (in thousands): Three Months Ended March 31, 2024 2023 Service Revenue Hydraulic Fracturing $ 309,300 $ 334,441 Wireline 60,805 62,560 All Other 35,738 26,569 Total service revenue for reportable segments 405,843 423,570 Elimination of intersegment service revenue — — Total consolidated service revenue $ 405,843 $ 423,570 Adjusted EBITDA Hydraulic Fracturing $ 86,119 $ 108,581 Wireline 16,786 18,331 All Other 4,861 3,963 Total Adjusted EBITDA for reportable segments 107,766 130,875 Unallocated corporate administrative expenses (14,371) (11,710) Depreciation and amortization (1) (52,206) (38,271) Interest expense (2,029) (667) Income tax expense (9,758) (8,356) Loss on disposal of assets (1) (6,458) (34,607) Stock-based compensation (3,742) (3,536) Other income (expense), net (2) 1,405 (3,704) Other general and administrative expense, net (59) (946) Retention bonus and severance expense (618) (345) Net income $ 19,930 $ 28,733 (1) The write-offs of remaining book value of prematurely failed power ends are recorded as loss on disposal of assets in 2024. In order to conform to current period presentation, we have reclassified the corresponding amount of $12.5 million from depreciation to loss on disposal of assets for the three months ended March 31, 2023. (2) Other income for the three months ended March 31, 2024 is primarily comprised of insurance reimbursements of $2.0 million, partially offset by a $0.6 million unrealized loss on short-term investment. Other expense for the three months ended March 31, 2023 is primarily comprised of a $3.8 unrealized loss on short-term investment. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Calculations of Net Loss Per Share | The table below shows the calculations for the three months ended March 31, 2024 and 2023 (in thousands, except for per share data): Three Months Ended March 31, 2024 2023 Numerator (both basic and diluted) Net income relevant to common stockholders $ 19,930 $ 28,733 Denominator Denominator for basic income per share 108,540 114,881 Dilutive effect of stock options — — Dilutive effect of performance share units — 170 Dilutive effect of restricted stock units 449 280 Denominator for diluted income per share 108,989 115,331 Basic income per common share $ 0.18 $ 0.25 Diluted income per common share $ 0.18 $ 0.25 |
Schedule of Antidilutive Securities | As shown in the table below, the f ollowing stock options, restricted stock units and performance stock units have not been included in the calculation of diluted income per common share for the three months ended March 31, 2024 and 2023 because they will be anti-dilutive to the calculation of diluted net income per common share: (in thousands) Three Months Ended March 31, 2024 2023 Stock options 179 426 Restricted stock units 628 1,084 Performance stock units 669 — Total 1,476 1,510 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options Activity | A summary of the stock option activity for the three months ended March 31, 2024 is presented below (in thousands, except for weighted average price): Number of Shares Weighted Outstanding at January 1, 2024 180 $ 14.00 Granted — $ — Exercised — $ — Forfeited — $ — Expired (1) $ 14.00 Outstanding at March 31, 2024 179 $ 14.00 Exercisable at March 31, 2024 179 $ 14.00 |
Summary of RSUs Activity | The following table summarizes RSUs activity during the three months ended March 31, 2024 (in thousands, except for fair value): Number of Weighted Outstanding at January 1, 2024 2,264 $ 9.81 Granted 1,620 $ 7.31 Vested (522) $ 10.49 Forfeited (12) $ 9.12 Canceled — $ — Outstanding at March 31, 2024 3,350 $ 8.50 |
Summary of Performance Shares Activity | The following table summarizes information about PSUs activity during the three months ended March 31, 2024 (in thousands, except for weighted average fair value): Period Target Shares Outstanding at January 1, 2024 Target Target Shares Vested Target Target Shares Outstanding at March 31, 2024 2021 620 — — (620) — 2022 306 — — — 306 2023 438 — — — 438 2024 — 637 — — 637 Total 1,364 637 — (620) 1,381 Weighted Average Fair Value Per Share $ 15.80 $ 8.22 $ — $ 14.73 $ 12.79 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Operating Lease Maturity | The maturity analysis of liabilities and reconciliation to undiscounted and discounted remaining future lease payments for our leases as of March 31, 2024 are as follows: (in thousands) Operating Leases Finance Leases 2024 $ 23,655 $ 14,904 2025 31,433 19,872 2026 30,669 12,790 2027 5,570 — 2028 821 — Total undiscounted future lease payments 92,148 47,566 Less: amount representing interest (9,133) (3,771) Present value of future lease payments (lease obligation) $ 83,015 $ 43,795 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Restricted cash | $ 0 | ||
