Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37988 | |
Entity Registrant Name | NexTier Oilfield Solutions Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-4016639 | |
Entity Address, Address Line One | 3990 Rogerdale Rd. | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77042 | |
City Area Code | 713 | |
Local Phone Number | 325-6000 | |
Title of 12(b) Security | Common Stock, $0.01, par value | |
Trading Symbol | NEX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 230,498,136 | |
Entity Central Index Key | 0001688476 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 218,501 | $ 218,476 |
Trade and other accounts receivable, net | 487,905 | 397,197 |
Inventories, net | 66,261 | 66,395 |
Prepaid and other current assets | 40,936 | 43,947 |
Total current assets | 813,603 | 726,015 |
Operating lease right-of-use assets | 26,471 | 18,659 |
Finance lease right-of-use assets | 79,324 | 43,714 |
Property and equipment (net of accumulated depreciation of $1,019,228 and $1,002,684) | 764,310 | 679,513 |
Goodwill | 192,780 | 192,780 |
Intangible assets (net of accumulated amortization of $87,083 and $82,043) | 48,395 | 50,586 |
Deferred income taxes | 107,426 | 0 |
Other noncurrent assets | 13,611 | 15,901 |
Total assets | 2,045,920 | 1,727,168 |
Current liabilities: | ||
Accounts payable | 335,417 | 202,936 |
Accrued expenses | 234,379 | 281,715 |
Customer contract liabilities | 19,377 | 19,377 |
Current maturities of long-term operating lease liabilities | 8,588 | 6,083 |
Current maturities of long-term finance lease liabilities | 54,409 | 19,855 |
Current maturities of long-term debt | 14,086 | 14,004 |
Other current liabilities | 7,572 | 9,368 |
Total current liabilities | 673,828 | 553,338 |
Long-term operating lease liabilities, less current maturities | 17,267 | 13,267 |
Long-term finance lease liabilities, less current maturities | 10,172 | 11,925 |
Long-term debt, net of unamortized deferred financing costs and unamortized debt discount, less current maturities | 343,895 | 347,425 |
Other noncurrent liabilities | 12,642 | 11,294 |
Total noncurrent liabilities | 383,976 | 383,911 |
Total liabilities | 1,057,804 | 937,249 |
Stockholders' equity | ||
Common stock, par value $0.01 per share (authorized 500,000 shares, issued and outstanding 230,495 and 223,995 shares, respectively) | 2,305 | 2,340 |
Paid-in capital in excess of par value | 952,951 | 1,007,492 |
Retained earnings (deficit) | 27,798 | (226,195) |
Accumulated other comprehensive income | 5,062 | 6,282 |
Total stockholders' equity | 988,116 | 789,919 |
Total liabilities and stockholders' equity | $ 2,045,920 | $ 1,727,168 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 1,019,228 | $ 1,002,684 |
Intangible assets, accumulated amortization | $ 87,083 | $ 82,043 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 230,495,000 | 230,495,000 |
Common stock outstanding (in shares) | 223,995,000 | 223,995,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Statement [Abstract] | |||
Revenue | $ 935,672 | $ 635,043 | |
Operating costs and expenses: | |||
Cost of services | [1] | 673,944 | 524,656 |
Depreciation and amortization | 58,645 | 55,163 | |
Selling, general and administrative expenses | 39,681 | 35,859 | |
Merger and integration | 161 | 9,232 | |
Loss (gain) on disposal of assets | 3,770 | (823) | |
Total operating costs and expenses | 776,201 | 624,087 | |
Operating income | 159,471 | 10,956 | |
Other income (expense): | |||
Other income (expense), net | (280) | 5,370 | |
Interest expense, net | (6,198) | (7,374) | |
Total other income (expense) | (6,478) | (2,004) | |
Income before income taxes | 152,993 | 8,952 | |
Income tax benefit (expense) | 101,000 | (160) | |
Net income | 253,993 | 8,792 | |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (4) | (285) | |
Hedging activities | (558) | 5,612 | |
Total comprehensive income | $ 253,431 | $ 14,119 | |
Net income per share: | |||
Basic net income per share (in dollars per share) | $ 1.09 | $ 0.04 | |
Diluted net income per share (in dollars per share) | $ 1.07 | $ 0.04 | |
Weighted-average shares outstanding: basic (in shares) | 233,158 | 243,269 | |
Weighted-average shares outstanding: diluted (in shares) | 237,072 | 247,705 | |
[1]Cost of services during the three months ended March 31, 2023 and March 31, 2022 excludes depreciation of $55.7 million and $50.9 million, respectively |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Depreciation | $ 55.7 | $ 50.9 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Paid-in capital in excess of par value | Retained earnings (deficit) | Accumulated other comprehensive income |
Beginning balance at Dec. 31, 2021 | $ 547,017 | $ 2,420 | $ 1,094,020 | $ (541,164) | $ (8,259) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 7,815 | 19 | 7,796 | ||
Shares repurchased and retired related to stock-based compensation | (3,953) | 0 | (3,953) | ||
Other comprehensive income (loss) | 6,014 | 6,014 | |||
Net income | 8,792 | 8,792 | |||
Ending balance at Mar. 31, 2022 | 565,685 | 2,439 | 1,097,863 | (532,372) | (2,245) |
Beginning balance at Dec. 31, 2022 | 789,919 | 2,340 | 1,007,492 | (226,195) | 6,282 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 8,853 | 35 | 8,818 | ||
Shares repurchased and retired related to stock-based compensation | (9,982) | (11) | (9,971) | ||
Shares repurchased and retired related to stock repurchase program | (53,447) | (59) | (53,388) | ||
Other comprehensive income (loss) | (1,220) | (1,220) | |||
Net income | 253,993 | 253,993 | |||
Ending balance at Mar. 31, 2023 | $ 988,116 | $ 2,305 | $ 952,951 | $ 27,798 | $ 5,062 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 253,993 | $ 8,792 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 58,645 | 55,163 |
Amortization of deferred financing fees | 555 | 528 |
Loss (gain) on disposal of assets | 3,770 | (823) |
Gain on financial instrument and derivatives, net | (658) | (4,919) |
Stock-based compensation | 9,995 | 8,476 |
Deferred income tax benefit | (107,426) | 0 |
Changes in operating assets and liabilities: | ||
Increase in trade and other accounts receivable, net | (90,710) | (89,937) |
Increase in inventories | (2,593) | (14,262) |
Decrease in prepaid and other current assets | 3,434 | 13,970 |
Decrease in other assets | 3,305 | 1,204 |
Increase in accounts payable | 89,682 | 32,787 |
(Decrease) increase in accrued expenses | (45,782) | 24,723 |
Decrease in customer contract liabilities | 0 | (2,442) |
Decrease in other liabilities | (2,957) | (4,594) |
Net cash provided by (used in) operating activities | 173,253 | 28,666 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (61,026) | (26,704) |
Advances of deposit on equipment | (36,513) | (1,742) |
Implementation of software | (1,582) | (1,392) |
Proceeds from disposal of assets | 2,102 | 2,822 |
Assets and business acquisition | 0 | 482 |
Proceeds from insurance recoveries | 104 | 20 |
Net cash used in investing activities | (96,915) | (26,514) |
Cash flows from financing activities: | ||
Payments on the term loan facility and asset based revolver | (3,803) | (3,579) |
Payments on finance leases | (5,724) | (2,847) |
Shares repurchased and retired related to share repurchase program | (54,992) | 0 |
Payments for financing liabilities | (1,808) | (2,395) |
Shares repurchased and retired related to stock-based compensation | (9,982) | (3,953) |
Net cash provided (used) in financing activities | (76,309) | (12,774) |
Non-cash effect of foreign translation adjustments | (4) | (285) |
Net increase (decrease) in cash, cash equivalents | 25 | (10,907) |
Cash and cash equivalents, beginning | 218,476 | 110,695 |
Cash and cash equivalents, ending | 218,501 | 99,788 |
Supplemental disclosure of cash flow information cash paid during the period for: | ||
Interest expense, net | 5,685 | 6,991 |
Income taxes | 1,100 | 0 |
Non-cash investing and financing activities: | ||
Change in accrued capital expenditures | (43,003) | (16,661) |
Non-cash additions to finance right-of-use assets | 37,985 | 1,084 |
Non-cash additions to finance lease liabilities, including current maturities | (38,525) | (852) |
Non-cash additions to operating right-of-use assets | 10,296 | 1,117 |
Non-cash additions to operating lease liabilities, including current maturities | $ (9,642) | $ (1,089) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - shares | Aug. 03, 2022 | Aug. 31, 2021 |
Alamo | ||
Equity interest issued (in shares) | 26,000,000 | |
Continental Intermodal Group LP | ||