Contract with customer, liability, current | 15,900 | $ 19,200 | |
Contract with customer, liability, revenue recognized | 1,700 | $ 1,000 | |
Contract with customer, asset, net | 63,100 | 55,400 | |
Allowance for credit losses during the period | 236 | $ 236 | |
Loss on disposal of assets | $ 6,458 | 34,607 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Revision of Prior Period, Adjustment | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Loss on disposal of assets | 12,500 | ||
Accumulated depreciation, depletion and amortization, property, plant and equipment, period increase (decrease) | $ 12,500 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, remaining performance obligation | $ 22,900 | ||
Revenue, remaining performance obligation, expected timing of satisfaction | 1 month |
Basis of Presentation - Allowan
Basis of Presentation - Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 236 |
Provision for credit losses during the period | 0 |
Write-off during the period | 0 |
Ending balance | $ 236 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | ||
Depreciation and amortization | $ 52,206 | $ 38,271 |
Depreciation and amortization related to cost of services | ||
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | ||
Depreciation and amortization | 50,774 | 36,839 |
Depreciation and amortization related to general and administrative expenses | ||
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | ||
Depreciation and amortization | $ 1,432 | $ 1,432 |
Par Five Acquisition - Narrativ
Par Five Acquisition - Narrative (Details) - Par Five - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 01, 2023 | Mar. 31, 2024 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Deferred cash payment | $ 3,180 | $ 3,200 |
Business combination, holdback liability, interest rate | 4% | |
Accounts receivable | $ 8,712 |
Par Five Acquisition - Summary
Par Five Acquisition - Summary of Assets Acquired And Liabilities Assumed (Details) - Par Five - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 01, 2023 | Mar. 31, 2024 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Cash | $ 22,215 | |
Deferred cash payment | 3,180 | $ 3,200 |
Total consideration | 25,395 | |
Accounts receivable | 8,712 | |
Inventory | 321 | |
Property, plant and equipment | 17,175 | |
Accrued liabilities | (813) | |
Total net assets acquired | $ 25,395 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | $ 7,100 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | 7,143 | $ 7,745 |
Total gains (losses) | (602) | (2,538) |
Quoted prices in active market (Level 1) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | 7,143 | 7,745 |
Significant other observable inputs (Level 2) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | 0 | 0 |
Significant other unobservable inputs (Level 3) | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investment | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 01, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investment | $ 7,100,000 | |||
Unrealized loss from fluctuation of stock price | 600,000 | $ 3,800,000 | ||
Unrealized gain (loss) from non-cash foreign currency translation | $ (200,000) | 0 | ||
Number of shares restricted from selling, transferring or assigning, maximum (in shares) | 0.9 | |||
Tangible asset impairment charges | $ 0 | 0 | ||
Goodwill, acquired during period | 0 | 0 | ||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | |
Step Energy Services | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Shares received (in shares) | 2.6 | |||
Short-term investment | $ 11,800,000 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Useful life | 10 years | |
Amortization expense | $ 1.4 | $ 1.4 |
Finite-lived intangible assets, remaining amortization period | 8 years 7 months 6 days |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired: | $ 57,300 | $ 57,300 |
Accumulated amortization: | (8,117) | (6,685) |
Intangible assets - net | 49,183 | 50,615 |
Trademark/trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired: | 10,800 | 10,800 |
Accumulated amortization: | (1,530) | (1,260) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired: | 46,500 | 46,500 |
Accumulated amortization: | $ (6,587) | $ (5,425) |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 4,298 | |
2025 | 5,730 | |
2026 | 5,730 | |
2027 | 5,730 | |
2028 and beyond | 27,695 | |
Intangible assets - net | $ 49,183 | $ 50,615 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jun. 02, 2023 | Apr. 30, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Borrowing base, eligible unbilled percentage | 80% | |||
ABL CreditFacility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 45 | $ 45 | ||
ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 225 | $ 150 | ||
Coverage ratio establishing threshold, option one, percentage of facility size and borrowing base | 10% | 10% | ||
Coverage ratio establishing threshold, option two, amount | $ 10 | $ 15 | ||
Borrowing base | $ 192.1 | |||
Interest rate | 7.21% | |||
Minimum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing base, accounts receivable percentage | 85% | 85% | ||
Maximum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing base, accounts receivable percentage | 90% | 90% | ||
Maximum percentage of borrowing base | 25% | |||
Base Rate Loans | Minimum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Base Rate Loans | Maximum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
SOFR Loans | Minimum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
SOFR Loans | Maximum | ABL CreditFacility | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% |
Reportable Segment Informatio_2
Reportable Segment Information - Additional Information (Details) - segment | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 | 3 | |
Revenue from Contract with Customer, Product and Service Benchmark | Service Concentration Risk | Hydraulic Fracturing | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 76.20% | 79% | |
Revenue from Contract with Customer, Product and Service Benchmark | Service Concentration Risk | Wireline | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 15% | 14.70% | |
Revenue from Contract with Customer, Product and Service Benchmark | Service Concentration Risk | Cementing Segment | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 8.80% | 6.30% |
Reportable Segment Informatio_3
Reportable Segment Information - Reconciliation of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Service revenue | $ 405,843 | $ 423,570 | |
Adjusted EBITDA | 107,766 | 130,875 | |
Depreciation and amortization | 52,206 | 38,271 | |
Capital expenditures incurred | 39,840 | 97,170 | |
Goodwill | 23,624 | $ 23,624 | |
Total assets | 1,534,260 | 1,480,312 | |
Loss on disposal of assets | 6,458 | 34,607 | |
Revision of Prior Period, Adjustment | |||
Segment Reporting Information [Line Items] | |||
Accumulated depreciation, depletion and amortization, property, plant and equipment, period increase (decrease) | 12,500 | ||
Loss on disposal of assets | 12,500 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 405,843 | 423,570 | |
Adjusted EBITDA | 107,766 | 130,875 | |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 0 | 0 | |
Adjusted EBITDA | 0 | 0 | |
Depreciation and amortization | 25 | 91 | |
Capital expenditures incurred | 0 | 0 | |
Goodwill | 0 | 0 | |
Total assets | 12,077 | 13,354 | |
Hydraulic Fracturing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 309,300 | 334,441 | |
Adjusted EBITDA | 86,119 | 108,581 | |
Depreciation and amortization | 44,995 | 32,412 | |
Capital expenditures incurred | 35,988 | 95,073 | |
Goodwill | 0 | 0 | |
Total assets | 1,236,940 | 1,189,526 | |
Wireline | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 60,805 | 62,560 | |
Adjusted EBITDA | 16,786 | 18,331 | |
Depreciation and amortization | 4,915 | 4,408 | |
Capital expenditures incurred | 2,386 | 1,033 | |
Goodwill | 23,624 | 23,624 | |
Total assets | 210,579 | 198,957 | |
All Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Service revenue | 35,738 | 26,569 | |
Adjusted EBITDA | 4,861 | 3,963 | |
Depreciation and amortization | 2,271 | 1,360 | |
Capital expenditures incurred | 1,466 | $ 1,064 | |
Goodwill | 0 | 0 | |
Total assets | $ 74,664 | $ 78,475 |
Reportable Segment Informatio_4
Reportable Segment Information - Reconciliation of Segment Information EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Service revenue | $ 405,843 | $ 423,570 |
Adjusted EBITDA | 107,766 | 130,875 |