Shares issued, for asset acquisitions (in shares) | 500,000 |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations The accompanying unaudited condensed consolidated financial statements were prepared using United States Generally Accepted Accounting Principles ("GAAP") and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by GAAP for annual financial statements and should be read together with the Company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 16, 2023. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Please refer to Note (2) Summary of Significant Accounting Policies of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10- K for the year ended December 31, 2022 for the discussion on the Company's significant accounting policies. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions (a) Alamo Acquisition On August 31, 2021 (the “Alamo Acquisition Date”), the Company completed its acquisition of Alamo in accordance with the terms of the Purchase Agreement, dated as of August 4, 2021 (the “Purchase Agreement”), by and among the Company, NexTier Completion Solutions Inc., Alamo Frac Holdings, LLC, Alamo and the “owner group” identified therein (the "Alamo Acquisition"). The Company acquired 100% of Alamo. The Alamo Acquisition was completed for cash consideration of $100.0 million, equity consideration of 26 million shares of the Company’s common stock valued at $82.3 million, post-closing services valued at $30.0 million, an estimated $15.9 million of contingent consideration, $7.4 million of non-contingent consideration, and a net working capital settlement of $0.5 million that was finalized in the fourth quarter of 2021 and was paid to the Company in the first quarter of 2022. The contingent consideration includes a Tier II upgrade payment and earnout payments, which are contingent upon the achievement of certain performance targets, as described in the Purchase Agreement. The earnout period ended in the fourth quarter of 2022, the performance targets were achieved, and the Company has agreed with Alamo Frac Holdings, LLC and the group to cumulative earnout payments of $73.8 million, of which $33.4 million has been paid as of March 31, 2023. The Company made the final payment of $40.4 million in the second quarter of 2023. Merger and integration related costs were recognized separately from the acquisition of assets and assumptions of liabilities in the Alamo Acquisition. Merger costs consist of legal and professional fees and pre-merger notification fees. Integration costs consist of expenses incurred to integrate Alamo’s operations, aligning accounting processes and procedures, integrating its enterprise resource planning system with those of the Company, and any earnout payments. All of these costs are recorded within merger and integration costs on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income. For additional information regarding the Alamo Acquisition, refer to Note (3) Acquisitions of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022. (b) Asset Acquisition from Continental Intermodal Group LP On August 3, 2022 the Company entered into and closed a definitive agreement to purchase substantially all assets (and assume certain lease liabilities) of the sand hauling, wellsite storage and last mile logistics businesses of Continental Intermodal Group LP (“CIG”) and its subsidiaries (the “CIG Acquisition”) from CIG, Continental Intermodal Group – Trucking, LLC (“Trucking”) and CIG Logistics LLC (together with Trucking and CIG, “CIG Sellers”). The CIG Acquisition was completed for a purchase price of $31.3 million. At the time of close, the Company paid a total of $32.1 million, which included: (i) approximately $27.9 million in cash paid at closing to the CIG Sellers plus (ii) 500,000 shares of common stock. The $32.1 million transferred to CIG at the time of close included a deposit of $0.8 million for a transition services agreement for costs of services to be provided during the transition period. Accordingly, the purchase price of $31.3 million does not include the deposit of $0.8 million. The Company accounted for this acquisition as an asset acquisition pursuant to ASC 805. The |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net, consisted of the following as of March 31, 2023 and December 31, 2022: (Thousands of Dollars) March 31, December 31, Sand, including freight $ 13,228 $ 15,901 Chemicals and consumables 6,761 6,854 Materials and supplies 46,272 43,640 Total inventory, net $ 66,261 $ 66,395 Inventories are reported net of obsolescence reserves of $3.7 million and $3.4 million as of March 31, 2023 and December 31, 2022, respectively. The Company recognized $0.3 million of obsolescence expense during the three months ended March 31, 2023. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at March 31, 2023 and December 31, 2022 consisted of the following: (Thousands of Dollars) March 31, December 31, 2018 Term Loan Facility $ 333,375 $ 334,250 2021 Equipment Loan 27,481 30,342 Other long-term debt 206 273 Less: Unamortized debt discount and debt issuance costs (3,081) (3,436) Total debt, net of unamortized debt discount and debt issuance costs 357,981 361,429 Less: Current portion (14,086) (14,004) Long-term debt, net of unamortized debt discount and debt issuance costs $ 343,895 $ 347,425 Below is a summary of the Company’s credit facilities outstanding as of March 31, 2023: (Thousands of Dollars) 2021 Equipment Loan 2019 ABL Facility 2018 Term Loan Facility Original facility size $ 46,500 $ 450,000 $ 350,000 Outstanding balance $ 27,481 $ — $ 333,375 Letters of credit issued $ — $ 22,626 $ — Available borrowing base commitment n/a $ 412,047 n/a Interest Rate (1) 5.25 % LIBOR or base rate plus applicable margin LIBOR or base rate plus applicable margin Maturity Date June 1, 2025 October 31, 2024 May 25, 2025 (1) London Interbank Offer Rate (“LIBOR”) is subject to a 1.00% floor. Maturities of the 2018 Term Loan Facility and the 2021 Equipment Loan (each as defined herein) for the next five years are presented below: (Thousands of Dollars) Year-end December 31, 2023 $ 11,626 2024 15,790 2025 333,646 2026 — 2027 — $ 361,062 For additional information regarding the terms of the Company's credit facilities, see Note (8) Long-Term Debt to the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K |
Significant Risks and Uncertain
Significant Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Significant Risks and Uncertainties The Company operates in two reportable segments: Completion Services and WC&I, with significant concentration in the Completion Services segment. During the three months ended March 31, 2023 and 2022, sales to Completion Services customers represented 96% and 95% of the Company's consolidated revenue, respectively. The Company depends on its customers' willingness to make operating and capital expenditures to explore for, develop and produce oil and natural gas onshore in the U.S. This activity is driven by many factors, including current and expected crude oil and natural gas prices. From the end of the fourth quarter of 2019 through mid-August 2020, the U.S. active rig count decreased by 70%, from 805 to 244 rigs before recovering to 351 rigs by the end of 2020. In 2021, the U.S. active rig count recovery continued, increasing 67% from 351 rigs at the end of 2020 to 586 rigs by the end of 2021. The activity growth since the end of 2021 has continued to improve with the rig count growing another 28% through the first quarter of 2023 to close at 755 active rigs as of March 31, 2023. Significant customers are those that individually account for 10% or more of the Company's consolidated revenue or total accounts receivable. For the three months ended March 31, 2023 and 2022, the Company had one significant customer each quarter in the Completions Services segment that individually represented 11% or $101.7 million and 11% or $68.6 million of the Company's consolidated revenue, respectively. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses an interest-rate-related derivative instrument to manage its variability of cash flows associated with changes in interest rates on its variable-rate debt. On May 25, 2018, the Company and certain subsidiaries of the Company as guarantors, entered into a term loan facility (the "2018 Term Loan Facility"). The 2018 Term Loan Facility had an initial aggregate principal amount of $350.0 million and proceeds were used to repay the Company's pre-existing term loan facility. The 2018 Term Loan Facility has a variable interest rate based on LIBOR, subject to a 1.0% floor. In June 2018, the Company executed a new off-market interest rate swap effective through March 31, 2025 to hedge 50% of its expected LIBOR exposure matching the swap to the 1-month LIBOR, 1% floor, of the 2018 Term Loan Facility, and terminated the pre-existing interest rate swaps. The new interest rate swap was designated in a new cash flow hedge relationship. The following tables present the fair value of the Company's derivative instrument on a gross and net basis as of the periods shown below: (Thousands of Dollars) Derivative Derivative Gross Amounts Gross (1) Net Amounts (2) As of March 31, 2023: Other current asset $ 3,636 $ — $ 3,636 $ — $ 3,636 Other noncurrent asset 1,660 — 1,660 — 1,660 As of December 31, 2022: Other current asset 3,870 — 3,870 — 3,870 Other noncurrent asset $ 2,816 $ — $ 2,816 $ — $ 2,816 Agreements are in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. (2) There are no amounts subject to an enforceable master netting arrangement that are not netted in these amounts. There are no amounts of related financial collateral received or pledged. The following table presents gains and losses for the Company's interest rate derivative designated as cash flow hedges (in thousands of dollars): Three Months Ended 2023 2022 Location Amount of gain (loss) recognized in total other comprehensive income on derivative $ (558) $ 5,612 OCI Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings $ 658 $ (687) Interest Expense The gain (loss) recognized in other comprehensive income for the derivative instrument is presented within hedging activities in the Condensed Consolidated Statements of Operations and Comprehensive Income. There were no gains or losses recognized in earnings as a result of excluding amounts from the assessment of hedge effectiveness. Based on recorded values as of March 31, 2023, $3.0 million of net gains will be reclassified from accumulated other comprehensive income into earnings within the next 12 months. See Note (8) Fair Value Measurements and Financial Information for discussion on fair value measurements related to the Company's derivative instrument. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Information | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Information | Fair Value Measurements and Financial Information The Company discloses the required fair values of financial instruments in its assets and liabilities under the hierarchy guidelines, in accordance with GAAP. As of March 31, 2023, the Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, derivative instruments, and long-term debt. As of March 31, 2023 and December 31, 2022, the carrying values of the Company's financial instruments, included in its Condensed Consolidated Balance Sheets, approximated or equaled their fair values. Recurring Fair Value Measurement As of March 31, 2023 and December 31, 2022, the Company had one financial instrument measured at fair value on a recurring basis, which is its interest rate derivative (see Note (7) Derivatives above). During the year ended December 31, 2022, the Company also measured the fair value of the earnout payments originating from the Alamo Acquisition on a recurring basis. The earnout period ended in the fourth quarter of 2022, the performance targets were achieved, and the Company has agreed with Alamo Frac Holdings, LLC and the owner group to cumulative earnout payments of $73.8 million. Additionally, during the year ended December 31, 2022, the Company held an equity security investment composed primarily of common equity shares and warrants in a publicly traded company, in addition to an immaterial balance related to contingent value rights ("CVRs"). As of December 31, 2022, the Company sold all of its common equity shares and warrants and its investment in the CVRs has matured and no longer holds any value. The financial instruments are presented in the Condensed Consolidated Balance Sheets as follows: the interest rate derivative is presented within other current assets and other noncurrent assets, the earnout payments are presented within accrued expenses, and the equity security investment was presented within other current assets. The fair market value of the derivative financial instrument reflected on the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 was determined using industry-standard models that consider various assumptions, including current market and contractual rates for the underlying instrument, time value, implied volatilities, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace through the full term of the instrument and can be supported by observable data. The fair value of the earnout payments was measured at the end of each reporting period through the end of the earnout period, which occurred in the fourth quarter of 2022. Gains and losses recognized in relation to the change in fair value of the earnout payments were recognized within merger and integration in the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note (3) Acquisitions for further discussion. The fair value of the equity security investment was measured at the end of each reporting period. Gains and losses recognized in relation to the change in fair value of the equity security investment were recognized within other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income. The following tables present the placement in the fair value hierarchy of assets and liabilities that were measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022 (in thousands of dollars): Fair value measurements at reporting date using March 31, 2023 Level 1 Level 2 Level 3 Assets: Interest rate derivative $ 5,296 $ — $ 5,296 $ — Fair value measurements at reporting date using December 31, 2022 Level 1 Level 2 Level 3 Assets: Interest rate derivative $ 6,686 $ — $ 6,686 $ — Credit Risk The Company's financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, the derivative contract and trade receivables. The Company's cash balances on deposit with financial institutions totaled $218.5 million and $218.5 million as of March 31, 2023 and December 31, 2022, respectively, which exceeded Federal Deposit Insurance Corporation insured limits. The Company regularly monitors these institutions' financial condition. The credit risk from the derivative contract derives from the potential failure of the counterparty to perform under the terms of the derivative contract. The Company minimizes counterparty credit risk in the derivative instrument by entering into the transaction with a high-quality counterparty, whose Standard & Poor's credit rating is higher than BBB. The derivative instrument entered into by the Company does not contain credit-risk-related contingent features. The majority of the Company's trade receivables have payment terms of 30 to 60 days. Significant customers are those that individually account for 10% or more of the Company's consolidated revenue or total accounts receivable. As of March 31, 2023, there was one customer that was considered significant that represented 11% or $38.4 million of the Company's total trade receivables. As of December 31, 2022, trade receivables from two customers individually represented 11% and 10% or $30.9 million and $29.8 million, respectively, of the Company’s total accounts receivable. The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. The Company has a process in place to collect substantially all receivables within 30 to 60 days of aging. As of March 31, 2023 and December 31, 2022, the Company had $1.1 million and $1.4 million in allowance for credit losses, respectively. During the three months ended March 31, 2023, the Company did not recognize any bad debt expense and recovered $0.2 million of accounts receivable. During the three months ended March 31, 2022, the Company did not recognize any bad debt expense. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Effective as of October 31, 2019, the Company (i) amended and restated the Keane Group, Inc. Equity and Incentive Award Plan under the name NexTier Oilfield Solutions Inc. Equity and Incentive Award Plan (“Equity and Incentive Award Plan”), and (ii) assumed and amended and restated the C&J Energy Services, Inc. 2017 Management Incentive Plan under the name NexTier Oilfield Solutions Inc. (Former C&J Energy) Management Incentive Plan (collectively with the Equity and Incentive Award Plan, the “Equity Award Plans”). As of March 31, 2023, the Company has five types of stock-based compensation outstanding under its Equity Award Plans: (i) RSAs issued to independent directors and certain executives and employees, (ii) RSUs issued to executive officers and key management employees, (iii) non-qualified stock options issued to executive officers, (iv) PSUs issued to executive officers and key management employees, (v) and PUs issued to executive officers and key management employees. The following table summarizes stock-based compensation costs for the three months ended March 31, 2023 and 2022 (in thousands of dollars): Three Months Ended 2023 2022 Liability-classified awards Cash-settled awards $ 1,142 $ 661 Equity-classified awards Restricted stock awards 303 311 Restricted stock time-based unit awards 6,213 5,391 Restricted stock performance-based unit awards 2,337 2,113 Stock-based compensation cost 9,995 8,476 Tax Benefit (1) (1,492) (1,339) Stock-based compensation cost, net of tax $ 8,503 $ 7,137 (1) Any tax benefit for stock-based compensation during the three months ended March 31, 2023 will be offset by the change in valuation allowance. The Company was in a valuation allowance position during the three months ended March 31, 2022. For additional information regarding stock-based compensation, refer to Note (12) Stock-Based Compensation of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity (a) Vesting of Stock Awards During the three months ended March 31, 2023, 2,402,473 shares were issued, net of share settlements for payment of payroll taxes, upon the vesting of stock-based compensation awards. Shares withheld during the period were immediately retired by the Company. (b) Share Repurchase Program On October 25, 2022, the Company announced the board of directors approved a new share repurchase program for up to $250.0 million through December 31, 2023. The share repurchase program may be executed from time to time in open market transactions, through block trades, in privately negotiated transactions, through derivative transactions, through 10b5-1 plans, or by other means. The amount, timing and terms of any share repurchases will be determined based on prevailing market conditions and other factors, including applicable black-out periods. The share repurchase program does not obligate NexTier to purchase any shares of common stock during any period and the program may be modified or suspended at any time at NexTier’s discretion. During the three months ended March 31, 2023, the Company repurchased 5,901,938 shares of its common stock for $53.4 million at an average price of $9.06. As of March 31, 2023, the Company has settled a total of 17,373,529 of total share repurchases since the announcement of the program for $166.4 million at an average price of $9.58. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic income per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect, such as stock awards from the Equity Awards Plan, had been issued. Anti-dilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income per share as their impact would be anti-dilutive. A reconciliation of the numerators and denominators used for the basic and diluted net income per share computations is as follows (in thousands of dollars): Three Months Ended 2023 2022 Numerator: Net income $ 253,993 $ 8,792 Denominator: Basic weighted-average common shares outstanding 233,158 243,269 Dilutive effect of restricted stock awards granted to Board of Directors 73 160 Dilutive effect of time-based restricted stock awards granted under the Equity Plan 2,385 3,697 Dilutive effect of performance-based restricted stock awards granted under the Equity Plan 1,456 579 Diluted weighted-average common shares outstanding 237,072 247,705 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended March 31, 2023, the Company recognized an income tax benefit of approximately $107.4 million due to the partial release of a valuation allowance on our deferred tax assets. This release is primarily due to entering into a three-year cumulative pre-tax book income position and reflects our increased expectation to utilize these deferred tax assets going forward based on improved operating results and market conditions. Income tax expense prior to the release of the valuation allowance of $107.4 million was $6.4 million, which resulted in a net income tax benefit of $101.0 million. For additional information regarding income taxes, refer to Note (17) Income Taxes of the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of March 31, 2023 and December 31, 2022, the Company had $36.5 million and $4.9 million of deposits on equipment, respectively. Outstanding purchase commitments on equipment were $179.0 million and $225.5 million, as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, the Company had a letter of credit of $22.6 million under the 2019 ABL Facility (as defined herein). Aggregate minimum commitments under long-term raw material supply contracts for the next five years as of March 31, 2023 are listed below: (Thousands of Dollars) 2023 $ 46,684 2024 16,394 2025 3,960 2026 8,450 2027 — $ 75,488 Litigation From time to time, the Company is subject to legal and administrative proceedings, settlements, investigations, claims and actions, as is typical of the industry. These claims include, but are not limited to, contract claims, environmental claims, employment related claims, claims alleging injury or claims related to operational issues and motor vehicle accidents. The Company's assessment of the likely outcome of litigation matters is based on its judgment of a number of factors, including experience with similar matters, past history, precedents, relevant financial information and other evidence and facts specific to the matter. In accordance with GAAP, the Company accrues for contingencies where the occurrence of a material loss is probable and can be reasonably estimated, based on the Company's best estimate of the expected liability and the Company may record an offsetting receivable to the extent such liability is recoverable from insurance. The Company may increase or decrease its legal accruals in the future, on a matter-by-matter basis, to account for developments in such matters. Notwithstanding the uncertainty as to the final outcome and based upon the information currently available to it, the Company does not currently believe these matters in aggregate will have a material adverse effect on its financial position, results of operations or liquidity. Environmental 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 through indemnification. Regulatory Audits The Company is subject to routine audits by taxing authorities. As of March 31, 2023, the Company had recorded estimates of potential assessments, the majority of which is related to an estimate of $14.8 million of potential assessment and exposures for all taxing jurisdictions related to the Alamo Acquisition. As of March 31, 2023, the Company also has an offsetting indemnification receivable of $14.8 million from the Owner Group, recorded pursuant to the Purchase Agreement, in prepaids and other current assets in the Condensed Consolidated Balance Sheet. Both the estimated liability and indemnification receivable were recorded in the purchase price allocation at the time of the Alamo Acquisition in 2021. During the year ended December 31, 2022, the Company obtained additional information that resulted in a reduction of the Company's accrual and offsetting indemnification receivable related to this audit by $2.9 million. There were no material changes to the accrual and the offsetting indemnification receivable during the quarter ended March 31, 2023. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Cerberus Operations and Advisory Company, Cerberus Capital Management, L.P., and Cerberus Technology Solutions LLC, affiliates of the Company's principal equity holder, provide certain consulting services to the Company. The Company paid less than $0.1 million and $0.2 million during the three months ended March 31, 2023 and 2022, respectively, for these services. As part of the Purchase Agreement, the Company agreed to provide certain post-closing services to Alamo Frac Holdings, LLC valued at $30.0 million in the aggregate. During the three months ended March 31, 2023, the Company did not provide any services to Alamo Frac Holdings, LLC as part of the Purchase Agreement. The Company has a remaining customer contract liability related to these services of $19.4 million as of March 31, 2023. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments In accordance with ASC 280, "Segment Reporting", the Company routinely evaluates whether its separate segments have changed. This determination is made based on the following factors: (i) the Company’s chief operating decision maker (“CODM”) is currently managing each operating segment as a separate business and evaluating the performance of each segment and making resource allocation decisions distinctly and expects to do so for the foreseeable future, and (ii) discrete financial information for each operating segment is available. The following is a description of each reportable segment: Completion Services The Company’s Completion Services segment consists of the following businesses and service lines: (i) fracturing services; (ii) wireline and pumping services; and (iii) completion support services, which includes the Company's research and technology department. Well Construction and Intervention Services Following the sale of the Company's coiled tubing assets, the Company’s WC&I Services segment consists of the cementing services service line. On August 1, 2022, the Company sold its coiled tubing assets to Gladiator for a cash purchase price of $21.6 million, which resulted in a gain on sale of assets of $11.6 million. The divestiture of non-core assets is consistent with the Company’s strategy to repurpose capital towards the highest return projects that fit the Company’s strategy around wellsite integration, while also strengthening liquidity. The following tables present financial information with respect to the Company’s segments. Corporate and Other represents costs not directly associated with a segment, such as interest expense, income taxes and corporate overhead. Corporate assets include cash, deferred financing costs, derivatives and entity-level machinery equipment. (Thousands of Dollars) Three months ended March 31, 2023 2022 Operations by business segment Adjusted gross profit: Completion Services (1) $ 252,635 $ 106,334 WC&I (1) 9,093 4,053 Total adjusted gross profit $ 261,728 $ 110,387 (1) Adjusted gross profit at the segment level is not considered to be a non-GAAP financial measure as it is the Company's segment measure of profitability and is required to be disclosed under GAAP pursuant to ASC 280. Adjusted gross profit is defined as revenue less cost of services, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance. (Thousands of Dollars) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Completion Services WC&I Total Completion Services WC&I Total Revenue $ 895,564 $ 40,108 $ 935,672 $ 602,620 $ 32,423 $ 635,043 Cost of Services 642,929 31,015 673,944 496,286 28,370 524,656 Gross profit excluding depreciation and amortization 252,635 9,093 261,728 106,334 4,053 110,387 Management adjustments associated with cost of services — — — — — — Adjusted gross profit $ 252,635 $ 9,093 $ 261,728 $ 106,334 $ 4,053 $ 110,387 (Thousands of Dollars) March 31, 2023 December 31, 2022 Total assets by segment: Completion Services $ 1,608,589 $ 1,404,557 WC&I 41,442 38,150 Corporate and Other 395,889 284,461 Total assets $ 2,045,920 $ 1,727,168 Goodwill by segment: Completion Services $ 192,780 $ 192,780 WC&I — — Corporate and Other — — Total goodwill $ 192,780 $ 192,780 Disaggregation of Revenue Revenue activities during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (Thousands of Dollars) (Thousands of Dollars) Completion Services WC&I Total Completion Services WC&I Total Geography Northeast $ 163,461 $ 8,027 $ 171,488 $ 89,558 $ 5,510 $ 95,068 Central 191,008 — 191,008 113,096 — 113,096 West Texas 480,224 30,577 510,801 380,147 26,078 406,225 West 58,765 1,504 60,269 18,624 835 19,459 International 2,106 — 2,106 1,195 — 1,195 $ 895,564 $ 40,108 $ 935,672 $ 602,620 $ 32,423 $ 635,043 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements (a) Recently Adopted Accounting Standards In July 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-05 "Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). ASU 2021-05 allows a lessor to classify and account for a lease with variable lease payments that doesn't depend on an index or rate as an operating lease if both: a) The lease would have been classified as a sales-type lease or a direct-financing lease in accordance with the lease classification guidance in Topic 842; and b) The lessor would’ve otherwise recognized a day-one loss. This standard was effective for fiscal years beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)” (“ASU 2020-06”). ASU 2020-06 simplifies the guidance on the issuer's accounting for convertible debt instruments and convertible preferred stock. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. (b) Recently Issued Accounting Standards In December 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-06 “Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848. ASU 2022-06 provides optional expedients that permit an entity to not apply otherwise applicable US GAAP to contracts or transactions that are modified or otherwise affected due to reference rate reform. ASU defers the sunset date of ASC 848 from December 31,2022, which was previously addressed in ASU 2020-04 and ASU 2021-01, to December 31, 2024. Entities that apply ASC 848 can continue to do so until December 31,2024. The Company is currently working to transition from LIBOR to an alternate reference rate in 2023. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company understands that its subsidiary, NexTier Holding Co., has been named as a defendant in a Complaint by the trustee of the Basic Energy Litigation Trust in a suit filed on April 20, 2023 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, wherein the trustee makes claims arising from the purchase of C&J Well Services, Inc., by Basic Energy Services, Inc. ("Basic Energy"), the debtor, including that the purchase was, in bankruptcy-practice terminology, a "fraudulent transfer" and that Basic Energy did not receive reasonably equivalent value. The Company intends to vigorously defend all allegations in the suit if and when served. At this time, due to the early stage of any related proceeding, the Company cannot predict the outcome of these claims, and is unable to reasonably estimate the potential impact, if any, to our financial position, results of operations, or cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements were prepared using United States Generally Accepted Accounting Principles ("GAAP") and the instructions to Form 10-Q and Regulation S-X. |
New Accounting Pronouncements | (a) Recently Adopted Accounting Standards In July 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-05 "Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). ASU 2021-05 allows a lessor to classify and account for a lease with variable lease payments that doesn't depend on an index or rate as an operating lease if both: a) The lease would have been classified as a sales-type lease or a direct-financing lease in accordance with the lease classification guidance in Topic 842; and b) The lessor would’ve otherwise recognized a day-one loss. This standard was effective for fiscal years beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)” (“ASU 2020-06”). ASU 2020-06 simplifies the guidance on the issuer's accounting for convertible debt instruments and convertible preferred stock. The Company adopted this standard on January 1, 2022, and there was no material impact on the financial statements. (b) Recently Issued Accounting Standards In December 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-06 “Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848. ASU 2022-06 provides optional expedients that permit an entity to not apply otherwise applicable US GAAP to contracts or transactions that are modified or otherwise affected due to reference rate reform. ASU defers the sunset date of ASC 848 from December 31,2022, which was previously addressed in ASU 2020-04 and ASU 2021-01, to December 31, 2024. Entities that apply ASC 848 can continue to do so until December 31,2024. The Company is currently working to transition from LIBOR to an alternate reference rate in 2023. |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories, net | Inventories, net, consisted of the following as of March 31, 2023 and December 31, 2022: (Thousands of Dollars) March 31, December 31, Sand, including freight $ 13,228 $ 15,901 Chemicals and consumables 6,761 6,854 Materials and supplies 46,272 43,640 Total inventory, net $ 66,261 $ 66,395 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt at March 31, 2023 and December 31, 2022 consisted of the following: (Thousands of Dollars) March 31, December 31, 2018 Term Loan Facility $ 333,375 $ 334,250 2021 Equipment Loan 27,481 30,342 Other long-term debt 206 273 Less: Unamortized debt discount and debt issuance costs (3,081) (3,436) Total debt, net of unamortized debt discount and debt issuance costs 357,981 361,429 Less: Current portion (14,086) (14,004) Long-term debt, net of unamortized debt discount and debt issuance costs $ 343,895 $ 347,425 |
Schedule of line of credit facilities | Below is a summary of the Company’s credit facilities outstanding as of March 31, 2023: (Thousands of Dollars) 2021 Equipment Loan 2019 ABL Facility 2018 Term Loan Facility Original facility size $ 46,500 $ 450,000 $ 350,000 Outstanding balance $ 27,481 $ — $ 333,375 Letters of credit issued $ — $ 22,626 $ — Available borrowing base commitment n/a $ 412,047 n/a Interest Rate (1) 5.25 % LIBOR or base rate plus applicable margin LIBOR or base rate plus applicable margin Maturity Date June 1, 2025 October 31, 2024 May 25, 2025 (1) London Interbank Offer Rate (“LIBOR”) is subject to a 1.00% floor. |