Depreciation and amortization | (52,206) | (38,271) |
Interest expense | (2,029) | (667) |
Income tax expense | (9,758) | (8,356) |
Loss on disposal of assets | (6,458) | (34,607) |
Stock-based compensation | (3,742) | (3,536) |
Other income (expense), net | 1,405 | (3,704) |
Other general and administrative expense, net | (59) | (946) |
Retention bonus and severance expense | (618) | (345) |
Net income | 19,930 | 28,733 |
Loss on disposal of assets | 6,458 | 34,607 |
Insurance recoveries | 2,000 | |
Unrealized loss on short-term investment | 602 | 3,794 |
Revision of Prior Period, Adjustment | ||
Segment Reporting Information [Line Items] | ||
Accumulated depreciation, depletion and amortization, property, plant and equipment, period increase (decrease) | 12,500 | |
Loss on disposal of assets | 12,500 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 405,843 | 423,570 |
Adjusted EBITDA | 107,766 | 130,875 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 0 | 0 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate administrative expenses | (14,371) | (11,710) |
Hydraulic Fracturing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 309,300 | 334,441 |
Adjusted EBITDA | 86,119 | 108,581 |
Depreciation and amortization | (44,995) | (32,412) |
Wireline | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 60,805 | 62,560 |
Adjusted EBITDA | 16,786 | 18,331 |
Depreciation and amortization | (4,915) | (4,408) |
All Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 35,738 | 26,569 |
Adjusted EBITDA | 4,861 | 3,963 |
Depreciation and amortization | $ (2,271) | $ (1,360) |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator (both basic and diluted) | ||
Net income relevant to common stockholders | $ 19,930 | $ 28,733 |
Denominator | ||
Denominator for basic income per share (in shares) | 108,540 | 114,881 |
Denominator for diluted income per share (in shares) | 108,989 | 115,331 |
Basic income per share (in dollars per share) | $ 0.18 | $ 0.25 |
Diluted income per share (in dollars per share) | $ 0.18 | $ 0.25 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,476 | 1,510 |
Stock options | ||
Denominator | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 179 | 426 |
Performance stock units | ||
Denominator | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 669 | 0 |
Restricted stock units | ||
Denominator | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 628 | 1,084 |
Stock options | ||
Denominator | ||
Dilutive effect of share based payment (in shares) | 0 | 0 |
Performance stock units | ||
Denominator | ||
Dilutive effect of share based payment (in shares) | 0 | 170 |
Restricted stock units | ||
Denominator | ||
Dilutive effect of share based payment (in shares) | 449 | 280 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 24, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Treasury stock, value, acquired | $ 22.5 | ||
Shares acquired, average cost per share (in dollars per share) | $ 7.58 | ||
Stock repurchase, excise tax | $ 0.6 | ||
Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, additional authorized amount | $ 100 | ||
Stock repurchase program, authorized amount | $ 200 | ||
Stock repurchase program, expiration date, extension | 1 year | ||
Stock repurchase program, remaining authorized repurchase amount | $ 125.8 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Options, exercised, intrinsic value | $ 0 | |
Term for exercisable stock | 3 years | |
Share-based payment arrangement, expense | $ 3,742,000 | $ 3,536,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,620,000 | |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 637,266 | |
Vesting period | 3 years | |
Actual number of shares that may be issued, percent, minimum | 0% | |
Actual number of shares that may be issued, percent, maximum | 200% | |
A&R 2020 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation not yet recognized, stock options | $ 34,900,000 | |
Compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | |
Share-based payment arrangement, expense | $ 3,700,000 | 3,500,000 |
Tax benefit from compensation expense | $ 800,000 | $ 700,000 |
A&R 2020 Incentive Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,620,150 | |
Restricted stock units, conversion of stock, conversion rights (in shares) | 1 | |
Compensation not yet recognized, stock options | $ 24,600,000 | |
Compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | |
A&R 2020 Incentive Plan | Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares upon conversion (in shares) | 1 | |
Employees and Officers | A&R 2020 Incentive Plan | Restricted stock units | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Employees and Officers | A&R 2020 Incentive Plan | Restricted stock units | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Employees and Officers | A&R 2020 Incentive Plan | Restricted stock units | Share-Based Payment Arrangement, First Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 33.33% | |
Employees and Officers | A&R 2020 Incentive Plan | Restricted stock units | Share-Based Payment Arrangement, Second Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 66.67% | |
Director | A&R 2020 Incentive Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 180,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | (1,000) |
Outstanding ending balance (in shares) | shares | 179,000 |
Exercisable ending balance (in shares) | shares | 179,000 |
Weighted Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 14 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 14 |
Outstanding ending balance (in dollars per share) | $ / shares | 14 |
Exercisable ending balance (in dollars per share) | $ / shares | $ 14 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted stock units shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 2,264 |
Granted (in shares) | shares | 1,620 |
Vested (in shares) | shares | (522) |
Forfeited (in shares) | shares | (12) |
Canceled (in shares) | shares | 0 |
Outstanding ending balance (in shares) | shares | 3,350 |
Weighted Average Grant Date Fair Value | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 9.81 |
Granted (in dollars per share) | $ / shares | 7.31 |
Vested (in dollars per share) | $ / shares | 10.49 |
Forfeited (in dollars per share) | $ / shares | 9.12 |
Canceled (in dollars per share) | $ / shares | 0 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 8.50 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Shares Activity (Details) - Performance stock units | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 1,364,000 |
Target Shares Granted (in shares) | 637,266 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | (620,000) |
Outstanding ending balance (in shares) | 1,381,000 |
Weighted Average Fair Value Per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 15.80 |
Granted (in dollars per share) | $ / shares | 8.22 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 14.73 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 12.79 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 620,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | (620,000) |
Outstanding ending balance (in shares) | 0 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 306,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 306,000 |
2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding beginning balance (in shares) | 438,000 |
Target Shares Granted (in shares) | 0 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 438,000 |
2024 | |
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) | 637,000 |
Target Shares Vested (in shares) | 0 |
Target Shares Forfeited (in shares) | 0 |
Outstanding ending balance (in shares) | 637,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 3 Months Ended | ||||||
Dec. 31, 2018 USD ($) | Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) property | Dec. 31, 2023 USD ($) | Oct. 31, 2022 agreement fleet | Jan. 01, 2022 fleet | Dec. 31, 2021 fleet | |
Related Party Transaction [Line Items] | |||||||
Service revenue | $ 405,843,000 | $ 423,570,000 | |||||
Accounts receivable, related party | 273,709,000 | $ 237,012,000 | |||||
Accounts payable, related party | $ 189,216,000 | 161,441,000 | |||||
Director | Related party leasing | |||||||
Related Party Transaction [Line Items] | |||||||
Number of yards, related party (in yards) | property | 3 | ||||||
Number of previously rented yards, related party (in yards) | property | 2 | ||||||
Director | Property 1 | Related party leasing | |||||||
Related Party Transaction [Line Items] | |||||||
Rent expense | $ 30,000 | ||||||
Director | Property 2 | Related party leasing | |||||||
Related Party Transaction [Line Items] | |||||||
Rent expense | 100,000 | ||||||
Director | Property 3 | Related party leasing | |||||||
Related Party Transaction [Line Items] | |||||||
Rent expense | 100,000 | ||||||
Director | Property 4 | Related party leasing | |||||||