Schedule of maturities of long-term debt | Maturities of the 2018 Term Loan Facility and the 2021 Equipment Loan (each as defined herein) for the next five years are presented below: (Thousands of Dollars) Year-end December 31, 2023 $ 11,626 2024 15,790 2025 333,646 2026 — 2027 — $ 361,062 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of offsetting assets | The following tables present the fair value of the Company's derivative instrument on a gross and net basis as of the periods shown below: (Thousands of Dollars) Derivative Derivative Gross Amounts Gross (1) Net Amounts (2) As of March 31, 2023: Other current asset $ 3,636 $ — $ 3,636 $ — $ 3,636 Other noncurrent asset 1,660 — 1,660 — 1,660 As of December 31, 2022: Other current asset 3,870 — 3,870 — 3,870 Other noncurrent asset $ 2,816 $ — $ 2,816 $ — $ 2,816 Agreements are in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. (2) There are no amounts subject to an enforceable master netting arrangement that are not netted in these amounts. There are no amounts of related financial collateral received or pledged. |
Schedule of offsetting liabilities | The following tables present the fair value of the Company's derivative instrument on a gross and net basis as of the periods shown below: (Thousands of Dollars) Derivative Derivative Gross Amounts Gross (1) Net Amounts (2) As of March 31, 2023: Other current asset $ 3,636 $ — $ 3,636 $ — $ 3,636 Other noncurrent asset 1,660 — 1,660 — 1,660 As of December 31, 2022: Other current asset 3,870 — 3,870 — 3,870 Other noncurrent asset $ 2,816 $ — $ 2,816 $ — $ 2,816 Agreements are in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. (2) There are no amounts subject to an enforceable master netting arrangement that are not netted in these amounts. There are no amounts of related financial collateral received or pledged. |
Schedule of cash flow hedges included in AOCI | The following table presents gains and losses for the Company's interest rate derivative designated as cash flow hedges (in thousands of dollars): Three Months Ended 2023 2022 Location Amount of gain (loss) recognized in total other comprehensive income on derivative $ (558) $ 5,612 OCI Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings $ 658 $ (687) Interest Expense |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on recurring basis | As of March 31, 2023 and December 31, 2022, the Company had one financial instrument measured at fair value on a recurring basis, which is its interest rate derivative (see Note (7) Derivatives above). During the year ended December 31, 2022, the Company also measured the fair value of the earnout payments originating from the Alamo Acquisition on a recurring basis. The earnout period ended in the fourth quarter of 2022, the performance targets were achieved, and the Company has agreed with Alamo Frac Holdings, LLC and the owner group to cumulative earnout payments of $73.8 million. Additionally, during the year ended December 31, 2022, the Company held an equity security investment composed primarily of common equity shares and warrants in a publicly traded company, in addition to an immaterial balance related to contingent value rights ("CVRs"). As of December 31, 2022, the Company sold all of its common equity shares and warrants and its investment in the CVRs has matured and no longer holds any value. The financial instruments are presented in the Condensed Consolidated Balance Sheets as follows: the interest rate derivative is presented within other current assets and other noncurrent assets, the earnout payments are presented within accrued expenses, and the equity security investment was presented within other current assets. The fair market value of the derivative financial instrument reflected on the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 was determined using industry-standard models that consider various assumptions, including current market and contractual rates for the underlying instrument, time value, implied volatilities, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace through the full term of the instrument and can be supported by observable data. The fair value of the earnout payments was measured at the end of each reporting period through the end of the earnout period, which occurred in the fourth quarter of 2022. Gains and losses recognized in relation to the change in fair value of the earnout payments were recognized within merger and integration in the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note (3) Acquisitions for further discussion. The fair value of the equity security investment was measured at the end of each reporting period. Gains and losses recognized in relation to the change in fair value of the equity security investment were recognized within other income (expense), net in the Condensed Consolidated Statements of Operations and Comprehensive Income. The following tables present the placement in the fair value hierarchy of assets and liabilities that were measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022 (in thousands of dollars): Fair value measurements at reporting date using March 31, 2023 Level 1 Level 2 Level 3 Assets: Interest rate derivative $ 5,296 $ — $ 5,296 $ — Fair value measurements at reporting date using December 31, 2022 Level 1 Level 2 Level 3 Assets: Interest rate derivative $ 6,686 $ — $ 6,686 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock based compensation cost | The following table summarizes stock-based compensation costs for the three months ended March 31, 2023 and 2022 (in thousands of dollars): Three Months Ended 2023 2022 Liability-classified awards Cash-settled awards $ 1,142 $ 661 Equity-classified awards Restricted stock awards 303 311 Restricted stock time-based unit awards 6,213 5,391 Restricted stock performance-based unit awards 2,337 2,113 Stock-based compensation cost 9,995 8,476 Tax Benefit (1) (1,492) (1,339) Stock-based compensation cost, net of tax $ 8,503 $ 7,137 (1) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | A reconciliation of the numerators and denominators used for the basic and diluted net income per share computations is as follows (in thousands of dollars): Three Months Ended 2023 2022 Numerator: Net income $ 253,993 $ 8,792 Denominator: Basic weighted-average common shares outstanding 233,158 243,269 Dilutive effect of restricted stock awards granted to Board of Directors 73 160 Dilutive effect of time-based restricted stock awards granted under the Equity Plan 2,385 3,697 Dilutive effect of performance-based restricted stock awards granted under the Equity Plan 1,456 579 Diluted weighted-average common shares outstanding 237,072 247,705 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of aggregate minimum commitments | Aggregate minimum commitments under long-term raw material supply contracts for the next five years as of March 31, 2023 are listed below: (Thousands of Dollars) 2023 $ 46,684 2024 16,394 2025 3,960 2026 8,450 2027 — $ 75,488 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by segment | The following tables present financial information with respect to the Company’s segments. Corporate and Other represents costs not directly associated with a segment, such as interest expense, income taxes and corporate overhead. Corporate assets include cash, deferred financing costs, derivatives and entity-level machinery equipment. (Thousands of Dollars) Three months ended March 31, 2023 2022 Operations by business segment Adjusted gross profit: Completion Services (1) $ 252,635 $ 106,334 WC&I (1) 9,093 4,053 Total adjusted gross profit $ 261,728 $ 110,387 (1) Adjusted gross profit at the segment level is not considered to be a non-GAAP financial measure as it is the Company's segment measure of profitability and is required to be disclosed under GAAP pursuant to ASC 280. Adjusted gross profit is defined as revenue less cost of services, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance. (Thousands of Dollars) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Completion Services WC&I Total Completion Services WC&I Total Revenue $ 895,564 $ 40,108 $ 935,672 $ 602,620 $ 32,423 $ 635,043 Cost of Services 642,929 31,015 673,944 496,286 28,370 524,656 Gross profit excluding depreciation and amortization 252,635 9,093 261,728 106,334 4,053 110,387 Management adjustments associated with cost of services — — — — — — Adjusted gross profit $ 252,635 $ 9,093 $ 261,728 $ 106,334 $ 4,053 $ 110,387 (Thousands of Dollars) March 31, 2023 December 31, 2022 Total assets by segment: Completion Services $ 1,608,589 $ 1,404,557 WC&I 41,442 38,150 Corporate and Other 395,889 284,461 Total assets $ 2,045,920 $ 1,727,168 Goodwill by segment: Completion Services $ 192,780 $ 192,780 WC&I — — Corporate and Other — — Total goodwill $ 192,780 $ 192,780 Revenue activities during the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (Thousands of Dollars) (Thousands of Dollars) Completion Services WC&I Total Completion Services WC&I Total Geography Northeast $ 163,461 $ 8,027 $ 171,488 $ 89,558 $ 5,510 $ 95,068 Central 191,008 — 191,008 113,096 — 113,096 West Texas 480,224 30,577 510,801 380,147 26,078 406,225 West 58,765 1,504 60,269 18,624 835 19,459 International 2,106 — 2,106 1,195 — 1,195 $ 895,564 $ 40,108 $ 935,672 $ 602,620 $ 32,423 $ 635,043 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Aug. 03, 2022 | Aug. 31, 2021 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Operating lease right-of-use assets | $ 26,471 | $ 18,659 | ||||