Related Party Transaction [Line Items] | |||||||
Rent expense | $ 10,000 | ||||||
Director | Property 5 | Related party leasing | |||||||
Related Party Transaction [Line Items] | |||||||
Rent expense | 50,000 | ||||||
Related Party | |||||||
Related Party Transaction [Line Items] | |||||||
Accounts payable, related party | 0 | ||||||
Related Party | Pioneer Pressure Pumping Acquisition | |||||||
Related Party Transaction [Line Items] | |||||||
Business combination, consideration transferred, equity interests issued and issuable | $ 16,600,000 | ||||||
Cash received from acquisition | $ 110,000,000 | ||||||
Number of contracted fleets | fleet | 2 | 6 | 8 | ||||
Number of service agreements | agreement | 2 | ||||||
Service revenue | 4,900,000 | $ 54,300,000 | |||||
Accounts receivable, related party | 3,300,000 | $ 2,400,000 | |||||
Accounts payable, related party | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | ||||||||||
Mar. 31, 2024 USD ($) period lease | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Aug. 31, 2023 | Jun. 01, 2023 | Jan. 31, 2023 | Dec. 31, 2022 period fleet hp | Nov. 01, 2022 | Oct. 31, 2022 lease_renewal_option | Aug. 31, 2022 | Mar. 31, 2013 | |
Operating Leases | |||||||||||
Number of real estate leases | lease | 2 | ||||||||||
ROU asset | $ 124,400,000 | ||||||||||
Accumulated amortization | 15,000,000 | $ 7,200,000 | |||||||||
Right-of-use asset, before accumulated amortization | 85,800,000 | ||||||||||
Finance Lease | |||||||||||
Payments on finance lease obligations | 4,154,000 | $ 0 | |||||||||
Finance lease, right-of-use asset, before accumulated amortization | 52,600,000 | 52,600,000 | |||||||||
Finance lease, right-of-use asset, accumulated amortization | 9,700,000 | $ 5,200,000 | |||||||||
Payments included in measurement of operating lease liabilities | 6,300,000 | 300,000 | |||||||||
Payments included in measurement of finance lease liabilities | 4,200,000 | ||||||||||
Non-cash lease obligation | 83,015,000 | ||||||||||
Lease Cost | |||||||||||
Operating lease, cost | 9,000,000 | 300,000 | |||||||||
Lease cost | 5,300,000 | 0 | |||||||||
Finance lease, right-of-use asset, amortization | 4,500,000 | ||||||||||
Interest expense | 800,000 | ||||||||||
Variable lease, cost | 600,000 | 0 | |||||||||
Asset lease | 200,000 | 300,000 | |||||||||
Real Estate Lease | |||||||||||
Operating Leases | |||||||||||
Term of contract | 10 years | ||||||||||
Renewal term (up to) | 10 years | ||||||||||
Cash paid for operating lease | 100,000 | ||||||||||
Real Estate Two Lease | |||||||||||
Operating Leases | |||||||||||
Renewal term (up to) | 1 year | ||||||||||
Cash paid for operating lease | $ 100,000 | ||||||||||
Discount rate | 6.30% | ||||||||||
Lease term | 4 years 1 month 6 days | ||||||||||
Lessee, operating lease, remaining lease term | 5 years 3 months 18 days | ||||||||||
Option to extend, number of options | lease_renewal_option | 2 | ||||||||||
Silvertip Lease One | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | $ 50,000 | ||||||||||
Discount rate | 6.30% | ||||||||||
Lease term | 4 years 8 months 12 days | ||||||||||
Lessee, operating lease, remaining lease term | 4 years 9 months 18 days | ||||||||||
Lessee, operating lease, remaining lease term extension | 1 year 3 months 18 days | ||||||||||
Silvertip Lease Two | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | $ 100,000 | ||||||||||
Discount rate | 2.10% | ||||||||||
Lease term | 4 years 8 months 12 days | ||||||||||
Lessee, operating lease, remaining lease term | 6 years 1 month 6 days | ||||||||||
Silvertip Lease Three | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | $ 30,000 | $ 0 | |||||||||
Discount rate | 6.30% | ||||||||||
Lease term | 4 years 8 months 12 days | ||||||||||
Lessee, operating lease, remaining lease term | 5 years 8 months 12 days | ||||||||||
Silvertip Office Lease | |||||||||||
Operating Leases | |||||||||||
Term of contract | 5 years | ||||||||||
Cash paid for operating lease | $ 40,000 | ||||||||||
Discount rate | 6.50% | ||||||||||
Lease term | 4 years 2 months 12 days | ||||||||||
Corporate Office Lease | |||||||||||
Operating Leases | |||||||||||
Term of contract | 2 years 1 month 6 days | ||||||||||
Renewal term (up to) | 9 months 18 days | ||||||||||
Cash paid for operating lease | $ 40,000 | ||||||||||
Discount rate | 7.10% | ||||||||||
Lease term | 1 year 6 months | ||||||||||
Real Estate Two Lease and Silvertip One Lease | |||||||||||
Finance Lease | |||||||||||
Non-cash lease obligation | $ 1,800,000 | ||||||||||
Maintenance Facility Lease | |||||||||||
Operating Leases | |||||||||||
Term of contract | 2 years | ||||||||||
Renewal term (up to) | 1 year | ||||||||||
Cash paid for operating lease | $ 100,000 | $ 100,000 | |||||||||
Equipment lease term | period | 3 | ||||||||||
Finance Lease | |||||||||||
Non-cash lease obligation | $ 32,400,000 | ||||||||||
Electric Fleet Lease | |||||||||||
Operating Leases | |||||||||||
Term of contract | 3 years | 3 years | |||||||||
Renewal term (up to) | 1 year | ||||||||||
Equipment lease term | period | 3 | ||||||||||
Number of contracted fleets | fleet | 4 | ||||||||||
Hydraulic horsepower | hp | 60,000 | ||||||||||
Electric Fleet One Lease | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | 2,300,000 | ||||||||||
Variable lease, payment | 300,000 | ||||||||||
Operating lease, initial direct cost | $ 3,000,000 | ||||||||||
Discount rate | 7.30% | ||||||||||
Lease term | 2 years 8 months 12 days | ||||||||||
Power Equipment Lease | |||||||||||
Finance Lease | |||||||||||
Term of contract | 3 years | ||||||||||
Payments on finance lease obligations | $ 5,000,000 | ||||||||||
Lessee, finance lease, renewal term | 1 year | ||||||||||
Finance lease, weighted average discount rate, percent | 7.30% | ||||||||||
Finance lease, weighted average remaining lease term | 2 years 4 months 24 days | ||||||||||
Electric Fleet Two Lease | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | $ 2,300,000 | ||||||||||
Variable lease, payment | 300,000 | ||||||||||
Operating lease, initial direct cost | $ 1,600,000 | ||||||||||
Discount rate | 7.20% | ||||||||||
Lease term | 2 years 10 months 24 days | ||||||||||
Electric Fleet Four Lease | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | $ 300,000 | ||||||||||
Variable lease, payment | 0 | ||||||||||
Operating lease, initial direct cost | $ 1,400,000 | ||||||||||
Discount rate | 7.20% | ||||||||||
Lease term | 3 years | ||||||||||
Electric Fleet Three Lease | |||||||||||
Operating Leases | |||||||||||
Cash paid for operating lease | $ 1,600,000 | ||||||||||
Variable lease, payment | 50,000 | ||||||||||
Operating lease, initial direct cost | $ 200,000 | ||||||||||
Discount rate | 7.20% | ||||||||||
Lease term | 3 years |
Leases - Operating and Finance
Leases - Operating and Finance Lease Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Leases | |
2024 | $ 23,655 |
2025 | 31,433 |
2026 | 30,669 |
2027 | 5,570 |
2028 | 821 |
Total undiscounted future lease payments | 92,148 |
Less: amount representing interest | (9,133) |
Present value of future lease payments (lease obligation) | 83,015 |
Finance Leases | |
2024 | 14,904 |
2025 | 19,872 |
2026 | 12,790 |
2027 | 0 |
2028 | 0 |
Total undiscounted future lease payments | 47,566 |
Less: amount representing interest | (3,771) |
Present value of future lease payments (lease obligation) | $ 43,795 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) lease | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Number of fleet leases | lease | 4 |
Commitment agreement | $ 13.1 |
Self insurance for losses (up to) | 10 |
Loss contingency accrual | $ 6 |
Routine audit, direct payment sales tax, period | 4 years |
Electric Fleet Lease | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Contractual commitment, not yet commenced | $ 100.7 |
Power Equipment Lease | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Lessee, finance lease, lease not yet commenced, amount | 47.6 |
ABL CreditFacility | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Notes Issued | $ 6 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | |||
Apr. 24, 2024 USD ($) | Apr. 30, 2024 USD ($) fleet | Mar. 31, 2024 USD ($) | Dec. 31, 2022 fleet | |
Subsequent Event [Line Items] | ||||
Non-cash lease obligation | $ 83,015 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of contracted fleets | fleet | 2 | |||
Contract with customer, term | 3 years | |||
Stock repurchase program, additional authorized amount | $ 100,000 | |||
Stock repurchase program, authorized amount | $ 200,000 | |||
Stock repurchase program, expiration date, extension | 1 year | |||
Electric Fleet Lease | ||||
Subsequent Event [Line Items] | ||||
Number of contracted fleets | fleet | 4 | |||
Electric Fleet Lease | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Non-cash lease obligation | $ 5,300 |