Continental Intermodal Group LP | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Asset acquisition, purchase price | $ 31,300 | |||||
Asset acquisition consideration transferred | 32,100 | |||||
Payments for asset acquisitions | $ 27,900 | |||||
Shares issued, acquisitions (in shares) | 500,000 | |||||
Transaction costs | $ 800 | |||||
Operating lease right-of-use assets | 900 | |||||
Operating lease, liability | $ 900 | |||||
Alamo | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Interest acquired (as a percent) | 100% | |||||
Cash consideration | $ 100,000 | |||||
Equity interest issued (in shares) | 26,000,000 | |||||
Equity consideration | $ 82,300 | |||||
Post close services | 30,000 | |||||
Business combination, contingent consideration | 15,900 | |||||
Non contingent consideration | $ 7,400 | |||||
Net working capital adjustment | $ 500 | |||||
Loss on contingent consideration liability | $ 73,800 | |||||
Alamo | Earnout Payments | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Payment of consideration liability | $ 33,400 | |||||
Alamo | Earnout Payments | Forecast | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Payment of consideration liability | $ 40,400 |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Total inventory, net | $ 66,261 | $ 66,395 |
Sand, including freight | ||
Inventory [Line Items] | ||
Total inventory, net | 13,228 | 15,901 |
Chemicals and consumables | ||
Inventory [Line Items] | ||
Total inventory, net | 6,761 | 6,854 |
Materials and supplies | ||
Inventory [Line Items] | ||
Total inventory, net | $ 46,272 | $ 43,640 |
Inventories, net - Narrative (D
Inventories, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 3.7 | $ 3.4 |
Inventory write-down | $ 0.3 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt, net of unamortized debt discount and debt issuance costs | $ 357,981 | $ 361,429 |
Less: Current portion | (14,086) | (14,004) |
Long-term debt, net of unamortized debt discount and debt issuance costs | 343,895 | 347,425 |
Line of Credit | Revolving Credit Facility | 2018 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Outstanding balance | 333,375 | 334,250 |
Less: Unamortized debt discount and debt issuance costs | (3,081) | (3,436) |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Other long-term debt | 206 | 273 |
Notes Payable | 2021 Equipment Loan | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 27,481 | $ 30,342 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | May 25, 2018 | |
Notes Payable | 2021 Equipment Loan | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 46,500,000 | ||
Outstanding balance | 27,481,000 | $ 30,342,000 | |
Letters of credit issued | $ 0 | ||
Debt stated interest rate (as a percent) | 5.25% | ||
Line of Credit | Revolving Credit Facility | 2019 ABL Facility | |||
Line of Credit Facility [Line Items] | |||
Original facility size | $ 450,000,000 | ||
Outstanding balance | 0 | ||
Letters of credit issued | 22,626,000 | ||
Available borrowing base commitment | $ 412,047,000 | ||
Line of Credit | Revolving Credit Facility | 2019 ABL Facility | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest rate floor (as a percent) | 1% | ||
Line of Credit | Revolving Credit Facility | 2018 Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Original facility size | $ 350,000,000 | $ 350,000,000 | |
Outstanding balance | 333,375,000 | $ 334,250,000 | |
Letters of credit issued | $ 0 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt, net of unamortized debt discount and debt issuance costs | $ 357,981 | $ 361,429 |
Term Loan | 2018 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
2023 | 11,626 | |
2024 | 15,790 | |
2025 | 333,646 | |
2026 | 0 | |
2027 | 0 | |
Total debt, net of unamortized debt discount and debt issuance costs | $ 361,062 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties (Details) $ in Thousands | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 USD ($) segment rig | Mar. 31, 2022 USD ($) | Dec. 31, 2019 rig | Aug. 15, 2020 rig | Dec. 31, 2021 rig | Dec. 31, 2020 rig | |
Concentration Risk [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Number of rigs in trough | rig | 755 | 805 | 244 | 586 | 351 | |
Concentration risk percentage, oil rig, (decrease) increase, compared to prior period (as a percent) | 28% | (70.00%) | 67% | |||
Revenue | $ 935,672 | $ 635,043 | ||||
Customer 1 | ||||||
Concentration Risk [Line Items] | ||||||
Revenue | $ 101,700 | $ 68,600 | ||||
Customer Concentration Risk | Revenue | Customer 1 | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (as a percent) | 11% | 11% | ||||
Supplier Concentration Risk | Purchases | Top Suppliers | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (as a percent) | 0% | |||||
Completion Services | ||||||
Concentration Risk [Line Items] | ||||||
Revenue | $ 895,564 | $ 602,620 | ||||
Completion Services | Customer Concentration Risk | Revenue | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (as a percent) | 96% | 95% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 3 Months Ended | ||
May 25, 2018 | Mar. 31, 2023 | Jun. 30, 2018 | |
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative (ineffective portion) | $ 0 | ||
Net gain (loss) expected to be reclassified from AOCI into earnings in the next 12 months | 3,000,000 | ||
LIBOR | |||
Derivative [Line Items] | |||
Percentage of debt hedged by interest rate derivatives (as a percent) | 50% | ||
Variable rate floor (as a percent) | 1% | ||
2018 Term Loan Facility | Term Loan | LIBOR | |||
Derivative [Line Items] | |||
Floor interest rate (as a percent) | 1% | ||
Revolving Credit Facility | 2018 Term Loan Facility | Line of Credit | |||
Derivative [Line Items] | |||
Original facility size | $ 350,000,000 | $ 350,000,000 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other current asset | ||
Assets: | ||
Gross Amounts of Recognized Assets and Liabilities | $ 3,636 | $ 3,870 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 3,636 | 3,870 |
Other current asset | Derivative designated as hedging instruments | ||
Assets: | ||
Gross Amounts of Recognized Assets and Liabilities | 3,636 | 3,870 |
Other current asset | Derivative not designated as hedging instruments | ||
Assets: | ||
Gross Amounts of Recognized Assets and Liabilities | 0 | 0 |
Other noncurrent asset | ||
Assets: | ||
Gross Amounts of Recognized Assets and Liabilities | 1,660 | 2,816 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 1,660 | 2,816 |
Other noncurrent asset | Derivative designated as hedging instruments | ||
Assets: | ||
Gross Amounts of Recognized Assets and Liabilities | 1,660 | 2,816 |
Other noncurrent asset | Derivative not designated as hedging instruments | ||
Assets: | ||
Gross Amounts of Recognized Assets and Liabilities | $ 0 | $ 0 |
Derivatives - Schedule of Cash
Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Derivative designated as hedging instruments - Interest rate derivative - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in total other comprehensive income on derivative | $ (558) | $ 5,612 |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings | $ 658 | $ (687) |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Information - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) derivativeInstrument | Dec. 31, 2022 USD ($) derivativeInstrument | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) derivativeInstrument | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of instruments held | derivativeInstrument | 1 | 1 | 1 | |
Cash and cash equivalents | $ 218,501 | $ 218,476 | $ 218,476 | |
Revenue | 935,672 | $ 635,043 | ||
Allowance for doubtful accounts receivable | 1,100 | 1,400 | $ 1,400 | |
Bad debt expense net of recoveries | $ 200 | |||
Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Receivables, payment terms (in days) | 30 days | |||
Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Receivables, payment terms (in days) | 60 days | |||
Customer 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue | $ 101,700 | $ 68,600 | ||
Customer Concentration Risk | Largest Customer | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk (as a percent) | 11% | |||
Revenue | $ 38,400 | |||
Customer Concentration Risk | Customer 1 | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk (as a percent) | 11% | |||
Revenue | $ 30,900 | |||
Customer Concentration Risk | Customer 2 | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk (as a percent) | 10% | |||
Revenue | $ 29,800 | |||
Alamo | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loss on contingent consideration liability | $ 73,800 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Information - Measured on Recurring Basis (Details) - Recurring - Interest rate derivative - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Interest rate derivative | $ 5,296 | $ 6,686 |
Level 1 | ||
Assets: | ||
Interest rate derivative | 0 | 0 |
Level 2 | ||
Assets: | ||
Interest rate derivative | 5,296 | 6,686 |
Level 3 | ||
Assets: | ||
Interest rate derivative | $ 0 | $ 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | Mar. 31, 2023 plan |
Share-Based Payment Arrangement [Abstract] | |
Number of types of equity-based compensation | 5 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Equity-Based Compensation Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | $ 9,995 | $ 8,476 |
Tax Benefit | (1,492) | (1,339) |
Stock-based compensation cost, net of tax | 8,503 | 7,137 |
Cash-settled awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | 1,142 | 661 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | 303 | 311 |
Restricted stock time-based unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | 6,213 | 5,391 |
Restricted stock performance-based unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | $ 2,337 | $ 2,113 |
Stockholders' Equity - Vesting
Stockholders' Equity - Vesting Of Stock Awards (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
Equity [Abstract] | |
Shares issued, net of share settlements for payroll taxes (in shares) | 2,402,473 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase (Details) - Common stock - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Oct. 25, 2022 | |
Class of Stock [Line Items] | ||
Share repurchase program, authorized amount | $ 250,000,000 | |
Stock repurchased (in shares) | 5,901,938 | |
Total share repurchases | $ 53,400,000 | |
Stock repurchased (in dollars per share) | $ 9.06 | |
Stock repurchased settled during period, shares (in shares) | 17,373,529 | |
Stock repurchased settled during period, value | $ 166,400,000 | |
Stock repurchased settled during period, price per share (in dollars per share) | $ 9.58 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income | $ 253,993 | $ 8,792 |
Denominator: | ||
Basic weighted-average common shares outstanding (in shares) | 233,158 | 243,269 |
Diluted weighted-average common shares outstanding (in shares) | 237,072 | 247,705 |
Restricted stock awards | ||
Denominator: | ||
Dilutive effect of awards granted (in shares) | 73 | 160 |
Restricted stock units | ||
Denominator: | ||
Dilutive effect of awards granted (in shares) | 2,385 | 3,697 |
Restricted stock performance-based unit awards | ||
Denominator: | ||
Dilutive effect of awards granted (in shares) | 1,456 | 579 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Deferred income tax benefit | $ 107,426 | $ 0 |
Valuation allowance, amount | 6,400 | |
Income tax benefit | $ 101,000 | $ (160) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Alamo | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Tax estimate | $ 14,800 | |
Indemnification asset, amount | 14,800 | |
Indemnification receivable | $ 2,900 | |
Revolving Credit Facility | 2019 ABL Facility | Line of Credit | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Letters of credit issued | 22,626 | |
Capital Addition Purchase Commitments | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Deposits on equipment | 36,500 | 4,900 |
Purchase commitments | $ 179,000 | $ 225,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Aggregate Minimum Commitments (Details) - Inventories $ in Thousands | Mar. 31, 2023 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | $ 46,684 |
2024 | 16,394 |
2025 | 3,960 |
2026 | 8,450 |
2027 | 0 |
Total | $ 75,488 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Consulting Services | ||
Related Party Transaction [Line Items] | ||
Amounts paid to related parties | $ 0.1 | $ 0.2 |
Alamo | ||
Related Party Transaction [Line Items] | ||
Post close services | 30 | |
Remaining customer contract liability | $ 19.4 |
Business Segments - Narratives
Business Segments - Narratives (Details) - Disposal Group, Disposed of by Sale - Coiled Tubing Assets $ in Millions | Aug. 01, 2022 USD ($) |
Segment Reporting Information [Line Items] | |
Proceeds from sales of assets | $ 21.6 |
Gain on sale of assets | $ 11.6 |
Business Segments - Adjusted Gr
Business Segments - Adjusted Gross Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total adjusted gross profit | $ 261,728 | $ 110,387 |
Completion Services | ||
Segment Reporting Information [Line Items] | ||
Total adjusted gross profit | 252,635 | 106,334 |
WC&I | ||
Segment Reporting Information [Line Items] | ||
Total adjusted gross profit | $ 9,093 | $ 4,053 |
Business Segments - Gross Profi
Business Segments - Gross Profit by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Segment Reporting Information [Line Items] | |||
Revenue | $ 935,672 | $ 635,043 | |
Cost of Services | [1] | 673,944 | 524,656 |
Gross profit excluding depreciation and amortization | 261,728 | 110,387 | |
Management adjustments associated with cost of services | 0 | ||
Adjusted gross profit | 261,728 | 110,387 | |
Completion Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 895,564 | 602,620 | |
Cost of Services | 642,929 | 496,286 | |
Gross profit excluding depreciation and amortization | 252,635 | 106,334 | |
Management adjustments associated with cost of services | 0 | ||
Adjusted gross profit | 252,635 | 106,334 | |
WC&I | |||
Segment Reporting Information [Line Items] | |||
Revenue | 40,108 | 32,423 | |
Cost of Services | 31,015 | 28,370 | |
Gross profit excluding depreciation and amortization | 9,093 | 4,053 | |
Management adjustments associated with cost of services | 0 | ||
Adjusted gross profit | $ 9,093 | $ 4,053 | |
[1]Cost of services during the three months ended March 31, 2023 and March 31, 2022 excludes depreciation of $55.7 million and $50.9 million, respectively |
Business Segments - Schedule of
Business Segments - Schedule of Assets and Goodwill by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 2,045,920 | $ 1,727,168 |
Goodwill | 192,780 | 192,780 |
Operating Segments | Completion Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,608,589 | 1,404,557 |
Goodwill | 192,780 | 192,780 |
Operating Segments | WC&I | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 41,442 | 38,150 |
Goodwill | 0 | 0 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 395,889 | 284,461 |
Goodwill | $ 0 | $ 0 |
Business Segments - Disaggregat
Business Segments - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 935,672 | $ 635,043 |
Completion Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 895,564 | 602,620 |
WC&I | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 40,108 | 32,423 |
Northeast | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 171,488 | 95,068 |
Northeast | Completion Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 163,461 | 89,558 |
Northeast | WC&I | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 8,027 | 5,510 |
Central | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 191,008 | 113,096 |
Central | Completion Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 191,008 | 113,096 |
Central | WC&I | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 0 | 0 |
West Texas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 510,801 | 406,225 |
West Texas | Completion Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 480,224 | 380,147 |
West Texas | WC&I | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 30,577 | 26,078 |
West | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 60,269 | 19,459 |
West | Completion Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 58,765 | 18,624 |
West | WC&I | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 1,504 | 835 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 2,106 | 1,195 |
International | Completion Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 2,106 | 1,195 |
International | WC&I | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 0 | $ 0 |